[Congressional Record (Bound Edition), Volume 154 (2008), Part 12]
[House]
[Pages 17093-17263]
[From the U.S. Government Publishing Office, www.gpo.gov]




    CONFERENCE REPORT ON H.R. 4137, HIGHER EDUCATION OPPORTUNITY ACT

  Mr. GEORGE MILLER of California submitted the following conference 
report and statement on the bill (H.R. 4137) to amend and extend the 
Higher Education Act of 1965, and for other purposes:

                  Conference Report (H. Rept. 110-803)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4137), to amend and extend the Higher Education Act of 1965, 
     and for other purposes, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Higher 
     Education Opportunity Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. General definition of institution of higher education.
Sec. 102. Definition of institution of higher education for purposes of 
              title IV programs.
Sec. 103. Additional definitions.
Sec. 104. Protection of student speech and association rights.
Sec. 105. Treatment of territories and territorial student assistance.
Sec. 106. National Advisory Committee on Institutional Quality and 
              Integrity.
Sec. 107. Drug and alcohol abuse prevention.
Sec. 108. Prior rights and obligations.
Sec. 109. Diploma mills.
Sec. 110. Improved information concerning the Federal student financial 
              aid website.
Sec. 111. Transparency in college tuition for consumers.
Sec. 112. Textbook information.
Sec. 113. Database of student information prohibited.
Sec. 114. In-State tuition rates for Armed Forces members, spouses, and 
              dependent children.
Sec. 115. State higher education information system pilot program.
Sec. 116. State commitment to affordable college education.
Sec. 117. Performance-based organization for the delivery of Federal 
              student financial assistance.
Sec. 118. Procurement flexibility.
Sec. 119. Certification regarding the use of certain Federal funds.
Sec. 120. Institution and lender reporting and disclosure requirements.

                 TITLE II--TEACHER QUALITY ENHANCEMENT

Sec. 201. Teacher quality enhancement.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Program purpose.
Sec. 302. Definitions; eligibility.
Sec. 303. American Indian tribally controlled colleges and 
              universities.
Sec. 304. Alaska Native and Native Hawaiian-serving institutions.
Sec. 305. Predominantly Black Institutions.
Sec. 306. Native American-serving, nontribal institutions.
Sec. 307. Assistance to Asian American and Native American Pacific 
              Islander-serving institutions.
Sec. 308. Part B definitions.
Sec. 309. Grants to institutions.
Sec. 310. Allotments.
Sec. 311. Professional or graduate institutions.
Sec. 312. Unexpended funds.
Sec. 313. Endowment Challenge Grants.
Sec. 314. Historically Black college and university capital financing.
Sec. 315. Programs in STEM fields.
Sec. 316. Investing in historically Black colleges and universities and 
              other minority-serving institutions.
Sec. 317. Technical assistance.
Sec. 318. Waiver authority.
Sec. 319. Authorization of appropriations.
Sec. 320. Technical corrections.

                      TITLE IV--STUDENT ASSISTANCE

  PART A--Grants to Students in Attendance at Institutions of Higher 
                               Education

Sec. 401. Federal Pell Grants.
Sec. 402. Academic competitiveness grants.
Sec. 403. Federal TRIO Programs.
Sec. 404. Gaining early awareness and readiness for undergraduate 
              programs.
Sec. 405. Academic Achievement Incentive Scholarships.
Sec. 406. Federal Supplemental Educational Opportunity Grants.
Sec. 407. Leveraging Educational Assistance Partnership program.
Sec. 408. Special programs for students whose families are engaged in 
              migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 411. Learning Anytime Anywhere Partnerships.
Sec. 412. TEACH Grants.

             PART B--Federal Family Education Loan Program

Sec. 421. Limitations on amounts of loans covered by Federal insurance.
Sec. 422. Federal payments to reduce student interest costs.
Sec. 423. Voluntary flexible agreements.
Sec. 424. Federal PLUS loans.
Sec. 425. Federal consolidation loans.
Sec. 426. Default reduction program.
Sec. 427. Requirements for disbursement of student loans.
Sec. 428. Unsubsidized Stafford loan limits.
Sec. 429. Loan forgiveness for teachers employed by educational service 
              agencies.
Sec. 430. Loan forgiveness for service in areas of national need.
Sec. 431. Loan repayment for civil legal assistance attorneys.
Sec. 432. Reports to consumer reporting agencies and institutions of 
              higher education.
Sec. 433. Legal powers and responsibilities.
Sec. 434. Student loan information by eligible lenders.
Sec. 435. Consumer education information.
Sec. 436. Definitions of eligible institution and eligible lender.
Sec. 437. Discharge and cancellation rights in cases of disability.

[[Page 17094]]

Sec. 438. Conforming amendments for repeal of section 439.

                  PART C--Federal Work-Study Programs

Sec. 441. Authorization of appropriations.
Sec. 442. Allowance for books and supplies.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Additional funds for off-campus community service.
Sec. 447. Work colleges.

                  PART D--Federal Direct Student Loan

Sec. 451. Terms and conditions of loans.
Sec. 452. Funds for administrative expenses.
Sec. 453. Guaranty agency responsibilities and payments; reports and 
              cost estimates.
Sec. 454. Loan cancellation for teachers.

                     PART E--Federal Perkins Loans

Sec. 461. Extension of authority.
Sec. 462. Allowance for books and supplies.
Sec. 463. Agreements with institutions.
Sec. 464. Perkins loan terms and conditions.
Sec. 465. Cancellation for public service.
Sec. 466. Sense of Congress regarding Federal Perkins loans.

                         PART F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Discretion to make adjustments.
Sec. 473. Definitions.

       PART G--General Provisions Relating to Student Assistance

Sec. 481. Definitions.
Sec. 482. Master calendar.
Sec. 483. Improvements to paper and electronic forms and processes.
Sec. 484. Model institution financial aid offer form.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations and State court judgments.
Sec. 487. Readmission requirements for servicemembers.
Sec. 488. Institutional and financial assistance information for 
              students.
Sec. 489. National Student Loan Data System.
Sec. 490. Early awareness of financial aid eligibility.
Sec. 491. Distance Education Demonstration Programs.
Sec. 492. Articulation agreements.
Sec. 493. Program participation agreements.
Sec. 494. Regulatory relief and improvement.
Sec. 494A. Transfer of allotments.
Sec. 494B. Purpose of administrative payments.
Sec. 494C. Advisory Committee on Student Financial Assistance.
Sec. 494D. Regional meetings and negotiated rulemaking.
Sec. 494E. Year 2000 requirements at the Department.
Sec. 494F. Technical amendment of income-based repayment.

                       PART H--Program Integrity

Sec. 495. Recognition of accrediting agency or association.
Sec. 496. Eligibility and certification procedures.
Sec. 497. Program review and data.
Sec. 498. Review of regulations.

             PART I--Competitive Loan Auction Pilot Program

Sec. 499. Competitive loan auction pilot program evaluation.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Authorized activities.
Sec. 502. Postbaccalaureate opportunities for Hispanic Americans.
Sec. 503. Applications.
Sec. 504. Cooperative arrangements.
Sec. 505. Authorization of appropriations.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. Findings; purposes; consultation; survey.
Sec. 602. Graduate and Undergraduate Language and Area Centers and 
              Programs.
Sec. 603. Language Resource Centers.
Sec. 604. Undergraduate International Studies and Foreign Language 
              Programs.
Sec. 605. Research; studies.
Sec. 606. Technological innovation and cooperation for foreign 
              information access.
Sec. 607. Selection of certain grant recipients.
Sec. 608. American overseas research centers.
Sec. 609. Authorization of appropriations for international and foreign 
              language studies.
Sec. 610. Conforming amendments.
Sec. 611. Business and international education programs.
Sec. 612. Minority foreign service professional development program.
Sec. 613. Institutional development.
Sec. 614. Study abroad program.
Sec. 615. Advanced degree in international relations.
Sec. 616. Internships.
Sec. 617. Financial assistance.
Sec. 618. Report.
Sec. 619. Gifts and donations.
Sec. 620. Authorization of appropriations for the Institute for 
              International Public Policy.
Sec. 621. Definitions.
Sec. 622. New provisions.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Purpose.
Sec. 702. Jacob K. Javits Fellowship program.
Sec. 703. Graduate assistance in areas of national need.
Sec. 704. Thurgood Marshall Legal educational opportunity program.
Sec. 705. Sense of Congress.
Sec. 706. Masters degree programs at historically Black colleges and 
              universities and Predominantly Black Institutions.
Sec. 707. Fund for the improvement of postsecondary education.
Sec. 708. Repeal of the urban community service program.
Sec. 709. Programs to provide students with disabilities with a quality 
              higher education.
Sec. 710. Subgrants to nonprofit organizations.

                    TITLE VIII--ADDITIONAL PROGRAMS

Sec. 801. Additional programs.
Sec. 802. National Center for Research in Advanced Information and 
              Digital Technologies.
Sec. 803. Establishment of pilot program for course material rental.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--Education of the Deaf Act of 1986

Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Agreement with Gallaudet University.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Cultural experiences grants.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Monitoring, evaluation, and reporting.
Sec. 908. Liaison for educational programs.
Sec. 909. Federal endowment programs for Gallaudet University and the 
              National Technical Institute for the Deaf.
Sec. 910. Oversight and effect of agreements.
Sec. 911. International students.
Sec. 912. Research priorities.
Sec. 913. National study on the education of the deaf.
Sec. 914. Authorization of appropriations.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

Sec. 921. United States Institute of Peace Act.

 PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION 
                           AMENDMENTS OF 1992

Sec. 931. Repeals.
Sec. 932. Grants to States for workplace and community transition 
              training for incarcerated individuals.
Sec. 933. Underground Railroad Educational and Cultural Program.
Sec. 934. Olympic Scholarships.
Sec. 935. Establishment of a Deputy Assistant Secretary for 
              International and Foreign Language Education.

    PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

              subpart 1--tribal colleges and universities

Sec. 941. Reauthorization of the Tribally Controlled College or 
              University Assistance Act of 1978.

                   subpart 2--navajo higher education

Sec. 945. Short title.
Sec. 946. Reauthorization of Navajo Community College Act.

       PART E--Omnibus Crime Control and Safe Streets Act of 1968

Sec. 951. Short title.
Sec. 952. Loan repayment for prosecutors and defenders.

        PART F--Institutional Loan Repayment Assistance Programs

Sec. 961. Institutional loan forgiveness programs.

 PART G--Minority Serving Institution Digital and Wireless Technology 
                          Opportunity Program

Sec. 971. Minority Serving Institution Digital and Wireless Technology 
              Opportunity Program.
Sec. 972. Authorization of appropriations.

               TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

Sec. 1001. Short title.
Sec. 1002. Regulations.
Sec. 1003. Effective dates.

Subtitle A--Preventing Unfair and Deceptive Private Educational Lending 
            Practices and Eliminating Conflicts of Interest

Sec. 1011. Amendment to the Truth in Lending Act.
Sec. 1012. Civil liability.
Sec. 1013. Clerical amendment.

      Subtitle B--Improved Disclosures for Private Education Loans

Sec. 1021. Private education loan disclosures and limitations.
Sec. 1022. Application of Truth in Lending Act to all private education 
              loans.

                   Subtitle C--College Affordability

Sec. 1031. Community Reinvestment Act credit for low-cost loans.

          Subtitle D--Financial Literacy; Studies and Reports

Sec. 1041. Definitions.
Sec. 1042. Coordinated education efforts.

                     TITLE XI--STUDIES AND REPORTS

Sec. 1101. Study on foreign graduate medical schools.
Sec. 1102. Employment of postsecondary education graduates.

[[Page 17095]]

Sec. 1103. Study on IPEDS.
Sec. 1104. Report and study on articulation agreements.
Sec. 1105. Report on proprietary institutions of higher education.
Sec. 1106. Analysis of Federal regulations on institutions of higher 
              education.
Sec. 1107. Independent evaluation of distance education programs.
Sec. 1108. Review of costs and benefits of environmental, health, and 
              safety standards.
Sec. 1109. Study of minority male academic achievement.
Sec. 1110. Study on bias in standardized tests.
Sec. 1111. Endowment report.
Sec. 1112. Study of correctional postsecondary education.
Sec. 1113. Study of aid to less-than-half-time students.
Sec. 1114. Study on regional sensitivity in the needs analysis formula.
Sec. 1115. Study of the impact of student loan debt on public service.
Sec. 1116. Study on teaching students with reading disabilities.
Sec. 1117. Report on income contingent repayment through the income tax 
              withholding system.
Sec. 1118. Developing additional measures of degree completion.
Sec. 1119. Study on the financial and compliance audits of the Federal 
              student loan program.
Sec. 1120. Summit on sustainability.
Sec. 1121. Nursing school capacity.
Sec. 1122. Study and report on nonindividual information.
Sec. 1123. Feasibility study for student loan clearinghouse.
Sec. 1124. Study on Department of Education oversight of incentive 
              compensation ban.
Sec. 1125. Definition of authorizing committees.

     SEC. 2. REFERENCES.

       Except as otherwise expressly provided, whenever in this 
     Act an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Higher Education Act of 1965 (20 
     U.S.C. 1001 et seq.).

     SEC. 3. GENERAL EFFECTIVE DATE.

       Except as otherwise provided in this Act or the amendments 
     made by this Act, this Act and the amendments made by this 
     Act shall take effect on the date of enactment of this Act.
                      TITLE I--GENERAL PROVISIONS

     SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER 
                   EDUCATION.

       (a) Amendments.--Section 101 (20 U.S.C. 1001) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by inserting before the semicolon the 
     following: ``, or persons who meet the requirements of 
     section 484(d)(3)''; and
       (B) in paragraph (3), by inserting ``, or awards a degree 
     that is acceptable for admission to a graduate or 
     professional degree program, subject to review and approval 
     by the Secretary'' after ``such a degree''; and
       (2) by striking paragraph (2) of subsection (b) and 
     inserting the following:
       ``(2) a public or nonprofit private educational institution 
     in any State that, in lieu of the requirement in subsection 
     (a)(1), admits as regular students individuals--
       ``(A) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(B) who will be dually or concurrently enrolled in the 
     institution and a secondary school.''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2010.

     SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR 
                   PURPOSES OF TITLE IV PROGRAMS.

       (a) International Medical Schools and Nursing Schools.--
     Section 102(a)(2) (20 U.S.C. 1002(a)(2)) is amended--
       (1) in subparagraph (A)--
       (A) in the first sentence of the matter preceding clause 
     (i), by inserting ``nursing school,'' after ``graduate 
     medical school,'';
       (B) in clause (i)--
       (i) in the matter preceding subclause (I), by inserting 
     ``except as provided in subparagraph (B)(iii)(IV),'' before 
     ``in the case''; and
       (ii) by striking subclause (II) and inserting the following 
     new subclause:

       ``(II) the institution--

       ``(aa) has or had a clinical training program that was 
     approved by a State as of January 1, 1992; and
       ``(bb) continues to operate a clinical training program in 
     at least one State that is approved by that State;'';
       (C) in clause (ii), by striking the period at the end and 
     inserting ``; or''; and
       (D) by adding at the end the following:
       ``(iii) in the case of a nursing school located outside of 
     the United States--

       ``(I) the nursing school has an agreement with a hospital, 
     or accredited school of nursing (as such terms are defined in 
     section 801 of the Public Health Service Act (42 U.S.C. 
     296)), located in the United States that requires the 
     students of the nursing school to complete the students' 
     clinical training at such hospital or accredited school of 
     nursing;
       ``(II) the nursing school has an agreement with an 
     accredited school of nursing located in the United States 
     providing that the students graduating from the nursing 
     school located outside of the United States also receive a 
     degree from the accredited school of nursing located in the 
     United States;
       ``(III) the nursing school certifies only Federal Stafford 
     Loans under section 428, unsubsidized Federal Stafford Loans 
     under section 428H, or Federal PLUS loans under section 428B 
     for students attending the institution;
       ``(IV) the nursing school reimburses the Secretary for the 
     cost of any loan defaults for current and former students 
     included in the calculation of the institution's cohort 
     default rate during the previous fiscal year; and
       ``(V) not less than 75 percent of the individuals who were 
     students or graduates of the nursing school, and who took the 
     National Council Licensure Examination for Registered Nurses 
     in the year preceding the year for which the institution is 
     certifying a Federal Stafford Loan under section 428, an 
     unsubsidized Federal Stafford Loan under section 428H, or a 
     Federal PLUS loan under section 428B, received a passing 
     score on such examination.''; and

       (2) in subparagraph (B), by adding at the end the 
     following:
       ``(iii) Report.--

       ``(I) In general.--Not later than 1 year after the date of 
     enactment of the Higher Education Opportunity Act, the 
     advisory panel described in clause (i) shall submit a report 
     to the Secretary and to the authorizing committees 
     recommending eligibility criteria for participation in the 
     loan programs under part B of title IV for graduate medical 
     schools that--

       ``(aa) are located outside of the United States;
       ``(bb) do not meet the requirements of subparagraph (A)(i); 
     and
       ``(cc) have a clinical training program approved by a State 
     prior to January 1, 2008.

       ``(II) Recommendations.--In the report described in 
     subclause (I), the advisory panel's eligibility criteria 
     shall include recommendations regarding the appropriate 
     levels of performance for graduate medical schools described 
     in such subclause in the following areas:

       ``(aa) Entrance requirements.
       ``(bb) Retention and graduation rates.
       ``(cc) Successful placement of students in United States 
     medical residency programs.
       ``(dd) Passage rate of students on the United States 
     Medical Licensing Examination.
       ``(ee) The extent to which State medical boards have 
     assessed the quality of such school's program of instruction, 
     including through on-site reviews.
       ``(ff) The extent to which graduates of such schools would 
     be unable to practice medicine in 1 or more States, based on 
     the judgment of a State medical board.
       ``(gg) Any areas recommended by the Comptroller General of 
     the United States under section 1101 of the Higher Education 
     Opportunity Act.
       ``(hh) Any additional areas the Secretary may require.

       ``(III) Minimum eligibility requirement.--In the 
     recommendations described in subclause (II), the criteria 
     described in subparagraph (A)(i)(I)(bb), as amended by 
     section 102(b) of the Higher Education Opportunity Act, shall 
     be a minimum eligibility requirement for a graduate medical 
     school described in subclause (I) to participate in the loan 
     programs under part B of title IV.
       ``(IV) Authority.--The Secretary may--

       ``(aa) not earlier than 180 days after the submission of 
     the report described in subclause (I), issue proposed 
     regulations establishing criteria for the eligibility of 
     graduate medical schools described in such subclause to 
     participate in the loan programs under part B of title IV 
     based on the recommendations of such report; and
       ``(bb) not earlier than one year after the issuance of 
     proposed regulations under item (aa), issue final regulations 
     establishing such criteria for eligibility.''.
       (b) Percentage Pass Rate.--Section 102(a)(2)(A)(i)(I)(bb) 
     (20 U.S.C. 1002(a)(2)(A)(i)(I)(bb)) is amended by striking 
     ``60'' and inserting ``75''.
       (c) Conforming Amendment Concerning 90/10 Enforcement.--
     Section 102(b)(1) (20 U.S.C. 1002(b)(1)) is amended--
       (1) in subparagraph (D), by adding ``and'' after the 
     semicolon;
       (2) in subparagraph (E), by striking ``; and'' and 
     inserting a period; and
       (3) by striking subparagraph (F).
       (d) Additional Institutions.--
       (1) Amendment.--Section 102 (20 U.S.C. 1002) is further 
     amended--
       (A) in subsection (b)--
       (i) by striking paragraph (1)(A) and inserting the 
     following:
       ``(A)(i) provides an eligible program of training to 
     prepare students for gainful employment in a recognized 
     occupation; or
       ``(ii)(I) provides a program leading to a baccalaureate 
     degree in liberal arts, and has provided such a program since 
     January 1, 2009; and
       ``(II) is accredited by a recognized regional accrediting 
     agency or association, and has continuously held such 
     accreditation since October 1, 2007, or earlier;''; and
       (ii) by striking paragraph (2) and inserting the following:
       ``(2) Additional institutions.--The term `proprietary 
     institution of higher education' also includes a proprietary 
     educational institution in any State that, in lieu of the 
     requirement in section 101(a)(1), admits as regular students 
     individuals--
       ``(A) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(B) who will be dually or concurrently enrolled in the 
     institution and a secondary school.''; and

[[Page 17096]]

       (B) by striking paragraph (2) of subsection (c) and 
     inserting the following:
       ``(2) Additional institutions.--The term `postsecondary 
     vocational institution' also includes an educational 
     institution in any State that, in lieu of the requirement in 
     section 101(a)(1), admits as regular students individuals--
       ``(A) who are beyond the age of compulsory school 
     attendance in the State in which the institution is located; 
     or
       ``(B) who will be dually or concurrently enrolled in the 
     institution and a secondary school.''.
       (2) Rule of construction.--Nothing in the amendment made by 
     paragraph (1)(A)(i) to section 102(b)(1)(A) of the Higher 
     Education Act of 1965 (20 U.S.C. 1002(b)(1)(A)) shall be 
     construed to negate or supercede any State laws governing 
     proprietary institutions of higher education.
       (e) Effective Date.--The amendments made by subsections 
     (a)(1), (b), and (d) shall take effect on July 1, 2010.

     SEC. 103. ADDITIONAL DEFINITIONS.

       (a) Additional Definitions.--
       (1) Amendment.--Section 103 (20 U.S.C. 1003) is amended by 
     adding at the end the following:
       ``(17) Authorizing committees.--The term `authorizing 
     committees' means the Committee on Health, Education, Labor, 
     and Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives.
       ``(18) Critical foreign language.--Except as otherwise 
     provided, the term `critical foreign language' means each of 
     the languages contained in the list of critical languages 
     designated by the Secretary in the Federal Register on August 
     2, 1985 (50 Fed. Reg. 31412; promulgated under the authority 
     of section 212(d) of the Education for Economic Security Act 
     (repealed by section 2303 of the Augustus F. Hawkins-Robert 
     T. Stafford Elementary and Secondary School Improvement 
     Amendments of 1988)), as updated by the Secretary from time 
     to time and published in the Federal Register, except that in 
     the implementation of this definition with respect to a 
     specific title, the Secretary may set priorities according to 
     the purposes of such title and the national security, 
     economic competitiveness, and educational needs of the United 
     States.
       ``(19) Distance education.--
       ``(A) In general.--Except as otherwise provided, the term 
     `distance education' means education that uses one or more of 
     the technologies described in subparagraph (B)--
       ``(i) to deliver instruction to students who are separated 
     from the instructor; and
       ``(ii) to support regular and substantive interaction 
     between the students and the instructor, synchronously or 
     asynchronously.
       ``(B) Inclusions.--For the purposes of subparagraph (A), 
     the technologies used may include--
       ``(i) the Internet;
       ``(ii) one-way and two-way transmissions through open 
     broadcast, closed circuit, cable, microwave, broadband lines, 
     fiber optics, satellite, or wireless communications devices;
       ``(iii) audio conferencing; or
       ``(iv) video cassettes, DVDs, and CD-ROMs, if the 
     cassettes, DVDs, or CD-ROMs are used in a course in 
     conjunction with any of the technologies listed in clauses 
     (i) through (iii).
       ``(20) Diploma mill.--The term `diploma mill' means an 
     entity that--
       ``(A)(i) offers, for a fee, degrees, diplomas, or 
     certificates, that may be used to represent to the general 
     public that the individual possessing such a degree, diploma, 
     or certificate has completed a program of postsecondary 
     education or training; and
       ``(ii) requires such individual to complete little or no 
     education or coursework to obtain such degree, diploma, or 
     certificate; and
       ``(B) lacks accreditation by an accrediting agency or 
     association that is recognized as an accrediting agency or 
     association of institutions of higher education (as such term 
     is defined in section 102) by--
       ``(i) the Secretary pursuant to subpart 2 of part H of 
     title IV; or
       ``(ii) a Federal agency, State government, or other 
     organization or association that recognizes accrediting 
     agencies or associations.
       ``(21) Early childhood education program.--The term `early 
     childhood education program' means--
       ``(A) a Head Start program or an Early Head Start program 
     carried out under the Head Start Act (42 U.S.C. 9831 et 
     seq.), including a migrant or seasonal Head Start program, an 
     Indian Head Start program, or a Head Start program or an 
     Early Head Start program that also receives State funding;
       ``(B) a State licensed or regulated child care program; or
       ``(C) a program that--
       ``(i) serves children from birth through age six that 
     addresses the children's cognitive (including language, early 
     literacy, and early mathematics), social, emotional, and 
     physical development; and
       ``(ii) is--

       ``(I) a State prekindergarten program;
       ``(II) a program authorized under section 619 or part C of 
     the Individuals with Disabilities Education Act; or
       ``(III) a program operated by a local educational agency.

       ``(22) Poverty line.--The term `poverty line' means the 
     poverty line (as defined in section 673(2) of the Community 
     Services Block Grant Act (42 U.S.C. 9902(2)) applicable to a 
     family of the size involved.
       ``(23) Universal design.--The term `universal design' has 
     the meaning given the term in section 3 of the Assistive 
     Technology Act of 1998 (29 U.S.C. 3002).
       ``(24) Universal design for learning.--The term `universal 
     design for learning' means a scientifically valid framework 
     for guiding educational practice that--
       ``(A) provides flexibility in the ways information is 
     presented, in the ways students respond or demonstrate 
     knowledge and skills, and in the ways students are engaged; 
     and
       ``(B) reduces barriers in instruction, provides appropriate 
     accommodations, supports, and challenges, and maintains high 
     achievement expectations for all students, including students 
     with disabilities and students who are limited English 
     proficient.''.
       (2) Redesignation and reordering of definitions.--Section 
     103 (as amended by paragraph (1)) (20 U.S.C. 1003) is further 
     amended by reordering paragraphs (1) through (16) and the 
     paragraphs added by paragraph (1) of this subsection in 
     alphabetical order based on the headings of such paragraphs, 
     and renumbering such paragraphs as so reordered.
       (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et 
     seq.) is amended--
       (1) in section 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (2) in section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (3) in section 401(f)(3) (20 U.S.C. 1070a(f)(3)), by 
     striking ``to the Committee on Appropriations'' and all that 
     follows through ``House of Representatives'' and inserting 
     ``to the Committee on Appropriations of the Senate, the 
     Committee on Appropriations of the House of Representatives, 
     and the authorizing committees'';
       (4) in section 428 (20 U.S.C. 1078)--
       (A) in subsection (c)(9)(K), by striking ``House Committee 
     on Education and the Workforce and the Senate Committee on 
     Labor and Human Resources'' and inserting ``authorizing 
     committees'';
       (B) in the matter following paragraph (2) of subsection 
     (g), by striking ``Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives'' and inserting ``authorizing 
     committees'';
       (C) in subsection (j)(9)(A) (as added by section 5(a) of 
     the Ensuring Continued Access to Student Loans Act of 2008), 
     by striking ``Committee on Health, Education, Labor, and 
     Pensions of the Senate and the Committee on Education and 
     Labor of the House of Representatives'' each place the term 
     appears and inserting ``authorizing committees''; and
       (D) in subsection (n)(4), by striking ``Committee on 
     Education and the Workforce of the House of Representatives 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``authorizing committees'';
       (5) in section 428A(c) (20 U.S.C. 1078-1(c))--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (2), by striking ``Chairperson'' and all that follows through 
     ``House of Representatives'' and inserting ``members of the 
     authorizing committees'';
       (B) in paragraph (3), by striking ``Chairperson'' and all 
     that follows through ``House of Representatives'' and 
     inserting ``members of the authorizing committees''; and
       (C) in paragraph (5), by striking ``Chairperson'' and all 
     that follows through ``House of Representatives'' and 
     inserting ``members of the authorizing committees'';
       (6) in section 432 (20 U.S.C. 1082)--
       (A) in subsection (f)(1)(C), by striking ``the Committee on 
     Education and the Workforce of the House of Representatives 
     or the Committee on Labor and Human Resources of the Senate'' 
     and inserting ``either of the authorizing committees''; and
       (B) in the matter following subparagraph (D) of subsection 
     (n)(3), by striking ``Committee on Education and the 
     Workforce of the House of Representatives and the Committee 
     on Labor and Human Resources of the Senate'' and inserting 
     ``authorizing committees'';
       (7) in section 437(c)(1) (20 U.S.C. 1087(c)(1)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';
       (8) in section 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees'';
       (9) in section 482(d) (20 U.S.C. 1089(d)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and Labor of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (10) in section 483(c) (20 U.S.C. 1090(c)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and the Workforce of the House of 
     Representatives'' and inserting ``authorizing committees'';
       (11) in section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)), by 
     striking ``Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Labor and Human 
     Resources of the Senate'' and inserting ``authorizing 
     committees'';

[[Page 17097]]

       (12) in section 486(e) (20 U.S.C. 1093(e)), by striking 
     ``Committee on Labor and Human Resources of the Senate and 
     the Committee on Education and the Workforce of the House of 
     Representatives'' and inserting ``authorizing committees''; 
     and
       (13) in section 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by 
     striking ``Committee on Labor and Human Resources of the 
     Senate and the Committee on Education and the Workforce of 
     the House of Representatives'' and inserting ``authorizing 
     committees''.

     SEC. 104. PROTECTION OF STUDENT SPEECH AND ASSOCIATION 
                   RIGHTS.

       Section 112 (20 U.S.C. 1011a) is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' before ``It is the sense''; and
       (B) by adding at the end the following:
       ``(2) It is the sense of Congress that--
       ``(A) the diversity of institutions and educational 
     missions is one of the key strengths of American higher 
     education;
       ``(B) individual institutions of higher education have 
     different missions and each institution should design its 
     academic program in accordance with its educational goals;
       ``(C) an institution of higher education should facilitate 
     the free and open exchange of ideas;
       ``(D) students should not be intimidated, harassed, 
     discouraged from speaking out, or discriminated against;
       ``(E) students should be treated equally and fairly; and
       ``(F) nothing in this paragraph shall be construed to 
     modify, change, or infringe upon any constitutionally 
     protected religious liberty, freedom, expression, or 
     association.''; and
       (2) in subsection (b)(1), by inserting ``, provided that 
     the imposition of such sanction is done objectively and 
     fairly'' after ``higher education''.

     SEC. 105. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT 
                   ASSISTANCE.

       Section 113 (20 U.S.C. 1011b) is amended--
       (1) by striking ``TREATMENT OF TERRITORIES AND TERRITORIAL 
     STUDENT ASSISTANCE'' in the heading of such section and 
     inserting ``TERRITORIAL WAIVER AUTHORITY'';
       (2) by striking ``(a) Waiver Authority.--''; and
       (3) by striking subsection (b).

     SEC. 106. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
                   QUALITY AND INTEGRITY.

       (a) Amendment.--Section 114 (20 U.S.C. 1011c) is amended to 
     read as follows:

     ``SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL 
                   QUALITY AND INTEGRITY.

       ``(a) Establishment.--There is established in the 
     Department a National Advisory Committee on Institutional 
     Quality and Integrity (in this section referred to as the 
     `Committee') to assess the process of accreditation and the 
     institutional eligibility and certification of institutions 
     of higher education (as defined in section 102) under title 
     IV.
       ``(b) Membership.--
       ``(1) In general.--The Committee shall have 18 members, of 
     which--
       ``(A) six members shall be appointed by the Secretary;
       ``(B) six members shall be appointed by the Speaker of the 
     House of Representatives, three of whom shall be appointed on 
     the recommendation of the majority leader of the House of 
     Representatives, and three of whom shall be appointed on the 
     recommendation of the minority leader of the House of 
     Representatives; and
       ``(C) six members shall be appointed by the President pro 
     tempore of the Senate, three of whom shall be appointed on 
     the recommendation of the majority leader of the Senate, and 
     three of whom shall be appointed on the recommendation of the 
     minority leader of the Senate.
       ``(2) Qualifications.--Individuals shall be appointed as 
     members of the Committee--
       ``(A) on the basis of the individuals' experience, 
     integrity, impartiality, and good judgment;
       ``(B) from among individuals who are representatives of, or 
     knowledgeable concerning, education and training beyond 
     secondary education, representing all sectors and types of 
     institutions of higher education (as defined in section 102); 
     and
       ``(C) on the basis of the individuals' technical 
     qualifications, professional standing, and demonstrated 
     knowledge in the fields of accreditation and administration 
     in higher education.
       ``(3) Terms of members.--Except as provided in paragraph 
     (5), the term of office of each member of the Committee shall 
     be for six years, except that any member appointed to fill a 
     vacancy occurring prior to the expiration of the term for 
     which the member's predecessor was appointed shall be 
     appointed for the remainder of such term.
       ``(4) Vacancy.--A vacancy on the Committee shall be filled 
     in the same manner as the original appointment was made not 
     later than 90 days after the vacancy occurs. If a vacancy 
     occurs in a position to be filled by the Secretary, the 
     Secretary shall publish a Federal Register notice soliciting 
     nominations for the position not later than 30 days after 
     being notified of the vacancy.
       ``(5) Initial terms.--The terms of office for the initial 
     members of the Committee shall be--
       ``(A) three years for members appointed under paragraph 
     (1)(A);
       ``(B) four years for members appointed under paragraph 
     (1)(B); and
       ``(C) six years for members appointed under paragraph 
     (1)(C).
       ``(6) Chairperson.--The members of the Committee shall 
     select a chairperson from among the members.
       ``(c) Functions.--The Committee shall--
       ``(1) advise the Secretary with respect to establishment 
     and enforcement of the standards of accrediting agencies or 
     associations under subpart 2 of part H of title IV;
       ``(2) advise the Secretary with respect to the recognition 
     of a specific accrediting agency or association;
       ``(3) advise the Secretary with respect to the preparation 
     and publication of the list of nationally recognized 
     accrediting agencies and associations;
       ``(4) advise the Secretary with respect to the eligibility 
     and certification process for institutions of higher 
     education under title IV, together with recommendations for 
     improvements in such process;
       ``(5) advise the Secretary with respect to the relationship 
     between--
       ``(A) accreditation of institutions of higher education and 
     the certification and eligibility of such institutions; and
       ``(B) State licensing responsibilities with respect to such 
     institutions; and
       ``(6) carry out such other advisory functions relating to 
     accreditation and institutional eligibility as the Secretary 
     may prescribe by regulation.
       ``(d) Meeting Procedures.--
       ``(1) Schedule.--
       ``(A) Biannual meetings.--The Committee shall meet not less 
     often than twice each year, at the call of the Chairperson.
       ``(B) Publication of date.--The Committee shall submit the 
     date and location of each meeting in advance to the 
     Secretary, and the Secretary shall publish such information 
     in the Federal Register not later than 30 days before the 
     meeting.
       ``(2) Agenda.--
       ``(A) Establishment.--The agenda for a meeting of the 
     Committee shall be established by the Chairperson and shall 
     be submitted to the members of the Committee upon 
     notification of the meeting.
       ``(B) Opportunity for public comment.--The agenda shall 
     include, at a minimum, opportunity for public comment during 
     the Committee's deliberations.
       ``(3) Secretary's designee.--The Secretary shall designate 
     an employee of the Department to serve as the Secretary's 
     designee to the Committee, and the Chairperson shall invite 
     the Secretary's designee to attend all meetings of the 
     Committee.
       ``(4) Federal advisory committee act.--The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall apply to the Committee, 
     except that section 14 of such Act shall not apply.
       ``(e) Report and Notice.--
       ``(1) Notice.--The Secretary shall annually publish in the 
     Federal Register--
       ``(A) a list containing, for each member of the Committee--
       ``(i) the member's name;
       ``(ii) the date of the expiration of the member's term of 
     office; and
       ``(iii) the name of the individual described in subsection 
     (b)(1) who appointed the member; and
       ``(B) a solicitation of nominations for each expiring term 
     of office on the Committee of a member appointed by the 
     Secretary.
       ``(2) Report.--Not later than the last day of each fiscal 
     year, the Committee shall make available an annual report to 
     the Secretary, the authorizing committees, and the public. 
     The annual report shall contain--
       ``(A) a detailed summary of the agenda and activities of, 
     and the findings and recommendations made by, the Committee 
     during the fiscal year preceding the fiscal year in which the 
     report is made;
       ``(B) a list of the date and location of each meeting 
     during the fiscal year preceding the fiscal year in which the 
     report is made;
       ``(C) a list of the members of the Committee; and
       ``(D) a list of the functions of the Committee, including 
     any additional functions established by the Secretary through 
     regulation.
       ``(f) Termination.--The Committee shall terminate on 
     September 30, 2014.''.
       (b) Transition.--Notwithstanding section 114 of the Higher 
     Education Act of 1965 (20 U.S.C. 1011c) (as in effect before, 
     during, and after the date of enactment of this Act)--
       (1) the term of each member appointed to the National 
     Advisory Committee on Institutional Quality and Integrity 
     before the date of enactment of this Act shall expire on the 
     date of enactment of this Act;
       (2) no new members shall be appointed to the National 
     Advisory Committee on Institutional Quality and Integrity 
     during the period beginning on the date of enactment of this 
     Act and ending on January 31, 2009; and
       (3) no meeting of the National Advisory Committee on 
     Institutional Quality and Integrity shall be convened during 
     such period.
       (c) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2009.

     SEC. 107. DRUG AND ALCOHOL ABUSE PREVENTION.

       Section 120 (20 U.S.C. 1011i) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (B) as subparagraph (D); 
     and

[[Page 17098]]

       (C) by inserting after subparagraph (A) the following:
       ``(B) determine the number of drug and alcohol-related 
     violations and fatalities that--
       ``(i) occur on the institution's campus (as defined in 
     section 485(f)(6)), or as part of any of the institution's 
     activities; and
       ``(ii) are reported to campus officials;
       ``(C) determine the number and type of sanctions described 
     in paragraph (1)(E) that are imposed by the institution as a 
     result of drug and alcohol-related violations and fatalities 
     on the institution's campus or as part of any of the 
     institution's activities; and'';
       (2) in subsection (e)(5), by striking ``$5,000,000'' and 
     all that follows through the period at the end and inserting 
     ``such sums as may be necessary for fiscal year 2009 and each 
     of the five succeeding fiscal years.''; and
       (3) by striking subsection (f).

     SEC. 108. PRIOR RIGHTS AND OBLIGATIONS.

       Section 121(a) (20 U.S.C. 1011j(a)) is amended--
       (1) in paragraph (1), by striking ``1999 and for each of 
     the 4 succeeding fiscal years'' and inserting ``2009 and for 
     each succeeding fiscal year''; and
       (2) in paragraph (2), by striking ``1999 and for each of 
     the 4 succeeding fiscal years'' and inserting ``2009 and for 
     each succeeding fiscal year''.

     SEC. 109. DIPLOMA MILLS.

       Part B of title I (20 U.S.C. 1011 et seq.) is further 
     amended by adding at the end the following:

     ``SEC. 123. DIPLOMA MILLS.

       ``(a) Information to the Public.--The Secretary shall 
     maintain information and resources on the Department's 
     website to assist students, families, and employers in 
     understanding what a diploma mill is and how to identify and 
     avoid diploma mills.
       ``(b) Collaboration.--The Secretary shall continue to 
     collaborate with the United States Postal Service, the 
     Federal Trade Commission, the Department of Justice 
     (including the Federal Bureau of Investigation), the Internal 
     Revenue Service, and the Office of Personnel Management to 
     maximize Federal efforts to--
       ``(1) prevent, identify, and prosecute diploma mills; and
       ``(2) broadly disseminate to the public information about 
     diploma mills, and resources to identify diploma mills.''.

     SEC. 110. IMPROVED INFORMATION CONCERNING THE FEDERAL STUDENT 
                   FINANCIAL AID WEBSITE.

       (a) Promotion of Federal Student Financial Aid Website.--
     Section 131 (20 U.S.C. 1015) is amended by striking 
     subsection (d) and inserting the following:
       ``(d) Promotion of the Department of Education Federal 
     Student Financial Aid Website.--The Secretary shall display a 
     link to the Federal student financial aid website of the 
     Department in a prominent place on the homepage of the 
     Department's website.
       ``(e) Enhanced Student Financial Aid Information.--
       ``(1) Implementation.--The Secretary shall continue to 
     improve the usefulness and accessibility of the information 
     provided by the Department on college planning and student 
     financial aid.
       ``(2) Dissemination.--The Secretary shall continue to make 
     the availability of the information on the Federal student 
     financial aid website of the Department widely known, through 
     a major media campaign and other forms of communication.
       ``(3) Coordination.--As a part of the efforts required 
     under this subsection, the Secretary shall create one website 
     accessible from the Department's website that fulfills the 
     requirements under subsections (b), (f), and (g).''.
       (b) Improved Information Concerning Financial Aid for 
     Military Members and Veterans.--Section 131 (as amended by 
     subsection (a)) (20 U.S.C. 1015) is further amended by adding 
     at the end the following:
       ``(f) Improved Availability and Coordination of Information 
     Concerning Student Financial Aid Programs for Military 
     Members and Veterans.--
       ``(1) Coordination.--The Secretary, in coordination with 
     the Secretary of Defense and the Secretary of Veterans 
     Affairs, shall create a searchable website that--
       ``(A) contains information, in simple and understandable 
     terms, about all Federal and State student financial 
     assistance, readmission requirements under section 484C, and 
     other student services, for which members of the Armed Forces 
     (including members of the National Guard and Reserves), 
     veterans, and the dependents of such members or veterans may 
     be eligible; and
       ``(B) is easily accessible through the website described in 
     subsection (e)(3).
       ``(2) Implementation.--Not later than one year after the 
     date of enactment of the Higher Education Opportunity Act, 
     the Secretary shall make publicly available the Armed Forces 
     information website described in paragraph (1).
       ``(3) Dissemination.--The Secretary, in coordination with 
     the Secretary of Defense and the Secretary of Veterans 
     Affairs, shall make the availability of the Armed Forces 
     information website described in paragraph (1) widely known 
     to members of the Armed Forces (including members of the 
     National Guard and Reserves), veterans, the dependents of 
     such members or veterans, States, institutions of higher 
     education, and the general public.
       ``(4) Definition.--In this subsection, the term `Federal 
     and State student financial assistance' means any grant, 
     loan, work assistance, tuition assistance, scholarship, 
     fellowship, or other form of financial aid for pursuing a 
     postsecondary education that is--
       ``(A) administered, sponsored, or supported by the 
     Department of Education, the Department of Defense, the 
     Department of Veterans Affairs, or a State; and
       ``(B) available to members of the Armed Forces (including 
     members of the National Guard and Reserves), veterans, or the 
     dependents of such members or veterans.
       ``(g) Promotion of Availability of Information Concerning 
     Other Student Financial Aid Programs.--
       ``(1) Definition.--For purposes of this subsection, the 
     term `nondepartmental student financial assistance program' 
     means any grant, loan, scholarship, fellowship, or other form 
     of financial aid for students pursuing a postsecondary 
     education that is--
       ``(A) distributed directly to the student or to the 
     student's account at an institution of higher education; and
       ``(B) operated, sponsored, or supported by a Federal 
     department or agency other than the Department of Education.
       ``(2) Availability of other student financial aid 
     information.--The Secretary shall ensure that--
       ``(A) not later than 90 days after the Secretary receives 
     the information required under paragraph (3), the eligibility 
     requirements, application procedures, financial terms and 
     conditions, and other relevant information for each 
     nondepartmental student financial assistance program are 
     searchable and accessible through the Federal student 
     financial aid website in a manner that is simple and 
     understandable for students and the students' families; and
       ``(B) the website displaying the information described in 
     subparagraph (A) includes a link to the National Database on 
     Financial Assistance for the Study of Science, Technology, 
     Engineering, and Mathematics pursuant to paragraph (4), and 
     the information on military benefits under subsection (f), 
     once such Database and information are available.
       ``(3) Nondepartmental student financial assistance 
     programs.--The Secretary shall request all Federal 
     departments and agencies to provide the information described 
     in paragraph (2)(A), and each Federal department or agency 
     shall--
       ``(A) promptly respond to surveys or other requests from 
     the Secretary for the information described in such 
     paragraph; and
       ``(B) identify for the Secretary any nondepartmental 
     student financial assistance program operated, sponsored, or 
     supported by such Federal department or agency.
       ``(4) National stem database.--
       ``(A) In general.--The Secretary shall establish and 
     maintain, on the website described in subsection (e)(3), a 
     National Database on Financial Assistance for the Study of 
     Science, Technology, Engineering, and Mathematics (in this 
     paragraph referred to as the `STEM Database'). The STEM 
     Database shall consist of information on scholarships, 
     fellowships, and other programs of Federal, State, local, 
     and, to the maximum extent practicable, private financial 
     assistance available for the study of science, technology, 
     engineering, or mathematics at the postsecondary and 
     postbaccalaureate levels.
       ``(B) Database contents.--The information maintained on the 
     STEM Database shall be displayed on the website in the 
     following manner:
       ``(i) Separate information.--The STEM Database shall 
     provide separate information for each of the fields of 
     science, technology, engineering, and mathematics, and for 
     postsecondary and postbaccalaureate programs of financial 
     assistance.
       ``(ii) Information on targeted assistance.--The STEM 
     Database shall provide specific information on any program of 
     financial assistance that is targeted to individuals based on 
     financial need, merit, or student characteristics.
       ``(iii) Contact and website information.--The STEM Database 
     shall provide--

       ``(I) standard contact information that an interested 
     person may use to contact a sponsor of any program of 
     financial assistance included in the STEM Database; and
       ``(II) if such sponsor maintains a public website, a link 
     to the website.

       ``(iv) Search and match capabilities.--The STEM Database 
     shall--

       ``(I) have a search capability that permits an individual 
     to search for information on the basis of each category of 
     the information provided through the STEM Database and on the 
     basis of combinations of categories of the information 
     provided, including--

       ``(aa) whether the financial assistance is need- or merit-
     based; and
       ``(bb) by relevant academic majors; and

       ``(II) have a match capability that--

       ``(aa) searches the STEM Database for all financial 
     assistance opportunities for which an individual may be 
     qualified to apply, based on the student characteristics 
     provided by such individual; and
       ``(bb) provides information to an individual for only those 
     opportunities for which such individual is qualified, based 
     on the student characteristics provided by such individual.
       ``(v) Recommendation and disclaimer.--The STEM Database 
     shall provide, to the users of the STEM Database--

       ``(I) a recommendation that students and families should 
     carefully review all of the application requirements prior to 
     applying for any aid or program of student financial 
     assistance; and
       ``(II) a disclaimer that the non-Federal programs of 
     student financial assistance presented

[[Page 17099]]

     in the STEM Database are not provided or endorsed by the 
     Department or the Federal Government.

       ``(C) Compilation of financial assistance information.--In 
     carrying out this paragraph, the Secretary shall--
       ``(i) consult with public and private sources of 
     scholarships, fellowships, and other programs of student 
     financial assistance; and
       ``(ii) make easily available a process for such entities to 
     provide regular and updated information about the 
     scholarships, fellowships, or other programs of student 
     financial assistance.
       ``(D) Contract authorized.--In carrying out the 
     requirements of this paragraph, the Secretary is authorized 
     to enter into a contract with a private entity with 
     demonstrated expertise in creating and maintaining databases 
     such as the one required under this paragraph, under which 
     contract the entity shall furnish, and regularly update, all 
     of the information required to be maintained on the STEM 
     Database.
       ``(5) Dissemination of information.--The Secretary shall 
     take such actions, on an ongoing basis, as may be necessary 
     to disseminate information under this subsection and to 
     encourage the use of the information by interested parties, 
     including sending notices to secondary schools and 
     institutions of higher education.''.
       (c) No User Fees for Department Financial Aid Websites.--
     Section 131 (as amended by subsection (b)) (20 U.S.C. 1015) 
     is further amended by adding at the end the following:
       ``(h) No User Fees for Department Financial Aid Websites.--
     No fee shall be charged to any individual to access--
       ``(1) a database or website of the Department that provides 
     information about higher education programs or student 
     financial assistance, including the College Navigator website 
     (or successor website) and the websites and databases 
     described in this section and section 132; or
       ``(2) information about higher education programs or 
     student financial assistance available through a database or 
     website of the Department.''.

     SEC. 111. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

       Part C of title I (20 U.S.C. 1015) is amended by adding at 
     the end the following:

     ``SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

       ``(a) Definitions.--In this section:
       ``(1) College navigator website.--The term `College 
     Navigator website' means the College Navigator website 
     operated by the Department and includes any successor 
     website.
       ``(2) Cost of attendance.--The term `cost of attendance' 
     means the average annual cost of tuition and fees, room and 
     board, books, supplies, and transportation for an institution 
     of higher education for a first-time, full-time undergraduate 
     student enrolled in the institution.
       ``(3) Net price.--The term `net price' means the average 
     yearly price actually charged to first-time, full-time 
     undergraduate students receiving student aid at an 
     institution of higher education after deducting such aid, 
     which shall be determined by calculating the difference 
     between--
       ``(A) the institution's cost of attendance for the year for 
     which the determination is made; and
       ``(B) the quotient of--
       ``(i) the total amount of need-based grant aid and merit-
     based grant aid, from Federal, State, and institutional 
     sources, provided to such students enrolled in the 
     institution for such year; and
       ``(ii) the total number of such students receiving such 
     need-based grant aid or merit-based grant aid for such year.
       ``(4) Tuition and fees.--The term `tuition and fees' means 
     the average annual cost of tuition and fees for an 
     institution of higher education for first-time, full-time 
     undergraduate students enrolled in the institution.
       ``(b) Calculations for Public Institutions.--In making the 
     calculations regarding cost of attendance, net price, and 
     tuition and fees under this section with respect to a public 
     institution of higher education, the Secretary shall 
     calculate the cost of attendance, net price, and tuition and 
     fees at such institution in the manner described in 
     subsection (a), except that--
       ``(1) the cost of attendance, net price, and tuition and 
     fees shall be calculated for first-time, full-time 
     undergraduate students enrolled in the institution who are 
     residents of the State in which such institution is located; 
     and
       ``(2) in determining the net price, the average need-based 
     grant aid and merit-based grant aid described in subsection 
     (a)(3)(B) shall be calculated based on the average total 
     amount of such aid received by first-time, full-time 
     undergraduate students who are residents of the State in 
     which such institution is located, divided by the total 
     number of such resident students receiving such need-based 
     grant aid or merit-based grant aid at such institution.
       ``(c) College Affordability and Transparency Lists.--
       ``(1) Availability of lists.--Beginning July 1, 2011, the 
     Secretary shall make publicly available on the College 
     Navigator website, in a manner that is sortable and 
     searchable by State, the following:
       ``(A) A list of the five percent of institutions in each 
     category described in subsection (d) that have the highest 
     tuition and fees for the most recent academic year for which 
     data are available.
       ``(B) A list of the five percent of institutions in each 
     such category that have the highest net price for the most 
     recent academic year for which data are available.
       ``(C) A list of the five percent of institutions in each 
     such category that have the largest increase, expressed as a 
     percentage change, in tuition and fees over the most recent 
     three academic years for which data are available, using the 
     first academic year of the three-year period as the base year 
     to compute such percentage change.
       ``(D) A list of the five percent of institutions in each 
     such category that have the largest increase, expressed as a 
     percentage change, in net price over the most recent three 
     academic years for which data are available, using the first 
     academic year of the three-year period as the base year to 
     compute such percentage change.
       ``(E) A list of the ten percent of institutions in each 
     such category that have the lowest tuition and fees for the 
     most recent academic year for which data are available.
       ``(F) A list of the ten percent of institutions in each 
     such category that have the lowest net price for the most 
     recent academic year for which data are available.
       ``(2) Annual updates.--The Secretary shall annually update 
     the lists described in paragraph (1) on the College Navigator 
     website.
       ``(d) Categories of Institutions.--The lists described in 
     subsection (c)(1) shall be compiled according to the 
     following categories of institutions that participate in 
     programs under title IV:
       ``(1) Four-year public institutions of higher education.
       ``(2) Four-year private, nonprofit institutions of higher 
     education.
       ``(3) Four-year private, for-profit institutions of higher 
     education.
       ``(4) Two-year public institutions of higher education.
       ``(5) Two-year private, nonprofit institutions of higher 
     education.
       ``(6) Two-year private, for-profit institutions of higher 
     education.
       ``(7) Less than two-year public institutions of higher 
     education.
       ``(8) Less than two-year private, nonprofit institutions of 
     higher education.
       ``(9) Less than two-year private, for-profit institutions 
     of higher education.
       ``(e) Reports by Institutions.--
       ``(1) Report to secretary.--If an institution of higher 
     education is included on a list described in subparagraph (C) 
     or (D) of subsection (c)(1), the institution shall submit to 
     the Secretary a report containing the following information:
       ``(A) A description of the major areas in the institution's 
     budget with the greatest cost increases.
       ``(B) An explanation of the cost increases described in 
     subparagraph (A).
       ``(C) A description of the steps the institution will take 
     toward the goal of reducing costs in the areas described in 
     subparagraph (A).
       ``(D) In the case of an institution that is included on the 
     same list under subparagraph (C) or (D) of subsection (c)(1) 
     for two or more consecutive years, a description of the 
     progress made on the steps described in subparagraph (C) of 
     this paragraph that were included in the institution's report 
     for the previous year.
       ``(E) If the determination of any cost increase described 
     in subparagraph (A) is not within the exclusive control of 
     the institution--
       ``(i) an explanation of the extent to which the institution 
     participates in determining such cost increase;
       ``(ii) the identification of the agency or instrumentality 
     of State government responsible for determining such cost 
     increase; and
       ``(iii) any other information the institution considers 
     relevant to the report.
       ``(2) Information to the public.--The Secretary shall--
       ``(A) issue an annual report that summarizes all of the 
     reports by institutions required under paragraph (1) to the 
     authorizing committees; and
       ``(B) publish such report on the College Navigator website.
       ``(f) Exemptions.--
       ``(1) In general.--An institution shall not be placed on a 
     list described in subparagraph (C) or (D) of subsection 
     (c)(1), and shall not be subject to the reporting required 
     under subsection (e), if the dollar amount of the 
     institution's increase in tuition and fees, or net price, as 
     applicable, is less than $600 for the three-year period 
     described in such subparagraph.
       ``(2) Update.--Beginning in 2014, and every three years 
     thereafter, the Secretary shall update the dollar amount 
     described in paragraph (1) based on annual increases in 
     inflation, using the Consumer Price Index for each of the 
     three most recent preceding years.
       ``(g) State Higher Education Spending Chart.--The Secretary 
     shall annually report on the College Navigator website, in 
     charts for each State, comparisons of--
       ``(1) the percentage change in spending by such State per 
     full-time equivalent student at all public institutions of 
     higher education in such State, for each of the five most 
     recent preceding academic years;
       ``(2) the percentage change in tuition and fees for such 
     students for all public institutions of higher education in 
     such State for each of the five most recent preceding 
     academic years; and
       ``(3) the percentage change in the total amount of need-
     based aid and merit-based aid provided by such State to full-
     time students enrolled in the public institutions of higher 
     education in the State for each of the five most recent 
     preceding academic years.
       ``(h) Net Price Calculator.--

[[Page 17100]]

       ``(1) Development of net price calculator.--Not later than 
     one year after the date of enactment of the Higher Education 
     Opportunity Act, the Secretary shall, in consultation with 
     institutions of higher education and other appropriate 
     experts, develop a net price calculator to help current and 
     prospective students, families, and other consumers estimate 
     the individual net price of an institution of higher 
     education for a student. The calculator shall be developed in 
     a manner that enables current and prospective students, 
     families, and consumers to determine an estimate of a current 
     or prospective student's individual net price at a particular 
     institution.
       ``(2) Calculation of individual net price.--For purposes of 
     this subsection, an individual net price of an institution of 
     higher education shall be calculated in the same manner as 
     the net price of such institution is calculated under 
     subsection (a)(3), except that the cost of attendance and the 
     amount of need-based and merit-based aid available shall be 
     calculated for the individual student as much as practicable.
       ``(3) Use of net price calculator by institutions.--Not 
     later than two years after the date on which the Secretary 
     makes the calculator developed under paragraph (1) available 
     to institutions of higher education, each institution of 
     higher education that receives Federal funds under title IV 
     shall make publicly available on the institution's website a 
     net price calculator to help current and prospective 
     students, families, and other consumers estimate a student's 
     individual net price at such institution of higher education. 
     Such calculator may be a net price calculator developed--
       ``(A) by the Department pursuant to paragraph (1); or
       ``(B) by the institution of higher education, if the 
     institution's calculator includes, at a minimum, the same 
     data elements included in the calculator developed under 
     paragraph (1).
       ``(4) Disclaimer.--Estimates of an individual net price 
     determined using a net price calculator required under 
     paragraph (3) shall be accompanied by a clear and conspicuous 
     notice--
       ``(A) stating that the estimate--
       ``(i) does not represent a final determination, or actual 
     award, of financial assistance;
       ``(ii) shall not be binding on the Secretary, the 
     institution of higher education, or the State; and
       ``(iii) may change;
       ``(B) stating that the student must complete the Free 
     Application for Federal Student Aid described in section 483 
     in order to be eligible for, and receive, an actual financial 
     aid award that includes Federal grant, loan, or work-study 
     assistance under title IV; and
       ``(C) including a link to the website of the Department 
     that allows students to access the Free Application for 
     Federal Student Aid described in section 483.
       ``(i) Consumer Information.--
       ``(1) Availability of title iv institution information.--
     Not later than one year after the date of enactment of the 
     Higher Education Opportunity Act, the Secretary shall make 
     publicly available on the College Navigator website, in 
     simple and understandable terms, the following information 
     about each institution of higher education that participates 
     in programs under title IV, for the most recent academic year 
     for which satisfactory data are available:
       ``(A) A statement of the institution's mission.
       ``(B) The total number of undergraduate students who 
     applied to, were admitted by, and enrolled in the 
     institution.
       ``(C) For institutions that require SAT or ACT scores to be 
     submitted, the reading, writing, mathematics, and combined 
     scores on the SAT or ACT, as applicable, for the middle 50 
     percent range of the institution's freshman class.
       ``(D) The number of first-time, full-time, and part-time 
     students enrolled at the institution, at the undergraduate 
     and (if applicable) graduate levels.
       ``(E) The number of degree- or certificate-seeking 
     undergraduate students enrolled at the institution who have 
     transferred from another institution.
       ``(F) The percentages of male and female undergraduate 
     students enrolled at the institution.
       ``(G) Of the first-time, full-time, degree- or certificate-
     seeking undergraduate students enrolled at the institution--
       ``(i) the percentage of such students who are from the 
     State in which the institution is located;
       ``(ii) the percentage of such students who are from other 
     States; and
       ``(iii) the percentage of such students who are 
     international students.
       ``(H) The percentages of first-time, full-time, degree- or 
     certificate-seeking students enrolled at the institution, 
     disaggregated by race and ethnic background.
       ``(I) The percentage of undergraduate students enrolled at 
     the institution who are formally registered with the office 
     of disability services of the institution (or the equivalent 
     office) as students with disabilities, except that if such 
     percentage is three percent or less, the institution shall 
     report `three percent or less'.
       ``(J) The percentages of first-time, full-time, degree- or 
     certificate-seeking undergraduate students enrolled at the 
     institution who obtain a degree or certificate within--
       ``(i) the normal time for completion of, or graduation 
     from, the student's program;
       ``(ii) 150 percent of the normal time for completion of, or 
     graduation from, the student's program; and
       ``(iii) 200 percent of the normal time for completion of, 
     or graduation from, the student's program;
       ``(K) The number of certificates, associate degrees, 
     baccalaureate degrees, master's degrees, professional 
     degrees, and doctoral degrees awarded by the institution.
       ``(L) The undergraduate major areas of study at the 
     institution with the highest number of degrees awarded.
       ``(M) The student-faculty ratio, the number of full-time 
     and part-time faculty, and the number of graduate assistants 
     with primarily instructional responsibilities, at the 
     institution.
       ``(N)(i) The cost of attendance for first-time, full-time 
     undergraduate students enrolled in the institution who live 
     on campus;
       ``(ii) the cost of attendance for first-time, full-time 
     undergraduate students enrolled in the institution who live 
     off campus; and
       ``(iii) in the case of a public institution of higher 
     education and notwithstanding subsection (b)(1), the costs 
     described in clauses (i) and (ii), for--
       ``(I) first-time, full-time students enrolled in the 
     institution who are residents of the State in which the 
     institution is located; and
       ``(II) first-time, full-time students enrolled in the 
     institution who are not residents of such State.
       ``(O) The average annual grant amount (including Federal, 
     State, and institutional aid) awarded to a first-time, full-
     time undergraduate student enrolled at the institution who 
     receives financial aid.
       ``(P) The average annual amount of Federal student loans 
     provided through the institution to undergraduate students 
     enrolled at the institution.
       ``(Q) The total annual grant aid awarded to undergraduate 
     students enrolled at the institution, from the Federal 
     Government, a State, the institution, and other sources known 
     by the institution.
       ``(R) The percentage of first-time, full-time undergraduate 
     students enrolled at the institution receiving Federal, 
     State, and institutional grants, student loans, and any other 
     type of student financial assistance known by the 
     institution, provided publicly or through the institution, 
     such as Federal work-study funds.
       ``(S) The number of students enrolled at the institution 
     receiving Federal Pell Grants.
       ``(T) The institution's cohort default rate, as defined 
     under section 435(m).
       ``(U) The information on campus safety required to be 
     collected under section 485(i).
       ``(V) A link to the institution's website that provides, in 
     an easily accessible manner, the following information:
       ``(i) Student activities offered by the institution.
       ``(ii) Services offered by the institution for individuals 
     with disabilities.
       ``(iii) Career and placement services offered by the 
     institution to students during and after enrollment.
       ``(iv) Policies of the institution related to transfer of 
     credit from other institutions.
       ``(W) A link to the appropriate section of the Bureau of 
     Labor Statistics website that provides information on 
     regional data on starting salaries in all major occupations.
       ``(X) Information required to be submitted under paragraph 
     (4) and a link to the institution pricing summary page 
     described in paragraph (5).
       ``(Y) In the case of an institution that was required to 
     submit a report under subsection (e)(1), a link to such 
     report.
       ``(Z) The availability of alternative tuition plans, which 
     may include guaranteed tuition plans.
       ``(2) Annual updates.--The Secretary shall annually update 
     the information described in paragraph (1) on the College 
     Navigator website.
       ``(3) Consultation.--The Secretary shall regularly consult 
     with current and prospective college students, family members 
     of such students, institutions of higher education, and other 
     experts to improve the usefulness and relevance of the 
     College Navigator website, with respect to the presentation 
     of the consumer information collected in paragraph (1).
       ``(4) Data collection.--The Commissioner for Education 
     Statistics shall continue to update and improve the 
     Integrated Postsecondary Education Data System (referred to 
     in this section as `IPEDS'), including the reporting of 
     information by institutions and the timeliness of the data 
     collected.
       ``(5) Institution pricing summary page.--
       ``(A) Availability of list of participating institutions.--
     The Secretary shall make publicly available on the College 
     Navigator website in a sortable and searchable format a list 
     of all institutions of higher education that participate in 
     programs under title IV, which list shall, for each 
     institution, include the following:
       ``(i) The tuition and fees for each of the three most 
     recent academic years for which data are available.
       ``(ii) The net price for each of the three most recent 
     available academic years for which data are available.
       ``(iii)(I) During the period beginning July 1, 2010, and 
     ending June 30, 2013, the net price for students receiving 
     Federal student financial aid under title IV, disaggregated 
     by the income categories described in paragraph (6), for the 
     most recent academic year for which data are available.
       ``(II) Beginning July 1, 2013, the net price for students 
     receiving Federal student financial aid under title IV, 
     disaggregated by the income categories described in paragraph 
     (6), for each of the three most recent academic years for 
     which data are available.

[[Page 17101]]

       ``(iv) The average annual percentage change and average 
     annual dollar change in such institution's tuition and fees 
     for each of the three most recent academic years for which 
     data are available.
       ``(v) The average annual percentage change and average 
     annual dollar change in such institution's net price for each 
     of the three most recent preceding academic years for which 
     data are available.
       ``(vi) A link to the webpage on the College Navigator 
     website that provides the information described in paragraph 
     (1) for the institution.
       ``(B) Annual updates.--The Secretary shall annually update 
     the lists described in subparagraph (A) on the College 
     Navigator website.
       ``(6) Income categories.--
       ``(A) In general.--For purposes of reporting the 
     information required under this subsection, the following 
     income categories shall apply for students who receive 
     Federal student financial aid under title IV:
       ``(i) $0-30,000.
       ``(ii) $30,001-48,000.
       ``(iii) $48,001-75,000.
       ``(iv) $75,001-110,000.
       ``(v) $110,001 and more.
       ``(B) Adjustment.--The Secretary may adjust the income 
     categories listed in subparagraph (A) using the Consumer 
     Price Index if the Secretary determines such adjustment is 
     necessary.
       ``(j) Multi-Year Tuition Calculator.--
       ``(1) Development of multi-year tuition calculator.--Not 
     later than one year after the date of enactment of the Higher 
     Education Opportunity Act, the Secretary shall, in 
     consultation with institutions of higher education, financial 
     planners, and other appropriate experts, develop a multi-year 
     tuition calculator to help current and prospective students, 
     families of such students, and other consumers estimate the 
     amount of tuition an individual may pay to attend an 
     institution of higher education in future years.
       ``(2) Calculation of multi-year tuition.--The multi-year 
     tuition calculator described in paragraph (1) shall--
       ``(A) allow an individual to select an institution of 
     higher education for which the calculation shall be made;
       ``(B) calculate an estimate of tuition and fees for each 
     year of the normal duration of the program of study at such 
     institution by--
       ``(i) using the tuition and fees for such institution, as 
     reported under subsection (i)(5)(A)(i), for the most recent 
     academic year for which such data are reported; and
       ``(ii) determining an estimated annual percentage change 
     for each year for which the calculation is made, based on the 
     annual percentage change in such institution's tuition and 
     fees, as reported under subsection (i)(5)(A)(iv), for the 
     most recent three-year period for which such data are 
     reported;
       ``(C) calculate an estimate of the total amount of tuition 
     and fees to complete a program of study at such institution, 
     based on the normal duration of such program, using the 
     estimate calculated under subparagraph (B) for each year of 
     the program of study;
       ``(D) provide the individual with the option to replace the 
     estimated annual percentage change described in subparagraph 
     (B)(ii) with an alternative annual percentage change 
     specified by the individual, and calculate an estimate of 
     tuition and fees for each year and an estimate of the total 
     amount of tuition and fees using the alternative percentage 
     change;
       ``(E) in the case of an institution that offers a multi-
     year tuition guarantee program, allow the individual to have 
     the estimates of tuition and fees described in subparagraphs 
     (B) and (C) calculated based on the provisions of such 
     guarantee program for the tuition and fees charged to a 
     student, or cohort of students, enrolled for the duration of 
     the program of study; and
       ``(F) include any other features or information determined 
     to be appropriate by the Secretary.
       ``(3) Availability and comparison.--The multi-year tuition 
     calculator described in paragraph (1) shall be available on 
     the College Navigator website and shall allow current and 
     prospective students, families of such students, and 
     consumers to compare information and estimates under this 
     subsection for multiple institutions of higher education.
       ``(4) Disclaimer.--Each calculation of estimated tuition 
     and fees made using the multi-year tuition calculator 
     described in paragraph (1) shall be accompanied by a clear 
     and conspicuous notice--
       ``(A) stating that the calculation--
       ``(i) is only an estimate and not a guarantee of the actual 
     amount the student may be charged;
       ``(ii) is not binding on the Secretary, the institution of 
     higher education, or the State; and
       ``(iii) may change, subject to the availability of 
     financial assistance, State appropriations, and other 
     factors;
       ``(B) stating that the student must complete the Free 
     Application for Federal Student Aid described in section 483 
     in order to be eligible for, and receive, an actual financial 
     aid award that includes Federal grant, loan, or work-study 
     assistance under title IV; and
       ``(C) including a link to the website of the Department 
     that allows students to access the Free Application for 
     Federal Student Aid described in section 483.
       ``(k) Student Aid Recipient Survey.--
       ``(1) Survey required.--The Secretary, acting through the 
     Commissioner for Education Statistics, shall conduct, on a 
     State-by-State basis, a survey of recipients of Federal 
     student financial aid under title IV--
       ``(A) to identify the population of students receiving such 
     Federal student financial aid;
       ``(B) to describe the income distribution and other 
     socioeconomic characteristics of recipients of such Federal 
     student financial aid;
       ``(C) to describe the combinations of aid from Federal, 
     State, and private sources received by such recipients from 
     all income categories;
       ``(D) to describe the--
       ``(i) debt burden of such loan recipients, and their 
     capacity to repay their education debts; and
       ``(ii) the impact of such debt burden on the recipients' 
     course of study and post-graduation plans;
       ``(E) to describe the impact of the cost of attendance of 
     postsecondary education in the determination by students of 
     what institution of higher education to attend; and
       ``(F) to describe how the costs of textbooks and other 
     instructional materials affect the costs of postsecondary 
     education for students.
       ``(2) Frequency.--The survey shall be conducted on a 
     regular cycle and not less often than once every four years.
       ``(3) Survey design.--The survey shall be representative of 
     students from all types of institutions, including full-time 
     and part-time students, undergraduate, graduate, and 
     professional students, and current and former students.
       ``(4) Dissemination.--The Commissioner for Education 
     Statistics shall disseminate to the public, in printed and 
     electronic form, the information resulting from the survey.
       ``(l) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out this 
     section.''.

     SEC. 112. TEXTBOOK INFORMATION.

       (a) Amendment.--Part C of title I (20 U.S.C. 1015) is 
     further amended by adding after section 132 (as added by 
     section 111 of this Act) the following new section:

     ``SEC. 133. TEXTBOOK INFORMATION.

       ``(a) Purpose and Intent.--The purpose of this section is 
     to ensure that students have access to affordable course 
     materials by decreasing costs to students and enhancing 
     transparency and disclosure with respect to the selection, 
     purchase, sale, and use of course materials. It is the intent 
     of this section to encourage all of the involved parties, 
     including faculty, students, administrators, institutions of 
     higher education, bookstores, distributors, and publishers, 
     to work together to identify ways to decrease the cost of 
     college textbooks and supplemental materials for students 
     while supporting the academic freedom of faculty members to 
     select high quality course materials for students.
       ``(b) Definitions.--In this section:
       ``(1) Bundle.--The term `bundle' means one or more college 
     textbooks or other supplemental materials that may be 
     packaged together to be sold as course materials for one 
     price.
       ``(2) College textbook.--The term `college textbook' means 
     a textbook or a set of textbooks, used for, or in conjunction 
     with, a course in postsecondary education at an institution 
     of higher education.
       ``(3) Course schedule.--The term `course schedule' means a 
     listing of the courses or classes offered by an institution 
     of higher education for an academic period, as defined by the 
     institution.
       ``(4) Custom textbook.--The term `custom textbook'--
       ``(A) means a college textbook that is compiled by a 
     publisher at the direction of a faculty member or other 
     person or adopting entity in charge of selecting course 
     materials at an institution of higher education; and
       ``(B) may include, alone or in combination, items such as 
     selections from original instructor materials, previously 
     copyrighted publisher materials, copyrighted third-party 
     works, and elements unique to a specific institution, such as 
     commemorative editions.
       ``(5) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 102.
       ``(6) Integrated textbook.--The term `integrated textbook' 
     means a college textbook that is--
       ``(A) combined with materials developed by a third party 
     and that, by third-party contractual agreement, may not be 
     offered by publishers separately from the college textbook 
     with which the materials are combined; or
       ``(B) combined with other materials that are so 
     interrelated with the content of the college textbook that 
     the separation of the college textbook from the other 
     materials would render the college textbook unusable for its 
     intended purpose.
       ``(7) Publisher.--The term `publisher' means a publisher of 
     college textbooks or supplemental materials involved in or 
     affecting interstate commerce.
       ``(8) Substantial content.--The term `substantial content' 
     means parts of a college textbook such as new chapters, new 
     material covering additional eras of time, new themes, or new 
     subject matter.
       ``(9) Supplemental material.--The term `supplemental 
     material' means educational material developed to accompany a 
     college textbook that--
       ``(A) may include printed materials, computer disks, 
     website access, and electronically distributed materials; and
       ``(B) is not being used as a component of an integrated 
     textbook.
       ``(c) Publisher Requirements.--
       ``(1) College textbook pricing information.--When a 
     publisher provides a faculty

[[Page 17102]]

     member or other person or adopting entity in charge of 
     selecting course materials at an institution of higher 
     education receiving Federal financial assistance with 
     information regarding a college textbook or supplemental 
     material, the publisher shall include, with any such 
     information and in writing (which may include electronic 
     communications), the following:
       ``(A) The price at which the publisher would make the 
     college textbook or supplemental material available to the 
     bookstore on the campus of, or otherwise associated with, 
     such institution of higher education and, if available, the 
     price at which the publisher makes the college textbook or 
     supplemental material available to the public.
       ``(B) The copyright dates of the three previous editions of 
     such college textbook, if any.
       ``(C) A description of the substantial content revisions 
     made between the current edition of the college textbook or 
     supplemental material and the previous edition, if any.
       ``(D)(i) Whether the college textbook or supplemental 
     material is available in any other format, including 
     paperback and unbound; and
       ``(ii) for each other format of the college textbook or 
     supplemental material, the price at which the publisher would 
     make the college textbook or supplemental material in the 
     other format available to the bookstore on the campus of, or 
     otherwise associated with, such institution of higher 
     education and, if available, the price at which the publisher 
     makes such other format of the college textbook or 
     supplemental material available to the public.
       ``(2) Unbundling of college textbooks from supplemental 
     materials.--A publisher that sells a college textbook and any 
     supplemental material accompanying such college textbook as a 
     single bundle shall also make available the college textbook 
     and each supplemental material as separate and unbundled 
     items, each separately priced.
       ``(3) Custom textbooks.--To the maximum extent practicable, 
     a publisher shall provide the information required under this 
     subsection with respect to the development and provision of 
     custom textbooks.
       ``(d) Provision of ISBN College Textbook Information in 
     Course Schedules.--To the maximum extent practicable, each 
     institution of higher education receiving Federal financial 
     assistance shall--
       ``(1) disclose, on the institution's Internet course 
     schedule and in a manner of the institution's choosing, the 
     International Standard Book Number and retail price 
     information of required and recommended college textbooks and 
     supplemental materials for each course listed in the 
     institution's course schedule used for preregistration and 
     registration purposes, except that--
       ``(A) if the International Standard Book Number is not 
     available for such college textbook or supplemental material, 
     then the institution shall include in the Internet course 
     schedule the author, title, publisher, and copyright date for 
     such college textbook or supplemental material; and
       ``(B) if the institution determines that the disclosure of 
     the information described in this subsection is not 
     practicable for a college textbook or supplemental material, 
     then the institution shall so indicate by placing the 
     designation `To Be Determined' in lieu of the information 
     required under this subsection; and
       ``(2) if applicable, include on the institution's written 
     course schedule a notice that textbook information is 
     available on the institution's Internet course schedule, and 
     the Internet address for such schedule.
       ``(e) Availability of Information for College Bookstores.--
     An institution of higher education receiving Federal 
     financial assistance shall make available to a college 
     bookstore that is operated by, or in a contractual 
     relationship or otherwise affiliated with, the institution, 
     as soon as is practicable upon the request of such college 
     bookstore, the most accurate information available 
     regarding--
       ``(1) the institution's course schedule for the subsequent 
     academic period; and
       ``(2) for each course or class offered by the institution 
     for the subsequent academic period--
       ``(A) the information required by subsection (d)(1) for 
     each college textbook or supplemental material required or 
     recommended for such course or class;
       ``(B) the number of students enrolled in such course or 
     class; and
       ``(C) the maximum student enrollment for such course or 
     class.
       ``(f) Additional Information.--An institution disclosing 
     the information required by subsection (d)(1) is encouraged 
     to disseminate to students information regarding--
       ``(1) available institutional programs for renting 
     textbooks or for purchasing used textbooks;
       ``(2) available institutional guaranteed textbook buy-back 
     programs;
       ``(3) available institutional alternative content delivery 
     programs; or
       ``(4) other available institutional cost-saving strategies.
       ``(g) GAO Report.--Not later than July 1, 2013, the 
     Comptroller General of the United States shall report to the 
     authorizing committees on the implementation of this section 
     by institutions of higher education, college bookstores, and 
     publishers. The report shall particularly examine--
       ``(1) the availability of college textbook information on 
     course schedules;
       ``(2) the provision of pricing information to faculty of 
     institutions of higher education by publishers;
       ``(3) the use of bundled and unbundled material in the 
     college textbook marketplace, including the adoption of 
     unbundled materials by faculty and the use of integrated 
     textbooks by publishers; and
       ``(4) the implementation of this section by institutions of 
     higher education, including the costs and benefits to such 
     institutions and to students.
       ``(h) Rule of Construction.--Nothing in this section shall 
     be construed to supercede the institutional autonomy or 
     academic freedom of instructors involved in the selection of 
     college textbooks, supplemental materials, and other 
     classroom materials.
       ``(i) No Regulatory Authority.--The Secretary shall not 
     promulgate regulations with respect to this section.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2010.

     SEC. 113. DATABASE OF STUDENT INFORMATION PROHIBITED.

       Part C of title I (20 U.S.C. 1015) is further amended by 
     adding after section 133 (as added by section 112 of this 
     Act) the following:

     ``SEC. 134. DATABASE OF STUDENT INFORMATION PROHIBITED.

       ``(a) Prohibition.--Except as described in subsection (b), 
     nothing in this Act shall be construed to authorize the 
     development, implementation, or maintenance of a Federal 
     database of personally identifiable information on 
     individuals receiving assistance under this Act, attending 
     institutions receiving assistance under this Act, or 
     otherwise involved in any studies or other collections of 
     data under this Act, including a student unit record system, 
     an education bar code system, or any other system that tracks 
     individual students over time.
       ``(b) Exception.--The provisions of subsection (a) shall 
     not apply to a system (or a successor system) that--
       ``(1) is necessary for the operation of programs authorized 
     by title II, IV, or VII; and
       ``(2) was in use by the Secretary, directly or through a 
     contractor, as of the day before the date of enactment of the 
     Higher Education Opportunity Act.
       ``(c) State Databases.--Nothing in this Act shall prohibit 
     a State or a consortium of States from developing, 
     implementing, or maintaining State-developed databases that 
     track individuals over time, including student unit record 
     systems that contain information related to enrollment, 
     attendance, graduation and retention rates, student financial 
     assistance, and graduate employment outcomes.''.

     SEC. 114. IN-STATE TUITION RATES FOR ARMED FORCES MEMBERS, 
                   SPOUSES, AND DEPENDENT CHILDREN.

       Part C of title I (20 U.S.C. 1015) is further amended by 
     adding after section 134 (as added by section 113 of this 
     Act) the following:

     ``SEC. 135. IN-STATE TUITION RATES FOR MEMBERS OF THE ARMED 
                   FORCES ON ACTIVE DUTY, SPOUSES, AND DEPENDENT 
                   CHILDREN.

       ``(a) Requirement.--In the case of a member of the armed 
     forces who is on active duty for a period of more than 30 
     days and whose domicile or permanent duty station is in a 
     State that receives assistance under this Act, such State 
     shall not charge such member (or the spouse or dependent 
     child of such member) tuition for attendance at a public 
     institution of higher education in the State at a rate that 
     is greater than the rate charged for residents of the State.
       ``(b) Continuation.--If a member of the armed forces (or 
     the spouse or dependent child of a member) pays tuition at a 
     public institution of higher education in a State at a rate 
     determined by subsection (a), the provisions of subsection 
     (a) shall continue to apply to such member, spouse, or 
     dependent while continuously enrolled at that institution, 
     notwithstanding a subsequent change in the permanent duty 
     station of the member to a location outside the State.
       ``(c) Effective Date.--This section shall take effect at 
     each public institution of higher education in a State that 
     receives assistance under this Act for the first period of 
     enrollment at such institution that begins after July 1, 
     2009.
       ``(d) Definitions.--In this section, the terms `armed 
     forces' and `active duty for a period of more than 30 days' 
     have the meanings given those terms in section 101 of title 
     10, United States Code.''.

     SEC. 115. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT 
                   PROGRAM.

       Part C of title I of the Higher Education Act of 1965 (20 
     U.S.C. 1015) is further amended by adding after section 135 
     (as added by section 114 of this Act) the following:

     ``SEC. 136. STATE HIGHER EDUCATION INFORMATION SYSTEM PILOT 
                   PROGRAM.

       ``(a) Purpose.--It is the purpose of this section to carry 
     out a pilot program to assist not more than five States to 
     develop State-level postsecondary student data systems to--
       ``(1) improve the capacity of States and institutions of 
     higher education to generate more comprehensive and 
     comparable data, in order to develop better-informed 
     educational policy at the State level and to evaluate the 
     effectiveness of institutional performance while protecting 
     the confidentiality of students' personally identifiable 
     information; and
       ``(2) identify how to best minimize the data-reporting 
     burden placed on institutions of higher education, 
     particularly smaller institutions, and to maximize and 
     improve the information institutions receive from the data 
     systems, in order to assist institutions in improving 
     educational practice and postsecondary outcomes.
       ``(b) Definition of Eligible Entity.--In this section, the 
     term `eligible entity' means--

[[Page 17103]]

       ``(1) a State higher education system; or
       ``(2) a consortium of State higher education systems, or a 
     consortium of individual institutions of higher education, 
     that is broadly representative of institutions in different 
     sectors and geographic locations.
       ``(c) Competitive Grants.--
       ``(1) Grants authorized.--The Secretary shall award grants, 
     on a competitive basis, to not more than five eligible 
     entities to enable the eligible entities to--
       ``(A) design, test, and implement systems of postsecondary 
     student data that provide the maximum benefits to States, 
     institutions of higher education, and State policymakers; and
       ``(B) examine the costs and burdens involved in 
     implementing a State-level postsecondary student data system.
       ``(2) Duration.--A grant awarded under this section shall 
     be for a period of not more than three years.
       ``(d) Application Requirements.--An eligible entity 
     desiring a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require, including a description of--
       ``(1) how the eligible entity will ensure that student 
     privacy is protected and that individually identifiable 
     information about students, the students' achievements, and 
     the students' families remains confidential in accordance 
     with section 444 of the General Education Provisions Act 
     (Family Educational Rights and Privacy Act of 1974) (20 
     U.S.C. 1232g); and
       ``(2) how the activities funded by the grant will be 
     supported after the three-year grant period.
       ``(e) Use of Funds.--A grant awarded under this section 
     shall be used to--
       ``(1) design, develop, and implement the components of a 
     comprehensive postsecondary student data system with the 
     capacity to transmit student information within a State;
       ``(2) improve the capacity of institutions of higher 
     education to analyze and use student data;
       ``(3) select and define common data elements, data quality, 
     and other elements that will enable the data system to--
       ``(A) serve the needs of institutions of higher education 
     for institutional research and improvement;
       ``(B) provide students and the students' families with 
     useful information for decision-making about postsecondary 
     education; and
       ``(C) provide State policymakers with improved information 
     to monitor and guide efforts to improve student outcomes and 
     success in higher education;
       ``(4) estimate costs and burdens at the institutional level 
     for the reporting system for different types of institutions; 
     and
       ``(5) test the feasibility of protocols and standards for 
     maintaining data privacy and data access.
       ``(f) Evaluation; Reports.--Not later than six months after 
     the end of the projects funded by grants awarded under this 
     section, the Secretary shall--
       ``(1) conduct a comprehensive evaluation of the pilot 
     program authorized by this section; and
       ``(2) report the Secretary's findings, as well as 
     recommendations regarding the implementation of State-level 
     postsecondary student data systems, to the authorizing 
     committees.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.''.

     SEC. 116. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

       Part C of title I (20 U.S.C. 1015) is further amended by 
     adding after section 136 (as added by section 115 of this 
     Act) the following new section:

     ``SEC. 137. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.

       ``(a) Maintenance of Effort Required.--A State shall 
     provide--
       ``(1) for public institutions of higher education in such 
     State for any academic year beginning on or after July 1, 
     2008, an amount which is equal to or greater than the average 
     amount provided for non-capital and non-direct research and 
     development expenses or costs by such State to such 
     institutions of higher education during the five most recent 
     preceding academic years for which satisfactory data are 
     available; and
       ``(2) for private institutions of higher education in such 
     State for any academic year beginning on or after July 1, 
     2008, an amount which is equal to or greater than the average 
     amount provided for student financial aid for paying costs 
     associated with postsecondary education by such State to such 
     institutions during the five most recent preceding academic 
     years for which satisfactory data are available.
       ``(b) Adjustments for Biennial Appropriations.--The 
     Secretary shall take into consideration any adjustments to 
     the calculations under subsection (a) that may be required to 
     accurately reflect funding levels for postsecondary education 
     in States with biennial appropriation cycles.
       ``(c) Waiver.--The Secretary shall waive the requirements 
     of subsection (a), if the Secretary determines that such a 
     waiver would be equitable due to exceptional or 
     uncontrollable circumstances, such as a natural disaster or a 
     precipitous and unforseen decline in the financial resources 
     of a State or State educational agency, as appropriate.
       ``(d) Violation of Maintenance of Effort.--Notwithstanding 
     any other provision of law, the Secretary shall withhold from 
     any State that violates subsection (a) and does not receive a 
     waiver pursuant to subsection (c) any amount that would 
     otherwise be available to the State under section 781 until 
     such State has made significant efforts to correct such 
     violation.''.

     SEC. 117. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF 
                   FEDERAL STUDENT FINANCIAL ASSISTANCE.

       Section 141 (20 U.S.C. 1018) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``operational'' and 
     inserting ``administrative and oversight''; and
       (B) in paragraph (2)(D), by striking ``of the operational 
     functions'' and inserting ``and administration'';
       (2) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by striking ``the information 
     systems administered by the PBO, and other functions 
     performed by the PBO'' and inserting ``the Federal student 
     financial assistance programs authorized under title IV''; 
     and
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) assist the Chief Operating Officer in identifying 
     goals for--
       ``(i) the administration of the systems used to administer 
     the Federal student financial assistance programs authorized 
     under title IV; and
       ``(ii) the updating of such systems to current 
     technology.'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``administration of the information and 
     financial systems that support'' and inserting ``the 
     administration of Federal''; and
       (II) by striking ``this title'' and inserting ``title IV'';

       (ii) in subparagraph (A)--

       (I) in the matter preceding clause (i), by striking ``of 
     the delivery system for Federal student assistance'' and 
     inserting ``for the Federal student financial assistance 
     programs authorized under title IV'';
       (II) by striking clauses (i) and (ii) and inserting the 
     following:

       ``(i) the collection, processing, and transmission of data 
     to students, institutions, lenders, State agencies, and other 
     authorized parties;
       ``(ii) the design and technical specifications for software 
     development and procurement for systems supporting the 
     Federal student financial assistance programs authorized 
     under title IV;'';

       (III) in clause (iii), by striking ``delivery'' and 
     inserting ``administration'';
       (IV) in clause (iv)--

       (aa) by inserting ``the Federal'' after ``supporting'';
       (bb) by striking ``under this title'' and inserting 
     ``authorized under title IV''; and
       (cc) by striking ``and'' after the semicolon;

       (V) in clause (v), by striking ``systems that support those 
     programs.'' and inserting ``the administration of the Federal 
     student financial assistance programs authorized under title 
     IV; and''; and
       (VI) by adding at the end the following:

       ``(vi) ensuring the integrity of the Federal student 
     financial assistance programs authorized under title IV.''; 
     and
       (iii) in subparagraph (B), by striking ``operations and 
     services'' and inserting ``activities and functions''; and
       (3) in subsection (c)--
       (A) in the subsection heading, by striking ``Performance 
     Plan and Report'' and inserting ``Performance Plan, Report, 
     and Briefing'';
       (B) in paragraph (1)(C)--
       (i) by striking ``this title'' each place the term appears 
     and inserting ``under title IV'';
       (ii) in clause (iii), by striking ``information and 
     delivery''; and
       (iii) in clause (iv)--

       (I) by striking ``Developing an'' and inserting 
     ``Developing''; and
       (II) by striking ``delivery and information system'' and 
     inserting ``systems'';

       (C) in paragraph (2)--
       (i) in subparagraph (A), by inserting ``the'' after ``PBO 
     and''; and
       (ii) in subparagraph (B), by striking ``Officer'' and 
     inserting ``Officers'';
       (D) in paragraph (3), by inserting ``students,'' after 
     ``consult with''; and
       (E) by adding at the end the following:
       ``(4) Briefing on enforcement of student loan provisions.--
     The Secretary shall, upon request, provide a briefing to the 
     members of the authorizing committees on the steps the 
     Department has taken to ensure--
       ``(A) the integrity of the student loan programs; and
       ``(B) that lenders and guaranty agencies are adhering to 
     the requirements of title IV.'';
       (4) in subsection (d)--
       (A) in paragraph (1), by striking the second sentence; and
       (B) in paragraph (5)--
       (i) in subparagraph (B), by striking ``paragraph (2)'' and 
     inserting ``paragraph (4)''; and
       (ii) in subparagraph (C), by striking ``this'';
       (5) in subsection (f)--
       (A) in paragraph (2), by striking ``to borrowers'' and 
     inserting ``to students, borrowers,''; and
       (B) in paragraph (3)(A), by striking ``(1)(A)'' and 
     inserting ``(1)'';
       (6) in subsection (g)(3), by striking ``not more than 25'';

[[Page 17104]]

       (7) in subsection (h), by striking ``organizational 
     effectiveness'' and inserting ``effectiveness'';
       (8) by striking subsection (i);
       (9) by redesignating subsection (j) as subsection (i); and
       (10) in subsection (i) (as redesignated by paragraph (9)), 
     by striking ``, including transition costs''.

     SEC. 118. PROCUREMENT FLEXIBILITY.

       Section 142 (20 U.S.C. 1018a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by striking ``for information systems supporting the 
     programs authorized under title IV''; and
       (ii) by striking ``and'' after the semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) through the Chief Operating Officer--
       ``(A) to the maximum extent practicable, utilize 
     procurement systems that streamline operations, improve 
     internal controls, and enhance management; and
       ``(B) assess the efficiency of such systems and assess such 
     systems' ability to meet PBO requirements.'';
       (2) by striking subsection (c)(2) and inserting the 
     following:
       ``(2) Fee for service arrangements.--The Chief Operating 
     Officer shall, when appropriate and consistent with the 
     purposes of the PBO, acquire services related to the 
     functions set forth in section 141(b)(2) from any entity that 
     has the capability and capacity to meet the requirements set 
     by the PBO. The Chief Operating Officer is authorized to pay 
     fees that are equivalent to those paid by other entities to 
     an organization that provides services that meet the 
     requirements of the PBO, as determined by the Chief Operating 
     Officer.'';
       (3) in subsection (d)(2)(B), by striking ``on Federal 
     Government contracts'';
       (4) in subsection (g)--
       (A) in paragraph (4)(A)--
       (i) in the subparagraph heading, by striking ``Sole 
     source.--'' and inserting ``Single-source basis.--''; and
       (ii) by striking ``sole-source'' and inserting ``single-
     source''; and
       (B) in paragraph (7), by striking ``sole-source'' and 
     inserting ``single-source'';
       (5) in subsection (h)(2)(A), by striking ``sole-source'' 
     and inserting ``single-source''; and
       (6) in subsection (l), by striking paragraph (3) and 
     inserting the following:
       ``(3) Single-source basis.--The term `single-source basis', 
     with respect to an award of a contract, means that the 
     contract is awarded to a source after soliciting an offer or 
     offers from, and negotiating with, only such source (although 
     such source is not the only source in the marketplace capable 
     of meeting the need) because such source is the most 
     advantageous source for purposes of the award.''.

     SEC. 119. CERTIFICATION REGARDING THE USE OF CERTAIN FEDERAL 
                   FUNDS.

       (a) Prohibition.--No Federal funds received under the 
     Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) by an 
     institution of higher education or other postsecondary 
     educational institution may be used to pay any person for 
     influencing or attempting to influence an officer or employee 
     of any agency, a Member of Congress, an officer or employee 
     of Congress, or an employee of a Member of Congress in 
     connection with any Federal action described in subsection 
     (b).
       (b) Applicability.--The prohibition in subsection (a) 
     applies with respect to the following Federal actions:
       (1) The awarding of any Federal contract.
       (2) The making of any Federal grant.
       (3) The making of any Federal loan.
       (4) The entering into of any Federal cooperative agreement.
       (5) The extension, continuation, renewal, amendment, or 
     modification of any Federal contract, grant, loan, or 
     cooperative agreement.
       (c) Lobbying and Earmarks.--No Federal student aid funding 
     under the Higher Education Act of 1965 (20 U.S.C. 1001 et 
     seq.) may be used to hire a registered lobbyist or pay any 
     person or entity for securing an earmark.
       (d) Certification.--Each institution of higher education or 
     other postsecondary educational institution receiving Federal 
     funding under the Higher Education Act of 1965 (20 U.S.C. 
     1001 et seq.), as a condition for receiving such funding, 
     shall annually certify to the Secretary of Education that the 
     requirements of subsections (a) through (c) have been met.
       (e) Actions To Implement and Enforce.--The Secretary of 
     Education shall take such actions as are necessary to ensure 
     that the provisions of this section are implemented and 
     enforced.

     SEC. 120. INSTITUTION AND LENDER REPORTING AND DISCLOSURE 
                   REQUIREMENTS.

       Title I (as amended by this title) (20 U.S.C. 1001 et seq.) 
     is further amended by adding at the end the following:

  ``PART E--LENDER AND INSTITUTION REQUIREMENTS RELATING TO EDUCATION 
                                 LOANS

     ``SEC. 151. DEFINITIONS.

       ``In this part:
       ``(1) Agent.--The term `agent' means an officer or employee 
     of a covered institution or an institution-affiliated 
     organization.
       ``(2) Covered institution.--The term `covered institution' 
     means any institution of higher education, as such term is 
     defined in section 102, that receives any Federal funding or 
     assistance.
       ``(3) Education loan.--The term `education loan' (except 
     when used as part of the term `private education loan') 
     means--
       ``(A) any loan made, insured, or guaranteed under part B of 
     title IV;
       ``(B) any loan made under part D of title IV; or
       ``(C) a private education loan.
       ``(4) Eligible lender.--The term `eligible lender' has the 
     meaning given such term in section 435(d).
       ``(5) Institution-affiliated organization.--The term 
     `institution-affiliated organization'--
       ``(A) means any organization that--
       ``(i) is directly or indirectly related to a covered 
     institution; and
       ``(ii) is engaged in the practice of recommending, 
     promoting, or endorsing education loans for students 
     attending such covered institution or the families of such 
     students;
       ``(B) may include an alumni organization, athletic 
     organization, foundation, or social, academic, or 
     professional organization, of a covered institution; and
       ``(C) notwithstanding subparagraphs (A) and (B), does not 
     include any lender with respect to any education loan 
     secured, made, or extended by such lender.
       ``(6) Lender.--The term `lender' (except when used as part 
     of the terms `eligible lender' and `private educational 
     lender')--
       ``(A) means--
       ``(i) in the case of a loan made, insured, or guaranteed 
     under part B of title IV, an eligible lender;
       ``(ii) in the case of any loan issued or provided to a 
     student under part D of title IV, the Secretary; and
       ``(iii) in the case of a private education loan, a private 
     educational lender as defined in section 140 of the Truth in 
     Lending Act; and
       ``(B) includes any other person engaged in the business of 
     securing, making, or extending education loans on behalf of 
     the lender.
       ``(7) Officer.--The term `officer' includes a director or 
     trustee of a covered institution or institution-affiliated 
     organization, if such individual is treated as an employee of 
     such covered institution or institution-affiliated 
     organization, respectively.
       ``(8) Preferred lender arrangement.--The term `preferred 
     lender arrangement'--
       ``(A) means an arrangement or agreement between a lender 
     and a covered institution or an institution-affiliated 
     organization of such covered institution--
       ``(i) under which a lender provides or otherwise issues 
     education loans to the students attending such covered 
     institution or the families of such students; and
       ``(ii) that relates to such covered institution or such 
     institution-affiliated organization recommending, promoting, 
     or endorsing the education loan products of the lender; and
       ``(B) does not include--
       ``(i) arrangements or agreements with respect to loans 
     under part D of title IV; or
       ``(ii) arrangements or agreements with respect to loans 
     that originate through the auction pilot program under 
     section 499(b).
       ``(9) Private education loan.--The term `private education 
     loan' has the meaning given the term in section 140 of the 
     Truth in Lending Act.

     ``SEC. 152. RESPONSIBILITIES OF COVERED INSTITUTIONS, 
                   INSTITUTION-AFFILIATED ORGANIZATIONS, AND 
                   LENDERS.

       ``(a) Responsibilities of Covered Institutions and 
     Institution-Affiliated Organizations.--
       ``(1) Disclosures by covered institutions and institution-
     affiliated organizations.--
       ``(A) Preferred lender arrangement disclosures.--In 
     addition to the disclosures required by subsections (a)(27) 
     and (h) of section 487 (if applicable), a covered 
     institution, or an institution-affiliated organization of 
     such covered institution, that participates in a preferred 
     lender arrangement shall disclose--
       ``(i) on such covered institution's or institution-
     affiliated organization's website and in all informational 
     materials described in subparagraph (C) that describe or 
     discuss education loans--

       ``(I) the maximum amount of Federal grant and loan aid 
     under title IV available to students, in an easy to 
     understand format;
       ``(II) the information required to be disclosed pursuant to 
     section 153(a)(2)(A)(i), for each type of loan described in 
     section 151(3)(A) that is offered pursuant to a preferred 
     lender arrangement of the institution or organization to 
     students of the institution or the families of such students; 
     and
       ``(III) a statement that such institution is required to 
     process the documents required to obtain a loan under part B 
     of title IV from any eligible lender the student selects; and

       ``(ii) on such covered institution's or institution-
     affiliated organization's website and in all informational 
     materials described in subparagraph (C) that describe or 
     discuss private education loans--

       ``(I) in the case of a covered institution, the information 
     that the Board of Governors of the Federal Reserve System 
     requires to be disclosed under section 128(e)(11) of the 
     Truth in Lending Act (15 U.S.C. 1638(e)(11)), for each type 
     of private education loan offered pursuant to a preferred 
     lender arrangement of the institution to students of the 
     institution or the families of such students; and
       ``(II) in the case of an institution-affiliated 
     organization of a covered institution, the information the 
     Board of Governors of the Federal Reserve System requires to 
     be disclosed under section 128(e)(1) of the Truth in Lending 
     Act (15 U.S.C. 1638(e)(1)), for each type of private 
     education loan offered pursuant to a preferred

[[Page 17105]]

     lender arrangement of the organization to students of such 
     institution or the families of such students.

       ``(B) Private education loan disclosures.--A covered 
     institution, or an institution-affiliated organization of 
     such covered institution, that provides information regarding 
     a private education loan from a lender to a prospective 
     borrower shall--
       ``(i) provide the prospective borrower with the information 
     the Board of Governors of the Federal Reserve System requires 
     to be disclosed under section 128(e)(1) of the Truth in 
     Lending Act (15 U.S.C. 1638(e)(1)) for such loan;
       ``(ii) inform the prospective borrower that--

       ``(I) the prospective borrower may qualify for loans or 
     other assistance under title IV; and
       ``(II) the terms and conditions of loans made, insured, or 
     guaranteed under title IV may be more favorable than the 
     provisions of private education loans; and

       ``(iii) ensure that information regarding private education 
     loans is presented in such a manner as to be distinct from 
     information regarding loans that are made, insured, or 
     guaranteed under title IV.
       ``(C) Informational materials.--The informational materials 
     described in this subparagraph are publications, mailings, or 
     electronic messages or materials that--
       ``(i) are distributed to prospective or current students of 
     a covered institution and families of such students; and
       ``(ii) describe or discuss the financial aid opportunities 
     available to students at an institution of higher education.
       ``(2) Use of institution name.--A covered institution, or 
     an institution-affiliated organization of such covered 
     institution, that enters into a preferred lender arrangement 
     with a lender regarding private education loans shall not 
     agree to the lender's use of the name, emblem, mascot, or 
     logo of such institution or organization, or other words, 
     pictures, or symbols readily identified with such institution 
     or organization, in the marketing of private education loans 
     to students attending such institution in any way that 
     implies that the loan is offered or made by such institution 
     or organization instead of the lender.
       ``(3) Use of lender name.--A covered institution, or an 
     institution-affiliated organization of such covered 
     institution, that enters into a preferred lender arrangement 
     with a lender regarding private education loans shall ensure 
     that the name of the lender is displayed in all information 
     and documentation related to such loans.
       ``(b) Lender Responsibilities.--
       ``(1) Disclosures by lenders.--
       ``(A) Disclosures to borrowers.--
       ``(i) Federal education loans.--For each education loan 
     that is made, insured, or guaranteed under part B or D of 
     title IV (other than a loan made under section 428C or a 
     Federal Direct Consolidation Loan), at or prior to the time 
     the lender disburses such loan, the lender shall provide the 
     prospective borrower or borrower, in writing (including 
     through electronic means), with the disclosures described in 
     subsections (a) and (c) of section 433.
       ``(ii) Private education loans.--For each of a lender's 
     private education loans, the lender shall comply with the 
     disclosure requirements under section 128(e) of the Truth in 
     Lending Act (15 U.S.C. 1638(e)).
       ``(B) Disclosures to the secretary.--
       ``(i) In general.--Each lender of a loan made, insured, or 
     guaranteed under part B of title IV shall, on an annual 
     basis, report to the Secretary--

       ``(I) any reasonable expenses paid or provided under 
     section 435(d)(5)(D) or paragraph (3)(B) or (7) of section 
     487(e) to any agent of a covered institution who--

       ``(aa) is employed in the financial aid office of a covered 
     institution; or
       ``(bb) otherwise has responsibilities with respect to 
     education loans or other financial aid of the institution; 
     and

       ``(II) any similar expenses paid or provided to any agent 
     of an institution-affiliated organization who is involved in 
     the practice of recommending, promoting, or endorsing 
     education loans.

       ``(ii) Contents of reports.--Each report described in 
     clause (i) shall include--

       ``(I) the amount for each specific instance in which the 
     lender provided such expenses;
       ``(II) the name of any agent described in clause (i) to 
     whom the expenses were paid or provided;
       ``(III) the dates of the activity for which the expenses 
     were paid or provided; and
       ``(IV) a brief description of the activity for which the 
     expenses were paid or provided.

       ``(iii) Report to congress.--The Secretary shall summarize 
     the information received from the lenders under this 
     subparagraph in a report and transmit such report annually to 
     the authorizing committees.
       ``(2) Certification by lenders.--Not later than 18 months 
     after the date of enactment of the Higher Education 
     Opportunity Act--
       ``(A) in addition to any other disclosure required under 
     Federal law, each lender of a loan made, insured, or 
     guaranteed under part B of title IV that participates in one 
     or more preferred lender arrangements shall annually certify 
     the lender's compliance with the requirements of this Act; 
     and
       ``(B) if an audit of a lender is required pursuant to 
     section 428(b)(1)(U)(iii), the lender's compliance with the 
     requirements under this section shall be reported on and 
     attested to annually by the auditor of such lender.

     ``SEC. 153. LOAN INFORMATION TO BE DISCLOSED AND MODEL 
                   DISCLOSURE FORM FOR COVERED INSTITUTIONS, 
                   INSTITUTION-AFFILIATED ORGANIZATIONS, AND 
                   LENDERS PARTICIPATING IN PREFERRED LENDER 
                   ARRANGEMENTS.

       ``(a) Duties of the Secretary.--
       ``(1) Determination of minimum disclosures.--
       ``(A) In general.--Not later than 18 months after the date 
     of enactment of the Higher Education Opportunity Act, the 
     Secretary, in coordination with the Board of Governors of the 
     Federal Reserve System, shall determine the minimum 
     information that lenders, covered institutions, and 
     institution-affiliated organizations of such covered 
     institutions participating in preferred lender arrangements 
     shall make available regarding education loans described in 
     section 151(3)(A) that are offered to students and the 
     families of such students.
       ``(B) Consultation and content of minimum disclosures.--In 
     carrying out subparagraph (A), the Secretary shall--
       ``(i) consult with students, the families of such students, 
     representatives of covered institutions (including financial 
     aid administrators, admission officers, and business 
     officers), representatives of institution-affiliated 
     organizations, secondary school guidance counselors, lenders, 
     loan servicers, and guaranty agencies;
       ``(ii) include, in the minimum information under 
     subparagraph (A) that is required to be made available, the 
     information that the Board of Governors of the Federal 
     Reserve System requires to be disclosed under section 
     128(e)(1) of the Truth in Lending Act (15 U.S.C. 1638(e)(1)), 
     modified as necessary to apply to such loans; and
       ``(iii) consider the merits of requiring each covered 
     institution, and each institution-affiliated organization of 
     such covered institution, with a preferred lender arrangement 
     to provide to prospective borrowers and the families of such 
     borrowers the following information for each type of 
     education loan offered pursuant to such preferred lender 
     arrangement:

       ``(I) The interest rate and terms and conditions of the 
     loan for the next award year, including loan forgiveness and 
     deferment.

       ``(II) Information on any charges, such as origination and 
     Federal default fees, that are payable on the loan, and 
     whether those charges will be--

       ``(aa) collected by the lender at or prior to the disbursal 
     of the loan, including whether the charges will be deducted 
     from the proceeds of the loan or paid separately by the 
     borrower; or
       ``(bb) paid in whole or in part by the lender.

       ``(III) The annual and aggregate maximum amounts that may 
     be borrowed.
       ``(IV) The average amount borrowed from the lender by 
     students who graduated from such institution in the preceding 
     year with certificates, undergraduate degrees, graduate 
     degrees, and professional degrees, as applicable, and who 
     obtained loans of such type from the lender for the preceding 
     year.
       ``(V) The amount the borrower may pay in interest, based on 
     a standard repayment plan and the average amount borrowed 
     from the lender by students who graduated from such 
     institution in the preceding year and who obtained loans of 
     such type from the lender for the preceding year, for--

       ``(aa) borrowers who take out loans under section 428;
       ``(bb) borrowers who take out loans under section 428B or 
     428H, who pay the interest while in school; and
       ``(cc) borrowers who take out loans under section 428B or 
     428H, who do not pay the interest while in school.

       ``(VI) The consequences for the borrower of defaulting on a 
     loan, including limitations on the discharge of an education 
     loan in bankruptcy.
       ``(VII) Contact information for the lender.
       ``(VIII) Other information suggested by the persons and 
     entities with whom the Secretary has consulted under clause 
     (i).

       ``(2) Required disclosures.--After making the 
     determinations under paragraph (1), the Secretary, in 
     coordination with the Board of Governors of the Federal 
     Reserve System and after consultation with the public, 
     shall--
       ``(A)(i) provide that the information determined under 
     paragraph (1) shall be disclosed by covered institutions, and 
     institution-affiliated organizations of such covered 
     institutions, with preferred lender arrangements to 
     prospective borrowers and the families of such borrowers 
     regarding the education loans described in section 151(3)(A) 
     that are offered pursuant to such preferred lender 
     arrangements; and
       ``(ii) make clear that such covered institutions and 
     institution-affiliated organizations may provide the required 
     information on a form designed by the institution or 
     organization instead of the model disclosure form described 
     in subparagraph (B);
       ``(B) develop a model disclosure form that may be used by 
     covered institutions, institution-affiliated organizations, 
     and preferred lenders that includes all of the information 
     required under subparagraph (A)(i) in a format that--
       ``(i) is easily usable by students, families, institutions, 
     institution-affiliated organizations, lenders, loan 
     servicers, and guaranty agencies; and
       ``(ii) is similar in format to the form developed by the 
     Board of Governors of the Federal Reserve System under 
     paragraphs (1) and (5)(A) of section 128(e), in order to 
     permit students and the families of students to easily 
     compare private education loans and education loans described 
     in section 151(3)(A); and

[[Page 17106]]

       ``(C) update such model disclosure form periodically, as 
     necessary.
       ``(b) Duties of Lenders.--Each lender that has a preferred 
     lender arrangement with a covered institution, or an 
     institution-affiliated organization of such covered 
     institution, with respect to education loans described in 
     section 151(3)(A) shall annually, by a date determined by the 
     Secretary, provide to such covered institution or such 
     institution-affiliated organization, and to the Secretary, 
     the information the Secretary requires pursuant to subsection 
     (a)(2)(A)(i) for each type of education loan described in 
     section 151(3)(A) that the lender plans to offer pursuant to 
     such preferred lender arrangement to students attending such 
     covered institution, or to the families of such students, for 
     the next award year.
       ``(c) Duties of Covered Institutions and Institution-
     Affiliated Organizations.--
       ``(1) Providing information to students and families.--
       ``(A) In general.--Each covered institution, and each 
     institution-affiliated organization of such covered 
     institution, that has a preferred lender arrangement shall 
     provide the following information to students attending such 
     institution, or the families of such students, as applicable:
       ``(i) The information the Secretary requires pursuant to 
     subsection (a)(2)(A)(i), for each type of education loan 
     described in section 151(3)(A) offered pursuant to a 
     preferred lender arrangement to students of such institution 
     or the families of such students.
       ``(ii)(I) In the case of a covered institution, the 
     information that the Board of Governors of the Federal 
     Reserve System requires to be disclosed under section 
     128(e)(11) of the Truth in Lending Act (15 U.S.C. 
     1638(e)(11)) to the covered institution, for each type of 
     private education loan offered pursuant to such preferred 
     lender arrangement to students of such institution or the 
     families of such students.
       ``(II) In the case of an institution-affiliated 
     organization, the information the Board of Governors of the 
     Federal Reserve System requires to be disclosed under section 
     128(e)(1) of the Truth in Lending Act (15 U.S.C. 1638(e)(1)), 
     for each type of private education loan offered pursuant to 
     such preferred lender arrangement to students of the 
     institution with which such organization is affiliated or the 
     families of such students.
       ``(B) Timely provision of information.--The information 
     described in subparagraph (A) shall be provided in a manner 
     that allows for the students or the families to take such 
     information into account before selecting a lender or 
     applying for an education loan.
       ``(2) Annual report.--Each covered institution, and each 
     institution-affiliated organization of such covered 
     institution, that has a preferred lender arrangement, shall--
       ``(A) prepare and submit to the Secretary an annual report, 
     by a date determined by the Secretary, that includes, for 
     each lender that has a preferred lender arrangement with such 
     covered institution or organization--
       ``(i) the information described in clauses (i) and (ii) of 
     paragraph (1)(A); and
       ``(ii) a detailed explanation of why such covered 
     institution or institution-affiliated organization entered 
     into a preferred lender arrangement with the lender, 
     including why the terms, conditions, and provisions of each 
     type of education loan provided pursuant to the preferred 
     lender arrangement are beneficial for students attending such 
     institution, or the families of such students, as applicable; 
     and
       ``(B) ensure that the report required under subparagraph 
     (A) is made available to the public and provided to students 
     attending or planning to attend such covered institution and 
     the families of such students.
       ``(3) Code of conduct.--
       ``(A) In general.--Each covered institution, and each 
     institution-affiliated organization of such covered 
     institution, that has a preferred lender arrangement, shall 
     comply with the code of conduct requirements of subparagraphs 
     (A) through (C) of section 487(a)(25).
       ``(B) Applicable code of conduct.--For purposes of 
     subparagraph (A), an institution-affiliated organization of a 
     covered institution shall--
       ``(i) comply with the code of conduct developed and 
     published by such covered institution under subparagraphs (A) 
     and (B) of section 487(a)(25);
       ``(ii) if such institution-affiliated organization has a 
     website, publish such code of conduct prominently on the 
     website; and
       ``(iii) administer and enforce such code of conduct by, at 
     a minimum, requiring that all of such organization's agents 
     with responsibilities with respect to education loans be 
     annually informed of the provisions of such code of conduct.

     ``SEC. 154. LOAN INFORMATION TO BE DISCLOSED AND MODEL 
                   DISCLOSURE FORM FOR INSTITUTIONS PARTICIPATING 
                   IN THE WILLIAM. D. FORD FEDERAL DIRECT LOAN 
                   PROGRAM.

       ``(a) Provision of Disclosures to Institutions by the 
     Secretary.--Not later than 180 days after the development of 
     the model disclosure form under section 153(a)(2)(B), the 
     Secretary shall provide each institution of higher education 
     participating in the William D. Ford Direct Loan Program 
     under part D of title IV with a completed model disclosure 
     form including the same information for Federal Direct 
     Stafford Loans, Federal Direct Unsubsidized Stafford Loans, 
     and Federal Direct PLUS loans made to, or on behalf of, 
     students attending each such institution as is required on 
     such form for loans described in section 151(3)(A).
       ``(b) Duties of Institutions.--
       ``(1) In general.--Each institution of higher education 
     participating in the William D. Ford Direct Loan Program 
     under part D of title IV shall--
       ``(A) make the information the Secretary provides to the 
     institution under subsection (a) available to students 
     attending or planning to attend the institution, or the 
     families of such students, as applicable; and
       ``(B) if the institution provides information regarding a 
     private education loan to a prospective borrower, 
     concurrently provide such borrower with the information the 
     Secretary provides to the institution under subsection (a).
       ``(2) Choice of forms.--In providing the information 
     required under paragraph (1), an institution of higher 
     education may use a comparable form designed by the 
     institution instead of the model disclosure form developed 
     under section 153(a)(2)(B).''.
                 TITLE II--TEACHER QUALITY ENHANCEMENT

     SEC. 201. TEACHER QUALITY ENHANCEMENT.

       Title II (20 U.S.C. 1021 et seq.) is amended--
       (1) by inserting before part A the following:

     ``SEC. 200. DEFINITIONS.

       ``In this title:
       ``(1) Arts and sciences.--The term `arts and sciences' 
     means--
       ``(A) when referring to an organizational unit of an 
     institution of higher education, any academic unit that 
     offers one or more academic majors in disciplines or content 
     areas corresponding to the academic subject matter areas in 
     which teachers provide instruction; and
       ``(B) when referring to a specific academic subject area, 
     the disciplines or content areas in which academic majors are 
     offered by the arts and sciences organizational unit.
       ``(2) Children from low-income families.--The term 
     `children from low-income families' means children described 
     in section 1124(c)(1)(A) of the Elementary and Secondary 
     Education Act of 1965.
       ``(3) Core academic subjects.--The term `core academic 
     subjects' has the meaning given the term in section 9101 of 
     the Elementary and Secondary Education Act of 1965.
       ``(4) Early childhood educator.--The term `early childhood 
     educator' means an individual with primary responsibility for 
     the education of children in an early childhood education 
     program.
       ``(5) Educational service agency.--The term `educational 
     service agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(6) Eligible partnership.--Except as otherwise provided 
     in section 251, the term `eligible partnership' means an 
     entity that--
       ``(A) shall include--
       ``(i) a high-need local educational agency;
       ``(ii)(I) a high-need school or a consortium of high-need 
     schools served by the high-need local educational agency; or
       ``(II) as applicable, a high-need early childhood education 
     program;
       ``(iii) a partner institution;
       ``(iv) a school, department, or program of education within 
     such partner institution, which may include an existing 
     teacher professional development program with proven outcomes 
     within a four-year institution of higher education that 
     provides intensive and sustained collaboration between 
     faculty and local educational agencies consistent with the 
     requirements of this title; and
       ``(v) a school or department of arts and sciences within 
     such partner institution; and
       ``(B) may include any of the following:
       ``(i) The Governor of the State.
       ``(ii) The State educational agency.
       ``(iii) The State board of education.
       ``(iv) The State agency for higher education.
       ``(v) A business.
       ``(vi) A public or private nonprofit educational 
     organization.
       ``(vii) An educational service agency.
       ``(viii) A teacher organization.
       ``(ix) A high-performing local educational agency, or a 
     consortium of such local educational agencies, that can serve 
     as a resource to the partnership.
       ``(x) A charter school (as defined in section 5210 of the 
     Elementary and Secondary Education Act of 1965).
       ``(xi) A school or department within the partner 
     institution that focuses on psychology and human development.
       ``(xii) A school or department within the partner 
     institution with comparable expertise in the disciplines of 
     teaching, learning, and child and adolescent development.
       ``(xiii) An entity operating a program that provides 
     alternative routes to State certification of teachers.
       ``(7) Essential components of reading instruction.--The 
     term `essential components of reading instruction' has the 
     meaning given the term in section 1208 of the Elementary and 
     Secondary Education Act of 1965.
       ``(8) Exemplary teacher.--The term `exemplary teacher' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965.
       ``(9) High-need early childhood education program.--The 
     term `high-need early childhood education program' means an 
     early childhood education program serving children from low-
     income families that is located within the geographic area 
     served by a high-need local educational agency.
       ``(10) High-need local educational agency.--The term `high-
     need local educational agency' means a local educational 
     agency--

[[Page 17107]]

       ``(A)(i) for which not less than 20 percent of the children 
     served by the agency are children from low-income families;
       ``(ii) that serves not fewer than 10,000 children from low-
     income families;
       ``(iii) that meets the eligibility requirements for funding 
     under the Small, Rural School Achievement Program under 
     section 6211(b) of the Elementary and Secondary Education Act 
     of 1965; or
       ``(iv) that meets the eligibility requirements for funding 
     under the Rural and Low-Income School Program under section 
     6221(b) of the Elementary and Secondary Education Act of 
     1965; and
       ``(B)(i) for which there is a high percentage of teachers 
     not teaching in the academic subject areas or grade levels in 
     which the teachers were trained to teach; or
       ``(ii) for which there is a high teacher turnover rate or a 
     high percentage of teachers with emergency, provisional, or 
     temporary certification or licensure.
       ``(11) High-need school.--
       ``(A) In general.--The term `high-need school' means a 
     school that, based on the most recent data available, meets 
     one or both of the following:
       ``(i) The school is in the highest quartile of schools in a 
     ranking of all schools served by a local educational agency, 
     ranked in descending order by percentage of students from 
     low-income families enrolled in such schools, as determined 
     by the local educational agency based on one of the following 
     measures of poverty:

       ``(I) The percentage of students aged 5 through 17 in 
     poverty counted in the most recent census data approved by 
     the Secretary.
       ``(II) The percentage of students eligible for a free or 
     reduced price school lunch under the Richard B. Russell 
     National School Lunch Act.
       ``(III) The percentage of students in families receiving 
     assistance under the State program funded under part A of 
     title IV of the Social Security Act.
       ``(IV) The percentage of students eligible to receive 
     medical assistance under the Medicaid program.
       ``(V) A composite of two or more of the measures described 
     in subclauses (I) through (IV).

       ``(ii) In the case of--

       ``(I) an elementary school, the school serves students not 
     less than 60 percent of whom are eligible for a free or 
     reduced price school lunch under the Richard B. Russell 
     National School Lunch Act; or
       ``(II) any other school that is not an elementary school, 
     the other school serves students not less than 45 percent of 
     whom are eligible for a free or reduced price school lunch 
     under the Richard B. Russell National School Lunch Act.

       ``(B) Special rule.--
       ``(i) Designation by the secretary.--The Secretary may, 
     upon approval of an application submitted by an eligible 
     partnership seeking a grant under this title, designate a 
     school that does not qualify as a high-need school under 
     subparagraph (A) as a high-need school for the purpose of 
     this title. The Secretary shall base the approval of an 
     application for designation of a school under this clause on 
     a consideration of the information required under clause 
     (ii), and may also take into account other information 
     submitted by the eligible partnership.
       ``(ii) Application requirements.--An application for 
     designation of a school under clause (i) shall include--

       ``(I) the number and percentage of students attending such 
     school who are--

       ``(aa) aged 5 through 17 in poverty counted in the most 
     recent census data approved by the Secretary;
       ``(bb) eligible for a free or reduced price school lunch 
     under the Richard B. Russell National School Lunch Act;
       ``(cc) in families receiving assistance under the State 
     program funded under part A of title IV of the Social 
     Security Act; or
       ``(dd) eligible to receive medical assistance under the 
     Medicaid program;

       ``(II) information about the student academic achievement 
     of students at such school; and
       ``(III) for a secondary school, the graduation rate for 
     such school.

       ``(12) Highly competent.--The term `highly competent', when 
     used with respect to an early childhood educator, means an 
     educator--
       ``(A) with specialized education and training in 
     development and education of young children from birth until 
     entry into kindergarten;
       ``(B) with--
       ``(i) a baccalaureate degree in an academic major in the 
     arts and sciences; or
       ``(ii) an associate's degree in a related educational area; 
     and
       ``(C) who has demonstrated a high level of knowledge and 
     use of content and pedagogy in the relevant areas associated 
     with quality early childhood education.
       ``(13) Highly qualified.--The term `highly qualified' has 
     the meaning given such term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 and, with respect to 
     special education teachers, in section 602 of the Individuals 
     with Disabilities Education Act.
       ``(14) Induction program.--The term `induction program' 
     means a formalized program for new teachers during not less 
     than the teachers' first two years of teaching that is 
     designed to provide support for, and improve the professional 
     performance and advance the retention in the teaching field 
     of, beginning teachers. Such program shall promote effective 
     teaching skills and shall include the following components:
       ``(A) High-quality teacher mentoring.
       ``(B) Periodic, structured time for collaboration with 
     teachers in the same department or field, including mentor 
     teachers, as well as time for information-sharing among 
     teachers, principals, administrators, other appropriate 
     instructional staff, and participating faculty in the partner 
     institution.
       ``(C) The application of empirically-based practice and 
     scientifically valid research on instructional practices.
       ``(D) Opportunities for new teachers to draw directly on 
     the expertise of teacher mentors, faculty, and researchers to 
     support the integration of empirically-based practice and 
     scientifically valid research with practice.
       ``(E) The development of skills in instructional and 
     behavioral interventions derived from empirically-based 
     practice and, where applicable, scientifically valid 
     research.
       ``(F) Faculty who--
       ``(i) model the integration of research and practice in the 
     classroom; and
       ``(ii) assist new teachers with the effective use and 
     integration of technology in the classroom.
       ``(G) Interdisciplinary collaboration among exemplary 
     teachers, faculty, researchers, and other staff who prepare 
     new teachers with respect to the learning process and the 
     assessment of learning.
       ``(H) Assistance with the understanding of data, 
     particularly student achievement data, and the applicability 
     of such data in classroom instruction.
       ``(I) Regular and structured observation and evaluation of 
     new teachers by multiple evaluators, using valid and reliable 
     measures of teaching skills.
       ``(15) Limited english proficient.--The term `limited 
     English proficient' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965.
       ``(16) Parent.--The term `parent' has the meaning given the 
     term in section 9101 of the Elementary and Secondary 
     Education Act of 1965.
       ``(17) Partner institution.--The term `partner institution' 
     means an institution of higher education, which may include a 
     two-year institution of higher education offering a dual 
     program with a four-year institution of higher education, 
     participating in an eligible partnership that has a teacher 
     preparation program--
       ``(A) whose graduates exhibit strong performance on State-
     determined qualifying assessments for new teachers through--
       ``(i) demonstrating that 80 percent or more of the 
     graduates of the program who intend to enter the field of 
     teaching have passed all of the applicable State 
     qualification assessments for new teachers, which shall 
     include an assessment of each prospective teacher's subject 
     matter knowledge in the content area in which the teacher 
     intends to teach; or
       ``(ii) being ranked among the highest-performing teacher 
     preparation programs in the State as determined by the 
     State--

       ``(I) using criteria consistent with the requirements for 
     the State report card under section 205(b) before the first 
     publication of such report card; and
       ``(II) using the State report card on teacher preparation 
     required under section 205(b), after the first publication of 
     such report card and for every year thereafter; and

       ``(B) that requires--
       ``(i) each student in the program to meet high academic 
     standards or demonstrate a record of success, as determined 
     by the institution (including prior to entering and being 
     accepted into a program), and participate in intensive 
     clinical experience;
       ``(ii) each student in the program preparing to become a 
     teacher to become highly qualified; and
       ``(iii) each student in the program preparing to become an 
     early childhood educator to meet degree requirements, as 
     established by the State, and become highly competent.
       ``(18) Principles of scientific research.--The term 
     `principles of scientific research' means principles of 
     research that--
       ``(A) apply rigorous, systematic, and objective methodology 
     to obtain reliable and valid knowledge relevant to education 
     activities and programs;
       ``(B) present findings and make claims that are appropriate 
     to, and supported by, the methods that have been employed; 
     and
       ``(C) include, appropriate to the research being 
     conducted--
       ``(i) use of systematic, empirical methods that draw on 
     observation or experiment;
       ``(ii) use of data analyses that are adequate to support 
     the general findings;
       ``(iii) reliance on measurements or observational methods 
     that provide reliable and generalizable findings;
       ``(iv) strong claims of causal relationships, only with 
     research designs that eliminate plausible competing 
     explanations for observed results, such as, but not limited 
     to, random-assignment experiments;
       ``(v) presentation of studies and methods in sufficient 
     detail and clarity to allow for replication or, at a minimum, 
     to offer the opportunity to build systematically on the 
     findings of the research;
       ``(vi) acceptance by a peer-reviewed journal or critique by 
     a panel of independent experts through a comparably rigorous, 
     objective, and scientific review; and
       ``(vii) consistency of findings across multiple studies or 
     sites to support the generality of results and conclusions.
       ``(19) Professional development.--The term `professional 
     development' has the meaning given the term in section 9101 
     of the Elementary and Secondary Education Act of 1965.
       ``(20) Scientifically valid research.--The term 
     `scientifically valid research' includes applied research, 
     basic research, and field-initiated research in which the 
     rationale, design,

[[Page 17108]]

     and interpretation are soundly developed in accordance with 
     principles of scientific research.
       ``(21) Teacher mentoring.--The term `teacher mentoring' 
     means the mentoring of new or prospective teachers through a 
     program that--
       ``(A) includes clear criteria for the selection of teacher 
     mentors who will provide role model relationships for 
     mentees, which criteria shall be developed by the eligible 
     partnership and based on measures of teacher effectiveness;
       ``(B) provides high-quality training for such mentors, 
     including instructional strategies for literacy instruction 
     and classroom management (including approaches that improve 
     the schoolwide climate for learning, which may include 
     positive behavioral interventions and supports);
       ``(C) provides regular and ongoing opportunities for 
     mentors and mentees to observe each other's teaching methods 
     in classroom settings during the day in a high-need school in 
     the high-need local educational agency in the eligible 
     partnership;
       ``(D) provides paid release time for mentors, as 
     applicable;
       ``(E) provides mentoring to each mentee by a colleague who 
     teaches in the same field, grade, or subject as the mentee;
       ``(F) promotes empirically-based practice of, and 
     scientifically valid research on, where applicable--
       ``(i) teaching and learning;
       ``(ii) assessment of student learning;
       ``(iii) the development of teaching skills through the use 
     of instructional and behavioral interventions; and
       ``(iv) the improvement of the mentees' capacity to 
     measurably advance student learning; and
       ``(G) includes--
       ``(i) common planning time or regularly scheduled 
     collaboration for the mentor and mentee; and
       ``(ii) joint professional development opportunities.
       ``(22) Teaching residency program.--The term `teaching 
     residency program' means a school-based teacher preparation 
     program in which a prospective teacher--
       ``(A) for one academic year, teaches alongside a mentor 
     teacher, who is the teacher of record;
       ``(B) receives concurrent instruction during the year 
     described in subparagraph (A) from the partner institution, 
     which courses may be taught by local educational agency 
     personnel or residency program faculty, in the teaching of 
     the content area in which the teacher will become certified 
     or licensed;
       ``(C) acquires effective teaching skills; and
       ``(D) prior to completion of the program, earns a master's 
     degree, attains full State teacher certification or 
     licensure, and becomes highly qualified.
       ``(23) Teaching skills.--The term `teaching skills' means 
     skills that enable a teacher to--
       ``(A) increase student learning, achievement, and the 
     ability to apply knowledge;
       ``(B) effectively convey and explain academic subject 
     matter;
       ``(C) effectively teach higher-order analytical, 
     evaluation, problem-solving, and communication skills;
       ``(D) employ strategies grounded in the disciplines of 
     teaching and learning that--
       ``(i) are based on empirically-based practice and 
     scientifically valid research, where applicable, related to 
     teaching and learning;
       ``(ii) are specific to academic subject matter; and
       ``(iii) focus on the identification of students' specific 
     learning needs, particularly students with disabilities, 
     students who are limited English proficient, students who are 
     gifted and talented, and students with low literacy levels, 
     and the tailoring of academic instruction to such needs;
       ``(E) conduct an ongoing assessment of student learning, 
     which may include the use of formative assessments, 
     performance-based assessments, project-based assessments, or 
     portfolio assessments, that measures higher-order thinking 
     skills (including application, analysis, synthesis, and 
     evaluation);
       ``(F) effectively manage a classroom, including the ability 
     to implement positive behavioral interventions and support 
     strategies;
       ``(G) communicate and work with parents, and involve 
     parents in their children's education; and
       ``(H) use, in the case of an early childhood educator, age-
     appropriate and developmentally appropriate strategies and 
     practices for children in early childhood education 
     programs.'';
       (2) by striking part A and inserting the following:

              ``PART A--TEACHER QUALITY PARTNERSHIP GRANTS

     ``SEC. 201. PURPOSES.

       ``The purposes of this part are to--
       ``(1) improve student achievement;
       ``(2) improve the quality of prospective and new teachers 
     by improving the preparation of prospective teachers and 
     enhancing professional development activities for new 
     teachers;
       ``(3) hold teacher preparation programs at institutions of 
     higher education accountable for preparing highly qualified 
     teachers; and
       ``(4) recruit highly qualified individuals, including 
     minorities and individuals from other occupations, into the 
     teaching force.

     ``SEC. 202. PARTNERSHIP GRANTS.

       ``(a) Program Authorized.--From amounts made available 
     under section 209, the Secretary is authorized to award 
     grants, on a competitive basis, to eligible partnerships, to 
     enable the eligible partnerships to carry out the activities 
     described in subsection (c).
       ``(b) Application.--Each eligible partnership desiring a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may require. Each such 
     application shall contain--
       ``(1) a needs assessment of the partners in the eligible 
     partnership with respect to the preparation, ongoing 
     training, professional development, and retention of general 
     education and special education teachers, principals, and, as 
     applicable, early childhood educators;
       ``(2) a description of the extent to which the program to 
     be carried out with grant funds, as described in subsection 
     (c), will prepare prospective and new teachers with strong 
     teaching skills;
       ``(3) a description of how such program will prepare 
     prospective and new teachers to understand and use research 
     and data to modify and improve classroom instruction;
       ``(4) a description of--
       ``(A) how the eligible partnership will coordinate 
     strategies and activities assisted under the grant with other 
     teacher preparation or professional development programs, 
     including programs funded under the Elementary and Secondary 
     Education Act of 1965 and the Individuals with Disabilities 
     Education Act, and through the National Science Foundation; 
     and
       ``(B) how the activities of the partnership will be 
     consistent with State, local, and other education reform 
     activities that promote teacher quality and student academic 
     achievement;
       ``(5) an assessment that describes the resources available 
     to the eligible partnership, including--
       ``(A) the integration of funds from other related sources;
       ``(B) the intended use of the grant funds; and
       ``(C) the commitment of the resources of the partnership to 
     the activities assisted under this section, including 
     financial support, faculty participation, and time 
     commitments, and to the continuation of the activities when 
     the grant ends;
       ``(6) a description of--
       ``(A) how the eligible partnership will meet the purposes 
     of this part;
       ``(B) how the partnership will carry out the activities 
     required under subsection (d) or (e), based on the needs 
     identified in paragraph (1), with the goal of improving 
     student academic achievement;
       ``(C) if the partnership chooses to use funds under this 
     section for a project or activities under subsection (f) or 
     (g), how the partnership will carry out such project or 
     required activities based on the needs identified in 
     paragraph (1), with the goal of improving student academic 
     achievement;
       ``(D) the partnership's evaluation plan under section 
     204(a);
       ``(E) how the partnership will align the teacher 
     preparation program under subsection (c) with the--
       ``(i) State early learning standards for early childhood 
     education programs, as appropriate, and with the relevant 
     domains of early childhood development; and
       ``(ii) student academic achievement standards and academic 
     content standards under section 1111(b)(2) of the Elementary 
     and Secondary Education Act of 1965, established by the State 
     in which the partnership is located;
       ``(F) how the partnership will prepare general education 
     teachers to teach students with disabilities, including 
     training related to participation as a member of 
     individualized education program teams, as defined in section 
     614(d)(1)(B) of the Individuals with Disabilities Education 
     Act;
       ``(G) how the partnership will prepare general education 
     and special education teachers to teach students who are 
     limited English proficient;
       ``(H) how faculty at the partner institution will work, 
     during the term of the grant, with highly qualified teachers 
     in the classrooms of high-need schools served by the high-
     need local educational agency in the partnership to--
       ``(i) provide high-quality professional development 
     activities to strengthen the content knowledge and teaching 
     skills of elementary school and secondary school teachers; 
     and
       ``(ii) train other classroom teachers to implement literacy 
     programs that incorporate the essential components of reading 
     instruction;
       ``(I) how the partnership will design, implement, or 
     enhance a year-long and rigorous teaching preservice clinical 
     program component;
       ``(J) how the partnership will support in-service 
     professional development strategies and activities; and
       ``(K) how the partnership will collect, analyze, and use 
     data on the retention of all teachers and early childhood 
     educators in schools and early childhood education programs 
     located in the geographic area served by the partnership to 
     evaluate the effectiveness of the partnership's teacher and 
     educator support system; and
       ``(7) with respect to the induction program required as 
     part of the activities carried out under this section--
       ``(A) a demonstration that the schools and departments 
     within the institution of higher education that are part of 
     the induction program will effectively prepare teachers, 
     including providing content expertise and expertise in 
     teaching, as appropriate;
       ``(B) a demonstration of the eligible partnership's 
     capability and commitment to, and the accessibility to and 
     involvement of faculty in, the use of empirically-based 
     practice and scientifically valid research on teaching and 
     learning;

[[Page 17109]]

       ``(C) a description of how the teacher preparation program 
     will design and implement an induction program to support, 
     through not less than the first two years of teaching, all 
     new teachers who are prepared by the teacher preparation 
     program in the partnership and who teach in the high-need 
     local educational agency in the partnership, and, to the 
     extent practicable, all new teachers who teach in such high-
     need local educational agency, in the further development of 
     the new teachers' teaching skills, including the use of 
     mentors who are trained and compensated by such program for 
     the mentors' work with new teachers; and
       ``(D) a description of how faculty involved in the 
     induction program will be able to substantially participate 
     in an early childhood education program or an elementary 
     school or secondary school classroom setting, as applicable, 
     including release time and receiving workload credit for such 
     participation.
       ``(c) Use of Grant Funds.--An eligible partnership that 
     receives a grant under this section--
       ``(1) shall use grant funds to carry out a program for the 
     pre-baccalaureate preparation of teachers under subsection 
     (d), a teaching residency program under subsection (e), or a 
     combination of such programs; and
       ``(2) may use grant funds to carry out a leadership 
     development program under subsection (f).
       ``(d) Partnership Grants for Pre-Baccalaureate Preparation 
     of Teachers.--An eligible partnership that receives a grant 
     to carry out an effective program for the pre-baccalaureate 
     preparation of teachers shall carry out a program that 
     includes all of the following:
       ``(1) Reforms.--
       ``(A) In general.--Implementing reforms, described in 
     subparagraph (B), within each teacher preparation program 
     and, as applicable, each preparation program for early 
     childhood education programs, of the eligible partnership 
     that is assisted under this section, to hold each program 
     accountable for--
       ``(i) preparing--

       ``(I) new or prospective teachers to be highly qualified 
     (including teachers in rural school districts who may teach 
     multiple subjects, special educators, and teachers of 
     students who are limited English proficient who may teach 
     multiple subjects);
       ``(II) such teachers and, as applicable, early childhood 
     educators, to understand empirically-based practice and 
     scientifically valid research related to teaching and 
     learning and the applicability of such practice and research, 
     including through the effective use of technology, 
     instructional techniques, and strategies consistent with the 
     principles of universal design for learning, and through 
     positive behavioral interventions and support strategies to 
     improve student achievement; and
       ``(III) as applicable, early childhood educators to be 
     highly competent; and

       ``(ii) promoting strong teaching skills and, as applicable, 
     techniques for early childhood educators to improve 
     children's cognitive, social, emotional, and physical 
     development.
       ``(B) Required reforms.--The reforms described in 
     subparagraph (A) shall include--
       ``(i) implementing teacher preparation program curriculum 
     changes that improve, evaluate, and assess how well all 
     prospective and new teachers develop teaching skills;
       ``(ii) using empirically-based practice and scientifically 
     valid research, where applicable, about teaching and learning 
     so that all prospective teachers and, as applicable, early 
     childhood educators--

       ``(I) understand and can implement research-based teaching 
     practices in classroom instruction;
       ``(II) have knowledge of student learning methods;
       ``(III) possess skills to analyze student academic 
     achievement data and other measures of student learning, and 
     use such data and measures to improve classroom instruction;
       ``(IV) possess teaching skills and an understanding of 
     effective instructional strategies across all applicable 
     content areas that enable general education and special 
     education teachers and early childhood educators to--

       ``(aa) meet the specific learning needs of all students, 
     including students with disabilities, students who are 
     limited English proficient, students who are gifted and 
     talented, students with low literacy levels and, as 
     applicable, children in early childhood education programs; 
     and
       ``(bb) differentiate instruction for such students;

       ``(V) can effectively participate as a member of the 
     individualized education program team, as defined in section 
     614(d)(1)(B) of the Individuals with Disabilities Education 
     Act; and
       ``(VI) can successfully employ effective strategies for 
     reading instruction using the essential components of reading 
     instruction;

       ``(iii) ensuring collaboration with departments, programs, 
     or units of a partner institution outside of the teacher 
     preparation program in all academic content areas to ensure 
     that prospective teachers receive training in both teaching 
     and relevant content areas in order to become highly 
     qualified, which may include training in multiple subjects to 
     teach multiple grade levels as may be needed for individuals 
     preparing to teach in rural communities and for individuals 
     preparing to teach students with disabilities as described in 
     section 602(10)(D) of the Individuals with Disabilities 
     Education Act;
       ``(iv) developing and implementing an induction program;
       ``(v) developing admissions goals and priorities aligned 
     with the hiring objectives of the high-need local educational 
     agency in the eligible partnership; and
       ``(vi) implementing program and curriculum changes, as 
     applicable, to ensure that prospective teachers have the 
     requisite content knowledge, preparation, and degree to teach 
     Advanced Placement or International Baccalaureate courses 
     successfully.
       ``(2) Clinical experience and interaction.--Developing and 
     improving a sustained and high-quality preservice clinical 
     education program to further develop the teaching skills of 
     all prospective teachers and, as applicable, early childhood 
     educators, involved in the program. Such program shall do the 
     following:
       ``(A) Incorporate year-long opportunities for enrichment, 
     including--
       ``(i) clinical learning in classrooms in high-need schools 
     served by the high-need local educational agency in the 
     eligible partnership, and identified by the eligible 
     partnership; and
       ``(ii) closely supervised interaction between prospective 
     teachers and faculty, experienced teachers, principals, other 
     administrators, and school leaders at early childhood 
     education programs (as applicable), elementary schools, or 
     secondary schools, and providing support for such 
     interaction.
       ``(B) Integrate pedagogy and classroom practice and promote 
     effective teaching skills in academic content areas.
       ``(C) Provide high-quality teacher mentoring.
       ``(D) Be offered over the course of a program of teacher 
     preparation.
       ``(E) Be tightly aligned with course work (and may be 
     developed as a fifth year of a teacher preparation program).
       ``(F) Where feasible, allow prospective teachers to learn 
     to teach in the same local educational agency in which the 
     teachers will work, learning the instructional initiatives 
     and curriculum of that local educational agency.
       ``(G) As applicable, provide training and experience to 
     enhance the teaching skills of prospective teachers to better 
     prepare such teachers to meet the unique needs of teaching in 
     rural or urban communities.
       ``(H) Provide support and training for individuals 
     participating in an activity for prospective or new teachers 
     described in this paragraph or paragraph (1) or (3), and for 
     individuals who serve as mentors for such teachers, based on 
     each individual's experience. Such support may include--
       ``(i) with respect to a prospective teacher or a mentor, 
     release time for such individual's participation;
       ``(ii) with respect to a faculty member, receiving course 
     workload credit and compensation for time teaching in the 
     eligible partnership's activities; and
       ``(iii) with respect to a mentor, a stipend, which may 
     include bonus, differential, incentive, or performance pay, 
     based on the mentor's extra skills and responsibilities.
       ``(3) Induction programs for new teachers.--Creating an 
     induction program for new teachers or, in the case of an 
     early childhood education program, providing mentoring or 
     coaching for new early childhood educators.
       ``(4) Support and training for participants in early 
     childhood education programs.--In the case of an eligible 
     partnership focusing on early childhood educator preparation, 
     implementing initiatives that increase compensation for early 
     childhood educators who attain associate or baccalaureate 
     degrees in early childhood education.
       ``(5) Teacher recruitment.--Developing and implementing 
     effective mechanisms (which may include alternative routes to 
     State certification of teachers) to ensure that the eligible 
     partnership is able to recruit qualified individuals to 
     become highly qualified teachers through the activities of 
     the eligible partnership, which may include an emphasis on 
     recruiting into the teaching profession--
       ``(A) individuals from under represented populations;
       ``(B) individuals to teach in rural communities and teacher 
     shortage areas, including mathematics, science, special 
     education, and the instruction of limited English proficient 
     students; and
       ``(C) mid-career professionals from other occupations, 
     former military personnel, and recent college graduates with 
     a record of academic distinction.
       ``(6) Literacy training.--Strengthening the literacy 
     teaching skills of prospective and, as applicable, new 
     elementary school and secondary school teachers--
       ``(A) to implement literacy programs that incorporate the 
     essential components of reading instruction;
       ``(B) to use screening, diagnostic, formative, and 
     summative assessments to determine students' literacy levels, 
     difficulties, and growth in order to improve classroom 
     instruction and improve student reading and writing skills;
       ``(C) to provide individualized, intensive, and targeted 
     literacy instruction for students with deficiencies in 
     literacy skills; and
       ``(D) to integrate literacy skills in the classroom across 
     subject areas.
       ``(e) Partnership Grants for the Establishment of Teaching 
     Residency Programs.--
       ``(1) In general.--An eligible partnership receiving a 
     grant to carry out an effective teaching residency program 
     shall carry out a program that includes all of the following 
     activities:
       ``(A) Supporting a teaching residency program described in 
     paragraph (2) for high-need subjects and areas, as determined 
     by the needs of the high-need local educational agency in the 
     partnership.

[[Page 17110]]

       ``(B) Placing graduates of the teaching residency program 
     in cohorts that facilitate professional collaboration, both 
     among graduates of the teaching residency program and between 
     such graduates and mentor teachers in the receiving school.
       ``(C) Ensuring that teaching residents who participate in 
     the teaching residency program receive--
       ``(i) effective preservice preparation as described in 
     paragraph (2);
       ``(ii) teacher mentoring;
       ``(iii) support required through the induction program as 
     the teaching residents enter the classroom as new teachers; 
     and
       ``(iv) the preparation described in subparagraphs (A), (B), 
     and (C) of subsection (d)(2).
       ``(2) Teaching residency programs.--
       ``(A) Establishment and design.--A teaching residency 
     program under this paragraph shall be a program based upon 
     models of successful teaching residencies that serves as a 
     mechanism to prepare teachers for success in the high-need 
     schools in the eligible partnership, and shall be designed to 
     include the following characteristics of successful programs:
       ``(i) The integration of pedagogy, classroom practice, and 
     teacher mentoring.
       ``(ii) Engagement of teaching residents in rigorous 
     graduate-level course work to earn a master's degree while 
     undertaking a guided teaching apprenticeship.
       ``(iii) Experience and learning opportunities alongside a 
     trained and experienced mentor teacher--

       ``(I) whose teaching shall complement the residency program 
     so that classroom clinical practice is tightly aligned with 
     coursework;
       ``(II) who shall have extra responsibilities as a teacher 
     leader of the teaching residency program, as a mentor for 
     residents, and as a teacher coach during the induction 
     program for new teachers, and for establishing, within the 
     program, a learning community in which all individuals are 
     expected to continually improve their capacity to advance 
     student learning; and
       ``(III) who may be relieved from teaching duties as a 
     result of such additional responsibilities.

       ``(iv) The establishment of clear criteria for the 
     selection of mentor teachers based on measures of teacher 
     effectiveness and the appropriate subject area knowledge. 
     Evaluation of teacher effectiveness shall be based on, but 
     not limited to, observations of the following:

       ``(I) Planning and preparation, including demonstrated 
     knowledge of content, pedagogy, and assessment, including the 
     use of formative and diagnostic assessments to improve 
     student learning.
       ``(II) Appropriate instruction that engages students with 
     different learning styles.
       ``(III) Collaboration with colleagues to improve 
     instruction.
       ``(IV) Analysis of gains in student learning, based on 
     multiple measures that are valid and reliable and that, when 
     feasible, may include valid, reliable, and objective measures 
     of the influence of teachers on the rate of student academic 
     progress.
       ``(V) In the case of mentor candidates who will be 
     mentoring new or prospective literacy and mathematics coaches 
     or instructors, appropriate skills in the essential 
     components of reading instruction, teacher training in 
     literacy instructional strategies across core subject areas, 
     and teacher training in mathematics instructional strategies, 
     as appropriate.

       ``(v) Grouping of teaching residents in cohorts to 
     facilitate professional collaboration among such residents.
       ``(vi) The development of admissions goals and priorities--

       ``(I) that are aligned with the hiring objectives of the 
     local educational agency partnering with the program, as well 
     as the instructional initiatives and curriculum of such 
     agency, in exchange for a commitment by such agency to hire 
     qualified graduates from the teaching residency program; and
       ``(II) which may include consideration of applicants who 
     reflect the communities in which they will teach as well as 
     consideration of individuals from underrepresented 
     populations in the teaching profession.

       ``(vii) Support for residents, once the teaching residents 
     are hired as teachers of record, through an induction 
     program, professional development, and networking 
     opportunities to support the residents through not less than 
     the residents' first two years of teaching.
       ``(B) Selection of individuals as teacher residents.--
       ``(i) Eligible individual.--In order to be eligible to be a 
     teacher resident in a teaching residency program under this 
     paragraph, an individual shall--

       ``(I) be a recent graduate of a four-year institution of 
     higher education or a mid-career professional from outside 
     the field of education possessing strong content knowledge or 
     a record of professional accomplishment; and
       ``(II) submit an application to the teaching residency 
     program.

       ``(ii) Selection criteria.--An eligible partnership 
     carrying out a teaching residency program under this 
     subsection shall establish criteria for the selection of 
     eligible individuals to participate in the teaching residency 
     program based on the following characteristics:

       ``(I) Strong content knowledge or record of accomplishment 
     in the field or subject area to be taught.
       ``(II) Strong verbal and written communication skills, 
     which may be demonstrated by performance on appropriate 
     tests.
       ``(III) Other attributes linked to effective teaching, 
     which may be determined by interviews or performance 
     assessments, as specified by the eligible partnership.

       ``(C) Stipends or salaries; applications; agreements; 
     repayments.--
       ``(i) Stipends or salaries.--A teaching residency program 
     under this subsection shall provide a one-year living stipend 
     or salary to teaching residents during the one-year teaching 
     residency program.
       ``(ii) Applications for stipends or salaries.--Each teacher 
     residency candidate desiring a stipend or salary during the 
     period of residency shall submit an application to the 
     eligible partnership at such time, and containing such 
     information and assurances, as the eligible partnership may 
     require.
       ``(iii) Agreements to serve.--Each application submitted 
     under clause (ii) shall contain or be accompanied by an 
     agreement that the applicant will--

       ``(I) serve as a full-time teacher for a total of not less 
     than three academic years immediately after successfully 
     completing the one-year teaching residency program;
       ``(II) fulfill the requirement under subclause (I) by 
     teaching in a high-need school served by the high-need local 
     educational agency in the eligible partnership and teach a 
     subject or area that is designated as high need by the 
     partnership;
       ``(III) provide to the eligible partnership a certificate, 
     from the chief administrative officer of the local 
     educational agency in which the resident is employed, of the 
     employment required in subclauses (I) and (II) at the 
     beginning of, and upon completion of, each year or partial 
     year of service;
       ``(IV) meet the requirements to be a highly qualified 
     teacher, as defined in section 9101 of the Elementary and 
     Secondary Education Act of 1965, or section 602 of the 
     Individuals with Disabilities Education Act, when the 
     applicant begins to fulfill the service obligation under this 
     clause; and
       ``(V) comply with the requirements set by the eligible 
     partnership under clause (iv) if the applicant is unable or 
     unwilling to complete the service obligation required by this 
     clause.

       ``(iv) Repayments.--

       ``(I) In general.--A grantee carrying out a teaching 
     residency program under this paragraph shall require a 
     recipient of a stipend or salary under clause (i) who does 
     not complete, or who notifies the partnership that the 
     recipient intends not to complete, the service obligation 
     required by clause (iii) to repay such stipend or salary to 
     the eligible partnership, together with interest, at a rate 
     specified by the partnership in the agreement, and in 
     accordance with such other terms and conditions specified by 
     the eligible partnership, as necessary.
       ``(II) Other terms and conditions.--Any other terms and 
     conditions specified by the eligible partnership may include 
     reasonable provisions for pro-rata repayment of the stipend 
     or salary described in clause (i) or for deferral of a 
     teaching resident's service obligation required by clause 
     (iii), on grounds of health, incapacitation, inability to 
     secure employment in a school served by the eligible 
     partnership, being called to active duty in the Armed Forces 
     of the United States, or other extraordinary circumstances.
       ``(III) Use of repayments.--An eligible partnership shall 
     use any repayment received under this clause to carry out 
     additional activities that are consistent with the purposes 
     of this subsection.

       ``(f) Partnership Grants for the Development of Leadership 
     Programs.--
       ``(1) In general.--An eligible partnership that receives a 
     grant under this section may carry out an effective school 
     leadership program, which may be carried out in partnership 
     with a local educational agency located in a rural area and 
     that shall include all of the following activities:
       ``(A) Preparing individuals enrolled or preparing to enroll 
     in school leadership programs for careers as superintendents, 
     principals, early childhood education program directors, or 
     other school leaders (including individuals preparing to work 
     in local educational agencies located in rural areas who may 
     perform multiple duties in addition to the role of a school 
     leader).
       ``(B) Promoting strong leadership skills and, as 
     applicable, techniques for school leaders to effectively--
       ``(i) create and maintain a data-driven, professional 
     learning community within the leader's school;
       ``(ii) provide a climate conducive to the professional 
     development of teachers, with a focus on improving student 
     academic achievement and the development of effective 
     instructional leadership skills;
       ``(iii) understand the teaching and assessment skills 
     needed to support successful classroom instruction and to use 
     data to evaluate teacher instruction and drive teacher and 
     student learning;
       ``(iv) manage resources and school time to improve student 
     academic achievement and ensure the school environment is 
     safe;
       ``(v) engage and involve parents, community members, the 
     local educational agency, businesses, and other community 
     leaders, to leverage additional resources to improve student 
     academic achievement; and
       ``(vi) understand how students learn and develop in order 
     to increase academic achievement for all students.
       ``(C) Ensuring that individuals who participate in the 
     school leadership program receive--
       ``(i) effective preservice preparation as described in 
     subparagraph (D);

[[Page 17111]]

       ``(ii) mentoring; and
       ``(iii) if applicable, full State certification or 
     licensure to become a school leader.
       ``(D) Developing and improving a sustained and high-quality 
     preservice clinical education program to further develop the 
     leadership skills of all prospective school leaders involved 
     in the program. Such clinical education program shall do the 
     following:
       ``(i) Incorporate year-long opportunities for enrichment, 
     including--

       ``(I) clinical learning in high-need schools served by the 
     high-need local educational agency or a local educational 
     agency located in a rural area in the eligible partnership 
     and identified by the eligible partnership; and
       ``(II) closely supervised interaction between prospective 
     school leaders and faculty, new and experienced teachers, and 
     new and experienced school leaders, in such high-need 
     schools.

       ``(ii) Integrate pedagogy and practice and promote 
     effective leadership skills, meeting the unique needs of 
     urban, rural, or geographically isolated communities, as 
     applicable.
       ``(iii) Provide for mentoring of new school leaders.
       ``(E) Creating an induction program for new school leaders.
       ``(F) Developing and implementing effective mechanisms to 
     ensure that the eligible partnership is able to recruit 
     qualified individuals to become school leaders through the 
     activities of the eligible partnership, which may include an 
     emphasis on recruiting into school leadership professions--
       ``(i) individuals from underrepresented populations;
       ``(ii) individuals to serve as superintendents, principals, 
     or other school administrators in rural and geographically 
     isolated communities and school leader shortage areas; and
       ``(iii) mid-career professionals from other occupations, 
     former military personnel, and recent college graduates with 
     a record of academic distinction.
       ``(2) Selection of individuals for the leadership 
     program.--In order to be eligible for the school leadership 
     program under this subsection, an individual shall be 
     enrolled in or preparing to enroll in an institution of 
     higher education, and shall--
       ``(A) be a--
       ``(i) recent graduate of an institution of higher 
     education;
       ``(ii) mid-career professional from outside the field of 
     education with strong content knowledge or a record of 
     professional accomplishment;
       ``(iii) current teacher who is interested in becoming a 
     school leader; or
       ``(iv) school leader who is interested in becoming a 
     superintendent; and
       ``(B) submit an application to the leadership program.
       ``(g) Partnership With Digital Education Content 
     Developer.--An eligible partnership that receives a grant 
     under this section may use grant funds provided to carry out 
     the activities described in subsection (d) or (e), or both, 
     to partner with a television public broadcast station, as 
     defined in section 397(6) of the Communications Act of 1934 
     (47 U.S.C. 397(6)), or another entity that develops digital 
     educational content, for the purpose of improving the quality 
     of pre-baccalaureate teacher preparation programs or to 
     enhance the quality of preservice training for prospective 
     teachers.
       ``(h) Evaluation and Reporting.--The Secretary shall--
       ``(1) evaluate the programs assisted under this section; 
     and
       ``(2) make publicly available a report detailing the 
     Secretary's evaluation of each such program.
       ``(i) Consultation.--
       ``(1) In general.--Members of an eligible partnership that 
     receives a grant under this section shall engage in regular 
     consultation throughout the development and implementation of 
     programs and activities carried out under this section.
       ``(2) Regular communication.--To ensure timely and 
     meaningful consultation as described in paragraph (1), 
     regular communication shall occur among all members of the 
     eligible partnership, including the high-need local 
     educational agency. Such communication shall continue 
     throughout the implementation of the grant and the assessment 
     of programs and activities under this section.
       ``(3) Written consent.--The Secretary may approve changes 
     in grant activities of a grant under this section only if the 
     eligible partnership submits to the Secretary a written 
     consent of such changes signed by all members of the eligible 
     partnership.
       ``(j) Construction.--Nothing in this section shall be 
     construed to prohibit an eligible partnership from using 
     grant funds to coordinate with the activities of eligible 
     partnerships in other States or on a regional basis through 
     Governors, State boards of education, State educational 
     agencies, State agencies responsible for early childhood 
     education, local educational agencies, or State agencies for 
     higher education.
       ``(k) Supplement, Not Supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities under this section.

     ``SEC. 203. ADMINISTRATIVE PROVISIONS.

       ``(a) Duration; Number of Awards; Payments.--
       ``(1) Duration.--A grant awarded under this part shall be 
     awarded for a period of five years.
       ``(2) Number of awards.--An eligible partnership may not 
     receive more than one grant during a five-year period. 
     Nothing in this title shall be construed to prohibit an 
     individual member, that can demonstrate need, of an eligible 
     partnership that receives a grant under this title from 
     entering into another eligible partnership consisting of new 
     members and receiving a grant with such other eligible 
     partnership before the five-year period described in the 
     preceding sentence applicable to the eligible partnership 
     with which the individual member has first partnered has 
     expired.
       ``(b) Peer Review.--
       ``(1) Panel.--The Secretary shall provide the applications 
     submitted under this part to a peer review panel for 
     evaluation. With respect to each application, the peer review 
     panel shall initially recommend the application for funding 
     or for disapproval.
       ``(2) Priority.--The Secretary, in funding applications 
     under this part, shall give priority--
       ``(A) to eligible partnerships that include an institution 
     of higher education whose teacher preparation program has a 
     rigorous selection process to ensure the highest quality of 
     students entering such program; and
       ``(B)(i) to applications from broad-based eligible 
     partnerships that involve businesses and community 
     organizations; or
       ``(ii) to eligible partnerships so that the awards promote 
     an equitable geographic distribution of grants among rural 
     and urban areas.
       ``(3) Secretarial selection.--The Secretary shall 
     determine, based on the peer review process, which 
     applications shall receive funding and the amounts of the 
     grants. In determining grant amounts, the Secretary shall 
     take into account the total amount of funds available for all 
     grants under this part and the types of activities proposed 
     to be carried out by the eligible partnership.
       ``(c) Matching Requirements.--
       ``(1) In general.--Each eligible partnership receiving a 
     grant under this part shall provide, from non-Federal 
     sources, an amount equal to 100 percent of the amount of the 
     grant, which may be provided in cash or in-kind, to carry out 
     the activities supported by the grant.
       ``(2) Waiver.--The Secretary may waive all or part of the 
     matching requirement described in paragraph (1) for any 
     fiscal year for an eligible partnership if the Secretary 
     determines that applying the matching requirement to the 
     eligible partnership would result in serious hardship or an 
     inability to carry out the authorized activities described in 
     this part.
       ``(d) Limitation on Administrative Expenses.--An eligible 
     partnership that receives a grant under this part may use not 
     more than two percent of the funds provided to administer the 
     grant.

     ``SEC. 204. ACCOUNTABILITY AND EVALUATION.

       ``(a) Eligible Partnership Evaluation.--Each eligible 
     partnership submitting an application for a grant under this 
     part shall establish, and include in such application, an 
     evaluation plan that includes strong and measurable 
     performance objectives. The plan shall include objectives and 
     measures for increasing--
       ``(1) achievement for all prospective and new teachers, as 
     measured by the eligible partnership;
       ``(2) teacher retention in the first three years of a 
     teacher's career;
       ``(3) improvement in the pass rates and scaled scores for 
     initial State certification or licensure of teachers; and
       ``(4)(A) the percentage of highly qualified teachers hired 
     by the high-need local educational agency participating in 
     the eligible partnership;
       ``(B) the percentage of highly qualified teachers hired by 
     the high-need local educational agency who are members of 
     underrepresented groups;
       ``(C) the percentage of highly qualified teachers hired by 
     the high-need local educational agency who teach high-need 
     academic subject areas (such as reading, mathematics, 
     science, and foreign language, including less commonly taught 
     languages and critical foreign languages);
       ``(D) the percentage of highly qualified teachers hired by 
     the high-need local educational agency who teach in high-need 
     areas (including special education, language instruction 
     educational programs for limited English proficient students, 
     and early childhood education);
       ``(E) the percentage of highly qualified teachers hired by 
     the high-need local educational agency who teach in high-need 
     schools, disaggregated by the elementary school and secondary 
     school levels;
       ``(F) as applicable, the percentage of early childhood 
     education program classes in the geographic area served by 
     the eligible partnership taught by early childhood educators 
     who are highly competent; and
       ``(G) as applicable, the percentage of teachers trained--
       ``(i) to integrate technology effectively into curricula 
     and instruction, including technology consistent with the 
     principles of universal design for learning; and
       ``(ii) to use technology effectively to collect, manage, 
     and analyze data to improve teaching and learning for the 
     purpose of improving student academic achievement.
       ``(b) Information.--An eligible partnership receiving a 
     grant under this part shall ensure that teachers, principals, 
     school superintendents, faculty, and leadership at 
     institutions of higher education located in the geographic 
     areas served by the eligible partnership are provided 
     information, including through electronic

[[Page 17112]]

     means, about the activities carried out with funds under this 
     part.
       ``(c) Revised Application.--If the Secretary determines 
     that an eligible partnership receiving a grant under this 
     part is not making substantial progress in meeting the 
     purposes, goals, objectives, and measures of the grant, as 
     appropriate, by the end of the third year of a grant under 
     this part, then the Secretary--
       ``(1) shall cancel the grant; and
       ``(2) may use any funds returned or available because of 
     such cancellation under paragraph (1) to--
       ``(A) increase other grant awards under this part; or
       ``(B) award new grants to other eligible partnerships under 
     this part.
       ``(d) Evaluation and Dissemination.--The Secretary shall 
     evaluate the activities funded under this part and report the 
     findings regarding the evaluation of such activities to the 
     authorizing committees. The Secretary shall broadly 
     disseminate--
       ``(1) successful practices developed by eligible 
     partnerships under this part; and
       ``(2) information regarding such practices that were found 
     to be ineffective.

     ``SEC. 205. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE 
                   TEACHERS.

       ``(a) Institutional and Program Report Cards on the Quality 
     of Teacher Preparation.--
       ``(1) Report card.--Each institution of higher education 
     that conducts a traditional teacher preparation program or 
     alternative routes to State certification or licensure 
     program and that enrolls students receiving Federal 
     assistance under this Act shall report annually to the State 
     and the general public, in a uniform and comprehensible 
     manner that conforms with the definitions and methods 
     established by the Secretary, the following:
       ``(A) Goals and assurances.--
       ``(i) For the most recent year for which the information is 
     available for the institution--

       ``(I) whether the goals set under section 206 have been 
     met; and
       ``(II) a description of the activities the institution 
     implemented to achieve such goals.

       ``(ii) A description of the steps the institution is taking 
     to improve its performance in meeting the annual goals set 
     under section 206.
       ``(iii) A description of the activities the institution has 
     implemented to meet the assurances provided under section 
     206.
       ``(B) Pass rates and scaled scores.--For the most recent 
     year for which the information is available for those 
     students who took the assessments used for teacher 
     certification or licensure by the State in which the program 
     is located and are enrolled in the traditional teacher 
     preparation program or alternative routes to State 
     certification or licensure program, and for those who have 
     taken such assessments and have completed the traditional 
     teacher preparation program or alternative routes to State 
     certification or licensure program during the two-year period 
     preceding such year, for each of such assessments--
       ``(i) the percentage of students who have completed 100 
     percent of the nonclinical coursework and taken the 
     assessment who pass such assessment;
       ``(ii) the percentage of all students who passed such 
     assessment;
       ``(iii) the percentage of students who have taken such 
     assessment who enrolled in and completed the traditional 
     teacher preparation program or alternative routes to State 
     certification or licensure program, as applicable;
       ``(iv) the average scaled score for all students who took 
     such assessment;
       ``(v) a comparison of the program's pass rates with the 
     average pass rates for programs in the State; and
       ``(vi) a comparison of the program's average scaled scores 
     with the average scaled scores for programs in the State.
       ``(C) Program information.--A description of--
       ``(i) the criteria for admission into the program;
       ``(ii) the number of students in the program (disaggregated 
     by race, ethnicity, and gender);
       ``(iii) the average number of hours of supervised clinical 
     experience required for those in the program;
       ``(iv) the number of full-time equivalent faculty and 
     students in the supervised clinical experience; and
       ``(v) the total number of students who have been certified 
     or licensed as teachers, disaggregated by subject and area of 
     certification or licensure.
       ``(D) Statement.--In States that require approval or 
     accreditation of teacher preparation programs, a statement of 
     whether the institution's program is so approved or 
     accredited, and by whom.
       ``(E) Designation as low-performing.--Whether the program 
     has been designated as low-performing by the State under 
     section 207(a).
       ``(F) Use of technology.--A description of the activities, 
     including activities consistent with the principles of 
     universal design for learning, that prepare teachers to 
     integrate technology effectively into curricula and 
     instruction, and to use technology effectively to collect, 
     manage, and analyze data in order to improve teaching and 
     learning for the purpose of increasing student academic 
     achievement.
       ``(G) Teacher training.--A description of the activities 
     that prepare general education and special education teachers 
     to teach students with disabilities effectively, including 
     training related to participation as a member of 
     individualized education program teams, as defined in section 
     614(d)(1)(B) of the Individuals with Disabilities Education 
     Act, and to effectively teach students who are limited 
     English proficient.
       ``(2) Report.--Each eligible partnership receiving a grant 
     under section 202 shall report annually on the progress of 
     the eligible partnership toward meeting the purposes of this 
     part and the objectives and measures described in section 
     204(a).
       ``(3) Fines.--The Secretary may impose a fine not to exceed 
     $27,500 on an institution of higher education for failure to 
     provide the information described in this subsection in a 
     timely or accurate manner.
       ``(4) Special rule.--In the case of an institution of 
     higher education that conducts a traditional teacher 
     preparation program or alternative routes to State 
     certification or licensure program and has fewer than 10 
     scores reported on any single initial teacher certification 
     or licensure assessment during an academic year, the 
     institution shall collect and publish information, as 
     required under paragraph (1)(B), with respect to an average 
     pass rate and scaled score on each State certification or 
     licensure assessment taken over a three-year period.
       ``(b) State Report Card on the Quality of Teacher 
     Preparation.--
       ``(1) In general.--Each State that receives funds under 
     this Act shall provide to the Secretary, and make widely 
     available to the general public, in a uniform and 
     comprehensible manner that conforms with the definitions and 
     methods established by the Secretary, an annual State report 
     card on the quality of teacher preparation in the State, both 
     for traditional teacher preparation programs and for 
     alternative routes to State certification or licensure 
     programs, which shall include not less than the following:
       ``(A) A description of the reliability and validity of the 
     teacher certification and licensure assessments, and any 
     other certification and licensure requirements, used by the 
     State.
       ``(B) The standards and criteria that prospective teachers 
     must meet to attain initial teacher certification or 
     licensure and to be certified or licensed to teach particular 
     academic subjects, areas, or grades within the State.
       ``(C) A description of how the assessments and requirements 
     described in subparagraph (A) are aligned with the State's 
     challenging academic content standards required under section 
     1111(b)(1) of the Elementary and Secondary Education Act of 
     1965 and, as applicable, State early learning standards for 
     early childhood education programs.
       ``(D) For each of the assessments used by the State for 
     teacher certification or licensure--
       ``(i) for each institution of higher education located in 
     the State and each entity located in the State, including 
     those that offer an alternative route for teacher 
     certification or licensure, the percentage of students at 
     such institution or entity who have completed 100 percent of 
     the nonclinical coursework and taken the assessment who pass 
     such assessment;
       ``(ii) the percentage of all such students at all such 
     institutions and entities who have taken the assessment who 
     pass such assessment;
       ``(iii) the percentage of students who have taken the 
     assessment who enrolled in and completed a teacher 
     preparation program; and
       ``(iv) the average scaled score of individuals 
     participating in such a program, or who have completed such a 
     program during the two-year period preceding the first year 
     for which the annual State report card is provided, who took 
     each such assessment.
       ``(E) A description of alternative routes to teacher 
     certification or licensure in the State (including any such 
     routes operated by entities that are not institutions of 
     higher education), if any, including, for each of the 
     assessments used by the State for teacher certification or 
     licensure--
       ``(i) the percentage of individuals participating in such 
     routes, or who have completed such routes during the two-year 
     period preceding the date for which the determination is 
     made, who passed each such assessment; and
       ``(ii) the average scaled score of individuals 
     participating in such routes, or who have completed such 
     routes during the two-year period preceding the first year 
     for which the annual State report card is provided, who took 
     each such assessment.
       ``(F) A description of the State's criteria for assessing 
     the performance of teacher preparation programs within 
     institutions of higher education in the State. Such criteria 
     shall include indicators of the academic content knowledge 
     and teaching skills of students enrolled in such programs.
       ``(G) For each teacher preparation program in the State--
       ``(i) the criteria for admission into the program;
       ``(ii) the number of students in the program, disaggregated 
     by race, ethnicity, and gender (except that such 
     disaggregation shall not be required in a case in which the 
     number of students in a category is insufficient to yield 
     statistically reliable information or the results would 
     reveal personally identifiable information about an 
     individual student);
       ``(iii) the average number of hours of supervised clinical 
     experience required for those in the program; and
       ``(iv) the number of full-time equivalent faculty, adjunct 
     faculty, and students in supervised clinical experience.
       ``(H) For the State as a whole, and for each teacher 
     preparation program in the State, the number of teachers 
     prepared, in the aggregate and reported separately by--

[[Page 17113]]

       ``(i) area of certification or licensure;
       ``(ii) academic major; and
       ``(iii) subject area for which the teacher has been 
     prepared to teach.
       ``(I) A description of the extent to which teacher 
     preparation programs are addressing shortages of highly 
     qualified teachers, by area of certification or licensure, 
     subject, and specialty, in the State's public schools.
       ``(J) The extent to which teacher preparation programs 
     prepare teachers, including general education and special 
     education teachers, to teach students with disabilities 
     effectively, including training related to participation as a 
     member of individualized education program teams, as defined 
     in section 614(d)(1)(B) of the Individuals with Disabilities 
     Education Act.
       ``(K) A description of the activities that prepare teachers 
     to--
       ``(i) integrate technology effectively into curricula and 
     instruction, including activities consistent with the 
     principles of universal design for learning; and
       ``(ii) use technology effectively to collect, manage, and 
     analyze data to improve teaching and learning for the purpose 
     of increasing student academic achievement.
       ``(L) The extent to which teacher preparation programs 
     prepare teachers, including general education and special 
     education teachers, to effectively teach students who are 
     limited English proficient.
       ``(2) Prohibition against creating a national list.--The 
     Secretary shall not create a national list or ranking of 
     States, institutions, or schools using the scaled scores 
     provided under this subsection.
       ``(c) Data Quality.--The Secretary shall prescribe 
     regulations to ensure the reliability, validity, integrity, 
     and accuracy of the data submitted pursuant to this section.
       ``(d) Report of the Secretary on the Quality of Teacher 
     Preparation.--
       ``(1) Report card.--The Secretary shall annually provide to 
     the authorizing committees, and publish and make widely 
     available, a report card on teacher qualifications and 
     preparation in the United States, including all the 
     information reported in subparagraphs (A) through (L) of 
     subsection (b)(1). Such report shall identify States for 
     which eligible partnerships received a grant under this part.
       ``(2) Report to congress.--The Secretary shall prepare and 
     submit a report to the authorizing committees that contains 
     the following:
       ``(A) A comparison of States' efforts to improve the 
     quality of the current and future teaching force.
       ``(B) A comparison of eligible partnerships' efforts to 
     improve the quality of the current and future teaching force.
       ``(C) The national mean and median scaled scores and pass 
     rate on any standardized test that is used in more than one 
     State for teacher certification or licensure.
       ``(3) Special rule.--In the case of a teacher preparation 
     program with fewer than ten scores reported on any single 
     initial teacher certification or licensure assessment during 
     an academic year, the Secretary shall collect and publish, 
     and make publicly available, information with respect to an 
     average pass rate and scaled score on each State 
     certification or licensure assessment taken over a three-year 
     period.
       ``(e) Coordination.--The Secretary, to the extent 
     practicable, shall coordinate the information collected and 
     published under this part among States for individuals who 
     took State teacher certification or licensure assessments in 
     a State other than the State in which the individual received 
     the individual's most recent degree.

     ``SEC. 206. TEACHER DEVELOPMENT.

       ``(a) Annual Goals.--Each institution of higher education 
     that conducts a traditional teacher preparation program 
     (including programs that offer any ongoing professional 
     development programs) or alternative routes to State 
     certification or licensure program, and that enrolls students 
     receiving Federal assistance under this Act, shall set annual 
     quantifiable goals for increasing the number of prospective 
     teachers trained in teacher shortage areas designated by the 
     Secretary or by the State educational agency, including 
     mathematics, science, special education, and instruction of 
     limited English proficient students.
       ``(b) Assurances.--Each institution described in subsection 
     (a) shall provide assurances to the Secretary that--
       ``(1) training provided to prospective teachers responds to 
     the identified needs of the local educational agencies or 
     States where the institution's graduates are likely to teach, 
     based on past hiring and recruitment trends;
       ``(2) training provided to prospective teachers is closely 
     linked with the needs of schools and the instructional 
     decisions new teachers face in the classroom;
       ``(3) prospective special education teachers receive course 
     work in core academic subjects and receive training in 
     providing instruction in core academic subjects;
       ``(4) general education teachers receive training in 
     providing instruction to diverse populations, including 
     children with disabilities, limited English proficient 
     students, and children from low-income families; and
       ``(5) prospective teachers receive training on how to 
     effectively teach in urban and rural schools, as applicable.
       ``(c) Rule of Construction.--Nothing in this section shall 
     be construed to require an institution to create a new 
     teacher preparation area of concentration or degree program 
     or adopt a specific curriculum in complying with this 
     section.

     ``SEC. 207. STATE FUNCTIONS.

       ``(a) State Assessment.--In order to receive funds under 
     this Act, a State shall conduct an assessment to identify 
     low-performing teacher preparation programs in the State and 
     to assist such programs through the provision of technical 
     assistance. Each such State shall provide the Secretary with 
     an annual list of low-performing teacher preparation programs 
     and an identification of those programs at risk of being 
     placed on such list, as applicable. Such assessment shall be 
     described in the report under section 205(b). Levels of 
     performance shall be determined solely by the State and may 
     include criteria based on information collected pursuant to 
     this part, including progress in meeting the goals of--
       ``(1) increasing the percentage of highly qualified 
     teachers in the State, including increasing professional 
     development opportunities;
       ``(2) improving student academic achievement for elementary 
     and secondary students; and
       ``(3) raising the standards for entry into the teaching 
     profession.
       ``(b) Termination of Eligibility.--Any teacher preparation 
     program from which the State has withdrawn the State's 
     approval, or terminated the State's financial support, due to 
     the low performance of the program based upon the State 
     assessment described in subsection (a)--
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department;
       ``(2) may not be permitted to accept or enroll any student 
     who receives aid under title IV in the institution's teacher 
     preparation program;
       ``(3) shall provide transitional support, including 
     remedial services if necessary, for students enrolled at the 
     institution at the time of termination of financial support 
     or withdrawal of approval; and
       ``(4) shall be reinstated upon demonstration of improved 
     performance, as determined by the State.
       ``(c) Negotiated Rulemaking.--If the Secretary develops any 
     regulations implementing subsection (b)(2), the Secretary 
     shall submit such proposed regulations to a negotiated 
     rulemaking process, which shall include representatives of 
     States, institutions of higher education, and educational and 
     student organizations.
       ``(d) Application of the Requirements.--The requirements of 
     this section shall apply to both traditional teacher 
     preparation programs and alternative routes to State 
     certification and licensure programs.

     ``SEC. 208. GENERAL PROVISIONS.

       ``(a) Methods.--In complying with sections 205 and 206, the 
     Secretary shall ensure that States and institutions of higher 
     education use fair and equitable methods in reporting and 
     that the reporting methods do not reveal personally 
     identifiable information.
       ``(b) Special Rule.--For each State that does not use 
     content assessments as a means of ensuring that all teachers 
     teaching in core academic subjects within the State are 
     highly qualified, as required under section 1119 of the 
     Elementary and Secondary Education Act of 1965, in accordance 
     with the State plan submitted or revised under section 1111 
     of such Act, and that each person employed as a special 
     education teacher in the State who teaches elementary school 
     or secondary school is highly qualified by the deadline, as 
     required under section 612(a)(14)(C) of the Individuals with 
     Disabilities Education Act, the Secretary shall--
       ``(1) to the extent practicable, collect data comparable to 
     the data required under this part from States, local 
     educational agencies, institutions of higher education, or 
     other entities that administer such assessments to teachers 
     or prospective teachers; and
       ``(2) notwithstanding any other provision of this part, use 
     such data to carry out requirements of this part related to 
     assessments, pass rates, and scaled scores.
       ``(c) Release of Information to Teacher Preparation 
     Programs.--
       ``(1) In general.--For the purpose of improving teacher 
     preparation programs, a State that receives funds under this 
     Act, or that participates as a member of a partnership, 
     consortium, or other entity that receives such funds, shall 
     provide to a teacher preparation program, upon the request of 
     the teacher preparation program, any and all pertinent 
     education-related information that--
       ``(A) may enable the teacher preparation program to 
     evaluate the effectiveness of the program's graduates or the 
     program itself; and
       ``(B) is possessed, controlled, or accessible by the State.
       ``(2) Content of information.--The information described in 
     paragraph (1)--
       ``(A) shall include an identification of specific 
     individuals who graduated from the teacher preparation 
     program to enable the teacher preparation program to evaluate 
     the information provided to the program from the State with 
     the program's own data about the specific courses taken by, 
     and field experiences of, the individual graduates; and
       ``(B) may include--
       ``(i) kindergarten through grade 12 academic achievement 
     and demographic data, without revealing personally 
     identifiable information about an individual student, for 
     students who have been taught by graduates of the teacher 
     preparation program; and
       ``(ii) teacher effectiveness evaluations for teachers who 
     graduated from the teacher preparation program.

     ``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part $300,000,000 for fiscal year 2009 and such sums as may 
     be necessary for each of the two succeeding fiscal years.''; 
     and

[[Page 17114]]

       (3) by striking part B and inserting the following:

                 ``PART B--ENHANCING TEACHER EDUCATION

     ``SEC. 230. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2009 and 
     each of the five succeeding fiscal years.
       ``Subpart 1--Preparing Teachers for Digital Age Learners

     ``SEC. 231. PROGRAM AUTHORIZED.

       ``(a) Program Authority.--The Secretary is authorized to 
     award grants to, or enter into contracts or cooperative 
     agreements with, eligible consortia to pay the Federal share 
     of the costs of projects to--
       ``(1) serve graduate teacher candidates who are prepared to 
     use modern information, communication, and learning tools 
     to--
       ``(A) improve student learning, assessment, and learning 
     management; and
       ``(B) help students develop learning skills to succeed in 
     higher education and to enter the workforce;
       ``(2) strengthen and develop partnerships among the 
     stakeholders in teacher preparation to transform teacher 
     education and ensure technology-rich teaching and learning 
     environments throughout a teacher candidate's preservice 
     education, including clinical experiences; and
       ``(3) assess the effectiveness of departments, schools, and 
     colleges of education at institutions of higher education in 
     preparing teacher candidates for successful implementation of 
     technology-rich teaching and learning environments, including 
     environments consistent with the principles of universal 
     design for learning, that enable kindergarten through grade 
     12 students to develop learning skills to succeed in higher 
     education and to enter the workforce.
       ``(b) Amount and Duration.--A grant, contract, or 
     cooperative agreement under this subpart--
       ``(1) shall be for not more than $2,000,000;
       ``(2) shall be for a three-year period; and
       ``(3) may be renewed for one additional year.
       ``(c) Non-Federal Share Requirement.--The Federal share of 
     the cost of any project funded under this subpart shall not 
     exceed 75 percent. The non-Federal share of the cost of such 
     project may be provided in cash or in kind, fairly evaluated, 
     including services.
       ``(d) Definition of Eligible Consortium.--In this subpart, 
     the term `eligible consortium' means a consortium of members 
     that includes the following:
       ``(1) Not less than one institution of higher education 
     that awards baccalaureate or masters degrees and prepares 
     teachers for initial entry into teaching.
       ``(2) Not less than one State educational agency or local 
     educational agency.
       ``(3) A department, school, or college of education at an 
     institution of higher education.
       ``(4) A department, school, or college of arts and sciences 
     at an institution of higher education.
       ``(5) Not less than one entity with the capacity to 
     contribute to the technology-related reform of teacher 
     preparation programs, which may be a professional 
     association, foundation, museum, library, for-profit 
     business, public or private nonprofit organization, 
     community-based organization, or other entity.

     ``SEC. 232. USES OF FUNDS.

       ``(a) In General.--An eligible consortium that receives a 
     grant or enters into a contract or cooperative agreement 
     under this subpart shall use funds made available under this 
     subpart to carry out a project that--
       ``(1) develops long-term partnerships among members of the 
     consortium that are focused on effective teaching with modern 
     digital tools and content that substantially connect 
     preservice preparation of teacher candidates with high-need 
     schools; or
       ``(2) transforms the way departments, schools, and colleges 
     of education teach classroom technology integration, 
     including the principles of universal design, to teacher 
     candidates.
       ``(b) Uses of Funds for Partnership Grants.--In carrying 
     out a project under subsection (a)(1), an eligible consortium 
     shall--
       ``(1) provide teacher candidates, early in their 
     preparation, with field experiences with technology in 
     educational settings;
       ``(2) build the skills of teacher candidates to support 
     technology-rich instruction, assessment and learning 
     management in content areas, technology literacy, an 
     understanding of the principles of universal design, and the 
     development of other skills for entering the workforce;
       ``(3) provide professional development in the use of 
     technology for teachers, administrators, and content 
     specialists who participate in field placement;
       ``(4) provide professional development of technology 
     pedagogical skills for faculty of departments, schools, and 
     colleges of education and arts and sciences;
       ``(5) implement strategies for the mentoring of teacher 
     candidates by members of the consortium with respect to 
     technology implementation;
       ``(6) evaluate teacher candidates during the first years of 
     teaching to fully assess outcomes of the project;
       ``(7) build collaborative learning communities for 
     technology integration within the consortium to sustain 
     meaningful applications of technology in the classroom during 
     teacher preparation and early career practice; and
       ``(8) evaluate the effectiveness of the project.
       ``(c) Uses of Funds for Transformation Grants.--In carrying 
     out a project under subsection (a)(2), an eligible consortium 
     shall--
       ``(1) redesign curriculum to require collaboration between 
     the department, school, or college of education faculty and 
     the department, school, or college of arts and sciences 
     faculty who teach content or methods courses for training 
     teacher candidates;
       ``(2) collaborate between the department, school, or 
     college of education faculty and the department, school, or 
     college of arts and science faculty and academic content 
     specialists at the local educational agency to educate 
     preservice teachers who can integrate technology and 
     pedagogical skills in content areas;
       ``(3) collaborate between the department, school, or 
     college of education faculty and the department, school, or 
     college of arts and sciences faculty who teach courses to 
     preservice teachers to--
       ``(A) develop and implement a plan for preservice teachers 
     and continuing educators that demonstrates effective 
     instructional strategies and application of such strategies 
     in the use of digital tools to transform the teaching and 
     learning process; and
       ``(B) better reach underrepresented preservice teacher 
     populations with programs that connect such preservice 
     teacher populations with applications of technology;
       ``(4) collaborate among faculty and students to create and 
     disseminate case studies of technology applications in 
     classroom settings with a goal of improving student academic 
     achievement in high-need schools;
       ``(5) provide additional technology resources for 
     preservice teachers to plan and implement technology 
     applications in classroom settings that provide evidence of 
     student learning; and
       ``(6) bring together expertise from departments, schools, 
     or colleges of education, arts and science faculty, and 
     academic content specialists at the local educational agency 
     to share and disseminate technology applications in the 
     classroom through teacher preparation and into early career 
     practice.

     ``SEC. 233. APPLICATION REQUIREMENTS.

       ``To be eligible to receive a grant or enter into a 
     contract or cooperative agreement under this subpart, an 
     eligible consortium shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. Such application 
     shall include the following:
       ``(1) A description of the project to be carried out with 
     the grant, including how the project will--
       ``(A) develop a long-term partnership focused on effective 
     teaching with modern digital tools and content that 
     substantially connects preservice preparation of teacher 
     candidates with high-need schools; or
       ``(B) transform the way departments, schools, and colleges 
     of education teach classroom technology integration, 
     including the principles of universal design, to teacher 
     candidates.
       ``(2) A demonstration of--
       ``(A) the commitment, including the financial commitment, 
     of each of the members of the consortium for the proposed 
     project; and
       ``(B) the support of the leadership of each organization 
     that is a member of the consortium for the proposed project.
       ``(3) A description of how each member of the consortium 
     will participate in the project.
       ``(4) A description of how the State educational agency or 
     local educational agency will incorporate the project into 
     the agency's technology plan, if such a plan already exists.
       ``(5) A description of how the project will be continued 
     after Federal funds are no longer available under this 
     subpart for the project.
       ``(6) A description of how the project will incorporate--
       ``(A) State teacher technology standards; and
       ``(B) State student technology standards.
       ``(7) A plan for the evaluation of the project, which shall 
     include benchmarks to monitor progress toward specific 
     project objectives.

     ``SEC. 234. EVALUATION.

       ``Not less than ten percent of the funds awarded to an 
     eligible consortium to carry out a project under this subpart 
     shall be used to evaluate the effectiveness of such project.

     ``SUBPART 2--HONORABLE AUGUSTUS F. HAWKINS CENTERS OF 
                   EXCELLENCE

     ``SEC. 241. DEFINITIONS.

       ``In this subpart:
       ``(1) Eligible institution.--The term `eligible 
     institution' means--
       ``(A) an institution of higher education that has a teacher 
     preparation program that is a qualified teacher preparation 
     program and that is--
       ``(i) a part B institution (as defined in section 322);
       ``(ii) a Hispanic-serving institution (as defined in 
     section 502);
       ``(iii) a Tribal College or University (as defined in 
     section 316);
       ``(iv) an Alaska Native-serving institution (as defined in 
     section 317(b));
       ``(v) a Native Hawaiian-serving institution (as defined in 
     section 317(b));
       ``(vi) a Predominantly Black Institution (as defined in 
     section 318);
       ``(vii) an Asian American and Native American Pacific 
     Islander-serving institution (as defined in section 320(b)); 
     or
       ``(viii) a Native American-serving, nontribal institution 
     (as defined in section 319);
       ``(B) a consortium of institutions described in 
     subparagraph (A); or
       ``(C) an institution described in subparagraph (A), or a 
     consortium described in subparagraph (B), in partnership with 
     any other institution of higher education, but only if the 
     center of excellence established under section 242 is located 
     at an institution described in subparagraph (A).

[[Page 17115]]

       ``(2) Scientifically based reading research.--The term 
     `scientifically based reading research' has the meaning given 
     such term in section 1208 of the Elementary and Secondary 
     Education Act of 1965.

     ``SEC. 242. AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE.

       ``(a) Program Authorized.--From the amounts appropriated to 
     carry out this part, the Secretary is authorized to award 
     competitive grants to eligible institutions to establish 
     centers of excellence.
       ``(b) Use of Funds.--Grants provided by the Secretary under 
     this subpart shall be used to ensure that current and future 
     teachers are highly qualified by carrying out one or more of 
     the following activities:
       ``(1) Implementing reforms within teacher preparation 
     programs to ensure that such programs are preparing teachers 
     who are highly qualified, are able to understand 
     scientifically valid research, and are able to use advanced 
     technology effectively in the classroom, including use of 
     instructional techniques to improve student academic 
     achievement, by--
       ``(A) retraining or recruiting faculty; and
       ``(B) designing (or redesigning) teacher preparation 
     programs that--
       ``(i) prepare teachers to serve in low-performing schools 
     and close student achievement gaps, and that are based on 
     rigorous academic content, scientifically valid research 
     (including scientifically based reading research and 
     mathematics research, as it becomes available), and 
     challenging State academic content standards and student 
     academic achievement standards; and
       ``(ii) promote strong teaching skills.
       ``(2) Providing sustained and high-quality preservice 
     clinical experience, including the mentoring of prospective 
     teachers by exemplary teachers, substantially increasing 
     interaction between faculty at institutions of higher 
     education and new and experienced teachers, principals, and 
     other administrators at elementary schools or secondary 
     schools, and providing support, including preparation time, 
     for such interaction.
       ``(3) Developing and implementing initiatives to promote 
     retention of highly qualified teachers and principals, 
     including minority teachers and principals, including 
     programs that provide--
       ``(A) teacher or principal mentoring from exemplary 
     teachers or principals, respectively; or
       ``(B) induction and support for teachers and principals 
     during their first three years of employment as teachers or 
     principals, respectively.
       ``(4) Awarding scholarships based on financial need to help 
     students pay the costs of tuition, room, board, and other 
     expenses of completing a teacher preparation program, not to 
     exceed the cost of attendance.
       ``(5) Disseminating information on effective practices for 
     teacher preparation and successful teacher certification and 
     licensure assessment preparation strategies.
       ``(6) Activities authorized under section 202.
       ``(c) Application.--Any eligible institution desiring a 
     grant under this subpart shall submit an application to the 
     Secretary at such a time, in such a manner, and accompanied 
     by such information as the Secretary may require.
       ``(d) Minimum Grant Amount.--The minimum amount of each 
     grant under this subpart shall be $500,000.
       ``(e) Limitation on Administrative Expenses.--An eligible 
     institution that receives a grant under this subpart may use 
     not more than two percent of the funds provided to administer 
     the grant.
       ``(f) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out this subpart.

     ``SUBPART 3--PREPARING GENERAL EDUCATION TEACHERS TO MORE 
                   EFFECTIVELY EDUCATE STUDENTS WITH DISABILITIES

     ``SEC. 251. TEACH TO REACH GRANTS.

       ``(a) Authorization of Program.--
       ``(1) In general.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible partnerships to 
     improve the preparation of general education teacher 
     candidates to ensure that such teacher candidates possess the 
     knowledge and skills necessary to effectively instruct 
     students with disabilities in general education classrooms.
       ``(2) Duration of grants.--A grant under this section shall 
     be awarded for a period of not more than five years.
       ``(3) Non-federal share.--An eligible partnership that 
     receives a grant under this section shall provide not less 
     than 25 percent of the cost of the activities carried out 
     with such grant from non-Federal sources, which may be 
     provided in cash or in kind.
       ``(b) Definition of Eligible Partnership.--In this section, 
     the term `eligible partnership' means a partnership that--
       ``(1) shall include--
       ``(A) one or more departments or programs at an institution 
     of higher education--
       ``(i) that prepare elementary or secondary general 
     education teachers;
       ``(ii) that have a program of study that leads to an 
     undergraduate degree, a master's degree, or completion of a 
     postbaccalaureate program required for teacher certification; 
     and
       ``(iii) the graduates of which are highly qualified;
       ``(B) a department or program of special education at an 
     institution of higher education;
       ``(C) a department or program at an institution of higher 
     education that provides degrees in core academic subjects; 
     and
       ``(D) a high-need local educational agency; and
       ``(2) may include a department or program of mathematics, 
     earth or physical science, foreign language, or another 
     department at the institution that has a role in preparing 
     teachers.
       ``(c) Activities.--An eligible partnership that receives a 
     grant under this section--
       ``(1) shall use the grant funds to--
       ``(A) develop or strengthen an undergraduate, 
     postbaccalaureate, or master's teacher preparation program by 
     integrating special education strategies into the general 
     education curriculum and academic content;
       ``(B) provide teacher candidates participating in the 
     program under subparagraph (A) with skills related to--
       ``(i) response to intervention, positive behavioral 
     interventions and supports, differentiated instruction, and 
     data driven instruction;
       ``(ii) universal design for learning;
       ``(iii) determining and utilizing accommodations for 
     instruction and assessments;
       ``(iv) collaborating with special educators, related 
     services providers, and parents, including participation in 
     individualized education program development and 
     implementation; and
       ``(v) appropriately utilizing technology and assistive 
     technology for students with disabilities; and
       ``(C) provide extensive clinical experience for 
     participants described in subparagraph (B) with mentoring and 
     induction support throughout the program that continues 
     during the first two years of full-time teaching; and
       ``(2) may use grant funds to develop and administer 
     alternate assessments of students with disabilities.
       ``(d) Application.--An eligible partnership seeking a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. Such application 
     shall include--
       ``(1) a self-assessment by the eligible partnership of the 
     existing teacher preparation program at the institution of 
     higher education and needs related to preparing general 
     education teacher candidates to instruct students with 
     disabilities; and
       ``(2) an assessment of the existing personnel needs for 
     general education teachers who instruct students with 
     disabilities, performed by the local educational agency in 
     which most graduates of the teacher preparation program are 
     likely to teach after completion of the program under 
     subsection (c)(1).
       ``(e) Peer Review.--The Secretary shall convene a peer 
     review committee to review applications for grants under this 
     section and to make recommendations to the Secretary 
     regarding the selection of grantees. Members of the peer 
     review committee shall be recognized experts in the fields of 
     special education, teacher preparation, and general education 
     and shall not be in a position to benefit financially from 
     any grants awarded under this section.
       ``(f) Evaluations.--
       ``(1) By the partnership.--
       ``(A) In general.--An eligible partnership receiving a 
     grant under this section shall conduct an evaluation at the 
     end of the grant period to determine--
       ``(i) the effectiveness of the general education teachers 
     who completed a program under subsection (c)(1) with respect 
     to instruction of students with disabilities in general 
     education classrooms; and
       ``(ii) the systemic impact of the activities carried out by 
     such grant on how each institution of higher education that 
     is a member of the partnership prepares teachers for 
     instruction in elementary schools and secondary schools.
       ``(B) Report to the secretary.--Each eligible partnership 
     performing an evaluation under subparagraph (A) shall report 
     the findings of such evaluation to the Secretary.
       ``(2) Report by the secretary.--Not later than 180 days 
     after the last day of the grant period under this section, 
     the Secretary shall make available to Congress and the public 
     the findings of the evaluations submitted under paragraph 
     (1), and information on best practices related to effective 
     instruction of students with disabilities in general 
     education classrooms.

                   ``Subpart 4--Adjunct Teacher Corps

     ``SEC. 255. ADJUNCT TEACHER CORPS.

       ``(a) Purpose.--The purpose of this section is to create 
     opportunities for professionals and other individuals with 
     subject matter expertise in mathematics, science, or critical 
     foreign languages to provide such subject matter expertise to 
     secondary school students on an adjunct basis.
       ``(b) Program Authorized.--The Secretary is authorized to 
     award grants on a competitive basis to eligible entities to 
     identify, recruit, and train qualified individuals with 
     subject matter expertise in mathematics, science, or critical 
     foreign languages to serve as adjunct content specialists.
       ``(c) Duration of Grants.--The Secretary may award grants 
     under this section for a period of not more than five years.
       ``(d) Eligible Entity.--In this section, the term `eligible 
     entity' means--
       ``(1) a local educational agency; or
       ``(2) a partnership consisting of a local educational 
     agency, serving as a fiscal agent, and a public or private 
     educational organization or business.
       ``(e) Uses of Funds.--An eligible entity that receives a 
     grant under this section is authorized to use such grant to 
     carry out one or both of the following activities:
       ``(1) To develop the capacity of the eligible entity to 
     identify, recruit, and train individuals with subject matter 
     expertise in mathematics,

[[Page 17116]]

     science, or critical foreign languages who are not employed 
     in the elementary and secondary education system (including 
     individuals in business and government, and individuals who 
     would participate through distance-learning arrangements) to 
     become adjunct content specialists.
       ``(2) To provide preservice training and on-going 
     professional development to adjunct content specialists.
       ``(f) Applications.--
       ``(1) Application required.--An eligible entity that 
     desires a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(2) Contents.--An application submitted under paragraph 
     (1) shall include--
       ``(A) a description of--
       ``(i) the need for, and expected benefits of using, adjunct 
     content specialists in the schools served by the local 
     educational agency, which may include information on the 
     difficulty the local educational agency faces in recruiting 
     qualified faculty in mathematics, science, and critical 
     foreign language courses;
       ``(ii) measurable objectives for the activities supported 
     by the grant, including the number of adjunct content 
     specialists the eligible entity intends to place in schools 
     and classrooms, and the gains in academic achievement 
     expected as a result of the addition of such specialists;
       ``(iii) how the eligible entity will establish criteria for 
     and recruit the most qualified individuals and public or 
     private organizations and businesses to participate in the 
     activities supported by the grant;
       ``(iv) how the eligible entity will provide preservice 
     training and on-going professional development to adjunct 
     content specialists to ensure that such specialists have the 
     capacity to serve effectively;
       ``(v) how the eligible entity will use funds received under 
     this section, including how the eligible entity will evaluate 
     the success of the activities supported by the grant; and
       ``(vi) how the eligible entity will support and continue 
     the activities supported by the grant after the grant has 
     expired, including how such entity will seek support from 
     other sources, such as State and local government and the 
     private sector; and
       ``(B) an assurance that the use of adjunct content 
     specialists will not result in the displacement or transfer 
     of currently employed teachers nor a reduction in the number 
     of overall teachers in the district.
       ``(g) Priorities.--In awarding grants under this section, 
     the Secretary shall give priority to eligible entities that 
     demonstrate in the application for such a grant a plan to--
       ``(1) serve the schools served by the local educational 
     agency that have a large number or percentage of students 
     performing below grade level in mathematics, science, or 
     critical foreign language courses;
       ``(2) serve local educational agencies that have a large 
     number or percentage of students from low-income families; 
     and
       ``(3) recruit and train individuals to serve as adjunct 
     content specialists in schools that have an insufficient 
     number of teachers in mathematics, science, or critical 
     foreign languages.
       ``(h) Matching Requirement.--Each eligible entity that 
     receives a grant under this section shall provide, from non-
     Federal sources, an amount equal to 100 percent of the amount 
     of such grant (in cash or in kind) to carry out the 
     activities supported by such grant.
       ``(i) Performance Report.--Each eligible entity receiving a 
     grant under this section shall prepare and submit to the 
     Secretary a final report on the results of the activities 
     supported by such grant, which shall contain such information 
     as the Secretary may require, including any improvements in 
     student academic achievement as a result of the use of 
     adjunct content specialists.
       ``(j) Evaluation.--The Secretary shall evaluate the 
     activities supported by grants under this section, including 
     the impact of such activities on student academic 
     achievement, and shall report the results of such evaluation 
     to the authorizing committees.
       ``(k) Definition.--In this section, the term `adjunct 
     content specialist' means an individual who--
       ``(1) meets the requirements of section 9101(23)(B)(ii) of 
     the Elementary and Secondary Education Act of 1965;
       ``(2) has demonstrated expertise in mathematics, science, 
     or a critical foreign language, as determined by the local 
     educational agency; and
       ``(3) is not the primary provider of instructional services 
     to a student, unless the adjunct content specialist is under 
     the direct supervision of a teacher who meets the 
     requirements of section 9101(23) of such Act.

``Subpart 5--Graduate Fellowships to Prepare Faculty in High-Need Areas 
                        at Colleges of Education

     ``SEC. 258. GRADUATE FELLOWSHIPS TO PREPARE FACULTY IN HIGH-
                   NEED AREAS AT COLLEGES OF EDUCATION.

       ``(a) Grants by Secretary.--The Secretary shall make grants 
     to eligible institutions to enable such institutions to make 
     graduate fellowship awards to qualified individuals in 
     accordance with the provisions of this section.
       ``(b) Eligible Institutions.--In this section, the term 
     `eligible institution' means an institution of higher 
     education, or a consortium of such institutions, that offers 
     a program of postbaccalaureate study leading to a doctoral 
     degree.
       ``(c) Applications.--An eligible institution that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(d) Types of Fellowships Supported.--
       ``(1) In general.--An eligible institution that receives a 
     grant under this section shall use the grant funds to provide 
     graduate fellowships to individuals who are preparing for the 
     professorate in order to prepare individuals to become highly 
     qualified elementary school and secondary school mathematics 
     and science teachers, special education teachers, and 
     teachers who provide instruction for limited English 
     proficient students.
       ``(2) Types of study.--A graduate fellowship provided under 
     this section shall support an individual in pursuing 
     postbaccalaureate study, which leads to a doctoral degree and 
     may include a master's degree as part of such study, related 
     to teacher preparation and pedagogy in one of the following 
     areas:
       ``(A) Science, technology, engineering, or mathematics, if 
     the individual has completed a master's degree in mathematics 
     or science and is pursuing a doctoral degree in mathematics, 
     science, or education.
       ``(B) Special education.
       ``(C) The instruction of limited English proficient 
     students, including postbaccalaureate study in language 
     instruction educational programs.
       ``(e) Fellowship Terms and Conditions.--
       ``(1) Selection of fellows.--The Secretary shall ensure 
     that an eligible institution that receives a grant under this 
     section--
       ``(A) shall provide graduate fellowship awards to 
     individuals who plan to pursue a career in instruction at an 
     institution of higher education that has a teacher 
     preparation program; and
       ``(B) may not provide a graduate fellowship to an otherwise 
     eligible individual--
       ``(i) during periods in which such individual is enrolled 
     at an institution of higher education unless such individual 
     is maintaining satisfactory academic progress in, and 
     devoting full-time study or research to, the pursuit of the 
     degree for which the fellowship support was provided; or
       ``(ii) if the individual is engaged in gainful employment, 
     other than part-time employment related to teaching, 
     research, or a similar activity determined by the institution 
     to be consistent with and supportive of the individuals's 
     progress toward the degree for which the fellowship support 
     was provided.
       ``(2) Amount of fellowship awards.--
       ``(A) In general.--An eligible institution that receives a 
     grant under this section shall award stipends to individuals 
     who are provided graduate fellowships under this section.
       ``(B) Awards based on need.--A stipend provided under this 
     section shall be in an amount equal to the level of support 
     provided by the National Science Foundation graduate 
     fellowships, except that such stipend shall be adjusted as 
     necessary so as not to exceed the fellowship recipient's 
     demonstrated need, as determined by the institution of higher 
     education where the fellowship recipient is enrolled.
       ``(3) Service requirement.--
       ``(A) Teaching required.--Each individual who receives a 
     graduate fellowship under this section and earns a doctoral 
     degree shall teach for one year at an institution of higher 
     education that has a teacher preparation program for each 
     year of fellowship support received under this section.
       ``(B) Institutional obligation.--Each eligible institution 
     that receives a grant under this section shall provide an 
     assurance to the Secretary that the institution has inquired 
     of and determined the decision of each individual who has 
     received a graduate fellowship to, within three years of 
     receiving a doctoral degree, begin employment at an 
     institution of higher education that has a teacher 
     preparation program, as required by this section.
       ``(C) Agreement required.--Prior to receiving an initial 
     graduate fellowship award, and upon the annual renewal of the 
     graduate fellowship award, an individual selected to receive 
     a graduate fellowship under this section shall sign an 
     agreement with the Secretary agreeing to pursue a career in 
     instruction at an institution of higher education that has a 
     teacher preparation program in accordance with subparagraph 
     (A).
       ``(D) Failure to comply.--If an individual who receives a 
     graduate fellowship award under this section fails to comply 
     with the agreement signed pursuant to subparagraph (C), the 
     sum of the amounts of any graduate fellowship award received 
     by such recipient shall, upon a determination of such a 
     failure, be treated as a Federal Direct Unsubsidized Stafford 
     Loan under part D of title IV, and shall be subject to 
     repayment, together with interest thereon accruing from the 
     date of the fellowship award, in accordance with terms and 
     conditions specified by the Secretary in regulations under 
     this subpart.
       ``(E) Modified service requirement.--The Secretary may 
     waive or modify the service requirement of this paragraph in 
     accordance with regulations promulgated by the Secretary with 
     respect to the criteria to determine the circumstances under 
     which compliance with such service requirement is inequitable 
     or represents a substantial hardship. The Secretary may waive 
     the service requirement if compliance by the fellowship 
     recipient is determined to be inequitable or represent a 
     substantial hardship--
       ``(i) because the individual is permanently and totally 
     disabled at the time of the waiver request; or
       ``(ii) based on documentation presented to the Secretary of 
     substantial economic or personal hardship.

[[Page 17117]]

       ``(f) Institutional Support for Fellows.--An eligible 
     institution that receives a grant under this section may 
     reserve not more than ten percent of the grant amount for 
     academic and career transition support for graduate 
     fellowship recipients and for meeting the institutional 
     obligation described in subsection (e)(3)(B).
       ``(g) Restriction on Use of Funds.--An eligible institution 
     that receives a grant under this section may not use grant 
     funds for general operational overhead of the institution.

                      ``PART C--GENERAL PROVISIONS

     ``SEC. 261. LIMITATIONS.

       ``(a) Federal Control Prohibited.--Nothing in this title 
     shall be construed to permit, allow, encourage, or authorize 
     any Federal control over any aspect of any private, 
     religious, or home school, whether or not a home school is 
     treated as a private school or home school under State law. 
     This section shall not be construed to prohibit private, 
     religious, or home schools from participation in programs or 
     services under this title.
       ``(b) No Change in State Control Encouraged or Required.--
     Nothing in this title shall be construed to encourage or 
     require any change in a State's treatment of any private, 
     religious, or home school, whether or not a home school is 
     treated as a private school or home school under State law.
       ``(c) National System of Teacher Certification or Licensure 
     Prohibited.--Nothing in this title shall be construed to 
     permit, allow, encourage, or authorize the Secretary to 
     establish or support any national system of teacher 
     certification or licensure.
       ``(d) Rule of Construction.--Nothing in this title shall be 
     construed to alter or otherwise affect the rights, remedies, 
     and procedures afforded to the employees of local educational 
     agencies under Federal, State, or local laws (including 
     applicable regulations or court orders) or under the terms of 
     collective bargaining agreements, memoranda of understanding, 
     or other agreements between such employees and their 
     employers.''.
                      TITLE III--INSTITUTIONAL AID

     SEC. 301. PROGRAM PURPOSE.

       Section 311 (20 U.S.C. 1057) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``351'' and inserting 
     ``391''; and
       (B) in paragraph (3)(F), by inserting ``, including 
     services that will assist in the education of special 
     populations'' before the period; and
       (2) in subsection (c)--
       (A) in paragraph (6), by inserting ``, including 
     innovative, customized, instruction courses designed to help 
     retain students and move the students rapidly into core 
     courses and through program completion, which may include 
     remedial education and English language instruction'' before 
     the period;
       (B) by redesignating paragraphs (7) through (12) as 
     paragraphs (8) through (13), respectively;
       (C) by inserting after paragraph (6) the following:
       ``(7) Education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' families.'';
       (D) in paragraph (12) (as redesignated by subparagraph 
     (B)), by striking ``distance learning academic instruction 
     capabilities'' and inserting ``distance education 
     technologies''; and
       (E) in the matter preceding subparagraph (A) of paragraph 
     (13) (as redesignated by subparagraph (B)), by striking 
     ``subsection (c)'' and inserting ``subsection (b) and section 
     391''.

     SEC. 302. DEFINITIONS; ELIGIBILITY.

       Section 312 (20 U.S.C. 1058) is amended--
       (1) in subsection (b)(1)(A), by striking ``subsection (c) 
     of this section'' and inserting ``subsection (d)'';
       (2) in subsection (d)(2), by striking ``subdivision'' and 
     inserting ``paragraph'';
       (3) by redesignating subsection (g) as subsection (h); and
       (4) by inserting after subsection (f) the following:
       ``(g) Low-Income Individual.--For the purpose of this part, 
     the term `low-income individual' means an individual from a 
     family whose taxable income for the preceding year did not 
     exceed 150 percent of an amount equal to the poverty level 
     determined by using criteria of poverty established by the 
     Bureau of the Census.''.

     SEC. 303. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
                   UNIVERSITIES.

       Section 316 (20 U.S.C. 1059c) is amended--
       (1) by striking subsection (b)(3) and inserting the 
     following:
       ``(3) Tribal college or university.--The term `Tribal 
     College or University' means an institution that--
       ``(A) qualifies for funding under the Tribally Controlled 
     Colleges and Universities Assistance Act of 1978 (25 U.S.C. 
     1801 et seq.) or the Navajo Community College Assistance Act 
     of 1978 (25 U.S.C. 640a note); or
       ``(B) is cited in section 532 of the Equity in Educational 
     Land-Grant Status Act of 1994 (7 U.S.C. 301 note).'';
       (2) in subsection (c)(2)--
       (A) by striking subparagraph (B) and inserting the 
     following:
       ``(B) construction, maintenance, renovation, and 
     improvement in classrooms, libraries, laboratories, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services, and the 
     acquisition of real property adjacent to the campus of the 
     institution on which to construct such facilities;'';
       (B) in subparagraph (C), by inserting before the semicolon 
     at the end the following: ``or in tribal governance or tribal 
     public policy'';
       (C) in subparagraph (D), by inserting before the semicolon 
     the following: ``and instruction in tribal governance or 
     tribal public policy'';
       (D) by redesignating subparagraphs (G), (H), (I), (J), (K), 
     and (L) as subparagraphs (H), (I), (J), (K), (L), and (N), 
     respectively;
       (E) by inserting after subparagraph (F) the following:
       ``(G) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' families;'';
       (F) in subparagraph (L) (as redesignated by subparagraph 
     (D)), by striking ``and'' after the semicolon;
       (G) by inserting after subparagraph (L) (as redesignated by 
     subparagraph (D) and amended by subparagraph (F)) the 
     following:
       ``(M) developing or improving facilities for Internet use 
     or other distance education technologies; and''; and
       (H) in subparagraph (N) (as redesignated by subparagraph 
     (D)), by striking ``subparagraphs (A) through (K)'' and 
     inserting ``subparagraphs (A) through (M)''; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Application, Plan, and Allocation.--
       ``(1) Institutional eligibility.--To be eligible to receive 
     assistance under this section, a Tribal College or University 
     shall be an eligible institution under section 312(b).
       ``(2) Application.--
       ``(A) In general.--A Tribal College or University desiring 
     to receive assistance under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(B) Streamlined process.--The Secretary shall establish 
     application requirements in such a manner as to simplify and 
     streamline the process for applying for grants under this 
     section.
       ``(3) Awards and allocations to institutions.--
       ``(A) Construction grants.--
       ``(i) In general.--Of the amount appropriated to carry out 
     this section for any fiscal year, the Secretary may reserve 
     30 percent for the purpose of awarding one-year grants of not 
     less than $1,000,000 to address construction, maintenance, 
     and renovation needs at eligible institutions.
       ``(ii) Preference.--In providing grants under clause (i) 
     for any fiscal year, the Secretary shall give preference to 
     eligible institutions that have not received an award under 
     this section for a previous fiscal year.
       ``(B) Allotment of remaining funds.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary shall distribute the remaining funds appropriated 
     for any fiscal year to each eligible institution as follows:

       ``(I) 60 percent of the remaining appropriated funds shall 
     be distributed among the eligible Tribal Colleges and 
     Universities on a pro rata basis, based on the respective 
     Indian student counts (as defined in section 2(a) of the 
     Tribally Controlled Colleges and Universities Assistance Act 
     of 1978 (25 U.S.C. 1801(a)) of the Tribal Colleges and 
     Universities.
       ``(II) The remaining 40 percent shall be distributed in 
     equal shares to the eligible Tribal Colleges and 
     Universities.

       ``(ii) Minimum grant.--The amount distributed to a Tribal 
     College or University under clause (i) shall not be less than 
     $500,000.
       ``(4) Special rules.--
       ``(A) Concurrent funding.--No Tribal College or University 
     that receives funds under this section shall concurrently 
     receive funds under any other provision of this part, part B, 
     or part A of title V.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.''.

     SEC. 304. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING 
                   INSTITUTIONS.

       Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is amended--
       (1) in subparagraph (G), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (H), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(I) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' families.''.

     SEC. 305. PREDOMINANTLY BLACK INSTITUTIONS.

       (a) In General.--Part A of title III (20 U.S.C. 1057 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 318. PREDOMINANTLY BLACK INSTITUTIONS.

       ``(a) Purpose.--It is the purpose of this section to assist 
     Predominantly Black Institutions in expanding educational 
     opportunity through a program of Federal assistance.
       ``(b) Definitions.--In this section:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education that--
       ``(A) has an enrollment of needy undergraduate students;
       ``(B) has an average educational and general expenditure 
     that is low, per full-time equivalent undergraduate student, 
     in comparison with the average educational and general 
     expenditure per full-time equivalent undergraduate student of 
     institutions that offer similar instruction, except that the 
     Secretary may apply the waiver requirements described in 
     section 392(b) to this subparagraph in the same manner as the 
     Secretary applies the waiver requirements to section 
     312(b)(1)(B);
       ``(C) has an enrollment of undergraduate students that is 
     not less than 40 percent Black American students;

[[Page 17118]]

       ``(D) is legally authorized to provide, and provides, 
     within the State an educational program for which the 
     institution of higher education awards a baccalaureate degree 
     or, in the case of a junior or community college, an 
     associate's degree;
       ``(E) is accredited by a nationally recognized accrediting 
     agency or association determined by the Secretary to be a 
     reliable authority as to the quality of training offered or 
     is, according to such an agency or association, making 
     reasonable progress toward accreditation; and
       ``(F) is not receiving assistance under part B or part A of 
     title V.
       ``(2) Enrollment of needy students.--The term `enrollment 
     of needy students' means the enrollment at an eligible 
     institution with respect to which not less than 50 percent of 
     the undergraduate students enrolled in an academic program 
     leading to a degree--
       ``(A) in the second fiscal year preceding the fiscal year 
     for which the determination is made, were Federal Pell Grant 
     recipients for such year;
       ``(B) come from families that receive benefits under a 
     means-tested Federal benefit program;
       ``(C) attended a public or nonprofit private secondary 
     school that--
       ``(i) is in the school district of a local educational 
     agency that was eligible for assistance under part A of title 
     I of the Elementary and Secondary Education Act of 1965 for 
     any year during which the student attended such secondary 
     school; and
       ``(ii) for the purpose of this paragraph and for such year 
     of attendance, was determined by the Secretary (pursuant to 
     regulations and after consultation with the State educational 
     agency of the State in which the school is located) to be a 
     school in which the enrollment of children meeting a measure 
     of poverty under section 1113(a)(5) of such Act exceeds 30 
     percent of the total enrollment of such school; or
       ``(D) are first-generation college students and a majority 
     of such first-generation college students are low-income 
     individuals.
       ``(3) First-generation college student.--The term `first-
     generation college student' has the meaning given the term in 
     section 402A(h).
       ``(4) Low-income individual.--The term `low-income 
     individual' has the meaning given such term in section 
     402A(h).
       ``(5) Means-tested federal benefit program.--The term 
     `means-tested Federal benefit program' means a program of the 
     Federal Government, other than a program under title IV, in 
     which eligibility for the program's benefits, or the amount 
     of such benefits, are determined on the basis of income or 
     resources of the individual or family seeking the benefit.
       ``(6) Predominantly black institution.--The term 
     `Predominantly Black Institution' means an institution of 
     higher education, as defined in section 101(a)--
       ``(A) that is an eligible institution with not less than 
     1,000 undergraduate students;
       ``(B) at which not less than 50 percent of the 
     undergraduate students enrolled at the eligible institution 
     are low-income individuals or first-generation college 
     students; and
       ``(C) at which not less than 50 percent of the 
     undergraduate students are enrolled in an educational program 
     leading to a bachelor's or associate's degree that the 
     eligible institution is licensed to award by the State in 
     which the eligible institution is located.
       ``(7) State.--The term `State' means each of the 50 States 
     and the District of Columbia.
       ``(c) Grant Authority.--
       ``(1) In general.--The Secretary is authorized to award 
     grants, from allotments under subsection (e), to 
     Predominantly Black Institutions to enable the Predominantly 
     Black Institutions to carry out the authorized activities 
     described in subsection (d).
       ``(2) Priority.--In awarding grants under this section the 
     Secretary shall give priority to Predominantly Black 
     Institutions with large numbers or percentages of students 
     described in subsections (b)(1)(A) or (b)(1)(C). The level of 
     priority given to Predominantly Black Institutions with large 
     numbers or percentages of students described in subsection 
     (b)(1)(A) shall be twice the level of priority given to 
     Predominantly Black Institutions with large numbers or 
     percentages of students described in subsection (b)(1)(C).
       ``(d) Authorized Activities.--
       ``(1) Required activities.--Grant funds provided under this 
     section shall be used--
       ``(A) to assist the Predominantly Black Institution to 
     plan, develop, undertake, and implement programs to enhance 
     the institution's capacity to serve more low- and middle-
     income Black American students;
       ``(B) to expand higher education opportunities for students 
     eligible to participate in programs under title IV by 
     encouraging college preparation and student persistence in 
     secondary school and postsecondary education; and
       ``(C) to strengthen the financial ability of the 
     Predominantly Black Institution to serve the academic needs 
     of the students described in subparagraphs (A) and (B).
       ``(2) Additional activities.--Grant funds provided under 
     this section shall be used for one or more of the following 
     activities:
       ``(A) The activities described in paragraphs (1) through 
     (12) of section 311(c).
       ``(B) Academic instruction in disciplines in which Black 
     Americans are underrepresented.
       ``(C) Establishing or enhancing a program of teacher 
     education designed to qualify students to teach in a public 
     elementary school or secondary school in the State that shall 
     include, as part of such program, preparation for teacher 
     certification or licensure.
       ``(D) Establishing community outreach programs that will 
     encourage elementary school and secondary school students to 
     develop the academic skills and the interest to pursue 
     postsecondary education.
       ``(E) Other activities proposed in the application 
     submitted pursuant to subsection (f) that--
       ``(i) contribute to carrying out the purpose of this 
     section; and
       ``(ii) are approved by the Secretary as part of the review 
     and approval of an application submitted under subsection 
     (f).
       ``(3) Endowment fund.--
       ``(A) In general.--A Predominantly Black Institution may 
     use not more than 20 percent of the grant funds provided 
     under this section to establish or increase an endowment fund 
     at the institution.
       ``(B) Matching requirement.--In order to be eligible to use 
     grant funds in accordance with subparagraph (A), a 
     Predominantly Black Institution shall provide matching funds 
     from non-Federal sources, in an amount equal to or greater 
     than the Federal funds used in accordance with subparagraph 
     (A), for the establishment or increase of the endowment fund.
       ``(C) Comparability.--The provisions of part C, regarding 
     the establishment or increase of an endowment fund, that the 
     Secretary determines are not inconsistent with this 
     subsection, shall apply to funds used under subparagraph (A).
       ``(4) Limitation.--Not more than 50 percent of the grant 
     funds provided to a Predominantly Black Institution under 
     this section may be available for the purpose of constructing 
     or maintaining a classroom, library, laboratory, or other 
     instructional facility.
       ``(e) Allotments to Predominantly Black Institutions.--
       ``(1) Federal pell grant basis.--From the amounts 
     appropriated to carry out this section for any fiscal year, 
     the Secretary shall allot to each Predominantly Black 
     Institution having an application approved under subsection 
     (f) a sum that bears the same ratio to one-half of that 
     amount as the number of Federal Pell Grant recipients in 
     attendance at such institution at the end of the academic 
     year preceding the beginning of that fiscal year, bears to 
     the total number of Federal Pell Grant recipients at all such 
     institutions at the end of such academic year.
       ``(2) Graduates basis.--From the amounts appropriated to 
     carry out this section for any fiscal year, the Secretary 
     shall allot to each Predominantly Black Institution having an 
     application approved under subsection (f) a sum that bears 
     the same ratio to one-fourth of that amount as the number of 
     graduates for such academic year at such institution, bears 
     to the total number of graduates for such academic year at 
     all such institutions.
       ``(3) Graduates seeking a higher degree basis.--From the 
     amounts appropriated to carry out this section for any fiscal 
     year, the Secretary shall allot to each Predominantly Black 
     Institution having an application approved under subsection 
     (f) a sum that bears the same ratio to one-fourth of that 
     amount as the percentage of graduates from such institution 
     who are admitted to and in attendance at, not later than two 
     years after graduation with an associate's degree or a 
     baccalaureate degree, a baccalaureate degree-granting 
     institution or a graduate or professional school in a degree 
     program in disciplines in which Black American students are 
     underrepresented, bears to the percentage of such graduates 
     for all such institutions.
       ``(4) Minimum allotment.--
       ``(A) In general.--Notwithstanding paragraphs (1), (2), and 
     (3), the amount allotted to each Predominantly Black 
     Institution under this section may not be less than $250,000.
       ``(B) Insufficient amount.--If the amounts appropriated to 
     carry out this section for a fiscal year are not sufficient 
     to pay the minimum allotment provided under subparagraph (A) 
     for the fiscal year, then the amount of such minimum 
     allotment shall be ratably reduced. If additional sums become 
     available for such fiscal year, such reduced allotment shall 
     be increased on the same basis as the allotment was reduced 
     until the amount allotted equals the minimum allotment 
     required under subparagraph (A).
       ``(5) Reallotment.--The amount of a Predominantly Black 
     Institution's allotment under paragraph (1), (2), (3), or (4) 
     for any fiscal year that the Secretary determines will not be 
     needed for such institution for the period for which such 
     allotment is available, shall be available for reallotment to 
     other Predominantly Black Institutions in proportion to the 
     original allotments to such other institutions under this 
     section for such fiscal year. The Secretary shall reallot 
     such amounts from time to time, on such date and during such 
     period as the Secretary determines appropriate.
       ``(f) Applications.--Each Predominantly Black Institution 
     desiring a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require.
       ``(g) Application Review Process.--Section 393 shall not 
     apply to applications under this section.
       ``(h) Duration and Carryover.--Any grant funds paid to a 
     Predominantly Black Institution under this section that are 
     not expended or used for the purposes for which the funds 
     were paid within ten years following the date on which the 
     grant was awarded, shall be repaid to the Treasury.
       ``(i) Special Rule on Eligibility.--No Predominantly Black 
     Institution that receives funds under this section shall 
     concurrently receive funds under any other provision of this 
     part, part B, or part A of title V.''.

[[Page 17119]]

       (b) Conforming Amendment.--Section 312(d) (20 U.S.C. 
     1058(d)) is amended by striking ``For the purpose'' and 
     inserting ``Except as provided in section 318(b), for the 
     purpose''.

     SEC. 306. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

       Part A of title III (20 U.S.C. 1057 et seq.) is amended by 
     adding after section 318 (as added by section 305 of this 
     Act) the following:

     ``SEC. 319. NATIVE AMERICAN-SERVING, NONTRIBAL INSTITUTIONS.

       ``(a) Program Authorized.--The Secretary shall provide 
     grants and related assistance to Native American-serving, 
     nontribal institutions to enable such institutions to improve 
     and expand their capacity to serve Native Americans and low-
     income individuals.
       ``(b) Definitions.--In this section:
       ``(1) Native american.--The term `Native American' means an 
     individual who is of a tribe, people, or culture that is 
     indigenous to the United States.
       ``(2) Native american-serving, nontribal institution.--The 
     term `Native American-serving, nontribal institution' means 
     an institution of higher education, as defined in section 
     101(a), that, at the time of application--
       ``(A) is an eligible institution under section 312(b);
       ``(B) has an enrollment of undergraduate students that is 
     not less than 10 percent Native American students; and
       ``(C) is not a Tribal College or University (as defined in 
     section 316).
       ``(c) Authorized Activities.--
       ``(1) Types of activities authorized.--Grants awarded under 
     this section shall be used by Native American-serving, 
     nontribal institutions to assist such institutions to plan, 
     develop, undertake, and carry out activities to improve and 
     expand such institutions' capacity to serve Native Americans 
     and low-income individuals.
       ``(2) Examples of authorized activities.--Such programs may 
     include--
       ``(A) the purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(B) renovation and improvement in classroom, library, 
     laboratory, and other instructional facilities;
       ``(C) support of faculty exchanges, and faculty development 
     and faculty fellowships to assist faculty in attaining 
     advanced degrees in the faculty's field of instruction;
       ``(D) curriculum development and academic instruction;
       ``(E) the purchase of library books, periodicals, 
     microfilm, and other educational materials;
       ``(F) funds and administrative management, and acquisition 
     of equipment for use in strengthening funds management;
       ``(G) the joint use of facilities such as laboratories and 
     libraries;
       ``(H) academic tutoring and counseling programs and student 
     support services; and
       ``(I) education or counseling services designed to improve 
     the financial and economic literacy of students or the 
     students' families.
       ``(d) Application Process.--
       ``(1) Institutional eligibility.--A Native American-
     serving, nontribal institution desiring to receive assistance 
     under this section shall submit to the Secretary such 
     enrollment data as may be necessary to demonstrate that the 
     institution is a Native American-serving, nontribal 
     institution, along with such other information and data as 
     the Secretary may reasonably require.
       ``(2) Applications.--
       ``(A) Authority to submit applications.--Any institution 
     that is determined by the Secretary to be a Native American-
     serving, nontribal institution may submit an application for 
     assistance under this section to the Secretary.
       ``(B) Simplified and streamlined format.--The Secretary 
     shall, to the extent possible, continue to prescribe a 
     simplified and streamlined format for applications under this 
     section that takes into account the limited number of 
     institutions that are eligible for assistance under this 
     section.
       ``(C) Content.--An application submitted under subparagraph 
     (A) shall include--
       ``(i) a five-year plan for improving the assistance 
     provided by the Native American-serving, nontribal 
     institution to Native Americans and low-income individuals; 
     and
       ``(ii) such other information and assurances as the 
     Secretary may reasonably require.
       ``(3) Special rules.--
       ``(A) Eligibility.--No Native American-serving, nontribal 
     institution that receives funds under this section shall 
     concurrently receive funds under any other provision of this 
     part, part B, or part A of title V.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.
       ``(C) Distribution.--In awarding grants under this section, 
     the Secretary shall, to the extent possible and consistent 
     with the competitive process under which such grants are 
     awarded, ensure maximum and equitable distribution among all 
     eligible institutions.
       ``(D) Minimum grant amount.--The minimum amount of a grant 
     under this section shall be $200,000.''.

     SEC. 307. ASSISTANCE TO ASIAN AMERICAN AND NATIVE AMERICAN 
                   PACIFIC ISLANDER-SERVING INSTITUTIONS.

       Part A of title III (20 U.S.C. 1057 et seq.) is amended by 
     adding after section 319 (as added by section 306 of this 
     Act) the following:

     ``SEC. 320. ASIAN AMERICAN AND NATIVE AMERICAN PACIFIC 
                   ISLANDER-SERVING INSTITUTIONS.

       ``(a) Program Authorized.--The Secretary shall provide 
     grants and related assistance to Asian American and Native 
     American Pacific Islander-serving institutions to enable such 
     institutions to improve and expand their capacity to serve 
     Asian Americans and Native American Pacific Islanders and 
     low-income individuals.
       ``(b) Definitions.--In this section:
       ``(1) Asian american.--The term `Asian American' has the 
     meaning given the term `Asian' in the Office of Management 
     and Budget's Standards for Maintaining, Collecting, and 
     Presenting Federal Data on Race and Ethnicity as published on 
     October 30, 1997 (62 Fed. Reg. 58789).
       ``(2) Asian american and native american pacific islander-
     serving institution.--The term `Asian American and Native 
     American Pacific Islander-serving institution' means an 
     institution of higher education that--
       ``(A) is an eligible institution under section 312(b); and
       ``(B) at the time of application, has an enrollment of 
     undergraduate students that is not less than 10 percent 
     students who are Asian American or Native American Pacific 
     Islander.
       ``(3) Native american pacific islander.--The term `Native 
     American Pacific Islander' means any descendant of the 
     aboriginal people of any island in the Pacific Ocean that is 
     a territory or possession of the United States.
       ``(c) Authorized Activities.--
       ``(1) Types of activities authorized.--Grants awarded under 
     this section shall be used by Asian American and Native 
     American Pacific Islander-serving institutions to assist such 
     institutions to plan, develop, undertake, and carry out 
     activities to improve and expand such institutions' capacity 
     to serve Asian Americans and Native American Pacific 
     Islanders and low-income individuals.
       ``(2) Examples of authorized activities.--Such programs may 
     include--
       ``(A) purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(B) renovation and improvement in classroom, library, 
     laboratory, and other instructional facilities;
       ``(C) support of faculty exchanges, and faculty development 
     and faculty fellowships to assist in attaining advanced 
     degrees in the faculty's field of instruction;
       ``(D) curriculum development and academic instruction;
       ``(E) purchase of library books, periodicals, microfilm, 
     and other educational materials;
       ``(F) funds and administrative management, and acquisition 
     of equipment for use in strengthening funds management;
       ``(G) joint use of facilities such as laboratories and 
     libraries;
       ``(H) academic tutoring and counseling programs and student 
     support services;
       ``(I) establishing community outreach programs that will 
     encourage elementary school and secondary school students to 
     develop the academic skills and the interest to pursue 
     postsecondary education;
       ``(J) establishing or improving an endowment fund;
       ``(K) academic instruction in disciplines in which Asian 
     Americans and Native American Pacific Islanders are 
     underrepresented;
       ``(L) conducting research and data collection for Asian 
     American and Native American Pacific Islander populations and 
     subpopulations;
       ``(M) establishing partnerships with community-based 
     organizations serving Asian Americans and Native American 
     Pacific Islanders; and
       ``(N) education or counseling services designed to improve 
     the financial and economic literacy of students or the 
     students' families.
       ``(d) Application Process.--
       ``(1) Institutional eligibility.--Each Asian American and 
     Native American Pacific Islander-serving institution desiring 
     to receive assistance under this section shall submit to the 
     Secretary such enrollment data as may be necessary to 
     demonstrate that the institution is an Asian American and 
     Native American Pacific Islander-serving institution as 
     defined in subsection (b), along with such other information 
     and data as the Secretary may reasonably require.
       ``(2) Applications.--Any institution that is determined by 
     the Secretary to be an Asian American and Native American 
     Pacific Islander-serving institution may submit an 
     application for assistance under this section to the 
     Secretary. Such application shall include--
       ``(A) a five-year plan for improving the assistance 
     provided by the Asian American and Native American Pacific 
     Islander-serving institution to Asian American and Native 
     American Pacific Islander students and low-income 
     individuals; and
       ``(B) such other information and assurances as the 
     Secretary may reasonably require.
       ``(3) Special rules.--
       ``(A) Eligibility.--No Asian American and Native American 
     Pacific Islander-serving institution that receives funds 
     under this section shall concurrently receive funds under any 
     other provision of this part, part B, or title V.
       ``(B) Exemption.--Section 313(d) shall not apply to 
     institutions that are eligible to receive funds under this 
     section.
       ``(C) Distribution.--In awarding grants under this section, 
     the Secretary shall--
       ``(i) to the extent possible and consistent with the 
     competitive process under which such grants are awarded, 
     ensure maximum and equitable distribution among all eligible 
     institutions; and
       ``(ii) give priority consideration to institutions for 
     which not less than 10 percent of such institution's Asian 
     American and Native American

[[Page 17120]]

     Pacific Islander students are low-income individuals.''.

     SEC. 308. PART B DEFINITIONS.

       Section 322(4) (20 U.S.C. 1061(4)) is amended by inserting 
     ``, in consultation with the Commissioner for Education 
     Statistics'' before ``and the Commissioner''.

     SEC. 309. GRANTS TO INSTITUTIONS.

       Section 323(a) (20 U.S.C. 1062(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``360(a)(2)'' and inserting ``399(a)(2)'';
       (2) by redesignating paragraph (12) as paragraphs (15); and
       (3) by inserting after paragraph (11) the following:
       ``(12) Acquisition of real property in connection with the 
     construction, renovation, or addition to or improvement of 
     campus facilities.
       ``(13) Education or financial information designed to 
     improve the financial literacy and economic literacy of 
     students or the students' families, especially with regard to 
     student indebtedness and student assistance programs under 
     title IV.
       ``(14) Services necessary for the implementation of 
     projects or activities that are described in the grant 
     application and that are approved, in advance, by the 
     Secretary, except that not more than two percent of the grant 
     amount may be used for this purpose.''.

     SEC. 310. ALLOTMENTS.

       (a) Minimum Allotment.--Subsection (d) of section 324 (20 
     U.S.C. 1063(d)) is amended to read as follows:
       ``(d) Minimum Allotment.--Notwithstanding subsections (a) 
     through (c), and subject to subsection (h), if the amount of 
     an award under this section for a part B institution, based 
     on the data provided by the part B institution and the 
     formula under subsections (a) through (c), would be--
       ``(1) an amount that is greater than $250,000 but less than 
     $500,000, the Secretary shall award the part B institution an 
     allotment in the amount of $500,000; and
       ``(2) an amount that is equal to or less than $250,000, the 
     Secretary shall award the part B institution an allotment in 
     the amount of $250,000.''.
       (b) Conditions for Allotments.--Section 324 (20 U.S.C. 
     1063) is further amended by adding at the end the following 
     new subsection:
       ``(h) Conditions for Allotments.--
       ``(1) Student requirements for allotment.--Notwithstanding 
     any other provision of this section, a part B institution 
     that would otherwise be eligible for funds under this part 
     shall not receive an allotment under this part for a fiscal 
     year, including the minimum allotment under subsection (d), 
     if the part B institution, in the academic year preceding 
     such fiscal year--
       ``(A) did not have any enrolled students who were Pell 
     Grant recipients;
       ``(B) did not graduate any students; or
       ``(C) where appropriate, did not have any students who, 
     within 5 years of graduation from the part B institution, 
     were admitted to and in attendance at a graduate or 
     professional school in a degree program in disciplines in 
     which Blacks are underrepresented.
       ``(2) Data requirements for allotments.--Notwithstanding 
     any other provision of this section, a part B institution 
     shall not receive an allotment under this part for a fiscal 
     year, including the minimum allotment under subsection (d), 
     unless the institution provides the Secretary with the data 
     required by the Secretary and for purposes of the formula 
     described in subsections (a) through (c), including--
       ``(A) the number of Pell Grant recipients enrolled in the 
     part B institution in the academic year preceding such fiscal 
     year;
       ``(B) the number of students who earned an associate or 
     baccalaureate degree from the part B institution in the 
     academic year preceding such fiscal year; and
       ``(C) where appropriate, the percentage of students who, 
     within 5 years of graduation from the part B institution, 
     were admitted to and in attendance at a graduate or 
     professional school in a degree program in disciplines in 
     which Blacks are underrepresented in the academic year 
     preceding such fiscal year.''.

     SEC. 311. PROFESSIONAL OR GRADUATE INSTITUTIONS.

       (a) Duration of Grant.--Section 326(b) (20 U.S.C. 1063b(b)) 
     is amended by adding at the end the following: ``Any funds 
     awarded for such five-year grant period that are obligated 
     during such five-year period may be expended during the 10-
     year period beginning on the first day of such five-year 
     period.''.
       (b) Authorized Activities.--Section 326(c) (20 U.S.C. 
     1063b(c)) is amended--
       (1) in paragraph (5), by striking ``establish or improve'' 
     and inserting ``establishing or improving'';
       (2) in paragraph (6)--
       (A) by striking ``assist'' and inserting ``assisting''; and
       (B) by striking ``and'' after the semicolon;
       (3) by striking the period at the end of paragraph (7) and 
     inserting a semicolon; and
       (4) by adding at the end the following:
       ``(8) acquisition of real property that is adjacent to the 
     campus in connection with the construction, renovation, or 
     addition to or improvement of campus facilities;
       ``(9) education or financial information designed to 
     improve the financial literacy and economic literacy of 
     students or the students' families, especially with regard to 
     student indebtedness and student assistance programs under 
     title IV;
       ``(10) services necessary for the implementation of 
     projects or activities that are described in the grant 
     application and that are approved, in advance, by the 
     Secretary, except that not more than two percent of the grant 
     amount may be used for this purpose;
       ``(11) tutoring, counseling, and student service programs 
     designed to improve academic success; and
       ``(12) other activities proposed in the application 
     submitted under subsection (d) that--
       ``(A) contribute to carrying out the purposes of this part; 
     and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.''.
       (c) Eligibility.--
       (1) In general.--Section 326(e)(1) (20 U.S.C. 1063b(e)(1)) 
     is amended--
       (A) in the matter preceding subparagraph (A), by inserting 
     a colon after ``the following'';
       (B) in subparagraph (Q), by striking ``and'' at the end;
       (C) in subparagraph (R), by striking the period at the end 
     and inserting a semicolon; and
       (D) by adding at the end the following:
       ``(S) Alabama State University qualified graduate programs;
       ``(T) Prairie View A&M University qualified graduate 
     programs;
       ``(U) Delaware State University qualified graduate 
     programs;
       ``(V) Langston University qualified graduate programs;
       ``(W) Bowie State University qualified graduate programs; 
     and
       ``(X) University of the District of Columbia David A. 
     Clarke School of Law.''.
       (2) Conforming amendment.--Section 326(e)(3) (20 U.S.C. 
     1063b(e)(3)) is amended--
       (A) by striking ``1998'' and inserting ``2008''; and
       (B) by striking ``(Q) and (R)'' and inserting ``(S) through 
     (X)''.
       (3) Additional eligibility changes.--Section 326(e)(2)(A) 
     (20 U.S.C. 1063b(e)(2)(A)) is amended--
       (A) by inserting ``in law or'' after ``instruction''; and
       (B) by striking ``mathematics, or'' and inserting 
     ``mathematics, psychometrics, or''.
       (4) One grant per institution.--Section 326(e)(4) (20 
     U.S.C. 1063b(e)(4)) is amended by striking ``or university 
     system''.
       (d) Funding Rule.--Section 326(f) (20 U.S.C. 1063b(f)) is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``$26,600,000'' and inserting 
     ``$56,900,000''; and
       (B) by striking ``(P)'' and inserting ``(R)'';
       (2) in paragraph (2)--
       (A) by striking ``$26,600,000, but not in excess of 
     $28,600,000'' and inserting ``$56,900,000, but not in excess 
     of $62,900,000''; and
       (B) by striking ``subparagraphs (Q) and (R)'' and inserting 
     ``subparagraphs (S) through (X)''; and
       (3) in the matter preceding subparagraph (A) of paragraph 
     (3)--
       (A) by striking ``$28,600,000'' and inserting 
     ``$62,900,000''; and
       (B) by striking ``(R)'' and inserting ``(X)''.
       (e) Hold Harmless Rule.--Section 326(g) (20 U.S.C. 1063(g)) 
     is amended by striking ``1998'' each place it appears and 
     inserting ``2008''.
       (f) Interaction With Other Grant Programs.--Section 326 (as 
     amended by this section) (20 U.S.C. 1063) is further amended 
     by adding at the end the following:
       ``(h) Interaction With Other Grant Programs.--No 
     institution that is eligible for and receives an award under 
     section 512, 723, or 724 for a fiscal year shall be eligible 
     to apply for a grant, or receive grant funds, under this 
     section for the same fiscal year.''.

     SEC. 312. UNEXPENDED FUNDS.

       Section 327(b) (20 U.S.C. 1063c(b)) is amended to read as 
     follows:
       ``(b) Use of Unexpended Funds.--Any funds paid to an 
     institution and not expended or used for the purposes for 
     which the funds were paid during the five-year period 
     following the date of the initial grant award, may be carried 
     over and expended during the succeeding five-year period, if 
     such funds were obligated for a purpose for which the funds 
     were paid during the five-year period following the date of 
     the initial grant award.''.

     SEC. 313. ENDOWMENT CHALLENGE GRANTS.

       (a) Amounts.--Section 331(b) (20 U.S.C. 1065(b)) is 
     amended--
       (1) in paragraph (2)(B)(i), by striking ``$500,000'' and 
     inserting ``$1,000,000''; and
       (2) in paragraph (5), by striking ``$50,000'' and inserting 
     ``$100,000''.
       (b) Technical Assistance.--Section 331 (20 U.S.C. 1065) is 
     further amended by adding at the end the following:
       ``(i) Technical Assistance.--The Secretary, directly or by 
     grant or contract, may provide technical assistance to 
     eligible institutions to prepare the institutions to qualify, 
     apply for, and maintain a grant, under this section.''.

     SEC. 314. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL 
                   FINANCING.

       (a) Definitions.--Section 342 (20 U.S.C. 1066a) is 
     amended--
       (1) in paragraph (5)(G), by striking ``by a nationally 
     recognized accrediting agency or association'' and inserting 
     ``by an accrediting agency or association recognized by the 
     Secretary under subpart 2 of part H of title IV''; and
       (2) in paragraph (8), by inserting ``capital project'' 
     after ``issuing taxable''.
       (b) Federal Insurance for Bonds.--Section 343(b) (20 U.S.C. 
     1066b(b)) is amended--
       (1) in paragraph (8)(B)(ii)--
       (A) by striking ``10'' and inserting ``5''; and

[[Page 17121]]

       (B) by inserting ``within 120 days'' after ``loan 
     proceeds'';
       (2) in paragraph (10), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (11), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(12) limit loan collateralization, with respect to any 
     loan made under this part, to 100 percent of the loan amount, 
     except as otherwise required by the Secretary.''.
       (c) Limitations on Federal Insurance for Bonds Issued by 
     the Designated Bonding Authority.--Section 344(a) (20 U.S.C. 
     1066c(a)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$375,000,000'' and inserting ``$1,100,000,000'';
       (2) in paragraph (1), by striking ``$250,000,000'' and 
     inserting ``$733,333,333''; and
       (3) in paragraph (2), by striking ``$125,000,000'' and 
     inserting ``$366,666,667''.
       (d) Authority of the Secretary.--Section 345 (20 U.S.C. 
     1066d) is amended--
       (1) in paragraph (1), by striking ``enactment of the Higher 
     Education Amendments of 1992,'' and inserting ``the date of 
     enactment of the Higher Education Opportunity Act,'';
       (2) by redesignating paragraphs (2) through (7) as 
     paragraphs (4) through (9), respectively;
       (3) by inserting after paragraph (1) the following:
       ``(2) shall ensure that--
       ``(A) the selection process for the designated bonding 
     authority is conducted on a competitive basis; and
       ``(B) the evaluation and selection process is transparent;
       ``(3) shall--
       ``(A) review the performance of the designated bonding 
     authority after the third year of the insurance agreement; 
     and
       ``(B) following the review described in subparagraph (A), 
     implement a revised competitive selection process, if 
     determined necessary by the Secretary in consultation with 
     the Advisory Board established pursuant to section 347;'';
       (4) in paragraph (8) (as redesignated by paragraph (2)), by 
     striking ``and'' after the semicolon;
       (5) in paragraph (9) (as redesignated by paragraph (2)), by 
     striking the period at the end and inserting ``; and''; and
       (6) by adding at the end the following:
       ``(10) not later than 120 days after the date of enactment 
     of the Higher Education Opportunity Act, shall submit to the 
     authorizing committees a report on the progress of the 
     Department in implementing the recommendations made by the 
     Government Accountability Office in October 2006 for 
     improving the Historically Black College and Universities 
     Capital Financing Program.''.
       (e) HBCU Capital Financing Advisory Board.--Section 347 (20 
     U.S.C. 1066f) is amended--
       (1) in subsection (b)(1)--
       (A) by striking out ``9 members'' and inserting ``11 
     members'';
       (B) in subparagraph (C), by striking ``Two'' and inserting 
     ``Three''; and
       (C) by adding at the end the following:
       ``(G) The president of the Thurgood Marshall College Fund, 
     or the designee of the president.''; and
       (2) by adding at the end the following:
       ``(c) Additional Recommendations From Advisory Board.--
       ``(1) In general.--In addition to the responsibilities of 
     the Advisory Board described in subsection (a), the Advisory 
     Board shall advise the Secretary and the authorizing 
     committees regarding--
       ``(A) the fiscal status and strategic financial condition 
     of not less than ten historically Black colleges and 
     universities that have--
       ``(i) obtained construction financing through the program 
     under this part and seek additional financing or refinancing 
     under such program; or
       ``(ii) applied for construction financing through the 
     program under this part but have not received financing under 
     such program; and
       ``(B) the feasibility of reducing borrowing costs 
     associated with the program under this part, including 
     reducing interest rates.
       ``(2) Report.--Not later than six months after the date of 
     enactment of the Higher Education Opportunity Act, the 
     Advisory Board shall prepare and submit a report to the 
     authorizing committees regarding the historically Black 
     colleges and universities described in paragraph (1)(A) that 
     includes administrative and legislative recommendations for 
     addressing the issues related to construction financing 
     facing such historically Black colleges and universities.''.

     SEC. 315. PROGRAMS IN STEM FIELDS.

       (a) YES Partnerships; Entry Into STEM Fields.--Part E of 
     title III (20 U.S.C. 1067 et seq.) is amended--
       (1) by redesignating subpart 2 as subpart 3; and
       (2) by inserting after subpart 1 the following new subpart:

                  ``Subpart 2--Programs in STEM Fields

     ``SEC. 355. YES PARTNERSHIPS GRANT PROGRAM.

       ``(a) Grant Program Authorized.--Subject to the 
     availability of appropriations to carry out this subpart, the 
     Secretary shall make grants to eligible partnerships (as 
     described in subsection (f)) to support the engagement of 
     underrepresented minority youth and youth who are low-income 
     individuals (as such term is defined in section 302) in 
     science, technology, engineering, and mathematics through 
     outreach and hands-on, experiential-based learning projects 
     that encourage students in kindergarten through grade 12 who 
     are underrepresented minority youth or low-income individuals 
     to pursue careers in science, technology, engineering, and 
     mathematics.
       ``(b) Minimum Grant Amount.--A grant awarded to a 
     partnership under this subpart shall be for an amount that is 
     not less than $500,000.
       ``(c) Duration.--A grant awarded under this subpart shall 
     be for a period of five years.
       ``(d) Non-Federal Matching Share Required.--A partnership 
     receiving a grant under this subpart shall provide, from non-
     Federal sources, in cash or in-kind, an amount equal to 50 
     percent of the costs of the project supported by such grant.
       ``(e) Distribution of Grants.--In awarding grants under 
     this subpart, the Secretary shall ensure that, to the maximum 
     extent practicable, the projects funded under this subpart 
     are located in diverse geographic regions of the United 
     States.
       ``(f) Eligible Partnerships.--Notwithstanding the general 
     eligibility provision in section 361, eligibility to receive 
     grants under this subpart is limited to partnerships 
     described in paragraph (5) of such section.

     ``SEC. 356. PROMOTION OF ENTRY INTO STEM FIELDS.

       ``(a) Authority To Contract, Subject to Appropriations.--
     The Secretary is authorized to enter into a contract with a 
     firm with a demonstrated record of success in advertising to 
     implement a campaign to expand the population of qualified 
     individuals in science, technology, engineering, and 
     mathematics fields (referred to in this section as `STEM 
     fields') by encouraging young Americans to enter such fields.
       ``(b) Design of Campaign.--The campaign under this section 
     shall be designed to enhance the image of education and 
     professions in the STEM fields and promote participation in 
     the STEM fields, and may include--
       ``(1) monitoring trends in youths' attitudes toward 
     pursuing education and professions in the STEM fields and 
     their propensity toward entering the STEM fields;
       ``(2) determining what factors contribute to encouraging 
     and discouraging Americans from pursuing study in STEM fields 
     and entering the STEM fields professionally;
       ``(3) determining what specific factors limit the 
     participation of groups currently underrepresented in STEM 
     fields, including Latinos, African-Americans, and women; and
       ``(4) drawing from the market research performed under this 
     section and implementing an advertising campaign to encourage 
     young Americans to take up studies in STEM fields, beginning 
     at an early age.
       ``(c) Required Components.--The campaign under this section 
     shall--
       ``(1) include components that focus tailored messages on 
     appropriate age groups, starting with elementary school 
     students; and
       ``(2) link participation in the STEM fields to the concept 
     of service to one's country, so that young people will be 
     encouraged to enter the STEM fields in order fulfill the 
     obligation to be of service to their country.
       ``(d) Priority.--The campaign under this section shall hold 
     as a high priority making specific appeals to Hispanic 
     Americans, African Americans, Native Americans, students with 
     disabilities, and women, who are currently underrepresented 
     in the STEM fields, in order to increase their numbers in the 
     STEM fields, and shall tailor recruitment efforts to each 
     specific group.
       ``(e) Use of Variety of Media.--The campaign under this 
     section shall make use of a variety of media, with an 
     emphasis on television advertising, to reach its intended 
     audience.
       ``(f) Teaching.--The campaign under this section shall 
     include a narrowly focused effort to attract current 
     professionals in the STEM fields, through advertising in 
     mediums likely to reach that specific group, into teaching in 
     a STEM field in elementary schools and secondary schools.

     ``SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.

       ``The Secretary shall develop an evaluation and 
     accountability plan for projects funded under this subpart. 
     Such plan shall include, if the Secretary determines that it 
     is practical, an objective measure of the impact of such 
     projects, such as a measure of whether underrepresented 
     minority student enrollment in courses related to science, 
     technology, engineering, and mathematics increases at the 
     secondary and postsecondary levels.''.
       (b) Eligibility for Grants.--Section 361 (20 U.S.C. 1067g) 
     is amended--
       (1) by striking ``or'' at the end of paragraph (3)(B);
       (2) in paragraph (4)--
       (A) in subparagraph (A), by striking ``institutions of 
     higher education'' and inserting ``public and private 
     nonprofit institutions of higher education'';
       (B) in subparagraph (C), by inserting before the semicolon 
     the following: ``, the Department of Defense, or the National 
     Institutes of Health'';
       (C) by striking subparagraph (D) and inserting the 
     following:
       ``(D) relevant offices of the National Aeronautics and 
     Space Administration, National Oceanic and Atmospheric 
     Administration, National Science Foundation, and National 
     Institute of Standards and Technology;'';
       (D) by striking the period at the end of subparagraph (E) 
     and inserting ``; or''; and
       (E) by adding at the end the following:
       ``(F) institutions of higher education that have State-
     sponsored centers for research in

[[Page 17122]]

     science, technology, engineering, and mathematics; or''; and
       (3) by adding at the end the following:
       ``(5) only with respect to grants under subpart 2, 
     partnerships of organizations, the membership of which shall 
     include--
       ``(A) at least one institution of higher education eligible 
     for assistance under this title or title V;
       ``(B) at least one high-need local educational agency (as 
     defined in section 200); and
       ``(C) at least two community organizations or entities, 
     such as businesses, professional associations, community-
     based organizations, philanthropic organizations, or State 
     agencies.''.

     SEC. 316. INVESTING IN HISTORICALLY BLACK COLLEGES AND 
                   UNIVERSITIES AND OTHER MINORITY-SERVING 
                   INSTITUTIONS.

       (a) Redesignation and Relocation.--The Act (20 U.S.C. 1001 
     et seq.) is further amended--
       (1) by redesignating part F of title III as part G of title 
     III;
       (2) by redesignating part J of title IV (as added by 
     section 802 of the College Cost Reduction and Access Act) as 
     part F of title III, and moving such part so that such part 
     follows part E of title III; and
       (3) by redesignating section 499A (as added by section 802 
     of such Act) as section 371.
       (b) Conforming Amendments.--Section 371 (as redesignated by 
     subsection (a)(3)) is amended--
       (1) in subsection (b)(2)(C)(i), by striking ``title III'' 
     each place the term appears and inserting ``this title''; and
       (2) in subsection (c)(9)(F), by striking ``title III'' and 
     inserting ``this title''.
       (c) Availability of Funds.--Paragraph (1) of section 371(b) 
     (as redesignated by subsection (a)(3)) is amended to read as 
     follows:
       ``(1) In general.--
       ``(A) Provision of funds.--There shall be available to the 
     Secretary to carry out this section, from funds in the 
     Treasury not otherwise appropriated, $255,000,000 for each of 
     the fiscal years 2008 and 2009. The authority to award grants 
     under this section shall expire at the end of fiscal year 
     2009.
       ``(B) Availability.--Funds made available under 
     subparagraph (A) for a fiscal year shall remain available for 
     the next succeeding fiscal year.''.

     SEC. 317. TECHNICAL ASSISTANCE.

       Section 391 (20 U.S.C. 1068) is amended by adding at the 
     end the following:
       ``(e) Technical Assistance.--The Secretary, directly or by 
     grant or contract, may provide technical assistance to 
     eligible institutions to prepare the institutions to qualify, 
     apply for, and maintain a grant, under this title.''.

     SEC. 318. WAIVER AUTHORITY.

       Section 392 (20 U.S.C. 1068a) is amended by adding at the 
     end the following:
       ``(c) Waiver Authority With Respect to Institutions Located 
     in an Area Affected by a Gulf Hurricane Disaster.--
       ``(1) Waiver authority.--Notwithstanding any other 
     provision of law, unless enacted with specific reference to 
     this section, for any affected institution that was receiving 
     assistance under this title at the time of a Gulf hurricane 
     disaster, the Secretary shall, for each of the fiscal years 
     2009 through 2011 (and may, for each of the fiscal years 2012 
     and 2013)--
       ``(A) waive--
       ``(i) the eligibility data requirements set forth in 
     section 391(d);
       ``(ii) the wait-out period set forth in section 313(d);
       ``(iii) the allotment requirements under section 324; and
       ``(iv) the use of the funding formula developed pursuant to 
     section 326(f)(3);
       ``(B) waive or modify any statutory or regulatory provision 
     to ensure that affected institutions that were receiving 
     assistance under this title at the time of a Gulf hurricane 
     disaster are not adversely affected by any formula 
     calculation for fiscal year 2009 or for any of the four 
     succeeding fiscal years, as necessary; and
       ``(C) make available to each affected institution an amount 
     that is not less than the amount made available to such 
     institution under this title for fiscal year 2006, except 
     that for any fiscal year for which the funds appropriated for 
     payments under this title are less than the appropriated 
     level for fiscal year 2006, the amount made available to such 
     institutions shall be ratably reduced among the institutions 
     receiving funds under this title.
       ``(2) Definitions.--In this subsection:
       ``(A) Affected institution.--The term `affected 
     institution' means an institution of higher education that--
       ``(i) is--

       ``(I) a part A institution (which term shall have the 
     meaning given the term `eligible institution' under section 
     312(b)); or
       ``(II) a part B institution, as such term is defined in 
     section 322(2), or as identified in section 326(e);

       ``(ii) is located in an area affected by a Gulf hurricane 
     disaster; and
       ``(iii) is able to demonstrate that, as a result of the 
     impact of a Gulf hurricane disaster, the institution--

       ``(I) incurred physical damage;
       ``(II) has pursued collateral source compensation from 
     insurance, the Federal Emergency Management Agency, and the 
     Small Business Administration, as appropriate; and
       ``(III) was not able to fully reopen in existing facilities 
     or to fully reopen to the pre-hurricane enrollment levels 
     during the 30-day period beginning on August 29, 2005.

       ``(B) Area affected by a gulf hurricane disaster; gulf 
     hurricane disaster.--The terms `area affected by a Gulf 
     hurricane disaster' and `Gulf hurricane disaster' have the 
     meanings given such terms in section 209 of the Higher 
     Education Hurricane Relief Act of 2005 (Public Law 109-148, 
     119 Stat. 2809).''.

     SEC. 319. AUTHORIZATION OF APPROPRIATIONS.

       Section 399(a) (20 U.S.C. 1068h(a)) is amended to read as 
     follows:
       ``(a) Authorizations.--
       ``(1) Part a.--(A) There are authorized to be appropriated 
     to carry out part A (other than sections 316 through 320), 
     $135,000,000 for fiscal year 2009, and such sums as may be 
     necessary for each of the five succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 316, $30,000,000 for fiscal year 2009, and such sums 
     as may be necessary for each of the five succeeding fiscal 
     years.
       ``(C) There are authorized to be appropriated to carry out 
     section 317, $15,000,000 for fiscal year 2009, and such sums 
     as may be necessary for each of the five succeeding fiscal 
     years.
       ``(D) There are authorized to be appropriated to carry out 
     section 318, $75,000,000 for fiscal year 2009 and each of the 
     five succeeding fiscal years.
       ``(E) There are authorized to be appropriated to carry out 
     section 319, $25,000,000 for fiscal year 2009, and such sums 
     as may be necessary for each of the five succeeding fiscal 
     years.
       ``(F) There are authorized to be appropriated to carry out 
     section 320, $30,000,000 for fiscal year 2009, and such sums 
     as may be necessary for each of the five succeeding fiscal 
     years.
       ``(2) Part b.--(A) There are authorized to be appropriated 
     to carry out part B (other than section 326), $375,000,000 
     for fiscal year 2009, and such sums as may be necessary for 
     each of the five succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     section 326, $125,000,000 for fiscal year 2009, and such sums 
     as may be necessary for each of the five succeeding fiscal 
     years.
       ``(3) Part c.--There are authorized to be appropriated to 
     carry out part C, $10,000,000 for fiscal year 2009, and such 
     sums as may be necessary for each of the five succeeding 
     fiscal years.
       ``(4) Part d.--(A) There are authorized to be appropriated 
     to carry out part D (other than section 345(9), but including 
     section 347), $185,000 for fiscal year 2009, and such sums as 
     may be necessary for each of the five succeeding fiscal 
     years.
       ``(B) There are authorized to be appropriated to carry out 
     section 345(9) such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.
       ``(5) Part e.--(A) There are authorized to be appropriated 
     to carry out subpart 1 of part E, $12,000,000 for fiscal year 
     2009, and such sums as may be necessary for each of the five 
     succeeding fiscal years.
       ``(B) There are authorized to be appropriated to carry out 
     subpart 2 of part E, such sums as may be necessary for fiscal 
     year 2009 and each of the five succeeding fiscal years.''.

     SEC. 320. TECHNICAL CORRECTIONS.

       Title III (20 U.S.C. 1051 et seq.) is further amended--
       (1) in section 342(5) (20 U.S.C. 1066a(5))--
       (A) in the matter preceding subparagraph (A), by inserting 
     a comma after ``344(b)''; and
       (B) in subparagraph (C), by striking ``equipment 
     technology,,'' and inserting ``equipment, technology,'';
       (2) in section 343(e) (20 U.S.C. 1066b(e)), by inserting 
     ``Sale of Qualified Bonds.--'' before ``Notwithstanding'';
       (3) in the matter preceding clause (i) of section 365(9)(A) 
     (20 U.S.C. 1067k(9)(A)), by striking ``support'' and 
     inserting ``supports'';
       (4) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by 
     striking ``subparagraph (E)'' and inserting ``subparagraph 
     (D)'';
       (5) in the matter preceding subparagraph (A) of section 
     392(b)(2) (20 U.S.C. 1068a(b)(2)), by striking ``eligible 
     institutions under part A institutions'' and inserting 
     ``eligible institutions under part A''; and
       (6) in the matter preceding paragraph (1) of section 396 
     (20 U.S.C. 1068e), by striking ``360'' and inserting ``399''.
                      TITLE IV--STUDENT ASSISTANCE

  PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

     SEC. 401. FEDERAL PELL GRANTS.

       (a) Authorized Maximums.--
       (1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is 
     amended--
       (A) by amending paragraph (2)(A) to read as follows:
       ``(2)(A) The amount of the Federal Pell Grant for a student 
     eligible under this part shall be--
       ``(i) $6,000 for academic year 2009-2010;
       ``(ii) $6,400 for academic year 2010-2011;
       ``(iii) $6,800 for academic year 2011-2012;
       ``(iv) $7,200 for academic year 2012-2013;
       ``(v) $7,600 for academic year 2013-2014; and
       ``(vi) $8,000 for academic year 2014-2015,
     less an amount equal to the amount determined to be the 
     expected family contribution with respect to that student for 
     that year.'';
       (B) by designating the paragraphs following paragraph (2), 
     in the order in which such paragraphs appear, as paragraphs 
     (3) through (8);
       (C) in paragraph (4) (as designated by subparagraph (B)), 
     by striking ``$400, except'' and all that follows through the 
     period and inserting ``ten percent of the maximum basic grant 
     level specified in the appropriate appropriation Act for such 
     academic year, except that a student who is eligible for a 
     Federal Pell Grant in an

[[Page 17123]]

     amount that is equal to or greater than five percent of such 
     level but less than ten percent of such level shall be 
     awarded a Federal Pell grant in the amount of ten percent of 
     such level.'';
       (D) by striking paragraph (5) (as designated by 
     subparagraph (B)) and inserting the following:
       ``(5)(A) The Secretary shall award a student not more than 
     two Federal Pell Grants during a single award year to permit 
     such student to accelerate the student's progress toward a 
     degree or certificate if the student is enrolled--
       ``(i) on at least a half-time basis for a period of more 
     than one academic year, or more than two semesters or an 
     equivalent period of time, during a single award year; and
       ``(ii) in a program of instruction at an institution of 
     higher education for which the institution awards an 
     associate or baccalaureate degree or a certificate.
       ``(B) In the case of a student receiving more than one 
     Federal Pell Grant in a single award year under subparagraph 
     (A), the total amount of Federal Pell Grants awarded to such 
     student for the award year may exceed the maximum basic grant 
     level specified in the appropriate appropriations Act for 
     such award year.'';
       (E) in paragraph (7) (as designated by subparagraph (B)), 
     by inserting before the period the following: ``or who is 
     subject to an involuntary civil commitment upon completion of 
     a period of incarceration for a forcible or nonforcible 
     sexual offense (as determined in accordance with the Federal 
     Bureau of Investigation's Uniform Crime Reporting Program)''; 
     and
       (F) in paragraph (8) (as designated by subparagraph (B))--
       (i) by amending subparagraph (D) to read as follows:
       ``(D) Program requirements and operations otherwise 
     unaffected.--Except as provided in subparagraphs (B) and (C), 
     nothing in this paragraph shall be construed to alter the 
     requirements and operations of the Federal Pell Grant Program 
     as authorized under this section, or authorize the imposition 
     of additional requirements or operations for the 
     determination and allocation of Federal Pell Grants under 
     this section.''; and
       (ii) by amending subparagraph (F) to read as follows:
       ``(F) Availability of funds.--The amounts made available by 
     subparagraph (A) for any fiscal year shall be available 
     beginning on October 1 of that fiscal year, and shall remain 
     available through September 30 of the succeeding fiscal 
     year.''.
       (2) Effective date.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by paragraph (1) shall take effect on 
     July 1, 2009.
       (B) Special rule.--The amendments made by subparagraph (F) 
     of paragraph (1) shall take effect on the date of enactment 
     of this Act.
       (b) Maximum Duration of Eligibility.--Section 401(c) (20 
     U.S.C. 1070a(c)) is amended by adding at the end the 
     following new paragraph:
       ``(5) The period during which a student may receive Federal 
     Pell Grants shall not exceed 18 semesters, or the equivalent 
     of 18 semesters, as determined by the Secretary by 
     regulation. Such regulations shall provide, with respect to a 
     student who received a Federal Pell Grant for a term but was 
     enrolled at a fraction of full-time, that only that same 
     fraction of such semester or equivalent shall count towards 
     such duration limits. The provisions of this paragraph shall 
     apply only to a student who receives a Federal Pell Grant for 
     the first time on or after July 1, 2008.''.
       (c) Calculation of Federal Pell Grant Eligibility.--
       (1) Amendment.--Section 401(f) (20 U.S.C. 1070a(f)) is 
     amended by adding at the end the following new paragraph:
       ``(4)(A) Notwithstanding paragraph (1) or any other 
     provision of this section, the expected family contribution 
     of each student described in subparagraph (B) shall be deemed 
     to be zero for the period during which each such student is 
     eligible to receive a Federal Pell Grant under subsection 
     (c).
       ``(B) Subparagraph (A) shall apply to any student at an 
     institution of higher education--
       ``(i) whose parent or guardian was a member of the Armed 
     Forces of the United States who died as a result of 
     performing military service in Iraq or Afghanistan after 
     September 11, 2001; and
       ``(ii) who was less than 24 years of age, or was enrolled 
     as a full-time or part-time student at an institution of 
     higher education, as of the time of the parent or guardian's 
     death.
       ``(C) Notwithstanding any other provision of law, the 
     Secretary of Veterans Affairs and the Secretary of Defense, 
     as appropriate, shall provide the Secretary of Education with 
     information necessary to determine which students meet the 
     requirements of subparagraph (B).''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect on July 1, 2009.

     SEC. 402. ACADEMIC COMPETITIVENESS GRANTS.

       (a) Amendments.--
       (1) In general.--Section 401A (as amended by Public Law 
     110-227) (20 U.S.C. 1070a-1) is amended--
       (A) in subsection (c)(3)--
       (i) in subparagraph (A), by striking clause (i) and 
     inserting the following:
       ``(i)(I) successfully completes, after January 1, 2006, but 
     before July 1, 2009, a rigorous secondary school program of 
     study established by a State or local educational agency and 
     recognized as such by the Secretary; or
       ``(II) successfully completes, on or after July 1, 2009, a 
     rigorous secondary school program of study that prepares 
     students for college--

       ``(aa)(AA) that is recognized as such by the official 
     designated for such recognition consistent with State law; 
     and
       ``(BB) about which the designated official has reported to 
     the Secretary, at such time as the Secretary may reasonably 
     require, in order to assist financial aid administrators to 
     determine that the student is an eligible student under this 
     section; or
       ``(bb) that is recognized as such by the Secretary in 
     regulations promulgated to carry out this section, as such 
     regulations were in effect on May 6, 2008; and''; and

       (ii) in subparagraph (B), by striking clause (i) and 
     inserting the following:
       ``(i)(I) successfully completes, after January 1, 2005, but 
     before July 1, 2009, a rigorous secondary school program of 
     study established by a State or local educational agency and 
     recognized as such by the Secretary; or
       ``(II) successfully completes, on or after July 1, 2009, a 
     rigorous secondary school program of study that prepares 
     students for college--

       ``(aa)(AA) that is recognized as such by the official 
     designated for such recognition consistent with State law; 
     and
       ``(BB) about which the designated official has reported to 
     the Secretary, at such time as the Secretary may reasonably 
     require, in order to assist financial aid administrators to 
     determine that the student is an eligible student under this 
     section; or
       ``(bb) that is recognized as such by the Secretary in 
     regulations promulgated to carry out this section, as such 
     regulations were in effect on May 6, 2008; and''; and

       (B) by amending subsection (e)(2) to read as follows:
       ``(2) Availability of funds.--The amounts made available by 
     paragraph (1) for any fiscal year shall be available from 
     October 1 of that fiscal year and remain available through 
     September 30 of the succeeding fiscal year.''.
       (2) Effective date.--The amendment made by paragraph (1)(B) 
     shall take effect on October 1, 2008.
       (3) Effective date amendment.--Section 10(b) of the 
     Ensuring Continued Access to Student Loans Act of 2008 is 
     amended by striking ``January 1'' and inserting ``July 1''.
       (b) Waiver of Master Calendar and Negotiated Rulemaking 
     Requirements.--Sections 482 and 492 of the Higher Education 
     Act of 1965 (20 U.S.C. 1089, 1098a) shall not apply to the 
     amendments made by subsection (a), or to any regulations 
     promulgated under those amendments.
       (c) Related Amendment to the Ensuring Continued Access to 
     Student Loans Act of 2008.--
       (1) Amendment.--Section 11 of the Ensuring Continued Access 
     to Student Loans Act of 2008 is amended by striking 
     ``sections 2 through 9 of''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall take effect as if enacted as part of the Ensuring 
     Continued Access to Student Loans Act of 2008.

     SEC. 403. FEDERAL TRIO PROGRAMS.

       (a) Program Authority; Authorization of Appropriations.--
     Section 402A (20 U.S.C. 1070a-11) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by inserting ``including community-based organizations 
     with experience in serving disadvantaged youth'' after 
     ``private agencies and organizations''; and
       (ii) by striking ``in exceptional circumstances'' and 
     inserting ``, as appropriate to the purposes of the 
     program'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by striking 
     ``4'' and inserting ``5''; and
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) in order to synchronize the awarding of grants for 
     programs under this chapter, the Secretary may, under such 
     terms as are consistent with the purposes of this chapter, 
     provide a one-time, limited extension of the length of such 
     an award;''; and
       (C) by striking paragraph (3) and inserting the following:
       ``(3) Minimum grants.--Unless the institution or agency 
     requests a smaller amount, an individual grant authorized 
     under this chapter shall be awarded in an amount that is not 
     less than $200,000, except that an individual grant 
     authorized under section 402G shall be awarded in an amount 
     that is not less than $170,000.'';
       (2) in subsection (c)--
       (A) in paragraph (2)--
       (i) by striking ``(2) prior experience.--In'' and inserting 
     the following:
       ``(2) Considerations.--
       ``(A) Prior experience.--In'';
       (ii) by striking ``service delivery'' and inserting ``high 
     quality service delivery, as determined under subsection 
     (f),''; and
       (iii) by adding at the end the following new subparagraph:
       ``(B) Participant need.--In making grants under this 
     chapter, the Secretary shall consider the number, 
     percentages, and needs of eligible participants in the area, 
     institution of higher education, or secondary school to be 
     served to aid such participants in preparing for, enrolling 
     in, or succeeding in postsecondary education, as appropriate 
     to the particular program for which the eligible entity is 
     applying.'';
       (B) in paragraph (3)(B), by striking ``is not required to'' 
     and inserting ``shall not'';
       (C) in paragraph (5), by striking ``campuses'' and 
     inserting ``different campuses'';

[[Page 17124]]

       (D) in paragraph (6), by adding at the end the following 
     new sentence: ``The Secretary shall, as appropriate, require 
     each applicant for funds under the programs authorized by 
     this chapter to identify and make available services under 
     such program, including mentoring, tutoring, and other 
     services provided by such program, to foster care youth 
     (including youth in foster care and youth who have left 
     foster care after reaching age 13) or to homeless children 
     and youths as defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act.''; and
       (E) by adding at the end the following:
       ``(8) Review and notification by the secretary.--
       ``(A) Guidance.--Not later than 180 days after the date of 
     enactment of the Higher Education Opportunity Act, the 
     Secretary shall issue nonregulatory guidance regarding the 
     rights and responsibilities of applicants with respect to the 
     application and evaluation process for programs and projects 
     assisted under this chapter, including applicant access to 
     peer review comments. The guidance shall describe the 
     procedures for the submission, processing, and scoring of 
     applications for grants under this chapter, including--
       ``(i) the responsibility of applicants to submit materials 
     in a timely manner and in accordance with the processes 
     established by the Secretary under the authority of the 
     General Education Provisions Act;
       ``(ii) steps the Secretary will take to ensure that the 
     materials submitted by applicants are processed in a proper 
     and timely manner;
       ``(iii) steps the Secretary will take to ensure that prior 
     experience points for high quality service delivery are 
     awarded in an accurate and transparent manner;
       ``(iv) steps the Secretary will take to ensure the quality 
     and integrity of the peer review process, including 
     assurances that peer reviewers will consider applications for 
     grants under this chapter in a thorough and complete manner 
     consistent with applicable Federal law; and
       ``(v) steps the Secretary will take to ensure that the 
     final score of an application, including prior experience 
     points for high quality service delivery and points awarded 
     through the peer review process, is determined in an accurate 
     and transparent manner.
       ``(B) Updated guidance.--Not later than 45 days before the 
     date of the commencement of each competition for a grant 
     under this chapter that is held after the expiration of the 
     180-day period described in subparagraph (A), the Secretary 
     shall update and publish the guidance described in such 
     subparagraph.
       ``(C) Review.--
       ``(i) In general.--With respect to any competition for a 
     grant under this chapter, an applicant may request a review 
     by the Secretary if the applicant--

       ``(I) has evidence of a specific technical, administrative, 
     or scoring error made by the Department, an agent of the 
     Department, or a peer reviewer, with respect to the scoring 
     or processing of a submitted application; and
       ``(II) has otherwise met all of the requirements for 
     submission of the application.

       ``(ii) Technical or administrative error.--In the case of 
     evidence of a technical or administrative error listed in 
     clause (i)(I), the Secretary shall review such evidence and 
     provide a timely response to the applicant. If the Secretary 
     determines that a technical or administrative error was made 
     by the Department or an agent of the Department, the 
     application of the applicant shall be reconsidered in the 
     peer review process for the applicable grant competition.
       ``(iii) Scoring error.--In the case of evidence of a 
     scoring error listed in clause (i)(I), when the error relates 
     to either prior experience points for high quality service 
     delivery or to the final score of an application, the 
     Secretary shall--

       ``(I) review such evidence and provide a timely response to 
     the applicant; and
       ``(II) if the Secretary determines that a scoring error was 
     made by the Department or a peer reviewer, adjust the prior 
     experience points or final score of the application 
     appropriately and quickly, so as not to interfere with the 
     timely awarding of grants for the applicable grant 
     competition.

       ``(iv) Error in peer review process.--

       ``(I) Referral to secondary review.--In the case of a peer 
     review process error listed in clause (i)(I), if the 
     Secretary determines that points were withheld for criteria 
     not required in Federal statute, regulation, or guidance 
     governing a program assisted under this chapter or the 
     application for a grant for such program, or determines that 
     information pertaining to selection criteria was wrongly 
     determined missing from an application by a peer reviewer, 
     then the Secretary shall refer the application to a secondary 
     review panel.
       ``(II) Timely review; replacement score.--The secondary 
     review panel described in subclause (I) shall conduct a 
     secondary review in a timely fashion, and the score resulting 
     from the secondary review shall replace the score from the 
     initial peer review.
       ``(III) Composition of secondary review panel.--The 
     secondary review panel shall be composed of reviewers each of 
     whom--

       ``(aa) did not review the application in the original peer 
     review;
       ``(bb) is a member of the cohort of peer reviewers for the 
     grant program that is the subject of such secondary review; 
     and
       ``(cc) to extent practicable, has conducted peer reviews in 
     not less than two previous competitions for the grant program 
     that is the subject of such secondary review.

       ``(IV) Final score.--The final peer review score of an 
     application subject to a secondary review under this clause 
     shall be adjusted appropriately and quickly using the score 
     awarded by the secondary review panel, so as not to interfere 
     with the timely awarding of grants for the applicable grant 
     competition.
       ``(V) Qualification for secondary review.--To qualify for a 
     secondary review under this clause, an applicant shall have 
     evidence of a scoring error and demonstrate that--

       ``(aa) points were withheld for criteria not required in 
     statute, regulation, or guidance governing the Federal TRIO 
     programs or the application for a grant for such programs; or
       ``(bb) information pertaining to selection criteria was 
     wrongly determined to be missing from the application.
       ``(v) Finality.--

       ``(I) In general.--A determination by the Secretary under 
     clause (i), (ii), or (iii) shall not be reviewable by any 
     officer or employee of the Department.
       ``(II) Scoring.--The score awarded by a secondary review 
     panel under clause (iv) shall not be reviewable by any 
     officer or employee of the Department other than the 
     Secretary.

       ``(vi) Funding of applications with certain adjusted 
     scores.--To the extent feasible based on the availability of 
     appropriations, the Secretary shall fund applications with 
     scores that are adjusted upward under clauses (ii), (iii), 
     and (iv) to equal or exceed the minimum cut off score for the 
     applicable grant competition.'';
       (3) in subsection (e)--
       (A) by striking ``(g)(2)'' each place it appears and 
     inserting ``(h)(4)''; and
       (B) by adding at the end the following new paragraph:
       ``(3) Notwithstanding this subsection and subsection 
     (h)(4), individuals who are foster care youth (including 
     youth in foster care and youth who have left foster care 
     after reaching age 13), or homeless children and youths as 
     defined in section 725 of the McKinney-Vento Homeless 
     Assistance Act, shall be eligible to participate in programs 
     under sections 402B, 402C, 402D, and 402F.'';
       (4) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively;
       (5) by inserting after subsection (e) the following:
       ``(f) Outcome Criteria.--
       ``(1) Use for prior experience determination.--For 
     competitions for grants under this chapter that begin on or 
     after January 1, 2009, the Secretary shall determine an 
     eligible entity's prior experience of high quality service 
     delivery, as required under subsection (c)(2), based on the 
     outcome criteria described in paragraphs (2) and (3).
       ``(2) Disaggregation of relevant data.--The outcome 
     criteria under this subsection shall be disaggregated by low-
     income students, first generation college students, and 
     individuals with disabilities, in the schools and 
     institutions of higher education served by the program to be 
     evaluated.
       ``(3) Contents of outcome criteria.--The outcome criteria 
     under this subsection shall measure, annually and for longer 
     periods, the quality and effectiveness of programs authorized 
     under this chapter and shall include the following:
       ``(A) For programs authorized under section 402B, the 
     extent to which the eligible entity met or exceeded the 
     entity's objectives established in the entity's application 
     for such program regarding--
       ``(i) the delivery of service to a total number of students 
     served by the program;
       ``(ii) the continued secondary school enrollment of such 
     students;
       ``(iii) the graduation of such students from secondary 
     school with a regular secondary school diploma in the 
     standard number of years;
       ``(iv) the completion by such students of a rigorous 
     secondary school program of study that will make such 
     students eligible for programs such as the Academic 
     Competitiveness Grants Program;
       ``(v) the enrollment of such students in an institution of 
     higher education; and
       ``(vi) to the extent practicable, the postsecondary 
     education completion of such students.
       ``(B) For programs authorized under section 402C, the 
     extent to which the eligible entity met or exceeded the 
     entity's objectives for such program regarding--
       ``(i) the delivery of service to a total number of students 
     served by the program, as agreed upon by the entity and the 
     Secretary for the period;
       ``(ii) such students' school performance, as measured by 
     the grade point average, or its equivalent;
       ``(iii) such students' academic performance, as measured by 
     standardized tests, including tests required by the students' 
     State;
       ``(iv) the retention in, and graduation from, secondary 
     school of such students;
       ``(v) the completion by such students of a rigorous 
     secondary school program of study that will make such 
     students eligible for programs such as the Academic 
     Competitiveness Grants Program;
       ``(vi) the enrollment of such students in an institution of 
     higher education; and
       ``(vii) to the extent practicable, the postsecondary 
     education completion of such students.
       ``(C) For programs authorized under section 402D--
       ``(i) the extent to which the eligible entity met or 
     exceeded the entity's objectives regarding the retention in 
     postsecondary education of the students served by the 
     program;

[[Page 17125]]

       ``(ii)(I) in the case of an entity that is an institution 
     of higher education offering a baccalaureate degree, the 
     extent to which the entity met or exceeded the entity's 
     objectives regarding the percentage of such students' 
     completion of the degree programs in which such students were 
     enrolled; or
       ``(II) in the case of an entity that is an institution of 
     higher education that does not offer a baccalaureate degree, 
     the extent to which such students met or exceeded the 
     entity's objectives regarding--

       ``(aa) the completion of a degree or certificate by such 
     students; and
       ``(bb) the transfer of such students to institutions of 
     higher education that offer baccalaureate degrees;

       ``(iii) the extent to which the entity met or exceeded the 
     entity's objectives regarding the delivery of service to a 
     total number of students, as agreed upon by the entity and 
     the Secretary for the period; and
       ``(iv) the extent to which the entity met or exceeded the 
     entity's objectives regarding the students served under the 
     program who remain in good academic standing.
       ``(D) For programs authorized under section 402E, the 
     extent to which the entity met or exceeded the entity's 
     objectives for such program regarding--
       ``(i) the delivery of service to a total number of students 
     served by the program, as agreed upon by the entity and the 
     Secretary for the period;
       ``(ii) the provision of appropriate scholarly and research 
     activities for the students served by the program;
       ``(iii) the acceptance and enrollment of such students in 
     graduate programs; and
       ``(iv) the continued enrollment of such students in 
     graduate study and the attainment of doctoral degrees by 
     former program participants.
       ``(E) For programs authorized under section 402F, the 
     extent to which the entity met or exceeded the entity's 
     objectives for such program regarding--
       ``(i) the enrollment of students without a secondary school 
     diploma or its recognized equivalent, who were served by the 
     program, in programs leading to such diploma or equivalent;
       ``(ii) the enrollment of secondary school graduates who 
     were served by the program in programs of postsecondary 
     education;
       ``(iii) the delivery of service to a total number of 
     students served by the program, as agreed upon by the entity 
     and the Secretary for the period; and
       ``(iv) the provision of assistance to students served by 
     the program in completing financial aid applications and 
     college admission applications.
       ``(4) Measurement of progress.--In order to determine the 
     extent to which each outcome criterion described in paragraph 
     (2) or (3) is met or exceeded, the Secretary shall compare 
     the agreed upon target for the criterion, as established in 
     the eligible entity's application approved by the Secretary, 
     with the results for the criterion, measured as of the last 
     day of the applicable time period for the determination for 
     the outcome criterion.'';
       (6) in subsection (g) (as redesignated by paragraph (4))--
       (A) in the first sentence, by striking ``$700,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``$900,000,000 for fiscal year 2009 and such 
     sums as may be necessary for each of the five succeeding 
     fiscal years.''; and
       (B) by striking the fourth sentence; and
       (7) in subsection (h) (as redesignated by paragraph (4))--
       (A) by redesignating paragraphs (1) through (4) as 
     paragraphs (3) through (6), respectively;
       (B) by inserting before paragraph (3) (as redesignated by 
     subparagraph (A)) the following:
       ``(1) Different campus.--The term `different campus' means 
     a site of an institution of higher education that--
       ``(A) is geographically apart from the main campus of the 
     institution;
       ``(B) is permanent in nature; and
       ``(C) offers courses in educational programs leading to a 
     degree, certificate, or other recognized educational 
     credential.
       ``(2) Different population.--The term `different 
     population' means a group of individuals that an eligible 
     entity desires to serve through an application for a grant 
     under this chapter, and that--
       ``(A) is separate and distinct from any other population 
     that the entity has applied for a grant under this chapter to 
     serve; or
       ``(B) while sharing some of the same needs as another 
     population that the eligible entity has applied for a grant 
     under this chapter to serve, has distinct needs for 
     specialized services.'';
       (C) in paragraph (5) (as redesignated by subparagraph 
     (A))--
       (i) in subparagraph (A)--

       (I) by striking ``, any part of which occurred after 
     January 31, 1955,''; and
       (II) by striking ``or'' after the semicolon;

       (ii) in subparagraph (B)--

       (I) by striking ``after January 31, 1955,''; and
       (II) by striking the period at the end and inserting a 
     semicolon; and

       (iii) by adding at the end the following:
       ``(C) was a member of a reserve component of the Armed 
     Forces called to active duty for a period of more than 30 
     days; or
       ``(D) was a member of a reserve component of the Armed 
     Forces who served on active duty in support of a contingency 
     operation (as that term is defined in section 101(a)(13) of 
     title 10, United States Code) on or after September 11, 
     2001.''; and
       (D) in paragraph (6) (as redesignated by subparagraph (A)), 
     by striking ``subparagraph (A) or (B) of paragraph (3)'' and 
     inserting ``subparagraph (A), (B), or (C) of paragraph (5)''.
       (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is 
     amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by inserting ``, and facilitate the 
     application for,'' after ``the availability of''; and
       (B) in paragraph (3), by striking ``, but who have the 
     ability to complete such programs, to reenter'' and inserting 
     ``to enter or reenter, and complete'';
       (2) by redesignating subsection (c) as subsection (d);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--
       ``(1) connections to high quality academic tutoring 
     services, to enable students to complete secondary or 
     postsecondary courses;
       ``(2) advice and assistance in secondary course selection 
     and, if applicable, initial postsecondary course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on the full range of Federal student 
     financial aid programs and benefits (including Federal Pell 
     Grant awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) connections to education or counseling services 
     designed to improve the financial literacy and economic 
     literacy of students or the students' parents, including 
     financial planning for postsecondary education.
       ``(c) Permissible Services.--Any project assisted under 
     this section may provide services such as--
       ``(1) academic tutoring, which may include instruction in 
     reading, writing, study skills, mathematics, science, and 
     other subjects;
       ``(2) personal and career counseling or activities;
       ``(3) information and activities designed to acquaint youth 
     with the range of career options available to the youth;
       ``(4) exposure to the campuses of institutions of higher 
     education, as well as cultural events, academic programs, and 
     other sites or activities not usually available to 
     disadvantaged youth;
       ``(5) workshops and counseling for families of students 
     served;
       ``(6) mentoring programs involving elementary or secondary 
     school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(7) programs and activities as described in subsection 
     (b) or paragraphs (1) through (6) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students from groups that are traditionally 
     underrepresented in postsecondary education, students with 
     disabilities, students who are homeless children and youths 
     (as such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)), students who are 
     in foster care or are aging out of the foster care system, or 
     other disconnected students.''; and
       (4) in the matter preceding paragraph (1) of subsection (d) 
     (as redesignated by paragraph (2)), by striking ``talent 
     search projects under this chapter'' and inserting ``projects 
     under this section''.
       (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is 
     amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--Any project assisted under this 
     section shall provide--
       ``(1) academic tutoring to enable students to complete 
     secondary or postsecondary courses, which may include 
     instruction in reading, writing, study skills, mathematics, 
     science, and other subjects;
       ``(2) advice and assistance in secondary and postsecondary 
     course selection;
       ``(3) assistance in preparing for college entrance 
     examinations and completing college admission applications;
       ``(4)(A) information on the full range of Federal student 
     financial aid programs and benefits (including Federal Pell 
     Grant awards and loan forgiveness) and resources for locating 
     public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(5) guidance on and assistance in--
       ``(A) secondary school reentry;
       ``(B) alternative education programs for secondary school 
     dropouts that lead to the receipt of a regular secondary 
     school diploma;
       ``(C) entry into general educational development (GED) 
     programs; or
       ``(D) postsecondary education; and
       ``(6) education or counseling services designed to improve 
     the financial literacy and economic literacy of students or 
     the students' parents, including financial planning for 
     postsecondary education.'';

[[Page 17126]]

       (2) in subsection (c)--
       (A) in the subsection heading, by striking ``Required 
     Services'' and inserting ``Additional Required Services for 
     Multiple-Year Grant Recipients''; and
       (B) by striking ``upward bound project assisted under this 
     chapter'' and inserting ``project assisted under this 
     section'';
       (3) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (4) by inserting after subsection (c) the following:
       ``(d) Permissible Services.--Any project assisted under 
     this section may provide such services as--
       ``(1) exposure to cultural events, academic programs, and 
     other activities not usually available to disadvantaged 
     youth;
       ``(2) information, activities, and instruction designed to 
     acquaint youth participating in the project with the range of 
     career options available to the youth;
       ``(3) on-campus residential programs;
       ``(4) mentoring programs involving elementary school or 
     secondary school teachers or counselors, faculty members at 
     institutions of higher education, students, or any 
     combination of such persons;
       ``(5) work-study positions where youth participating in the 
     project are exposed to careers requiring a postsecondary 
     degree;
       ``(6) special services, including mathematics and science 
     preparation, to enable veterans to make the transition to 
     postsecondary education; and
       ``(7) programs and activities as described in subsection 
     (b), subsection (c), or paragraphs (1) through (6) of this 
     subsection that are specially designed for students who are 
     limited English proficient, students from groups that are 
     traditionally underrepresented in postsecondary education, 
     students with disabilities, students who are homeless 
     children and youths (as such term is defined in section 725 
     of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11434a)), students who are in foster care or are aging out of 
     the foster care system, or other disconnected students.'';
       (5) in subsection (e) (as redesignated by paragraph (3))--
       (A) in the matter preceding paragraph (1), by striking 
     ``upward bound projects under this chapter'' and inserting 
     ``projects under this section'';
       (B) in paragraph (2), by striking ``either low-income'' and 
     all that follows through the semicolon and inserting ``low-
     income individuals, first generation college students, or 
     students who have a high risk for academic failure;'';
       (C) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (D) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(5) require an assurance that no student will be denied 
     participation in a project assisted under this section 
     because the student will enter the project after the 9th 
     grade.'';
       (6) in subsection (f) (as redesignated by paragraph (3))--
       (A) by striking ``during June, July, and August'' each 
     place the term occurs and inserting ``during the summer 
     school recess, for a period not to exceed three months''; and
       (B) by striking ``(b)(10)'' and inserting ``(d)(5)''; and
       (7) by adding at the end the following:
       ``(h) Absolute Priority Prohibited in Upward Bound 
     Program.--Upon enactment of this subsection and except as 
     otherwise expressly provided by amendment to this section, 
     the Secretary shall not continue, implement, or enforce the 
     absolute priority for the Upward Bound Program published by 
     the Department of Education in the Federal Register on 
     September 22, 2006 (71 Fed. Reg. 55447 et seq.). This 
     subsection shall not be applied retroactively. In 
     implementing this subsection, the Department shall allow the 
     programs and participants chosen in the grant cycle to which 
     the priority applies to continue their grants and 
     participation without a further recompetition. The entities 
     shall not be required to apply the absolute priority 
     conditions or restrictions to future participants.''.
       (d) Student Support Services.--Section 402D (20 U.S.C. 
     1070a-14) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2), by striking ``and'' after the 
     semicolon; and
       (B) by striking paragraph (3) and inserting the following:
       ``(3) to foster an institutional climate supportive of the 
     success of students who are limited English proficient, 
     students from groups that are traditionally underrepresented 
     in postsecondary education, students with disabilities, 
     students who are homeless children and youths (as such term 
     is defined in section 725 of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11434a)), students who are in 
     foster care or are aging out of the foster care system, or 
     other disconnected students; and
       ``(4) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.'';
       (2) by redesignating subsections (c) and (d) as subsections 
     (d) and (e);
       (3) by striking subsection (b) and inserting the following:
       ``(b) Required Services.--A project assisted under this 
     section shall provide--
       ``(1) academic tutoring, directly or through other services 
     provided by the institution, to enable students to complete 
     postsecondary courses, which may include instruction in 
     reading, writing, study skills, mathematics, science, and 
     other subjects;
       ``(2) advice and assistance in postsecondary course 
     selection;
       ``(3)(A) information on both the full range of Federal 
     student financial aid programs and benefits (including 
     Federal Pell Grant awards and loan forgiveness) and resources 
     for locating public and private scholarships; and
       ``(B) assistance in completing financial aid applications, 
     including the Free Application for Federal Student Aid 
     described in section 483(a);
       ``(4) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education;
       ``(5) activities designed to assist students participating 
     in the project in applying for admission to, and obtaining 
     financial assistance for enrollment in, graduate and 
     professional programs; and
       ``(6) activities designed to assist students enrolled in 
     two-year institutions of higher education in applying for 
     admission to, and obtaining financial assistance for 
     enrollment in, a four-year program of postsecondary 
     education.
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) individualized counseling for personal, career, and 
     academic matters provided by assigned counselors;
       ``(2) information, activities, and instruction designed to 
     acquaint students participating in the project with the range 
     of career options available to the students;
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students;
       ``(4) mentoring programs involving faculty or upper class 
     students, or a combination thereof;
       ``(5) securing temporary housing during breaks in the 
     academic year for--
       ``(A) students who are homeless children and youths (as 
     such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly 
     homeless children and youths; and
       ``(B) students who are in foster care or are aging out of 
     the foster care system; and
       ``(6) programs and activities as described in subsection 
     (b) or paragraphs (1) through (4) of this subsection that are 
     specially designed for students who are limited English 
     proficient, students from groups that are traditionally 
     underrepresented in postsecondary education, students with 
     disabilities, students who are homeless children and youths 
     (as such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)), students who are 
     in foster care or are aging out of the foster care system, or 
     other disconnected students.'';
       (4) in subsection (d)(1) (as redesignated by paragraph 
     (2)), by striking ``subsection (b)'' and inserting 
     ``subsection (c)''; and
       (5) in the matter preceding paragraph (1) of subsection (e) 
     (as redesignated by paragraph (2)), by striking ``student 
     support services projects under this chapter'' and inserting 
     ``projects under this section''.
       (e) Postbaccalaureate Achievement Program Authority.--
     Section 402E (20 U.S.C. 1070a-15) is amended--
       (1) in subsection (b)--
       (A) in the subsection heading, by inserting ``Required'' 
     before ``Services'';
       (B) in the matter preceding paragraph (1), by striking ``A 
     postbaccalaureate achievement project assisted under this 
     section may provide services such as--'' and inserting ``A 
     project assisted under this section shall provide--'';
       (C) in paragraph (5), by inserting ``and'' after the 
     semicolon;
       (D) in paragraph (6), by striking the semicolon and 
     inserting a period; and
       (E) by striking paragraphs (7) and (8);
       (2) by redesignating subsections (c) through (f) as 
     subsections (d) through (g), respectively;
       (3) by inserting after subsection (b) the following:
       ``(c) Permissible Services.--A project assisted under this 
     section may provide services such as--
       ``(1) education or counseling services designed to improve 
     the financial literacy and economic literacy of students, 
     including financial planning for postsecondary education;
       ``(2) mentoring programs involving faculty members at 
     institutions of higher education, students, or any 
     combination of such persons; and
       ``(3) exposure to cultural events and academic programs not 
     usually available to disadvantaged students.'';
       (4) in subsection (d) (as redesignated by paragraph (2))--
       (A) in the matter preceding paragraph (1), by striking 
     ``postbaccalaureate achievement''; and
       (B) in paragraph (2), by inserting after ``graduate 
     education'' the following: ``, including--
       ``(A) Alaska Natives, as defined in section 7306 of the 
     Elementary and Secondary Education Act of 1965;
       ``(B) Native Hawaiians, as defined in section 7207 of such 
     Act; and
       ``(C) Native American Pacific Islanders, as defined in 
     section 320.'';
       (5) in the matter preceding paragraph (1) of subsection (f) 
     (as redesignated by paragraph (2)), by striking 
     ``postbaccalaureate achievement project'' and inserting 
     ``project under this section''; and
       (6) in subsection (g) (as redesignated by paragraph (2))--
       (A) by striking ``402A(f)'' and inserting ``402A(g)''; and

[[Page 17127]]

       (B) by striking ``1993 through 1997'' and inserting ``2009 
     through 2014''.
       (f) Educational Opportunity Centers.--Section 402F (20 
     U.S.C. 1070a-16) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(3) to improve the financial literacy and economic 
     literacy of students, including--
       ``(A) basic personal income, household money management, 
     and financial planning skills; and
       ``(B) basic economic decisionmaking skills.''; and
       (2) in subsection (b)--
       (A) by redesignating paragraphs (5) through (10) as 
     paragraphs (6) through (11), respectively;
       (B) by inserting after paragraph (4) the following:
       ``(5) education or counseling services designed to improve 
     the financial literacy and economic literacy of students;'';
       (C) by striking paragraph (7) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(7) individualized personal, career, and academic 
     counseling;''; and
       (D) by striking paragraph (11) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(11) programs and activities as described in paragraphs 
     (1) through (10) that are specially designed for students who 
     are limited English proficient, students from groups that are 
     traditionally underrepresented in postsecondary education, 
     students with disabilities, students who are homeless 
     children and youths (as such term is defined in section 725 
     of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11434a)), students who are in foster care or are aging out of 
     the foster care system, or other disconnected students.''.
       (g) Staff Development Activities.--Section 402G(b) (20 
     U.S.C. 1070a-17(b)) is amended by adding at the end the 
     following new paragraph:
       ``(5) Strategies for recruiting and serving hard to reach 
     populations, including students who are limited English 
     proficient, students from groups that are traditionally 
     underrepresented in postsecondary education, students with 
     disabilities, students who are homeless children and youths 
     (as such term is defined in section 725 of the McKinney-Vento 
     Homeless Assistance Act (42 U.S.C. 11434a)), students who are 
     in foster care or are aging out of the foster care system, or 
     other disconnected students.''.
       (h) Reports, Evaluations, and Grants for Project 
     Improvement and Dissemination.--Section 402H (20 U.S.C. 
     1070a-18) is amended--
       (1) by striking the section heading and inserting 
     ``REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT 
     AND DISSEMINATION.'';
       (2) by redesignating subsections (a) through (c) as 
     subsections (b) through (d), respectively;
       (3) by inserting before subsection (b) (as redesignated by 
     paragraph (2)) the following:
       ``(a) Reports to the Authorizing Committees.--
       ``(1) In general.--The Secretary shall submit annually, to 
     the authorizing committees, a report that documents the 
     performance of all programs funded under this chapter. Such 
     report shall--
       ``(A) be submitted not later than 12 months after the 
     eligible entities receiving funds under this chapter are 
     required to report their performance to the Secretary;
       ``(B) focus on the programs' performance on the relevant 
     outcome criteria determined under section 402A(f)(4);
       ``(C) aggregate individual project performance data on the 
     outcome criteria in order to provide national performance 
     data for each program;
       ``(D) include, when appropriate, descriptive data, multi-
     year data, and multi-cohort data; and
       ``(E) include comparable data on the performance nationally 
     of low-income students, first-generation students, and 
     students with disabilities.
       ``(2) Information.--The Secretary shall provide, with each 
     report submitted under paragraph (1), information on the 
     impact of the secondary review process described in section 
     402A(c)(8)(C)(iv), including the number and type of secondary 
     reviews, the disposition of the secondary reviews, the effect 
     on timing of awards, and any other information the Secretary 
     determines is necessary.''; and
       (4) in subsection (b) (as redesignated by paragraph (2)), 
     by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) In general.--
       ``(A) Authorization of grants and contracts.--For the 
     purpose of improving the effectiveness of the programs and 
     projects assisted under this chapter, the Secretary shall 
     make grants to, or enter into contracts with, institutions of 
     higher education and other public and private institutions 
     and organizations to rigorously evaluate the effectiveness of 
     the programs and projects assisted under this chapter, 
     including a rigorous evaluation of the programs and projects 
     assisted under section 402C. The evaluation of the programs 
     and projects assisted under section 402C shall be implemented 
     not later than June 30, 2010.
       ``(B) Content of upward bound evaluation.--The evaluation 
     of the programs and projects assisted under section 402C that 
     is described in subparagraph (A) shall examine the 
     characteristics of the students who benefit most from the 
     Upward Bound program under section 402C and the 
     characteristics of the programs and projects that most 
     benefit students.
       ``(C) Implementation.--Each evaluation described in this 
     paragraph shall be implemented in accordance with the 
     requirements of this section.
       ``(2) Practices.--
       ``(A) In general.--The evaluations described in paragraph 
     (1) shall identify institutional, community, and program or 
     project practices that are effective in--
       ``(i) enhancing the access of low-income individuals and 
     first-generation college students to postsecondary education;
       ``(ii) the preparation of such individuals and students for 
     postsecondary education; and
       ``(iii) fostering the success of the individuals and 
     students in postsecondary education.
       ``(B) Primary purpose.--Any evaluation conducted under this 
     chapter shall have as the evaluation's primary purpose the 
     identification of particular practices that further the 
     achievement of the outcome criteria determined under section 
     402A(f)(4).
       ``(C) Dissemination and use of evaluation findings.--The 
     Secretary shall disseminate to eligible entities and make 
     available to the public the practices identified under 
     subparagraph (B). The practices may be used by eligible 
     entities that receive assistance under this chapter after the 
     dissemination.
       ``(3) Special rule related to evaluation participation.--
     The Secretary shall not require an eligible entity, as a 
     condition for receiving, or that receives, assistance under 
     any program or project under this chapter to participate in 
     an evaluation under this section that--
       ``(A) requires the eligible entity to recruit additional 
     students beyond those the program or project would normally 
     recruit; or
       ``(B) results in the denial of services for an eligible 
     student under the program or project.
       ``(4) Consideration.--When designing an evaluation under 
     this subsection, the Secretary shall continue to consider--
       ``(A) the burden placed on the program participants or the 
     eligible entity; and
       ``(B) whether the evaluation meets generally accepted 
     standards of institutional review boards.''.

     SEC. 404. GAINING EARLY AWARENESS AND READINESS FOR 
                   UNDERGRADUATE PROGRAMS.

       (a) Early Intervention and College Awareness Program 
     Authorized.--Section 404A (20 U.S.C. 1070a-21) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Program Authorized.--The Secretary is authorized, in 
     accordance with the requirements of this chapter, to 
     establish a program that encourages eligible entities to 
     provide support, and maintain a commitment, to eligible low-
     income students, including students with disabilities, to 
     assist the students in obtaining a secondary school diploma 
     (or its recognized equivalent) and to prepare for and succeed 
     in postsecondary education, by providing--
       ``(1) financial assistance, academic support, additional 
     counseling, mentoring, outreach, and supportive services to 
     secondary school students, including students with 
     disabilities, to reduce--
       ``(A) the risk of such students dropping out of school; or
       ``(B) the need for remedial education for such students at 
     the postsecondary level; and
       ``(2) information to students and their families about the 
     advantages of obtaining a postsecondary education and, 
     college financing options for the students and their 
     families.'';
       (2) in subsection (b), by striking paragraph (2) and 
     inserting the following:
       ``(2) Award period.--The Secretary may award a grant under 
     this chapter to an eligible entity described in paragraphs 
     (1) and (2) of subsection (c) for--
       ``(A) six years; or
       ``(B) in the case of an eligible entity that applies for a 
     grant under this chapter for seven years to enable the 
     eligible entity to provide services to a student through the 
     student's first year of attendance at an institution of 
     higher education, seven years.
       ``(3) Priority.--In making awards to eligible entities 
     described in subsection (c)(1), the Secretary shall--
       ``(A) give priority to eligible entities that--
       ``(i) on the day before the date of enactment of the Higher 
     Education Opportunity Act, carried out successful educational 
     opportunity programs under this chapter (as this chapter was 
     in effect on such day); and
       ``(ii) have a prior, demonstrated commitment to early 
     intervention leading to college access through collaboration 
     and replication of successful strategies; and
       ``(B) ensure that students served under this chapter on the 
     day before the date of enactment of the Higher Education 
     Opportunity Act continue to receive assistance through the 
     completion of secondary school.''; and
       (3) in subsection (c), by striking paragraph (2) and 
     inserting the following:
       ``(2) a partnership--
       ``(A) consisting of--
       ``(i) one or more local educational agencies; and
       ``(ii) one or more degree granting institutions of higher 
     education; and
       ``(B) which may include not less than two other community 
     organizations or entities, such as businesses, professional 
     organizations, State agencies, institutions or agencies 
     sponsoring programs authorized under subpart 4, or other 
     public or private agencies or organizations.''.
       (b) Requirements.--Section 404B (20 U.S.C. 1070a-22) is 
     amended--
       (1) by striking subsection (a) and inserting the following:

[[Page 17128]]

       ``(a) Funding Rules.--In awarding grants from the amount 
     appropriated under section 404H for a fiscal year, the 
     Secretary shall make available--
       ``(1) to eligible entities described in section 404A(c)(1), 
     not less than 33 percent of such amount;
       ``(2) to eligible entities described in section 404A(c)(2), 
     not less than 33 percent of such amount; and
       ``(3) to eligible entities described in paragraph (1) or 
     (2) of section 404A(c), the remainder of such amount taking 
     into consideration the number, quality, and promise of the 
     applications for the grants, and, to the extent practicable--
       ``(A) the geographic distribution of such grant awards; and
       ``(B) the distribution of such grant awards between urban 
     and rural applicants.'';
       (2) by striking subsections (b), (e), and (f);
       (3) by redesignating subsections (c), (d), and (g), as 
     subsections (b), (c), and (d), respectively;
       (4) in subsection (d)(1) (as redesignated by paragraph 
     (3))--
       (A) by striking ``and'' at the end of subparagraph (A);
       (B) in subparagraph (B)--
       (i) by inserting ``and provide the option of continued 
     services through the student's first year of attendance at an 
     institution of higher education to the extent the provision 
     of such services was described in the eligible entity's 
     application for assistance under this chapter'' after ``grade 
     level''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new subparagraph:
       ``(C) provide services under this chapter to students who 
     have received services under a previous GEAR UP grant award 
     but have not yet completed the 12th grade.''; and
       (5) by adding at the end the following:
       ``(e) Supplement, Not Supplant.--Grant funds awarded under 
     this chapter shall be used to supplement, and not supplant, 
     other Federal, State, and local funds that would otherwise be 
     expended to carry out activities assisted under this 
     chapter.''.
       (c) Application.--Section 404C (20 U.S.C. 1070a-23) is 
     amended--
       (1) in the section heading, by striking ``ELIGIBLE ENTITY 
     PLANS'' and inserting ``APPLICATIONS'';
       (2) in subsection (a)--
       (A) in the subsection heading, by striking ``Plan'' and 
     inserting ``Application'';
       (B) in paragraph (1)--
       (i) by striking ``a plan'' and inserting ``an 
     application''; and
       (ii) by striking the second sentence; and
       (C) by striking paragraph (2) and inserting the following:
       ``(2) Contents.--Each application submitted pursuant to 
     paragraph (1) shall be in such form, contain or be 
     accompanied by such information or assurances, and be 
     submitted at such time as the Secretary may reasonably 
     require. Each such application shall, at a minimum--
       ``(A) describe the activities for which assistance under 
     this chapter is sought, including how the eligible entity 
     will carry out the required activities described in section 
     404D(a);
       ``(B) describe, in the case of an eligible entity described 
     in section 404A(c)(2) that chooses to provide scholarships, 
     or an eligible entity described in section 404A(c)(1), how 
     the eligible entity will meet the requirements of section 
     404E;
       ``(C) describe, in the case of an eligible entity described 
     in section 404A(c)(2) that requests a reduced match 
     percentage under subsection (b)(2), how such reduction will 
     assist the entity to provide the scholarships described in 
     subsection (b)(2)(A)(ii);
       ``(D) provide assurances that adequate administrative and 
     support staff will be responsible for coordinating the 
     activities described in section 404D;
       ``(E) provide assurances that activities assisted under 
     this chapter will not displace an employee or eliminate a 
     position at a school assisted under this chapter, including a 
     partial displacement such as a reduction in hours, wages, or 
     employment benefits;
       ``(F) describe, in the case of an eligible entity described 
     in section 404A(c)(1) that chooses to use a cohort approach, 
     or an eligible entity described in section 404A(c)(2), how 
     the eligible entity will define the cohorts of the students 
     served by the eligible entity pursuant to section 404B(d), 
     and how the eligible entity will serve the cohorts through 
     grade 12, including--
       ``(i) how vacancies in the program under this chapter will 
     be filled; and
       ``(ii) how the eligible entity will serve students 
     attending different secondary schools;
       ``(G) describe how the eligible entity will coordinate 
     programs under this chapter with other existing Federal, 
     State, or local programs to avoid duplication and maximize 
     the number of students served;
       ``(H) provide such additional assurances as the Secretary 
     determines necessary to ensure compliance with the 
     requirements of this chapter;
       ``(I) provide information about the activities that will be 
     carried out by the eligible entity to support systemic 
     changes from which future cohorts of students will benefit; 
     and
       ``(J) describe the sources of matching funds that will 
     enable the eligible entity to meet the matching requirement 
     described in subsection (b).'';
       (3) in subsection (b)--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (1)--
       (i) by striking ``a plan'' and inserting ``an 
     application''; and
       (ii) by striking ``such plan'' and inserting ``such 
     application'';
       (B) in paragraph (1)(A), by inserting ``and may be accrued 
     over the full duration of the grant award period, except that 
     the eligible entity shall make substantial progress towards 
     meeting the matching requirement in each year of the grant 
     award period'' after ``in cash or in-kind''; and
       (C) in paragraph (2), by adding at the end the following 
     new sentence: ``The Secretary may approve an eligible 
     entity's request for a reduced match percentage--
       ``(A) at the time of application--
       ``(i) if the eligible entity demonstrates significant 
     economic hardship that precludes the eligible entity from 
     meeting the matching requirement; or
       ``(ii) if the eligible entity is described in section 
     404A(c)(2) and requests that contributions to the eligible 
     entity's scholarship fund established under section 404E be 
     matched on a two to one basis; or
       ``(B) in response to a petition by an eligible entity 
     subsequent to a grant award under this section if the 
     eligible entity demonstrates that the matching funds 
     described in its application are no longer available and the 
     eligible entity has exhausted all revenues for replacing such 
     matching funds.''; and
       (4) in subsection (c)--
       (A) in paragraph (1)--
       (i) by striking ``paid to students from State, local, 
     institutional, or private funds under this chapter'' and 
     inserting ``obligated to students from State, local, 
     institutional, or private funds under this chapter, including 
     pre-existing non-Federal financial assistance programs,''; 
     and
       (ii) by striking the semicolon at the end and inserting 
     ``including--
       ``(A) the amount contributed to a student scholarship fund 
     established under section 404E; and
       ``(B) the amount of the costs of administering the 
     scholarship program under section 404E;'';
       (B) in paragraph (2), by striking ``and'' after the 
     semicolon;
       (C) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (D) by adding at the end the following:
       ``(4) other resources recognized by the Secretary, 
     including equipment and supplies, cash contributions from 
     non-Federal sources, transportation expenses, in-kind or 
     discounted program services, indirect costs, and facility 
     usage.''.
       (d) Activities.--Section 404D (20 U.S.C. 1070a-24) is 
     amended to read as follows:

     ``SEC. 404D. ACTIVITIES.

       ``(a) Required Activities.--Each eligible entity receiving 
     a grant under this chapter shall provide comprehensive 
     mentoring, outreach, and supportive services to students 
     participating in the programs under this chapter. Such 
     activities shall include the following:
       ``(1) Providing information regarding financial aid for 
     postsecondary education to participating students in the 
     cohort described in section 404B(d)(1)(A) or to priority 
     students described in subsection (d).
       ``(2) Encouraging student enrollment in rigorous and 
     challenging curricula and coursework, in order to reduce the 
     need for remedial coursework at the postsecondary level.
       ``(3) Improving the number of participating students who--
       ``(A) obtain a secondary school diploma; and
       ``(B) complete applications for and enroll in a program of 
     postsecondary education.
       ``(4) In the case of an eligible entity described in 
     section 404A(c)(1), providing for the scholarships described 
     in section 404E.
       ``(b) Permissible Activities for States and Partnerships.--
     An eligible entity that receives a grant under this chapter 
     may use grant funds to carry out one or more of the following 
     activities:
       ``(1) Providing tutors and mentors, who may include adults 
     or former participants of a program under this chapter, for 
     eligible students.
       ``(2) Conducting outreach activities to recruit priority 
     students described in subsection (d) to participate in 
     program activities.
       ``(3) Providing supportive services to eligible students.
       ``(4) Supporting the development or implementation of 
     rigorous academic curricula, which may include college 
     preparatory, Advanced Placement, or International 
     Baccalaureate programs, and providing participating students 
     access to rigorous core academic courses that reflect 
     challenging State academic standards.
       ``(5) Supporting dual or concurrent enrollment programs 
     between the secondary school and institution of higher 
     education partners of an eligible entity described in section 
     404A(c)(2), and other activities that support participating 
     students in--
       ``(A) meeting challenging State academic standards;
       ``(B) successfully applying for postsecondary education;
       ``(C) successfully applying for student financial aid; and
       ``(D) developing graduation and career plans.
       ``(6) Providing special programs or tutoring in science, 
     technology, engineering, or mathematics.
       ``(7) In the case of an eligible entity described in 
     section 404A(c)(2), providing support for scholarships 
     described in section 404E.
       ``(8) Introducing eligible students to institutions of 
     higher education, through trips and school-based sessions.

[[Page 17129]]

       ``(9) Providing an intensive extended school day, school 
     year, or summer program that offers--
       ``(A) additional academic classes; or
       ``(B) assistance with college admission applications.
       ``(10) Providing other activities designed to ensure 
     secondary school completion and postsecondary education 
     enrollment of at-risk children, such as--
       ``(A) the identification of at-risk children;
       ``(B) after-school and summer tutoring;
       ``(C) assistance to at-risk children in obtaining summer 
     jobs;
       ``(D) academic counseling;
       ``(E) financial literacy and economic literacy education or 
     counseling;
       ``(F) volunteer and parent involvement;
       ``(G) encouraging former or current participants of a 
     program under this chapter to serve as peer counselors;
       ``(H) skills assessments;
       ``(I) personal and family counseling, and home visits;
       ``(J) staff development; and
       ``(K) programs and activities described in this subsection 
     that are specially designed for students who are limited 
     English proficient.
       ``(11) Enabling eligible students to enroll in Advanced 
     Placement or International Baccalaureate courses, or college 
     entrance examination preparation courses.
       ``(12) Providing services to eligible students in the 
     participating cohort described in section 404B(d)(1)(A), 
     through the first year of attendance at an institution of 
     higher education.
       ``(13) Fostering and improving parent and family 
     involvement in elementary and secondary education by 
     promoting the advantages of a college education, and 
     emphasizing academic admission requirements and the need to 
     take college preparation courses, through parent engagement 
     and leadership activities.
       ``(14) Disseminating information that promotes the 
     importance of higher education, explains college preparation 
     and admission requirements, and raises awareness of the 
     resources and services provided by the eligible entities to 
     eligible students, their families, and communities.
       ``(15) In the event that matching funds described in the 
     application are no longer available, engaging entities 
     described in section 404A(c)(2) in a collaborative manner to 
     provide matching resources and participate in other 
     activities authorized under this section.
       ``(c) Additional Permissible Activities for States.--In 
     addition to the required activities described in subsection 
     (a) and the permissible activities described in subsection 
     (b), an eligible entity described in section 404A(c)(1) 
     receiving funds under this chapter may use grant funds to 
     carry out one or more of the following activities:
       ``(1) Providing technical assistance to--
       ``(A) secondary schools that are located within the State; 
     or
       ``(B) partnerships described in section 404A(c)(2) that are 
     located within the State.
       ``(2) Providing professional development opportunities to 
     individuals working with eligible cohorts of students 
     described in section 404B(d)(1)(A).
       ``(3) Providing administrative support to help build the 
     capacity of eligible entities described in section 404A(c)(2) 
     to compete for and manage grants awarded under this chapter.
       ``(4) Providing strategies and activities that align 
     efforts in the State to prepare eligible students to attend 
     and succeed in postsecondary education, which may include the 
     development of graduation and career plans.
       ``(5) Disseminating information on the use of 
     scientifically valid research and best practices to improve 
     services for eligible students.
       ``(6)(A) Disseminating information on effective coursework 
     and support services that assist students in obtaining the 
     goals described in subparagraph (B)(ii).
       ``(B) Identifying and disseminating information on best 
     practices with respect to--
       ``(i) increasing parental involvement; and
       ``(ii) preparing students, including students with 
     disabilities and students who are limited English proficient, 
     to succeed academically in, and prepare financially for, 
     postsecondary education.
       ``(7) Working to align State academic standards and 
     curricula with the expectations of postsecondary institutions 
     and employers.
       ``(8) Developing alternatives to traditional secondary 
     school that give students a head start on attaining a 
     recognized postsecondary credential (including an industry-
     recognized certificate, an apprenticeship, or an associate's 
     or a bachelor's degree), including school designs that give 
     students early exposure to college-level courses and 
     experiences and allow students to earn transferable college 
     credits or an associate's degree at the same time as a 
     secondary school diploma.
       ``(9) Creating community college programs for drop-outs 
     that are personalized drop-out recovery programs that allow 
     drop-outs to complete a regular secondary school diploma and 
     begin college-level work.
       ``(d) Priority Students.--For eligible entities not using a 
     cohort approach, the eligible entity shall treat as a 
     priority student any student in secondary school who is--
       ``(1) eligible to be counted under section 1124(c) of the 
     Elementary and Secondary Education Act of 1965;
       ``(2) eligible for assistance under a State program funded 
     under part A or E of title IV of the Social Security Act (42 
     U.S.C. 601 et seq., 670 et seq.);
       ``(3) eligible for assistance under subtitle B of title VII 
     of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11431 et seq.); or
       ``(4) otherwise considered by the eligible entity to be a 
     disconnected student.
       ``(e) Allowable Providers.--In the case of eligible 
     entities described in section 404A(c)(1), the activities 
     required by this section may be provided by service providers 
     such as community-based organizations, schools, institutions 
     of higher education, public and private agencies, nonprofit 
     and philanthropic organizations, businesses, institutions and 
     agencies sponsoring programs authorized under subpart 4, and 
     other organizations the State determines appropriate.''.
       (e) Scholarship Component.--Section 404E (20 U.S.C. 1070a-
     25) is amended--
       (1) by striking subsections (e) and (f);
       (2) by redesignating subsections (b), (c), and (d) as 
     subsections (d), (f), and (g), respectively;
       (3) by inserting after subsection (a) the following:
       ``(b) Limitation.--
       ``(1) In general.--Subject to paragraph (2), each eligible 
     entity described in section 404A(c)(1) that receives a grant 
     under this chapter shall use not less than 25 percent and not 
     more than 50 percent of the grant funds for activities 
     described in section 404D (except for the activity described 
     in subsection (a)(4) of such section), with the remainder of 
     such funds to be used for a scholarship program under this 
     section in accordance with such subsection.
       ``(2) Exception.--Notwithstanding paragraph (1), the 
     Secretary may allow an eligible entity to use more than 50 
     percent of grant funds received under this chapter for such 
     activities, if the eligible entity demonstrates that the 
     eligible entity has another means of providing the students 
     with the financial assistance described in this section and 
     describes such means in the application submitted under 
     section 404C.
       ``(c) Notification of Eligibility.--Each eligible entity 
     providing scholarships under this section shall provide 
     information on the eligibility requirements for the 
     scholarships to all participating students upon the students' 
     entry into the programs assisted under this chapter.'';
       (4) in subsection (d) (as redesignated by paragraph (2)), 
     by striking ``the lesser of'' and all that follows through 
     the period at the end of paragraph (2) of such subsection (d) 
     and inserting ``the minimum Federal Pell Grant award under 
     section 401 for such award year.'';
       (5) by inserting after subsection (d) (as redesignated by 
     paragraph (2) and amended by paragraph (4)) the following:
       ``(e) Portability of Assistance.--
       ``(1) In general.--Each eligible entity described in 
     section 404A(c)(1) that receives a grant under this chapter 
     shall hold in reserve, for the students served by such grant 
     as described in section 404B(d)(1)(A) or 404D(d), an amount 
     that is not less than the minimum scholarship amount 
     described in subsection (d), multiplied by the number of 
     students the eligible entity estimates will meet the 
     requirements of paragraph (2).
       ``(2) Requirement for portability.--Funds held in reserve 
     under paragraph (1) shall be made available to an eligible 
     student when the eligible student has--
       ``(A) completed a secondary school diploma, its recognized 
     equivalent, or another recognized alternative standard for 
     individuals with disabilities; and
       ``(B) enrolled in an institution of higher education.
       ``(3) Qualified educational expenses.--Funds available to 
     an eligible student under this subsection may be used for--
       ``(A) tuition, fees, books, supplies, and equipment 
     required for the enrollment or attendance of the eligible 
     student at an institution of higher education; and
       ``(B) in the case of an eligible student with special 
     needs, expenses for special needs services that are incurred 
     in connection with such enrollment or attendance.
       ``(4) Return of funds.--
       ``(A) Redistribution.--
       ``(i) In general.--Funds held in reserve under paragraph 
     (1) that are not used by an eligible student within six years 
     of the student's scheduled completion of secondary school may 
     be redistributed by the eligible entity to other eligible 
     students.
       ``(ii) Return of excess to the secretary.--If, after 
     meeting the requirements of paragraph (1) and, if applicable, 
     redistributing excess funds in accordance with clause (i) of 
     this subparagraph, an eligible entity has funds held in 
     reserve under paragraph (1) that remain available, the 
     eligible entity shall return such remaining reserved funds to 
     the Secretary for distribution to other grantees under this 
     chapter in accordance with the funding rules described in 
     section 404B(a).
       ``(B) Nonparticipating entity.--Notwithstanding 
     subparagraph (A), in the case of an eligible entity that does 
     not receive assistance under this subpart for six fiscal 
     years, the eligible entity shall return any funds held in 
     reserve under paragraph (1) that are not awarded or obligated 
     to eligible students to the Secretary for distribution to 
     other grantees under this chapter.''; and
       (6) in subsection (g)(4) (as redesignated by paragraph 
     (2)), by striking ``early intervention component required 
     under section 404D'' and inserting ``activities required 
     under section 404D(a)''.
       (f) 21st Century Scholar Certificates.--Section 404F (20 
     U.S.C. 1070a-26) is amended by striking subsections (a) and 
     (b) and inserting the following:

[[Page 17130]]

       ``(a) In General.--An eligible entity that receives a grant 
     under this chapter shall provide certificates, to be known as 
     21st Century Scholar Certificates, to all students served by 
     the eligible entity who are participating in a program under 
     this chapter.
       ``(b) Information Required.--A 21st Century Scholar 
     Certificate shall be personalized for each student and 
     indicate the amount of Federal financial aid for college and 
     the estimated amount of any scholarship provided under 
     section 404E, if applicable, that a student may be eligible 
     to receive.''.
       (g) Evaluation.--Section 404G(c) (20 U.S.C. 1070a-27(c)) is 
     amended by adding at the end the following: ``Such evaluation 
     shall include a separate analysis of--
       ``(1) the implementation of the scholarship component 
     described in section 404E; and
       ``(2) the use of methods for complying with matching 
     requirements described in paragraphs (1) and (2) of section 
     404C(c).''.
       (h) Authorization of Appropriations.--Section 404H (20 
     U.S.C. 1070a-28) is amended by striking ``$200,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``$400,000,000 for fiscal year 2009 and such 
     sums as may be necessary for each of the five succeeding 
     fiscal years.''.

     SEC. 405. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.

       Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 
     1070a-31 et seq.) is repealed.

     SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY 
                   GRANTS.

       (a) Appropriations Authorized.--Section 413A(b)(1) (20 
     U.S.C. 1070b(b)(1)) is amended by striking ``$675,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.''.
       (b) Allowance for Books and Supplies.--Section 
     413D(c)(3)(D) (20 U.S.C. 1070b-3(c)(3)(D)) is amended by 
     striking ``$450'' and inserting ``$600''.
       (c) Technical Correction.--Section 413D(a)(1) (20 U.S.C. 
     1070b-3(a)(1)) is amended by striking ``such institution'' 
     and all that follows through the period and inserting ``such 
     institution received under subsections (a) and (b) of this 
     section for fiscal year 1999 (as such subsections were in 
     effect with respect to allocations for such fiscal year).''.

     SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP 
                   PROGRAM.

       (a) Authorization of Appropriations.--Section 415A(b) (20 
     U.S.C. 1070c(b)) is amended by striking paragraphs (1) and 
     (2) and inserting the following:
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this subpart $200,000,000 for fiscal year 2009 
     and such sums as may be necessary for each of the five 
     succeeding fiscal years.
       ``(2) Reservation.--For any fiscal year for which the 
     amount appropriated under paragraph (1) exceeds $30,000,000, 
     the excess amount shall be available to carry out section 
     415E.''.
       (b) Applications.--Section 415C(b) (20 U.S.C. 1070c-2(b)) 
     is amended--
       (1) in paragraph (2), by striking ``not in excess of $5,000 
     per academic year'' and inserting ``not to exceed the lesser 
     of $12,500 or the student's cost of attendance per academic 
     year''; and
       (2) in paragraph (9), by striking ``and'' after the 
     semicolon;
       (3) in paragraph (10)--
       (A) by striking ``a direct appropriation of''; and
       (B) by striking the period at the end and inserting ``; 
     and''; and
       (4) by adding at the end the following:
       ``(11) provides notification to eligible students that such 
     grants are--
       ``(A) Leveraging Educational Assistance Partnership Grants; 
     and
       ``(B) funded by the Federal Government, the State, and, 
     where applicable, other contributing partners.''.
       (c) Grants for Access and Persistence.--Section 415E (20 
     U.S.C. 1070c-3a) is amended to read as follows:

     ``SEC. 415E. GRANTS FOR ACCESS AND PERSISTENCE.

       ``(a) Purpose.--It is the purpose of this section to expand 
     college access and increase college persistence by making 
     allotments to States to enable the States to--
       ``(1) expand and enhance partnerships with institutions of 
     higher education, early information and intervention, 
     mentoring, or outreach programs, private corporations, 
     philanthropic organizations, and other interested parties, 
     including community-based organizations, in order to--
       ``(A) carry out activities under this section; and
       ``(B) provide coordination and cohesion among Federal, 
     State, and local governmental and private efforts that 
     provide financial assistance to help low-income students 
     attend an institution of higher education;
       ``(2) provide need-based grants for access and persistence 
     to eligible low-income students;
       ``(3) provide early notification to low-income students of 
     the students' eligibility for financial aid; and
       ``(4) encourage increased participation in early 
     information and intervention, mentoring, or outreach 
     programs.
       ``(b) Allotments to States.--
       ``(1) In general.--
       ``(A) Authorization.--From sums reserved under section 
     415A(b)(2) for each fiscal year, the Secretary shall make an 
     allotment to each State that submits an application for an 
     allotment in accordance with subsection (c) to enable the 
     State to pay the Federal share, as described in paragraph 
     (2), of the cost of carrying out the activities under 
     subsection (d).
       ``(B) Determination of allotment.--In making allotments 
     under subparagraph (A), the Secretary shall consider the 
     following:
       ``(i) Continuation of award.--If a State continues to meet 
     the specifications established in such State's application 
     under subsection (c), the Secretary shall make an allotment 
     to such State that is not less than the allotment made to 
     such State for the previous fiscal year.
       ``(ii) Priority.--The Secretary shall give priority in 
     making allotments to States that meet the requirements 
     described in paragraph (2)(B)(ii).
       ``(2) Federal share.--
       ``(A) In general.--The Federal share of the cost of 
     carrying out the activities under subsection (d) for any 
     fiscal year shall not exceed 66.66 percent.
       ``(B) Different percentages.--The Federal share under this 
     section shall be determined in accordance with the following:
       ``(i) The Federal share of the cost of carrying out the 
     activities under subsection (d) shall be 57 percent if a 
     State applies for an allotment under this section in 
     partnership with any number of degree-granting institutions 
     of higher education in the State whose combined full-time 
     enrollment represents less than a majority of all students 
     attending institutions of higher education in the State, 
     and--

       ``(I) philanthropic organizations that are located in, or 
     that provide funding in, the State; or
       ``(II) private corporations that are located in, or that do 
     business in, the State.

       ``(ii) The Federal share of the cost of carrying out the 
     activities under subsection (d) shall be 66.66 percent if a 
     State applies for an allotment under this section in 
     partnership with any number of degree-granting institutions 
     of higher education in the State whose combined full-time 
     enrollment represents a majority of all students attending 
     institutions of higher education in the State, and--

       ``(I) philanthropic organizations that are located in, or 
     that provide funding in, the State; or
       ``(II) private corporations that are located in, or that do 
     business in, the State.

       ``(C) Non-federal share.--
       ``(i) In general.--The non-Federal share under this section 
     may be provided in cash or in kind, fairly evaluated.
       ``(ii) In-kind contribution.--For the purpose of 
     calculating the non-Federal share under this subparagraph, an 
     in-kind contribution is a non-cash contribution that--

       ``(I) has monetary value, such as the provision of--

       ``(aa) room and board; or
       ``(bb) transportation passes; and

       ``(II) helps a student meet the cost of attendance at an 
     institution of higher education.

       ``(iii) Effect on need analysis.--For the purpose of 
     calculating a student's need in accordance with part F, an 
     in-kind contribution described in clause (ii) shall not be 
     considered an asset or income of the student or the student's 
     parent.
       ``(c) Application for Allotment.--
       ``(1) In general.--
       ``(A) Submission.--A State that desires to receive an 
     allotment under this section on behalf of a partnership 
     described in paragraph (3) shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Content.--An application submitted under subparagraph 
     (A) shall include the following:
       ``(i) A description of the State's plan for using the 
     allotted funds.
       ``(ii) An assurance that the State will provide matching 
     funds, in cash or in kind, from State, institutional, 
     philanthropic, or private funds, of not less than 33.33 
     percent of the cost of carrying out the activities under 
     subsection (d). The State shall specify the methods by which 
     matching funds will be paid. A State that uses non-Federal 
     funds to create or expand partnerships with entities 
     described in subsection (a)(1), in which such entities match 
     State funds for student scholarships, may apply such matching 
     funds from such entities toward fulfilling the State's 
     matching obligation under this clause.
       ``(iii) An assurance that the State will use funds provided 
     under this section to supplement, and not supplant, Federal 
     and State funds available for carrying out the activities 
     under this title.
       ``(iv) An assurance that early information and 
     intervention, mentoring, or outreach programs exist within 
     the State or that there is a plan to make such programs 
     widely available.
       ``(v) A description of the organizational structure that 
     the State has in place to administer the activities under 
     subsection (d), including a description of how the State will 
     compile information on degree completion of students 
     receiving grants under this section.
       ``(vi) A description of the steps the State will take to 
     ensure that students who receive grants under this section 
     persist to degree completion.
       ``(vii) An assurance that the State has a method in place, 
     such as acceptance of the automatic zero expected family 
     contribution determination described in section 479(c), to 
     identify eligible low-income students and award State grant 
     aid to such students.
       ``(viii) An assurance that the State will provide 
     notification to eligible low-income students that grants 
     under this section are--

[[Page 17131]]

       ``(I) Leveraging Educational Assistance Partnership Grants; 
     and
       ``(II) funded by the Federal Government and the State, and, 
     where applicable, other contributing partners.

       ``(2) State agency.--The State agency that submits an 
     application for a State under section 415C(a) shall be the 
     same State agency that submits an application under paragraph 
     (1) for such State.
       ``(3) Partnership.--In applying for an allotment under this 
     section, the State agency shall apply for the allotment in 
     partnership with--
       ``(A) not less than one public and one private degree-
     granting institution of higher education that are located in 
     the State, if applicable;
       ``(B) new or existing early information and intervention, 
     mentoring, or outreach programs located in the State; and
       ``(C) not less than one--
       ``(i) philanthropic organization located in, or that 
     provides funding in, the State; or
       ``(ii) private corporation located in, or that does 
     business in, the State.
       ``(4) Roles of partners.--
       ``(A) State agency.--A State agency that is in a 
     partnership receiving an allotment under this section--
       ``(i) shall--

       ``(I) serve as the primary administrative unit for the 
     partnership;
       ``(II) provide or coordinate non-Federal share funds, and 
     coordinate activities among partners;
       ``(III) encourage each institution of higher education in 
     the State to participate in the partnership;
       ``(IV) make determinations and early notifications of 
     assistance as described under subsection (d)(2); and
       ``(V) annually report to the Secretary on the partnership's 
     progress in meeting the purpose of this section; and

       ``(ii) may provide early information and intervention, 
     mentoring, or outreach programs.
       ``(B) Degree-granting institutions of higher education.--A 
     degree-granting institution of higher education that is in a 
     partnership receiving an allotment under this section--
       ``(i) shall--

       ``(I) recruit and admit participating qualified students 
     and provide such additional institutional grant aid to 
     participating students as agreed to with the State agency;
       ``(II) provide support services to students who receive 
     grants for access and persistence under this section and are 
     enrolled at such institution; and
       ``(III) assist the State in the identification of eligible 
     students and the dissemination of early notifications of 
     assistance as agreed to with the State agency; and

       ``(ii) may provide funding for early information and 
     intervention, mentoring, or outreach programs or provide such 
     services directly.
       ``(C) Programs.--An early information and intervention, 
     mentoring, or outreach program that is in a partnership 
     receiving an allotment under this section shall provide 
     direct services, support, and information to participating 
     students.
       ``(D) Philanthropic organization or private corporation.--A 
     philanthropic organization or private corporation that is in 
     a partnership receiving an allotment under this section shall 
     provide funds for grants for access and persistence for 
     participating students, or provide funds or support for early 
     information and intervention, mentoring, or outreach 
     programs.
       ``(d) Authorized Activities.--
       ``(1) In general.--
       ``(A) Establishment of partnership.--Each State receiving 
     an allotment under this section shall use the funds to 
     establish a partnership to award grants for access and 
     persistence to eligible low-income students in order to 
     increase the amount of financial assistance such students 
     receive under this subpart for undergraduate education 
     expenses.
       ``(B) Amount of grants.--The amount of a grant for access 
     and persistence awarded by a State to a student under this 
     section shall be not less than--
       ``(i) the average undergraduate tuition and mandatory fees 
     at the public institutions of higher education in the State 
     where the student resides that are of the same type of 
     institution as the institution of higher education the 
     student attends; minus
       ``(ii) other Federal and State aid the student receives.
       ``(C) Special rules.--
       ``(i) Partnership institutions.--A State receiving an 
     allotment under this section may restrict the use of grants 
     for access and persistence under this section by awarding the 
     grants only to students attending institutions of higher 
     education that are participating in the partnership.
       ``(ii) Out-of-state institutions.--If a State provides 
     grants through another program under this subpart to students 
     attending institutions of higher education located in another 
     State, grants awarded under this section may be used at 
     institutions of higher education located in another State.
       ``(2) Early notification.--
       ``(A) In general.--Each State receiving an allotment under 
     this section shall annually notify low-income students in 
     grades seven through 12 in the State, and their families, of 
     their potential eligibility for student financial assistance, 
     including an access and persistence grant, to attend an 
     institution of higher education.
       ``(B) Content of notice.--The notice under subparagraph 
     (A)--
       ``(i) shall include--

       ``(I) information about early information and intervention, 
     mentoring, or outreach programs available to the student;
       ``(II) information that a student's eligibility for a grant 
     for access and persistence is enhanced through participation 
     in an early information and intervention, mentoring, or 
     outreach program;
       ``(III) an explanation that student and family eligibility 
     for, and participation in, other Federal means-tested 
     programs may indicate eligibility for a grant for access and 
     persistence and other student aid programs;
       ``(IV) a nonbinding estimate of the total amount of 
     financial aid that a low-income student with a similar income 
     level may expect to receive, including an estimate of the 
     amount of a grant for access and persistence and an estimate 
     of the amount of grants, loans, and all other available types 
     of aid from the major Federal and State financial aid 
     programs;
       ``(V) an explanation that in order to be eligible for a 
     grant for access and persistence, at a minimum, a student 
     shall--

       ``(aa) meet the requirement under paragraph (3);
       ``(bb) graduate from secondary school; and
       ``(cc) enroll at an institution of higher education--
       ``(AA) that is a partner in the partnership; or
       ``(BB) with respect to which attendance is permitted under 
     subsection (d)(1)(C)(ii);

       ``(VI) information on any additional requirements (such as 
     a student pledge detailing student responsibilities) that the 
     State may impose for receipt of a grant for access and 
     persistence under this section; and
       ``(VII) instructions on how to apply for a grant for access 
     and persistence and an explanation that a student is required 
     to file a Free Application for Federal Student Aid authorized 
     under section 483(a) to be eligible for such grant and 
     assistance from other Federal and State financial aid 
     programs; and

       ``(ii) may include a disclaimer that grant awards for 
     access and persistence are contingent on--

       ``(I) a determination of the student's financial 
     eligibility at the time of the student's enrollment at an 
     institution of higher education that is a partner in the 
     partnership or qualifies under subsection (d)(1)(C)(ii);
       ``(II) annual Federal and State spending for higher 
     education; and
       ``(III) other aid received by the student at the time of 
     the student's enrollment at such institution of higher 
     education.

       ``(3) Eligibility.--In determining which students are 
     eligible to receive grants for access and persistence, the 
     State shall ensure that each such student complies with the 
     following subparagraph (A) or (B):
       ``(A) Meets not less than two of the following criteria, 
     with priority given to students meeting all of the following 
     criteria:
       ``(i) Has an expected family contribution equal to zero, as 
     determined under part F, or a comparable alternative based 
     upon the State's approved criteria in section 415C(b)(4).
       ``(ii) Qualifies for the State's maximum undergraduate 
     award, as authorized under section 415C(b).
       ``(iii) Is participating in, or has participated in, a 
     Federal, State, institutional, or community early information 
     and intervention, mentoring, or outreach program, as 
     recognized by the State agency administering activities under 
     this section.
       ``(B) Is receiving, or has received, a grant for access and 
     persistence under this section, in accordance with paragraph 
     (5).
       ``(4) Grant award.--Once a student, including those 
     students who have received early notification under paragraph 
     (2) from the State, applies for admission to an institution 
     that is a partner in the partnership, files a Free 
     Application for Federal Student Aid and any related State 
     form, and is determined eligible by the State under paragraph 
     (3), the State shall--
       ``(A) issue the student a preliminary award certificate for 
     a grant for access and persistence with estimated award 
     amounts; and
       ``(B) inform the student that payment of the grant for 
     access and persistence award amounts is subject to 
     certification of enrollment and award eligibility by the 
     institution of higher education.
       ``(5) Duration of award.--An eligible student who receives 
     a grant for access and persistence under this section shall 
     receive such grant award for each year of such student's 
     undergraduate education in which the student remains eligible 
     for assistance under this title, including pursuant to 
     section 484(c), and remains financially eligible as 
     determined by the State, except that the State may impose 
     reasonable time limits to degree completion.
       ``(e) Administrative Cost Allowance.--A State that receives 
     an allotment under this section may reserve not more than two 
     percent of the funds made available annually through the 
     allotment for State administrative functions required to 
     carry out this section.
       ``(f) Statutory and Regulatory Relief for Institutions of 
     Higher Education.--The Secretary may grant, upon the request 
     of an institution of higher education that is in a 
     partnership described in subsection (b)(2)(B)(ii) and that 
     receives an allotment under this section, a waiver for such 
     institution from statutory or regulatory requirements that 
     inhibit the ability of the institution to successfully and 
     efficiently participate in the activities of the partnership.
       ``(g) Applicability Rule.--The provisions of this subpart 
     that are not inconsistent with this section shall apply to 
     the program authorized by this section.

[[Page 17132]]

       ``(h) Maintenance of Effort Requirement.--Each State 
     receiving an allotment under this section for a fiscal year 
     shall provide the Secretary with an assurance that the 
     aggregate amount expended per student or the aggregate 
     expenditures by the State, from funds derived from non-
     Federal sources, for the authorized activities described in 
     subsection (d) for the preceding fiscal year were not less 
     than the amount expended per student or the aggregate 
     expenditure by the State for the activities for the second 
     preceding fiscal year.
       ``(i) Special Rule.--Notwithstanding subsection (h), for 
     purposes of determining a State's share of the cost of the 
     authorized activities described in subsection (d), the State 
     shall consider only those expenditures from non-Federal 
     sources that exceed the State's total expenditures for need-
     based grants, scholarships, and work-study assistance for 
     fiscal year 1999 (including any such assistance provided 
     under this subpart).
       ``(j) Continuation and Transition.--For the two-year period 
     that begins on the date of enactment of the Higher Education 
     Opportunity Act, the Secretary shall continue to award grants 
     under section 415E of the Higher Education Act of 1965 as 
     such section existed on the day before the date of enactment 
     of the Higher Education Opportunity Act to States that choose 
     to apply for grants under such predecessor section.
       ``(k) Reports.--Not later than three years after the date 
     of enactment of the Higher Education Opportunity Act and 
     annually thereafter, the Secretary shall submit a report 
     describing the activities and the impact of the partnerships 
     under this section to the authorizing committees.''.

     SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE 
                   ENGAGED IN MIGRANT AND SEASONAL FARMWORK.

       Section 418A (20 U.S.C. 1070d-2) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)(B)(i), by striking ``parents'' and 
     inserting ``immediate family'';
       (B) in paragraph (3)(B), by inserting ``(including 
     preparation for college entrance examinations)'' after 
     ``college program'';
       (C) in paragraph (5), by striking ``weekly'';
       (D) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (E) in paragraph (8)--
       (i) by inserting ``(such as transportation and child 
     care)'' after ``services''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (F) by adding at the end the following:
       ``(9) other activities to improve persistence and retention 
     in postsecondary education.'';
       (2) in subsection (c)--
       (A) in paragraph (1)--
       (i) in subparagraph (A)--

       (I) by striking ``parents'' and inserting ``immediate 
     family''; and
       (II) by striking ``(or such part's predecessor 
     authority)'';

       (ii) in subparagraph (B)--

       (I) in the matter preceding clause (i), by inserting ``to 
     improve placement, persistence, and retention in 
     postsecondary education,'' after ``services''; and
       (II) in clause (i), by striking ``and career'' and 
     inserting ``career, and economic education or personal 
     finance'';

       (iii) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (iv) by redesignating subparagraph (F) as subparagraph (G);
       (v) by inserting after subparagraph (E) the following:
       ``(F) internships; and''; and
       (vi) in subparagraph (G) (as redesignated by clause (iv)), 
     by striking ``support services'' and inserting ``essential 
     supportive services (such as transportation and child care)'' 
     ; and
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``, and coordinating such services, assistance, 
     and aid with other non-program services, assistance, and aid, 
     including services, assistance, and aid provided by 
     community-based organizations, which may include mentoring 
     and guidance; and''; and
       (iii) by adding at the end the following:
       ``(C) for students attending two-year institutions of 
     higher education, encouraging the students to transfer to 
     four-year institutions of higher education, where 
     appropriate, and monitoring the rate of transfer of such 
     students.'';
       (3) in subsection (e), by striking ``section 402A(c)(1)'' 
     and inserting ``section 402A(c)(2)'';
       (4) in subsection (f)--
       (A) in paragraph (1), by striking ``$150,000'' and 
     inserting ``$180,000''; and
       (B) in paragraph (2), by striking ``$150,000'' and 
     inserting ``$180,000'';
       (5) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively;
       (6) by inserting after subsection (f) the following:
       ``(g) Reservation and Allocation of Funds.--From the 
     amounts made available under subsection (i), the Secretary--
       ``(1) may reserve not more than a total of \1/2\ of one 
     percent for outreach activities, technical assistance, and 
     professional development programs relating to the programs 
     under subsection (a);
       ``(2) for any fiscal year for which the amount appropriated 
     to carry out this section is equal to or greater than 
     $40,000,000, shall, in awarding grants from the remainder of 
     such amounts--
       ``(A) make available not less than 45 percent of such 
     remainder for the high school equivalency programs and not 
     less than 45 percent of such remainder for the college 
     assistance migrant programs;
       ``(B) award the rest of such remainder for high school 
     equivalency programs or college assistance migrant programs 
     based on the number, quality, and promise of the 
     applications; and
       ``(C) consider the need to provide an equitable geographic 
     distribution of such grants; and
       ``(3) for any fiscal year for which the amount appropriated 
     to carry out this section is less than $40,000,000, shall, in 
     awarding grants from the remainder of such amounts make 
     available the same percentage of funds to the high school 
     equivalency program and to the college assistance migrant 
     program as was made available for each such program for the 
     fiscal year preceding the fiscal year for which the grant was 
     made.'';
       (7) by striking subsection (h) (as redesignated by 
     paragraph (5)) and inserting the following:
       ``(h) Data Collection.--The Secretary shall--
       ``(1) annually collect data on persons receiving services 
     authorized under this subpart regarding such persons' rates 
     of secondary school graduation, entrance into postsecondary 
     education, and completion of postsecondary education, as 
     applicable;
       ``(2) not less often than once every two years, prepare and 
     submit to the authorizing committees a report based on the 
     most recently available data under paragraph (1); and
       ``(3) make such report available to the public.''; and
       (8) by striking subsection (i) (as redesignated by 
     paragraph (5)) and inserting the following:
       ``(i) Authorization of Appropriations.--For the purpose of 
     making grants and contracts under this section, there are 
     authorized to be appropriated $75,000,000 for fiscal year 
     2009 and such sums as may be necessary for the each of the 
     five succeeding fiscal years.''.

     SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

       (a) Eligibility of Scholars.--Section 419F(a) (20 U.S.C. 
     1070d-36(a)) is amended by inserting ``(or a home school, 
     whether treated as a home school or a private school under 
     State law)'' after ``public or private secondary school''.
       (b) Authorization of Appropriations.--Section 419K (20 
     U.S.C. 1070d-41) is amended by striking ``$45,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.''.

     SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

       (a) Minimum Grant.--Section 419N(b)(2)(B) (20 U.S.C. 
     1070e(b)(2)(B)) is amended--
       (1) by striking ``A grant'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), a 
     grant''; and
       (2) by adding at the end the following:
       ``(ii) Increase trigger.--For any fiscal year for which the 
     amount appropriated under the authority of subsection (g) is 
     equal to or greater than $20,000,000, a grant under this 
     section shall be awarded in an amount that is not less than 
     $30,000.''.
       (b) Eligible Institutions.--Section 419N(b)(4) (20 U.S.C. 
     1070e(b)(4)) is amended by inserting ``, except that for any 
     fiscal year for which the amount appropriated to carry out 
     this section is equal to or greater than $20,000,000, this 
     sentence shall be applied by substituting `$250,000' for 
     `$350,000' '' before the period.
       (c) Definition of Low-Income Student.--Paragraph (7) of 
     section 419N(b) (20 U.S.C. 1070e(b)) is amended to read as 
     follows:
       ``(7) Definition of low-income student.--For the purpose of 
     this section, the term `low-income student' means a student--
       ``(A) who is eligible to receive a Federal Pell Grant for 
     the award year for which the determination is made; or
       ``(B) who would otherwise be eligible to receive a Federal 
     Pell Grant for the award year for which the determination is 
     made, except that the student fails to meet the requirements 
     of--
       ``(i) section 401(c)(1) because the student is enrolled in 
     a graduate or first professional course of study; or
       ``(ii) section 484(a)(5) because the student is in the 
     United States for a temporary purpose.''.
       (d) Publicity.--Section 419N(b) (20 U.S.C. 1070e(b)) is 
     further amended by adding at the end the following new 
     paragraph:
       ``(8) Publicity.--The Secretary shall publicize the 
     availability of grants under this section in appropriate 
     periodicals, in addition to publication in the Federal 
     Register, and shall inform appropriate educational 
     organizations of such availability.''.
       (e) Reporting Requirements.--Section 419N(e) (20 U.S.C. 
     1070e(e)) is amended--
       (1) in paragraph (1)(A), by striking ``18 months,'' and all 
     that follows through the end and inserting ``annually.''; and
       (2) in paragraph (2)--
       (A) by striking ``the third annual grant payment'' and 
     inserting ``continuation awards''; and
       (B) by striking ``the 18-month report'' and inserting ``the 
     reports''.
       (f) Authorization of Appropriations.--Section 419N(g) (20 
     U.S.C. 1070e(g)) is amended by striking ``$45,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.''.

     SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.

       Subpart 8 of part A of title IV (20 U.S.C. 1070f et seq.) 
     is repealed.

[[Page 17133]]



     SEC. 412. TEACH GRANTS.

       (a) Amendments.--Subpart 9 of part A of title IV (20 U.S.C. 
     1070g et seq.) is amended--
       (1) in section 420N (20 U.S.C. 1070g-2)--
       (A) in subsection (b)--
       (i) in paragraph (1)(E), by striking ``and'' after the 
     semicolon;
       (ii) in paragraph (2), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following new paragraph:
       ``(3) contains, or is accompanied by, a plain-language 
     disclosure form developed by the Secretary that clearly 
     describes the nature of the TEACH Grant award, the service 
     obligation, and the loan repayment requirements that are the 
     consequence of the failure to complete the service 
     obligation.''; and
       (B) by adding at the end the following new subsection:
       ``(d) Additional Administrative Provisions.--
       ``(1) Change of high-need designation.--If a recipient of 
     an initial grant under this subpart has acquired an academic 
     degree, or expertise, in a field that was, at the time of the 
     recipient's application for that grant, designated as high 
     need in accordance with subsection (b)(1)(C)(vii), but is no 
     longer so designated, the grant recipient may fulfill the 
     service obligation described in subsection (b)(1) by teaching 
     in that field.
       ``(2) Extenuating circumstances.--The Secretary shall 
     establish, by regulation, categories of extenuating 
     circumstances under which a recipient of a grant under this 
     subpart who is unable to fulfill all or part of the 
     recipient's service obligation may be excused from fulfilling 
     that portion of the service obligation.''; and
       (2) by adding at the end the following new section:

     ``SEC. 420P. PROGRAM REPORT.

       ``Not later than two years after the date of enactment of 
     the Higher Education Opportunity Act and every two years 
     thereafter, the Secretary shall prepare and submit to the 
     authorizing committees a report on TEACH grants with respect 
     to the schools and students served by recipients of such 
     grants. Such report shall take into consideration information 
     related to--
       ``(1) the number of TEACH grant recipients;
       ``(2) the degrees obtained by such recipients;
       ``(3) the location, including the school, local educational 
     agency, and State, where the recipients completed the service 
     agreed to under section 420N(b) and the subject taught;
       ``(4) the duration of such service; and
       ``(5) any other data necessary to conduct such 
     evaluation.''.
       (b) Effective Date.--The amendments made by subsection 
     (a)(1) shall take effect on July 1, 2010.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

     SEC. 421. LIMITATIONS ON AMOUNTS OF LOANS COVERED BY FEDERAL 
                   INSURANCE.

       Section 424(a) (20 U.S.C. 1074(a)) is amended--
       (1) by striking ``2012'' and inserting ``2014''; and
       (2) by striking ``2016'' and inserting ``2018''.
         SEC. 422. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST 
           COSTS.
       (a) Definitions.--
       (1) Amendments.--Subparagraph (C) of section 428(a)(2) (20 
     U.S.C. 1078(a)(2)) is amended to read as follows:
       ``(C) For the purpose of this paragraph--
       ``(i) a student's cost of attendance shall be determined 
     under section 472;
       ``(ii) a student's estimated financial assistance means, 
     for the period for which the loan is sought--
       ``(I) the amount of assistance such student will receive 
     under subpart 1 of part A (as determined in accordance with 
     section 484(b)), subpart 3 of part A, and parts C and E; plus
       ``(II) other scholarship, grant, or loan assistance, but 
     excluding--

       ``(aa) any national service education award or post-service 
     benefit under title I of the National and Community Service 
     Act of 1990; and
       ``(bb) any veterans' education benefits as defined in 
     section 480(c); and

       ``(iii) the determination of need and of the amount of a 
     loan by an eligible institution under subparagraph (B) with 
     respect to a student shall be calculated in accordance with 
     part F.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall take effect on July 1, 2010.
       (b) Duration of Authority To Make Interest Subsidized 
     Loans.--Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended--
       (1) by striking ``2012'' and inserting ``2014''; and
       (2) by striking ``2016'' and inserting ``2018''.
       (c) Insurance Program Agreements.--
       (1) Deferment information requirements.--Section 
     428(b)(1)(Y) (20 U.S.C. 1078(b)(1)(Y)) is amended--
       (A) by striking clause (i) and inserting the following:
       ``(i) the lender shall determine the eligibility of a 
     borrower for a deferment described in subparagraph (M)(i) 
     based on--

       ``(I) receipt of a request for deferment from the borrower 
     and documentation of the borrower's eligibility for the 
     deferment;
       ``(II) receipt of a newly completed loan application that 
     documents the borrower's eligibility for a deferment;
       ``(III) receipt of student status information documenting 
     that the borrower is enrolled on at least a half-time basis; 
     or
       ``(IV) the lender's confirmation of the borrower's half-
     time enrollment status through use of the National Student 
     Loan Data System, if the confirmation is requested by the 
     institution of higher education;'';

       (B) in clause (ii), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(iii) the lender shall, at the time the lender grants a 
     deferment to a borrower who received a loan under section 
     428H and is eligible for a deferment under subparagraph (M) 
     of this paragraph, provide information to the borrower to 
     assist the borrower in understanding the impact of the 
     capitalization of interest on the borrower's loan principal 
     and on the total amount of interest to be paid during the 
     life of the loan.''.
       (2) Transfer information requirements.--Section 
     428(b)(2)(F)(i) (20 U.S.C. 1078(b)(2)(F)(i)) is amended--
       (A) in subclause (III), by striking ``and'' after the 
     semicolon;
       (B) in subclause (IV), by striking ``and'' after the 
     semicolon; and
       (C) by adding at the end the following:

       ``(V) the effective date of the transfer;
       ``(VI) the date on which the current servicer (as of the 
     date of the notice) will stop accepting payments; and
       ``(VII) the date on which the new servicer will begin 
     accepting payments; and''.

       (d) Restrictions on Inducements, Payments, Mailings, and 
     Advertising.--Paragraph (3) of section 428(b) (20 U.S.C. 
     1078(b)(3)) is amended to read as follows:
       ``(3) Restrictions on inducements, payments, mailings, and 
     advertising.--A guaranty agency shall not--
       ``(A) offer, directly or indirectly, premiums, payments, 
     stock or other securities, prizes, travel, entertainment 
     expenses, tuition payment or reimbursement, or other 
     inducements to--
       ``(i) any institution of higher education or the employees 
     of an institution of higher education in order to secure 
     applicants for loans made under this part; or
       ``(ii) any lender, or any agent, employee, or independent 
     contractor of any lender or guaranty agency, in order to 
     administer or market loans made under this part (other than a 
     loan made as part of the guaranty agency's lender-of-last-
     resort program pursuant to section 428(j)), for the purpose 
     of securing the designation of the guaranty agency as the 
     insurer of such loans;
       ``(B) conduct unsolicited mailings, by postal or electronic 
     means, of student loan application forms to students enrolled 
     in secondary schools or postsecondary educational 
     institutions, or to the families of such students, except 
     that applications may be mailed, by postal or electronic 
     means, to students or borrowers who have previously received 
     loans guaranteed under this part by the guaranty agency;
       ``(C) perform, for an institution of higher education 
     participating in a program under this title, any function 
     that such institution is required to perform under this 
     title, except that the guaranty agency may perform functions 
     on behalf of such institution in accordance with section 
     485(b);
       ``(D) pay, on behalf of an institution of higher education, 
     another person to perform any function that such institution 
     is required to perform under this title, except that the 
     guaranty agency may perform functions on behalf of such 
     institution in accordance with section 485(b); or
       ``(E) conduct fraudulent or misleading advertising 
     concerning loan availability, terms, or conditions.
     It shall not be a violation of this paragraph for a guaranty 
     agency to provide technical assistance to institutions of 
     higher education comparable to the technical assistance 
     provided to institutions of higher education by the 
     Department.''.
       (e) Information Regarding Income-Based Repayment Plans.--
       (1) In general.--Section 428(b)(9)(A) (20 U.S.C. 
     1078(b)(9)(A)) is amended--
       (A) in clause (iii), by striking ``and'' after the 
     semicolon;
       (B) in clause (iv), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(v) beginning July 1, 2009, an income-based repayment 
     plan that enables a borrower who has a partial financial 
     hardship to make a lower monthly payment in accordance with 
     section 493C, except that the plan described in this clause 
     shall not be available to a borrower for a loan under section 
     428B made on behalf of a dependent student or for a 
     consolidation loan under section 428C, if the proceeds of 
     such loan were used to discharge the liability of a loan 
     under section 428B made on behalf of a dependent student.''.
       (2) Conforming amendment.--Section 428(b)(1)(L)(i) (20 
     U.S.C. 1078(b)(1)(L)(i)) is amended by striking ``clause (ii) 
     or (iii)'' and inserting ``clause (ii), (iii), or (v)''.
       (f) Forbearance Information Requirements in Guaranty 
     Agreements.--Section 428(c) (20 U.S.C. 1078(c)) is amended--
       (1) in paragraph (2)(H)(i), by striking ``preclaims'' and 
     inserting ``default aversion''; and
       (2) in paragraph (3)(C)--
       (A) in clause (i), by striking ``and'' after the semicolon;
       (B) in clause (ii), by striking ``and'' after the 
     semicolon; and
       (C) by inserting after clause (ii) the following:
       ``(iii) the lender shall, at the time of granting a 
     borrower forbearance, provide information to the borrower to 
     assist the borrower in understanding the impact of 
     capitalization of interest

[[Page 17134]]

     on the borrower's loan principal and total amount of interest 
     to be paid during the life of the loan; and
       ``(iv) the lender shall contact the borrower not less often 
     than once every 180 days during the period of forbearance to 
     inform the borrower of--

       ``(I) the amount of unpaid principal and the amount of 
     interest that has accrued since the last statement of such 
     amounts provided to the borrower by the lender;
       ``(II) the fact that interest will accrue on the loan for 
     the period of forbearance;
       ``(III) the amount of interest that will be capitalized, 
     and the date on which capitalization will occur;
       ``(IV) the option of the borrower to pay the interest that 
     has accrued before the interest is capitalized; and
       ``(V) the borrower's option to discontinue the forbearance 
     at any time; and''.

       (g) Applicability of Usury Laws.--
       (1) Amendment.--Section 428(d) (20 U.S.C. 1078(d)) is 
     amended by inserting ``and section 207 of the Servicemembers 
     Civil Relief Act (50 U.S.C. App. 527)'' after ``this Act''.
       (2) Conforming amendment.--Section 438 (20 U.S.C. 1087-1) 
     is amended by adding at the end the following new subsection:
       ``(g) Special Rule.--With respect to any loan made under 
     this part for which the interest rate is determined under the 
     Servicemembers Civil Relief Act (50 U.S.C. App. 527), the 
     applicable interest rate to be subtracted in calculating the 
     special allowance for such loan under this section shall be 
     the interest rate determined under that Act for such loan.''.
       (3) Effective dates.--The amendment made by paragraph (1) 
     shall take effect on the date of enactment of this Act, and 
     the amendment made by paragraph (2) shall take effect for 
     loans for which the first disbursement is made on or after 
     July 1, 2008.
       (h) Repeal of Duplicative Notice Requirement.--Subsection 
     (e) of section 428 (20 U.S.C. 1078(e)) is repealed.
       (i) Information on Defaults.--Section 428(k) (20 U.S.C. 
     1078(k)) is amended by adding at the end the following:
       ``(4) Provision of information to borrowers in default.--
     Each guaranty agency that has received a default claim from a 
     lender regarding a borrower, shall provide the borrower in 
     default, on not less than two separate occasions, with a 
     notice, in simple and understandable terms, of not less than 
     the following information:
       ``(A) The options available to the borrower to remove the 
     borrower's loan from default.
       ``(B) The relevant fees and conditions associated with each 
     option.''.
       (j) Authority to Require Income-Based Repayment.--Section 
     428(m) (20 U.S.C. 1078(m)) is amended--
       (1) in the subsection heading, by inserting ``and Income-
     Based'' after ``Income Contingent'';
       (2) in paragraph (1)--
       (A) by inserting ``or income-based repayment plan'' before 
     ``, the terms and conditions''; and
       (B) by inserting ``or an income-based repayment plan under 
     section 493C, as the case may be'' before the period at the 
     end; and
       (3) in the paragraph heading of paragraph (2), by inserting 
     ``or income-based'' after ``income contingent''.

     SEC. 423. VOLUNTARY FLEXIBLE AGREEMENTS.

       Section 428A(a) (20 U.S.C. 1078-1(a)) is amended by adding 
     at the end the following:
       ``(3) Report required.--
       ``(A) In general.--The Secretary, in consultation with the 
     guaranty agencies operating under voluntary flexible 
     agreements, shall report on an annual basis to the 
     authorizing committees regarding the program outcomes that 
     the voluntary flexible agreements have had with respect to--
       ``(i) program integrity and program and cost efficiencies, 
     delinquency prevention, and default aversion, including a 
     comparison of such outcomes to such outcomes for each 
     guaranty agency operating under an agreement under subsection 
     (b) or (c) of section 428;
       ``(ii) consumer education programs described in section 
     433A; and
       ``(iii) the availability and delivery of student financial 
     aid.
       ``(B) Contents.--Each report described in subparagraph (A) 
     shall include--
       ``(i) a description of each voluntary flexible agreement 
     and the performance goals established by the Secretary for 
     each agreement;
       ``(ii) a list of--

       ``(I) guaranty agencies operating under voluntary flexible 
     agreements;
       ``(II) the specific statutory or regulatory waivers 
     provided to each such guaranty agency; and
       ``(III) any other waivers provided to other guaranty 
     agencies under paragraph (1);

       ``(iii) a description of the standards by which each 
     guaranty agency's performance under the guaranty agency's 
     voluntary flexible agreement was assessed and the degree to 
     which each guaranty agency achieved the performance 
     standards;
       ``(iv) an analysis of the fees paid by the Secretary, and 
     the costs and efficiencies achieved under each voluntary 
     flexible agreement; and
       ``(v) an identification of promising practices for program 
     improvement that could be replicated by other guaranty 
     agencies.''.

     SEC. 424. FEDERAL PLUS LOANS.

       (a) Amendments.--Section 428B (20 U.S.C. 1078-2) is 
     amended--
       (1) in subsection (a)(3)(B)(i), by striking subclause (II) 
     and inserting the following:
       ``(II) does not otherwise have an adverse credit history, 
     as determined by the lender in accordance with the 
     regulations promulgated pursuant to paragraph (1)(A), as such 
     regulations were in effect on the day before the date of 
     enactment of the Ensuring Continued Access to Student Loans 
     Act of 2008.''; and
       (2) in subsection (d), by striking paragraphs (1) and (2) 
     and inserting the following:
       ``(1) Commencement of repayment.--Repayment of principal on 
     loans made under this section shall commence not later than 
     60 days after the date such loan is disbursed by the lender, 
     subject to deferral--
       ``(A)(i) during any period during which the parent borrower 
     or the graduate or professional student borrower meets the 
     conditions required for a deferral under section 427(a)(2)(C) 
     or 428(b)(1)(M); and
       ``(ii) upon the request of the parent borrower, during any 
     period during which the student on whose behalf the loan was 
     borrowed by the parent borrower meets the conditions required 
     for a deferral under section 427(a)(2)(C)(i)(I) or 
     428(b)(1)(M)(i)(I); and
       ``(B)(i) in the case of a parent borrower, upon the request 
     of the parent borrower, during the 6-month period beginning 
     on the later of--
       ``(I) the day after the date the student on whose behalf 
     the loan was borrowed ceases to carry at least one-half the 
     normal full-time academic workload (as determined by the 
     institution); or
       ``(II) if the parent borrower is also a student, the day 
     after the date such parent borrower ceases to carry at least 
     one-half such a workload; and
       ``(ii) in the case of a graduate or professional student 
     borrower, during the 6-month period beginning on the day 
     after the date such student ceases to carry at least one-half 
     the normal full-time academic workload (as determined by the 
     institution).
       ``(2) Capitalization of interest.--
       ``(A) In general.--Interest on loans made under this 
     section for which payments of principal are deferred pursuant 
     to paragraph (1) shall, if agreed upon by the borrower and 
     the lender--
       ``(i) be paid monthly or quarterly; or
       ``(ii) be added to the principal amount of the loan not 
     more frequently than quarterly by the lender.
       ``(B) Insurable limits.--Capitalization of interest under 
     this paragraph shall not be deemed to exceed the annual 
     insurable limit on account of the borrower.''.
       (b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C. 
     1078(b)(7)(C)) is amended by striking ``section'' and all 
     that follows through ``428C'' and inserting ``section 428B or 
     428C''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect for loans for which the first disbursement 
     is made on or after July 1, 2008.

     SEC. 425. FEDERAL CONSOLIDATION LOANS.

       (a) Eligible Borrower.--Section 428C(a)(3)(B)(i)(V) (20 
     U.S.C. 1078-3(a)(3)(B)(i)(V)) is amended--
       (1) in item (aa), by striking ``or'' after the semicolon;
       (2) in item (bb), by striking the period and inserting ``; 
     or''; and
       (3) by adding at the end the following:
       ``(cc) for the purpose of using the no accrual of interest 
     for active duty service members benefit offered under section 
     455(o).''.
       (b) Consolidation Loan Lender Agreements.--
       (1) In general.--Section 428C(b)(1) (20 U.S.C. 1078-
     3(b)(1)) is amended--
       (A) in subparagraph (E), by striking ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (F) as subparagraph (G); 
     and
       (C) by inserting after subparagraph (E) the following:
       ``(F) that the lender shall disclose to a prospective 
     borrower, in simple and understandable terms, at the time the 
     lender provides an application for a consolidation loan--
       ``(i) whether consolidation would result in a loss of loan 
     benefits under this part or part D, including loan 
     forgiveness, cancellation, and deferment;
       ``(ii) with respect to Federal Perkins Loans under part E--

       ``(I) that if a borrower includes a Federal Perkins Loan 
     under part E in the consolidation loan, the borrower will 
     lose all interest-free periods that would have been available 
     for the Federal Perkins Loan, such as--

       ``(aa) the periods during which no interest accrues on such 
     loan while the borrower is enrolled in school at least half-
     time;
       ``(bb) the grace period under section 464(c)(1)(A); and
       ``(cc) the periods during which the borrower's student loan 
     repayments are deferred under section 464(c)(2);

       ``(II) that if a borrower includes a Federal Perkins Loan 
     in the consolidation loan, the borrower will no longer be 
     eligible for cancellation of part or all of the Federal 
     Perkins Loan under section 465(a); and
       ``(III) the occupations listed in section 465 that qualify 
     for Federal Perkins Loan cancellation under section 465(a);

       ``(iii) the repayment plans that are available to the 
     borrower;
       ``(iv) the options of the borrower to prepay the 
     consolidation loan, to pay such loan on a shorter schedule, 
     and to change repayment plans;
       ``(v) that borrower benefit programs for a consolidation 
     loan may vary among different lenders;

[[Page 17135]]

       ``(vi) the consequences of default on the consolidation 
     loan; and
       ``(vii) that by applying for a consolidation loan, the 
     borrower is not obligated to agree to take the consolidation 
     loan; and''.
       (2) Consolidation loans.--Section 428C(b)(5) (20 U.S.C. 
     1078-3(b)(5)) is amended--
       (A) by inserting after the first sentence the following: 
     ``In addition, in the event that a borrower chooses to obtain 
     a consolidation loan for the purposes of using the no accrual 
     of interest for active duty service members program offered 
     under section 455(o), the Secretary shall offer a Federal 
     Direct Consolidation loan to any such borrower who applies 
     for participation in such program.''; and
       (B) by striking ``Such direct consolidation loan'' and 
     inserting ``A direct consolidation loan offered under this 
     paragraph''.
       (3) Conforming amendment.--Section 455(g) (20 U.S.C. 
     1087e(g)) is amended by striking ``section 428C(b)(1)(F)'' 
     and inserting ``section 428C(b)(1)(G)''.
       (c) Technical Amendment.--Section 203(b)(2)(C) of the 
     College Cost Reduction and Access Act (121 Stat. 794) is 
     amended by striking ``the second sentence'' and inserting 
     ``the third sentence''.
       (d) Income-Based Repayment.--
       (1) Amendments.--Section 428C(c) (20 U.S.C. 1078-3(c)) is 
     amended--
       (A) in the matter preceding clause (i) of paragraph 
     (2)(A)--
       (i) by striking ``or income-sensitive'' and inserting 
     ``income-sensitive, or income-based''; and
       (ii) by inserting ``or income-based'' after ``such income-
     sensitive''; and
       (B) in paragraph (3)--
       (i) in subparagraph (A)--

       (I) by inserting ``except in the case of an income-based 
     repayment schedule under section 493C'', before ``a 
     repayment''; and
       (II) by striking ``and'' after the semicolon;

       (ii) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(C) an income-based repayment schedule under section 493C 
     shall not be available to a consolidation loan borrower who 
     used the proceeds of the loan to discharge the liability on a 
     loan under section 428B, or a Federal Direct PLUS loan, made 
     on behalf of a dependent student.''.
       (2) Effective date.--The amendments made by this subsection 
     shall take effect on July 1, 2009.
       (e) Extension of Consolidation Loan Authority.--Section 
     428C(e) (20 U.S.C. 1078-3(e)) is amended by striking ``2012'' 
     and inserting ``2014''.

     SEC. 426. DEFAULT REDUCTION PROGRAM.

       Section 428F (20 U.S.C. 1078-6) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(A), by adding at the end the 
     following: ``Upon the sale of the loan to an eligible lender, 
     the guaranty agency or other holder of the loan shall request 
     any consumer reporting agency to which the guaranty agency or 
     holder, as applicable, reported the default of the loan, to 
     remove the record of default from the borrower's credit 
     history.''; and
       (B) by adding at the end the following:
       ``(5) Limitation.--A borrower may obtain the benefits 
     available under this subsection with respect to 
     rehabilitating a loan only one time per loan.''; and
       (2) by adding at the end the following:
       ``(c) Financial and Economic Literacy.--Each program 
     described in subsection (b) shall include making available 
     financial and economic education materials for a borrower who 
     has rehabilitated a loan.''.

     SEC. 427. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.

       (a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is 
     amended by adding at the end the following:
       ``(4) Amendment to special rule.--Beginning on October 1, 
     2011, the special rule under paragraph (3) shall be applied 
     by substituting `15 percent' for `10 percent'.''.
       (b) Requirements for Disbursements to First Year 
     Students.--Section 428G(b) (20 U.S.C. 1078-7(b)) is amended 
     by adding at the end the following:
       ``(3) Amendment to cohort default rate exemption.--
     Beginning on October 1, 2011, the exemption to the 
     requirements of paragraph (1) in the second sentence of such 
     paragraph shall be applied by substituting `15 percent' for 
     `10 percent'.''.

     SEC. 428. UNSUBSIDIZED STAFFORD LOAN LIMITS.

       (a) Amendments.--Section 428H(d) (20 U.S.C. 1078-8(d)) is 
     amended--
       (1) in paragraph (2)--
       (A) in the paragraph heading, by striking ``Graduate and 
     professional students'' and inserting ``Graduate, 
     professional, and independent postbaccalaureate students''; 
     and
       (B) in subparagraph (A)--
       (i) in the matter preceding clause (i), by inserting ``, or 
     a student described in clause (ii),'' after ``graduate or 
     professional student''; and
       (ii) by striking clause (ii) and inserting the following:
       ``(ii) notwithstanding paragraph (4), in the case of an 
     independent student, or a dependent student whose parents are 
     unable to borrow under section 428B or the Federal Direct 
     PLUS Loan Program, who has obtained a baccalaureate degree 
     and who is enrolled in coursework specified in paragraph 
     (3)(B) or (4)(B) of section 484(b)--

       ``(I) $7,000 for coursework necessary for enrollment in a 
     graduate or professional program; and
       ``(II) $7,000 for coursework necessary for a professional 
     credential or certification from a State required for 
     employment as a teacher in an elementary or secondary 
     school,''; and

       (2) in paragraph (4)(A), by striking clause (iii) and 
     inserting the following:
       ``(iii) in the case of such a student enrolled in 
     coursework specified in--

       ``(I) section 484(b)(3)(B), $6,000; or
       ``(II) section 484(b)(4)(B), $7,000.''.

       (b) Effective Date.--The amendments made by this section 
     shall take effect for loans for which the first disbursement 
     is made on or after July 1, 2008.

     SEC. 429. LOAN FORGIVENESS FOR TEACHERS EMPLOYED BY 
                   EDUCATIONAL SERVICE AGENCIES.

       Section 428J (20 U.S.C. 1078-10) is amended--
       (1) in subsection (b)(1)(A)--
       (A) by inserting ``or location'' after ``a school''; and
       (B) by inserting ``or locations'' after ``schools'';
       (2) in subsection (c)(1), by striking the second sentence;
       (3) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
     case of a teacher who is employed by an educational service 
     agency, as certified by the chief administrative officer of 
     such agency,'' after ``borrower is employed,''; and
       (4) in subsection (g), by striking paragraph (2) and 
     inserting the following:
       ``(2) Prevention of double benefits.--No borrower may, for 
     the same service, receive a benefit under both this section 
     and--
       ``(A) section 428K;
       ``(B) section 455(m);
       ``(C) section 460; or
       ``(D) subtitle D of title I of the National and Community 
     Service Act of 1990 (42 U.S.C. 12571 et seq.).''.

     SEC. 430. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL 
                   NEED.

       Section 428K (20 U.S.C. 1078-11) is amended to read as 
     follows:

     ``SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF 
                   NATIONAL NEED.

       ``(a) Program Authorized.--
       ``(1) Loan forgiveness authorized.--The Secretary shall 
     forgive, in accordance with this section, the qualified loan 
     amount described in subsection (c) of the student loan 
     obligation of a borrower who--
       ``(A) is employed full-time in an area of national need, as 
     described in subsection (b); and
       ``(B) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(2) Method of loan forgiveness.--To provide loan 
     forgiveness under paragraph (1), the Secretary is authorized 
     to carry out a program--
       ``(A) through the holder of the loan, to assume the 
     obligation to repay a qualified loan amount for a loan made, 
     insured, or guaranteed under this part (other than an 
     excepted PLUS loan or an excepted consolidation loan (as such 
     terms are defined in section 493C(a))); and
       ``(B) to cancel a qualified loan amount for a loan made 
     under part D of this title (other than an excepted PLUS loan 
     or an excepted consolidation loan).
       ``(3) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out this 
     section.
       ``(b) Areas of National Need.--For purposes of this 
     section, an individual is employed in an area of national 
     need if the individual meets the requirements of one of the 
     following:
       ``(1) Early childhood educators.--The individual is 
     employed full-time as an early childhood educator.
       ``(2) Nurses.--The individual is employed full-time--
       ``(A) as a nurse in a clinical setting; or
       ``(B) as a member of the nursing faculty at an accredited 
     school of nursing (as those terms are defined in section 801 
     of the Public Health Service Act (42 U.S.C. 296)).
       ``(3) Foreign language specialists.--The individual--
       ``(A) has obtained a baccalaureate or advanced degree in a 
     critical foreign language; and
       ``(B) is employed full-time--
       ``(i) in an elementary school or secondary school as a 
     teacher of a critical foreign language;
       ``(ii) in an agency of the United States Government in a 
     position that regularly requires the use of such critical 
     foreign language; or
       ``(iii) in an institution of higher education as a faculty 
     member or instructor teaching a critical foreign language.
       ``(4) Librarians.--The individual is employed full-time as 
     a librarian in--
       ``(A) a public library that serves a geographic area within 
     which the public schools have a combined average of 30 
     percent or more of the schools' total student enrollments 
     composed of children meeting a measure of poverty under 
     section 1113(a)(5) of the Elementary and Secondary Education 
     Act of 1965; or
       ``(B) a school that qualifies under section 465(a)(2)(A) 
     for loan cancellation for Perkins loan recipients who teach 
     in such a school.
       ``(5) Highly qualified teachers serving students who are 
     limited english proficient, low-income communities, and 
     underrepresented populations.--The individual--
       ``(A) is highly qualified, as such term is defined in 
     section 9101 of the Elementary and Secondary Education Act of 
     1965; and
       ``(B) is employed full-time--
       ``(i) as a teacher educating students who are limited 
     English proficient;
       ``(ii) as a teacher in a school that qualifies under 
     section 465(a)(2)(A) for loan cancellation

[[Page 17136]]

     for Perkins loan recipients who teach in such a school;
       ``(iii) as a teacher and is an individual from an 
     underrepresented population in the teaching profession, as 
     determined by the Secretary; or
       ``(iv) as a teacher in an educational service agency, as 
     such term is defined in section 9101 of the Elementary and 
     Secondary Education Act of 1965.
       ``(6) Child welfare workers.--The individual--
       ``(A) has obtained a degree in social work or a related 
     field with a focus on serving children and families; and
       ``(B) is employed full-time in public or private child 
     welfare services.
       ``(7) Speech-language pathologists and audiologists.--The 
     individual--
       ``(A) is employed full-time as a speech-language 
     pathologist or audiologist in an eligible preschool program 
     or a school that qualifies under section 465(a)(2)(A) for 
     loan cancellation for Perkins loan recipients who teach in 
     such a school; and
       ``(B) has, at a minimum, a graduate degree in speech-
     language pathology, audiology, or communication sciences and 
     disorders.
       ``(8) School counselors.--The individual is employed full-
     time as a school counselor (as such term is defined in 
     section 5421(e) of the Elementary and Secondary Education Act 
     of 1965), in a school that qualifies under section 
     465(a)(2)(A) for loan cancellation for Perkins loan 
     recipients who teach in such a school.
       ``(9) Public sector employees.--The individual is employed 
     full-time in--
       ``(A) public safety (including as a first responder, 
     firefighter, police officer, or other law enforcement or 
     public safety officer);
       ``(B) emergency management (including as an emergency 
     medical technician);
       ``(C) public health (including full-time professionals 
     engaged in health care practitioner occupations and health 
     care support occupations, as such terms are defined by the 
     Bureau of Labor Statistics); or
       ``(D) public interest legal services (including 
     prosecution, public defense, or legal advocacy in low-income 
     communities at a nonprofit organization).
       ``(10) Nutrition professionals.--The individual--
       ``(A) is a licensed, certified, or registered dietician who 
     has completed a degree in a relevant field; and
       ``(B) is employed full-time as a dietician with an agency 
     of the special supplemental nutrition program for women, 
     infants, and children under section 17 of the Child Nutrition 
     Act of 1966 (42 U.S.C. 1786).
       ``(11) Medical specialists.--The individual--
       ``(A) has received a degree from a medical school at an 
     institution of higher education; and
       ``(B) has been accepted to, or currently participates in, a 
     full-time graduate medical education training program or 
     fellowship (or both) to provide health care services (as 
     recognized by the Accreditation Council for Graduate Medical 
     Education) that--
       ``(i) requires more than five years of total graduate 
     medical training; and
       ``(ii) has fewer United States medical school graduate 
     applicants than the total number of positions available in 
     such program or fellowship.
       ``(12) Mental health professionals.--The individual--
       ``(A) has not less than a master's degree in social work, 
     psychology, or psychiatry; and
       ``(B) is employed full-time providing mental health 
     services to children, adolescents, or veterans.
       ``(13) Dentists.--The individual--
       ``(A)(i) has received a degree from an accredited dental 
     school (as accredited by the Commission on Dental 
     Accreditation);
       ``(ii) has completed residency training in pediatric 
     dentistry, general dentistry, or dental public health; and
       ``(iii) is employed full-time as a dentist; or
       ``(B) is employed full-time as a member of the faculty at a 
     program or school accredited by the Commission on Dental 
     Accreditation.
       ``(14) STEM employees.--The individual is employed full-
     time in applied sciences, technology, engineering, or 
     mathematics.
       ``(15) Physical therapists.--The individual--
       ``(A) is a physical therapist; and
       ``(B) is employed full-time providing physical therapy 
     services to children, adolescents, or veterans.
       ``(16) Superintendents, principals, and other 
     administrators.--The individual is employed full-time as a 
     school superintendent, principal, or other administrator in a 
     local educational agency, including in an educational service 
     agency, in which 30 percent or more of the schools are 
     schools that qualify under section 465(a)(2)(A) for loan 
     cancellation for Perkins loan recipients who teach in such a 
     school.
       ``(17) Occupational therapists.--The individual is an 
     occupational therapist and is employed full-time providing 
     occupational therapy services to children, adolescents, or 
     veterans.
       ``(c) Qualified Loan Amount.--
       ``(1) In general.--Subject to paragraph (2), for each 
     school, academic, or calendar year of full-time employment in 
     an area of national need described in subsection (b) that a 
     borrower completes on or after the date of enactment of the 
     Higher Education Opportunity Act, the Secretary shall forgive 
     not more than $2,000 of the student loan obligation of the 
     borrower that is outstanding after the completion of each 
     such school, academic, or calendar year of employment, 
     respectively.
       ``(2) Maximum amount.--The Secretary shall not forgive more 
     than $10,000 in the aggregate for any borrower under this 
     section, and no borrower shall receive loan forgiveness under 
     this section for more than five years of service.
       ``(d) Priority.--The Secretary shall grant loan forgiveness 
     under this section on a first-come, first-served basis, and 
     subject to the availability of appropriations.
       ``(e) Rule of Construction.--Nothing in this section shall 
     be construed to authorize the refunding of any repayment of a 
     loan.
       ``(f) Ineligibility for Double Benefits.--No borrower may, 
     for the same service, receive a reduction of loan obligations 
     under both this section and section 428J, 428L, 455(m), or 
     460.
       ``(g) Definitions.--In this section:
       ``(1) Audiologist.--The term `audiologist' means an 
     individual who--
       ``(A) has received, at a minimum, a graduate degree in 
     audiology from an institution of higher education accredited 
     by an agency or association recognized by the Secretary 
     pursuant to section 496(a); and
       ``(B)(i) provides audiology services under subsection 
     (ll)(2) of section 1861 of the Social Security Act (42 U.S.C. 
     1395x(ll)(2)); or
       ``(ii) meets or exceeds the qualifications for a qualified 
     audiologist under subsection (ll)(4) of such section (42 
     U.S.C. 1395x(ll)(4)).
       ``(2) Early childhood educator.--The term `early childhood 
     educator' means an individual who--
       ``(A) works directly with children in an eligible preschool 
     program or eligible early childhood education program in a 
     low-income community;
       ``(B) is involved directly in the care, development, and 
     education of infants, toddlers, or young children age five 
     and under; and
       ``(C) has completed a baccalaureate or advanced degree in 
     early childhood development or early childhood education, or 
     in a field related to early childhood education.
       ``(3) Eligible preschool program.--The term `eligible 
     preschool program' means a program that--
       ``(A) provides for the care, development, and education of 
     infants, toddlers, or young children age five and under;
       ``(B) meets any applicable State or local government 
     licensing, certification, approval, and registration 
     requirements, and
       ``(C) is operated by--
       ``(i) a public or private school that is supported, 
     sponsored, supervised, or administered by a local educational 
     agency;
       ``(ii) a Head Start agency serving as a grantee designated 
     under the Head Start Act (42 U.S.C. 9831 et seq.);
       ``(iii) a nonprofit or community based organization; or
       ``(iv) a child care program, including a home.
       ``(4) Eligible early childhood education program.--The term 
     `eligible early childhood education program' means--
       ``(A) a family child care program, center-based child care 
     program, State prekindergarten program, school program, or 
     other out-of-home early childhood development care program, 
     that--
       ``(i) is licensed or regulated by the State; and
       ``(ii) serves two or more unrelated children who are not 
     old enough to attend kindergarten;
       ``(B) a Head Start Program carried out under the Head Start 
     Act (42 U.S.C. 9831 et seq.); or
       ``(C) an Early Head Start Program carried out under section 
     645A of the Head Start Act (42 U.S.C. 9840a).
       ``(5) Low-income community.--The term `low-income 
     community' means a school attendance area (as defined in 
     section 1113(a)(2)(A) of the Elementary and Secondary 
     Education Act of 1965)--
       ``(A) in which 70 percent of households earn less than 85 
     percent of the State median household income; or
       ``(B) that includes a school that qualifies under section 
     465(a)(2)(A) for loan cancellation for Perkins loan 
     recipients who teach in such a school.
       ``(6) Nurse.--The term `nurse' means a nurse who meets all 
     of the following:
       ``(A) The nurse graduated from--
       ``(i) an accredited school of nursing (as those terms are 
     defined in section 801 of the Public Health Service Act (42 
     U.S.C. 296));
       ``(ii) a nursing center; or
       ``(iii) an academic health center that provides nurse 
     training.
       ``(B) The nurse holds a valid and unrestricted license to 
     practice nursing in the State in which the nurse practices in 
     a clinical setting.
       ``(C) The nurse holds one or more of the following:
       ``(i) A graduate degree in nursing, or an equivalent 
     degree.
       ``(ii) A nursing degree from a collegiate school of nursing 
     (as defined in section 801 of the Public Health Service Act 
     (42 U.S.C. 296)).
       ``(iii) A nursing degree from an associate degree school of 
     nursing (as defined in such section).
       ``(iv) A nursing degree from a diploma school of nursing 
     (as defined in such section).
       ``(7) Occupational therapist.--The term `occupational 
     therapist' means an individual who--
       ``(A) has received, at a minimum, a baccalaureate degree in 
     occupational therapy from an institution of higher education 
     accredited by an agency or association recognized by the 
     Secretary pursuant to section 496(a); and
       ``(B)(i) provides occupational therapy services under 
     section 1861(g) of the Social Security Act (42 U.S.C. 
     1395x(g)); or

[[Page 17137]]

       ``(ii) meets or exceeds the qualifications for a qualified 
     occupational therapist, as determined by State law.
       ``(8) Physical therapist.--The term `physical therapist' 
     means an individual who--
       ``(A) has received, at a minimum, a graduate degree in 
     physical therapy from an institution of higher education 
     accredited by an agency or association recognized by the 
     Secretary pursuant to section 496(a); and
       ``(B)(i) provides physical therapy services under section 
     1861(p) of the Social Security Act (42 U.S.C. 1395x(p)); or
       ``(ii) meets or exceeds the qualifications for a qualified 
     physical therapist, as determined by State law.
       ``(9) Speech-language pathologist.--The term `speech-
     language pathologist' means a speech-language pathologist 
     who--
       ``(A) has received, at a minimum, a graduate degree in 
     speech-language pathology or communication sciences and 
     disorders from an institution of higher education accredited 
     by an agency or association recognized by the Secretary 
     pursuant to section 496(a); and
       ``(B) provides speech-language pathology services under 
     section 1861(ll)(1) of the Social Security Act (42 U.S.C. 
     1395x(ll)(1)), or meets or exceeds the qualifications for a 
     qualified speech-language pathologist under subsection 
     (ll)(3) of such section (42 U.S.C. 1395x(ll)(3)).
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years to provide loan forgiveness in 
     accordance with this section.''.

     SEC. 431. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 
                   ATTORNEYS.

       Part B of title IV (20 U.S.C. 1071 et seq.) is amended by 
     inserting after section 428K the following:

     ``SEC. 428L. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE 
                   ATTORNEYS.

       ``(a) Purpose.--The purpose of this section is to encourage 
     qualified individuals to enter and continue employment as 
     civil legal assistance attorneys.
       ``(b) Definitions.--In this section:
       ``(1) Civil legal assistance attorney.--The term `civil 
     legal assistance attorney' means an attorney who--
       ``(A) is a full-time employee of--
       ``(i) a nonprofit organization that provides legal 
     assistance with respect to civil matters to low-income 
     individuals without a fee; or
       ``(ii) a protection and advocacy system or client 
     assistance program that provides legal assistance with 
     respect to civil matters and receives funding under--

       ``(I) subtitle C of title I of the Developmental 
     Disabilities Assistance and Bill of Rights Act of 2000 (42 
     U.S.C. 15041 et seq.);
       ``(II) section 112 or 509 of the Rehabilitation Act of 1973 
     (29 U.S.C. 732, 794e);
       ``(III) part A of title I of the Protection and Advocacy 
     for Individuals with Mental Illness Act (42 U.S.C. 10801 et 
     seq.);
       ``(IV) section 5 of the Assistive Technology Act of 1998 
     (29 U.S.C. 3004);
       ``(V) section 1150 of the Social Security Act (42 U.S.C. 
     1320b-21);
       ``(VI) section 1253 of the Public Health Service Act (42 
     U.S.C. 300d-53); or

       ``(VII) section 291 of the Help America Vote Act of 2002 
     (42 U.S.C. 15461);

       ``(B) as such employee, provides civil legal assistance as 
     described in subparagraph (A) on a full-time basis; and
       ``(C) is continually licensed to practice law.
       ``(2) Student loan.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `student loan' means--
       ``(i) subject to clause (ii), a loan made, insured, or 
     guaranteed under this part, part D, or part E; and
       ``(ii) a loan made under section 428C or 455(g), to the 
     extent that such loan was used to repay--

       ``(I) a Federal Direct Stafford Loan, a Federal Direct 
     Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan;
       ``(II) a loan made under section 428, 428B, or 428H; or
       ``(III) a loan made under part E.

       ``(B) Exclusion of parent plus loans.--The term `student 
     loan' does not include any of the following loans:
       ``(i) A loan made to the parents of a dependent student 
     under section 428B.
       ``(ii) A Federal Direct PLUS Loan made to the parents of a 
     dependent student.
       ``(iii) A loan made under section 428C or 455(g), to the 
     extent that such loan was used to repay--

       ``(I) a loan made to the parents of a dependent student 
     under section 428B; or
       ``(II) a Federal Direct PLUS Loan made to the parents of a 
     dependent student.

       ``(c) Program Authorized.--From amounts appropriated under 
     subsection (i) for a fiscal year, the Secretary shall carry 
     out a program of assuming the obligation to repay a student 
     loan, by direct payments on behalf of a borrower to the 
     holder of such loan, in accordance with subsection (d), for 
     any borrower who--
       ``(1) is employed as a civil legal assistance attorney; and
       ``(2) is not in default on a loan for which the borrower 
     seeks repayment.
       ``(d) Terms of Agreement.--
       ``(1) In general.--To be eligible to receive repayment 
     benefits under subsection (c), a borrower shall enter into a 
     written agreement with the Secretary that specifies that--
       ``(A) the borrower will remain employed as a civil legal 
     assistance attorney for a required period of service of not 
     less than three years, unless involuntarily separated from 
     that employment;
       ``(B) if the borrower is involuntarily separated from 
     employment on account of misconduct, or voluntarily separates 
     from employment, before the end of the period specified in 
     the agreement, the borrower will repay the Secretary the 
     amount of any benefits received by such employee under this 
     agreement;
       ``(C) if the borrower is required to repay an amount to the 
     Secretary under subparagraph (B) and fails to repay such 
     amount, a sum equal to that amount shall be recoverable by 
     the Federal Government from the employee by such methods as 
     are provided by law for the recovery of amounts owed to the 
     Federal Government;
       ``(D) the Secretary may waive, in whole or in part, a right 
     of recovery under this subsection if it is shown that 
     recovery would be contrary to the public interest; and
       ``(E) the Secretary shall make student loan payments under 
     this section for the period of the agreement, subject to the 
     availability of appropriations.
       ``(2) Repayments.--
       ``(A) In general.--Any amount repaid by, or recovered from, 
     an individual under this subsection shall be credited to the 
     appropriation account from which the amount involved was 
     originally paid.
       ``(B) Merger.--Any amount credited under subparagraph (A) 
     shall be merged with other sums in such account and shall be 
     available for the same purposes and period, and subject to 
     the same limitations, if any, as the sums with which the 
     amount was merged.
       ``(3) Limitations.--
       ``(A) Student loan payment amount.--Student loan repayments 
     made by the Secretary under this section shall be made 
     subject to such terms, limitations, or conditions as may be 
     mutually agreed upon by the borrower and the Secretary in an 
     agreement under paragraph (1), except that the amount paid by 
     the Secretary under this section shall not exceed--
       ``(i) $6,000 for any borrower in any calendar year; or
       ``(ii) an aggregate total of $40,000 in the case of any 
     borrower.
       ``(B) Beginning of payments.--Nothing in this section shall 
     authorize the Secretary to pay any amount to reimburse a 
     borrower for any repayments made by such borrower prior to 
     the date on which the Secretary entered into an agreement 
     with the borrower under this subsection.
       ``(e) Additional Agreements.--
       ``(1) In general.--On completion of the required period of 
     service under an agreement under subsection (d), the borrower 
     and the Secretary may, subject to paragraph (2), enter into 
     an additional agreement in accordance with subsection (d).
       ``(2) Term.--An agreement entered into under paragraph (1) 
     may require the borrower to remain employed as a civil legal 
     assistance attorney for less than three years.
       ``(f) Award Basis; Priority.--
       ``(1) Award basis.--Subject to paragraph (2), the Secretary 
     shall provide repayment benefits under this section on a 
     first-come, first-served basis, and subject to the 
     availability of appropriations.
       ``(2) Priority.--The Secretary shall give priority in 
     providing repayment benefits under this section in any fiscal 
     year to a borrower who--
       ``(A) has practiced law for five years or less and, for not 
     less than 90 percent of the time in such practice, has served 
     as a civil legal assistance attorney;
       ``(B) received repayment benefits under this section during 
     the preceding fiscal year; and
       ``(C) has completed less than three years of the first 
     required period of service specified for the borrower in an 
     agreement entered into under subsection (d).
       ``(g) Ineligibility for Double Benefits.--No borrower may, 
     for the same service, receive a reduction of loan obligations 
     under both this section and section 428K or 455(m).
       ``(h) Regulations.--The Secretary is authorized to issue 
     such regulations as may be necessary to carry out this 
     section.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $10,000,000 for fiscal year 2009 and such sums as may be 
     necessary for each of the five succeeding fiscal years.''.

     SEC. 432. REPORTS TO CONSUMER REPORTING AGENCIES AND 
                   INSTITUTIONS OF HIGHER EDUCATION.

       (a) In General.--Section 430A (20 U.S.C. 1080a) is 
     amended--
       (1) in the section heading, by striking ``CREDIT BUREAUS'' 
     and inserting ``CONSUMER REPORTING AGENCIES'';
       (2) in subsection (a)--
       (A) in the matter preceding paragraph (1)--
       (i) in the first sentence--

       (I) by striking ``the Secretary,'' and inserting ``the 
     Secretary and''; and
       (II) by striking ``agreements with credit bureau 
     organizations'' and inserting ``an agreement with each 
     consumer reporting agency'';

       (ii) in the second sentence--

       (I) by striking ``such organizations'' each place the term 
     occurs and inserting ``such consumer reporting agencies''; 
     and
       (II) by striking ``insurance), by'' and inserting 
     ``insurance) or by''; and

       (iii) in the third sentence--

       (I) by striking ``Secretary,'' and inserting ``Secretary 
     or''; and
       (II) by striking ``organizations'' and inserting ``consumer 
     reporting agencies'';

       (B) by redesignating paragraphs (1), (2), and (3) as 
     paragraphs (2), (4), and (5), respectively;

[[Page 17138]]

       (C) by inserting before paragraph (2) (as redesignated by 
     subparagraph (B)), the following:
       ``(1) that the loan is an education loan (as such term is 
     defined in section 151);''; and
       (D) by inserting after paragraph (2) (as redesignated by 
     subparagraph (B)) the following:
       ``(3) information concerning the repayment status of the 
     loan for inclusion in the file of the borrower, except that 
     nothing in this subsection shall be construed to affect any 
     otherwise applicable provision of the Fair Credit Reporting 
     Act (15 U.S.C. 1681 et seq.);'';
       (3) in subsection (b)--
       (A) by striking ``organizations'' and inserting ``consumer 
     reporting agencies''; and
       (B) by striking ``subsection (a)(2)'' and inserting 
     ``subsection (a)(4)'';
       (4) in subsection (c)--
       (A) in paragraph (2), by striking ``organizations'' and 
     inserting ``consumer reporting agencies''; and
       (B) in paragraph (4)--
       (i) by striking ``subsection (a)(2)'' and inserting 
     ``subsection (a)(4)''; and
       (ii) in subparagraph (A), by striking ``credit bureau 
     organizations'' and inserting ``consumer reporting 
     agencies''; and
       (5) in subsection (d), by striking ``credit bureau 
     organization'' and inserting ``consumer reporting agency''.
       (b) Conforming Amendments.--The Act (20 U.S.C. 1001 et 
     seq.) is further amended--
       (1) in section 427(a)(2)(G) (20 U.S.C. 1077(a)(2)(G))--
       (A) in clause (i), by striking ``credit bureau 
     organizations'' and inserting ``consumer reporting 
     agencies''; and
       (B) in clause (ii), by striking ``organizations'' and 
     inserting ``consumer reporting agencies'';
       (2) in section 428(c)(3)(A)(iii) (20 U.S.C. 
     1078(c)(3)(A)(iii)), by striking ``credit bureau 
     organization'' and inserting ``consumer reporting agency'';
       (3) in section 428C(b)(4)(E) (20 U.S.C. 1078-3(b)(4)(E))--
       (A) in clause (i), by striking ``credit bureau 
     organizations'' and inserting ``consumer reporting 
     agencies''; and
       (B) in clause (ii), by striking ``organizations'' and 
     inserting ``consumer reporting agencies'';
       (4) in section 437(c)(5) (20 U.S.C. 1087(c)(5)), by 
     striking ``credit bureaus'' and inserting ``consumer 
     reporting agencies'';
       (5) in section 463(c) (20 U.S.C. 1087cc(c))--
       (A) in the subsection heading, by striking ``Credit Bureau 
     Organizations'' and inserting ``Consumer Reporting 
     Agencies'';
       (B) in paragraph (1), by striking ``credit bureau 
     organizations'' and inserting ``consumer reporting 
     agencies'';
       (C) in paragraph (2), by striking ``organizations'' and 
     inserting ``consumer reporting agencies'';
       (D) in paragraph (4)(A), by striking ``credit bureau 
     organization'' each place the term occurs and inserting 
     ``consumer reporting agency''; and
       (E) in paragraph (5)--
       (i) by striking ``credit bureau organizations'' and 
     inserting ``consumer reporting agencies''; and
       (ii) by striking ``such organizations'' and inserting 
     ``such consumer reporting agencies'';
       (6) in section 463A(a)(11) (20 U.S.C. 1087cc-1(a)(11)), by 
     striking ``credit bureau or credit'' and inserting 
     ``consumer''; and
       (7) in section 464 (20 U.S.C. 10877dd)--
       (A) in subsection (c)(1)(I), by striking ``credit bureau 
     organizations'' and inserting ``consumer reporting 
     agencies''; and
       (B) in subsection (h)(1)(A), by striking ``credit bureau 
     organization or credit'' and inserting ``consumer''.

     SEC. 433. LEGAL POWERS AND RESPONSIBILITIES.

       (a) Settlement of Claims.--Section 432(b) (20 U.S.C. 
     1082(b)) is amended by adding at the end the following: ``The 
     Secretary may not enter into any settlement of any claim 
     under this title that exceeds $1,000,000 unless--
       ``(1) the Secretary requests a review of the proposed 
     settlement of such claim by the Attorney General; and
       ``(2) the Attorney General responds to such request, which 
     may include, at the Attorney General's discretion, a written 
     opinion related to such proposed settlement.''.
       (b) Common Forms and Formats.--Section 432(m)(1)(D)(i) (20 
     U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end the 
     following: ``Unless otherwise notified by the Secretary, each 
     institution of higher education that participates in the 
     program under this part or part D may use a master promissory 
     note for loans under this part and part D.''.

     SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

       (a) Amendment.--Section 433 (20 U.S.C. 1083) is amended to 
     read as follows:

     ``SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

       ``(a) Required Disclosure Before Disbursement.--Each 
     eligible lender, at or prior to the time such lender 
     disburses a loan that is insured or guaranteed under this 
     part (other than a loan made under section 428C), shall 
     provide thorough and accurate loan information on such loan 
     to the borrower in simple and understandable terms. Any 
     disclosure required by this subsection may be made by an 
     eligible lender by written or electronic means, including as 
     part of the application material provided to the borrower, as 
     part of the promissory note evidencing the loan, or on a 
     separate written form provided to the borrower. Each lender 
     shall provide to each borrower a telephone number, and may 
     provide an electronic address, through which additional loan 
     information can be obtained. The disclosure shall include--
       ``(1) a statement prominently and clearly displayed and in 
     bold print that the borrower is receiving a loan that must be 
     repaid;
       ``(2) the name of the eligible lender, and the address to 
     which communications and payments should be sent;
       ``(3) the principal amount of the loan;
       ``(4) the amount of any charges, such as the origination 
     fee and Federal default fee, and whether those fees will be--
       ``(A) collected by the lender at or prior to the disbursal 
     of the loan;
       ``(B) deducted from the proceeds of the loan;
       ``(C) paid separately by the borrower; or
       ``(D) paid by the lender;
       ``(5) the stated interest rate on the loan;
       ``(6) for loans made under section 428H or to a student 
     borrower under section 428B, an explanation--
       ``(A) that the borrower has the option to pay the interest 
     that accrues on the loan while the borrower is a student at 
     an institution of higher education; and
       ``(B) if the borrower does not pay such interest while 
     attending an institution, when and how often interest on the 
     loan will be capitalized;
       ``(7) for loans made to a parent borrower on behalf of a 
     student under section 428B, an explanation--
       ``(A) that the parent has the option to defer payment on 
     the loan while the student is enrolled on at least a half-
     time basis in an institution of higher education;
       ``(B) if the parent does not pay the interest on the loan 
     while the student is enrolled in an institution, when and how 
     often interest on the loan will be capitalized; and
       ``(C) that the parent may be eligible for a deferment on 
     the loan if the parent is enrolled on at least a half-time 
     basis in an institution of higher education;
       ``(8) the yearly and cumulative maximum amounts that may be 
     borrowed;
       ``(9) a statement of the total cumulative balance, 
     including the loan being disbursed, owed by the borrower to 
     that lender, and an estimate of the projected monthly 
     payment, given such cumulative balance;
       ``(10) an explanation of when repayment of the loan will be 
     required and when the borrower will be obligated to pay 
     interest that accrues on the loan;
       ``(11) a description of the types of repayment plans that 
     are available for the loan;
       ``(12) a statement as to the minimum and maximum repayment 
     terms which the lender may impose, and the minimum annual 
     payment required by law;
       ``(13) an explanation of any special options the borrower 
     may have for loan consolidation or other refinancing of the 
     loan;
       ``(14) a statement that the borrower has the right to 
     prepay all or part of the loan, at any time, without penalty;
       ``(15) a statement summarizing circumstances in which 
     repayment of the loan or interest that accrues on the loan 
     may be deferred;
       ``(16) a statement summarizing the circumstances in which a 
     borrower may obtain forbearance on the loan;
       ``(17) a description of the options available for 
     forgiveness of the loan, and the requirements to obtain loan 
     forgiveness;
       ``(18) a definition of default and the consequences to the 
     borrower if the borrower defaults, including a statement that 
     the default will be reported to a consumer reporting agency; 
     and
       ``(19) an explanation of any cost the borrower may incur 
     during repayment or in the collection of the loan, including 
     fees that the borrower may be charged, such as late payment 
     fees and collection costs.
       ``(b) Required Disclosure Before Repayment.--Each eligible 
     lender shall, at or prior to the start of the repayment 
     period on a loan made, insured, or guaranteed under section 
     428, 428B, or 428H, disclose to the borrower by written or 
     electronic means the information required under this 
     subsection in simple and understandable terms. Each eligible 
     lender shall provide to each borrower a telephone number, and 
     may provide an electronic address, through which additional 
     loan information can be obtained. The disclosure required by 
     this subsection shall be made not less than 30 days nor more 
     than 150 days before the first payment on the loan is due 
     from the borrower. The disclosure shall include--
       ``(1) the name of the eligible lender or loan servicer, and 
     the address to which communications and payments should be 
     sent;
       ``(2) the scheduled date upon which the repayment period is 
     to begin or the deferment period under section 428B(d)(1) is 
     to end, as applicable;
       ``(3) the estimated balance owed by the borrower on the 
     loan or loans covered by the disclosure (including, if 
     applicable, the estimated amount of interest to be 
     capitalized) as of the scheduled date on which the repayment 
     period is to begin or the deferment period under 428B(d)(1) 
     is to end, as applicable;
       ``(4) the stated interest rate on the loan or loans, or the 
     combined interest rate of loans with different stated 
     interest rates;
       ``(5) information on loan repayment benefits offered for 
     the loan or loans, including--
       ``(A) whether the lender offers any benefits that are 
     contingent on the repayment behavior of the borrower, such 
     as--
       ``(i) a reduction in interest rate if the borrower repays 
     the loan by automatic payroll or checking account deduction;
       ``(ii) a reduction in interest rate if the borrower makes a 
     specified number of on-time payments; and

[[Page 17139]]

       ``(iii) other loan repayment benefits for which the 
     borrower could be eligible that would reduce the amount of 
     repayment or the length of the repayment period;
       ``(B) if the lender provides a loan repayment benefit--
       ``(i) any limitations on such benefit;
       ``(ii) explicit information on the reasons a borrower may 
     lose eligibility for such benefit;
       ``(iii) for a loan repayment benefit that reduces the 
     borrower's interest rate--

       ``(I) examples of the impact the interest rate reduction 
     would have on the length of the borrower's repayment period 
     and the amount of repayment; and
       ``(II) upon the request of the borrower, the effect the 
     reduction in interest rate would have with respect to the 
     borrower's payoff amount and time for repayment; and

       ``(iv) whether and how the borrower can regain eligibility 
     for a benefit if a borrower loses a benefit;
       ``(6) a description of all the repayment plans that are 
     available to the borrower and a statement that the borrower 
     may change from one plan to another during the period of 
     repayment;
       ``(7) the repayment schedule for all loans covered by the 
     disclosure, including--
       ``(A) the date the first installment is due; and
       ``(B) the number, amount, and frequency of required 
     payments, which shall be based on a standard repayment plan 
     or, in the case of a borrower who has selected another 
     repayment plan, on the repayment plan selected by the 
     borrower;
       ``(8) an explanation of any special options the borrower 
     may have for loan consolidation or other refinancing of the 
     loan and of the availability and terms of such other options;
       ``(9) except as provided in subsection (d)--
       ``(A) the projected total of interest charges which the 
     borrower will pay on the loan or loans, assuming that the 
     borrower makes payments exactly in accordance with the 
     repayment schedule; and
       ``(B) if the borrower has already paid interest on the loan 
     or loans, the amount of interest paid;
       ``(10) the nature of any fees which may accrue or be 
     charged to the borrower during the repayment period;
       ``(11) a statement that the borrower has the right to 
     prepay all or part of the loan or loans covered by the 
     disclosure at any time without penalty;
       ``(12) a description of the options by which the borrower 
     may avoid or be removed from default, including any relevant 
     fees associated with such options; and
       ``(13) additional resources, including nonprofit 
     organizations, advocates, and counselors (including the 
     Student Loan Ombudsman of the Department) of which the lender 
     is aware, where borrowers may receive advice and assistance 
     on loan repayment.
       ``(c) Separate Notification.--Each eligible lender shall, 
     at the time such lender notifies a borrower of approval of a 
     loan which is insured or guaranteed under this part, provide 
     the borrower with a separate notification which summarizes, 
     in simple and understandable terms, the rights and 
     responsibilities of the borrower with respect to the loan, 
     including a statement of the consequences of defaulting on 
     the loan and a statement that each borrower who defaults will 
     be reported to a consumer reporting agency. The requirement 
     of this subsection shall be in addition to the information 
     required by subsection (a) of this section.
       ``(d) Special Disclosure Rules on PLUS Loans, and 
     Unsubsidized Loans.--Loans made under sections 428B and 428H 
     shall not be subject to the disclosure of projected monthly 
     payment amounts required under subsection (b)(7) if the 
     lender, in lieu of such disclosure, provides the borrower 
     with sample projections of monthly repayment amounts, 
     assuming different levels of borrowing and interest accruals 
     resulting from capitalization of interest while the borrower, 
     or the student on whose behalf the loan is made, is in 
     school, in simple and understandable terms. Such sample 
     projections shall disclose the cost to the borrower of--
       ``(1) capitalizing the interest; and
       ``(2) paying the interest as the interest accrues.
       ``(e) Required Disclosures During Repayment.--
       ``(1) Pertinent information about a loan provided on a 
     periodic basis.--Each eligible lender shall provide the 
     borrower of a loan made, insured, or guaranteed under this 
     part with a bill or statement (as applicable) that 
     corresponds to each payment installment time period in which 
     a payment is due and that includes, in simple and 
     understandable terms--
       ``(A) the original principal amount of the borrower's loan;
       ``(B) the borrower's current balance, as of the time of the 
     bill or statement, as applicable;
       ``(C) the interest rate on such loan;
       ``(D) the total amount the borrower has paid in interest on 
     the loan;
       ``(E) the aggregate amount the borrower has paid for the 
     loan, including the amount the borrower has paid in interest, 
     the amount the borrower has paid in fees, and the amount the 
     borrower has paid against the balance;
       ``(F) a description of each fee the borrower has been 
     charged for the most recently preceding installment time 
     period;
       ``(G) the date by which the borrower needs to make a 
     payment in order to avoid additional fees and the amount of 
     such payment and the amount of such fees;
       ``(H) the lender's or loan servicer's address and toll-free 
     phone number for payment and billing error purposes; and
       ``(I) a reminder that the borrower has the option to change 
     repayment plans, a list of the names of the repayment plans 
     available to the borrower, a link to the appropriate page of 
     the Department's website to obtain a more detailed 
     description of the repayment plans, and directions for the 
     borrower to request a change in repayment plan.
       ``(2) Information provided to a borrower having difficulty 
     making payments.--Each eligible lender shall provide to a 
     borrower who has notified the lender that the borrower is 
     having difficulty making payments on a loan made, insured, or 
     guaranteed under this part with the following information in 
     simple and understandable terms:
       ``(A) A description of the repayment plans available to the 
     borrower, including how the borrower should request a change 
     in repayment plan.
       ``(B) A description of the requirements for obtaining 
     forbearance on a loan, including expected costs associated 
     with forbearance.
       ``(C) A description of the options available to the 
     borrower to avoid defaulting on the loan, and any relevant 
     fees or costs associated with such options.
       ``(3) Required disclosures during delinquency.--Each 
     eligible lender shall provide to a borrower who is 60 days 
     delinquent in making payments on a loan made, insured, or 
     guaranteed under this part with a notice, in simple and 
     understandable terms, of the following:
       ``(A) The date on which the loan will default if no payment 
     is made.
       ``(B) The minimum payment the borrower must make to avoid 
     default.
       ``(C) A description of the options available to the 
     borrower to avoid default, and any relevant fees or costs 
     associated with such options, including a description of 
     deferment and forbearance and the requirements to obtain 
     each.
       ``(D) Discharge options to which the borrower may be 
     entitled.
       ``(E) Additional resources, including nonprofit 
     organizations, advocates, and counselors (including the 
     Student Loan Ombudsman of the Department), of which the 
     lender is aware, where the borrower can receive advice and 
     assistance on loan repayment.
       ``(f) Cost of Disclosure and Consequences of 
     Nondisclosure.--
       ``(1) No cost to borrowers.--The information required under 
     this section shall be available without cost to the borrower.
       ``(2) Consequences of nondisclosure.--The failure of an 
     eligible lender to provide information as required by this 
     section shall not--
       ``(A) relieve a borrower of the obligation to repay a loan 
     in accordance with the loan's terms; or
       ``(B) provide a basis for a claim for civil damages.
       ``(3) Rule of construction.--Nothing in this section shall 
     be construed as subjecting the lender to the Truth in Lending 
     Act with regard to loans made under this part.
       ``(4) Actions by the secretary.--The Secretary may limit, 
     suspend, or terminate the continued participation of an 
     eligible lender in making loans under this part for failure 
     by that lender to comply with this section.''.
       (b) Effective Dates.--
       (1) Regular disclosure requirements and disclosure 
     requirements to borrowers having difficulty making 
     payments.--Paragraphs (1) and (2) of section 433(e) of the 
     Higher Education Act of 1965, as amended by subsection (a), 
     shall apply with respect to loans for which the first payment 
     is due on or after July 1, 2009.
       (2) Disclosure requirements for borrowers with delinquent 
     loans.--Section 433(e)(3) of the Higher Education Act of 
     1965, as amended by subsection (a), shall apply with respect 
     to loans that become delinquent on or after July 1, 2009.

     SEC. 435. CONSUMER EDUCATION INFORMATION.

       Part B (20 U.S.C. 1071 et seq.) is amended by inserting 
     after section 433 (20 U.S.C. 1083) the following:

     ``SEC. 433A. CONSUMER EDUCATION INFORMATION.

       ``(a) In General.--Each guaranty agency participating in a 
     program under this part, working with the institutions of 
     higher education served by such guaranty agency, shall 
     develop and make available high-quality educational programs 
     and materials to provide training for students and families 
     in budgeting and financial management, including debt 
     management and other aspects of financial literacy, such as 
     the cost of using high interest loans to pay for 
     postsecondary education, particularly as budgeting and 
     financial management relates to student loan programs 
     authorized by this title. Such programs and materials shall 
     be in formats that are simple and understandable to students 
     and families, and shall be provided before, during, and after 
     the students' enrollment in an institution of higher 
     education. The activities described in this section shall be 
     considered default reduction activities for the purposes of 
     section 422.
       ``(b) Rule of Construction.--Nothing in this section shall 
     be construed to prohibit--
       ``(1) a guaranty agency from using existing activities, 
     programs, and materials in meeting the requirements of this 
     section;
       ``(2) a guaranty agency from providing programs or 
     materials similar to the programs or materials described in 
     subsection (a) to an institution of higher education that 
     provides loans exclusively through part D; or
       ``(3) a lender or loan servicer from providing outreach or 
     financial aid literacy information in accordance with 
     subsection (a).''.

[[Page 17140]]



     SEC. 436. DEFINITIONS OF ELIGIBLE INSTITUTION AND ELIGIBLE 
                   LENDER.

       (a) Participation Rate Index.--
       (1) Amendments.--Section 435(a) (20 U.S.C. 1085(a)) is 
     amended--
       (A) in paragraph (2)--
       (i) in subparagraph (A)(ii), by striking ``paragraph (4)'' 
     and inserting ``paragraph (5)''; and
       (ii) in subparagraph (B)--

       (I) by striking ``and'' at the end of clause (ii); and
       (II) by striking clause (iii) and inserting the following:

       ``(iii) 25 percent for fiscal year 1994 through fiscal year 
     2011; and
       ``(iv) 30 percent for fiscal year 2012 and any succeeding 
     fiscal year.'';
       (B) by redesignating paragraph (6) as paragraph (8), and 
     redesignating paragraphs (3) through (5) as paragraphs (4) 
     through (6), respectively;
       (C) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) Appeals for regulatory relief.--An institution whose 
     cohort default rate, calculated in accordance with subsection 
     (m), is equal to or greater than the threshold percentage 
     specified in paragraph (2)(B)(iv) for any two consecutive 
     fiscal years may, not later than 30 days after the date the 
     institution receives notification from the Secretary, file an 
     appeal demonstrating exceptional mitigating circumstances, as 
     defined in paragraph (5). The Secretary shall issue a 
     decision on any such appeal not later than 45 days after the 
     date of submission of the appeal. If the Secretary determines 
     that the institution demonstrates exceptional mitigating 
     circumstances, the Secretary may not subject the institution 
     to provisional certification based solely on the 
     institution's cohort default rate.'';
       (D) in paragraph (5)(A) (as redesignated by subparagraph 
     (B)), by striking ``For purposes of paragraph (2)(A)(ii)'' 
     and all that follows through ``following criteria:'' and 
     inserting ``For purposes of this subsection, an institution 
     of higher education shall be treated as having exceptional 
     mitigating circumstances that make application of paragraph 
     (2) inequitable, and that provide for regulatory relief under 
     paragraph (3), if such institution, in the opinion of an 
     independent auditor, meets the following criteria:'';
       (E) by inserting after paragraph (6) (as redesignated by 
     subparagraph (B)) the following:
       ``(7) Default prevention and assessment of eligibility 
     based on high default rates.--
       ``(A) First year.--
       ``(i) In general.--An institution whose cohort default rate 
     is equal to or greater than the threshold percentage 
     specified in paragraph (2)(B)(iv) in any fiscal year shall 
     establish a default prevention task force to prepare a plan 
     to--

       ``(I) identify the factors causing the institution's cohort 
     default rate to exceed such threshold;
       ``(II) establish measurable objectives and the steps to be 
     taken to improve the institution's cohort default rate; and
       ``(III) specify actions that the institution can take to 
     improve student loan repayment, including appropriate 
     counseling regarding loan repayment options.

       ``(ii) Technical assistance.--Each institution subject to 
     this subparagraph shall submit the plan under clause (i) to 
     the Secretary, who shall review the plan and offer technical 
     assistance to the institution to promote improved student 
     loan repayment.
       ``(B) Second consecutive year.--
       ``(i) In general.--An institution whose cohort default rate 
     is equal to or greater than the threshold percentage 
     specified in paragraph (2)(B)(iv) for two consecutive fiscal 
     years, shall require the institution's default prevention 
     task force established under subparagraph (A) to review and 
     revise the plan required under such subparagraph, and shall 
     submit such revised plan to the Secretary.
       ``(ii) Review by the secretary.--The Secretary shall review 
     each revised plan submitted in accordance with this 
     subparagraph, and may direct that such plan be amended to 
     include actions, with measurable objectives, that the 
     Secretary determines, based on available data and analyses of 
     student loan defaults, will promote student loan 
     repayment.''; and
       (F) in paragraph (8)(A) (as redesignated by subparagraph 
     (B)) by striking ``0.0375'' and inserting ``0.0625''.
       (2) Effective date.--The amendment made by paragraph (1)(F) 
     shall take effect for fiscal years beginning on or after 
     October 1, 2011.
       (b) Types of Lenders.--Section 435(d)(1)(A)(ii) (20 U.S.C. 
     1085(d)(1)(A)(ii)) is amended--
       (1) by striking ``part, or (III)'' and inserting ``part, 
     (III)''; and
       (2) by inserting before the semicolon at the end the 
     following: ``, or (IV) it is a National or State chartered 
     bank, or a credit union, with assets of less than 
     $1,000,000,000''.
       (c) Disqualification.--Paragraph (5) of section 435(d) (20 
     U.S.C. 1085(d)(5)) is amended to read as follows:
       ``(5) Disqualification for use of certain incentives.--The 
     term `eligible lender' does not include any lender that the 
     Secretary determines, after notice and opportunity for a 
     hearing, has--
       ``(A) offered, directly or indirectly, points, premiums, 
     payments (including payments for referrals and for processing 
     or finder fees), prizes, stock or other securities, travel, 
     entertainment expenses, tuition payment or reimbursement, the 
     provision of information technology equipment at below-market 
     value, additional financial aid funds, or other inducements, 
     to any institution of higher education or any employee of an 
     institution of higher education in order to secure applicants 
     for loans under this part;
       ``(B) conducted unsolicited mailings, by postal or 
     electronic means, of student loan application forms to 
     students enrolled in secondary schools or postsecondary 
     institutions, or to family members of such students, except 
     that applications may be mailed, by postal or electronic 
     means, to students or borrowers who have previously received 
     loans under this part from such lender;
       ``(C) entered into any type of consulting arrangement, or 
     other contract to provide services to a lender, with an 
     employee who is employed in the financial aid office of an 
     institution of higher education, or who otherwise has 
     responsibilities with respect to student loans or other 
     financial aid of the institution;
       ``(D) compensated an employee who is employed in the 
     financial aid office of an institution of higher education, 
     or who otherwise has responsibilities with respect to student 
     loans or other financial aid of the institution, and who is 
     serving on an advisory board, commission, or group 
     established by a lender or group of lenders for providing 
     such service, except that the eligible lender may reimburse 
     such employee for reasonable expenses incurred in providing 
     such service;
       ``(E) performed for an institution of higher education any 
     function that such institution of higher education is 
     required to perform under this title, except that a lender 
     shall be permitted to perform functions on behalf of such 
     institution in accordance with section 485(b);
       ``(F) paid, on behalf of an institution of higher 
     education, another person to perform any function that such 
     institution of higher education is required to perform under 
     this title, except that a lender shall be permitted to 
     perform functions on behalf of such institution in accordance 
     with section 485(b);
       ``(G) provided payments or other benefits to a student at 
     an institution of higher education to act as the lender's 
     representative to secure applications under this title from 
     individual prospective borrowers, unless such student--
       ``(i) is also employed by the lender for other purposes; 
     and
       ``(ii) made all appropriate disclosures regarding such 
     employment;
       ``(H) offered, directly or indirectly, loans under this 
     part as an inducement to a prospective borrower to purchase a 
     policy of insurance or other product; or
       ``(I) engaged in fraudulent or misleading advertising.

     It shall not be a violation of this paragraph for a lender to 
     provide technical assistance to institutions of higher 
     education comparable to the kinds of technical assistance 
     provided to institutions of higher education by the 
     Department.''.
       (d) School as Lender Program Audit.--Section 435(d) (20 
     U.S.C. 1085(d)) is further amended by adding at the end the 
     following:
       ``(8) School as lender program audit.--Each institution 
     serving as an eligible lender under paragraph (1)(E), and 
     each eligible lender serving as a trustee for an institution 
     of higher education or an organization affiliated with an 
     institution of higher education, shall annually complete and 
     submit to the Secretary a compliance audit to determine 
     whether--
       ``(A) the institution or lender is using all proceeds from 
     special allowance payments and interest payments from 
     borrowers, interest subsidies received from the Department, 
     and any proceeds from the sale or other disposition of loans, 
     for need-based grant programs, in accordance with paragraph 
     (2)(A)(viii);
       ``(B) the institution or lender is using not more than a 
     reasonable portion of the proceeds described in paragraph 
     (2)(A)(viii) for direct administrative expenses; and
       ``(C) the institution or lender is ensuring that the 
     proceeds described in paragraph (2)(A)(viii) are being used 
     to supplement, and not to supplant, Federal and non-Federal 
     funds that would otherwise be used for need-based grant 
     programs.''.
       (e) Cohort Default Rates.--
       (1) Amendments.--Section 435(m) (20 U.S.C. 1085(m)) is 
     amended--
       (A) in paragraph (1)--
       (i) in the first sentence of subparagraph (A), by striking 
     ``end of the following fiscal year'' and inserting ``end of 
     the second fiscal year following the fiscal year in which the 
     students entered repayment'';
       (ii) in subparagraph (B), by striking ``such fiscal year'' 
     and inserting ``such second fiscal year'';
       (iii) in subparagraph (C), by striking ``end of the fiscal 
     year immediately following the year in which they entered 
     repayment'' and inserting ``end of the second fiscal year 
     following the year in which they entered repayment'';
       (B) in paragraph (2)(C)--
       (i) by striking ``end of such following fiscal year is not 
     considered as in default for the purposes of this 
     subsection'' and inserting ``end of the second fiscal year 
     following the year in which the loan entered repayment is not 
     considered as in default for purposes of this subsection''; 
     and
       (ii) by striking ``such following fiscal year'' and 
     inserting ``such second fiscal year''; and
       (C) in paragraph (4)--
       (i) by amending the paragraph heading to read as follows: 
     ``Collection and reporting of cohort default rates and life 
     of cohort default rates.--''; and
       (ii) by amending subparagraph (A) to read as follows:
       ``(A) The Secretary shall publish not less often than once 
     every fiscal year a report showing cohort default data and 
     life of cohort default rates

[[Page 17141]]

     for each category of institution, including: (i) four-year 
     public institutions; (ii) four-year private nonprofit 
     institutions; (iii) two-year public institutions; (iv) two-
     year private nonprofit institutions; (v) four-year 
     proprietary institutions; (vi) two-year proprietary 
     institutions; and (vii) less than two-year proprietary 
     institutions. For purposes of this subparagraph, for any 
     fiscal year in which one or more current and former students 
     at an institution enter repayment on loans under section 428, 
     428B, or 428H, received for attendance at the institution, 
     the Secretary shall publish the percentage of those current 
     and former students who enter repayment on such loans (or on 
     the portion of a loan made under section 428C that is used to 
     repay any such loans) received for attendance at the 
     institution in that fiscal year who default before the end of 
     each succeeding fiscal year.''.
       (2) Effective date and transition.--
       (A) Effective date.--The amendments made by paragraph (1) 
     shall take effect for purposes of calculating cohort default 
     rates for fiscal year 2009 and succeeding fiscal years.
       (B) Transition.--Notwithstanding subparagraph (A), the 
     method of calculating cohort default rates under section 
     435(m) of the Higher Education Act of 1965 as in effect on 
     the day before the date of enactment of this Act shall 
     continue in effect, and the rates so calculated shall be the 
     basis for any sanctions imposed on institutions of higher 
     education because of their cohort default rates, until three 
     consecutive years of cohort default rates calculated in 
     accordance with the amendments made by paragraph (1) are 
     available.

     SEC. 437. DISCHARGE AND CANCELLATION RIGHTS IN CASES OF 
                   DISABILITY.

       (a) FFEL and Direct Loans.--Section 437(a) (20 U.S.C. 
     1087(a)) is amended--
       (1) by striking ``(a) Repayment in Full for Death and 
     Disability.--If a'' and inserting the following:
       ``(a) Repayment in Full for Death and Disability.--
       ``(1) In general.--If a'';
       (2) by inserting ``, or if a student borrower who has 
     received such a loan is unable to engage in any substantial 
     gainful activity by reason of any medically determinable 
     physical or mental impairment that can be expected to result 
     in death, has lasted for a continuous period of not less than 
     60 months, or can be expected to last for a continuous period 
     of not less than 60 months'' after ``of the Secretary),''; 
     and
       (3) by adding at the end the following: ``The Secretary may 
     develop such safeguards as the Secretary determines necessary 
     to prevent fraud and abuse in the discharge of liability 
     under this subsection. Notwithstanding any other provision of 
     this subsection, the Secretary may promulgate regulations to 
     reinstate the obligation of, and resume collection on, loans 
     discharged under this subsection in any case in which--
       ``(A) a borrower received a discharge of liability under 
     this subsection and after the discharge the borrower--
       ``(i) receives a loan made, insured, or guaranteed under 
     this title; or
       ``(ii) has earned income in excess of the poverty line; or
       ``(B) the Secretary determines necessary.''.
       (b) Disability Determinations.--Section 437(a) (20 U.S.C. 
     1087(a)) is further amended by adding at the end the 
     following:
       ``(2) Disability determinations.--A borrower who has been 
     determined by the Secretary of Veterans Affairs to be 
     unemployable due to a service-connected condition and who 
     provides documentation of such determination to the Secretary 
     of Education, shall be considered permanently and totally 
     disabled for the purpose of discharging such borrower's loans 
     under this subsection, and such borrower shall not be 
     required to present additional documentation for purposes of 
     this subsection.''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2010.

     SEC. 438. CONFORMING AMENDMENTS FOR REPEAL OF SECTION 439.

       (a) Part B Amendments.--Part B of title IV (20 U.S.C. 1071 
     et seq.) is amended--
       (1) in section 422A(d)(1) (20 U.S.C. 1072a(d)(1)), by 
     striking ``437, and 439(q)'' and inserting ``and 437'';
       (2) in section 428 (20 U.S.C. 1078)--
       (A) in subsection (b)(1)(G)(i), by striking ``or 439(q)'';
       (B) by striking subsection (h); and
       (C) in subsection (j)(2)--
       (i) by inserting ``and'' at the end of subparagraph (C);
       (ii) by striking ``; and'' at the end of subparagraph (D) 
     and inserting a period; and
       (iii) by striking subparagraph (E); and
       (3) in section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)), by 
     striking ``428C, and 439(q),'' and inserting ``and 428C,''.
       (b) Federal Deposit Insurance Act.--Section 
     18(s)(4)(C)(ii)(I) of the Federal Deposit Insurance Act (12 
     U.S.C. 1828(s)(4)(C)(ii)(I)) is amended by striking ``as 
     amended'' and inserting ``as such section existed on the day 
     before the date of the repeal of such section''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

     SEC. 441. AUTHORIZATION OF APPROPRIATIONS.

       Section 441 (42 U.S.C. 2751) is amended--
       (1) in subsection (b), by striking ``$1,000,000,000 for 
     fiscal year 1999'' and all that follows through the period 
     and inserting ``such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.''; and
       (2) in subsection (c)(1), by inserting ``emergency 
     preparedness and response,'' after ``public safety,''.

     SEC. 442. ALLOWANCE FOR BOOKS AND SUPPLIES.

       Section 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended 
     by striking ``$450'' and inserting ``$600''.

     SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

       Section 443 (42 U.S.C. 2753) is amended--
       (1) in subsection (b)(2)--
       (A) by striking subparagraph (A); and
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively; and
       (2) by adding at the end the following new subsection:
       ``(e) Civic Education and Participation Activities.--
       ``(1) Use of funds.--Funds granted to an institution under 
     this section may be used in accordance with such subsection 
     to compensate (including compensation for time spent in 
     training and travel directly related to civic education and 
     participation activities) students employed in projects 
     that--
       ``(A) teach civics in schools;
       ``(B) raise awareness of government functions or resources; 
     or
       ``(C) increase civic participation.
       ``(2) Priority for schools.--To the extent practicable, an 
     institution shall--
       ``(A) give priority to the employment of students 
     participating in projects that educate or train the public 
     about evacuation, emergency response, and injury prevention 
     strategies relating to natural disasters, acts of terrorism, 
     and other emergency situations; and
       ``(B) ensure that any student compensated with the funds 
     described in paragraph (1) receives appropriate training to 
     carry out the educational services required.
       ``(3) Federal share.--The Federal share of the compensation 
     of work-study students compensated under this subsection may 
     exceed 75 percent.''.

     SEC. 444. FLEXIBLE USE OF FUNDS.

       Section 445 (42 U.S.C. 2755) is amended by adding at the 
     end the following new subsection:
       ``(d) Flexibility in the Event of a Major Disaster.--
       ``(1) In general.--In the event of a major disaster, an 
     eligible institution located in any area affected by such 
     major disaster, as determined by the Secretary, may make 
     payments under this part to disaster-affected students, for 
     the period of time (not to exceed one academic year) in which 
     the disaster-affected students were prevented from fulfilling 
     the students' work-study obligations as described in 
     paragraph (2)(A)(iii), as follows:
       ``(A) Payments may be made under this part to disaster-
     affected students in an amount equal to or less than the 
     amount of wages such students would have been paid under this 
     part had the students been able to complete the work 
     obligation necessary to receive work study funds.
       ``(B) Payments shall not be made to any student who was not 
     eligible for work study or was not completing the work 
     obligation necessary to receive work study funds under this 
     part prior to the occurrence of the major disaster.
       ``(C) Any payments made to disaster-affected students under 
     this subsection shall meet the matching requirements of 
     section 443, unless such matching requirements are waived by 
     the Secretary.
       ``(2) Definitions.--In this subsection:
       ``(A) The term `disaster-affected student' means a student 
     enrolled at an eligible institution who--
       ``(i) received a work-study award under this section for 
     the academic year during which a major disaster occurred;
       ``(ii) earned Federal work-study wages from such eligible 
     institution for such academic year;
       ``(iii) was prevented from fulfilling the student's work-
     study obligation for all or part of such academic year due to 
     such major disaster; and
       ``(iv) was unable to be reassigned to another work-study 
     job.
       ``(B) The term `major disaster' has the meaning given such 
     term in section 102(2) of the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5122(2)).''.

     SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.

       Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended by 
     striking ``$50,000'' and inserting ``$75,000''.

     SEC. 446. ADDITIONAL FUNDS FOR OFF-CAMPUS COMMUNITY SERVICE.

       Section 447 (42 U.S.C. 2756a) is amended--
       (1) by striking ``Each institution participating'' and 
     inserting ``(a) Community Service-Learning.--Each institution 
     participating''; and
       (2) by adding at the end the following new subsection:
       ``(b) Off-Campus Community Service.--
       ``(1) Grants authorized.--In addition to funds made 
     available under section 443(b)(2)(A), the Secretary is 
     authorized to award grants to institutions participating 
     under this part to supplement off-campus community service 
     employment.
       ``(2) Use of funds.--An institution shall ensure that funds 
     granted to such institution under this subsection are used in 
     accordance with section 443(b)(2)(A) to recruit and 
     compensate students (including compensation for time spent in 
     training and for travel directly related to such community 
     service).
       ``(3) Priority.--In awarding grants under this subsection, 
     the Secretary shall give priority

[[Page 17142]]

     to applications that support postsecondary students assisting 
     with early childhood education activities and activities in 
     preparation for emergencies and natural disasters.
       ``(4) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection 
     such sums as may be necessary for fiscal year 2009 and each 
     of the five succeeding fiscal years.''.

     SEC. 447. WORK COLLEGES.

       Section 448 (42 U.S.C. 2756b) is amended--
       (1) by striking ``work-learning'' each place it appears and 
     inserting ``work-learning-service'';
       (2) by striking subsection (e) and inserting the following:
       ``(e) Definitions.--For the purpose of this section--
       ``(1) the term `work college' means an eligible institution 
     that--
       ``(A) has been a public or private nonprofit, four-year, 
     degree-granting institution with a commitment to community 
     service;
       ``(B) has operated a comprehensive work-learning-service 
     program for at least two years;
       ``(C) requires students, including at least one-half of all 
     students who are enrolled on a full-time basis, to 
     participate in a comprehensive work-learning-service program 
     for at least five hours each week, or at least 80 hours 
     during each period of enrollment, except summer school, 
     unless the student is engaged in an institutionally organized 
     or approved study abroad or externship program; and
       ``(D) provides students participating in the comprehensive 
     work-learning-service program with the opportunity to 
     contribute to their education and to the welfare of the 
     community as a whole; and
       ``(2) the term `comprehensive student work-learning-service 
     program' means a student work-learning-service program that--
       ``(A) is an integral and stated part of the institution's 
     educational philosophy and program;
       ``(B) requires participation of all resident students for 
     enrollment and graduation;
       ``(C) includes learning objectives, evaluation, and a 
     record of work performance as part of the student's college 
     record;
       ``(D) provides programmatic leadership by college personnel 
     at levels comparable to traditional academic programs;
       ``(E) recognizes the educational role of work-learning-
     service supervisors; and
       ``(F) includes consequences for nonperformance or failure 
     in the work-learning-service program similar to the 
     consequences for failure in the regular academic program.''; 
     and
       (3) in subsection (f), by striking ``$5,000,000'' and all 
     that follows through the period and inserting ``such sums as 
     may be necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.''.

                  PART D--FEDERAL DIRECT STUDENT LOAN

     SEC. 451. TERMS AND CONDITIONS OF LOANS.

       (a) Income-Based Repayment.--Section 455(d)(1) (20 U.S.C. 
     1087e(d)(1)) is amended--
       (1) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(E) beginning on July 1, 2009, an income-based repayment 
     plan that enables borrowers who have a partial financial 
     hardship to make a lower monthly payment in accordance with 
     section 493C, except that the plan described in this 
     subparagraph shall not be available to the borrower of a 
     Federal Direct PLUS Loan made on behalf of a dependent 
     student or a Federal Direct Consolidation Loan, if the 
     proceeds of such loan were used to discharge the liability on 
     such Federal Direct PLUS Loan or a loan under section 428B 
     made on behalf of a dependent student.''.
       (b) Public Service Job Definition.--
       (1) In general.--Section 455(m)(3)(B) (20 U.S.C. 
     1087e(m)(3)(B)) is amended to read as follows:
       ``(B) Public service job.--The term `public service job' 
     means--
       ``(i) a full-time job in emergency management, government 
     (excluding time served as a member of Congress), military 
     service, public safety, law enforcement, public health 
     (including nurses, nurse practitioners, nurses in a clinical 
     setting, and full-time professionals engaged in health care 
     practitioner occupations and health care support occupations, 
     as such terms are defined by the Bureau of Labor Statistics), 
     public education, social work in a public child or family 
     service agency, public interest law services (including 
     prosecution or public defense or legal advocacy on behalf of 
     low-income communities at a nonprofit organization), early 
     childhood education (including licensed or regulated 
     childcare, Head Start, and State funded prekindergarten), 
     public service for individuals with disabilities, public 
     service for the elderly, public library sciences, school-
     based library sciences and other school-based services, or at 
     an organization that is described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 and exempt from taxation under 
     section 501(a) of such Code; or
       ``(ii) teaching as a full-time faculty member at a Tribal 
     College or University as defined in section 316(b) and other 
     faculty teaching in high-needs subject areas or areas of 
     shortage (including nurse faculty, foreign language faculty, 
     and part-time faculty at community colleges), as determined 
     by the Secretary.''.
       (2) Ineligibility for double benefits.--Section 455(m) (20 
     U.S.C. 1087e(m)) is further amended by adding at the end the 
     following:
       ``(4) Ineligibility for double benefits.--No borrower may, 
     for the same service, receive a reduction of loan obligations 
     under both this subsection and section 428J, 428K, 428L, or 
     460.''.
       (c) Identity Fraud Protection.--Section 455 (as amended by 
     this section) (20 U.S.C. 1087e) is amended by adding at the 
     end the following:
       ``(n) Identity Fraud Protection.--The Secretary shall take 
     such steps as may be necessary to ensure that monthly Federal 
     Direct Loan statements and other publications of the 
     Department do not contain more than four digits of the Social 
     Security number of any individual.''.
       (d) No Accrual of Interest for Active Duty Service 
     Members.--Section 455 (as amended by this section) (20 U.S.C. 
     1087e) is further amended by adding at the end the following:
       ``(o) No Accrual of Interest for Active Duty Service 
     Members.--
       ``(1) In general.--Notwithstanding any other provision of 
     this part and in accordance with paragraphs (2) and (4), 
     interest shall not accrue for an eligible military borrower 
     on a loan made under this part for which the first 
     disbursement is made on or after October 1, 2008.
       ``(2) Consolidation loans.--In the case of any 
     consolidation loan made under this part that is disbursed on 
     or after October 1, 2008, interest shall not accrue pursuant 
     to this subsection only on such portion of such loan as was 
     used to repay a loan made under this part for which the first 
     disbursement is made on or after October 1, 2008.
       ``(3) Eligible military borrower.--In this subsection, the 
     term `eligible military borrower' means an individual who--
       ``(A)(i) is serving on active duty during a war or other 
     military operation or national emergency; or
       ``(ii) is performing qualifying National Guard duty during 
     a war or other military operation or national emergency; and
       ``(B) is serving in an area of hostilities in which service 
     qualifies for special pay under section 310 of title 37, 
     United States Code.
       ``(4) Limitation.--An individual who qualifies as an 
     eligible military borrower under this subsection may receive 
     the benefit of this subsection for not more than 60 
     months.''.
       (e) Disclosures.--Section 455 (as amended by this section) 
     (20 U.S.C. 1087e) is further amended by adding at the end the 
     following:
       ``(p) Disclosures.--Each institution of higher education 
     with which the Secretary has an agreement under section 453, 
     and each contractor with which the Secretary has a contract 
     under section 456, shall, with respect to loans under this 
     part and in accordance with such regulations as the Secretary 
     shall prescribe, comply with each of the requirements under 
     section 433 that apply to a lender with respect to a loan 
     under part B.''.

     SEC. 452. FUNDS FOR ADMINISTRATIVE EXPENSES.

       Section 458(a) (20 U.S.C. 1087h(a)) is amended--
       (1) in paragraph (2)--
       (A) in the heading of such paragraph, by striking ``2011'' 
     and inserting ``2014''; and
       (B) by striking ``2011'' and inserting ``2014''; and
       (2) in paragraph (3), by striking ``2011'' and inserting 
     ``2014''.

     SEC. 453. GUARANTY AGENCY RESPONSIBILITIES AND PAYMENTS; 
                   REPORTS AND COST ESTIMATES.

       Section 459A of the Higher Education Act of 1965 (20 U.S.C. 
     1087i-1) is amended--
       (1) by redesignating subsection (d) as subsection (f); and
       (2) by inserting after subsection (c) the following:
       ``(d) Guaranty Agency Responsibilities and Payments.--
     Notwithstanding any other provision of this Act, beginning on 
     the date on which the Secretary purchases a loan under this 
     section--
       ``(1) the guaranty agency that insured such loan shall 
     cease to have any obligations, responsibilities, or rights 
     (including rights to any payment) under this Act for any 
     activity related to the administration of such loan that is 
     carried out or required to be carried out on or after the 
     date of such purchase; and
       ``(2) the insurance issued by such agency pursuant to 
     section 428(b) for such loan shall cease to be effective with 
     respect to any default on such loan that occurs on or after 
     the date of such purchase.
       ``(e) Reports and Cost Estimates.--The Secretary shall 
     prepare, transmit to the authorizing committees, and make 
     available to the public, the following:
       ``(1) Quarterly reports.--
       ``(A) Contents.--Not later than 60 days after the end of 
     each quarter during the period beginning July 1, 2008, and 
     ending September 30, 2009, a quarterly report on--
       ``(i) the number of loans the Secretary has agreed to 
     purchase, or has purchased, using the authority provided 
     under this section, and the total amount of outstanding 
     principal and accrued interest of such loans, during such 
     period; and
       ``(ii) the number of loans in which the Secretary has 
     purchased a participation interest, and the total amount of 
     outstanding principal and accrued interest of such loans, 
     during such period.
       ``(B) Disaggregated information.--For each quarterly 
     report, the information described in clauses (i) and (ii) of 
     subparagraph (A) shall be disaggregated by lender and, for 
     each lender, by category of institution (using the categories 
     described in section 132(d)) and type of loan.
       ``(2) Estimates of purchase program costs.--Not later than 
     February 15, 2010, an estimate of the costs associated with 
     the program of purchasing loans described in paragraph

[[Page 17143]]

     (1)(A)(i) during the period beginning July 1, 2008, and 
     ending September 30, 2009, and an estimate of the costs 
     associated with the program of purchasing a participation 
     interest in loans described in paragraph (1)(A)(ii) during 
     such period. Each such estimate shall--
       ``(A) contain the same level of detail, and be reported in 
     a similar manner, as the budget estimates provided for the 
     loan program under part B and the direct student loan program 
     under this part in the President's annual budget submission 
     to Congress, except that current and future administrative 
     costs shall also be reported;
       ``(B) include an estimate of the gross and net outlays that 
     have been, or will be, incurred by the Federal Government 
     (including subsidy and administrative costs, and any payments 
     made by the Department to lenders, trusts, or other entities 
     related to such activities) in purchasing such loans or 
     purchasing a participation interest in such loans during such 
     period (as applicable); and
       ``(C) include a comparison of--
       ``(i) the average amount of the gross and net outlays 
     (including costs and payments) described in subparagraph (B) 
     for each $100 of loans purchased or for which a participation 
     interest was purchased (as applicable) during such period, 
     disaggregated by type of loan; with
       ``(ii) the average amount of such gross and net outlays 
     (including costs and payments) to the Federal Government for 
     each $100 of comparable loans made under this part and part B 
     during such period, disaggregated by part and by type of 
     loan.
       ``(3) Annual cost estimates.--Not later than February 15 of 
     the fiscal year following each of the fiscal years 2008, 
     2009, and 2010, an annual estimate of the costs associated 
     with the program of purchasing loans described in paragraph 
     (1)(A)(i), and an annual estimate of the costs associated 
     with the program of purchasing a participation interest in 
     loans described in paragraph (1)(A)(ii), that includes the 
     information described in paragraph (2) for such fiscal 
     year.''.

     SEC. 454. LOAN CANCELLATION FOR TEACHERS.

       (a) In General.--Section 460 (20 U.S.C. 1087j) is amended--
       (1) in subsection (b)(1)(A)(i)--
       (A) by inserting ``or location'' after ``a school''; and
       (B) by inserting ``or locations'' after ``schools''; and
       (2) in subsection (c)(3)(B)(iii), by inserting ``or, in the 
     case of a teacher who is employed by an educational service 
     agency, as certified by the chief administrative officer of 
     such agency,'' after ``borrower is employed,''.
       (b) Prevention of Double Benefits.--Section 460(g)(2) (20 
     U.S.C. 1087j(g)(2)) is amended to read as follows:
       ``(2) Prevention of double benefits.--No borrower may, for 
     the same voluntary service, receive a benefit under both this 
     section and--
       ``(A) section 428J;
       ``(B) section 428K;
       ``(C) section 455(m); or
       ``(D) subtitle D of title I of the National and Community 
     Service Act of 1990 (42 U.S.C. 12571 et seq.).''.
       (c) Technical Amendments.--Section 460(b) (as amended by 
     subsection (a)(1)) (20 U.S.C. 1087j(b)) is further amended--
       (1) by striking paragraph (2);
       (2) by striking ``Program Authorized.--'' and all that 
     follows through ``The Secretary shall'' and inserting 
     ``Program Authorized.--The Secretary shall'';
       (3) by redesignating subparagraph (B) as paragraph (2), and 
     adjusting the margin accordingly; and
       (4) by redesignating subparagraph (A) as paragraph (1), by 
     redesignating clauses (i) and (ii) of such paragraph (as so 
     redesignated) as subparagraphs (A) and (B), respectively, and 
     by adjusting the margins accordingly.
       (d) Conforming Amendments.--Section 460 (20 U.S.C. 1087j) 
     is further amended--
       (1) in subsection (c)(1), by striking ``(b)(1)(A)'' and 
     inserting ``(b)(1)'';
       (2) in subsection (c)(3)--
       (A) in subparagraph (A)(i), by striking ``(b)(1)'' and 
     inserting ``(b)''; and
       (B) in subparagraph (B)(i), by striking ``(b)(1)'' and 
     inserting ``(b)''; and
       (3) in subsection (g)(3), by striking ``(b)(1)(A)(ii)'' and 
     inserting ``(b)(1)(B)''.

                     PART E--FEDERAL PERKINS LOANS

     SEC. 461. EXTENSION OF AUTHORITY.

       Section 461(b) (20 U.S.C. 1087aa(b)) is amended--
       (1) in paragraph (1), by striking ``$250,000,000 for fiscal 
     year 1999'' and all that follows through the period and 
     inserting ``$300,000,000 for fiscal year 2009 and for each of 
     the five succeeding fiscal years.''; and
       (2) in paragraph (2), by striking ``2003'' each place it 
     appears and inserting ``2015''.

     SEC. 462. ALLOWANCE FOR BOOKS AND SUPPLIES.

       Section 462(c)(4)(D) (20 U.S.C. 1087bb(c)(4)(D)) is amended 
     by striking ``$450'' and inserting ``$600''.

     SEC. 463. AGREEMENTS WITH INSTITUTIONS.

       (a) Transfers for Collection.--Section 463(a)(4)(B) (20 
     U.S.C. 1087cc(a)(4)(B)) is amended to read as follows:
       ``(B) if the institution is not one described in 
     subparagraph (A), the Secretary may allow such institution to 
     refer such note or agreement to the Secretary, without 
     recompense, except that, once every six months, any sums 
     collected on such a loan (less an amount not to exceed 30 
     percent of any such sums collected to cover the Secretary's 
     collection costs) shall be repaid to such institution and 
     treated as an additional capital contribution under section 
     462;''.
       (b) Revise Authority To Prescribe Additional Fiscal 
     Controls.--Section 463(a)(9) (20 U.S.C. 1087cc(a)(9)) is 
     amended by inserting ``, except that nothing in this 
     paragraph shall be construed to permit the Secretary to 
     require the assignment of loans to the Secretary other than 
     as is provided for in paragraphs (4) and (5)'' before the 
     period.

     SEC. 464. PERKINS LOAN TERMS AND CONDITIONS.

       (a) Loan Limits.--Section 464(a) (20 U.S.C. 1087dd(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) by striking ``$4,000'' in clause (i) and inserting 
     ``$5,500''; and
       (B) by striking ``$6,000'' in clause (ii) and inserting 
     ``$8,000''; and
       (2) in paragraph (2)(B)--
       (A) by striking ``$40,000'' in clause (i) and inserting 
     ``$60,000'';
       (B) by striking ``$20,000'' in clause (ii) and inserting 
     ``$27,500''; and
       (C) by striking ``$8,000'' in clause (iii) and inserting 
     ``$11,000''.
       (b) Discharge and Cancellation Rights in Cases of 
     Disability.--
       (1) Amendment.--Section 464 (20 U.S.C. 1087dd(c)) is 
     further amended--
       (A) in subsection (c)(1)(F), by striking ``canceled upon 
     the death'' and all that follows through the semicolon and 
     inserting ``cancelled--
       ``(i) upon the death of the borrower;
       ``(ii) if the borrower becomes permanently and totally 
     disabled as determined in accordance with regulations of the 
     Secretary;
       ``(iii) if the borrower is unable to engage in any 
     substantial gainful activity by reason of any medically 
     determinable physical or mental impairment that can be 
     expected to result in death, has lasted for a continuous 
     period of not less than 60 months, or can be expected to last 
     for a continuous period of not less than 60 months; or
       ``(iv) if the borrower is determined by the Secretary of 
     Veterans Affairs to be unemployable due to a service-
     connected disability;''; and
       (B) by adding at the end the following:
       ``(k) The Secretary may develop such additional safeguards 
     as the Secretary determines necessary to prevent fraud and 
     abuse in the cancellation of liability under subsection 
     (c)(1)(F). Notwithstanding subsection (c)(1)(F), the 
     Secretary may promulgate regulations to resume collection on 
     loans cancelled under subsection (c)(1)(F) in any case in 
     which--
       ``(1) a borrower received a cancellation of liability under 
     subsection (c)(1)(F) and after the cancellation the 
     borrower--
       ``(A) receives a loan made, insured, or guaranteed under 
     this title; or
       ``(B) has earned income in excess of the poverty line; or
       ``(2) the Secretary determines necessary.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall take effect on July 1, 2008.
       (c) Forbearance.--Section 464 (20 U.S.C. 1087dd) is further 
     amended--
       (1) in subsection (e)--
       (A) in the matter preceding paragraph (1), by striking ``, 
     upon written request,'' and inserting ``, as documented in 
     accordance with paragraph (2),'';
       (B) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively;
       (C) by inserting ``(1)'' after ``Forbearance.--''; and
       (D) by adding at the end the following:
       ``(2) For the purpose of paragraph (1), the terms of 
     forbearance agreed to by the parties shall be documented by--
       ``(A) confirming the agreement of the borrower by notice to 
     the borrower from the institution of higher education; and
       ``(B) recording the terms in the borrower's file.'';
       (2) in subsection (h)(1)(A), by striking ``12 ontime'' and 
     inserting ``9 on-time''; and
       (3) in subsection (j)(2), by striking ``(e)(3)'' and 
     inserting ``(e)(1)(C)''.

     SEC. 465. CANCELLATION FOR PUBLIC SERVICE.

       Section 465(a) (20 U.S.C. 1087ee(a)) is amended--
       (1) in paragraph (2)--
       (A) by striking subparagraph (A) and inserting the 
     following:
       ``(A) as a full-time teacher for service in an academic 
     year (including such a teacher employed by an educational 
     service agency)--
       ``(i) in a public or other nonprofit private elementary 
     school or secondary school, which, for the purpose of this 
     paragraph and for that year--
       ``(I) has been determined by the Secretary (pursuant to 
     regulations of the Secretary and after consultation with the 
     State educational agency of the State in which the school is 
     located) to be a school in which the number of children 
     meeting a measure of poverty under section 1113(a)(5) of the 
     Elementary and Secondary Education Act of 1965, exceeds 30 
     percent of the total number of children enrolled in such 
     school; and
       ``(II) is in the school district of a local educational 
     agency which is eligible in such year for assistance pursuant 
     to part A of title I of the Elementary and Secondary 
     Education Act of 1965; or
       ``(ii) in one or more public, or nonprofit private, 
     elementary schools or secondary schools or locations operated 
     by an educational service agency that have been determined by 
     the Secretary (pursuant to regulations of the Secretary

[[Page 17144]]

     and after consultation with the State educational agency of 
     the State in which the educational service agency operates) 
     to be a school or location at which the number of children 
     taught who meet a measure of poverty under section 1113(a)(5) 
     of the Elementary and Secondary Education Act of 1965, 
     exceeds 30 percent of the total number of children taught at 
     such school or location;'';
       (B) in subparagraph (B), by striking ``Head Start Act 
     which'' and inserting ``Head Start Act, or in a 
     prekindergarten or child care program that is licensed or 
     regulated by the State, that'';
       (C) in subparagraph (C), by inserting ``, including a 
     system administered by an educational service agency'' after 
     ``secondary school system'';
       (D) by striking subparagraph (F) and inserting the 
     following:
       ``(F) as a full-time law enforcement officer or corrections 
     officer for service to local, State, or Federal law 
     enforcement or corrections agencies, or as a full-time 
     attorney employed in a defender organization established in 
     accordance with section 3006A(g)(2) of title 18, United 
     States Code;'';
       (E) in subparagraph (H), by striking ``or'' after the 
     semicolon;
       (F) in subparagraph (I), by striking the period and 
     inserting a semicolon; and
       (G) by inserting before the matter following subparagraph 
     (I) the following:
       ``(J) as a full-time fire fighter for service to a local, 
     State, or Federal fire department or fire district;
       ``(K) as a full-time faculty member at a Tribal College or 
     University, as that term is defined in section 316;
       ``(L) as a librarian, if the librarian has a master's 
     degree in library science and is employed in--
       ``(i) an elementary school or secondary school that is 
     eligible for assistance under part A of title I of the 
     Elementary and Secondary Education Act of 1965; or
       ``(ii) a public library that serves a geographic area that 
     contains one or more schools eligible for assistance under 
     part A of title I of the Elementary and Secondary Education 
     Act of 1965; or
       ``(M) as a full-time speech language pathologist, if the 
     pathologist has a masters degree and is working exclusively 
     with schools that are eligible for assistance under title I 
     of the Elementary and Secondary Education Act of 1965.''; and
       (2) in paragraph (3)(A)--
       (A) in clause (i)--
       (i) by inserting ``(D),'' after ``(C),''; and
       (ii) by striking ``or (I)'' and inserting ``(I), (J), (K), 
     (L), or (M)'';
       (B) in clause (ii), by inserting ``or'' after the 
     semicolon;
       (C) by striking clause (iii); and
       (D) by redesignating clause (iv) as clause (iii).

     SEC. 466. SENSE OF CONGRESS REGARDING FEDERAL PERKINS LOANS.

       It is the sense of Congress that the Federal Perkins Loan 
     Program, which provides low-interest loans to help needy 
     students finance the costs of postsecondary education, is an 
     important part of Federal student aid, and should remain a 
     campus-based aid program at colleges and universities.

                         PART F--NEED ANALYSIS

     SEC. 471. COST OF ATTENDANCE.

       (a) Amendments.--Section 472(3) (20 U.S.C. 1087ll(3)) is 
     amended--
       (1) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (2) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (3) by inserting after subparagraph (B), as amended by 
     paragraph (1), the following:
       ``(C) for students who live in housing located on a 
     military base or for which a basic allowance is provided 
     under section 403(b) of title 37, United States Code, shall 
     be an allowance based on the expenses reasonably incurred by 
     such students for board but not for room; and''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2010.

     SEC. 472. DISCRETION TO MAKE ADJUSTMENTS.

       (a) Amendments.--Section 479A(a) (as amended by Public Law 
     110-84) (20 U.S.C. 1087tt(a)) is amended--
       (1) by striking ``medical or dental expenses'' and 
     inserting ``medical, dental, or nursing home expenses'';
       (2) by inserting ``or dependent care'' after ``child 
     care'';
       (3) by inserting ``student or'' before ``family member who 
     is a dislocated worker''; and
       (4) by striking the second to last sentence and inserting 
     the following: ``In addition, nothing in this title shall be 
     interpreted as limiting the authority of the student 
     financial aid administrator in such cases (1) to request and 
     use supplementary information about the financial status or 
     personal circumstances of eligible applicants in selecting 
     recipients and determining the amount of awards under this 
     title, or (2) to offer a dependent student financial 
     assistance under section 428H or a Federal Direct 
     Unsubsidized Stafford Loan without requiring the parents of 
     such student to file the financial aid form prescribed under 
     section 483 if the student financial aid administrator 
     verifies that the parent or parents of such student have 
     ended financial support of such student and refuse to file 
     such form.''.
       (b) Effective Date Amendment to the College Cost Reduction 
     and Access Act.--Section 603(b) of the College Cost Reduction 
     and Access Act (Public Law 110-84) is amended by striking 
     ``July 1, 2009'' and inserting ``the date of enactment of the 
     Higher Education Opportunity Act''.

     SEC. 473. DEFINITIONS.

       (a) Total Income.--Section 480(a) (as amended by Public Law 
     110-84) (20 U.S.C. 1087vv(a)) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``(A)'' after ``(1)'';
       (B) by inserting ``subparagraph (B) and'' after ``provided 
     in''; and
       (C) by adding at the end the following new subparagraph:
       ``(B) Notwithstanding section 478(a), the Secretary may 
     provide for the use of data from the second preceding tax 
     year when and to the extent necessary to carry out the 
     simplification of applications (including simplification for 
     a subset of applications) used for the estimation and 
     determination of financial aid eligibility. Such 
     simplification may include the sharing of data between the 
     Internal Revenue Service and the Department, pursuant to the 
     consent of the taxpayer.''; and
       (2) in paragraph (2), by inserting ``no portion of 
     veterans' education benefits received by an individual,'' 
     after ``any program by an individual,''.
       (b) Untaxed Income and Benefits.--Section 480(b)(1)(E) (as 
     amended by Public Law 110-84) (20 U.S.C. 1087vv(b)(1)(E)) is 
     amended by inserting ``, except that the value of on-base 
     military housing or the value of basic allowance for housing 
     determined under section 403(b) of title 37, United States 
     Code, received by the parents, in the case of a dependent 
     student, or the student or student's spouse, in the case of 
     an independent student, shall be excluded'' before the 
     semicolon.
       (c) Independent Student.--Section 480(d)(1) (as amended by 
     Public Law 110-84) (20 U.S.C. 1087vv(d)(1)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following:
       ``(B) is an orphan, in foster care, or a ward of the court, 
     or was an orphan, in foster care, or a ward of the court at 
     any time when the individual was 13 years of age or older;''; 
     and
       (2) by striking subparagraph (C) and inserting the 
     following:
       ``(C) is, or was immediately prior to attaining the age of 
     majority, an emancipated minor or in legal guardianship as 
     determined by a court of competent jurisdiction in the 
     individual's State of legal residence;''.
       (d) Treatment of Cooperative Education Work Income.--
     Section 480(e) (as amended by Public Law 110-84) (20 U.S.C. 
     1087vv(e)) is amended--
       (1) by redesignating paragraphs (2) through (5) as 
     paragraphs (3) through (6), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph:
       ``(2) any income earned from work under a cooperative 
     education program offered by an institution of higher 
     education;''.
       (e) Other Financial Assistance.--Section 480(j)(1) (20 
     U.S.C. 1087vv(j)(1)) is amended--
       (1) by striking ``veterans' education benefits as defined 
     in subsection (c), and''; and
       (2) by inserting before the period at the end the 
     following: ``, but excluding veterans' education benefits as 
     defined in subsection (c)''.
       (f) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2010.

       PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

     SEC. 481. DEFINITIONS.

       Section 481 (20 U.S.C. 1088) is amended--
       (1) in subsection (a)(2)(B), by inserting ``and that 
     measures program length in credit hours or clock hours'' 
     after ``baccalaureate degree''; and
       (2) by adding at the end the following:
       ``(e) Consumer Reporting Agency.--For purposes of this 
     title, the term `consumer reporting agency' has the meaning 
     given the term `consumer reporting agency that compiles and 
     maintains files on consumers on a nationwide basis' in 
     Section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 
     1681a(p)).
       ``(f) Definition of Educational Service Agency.--For 
     purposes of parts B, D, and E, the term `educational service 
     agency' has the meaning given the term in section 9101 of the 
     Elementary and Secondary Education Act of 1965.''.

     SEC. 482. MASTER CALENDAR.

       (a) Amendment.--Section 482 (20 U.S.C. 1089) is amended--
       (1) in subsection (a)(1), by striking subparagraphs (B) and 
     (C) and inserting the following:
       ``(B) by March 1: proposed modifications, updates, and 
     notices pursuant to sections 478 and 483(a)(5) published in 
     the Federal Register;
       ``(C) by June 1: final modifications, updates, and notices 
     pursuant to sections 478 and 483(a)(5) published in the 
     Federal Register;''; and
       (2) by adding at the end the following:
       ``(e) Compliance Calendar.--Prior to the beginning of each 
     award year, the Secretary shall provide to institutions of 
     higher education a list of all the reports and disclosures 
     required under this Act. The list shall include--
       ``(1) the date each report or disclosure is required to be 
     completed and to be submitted, made available, or 
     disseminated;
       ``(2) the required recipients of each report or disclosure;
       ``(3) any required method for transmittal or dissemination 
     of each report or disclosure;
       ``(4) a description of the content of each report or 
     disclosure sufficient to allow the institution to identify 
     the appropriate individuals to be assigned the responsibility 
     for such report or disclosure;

[[Page 17145]]

       ``(5) references to the statutory authority, applicable 
     regulations, and current guidance issued by the Secretary 
     regarding each report or disclosure; and
       ``(6) any other information which is pertinent to the 
     content or distribution of the report or disclosure.''.
       (b) Effective Date.--The amendment made by subsection 
     (a)(1) shall take effect on July 1, 2010.

     SEC. 483. IMPROVEMENTS TO PAPER AND ELECTRONIC FORMS AND 
                   PROCESSES.

       (a) Common Financial Aid Form Development and Processing.--
     Section 483 (20 U.S.C. 1090) is amended--
       (1) in subsection (a), by striking paragraphs (1) through 
     (7) and inserting the following:
       ``(1) In general.--The Secretary, in cooperation with 
     representatives of agencies and organizations involved in 
     student financial assistance, shall produce, distribute, and 
     process free of charge common financial reporting forms as 
     described in this subsection to be used for application and 
     reapplication to determine the need and eligibility of a 
     student for financial assistance under parts A through E 
     (other than subpart 4 of part A). The forms shall be made 
     available to applicants in both paper and electronic formats 
     and shall be referred to as the `Free Application for Federal 
     Student Aid' or the `FAFSA'. The Secretary shall work to make 
     the FAFSA consumer-friendly and to make questions on the 
     FAFSA easy for students and families to read and understand, 
     and shall ensure that the FAFSA is available in formats 
     accessible to individuals with disabilities.
       ``(2) Paper format.--
       ``(A) In general.--The Secretary shall develop, make 
     available, and process--
       ``(i) a paper version of EZ FAFSA, as described in 
     subparagraph (B); and
       ``(ii) a paper version of the other forms described in this 
     subsection, in accordance with subparagraph (C), for any 
     applicant who does not meet the requirements of or does not 
     wish to use the process described in subparagraph (B).
       ``(B) EZ fafsa.--
       ``(i) In general.--The Secretary shall develop and use, 
     after appropriate field testing, a simplified paper form, to 
     be known as the EZ FAFSA, to be used for applicants meeting 
     the requirements of subsection (b) or (c) of section 479.
       ``(ii) Reduced data requirements.--The EZ FAFSA shall 
     permit an applicant to submit, for financial assistance 
     purposes, only the data elements required to make a 
     determination of whether the applicant meets the requirements 
     under subsection (b) or (c) of section 479.
       ``(iii) State data.--The Secretary shall include on the EZ 
     FAFSA such data items as may be necessary to award State 
     financial assistance, as provided under paragraph (5), except 
     that the Secretary shall not include a State's data if that 
     State does not permit the State's resident applicants to use 
     the EZ FAFSA for State assistance.
       ``(iv) Free availability and processing.--The provisions of 
     paragraph (6) shall apply to the EZ FAFSA, and the data 
     collected by means of the EZ FAFSA shall be available to 
     institutions of higher education, guaranty agencies, and 
     States in accordance with paragraph (10).
       ``(C) Promoting the use of electronic fafsa.--
       ``(i) In general.--The Secretary shall make all efforts to 
     encourage all applicants to utilize the electronic version of 
     the forms described in paragraph (3).
       ``(ii) Maintenance of the fafsa in a printable electronic 
     file.--The Secretary shall maintain a version of the paper 
     forms described in subparagraphs (A) and (B) in a printable 
     electronic file that is easily portable, accessible, and 
     downloadable to students on the same website used to provide 
     students with the electronic version of the forms described 
     in paragraph (3).
       ``(iii) Requests for printed copy.--The Secretary shall 
     provide a printed copy of the full paper version of FAFSA 
     upon request.
       ``(iv) Reporting requirement.--The Secretary shall maintain 
     data, and periodically report to Congress, on the impact of 
     the digital divide on students completing applications for 
     aid under this title. The Secretary shall report on the steps 
     taken to eliminate the digital divide and reduce production 
     of the paper form described in subparagraph (A). The 
     Secretary's report shall specifically address the impact of 
     the digital divide on the following student populations:

       ``(I) Independent students.
       ``(II) Traditionally underrepresented students.
       ``(III) Dependent students.

       ``(3) Electronic format.--
       ``(A) In general.--The Secretary shall produce, distribute, 
     and process forms in electronic format to meet the 
     requirements of paragraph (1). The Secretary shall develop an 
     electronic version of the forms for applicants who do not 
     meet the requirements of subsection (b) or (c) of section 
     479.
       ``(B) Simplified applications: fafsa on the web.--
       ``(i) In general.--The Secretary shall develop and use a 
     simplified electronic version of the form to be used by 
     applicants meeting the requirements under subsection (b) or 
     (c) of section 479.
       ``(ii) Reduced data requirements.--The simplified 
     electronic version of the forms shall permit an applicant to 
     submit, for financial assistance purposes, only the data 
     elements required to make a determination of whether the 
     applicant meets the requirements under subsection (b) or (c) 
     of section 479.
       ``(iii) Use of forms.--Nothing in this subsection shall be 
     construed to prohibit the use of the forms developed by the 
     Secretary pursuant to this paragraph by an eligible 
     institution, eligible lender, guaranty agency, State grant 
     agency, private computer software provider, a consortium 
     thereof, or such other entities as the Secretary may 
     designate.
       ``(C) State data.--The Secretary shall include on the 
     electronic version of the forms such items as may be 
     necessary to determine eligibility for State financial 
     assistance, as provided under paragraph (5), except the 
     Secretary shall not require an applicant to enter data 
     pursuant to this subparagraph that are required by any State 
     other than the applicant's State of residence.
       ``(D) Availability and processing.--The data collected by 
     means of the simplified electronic version of the forms shall 
     be available to institutions of higher education, guaranty 
     agencies, and States in accordance with paragraph (10).
       ``(E) Privacy.--The Secretary shall ensure that data 
     collection under this paragraph complies with section 552a of 
     title 5, United States Code, and that any entity using the 
     electronic version of the forms developed by the Secretary 
     pursuant to this paragraph shall maintain reasonable and 
     appropriate administrative, technical, and physical 
     safeguards to ensure the integrity and confidentiality of the 
     information, and to protect against security threats, or 
     unauthorized uses or disclosures of the information provided 
     on the electronic version of the forms. Data collected by 
     such electronic version of the forms shall be used only for 
     the application, award, and administration of aid awarded 
     under this title, State aid, or aid awarded by eligible 
     institutions or such entities as the Secretary may designate. 
     No data collected by such electronic version of the forms 
     shall be used for making final aid awards under this title 
     until such data have been processed by the Secretary or a 
     contractor or designee of the Secretary, except as may be 
     permitted under this title.
       ``(F) Signature.--Notwithstanding any other provision of 
     this Act, the Secretary may continue to permit an electronic 
     version of the form under this paragraph to be submitted 
     without a signature, if a signature is subsequently submitted 
     by the applicant or if the applicant uses a personal 
     identification number provided by the Secretary under 
     subparagraph (G).
       ``(G) Personal identification numbers authorized.--The 
     Secretary may continue to assign to an applicant a personal 
     identification number--
       ``(i) to enable the applicant to use such number as a 
     signature for purposes of completing an electronic version of 
     a form developed under this paragraph; and
       ``(ii) for any purpose determined by the Secretary to 
     enable the Secretary to carry out this title.
       ``(H) Personal identification number improvement.--The 
     Secretary shall continue to work with the Commissioner of 
     Social Security to minimize the time required for an 
     applicant to obtain a personal identification number when 
     applying for aid under this title through an electronic 
     version of a form developed under this paragraph.
       ``(4) Streamlining.--
       ``(A) Streamlined reapplication process.--
       ``(i) In general.--The Secretary shall continue to 
     streamline reapplication forms and processes for an applicant 
     who applies for financial assistance under this title in the 
     next succeeding academic year subsequent to an academic year 
     for which such applicant applied for financial assistance 
     under this title.
       ``(ii) Updating of data elements.--The Secretary shall 
     determine, in cooperation with States, institutions of higher 
     education, agencies, and organizations involved in student 
     financial assistance, the data elements that may be 
     transferred from the previous academic year's application and 
     those data elements that shall be updated.
       ``(iii) Reduced data authorized.--Nothing in this title 
     shall be construed as limiting the authority of the Secretary 
     to reduce the number of data elements required of 
     reapplicants.
       ``(iv) Zero family contribution.--Applicants determined to 
     have a zero family contribution pursuant to section 479(c) 
     shall not be required to provide any financial data in a 
     reapplication form, except data that are necessary to 
     determine eligibility under such section.
       ``(B) Reduction of data elements.--
       ``(i) Reduction encouraged.--Of the number of data elements 
     on the FAFSA used for the 2009-2010 award year, the 
     Secretary, in cooperation with representatives of agencies 
     and organizations involved in student financial assistance 
     and consistent with efforts under subsection (c), shall 
     continue to reduce the number of such data elements required 
     to be entered by all applicants, with the goal of reducing 
     such number by 50 percent.
       ``(ii) Report.--The Secretary shall submit a report on the 
     process of this reduction to each of the authorizing 
     committees by June 30, 2011.
       ``(5) State requirements.--
       ``(A) In general.--Except as provided in paragraphs 
     (2)(B)(iii), (3)(B), and (4)(A)(ii), the Secretary shall 
     include on the forms developed under this subsection, such 
     State-specific data items as the Secretary determines are 
     necessary to meet State requirements for need-based State 
     aid. Such items shall be selected in consultation with State 
     agencies in order to assist in the awarding of State 
     financial assistance in accordance with the terms of this 
     subsection. The

[[Page 17146]]

     number of such data items shall not be less than the number 
     included on the form for the 2008-2009 award year unless a 
     State notifies the Secretary that the State no longer 
     requires those data items for the distribution of State need-
     based aid.
       ``(B) Annual review.--The Secretary shall conduct an annual 
     review to determine--
       ``(i) which data items each State requires to award need-
     based State aid; and
       ``(ii) if the State will permit an applicant to file a form 
     described in paragraph (2)(B) or (3)(B).
       ``(C) Federal register notice.--Beginning with the forms 
     developed under paragraphs (2)(B) and (3)(B) for the award 
     year 2010-2011, the Secretary shall publish on an annual 
     basis a notice in the Federal Register requiring State 
     agencies to inform the Secretary--
       ``(i) if the State agency is unable to permit applicants to 
     utilize the simplified forms described in paragraphs (2)(B) 
     and (3)(B); and
       ``(ii) of the State-specific nonfinancial data that the 
     State agency requires for delivery of State need-based 
     financial aid.
       ``(D) Use of simplified forms encouraged.--The Secretary 
     shall encourage States to take such steps as are necessary to 
     encourage the use of simplified forms under this subsection, 
     including those forms described in paragraphs (2)(B) and 
     (3)(B), for applicants who meet the requirements of 
     subsection (b) or (c) of section 479.
       ``(E) Consequences if state does not accept simplified 
     forms.--If a State does not permit an applicant to file a 
     form described in paragraph (2)(B) or (3)(B) for purposes of 
     determining eligibility for State need-based financial aid, 
     the Secretary may determine that State-specific questions for 
     such State will not be included on a form described in 
     paragraph (2)(B) or (3)(B). If the Secretary makes such 
     determination, the Secretary shall advise the State of the 
     Secretary's determination.
       ``(F) Lack of state response to request for information.--
     If a State does not respond to the Secretary's request for 
     information under subparagraph (B), the Secretary shall--
       ``(i) permit residents of that State to complete simplified 
     forms under paragraphs (2)(B) and (3)(B); and
       ``(ii) not require any resident of such State to complete 
     any data items previously required by that State under this 
     section.
       ``(G) Restriction.--The Secretary shall, to the extent 
     practicable, not require applicants to complete any financial 
     or nonfinancial data items that are not required--
       ``(i) by the applicant's State; or
       ``(ii) by the Secretary.
       ``(6) Charges to students and parents for use of forms 
     prohibited.--The need and eligibility of a student for 
     financial assistance under parts A through E (other than 
     under subpart 4 of part A) may be determined only by using a 
     form developed by the Secretary under this subsection. Such 
     forms shall be produced, distributed, and processed by the 
     Secretary, and no parent or student shall be charged a fee by 
     the Secretary, a contractor, a third-party servicer or 
     private software provider, or any other public or private 
     entity for the collection, processing, or delivery of 
     financial aid through the use of such forms. No data 
     collected on a form for which a fee is charged shall be used 
     to complete the form prescribed under this section, except 
     that a Federal or State income tax form prepared by a paid 
     income tax preparer or preparer service for the primary 
     purpose of filing a Federal or State income tax return may be 
     used to complete the form prescribed under this section.
       ``(7) Restrictions on use of pin.--No person, commercial 
     entity, or other entity may request, obtain, or utilize an 
     applicant's personal identification number assigned under 
     paragraph (3)(G) for purposes of submitting a form developed 
     under this subsection on an applicant's behalf.
       ``(8) Application processing cycle.--The Secretary shall 
     enable students to submit forms developed under this 
     subsection and initiate the processing of such forms under 
     this subsection, as early as practicable prior to January 1 
     of the student's planned year of enrollment.
       ``(9) Early estimates.--The Secretary shall continue to--
       ``(A) permit applicants to enter data in such forms as 
     described in this subsection in the years prior to enrollment 
     in order to obtain a non-binding estimate of the applicant's 
     family contribution (as defined in section 473);
       ``(B) permit applicants to update information submitted on 
     forms described in this subsection, without needing to re-
     enter previously submitted information;
       ``(C) develop a means to inform applicants, in the years 
     prior to enrollment, of student aid options for individuals 
     in similar financial situations;
       ``(D) develop a means to provide a clear and conspicuous 
     notice that the applicant's expected family contribution is 
     subject to change and may not reflect the final expected 
     family contribution used to determine Federal student 
     financial aid award amounts under this title; and
       ``(E) consult with representatives of States, institutions 
     of higher education, and other individuals with experience or 
     expertise in student financial assistance application 
     processes in making updates to forms used to provide early 
     estimates under this paragraph.
       ``(10) Distribution of data.--Institutions of higher 
     education, guaranty agencies, and States shall receive, 
     without charge, the data collected by the Secretary using a 
     form developed under this subsection for the purposes of 
     processing loan applications and determining need and 
     eligibility for institutional and State financial aid awards. 
     Entities designated by institutions of higher education, 
     guaranty agencies, or States to receive such data shall be 
     subject to all the requirements of this section, unless such 
     requirements are waived by the Secretary.
       ``(11) Third party servicers and private software 
     providers.--To the extent practicable and in a timely manner, 
     the Secretary shall provide, to private organizations and 
     consortia that develop software used by institutions of 
     higher education for the administration of funds under this 
     title, all the necessary specifications that the 
     organizations and consortia must meet for the software the 
     organizations and consortia develop, produce, and distribute 
     (including any diskette, modem, or network communications) to 
     be so used. The specifications shall contain record layouts 
     for required data. The Secretary shall develop in advance of 
     each processing cycle an annual schedule for providing such 
     specifications. The Secretary, to the extent practicable, 
     shall use multiple means of providing such specifications, 
     including conferences and other meetings, outreach, and 
     technical support mechanisms (such as training and printed 
     reference materials). The Secretary shall, from time to time, 
     solicit from such organizations and consortia means of 
     improving the support provided by the Secretary.
       ``(12) Parent's social security number and birth date.--The 
     Secretary is authorized to include space on the forms 
     developed under this subsection for the social security 
     number and birth date of parents of dependent students 
     seeking financial assistance under this title.'';
       (2) by striking subsections (b) and (e);
       (3) by redesignating subsections (c) and (d) (as amended by 
     section 103(b)(10)) as subsections (b) and (c), respectively;
       (4) in subsection (c) (as redesignated by paragraph (3)), 
     by striking ``that is authorized'' and all that follows 
     through the period at the end and inserting ``or other 
     appropriate provider of technical assistance and information 
     on postsecondary educational services for individuals with 
     disabilities, including the National Technical Assistance 
     Center under section 777. The Secretary shall continue to 
     implement, to the extent practicable, a toll-free telephone 
     based system to permit applicants who meet the requirements 
     of subsection (b) or (c) of section 479 to submit an 
     application over such system.''; and
       (5) by adding at the end the following:
       ``(d) Assistance in Preparation of Financial Aid 
     Application.--
       ``(1) Preparation authorized.--Notwithstanding any 
     provision of this Act, an applicant may use a preparer for 
     consultative or preparation services for the completion of a 
     form developed under subsection (a) if the preparer satisfies 
     the requirements of this subsection.
       ``(2) Preparer identification required.--If an applicant 
     uses a preparer for consultative or preparation services for 
     the completion of a form developed under subsection (a), and 
     for which a fee is charged, the preparer shall--
       ``(A) include, at the time the form is submitted to the 
     Department, the name, address or employer's address, social 
     security number or employer identification number, and 
     organizational affiliation of the preparer on the applicant's 
     form; and
       ``(B) be subject to the same penalties as an applicant for 
     purposely giving false or misleading information in the 
     application.
       ``(3) Additional requirements.--A preparer that provides 
     consultative or preparation services pursuant to this 
     subsection shall--
       ``(A) clearly inform each individual upon initial contact, 
     including contact through the Internet or by telephone, that 
     the FAFSA and EZ FAFSA are free forms that may be completed 
     without professional assistance via paper or electronic 
     version of the forms that are provided by the Secretary;
       ``(B) include in any advertising clear and conspicuous 
     information that the FAFSA and EZ FAFSA are free forms that 
     may be completed without professional assistance via paper or 
     electronic version of the forms that are provided by the 
     Secretary;
       ``(C) if advertising or providing any information on a 
     website, or if providing services through a website, include 
     on the website a link to the website that provides the 
     electronic version of the forms developed under subsection 
     (a); and
       ``(D) not produce, use, or disseminate any other form for 
     the purpose of applying for Federal student financial aid 
     other than the form developed by the Secretary under 
     subsection (a).
       ``(4) Special rule.--Nothing in this Act shall be construed 
     to limit preparers of the forms required under this title 
     that meet the requirements of this subsection from collecting 
     source information from a student or parent, including 
     Internal Revenue Service tax forms, in providing consultative 
     and preparation services in completing the forms.
       ``(e) Early Application and Estimated Award Demonstration 
     Program.--
       ``(1) Purpose and objectives.--The purpose of the 
     demonstration program under this subsection is to measure the 
     benefits, in terms of student aspirations and plans to attend 
     an institution of higher education, and any adverse effects, 
     in terms of program costs, integrity, distribution, and 
     delivery of aid under this title, of implementing an early 
     application system for all dependent students that allows 
     dependent students to apply for financial aid using 
     information from two years prior to the year of enrollment. 
     Additional objectives associated with implementation of the 
     demonstration program are the following:

[[Page 17147]]

       ``(A) To measure the feasibility of enabling dependent 
     students to apply for Federal, State, and institutional 
     financial aid in their junior year of secondary school, using 
     information from two years prior to the year of enrollment, 
     by completing any of the forms under this subsection.
       ``(B) To identify whether receiving final financial aid 
     award estimates not later than the fall of the senior year of 
     secondary school provides students with additional time to 
     compete for the limited resources available for State and 
     institutional financial aid and positively impacts the 
     college aspirations and plans of these students.
       ``(C) To measure the impact of using income information 
     from the years prior to enrollment on--
       ``(i) eligibility for financial aid under this title and 
     for other State and institutional aid; and
       ``(ii) the cost of financial aid programs under this title.
       ``(D) To effectively evaluate the benefits and adverse 
     effects of the demonstration program on program costs, 
     integrity, distribution, and delivery of financial aid.
       ``(2) Program authorized.--Not later than two years after 
     the date of enactment of the Higher Education Opportunity 
     Act, the Secretary shall implement an early application 
     demonstration program enabling dependent students who wish to 
     participate in the program--
       ``(A) to complete an application under this subsection 
     during the academic year that is two years prior to the year 
     such students plan to enroll in an institution of higher 
     education; and
       ``(B) based on the application described in subparagraph 
     (A), to obtain, not later than one year prior to the year of 
     the students' planned enrollment, information on eligibility 
     for Federal Pell Grants, Federal student loans under this 
     title, and State and institutional financial aid for the 
     student's first year of enrollment in the institution of 
     higher education.
       ``(3) Early application and estimated award.--For all 
     dependent students selected for participation in the 
     demonstration program who submit a completed FAFSA, or, as 
     appropriate, an EZ FAFSA, two years prior to the year such 
     students plan to enroll in an institution of higher 
     education, the Secretary shall, not later than one year prior 
     to the year of such planned enrollment--
       ``(A) provide each student who completes an early 
     application with an estimated determination of such 
     student's--
       ``(i) expected family contribution for the first year of 
     the student's enrollment in an institution of higher 
     education; and
       ``(ii) Federal Pell Grant award for the first such year, 
     based on the maximum Federal Pell Grant award at the time of 
     application; and
       ``(B) remind the students of the need to update the 
     students' information during the calendar year of enrollment 
     using the expedited reapplication process provided for in 
     subsection (a)(4)(A).
       ``(4) Participants.--The Secretary shall include as 
     participants in the demonstration program--
       ``(A) States selected through the application process 
     described in paragraph (5);
       ``(B) institutions of higher education within the selected 
     States that are interested in participating in the 
     demonstration program, and that can make estimates or 
     commitments of institutional student financial aid, as 
     appropriate, to students the year before the students' 
     planned enrollment date; and
       ``(C) secondary schools within the selected States that are 
     interested in participating in the demonstration program, and 
     that can commit resources to--
       ``(i) advertising the availability of the program;
       ``(ii) identifying students who might be interested in 
     participating in the program;
       ``(iii) encouraging such students to apply; and
       ``(iv) participating in the evaluation of the program.
       ``(5) Applications.--Each State that is interested in 
     participating in the demonstration program shall submit an 
     application to the Secretary at such time, in such form, and 
     containing such information as the Secretary shall require. 
     The application shall include--
       ``(A) information on the amount of the State's need-based 
     student financial assistance available, and the eligibility 
     criteria for receiving such assistance;
       ``(B) a commitment to make, not later than the year before 
     the dependent students participating in the demonstration 
     program plan to enroll in an institution of higher education, 
     an estimate of the award of State financial aid to such 
     dependent students;
       ``(C) a plan for recruiting institutions of higher 
     education and secondary schools with different demographic 
     characteristics to participate in the program;
       ``(D) a plan for selecting institutions of higher education 
     and secondary schools to participate in the program that--
       ``(i) demonstrate a commitment to encouraging students to 
     submit a FAFSA, or, as appropriate, an EZ FAFSA, two years 
     before the students' planned date of enrollment in an 
     institution of higher education;
       ``(ii) serve different populations of students;
       ``(iii) in the case of institutions of higher education--

       ``(I) to the extent possible, are of varying types and 
     sectors; and
       ``(II) commit to making, not later than the year prior to 
     the year that dependent students participating in the 
     demonstration program plan to enroll in the institution--

       ``(aa) estimated institutional awards to participating 
     dependent students; and
       ``(bb) estimated grants or other financial aid available 
     under this title (including supplemental grants under subpart 
     3 of part A), for all participating dependent students, along 
     with information on State awards, as provided to the 
     institution by the State;
       ``(E) a commitment to participate in the evaluation 
     conducted by the Secretary; and
       ``(F) such other information as the Secretary may require.
       ``(6) Special provisions.--
       ``(A) Discretion of student financial aid administrators.--
     A financial aid administrator at an institution of higher 
     education participating in a demonstration program under this 
     subsection may use the discretion provided under section 479A 
     as necessary for students participating in the demonstration 
     program.
       ``(B) Waivers.--The Secretary is authorized to waive, for 
     an institution of higher education participating in the 
     demonstration program, any requirements under this title, or 
     regulations prescribed under this title, that will make the 
     demonstration program unworkable, except that the Secretary 
     shall not waive any provisions with respect to the maximum 
     award amounts for grants and loans under this title.
       ``(7) Outreach.--The Secretary shall make appropriate 
     efforts to notify States of the demonstration program under 
     this subsection. Upon determination of participating States, 
     the Secretary shall continue to make efforts to notify 
     institutions of higher education and dependent students 
     within participating States of the opportunity to participate 
     in the demonstration program and of the participation 
     requirements.
       ``(8) Evaluation.--The Secretary shall conduct a rigorous 
     evaluation of the demonstration program to measure the 
     program's benefits and adverse effects, as the benefits and 
     effects relate to the purpose and objectives of the program 
     described in paragraph (1). In conducting the evaluation, the 
     Secretary shall--
       ``(A) identify whether receiving financial aid estimates 
     one year prior to the year in which the student plans to 
     enroll in an institution of higher education, has a positive 
     impact on the higher education aspirations and plans of such 
     student;
       ``(B) measure the extent to which using a student's income 
     information from the year that is two years prior to the 
     student's planned enrollment date had an impact on the 
     ability of States and institutions of higher education to 
     make financial aid awards and commitments;
       ``(C) determine what operational changes are required to 
     implement the program on a larger scale;
       ``(D) identify any changes to Federal law that are 
     necessary to implement the program on a permanent basis;
       ``(E) identify the benefits and adverse effects of 
     providing early estimates on program costs, program 
     operations, program integrity, award amounts, distribution, 
     and delivery of aid; and
       ``(F) examine the extent to which estimated awards differ 
     from actual awards made to students participating in the 
     program.
       ``(9) Consultation.--The Secretary shall consult, as 
     appropriate, with the Advisory Committee on Student Financial 
     Assistance established under section 491 on the design, 
     implementation, and evaluation of the demonstration program.
       ``(f) Reduction of Income and Asset Information to 
     Determine Eligibility for Student Financial Aid.--
       ``(1) Continuation of current fafsa simplification 
     efforts.--The Secretary shall continue to examine--
       ``(A) how the Internal Revenue Service can provide to the 
     Secretary income and other data needed to compute an expected 
     family contribution for taxpayers and dependents of 
     taxpayers, and when in the application cycle the data can be 
     made available;
       ``(B) whether data provided by the Internal Revenue Service 
     can be used to--
       ``(i) prepopulate the electronic version of the FAFSA with 
     student and parent taxpayer data; or
       ``(ii) generate an expected family contribution without 
     additional action on the part of the student and taxpayer; 
     and
       ``(C) whether the data elements collected on the FAFSA that 
     are needed to determine eligibility for student aid, or to 
     administer the Federal student financial aid programs under 
     this title, but are not needed to compute an expected family 
     contribution, such as information regarding the student's 
     citizenship or permanent residency status, registration for 
     selective service, or driver's license number, can be reduced 
     without adverse effects.
       ``(2) Report on fafsa simplification efforts to date.--Not 
     later than 90 days after the date of enactment of the Higher 
     Education Opportunity Act, the Secretary shall provide a 
     written report to the authorizing committees on the work the 
     Department has done with the Secretary of the Treasury 
     regarding--
       ``(A) how the expected family contribution of a student can 
     be calculated using substantially less income and asset 
     information than was used on March 31, 2008;
       ``(B) the extent to which the reduced income and asset 
     information will result in a redistribution of Federal grants 
     and subsidized loans under this title, State aid, or 
     institutional aid, or in a change in the composition of the 
     group of recipients of such aid, and the amount of such 
     redistribution;
       ``(C) how the alternative approaches for calculating the 
     expected family contribution will--

[[Page 17148]]

       ``(i) rely mainly, in the case of students and parents who 
     file income tax returns, on information available on the 
     1040, 1040EZ, and 1040A; and
       ``(ii) include formulas for adjusting income or asset 
     information to produce similar results to the existing 
     approach with less data;
       ``(D) how the Internal Revenue Service can provide to the 
     Secretary of Education income and other data needed to 
     compute an expected family contribution for taxpayers and 
     dependents of taxpayers, and when in the application cycle 
     the data can be made available;
       ``(E) whether data provided by the Internal Revenue Service 
     can be used to--
       ``(i) prepopulate the electronic version of the FAFSA with 
     student and parent taxpayer data; or
       ``(ii) generate an expected family contribution without 
     additional action on the part of the student and taxpayer;
       ``(F) the extent to which the use of income data from two 
     years prior to a student's planned enrollment date will 
     change the expected family contribution computed in 
     accordance with part F, and potential adjustments to the need 
     analysis formula that will minimize the change; and
       ``(G) the extent to which the data elements collected on 
     the FAFSA on March 31, 2008, that are needed to determine 
     eligibility for student aid or to administer the Federal 
     student financial aid programs, but are not needed to compute 
     an expected family contribution, such as information 
     regarding the student's citizenship or permanent residency 
     status, registration for selective service, or driver's 
     license number, can be reduced without adverse effects.
       ``(3) Study.--
       ``(A) Formation of study group.--Not later than 90 days 
     after the date of enactment of the Higher Education 
     Opportunity Act, the Comptroller General shall convene a 
     study group the membership of which shall include the 
     Secretary of Education, the Secretary of the Treasury, the 
     Director of the Office of Management and Budget, the Director 
     of the Congressional Budget Office, representatives of 
     institutions of higher education with expertise in Federal 
     and State financial aid assistance, State chief executive 
     officers of higher education with a demonstrated commitment 
     to simplifying the FAFSA, and such other individuals as the 
     Comptroller General and the Secretary of Education may 
     designate.
       ``(B) Study required.--The Comptroller General, in 
     consultation with the study group convened under subparagraph 
     (A) shall--
       ``(i) review and build on the work of the Secretary of 
     Education and the Secretary of the Treasury, and individuals 
     with expertise in analysis of financial need, to assess 
     alternative approaches for calculating the expected family 
     contribution under the statutory need analysis formula in 
     effect on the day before the date of enactment of the Higher 
     Education Opportunity Act and under a new calculation that 
     will use substantially less income and asset information than 
     was used for the 2008-2009 FAFSA;
       ``(ii) conduct an additional analysis if necessary; and
       ``(iii) make recommendations to the authorizing committees.
       ``(C) Objectives of study.--The objectives of the study 
     required under subparagraph (B) are--
       ``(i) to determine methods to shorten the FAFSA and make 
     the FAFSA easier and less time-consuming to complete, thereby 
     increasing higher education access for low-income students;
       ``(ii) to identify changes to the statutory need analysis 
     formula that will be necessary to reduce the amount of 
     financial information students and families need to provide 
     to receive a determination of eligibility for student 
     financial aid without causing significant redistribution of 
     Federal grants and subsidized loans under this title; and
       ``(iii) to review State and institutional needs and uses 
     for data collected on the FAFSA, and to determine the best 
     means of addressing such needs in the case of modification of 
     the FAFSA as described in clause (i), or modification of the 
     need analysis formula as described in clause (ii).
       ``(D) Required subjects of study.--The study required under 
     subparagraph (B) shall examine--
       ``(i) with respect to simplification of the financial aid 
     application process using the statutory requirements for need 
     analysis--

       ``(I) additional steps that can be taken to simplify the 
     financial aid application process for students who (or, in 
     the case of dependent students, whose parents) are not 
     required to file a Federal income tax return for the prior 
     taxable year;
       ``(II) information on State use of information provided on 
     the FAFSA, including--

       ``(aa) whether a State uses, as of the time of the study, 
     or can use, a student's expected family contribution based on 
     data from two years prior to the student's planned enrollment 
     date;
       ``(bb) the extent to which States and institutions will 
     accept the data provided by the Internal Revenue Service to 
     prepopulate the electronic version of the FAFSA to determine 
     the distribution of State and institutional student financial 
     aid funds;
       ``(cc) what data are used by States, as of the time of the 
     study, to determine eligibility for State student financial 
     aid, and whether the data are used for merit- or need-based 
     aid;
       ``(dd) whether State data are required by State law, State 
     regulations, or policy directives; and
       ``(ee) the extent to which any State-specific information 
     requirements can be met by completion of a State application 
     linked to the electronic version of the FAFSA; and

       ``(III) information on institutional needs, including the 
     extent to which institutions of higher education are already 
     using supplemental forms to collect additional data from 
     students and their families to determine eligibility for 
     institutional funds; and

       ``(ii) ways to reduce the amount of financial information 
     students and families need to provide to receive a 
     determination of eligibility for student financial aid, 
     taking into account--

       ``(I) the amount of redistribution of Federal grants and 
     subsidized loans under this title caused by such a reduction, 
     and the benefits to be gained by having an application 
     process that will be easier for students and their families;
       ``(II) students and families who do not file income tax 
     returns;
       ``(III) the extent to which the full array of income and 
     asset information collected on the FAFSA, as of the time of 
     the study, plays an important role in the awarding of need-
     based State financial aid, and whether the State can use an 
     expected family contribution generated by the FAFSA, instead 
     of income and asset information or a calculation with reduced 
     data elements, to support determinations of eligibility for 
     such State aid programs and, if not, what additional 
     information will be needed or what changes to the FAFSA will 
     be required; and
       ``(IV) information on institutional needs, including the 
     extent to which institutions of higher education are already 
     using supplemental forms to collect additional data from 
     students and their families to determine eligibility for 
     institutional funds; and
       ``(V) changes to this Act or other laws that will be 
     required to implement a modified need analysis system.

       ``(4) Consultation.--The Secretary shall consult with the 
     Advisory Committee on Student Financial Assistance 
     established under section 491 as appropriate in carrying out 
     this subsection.
       ``(5) Reports.--
       ``(A) Reports on study.--The Secretary shall prepare and 
     submit to the authorizing committees--
       ``(i) not later than one year after the date of enactment 
     of the Higher Education Opportunity Act, an interim report on 
     the progress of the study required under paragraph (3) that 
     includes any preliminary recommendations by the study group 
     established under such paragraph; and
       ``(ii) not later than two years after the date of enactment 
     of the Higher Education Opportunity Act, a final report on 
     the results of the study required under paragraph (3) that 
     includes recommendations by the study group established under 
     such paragraph.
       ``(B) Reports on fafsa simplification efforts.--The 
     Secretary shall report to the authorizing committees, from 
     time to time, on the progress of the simplification efforts 
     under this subsection.
       ``(g) Addressing the Digital Divide.--The Secretary shall 
     utilize savings accrued by moving more applicants to the 
     electronic version of the forms described in subsection 
     (a)(3) to improve access to the electronic version of the 
     forms described in such subsection for applicants meeting the 
     requirements of subsection (b) or (c) of section 479.
       ``(h) Adjustments.--The Secretary shall disclose, on the 
     form notifying a student of the student's expected family 
     contribution, that the student may, on a case-by-case basis, 
     qualify for an adjustment under section 479A to the cost of 
     attendance or the values of the data items required to 
     calculate the expected contribution for the student or 
     parent. Such disclosure shall specify--
       ``(1) the special circumstances under which a student or 
     family member may qualify for such adjustment; and
       ``(2) additional information regarding the steps a student 
     or family member may take in order to seek an adjustment 
     under section 479A.''.

     SEC. 484. MODEL INSTITUTION FINANCIAL AID OFFER FORM.

       (a) Model Format.--The Secretary of Education shall--
       (1) not later than six months after the date of enactment 
     of the Higher Education Opportunity Act, convene a group of 
     students, families of students, secondary school guidance 
     counselors, representatives of institutions of higher 
     education (including financial aid administrators, 
     registrars, and business officers), and nonprofit consumer 
     groups for the purpose of offering recommendations for 
     improvements that--
       (A) can be made to financial aid offer forms; and
       (B) include the information described in subsection (b);
       (2) develop a model format for financial aid offer forms 
     based on the recommendations of the group; and
       (3) not later than one year after the date of enactment of 
     the Higher Education Opportunity Act--
       (A) submit recommendations to the authorizing committees 
     (as defined in section 103 of the Higher Education Act of 
     1965 (20 U.S.C. 1003); and
       (B) make the recommendations and model format widely 
     available.
       (b) Contents.--The recommendations developed under 
     subsection (a) for model financial aid offer forms shall 
     include, in a consumer-friendly manner that is simple and 
     understandable, the following:
       (1) Information on the student's cost of attendance, 
     including the following:

[[Page 17149]]

       (A) Tuition and fees.
       (B) Room and board costs.
       (C) Books and supplies.
       (D) Transportation.
       (2) The amount of financial aid that the student does not 
     have to repay, such as scholarships, grants, and work-study 
     assistance, offered to the student for such year, and the 
     conditions of such financial aid.
       (3) The types and amounts of loans under part B, D, or E of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq., 1087a et seq., 1087aa et seq.) for which the student 
     is eligible for such year, and the applicable terms and 
     conditions of such loans.
       (4) The net amount that the student, or the student's 
     family on behalf of the student, will have to pay for the 
     student to attend the institution for such year, equal to--
       (A) the cost of attendance for the student for such year; 
     minus
       (B) the amount of financial aid described in paragraphs (2) 
     and (3) that is offered in the financial aid offer form.
       (5) Where a student or the student's family can seek 
     additional information regarding the financial aid offered.
       (6) Any other information the Secretary of Education 
     determines necessary so that students and parents can make 
     informed student loan borrowing decisions.

     SEC. 485. STUDENT ELIGIBILITY.

       (a) Amendments.--Section 484 (20 U.S.C. 1091) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4)(B), by striking ``number,'' and all 
     that follows through the semicolon and inserting ``number;''; 
     and
       (B) in paragraph (5)--
       (i) by inserting ``or'' after ``a permanent resident of the 
     United States,''; and
       (ii) by striking ``citizen or permanent resident'' and all 
     that follows through the semicolon and inserting ``citizen or 
     permanent resident;'';
       (2) in subsection (b)(1), by inserting ``, or under section 
     428H pursuant to an exercise of discretion under section 
     479A'' after ``428C'';
       (3) in subsection (d), by adding at the end the following:
       ``(4) The student shall be determined by the institution of 
     higher education as having the ability to benefit from the 
     education or training offered by the institution of higher 
     education upon satisfactory completion of six credit hours or 
     the equivalent coursework that are applicable toward a degree 
     or certificate offered by the institution of higher 
     education.'';
       (4) by striking subsection (j);
       (5) by striking subsection (l) and inserting the following:
       ``(l) Courses Offered Through Distance Education.--
       ``(1) Relation to correspondence courses.--
       ``(A) In general.--A student enrolled in a course of 
     instruction at an institution of higher education that is 
     offered principally through distance education and leads to a 
     recognized certificate, or recognized associate, recognized 
     baccalaureate, or recognized graduate degree, conferred by 
     such institution, shall not be considered to be enrolled in 
     correspondence courses.
       ``(B) Exception.--An institution of higher education 
     referred to in subparagraph (A) shall not include an 
     institution or school described in section 3(3)(C) of the 
     Carl D. Perkins Career and Technical Education Act of 2006.
       ``(2) Reductions of financial aid.--A student's eligibility 
     to receive grants, loans, or work assistance under this title 
     shall be reduced if a financial aid officer determines under 
     the discretionary authority provided in section 479A that 
     distance education results in a substantially reduced cost of 
     attendance to such student.
       ``(3) Special rule.--For award years beginning prior to 
     July 1, 2008, the Secretary shall not take any compliance, 
     disallowance, penalty, or other action based on a violation 
     of this subsection against a student or an eligible 
     institution when such action arises out of such institution's 
     prior award of student assistance under this title if the 
     institution demonstrates to the satisfaction of the Secretary 
     that its course of instruction would have been in conformance 
     with the requirements of this subsection.'';
       (6) by striking subsection (q) and inserting the following:
       ``(q) Use of Income Data.--
       ``(1) Matching with irs.--The Secretary, in cooperation 
     with the Secretary of the Treasury, is authorized to obtain 
     from the Internal Revenue Service such information reported 
     on Federal income tax returns by applicants, or by any other 
     person whose financial information is required to be provided 
     on the Federal student financial aid application, as the 
     Secretary determines is necessary for the purpose of--
       ``(A) prepopulating the Federal student financial aid 
     application described in section 483; or
       ``(B) verifying the information reported on such student 
     financial aid applications.
       ``(2) Consent.--The Secretary may require that applicants 
     for financial assistance under this title provide a consent 
     to the disclosure of the data described in paragraph (1) as a 
     condition of the student receiving assistance under this 
     title. The parents of an applicant, in the case of a 
     dependent student, or the spouse of an applicant, in the case 
     of an applicant who is married but files separately, may also 
     be required to provide consent as a condition of the student 
     receiving assistance under this title.'';
       (7) in subsection (r)(2)--
       (A) in subparagraph (A), by striking ``or'' at the end of 
     clause (ii);
       (B) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) the student successfully passes two unannounced drug 
     tests conducted by a drug rehabilitation program that 
     complies with such criteria as the Secretary shall prescribe 
     in regulations for purposes of subparagraph (A)(i); or'';
       (8) by adding at the end the following:
       ``(s) Students With Intellectual Disabilities.--
       ``(1) Definitions.--In this subsection the terms 
     `comprehensive transition and postsecondary program for 
     students with intellectual disabilities' and `student with an 
     intellectual disability' have the meanings given the terms in 
     section 760.
       ``(2) Requirements.--Notwithstanding subsections (a), (c), 
     and (d), in order to receive any grant or work assistance 
     under section 401, subpart 3 of part A, or part C, a student 
     with an intellectual disability shall--
       ``(A) be enrolled or accepted for enrollment in a 
     comprehensive transition and postsecondary program for 
     students with intellectual disabilities at an institution of 
     higher education;
       ``(B) be maintaining satisfactory progress in the program 
     as determined by the institution, in accordance with 
     standards established by the institution; and
       ``(C) meet the requirements of paragraphs (3), (4), (5), 
     and (6) of subsection (a).
       ``(3) Authority.--Notwithstanding any other provision of 
     law unless such provision is enacted with specific reference 
     to this section, the Secretary is authorized to waive any 
     statutory provision applicable to the student financial 
     assistance programs under section 401, subpart 3 of part A, 
     or part C (other than a provision of part F related to such a 
     program), or any institutional eligibility provisions of this 
     title, as the Secretary determines necessary to ensure that 
     programs enrolling students with intellectual disabilities 
     otherwise determined to be eligible under this subsection may 
     receive such financial assistance.
       ``(4) Regulations.--Notwithstanding regulations applicable 
     to grant or work assistance awards made under section 401, 
     subpart 3 of part A, and part C (other than a regulation 
     under part F related to such an award), including with 
     respect to eligible programs, instructional time, credit 
     status, and enrollment status as described in section 481, 
     the Secretary shall promulgate regulations allowing programs 
     enrolling students with intellectual disabilities otherwise 
     determined to be eligible under this subsection to receive 
     such awards.''; and
       (9) by adding after subsection (s) (as added by paragraph 
     (7)) the following:
       ``(t) Data Analysis on Access to Federal Student Aid For 
     Certain Populations.--
       ``(1) Development of the system.--Within one year of 
     enactment of the Higher Education Opportunity Act, the 
     Secretary shall analyze data from the FAFSA containing 
     information regarding the number, characteristics, and 
     circumstances of students denied Federal student aid based on 
     a drug conviction while receiving Federal aid.
       ``(2) Results from analysis.--The results from the analysis 
     of such information shall be made available on a continuous 
     basis via the Department website and the Digest of Education 
     Statistics.
       ``(3) Data updating.--The data analyzed under this 
     subsection shall be updated at the beginning of each award 
     year and at least one additional time during such award year.
       ``(4) Report to congress.--The Secretary shall prepare and 
     submit to the authorizing committees, in each fiscal year, a 
     report describing the results obtained by the establishment 
     and operation of the data system authorized by this 
     subsection.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 1, 2010, except that the amendments 
     made by paragraphs (3), (4), and (8) of such subsection shall 
     take effect on the date of enactment of this Act.

     SEC. 486. STATUTE OF LIMITATIONS AND STATE COURT JUDGMENTS.

       Section 484A (20 U.S.C. 1091a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (2), by striking the period and inserting 
     ``; and''; and
       (C) by adding at the end the following:
       ``(3) in collecting any obligation arising from a loan made 
     under part E, an institution of higher education that has an 
     agreement with the Secretary pursuant to section 463(a) shall 
     not be subject to a defense raised by any borrower based on a 
     claim of infancy.''; and
       (2) by adding at the end the following:
       ``(d) Special Rule.--This section shall not apply in the 
     case of a student who is deceased, or to a deceased student's 
     estate or the estate of such student's family. If a student 
     is deceased, then the student's estate or the estate of the 
     student's family shall not be required to repay any financial 
     assistance under this title, including interest paid on the 
     student's behalf, collection costs, or other charges 
     specified in this title.''.

     SEC. 487. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.

       Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
     inserting after section 484B the following:

     ``SEC. 484C. READMISSION REQUIREMENTS FOR SERVICEMEMBERS.

       ``(a) Definition of Service in the Uniformed Services.--In 
     this section, the term

[[Page 17150]]

     `service in the uniformed services' means service (whether 
     voluntary or involuntary) on active duty in the Armed Forces, 
     including such service by a member of the National Guard or 
     Reserve, for a period of more than 30 days under a call or 
     order to active duty of more than 30 days.
       ``(b) Discrimination Against Students Who Serve in the 
     Uniformed Services Prohibited.--A person who is a member of, 
     applies to be a member of, performs, has performed, applies 
     to perform, or has an obligation to perform, service in the 
     uniformed services shall not be denied readmission to an 
     institution of higher education on the basis of that 
     membership, application for membership, performance of 
     service, application for service, or obligation.
       ``(c) Readmission Procedures.--
       ``(1) In general.--Any student whose absence from an 
     institution of higher education is necessitated by reason of 
     service in the uniformed services shall be entitled to 
     readmission to the institution of higher education if--
       ``(A) the student (or an appropriate officer of the Armed 
     Forces or official of the Department of Defense) gives 
     advance written or verbal notice of such service to the 
     appropriate official at the institution of higher education;
       ``(B) the cumulative length of the absence and of all 
     previous absences from that institution of higher education 
     by reason of service in the uniformed services does not 
     exceed five years; and
       ``(C) except as otherwise provided in this section, the 
     student submits a notification of intent to reenroll in the 
     institution of higher education in accordance with the 
     provisions of paragraph (4).
       ``(2) Exceptions.--
       ``(A) Military necessity.--No notice is required under 
     paragraph (1)(A) if the giving of such notice is precluded by 
     military necessity, such as--
       ``(i) a mission, operation, exercise, or requirement that 
     is classified; or
       ``(ii) a pending or ongoing mission, operation, exercise, 
     or requirement that may be compromised or otherwise adversely 
     affected by public knowledge.
       ``(B) Failure to give advance notice.--Any student (or an 
     appropriate officer of the Armed Forces or official of the 
     Department of Defense) who did not give advance written or 
     verbal notice of service to the appropriate official at the 
     institution of higher education in accordance with paragraph 
     (1)(A) may meet the notice requirement by submitting, at the 
     time the student seeks readmission, an attestation to the 
     student's institution of higher education that the student 
     performed service in the uniformed services that necessitated 
     the student's absence from the institution of higher 
     education.
       ``(3) Applicability.--This section shall apply to a student 
     who is absent from an institution of higher education by 
     reason of service in the uniformed services if such student's 
     cumulative period of service in the Armed Forces (including 
     the National Guard or Reserve), with respect to the 
     institution of higher education for which a student seeks 
     readmission, does not exceed five years, except that any such 
     period of service shall not include any service--
       ``(A) that is required, beyond five years, to complete an 
     initial period of obligated service;
       ``(B) during which such student was unable to obtain orders 
     releasing such student from a period of service in the 
     uniformed services before the expiration of such five-year 
     period and such inability was through no fault of such 
     student; or
       ``(C) performed by a member of the Armed Forces (including 
     the National Guard and Reserves) who is--
       ``(i) ordered to or retained on active duty under section 
     688, 12301(a), 12301(g), 12302, 12304, or 12305 of title 10, 
     United States Code, or under section 331, 332, 359, 360, 367, 
     or 712 of title 14, United States Code;
       ``(ii) ordered to or retained on active duty (other than 
     for training) under any provision of law because of a war or 
     national emergency declared by the President or the Congress, 
     as determined by the Secretary concerned;
       ``(iii) ordered to active duty (other than for training) in 
     support, as determined by the Secretary concerned, of an 
     operational mission for which personnel have been ordered to 
     active duty under section 12304 of title 10, United States 
     Code;
       ``(iv) ordered to active duty in support, as determined by 
     the Secretary concerned, of a critical mission or requirement 
     of the Armed Forces (including the National Guard or 
     Reserve); or
       ``(v) called into Federal service as a member of the 
     National Guard under chapter 15 of title 10, United States 
     Code, or section 12406 of title 10, United States Code.
       ``(4) Notification of intent to return.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     a student referred to in subsection (a) shall, upon the 
     completion of a period of service in the uniformed services, 
     notify the institution of higher education of the student's 
     intent to return to the institution not later than three 
     years after the completion of the period of service.
       ``(B) Hospitalization or convalescence.--A student who is 
     hospitalized for or convalescing from an illness or injury 
     incurred in or aggravated during the performance of service 
     in the uniformed services shall notify the institution of 
     higher education of the student's intent to return to the 
     institution not later than two years after the end of the 
     period that is necessary for recovery from such illness or 
     injury.
       ``(C) Special rule.--A student who fails to apply for 
     readmission within the period described in this section shall 
     not automatically forfeit such eligibility for readmission to 
     the institution of higher education, but shall be subject to 
     the institution of higher education's established leave of 
     absence policy and general practices.
       ``(5) Documentation.--
       ``(A) In general.--A student who submits an application for 
     readmission to an institution of higher education under this 
     section shall provide to the institution of higher education 
     documentation to establish that--
       ``(i) the student has not exceeded the service limitations 
     established under this section; and
       ``(ii) the student's eligibility for readmission has not 
     been terminated due to an exception in subsection (d).
       ``(B) Prohibited documentation demands.--An institution of 
     higher education may not delay or attempt to avoid a 
     readmission of a student under this section by demanding 
     documentation that does not exist, or is not readily 
     available, at the time of readmission.
       ``(6) No change in academic status.--A student who is 
     readmitted to an institution of higher education under this 
     section shall be readmitted with the same academic status as 
     such student had when such student last attended the 
     institution of higher education.
       ``(d) Exception From Readmission Eligibility.--A student's 
     eligibility for readmission to an institution of higher 
     education under this section by reason of such student's 
     service in the uniformed services terminates upon the 
     occurrence of any of the following events:
       ``(1) A separation of such person from the Armed Forces 
     (including the National Guard and Reserves) with a 
     dishonorable or bad conduct discharge.
       ``(2) A dismissal of such person permitted under section 
     1161(a) of title 10, United States Code.
       ``(3) A dropping of such person from the rolls pursuant to 
     section 1161(b) of title 10, United States Code.''.

     SEC. 488. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION 
                   FOR STUDENTS.

       (a) Information Dissemination Activities.--Section 485(a) 
     (20 U.S.C. 1092(a)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (G)--
       (i) by striking ``program, and'' and inserting 
     ``program,''; and
       (ii) by inserting ``, and (iv) any plans by the institution 
     for improving the academic program of the institution'' after 
     ``instructional personnel''; and
       (B) by striking subparagraph (M) and inserting the 
     following:
       ``(M) the terms and conditions of the loans that students 
     receive under parts B, D, and E;'';
       (C) in subparagraph (N), by striking ``and'' after the 
     semicolon;
       (D) in subparagraph (O), by striking the period and 
     inserting a semicolon; and
       (E) by adding at the end the following:
       ``(P) institutional policies and sanctions related to 
     copyright infringement, including--
       ``(i) an annual disclosure that explicitly informs students 
     that unauthorized distribution of copyrighted material, 
     including unauthorized peer-to-peer file sharing, may subject 
     the students to civil and criminal liabilities;
       ``(ii) a summary of the penalties for violation of Federal 
     copyright laws; and
       ``(iii) a description of the institution's policies with 
     respect to unauthorized peer-to-peer file sharing, including 
     disciplinary actions that are taken against students who 
     engage in unauthorized distribution of copyrighted materials 
     using the institution's information technology system;
       ``(Q) student body diversity at the institution, including 
     information on the percentage of enrolled, full-time students 
     who--
       ``(i) are male;
       ``(ii) are female;
       ``(iii) receive a Federal Pell Grant; and
       ``(iv) are a self-identified member of a major racial or 
     ethnic group;
       ``(R) the placement in employment of, and types of 
     employment obtained by, graduates of the institution's degree 
     or certificate programs, gathered from such sources as alumni 
     surveys, student satisfaction surveys, the National Survey of 
     Student Engagement, the Community College Survey of Student 
     Engagement, State data systems, or other relevant sources;
       ``(S) the types of graduate and professional education in 
     which graduates of the institution's four-year degree 
     programs enrolled, gathered from such sources as alumni 
     surveys, student satisfaction surveys, the National Survey of 
     Student Engagement, State data systems, or other relevant 
     sources;
       ``(T) the fire safety report prepared by the institution 
     pursuant to subsection (i);
       ``(U) the retention rate of certificate- or degree-seeking, 
     first-time, full-time, undergraduate students entering such 
     institution; and
       ``(V) institutional policies regarding vaccinations.''; and
       (2) by striking paragraph (4) and inserting the following:
       ``(4) For purposes of this section, institutions may--
       ``(A) exclude from the information disclosed in accordance 
     with subparagraph (L) of paragraph (1) the completion or 
     graduation rates of students who leave school to serve in the 
     Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where the students described in subparagraph 
     (A) represent 20 percent or more

[[Page 17151]]

     of the certificate- or degree-seeking, full-time, 
     undergraduate students at the institution, recalculate the 
     completion or graduation rates of such students by excluding 
     from the calculation described in paragraph (3) the time 
     period such students were not enrolled due to their service 
     in the Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government.''; 
     and
       (3) by adding at the end the following:
       ``(7)(A)(i) Subject to clause (ii), the information 
     disseminated under paragraph (1)(L), or reported under 
     subsection (e), shall be disaggregated by gender, by each 
     major racial and ethnic subgroup, by recipients of a Federal 
     Pell Grant, by recipients of a loan made under part B or D 
     (other than a loan made under section 428H or a Federal 
     Direct Unsubsidized Stafford Loan) who did not receive a 
     Federal Pell Grant, and by recipients of neither a Federal 
     Pell Grant nor a loan made under part B or D (other than a 
     loan made under section 428H or a Federal Direct Unsubsidized 
     Stafford Loan), if the number of students in such subgroup or 
     with such status is sufficient to yield statistically 
     reliable information and reporting will not reveal personally 
     identifiable information about an individual student. If such 
     number is not sufficient for such purposes, then the 
     institution shall note that the institution enrolled too few 
     of such students to so disclose or report with confidence and 
     confidentiality.
       ``(ii) The requirements of clause (i) shall not apply to 
     two-year, degree-granting institutions of higher education 
     until academic year 2011-2012.
       ``(B)(i) In order to assist two-year degree-granting 
     institutions of higher education in meeting the requirements 
     of paragraph (1)(L) and subsection (e), the Secretary, in 
     consultation with the Commissioner for Education Statistics, 
     shall, not later than 90 days after the date of enactment of 
     the Higher Education Opportunity Act, convene a group of 
     representatives from diverse institutions of higher 
     education, experts in the field of higher education policy, 
     state higher education officials, students, and other 
     stakeholders in the higher education community, to develop 
     recommendations regarding the accurate calculation and 
     reporting of the information required to be disseminated or 
     reported under paragraph (1)(L) and subsection (e) by two-
     year, degree-granting institutions of higher education. In 
     developing such recommendations, the group of representatives 
     shall consider the mission and role of two-year degree-
     granting institutions of higher education, and may recommend 
     additional or alternative measures of student success for 
     such institutions in light of the mission and role of such 
     institutions.
       ``(ii) The Secretary shall widely disseminate the 
     recommendations required under this subparagraph to two-year, 
     degree-granting institutions of higher education, the public, 
     and the authorizing committees not later than 18 months after 
     the first meeting of the group of representatives convened 
     under clause (i).
       ``(iii) The Secretary shall use the recommendations from 
     the group of representatives convened under clause (i) to 
     provide technical assistance to two-year, degree-granting 
     institutions of higher education in meeting the requirements 
     of paragraph (1)(L) and subsection (e).
       ``(iv) The Secretary may modify the information required to 
     be disseminated or reported under paragraph (1)(L) or 
     subsection (e) by a two-year, degree-granting institution of 
     higher--
       ``(I) based on the recommendations received under this 
     subparagraph from the group of representatives convened under 
     clause (i);
       ``(II) to include additional or alternative measures of 
     student success if the goals of the provisions of paragraph 
     (1)(L) and subsection (e) can be met through additional means 
     or comparable alternatives; and
       ``(III) during the period beginning on the date of 
     enactment of the Higher Education Opportunity Act, and ending 
     on June 30, 2011.''.
       (b) Exit Counseling.--Subsection (b)(1)(A) of section 485 
     (20 U.S.C. 1092(b)(1)(A)) is amended to read as follows:
       ``(b) Exit Counseling for Borrowers.--(1)(A) Each eligible 
     institution shall, through financial aid offices or 
     otherwise, provide counseling to borrowers of loans that are 
     made, insured, or guaranteed under part B (other than loans 
     made pursuant to section 428C or loans under section 428B 
     made on behalf of a student) or made under part D (other than 
     Federal Direct Consolidation Loans or Federal Direct PLUS 
     Loans made on behalf of a student) or made under part E of 
     this title prior to the completion of the course of study for 
     which the borrower enrolled at the institution or at the time 
     of departure from such institution. The counseling required 
     by this subsection shall include--
       ``(i) information on the repayment plans available, 
     including a description of the different features of each 
     plan and sample information showing the average anticipated 
     monthly payments, and the difference in interest paid and 
     total payments, under each plan;
       ``(ii) debt management strategies that are designed to 
     facilitate the repayment of such indebtedness;
       ``(iii) an explanation that the borrower has the options to 
     prepay each loan, pay each loan on a shorter schedule, and 
     change repayment plans;
       ``(iv) for any loan forgiveness or cancellation provision 
     of this title, a general description of the terms and 
     conditions under which the borrower may obtain full or 
     partial forgiveness or cancellation of the principal and 
     interest, and a copy of the information provided by the 
     Secretary under section 485(d);
       ``(v) for any forbearance provision of this title, a 
     general description of the terms and conditions under which 
     the borrower may defer repayment of principal or interest or 
     be granted forbearance, and a copy of the information 
     provided by the Secretary under section 485(d);
       ``(vi) the consequences of defaulting on a loan, including 
     adverse credit reports, delinquent debt collection procedures 
     under Federal law, and litigation;
       ``(vii) information on the effects of using a consolidation 
     loan under section 428C or a Federal Direct Consolidation 
     Loan to discharge the borrower's loans under parts B, D, and 
     E, including at a minimum--
       ``(I) the effects of consolidation on total interest to be 
     paid, fees to be paid, and length of repayment;
       ``(II) the effects of consolidation on a borrower's 
     underlying loan benefits, including grace periods, loan 
     forgiveness, cancellation, and deferment opportunities;
       ``(III) the option of the borrower to prepay the loan or to 
     change repayment plans; and
       ``(IV) that borrower benefit programs may vary among 
     different lenders;
       ``(viii) a general description of the types of tax benefits 
     that may be available to borrowers; and
       ``(ix) a notice to borrowers about the availability of the 
     National Student Loan Data System and how the system can be 
     used by a borrower to obtain information on the status of the 
     borrower's loans; and''.
       (c) Departmental Publication of Descriptions of Assistance 
     Programs.--Section 485(d) (20 U.S.C. 1092(d)) is amended--
       (1) in paragraph (1)--
       (A) by inserting after ``under this title.'' the following: 
     ``Such information shall also include information on the 
     various payment options available for student loans, 
     including income-sensitive and income-based repayment plans 
     for loans made, insured, or guaranteed under part B and 
     income-contingent and income-based repayment plans for loans 
     made under part D.''; and
       (B) by inserting after ``tax-exempt organization.'' the 
     following: ``The Secretary shall also provide information on 
     loan forbearance, including the increase in debt that results 
     from capitalization of interest.''; and
       (2) by adding at the end the following:
       ``(4) The Secretary shall widely publicize the location of 
     the information described in paragraph (1) among the public, 
     eligible institutions, and eligible lenders, and promote the 
     use of such information by prospective students, enrolled 
     students, families of prospective and enrolled students, and 
     borrowers.''.
       (d) Disclosure of Athletically Related Graduation Rates.--
     Section 485(e)(3) (20 U.S.C. 1092(e)(3)) is amended to read 
     as follows:
       ``(3) For purposes of this subsection, institutions may--
       ``(A) exclude from the reporting requirements under 
     paragraphs (1) and (2) the completion or graduation rates of 
     students and student athletes who leave school to serve in 
     the Armed Forces, on official church missions, or with a 
     recognized foreign aid service of the Federal Government; or
       ``(B) in cases where the students described in subparagraph 
     (A) represent 20 percent or more of the certificate- or 
     degree-seeking, full-time, undergraduate students at the 
     institution, calculate the completion or graduation rates of 
     such students by excluding from the calculations described in 
     paragraph (1) the time period such students were not enrolled 
     due to their service in the Armed Forces, on official church 
     missions, or with a recognized foreign aid service of the 
     Federal Government.''.
       (e) Criminal Offenses Reported.--Section 485(f) (20 U.S.C. 
     1092(f)) is amended--
       (1) in paragraph (1)--
       (A) in the matter preceding subparagraph (A), by inserting 
     ``, other than a foreign institution higher education,'' 
     after ``under this title'';
       (B) in subparagraph (C), by striking clauses (i) and (ii) 
     and inserting the following:
       ``(i) the law enforcement authority of campus security 
     personnel;
       ``(ii) the working relationship of campus security 
     personnel with State and local law enforcement agencies, 
     including whether the institution has agreements with such 
     agencies, such as written memoranda of understanding, for the 
     investigation of alleged criminal offenses; and
       ``(iii) policies which encourage accurate and prompt 
     reporting of all crimes to the campus police and the 
     appropriate law enforcement agencies.'';
       (C) in subparagraph (F)(ii)--
       (i) by striking ``clause (i), and'' and inserting ``clause 
     (i), of larceny-theft, simple assault, intimidation, and 
     destruction, damage, or vandalism of property, and of''; and
       (ii) by inserting a comma after ``any person''; and
       (D) by adding at the end the following new subparagraph:
       ``(J) A statement of current campus policies regarding 
     immediate emergency response and evacuation procedures, 
     including the use of electronic and cellular communication 
     (if appropriate), which policies shall include procedures 
     to--
       ``(i) immediately notify the campus community upon the 
     confirmation of a significant emergency or dangerous 
     situation involving an immediate threat to the health or 
     safety of students or staff occurring on the campus, as 
     defined in paragraph (6), unless issuing a notification will 
     compromise efforts to contain the emergency;

[[Page 17152]]

       ``(ii) publicize emergency response and evacuation 
     procedures on an annual basis in a manner designed to reach 
     students and staff; and
       ``(iii) test emergency response and evacuation procedures 
     on an annual basis.'';
       (2) by redesignating paragraph (15) as paragraph (18); and
       (3) by inserting after paragraph (14) the following:
       ``(15) The Secretary shall annually report to the 
     authorizing committees regarding compliance with this 
     subsection by institutions of higher education, including an 
     up-to-date report on the Secretary's monitoring of such 
     compliance.
       ``(16) The Secretary may seek the advice and counsel of the 
     Attorney General concerning the development, and 
     dissemination to institutions of higher education, of best 
     practices information about campus safety and emergencies.
       ``(17) Nothing in this subsection shall be construed to 
     permit an institution, or an officer, employee, or agent of 
     an institution, participating in any program under this title 
     to retaliate, intimidate, threaten, coerce, or otherwise 
     discriminate against any individual with respect to the 
     implementation of any provision of this subsection.''.
       (f) Report.--Section 485(g)(4) (20 U.S.C. 1092(g)(4)) is 
     amended--
       (1) by striking subparagraph (B);
       (2) by redesignating subparagraphs (C) and (D) as 
     subparagraphs (B) and (C), respectively;
       (3) in subparagraph (B) (as redesignated by paragraph (2)), 
     by striking ``and the report to Congress described in 
     subparagraph (B)''; and
       (4) in subparagraph (C) (as redesignated by paragraph (2)), 
     by striking ``the information reported under subparagraph (B) 
     and''.
       (g) Additional Requirements.--Section 485 (20 U.S.C. 1092) 
     is further amended by adding at the end the following new 
     subsections:
       ``(h) Transfer of Credit Policies.--
       ``(1) Disclosure.--Each institution of higher education 
     participating in any program under this title shall publicly 
     disclose, in a readable and comprehensible manner, the 
     transfer of credit policies established by the institution 
     which shall include a statement of the institution's current 
     transfer of credit policies that includes, at a minimum--
       ``(A) any established criteria the institution uses 
     regarding the transfer of credit earned at another 
     institution of higher education; and
       ``(B) a list of institutions of higher education with which 
     the institution has established an articulation agreement.
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to--
       ``(A) authorize the Secretary or the National Advisory 
     Committee on Institutional Quality and Integrity to require 
     particular policies, procedures, or practices by institutions 
     of higher education with respect to transfer of credit;
       ``(B) authorize an officer or employee of the Department to 
     exercise any direction, supervision, or control over the 
     curriculum, program of instruction, administration, or 
     personnel of any institution of higher education, or over any 
     accrediting agency or association;
       ``(C) limit the application of the General Education 
     Provisions Act; or
       ``(D) create any legally enforceable right on the part of a 
     student to require an institution of higher education to 
     accept a transfer of credit from another institution.
       ``(i) Disclosure of Fire Safety Standards and Measures.--
       ``(1) Annual fire safety reports on student housing 
     required.--Each eligible institution participating in any 
     program under this title that maintains on-campus student 
     housing facilities shall, on an annual basis, publish a fire 
     safety report, which shall contain information with respect 
     to the campus fire safety practices and standards of that 
     institution, including--
       ``(A) statistics concerning the following in each on-campus 
     student housing facility during the most recent calendar 
     years for which data are available:
       ``(i) the number of fires and the cause of each fire;
       ``(ii) the number of injuries related to a fire that result 
     in treatment at a medical facility;
       ``(iii) the number of deaths related to a fire; and
       ``(iv) the value of property damage caused by a fire;
       ``(B) a description of each on-campus student housing 
     facility fire safety system, including the fire sprinkler 
     system;
       ``(C) the number of regular mandatory supervised fire 
     drills;
       ``(D) policies or rules on portable electrical appliances, 
     smoking, and open flames (such as candles), procedures for 
     evacuation, and policies regarding fire safety education and 
     training programs provided to students, faculty, and staff; 
     and
       ``(E) plans for future improvements in fire safety, if 
     determined necessary by such institution.
       ``(2) Report to the secretary.--Each eligible institution 
     participating in any program under this title shall, on an 
     annual basis, submit to the Secretary a copy of the 
     statistics required to be made available under paragraph 
     (1)(A).
       ``(3) Current information to campus community.--Each 
     eligible institution participating in any program under this 
     title shall--
       ``(A) make, keep, and maintain a log, recording all fires 
     in on-campus student housing facilities, including the 
     nature, date, time, and general location of each fire; and
       ``(B) make annual reports to the campus community on such 
     fires.
       ``(4) Responsibilities of the secretary.--The Secretary 
     shall--
       ``(A) make the statistics submitted under paragraph (1)(A) 
     to the Secretary available to the public; and
       ``(B) in coordination with nationally recognized fire 
     organizations and representatives of institutions of higher 
     education, representatives of associations of institutions of 
     higher education, and other organizations that represent and 
     house a significant number of students--
       ``(i) identify exemplary fire safety policies, procedures, 
     programs, and practices, including the installation, to the 
     technical standards of the National Fire Protection 
     Association, of fire detection, prevention, and protection 
     technologies in student housing, dormitories, and other 
     buildings;
       ``(ii) disseminate the exemplary policies, procedures, 
     programs and practices described in clause (i) to the 
     Administrator of the United States Fire Administration;
       ``(iii) make available to the public information concerning 
     those policies, procedures, programs, and practices that have 
     proven effective in the reduction of fires; and
       ``(iv) develop a protocol for institutions to review the 
     status of their fire safety systems.
       ``(5) Rules of construction.--Nothing in this subsection 
     shall be construed to--
       ``(A) authorize the Secretary to require particular 
     policies, procedures, programs, or practices by institutions 
     of higher education with respect to fire safety, other than 
     with respect to the collection, reporting, and dissemination 
     of information required by this subsection;
       ``(B) affect section 444 of the General Education 
     Provisions Act (the Family Educational Rights and Privacy Act 
     of 1974) or the regulations issued under section 264 of the 
     Health Insurance Portability and Accountability Act of 1996 
     (42 U.S.C. 1320d-2 note);
       ``(C) create a cause of action against any institution of 
     higher education or any employee of such an institution for 
     any civil liability; or
       ``(D) establish any standard of care.
       ``(6) Compliance report.--The Secretary shall annually 
     report to the authorizing committees regarding compliance 
     with this subsection by institutions of higher education, 
     including an up-to-date report on the Secretary's monitoring 
     of such compliance.
       ``(7) Evidence.--Notwithstanding any other provision of 
     law, evidence regarding compliance or noncompliance with this 
     subsection shall not be admissible as evidence in any 
     proceeding of any court, agency, board, or other entity, 
     except with respect to an action to enforce this subsection.
       ``(j) Missing Person Procedures.--
       ``(1) Option and procedures.--Each institution of higher 
     education that provides on-campus housing and participates in 
     any program under this title shall--
       ``(A) establish a missing student notification policy for 
     students who reside in on-campus housing that--
       ``(i) informs each such student that such student has the 
     option to identify an individual to be contacted by the 
     institution not later than 24 hours after the time that the 
     student is determined missing in accordance with official 
     notification procedures established by the institution under 
     subparagraph (B);
       ``(ii) provides each such student a means to register 
     confidential contact information in the event that the 
     student is determined to be missing for a period of more than 
     24 hours;
       ``(iii) advises each such student who is under 18 years of 
     age, and not an emancipated individual, that the institution 
     is required to notify a custodial parent or guardian not 
     later 24 hours after the time that the student is determined 
     to be missing in accordance with such procedures;
       ``(iv) informs each such residing student that the 
     institution will notify the appropriate law enforcement 
     agency not later than 24 hours after the time that the 
     student is determined missing in accordance with such 
     procedures; and
       ``(v) requires, if the campus security or law enforcement 
     personnel has been notified and makes a determination that a 
     student who is the subject of a missing person report has 
     been missing for more than 24 hours and has not returned to 
     the campus, the institution to initiate the emergency contact 
     procedures in accordance with the student's designation; and
       ``(B) establish official notification procedures for a 
     missing student who resides in on-campus housing that--
       ``(i) includes procedures for official notification of 
     appropriate individuals at the institution that such student 
     has been missing for more than 24 hours;
       ``(ii) requires any official missing person report relating 
     to such student be referred immediately to the institution's 
     police or campus security department; and
       ``(iii) if, on investigation of the official report, such 
     department determines that the missing student has been 
     missing for more than 24 hours, requires--

       ``(I) such department to contact the individual identified 
     by such student under subparagraph (A)(i);
       ``(II) if such student is under 18 years of age, and not an 
     emancipated individual, the institution to immediately 
     contact the custodial parent or legal guardian of such 
     student; and
       ``(III) if subclauses (I) or (II) do not apply to a student 
     determined to be a missing person, inform the appropriate law 
     enforcement agency.

[[Page 17153]]

       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed--
       ``(A) to provide a private right of action to any person to 
     enforce any provision of this subsection; or
       ``(B) to create a cause of action against any institution 
     of higher education or any employee of the institution for 
     any civil liability.
       ``(k) Notice to Students Concerning Penalties for Drug 
     Violations.--
       ``(1) Notice upon enrollment.--Each institution of higher 
     education shall provide to each student, upon enrollment, a 
     separate, clear, and conspicuous written notice that advises 
     the student of the penalties under section 484(r).
       ``(2) Notice after loss of eligibility.--An institution of 
     higher education shall provide in a timely manner to each 
     student who has lost eligibility for any grant, loan, or 
     work-study assistance under this title as a result of the 
     penalties listed under 484(r)(1) a separate, clear, and 
     conspicuous written notice that notifies the student of the 
     loss of eligibility and advises the student of the ways in 
     which the student can regain eligibility under section 
     484(r)(2).
       ``(l) Entrance Counseling for Borrowers.--
       ``(1) Disclosure required prior to disbursement.--
       ``(A) In general.--Each eligible institution shall, at or 
     prior to the time of a disbursement to a first-time borrower 
     of a loan made, insured, or guaranteed under part B (other 
     than a loan made pursuant to section 428C or a loan made on 
     behalf of a student pursuant to section 428B) or made under 
     part D (other than a Federal Direct Consolidation Loan or a 
     Federal Direct PLUS loan made on behalf of a student), ensure 
     that the borrower receives comprehensive information on the 
     terms and conditions of the loan and of the responsibilities 
     the borrower has with respect to such loan in accordance with 
     subparagraph (B). Such information--
       ``(i) shall be provided in a simple and understandable 
     manner; and
       ``(ii) may be provided--

       ``(I) during an entrance counseling session conduction in 
     person;
       ``(II) on a separate written form provided to the borrower 
     that the borrower signs and returns to the institution; or
       ``(III) online, with the borrower acknowledging receipt of 
     the information.

       ``(B) Use of interactive programs.--The Secretary shall 
     encourage institutions to carry out the requirements of 
     subparagraph (A) through the use of interactive programs that 
     test the borrower's understanding of the terms and conditions 
     of the borrower's loans under part B or D, using simple and 
     understandable language and clear formatting.
       ``(2) Information to be provided.--The information to be 
     provided to the borrower under paragraph (1)(A) shall include 
     the following:
       ``(A) To the extent practicable, the effect of accepting 
     the loan to be disbursed on the eligibility of the borrower 
     for other forms of student financial assistance.
       ``(B) An explanation of the use of the master promissory 
     note.
       ``(C) Information on how interest accrues and is 
     capitalized during periods when the interest is not paid by 
     either the borrower or the Secretary.
       ``(D) In the case of a loan made under section 428B or 
     428H, a Federal Direct PLUS Loan, or a Federal Direct 
     Unsubsidized Stafford Loan, the option of the borrower to pay 
     the interest while the borrower is in school.
       ``(E) The definition of half-time enrollment at the 
     institution, during regular terms and summer school, if 
     applicable, and the consequences of not maintaining half-time 
     enrollment.
       ``(F) An explanation of the importance of contacting the 
     appropriate offices at the institution of higher education if 
     the borrower withdraws prior to completing the borrower's 
     program of study so that the institution can provide exit 
     counseling, including information regarding the borrower's 
     repayment options and loan consolidation.
       ``(G) Sample monthly repayment amounts based on--
       ``(i) a range of levels of indebtedness of--

       ``(I) borrowers of loans under section 428 or 428H; and
       ``(II) as appropriate, graduate borrowers of loans under 
     section 428, 428B, or 428H; or

       ``(ii) the average cumulative indebtedness of other 
     borrowers in the same program as the borrower at the same 
     institution.
       ``(H) The obligation of the borrower to repay the full 
     amount of the loan, regardless of whether the borrower 
     completes or does not complete the program in which the 
     borrower is enrolled within the regular time for program 
     completion.
       ``(I) The likely consequences of default on the loan, 
     including adverse credit reports, delinquent debt collection 
     procedures under Federal law, and litigation.
       ``(J) Information on the National Student Loan Data System 
     and how the borrower can access the borrower's records.
       ``(K) The name of and contact information for the 
     individual the borrower may contact if the borrower has any 
     questions about the borrower's rights and responsibilities or 
     the terms and conditions of the loan.''.

     SEC. 489. NATIONAL STUDENT LOAN DATA SYSTEM.

       Section 485B (20 U.S.C. 1092b) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (6) through (10) as 
     paragraphs (7) through (11), respectively;
       (B) in paragraph (5) (as added by Public Law 101-610), by 
     striking ``effectiveness.'' and inserting ``effectiveness;''; 
     and
       (C) by redesignating paragraph (5) (as added by Public Law 
     101-234) as paragraph (6);
       (2) by redesignating subsections (d) through (g) as 
     subsections (e) through (h), respectively; and
       (3) by inserting after subsection (c) the following:
       ``(d) Principles for Administering the Data System.--In 
     managing the National Student Loan Data System, the Secretary 
     shall take actions necessary to maintain confidence in the 
     data system, including, at a minimum--
       ``(1) ensuring that the primary purpose of access to the 
     data system by guaranty agencies, eligible lenders, and 
     eligible institutions of higher education is for legitimate 
     program operations, such as the need to verify the 
     eligibility of a student, potential student, or parent for 
     loans under part B, D, or E;
       ``(2) prohibiting nongovernmental researchers and policy 
     analysts from accessing personally identifiable information;
       ``(3) creating a disclosure form for students and potential 
     students that is distributed when such students complete the 
     common financial reporting form under section 483, and as a 
     part of the exit counseling process under section 485(b), 
     that--
       ``(A) informs the students that any title IV grant or loan 
     the students receive will be included in the National Student 
     Loan Data System, and instructs the students on how to access 
     that information;
       ``(B) describes the categories of individuals or entities 
     that may access the data relating to such grant or loan 
     through the data system, and for what purposes access is 
     allowed;
       ``(C) defines and explains the categories of information 
     included in the data system;
       ``(D) provides a summary of the provisions of section 444 
     of the General Education Provisions Act (the Family 
     Educational Rights and Privacy Act of 1974) and other 
     applicable Federal privacy statutes, and a statement of the 
     students' rights and responsibilities with respect to such 
     statutes;
       ``(E) explains the measures taken by the Department to 
     safeguard the students' data; and
       ``(F) includes other information as determined appropriate 
     by the Secretary;
       ``(4) requiring guaranty agencies, eligible lenders, and 
     eligible institutions of higher education that enter into an 
     agreement with a potential student, student, or parent of 
     such student regarding a loan under part B, D, or E, to 
     inform the student or parent that such loan shall be--
       ``(A) submitted to the data system; and
       ``(B) accessible to guaranty agencies, eligible lenders, 
     and eligible institutions of higher education determined by 
     the Secretary to be authorized users of the data system;
       ``(5) regularly reviewing the data system to--
       ``(A) delete inactive users from the data system;
       ``(B) ensure that the data in the data system are not being 
     used for marketing purposes; and
       ``(C) monitor the use of the data system by guaranty 
     agencies and eligible lenders to determine whether an agency 
     or lender is accessing the records of students in which the 
     agency or lender has no existing financial interest; and
       ``(6) developing standardized protocols for limiting access 
     to the data system that include--
       ``(A) collecting data on the usage of the data system to 
     monitor whether access has been or is being used contrary to 
     the purposes of the data system;
       ``(B) defining the steps necessary for determining whether, 
     and how, to deny or restrict access to the data system; and
       ``(C) determining the steps necessary to reopen access to 
     the data system following a denial or restriction of 
     access.''; and
       (4) by striking subsection (e) (as redesignated by 
     paragraph (1)) and inserting the following:
       ``(e) Reports to Congress.--
       ``(1) Annual report.--Not later than September 30 of each 
     fiscal year, the Secretary shall prepare and submit to the 
     authorizing committees a report describing--
       ``(A) the effectiveness of existing privacy safeguards in 
     protecting student and parent information in the data system;
       ``(B) the success of any new authorization protocols in 
     more effectively preventing abuse of the data system;
       ``(C) the ability of the Secretary to monitor how the 
     system is being used, relative to the intended purposes of 
     the data system; and
       ``(D) any protocols developed under subsection (d)(6) 
     during the preceding fiscal year.
       ``(2) Study.--
       ``(A) In general.--The Secretary shall conduct a study 
     regarding--
       ``(i) available mechanisms for providing students and 
     parents with the ability to opt in or opt out of allowing 
     eligible lenders to access their records in the National 
     Student Loan Data System; and
       ``(ii) appropriate protocols for limiting access to the 
     data system, based on the risk assessment required under 
     subchapter III of chapter 35 of title 44, United States Code.
       ``(B) Submission of study.--Not later than three years 
     after the date of enactment of the Higher Education 
     Opportunity Act, the Secretary shall prepare and submit a 
     report on the findings of the study under subparagraph (A) to 
     the authorizing committees.''.

     SEC. 490. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

       Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
     inserting after section 485D (20 U.S.C. 1092c) the following:

[[Page 17154]]



     ``SEC. 485E. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

       ``(a) In General.--The Secretary shall implement, in 
     cooperation with States, institutions of higher education, 
     secondary schools, early intervention and outreach programs 
     under this title, other agencies and organizations involved 
     in student financial assistance and college access, public 
     libraries, community centers, employers, and businesses, a 
     comprehensive system of early financial aid information in 
     order to provide students and families with early information 
     about financial aid and early estimates of such students' 
     eligibility for financial aid from multiple sources. Such 
     system shall include the activities described in subsection 
     (b).
       ``(b) Communication of Availability of Aid and Aid 
     Eligibility.--
       ``(1) Students who receive benefits.--The Secretary shall--
       ``(A) make special efforts to notify students who receive 
     or are eligible to receive benefits under a Federal means-
     tested benefit program (including the supplemental nutrition 
     assistance program under the Food and Nutrition Act of 2008 
     (7 U.S.C. 2011 et seq.)), or another such benefit program as 
     determined by the Secretary, of such students' potential 
     eligibility for a maximum Federal Pell Grant under subpart 1 
     of part A; and
       ``(B) disseminate such informational materials, that are 
     part of the system described in subsection (a), as the 
     Secretary determines necessary.
       ``(2) Secondary school students.--The Secretary, in 
     cooperation with States, institutions of higher education, 
     other organizations involved in college access and student 
     financial aid, secondary schools, and programs under this 
     title that serve secondary school students, shall make 
     special efforts to notify students in secondary school and 
     their families, as early as possible but not later than such 
     students' junior year of secondary school, of the 
     availability of financial aid under this title and shall 
     provide nonbinding estimates of the amounts of grant and loan 
     aid that an individual may be eligible for under this title 
     upon completion of an application form under section 483(a). 
     The Secretary shall ensure that such information is as 
     accurate as possible and that such information is provided in 
     an age-appropriate format using dissemination mechanisms 
     suitable for students in secondary school.
       ``(3) Adult learners.--The Secretary, in cooperation with 
     States, institutions of higher education, other organizations 
     involved in college access and student financial aid, 
     employers, workforce investment boards, and public libraries, 
     shall make special efforts to provide individuals who would 
     qualify as independent students, as defined in section 
     480(d), with information regarding the availability of 
     financial aid under this title and with nonbinding estimates 
     of the amounts of grant and loan aid that an individual may 
     be eligible for under this title upon completion of an 
     application form under section 483(a). The Secretary shall 
     ensure that such information--
       ``(A) is as accurate as possible;
       ``(B) includes specific information regarding the 
     availability of financial aid for students qualified as 
     independent students, as defined in section 480(d); and
       ``(C) uses dissemination mechanisms suitable for adult 
     learners.
       ``(4) Public awareness campaign.--Not later than two years 
     after the date of enactment of the Higher Education 
     Opportunity Act, the Secretary, in coordination with States, 
     institutions of higher education, early intervention and 
     outreach programs under this title, other agencies and 
     organizations involved in college access and student 
     financial aid, secondary schools, organizations that provide 
     services to individuals that are or were homeless, to 
     individuals in foster care, or to other disconnected 
     individuals, local educational agencies, public libraries, 
     community centers, businesses, employers, employment 
     services, workforce investment boards, and movie theaters, 
     shall implement a public awareness campaign in order to 
     increase national awareness regarding the availability of 
     financial aid under this title. The public awareness campaign 
     shall disseminate accurate information regarding the 
     availability of financial aid under this title and shall be 
     implemented, to the extent practicable, using a variety of 
     media, including print, television, radio, and the Internet. 
     The Secretary shall design and implement the public awareness 
     campaign based upon relevant independent research and the 
     information and dissemination strategies found most effective 
     in implementing paragraphs (1) through (3).''.

     SEC. 491. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

       Section 486(f)(3) (20 U.S.C. 1093(f)(3)) is amended--
       (1) in subparagraph (B), by redesignating clauses (i) and 
     (ii) as subparagraphs (A) and (B), respectively, and 
     adjusting the margins accordingly; and
       (2) by striking ``Reports.--'' and all that follows through 
     ``House of Representatives on an annual basis'' and inserting 
     ``Annual reports.--The Secretary shall provide reports to the 
     authorizing committees on an annual basis''.

     SEC. 492. ARTICULATION AGREEMENTS.

       Part G of title IV is further amended by inserting after 
     section 486 (20 U.S.C. 1093) the following new section:

     ``SEC. 486A. ARTICULATION AGREEMENTS.

       ``(a) Definition.--In this section, the term `articulation 
     agreement' means an agreement between or among institutions 
     of higher education that specifies the acceptability of 
     courses in transfer toward meeting specific degree or program 
     requirements.
       ``(b) Program To Encourage Articulation Agreements.--
       ``(1) Program established.--The Secretary shall carry out a 
     program for States, in cooperation with public institutions 
     of higher education, to develop, enhance, and implement 
     comprehensive articulation agreements between or among such 
     institutions in a State, and (to the extent practicable) 
     across State lines, by 2010. Such articulation agreements 
     shall be made widely and publicly available on the websites 
     of States and such institutions. In developing, enhancing, 
     and implementing articulation agreements, States and public 
     institutions of higher education may employ strategies, where 
     applicable, including--
       ``(A) common course numbering;
       ``(B) a general education core curriculum;
       ``(C) management systems regarding course equivalency, 
     transfer of credit, and articulation; and
       ``(D) other strategies identified by the Secretary.
       ``(2) Technical assistance provided.--The Secretary shall 
     provide technical assistance to States and public 
     institutions of higher education for the purposes of 
     developing and implementing articulation agreements in 
     accordance with this subsection.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall be construed to authorize the Secretary to require 
     particular policies, procedures, or practices by institutions 
     of higher education with respect to articulation 
     agreements.''.

     SEC. 493. PROGRAM PARTICIPATION AGREEMENTS.

       (a) Program Participation Agreement Requirements.--
       (1) Voter registration; 90-10 rule; code of conduct; 
     disciplinary proceedings; preferred lender lists; private 
     education loan certification; copyrighted material.--
       (A) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is 
     amended--
       (i) in paragraph (23)--

       (I) by moving subparagraph (C) two ems to the left; and
       (II) by adding at the end the following:

       ``(D) The institution shall be considered in compliance 
     with the requirements of subparagraph (A) for each student to 
     whom the institution electronically transmits a message 
     containing a voter registration form acceptable for use in 
     the State in which the institution is located, or an Internet 
     address where such a form can be downloaded, if such 
     information is in an electronic message devoted exclusively 
     to voter registration.''; and
       (ii) by adding at the end the following:
       ``(24) In the case of a proprietary institution of higher 
     education (as defined in section 102(b)), such institution 
     will derive not less than ten percent of such institution's 
     revenues from sources other than funds provided under this 
     title, as calculated in accordance with subsection (d)(1), or 
     will be subject to the sanctions described in subsection 
     (d)(2).
       ``(25) In the case of an institution that participates in a 
     loan program under this title, the institution will--
       ``(A) develop a code of conduct with respect to such loans 
     with which the institution's officers, employees, and agents 
     shall comply, that--
       ``(i) prohibits a conflict of interest with the 
     responsibilities of an officer, employee, or agent of an 
     institution with respect to such loans; and
       ``(ii) at a minimum, includes the provisions described in 
     subsection (e);
       ``(B) publish such code of conduct prominently on the 
     institution's website; and
       ``(C) administer and enforce such code by, at a minimum, 
     requiring that all of the institution's officers, employees, 
     and agents with responsibilities with respect to such loans 
     be annually informed of the provisions of the code of 
     conduct.
       ``(26) The institution will, upon written request, disclose 
     to the alleged victim of any crime of violence (as that term 
     is defined in section 16 of title 18, United States Code), or 
     a nonforcible sex offense, the report on the results of any 
     disciplinary proceeding conducted by such institution against 
     a student who is the alleged perpetrator of such crime or 
     offense with respect to such crime or offense. If the alleged 
     victim of such crime or offense is deceased as a result of 
     such crime or offense, the next of kin of such victim shall 
     be treated as the alleged victim for purposes of this 
     paragraph.
       ``(27) In the case of an institution that has entered into 
     a preferred lender arrangement, the institution will at least 
     annually compile, maintain, and make available for students 
     attending the institution, and the families of such students, 
     a list, in print or other medium, of the specific lenders for 
     loans made, insured, or guaranteed under this title or 
     private education loans that the institution recommends, 
     promotes, or endorses in accordance with such preferred 
     lender arrangement. In making such list, the institution 
     shall comply with the requirements of subsection (h).
       ``(28)(A) The institution will, upon the request of an 
     applicant for a private education loan, provide to the 
     applicant the form required under section 128(e)(3) of the 
     Truth in Lending Act (15 U.S.C. 1638(e)(3)), and the 
     information required to complete such form, to the extent the 
     institution possesses such information.
       ``(B) For purposes of this paragraph, the term `private 
     education loan' has the meaning given such term in section 
     140 of the Truth in Lending Act.
       ``(29) The institution certifies that the institution--

[[Page 17155]]

       ``(A) has developed plans to effectively combat the 
     unauthorized distribution of copyrighted material, including 
     through the use of a variety of technology-based deterrents; 
     and
       ``(B) will, to the extent practicable, offer alternatives 
     to illegal downloading or peer-to-peer distribution of 
     intellectual property, as determined by the institution in 
     consultation with the chief technology officer or other 
     designated officer of the institution.''.
       (B) Effective date.--The amendment made by subparagraph (A) 
     with respect to section 487(a)(26) of the Higher Education 
     Act of 1965 (as added by subparagraph (A)) shall apply with 
     respect to any disciplinary proceeding conducted by an 
     institution on or after the day that is one year after the 
     date of enactment of this Act.
       (b) Audits; Financial Responsibility; Enforcement of 
     Standards.--Section 487(c)(1)(A)(i) (20 U.S.C. 
     1094(c)(1)(A)(i)) is amended by inserting before the 
     semicolon at the end the following: ``, except that the 
     Secretary may modify the requirements of this clause with 
     respect to institutions of higher education that are foreign 
     institutions, and may waive such requirements with respect to 
     a foreign institution whose students receives less than 
     $500,000 in loans under this title during the award year 
     preceding the audit period''.
       (c) Implementation of Non-Title IV Revenue Requirement; 
     Code of Conduct; Institutional Requirements for Teach-Outs; 
     Inspector General Report on Gift Ban Violations; Preferred 
     Lender List Requirements.--Section 487 (20 U.S.C. 1094) is 
     further amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (i) and (j), respectively; and
       (2) by inserting after subsection (c) the following:
       ``(d) Implementation of Non-Title IV Revenue Requirement.--
       ``(1) Calculation.--In making calculations under subsection 
     (a)(24), a proprietary institution of higher education 
     shall--
       ``(A) use the cash basis of accounting, except in the case 
     of loans described in subparagraph (D)(i) that are made by 
     the proprietary institution of higher education;
       ``(B) consider as revenue only those funds generated by the 
     institution from--
       ``(i) tuition, fees, and other institutional charges for 
     students enrolled in programs eligible for assistance under 
     this title;
       ``(ii) activities conducted by the institution that are 
     necessary for the education and training of the institution's 
     students, if such activities are--

       ``(I) conducted on campus or at a facility under the 
     control of the institution;
       ``(II) performed under the supervision of a member of the 
     institution's faculty; and
       ``(III) required to be performed by all students in a 
     specific educational program at the institution; and

       ``(iii) funds paid by a student, or on behalf of a student 
     by a party other than the institution, for an education or 
     training program that is not eligible for funds under this 
     title, if the program--

       ``(I) is approved or licensed by the appropriate State 
     agency;
       ``(II) is accredited by an accrediting agency recognized by 
     the Secretary; or
       ``(III) provides an industry-recognized credential or 
     certification;

       ``(C) presume that any funds for a program under this title 
     that are disbursed or delivered to or on behalf of a student 
     will be used to pay the student's tuition, fees, or other 
     institutional charges, regardless of whether the institution 
     credits those funds to the student's account or pays those 
     funds directly to the student, except to the extent that the 
     student's tuition, fees, or other institutional charges are 
     satisfied by--
       ``(i) grant funds provided by non-Federal public agencies 
     or private sources independent of the institution;
       ``(ii) funds provided under a contractual arrangement with 
     a Federal, State, or local government agency for the purpose 
     of providing job training to low-income individuals who are 
     in need of that training;
       ``(iii) funds used by a student from savings plans for 
     educational expenses established by or on behalf of the 
     student and which qualify for special tax treatment under the 
     Internal Revenue Code of 1986; or
       ``(iv) institutional scholarships described in subparagraph 
     (D)(iii);
       ``(D) include institutional aid as revenue to the school 
     only as follows:
       ``(i) in the case of loans made by a proprietary 
     institution of higher education on or after July 1, 2008 and 
     prior to July 1, 2012, the net present value of such loans 
     made by the institution during the applicable institutional 
     fiscal year accounted for on an accrual basis and estimated 
     in accordance with generally accepted accounting principles 
     and related standards and guidance, if the loans--

       ``(I) are bona fide as evidenced by enforceable promissory 
     notes;
       ``(II) are issued at intervals related to the institution's 
     enrollment periods; and
       ``(III) are subject to regular loan repayments and 
     collections;

       ``(ii) in the case of loans made by a proprietary 
     institution of higher education on or after July 1, 2012, 
     only the amount of loan repayments received during the 
     applicable institutional fiscal year, excluding repayments on 
     loans made and accounted for as specified in clause (i); and
       ``(iii) in the case of scholarships provided by a 
     proprietary institution of higher education, only those 
     scholarships provided by the institution in the form of 
     monetary aid or tuition discounts based upon the academic 
     achievements or financial need of students, disbursed during 
     each fiscal year from an established restricted account, and 
     only to the extent that funds in that account represent 
     designated funds from an outside source or from income earned 
     on those funds;
       ``(E) in the case of each student who receives a loan on or 
     after July 1, 2008, and prior to July 1, 2011, that is 
     authorized under section 428H or that is a Federal Direct 
     Unsubsidized Stafford Loan, treat as revenue received by the 
     institution from sources other than funds received under this 
     title, the amount by which the disbursement of such loan 
     received by the institution exceeds the limit on such loan in 
     effect on the day before the date of enactment of the 
     Ensuring Continued Access to Student Loans Act of 2008; and
       ``(F) exclude from revenues--
       ``(i) the amount of funds the institution received under 
     part C, unless the institution used those funds to pay a 
     student's institutional charges;
       ``(ii) the amount of funds the institution received under 
     subpart 4 of part A;
       ``(iii) the amount of funds provided by the institution as 
     matching funds for a program under this title;
       ``(iv) the amount of funds provided by the institution for 
     a program under this title that are required to be refunded 
     or returned; and
       ``(v) the amount charged for books, supplies, and 
     equipment, unless the institution includes that amount as 
     tuition, fees, or other institutional charges.
       ``(2) Sanctions.--
       ``(A) Ineligibility.--A proprietary institution of higher 
     education that fails to meet a requirement of subsection 
     (a)(24) for two consecutive institutional fiscal years shall 
     be ineligible to participate in the programs authorized by 
     this title for a period of not less than two institutional 
     fiscal years. To regain eligibility to participate in the 
     programs authorized by this title, a proprietary institution 
     of higher education shall demonstrate compliance with all 
     eligibility and certification requirements under section 498 
     for a minimum of two institutional fiscal years after the 
     institutional fiscal year in which the institution became 
     ineligible.
       ``(B) Additional enforcement.--In addition to such other 
     means of enforcing the requirements of this title as may be 
     available to the Secretary, if a proprietary institution of 
     higher education fails to meet a requirement of subsection 
     (a)(24) for any institutional fiscal year, then the 
     institution's eligibility to participate in the programs 
     authorized by this title becomes provisional for the two 
     institutional fiscal years after the institutional fiscal 
     year in which the institution failed to meet the requirement 
     of subsection (a)(24), except that such provisional 
     eligibility shall terminate--
       ``(i) on the expiration date of the institution's program 
     participation agreement under this subsection that is in 
     effect on the date the Secretary determines that the 
     institution failed to meet the requirement of subsection 
     (a)(24); or
       ``(ii) in the case that the Secretary determines that the 
     institution failed to meet a requirement of subsection 
     (a)(24) for two consecutive institutional fiscal years, on 
     the date the institution is determined ineligible in 
     accordance with subparagraph (A).
       ``(3) Publication on college navigator website.--The 
     Secretary shall publicly disclose on the College Navigator 
     website--
       ``(A) the identity of any proprietary institution of higher 
     education that fails to meet a requirement of subsection 
     (a)(24); and
       ``(B) the extent to which the institution failed to meet 
     such requirement.
       ``(4) Report to congress.--Not later than July 1, 2009, and 
     July 1 of each succeeding year, the Secretary shall submit to 
     the authorizing committees a report that contains, for each 
     proprietary institution of higher education that receives 
     assistance under this title, as provided in the audited 
     financial statements submitted to the Secretary by each 
     institution pursuant to the requirements of subsection 
     (a)(24)--
       ``(A) the amount and percentage of such institution's 
     revenues received from sources under this title; and
       ``(B) the amount and percentage of such institution's 
     revenues received from other sources.
       ``(e) Code of Conduct Requirements.--An institution of 
     higher education's code of conduct, as required under 
     subsection (a)(25), shall include the following requirements:
       ``(1) Ban on revenue-sharing arrangements.--
       ``(A) Prohibition.--The institution shall not enter into 
     any revenue-sharing arrangement with any lender.
       ``(B) Definition.--For purposes of this paragraph, the term 
     `revenue-sharing arrangement' means an arrangement between an 
     institution and a lender under which--
       ``(i) a lender provides or issues a loan that is made, 
     insured, or guaranteed under this title to students attending 
     the institution or to the families of such students; and
       ``(ii) the institution recommends the lender or the loan 
     products of the lender and in exchange, the lender pays a fee 
     or provides other material benefits, including revenue or 
     profit sharing, to the institution, an officer or employee of 
     the institution, or an agent.
       ``(2) Gift ban.--
       ``(A) Prohibition.--No officer or employee of the 
     institution who is employed in the financial

[[Page 17156]]

     aid office of the institution or who otherwise has 
     responsibilities with respect to education loans, or agent 
     who has responsibilities with respect to education loans, 
     shall solicit or accept any gift from a lender, guarantor, or 
     servicer of education loans.
       ``(B) Definition of gift.--
       ``(i) In general.--In this paragraph, the term `gift' means 
     any gratuity, favor, discount, entertainment, hospitality, 
     loan, or other item having a monetary value of more than a de 
     minimus amount. The term includes a gift of services, 
     transportation, lodging, or meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred.
       ``(ii) Exceptions.--The term `gift' shall not include any 
     of the following:

       ``(I) Standard material, activities, or programs on issues 
     related to a loan, default aversion, default prevention, or 
     financial literacy, such as a brochure, a workshop, or 
     training.
       ``(II) Food, refreshments, training, or informational 
     material furnished to an officer or employee of an 
     institution, or to an agent, as an integral part of a 
     training session that is designed to improve the service of a 
     lender, guarantor, or servicer of education loans to the 
     institution, if such training contributes to the professional 
     development of the officer, employee, or agent.
       ``(III) Favorable terms, conditions, and borrower benefits 
     on an education loan provided to a student employed by the 
     institution if such terms, conditions, or benefits are 
     comparable to those provided to all students of the 
     institution.
       ``(IV) Entrance and exit counseling services provided to 
     borrowers to meet the institution's responsibilities for 
     entrance and exit counseling as required by subsections (b) 
     and (l) of section 485, as long as--

       ``(aa) the institution's staff are in control of the 
     counseling, (whether in person or via electronic 
     capabilities); and
       ``(bb) such counseling does not promote the products or 
     services of any specific lender.

       ``(V) Philanthropic contributions to an institution from a 
     lender, servicer, or guarantor of education loans that are 
     unrelated to education loans or any contribution from any 
     lender, guarantor, or servicer that is not made in exchange 
     for any advantage related to education loans.
       ``(VI) State education grants, scholarships, or financial 
     aid funds administered by or on behalf of a State.

       ``(iii) Rule for gifts to family members.--For purposes of 
     this paragraph, a gift to a family member of an officer or 
     employee of an institution, to a family member of an agent, 
     or to any other individual based on that individual's 
     relationship with the officer, employee, or agent, shall be 
     considered a gift to the officer, employee, or agent if--

       ``(I) the gift is given with the knowledge and acquiescence 
     of the officer, employee, or agent; and
       ``(II) the officer, employee, or agent has reason to 
     believe the gift was given because of the official position 
     of the officer, employee, or agent.

       ``(3) Contracting arrangements prohibited.--
       ``(A) Prohibition.--An officer or employee who is employed 
     in the financial aid office of the institution or who 
     otherwise has responsibilities with respect to education 
     loans, or an agent who has responsibilities with respect to 
     education loans, shall not accept from any lender or 
     affiliate of any lender any fee, payment, or other financial 
     benefit (including the opportunity to purchase stock) as 
     compensation for any type of consulting arrangement or other 
     contract to provide services to a lender or on behalf of a 
     lender relating to education loans.
       ``(B) Exceptions.--Nothing in this subsection shall be 
     construed as prohibiting--
       ``(i) an officer or employee of an institution who is not 
     employed in the institution's financial aid office and who 
     does not otherwise have responsibilities with respect to 
     education loans, or an agent who does not have 
     responsibilities with respect to education loans, from 
     performing paid or unpaid service on a board of directors of 
     a lender, guarantor, or servicer of education loans;
       ``(ii) an officer or employee of the institution who is not 
     employed in the institution's financial aid office but who 
     has responsibility with respect to education loans as a 
     result of a position held at the institution, or an agent who 
     has responsibility with respect to education loans, from 
     performing paid or unpaid service on a board of directors of 
     a lender, guarantor, or servicer of education loans, if the 
     institution has a written conflict of interest policy that 
     clearly sets forth that officers, employees, or agents must 
     recuse themselves from participating in any decision of the 
     board regarding education loans at the institution; or
       ``(iii) an officer, employee, or contractor of a lender, 
     guarantor, or servicer of education loans from serving on a 
     board of directors, or serving as a trustee, of an 
     institution, if the institution has a written conflict of 
     interest policy that the board member or trustee must recuse 
     themselves from any decision regarding education loans at the 
     institution.
       ``(4) Interaction with borrowers.--The institution shall 
     not--
       ``(A) for any first-time borrower, assign, through award 
     packaging or other methods, the borrower's loan to a 
     particular lender; or
       ``(B) refuse to certify, or delay certification of, any 
     loan based on the borrower's selection of a particular lender 
     or guaranty agency.
       ``(5) Prohibition on offers of funds for private loans.--
       ``(A) Prohibition.--The institution shall not request or 
     accept from any lender any offer of funds to be used for 
     private education loans (as defined in section 140 of the 
     Truth in Lending Act), including funds for an opportunity 
     pool loan, to students in exchange for the institution 
     providing concessions or promises regarding providing the 
     lender with--
       ``(i) a specified number of loans made, insured, or 
     guaranteed under this title;
       ``(ii) a specified loan volume of such loans; or
       ``(iii) a preferred lender arrangement for such loans.
       ``(B) Definition of opportunity pool loan.--In this 
     paragraph, the term `opportunity pool loan' means a private 
     education loan made by a lender to a student attending the 
     institution or the family member of such a student that 
     involves a payment, directly or indirectly, by such 
     institution of points, premiums, additional interest, or 
     financial support to such lender for the purpose of such 
     lender extending credit to the student or the family.
       ``(6) Ban on staffing assistance.--
       ``(A) Prohibition.--The institution shall not request or 
     accept from any lender any assistance with call center 
     staffing or financial aid office staffing.
       ``(B) Certain assistance permitted.--Nothing in paragraph 
     (1) shall be construed to prohibit the institution from 
     requesting or accepting assistance from a lender related to--
       ``(i) professional development training for financial aid 
     administrators;
       ``(ii) providing educational counseling materials, 
     financial literacy materials, or debt management materials to 
     borrowers, provided that such materials disclose to borrowers 
     the identification of any lender that assisted in preparing 
     or providing such materials; or
       ``(iii) staffing services on a short-term, nonrecurring 
     basis to assist the institution with financial aid-related 
     functions during emergencies, including State-declared or 
     federally declared natural disasters, federally declared 
     national disasters, and other localized disasters and 
     emergencies identified by the Secretary.
       ``(7) Advisory board compensation.--Any employee who is 
     employed in the financial aid office of the institution, or 
     who otherwise has responsibilities with respect to education 
     loans or other student financial aid of the institution, and 
     who serves on an advisory board, commission, or group 
     established by a lender, guarantor, or group of lenders or 
     guarantors, shall be prohibited from receiving anything of 
     value from the lender, guarantor, or group of lenders or 
     guarantors, except that the employee may be reimbursed for 
     reasonable expenses incurred in serving on such advisory 
     board, commission, or group.
       ``(f) Institutional Requirements for Teach-Outs.--
       ``(1) In general.--In the event the Secretary initiates the 
     limitation, suspension, or termination of the participation 
     of an institution of higher education in any program under 
     this title under the authority of subsection (c)(1)(F) or 
     initiates an emergency action under the authority of 
     subsection (c)(1)(G) and its prescribed regulations, the 
     Secretary shall require that institution to prepare a teach-
     out plan for submission to the institution's accrediting 
     agency or association in compliance with section 496(c)(4), 
     the Secretary's regulations on teach-out plans, and the 
     standards of the institution's accrediting agency or 
     association.
       ``(2) Teach-out plan defined.--In this subsection, the term 
     `teach-out plan' means a written plan that provides for the 
     equitable treatment of students if an institution of higher 
     education ceases to operate before all students have 
     completed their program of study, and may include, if 
     required by the institution's accrediting agency or 
     association, an agreement between institutions for such a 
     teach-out plan.
       ``(g) Inspector General Report on Gift Ban Violations.--The 
     Inspector General of the Department shall--
       ``(1) submit an annual report to the authorizing committees 
     identifying all violations of an institution's code of 
     conduct that the Inspector General has substantiated during 
     the preceding year relating to the gift ban provisions 
     described in subsection (f)(2); and
       ``(2) make the report available to the public through the 
     Department's website.
       ``(h) Preferred Lender List Requirements.--
       ``(1) In general.--In compiling, maintaining, and making 
     available a preferred lender list as required under 
     subsection (a)(27), the institution will--
       ``(A) clearly and fully disclose on such preferred lender 
     list--
       ``(i) not less than the information required to be 
     disclosed under section 153(a)(2)(A);
       ``(ii) why the institution has entered into a preferred 
     lender arrangement with each lender on the preferred lender 
     list, particularly with respect to terms and conditions or 
     provisions favorable to the borrower; and
       ``(iii) that the students attending the institution, or the 
     families of such students, do not have to borrow from a 
     lender on the preferred lender list;
       ``(B) ensure, through the use of the list of lender 
     affiliates provided by the Secretary under paragraph (2), 
     that--
       ``(i) there are not less than three lenders of loans made 
     under part B that are not affiliates of each other included 
     on the preferred lender list and, if the institution 
     recommends, promotes, or endorses private education loans, 
     there are not less than two lenders of private education 
     loans that are not affiliates of each other included on the 
     preferred lender list; and

[[Page 17157]]

       ``(ii) the preferred lender list under this paragraph--

       ``(I) specifically indicates, for each listed lender, 
     whether the lender is or is not an affiliate of each other 
     lender on the preferred lender list; and
       ``(II) if a lender is an affiliate of another lender on the 
     preferred lender list, describes the details of such 
     affiliation;

       ``(C) prominently disclose the method and criteria used by 
     the institution in selecting lenders with which to enter into 
     preferred lender arrangements to ensure that such lenders are 
     selected on the basis of the best interests of the borrowers, 
     including--
       ``(i) payment of origination or other fees on behalf of the 
     borrower;
       ``(ii) highly competitive interest rates, or other terms 
     and conditions or provisions of loans under this title or 
     private education loans;
       ``(iii) high-quality servicing for such loans; or
       ``(iv) additional benefits beyond the standard terms and 
     conditions or provisions for such loans;
       ``(D) exercise a duty of care and a duty of loyalty to 
     compile the preferred lender list under this paragraph 
     without prejudice and for the sole benefit of the students 
     attending the institution, or the families of such students;
       ``(E) not deny or otherwise impede the borrower's choice of 
     a lender or cause unnecessary delay in loan certification 
     under this title for those borrowers who choose a lender that 
     is not included on the preferred lender list; and
       ``(F) comply with such other requirements as the Secretary 
     may prescribe by regulation.
       ``(2) Lender affiliates list.--
       ``(A) In general.--The Secretary shall maintain and 
     regularly update a list of lender affiliates of all eligible 
     lenders, and shall provide such list to institutions for use 
     in carrying out paragraph (1)(B).
       ``(B) Use of most recent list.--An institution shall use 
     the most recent list of lender affiliates provided by the 
     Secretary under subparagraph (A) in carrying out paragraph 
     (1)(B).''.
       (d) Definitions.--Section 487(i) (as redesignated by 
     subsection (c)(1)) (20 U.S.C. 1087(i)) is further amended--
       (1) by striking ``(i) Definition of Eligible Institution.--
     For the purpose of this section, the'' and inserting the 
     following:
       ``(i) Definitions.--For the purpose of this section:
       ``(1) Agent.--The term `agent' has the meaning given the 
     term in section 151.
       ``(2) Affiliate.--The term `affiliate' means a person that 
     controls, is controlled by, or is under common control with 
     another person. A person controls, is controlled by, or is 
     under common control with another person if--
       ``(A) the person directly or indirectly, or acting through 
     one or more others, owns, controls, or has the power to vote 
     five percent or more of any class of voting securities of 
     such other person;
       ``(B) the person controls, in any manner, the election of a 
     majority of the directors or trustees of such other person; 
     or
       ``(C) the Secretary determines (after notice and 
     opportunity for a hearing) that the person directly or 
     indirectly exercises a controlling interest over the 
     management or policies of such other person's education 
     loans.
       ``(3) Education loan.--The term `education loan' has the 
     meaning given the term in section 151.
       ``(4) Eligible institution.--The''; and
       (2) by adding at the end the following new paragraph:
       ``(5) Officer.--The term `officer' has the meaning given 
     the term in section 151.
       ``(6) Preferred lender arrangement.--The term `preferred 
     lender arrangement' has the meaning given the term in section 
     151.''.

     SEC. 494. REGULATORY RELIEF AND IMPROVEMENT.

       Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
       (1) by amending paragraph (1) to read as follows:
       ``(1) In general.--The Secretary shall continue the 
     voluntary participation of any experimental sites in 
     existence as of July 1, 2007, unless the Secretary determines 
     that such site's participation has not been successful in 
     carrying out the purposes of this section. Any activities 
     approved by the Secretary prior to such date that have not 
     been successful in carrying out the purposes of this section 
     shall be discontinued not later than June 30, 2009.'';
       (2) in paragraph (2), by striking the matter preceding 
     subparagraph (A) and inserting the following:
       ``(2) Report.--The Secretary shall review and evaluate the 
     experience of institutions participating as experimental 
     sites and shall, on a biennial basis, submit a report based 
     on the review and evaluation to the authorizing committees. 
     Such report shall include--''; and
       (3) in paragraph (3)--
       (A) in subparagraph (A)--
       (i) by striking ``Upon the submission of the report 
     required by paragraph (2), the'' and inserting ``The''; and
       (ii) by inserting ``periodically'' after ``authorized to'';
       (B) by striking subparagraph (B);
       (C) by redesignating subparagraph (C) as subparagraph (B); 
     and
       (D) in subparagraph (B) (as redesignated by subparagraph 
     (C))--
       (i) by inserting ``, including requirements related to the 
     award process and disbursement of student financial aid (such 
     as innovative delivery systems for modular or compressed 
     courses, or other innovative systems), verification of 
     student financial aid application data, entrance and exit 
     interviews, or other management procedures or processes as 
     determined in the negotiated rulemaking process under section 
     492'' after ``requirements in this title'';
       (ii) by inserting ``(other than an award rule related to an 
     experiment in modular or compressed schedules)'' after 
     ``award rules''; and
       (iii) by inserting ``unless the waiver of such provisions 
     is authorized by another provision under this title'' before 
     the period at the end.

     SEC. 494A. TRANSFER OF ALLOTMENTS.

       Section 488 (20 U.S.C. 1095) is amended in the first 
     sentence--
       (1) in paragraph (1), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (2), by striking ``413D.'' and inserting 
     ``413D or 462 (or both); and''; and
       (3) by adding at the end ``(3) transfer 25 percent of the 
     institution's allotment under section 413D to the 
     institution's allotment under section 442.''.

     SEC. 494B. PURPOSE OF ADMINISTRATIVE PAYMENTS.

       Section 489(b)(1) (20 U.S.C. 1096(b)(1)) is amended by 
     striking ``offsetting the administrative costs of'' and 
     inserting ``administering''.

     SEC. 494C. ADVISORY COMMITTEE ON STUDENT FINANCIAL 
                   ASSISTANCE.

       (a) Amendments.--Section 491 (20 U.S.C. 1098) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (B), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (C), by striking the period and 
     inserting a semicolon; and
       (C) by adding at the end the following:
       ``(D) to provide knowledge and understanding of early 
     intervention programs, and to make recommendations that will 
     result in early awareness by low- and moderate-income 
     students and families--
       ``(i) of their eligibility for assistance under this title; 
     and
       ``(ii) to the extent practicable, of their eligibility for 
     other forms of State and institutional need-based student 
     assistance;
       ``(E) to make recommendations that will expand and improve 
     partnerships among the Federal Government, States, 
     institutions of higher education, and private entities to 
     increase the awareness and the total amount of need-based 
     student assistance available to low- and moderate-income 
     students; and
       ``(F) to collect information on Federal regulations, and on 
     the impact of Federal regulations on student financial 
     assistance and on the cost of receiving a postsecondary 
     education, and to make recommendations to help streamline the 
     regulations for institutions of higher education from all 
     sectors.'';
       (2) by striking subsection (c) and inserting the following 
     new subsection:
       ``(c) Membership.--(1) The Advisory Committee shall consist 
     of 11 members appointed as follows:
       ``(A) Four members shall be appointed by the President pro 
     tempore of the Senate, of whom two members shall be appointed 
     from recommendations by the Majority Leader of the Senate, 
     and two members shall be appointed from recommendations by 
     the Minority Leader of the Senate.
       ``(B) Four members shall be appointed by the Speaker of the 
     House of Representatives, of whom two members shall be 
     appointed from recommendations by the Majority Leader of the 
     House of Representatives, and two members shall be appointed 
     from recommendations by the Minority Leader of the House of 
     Representatives.
       ``(C) Three members shall be appointed by the Secretary, of 
     whom at least one member shall be a student.
       ``(2) Each member of the Advisory Committee, with the 
     exception of a student member, shall be appointed on the 
     basis of technical qualifications, professional experience, 
     and demonstrated knowledge in the fields of higher education, 
     student financial aid, financing post-secondary education, 
     and the operations and financing of student loan guarantee 
     agencies.
       ``(3) The appointment of a member under subparagraph (A) or 
     (B) of paragraph (1) shall be effective upon publication of 
     such appointment in the Congressional Record.'';
       (3) in subsection (d)--
       (A) in paragraph (6), by striking ``, but nothing in this 
     section shall authorize the committee to perform such 
     studies, surveys, or analyses'';
       (B) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (C) by redesignating paragraph (9) as paragraph (11); and
       (D) by inserting after paragraph (8) (as amended by 
     subparagraph (B)) the following:
       ``(9) provide an annual report to the authorizing 
     committees that provides analyses and policy recommendations 
     regarding--
       ``(A) the adequacy of need-based grant aid for low- and 
     moderate-income students; and
       ``(B) the postsecondary enrollment and graduation rates of 
     low- and moderate-income students;
       ``(10) develop and maintain an information clearinghouse to 
     help institutions of higher education understand the 
     regulatory impact of the Federal Government on institutions 
     of higher education from all sectors, in order to raise 
     awareness of institutional legal obligations and provide 
     information to improve compliance with, and to reduce the 
     duplication and inefficiency of, Federal regulations; and'';
       (4) in subsection (e)--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``3'' and inserting ``4''; and

[[Page 17158]]

       (B) in paragraph (2), by striking ``A member of the 
     Advisory Committee shall'' and all that follows through ``on 
     the Advisory Committee.'' and inserting ``A member of the 
     Advisory Committee serving on the date of enactment of the 
     Higher Education Opportunity Act shall be permitted to serve 
     the duration of the member's term, regardless of whether the 
     member was previously appointed to more than one term.'';
       (5) in subsection (j)--
       (A) in paragraph (1)--
       (i) by inserting ``and simplifications'' after ``delivery 
     processes''; and
       (ii) by striking ``including the implementation of a 
     performance-based organization within the Department, and 
     report to Congress regarding such modernization on not less 
     than an annual basis,''; and
       (B) by striking paragraphs (4) and (5) and inserting the 
     following:
       ``(4) conduct a review and analysis of regulations in 
     accordance with subsection (l); and
       ``(5) conduct a study in accordance with subsection (m).'';
       (6) in subsection (k), by striking ``2004'' and inserting 
     ``2014''; and
       (7) by adding at the end the following:
       ``(l) Review and Analysis of Regulations.--
       ``(1) Recommendations.--The Advisory Committee shall make 
     recommendations to the Secretary and the authorizing 
     committees for consideration of future legislative action 
     regarding redundant or outdated regulations consistent with 
     the Secretary's requirements under section 498B.
       ``(2) Review and analysis of regulations.--
       ``(A) Review of current regulations.--To meet the 
     requirements of subsection (d)(10), the Advisory Committee 
     shall conduct a review and analysis of the regulations issued 
     by Federal agencies that are in effect at the time of the 
     review and that apply to the operations or activities of 
     institutions of higher education from all sectors. The review 
     and analysis may include a determination of whether the 
     regulation is duplicative, is no longer necessary, is 
     inconsistent with other Federal requirements, or is overly 
     burdensome. In conducting the review, the Advisory Committee 
     shall pay specific attention to evaluating ways in which 
     regulations under this title affecting institutions of higher 
     education (other than institutions described in section 
     102(a)(1)(C)), that have received in each of the two most 
     recent award years prior to the date of enactment of Higher 
     Education Opportunity Act less than $200,000 in funds through 
     this title, may be improved, streamlined, or eliminated.
       ``(B) Review and collection of future regulations.--The 
     Advisory Committee shall--
       ``(i) monitor all Federal regulations, including notices of 
     proposed rulemaking, for their impact or potential impact on 
     higher education; and
       ``(ii) provide a succinct description of each regulation or 
     proposed regulation that is generally relevant to 
     institutions of higher education from all sectors.
       ``(C) Maintenance of public website.--The Advisory 
     Committee shall develop and maintain an easy to use, 
     searchable, and regularly updated website that--
       ``(i) provides information collected in subparagraph (B);
       ``(ii) provides an area for the experts and members of the 
     public to provide recommendations for ways in which the 
     regulations may be streamlined; and
       ``(iii) publishes the study conducted by the National 
     Research Council of the National Academy of Sciences under 
     section 1106 of the Higher Education Opportunity Act.
       ``(3) Consultation.--
       ``(A) In general.--In carrying out the review, analysis, 
     and development of the website required under paragraph (2), 
     the Advisory Committee shall consult with the Secretary, 
     other Federal agencies, relevant representatives of 
     institutions of higher education, individuals who have 
     expertise and experience with Federal regulations, and the 
     review panels described in subparagraph (B).
       ``(B) Review panels.--The Advisory Committee shall convene 
     not less than two review panels of representatives of the 
     groups involved in higher education, including individuals 
     involved in student financial assistance programs under this 
     title, who have experience and expertise in the regulations 
     issued by the Federal Government that affect all sectors of 
     higher education, in order to review the regulations and to 
     provide recommendations to the Advisory Committee with 
     respect to the review and analysis under paragraph (2). The 
     panels shall be made up of experts in areas such as the 
     operations of the financial assistance programs, the 
     institutional eligibility requirements for the financial 
     assistance programs, regulations not directly related to the 
     operations or the institutional eligibility requirements of 
     the financial assistance programs, and regulations for 
     dissemination of information to students about the financial 
     assistance programs.
       ``(4) Periodic updates to the authorizing committees.--The 
     Advisory Committee shall--
       ``(A) submit, not later than two years after the completion 
     of the negotiated rulemaking process required under section 
     492 resulting from the amendments to this Act made by the 
     Higher Education Opportunity Act, a report to the authorizing 
     committees and the Secretary detailing the review panels' 
     findings and recommendations with respect to the review of 
     regulations; and
       ``(B) provide periodic updates to the authorizing 
     committees regarding--
       ``(i) the impact of all Federal regulations on all sectors 
     of higher education; and
       ``(ii) suggestions provided through the website for 
     streamlining or eliminating duplicative regulations.
       ``(5) Additional support.--The Secretary and the Inspector 
     General of the Department shall provide such assistance and 
     resources to the Advisory Committee as the Secretary and 
     Inspector General determine are necessary to conduct the 
     review and analysis required by this subsection.
       ``(m) Study of Innovative Pathways to Baccalaureate Degree 
     Attainment.--
       ``(1) Study required.--The Advisory Committee shall conduct 
     a study of the feasibility of increasing baccalaureate degree 
     attainment rates by reducing the costs and financial barriers 
     to attaining a baccalaureate degree through innovative 
     programs.
       ``(2) Scope of study.--The Advisory Committee shall examine 
     new and existing programs that promote baccalaureate degree 
     attainment through innovative ways, such as dual or 
     concurrent enrollment programs, changes made to the Federal 
     Pell Grant program, simplification of the needs analysis 
     process, compressed or modular scheduling, articulation 
     agreements, and programs that allow two-year institutions of 
     higher education to offer baccalaureate degrees.
       ``(3) Required aspects of the study.--In performing the 
     study described in this subsection, the Advisory Committee 
     shall examine the following aspects of such innovative 
     programs:
       ``(A) The impact of such programs on baccalaureate 
     attainment rates.
       ``(B) The degree to which a student's total cost of 
     attaining a baccalaureate degree can be reduced by such 
     programs.
       ``(C) The ways in which low- and moderate-income students 
     can be specifically targeted by such programs.
       ``(D) The ways in which nontraditional students can be 
     specifically targeted by such programs.
       ``(E) The cost-effectiveness for the Federal Government, 
     States, and institutions of higher education to implement 
     such programs.
       ``(4) Consultation.--
       ``(A) In general.--In performing the study described in 
     this subsection, the Advisory Committee shall consult with a 
     broad range of interested parties in higher education, 
     including parents, students, appropriate representatives of 
     secondary schools and institutions of higher education, 
     appropriate State administrators, administrators of dual or 
     concurrent enrollment programs, and appropriate Department 
     officials.
       ``(B) Consultation with the authorizing committees.--The 
     Advisory Committee shall consult on a regular basis with the 
     authorizing committees in carrying out the study required by 
     this subsection.
       ``(5) Reports to authorizing committees.--
       ``(A) Interim report.--The Advisory Committee shall prepare 
     and submit to the authorizing committees and the Secretary an 
     interim report, not later than one year after the date of 
     enactment of the Higher Education Opportunity Act, describing 
     the progress made in conducting the study required by this 
     subsection and any preliminary findings on the topics 
     identified under paragraph (2).
       ``(B) Final report.--The Advisory Committee shall, not 
     later than three years after the date of enactment of the 
     Higher Education Opportunity Act, prepare and submit to the 
     authorizing committees and the Secretary a final report on 
     the study, including recommendations for legislative, 
     regulatory, and administrative changes based on findings 
     related to the topics identified under paragraph (2).''.
       (b) Conforming Amendments.--Subsections (a)(1), (b), and 
     (d)(6) of section 491 (20 U.S.C. 1098) are each amended by 
     striking ``Congress'' and inserting ``authorizing 
     committees''.

     SEC. 494D. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

       (a) Regional Meetings.--Section 492(a) (20 U.S.C. 1098a(a)) 
     is amended--
       (1) in paragraph (1), by inserting ``State student grant 
     agencies,'' after ``institutions of higher education,''; and
       (2) in paragraph (2), by striking ``, as amended by the 
     Higher Education Amendments of 1998''.
       (b) Negotiated Rulemaking.--Section 492(b)(1) (20 U.S.C. 
     1098a(b)(1)) is amended--
       (1) in the first sentence, by striking ``as amended by the 
     Higher Education Amendments of 1998''; and
       (2) in the third sentence--
       (A) by striking ``To the extent possible, the Secretary'' 
     and inserting ``The Secretary''; and
       (B) by inserting ``with demonstrated expertise or 
     experience in the relevant subjects under negotiation,'' 
     after ``select individuals''.

     SEC. 494E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.

       Section 493A (20 U.S.C. 1098c) is repealed.

     SEC. 494F. TECHNICAL AMENDMENT OF INCOME-BASED REPAYMENT.

       Section 493C(b)(1) (20 U.S.C. 1098e(b)(1)) is amended by 
     striking ``or is already in default'' and inserting ``or had 
     been in default''.

                       PART H--PROGRAM INTEGRITY

     SEC. 495. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

       Section 496 (20 U.S.C. 1099b) is amended--
       (1) in subsection (a)--
       (A) by striking paragraph (4) and inserting the following:
       ``(4)(A) such agency or association consistently applies 
     and enforces standards that respect the stated mission of the 
     institution of higher education, including religious 
     missions,

[[Page 17159]]

     and that ensure that the courses or programs of instruction, 
     training, or study offered by the institution of higher 
     education, including distance education or correspondence 
     courses or programs, are of sufficient quality to achieve, 
     for the duration of the accreditation period, the stated 
     objective for which the courses or the programs are offered; 
     and
       ``(B) if such agency or association has or seeks to include 
     within its scope of recognition the evaluation of the quality 
     of institutions or programs offering distance education or 
     correspondence education, such agency or association shall, 
     in addition to meeting the other requirements of this 
     subpart, demonstrate to the Secretary that--
       ``(i) the agency or association's standards effectively 
     address the quality of an institution's distance education or 
     correspondence education in the areas identified in paragraph 
     (5), except that--
       ``(I) the agency or association shall not be required to 
     have separate standards, procedures, or policies for the 
     evaluation of distance education or correspondence education 
     institutions or programs in order to meet the requirements of 
     this subparagraph; and
       ``(II) in the case that the agency or association is 
     recognized by the Secretary, the agency or association shall 
     not be required to obtain the approval of the Secretary to 
     expand its scope of accreditation to include distance 
     education or correspondence education, provided that the 
     agency or association notifies the Secretary in writing of 
     the change in scope; and
       ``(ii) the agency or association requires an institution 
     that offers distance education or correspondence education to 
     have processes through which the institution establishes that 
     the student who registers in a distance education or 
     correspondence education course or program is the same 
     student who participates in and completes the program and 
     receives the academic credit;'';
       (B) in paragraph (5), by amending subparagraph (A) to read 
     as follows:
       ``(A) success with respect to student achievement in 
     relation to the institution's mission, which may include 
     different standards for different institutions or programs, 
     as established by the institution, including, as appropriate, 
     consideration of State licensing examinations, consideration 
     of course completion, and job placement rates;'';
       (C) by striking paragraph (6) and inserting the following:
       ``(6) such an agency or association shall establish and 
     apply review procedures throughout the accrediting process, 
     including evaluation and withdrawal proceedings, which comply 
     with due process procedures that provide--
       ``(A) for adequate written specification of--
       ``(i) requirements, including clear standards for an 
     institution of higher education or program to be accredited; 
     and
       ``(ii) identified deficiencies at the institution or 
     program examined;
       ``(B) for sufficient opportunity for a written response, by 
     an institution or program, regarding any deficiencies 
     identified by the agency or association to be considered by 
     the agency or association--
       ``(i) within a timeframe determined by the agency or 
     association; and
       ``(ii) prior to final action in the evaluation and 
     withdrawal proceedings;
       ``(C) upon the written request of an institution or 
     program, for an opportunity for the institution or program to 
     appeal any adverse action under this section, including 
     denial, withdrawal, suspension, or termination of 
     accreditation, taken against the institution or program, 
     prior to such action becoming final at a hearing before an 
     appeals panel that--
       ``(i) shall not include current members of the agency's or 
     association's underlying decisionmaking body that made the 
     adverse decision; and
       ``(ii) is subject to a conflict of interest policy;
       ``(D) for the right to representation and participation by 
     counsel for an institution or program during an appeal of the 
     adverse action;
       ``(E) for a process, in accordance with written procedures 
     developed by the agency or association, through which an 
     institution or program, before a final adverse action based 
     solely upon a failure to meet a standard or criterion 
     pertaining to finances, may on one occasion seek review of 
     significant financial information that was unavailable to the 
     institution or program prior to the determination of the 
     adverse action, and that bears materially on the financial 
     deficiencies identified by the agency or association;
       ``(F) in the case that the agency or association determines 
     that the new financial information submitted by the 
     institution or program under subparagraph (E) meets the 
     criteria of significance and materiality described in such 
     subparagraph, for consideration by the agency or association 
     of the new financial information prior to the adverse action 
     described in such subparagraph becoming final; and
       ``(G) that any determination by the agency or association 
     made with respect to the new financial information described 
     in subparagraph (E) shall not be separately appealable by the 
     institution or program.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, including those 
     regarding distance education'' after ``their 
     responsibilities'';
       (B) by redesignating paragraphs (2) through (6) as 
     paragraphs (4) through (8);
       (C) by inserting after paragraph (1) (as amended by 
     subparagraph (A)) the following:
       ``(2) monitors the growth of programs at institutions that 
     are experiencing significant enrollment growth;
       ``(3) requires an institution to submit for approval to the 
     accrediting agency a teach-out plan upon the occurrence of 
     any of the following events:
       ``(A) the Department notifies the accrediting agency of an 
     action against the institution pursuant to section 487(f);
       ``(B) the accrediting agency acts to withdraw, terminate, 
     or suspend the accreditation of the institution; or
       ``(C) the institution notifies the accrediting agency that 
     the institution intends to cease operations;'';
       (D) by striking paragraph (7) (as redesignated by 
     subparagraph (B)) and inserting the following:
       ``(7) makes available to the public and the State licensing 
     or authorizing agency, and submits to the Secretary, a 
     summary of agency or association actions, including--
       ``(A) the award of accreditation or reaccreditation of an 
     institution;
       ``(B) final denial, withdrawal, suspension, or termination 
     of accreditation of an institution, and any findings made in 
     connection with the action taken, together with the official 
     comments of the affected institution; and
       ``(C) any other adverse action taken with respect to an 
     institution or placement on probation of an institution;'';
       (E) in paragraph (8) (as redesignated by subparagraph (B)), 
     by striking the period and inserting ``; and''; and
       (F) by adding at the end the following:
       ``(9) confirms, as a part of the agency's or association's 
     review for accreditation or reaccreditation, that the 
     institution has transfer of credit policies--
       ``(A) that are publicly disclosed; and
       ``(B) that include a statement of the criteria established 
     by the institution regarding the transfer of credit earned at 
     another institution of higher education.'';
       (3) in subsection (g), by adding at the end the following: 
     ``Nothing in this section shall be construed to permit the 
     Secretary to establish any criteria that specifies, defines, 
     or prescribes the standards that accrediting agencies or 
     associations shall use to assess any institution's success 
     with respect to student achievement.'';
       (4) in subsection (o), by adding at the end the following: 
     ``Notwithstanding any other provision of law, the Secretary 
     shall not promulgate any regulation with respect to the 
     standards of an accreditation agency or association described 
     in subsection (a)(5).''; and
       (5) by adding at the end the following new subsection:
       ``(p) Rule of Construction.--Nothing in subsection (a)(5) 
     shall be construed to restrict the ability of--
       ``(1) an accrediting agency or association to set, with the 
     involvement of its members, and to apply, accreditation 
     standards for or to institutions or programs that seek review 
     by the agency or association; or
       ``(2) an institution to develop and use institutional 
     standards to show its success with respect to student 
     achievement, which achievement may be considered as part of 
     any accreditation review.
       ``(q) Review of Scope Changes.--The Secretary shall require 
     a review, at the next available meeting of the National 
     Advisory Committee on Institutional Quality and Integrity, of 
     any change in scope undertaken by an agency or association 
     under subsection (a)(4)(B)(i)(II) if the enrollment of an 
     institution that offers distance education or correspondence 
     education that is accredited by such agency or association 
     increases by 50 percent or more within any one institutional 
     fiscal year.''.

     SEC. 496. ELIGIBILITY AND CERTIFICATION PROCEDURES.

       Section 498 (20 U.S.C. 1099c) is amended--
       (1) in subsection (d)(1)(B), by inserting ``and'' after the 
     semicolon; and
       (2) by adding at the end the following:
       ``(k) Treatment of Teach-Outs at Additional Locations.--
       ``(1) In general.--A location of a closed institution of 
     higher education shall be eligible as an additional location 
     of an eligible institution of higher education, as defined 
     pursuant to regulations of the Secretary, for the purposes of 
     a teach-out described in section 487(f), if such teach-out 
     has been approved by the institution's accrediting agency.
       ``(2) Special rule.--An institution of higher education 
     that conducts a teach-out through the establishment of an 
     additional location described in paragraph (1) shall be 
     permitted to establish a permanent additional location at a 
     closed institution and shall not be required--
       ``(A) to meet the requirements of sections 102(b)(1)(E) and 
     102(c)(1)(C) for such additional location; or
       ``(B) to assume the liabilities of the closed 
     institution.''.

     SEC. 497. PROGRAM REVIEW AND DATA.

       Section 498A(b) (20 U.S.C. 1099c-1(b)) is amended--
       (1) in paragraph (4), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (5) by striking the period and inserting a 
     semicolon; and
       (3) by adding at the end the following:
       ``(6) provide to an institution of higher education an 
     adequate opportunity to review and respond to any program 
     review report and relevant materials related to the report 
     before any final program review report is issued;
       ``(7) review and take into consideration an institution of 
     higher education's response in any final program review 
     report or audit determination, and include in the report or 
     determination--

[[Page 17160]]

       ``(A) a written statement addressing the institution of 
     higher education's response;
       ``(B) a written statement of the basis for such report or 
     determination; and
       ``(C) a copy of the institution's response; and
       ``(8) maintain and preserve at all times the 
     confidentiality of any program review report until the 
     requirements of paragraphs (6) and (7) are met, and until a 
     final program review is issued, other than to the extent 
     required to comply with paragraph (5), except that the 
     Secretary shall promptly disclose any and all program review 
     reports to the institution of higher education under 
     review.''.

     SEC. 498. REVIEW OF REGULATIONS.

       Section 498B (20 U.S.C. 1099c-2) is amended by striking 
     subsection (d).

             PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM

     SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM EVALUATION.

       SECTION 499 (20 U.S.C. 1099D) IS AMENDED--

       (1) in subsection (b)(3)--
       (A) in subparagraph (B)--
       (i) in clause (i), by striking ``and'' after the semicolon;
       (ii) in clause (ii), by striking the period at the end of 
     the sentence and inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(iii) a commitment from such eligible lender that, if the 
     lender has a winning bid under subparagraph (F), the lender 
     will enter into the agreement required under subparagraph 
     (G).'';
       (B) by striking subparagraph (G) and inserting the 
     following:
       ``(G) Agreement with secretary; compliance.--
       ``(i) Agreement.--Each eligible lender having a winning bid 
     under subparagraph (F) shall enter into an agreement with the 
     Secretary under which the eligible lender--

       ``(I) agrees to originate eligible Federal PLUS Loans under 
     this paragraph to each borrower who--

       ``(aa) seeks an eligible Federal PLUS Loan under this 
     paragraph to enable a dependent student to attend an 
     institution of higher education within the State;
       ``(bb) is eligible for an eligible Federal PLUS Loan; and
       ``(cc) elects to borrow from the eligible lender; and

       ``(II) agrees to accept a special allowance payment (after 
     the application of section 438(b)(2)(I)(v)) from the 
     Secretary with respect to the eligible Federal PLUS Loans 
     originated under subclause (I) in the amount proposed in the 
     second lowest winning bid described in subparagraph (F) for 
     the applicable State auction.

       ``(ii) Compliance.--If an eligible lender with a winning 
     bid under subparagraph (F) fails to enter into the agreement 
     required under clause (i), or fails to comply with the terms 
     of such agreement, the Secretary may sanction such eligible 
     lender through one or more of the following:

       ``(I) The assessment of a penalty on such eligible lender 
     for any eligible Federal PLUS Loans that such eligible lender 
     fails to originate under this paragraph in accordance with 
     the agreement required under clause (i), in the amount of the 
     additional costs (including the amounts of any increase in 
     special allowance payments) incurred by the Secretary in 
     obtaining another eligible lender to originate such eligible 
     Federal PLUS Loans. The Secretary shall collect such penalty 
     by--

       ``(aa) reducing the amount of any payments otherwise due to 
     such eligible lender from the Secretary by the amount of the 
     penalty; or
       ``(bb) requesting any other Federal agency to reduce the 
     amount of any payments due to such eligible lender from such 
     agency by the amount of the penalty, in accordance with 
     section 3716 of title 31, United States Code.

       ``(II) A prohibition of bidding by such lender in other 
     auctions under this section.
       ``(III) The limitation, suspension, or termination of such 
     eligible lender's participation in the loan program under 
     part B.
       ``(IV) Any other enforcement action the Secretary is 
     authorized to take under part B.''; and

       (C) by striking subparagraph (J) and inserting the 
     following:
       ``(J) Guarantee against losses.--Each eligible Federal PLUS 
     Loan originated under this paragraph shall be insured by a 
     guaranty agency in accordance with part B, except that, 
     notwithstanding section 428(b)(1)(G), such insurance shall be 
     in an amount equal to 99 percent of the unpaid principal and 
     interest due on the loan.''; and
       (2) by adding at the end the following new subsections:
       ``(c) Required Initial Evaluation.--The Secretary and 
     Secretary of the Treasury shall jointly conduct an 
     evaluation, in consultation with the Office of Management and 
     Budget, the Congressional Budget Office, and the Comptroller 
     General, of the pilot program carried out by the Secretary 
     under this section. The evaluation shall determine--
       ``(1) the extent of the savings to the Federal Government 
     that are generated through the pilot program, compared to the 
     cost the Federal Government would have incurred in operating 
     the PLUS loan program under section 428B in the absence of 
     the pilot program;
       ``(2) the number of lenders that participated in the pilot 
     program, and the extent to which the pilot program generated 
     competition among lenders to participate in the auctions 
     under the pilot program;
       ``(3) the number and volume of loans made under the pilot 
     program in each State;
       ``(4) the effect of the transition to and operation of the 
     pilot program on the ability of--
       ``(A) lenders participating in the pilot program to 
     originate loans made through the pilot program smoothly and 
     efficiently;
       ``(B) institutions of higher education participating in the 
     pilot program to disburse loans made through the pilot 
     program smoothly and efficiently; and
       ``(C) parents to obtain loans made through the pilot 
     program in a timely and efficient manner;
       ``(5) the differential impact, if any, of the auction among 
     the States, including between rural and non-rural States; and
       ``(6) the feasibility of using the mechanism piloted to 
     operate the other loan programs under part B of this title.
       ``(d) Reports.--
       ``(1) In general.--The Secretary and the Secretary of the 
     Treasury shall submit to the authorizing committees--
       ``(A) not later than September 1, 2010, a preliminary 
     report regarding the findings of the evaluation described in 
     subsection (c);
       ``(B) not later than September 1, 2012, an interim report 
     regarding such findings; and
       ``(C) not later than September 1, 2013, a final report 
     regarding such findings.
       ``(2) Contents.--The Secretary shall include, in each 
     report required under subparagraphs (A), (B), and (C) of 
     paragraph (1), any recommendations, that are based on the 
     findings of the evaluation under subsection (c), for--
       ``(A) improving the operation and administration of the 
     auction; and
       ``(B) improving the operation and administration of other 
     loan programs under part B.''.
                    TITLE V--DEVELOPING INSTITUTIONS

     SEC. 501. AUTHORIZED ACTIVITIES.

       Section 503(b) (20 U.S.C. 1101b(b)) is amended--
       (1) by redesignating paragraphs (6), (7), (8), (9), (10), 
     (11), (12), (13), and (14), as paragraphs (7), (8), (9), 
     (10), (11), (12), (13), (14), and (16), respectively;
       (2) in paragraph (5), by inserting ``, including innovative 
     and customized instruction courses (which may include 
     remedial education and English language instruction) designed 
     to help retain students and move the students rapidly into 
     core courses and through program completion'' before the 
     period at the end;
       (3) by inserting after paragraph (5) the following:
       ``(6) Articulation agreements and student support programs 
     designed to facilitate the transfer from two-year to four-
     year institutions.'';
       (4) by inserting after paragraph (14) (as redesignated by 
     paragraph (1)) the following:
       ``(15) Providing education, counseling services, or 
     financial information designed to improve the financial 
     literacy and economic literacy of students or the students' 
     families, especially with regard to student indebtedness and 
     student assistance programs under title IV.''; and
       (5) in paragraph (11) (as redesignated by paragraph (1)), 
     by striking ``distance learning academic instruction 
     capabilities'' and inserting ``distance education 
     technologies''.

     SEC. 502. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                   AMERICANS.

       (a) Amendments.--Title V (20 U.S.C. 1101 et seq.) is 
     amended--
       (1) by redesignating part B as part C;
       (2) by redesignating sections 511 through 518 as sections 
     521 through 528, respectively; and
       (3) by inserting after section 505 the following:

     ``PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR 
                   HISPANIC AMERICANS

     ``SEC. 511. PURPOSES.

       ``The purposes of this part are--
       ``(1) to expand postbaccalaureate educational opportunities 
     for, and improve the academic attainment of, Hispanic 
     students; and
       ``(2) to expand the postbaccalaureate academic offerings 
     and enhance the program quality in the institutions of higher 
     education that are educating the majority of Hispanic college 
     students and helping large numbers of Hispanic and low-income 
     students complete postsecondary degrees.

     ``SEC. 512. PROGRAM AUTHORITY AND ELIGIBILITY.

       ``(a) Program Authorized.--Subject to the availability of 
     funds appropriated to carry out this part, the Secretary 
     shall award grants, on a competitive basis, to eligible 
     institutions to enable the eligible institutions to carry out 
     the authorized activities described in section 513.
       ``(b) Eligibility.--For the purposes of this part, an 
     `eligible institution' means an institution of higher 
     education that--
       ``(1) is a Hispanic-serving institution (as defined in 
     section 502); and
       ``(2) offers a postbaccalaureate certificate or 
     postbaccalaureate degree granting program.

     ``SEC. 513. AUTHORIZED ACTIVITIES.

       ``Grants awarded under this part shall be used for one or 
     more of the following activities:
       ``(1) Purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes.
       ``(2) Construction, maintenance, renovation, and 
     improvement of classrooms, libraries, laboratories, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services.
       ``(3) Purchase of library books, periodicals, technical and 
     other scientific journals, microfilm, microfiche, and other 
     educational materials, including telecommunications program 
     materials.
       ``(4) Support for low-income postbaccalaureate students 
     including outreach, academic support services, mentoring, 
     scholarships, fellowships, and other financial assistance to 
     permit the enrollment of such students in postbaccalaureate

[[Page 17161]]

     certificate and postbaccalaureate degree granting programs.
       ``(5) Support of faculty exchanges, faculty development, 
     faculty research, curriculum development, and academic 
     instruction.
       ``(6) Creating or improving facilities for Internet or 
     other distance education technologies, including purchase or 
     rental of telecommunications technology equipment or 
     services.
       ``(7) Collaboration with other institutions of higher 
     education to expand postbaccalaureate certificate and 
     postbaccalaureate degree offerings.
       ``(8) Other activities proposed in the application 
     submitted pursuant to section 514 that--
       ``(A) contribute to carrying out the purposes of this part; 
     and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.

     ``SEC. 514. APPLICATION AND DURATION.

       ``(a) Application.--Any eligible institution may apply for 
     a grant under this part by submitting an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require. Such application shall demonstrate how the grant 
     funds will be used to improve postbaccalaureate education 
     opportunities for Hispanic and low-income students.
       ``(b) Duration.--Grants under this part shall be awarded 
     for a period not to exceed five years.
       ``(c) Limitation.--The Secretary may not award more than 
     one grant under this part in any fiscal year to any Hispanic-
     serving institution.''.
       (b) Conforming Amendments.--Title V (20 U.S.C. 1101 et 
     seq.) is amended--
       (1) in section 502--
       (A) in subsection (a)(2)(A)(ii), by striking ``section 
     512(b)'' and inserting ``section 522(b)''; and
       (B) in subsection (b)(2), by striking ``section 512(a)'' 
     and inserting ``section 522(a)'';
       (2) in section 521(c)(6) (as redesignated by subsection 
     (a)(2)), by striking ``section 516'' and inserting ``section 
     526''; and
       (3) in section 526 (as redesignated by subsection (a)(2)), 
     by striking ``section 518'' and inserting ``section 528''.

     SEC. 503. APPLICATIONS.

       Section 521(b)(1)(A) (as redesignated by section 502(a)(2)) 
     (20 U.S.C. 1103(b)(1)(A)) is amended by striking ``subsection 
     (b)'' and inserting ``subsection (c)''.

     SEC. 504. COOPERATIVE ARRANGEMENTS.

       Section 524(a) (as redesignated by section 502(a)(2)) (20 
     U.S.C. 1103c(a)) is amended by striking ``section 503'' and 
     inserting ``sections 503 and 513''.

     SEC. 505. AUTHORIZATION OF APPROPRIATIONS.

       Section 528(a) (as redesignated by section 502(a)(2)) (20 
     U.S.C. 1103g(a)) is amended to read as follows:
       ``(a) Authorizations.--
       ``(1) Parts a and c.--There are authorized to be 
     appropriated to carry out parts A and C $175,000,000 for 
     fiscal year 2009 and such sums as may be necessary for each 
     of the five succeeding fiscal years.
       ``(2) Part b.--There are authorized to be appropriated to 
     carry out part B $100,000,000 for fiscal year 2009 and such 
     sums as may be necessary for each of the five succeeding 
     fiscal years.''.
               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

     SEC. 601. FINDINGS; PURPOSES; CONSULTATION; SURVEY.

       Section 601 (20 U.S.C. 1121) is amended--
       (1) in the section heading, by striking ``AND PURPOSES'' 
     and inserting ``; PURPOSES; CONSULTATION; SURVEY'';
       (2) in subsection (a)(3), by striking ``post-Cold War'';
       (3) in subsection (b)(1)(D), by inserting ``, including 
     through linkages with overseas institutions'' before the 
     semicolon; and
       (4) by adding at the end the following:
       ``(c) Consultation.--
       ``(1) In general.--The Secretary shall, prior to requesting 
     applications for funding under this title during each grant 
     cycle, consult with and receive recommendations regarding 
     national need for expertise in foreign languages and world 
     regions from the head officials of a wide range of Federal 
     agencies.
       ``(2) Considering recommendations; providing information.--
     The Secretary--
       ``(A) may take into account the recommendations described 
     in paragraph (1); and
       ``(B) shall--
       ``(i) provide information collected under paragraph (1) 
     when requesting applications for funding under this title; 
     and
       ``(ii) make available to applicants a list of areas 
     identified as areas of national need.
       ``(d) Survey.--The Secretary shall assist grantees in 
     developing a survey to administer to students who have 
     completed programs under this title to determine postgraduate 
     employment, education, or training. All grantees, where 
     applicable, shall administer such survey once every two years 
     and report survey results to the Secretary.''.

     SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA 
                   CENTERS AND PROGRAMS.

       Section 602 (20 U.S.C. 1122) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) In general.--The Secretary is authorized to make 
     grants to institutions of higher education or consortia of 
     such institutions for the purpose of establishing, 
     strengthening, and operating--
       ``(i) comprehensive foreign language and area or 
     international studies centers and programs; and
       ``(ii) a diverse network of undergraduate foreign language 
     and area or international studies centers and programs.'';
       (B) in paragraph (2)--
       (i) by striking ``and'' at the end of subparagraph (G);
       (ii) by striking the period at the end of subparagraph (H) 
     and inserting a semicolon; and
       (iii) by inserting after subparagraph (H) the following new 
     subparagraphs:
       ``(I) supporting instructors of the less commonly taught 
     languages; and
       ``(J) projects that support students in the science, 
     technology, engineering, and mathematics fields to achieve 
     foreign language proficiency.''; and
       (C) in paragraph (4)--
       (i) in subparagraph (C)--

       (I) by striking ``Programs of linkage or outreach'' and 
     inserting ``Partnerships or programs of linkage and 
     outreach''; and
       (II) by inserting ``, including Federal or State 
     scholarship programs for students in related areas'' before 
     the period at the end;

       (ii) in subparagraph (E)--

       (I) by striking ``foreign area'' and inserting ``area 
     studies'';
       (II) by striking ``of linkage and outreach''; and
       (III) by striking ``(C), and (D)'' and inserting ``(D), and 
     (E)'';

       (iii) by redesignating subparagraphs (C) through (E) (as so 
     amended) as subparagraphs (D) through (F), respectively; and
       (iv) by inserting after subparagraph (B) the following:
       ``(C) Programs of linkage or outreach between or among--
       ``(i) postsecondary programs or departments in foreign 
     language, area studies, or other international fields; and
       ``(ii) State educational agencies or local educational 
     agencies.'';
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Graduate''; 
     and
       (B) by striking paragraph (2) and inserting the following:
       ``(2) Eligible students.--A student receiving a stipend 
     described in paragraph (1) shall be engaged--
       ``(A) in an instructional program with stated performance 
     goals for functional foreign language use or in a program 
     developing such performance goals, in combination with area 
     studies, international studies, or the international aspects 
     of a professional studies program; and
       ``(B)(i) in the case of an undergraduate student, in the 
     intermediate or advanced study of a less commonly taught 
     language; or
       ``(ii) in the case of a graduate student, in graduate study 
     in connection with a program described in subparagraph (A), 
     including--
       ``(I) predissertation level study;
       ``(II) preparation for dissertation research;
       ``(III) dissertation research abroad; or
       ``(IV) dissertation writing.''; and
       (3) by striking subsection (d) and inserting the following:
       ``(d) Allowances.--
       ``(1) Graduate level recipients.--A stipend awarded to a 
     graduate level recipient may include allowances for 
     dependents and for travel for research and study in the 
     United States and abroad.
       ``(2) Undergraduate level recipients.--A stipend awarded to 
     an undergraduate level recipient may include an allowance for 
     educational programs in the United States or educational 
     programs abroad that--
       ``(A) are closely linked to the overall goals of the 
     recipient's course of study; and
       ``(B) have the purpose of promoting foreign language 
     fluency and knowledge of foreign cultures.
       ``(e) Application.--Each institution of higher education or 
     consortium of such institutions desiring a grant under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information and 
     assurances as the Secretary may require. Each such 
     application shall include--
       ``(1) an explanation of how the activities funded by the 
     grant will reflect diverse perspectives and a wide range of 
     views and generate debate on world regions and international 
     affairs; and
       ``(2) a description of how the applicant will encourage 
     government service in areas of national need, as identified 
     by the Secretary, as well as in areas of need in the 
     education, business, and nonprofit sectors.''.

     SEC. 603. LANGUAGE RESOURCE CENTERS.

       Section 603(c) (20 U.S.C. 1123(c)) is amended by inserting 
     ``reflect the purposes of this part and'' after ``shall''.

     SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN 
                   LANGUAGE PROGRAMS.

       Section 604 (20 U.S.C. 1124) is amended--
       (1) in subsection (a)(1), by striking ``combinations'' each 
     place it appears and inserting ``consortia'';
       (2) in subsection (a)(2)--
       (A) in subparagraph (B), by amending clause (ii) to read as 
     follows:
       ``(ii) pre-service teacher training and in-service teacher 
     professional development;'';
       (B) by redesignating subparagraphs (I) through (M) as 
     subparagraphs (J) through (N), respectively; and
       (C) by inserting after subparagraph (H) the following new 
     subparagraph:
       ``(I) the provision of grants for educational programs 
     abroad that--

[[Page 17162]]

       ``(i) are closely linked to the program's overall goals; 
     and
       ``(ii) have the purpose of promoting foreign language 
     fluency and knowledge of world regions;'';
       (3) in subsection (a)(4)(B), by inserting ``that 
     demonstrates a need for a waiver or reduction'' before the 
     period at the end;
       (4) in subsection (a)(6), by inserting ``reflect the 
     purposes of this part and'' after ``shall'';
       (5) in subsection (a)(7)--
       (A) in subparagraph (C), by striking ``and'' after the 
     semicolon;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting a semicolon; and
       (C) by adding at the end the following:
       ``(E) a description of how the applicant will provide 
     information to students regarding federally funded 
     scholarship programs in related areas;
       ``(F) an explanation of how the activities funded by the 
     grant will reflect diverse perspectives and a wide range of 
     views and generate debate on world regions and international 
     affairs, where applicable; and
       ``(G) a description of how the applicant will encourage 
     service in areas of national need, as identified by the 
     Secretary.''; and
       (6) in subsection (c)--
       (A) by striking ``(c) Funding Support.--The Secretary'' and 
     inserting the following:
       ``(c) Funding Support.--
       ``(1) In general.--The Secretary'';
       (B) by striking ``10'' and inserting ``20''; and
       (C) by adding at the end the following:
       ``(2) Grantees.--Of the total amount of grant funds awarded 
     to a grantee under this section, the grantee may use not more 
     than ten percent of such funds for the activity described in 
     subsection (a)(2)(I).''.

     SEC. 605. RESEARCH; STUDIES.

       Section 605(a) (20 U.S.C. 1125(a)) is amended--
       (1) in paragraph (8), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period and inserting 
     a semicolon; and
       (3) by adding at the end the following:
       ``(10) evaluation of the extent to which programs assisted 
     under this title reflect diverse perspectives and a wide 
     range of views and generate debate on world regions and 
     international affairs, as described in the grantee's 
     application;
       ``(11) the systematic collection, analysis, and 
     dissemination of data that contribute to achieving the 
     purposes of this part; and
       ``(12) support for programs or activities to make data 
     collected, analyzed, or disseminated under this section 
     publicly available and easy to understand.''.

     SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR 
                   FOREIGN INFORMATION ACCESS.

       Section 606 (20 U.S.C. 1126) is amended--
       (1) in subsection (a)--
       (A) by striking ``or consortia of such institutions or 
     libraries'' and inserting ``or partnerships between such 
     institutions and other such institutions, libraries, or 
     nonprofit educational organizations'';
       (B) by striking ``new electronic technologies'' and 
     inserting ``electronic technologies'';
       (C) by inserting ``from foreign sources'' after 
     ``disseminate information'';
       (D) by striking ``(a) Authority.-- The Secretary'' and 
     inserting the following:
       ``(a) Authority.--
       ``(1) In general.--The Secretary''; and
       (E) by adding at the end the following:
       ``(2) Grant recipients.--The Secretary may award grants 
     under this section to carry out the activities authorized 
     under this section to the following:
       ``(A) An institution of higher education.
       ``(B) A public or nonprofit private library.
       ``(C) A partnership of an institution of higher education 
     and one or more of the following:
       ``(i) Another institution of higher education.
       ``(ii) A library.
       ``(iii) A nonprofit educational organization.'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``to facilitate access 
     to'' and inserting ``to acquire, facilitate access to,'';
       (B) in paragraph (3), by inserting ``or standards for'' 
     after ``means of'';
       (C) in paragraph (6), by striking ``and'' after the 
     semicolon;
       (D) in paragraph (7), by striking the period and inserting 
     a semicolon; and
       (E) by adding at the end the following:
       ``(8) to establish linkages to facilitate carrying out the 
     activities described in this subsection between--
       ``(A) the institutions of higher education, libraries, and 
     partnerships receiving grants under this section; and
       ``(B) institutions of higher education, nonprofit 
     educational organizations, and libraries overseas; and
       ``(9) to carry out other activities that the Secretary 
     determines are consistent with the purpose of the grants 
     awarded under this section.''; and
       (3) in subsection (c), by striking ``institution or 
     consortium'' and inserting ``institution of higher education, 
     library, or partnership''.

     SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.

       Section 607 (20 U.S.C. 1127) is amended--
       (1) in subsection (a), by striking ``evaluates the 
     applications for comprehensive and undergraduate language and 
     area centers and programs.'' and inserting ``evaluates--
       ``(1) the applications for comprehensive foreign language 
     and area or international studies centers and programs; and
       ``(2) the applications for undergraduate foreign language 
     and area or international studies centers and programs.''; 
     and
       (2) in subsection (b), by adding at the end the following: 
     ``In keeping with the purposes of this part, the Secretary 
     shall take into account the degree to which activities of 
     centers, programs, and fellowships at institutions of higher 
     education address national needs, and generate information 
     for and disseminate information to the public. The Secretary 
     shall also consider an applicant's record of placing students 
     into postgraduate employment, education, or training in areas 
     of national need and an applicant's stated efforts to 
     increase the number of such students that go into such 
     placements.''.

     SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

       Section 609 (20 U.S.C. 1128a) is amended by adding at the 
     end the following:
       ``(e) Application.--Each center desiring to receive a grant 
     or contract under this section shall submit an application to 
     the Secretary at such time, in such manner, and accompanied 
     by such information and assurances as the Secretary may 
     require.''.

     SEC. 609. AUTHORIZATION OF APPROPRIATIONS FOR INTERNATIONAL 
                   AND FOREIGN LANGUAGE STUDIES.

       Section 610 (20 U.S.C. 1128b) is amended--
       (1) by striking ``$80,000,000'' and inserting ``such sums 
     as may be necessary'';
       (2) by striking ``1999'' and inserting ``2009''; and
       (3) by striking ``4'' and inserting ``five''.

     SEC. 610. CONFORMING AMENDMENTS.

       (a) Sections 603(a), 604(a)(5), and 612 (20 U.S.C. 1123(a), 
     1124(a)(5), 1130-1) are each amended by striking 
     ``combinations'' each place it appears and inserting 
     ``consortia''.
       (b) Section 612 (20 U.S.C. 1130-1) is further amended by 
     striking ``combination'' each place it appears and inserting 
     ``consortium''.

     SEC. 611. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.

       (a) Centers for International Business Education.--Section 
     612 (20 U.S.C. 1130-1) is amended--
       (1) in subsection (a)--
       (A) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (B) by inserting before paragraph (2) (as redesignated by 
     subparagraph (A)) the following:
       ``(1) Purpose.--The purpose of this section is to 
     coordinate the programs of the Federal Government in the 
     areas of research, education, and training in international 
     business and trade competitiveness.'';
       (2) in subsection (c)(2)----
       (A) in subparagraph (E), by inserting ``(including those 
     that are eligible to receive assistance under part A or B of 
     title III or under title V)'' after ``other institutions of 
     higher education'';
       (B) by striking ``and'' at the end of subparagraph (E);
       (C) by redesignating subparagraph (F) as subparagraph (G); 
     and
       (D) by inserting the following new subparagraph after 
     subparagraph (E):
       ``(F) programs encouraging the advancement and 
     understanding of technology-related disciplines, including 
     manufacturing software systems and technology management; 
     and''; and
       (3) in subsection (f)(3), by inserting ``, and that diverse 
     perspectives will be made available to students in programs 
     under this section'' before the semicolon.
       (b) Education and Training Programs.--Section 613(c) (20 
     U.S.C. 1130a(c)) is amended by adding at the end the 
     following: ``Each such application shall include an assurance 
     that, where applicable, the activities funded by the grant 
     will reflect diverse perspectives and a wide range of views 
     on world regions and international affairs.''.
       (c) Authorization of Appropriations.--Section 614 (20 
     U.S.C. 1130b) is amended--
       (1) in subsection (a)--
       (A) by striking ``$11,000,000'' and inserting ``such sums 
     as may be necessary'';
       (B) by striking ``1999'' and inserting ``2009''; and
       (C) by striking ``4'' and inserting ``five''; and
       (2) in subsection (b)--
       (A) by striking ``$7,000,000'' and inserting ``such sums as 
     may be necessary'';
       (B) by striking ``1999'' and inserting ``2009''; and
       (C) by striking ``4'' and inserting ``five''.

     SEC. 612. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT 
                   PROGRAM.

       Section 621 (20 U.S.C. 1131) is amended--
       (1) in subsection (a), by striking the second sentence and 
     inserting the following: ``The Institute shall conduct a 
     program to enhance the international competitiveness of the 
     United States by increasing the participation of 
     underrepresented populations in the international service, 
     including private international voluntary organizations and 
     the foreign service of the United States.'';
       (2) in subsection (b)(1)--
       (A) by striking subparagraph (B);
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (A) the following:
       ``(B) A tribally controlled college or university or Alaska 
     Native or Native Hawaiian-serving institution eligible for 
     assistance under part A or B of title III, or an institution 
     eligible for assistance under title V.
       ``(C) An institution of higher education that serves 
     substantial numbers of underrepresented minority students.''; 
     and
       (3) in subsection (c)--

[[Page 17163]]

       (A) by striking ``(c) Application.--Each'' and inserting 
     the following:
       ``(c) Application.--
       ``(1) In general.--Each''; and
       (B) by adding at the end the following:
       ``(2) Content of application.--Each application submitted 
     under paragraph (1) shall include a description of how the 
     activities funded by the grant will reflect diverse 
     perspectives and a wide range of views and generate debate on 
     world regions and international affairs, where applicable.''.

     SEC. 613. INSTITUTIONAL DEVELOPMENT.

       Section 622 (20 U.S.C. 1131-1) is amended--
       (1) in subsection (a)--
       (A) by striking ``Tribally Controlled Colleges or 
     Universities'' and inserting ``tribally controlled colleges 
     or universities''; and
       (B) by striking ``international affairs programs.'' and 
     inserting ``international affairs, international business, 
     and foreign language study programs, including the teaching 
     of foreign languages, at such colleges, universities, and 
     institutions, respectively, which may include collaboration 
     with institutions of higher education that receive funding 
     under this title''; and
       (2) in subsection (c)--
       (A) by striking paragraphs (1) and (3);
       (B) by redesignating paragraphs (2) and (4) as paragraphs 
     (1) and (2), respectively; and
       (C) in paragraph (1) (as redesignated by subparagraph (B)), 
     by inserting ``and'' after the semicolon.

     SEC. 614. STUDY ABROAD PROGRAM.

       Section 623(a) (20 U.S.C. 1131a(a)) is amended--
       (1) by striking ``as defined in section 322 of this Act''; 
     and
       (2) by striking ``tribally controlled Indian community 
     colleges as defined in the Tribally Controlled Community 
     College Assistance Act of 1978'' and inserting ``tribally 
     controlled colleges or universities, Alaska Native-serving, 
     Native Hawaiian-serving, and Hispanic-serving institutions''.

     SEC. 615. ADVANCED DEGREE IN INTERNATIONAL RELATIONS.

       Section 624 (20 U.S.C. 1131b) is amended--
       (1) by striking ``MASTERS'' in the heading of such section 
     and inserting ``ADVANCED'';
       (2) by striking ``a masters degree in international 
     relations'' and inserting ``an advanced degree in 
     international relations, international affairs, international 
     economics, or other academic areas related to the Institute 
     fellow's career objectives''; and
       (3) by striking ``The masters degree program designed by 
     the consortia'' and inserting ``The advanced degree study 
     program shall be designed by the consortia, consistent with 
     the fellow's career objectives, and''.

     SEC. 616. INTERNSHIPS.

       Section 625 (20 U.S.C. 1131c) is amended--
       (1) in subsection (a)--
       (A) by striking ``as defined in section 322 of this Act'';
       (B) by striking ``tribally controlled Indian community 
     colleges as defined in the Tribally Controlled Community 
     College Assistance Act of 1978'' and inserting ``tribally 
     controlled colleges or universities, Alaska Native-serving, 
     Native Hawaiian-serving, and Hispanic-serving institutions'';
       (C) by striking ``an international'' and inserting 
     ``international,''; and
       (D) by striking ``the United States Information Agency'' 
     and inserting ``the Department of State'';
       (2) in subsection (b)--
       (A) by inserting ``and'' after the semicolon at the end of 
     paragraph (2);
       (B) by striking ``; and'' at the end of paragraph (3) and 
     inserting a period; and
       (C) by striking paragraph (4); and
       (3) in subsection (c)(1)--
       (A) in subparagraph (E), by inserting ``and'' after the 
     semicolon;
       (B) in subparagraph (F), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (G).

     SEC. 617. FINANCIAL ASSISTANCE.

       Part C of title VI (20 U.S.C. 1131 et seq.) is further 
     amended--
       (1) by redesignating sections 626, 627, and 628 as sections 
     627, 628, and 629, respectively; and
       (2) by inserting after section 625 the following:

     ``SEC. 626. FINANCIAL ASSISTANCE.

       ``(a) Authority.--The Institute may provide financial 
     assistance, in the form of summer stipends described in 
     subsection (b) and Ralph Bunche scholarship assistance 
     described in subsection (c), to low-income students to 
     facilitate the participation of the students in the 
     Institute's programs under this part.
       ``(b) Summer Stipends.--
       ``(1) Requirements.--A student receiving a summer stipend 
     under this section shall use such stipend to defray the 
     student's cost of participation in a summer institute program 
     funded under this part, including the costs of travel, 
     living, and educational expenses necessary for the student's 
     participation in such program.
       ``(2) Amount.--A summer stipend awarded to a student under 
     this section shall not exceed $3,000 per summer.
       ``(c) Ralph Bunche Scholarship.--
       ``(1) Requirements.--A student receiving a Ralph Bunche 
     scholarship under this section--
       ``(A) shall be a full-time student at an institution of 
     higher education who is accepted into a program funded under 
     this part; and
       ``(B) shall use such scholarship to pay costs related to 
     the cost of attendance, as defined in section 472, at the 
     institution of higher education in which the student is 
     enrolled.
       ``(2) Amount and duration.--A Ralph Bunche scholarship 
     awarded to a student under this section shall not exceed 
     $5,000 per academic year.''.

     SEC. 618. REPORT.

       Section 627 (as redesignated by section 617(1)) (20 U.S.C. 
     1131d) is amended by striking ``annually prepare a report'' 
     and inserting ``prepare a report once every two years''.

     SEC. 619. GIFTS AND DONATIONS.

       Section 628 (as redesignated by section 617(1)) (20 U.S.C. 
     1131e) is amended by striking ``annual report described in 
     section 626'' and inserting ``report described in section 
     627''.

     SEC. 620. AUTHORIZATION OF APPROPRIATIONS FOR THE INSTITUTE 
                   FOR INTERNATIONAL PUBLIC POLICY.

       Section 629 (as redesignated by section 617(1)) (20 U.S.C. 
     1131f) is amended--
       (1) by striking ``$10,000,000'' and inserting ``such sums 
     as may be necessary'';
       (2) by striking ``1999'' and inserting ``2009''; and
       (3) by striking ``4 succeeding'' and inserting ``five 
     succeeding''.

     SEC. 621. DEFINITIONS.

       Section 631 (20 U.S.C. 1132) is amended--
       (1) by striking paragraph (7);
       (2) by redesignating paragraphs (2), (3), (4), (5), (6), 
     (8), and (9), as paragraphs (7), (4), (8), (2), (10), (6), 
     and (3), respectively;
       (3) in paragraph (2), as redesignated by paragraph (2), by 
     striking ``comprehensive language and area center'' and 
     inserting ``comprehensive foreign language and area or 
     international studies center'';
       (4) in paragraph (3), as redesignated by paragraph (2), by 
     striking the period at the end and inserting a semicolon;
       (5) by inserting after paragraph (4), as redesignated by 
     paragraph (2), the following:
       ``(5) the term `historically Black college and university' 
     has the meaning given the term `part B institution' in 
     section 322;'';
       (6) in paragraph (6), as redesignated by paragraph (2), by 
     striking ``and'' after the semicolon;
       (7) by inserting after paragraph (8), as redesignated by 
     paragraph (2), the following:
       ``(9) the term `tribally controlled college or university' 
     has the meaning given the term in section 2 of the Tribally 
     Controlled Colleges and Universities Assistance Act of 1978 
     (25 U.S.C. 1801); and''; and
       (8) in paragraph (10), as redesignated by paragraph (2)--
       (A) by striking ``undergraduate language and area center'' 
     and inserting ``undergraduate foreign language and area or 
     international studies center''; and
       (B) by striking the semicolon and inserting a period.

     SEC. 622. NEW PROVISIONS.

       Part D of title VI (20 U.S.C. 1132) is amended by adding at 
     the end the following:

     ``SEC. 632. SPECIAL RULE.

       ``The Secretary may waive or reduce the non-Federal share 
     required under this title for institutions that--
       ``(1) are eligible to receive assistance under part A or B 
     of title III or under title V; and
       ``(2) have submitted a grant application under this section 
     that demonstrates a need for a waiver or reduction, as 
     determined by the Secretary.''.

     ``SEC. 633. RULE OF CONSTRUCTION.

       ``Nothing in this title shall be construed to authorize the 
     Secretary to mandate, direct, or control an institution of 
     higher education's specific instructional content, 
     curriculum, or program of instruction.

     ``SEC. 634. ASSESSMENT.

       ``The Secretary is authorized to assess and ensure 
     compliance with all the conditions and terms of grants 
     provided under this title.

     ``SEC. 635. EVALUATION, OUTREACH, AND INFORMATION.

       ``The Secretary may use not more than one percent of the 
     funds made available under this title to carry out program 
     evaluation, national outreach, and information dissemination 
     activities relating to the programs authorized under this 
     title.

     ``SEC. 636. REPORT.

       ``The Secretary shall, in consultation and collaboration 
     with the Secretary of State, the Secretary of Defense, and 
     the heads of other relevant Federal agencies, submit a report 
     once every two years that identifies areas of national need 
     in foreign language, area, and international studies as such 
     studies relate to government, education, business, and 
     nonprofit needs, and a plan to address those needs. The 
     report shall be provided to the authorizing committees and 
     made available to the public.

     ``SEC. 637. SCIENCE AND TECHNOLOGY ADVANCED FOREIGN LANGUAGE 
                   EDUCATION GRANT PROGRAM.

       ``(a) Purpose.--It is the purpose of this section to 
     support programs in institutions of higher education that--
       ``(1) encourage students to develop--
       ``(A) an understanding of science and technology; and
       ``(B) foreign language proficiency;
       ``(2) foster future international scientific collaboration;
       ``(3) provide for professional development opportunities 
     for elementary school and secondary school teachers of 
     critical foreign languages to increase the number of highly 
     qualified teachers in critical foreign languages; and
       ``(4) increase the number of United States students who 
     achieve the highest level of proficiency in foreign languages 
     critical to the security and competitiveness of the Nation.

[[Page 17164]]

       ``(b) Development.--The Secretary shall develop a program 
     for the awarding of grants to institutions of higher 
     education that develop innovative programs for the teaching 
     of foreign languages, which may include the preparation of 
     teachers to teach foreign languages.
       ``(c) Regulations and Requirements.--The Secretary shall 
     promulgate regulations for the awarding of grants under 
     subsection (b). Such regulations may require institutions of 
     higher education to use grant funds for, among other things--
       ``(1) the development of an on-campus cultural awareness 
     program by which students attend classes taught in a foreign 
     language and study the science and technology developments 
     and practices in a non-English speaking country;
       ``(2) immersion programs where students take science or 
     technology related course work in a non-English speaking 
     country;
       ``(3) other programs, such as summer workshops, that 
     emphasize the intense study of a foreign language and science 
     technology;
       ``(4) if applicable, recruiting highly qualified teachers 
     in critical foreign languages, and providing professional 
     development activities for such teachers at the elementary 
     school and secondary school levels; and
       ``(5) providing innovative opportunities for students that 
     will allow for critical language learning, such as immersion 
     environments, intensive study opportunities, internships, and 
     distance learning.
       ``(d) Grant Distribution.--In distributing grants to 
     institutions of higher education under this section, the 
     Secretary shall give priority to--
       ``(1) institutions that have programs focusing on curricula 
     that combine the study of foreign languages and the study of 
     science and technology and produce graduates who have both 
     skills; and
       ``(2) institutions teaching critical foreign languages.
       ``(e) Report on Best Practices.--Not later than one year 
     after the date of enactment of this section, the Secretary 
     shall--
       ``(1) conduct a study to identify the best practices to 
     strengthen the role of institutions of higher education that 
     receive funding under title III or title V in increasing the 
     critical foreign language education efforts in the United 
     States; and
       ``(2) submit a report on the results of such study to the 
     authorizing committees.
       ``(f) Appropriations Authorized.--There are authorized to 
     be appropriated to carry out this section, such sums as may 
     be necessary for fiscal year 2009 and for each subsequent 
     fiscal year.

     ``SEC. 638. REPORTING BY INSTITUTIONS.

       ``(a) Applicability.--The data requirement in subsection 
     (b) shall apply to an institution of higher education that 
     receives funds for a center or program under this title if--
       ``(1) the amount of the contribution (including cash and 
     the fair market value of any property) received from any 
     foreign government or from a foreign private sector 
     corporation or foundation during any fiscal year exceeds 
     $250,000 in the aggregate; and
       ``(2) the aggregate contribution, or a significant part of 
     the aggregate contribution, is to be used by a center or 
     program receiving funds under this title.
       ``(b) Data Required.--The Secretary shall require an 
     institution of higher education referred to in subsection (a) 
     to report information listed in subsection (a) to the 
     Secretary consistent with the requirements of section 117.''.
       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

     SEC. 701. PURPOSE.

       Section 700(1)(B)(i) (20 U.S.C. 1133(1)(B)(i)) is amended 
     by inserting ``, including those areas critical to United 
     States national and homeland security needs, such as science, 
     technology, engineering, and mathematics'' before the 
     semicolon.

     SEC. 702. JACOB K. JAVITS FELLOWSHIP PROGRAM.

       (a) Interruptions of Study.--Section 701(c) (20 U.S.C. 
     1134(c)) is amended by adding at the end the following new 
     sentence: ``In the case of other exceptional circumstances, 
     such as active duty military service or personal or family 
     member illness, the institution of higher education may also 
     permit the fellowship recipient to interrupt periods of study 
     for the duration of the tour of duty (in the case of military 
     service) or for not more than 12 months (in any other case), 
     but without payment of the stipend.''.
       (b) Allocation of Fellowships.--Section 702(a)(1) (20 
     U.S.C. 1134a(a)(1)) is amended to read as follows:
       ``(1) Appointment.--
       ``(A) In general.--The Secretary shall appoint a Jacob K. 
     Javits Fellows Program Fellowship Board (referred to in this 
     subpart as the `Board') consisting of 9 individuals 
     representative of both public and private institutions of 
     higher education who are especially qualified to serve on the 
     Board.
       ``(B) Qualifications.--In making appointments under 
     subparagraph (A), the Secretary shall--
       ``(i) give due consideration to the appointment of 
     individuals who are highly respected in the academic 
     community;
       ``(ii) appoint members who represent the various geographic 
     regions of the United States;
       ``(iii) ensure that individuals appointed to the Board are 
     broadly representative of a range of disciplines in graduate 
     education in arts, humanities, and social sciences; and
       ``(iv) ensure that such individuals include representatives 
     from institutions that are eligible for one or more of the 
     grants under title III or V.''.
       (c) Stipends.--
       (1) Section 703 (20 U.S.C. 1134b) is amended--
       (A) in subsection (a)--
       (i) by striking ``1999-2000'' and inserting ``2009-2010''; 
     and
       (ii) by striking ``Foundation graduate fellowships'' and 
     inserting ``Foundation Graduate Research Fellowship Program 
     for such academic year''; and
       (B) in subsection (b), by striking paragraph (1)(A) and 
     inserting the following:
       ``(1) In general.--(A) The Secretary shall (in addition to 
     stipends paid to individuals under this subpart) pay to the 
     institution of higher education, for each individual awarded 
     a fellowship under this subpart at such institution, an 
     institutional allowance. Except as provided in subparagraph 
     (B), such allowance shall be, for academic year 2009-2010 and 
     succeeding academic years, the same amount as the 
     institutional payment made for academic year 2008-2009, 
     adjusted for academic year 2009-2010 and annually thereafter 
     in accordance with inflation as determined by the Department 
     of Labor's Consumer Price Index for the previous calendar 
     year.''.
       (d) Authorization of Appropriations.--Section 705 (20 
     U.S.C. 1134d) is amended by striking ``fiscal year 1999'' and 
     all that follows through the period at the end and inserting 
     ``fiscal year 2009 and each of the five succeeding fiscal 
     years to carry out this subpart.''.

     SEC. 703. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

       (a) Institutional Eligibility.--Section 712 (20 U.S.C. 
     1135a) is amended by striking subsection (b) and inserting 
     the following:
       ``(b) Designation of Areas of National Need.--After 
     consultation with appropriate Federal and nonprofit agencies 
     and organizations, including the National Science Foundation, 
     the Department of Defense, the Department of Homeland 
     Security, the National Academy of Sciences, and the Bureau of 
     Labor Statistics, the Secretary shall designate areas of 
     national need. In making such designations, the Secretary 
     shall take into consideration--
       ``(1) the extent to which the interest in the area is 
     compelling;
       ``(2) the extent to which other Federal programs support 
     postbaccalaureate study in the area concerned;
       ``(3) an assessment of how the program may achieve the most 
     significant impact with available resources; and
       ``(4) an assessment of current (as of the time of the 
     designation) and future professional workforce needs of the 
     United States.''.
       (b) Awards to Graduate Students.--Section 714(b) (20 U.S.C. 
     1135c(b)) is amended--
       (1) by striking ``1999-2000'' and inserting ``2009-2010''; 
     and
       (2) by striking ``Foundation graduate fellowships'' and 
     inserting ``Foundation Graduate Research Fellowship Program 
     for such academic year''.
       (c) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 
     1135d(a)(1)) is amended--
       (1) by striking ``1999-2000'' and inserting ``2009-2010''; 
     and
       (2) by striking ``1998-1999'' and inserting ``2008-2009''.
       (d) Authorization of Appropriations.--Section 716 (20 
     U.S.C. 1135e) is amended by striking ``fiscal year 1999'' and 
     all that follows through the period at the end and inserting 
     ``fiscal year 2009 and each of the five succeeding fiscal 
     years to carry out this subpart.''.
       (e) Technical Amendments.--Subpart 2 of part A of title VII 
     (as amended by this section) (20 U.S.C. 113 et seq.) is 
     further amended--
       (1) in section 711(a)(1) (20 U.S.C. 1135(a)(1)), by 
     inserting ``, including a master's or doctoral degree,'' 
     after ``leading to a graduate degree'';
       (2) in section 712(a) (20 U.S.C. 1135a(a)), by inserting 
     ``, including a master's or doctoral degree,'' after 
     ``leading to a graduate degree'';
       (3) in section 713(b)(5)(C) (20 U.S.C. 1135b(b)(5)(C)), by 
     inserting ``at the institution'' before the semicolon; and
       (4) in section 714(c) (20 U.S.C. 1135c(c))--
       (A) by striking ``716(a)'' and inserting ``715(a)''; and
       (B) by striking ``714(b)(2)'' and inserting ``713(b)(2)''.

     SEC. 704. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY 
                   PROGRAM.

       (a) Program Authority.--
       (1) Section 721(a) (20 U.S.C. 1136(a)) is amended--
       (A) by inserting ``secondary school and'' after 
     ``disadvantaged''; and
       (B) by inserting ``and admission to law practice'' before 
     the period at the end.
       (b) Eligibility.--Section 721(b) (20 U.S.C. 1136(b)) is 
     amended in the matter preceding paragraph (1), by inserting 
     ``secondary school student or'' before ``college student''.
       (c)  Contract and Grant Purposes.--Section 721(c) (20 
     U.S.C. 1136(c)) is amended--
       (1) in paragraph (1), by inserting ``secondary school and'' 
     before ``college students'';
       (2) by striking paragraph (2) and inserting the following:
       ``(2) to prepare such students for successful completion of 
     a baccalaureate degree and for study at accredited law 
     schools, and to assist them with the development of 
     analytical skills, writing skills, and study methods to 
     enhance the students' success in, and promote the students' 
     admission to and completion of, law school;'';
       (3) in paragraph (4), by striking ``and'' after the 
     semicolon; and

[[Page 17165]]

       (4) by striking paragraph (5) and inserting the following:
       ``(5) to motivate and prepare such students--
       ``(A) with respect to law school studies and practice in 
     low-income communities; and
       ``(B) to provide legal services to low-income individuals 
     and families; and
       ``(6) to award Thurgood Marshall Fellowships to eligible 
     law school students--
       ``(A) who participated in summer institutes under 
     subsection (d)(6) and who are enrolled in an accredited law 
     school; or
       ``(B) who have successfully completed a comparable summer 
     institute program that is certified by the Council on Legal 
     Education Opportunity.''.
       (d) Services Provided.--Section 721(d) (20 U.S.C. 1136(d)) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     ``pre-college programs, undergraduate'' before ``pre-law'';
       (2) in paragraph (1)--
       (A) in subparagraph (B), by inserting ``law school'' before 
     ``graduation''; and
       (B) by striking subparagraph (D) and inserting the 
     following:
       ``(D) pre-college and undergraduate preparatory courses in 
     analytical and writing skills, study methods, and course 
     selection;'';
       (3) by redesignating paragraphs (2) through (6) as 
     paragraphs (3) through (7), respectively;
       (4) by inserting after paragraph (1) the following:
       ``(2) summer academic programs for secondary school 
     students who have expressed interest in a career in the 
     law;''; and
       (5) in paragraph (7) (as redesignated by paragraph (3)), by 
     inserting ``and Associates'' after ``Thurgood Marshall 
     Fellows''.
       (e) Duration.--Section 721(e)(1) (20 U.S.C. 1136(e)(1)) is 
     amended by inserting ``, including before and during 
     undergraduate study'' before the semicolon.
       (f) Subcontracts and Subgrants.--Section 721(f) (20 U.S.C. 
     1136(f)) is amended--
       (1) by inserting ``national and State bar associations,'' 
     after ``agencies and organizations,''; and
       (2) by striking ``and organizations.'' and inserting 
     ``organizations, and associations.''.
       (g) Stipends.--Section 721(g) (20 U.S.C. 1136(g)) is 
     amended to read as follows:
       ``(g) Fellowships and Stipends.--The Secretary shall 
     annually establish the maximum fellowship to be awarded, and 
     the maximum stipend to be paid (including allowances for 
     participant travel and for the travel of the dependents of 
     the participant), to Thurgood Marshall Fellows or Associates 
     for the period of participation in summer institutes, midyear 
     seminars, and bar preparation seminars. A Thurgood Marshall 
     Fellow or Associate may be eligible for such a fellowship or 
     stipend only if the Fellow or Associate maintains 
     satisfactory academic progress toward the Juris Doctor or 
     Bachelor of Laws degree, as determined by the respective 
     institutions (except with respect to a law school graduate 
     enrolled in a bar preparation course).''.
       (h) Authorization of Appropriations.--Section 721(h) (20 
     U.S.C. 1136(h)) is amended by striking ``fiscal year 1999'' 
     and all that follows through the period at the end and 
     inserting ``fiscal year 2009 and each of the five succeeding 
     fiscal years.''.
       (i) Repeal of Continuation Awards.--Subsection (e) of 
     section 731 (20 U.S.C. 1137(e)) is repealed.

     SEC. 705. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) addressing the under-representation of women and 
     minorities in the higher education professoriate will require 
     consistent inter-institutional cooperation, data gathering, 
     analysis, and self-evaluation; and
       (2) institutions eligible for funds under part A of title 
     VII of the Higher Education Act of 1965 (20 U.S.C. 1134 et 
     seq.) should be encouraged to consider the feasibility and 
     potential design of an inter-institution monitoring 
     organization addressing under-representation by race, 
     ethnicity, and gender in postsecondary faculty and 
     administrators.

     SEC. 706. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK 
                   COLLEGES AND UNIVERSITIES AND PREDOMINANTLY 
                   BLACK INSTITUTIONS.

       (a) Technical Amendments.--Part A of title VII (as amended 
     by this title) (20 U.S.C. 1134 et seq.) is further amended--
       (1) by redesignating subpart 4 as subpart 5;
       (2) in the heading of section 731, by striking ``SUBPARTS 
     1, 2, AND 3'' and inserting ``SUBPARTS 1 THROUGH 4''; and
       (3) in section 731--
       (A) in subsections (a) and (b), by striking ``subparts 1, 
     2, and 3'' each place the term appears and inserting 
     ``subparts 1 through 4''; and
       (B) in subsection (d), by striking ``subpart 1, 2, or 3'' 
     and inserting ``subpart 1, 2, 3, or 4''.
       (b) Master's Degree Programs.--Part A of title VII (as 
     amended by this title) (20 U.S.C. 1134 et seq.) is further 
     amended by inserting after subpart 3 the following:

``Subpart 4--Masters Degree Programs at Historically Black Colleges and 
           Universities and Predominantly Black Institutions

     ``SEC. 723. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK 
                   COLLEGES AND UNIVERSITIES.

       ``(a) Grant Program Authorized.--
       ``(1) In general.--Subject to the availability of funds 
     appropriated to carry out this section, the Secretary shall 
     award program grants to each of the institutions listed in 
     subsection (b)(1) that is determined by the Secretary to be 
     making a substantial contribution to graduate education 
     opportunities at the masters level in mathematics, 
     engineering, the physical or natural sciences, computer 
     science, information technology, nursing, allied health, or 
     other scientific disciplines for Black Americans.
       ``(2) Assurance of non-federal matching funds.--No grant in 
     excess of $1,000,000 may be made under this section unless 
     the institution provides assurances that 50 percent of the 
     cost of the purposes for which the grant is made will be paid 
     from non-Federal sources, except that no institution shall be 
     required to match any portion of the first $1,000,000 of the 
     institution's award from the Secretary. After funds are made 
     available to each eligible institution under the funding 
     rules described in subsection (f), the Secretary shall 
     distribute, on a pro rata basis, any amounts which were not 
     so made available (by reason of the failure of an institution 
     to comply with the matching requirements of this paragraph) 
     among the institutions that have complied with such matching 
     requirement.
       ``(3) Minimum award.--Subject to subsections (f) and (g), 
     the amount awarded to each eligible institution listed in 
     subsection (b)(1) for a fiscal year shall be not less than 
     $500,000.
       ``(4) Duration of grants.--A grant awarded under this 
     section shall be for a period of not more than six years, but 
     may be periodically renewed for a period to be determined by 
     the Secretary.
       ``(b) Institutional Eligibility.--
       ``(1) In general.--Institutions eligible for grants under 
     subsection (a) are the following:
       ``(A) Albany State University.
       ``(B) Alcorn State University.
       ``(C) Claflin University.
       ``(D) Coppin State University.
       ``(E) Elizabeth City State University.
       ``(F) Fayetteville State University.
       ``(G) Fisk University.
       ``(H) Fort Valley State University.
       ``(I) Grambling State University.
       ``(J) Kentucky State University.
       ``(K) Mississippi Valley State University.
       ``(L) Savannah State University.
       ``(M) South Carolina State University.
       ``(N) University of Arkansas, Pine Bluff.
       ``(O) Virginia State University.
       ``(P) West Virginia State University.
       ``(Q) Wilberforce University.
       ``(R) Winston-Salem State University.
       ``(2) Qualified masters degree program.--
       ``(A) In general.--For the purposes of this section, the 
     term `qualified masters degree program' means a masters 
     degree program that provides a program of instruction in 
     mathematics, engineering, the physical or natural sciences, 
     computer science, information technology, nursing, allied 
     health, or other scientific disciplines in which African 
     Americans are underrepresented and has students enrolled in 
     such program of instruction at the time of application for a 
     grant under this section.
       ``(B) Enrollment exception.--Notwithstanding the enrollment 
     requirement contained in subparagraph (A), an institution may 
     use an amount equal to not more than 10 percent of the 
     institution's grant under this section for the development of 
     a new qualified masters degree program.
       ``(3) Institutional choice.--The president or chancellor of 
     the institution may decide which graduate school or qualified 
     masters degree program will receive funds under the grant in 
     any one fiscal year, if the allocation of funds among the 
     schools or programs is delineated in the application for 
     funds submitted to the Secretary under this section.
       ``(4) One grant per institution.--The Secretary shall not 
     award more than one grant under this section in any fiscal 
     year to any institution of higher education.
       ``(c) Application.--An eligible institution listed in 
     subsection (b)(1) desiring a grant under this section shall 
     submit an application at such time, in such manner, and 
     containing such information as the Secretary may require. The 
     application shall--
       ``(1) demonstrate how the grant funds under this section 
     will be used to improve graduate educational opportunities 
     for Black and low-income students, and lead to greater 
     financial independence; and
       ``(2) provide, in the case of applications for grants in 
     excess of $1,000,000, the assurances required under 
     subsection (a)(2) and specify the manner in which the 
     eligible institution is going to pay the non-Federal share of 
     the cost of the application.
       ``(d) Uses of Funds.--A grant under this section may be 
     used for--
       ``(1) purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(2) construction, maintenance, renovation, and 
     improvement in classroom, library, laboratory, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services;
       ``(3) purchase of library books, periodicals, technical and 
     other scientific journals, microfilm, microfiche, and other 
     educational materials, including telecommunications program 
     materials;
       ``(4) scholarships, fellowships, and other financial 
     assistance for needy graduate students to permit the 
     enrollment of the students in, and completion of, a masters 
     degree in mathematics, engineering, the physical or natural 
     sciences, computer science, information technology, nursing, 
     allied health, or other scientific disciplines in which 
     African Americans are underrepresented;
       ``(5) establishing or improving a development office to 
     strengthen and increase contributions from alumni and the 
     private sector;

[[Page 17166]]

       ``(6) assisting in the establishment or maintenance of an 
     institutional endowment to facilitate financial independence 
     pursuant to section 331;
       ``(7) funds and administrative management, and the 
     acquisition of equipment, including software, for use in 
     strengthening funds management and management information 
     systems;
       ``(8) acquisition of real property that is adjacent to the 
     campus in connection with the construction, renovation, or 
     improvement of, or an addition to, campus facilities;
       ``(9) education or financial information designed to 
     improve the financial literacy and economic literacy of 
     students or the students' families, especially with regard to 
     student indebtedness and student assistance programs under 
     title IV;
       ``(10) tutoring, counseling, and student service programs 
     designed to improve academic success;
       ``(11) faculty professional development, faculty exchanges, 
     and faculty participation in professional conferences and 
     meetings; and
       ``(12) other activities proposed in the application 
     submitted under subsection (c) that--
       ``(A) contribute to carrying out the purposes of this 
     section; and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.
       ``(e) Interaction With Other Grant Programs.--No 
     institution that is eligible for and receives an award under 
     section 326, 512, or 724 for a fiscal year shall be eligible 
     to apply for a grant, or receive grant funds, under this 
     section for the same fiscal year.
       ``(f) Funding Rule.--Subject to subsection (g), of the 
     amount appropriated to carry out this section for any fiscal 
     year--
       ``(1) the first $9,000,000 (or any lesser amount 
     appropriated) shall be available only for the purposes of 
     making minimum grants under subsection (a)(3) to eligible 
     institutions listed in subparagraphs (A) through (R) of 
     subsection (b)(1), except that if the amount appropriated is 
     not sufficient to pay the minimum grant awards to all such 
     eligible institutions, the amount of the minimum award to 
     each such eligible institution shall be ratably reduced;
       ``(2) after the application of paragraph (1), an amount 
     shall be available for the purpose of making minimum grants 
     under subsection (a)(3) to eligible institutions listed in 
     subsection (b)(1) that do not receive a grant under paragraph 
     (1), if any, except that if the amount appropriated is not 
     sufficient to pay the minimum grant awards to all such 
     eligible institutions, the amount of the minimum award to 
     each such eligible institution shall be ratably reduced; and
       ``(3) any amount in excess of $9,000,000 shall be made 
     available to each of the eligible institutions identified in 
     subparagraphs (A) through (R) of subsection (b)(1), pursuant 
     to a formula developed by the Secretary that uses the 
     following elements:
       ``(A) The ability of the institution to match Federal funds 
     with non-Federal funds.
       ``(B) The number of students enrolled in the qualified 
     masters degree program at the eligible institution in the 
     previous academic year.
       ``(C) The average cost of attendance per student, for all 
     full-time students enrolled in the qualified masters degree 
     program at such institution.
       ``(D) The number of students in the previous year who 
     received a degree in the qualified masters degree program at 
     such institution.
       ``(E) The contribution, on a percent basis, of the programs 
     for which the institution is eligible to receive funds under 
     this section to the total number of African Americans 
     receiving masters degrees in the disciplines related to the 
     programs for the previous year.
       ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) 
     and (3) of subsection (f), no eligible institution identified 
     in subsection (b)(1) that receives a grant under this section 
     for fiscal year 2009 and that is eligible to receive a grant 
     for a subsequent fiscal year shall receive a grant amount for 
     any such subsequent fiscal year that is less than the grant 
     amount received for fiscal year 2009, unless--
       ``(1) the amount appropriated is not sufficient to provide 
     such grant amounts to all such institutions and programs that 
     received grants under this section for such fiscal year and 
     that are eligible to receive a grant in such subsequent 
     fiscal year; or
       ``(2) the institution cannot provide sufficient matching 
     funds to meet the requirements of this section.

     ``SEC. 724. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK 
                   INSTITUTIONS.

       ``(a) Grant Program Authorized.--
       ``(1) In general.--Subject to the availability of funds 
     appropriated to carry out this section, the Secretary shall 
     award program grants to each of the institutions listed in 
     subsection (b)(1) that is determined by the Secretary to be 
     making a substantial contribution to graduate education 
     opportunities at the masters level in mathematics, 
     engineering, the physical or natural sciences, computer 
     science, information technology, nursing, allied health, or 
     other scientific disciplines for Black Americans.
       ``(2) Assurance of non-federal matching funds.--No grant in 
     excess of $1,000,000 may be made under this section unless 
     the institution provides assurances that 50 percent of the 
     cost of the purposes for which the grant is made will be paid 
     from non-Federal sources, except that no institution shall be 
     required to match any portion of the first $1,000,000 of the 
     institution's award from the Secretary. After funds are made 
     available to each eligible institution under the funding 
     rules described in subsection (f), the Secretary shall 
     distribute, on a pro rata basis, any amounts which were not 
     so made available (by reason of the failure of an institution 
     to comply with the matching requirements of this paragraph) 
     among the institutions that have complied with such matching 
     requirement.
       ``(3) Minimum award.--Subject to subsections (f) and (g), 
     the amount awarded to each eligible institution listed in 
     subsection (b)(1) for a fiscal year shall be not less than 
     $500,000.
       ``(4) Duration of grants.--A grant awarded under this 
     section shall be for a period of not more than six years, but 
     may be periodically renewed for a period to be determined by 
     the Secretary.
       ``(b) Institutional Eligibility.--
       ``(1) In general.--Institutions eligible for grants under 
     subsection (a) are the following:
       ``(A) Chicago State University.
       ``(B) Columbia Union College.
       ``(C) Long Island University, Brooklyn campus.
       ``(D) Robert Morris College.
       ``(E) York College, The City University of New York.
       ``(2) Qualified masters degree program.--
       ``(A) In general.--For the purposes of this section, the 
     term `qualified masters degree program' means a masters 
     degree program that provides a program of instruction in 
     mathematics, engineering, the physical or natural sciences, 
     computer science, information technology, nursing, allied 
     health, or other scientific disciplines in which African 
     Americans are underrepresented and has students enrolled in 
     such program of instruction at the time of application for a 
     grant under this section.
       ``(B) Enrollment exception.--Notwithstanding the enrollment 
     requirement contained in subparagraph (A), an institution may 
     use an amount equal to not more than 10 percent of the 
     institution's grant under this section for the development of 
     a new qualified masters degree program.
       ``(3) Institutional choice.--The president or chancellor of 
     the institution may decide which graduate school or qualified 
     masters degree program will receive funds under the grant in 
     any one fiscal year, if the allocation of funds among the 
     schools or programs is delineated in the application for 
     funds submitted to the Secretary under this section.
       ``(4) One grant per institution.--The Secretary shall not 
     award more than one grant under this section in any fiscal 
     year to any institution of higher education.
       ``(c) Application.--An eligible institution listed in 
     subsection (b)(1) desiring a grant under this section shall 
     submit an application at such time, in such manner, and 
     containing such information as the Secretary may require. The 
     application shall--
       ``(1) demonstrate how the grant funds under this section 
     will be used to improve graduate educational opportunities 
     for Black and low-income students and lead to greater 
     financial independence; and
       ``(2) provide, in the case of applications for grants in 
     excess of $1,000,000, the assurances required under 
     subsection (a)(2) and specify the manner in which the 
     eligible institution is going to pay the non-Federal share of 
     the cost of the application.
       ``(d) Uses of Funds.--A grant under this section may be 
     used for--
       ``(1) purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional and research purposes;
       ``(2) construction, maintenance, renovation, and 
     improvement in classroom, library, laboratory, and other 
     instructional facilities, including purchase or rental of 
     telecommunications technology equipment or services;
       ``(3) purchase of library books, periodicals, technical and 
     other scientific journals, microfilm, microfiche, and other 
     educational materials, including telecommunications program 
     materials;
       ``(4) scholarships, fellowships, and other financial 
     assistance for needy graduate students to permit the 
     enrollment of the students in, and completion of, a masters 
     degree in mathematics, engineering, the physical or natural 
     sciences, computer science, information technology, nursing, 
     allied health, or other scientific disciplines in which 
     African Americans are underrepresented;
       ``(5) establishing or improving a development office to 
     strengthen and increase contributions from alumni and the 
     private sector;
       ``(6) assisting in the establishment or maintenance of an 
     institutional endowment to facilitate financial independence 
     pursuant to section 331;
       ``(7) funds and administrative management, and the 
     acquisition of equipment, including software, for use in 
     strengthening funds management and management information 
     systems;
       ``(8) acquisition of real property that is adjacent to the 
     campus in connection with the construction, renovation, or 
     improvement of, or an addition to, campus facilities;
       ``(9) education or financial information designed to 
     improve the financial literacy and economic literacy of 
     students or the students' families, especially with regard to 
     student indebtedness and student assistance programs under 
     title IV;
       ``(10) tutoring, counseling, and student service programs 
     designed to improve academic success;
       ``(11) faculty professional development, faculty exchanges, 
     and faculty participation in professional conferences and 
     meetings; and
       ``(12) other activities proposed in the application 
     submitted under subsection (c) that--
       ``(A) contribute to carrying out the purposes of this 
     section; and
       ``(B) are approved by the Secretary as part of the review 
     and acceptance of such application.

[[Page 17167]]

       ``(e) Interaction With Other Grant Programs.--No 
     institution that is eligible for and receives an award under 
     section 326, 512, or 723 for a fiscal year shall be eligible 
     to apply for a grant, or receive grant funds, under this 
     section for the same fiscal year.
       ``(f) Funding Rule.--Subject to subsection (g), of the 
     amount appropriated to carry out this section for any fiscal 
     year--
       ``(1) the first $2,500,000 (or any lesser amount 
     appropriated) shall be available only for the purposes of 
     making minimum grants under subsection (a)(3) to eligible 
     institutions listed in subparagraphs (A) through (E) of 
     subsection (b)(1), except that if the amount appropriated is 
     not sufficient to pay the minimum grant awards to all such 
     eligible institutions, the amount of the minimum award to 
     each such eligible institution shall be ratably reduced;
       ``(2) after the application of paragraph (1), an amount 
     shall be available for the purpose of making minimum grants 
     under subsection (a)(3) to eligible institutions described in 
     subsection (b)(1) that do not receive a grant under paragraph 
     (1), if any, except that if the amount appropriated is not 
     sufficient to pay the minimum grant awards to all such 
     eligible institutions, the amount of the minimum award to 
     each such eligible institution shall be ratably reduced; and
       ``(3) any amount in excess of $2,500,000 shall be made 
     available to each of the eligible institutions identified in 
     subparagraphs (A) through (E) of subsection (b)(1), pursuant 
     to a formula developed by the Secretary that uses the 
     following elements:
       ``(A) The ability of the institution to match Federal funds 
     with non-Federal funds.
       ``(B) The number of students enrolled in the qualified 
     masters degree program at the eligible institution in the 
     previous academic year.
       ``(C) The average cost of attendance per student, for all 
     full-time students enrolled in the qualified masters degree 
     program at such institution.
       ``(D) The number of students in the previous year who 
     received a degree in the qualified masters degree program at 
     such institution.
       ``(E) The contribution, on a percent basis, of the programs 
     for which the institution is eligible to receive funds under 
     this section to the total number of African Americans 
     receiving masters degrees in the disciplines related to the 
     programs for the previous year.
       ``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) 
     and (3) of subsection (f), no eligible institution identified 
     in subsection (b)(1) that receives a grant under this section 
     for fiscal year 2009 and that is eligible to receive a grant 
     in a subsequent fiscal year shall receive a grant amount in 
     any such subsequent fiscal year that is less than the grant 
     amount received for fiscal year 2009, unless--
       ``(1) the amount appropriated is not sufficient to provide 
     such grant amounts to all such institutions and programs that 
     received grants under this section for such fiscal year and 
     that are eligible to receive a grant in such subsequent 
     fiscal year; or
       ``(2) the institution cannot provide sufficient matching 
     funds to meet the requirements of this section.

     ``SEC. 725. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) Masters Degree Programs at Historically Black 
     Colleges and Universities.--There are authorized to be 
     appropriated to carry out section 723 such sums as may be 
     necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.
       ``(b) Masters Degree Programs at Predominantly Black 
     Institutions.--There are authorized to be appropriated to 
     carry out section 724 such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal 
     years.''.

     SEC. 707. FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
                   EDUCATION.

       (a) Contract and Grant Purposes.--Section 741(a) (20 U.S.C. 
     1138(a)) is amended--
       (1) by striking paragraphs (1) through (3) and inserting 
     the following:
       ``(1) the encouragement of reform and improvement of, and 
     innovation in, postsecondary education and the provision of 
     educational opportunity for all students, including 
     nontraditional students;
       ``(2) the creation of institutions, programs, and joint 
     efforts involving paths to career and professional training, 
     including--
       ``(A) efforts that provide academic credit for programs; 
     and
       ``(B) combinations of academic and experiential learning;
       ``(3) the establishment and continuation of institutions, 
     programs, consortia, collaborations, and other joint efforts 
     based on communications technology, including those efforts 
     that utilize distance education and technological 
     advancements to educate and train postsecondary students 
     (including health professionals serving medically underserved 
     populations);'';
       (2) by striking paragraph (6) and inserting the following:
       ``(6) the introduction of institutional reforms designed to 
     expand individual opportunities for entering and reentering 
     postsecondary institutions and pursuing programs of 
     postsecondary study tailored to individual needs;'';
       (3) in paragraph (7), by striking ``and'' after the 
     semicolon;
       (4) in paragraph (8), by striking the period at the end and 
     inserting a semicolon; and
       (5) by adding at the end the following:
       ``(9) the introduction of reforms in remedial education, 
     including English language instruction, to customize remedial 
     courses to student goals and help students progress rapidly 
     from remedial courses into core courses and through 
     postsecondary program completion;
       ``(10) the provision of support and assistance to 
     partnerships between institutions of higher education and 
     secondary schools with a significant population of students 
     identified as late-entering limited English proficient 
     students, to establish programs that--
       ``(A) result in increased secondary school graduation rates 
     of limited English proficient students; and
       ``(B) increase the number of participating late-entering 
     limited English proficient students who pursue postsecondary 
     education;
       ``(11) the creation of consortia that join diverse 
     institutions of higher education to design and offer 
     curricular and cocurricular interdisciplinary programs at the 
     undergraduate and graduate levels, sustained for not less 
     than a 5 year period, that--
       ``(A) focus on poverty and human capability; and
       ``(B) include--
       ``(i) a service-learning component; and
       ``(ii) the delivery of educational services through 
     informational resource centers, summer institutes, midyear 
     seminars, and other educational activities that stress the 
     effects of poverty and how poverty can be alleviated through 
     different career paths;
       ``(12) the provision of support and assistance for 
     demonstration projects to provide comprehensive support 
     services to ensure that homeless students, or students who 
     were in foster care or were a ward of the court at any time 
     before the age of 13, enroll and succeed in postsecondary 
     education, including providing housing to such students 
     during periods when housing at the institution of higher 
     education is closed or generally unavailable to other 
     students; and
       ``(13) the support of efforts to work with institutions of 
     higher education, and nonprofit organizations, that seek to 
     promote cultural diversity in the entertainment media 
     industry, including through the training of students in 
     production, marketing, and distribution of culturally 
     relevant content.''.
       (b) Center for Best Practices To Support Single Parent 
     Students.--Section 741 (20 U.S.C. 1138) is further amended by 
     adding at the end the following:
       ``(c) Center for Best Practices To Support Single Parent 
     Students.--
       ``(1) Program authorized.--The Secretary is authorized to 
     award one grant or contract to an institution of higher 
     education to enable such institution to establish and 
     maintain a center to study and develop best practices for 
     institutions of higher education to support single parents 
     who are also students attending such institutions.
       ``(2) Institution requirements.--The Secretary shall award 
     the grant or contract under this subsection to a four-year 
     institution of higher education that has demonstrated 
     expertise in the development of programs to assist single 
     parents who are students at institutions of higher education, 
     as shown by the institution's development of a variety of 
     targeted services to such students, including on-campus 
     housing, child care, counseling, advising, internship 
     opportunities, financial aid, and financial aid counseling 
     and assistance.
       ``(3) Center activities.--The center funded under this 
     section shall--
       ``(A) assist institutions implementing innovative programs 
     that support single parents pursuing higher education;
       ``(B) study and develop an evaluation protocol for such 
     programs that includes quantitative and qualitative 
     methodologies;
       ``(C) provide appropriate technical assistance regarding 
     the replication, evaluation, and continuous improvement of 
     such programs; and
       ``(D) develop and disseminate best practices for such 
     programs.''.
       (c) Prohibition.--Section 741 (20 U.S.C. 1138) is further 
     amended by adding after subsection (c) (as added by 
     subsection (b) of this section) the following:
       ``(d) Prohibition.--
       ``(1) In general.--No funds made available under this part 
     shall be used to provide direct financial assistance in the 
     form of grants or scholarships to students who do not meet 
     the requirements of section 484(a).
       ``(2) Rule of construction.--Nothing in this subsection 
     shall be construed to prevent a student who does not meet the 
     requirements of section 484(a) from participating in programs 
     funded under this part.''.
       (d) Priority.--Section 741 (20 U.S.C. 1138) is further 
     amended by adding after subsection (d) (as added by 
     subsection (c) of this section) the following:
       ``(e) Priority.--In making grants under this part to any 
     institution of higher education after the date of enactment 
     of the Higher Education Opportunity Act, the Secretary may 
     give priority to institutions that meet or exceed the most 
     current version of ASHRAE/IES Standard 90.1 (as such term is 
     used in section 342(a)(6) of the Energy Policy and 
     Conservation Act (42 U.S.C. 6313(a)(6)) for any new 
     facilities construction or major renovation of the 
     institution after such date, except that this subsection 
     shall not apply with respect to barns or greenhouses or 
     similar structures owned by the institution.''.
       (e) Scholarship Program for Family Members of Veterans or 
     Members of the Military.--Section 741 (20 U.S.C. 1138) is 
     further amended by adding after subsection (e) (as added by 
     subsection (d) of this section) the following:
       ``(f) Scholarship Program for Family Members of Veterans or 
     Members of the Military.--

[[Page 17168]]

       ``(1) Authorization.--The Secretary shall enter into a 
     contract with a nonprofit organization with demonstrated 
     success in carrying out the activities described in this 
     subsection to carry out a program to provide postsecondary 
     education scholarships for eligible students.
       ``(2) Definition of eligible student.--In this subsection, 
     the term `eligible student' means an individual who is 
     enrolled as a full-time or part-time student at an 
     institution of higher education (as defined in section 102) 
     and is--
       ``(A) a dependent student who is a child of--
       ``(i) an individual who is--

       ``(I) serving on active duty during a war or other military 
     operation or national emergency (as defined in section 481); 
     or
       ``(II) performing qualifying National Guard duty during a 
     war or other military operation or national emergency (as 
     defined in section 481); or

       ``(ii) a veteran who--

       ``(I) served or performed, as described in clause (i), 
     since September 11, 2001; and
       ``(II) died, or has been disabled, as a result of such 
     service or performance; or

       ``(B) an independent student who--
       ``(i) is a spouse of an individual who is--

       ``(I) serving on active duty during a war or other military 
     operation or national emergency (as defined in section 481); 
     or
       ``(II) performing qualifying National Guard duty during a 
     war or other military operation or national emergency (as 
     defined in section 481);

       ``(ii) was (at the time of death of the veteran) a spouse 
     of a veteran who--

       ``(I) served or performed, as described in clause (i), 
     since September 11, 2001; and
       ``(II) died as a result of such service or performance; or

       ``(iii) is a spouse of a veteran who--

       ``(I) served or performed, as described in clause (i), 
     since September 11, 2001; and
       ``(II) has been disabled as a result of such service or 
     performance.

       ``(3) Awarding of scholarships.--Scholarships awarded under 
     this subsection shall be awarded based on need with priority 
     given to eligible students who are eligible to receive 
     Federal Pell Grants under subpart 1 of part A of title IV.
       ``(4) Maximum scholarship amount.--The maximum scholarship 
     amount awarded to an eligible student under this subsection 
     for an award year shall be the lesser of $5,000, or the 
     student's cost of attendance (as defined in section 472).
       ``(5) Amounts for scholarships.--All of the amounts 
     appropriated to carry out this subsection for a fiscal year 
     shall be used for scholarships awarded under this subsection, 
     except that the nonprofit organization receiving a contract 
     under this subsection may use not more than one percent of 
     such amounts for the administrative costs of the contract.''.
       (f) Areas of National Need.--Section 744(c) (20 U.S.C. 
     1138c(c)) is amended to read as follows:
       ``(c) Areas of National Need.--Areas of national need shall 
     include, at a minimum, the following:
       ``(1) Institutional restructuring to improve learning and 
     promote productivity, efficiency, quality improvement, and 
     cost reduction.
       ``(2) Improvements in academic instruction and student 
     learning, including efforts designed to assess the learning 
     gains made by postsecondary students.
       ``(3) Articulation between two- and four-year institutions 
     of higher education, including developing innovative methods 
     for ensuring the successful transfer of students from two- to 
     four-year institutions of higher education.
       ``(4) Development, evaluation, and dissemination of model 
     courses, including model courses that--
       ``(A) provide students with a broad and integrated 
     knowledge base;
       ``(B) include, at a minimum, broad survey courses in 
     English literature, American and world history, American 
     political institutions, economics, philosophy, college-level 
     mathematics, and the natural sciences; and
       ``(C) include study of a foreign language that leads to 
     reading and writing competency in the foreign language.
       ``(5) International cooperation and student exchanges among 
     postsecondary educational institutions.
       ``(6) Support of centers to incorporate education in 
     quality and safety into the preparation of medical and 
     nursing students, through grants to medical schools, nursing 
     schools, and osteopathic schools. Such grants shall be used 
     to assist in providing courses of instruction that 
     specifically equip students to--
       ``(A) understand the causes of, and remedies for, medical 
     error, medically induced patient injuries and complications, 
     and other defects in medical care;
       ``(B) engage effectively in personal and systemic efforts 
     to continually reduce medical harm; and
       ``(C) improve patient care and outcomes, as recommended by 
     the Institute of Medicine.''.
       (g) Authorization of Appropriations for the Fund for the 
     Improvement of Postsecondary Education.--Section 745 (20 
     U.S.C. 1138d) is amended by striking ``$30,000,000 for fiscal 
     year 1999'' and all that follows through the period at the 
     end and inserting ``such sums as may be necessary for fiscal 
     year 2009 and each of the five succeeding fiscal years.''.
       (h) Technical FIPSE Amendments.--Part B of title VII (20 
     U.S.C. 1138 et seq.) is further amended--
       (1) in section 742 (20 U.S.C. 1138a)--
       (A) in subsection (b)--
       (i) by striking ``(b) Membership.--'' and all that follows 
     through ``The Secretary'' and inserting ``(b) Membership.--
     The Secretary''; and
       (ii) by striking paragraph (2);
       (B) in subsection (c), by striking ``and the Director'' 
     each place the term appears; and
       (C) in subsection (d), by striking ``Director'' and 
     inserting ``Secretary'';
       (2) in section 743 (20 U.S.C. 1138b)--
       (A) by striking ``(a) Technical Employees.--''; and
       (B) by striking subsection (b); and
       (3) in section 744(a) (20 U.S.C. 1138c(a)), by striking 
     ``Director'' each place the term appears and inserting 
     ``Secretary''.

     SEC. 708. REPEAL OF THE URBAN COMMUNITY SERVICE PROGRAM.

       Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.

     SEC. 709. PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH 
                   A QUALITY HIGHER EDUCATION.

       Title VII (20 U.S.C. 1133 et seq.) is further amended--
       (1) by redesignating section 771 (20 U.S.C. 1141) as 
     section 781; and
       (2) by striking part D of title VII (20 U.S.C. 1140 et 
     seq.) and inserting the following:

``PART D--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A QUALITY 
                            HIGHER EDUCATION

     ``SEC. 760. DEFINITIONS.

       ``In this part:
       ``(1) Comprehensive transition and postsecondary program 
     for students with intellectual disabilities.--The term 
     `comprehensive transition and postsecondary program for 
     students with intellectual disabilities' means a degree, 
     certificate, or nondegree program that is--
       ``(A) offered by an institution of higher education;
       ``(B) designed to support students with intellectual 
     disabilities who are seeking to continue academic, career and 
     technical, and independent living instruction at an 
     institution of higher education in order to prepare for 
     gainful employment;
       ``(C) includes an advising and curriculum structure; and
       ``(D) requires students with intellectual disabilities to 
     participate on not less than a half-time basis, as determined 
     by the institution, with such participation focusing on 
     academic components and occurring through one or more of the 
     following activities:
       ``(i) Regular enrollment in credit-bearing courses with 
     nondisabled students offered by the institution.
       ``(ii) Auditing or participating in courses with 
     nondisabled students offered by the institution for which the 
     student does not receive regular academic credit.
       ``(iii) Enrollment in noncredit-bearing, nondegree courses 
     with nondisabled students.
       ``(iv) Participation in internships or work-based training 
     in settings with nondisabled individuals.
       ``(2) Student with an intellectual disability.--The term 
     `student with an intellectual disability' means a student--
       ``(A) with mental retardation or a cognitive impairment, 
     characterized by significant limitations in--
       ``(i) intellectual and cognitive functioning; and
       ``(ii) adaptive behavior as expressed in conceptual, 
     social, and practical adaptive skills; and
       ``(B) who is currently, or was formerly, eligible for a 
     free appropriate public education under the Individuals with 
     Disabilities Education Act.

 ``Subpart 1--Demonstration Projects to Support Postsecondary Faculty, 
   Staff, and Administrators in Educating Students With Disabilities

     ``SEC. 761. PURPOSE.

       ``It is the purpose of this subpart to support model 
     demonstration projects to provide technical assistance or 
     professional development for postsecondary faculty, staff, 
     and administrators in institutions of higher education to 
     enable such faculty, staff, and administrators to provide 
     students with disabilities with a quality postsecondary 
     education.

     ``SEC. 762. GRANTS, CONTRACTS, AND COOPERATIVE AGREEMENTS 
                   AUTHORIZED.

       ``(a) Competitive Grants, Contracts, and Cooperative 
     Agreements Authorized.--
       ``(1) In general.--From amounts appropriated under section 
     765, the Secretary may award grants, contracts, and 
     cooperative agreements, on a competitive basis, to 
     institutions of higher education to enable the institutions 
     to carry out the activities under subsection (b).
       ``(2) Awards for professional development and technical 
     assistance.--Not less than two grants, contracts, cooperative 
     agreements, or a combination of such awards shall be awarded 
     to institutions of higher education that provide professional 
     development and technical assistance in order for students 
     with learning disabilities to receive a quality postsecondary 
     education.
       ``(b) Duration; Activities.--
       ``(1) Duration.--A grant, contract, or cooperative 
     agreement under this subpart shall be awarded for a period of 
     three years.
       ``(2) Authorized activities.--A grant, contract, or 
     cooperative agreement awarded under this subpart shall be 
     used to carry out one or more of the following activities:
       ``(A) Teaching methods and strategies.--The development of 
     innovative, effective, and efficient teaching methods and 
     strategies, consistent with the principles of universal 
     design

[[Page 17169]]

     for learning, to provide postsecondary faculty, staff, and 
     administrators with the skills and supports necessary to 
     teach and meet the academic and programmatic needs of 
     students with disabilities, in order to improve the retention 
     of such students in, and the completion by such students of, 
     postsecondary education. Such methods and strategies may 
     include in-service training, professional development, 
     customized and general technical assistance, workshops, 
     summer institutes, distance learning, and training in the use 
     of assistive and educational technology.
       ``(B) Effective transition practices.--The development of 
     innovative and effective teaching methods and strategies to 
     provide postsecondary faculty, staff, and administrators with 
     the skill and supports necessary to ensure the successful and 
     smooth transition of students with disabilities from 
     secondary school to postsecondary education.
       ``(C) Synthesizing research and information.--The synthesis 
     of research and other information related to the provision of 
     postsecondary educational services to students with 
     disabilities, including data on the impact of a postsecondary 
     education on subsequent employment of students with 
     disabilities. Such research, information, and data shall be 
     made publicly available and accessible.
       ``(D) Distance learning.--The development of innovative and 
     effective teaching methods and strategies to provide 
     postsecondary faculty, staff, and administrators with the 
     ability to provide accessible distance education programs or 
     classes that would enhance the access of students with 
     disabilities to postsecondary education, including the use of 
     accessible curricula and electronic communication for 
     instruction and advising.
       ``(E) Disability career pathways.--
       ``(i) In general.--The provision of information, training, 
     and technical assistance to secondary and postsecondary 
     faculty, staff, and administrators with respect to 
     disability-related fields that would enable such faculty, 
     staff, and administrators to--

       ``(I) encourage interest and participation in such fields, 
     among students with disabilities and other students;
       ``(II) enhance awareness and understanding of such fields 
     among students with disabilities and other students;
       ``(III) provide educational opportunities in such fields 
     for students with disabilities and other students;
       ``(IV) teach practical skills related to such fields to 
     students with disabilities and other students; and
       ``(V) offer work-based opportunities in such fields to 
     students with disabilities and other students.

       ``(ii) Development.--The training and support described in 
     subclauses (I) through (V) of clause (i) may include offering 
     students--

       ``(I) credit-bearing postsecondary-level coursework; and
       ``(II) career and educational counseling.

       ``(F) Professional development and training sessions.--The 
     conduct of professional development and training sessions for 
     postsecondary faculty, staff, and administrators from other 
     institutions of higher education to enable such individuals 
     to meet the educational needs of students with disabilities.
       ``(G) Accessibility of education.--Making postsecondary 
     education more accessible to students with disabilities 
     through curriculum development, consistent with the 
     principles of universal design for learning.
       ``(3) Mandatory evaluation and dissemination.--An 
     institution of higher education awarded a grant, contract, or 
     cooperative agreement under this subpart shall evaluate and 
     disseminate to other institutions of higher education, the 
     information obtained through the activities described in 
     subparagraphs (A) through (G) of paragraph (2).
       ``(c) Considerations in Making Awards.--In awarding grants, 
     contracts, or cooperative agreements under this subpart, the 
     Secretary shall consider the following:
       ``(1) Geographic distribution.--Providing an equitable 
     geographic distribution of such awards.
       ``(2) Rural and urban areas.--Distributing such awards to 
     urban and rural areas.
       ``(3) Range and type of institution.--Ensuring that the 
     activities to be assisted are developed for a range of types 
     and sizes of institutions of higher education.
       ``(4) Prior experience or exceptional programs.--
     Distributing the awards to institutions of higher education 
     with demonstrated prior experience in, or exceptional 
     programs for, meeting the postsecondary educational needs of 
     students with disabilities.
       ``(d) Reports.--
       ``(1) Initial report.--Not later than one year after the 
     date of enactment of the Higher Education Opportunity Act, 
     the Secretary shall prepare and submit to the authorizing 
     committees, and make available to the public, a report on all 
     demonstration projects awarded grants under this part for any 
     of fiscal years 1999 through 2008, including a review of the 
     activities and program performance of such demonstration 
     projects based on existing information as of the date of the 
     report.
       ``(2) Subsequent report.--Not later than three years after 
     the date of the first award of a grant under this subpart 
     after the date of enactment of the Higher Education 
     Opportunity Act, the Secretary shall prepare and submit to 
     the authorizing committees, and make available to the public, 
     a report that--
       ``(A) reviews the activities and program performance of the 
     demonstration projects authorized under this subpart; and
       ``(B) provides guidance and recommendations on how 
     effective projects can be replicated.

     ``SEC. 763. APPLICATIONS.

       ``Each institution of higher education desiring to receive 
     a grant, contract, or cooperative agreement under this 
     subpart shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information as 
     the Secretary may require. Each application shall include--
       ``(1) a description of the activities authorized under this 
     subpart that the institution proposes to carry out, and how 
     such institution plans to conduct such activities in order to 
     further the purpose of this subpart;
       ``(2) a description of how the institution consulted with a 
     broad range of people within the institution to develop 
     activities for which assistance is sought;
       ``(3) a description of how the institution will coordinate 
     and collaborate with the office that provides services to 
     students with disabilities within the institution; and
       ``(4) a description of the extent to which the institution 
     will work to replicate the research-based and best practices 
     of institutions of higher education with demonstrated 
     effectiveness in serving students with disabilities.

     ``SEC. 764. RULE OF CONSTRUCTION.

       ``Nothing in this subpart shall be construed to impose any 
     additional duty, obligation, or responsibility on an 
     institution of higher education or on the institution's 
     faculty, administrators, or staff than is required under 
     section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 
     and the Americans with Disabilities Act of 1990 (42 U.S.C. 
     12101 et seq.).

     ``SEC. 765. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for fiscal year 2009 
     and each of the five succeeding fiscal years.

    ``Subpart 2--Transition Programs for Students With Intellectual 
                   Disabilities Into Higher Education

     ``SEC. 766. PURPOSE.

       ``It is the purpose of this subpart to support model 
     demonstration programs that promote the successful transition 
     of students with intellectual disabilities into higher 
     education.

     ``SEC. 767. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY 
                   PROGRAMS FOR STUDENTS WITH INTELLECTUAL 
                   DISABILITIES.

       ``(a) Grants Authorized.--
       ``(1) In general.--From amounts appropriated under section 
     769(a), the Secretary shall annually award grants, on a 
     competitive basis, to institutions of higher education (or 
     consortia of institutions of higher education), to enable the 
     institutions or consortia to create or expand high quality, 
     inclusive model comprehensive transition and postsecondary 
     programs for students with intellectual disabilities.
       ``(2) Administration.--The program under this section shall 
     be administered by the office in the Department that 
     administers other postsecondary education programs.
       ``(3) Duration of grants.--A grant under this section shall 
     be awarded for a period of 5 years.
       ``(b) Application.--An institution of higher education (or 
     a consortium) desiring a grant under this section shall 
     submit an application to the Secretary at such time, in such 
     manner, and containing such information as the Secretary may 
     require.
       ``(c) Award Basis.--In awarding grants under this section, 
     the Secretary shall--
       ``(1) provide for an equitable geographic distribution of 
     such grants;
       ``(2) provide grant funds for model comprehensive 
     transition and postsecondary programs for students with 
     intellectual disabilities that will serve areas that are 
     underserved by programs of this type; and
       ``(3) give preference to applications submitted under 
     subsection (b) that agree to incorporate into the model 
     comprehensive transition and postsecondary program for 
     students with intellectual disabilities carried out under the 
     grant one or more of the following elements:
       ``(A) The formation of a partnership with any relevant 
     agency serving students with intellectual disabilities, such 
     as a vocational rehabilitation agency.
       ``(B) In the case of an institution of higher education 
     that provides institutionally owned or operated housing for 
     students attending the institution, the integration of 
     students with intellectual disabilities into the housing 
     offered to nondisabled students.
       ``(C) The involvement of students attending the institution 
     of higher education who are studying special education, 
     general education, vocational rehabilitation, assistive 
     technology, or related fields in the model program.
       ``(d) Use of Funds.--An institution of higher education (or 
     consortium) receiving a grant under this section shall use 
     the grant funds to establish a model comprehensive transition 
     and postsecondary program for students with intellectual 
     disabilities that--
       ``(1) serves students with intellectual disabilities;
       ``(2) provides individual supports and services for the 
     academic and social inclusion of students with intellectual 
     disabilities in academic courses, extracurricular activities, 
     and other aspects of the institution of higher education's 
     regular postsecondary program;
       ``(3) with respect to the students with intellectual 
     disabilities participating in the model program, provides a 
     focus on--

[[Page 17170]]

       ``(A) academic enrichment;
       ``(B) socialization;
       ``(C) independent living skills, including self-advocacy 
     skills; and
       ``(D) integrated work experiences and career skills that 
     lead to gainful employment;
       ``(4) integrates person-centered planning in the 
     development of the course of study for each student with an 
     intellectual disability participating in the model program;
       ``(5) participates with the coordinating center established 
     under section 777(b) in the evaluation of the model program;
       ``(6) partners with one or more local educational agencies 
     to support students with intellectual disabilities 
     participating in the model program who are still eligible for 
     special education and related services under the Individuals 
     with Disabilities Education Act, including the use of funds 
     available under part B of such Act to support the 
     participation of such students in the model program;
       ``(7) plans for the sustainability of the model program 
     after the end of the grant period; and
       ``(8) creates and offers a meaningful credential for 
     students with intellectual disabilities upon the completion 
     of the model program.
       ``(e) Matching Requirement.--An institution of higher 
     education (or consortium) that receives a grant under this 
     section shall provide matching funds toward the cost of the 
     model comprehensive transition and postsecondary program for 
     students with intellectual disabilities carried out under the 
     grant. Such matching funds may be provided in cash or in-
     kind, and shall be in an amount of not less than 25 percent 
     of the amount of such costs.
       ``(f) Report.--Not later than five years after the date of 
     the first grant awarded under this section, the Secretary 
     shall prepare and disseminate a report to the authorizing 
     committees and to the public that--
       ``(1) reviews the activities of the model comprehensive 
     transition and postsecondary programs for students with 
     intellectual disabilities funded under this section; and
       ``(2) provides guidance and recommendations on how 
     effective model programs can be replicated.

     ``SEC. 768. RULE OF CONSTRUCTION.

       ``Nothing in this subpart shall be construed to reduce or 
     expand--
       ``(1) the obligation of a State or local educational agency 
     to provide a free appropriate public education, as defined in 
     section 602 of the Individuals with Disabilities Education 
     Act; or
       ``(2) eligibility requirements under any Federal, State, or 
     local disability law, including the Americans with 
     Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), the 
     Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), or the 
     Developmental Disabilities Assistance and Bill of Rights Act 
     of 2000 (42 U.S.C. 15001 et seq.).

     ``SEC. 769. AUTHORIZATION OF APPROPRIATIONS AND RESERVATION.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this subpart such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.
       ``(b) Reservation of Funds.--For any fiscal year for which 
     appropriations are made for this subpart, the Secretary shall 
     reserve funds to enter into a cooperative agreement to 
     establish the coordinating center under section 777(b), in an 
     amount that is--
       ``(1) not less than $240,000 for any year in which the 
     amount appropriated to carry out this subpart is $8,000,000 
     or less; or
       ``(2) equal to 3 percent of the amount appropriated to 
     carry out this subpart for any year in which such amount 
     appropriated is greater than $8,000,000.

 ``Subpart 3--Commission on Accessible Materials; Programs to Support 
                      Improved Access to Materials

     ``SEC. 771. DEFINITION OF STUDENT WITH A PRINT DISABILITY.

       ``In this subpart, the term `student with a print 
     disability' means a student with a disability who experiences 
     barriers to accessing instructional material in 
     nonspecialized formats, including an individual described in 
     section 121(d)(2) of title 17, United States Code.

     ``SEC. 772. ESTABLISHMENT OF ADVISORY COMMISSION ON 
                   ACCESSIBLE INSTRUCTIONAL MATERIALS IN 
                   POSTSECONDARY EDUCATION FOR STUDENTS WITH 
                   DISABILITIES.

       ``(a) Establishment.--
       ``(1) In general.--The Secretary shall establish a 
     commission to be known as the Advisory Commission on 
     Accessible Instructional Materials in Postsecondary Education 
     for Students with Disabilities (in this section referred to 
     as the `Commission').
       ``(2) Membership.--
       ``(A) Total number of members.--The Commission shall 
     include not more than 19 members, who shall be appointed by 
     the Secretary in accordance with in subparagraphs (B) and 
     (C).
       ``(B) Members of the commission.--The Commission members 
     shall include one representative from each of the following 
     categories:
       ``(i) The Office of Postsecondary Education of the 
     Department.
       ``(ii) The Office of Special Education and Rehabilitative 
     Services of the Department.
       ``(iii) The Office for Civil Rights of the Department.
       ``(iv) The Library of Congress National Digital Information 
     and Infrastructure Preservation Program Copyright Working 
     Group.
       ``(v) The Association on Higher Education and Disability.
       ``(vi) The Association of American Publishers.
       ``(vii) The Association of American University Presses.
       ``(viii) The National Council on Disability.
       ``(ix) Recording for the Blind and Dyslexic.
       ``(x) National organizations representing individuals with 
     visual impairments.
       ``(xi) National organizations representing individuals with 
     learning disabilities.
       ``(C) Additional members of the commission.--The Commission 
     members shall include two representatives from each of the 
     following categories:
       ``(i) Staff from institutions of higher education with 
     demonstrated experience teaching or supporting students with 
     print disabilities, including representatives from both two-
     year and four-year institutions of higher education of 
     different sizes.
       ``(ii) Producers of accessible materials, publishing 
     software, and supporting technologies in specialized formats, 
     such as Braille, audio or synthesized speech, and digital 
     media.
       ``(iii) Individuals with visual impairments, including not 
     less than one currently enrolled postsecondary student.
       ``(iv) Individuals with dyslexia or other learning 
     disabilities related to reading, including not less than one 
     currently enrolled postsecondary student.
       ``(D) Timing.--The Secretary shall appoint the members of 
     the Commission not later than 60 days after the Commission is 
     established under paragraph (1).
       ``(3) Chairperson and vice chairperson.--The Commission 
     shall select a chairperson and vice chairperson from among 
     the members of the Commission.
       ``(4) Meetings.--
       ``(A) In general.--The Commission shall meet at the call of 
     the Chairperson.
       ``(B) First meeting.--Not later than 60 days after the 
     appointment of the members of the Commission under paragraph 
     (2)(D), the Commission shall hold the Commission's first 
     meeting.
       ``(5) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum, but a lesser number of members may 
     hold hearings.
       ``(b) Duties of the Commission.--
       ``(1) Study.--
       ``(A) In general.--The Commission shall conduct a 
     comprehensive study to--
       ``(i) assess the barriers and systemic issues that may 
     affect, and technical solutions available that may improve, 
     the timely delivery and quality of accessible instructional 
     materials for postsecondary students with print disabilities, 
     as well as the effective use of such materials by faculty and 
     staff; and
       ``(ii) make recommendations related to the development of a 
     comprehensive approach to improve the opportunities for 
     postsecondary students with print disabilities to access 
     instructional materials in specialized formats in a timeframe 
     comparable to the availability of instructional materials for 
     postsecondary nondisabled students.
       ``(B) Existing information.--To the extent practicable, in 
     carrying out the study under this paragraph, the Commission 
     shall identify and use existing research, recommendations, 
     and information.
       ``(C) Recommendations.--
       ``(i) In general.--The Commission shall develop 
     recommendations--

       ``(I) to inform Federal regulations and legislation;
       ``(II) to support the model demonstration programs 
     authorized under section 773;
       ``(III) to identify best practices in systems for 
     collecting, maintaining, processing, and disseminating 
     materials in specialized formats to students with print 
     disabilities at costs comparable to instructional materials 
     for postsecondary nondisabled students;
       ``(IV) to improve the effective use of such materials by 
     faculty and staff, while complying with applicable copyright 
     law; and
       ``(V) to modify the definitions of instructional materials, 
     authorized entities, and eligible students, as such terms are 
     used in applicable Federal law, for the purpose of improving 
     services to students with disabilities.

       ``(ii) Considerations.--In developing the recommendations 
     under subparagraph (C), the Commission shall consider--

       ``(I) how students with print disabilities may obtain 
     instructional materials in accessible formats--

       ``(aa) within a timeframe comparable to the availability of 
     instructional materials for nondisabled students; and
       ``(bb) to the maximum extent practicable, at costs 
     comparable to the costs of such materials for nondisabled 
     students;

       ``(II) the feasibility and technical parameters of 
     establishing standardized electronic file formats, such as 
     the National Instructional Materials Accessibility Standard 
     as defined in section 674(e)(3) of the Individuals with 
     Disabilities Education Act, to be provided by publishers of 
     instructional materials to producers of materials in 
     specialized formats, institutions of higher education, and 
     eligible students;
       ``(III) the feasibility of establishing a national 
     clearinghouse, repository, or file-sharing network for 
     electronic files in specialized formats and files used in 
     producing instructional materials in specialized formats, and 
     a list of possible entities qualified to administer such 
     clearinghouse, repository, or network;
       ``(IV) the feasibility of establishing market-based 
     solutions involving collaborations among publishers of 
     instructional materials, producers

[[Page 17171]]

     of materials in specialized formats, and institutions of 
     higher education;
       ``(V) solutions utilizing universal design; and
       ``(VI) solutions for low-incidence, high-cost requests for 
     instructional materials in specialized formats.

       ``(2) Report.--Not later than one year after the 
     Commission's first meeting, the Commission shall submit a 
     report to the Secretary and the authorizing committees 
     detailing the findings and recommendations of the study 
     conducted under paragraph (1).
       ``(3) Dissemination of information.--In carrying out the 
     study under paragraph (1), the Commission shall disseminate 
     information concerning the issues that are the subject of the 
     study through--
       ``(A) the National Technical Assistance Center established 
     under subpart 4; and
       ``(B) other means, as determined by the Commission.
       ``(c) Termination of the Commission.--The Commission shall 
     terminate on the date that is 90 days after the date on which 
     the Commission submits the report under subsection (b)(2) to 
     the Secretary and the authorizing committees.

     ``SEC. 773. MODEL DEMONSTRATION PROGRAMS TO SUPPORT IMPROVED 
                   ACCESS TO POSTSECONDARY INSTRUCTIONAL MATERIALS 
                   FOR STUDENTS WITH PRINT DISABILITIES.

       ``(a) Purpose.--It is the purpose of this section to 
     support model demonstration programs for the purpose of 
     encouraging the development of systems to improve the quality 
     of postsecondary instructional materials in specialized 
     formats and such materials' timely delivery to postsecondary 
     students with print disabilities, including systems to 
     improve efficiency and reduce duplicative efforts across 
     multiple institutions of higher education.
       ``(b) Definition of Eligible Partnership.--In this section, 
     the term `eligible partnership' means a partnership that--
       ``(1) shall include--
       ``(A) an institution of higher education with demonstrated 
     expertise in meeting the needs of students with print 
     disabilities, including the retention of such students in, 
     and such students' completion of, postsecondary education; 
     and
       ``(B) a public or private entity, other than an institution 
     of higher education, with--
       ``(i) demonstrated expertise in developing accessible 
     instructional materials in specialized formats for 
     postsecondary students with print disabilities; and
       ``(ii) the technical development expertise necessary for 
     the efficient dissemination of such materials, including 
     procedures to protect against copyright infringement with 
     respect to the creation, use, and distribution of 
     instructional materials in specialized formats; and
       ``(2) may include representatives of the publishing 
     industry.
       ``(c) Program Authorized.--From amounts appropriated under 
     section 775, the Secretary shall award grants or contracts, 
     on a competitive basis, to not less than one eligible 
     partnership to enable the eligible partnership to support the 
     activities described in subsection (f) and, as applicable, 
     subsection (g).
       ``(d) Application.--An eligible partnership that desires a 
     grant or contract under this section shall submit an 
     application at such time, in such manner, and in such format 
     as the Secretary may prescribe. The application shall include 
     information on how the eligible partnership will implement 
     activities under subsection (f) and, as applicable, 
     subsection (g).
       ``(e) Priority.--In awarding grants or contracts under this 
     section, the Secretary shall give priority to any 
     applications that include the development and implementation 
     of the procedures and approaches described in paragraphs (2) 
     and (3) of subsection (g).
       ``(f) Required Activities.--An eligible partnership that 
     receives a grant or contract under this section shall use the 
     grant or contract funds to carry out the following:
       ``(1) Supporting the development and implementation of the 
     following:
       ``(A) Processes and systems to help identify, and verify 
     eligibility of, postsecondary students with print 
     disabilities in need of instructional materials in 
     specialized formats.
       ``(B) Procedures and systems to facilitate and simplify 
     request methods for accessible instructional materials in 
     specialized formats from eligible students described in 
     subparagraph (A), which may include a single point-of-entry 
     system.
       ``(C) Procedures and systems to coordinate among 
     institutions of higher education, publishers of instructional 
     materials, and entities that produce materials in specialized 
     formats, to efficiently facilitate--
       ``(i) requests for such materials;
       ``(ii) the responses to such requests; and
       ``(iii) the delivery of such materials.
       ``(D) Delivery systems that will ensure the timely 
     provision of instructional materials in specialized formats 
     to eligible students, which may include electronic file 
     distribution.
       ``(E) Systems to reduce duplicative conversions and improve 
     sharing of the same instructional materials in specialized 
     formats for multiple eligible students at multiple 
     institutions of higher education.
       ``(F) Procedures to protect against copyright infringement 
     with respect to the development, use, and distribution of 
     instructional materials in specialized formats while 
     maintaining accessibility for eligible students, which may 
     include digital technologies such as watermarking, 
     fingerprinting, and other emerging approaches.
       ``(G) Awareness, outreach, and training activities for 
     faculty, staff, and students related to the acquisition and 
     dissemination of instructional materials in specialized 
     formats and instructional materials utilizing universal 
     design.
       ``(2) Providing recommendations on how effective procedures 
     and systems described in paragraph (1) may be disseminated 
     and implemented on a national basis.
       ``(g) Authorized Approaches.--An eligible partnership that 
     receives a grant or contract under this section may use the 
     grant or contract funds to support the development and 
     implementation of the following:
       ``(1) Approaches for the provision of instructional 
     materials in specialized formats limited to instructional 
     materials used in smaller categories of postsecondary 
     courses, such as introductory, first-, and second-year 
     courses.
       ``(2) Approaches supporting a unified search for 
     instructional materials in specialized formats across 
     multiple databases or lists of available materials.
       ``(3) Market-based approaches for making instructional 
     materials in specialized formats directly available to 
     eligible students at prices comparable to standard 
     instructional materials.
       ``(h) Report.--Not later than three years after the date of 
     the first grant or contract awarded under this section, the 
     Secretary shall submit to the authorizing committees a report 
     that includes--
       ``(1) the number of grants and contracts and the amount of 
     funds distributed under this section;
       ``(2) a summary of the purposes for which the grants and 
     contracts were provided and an evaluation of the progress 
     made under such grants and contracts;
       ``(3) a summary of the activities implemented under 
     subsection (f) and, as applicable, subsection (g), including 
     data on the number of postsecondary students with print 
     disabilities served and the number of instructional material 
     requests executed and delivered in specialized formats; and
       ``(4) an evaluation of the effectiveness of programs funded 
     under this section.
       ``(i) Model Expansion.--The Secretary may, on the basis of 
     the reports under subsection (h) and section 772(b)(2) and 
     any evaluations of the projects funded under this section, 
     expand the program under this section to additional grant or 
     contract recipients that use other programmatic approaches 
     and serve different geographic regions, if the Secretary 
     finds that the models used under this section--
       ``(1) are effective in improving the timely delivery and 
     quality of materials in specialized formats; and
       ``(2) provide adequate protections against copyright 
     infringement.

     ``SEC. 774. RULE OF CONSTRUCTION.

       ``Nothing in this subpart shall be construed to limit or 
     preempt any State law requiring the production or 
     distribution of postsecondary instructional materials in 
     accessible formats to students with disabilities.

     ``SEC. 775. AUTHORIZATION OF APPROPRIATIONS.

       ``(a) In General.--There are authorized to be appropriated 
     to carry out this subpart such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal 
     years.
       ``(b) Priority.--For the first fiscal year for which funds 
     are made available under this section, the Secretary shall 
     give priority to allocating funding for the purposes of 
     section 772.

 ``Subpart 4--National Technical Assistance Center; Coordinating Center

     ``SEC. 776. PURPOSE.

       ``It is the purpose of this subpart to provide technical 
     assistance and information on best and promising practices to 
     students with disabilities, the families of students with 
     disabilities, and entities awarded grants, contracts, or 
     cooperative agreements under subpart 1, 2, or 3 to improve 
     the postsecondary recruitment, transition, retention, and 
     completion rates of students with disabilities.

     ``SEC. 777. NATIONAL TECHNICAL ASSISTANCE CENTER; 
                   COORDINATING CENTER.

       ``(a) National Center.--
       ``(1) In general.--From amounts appropriated under section 
     778, the Secretary shall award a grant to, or enter into a 
     contract or cooperative agreement with, an eligible entity to 
     provide for the establishment and support of a National 
     Center for Information and Technical Support for 
     Postsecondary Students with Disabilities (in this subsection 
     referred to as the `National Center'). The National Center 
     shall carry out the duties set forth in paragraph (4).
       ``(2) Administration.--The program under this section shall 
     be administered by the office in the Department that 
     administers other postsecondary education programs.
       ``(3) Eligible entity.--In this subpart, the term `eligible 
     entity' means an institution of higher education, a nonprofit 
     organization, or partnership of two or more such institutions 
     or organizations, with demonstrated expertise in--
       ``(A) supporting students with disabilities in 
     postsecondary education;
       ``(B) technical knowledge necessary for the dissemination 
     of information in accessible formats;
       ``(C) working with diverse types of institutions of higher 
     education, including community colleges; and
       ``(D) the subjects supported by the grants, contracts, or 
     cooperative agreements authorized in subparts 1, 2, and 3.
       ``(4) Duties.--The duties of the National Center shall 
     include the following:
       ``(A) Assistance to students and families.--The National 
     Center shall provide information and technical assistance to 
     students

[[Page 17172]]

     with disabilities and the families of students with 
     disabilities to support students across the broad spectrum of 
     disabilities, including--
       ``(i) information to assist individuals with disabilities 
     who are prospective students of an institution of higher 
     education in planning for postsecondary education while the 
     students are in secondary school;
       ``(ii) information and technical assistance provided to 
     individualized education program teams (as defined in section 
     614(d)(1) of the Individuals with Disabilities Education Act) 
     for secondary school students with disabilities, and to early 
     outreach and student services programs, including programs 
     authorized under subparts 2, 4, and 5 of part A of title IV, 
     to support students across a broad spectrum of disabilities 
     with the successful transition to postsecondary education;
       ``(iii) research-based supports, services, and 
     accommodations which are available in postsecondary settings, 
     including services provided by other agencies such as 
     vocational rehabilitation;
       ``(iv) information on student mentoring and networking 
     opportunities for students with disabilities; and
       ``(v) effective recruitment and transition programs at 
     postsecondary educational institutions.
       ``(B) Assistance to institutions of higher education.--The 
     National Center shall provide information and technical 
     assistance to faculty, staff, and administrators of 
     institutions of higher education to improve the services 
     provided to, the accommodations for, the retention rates of, 
     and the completion rates of, students with disabilities in 
     higher education settings, which may include--
       ``(i) collection and dissemination of best and promising 
     practices and materials for accommodating and supporting 
     students with disabilities, including practices and materials 
     supported by the grants, contracts, or cooperative agreements 
     authorized under subparts 1, 2, and 3;
       ``(ii) development and provision of training modules for 
     higher education faculty on exemplary practices for 
     accommodating and supporting postsecondary students with 
     disabilities across a range of academic fields, which may 
     include universal design for learning and practices supported 
     by the grants, contracts, or cooperative agreements 
     authorized under subparts 1, 2, and 3; and
       ``(iii) development of technology-based tutorials for 
     higher education faculty and staff, including new faculty and 
     graduate students, on best and promising practices related to 
     support and retention of students with disabilities in 
     postsecondary education.
       ``(C) Information collection and dissemination.--The 
     National Center shall be responsible for building, 
     maintaining, and updating a database of disability support 
     services information with respect to institutions of higher 
     education, or for expanding and updating an existing database 
     of disabilities support services information with respect to 
     institutions of higher education. Such database shall be 
     available to the general public through a website built to 
     high technical standards of accessibility practicable for the 
     broad spectrum of individuals with disabilities. Such 
     database and website shall include available information on--
       ``(i) disability documentation requirements;
       ``(ii) support services available;
       ``(iii) links to financial aid;
       ``(iv) accommodations policies;
       ``(v) accessible instructional materials;
       ``(vi) other topics relevant to students with disabilities; 
     and
       ``(vii) the information in the report described in 
     subparagraph (E).
       ``(D) Disability support services.--The National Center 
     shall work with organizations and individuals with proven 
     expertise related to disability support services for 
     postsecondary students with disabilities to evaluate, 
     improve, and disseminate information related to the delivery 
     of high quality disability support services at institutions 
     of higher education.
       ``(E) Review and report.--Not later than three years after 
     the establishment of the National Center, and every two years 
     thereafter, the National Center shall prepare and disseminate 
     a report to the Secretary and the authorizing committees 
     analyzing the condition of postsecondary success for students 
     with disabilities. Such report shall include--
       ``(i) a review of the activities and the effectiveness of 
     the programs authorized under this part;
       ``(ii) annual enrollment and graduation rates of students 
     with disabilities in institutions of higher education from 
     publicly reported data;
       ``(iii) recommendations for effective postsecondary 
     supports and services for students with disabilities, and how 
     such supports and services may be widely implemented at 
     institutions of higher education;
       ``(iv) recommendations on reducing barriers to full 
     participation for students with disabilities in higher 
     education; and
       ``(v) a description of strategies with a demonstrated 
     record of effectiveness in improving the success of such 
     students in postsecondary education.
       ``(F) Staffing of the center.--In hiring employees of the 
     National Center, the National Center shall consider the 
     expertise and experience of prospective employees in 
     providing training and technical assistance to practitioners.
       ``(b) Coordinating Center.--
       ``(1) Definition of eligible entity.--In this subsection, 
     the term `eligible entity' means an entity, or a partnership 
     of entities, that has demonstrated expertise in the fields 
     of--
       ``(A) higher education;
       ``(B) the education of students with intellectual 
     disabilities;
       ``(C) the development of comprehensive transition and 
     postsecondary programs for students with intellectual 
     disabilities; and
       ``(D) evaluation and technical assistance.
       ``(2) In general.--From amounts appropriated under section 
     778, the Secretary shall enter into a cooperative agreement, 
     on a competitive basis, with an eligible entity for the 
     purpose of establishing a coordinating center for 
     institutions of higher education that offer inclusive 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities, including 
     institutions participating in grants authorized under subpart 
     2, to provide--
       ``(A) recommendations related to the development of 
     standards for such programs;
       ``(B) technical assistance for such programs; and
       ``(C) evaluations for such programs.
       ``(3) Administration.--The program under this subsection 
     shall be administered by the office in the Department that 
     administers other postsecondary education programs.
       ``(4) Duration.--The Secretary shall enter into a 
     cooperative agreement under this subsection for a period of 
     five years.
       ``(5) Requirements of cooperative agreement.--The eligible 
     entity entering into a cooperative agreement under this 
     subsection shall establish and maintain a coordinating center 
     that shall--
       ``(A) serve as the technical assistance entity for all 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities;
       ``(B) provide technical assistance regarding the 
     development, evaluation, and continuous improvement of such 
     programs;
       ``(C) develop an evaluation protocol for such programs that 
     includes qualitative and quantitative methodologies for 
     measuring student outcomes and program strengths in the areas 
     of academic enrichment, socialization, independent living, 
     and competitive or supported employment;
       ``(D) assist recipients of grants under subpart 2 in 
     efforts to award a meaningful credential to students with 
     intellectual disabilities upon the completion of such 
     programs, which credential shall take into consideration 
     unique State factors;
       ``(E) develop recommendations for the necessary components 
     of such programs, such as--
       ``(i) academic, vocational, social, and independent living 
     skills;
       ``(ii) evaluation of student progress;
       ``(iii) program administration and evaluation;
       ``(iv) student eligibility; and
       ``(v) issues regarding the equivalency of a student's 
     participation in such programs to semester, trimester, 
     quarter, credit, or clock hours at an institution of higher 
     education, as the case may be;
       ``(F) analyze possible funding streams for such programs 
     and provide recommendations regarding the funding streams;
       ``(G) develop model memoranda of agreement for use between 
     or among institutions of higher education and State and local 
     agencies providing funding for such programs;
       ``(H) develop mechanisms for regular communication, 
     outreach and dissemination of information about comprehensive 
     transition and postsecondary programs for students with 
     intellectual disabilities under subpart 2 between or among 
     such programs and to families and prospective students;
       ``(I) host a meeting of all recipients of grants under 
     subpart 2 not less often than once each year; and
       ``(J) convene a workgroup to develop and recommend model 
     criteria, standards, and components of such programs as 
     described in subparagraph (E), that are appropriate for the 
     development of accreditation standards, which workgroup shall 
     include--
       ``(i) an expert in higher education;
       ``(ii) an expert in special education;
       ``(iii) a disability organization that represents students 
     with intellectual disabilities;
       ``(iv) a representative from the National Advisory 
     Committee on Institutional Quality and Integrity; and
       ``(v) a representative of a regional or national 
     accreditation agency or association.
       ``(6) Report.--Not later than five years after the date of 
     the establishment of the coordinating center under this 
     subsection, the coordinating center shall report to the 
     Secretary, the authorizing committees, and the National 
     Advisory Committee on Institutional Quality and Integrity on 
     the recommendations of the workgroup described in paragraph 
     (5)(J).

     ``SEC. 778. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     subpart such sums as may be necessary for fiscal year 2009 
     and each of the five succeeding fiscal years.''.

     SEC. 710. SUBGRANTS TO NONPROFIT ORGANIZATIONS.

       Section 781 (as redesignated by section 709(1)) (20 U.S.C. 
     1141) is amended--
       (1) in subsection (a), by striking the second sentence and 
     inserting the following: ``In addition to the amount 
     authorized and appropriated under the preceding sentence, 
     there are authorized to be appropriated to carry out this 
     section such sums as may be necessary for fiscal year 2009 
     and each of the five succeeding fiscal years.'';
       (2) in subsection (b)(1), by inserting ``, subject to the 
     availability of appropriations,'' after ``the Secretary 
     shall''; and

[[Page 17173]]

       (3) in subsection (e), by inserting after ``of this Act)'' 
     the following: ``, or those nonprofit organizations that have 
     agreements with the Secretary under section 435(j)''.
                    TITLE VIII--ADDITIONAL PROGRAMS

     SEC. 801. ADDITIONAL PROGRAMS.

       The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) 
     is further amended by adding at the end the following new 
     title:
                   ``TITLE VIII--ADDITIONAL PROGRAMS

                         ``PART A--PROJECT GRAD

     ``SEC. 801. PROJECT GRAD.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to provide support and assistance to programs 
     implementing integrated education reform services in order to 
     improve secondary school graduation, postsecondary program 
     attendance, and postsecondary completion rates for low-income 
     students; and
       ``(2) to promote the establishment of new programs to 
     implement such integrated education reform services.
       ``(b) Definitions.--In this section:
       ``(1) Low-income student.--The term `low-income student' 
     means a student who is determined by a local educational 
     agency to be from a low-income family using the measures 
     described in section 1113(a)(5) of the Elementary and 
     Secondary Education Act of 1965.
       ``(2) Feeder pattern.--The term `feeder pattern' means a 
     secondary school and the elementary schools and middle 
     schools that channel students into that secondary school.
       ``(c) Contract Authorized.--From the amount appropriated to 
     carry out this section, the Secretary is authorized to award 
     a five-year contract to Project GRAD USA (referred to in this 
     section as the `contractor'), a nonprofit education 
     organization that has as its primary purpose the improvement 
     of secondary school graduation and postsecondary attendance 
     and completion rates for low-income students. Such contract 
     shall be used to carry out the requirements of subsection (d) 
     and to implement and sustain integrated education reform 
     services through subcontractor activities described in 
     subsection (e)(3) at existing Project GRAD program sites and 
     to promote the expansion to new sites.
       ``(d) Requirements of Contract.--The Secretary shall enter 
     into an agreement with the contractor that requires that the 
     contractor shall--
       ``(1) enter into subcontracts with nonprofit educational 
     organizations that serve a substantial number or percentage 
     of low-income students (referred to in this subsection as 
     `subcontractors'), under which the subcontractors agree to 
     implement the Project GRAD programs described in subsection 
     (e) and provide matching funds for such programs;
       ``(2) directly carry out--
       ``(A) activities to implement and sustain the literacy, 
     mathematics, classroom management, social service, and 
     postsecondary access programs further described in subsection 
     (e)(3);
       ``(B) activities to build the organizational and management 
     capacity of the subcontractors to effectively implement and 
     sustain the programs;
       ``(C) activities for the purpose of improving and expanding 
     the programs, including activities--
       ``(i) to further articulate a program for one or more grade 
     levels and across grade levels;
       ``(ii) to tailor a program for a particular target 
     audience; and
       ``(iii) to provide tighter integration across programs;
       ``(D) activities for the purpose of implementing new 
     Project GRAD program sites;
       ``(E) activities for the purpose of promoting greater 
     public awareness of integrated education reform services to 
     improve secondary school graduation and postsecondary 
     attendance rates for low-income students; and
       ``(F) other activities directly related to improving 
     secondary school graduation and postsecondary attendance and 
     completion rates for low-income students; and
       ``(3) use contract funds available under this section to 
     pay--
       ``(A) the amount determined under subsection (f); and
       ``(B) costs associated with carrying out the activities and 
     providing the services, as provided in paragraph (2) of this 
     subsection.
       ``(e) Supported Programs.--
       ``(1) Designation.--The subcontractor programs referred to 
     in this subsection shall be known as Project GRAD programs.
       ``(2) Feeder patterns.--Each subcontractor shall implement 
     a Project GRAD program and shall, with the agreement of the 
     contractor--
       ``(A) identify or establish not less than one feeder 
     pattern of public schools; and
       ``(B) provide the integrated educational reform services 
     described in paragraph (3) at each identified feeder pattern.
       ``(3) Integrated education reform services.--The services 
     provided through a Project GRAD program may include--
       ``(A) research-based programs in reading, mathematics, and 
     classroom management;
       ``(B) campus-based social services programs, including a 
     systematic approach to increase family and community 
     involvement in the schools served by the Project GRAD 
     program;
       ``(C) a postsecondary access program that includes--
       ``(i) providing postsecondary scholarships for students who 
     meet established criteria;
       ``(ii) proven approaches for increasing student and family 
     postsecondary awareness; and
       ``(iii) assistance for students in applying for higher 
     education financial aid; and
       ``(D) such other services identified by the contractor as 
     necessary to increase secondary school graduation and 
     postsecondary attendance and completion rates.
       ``(f) Use of Funds.--Of the funds made available to carry 
     out this section, not more than five percent of such funds, 
     or $4,000,000, whichever is less, shall be used by the 
     contractor to pay for administration of the contract.
       ``(g) Contribution and Matching Requirement.--
       ``(1) In general.--The contractor shall provide to each 
     subcontractor an average of $200 for each student served by 
     the subcontractor in the Project GRAD program, adjusted to 
     take into consideration--
       ``(A) the resources or funds available in the area where 
     the subcontractor will implement the Project GRAD program; 
     and
       ``(B) the need for the Project GRAD program in such area to 
     improve student outcomes, including reading and mathematics 
     achievement, secondary school graduation, and postsecondary 
     attendance and completion rates.
       ``(2) Matching requirement.--Each subcontractor shall 
     provide funds for the Project GRAD program in an amount that 
     is equal to the amount received by the subcontractor from the 
     contractor. Such matching funds may be provided in cash or in 
     kind, fairly evaluated.
       ``(3) Waiver authority.--The contractor may waive, in whole 
     or in part, the requirement of paragraph (2) for a 
     subcontractor, if the subcontractor--
       ``(A) demonstrates that the subcontractor would not 
     otherwise be able to participate in the program; and
       ``(B) enters into an agreement with the contractor with 
     respect to the amount to which the waiver will apply.
       ``(h) Evaluation.--
       ``(1) Evaluation by the secretary.--The Secretary shall 
     select an independent entity to evaluate, every three years, 
     the performance of students who participate in a Project GRAD 
     program under this section. The evaluation shall--
       ``(A) be conducted using a rigorous research design for 
     determining the effectiveness of the Project GRAD programs 
     funded under this section; and
       ``(B) compare reading and mathematics achievement, 
     secondary school graduation, and postsecondary attendance and 
     completion rates of students who participate in a Project 
     GRAD program funded under this section with those indicators 
     for students of similar backgrounds who do not participate in 
     such program.
       ``(2) Evaluation by contractor and subcontractors.--The 
     contractor shall require each subcontractor to prepare an in-
     depth report of the results and the use of funds of each 
     Project GRAD program funded under this section that 
     includes--
       ``(A) data on the reading and mathematics achievement of 
     students involved in the Project GRAD program;
       ``(B) data on secondary school graduation and postsecondary 
     attendance and completion rates; and
       ``(C) such financial reporting as required by the Secretary 
     to review the effectiveness and efficiency of the program.
       ``(3) Availability of evaluations.--Copies of any 
     evaluation or report prepared under this subsection shall be 
     made available to--
       ``(A) the Secretary; and
       ``(B) the authorizing committees.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

           ``PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

     ``SEC. 802. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

       ``(a) Program Authorized.--From the amounts appropriated 
     under subsection (f), the Secretary is authorized to award 
     grants to States, on a competitive basis, to enable the 
     States to encourage students to pursue a rigorous course of 
     study, beginning in secondary school and continuing through 
     the students' postsecondary education, in science, 
     technology, engineering, mathematics, or a health-related 
     field.
       ``(b) Applications.--
       ``(1) In general.--A State that desires a grant under this 
     section shall submit an application to the Secretary at such 
     time, in such manner, and containing such information as the 
     Secretary may require. A State may submit an application to 
     receive a grant under subsection (c) or (d), or both.
       ``(2) Contents of application.--Each application shall 
     include a description of--
       ``(A) the program or programs for which the State is 
     applying;
       ``(B) if applicable, the priority set by the Governor 
     pursuant to subsection (c)(4) or (d)(3); and
       ``(C) how the State will meet the requirements of 
     subsection (e).
       ``(c) Mathematics and Science Scholars Program.--
       ``(1) Grant for scholarships.--The Secretary shall award 
     grants under this subsection to provide scholarship support 
     to eligible students.
       ``(2) Eligible students.--A student is eligible for a 
     scholarship under this subsection if the student--
       ``(A) meets the requirements of section 484(a);
       ``(B) is a full-time student in the student's first year of 
     undergraduate study; and

[[Page 17174]]

       ``(C) has completed a rigorous secondary school curriculum 
     in mathematics and science.
       ``(3) Rigorous curriculum.--Each participating State shall 
     determine the requirements for a rigorous secondary school 
     curriculum in mathematics and science described in paragraph 
     (2)(C).
       ``(4) Priority for scholarships.--The Governor of a State 
     may set a priority for awarding scholarships under this 
     subsection for particular eligible students, such as students 
     attending schools in high-need local educational agencies (as 
     defined in section 200), students who are from groups 
     underrepresented in the fields of mathematics, science, and 
     engineering, students served by local educational agencies 
     that do not meet or exceed State standards in mathematics and 
     science, or other high-need students.
       ``(5) Amount and duration of scholarship.--The Secretary 
     shall award a grant under this subsection to provide 
     scholarships--
       ``(A) in an amount that does not exceed $5,000 per student; 
     and
       ``(B) for not more than one year of undergraduate study.
       ``(d) STEM or Health-Related Scholars Program.--
       ``(1) Grant for scholarships.--The Secretary shall award 
     grants under this subsection to provide scholarship support 
     to eligible students.
       ``(2) Eligible students.--A student is eligible for 
     scholarship under this subsection if the student--
       ``(A) meets the requirements of section 484(a);
       ``(B) is a full-time student who has completed at least the 
     first year of undergraduate study;
       ``(C) is enrolled in a program of undergraduate instruction 
     leading to a bachelor's degree with a major in science, 
     technology, engineering, mathematics, or a health-related 
     field; and
       ``(D) has obtained a cumulative grade point average of at 
     least a 3.0 (or the equivalent as determined under regulation 
     prescribed by the Secretary) at the end of the most recently 
     completed term.
       ``(3) Priority for scholarships.--The Governor of a State 
     may set a priority for awarding scholarships under this 
     subsection for students agreeing to work in areas of science, 
     technology, engineering, mathematics, or health-related 
     fields.
       ``(4) Amount and duration of scholarship.--The Secretary 
     shall award a grant under this subsection to provide 
     scholarships--
       ``(A) in an amount that does not exceed $5,000 per student 
     for an academic year; and
       ``(B) in an aggregate amount that does not exceed $20,000 
     per student.
       ``(e) Matching Requirement.--In order to receive a grant 
     under this section, a State shall provide matching funds for 
     the scholarships awarded under this section in an amount 
     equal to 50 percent of the Federal funds received.
       ``(f) Authorization.--There are authorized to be 
     appropriated to carry out this section such sums as may be 
     necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.
       ``(g) Definition.--The term `Governor' means the chief 
     executive officer of a State.

  ``PART C--BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL TRAINING IN 
                 HIGH-GROWTH OCCUPATIONS OR INDUSTRIES

     ``SEC. 803. BUSINESS WORKFORCE PARTNERSHIPS FOR JOB SKILL 
                   TRAINING IN HIGH-GROWTH OCCUPATIONS OR 
                   INDUSTRIES.

       ``(a) Purpose.--The purpose of this section is to provide 
     grants to institutions of higher education partnering with 
     employers to--
       ``(1) provide relevant job skill training in high-growth 
     and high-wage industries or occupations to nontraditional 
     students; and
       ``(2) strengthen ties between degree credit offerings at 
     institutions of higher education and business and industry 
     workforce needs.
       ``(b) Authorization.--
       ``(1) In general.--From the amounts appropriated under 
     subsection (k), the Secretary shall award grants, on a 
     competitive basis, to eligible partnerships for the purpose 
     provided in subsection (a).
       ``(2) Duration.--The Secretary shall award grants under 
     this section for a period of not less than 36 months and not 
     more than 60 months.
       ``(3) Supplement, not supplant.--Funds made available under 
     this section shall be used to supplement, and not supplant, 
     other Federal, State, and local funds available to the 
     eligible partnership for carrying out the activities 
     described in subsection (c).
       ``(c) Use of Funds.--In consultation with all of the 
     members of an eligible partnership, grant funds provided 
     under this section may be used to--
       ``(1) expand or create for-credit academic programs or 
     programs of training that provide relevant job skill training 
     for high-growth and high-wage occupations or industries, 
     including offerings connected to registered apprenticeship 
     programs and entrepreneurial training opportunities;
       ``(2) in consultation with faculty in the appropriate 
     departments of an institution of higher education, adapt 
     college offerings to the schedules and needs of working 
     students, such as the creation of evening, weekend, modular, 
     compressed, or distance learning formats;
       ``(3) purchase equipment that will facilitate the 
     development of academic programs or programs of training that 
     provide training for high-growth and high-wage occupations or 
     industries;
       ``(4) strengthen outreach efforts that enable students, 
     including students with limited English proficiency, to 
     attend institutions of higher education with academic 
     programs or programs of training focused on high-growth and 
     high-wage occupations or industries;
       ``(5) expand worksite learning and training opportunities, 
     including registered apprenticeships as appropriate; and
       ``(6) support other activities the Secretary determines to 
     be consistent with the purpose of this section.
       ``(d) Application.--
       ``(1) In general.--Each eligible partnership that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such additional information as the Secretary may require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of--
       ``(A) how the eligible partnership, through the institution 
     of higher education, will provide relevant job skill training 
     for students to enter high-growth and high-wage occupations 
     or industries; and
       ``(B) how the eligible partnership has consulted with 
     employers and, where applicable, labor organizations to 
     identify local high-growth and high-wage occupations or 
     industries.
       ``(e) Award Basis.--In awarding grants under this section, 
     the Secretary shall--
       ``(1) give priority to applications focused on serving 
     nontraditional students;
       ``(2) ensure an equitable distribution of grant funds under 
     this section among urban and rural areas of the United 
     States; and
       ``(3) take into consideration the capability of an 
     institution of higher education that is participating in an 
     eligible partnership to--
       ``(A) offer one- or two-year high-quality programs of 
     instruction and job skill training for students entering a 
     high-growth and high-wage occupation or industry;
       ``(B) involve the local business community, and to place 
     graduates in employment in high-growth and high-wage 
     occupations or industries in the community; and
       ``(C) serve adult workers or displaced workers.
       ``(f) Administrative Costs.--A grantee under this section 
     may use not more than five percent of the grant amount to pay 
     administrative costs associated with activities funded by the 
     grant.
       ``(g) Technical Assistance.--The Secretary shall provide 
     technical assistance to grantees under this section 
     throughout the grant period.
       ``(h) Evaluation.--The Secretary shall conduct an 
     evaluation of the effectiveness of the program under this 
     section based on performance standards developed in 
     consultation with the Department of Labor, and shall 
     disseminate to the public the findings of such evaluation and 
     information related to promising practices developed under 
     this section.
       ``(i) Report to Congress.--Not later than 36 months after 
     the first grant is awarded under this section, the 
     Comptroller General shall report to the authorizing 
     committees recommendations--
       ``(1) for changes to this Act and related Acts, such as the 
     Carl D. Perkins Career and Technical Education Act of 2006 
     and the Workforce Investment Act of 1998 (including titles I 
     and II), to help create and sustain business and industry 
     workforce partnerships at institutions of higher education; 
     and
       ``(2) for other changes to this Act and related Acts to 
     otherwise strengthen the links between business and industry 
     workforce needs, workforce development programs, and other 
     degree credit offerings at institutions of higher education.
       ``(j) Definitions.--In this section:
       ``(1) Eligible partnership.--
       ``(A) In general.--The term `eligible partnership' means a 
     partnership that includes--
       ``(i) one or more institutions of higher education, one of 
     which serves as the fiscal agent and grant recipient for the 
     eligible partnership;
       ``(ii) except as provided in subparagraph (B), an employer, 
     group of employers, local board (as such term is defined in 
     section 101 of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801)), or workforce intermediary, or any combination 
     thereof; and
       ``(iii) where applicable, one or more labor organizations 
     that represent workers locally in the businesses or 
     industries that are the focus of the partnership, including 
     as a result of such an organization's representation of 
     employees at a worksite at which the partnership proposes to 
     conduct activities under this section.
       ``(B) State and local boards.--Notwithstanding subparagraph 
     (A), if an institution of higher education that is 
     participating in an eligible partnership under this section 
     is located in a State that does not operate local boards, an 
     eligible partnership may include a State board (as such term 
     is defined in section 101 of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801)).
       ``(C) Rule of construction.--Nothing in this subsection 
     shall be construed to prohibit an eligible partnership that 
     is in existence on the date of enactment of the Higher 
     Education Opportunity Act from applying for a grant under 
     this section.
       ``(2) Nontraditional student.--The term `nontraditional 
     student' means a student--
       ``(A) who is an independent student, as defined in section 
     480(d);
       ``(B) who attends an institution of higher education--
       ``(i) on less than a full-time basis;
       ``(ii) via evening, weekend, modular, or compressed 
     courses; or
       ``(iii) via distance education methods; and
       ``(C) who--
       ``(i) enrolled for the first time in an institution of 
     higher education three or more years after completing high 
     school; or

[[Page 17175]]

       ``(ii) works full-time.
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

          ``PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY

     ``SEC. 804. CAPACITY FOR NURSING STUDENTS AND FACULTY.

       ``(a) Authorization.--From the amounts appropriated under 
     subsection (f), the Secretary shall award grants to 
     institutions of higher education that offer--
       ``(1) an accredited registered nursing program at the 
     baccalaureate or associate degree level to enable such 
     program to expand the faculty and facilities of such program 
     to accommodate additional students in such program; or
       ``(2) an accredited graduate-level nursing program to 
     accommodate advanced practice degrees for registered nurses 
     or to accommodate students enrolled in such program to become 
     teachers of nursing students.
       ``(b) Determination of Number of Students and 
     Application.--Each institution of higher education that 
     offers a program described in subsection (a) that desires to 
     receive a grant under this section shall--
       ``(1) determine, for the four academic years preceding the 
     academic year for which the determination is made, the 
     average number of matriculated nursing program students, in 
     each of the institution's accredited associate, 
     baccalaureate, or advanced nursing degree programs at such 
     institution for such academic years;
       ``(2) submit an application to the Secretary at such time, 
     in such manner, and accompanied by such information as the 
     Secretary may require, including the average number in each 
     of the institution's accredited nursing programs determined 
     under paragraph (1); and
       ``(3) with respect to the partnerships described in 
     subsection (c)(2)(B), provide assurances that--
       ``(A) the individuals enrolled in the program will--
       ``(i) be registered nurses in pursuit of a master's or 
     doctoral degree in nursing; and
       ``(ii) have a contractual obligation with the hospital or 
     health facility that is in partnership with the institution 
     of higher education;
       ``(B) the hospital or health facility of employment will be 
     the clinical site for the accredited school of nursing 
     program, if the program requires a clinical site;
       ``(C) individuals enrolled in the program will--
       ``(i) maintain their employment on at least a part-time 
     basis with the hospital or health facility that allowed them 
     to participate in the program; and
       ``(ii) receive an income from the hospital or health 
     facility, as at least a part-time employee, and release times 
     or flexible schedules, to accommodate their program 
     requirements, as necessary; and
       ``(D) upon completion of the program, recipients of 
     scholarships described in subsection (c)(2)(B)(ii)(III) will 
     be required to teach for two years in an accredited school of 
     nursing for each year of support the individual received 
     under this section.
       ``(c) Grant Amount; Award Basis.--
       ``(1) Grant amount.--For each academic year after academic 
     year 2009-2010, the Secretary is authorized to provide to 
     each institution of higher education awarded a grant under 
     this section an amount that is equal to $3,000 multiplied by 
     the number by which--
       ``(A) the number of matriculated nursing program students 
     at such institution for such academic year, exceeds
       ``(B) the average number determined with respect to such 
     institution under subsection (b)(1).
       ``(2) Distribution of grants among different degree 
     programs.--
       ``(A) In general.--Subject to subparagraph (D), from the 
     funds available to award grants under this section for each 
     fiscal year, the Secretary shall--
       ``(i) use 20 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of accommodating advanced practice degrees or 
     students in accredited graduate-level nursing programs;
       ``(ii) use 40 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of expanding accredited registered nurse programs at 
     the baccalaureate degree level; and
       ``(iii) use 40 percent of such funds to award grants under 
     this section to institutions of higher education for the 
     purpose of expanding accredited registered nurse programs at 
     the associate degree level.
       ``(B) Optional uses of funds.--Grants awarded under this 
     section may be used to support partnerships with hospitals or 
     health facilities to--
       ``(i) improve the alignment between nursing education and 
     the emerging challenges of health care delivery by--

       ``(I) the purchase of distance learning technologies and 
     expanding methods of delivery of instruction to include 
     alternatives to onsite learning; and
       ``(II) the collection, analysis, and dissemination of data 
     on educational outcomes and best practices identified through 
     the activities described in this section; and

       ``(ii) ensure that students can earn a salary while 
     obtaining an advanced degree in nursing with the goal of 
     becoming nurse faculty by--

       ``(I) funding release time for qualified nurses enrolled in 
     the graduate nursing program;
       ``(II) providing for faculty salaries; or
       ``(III) providing scholarships to qualified nurses in 
     pursuit of an advanced degree with the goal of becoming 
     faculty members in an accredited nursing program.

       ``(C) Considerations in making awards.--In awarding grants 
     under this section, the Secretary shall consider the 
     following:
       ``(i) Geographic distribution.--Providing an equitable 
     geographic distribution of such grants.
       ``(ii) Urban and rural areas.--Distributing such grants to 
     urban and rural areas.
       ``(iii) Range and type of institution.--Ensuring that the 
     activities to be assisted are developed for a range of types 
     and sizes of institutions of higher education, including 
     institutions providing alternative methods of delivery of 
     instruction in addition to on-site learning.
       ``(D) Distribution of excess funds.--If, for a fiscal year, 
     funds described in clause (i), (ii), or (iii) of subparagraph 
     (A) remain available after the Secretary awards grants under 
     this section to all applicants for the particular category of 
     accredited nursing programs described in such clause, the 
     Secretary shall use equal amounts of the remaining funds to 
     award grants under this section to applicants that applied 
     under the other categories of nursing programs.
       ``(E) Limitation.--Of the amount appropriated to carry out 
     this section, the Secretary may award not more than ten 
     percent of such amount for the optional purposes under 
     subparagraph (B).
       ``(d) Definition.--For purposes of this section:
       ``(1) Health facility.--The term `health facility' means an 
     Indian health service center, a Native Hawaiian health 
     center, a hospital, a federally qualified health center, a 
     rural health clinic, a nursing home, a home health agency, a 
     hospice program, a public health clinic, a State or local 
     department of public health, a skilled nursing facility, or 
     an ambulatory surgical center.
       ``(2) Accredited.--The terms `accredited school of nursing' 
     and `accredited nursing program' have the meaning given those 
     terms in section 801 of the Public Health Service Act (42 
     U.S.C. 296).
       ``(e) Prohibition.--
       ``(1) In general.--Funds provided under this section may 
     not be used for the construction of new facilities.
       ``(2) Rule of construction.--Nothing in paragraph (1) shall 
     be construed to prohibit funds provided under this section 
     from being used for the repair or renovation of facilities.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

                 ``PART E--AMERICAN HISTORY FOR FREEDOM

     ``SEC. 805. AMERICAN HISTORY FOR FREEDOM.

       ``(a) Grants Authorized.--From the amounts appropriated 
     under subsection (f), the Secretary is authorized to award 
     three-year grants, on a competitive basis, to eligible 
     institutions to establish or strengthen postsecondary 
     academic programs or centers that promote and impart 
     knowledge of--
       ``(1) traditional American history;
       ``(2) the history and nature of, and threats to, free 
     institutions; or
       ``(3) the history and achievements of Western civilization.
       ``(b) Definitions.--In this section:
       ``(1) Eligible institution.--The term `eligible 
     institution' means an institution of higher education as 
     defined in section 101.
       ``(2) Free institution.--The term `free institution' means 
     an institution that emerged out of Western civilization, such 
     as democracy, constitutional government, individual rights, 
     market economics, religious freedom and religious tolerance, 
     and freedom of thought and inquiry.
       ``(3) Traditional american history.--The term `traditional 
     American history' means--
       ``(A) the significant constitutional, political, 
     intellectual, economic, and foreign policy trends and issues 
     that have shaped the course of American history; and
       ``(B) the key episodes, turning points, and leading figures 
     involved in the constitutional, political, intellectual, 
     diplomatic, and economic history of the United States.
       ``(c) Application.--
       ``(1) In general.--Each eligible institution that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall include a description of--
       ``(A) how funds made available under this section will be 
     used for the activities set forth under subsection (e), 
     including how such activities will increase knowledge with 
     respect to traditional American history, free institutions, 
     or Western civilization;
       ``(B) how the eligible institution will ensure that 
     information about the activities funded under this section is 
     widely disseminated pursuant to subsection (e)(1)(B);
       ``(C) any activities to be undertaken pursuant to 
     subsection (e)(2)(A), including identification of entities 
     intended to participate;
       ``(D) how funds made available under this section shall be 
     used to supplement and not supplant non-Federal funds 
     available for the activities described in subsection (e); and
       ``(E) such fiscal controls and accounting procedures as may 
     be necessary to ensure proper disbursement of and accounting 
     for funding made available to the eligible institution under 
     this section.

[[Page 17176]]

       ``(d) Award Basis.--In awarding grants under this section, 
     the Secretary shall take into consideration the capability of 
     the eligible institution to--
       ``(1) increase access to quality programming that expands 
     knowledge of traditional American history, free institutions, 
     or Western civilization;
       ``(2) involve personnel with strong expertise in 
     traditional American history, free institutions, or Western 
     civilization; and
       ``(3) sustain the activities funded under this section 
     after the grant has expired.
       ``(e) Use of Funds.--
       ``(1) Required use of funds.--Funds provided under this 
     section shall be used to--
       ``(A) establish or strengthen academic programs or centers 
     focused on traditional American history, free institutions, 
     or Western civilization, which may include--
       ``(i) design and implementation of programs of study, 
     courses, lecture series, seminars, and symposia;
       ``(ii) development, publication, and dissemination of 
     instructional materials;
       ``(iii) research;
       ``(iv) support for faculty teaching in undergraduate and, 
     if applicable, graduate programs;
       ``(v) support for graduate and postgraduate fellowships, if 
     applicable; or
       ``(vi) teacher preparation initiatives that stress content 
     mastery regarding traditional American history, free 
     institutions, or Western civilization; and
       ``(B) conduct outreach activities to ensure that 
     information about the activities funded under this section is 
     widely disseminated--
       ``(i) to undergraduate students (including students 
     enrolled in teacher education programs, if applicable);
       ``(ii) to graduate students (including students enrolled in 
     teacher education programs, if applicable);
       ``(iii) to faculty;
       ``(iv) to local educational agencies; and
       ``(v) within the local community.
       ``(2) Allowable uses of funds.--Funds provided under this 
     section may be used to support--
       ``(A) collaboration with entities such as--
       ``(i) local educational agencies, for the purpose of 
     providing elementary and secondary school teachers an 
     opportunity to enhance their knowledge of traditional 
     American history, free institutions, or Western civilization; 
     and
       ``(ii) nonprofit organizations whose mission is consistent 
     with the purpose of this section, such as academic 
     organizations, museums, and libraries, for assistance in 
     carrying out activities described under subsection (a); and
       ``(B) other activities that meet the purposes of this 
     section.
       ``(f) Authorization of Appropriations.--For the purpose of 
     carrying out this section, there are authorized to be 
     appropriated such sums as may be necessary for fiscal year 
     2009 and each of the five succeeding fiscal years.

                      ``PART F--TEACH FOR AMERICA

     ``SEC. 806. TEACH FOR AMERICA.

       ``(a) Definitions.--For purposes of this section:
       ``(1) Grantee.--The term `grantee' means Teach For America, 
     Inc.
       ``(2) Highly qualified.--The term `highly qualified' has 
     the meaning given the term in section 9101 of the Elementary 
     and Secondary Education Act of 1965 or section 602 of the 
     Individuals with Disabilities Education Act.
       ``(3) High-need local educational agency.--The term `high-
     need local educational agency' has the meaning given such 
     term in section 200.
       ``(b) Grants Authorized.--From the amounts appropriated 
     under subsection (f), the Secretary is authorized to award a 
     five-year grant to Teach For America, Inc., the national 
     teacher corps of outstanding recent college graduates who 
     commit to teach for two years in underserved communities in 
     the United States, to implement and expand its program of 
     recruiting, selecting, training, and supporting new teachers.
       ``(c) Requirements.--In carrying out the grant program 
     under subsection (b), the Secretary shall enter into an 
     agreement with the grantee under which the grantee agrees to 
     use the grant funds provided under this section to--
       ``(1) provide highly qualified teachers to high-need local 
     educational agencies in urban and rural communities;
       ``(2) pay the costs of recruiting, selecting, training, and 
     supporting new teachers; and
       ``(3) serve a substantial number and percentage of 
     underserved students.
       ``(d) Authorized Activities.--
       ``(1) In general.--Grant funds provided under this section 
     shall be used by the grantee to carry out each of the 
     following activities:
       ``(A) Recruiting and selecting teachers through a highly 
     selective national process.
       ``(B) Providing preservice training to such teachers 
     through a rigorous summer institute that includes hands-on 
     teaching experience and significant exposure to education 
     coursework and theory.
       ``(C) Placing such teachers in schools and positions 
     designated by high-need local educational agencies as high-
     need placements serving underserved students.
       ``(D) Providing ongoing professional development activities 
     for such teachers' first two years in the classroom, 
     including regular classroom observations and feedback, and 
     ongoing training and support.
       ``(2) Limitation.--The grantee shall use all grant funds 
     received under this section to support activities related 
     directly to the recruitment, selection, training, and support 
     of teachers as described in subsection (b), except that funds 
     may be used for non-programmatic costs in accordance with 
     subsection (f)(2).
       ``(e) Reports and Evaluations.--
       ``(1) Annual report.--The grantee shall provide to the 
     Secretary an annual report that includes--
       ``(A) data on the number and quality of the teachers 
     provided to local educational agencies through a grant under 
     this section;
       ``(B) an externally conducted analysis of the satisfaction 
     of local educational agencies and principals with the 
     teachers so provided; and
       ``(C) comprehensive data on the background of the teachers 
     chosen, the training such teachers received, the placement 
     sites of such teachers, the professional development of such 
     teachers, and the retention of such teachers.
       ``(2) Study.--
       ``(A) In general.--From funds appropriated under subsection 
     (f), the Secretary shall provide for a study that examines 
     the achievement levels of the students taught by the teachers 
     assisted under this section.
       ``(B) Student achievement gains compared.--The study shall 
     compare, within the same schools, the achievement gains made 
     by students taught by teachers who are assisted under this 
     section with the achievement gains made by students taught by 
     teachers who are not assisted under this section.
       ``(C) Requirements.--The Secretary shall provide for such a 
     study not less than once every three years, and each such 
     study shall include multiple placement sites and multiple 
     schools within placement sites.
       ``(D) Peer review standards.--Each such study shall meet 
     the peer review standards of the education research 
     community. Further, the peer review standards shall ensure 
     that reviewers are practicing researchers and have expertise 
     in assessment systems, accountability, psychometric 
     measurement and statistics, and instruction.
       ``(3) Accounting, financial reporting, and internal control 
     systems.--
       ``(A) In general.--The grantee shall contract with an 
     independent auditor to conduct a comprehensive review of the 
     grantee's accounting, financial reporting, and internal 
     control systems. Such review shall assess whether that 
     grantee's accounting, financial reporting, and internal 
     control systems are designed to--
       ``(i) provide information that is complete, accurate, and 
     reliable;
       ``(ii) reasonably detect and prevent material 
     misstatements, as well as fraud, waste, and abuse; and
       ``(iii) provide information to demonstrate the grantee's 
     compliance with related Federal programs, as applicable.
       ``(B) Review requirements.--Not later than 90 days after 
     the grantee receives funds to carry out this section for the 
     first fiscal year in which funds become available to carry 
     out this section after the date of enactment of the Higher 
     Education Opportunity Act, the independent auditor shall 
     complete the review required by this paragraph.
       ``(C) Report.--Not later than 120 days after the grantee 
     receives funds to carry out this section for the first fiscal 
     year in which funds become available to carry out this 
     section after the date of enactment of the Higher Education 
     Opportunity Act, the independent auditor shall submit a 
     report to the authorizing committees and the Secretary of the 
     findings of the review required under this paragraph, 
     including any recommendations of the independent auditor, as 
     appropriate, with respect to the grantee's accounting, 
     financial reporting, and internal control systems.
       ``(f) Authorization of Appropriations.--
       ``(1) In general.--The amount authorized to be appropriated 
     to carry out this section shall not exceed--
       ``(A) $20,000,000 for fiscal year 2009;
       ``(B) $25,000,000 for fiscal year 2010; and
       ``(C) such sums as may be necessary for each of the four 
     succeeding fiscal years.
       ``(2) Limitation.--The grantee shall not use more than 5 
     percent of Federal funds made available under this section 
     for non-programmatic costs to carry out this section.

               ``PART G--PATSY T. MINK FELLOWSHIP PROGRAM

     ``SEC. 807. PATSY T. MINK FELLOWSHIP PROGRAM.

       ``(a) Purpose; Designation.--
       ``(1) In general.--It is the purpose of this section to 
     provide, through eligible institutions, a program of 
     fellowship awards to assist highly qualified minorities and 
     women to acquire the doctoral degree, or highest possible 
     degree available, in academic areas in which such individuals 
     are underrepresented for the purpose of enabling such 
     individuals to enter the higher education professoriate.
       ``(2) Designation.--Each recipient of a fellowship award 
     from an eligible institution receiving a grant under this 
     section shall be known as a `Patsy T. Mink Graduate Fellow'.
       ``(b) Eligible Institution.--In this section, the term 
     `eligible institution' means an institution of higher 
     education, or a consortium of such institutions, that offers 
     a program of postbaccalaureate study leading to a graduate 
     degree.
       ``(c) Program Authorized.--
       ``(1) Grants by secretary.--
       ``(A) In general.--From the amounts appropriated under 
     subsection (f), the Secretary shall award grants to eligible 
     institutions to enable such institutions to make fellowship 
     awards to individuals in accordance with the provisions of 
     this section.

[[Page 17177]]

       ``(B) Priority consideration.--In awarding grants under 
     this section, the Secretary shall consider the eligible 
     institution's prior experience in producing doctoral degree, 
     or highest possible degree available, holders who are 
     minorities and women, and shall give priority consideration 
     in making grants under this section to those eligible 
     institutions with a demonstrated record of producing 
     minorities and women who have earned such degrees.
       ``(2) Applications.--
       ``(A) In general.--An eligible institution that desires a 
     grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(B) Applications made on behalf.--The following entities 
     may submit an application on behalf of an eligible 
     institution:
       ``(i) A graduate school or department of such institution.
       ``(ii) A graduate school or department of such institution 
     in collaboration with an undergraduate college or school of 
     such institution.
       ``(iii) An organizational unit within such institution that 
     offers a program of postbaccalaureate study leading to a 
     graduate degree, including an interdisciplinary or an 
     interdepartmental program.
       ``(C) Partnership.--In developing a grant application and 
     carrying out the grant activities authorized under this 
     section, an eligible institution may partner with a nonprofit 
     organization with a demonstrated record of helping minorities 
     and women earn postbaccalaureate degrees.
       ``(3) Selection of applications.--In awarding grants under 
     paragraph (1), the Secretary shall--
       ``(A) take into account--
       ``(i) the number and distribution of minority and female 
     faculty nationally;
       ``(ii) the current and projected need for highly trained 
     individuals in all areas of the higher education 
     professoriate; and
       ``(iii) the present and projected need for highly trained 
     individuals in academic career fields in which minorities and 
     women are underrepresented in the higher education 
     professoriate; and
       ``(B) consider the need to prepare a large number of 
     minorities and women generally in academic career fields of 
     high national priority, especially in areas in which such 
     individuals are traditionally underrepresented in college and 
     university faculty.
       ``(4) Distribution and amounts of grants.--
       ``(A) Equitable distribution.--In awarding grants under 
     this section, the Secretary shall, to the maximum extent 
     feasible, ensure an equitable geographic distribution of 
     awards and an equitable distribution among public and private 
     eligible institutions that apply for grants under this 
     section and that demonstrate an ability to achieve the 
     purpose of this section.
       ``(B) Special rule.--To the maximum extent practicable, the 
     Secretary shall use not less than 30 percent of the amount 
     appropriated pursuant to subsection (f) to award grants to 
     eligible institutions that are eligible for assistance under 
     title III or title V, or to consortia of eligible 
     institutions that include at least one eligible institution 
     that is eligible for assistance under title III or title V.
       ``(C) Allocation.--In awarding grants under this section, 
     the Secretary shall allocate appropriate funds to those 
     eligible institutions whose applications indicate an ability 
     to significantly increase the numbers of minorities and women 
     entering the higher education professoriate and that commit 
     institutional resources to the attainment of the purpose of 
     this section.
       ``(D) Number of fellowship awards.--An eligible institution 
     that receives a grant under this section shall make not less 
     than ten fellowship awards.
       ``(E) Insufficient funds.--If the amount appropriated is 
     not sufficient to permit all grantees under this section to 
     provide the minimum number of fellowships required by 
     subparagraph (D), the Secretary may, after awarding as many 
     grants to support the minimum number of fellowships as such 
     amount appropriated permits, award grants that do not require 
     the grantee to award the minimum number of fellowships 
     required by such subparagraph.
       ``(5) Institutional allowance.--
       ``(A) In general.--
       ``(i) Number of allowances.--In awarding grants under this 
     section, the Secretary shall pay to each eligible institution 
     awarded a grant, for each individual awarded a fellowship by 
     such institution under this section, an institutional 
     allowance.
       ``(ii) Amount.--Except as provided in subparagraph (C), for 
     academic year 2009-2010 and succeeding academic years, an 
     institutional allowance under this paragraph shall be in an 
     amount equal to the amount of institutional allowance made to 
     an institution of higher education under section 715 for such 
     academic year.
       ``(B) Use of funds.--Institutional allowances may be 
     expended at the discretion of the eligible institution and 
     may be used to provide, except as prohibited under 
     subparagraph (D), academic support and career transition 
     services for individuals awarded fellowships by such 
     institution.
       ``(C) Reduction.--The institutional allowance paid under 
     subparagraph (A) shall be reduced by the amount the eligible 
     institution charges and collects from a fellowship recipient 
     for tuition and other expenses as part of the recipient's 
     instructional program.
       ``(D) Use for overhead prohibited.--Funds made available 
     under this section may not be used for general operational 
     overhead of the academic department or institution receiving 
     funds under this section.
       ``(d) Fellowship Recipients.--
       ``(1) Authorization.--An eligible institution that receives 
     a grant under this section shall use the grant funds to make 
     fellowship awards to minorities and women who are enrolled at 
     such institution in a doctoral degree program, or program for 
     the highest possible degree available, and--
       ``(A) intend to pursue a career in instruction at--
       ``(i) an institution of higher education (as the term is 
     defined in section 101);
       ``(ii) an institution of higher education (as the term is 
     defined in section 102(a)(1)); and
       ``(iii) a proprietary institution of higher education (as 
     the term is defined in section 102(b)); and
       ``(B) sign an agreement with the Secretary agreeing--
       ``(i) to begin employment at an institution described in 
     subparagraph (A) not later than three years after receiving 
     the doctoral degree or highest possible degree available, 
     which three-year period may be extended by the Secretary for 
     extraordinary circumstances; and
       ``(ii) to be employed by such institution for one year for 
     each year of fellowship assistance received under this 
     section.
       ``(2) Repayment for failure to comply.--In the event that 
     any recipient of a fellowship under this section fails or 
     refuses to comply with the agreement signed pursuant to 
     paragraph (1)(B), the sum of the amounts of any fellowship 
     received by such recipient shall, upon a determination of 
     such a failure or refusal to comply, be treated as a Federal 
     Direct Unsubsidized Stafford Loan under part D of title IV, 
     and shall be subject to repayment, together with interest 
     thereon accruing from the date of the grant award, in 
     accordance with terms and conditions specified by the 
     Secretary in regulations under this section.
       ``(3) Waiver and modification.--
       ``(A) Regulations.--The Secretary shall promulgate 
     regulations setting forth criteria to be considered in 
     granting a waiver for the service requirement under paragraph 
     (1)(B).
       ``(B) Content.--The criteria under subparagraph (A) shall 
     include whether compliance with the service requirement by 
     the fellowship recipient would be--
       ``(i) inequitable and represent an extraordinary hardship; 
     or
       ``(ii) deemed impossible because the individual is 
     permanently and totally disabled at the time of the waiver 
     request.
       ``(4) Amount of fellowship awards.--Fellowship awards under 
     this section shall consist of a stipend in an amount equal to 
     the level of support provided to fellows under the National 
     Science Foundation Graduate Research Fellowship Program, 
     except that such stipend shall be adjusted as necessary so as 
     not to exceed the fellow's tuition and fees or demonstrated 
     need (as determined by the institution of higher education 
     where the graduate student is enrolled), whichever is 
     greater.
       ``(5) Academic progress required.--An individual student 
     shall not be eligible to receive a fellowship award--
       ``(A) except during periods in which such student is 
     enrolled, and such student is maintaining satisfactory 
     academic progress in, and devoting essentially full time to, 
     study or research in the pursuit of the degree for which the 
     fellowship support was awarded; and
       ``(B) if the student is engaged in gainful employment, 
     other than part-time employment in teaching, research, or 
     similar activity determined by the eligible institution to be 
     consistent with and supportive of the student's progress 
     toward the appropriate degree.
       ``(e) Rule of Construction.--Nothing in this section shall 
     be construed to require an eligible institution that receives 
     a grant under this section--
       ``(1) to grant a preference to or to differentially treat 
     any applicant for a faculty position as a result of the 
     institution's participation in the program under this 
     section; or
       ``(2) to hire a Patsy T. Mink Fellow who completes this 
     program and seeks employment at such institution.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

      ``PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

     ``SEC. 808. IMPROVING COLLEGE ENROLLMENT BY SECONDARY 
                   SCHOOLS.

       ``(a) In General.--From the amounts appropriated under 
     subsection (c), the Secretary shall award a grant to one 
     nonprofit organization described in subsection (b) to enable 
     the nonprofit organization--
       ``(1) to make publicly available the year-to-year 
     postsecondary education enrollment rate trends of secondary 
     school students, disaggregated by secondary school, in 
     compliance with the Family Education Rights and Privacy Act 
     of 1974;
       ``(2) to identify not less than 50 urban local educational 
     agencies and five States with significant rural populations, 
     each serving a significant population of low-income students, 
     and to carry out a comprehensive assessment in the agencies 
     and States of the factors known to contribute to improved 
     postsecondary education enrollment rates, which factors shall 
     include--
       ``(A) the local educational agency's and State's leadership 
     strategies and capacities;
       ``(B) the secondary school curriculum and class offerings 
     of the local educational agency and State;

[[Page 17178]]

       ``(C) the professional development used by the local 
     educational agency and the State to assist teachers, guidance 
     counselors, and administrators in supporting the transition 
     of secondary students to postsecondary education;
       ``(D) secondary school student attendance and other factors 
     demonstrated to be associated with enrollment into 
     postsecondary education;
       ``(E) the use of data systems by the local educational 
     agency and the State to measure postsecondary education 
     enrollment rates and the incentives in place to motivate the 
     efforts of faculty and students to improve student and 
     schoolwide outcomes; and
       ``(F) strategies to mobilize student leaders to build a 
     college-bound culture; and
       ``(3) to provide comprehensive services to improve the 
     schoolwide postsecondary education enrollment rates of each 
     of not less than ten local educational agencies and States, 
     with the federally funded portion of each project declining 
     by not less than 20 percent each year beginning in the second 
     year of the comprehensive services, that--
       ``(A) participated in the needs assessment described in 
     paragraph (2); and
       ``(B) demonstrated a willingness and commitment to 
     improving the postsecondary education enrollment rates of the 
     local educational agency or State, respectively.
       ``(b) Grant Recipient Criteria.--The recipient of the grant 
     awarded under subsection (a) shall be a nonprofit 
     organization with demonstrated expertise--
       ``(1) in increasing schoolwide postsecondary enrollment 
     rates in low-income communities nationwide by providing 
     curriculum, training, and technical assistance to secondary 
     school staff and student peer influencers; and
       ``(2) in a postsecondary education transition data 
     management system.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

``PART I--EARLY CHILDHOOD EDUCATION PROFESSIONAL DEVELOPMENT AND CAREER 
                               TASK FORCE

     ``SEC. 811. PURPOSE.

       ``The purposes of this part are--
       ``(1) to improve the quality of the early childhood 
     education workforce by creating a statewide early childhood 
     education professional development and career task force for 
     early childhood education program staff, directors, 
     administrators, and faculty; and
       ``(2) to create--
       ``(A) a coherent system of core competencies, pathways to 
     qualifications, credentials, degrees, quality assurances, 
     access, and outreach, for early childhood education program 
     staff, directors, administrators, and faculty that is linked 
     to compensation commensurate with experience and 
     qualifications;
       ``(B) articulation agreements that enable early childhood 
     education professionals to transition easily among degrees; 
     and
       ``(C) compensation initiatives for individuals working in 
     an early childhood education program that reflect the 
     individuals' credentials, degrees, and experience.

     ``SEC. 812. DEFINITION OF EARLY CHILDHOOD EDUCATION PROGRAM.

       ``In this part, the term `early childhood education 
     program' means--
       ``(1) a Head Start program or an Early Head Start program 
     carried out under the Head Start Act (42 U.S.C. 9831 et 
     seq.), including a migrant or seasonal Head Start program or 
     an Indian Head Start program;
       ``(2) a State licensed or regulated child care program; or
       ``(3) a State prekindergarten program or a program 
     authorized under section 619 or part C of the Individuals 
     with Disabilities Education Act, that serves children from 
     birth through age six and that addresses the children's 
     cognitive (including language, early literacy, and pre-
     numeracy), social, emotional, and physical development.

     ``SEC. 813. GRANTS AUTHORIZED.

       ``(a) In General.--From the amounts appropriated under 
     section 818, the Secretary is authorized to award grants to 
     States in accordance with the provisions of this part to 
     enable such States--
       ``(1) to establish a State Task Force described in section 
     814; and
       ``(2) to support activities of the State Task Force 
     described in section 815.
       ``(b) Competitive Basis.--Grants under this part shall be 
     awarded on a competitive basis.
       ``(c) Equitable Geographic Distribution.--In awarding 
     grants under this part, the Secretary shall take into 
     consideration providing an equitable geographic distribution 
     of such grants.
       ``(d) Duration.--Grants under this part shall be awarded 
     for a period of five years.

     ``SEC. 814. STATE TASK FORCE ESTABLISHMENT.

       ``(a) State Task Force Established.--The Governor of a 
     State receiving a grant under this part shall establish, or 
     designate an existing entity to serve as, the State Early 
     Childhood Education Professional Development and Career Task 
     Force (hereafter in this part referred to as the `State Task 
     Force').
       ``(b) Membership.--The State Task Force shall include a 
     representative of a State agency, an institution of higher 
     education (including an associate or a baccalaureate degree 
     granting institution of higher education), an early childhood 
     education program, a nonprofit early childhood organization, 
     a statewide early childhood workforce scholarship or 
     supplemental initiative, the State Head Start collaboration 
     director, and any other entity or individual the Governor 
     determines appropriate.

     ``SEC. 815. STATE TASK FORCE ACTIVITIES.

       ``(a) Activities.--The State Task Force shall--
       ``(1) coordinate and communicate regularly with the State 
     Advisory Council on Early Care and Education (hereafter in 
     this part referred to as `State Advisory Council') or a 
     similar State entity charged with creating a comprehensive 
     system of early care and education in the State, for the 
     purposes of--
       ``(A) integrating recommendations for early childhood 
     professional development and career activities into the plans 
     of the State Advisory Council; and
       ``(B) assisting in the implementation of professional 
     development and career activities that are consistent with 
     the plans described in subparagraph (A);
       ``(2) conduct a review of opportunities for and barriers to 
     high-quality professional development, training, and higher 
     education degree programs, in early childhood development and 
     learning, including a periodic statewide survey concerning 
     the demographics of individuals working in early childhood 
     education programs in the State, which survey shall include 
     information disaggregated by--
       ``(A) race, gender, and ethnicity;
       ``(B) compensation levels;
       ``(C) type of early childhood education program setting;
       ``(D) specialized knowledge of child development;
       ``(E) years of experience in an early childhood education 
     program;
       ``(F) attainment of--
       ``(i) academic credit for coursework;
       ``(ii) an academic degree;
       ``(iii) a credential;
       ``(iv) licensure; or
       ``(v) certification in early childhood education; and
       ``(G) specialized knowledge in the education of children 
     with limited English proficiency and students with 
     disabilities; and
       ``(3) develop a plan for a comprehensive statewide 
     professional development and career system for individuals 
     working in early childhood education programs or for early 
     childhood education providers, which plan may include--
       ``(A) methods of providing outreach to early childhood 
     education program staff, directors, and administrators, 
     including methods for how outreach is provided to non-English 
     speaking providers, in order to enable the providers to be 
     aware of opportunities and resources under the statewide 
     plan;
       ``(B) developing a unified data collection and 
     dissemination system for early childhood education training, 
     professional development, and higher education programs;
       ``(C) increasing the participation of early childhood 
     educators in high-quality training and professional 
     development by assisting in paying the costs of enrollment in 
     and completion of such training and professional development 
     courses;
       ``(D) increasing the participation of early childhood 
     educators in undergraduate and graduate education programs 
     leading to degrees in early childhood education by providing 
     assistance to pay the costs of enrollment in and completion 
     of such programs, which assistance--
       ``(i) shall only be provided to an individual who--

       ``(I) in the case of an individual pursuing an 
     undergraduate or graduate degree, enters into an agreement 
     under which the individual agrees to work, for a reasonable 
     number of years after receiving such a degree, in an early 
     childhood education program that is located in a low-income 
     area; and
       ``(II) has a family income equal to or less than the 
     annually adjusted national median family income as determined 
     by the Bureau of the Census; and

       ``(ii) shall be provided in an amount that does not exceed 
     $17,500;
       ``(E) supporting professional development activities and a 
     career lattice for a variety of early childhood professional 
     roles with varying professional qualifications and 
     responsibilities for early childhood education personnel, 
     including strategies to enhance the compensation of such 
     personnel;
       ``(F) supporting articulation agreements between two- and 
     four-year public and private institutions of higher education 
     and mechanisms to transform other training, professional 
     development, and experience into academic credit;
       ``(G) developing mentoring and coaching programs to support 
     new educators in and directors of early childhood education 
     programs;
       ``(H) providing career development advising with respect to 
     the field of early childhood education, including informing 
     an individual regarding--
       ``(i) entry into and continuing education requirements for 
     professional roles in the field;
       ``(ii) available financial assistance for postsecondary 
     education; and
       ``(iii) professional development and career advancement in 
     the field;
       ``(I) enhancing the capacity and quality of faculty and 
     coursework in postsecondary programs that lead to an 
     associate, baccalaureate, or graduate degree in early 
     childhood education;
       ``(J) consideration of the availability of on-line graduate 
     level professional development offered by institutions of 
     higher education with experience and demonstrated expertise 
     in establishing programs in child development, in order

[[Page 17179]]

     to improve the skills and expertise of individuals working in 
     early childhood education programs; and
       ``(K) developing or enhancing a system of quality assurance 
     with respect to the early childhood education professional 
     development and career system, including standards or 
     qualifications for individuals and entities who offer 
     training and professional development in early childhood 
     education.
       ``(b) Public Hearings.--The State Task Force shall hold 
     public hearings and provide an opportunity for public comment 
     on the activities described in the statewide plan described 
     in subsection (a)(3).
       ``(c) Periodic Review.--The State Task Force shall meet 
     periodically to review implementation of the statewide plan 
     and to recommend any changes to the statewide plan the State 
     Task Force determines necessary.

     ``SEC. 816. STATE APPLICATION AND REPORT.

       ``(a) In General.--Each State desiring a grant under this 
     part shall submit an application to the Secretary at such 
     time, in such manner, and accompanied by such information as 
     the Secretary may reasonably require. Each such application 
     shall include a description of--
       ``(1) the membership of the State Task Force;
       ``(2) the activities for which the grant assistance will be 
     used;
       ``(3) other Federal, State, local, and private resources 
     that will be available to support the activities of the State 
     Task Force described in section 815;
       ``(4) the availability within the State of training, early 
     childhood educator preparation, professional development, 
     compensation initiatives, and career systems, related to 
     early childhood education; and
       ``(5) the resources available within the State for such 
     training, educator preparation, professional development, 
     compensation initiatives, and career systems.
       ``(b) Report to the Secretary.--Not later than two years 
     after receiving a grant under this part, a State shall submit 
     a report to the Secretary that shall describe--
       ``(1) other Federal, State, local, and private resources 
     that will be used in combination with a grant under this 
     section to develop or expand the State's early childhood 
     education professional development and career activities;
       ``(2) the ways in which the State Advisory Council (or 
     similar State entity) will coordinate the various State and 
     local activities that support the early childhood education 
     professional development and career system; and
       ``(3) the ways in which the State Task Force will use funds 
     provided under this part and carry out the activities 
     described in section 815.

     ``SEC. 817. EVALUATIONS.

       ``(a) State Evaluation.--Each State receiving a grant under 
     this part shall--
       ``(1) evaluate the activities that are assisted under this 
     part in order to determine--
       ``(A) the effectiveness of the activities in achieving 
     State goals;
       ``(B) the impact of a career lattice for individuals 
     working in early childhood education programs;
       ``(C) the impact of the activities on licensing or 
     regulating requirements for individuals in the field of early 
     childhood development;
       ``(D) the impact of the activities, and the impact of the 
     statewide plan described in section 815(a)(3), on the quality 
     of education, professional development, and training related 
     to early childhood education programs that are offered in the 
     State;
       ``(E) the change in compensation and retention of 
     individuals working in early childhood education programs 
     within the State resulting from the activities; and
       ``(F) the impact of the activities on the demographic 
     characteristics of individuals working in early childhood 
     education programs; and
       ``(2) submit a report at the end of the grant period to the 
     Secretary regarding the evaluation described in paragraph 
     (1).
       ``(b) Secretary's Evaluation.--Not later than September 30, 
     2013, the Secretary, in consultation with the Secretary of 
     Health and Human Services, shall prepare and submit to the 
     authorizing committees an evaluation of the State reports 
     submitted under subsection (a)(2).

     ``SEC. 818. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2009 and 
     each of the five succeeding fiscal years.

     ``PART J--IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND 
                   MATHEMATICS EDUCATION WITH A FOCUS ON ALASKA 
                   NATIVE AND NATIVE HAWAIIAN STUDENTS

     ``SEC. 819. IMPROVING SCIENCE, TECHNOLOGY, ENGINEERING, AND 
                   MATHEMATICS EDUCATION WITH A FOCUS ON ALASKA 
                   NATIVE AND NATIVE HAWAIIAN STUDENTS.

       ``(a) Purpose.--The purposes of this section are--
       ``(1) to develop or expand programs for the development of 
     professionals in the fields of science, technology, 
     engineering, and mathematics; and
       ``(2) to focus resources on meeting the educational and 
     cultural needs of Alaska Natives and Native Hawaiians.
       ``(b) Definitions.--In this section:
       ``(1) Alaska native.--The term `Alaska Native' has the 
     meaning given such term in section 7306 of the Elementary and 
     Secondary Education Act of 1965.
       ``(2) Eligible partnership.--The term `eligible 
     partnership' means a partnership that includes--
       ``(A) one or more colleges, schools, or departments of 
     engineering;
       ``(B) one or more colleges of science or mathematics;
       ``(C) one or more institutions of higher education that 
     offer two-year degrees; and
       ``(D) one or more private entities that--
       ``(i) conduct career awareness activities showcasing local 
     technology professionals;
       ``(ii) encourage students to pursue education in science, 
     technology, engineering, and mathematics from elementary 
     school through postsecondary education, and careers in those 
     fields, with the assistance of local technology 
     professionals;
       ``(iii) develop internships, apprenticeships, and mentoring 
     programs in partnership with relevant industries; and
       ``(iv) assist with placement of interns and apprentices.
       ``(3) Institution of higher education.--The term 
     `institution of higher education' has the meaning given such 
     term in section 101(a)
       ``(4) Native hawaiian.--The term `Native Hawaiian' has the 
     meaning given the term in section 7207 of the Elementary and 
     Secondary Education Act of 1965.
       ``(c) Grant Authorized.--From the amounts appropriated to 
     carry out this section under subsection (i), the Secretary is 
     authorized to award a grant to an eligible partnership to 
     enable the eligible partnership to expand programs for the 
     development of science, technology, engineering, or 
     mathematics professionals, from elementary school through 
     postsecondary education, including existing programs for 
     Alaska Native and Native Hawaiian students.
       ``(d) Uses of Funds.--Grant funds under this section shall 
     be used for one or more of the following:
       ``(1) Development or implementation of cultural, social, or 
     educational transition programs to assist students to 
     transition into college life and academics in order to 
     increase such students' retention rates in the fields of 
     science, technology, engineering, or mathematics, with a 
     focus on Alaska Native or Native Hawaiian students.
       ``(2) Development or implementation of academic support or 
     supplemental educational programs to increase the graduation 
     rates of students in the fields of science, technology, 
     engineering, or mathematics, with a focus on Alaska Native 
     and Native Hawaiian students.
       ``(3) Development or implementation of internship programs, 
     carried out in coordination with educational institutions and 
     private entities, to prepare students for careers in the 
     fields of science, technology, engineering, or mathematics, 
     with a focus on programs that serve Alaska Native or Native 
     Hawaiian students.
       ``(4) Such other activities as are consistent with the 
     purpose of this section.
       ``(e) Application.--Each eligible partnership that desires 
     a grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(f) Priority.--In awarding grants under this section, the 
     Secretary shall give priority to an eligible partnership 
     that, on the day before the date of enactment of the Higher 
     Education Opportunity Act, provides one or more programs in 
     which 30 percent or more of the program participants are 
     Alaska Native or Native Hawaiian.
       ``(g) Period of Grant.--A grant under this section shall be 
     awarded for a period of five years.
       ``(h) Evaluation and Report.--Each eligible partnership 
     that receives a grant under this section shall conduct an 
     evaluation to determine the effectiveness of the programs 
     funded under the grant and shall provide a report regarding 
     the evaluation to the Secretary not later than six months 
     after the end of the grant period.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

  ``PART K--PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE AND SUCCESS

     ``SEC. 820. PILOT PROGRAMS TO INCREASE COLLEGE PERSISTENCE 
                   AND SUCCESS.

       ``(a) Grants Authorized.--From the amounts appropriated 
     under subsection (i), the Secretary is authorized to award 
     grants in accordance with this section, on a competitive 
     basis, to eligible institutions to enable the institutions to 
     develop programs to increase the persistence and success of 
     low-income college students.
       ``(b) Applications.--
       ``(1) In general.--An eligible institution seeking a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. An eligible 
     institution may submit an application to receive a grant 
     under subsection (c) or (d) or both.
       ``(2) Evaluation condition.--Each eligible institution 
     seeking a grant under this section shall agree to participate 
     in the evaluation described in subsection (f).
       ``(3) Priority for replication of evidence-based policies 
     and practices.--In awarding grants for the program under 
     subsection (d), the Secretary shall give priority to 
     applications submitted by eligible institutions that propose 
     to replicate policies and practices that have proven 
     effective in increasing persistence and degree completion by 
     low-income students or students in need of developmental 
     education.
       ``(c) Pilot Program To Increase Persistence and Success in 
     Community Colleges.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible institution.--The term `eligible 
     institution' means an institution of higher education, as 
     defined in section 101, that provides a one- or two-year 
     program of study leading to a degree or certificate.

[[Page 17180]]

       ``(B) Eligible student.--The term `eligible student' means 
     a student who--
       ``(i) is eligible to receive assistance under section 401;
       ``(ii) is enrolled at least half-time;
       ``(iii) is not younger than age 19;
       ``(iv) is the parent of at least one dependent child, which 
     dependent child is age 18 or younger;
       ``(v) has a secondary school diploma or its recognized 
     equivalent; and
       ``(vi) does not have a degree or certificate from an 
     institution of higher education.
       ``(2) Uses of funds.--
       ``(A) Support.--The Secretary shall award grants under this 
     subsection to eligible institutions to enable such 
     institutions to provide additional monetary and nonmonetary 
     support to eligible students to enable the eligible students 
     to maintain enrollment and complete degree or certificate 
     programs.
       ``(B) Required uses.--Each eligible institution receiving a 
     grant under this subsection shall use the grant funds--
       ``(i) to provide scholarships in accordance with paragraph 
     (3); and
       ``(ii) to provide counseling services in accordance with 
     paragraph (4) .
       ``(C) Allowable uses of funds.--Grant funds provided under 
     this subsection may be used--
       ``(i) to conduct outreach to make students aware of the 
     scholarships and counseling services available under this 
     subsection and to encourage the students to participate in 
     the program assisted under this subsection; and
       ``(ii) to provide incentives of $20 or less to applicants 
     who complete the process of applying for assistance under 
     this subsection, as compensation for the student's time.
       ``(3) Scholarship requirements.--
       ``(A) In general.--Each scholarship awarded under this 
     subsection shall--
       ``(i) be awarded for one academic year consisting of two 
     semesters or the equivalent;
       ``(ii) require the student to maintain, during the 
     scholarship period, at least half-time enrollment and at 
     least a 2.0 grade point average or the equivalent;
       ``(iii) be awarded in the amount of $1,000 for each of two 
     semesters (prorated for quarters or other equivalents), or 
     $2,000 for an academic year;
       ``(iv) not exceed the student's cost of attendance, as 
     defined in section 472; and
       ``(v) be paid, for each of the two semesters, in increments 
     of--

       ``(I) $250 upon enrollment (prorated for quarters or other 
     equivalents);
       ``(II) $250 upon passing midterm examinations or comparable 
     assessments (prorated for quarters or other equivalents); and
       ``(III) $500 upon passing courses (prorated for quarters or 
     other equivalents).

       ``(B) Number.--An eligible institution may award an 
     eligible student not more than two scholarships under this 
     subsection.
       ``(4) Counseling services.--
       ``(A) In general.--Each eligible institution receiving a 
     grant under this subsection shall use the grant funds to 
     provide students at the institution with a counseling staff 
     dedicated to students participating in the program under this 
     subsection. Each such counselor shall--
       ``(i) have a caseload of less than 125 students;
       ``(ii) use a proactive, team-oriented approach to 
     counseling;
       ``(iii) hold a minimum of two meetings with each student 
     each semester; and
       ``(iv) provide referrals to and follow-up with other 
     student services staff, including financial aid and career 
     services.
       ``(B) Counseling services availability.--The counseling 
     services provided under this subsection shall be available to 
     participating students during the daytime and evening hours.
       ``(d) Student Success Grant Pilot Program.--
       ``(1) Definitions.--
       ``(A) Eligible institution.--In this subsection, the term 
     `eligible institution' means an institution of higher 
     education in which, during the three-year period preceding 
     the year in which the institution is applying for a grant 
     under this subsection, an average of not less than 50 percent 
     of the institution's entering first-year students are 
     assessed as needing developmental courses to bring reading, 
     writing, or mathematics skills up to college level.
       ``(B) Eligible student.--In this subsection, the term 
     `eligible student' means a student who--
       ``(i) is eligible to receive assistance under section 401;
       ``(ii) is a first-year student at the time of entering the 
     program;
       ``(iii) is assessed as needing developmental education to 
     bring reading, writing, or mathematics skills up to college 
     level; and
       ``(iv) is selected by an eligible institution to 
     participate in the program.
       ``(2) Student success grant amount.--The Secretary shall 
     award grants under this subsection to eligible institutions 
     in an amount equal to $1,500 multiplied by the number of 
     students the institution selects to participate in the 
     program in such year. An institution shall not select more 
     than 200 students to participate in the program under this 
     subsection during such year.
       ``(3) Required uses.--An eligible institution that receives 
     a grant under this subsection shall use the grant funds to 
     assign a student success coach to each first-year student 
     participating in the program to provide intensive career and 
     academic advising, ongoing personal help in navigating 
     college services (such as financial aid and registration), 
     and assistance in connecting to community resources that can 
     help students overcome family and personal challenges to 
     success. Student success coaches--
       ``(A) shall work with not more than 50 new students during 
     any academic period;
       ``(B) may be employees of academic departments, student 
     services offices, community-based organizations, or other 
     entities as determined appropriate by the institution; and
       ``(C) shall meet with each eligible student selected for 
     the program before registration for courses.
       ``(4) Allowable uses.--An eligible institution that 
     receives a grant under this subsection may use the grant 
     funds to provide services and program innovations for 
     students participating in the program, including the 
     following:
       ``(A) College and career success courses provided at no 
     charge to participating students. These courses may cover 
     college success topics, including how to take notes, how to 
     study, how to take tests, and how to budget time, and may 
     also include a substantial career exploration component. 
     Institutions may use such courses to help students develop a 
     college and career success plan, so that by the end of the 
     first semester the students have a clear sense of their 
     career goals and what classes to take to achieve such goals.
       ``(B) Work-study jobs with private employers in the 
     students' fields of study.
       ``(C) Learning communities that ensure that students 
     participating in the program are clustered together for at 
     least two courses beginning in the first semester after 
     enrolling and have other opportunities to create and maintain 
     bonds that allow them to provide academic and social support 
     to each other.
       ``(D) Curricular redesign, which may include such 
     innovations as blended or accelerated remediation classes 
     that help student success grant recipients to attain college-
     level reading, writing, or math skills (or a combination 
     thereof) more rapidly than traditional remediation formats 
     allow, and intensive skills refresher classes, offered prior 
     to each semester, to help students who have tested into 
     remedial coursework to reach entry level assessment scores 
     for the postsecondary programs they wish to enter.
       ``(E) Instructional support, such as learning labs, 
     supplemental instruction, and tutoring.
       ``(F) Assistance with support services, such as child care 
     and transportation.
       ``(5) Required non-federal share.--Each institution 
     participating in the program under this subsection shall 
     provide a non-Federal share of 25 percent of the amount of 
     grant to carry out the activities of the program. The non-
     Federal share under this subsection may be provided in cash 
     or in kind.
       ``(e) Period of Grant.--The Secretary may award a grant 
     under subsection (c) or (d) of this section for a period of 
     five years.
       ``(f) Technical Assistance and Evaluation.--
       ``(1) Contractor.--From the funds appropriated under this 
     section, the Secretary shall enter into a contract with one 
     or more private, nonprofit entities to provide technical 
     assistance to grantees and to conduct the evaluations 
     required under paragraph (3).
       ``(2) Evaluations.--The evaluations required under 
     paragraph (3) shall be conducted by entities that are capable 
     of designing and carrying out independent evaluations that 
     identify the impact of the activities carried out by eligible 
     institutions under this subpart on improving persistence and 
     success of student participants under this subpart.
       ``(3) Conduct of evaluations.--The Secretary shall conduct 
     an evaluation of the impact of the persistence and success 
     grant programs as follows:
       ``(A) Program to increase persistence in community 
     colleges.--The evaluation of the program under subsection (c) 
     shall be conducted using a random assignment research design 
     with the following requirements:
       ``(i) When students are recruited for the program, all 
     students will be told about the program and the evaluation.
       ``(ii) Baseline data will be collected from all applicants 
     for assistance under subsection (c).
       ``(iii) Students will be assigned randomly to two groups, 
     which will consist of--

       ``(I) a program group that will receive the scholarship and 
     the additional counseling services; and
       ``(II) a control group that will receive whatever regular 
     financial aid and counseling services are available to all 
     students at the institution of higher education.

       ``(B) Student success grant program.--Eligible institutions 
     receiving a grant to carry out the program under subsection 
     (d) shall work with the evaluator to track persistence and 
     completion outcomes for students in such program, 
     specifically the proportion of these students who take and 
     complete developmental education courses, the proportion who 
     take and complete college-level coursework, and the 
     proportion who complete certificates and degrees. The data 
     shall be broken down by gender, race, ethnicity, and age and 
     the evaluator shall assist institutions in analyzing these 
     data to compare program participants to comparable 
     nonparticipants, using statistical techniques to control for 
     differences in the groups.
       ``(g) Report.--The Secretary shall--
       ``(1) provide a report to the authorizing committees that 
     includes the evaluation and information on best practices and 
     lessons learned during the pilot programs described in this 
     section; and

[[Page 17181]]

       ``(2) disseminate the report to the public by making the 
     report available on the Department's website.
       ``(h) Supplement Not Supplant.--Funds made available under 
     this section shall be use to supplement and not supplant 
     other Federal, State, and local funds available to the 
     institution to carrying out the activities described in 
     subsections (c) and (d).
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years. The Secretary may use not more 
     than two percent of the amounts appropriated to provide the 
     technical assistance and conduct the evaluations required 
     under subsection (f).

        ``PART L--STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT

     ``SEC. 821. STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT.

       ``(a) Grants Authorized.--
       ``(1) In general.--From the amounts appropriated under 
     subsection (g), the Secretary is authorized to award grants, 
     on a competitive basis, to institutions of higher education 
     or consortia of institutions of higher education to enable 
     institutions of higher education or consortia to pay the 
     Federal share of the cost of carrying out the authorized 
     activities described in subsection (c).
       ``(2) Consultation with the attorney general and the 
     secretary of homeland security.--Where appropriate, the 
     Secretary shall award grants under this section in 
     consultation with the Attorney General and the Secretary of 
     Homeland Security.
       ``(3) Duration.--The Secretary shall award each grant under 
     this section for a period of two years.
       ``(4) Limitation on institutions and consortia.--An 
     institution of higher education or consortium shall be 
     eligible for only one grant under this section.
       ``(b) Federal Share; Non-Federal Share.--
       ``(1) In general.--The Federal share of the activities 
     described in subsection (c) shall be 50 percent.
       ``(2) Non-federal share.--An institution of higher 
     education or consortium that receives a grant under this 
     section shall provide the non-Federal share, which may be 
     provided from State and local resources dedicated to 
     emergency preparedness and response.
       ``(c) Authorized Activities.--Each institution of higher 
     education or consortium receiving a grant under this section 
     may use the grant funds to carry out one or more of the 
     following:
       ``(1) Developing and implementing a state-of-the-art 
     emergency communications system for each campus of an 
     institution of higher education or consortium, in order to 
     contact students via cellular, text message, or other state-
     of-the-art communications methods when a significant 
     emergency or dangerous situation occurs. An institution or 
     consortium using grant funds to carry out this paragraph 
     shall also, in coordination with the appropriate State and 
     local emergency management authorities--
       ``(A) develop procedures that students, employees, and 
     others on a campus of an institution of higher education or 
     consortium will be directed to follow in the event of a 
     significant emergency or dangerous situation; and
       ``(B) develop procedures the institution of higher 
     education or consortium shall follow to inform, within a 
     reasonable and timely manner, students, employees, and others 
     on a campus in the event of a significant emergency or 
     dangerous situation, which procedures shall include the 
     emergency communications system described in this paragraph.
       ``(2) Supporting measures to improve safety at the 
     institution of higher education or consortium, such as--
       ``(A) security assessments;
       ``(B) security training of personnel and students at the 
     institution of higher education or consortium;
       ``(C) where appropriate, coordination of campus 
     preparedness and response efforts with local law enforcement, 
     local emergency management authorities, and other agencies, 
     to improve coordinated responses in emergencies among such 
     entities;
       ``(D) establishing a hotline that allows a student or staff 
     member at an institution or consortium to report another 
     student or staff member at the institution or consortium who 
     the reporting student or staff member believes may be a 
     danger to the reported student or staff member or to others; 
     and
       ``(E) acquisition and installation of access control, video 
     surveillance, intrusion detection, and perimeter security 
     technologies and systems.
       ``(3) Coordinating with appropriate local entities for the 
     provision of mental health services for students and staff of 
     the institution of higher education or consortium, including 
     mental health crisis response and intervention services for 
     students and staff affected by a campus or community 
     emergency.
       ``(d) Application.--Each institution of higher education or 
     consortium desiring a grant under this section shall submit 
     an application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may require.
       ``(e) Technical Assistance.--The Secretary shall coordinate 
     technical assistance provided by State and local emergency 
     management agencies, the Department of Homeland Security, and 
     other agencies as appropriate, to institutions of higher 
     education or consortia that request assistance in developing 
     and implementing the activities assisted under this section.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this part such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

     ``SEC. 822. MODEL EMERGENCY RESPONSE POLICIES, PROCEDURES, 
                   AND PRACTICES.

       ``The Secretary, in consultation with the Attorney General 
     and the Secretary of Homeland Security, shall continue to--
       ``(1) advise institutions of higher education on model 
     emergency response policies, procedures, and practices; and
       ``(2) disseminate information concerning those policies, 
     procedures, and practices.

     ``SEC. 823. PREPARATION FOR FUTURE DISASTERS PLAN BY THE 
                   SECRETARY.

       ``The Secretary shall continue to coordinate with the 
     Secretary of Homeland Security and other appropriate agencies 
     to develop and maintain procedures to address the 
     preparedness, response, and recovery needs of institutions of 
     higher education in the event of a natural or manmade 
     disaster with respect to which the President has declared a 
     major disaster or emergency (as such terms are defined in 
     section 824).

     ``SEC. 824. EDUCATION DISASTER AND EMERGENCY RELIEF LOAN 
                   PROGRAM.

       ``(a) Program Authorized.--The Secretary, in consultation 
     with the Secretary of Homeland Security, is authorized to 
     establish an Education Disaster and Emergency Relief Loan 
     Program for institutions of higher education impacted by a 
     major disaster or emergency declared by the President.
       ``(b) Use of Assistance.--The Secretary shall, subject to 
     the availability of appropriations, provide loans under this 
     section to institutions of higher education after the 
     declaration of a major disaster or emergency by the 
     President. Loan funds provided under this section may be used 
     for construction, replacement, renovation, and operations 
     costs resulting from a major disaster or emergency declared 
     by the President.
       ``(c) Application Requirements.--To be considered for a 
     loan under this section, an institution of higher education 
     shall--
       ``(1) submit a financial statement and other appropriate 
     data, documentation, or evidence requested by the Secretary 
     that indicates that the institution incurred losses resulting 
     from the impact of a major disaster or emergency declared by 
     the President, and the monetary amount of such losses;
       ``(2) demonstrate that the institution had appropriate 
     insurance policies prior to the major disaster or emergency 
     and filed claims, as appropriate, related to the major 
     disaster or emergency; and
       ``(3) demonstrate that the institution attempted to 
     minimize the cost of any losses by pursuing collateral source 
     compensation from the Federal Emergency Management Agency 
     prior to seeking a loan under this section, except that an 
     institution of higher education shall not be required to 
     receive collateral source compensation from the Federal 
     Emergency Management Agency prior to being eligible for a 
     loan under this section.
       ``(d) Audit.--The Secretary may audit a financial statement 
     submitted under subsection (c) and an institution of higher 
     education shall provide any information that the Secretary 
     determines necessary to conduct such an audit.
       ``(e) Reduction in Loan Amounts.--To determine the amount 
     of a loan to make available to an institution of higher 
     education under this section, the Secretary shall calculate 
     the monetary amount of losses incurred by such institution as 
     a result of a major disaster or emergency declared by the 
     President, and shall reduce such amount by the amount of 
     collateral source compensation the institution has already 
     received from insurance, the Federal Emergency Management 
     Agency, and the Small Business Administration.
       ``(f) Establishment of Loan Program.--Prior to disbursing 
     any loans under this section, the Secretary shall prescribe 
     regulations that establish the Education Disaster and 
     Emergency Relief Loan Program, including--
       ``(1) terms for the loan program;
       ``(2) procedures for an application for a loan;
       ``(3) minimum requirements for the loan program and for 
     receiving a loan, including--
       ``(A) online forms to be used in submitting request for a 
     loan;
       ``(B) information to be included in such forms; and
       ``(C) procedures to assist in filing and pursing a loan; 
     and
       ``(4) any other terms and conditions the Secretary may 
     prescribe after taking into consideration the structure of 
     other existing capital financing loan programs under this 
     Act.
       ``(g) Definitions.--In this section:
       ``(1) Institution affected by a gulf hurricane disaster.--
     The term `institution affected by a Gulf hurricane disaster' 
     means an institution of higher education that--
       ``(A) is located in an area affected by a Gulf hurricane 
     disaster; and
       ``(B) is able to demonstrate that the institution--
       ``(i) incurred physical damage resulting from the impact of 
     a Gulf hurricane disaster; and
       ``(ii) was not able to fully reopen in existing facilities 
     or to fully reopen to the pre-hurricane levels for 30 days or 
     more on or after August 29, 2005.
       ``(2) Area affected by a gulf hurricane disaster; gulf 
     hurricane disaster.--The terms `area affected by a Gulf 
     hurricane disaster' and `Gulf hurricane disaster' have the 
     meanings given such terms in section 209 of the

[[Page 17182]]

     Higher Education Hurricane Relief Act of 2005 (Public Law 
     109-148, 119 Stat. 2808).
       ``(3) Emergency.--The term `emergency' has the meaning 
     given such term in section 102(1) of the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 
     5122(1)).
       ``(4) Institutions of higher education.--The term 
     `institution of higher education' has the meaning given such 
     term in section 101.
       ``(5) Major disaster.--The term `major disaster' has the 
     meaning given the term in section 102(2) of the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5122(2)).
       ``(h) Effective Date.--Loans provided to institutions of 
     higher education pursuant to this section shall be available 
     only with respect to major disasters or emergencies declared 
     by the President that occur after the date of the enactment 
     of the Higher Education Opportunity Act, except that loans 
     may be provided pursuant to this section to an institution 
     affected by a Gulf hurricane disaster with respect to such 
     disaster.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

     ``SEC. 825. GUIDANCE ON MENTAL HEALTH DISCLOSURES FOR STUDENT 
                   SAFETY.

       ``(a) Guidance.--The Secretary shall continue to provide 
     guidance that clarifies the role of institutions of higher 
     education with respect to the disclosure of education 
     records, including to a parent or legal guardian of a 
     dependent student, in the event that such student 
     demonstrates that the student poses a significant risk of 
     harm to himself or herself or to others, including a 
     significant risk of suicide, homicide, or assault. Such 
     guidance shall further clarify that an institution of higher 
     education that, in good faith, discloses education records or 
     other information in accordance with the requirements of this 
     Act and section 444 of the General Education Provisions Act 
     (the Family Educational Rights and Privacy Act of 1974) shall 
     not be liable to any person for that disclosure.
       ``(b) Information to Congress.--The Secretary shall provide 
     an update to the authorizing committees on the Secretary's 
     activities under subsection (a) not later than 180 days after 
     the date of enactment of the Higher Education Opportunity 
     Act.

     ``SEC. 826. RULE OF CONSTRUCTION.

       ``Nothing in this part shall be construed--
       ``(1) to provide a private right of action to any person to 
     enforce any provision of this section;
       ``(2) to create a cause of action against any institution 
     of higher education or any employee of the institution for 
     any civil liability; or
       ``(3) to affect section 444 of the General Education 
     Provisions Act (the Family Educational Rights and Privacy Act 
     of 1974) or the regulations issued under section 264 of the 
     Health Insurance Portability and Accountability Act of 1996 
     (42 U.S.C. 1320d-2 note).

                         ``PART M--LOW TUITION

     ``SEC. 830. INCENTIVES AND REWARDS FOR LOW TUITION.

       ``(a) Rewards for Low Tuition.--
       ``(1) Grants.--From funds made available under subsection 
     (e), the Secretary shall award grants to institutions of 
     higher education that, for academic year 2009-2010 or any 
     succeeding academic year--
       ``(A) have an annual tuition and fee increase, expressed as 
     a percentage change, for the most recent academic year for 
     which satisfactory data is available, that is in the lowest 
     20 percent of such increases for each category described in 
     subsection (b);
       ``(B) are public institutions of higher education that have 
     tuition and fees that are in the lowest quartile of for 
     institutions in each category described in subsection (b)(1), 
     (b)(4), or (b)(7); or
       ``(C) are public institutions of higher education that have 
     a tuition and fee increase of less than $600 for a first-
     time, full-time undergraduate student.
       ``(2) Use of funds.--Funds awarded to an institution of 
     higher education under paragraph (1) shall be distributed by 
     the institution in the form of need-based grant aid to 
     students who are eligible for Federal Pell Grants, except 
     that no student shall receive an amount under this section 
     that would cause the amount of total financial aid received 
     by such student to exceed the cost of attendance of the 
     institution.
       ``(b) Categories of Institutions.--The categories of 
     institutions described in subsection (a) shall be the 
     following:
       ``(1) four-year public institutions of higher education;
       ``(2) four-year private, nonprofit institutions of higher 
     education;
       ``(3) four-year private, for-profit institutions of higher 
     education;
       ``(4) two-year public institutions of higher education;
       ``(5) two-year private, nonprofit institutions of higher 
     education;
       ``(6) two-year private, for-profit institutions of higher 
     education;
       ``(7) less than two-year public institutions of higher 
     education;
       ``(8) less than two-year private, nonprofit institutions of 
     higher education; and
       ``(9) less than two-year private, for-profit institutions 
     of higher education.
       ``(c) Rewards for Guaranteed Tuition.--
       ``(1) Bonus.--For each institution of higher education that 
     the Secretary determines complies with the requirements of 
     paragraph (2) or (3) of this subsection, the Secretary shall 
     provide to such institution a bonus amount. Such institution 
     shall award the bonus amount in the form of need-based aid 
     first to students who are eligible for Federal Pell Grants 
     who were in attendance at the institution during the award 
     year that such institution satisfied the eligibility criteria 
     for maintaining low tuition and fees, then to students who 
     are eligible for Federal Pell Grants who were not in 
     attendance at the institution during such award year.
       ``(2) Four-year institutions.--An institution of higher 
     education that provides a program of instruction for which it 
     awards a bachelor's degree complies with the requirements of 
     this paragraph if--
       ``(A) for a public institution of higher education, such 
     institution's tuition and fees are in the lowest quartile of 
     institutions in the same category as described under 
     subsection (b); or
       ``(B) for any institution of higher education, such 
     institution guarantees that for any academic year (or the 
     equivalent) beginning on or after July 1, 2009, and for each 
     of the four succeeding continuous academic years, the tuition 
     and fees charged to an undergraduate student will not 
     exceed--
       ``(i) for a public institution of higher education, $600 
     per year for a full-time undergraduate student; or
       ``(ii) for any other institution of higher education--

       ``(I) the amount that the student was charged for an 
     academic year at the time the student first enrolled in the 
     institution of higher education, plus
       ``(II) the percentage change in tuition and fees at the 
     institution for the three most recent academic years for 
     which data is available, multiplied by the amount determined 
     under subclause (I).

       ``(3) Less-than four-year institutions.--An institution of 
     higher education that does not provide a program of 
     instruction for which it awards a bachelor's degree complies 
     with the requirements of this paragraph if--
       ``(A) for a public institution of higher education, such 
     institution's tuition is in the lowest quartile of 
     institutions in the same category as described under 
     subsection (b); or
       ``(B) for any institution of higher education, such 
     institution guarantees that for any academic year (or the 
     equivalent) beginning on or after July 1, 2009, and for each 
     of the 1.5 succeeding continuous academic years, the tuition 
     and fees charged to an undergraduate student will not 
     exceed--
       ``(i) for a public institution of higher education, $600 
     per year for a full-time undergraduate student; or
       ``(ii) for any other institution of higher education--

       ``(I) the amount that the student was charged for an 
     academic year at the time the student first enrolled in the 
     institution of higher education, plus
       ``(II) the percentage change in tuition and fees at the 
     institution for the three most recent academic years for 
     which data is available, multiplied by the amount determined 
     under subclause (I).

       ``(d) Definitions.--In this section, the terms `tuition and 
     fees' and `net price' have the meaning given to such terms in 
     section 132 of this Act.
       ``(e) Authorization.--There are authorized to be 
     appropriated to carry out this section such sums as may be 
     necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.

                    ``PART N--COOPERATIVE EDUCATION

     ``SEC. 831. STATEMENT OF PURPOSE; DEFINITION.

       ``(a) Purpose.--It is the purpose of this part to award 
     grants to institutions of higher education or consortia of 
     such institutions to encourage such institutions to develop 
     and make available to their students work experience that 
     will aid such students in future careers and will enable such 
     students to support themselves financially while in school.
       ``(b) Definition.--In this part the term `cooperative 
     education' means the provision of alternating or parallel 
     periods of academic study and public or private employment to 
     give students work experiences related to their academic or 
     occupational objectives and an opportunity to earn the funds 
     necessary for continuing and completing their education.

     ``SEC. 832. RESERVATIONS.

       ``(a) Reservations.--Of the amount appropriated to carry 
     out this part in each fiscal year--
       ``(1) not less than 50 percent shall be available for 
     awarding grants to institutions of higher education and 
     consortia of such institutions described in section 
     833(a)(1)(A) for cooperative education under section 833;
       ``(2) not less than 25 percent shall be available for 
     awarding grants to institutions of higher education described 
     in section 833(a)(1)(B) for cooperative education under 
     section 833;
       ``(3) not to exceed 11 percent shall be available for 
     demonstration projects under paragraph (1) of section 834(a);
       ``(4) not to exceed 11 percent shall be available for 
     training and resource centers under paragraph (2) of section 
     834(a); and
       ``(5) not to exceed 3 percent shall be available for 
     research under paragraph (3) of section 834(a).
       ``(b) Availability of Appropriations.--Amounts appropriated 
     under this part shall not be used for the payment of 
     compensation of students for employment by employers 
     participating in a program under this part.

     ``SEC. 833. GRANTS FOR COOPERATIVE EDUCATION.

       ``(a) Grants Authorized.--

[[Page 17183]]

       ``(1) In general.--The Secretary is authorized, from the 
     amount available to carry out this section under section 835 
     in each fiscal year and in accordance with the provisions of 
     this part--
       ``(A) to award grants to institutions of higher education 
     or consortia of such institutions that have not received a 
     grant under this paragraph in the ten-year period preceding 
     the date for which a grant under this section is requested to 
     pay the Federal share of the cost of planning, establishing, 
     expanding, or carrying out programs of cooperative education 
     by such institutions or consortia of institutions; and
       ``(B) to award grants to institutions of higher education 
     that are operating an existing cooperative education program 
     as determined by the Secretary to pay the Federal share of 
     the cost of planning, establishing, expanding, or carrying 
     out programs of cooperative education by such institutions.
       ``(2) Program requirement.--Cooperative education programs 
     assisted under this section shall provide alternating or 
     parallel periods of academic study and of public or private 
     employment, giving students work experience related to their 
     academic or occupational objectives and the opportunity to 
     earn the funds necessary for continuing and completing their 
     education.
       ``(3) Amount of grants.--
       ``(A) The amount of each grant awarded pursuant to 
     paragraph (1)(A) to any institution of higher education or 
     consortia of such institutions in any fiscal year shall not 
     exceed $500,000.
       ``(B)(i) Except as provided in clauses (ii) and (iii), the 
     Secretary shall award grants in each fiscal year to each 
     institution of higher education described in paragraph (1)(B) 
     that has an application approved under subsection (b) in an 
     amount that bears the same ratio to the amount reserved 
     pursuant to section 832(a)(2) for such fiscal year as the 
     number of unduplicated students placed in cooperative 
     education jobs during the preceding fiscal year by such 
     institution of higher education (other than cooperative 
     education jobs under section 834 and as determined by the 
     Secretary) bears to the total number of all such students 
     placed in such jobs during the preceding fiscal year by all 
     such institutions.
       ``(ii) No institution of higher education shall receive a 
     grant pursuant to paragraph (1)(B) in any fiscal year in an 
     amount that exceeds 25 percent of such institution's 
     cooperative education program's personnel and operating 
     budget for the preceding fiscal year.
       ``(iii) The minimum annual grant amount that an institution 
     of higher education is eligible to receive under paragraph 
     (1)(B) is $1,000 and the maximum annual grant amount is 
     $75,000.
       ``(4) Limitation.--The Secretary shall not award grants 
     pursuant to subparagraphs (A) and (B) of paragraph (1) to the 
     same institution of higher education or consortia of such 
     institution in any one fiscal year.
       ``(5) Uses.--Grants awarded under paragraph (1)(B) shall be 
     used exclusively--
       ``(A) to expand the quality of and participation in a 
     cooperative education program;
       ``(B) for outreach to potential participants in new 
     curricular areas; and
       ``(C) for outreach to potential participants including 
     underrepresented and nontraditional populations.
       ``(b) Applications.--Each institution of higher education 
     or consortium of such institutions desiring to receive a 
     grant under this section shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     shall prescribe. Each such application shall--
       ``(1) set forth the program or activities for which a grant 
     is authorized under this section;
       ``(2) specify each portion of such program or activities 
     which will be performed by a nonprofit organization or 
     institution other than the applicant, and the amount of grant 
     funds to be used for such program or activities;
       ``(3) provide that the applicant will expend, during the 
     fiscal year for which the grant is awarded for the purpose of 
     such program or activities, not less than the amount expended 
     for such purpose during the previous fiscal year;
       ``(4) describe the plans which the applicant will carry out 
     to assure, and contain a formal statement of the 
     institution's commitment that assures, that the applicant 
     will continue the cooperative education program beyond the 
     five-year period of Federal assistance described in 
     subsection (c)(1) at a level that is not less than the total 
     amount expended for such program during the first year such 
     program was assisted under this section;
       ``(5) provide that, in the case of an institution of higher 
     education that provides a two-year program that is acceptable 
     for full credit toward a bachelor's degree, the cooperative 
     education program will be available to students who are 
     certificate or associate degree candidates and who carry at 
     least one-half of the normal full-time academic workload;
       ``(6) provide that the applicant will--
       ``(A) make such reports as may be necessary to ensure that 
     the applicant is complying with the provisions of this 
     section, including reports for the second and each succeeding 
     fiscal year for which the applicant receives a grant with 
     respect to the impact of the cooperative education program in 
     the previous fiscal year, including--
       ``(i) the number of unduplicated student applicants in the 
     cooperative education program;
       ``(ii) the number of unduplicated students placed in 
     cooperative education jobs;
       ``(iii) the number of employers who have hired cooperative 
     education students;
       ``(iv) the income for students derived from working in 
     cooperative education jobs; and
       ``(v) the increase or decrease in the number of 
     unduplicated students placed in cooperative education jobs in 
     each fiscal year compared to the previous fiscal year; and
       ``(B) keep such records as may be necessary to ensure that 
     the applicant is complying with the provisions of this part, 
     including the notation of cooperative education employment on 
     the student's transcript;
       ``(7) describe the extent to which programs in the academic 
     disciplines for which the application is made have 
     satisfactorily met the needs of public and private sector 
     employers;
       ``(8) describe the extent to which the institution is 
     committed to extending cooperative education on an 
     institution-wide basis for all students who can benefit;
       ``(9) describe the plans that the applicant will carry out 
     to evaluate the applicant's cooperative education program at 
     the end of the grant period;
       ``(10) provide for such fiscal control and fund accounting 
     procedures as may be necessary to ensure proper disbursement 
     of, and accounting for, Federal funds paid to the applicant 
     under this part;
       ``(11) demonstrate a commitment to serving underserved 
     populations at the institution; and
       ``(12) include such other information as may be necessary 
     to carry out the provisions of this part.
       ``(c) Duration of Grants; Federal Share.--
       ``(1) Duration of grants.--No individual institution of 
     higher education may receive, individually or as a 
     participant in a consortium of such institutions--
       ``(A) a grant pursuant to subsection (a)(1)(A) for more 
     than five fiscal years; or
       ``(B) a grant pursuant to subsection (a)(1)(B) for more 
     than five fiscal years.
       ``(2) Federal share.--The Federal share of a grant under 
     subsection (a)(1)(A) may not exceed--
       ``(A) 85 percent of the cost of carrying out the program or 
     activities described in the application in the first year the 
     applicant receives a grant under this section;
       ``(B) 70 percent of such cost in the second such year;
       ``(C) 55 percent of such cost in the third such year;
       ``(D) 40 percent of such cost in the fourth such year; and
       ``(E) 25 percent of such cost in the fifth such year.
       ``(3) Special rule.--Notwithstanding any other provision of 
     law, the Secretary may not waive the provisions of paragraphs 
     (1) and (2).
       ``(d) Maintenance of Effort.--If the Secretary determines 
     that a recipient of funds under this section has failed to 
     maintain the fiscal effort described in subsection (b)(3), 
     then the Secretary may elect not to make grant payments under 
     this section to such recipient.
       ``(e) Factors for Special Consideration of Applications.--
       ``(1) In general.--In approving applications under this 
     section, the Secretary shall give special consideration to 
     applications from institutions of higher education or 
     consortia of such institutions for programs that show the 
     greatest promise of success because of--
       ``(A) the extent to which programs in the academic 
     discipline with respect to which the application is made have 
     satisfactorily met the needs of public and private sector 
     employers;
       ``(B) the strength of the commitment of the institution of 
     higher education or consortium of such institutions to 
     cooperative education as demonstrated by the plans and 
     formalized institutional commitment statement which such 
     institution or consortium has made to continue the program 
     after the termination of Federal financial assistance;
       ``(C) the extent to which the institution or consortium of 
     institutions is committed to extending cooperative education 
     for students who can benefit; and
       ``(D) such other factors as are consistent with the 
     purposes of this section.
       ``(2) Additional special consideration.--The Secretary 
     shall also give special consideration to applications from 
     institutions of higher education or consortia of such 
     institutions that demonstrate a commitment to serving 
     underserved populations attending such institutions.

     ``SEC. 834. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING 
                   AND RESOURCE CENTERS; AND RESEARCH.

       ``(a) Authorization.--From the amounts appropriated under 
     section 835, the Secretary is authorized, in accordance with 
     the provisions of this section, to make grants and enter into 
     contracts--
       ``(1) from the amounts available in each fiscal year under 
     section 832(a)(3), for the conduct of demonstration projects 
     designed to demonstrate or determine the effectiveness of 
     innovative methods of cooperative education;
       ``(2) from the amounts available in each fiscal year under 
     section 832(a)(4), for the conduct of training and resource 
     centers designed to--
       ``(A) train personnel in the field of cooperative 
     education;
       ``(B) improve materials used in cooperative education 
     programs if such improvement is conducted in conjunction with 
     other activities described in this paragraph;
       ``(C) provide technical assistance to institutions of 
     higher education to increase the potential of the institution 
     to continue to conduct a cooperative education program 
     without Federal assistance;
       ``(D) encourage model cooperative education programs that 
     furnish education and training in occupations in which there 
     is a national need;
       ``(E) support partnerships under which an institution 
     carrying out a comprehensive cooperative education program 
     joins with one or more institutions of higher education in 
     order to--

[[Page 17184]]

       ``(i) assist the institution that is not the institution 
     carrying out the cooperative education program to develop and 
     expand an existing program of cooperative education; or
       ``(ii) establish and improve or expand comprehensive 
     cooperative education programs; and
       ``(F) encourage model cooperative education programs in the 
     fields of science and mathematics for women and minorities 
     who are underrepresented in such fields; and
       ``(3) from the amounts available in each fiscal year under 
     section 832(a)(5), for the conduct of research relating to 
     cooperative education.
       ``(b) Administrative Provision.--
       ``(1) In general.--To carry out this section, the Secretary 
     may--
       ``(A) make grants to or contracts with institutions of 
     higher education or consortia of such institutions; and
       ``(B) make grants to or contracts with other public or 
     private nonprofit agencies or organizations, whenever such 
     grants or contracts will contribute to the objectives of this 
     section.
       ``(2) Limitation.--
       ``(A) Contracts with institutions of higher education.--The 
     Secretary may use not more than three percent of the amount 
     appropriated to carry out this section in each fiscal year to 
     enter into contracts described in paragraph (1)(A).
       ``(B) Contracts with other agencies or organizations.--The 
     Secretary may use not more than three percent of the amount 
     appropriated to carry out this section in each fiscal year to 
     enter into contracts described in paragraph (1)(B).
       ``(c) Supplement Not Supplant.--A recipient of a grant or 
     contract under this section may use the funds provided only 
     to supplement funds made available from non-Federal sources 
     to carry out the activities supported by such grant or 
     contract, and in no case to supplant such funds from non-
     Federal sources.

     ``SEC. 835. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     part such sums as may be necessary for fiscal year 2009 and 
     each of the five succeeding fiscal years.

                  ``PART O--COLLEGE PARTNERSHIP GRANTS

     ``SEC. 841. COLLEGE PARTNERSHIP GRANTS AUTHORIZED.

       ``(a) Grants Authorized.--From the amount appropriated to 
     carry out this section, the Secretary shall award grants to 
     eligible partnerships for the purposes of developing and 
     implementing articulation agreements.
       ``(b) Eligible Partnerships.--For purposes of this part, an 
     eligible partnership shall include at least two institutions 
     of higher education, or a system of institutions of higher 
     education, and may include either or both of the following:
       ``(1) A consortia of institutions of higher education.
       ``(2) A State higher education agency.
       ``(c) Priority.--The Secretary shall give priority to 
     eligible partnerships that--
       ``(1) are located in a State that has employed strategies 
     described in section 486A(d); or
       ``(2) include--
       ``(A) one or more junior or community colleges (as defined 
     by section 312(f)) that award associate's degrees; and
       ``(B) one or more institutions of higher education that 
     offer a baccalaureate or post-baccalaureate degree not 
     awarded by the institutions described in subparagraph (A) 
     with which it is partnered.
       ``(d) Mandatory Use of Funds.--Grants awarded under this 
     part shall be used for--
       ``(1) the development of policies and programs to expand 
     opportunities for students to earn bachelor's degrees, by 
     facilitating the transfer of academic credits between 
     institutions and expanding articulation and guaranteed 
     transfer agreements between institutions of higher education, 
     including through common course numbering and general 
     education core curriculum;
       ``(2) academic program enhancements; and
       ``(3) programs to identify and remove barriers that inhibit 
     student transfers, including technological and informational 
     programs.
       ``(e) Optional Use of Funds.--Grants awarded under this 
     part may be used for--
       ``(1) support services to students participating in the 
     program, such as tutoring, mentoring, and academic and 
     personal counseling; and
       ``(2) any service that facilitates the transition of 
     students between the partner institutions.
       ``(f) Prohibition.--No funds provided under this section 
     shall be used to financially compensate an institution for 
     the purposes of entering into an articulation agreement or 
     for accepting students transferring into such institution.
       ``(g) Applications.--Any eligible partnership that desires 
     to obtain a grant under this section shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information or assurances as the Secretary 
     may require.
       ``(h) Definition.--For purposes of this section, the term 
     `articulation agreement' means an agreement between 
     institutions of higher education that specifies the 
     acceptability of courses in transfer toward meeting specific 
     degree requirements.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

                       ``PART P--JOBS TO CAREERS

     ``SEC. 851. GRANTS TO CREATE BRIDGES FROM JOBS TO CAREERS.

       ``(a) Purpose.--The purpose of this section is to provide 
     grants on a competitive basis to institutions of higher 
     education for the purpose of improving developmental 
     education to help students move more rapidly into for-credit 
     occupational courses and into better jobs that may require a 
     certificate or degree.
       ``(b) Authorization of Program.--From amounts appropriated 
     to carry out this section, the Secretary shall award grants, 
     on a competitive basis, to institutions of higher education, 
     as defined in section 101(a), to create workforce bridge 
     programs between developmental courses and for-credit courses 
     in occupational certificate programs that are articulated to 
     degree programs. Such workforce bridge programs shall focus 
     on--
       ``(1) improving developmental education, including English 
     language instruction, by customizing developmental education 
     to student career goals; and
       ``(2) helping students move rapidly from developmental 
     coursework into for-credit occupational courses and through 
     program completion.
       ``(c) Application.--An institution of higher education 
     desiring a grant under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing such information as the Secretary may 
     reasonably require.
       ``(d) Priorities.--The Secretary shall give priority to 
     applications that--
       ``(1) are from institutions of higher education in which 
     not less than 50 percent of the institution's entering first-
     year students who are subject to mandatory assessment are 
     assessed as needing developmental courses to bring reading, 
     writing, or mathematics skills up to college level; and
       ``(2) propose to replicate practices that have proven 
     effective with adults, or propose to collaborate with adult 
     education providers.
       ``(e) Required Activity.--An institution of higher 
     education that receives a grant under this section shall use 
     the grant funds to create workforce bridge programs to 
     customize developmental education curricula, including 
     English language instruction, to reflect the content of for-
     credit occupational certificate or degree programs, or 
     clusters of such programs, in which developmental education 
     students are enrolled or plan to enroll. Such workforce 
     bridge programs shall integrate the curricula and the 
     instruction of the developmental and college-level 
     coursework.
       ``(f) Permissible Activities.--An institution of higher 
     education that receives a grant under this section may use 
     the grant funds to carry out one or more of the following 
     activities:
       ``(1) Designing and implementing innovative ways to improve 
     retention in and completion of developmental education 
     courses, including enrolling students in cohorts, 
     accelerating course content, dually enrolling students in 
     developmental and college-level courses, tutoring, providing 
     counseling and other supportive services, and giving small, 
     material incentives for attendance and performance.
       ``(2) In consultation with faculty in the appropriate 
     departments, reconfiguring courses offered on-site during 
     standard academic terms for modular, compressed, or other 
     alternative schedules, or for distance-learning formats, to 
     meet the needs of working adults.
       ``(3) Developing counseling strategies that address the 
     needs of students in remedial education courses, and 
     including counseling students on career options and the range 
     of programs available, such as certificate programs that are 
     articulated to degree programs and programs designed to 
     facilitate transfer to four-year institutions of higher 
     education.
       ``(4) Improving the quality of teaching in remedial courses 
     through professional development, reclassification of such 
     teaching positions, or other means the institution of higher 
     education determines appropriate.
       ``(5) Any other activities the institution of higher 
     education and the Secretary determine will promote retention 
     of, and completion by, students attending institutions of 
     higher education.
       ``(g) Grant Period.--Grants made under this section shall 
     be for a period of not less than three years and not more 
     than five years.
       ``(h) Technical Assistance.--The Secretary shall provide 
     technical assistance to recipients of, and applicants for, 
     grants under this section.
       ``(i) Report and Summary.--Each institution of higher 
     education that receives a grant under this section shall 
     report to the Secretary on the effectiveness of the program 
     in enabling students to move rapidly from developmental 
     coursework into for-credit occupational courses and through 
     program completion. The Secretary shall summarize the 
     reports, identify best practices, and disseminate the 
     information from such summary and identification to the 
     public.
       ``(j) Authorization of Appropriations.--There are 
     authorized to carry out this section such sums as may be 
     necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.

   ``PART Q--RURAL DEVELOPMENT GRANTS FOR RURAL-SERVING COLLEGES AND 
                              UNIVERSITIES

     ``SEC. 861. GRANTS TO RURAL-SERVING INSTITUTIONS OF HIGHER 
                   EDUCATION.

       ``(a) Purposes.--The purposes of this section are--
       ``(1) to increase enrollment and graduation rates of 
     secondary school graduates and nontraditional students from 
     rural areas at two-year and four-year institutions of higher 
     education, and their articulation from two-year degree 
     programs into four-year degree programs; and
       ``(2) to promote economic growth and development in rural 
     America through partnership

[[Page 17185]]

     grants to consortia of rural-serving institutions of higher 
     education, local educational agencies, and regional 
     employers.
       ``(b) Definitions.--For the purposes of this section:
       ``(1) Rural-serving institution of higher education.--The 
     term `rural-serving institution of higher education' means an 
     institution of higher education that primarily serves rural 
     areas.
       ``(2) Rural area.--The term `rural area' means an area that 
     is defined, identified, or otherwise recognized as rural by a 
     governmental agency of the State in which the area is 
     located.
       ``(3) Nontraditional student.--The term `nontraditional 
     student' means an individual who--
       ``(A) delays enrollment in an institution of higher 
     education by three or more years after secondary school 
     graduation;
       ``(B) attends an institution of higher education part-time; 
     or
       ``(C) attends an institution of higher education and--
       ``(i) works full-time;
       ``(ii) is an independent student, as defined in section 
     480;
       ``(iii) has one or more dependents other than a spouse;
       ``(iv) is a single parent; or
       ``(v) does not have a secondary school diploma or the 
     recognized equivalent of such a diploma.
       ``(4) Regional employer.--The term `regional employer' 
     means an employer within a rural area.
       ``(c) Partnership.--
       ``(1) Required partners.--A rural-serving institution of 
     higher education, or a consortium of rural-serving 
     institutions of higher education, that receives a grant under 
     this section shall carry out the activities of the grant in 
     partnership with--
       ``(A) one or more local educational agencies serving a 
     rural area; and
       ``(B) one or more regional employers or local boards (as 
     such term is defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801)) serving a rural 
     area.
       ``(2) Optional partners.--A rural-serving institution of 
     higher education, or a consortium of rural-serving 
     institutions of higher education, that receives a grant under 
     this section, may carry out the activities of the grant in 
     partnership with--
       ``(A) an educational service agency (as defined in section 
     9101 of the Elementary and Secondary Education Act of 1965); 
     or
       ``(B) a nonprofit organization with demonstrated expertise 
     in rural education at the secondary and postsecondary levels.
       ``(d) Grants Authorized.--
       ``(1) In general.--From amounts made available under 
     subsection (g), the Secretary is authorized to award grants, 
     on a competitive basis, to eligible rural-serving 
     institutions of higher education or a consortium of such 
     institutions, to carry out the activities described in 
     subsection (f).
       ``(2) Duration.--A grant awarded under this section shall 
     be awarded for a period not to exceed three years.
       ``(3) Maximum and minimum grants.--No grant awarded under 
     this section shall be less than $200,000.
       ``(4) Special considerations.--In awarding grants under 
     this section, the Secretary shall give special consideration 
     to applications that demonstrate the most potential and 
     propose the most promising and innovative approaches for--
       ``(A) increasing the percentage of graduates of rural 
     secondary schools attending rural-serving institutions of 
     higher education;
       ``(B) meeting the employment needs of regional employers 
     with graduates of rural-serving institutions of higher 
     education; and
       ``(C) improving the health of the regional economy of a 
     rural area through a partnership of local educational 
     agencies serving the rural area, rural-serving institutions 
     of higher education, and regional employers.
       ``(5) Limitation.--A rural-serving institution of higher 
     education shall not receive more than one grant under this 
     section.
       ``(e) Applications.--Each rural-serving institution of 
     higher education desiring a grant under this section shall 
     submit to the Secretary an application at such time, in such 
     manner, and containing such information as the Secretary may 
     reasonably require.
       ``(f) Required Use of Funds.--A rural-serving institution 
     of higher education that receives a grant under this section 
     shall use grant funds for at least three of the following 
     four purposes:
       ``(1) To improve postsecondary enrollment rates for rural 
     secondary school students at rural-serving institutions of 
     higher education, which may include--
       ``(A) programs to provide students and families with 
     counseling related to applying for postsecondary education, 
     and Federal and State financial assistance for postsecondary 
     education;
       ``(B) programs that provide students and families of rural 
     high schools access and exposure to campuses, classes, 
     programs, and internships of rural-serving institutions of 
     higher education, including covering the cost of 
     transportation to and from such institutions; and
       ``(C) other initiatives that assist students and families 
     in applying for and developing interest in attending rural-
     serving institutions of higher education.
       ``(2) To increase enrollment rates of nontraditional 
     students in degree programs at rural-serving institutions of 
     higher education, which may include--
       ``(A) programs to provide nontraditional students with 
     counseling related to applying for postsecondary education, 
     and Federal and State financial assistance for postsecondary 
     education;
       ``(B) community outreach initiatives to encourage 
     nontraditional students to enroll in a rural-serving 
     institution of higher education; and
       ``(C) programs to improve the enrollment of nontraditional 
     students in two-year degree programs and the transition of 
     nontraditional students articulating from two-year degree 
     programs to four-year degree programs.
       ``(3) To create or strengthen academic programs at rural-
     serving institutions of higher education to prepare graduates 
     to enter into high-need occupations in the regional and local 
     economies.
       ``(4) To provide additional career training to students of 
     rural-serving institutions of higher education in fields 
     relevant to the regional economy.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as many be necessary for fiscal year 2009 and each of 
     the five succeeding fiscal years.

            ``PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION

     ``SEC. 871. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       ``(a) Program Authority.--From the amounts appropriated 
     under subsection (d), the Secretary may make grants to 
     institutions of higher education, or consortia of such 
     institutions, and enter into contracts with such 
     institutions, consortia, and other organizations, to develop, 
     implement, operate, improve, and disseminate programs of 
     prevention, education, and cost-effective technological 
     solutions, to reduce and eliminate the illegal downloading 
     and distribution of intellectual property. Such grants or 
     contracts may also be used for the support of higher 
     education centers that will provide training, technical 
     assistance, evaluation, dissemination, and associated 
     services and assistance to the higher education community as 
     determined by the Secretary and institutions of higher 
     education.
       ``(b) Awards.--Grants and contracts shall be awarded under 
     this section on a competitive basis.
       ``(c) Applications.--An institution of higher education or 
     a consortium of such institutions that desires to receive a 
     grant or contract under this section shall submit an 
     application to the Secretary at such time, in such manner, 
     and containing or accompanied by such information as the 
     Secretary may reasonably require by regulation.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

                ``PART S--TRAINING FOR REALTIME WRITERS

     ``SEC. 872. PROGRAM TO PROMOTE TRAINING AND JOB PLACEMENT OF 
                   REALTIME WRITERS.

       ``(a) Authorization of Grant Program.--
       ``(1) In general.--From the amounts appropriated to carry 
     out this section, the Secretary shall award grants, on a 
     competitive basis, to eligible entities under paragraph (2) 
     to promote training and placement of individuals, including 
     individuals who have completed a court reporting training 
     program, as realtime writers in order to meet the 
     requirements for closed captioning of video programming set 
     forth in section 713 of the Communications Act of 1934 (47 
     U.S.C. 613) and the rules prescribed thereunder.
       ``(2) Eligible entities.--For purposes of this section, an 
     eligible entity is a court reporting program that--
       ``(A) has a curriculum capable of training realtime writers 
     qualified to provide captioning services;
       ``(B) is accredited by an accrediting agency or association 
     recognized by the Secretary; and
       ``(C) is participating in student aid programs under title 
     IV.
       ``(3) Priority in grants.--In determining whether to make 
     grants under this section, the Secretary shall give a 
     priority to eligible entities that, as determined by the 
     Secretary--
       ``(A) possess the most substantial capability to increase 
     their capacity to train realtime writers;
       ``(B) demonstrate the most promising collaboration with 
     educational institutions, businesses, labor organizations, or 
     other community groups having the potential to train or 
     provide job placement assistance to realtime writers; or
       ``(C) propose the most promising and innovative approaches 
     for initiating or expanding training or job placement 
     assistance efforts with respect to realtime writers.
       ``(4) Duration of grant.--A grant under this section shall 
     be for a period of up to five years.
       ``(5) Maximum amount of grant.--The amount of a grant 
     provided under this subsection to an eligible entity may not 
     exceed $1,500,000 for the period of the grant.
       ``(b) Application.--
       ``(1) In general.--To receive a grant under subsection (a), 
     an eligible entity shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require. The application shall contain the information 
     set forth under paragraph (2).
       ``(2) Information.--Information in the application of an 
     eligible entity for a grant under subsection (a) shall 
     include the following:
       ``(A) A description of the training and assistance to be 
     funded using the grant amount, including how such training 
     and assistance will increase the number of realtime writers.

[[Page 17186]]

       ``(B) A description of performance measures to be utilized 
     to evaluate the progress of individuals receiving such 
     training and assistance in matters relating to enrollment, 
     completion of training, and job placement and retention.
       ``(C) A description of the manner in which the eligible 
     entity will ensure that recipients of scholarships, if any, 
     funded by the grant will be employed and retained as realtime 
     writers.
       ``(D) A description of the manner in which the eligible 
     entity intends to continue providing the training and 
     assistance to be funded by the grant after the end of the 
     grant period, including any partnerships or arrangements 
     established for that purpose.
       ``(E) A description of how the eligible entity will work 
     with local boards (as defined in section 101 of the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801)) to ensure that 
     training and assistance to be funded with the grant will 
     further local workforce goals, including the creation of 
     educational opportunities for individuals who are from 
     economically disadvantaged backgrounds or are displaced 
     workers.
       ``(F) Additional information, if any, on the eligibility of 
     the eligible entity for priority in the making of grants 
     under subsection (a)(3).
       ``(G) Such other information as the Secretary may require.
       ``(c) Use of Funds.--
       ``(1) In general.--An eligible entity receiving a grant 
     under subsection (a) shall use the grant amount for purposes 
     relating to the recruitment, training and assistance, and job 
     placement of individuals, including individuals who have 
     completed a court reporting training program, as realtime 
     writers, including--
       ``(A) recruitment;
       ``(B) subject to paragraph (2), the provision of 
     scholarships;
       ``(C) distance learning;
       ``(D) further developing and implementing both English and 
     Spanish curricula to more effectively train individuals in 
     realtime writing skills, and education in the knowledge 
     necessary for the delivery of high quality closed captioning 
     services;
       ``(E) mentoring students to ensure successful completion of 
     the realtime training and providing assistance in job 
     placement;
       ``(F) encouraging individuals with disabilities to pursue a 
     career in realtime writing; and
       ``(G) the employment and payment of personnel for the 
     purposes described in this paragraph.
       ``(2) Scholarships.--
       ``(A) Amount.--The amount of a scholarship under paragraph 
     (1)(B) shall be based on the amount of need of the 
     scholarship recipient for financial assistance, as determined 
     in accordance with part F of title IV.
       ``(B) Agreement.--Each recipient of a scholarship under 
     paragraph (1)(B) shall enter into an agreement with the 
     school in which the recipient is enrolled to provide realtime 
     writing services for the purposes described in subsection 
     (a)(1) for a period of time appropriate (as determined by the 
     Secretary) for the amount of the scholarship received.
       ``(C) Coursework and employment.--The Secretary shall 
     establish requirements for coursework and employment for 
     recipients of scholarships under paragraph (1)(B), including 
     requirements for repayment of scholarship amounts in the 
     event of failure to meet such requirements for coursework and 
     employment. The Secretary may waive, in whole or in part, the 
     requirements for repayment of scholarship amounts on the 
     basis of economic conditions which may affect the ability of 
     scholarship recipients to find work as realtime writers.
       ``(3) Administrative costs.--The recipient of a grant under 
     this section may not use more than five percent of the grant 
     amount to pay administrative costs associated with activities 
     funded by the grant. The Secretary shall use not more than 
     five percent of the amount available for grants under this 
     section in any fiscal year for administrative costs of the 
     program.
       ``(4) Supplement not supplant.--Grant amounts under this 
     section shall supplement and not supplant other Federal or 
     non-Federal funds of the grant recipient for purposes of 
     promoting the training and placement of individuals as 
     realtime writers.
       ``(d) Report.--
       ``(1) In general.--Each eligible entity receiving a grant 
     under subsection (a) shall submit to the Secretary, at the 
     end of the grant period, a report on the activities of such 
     entity with respect to the use of grant amounts during the 
     grant period.
       ``(2) Report information.--Each report of an eligible 
     entity under paragraph (1) shall include--
       ``(A) an assessment by the entity of the effectiveness of 
     activities carried out using such funds in increasing the 
     number of realtime writers, using the performance measures 
     submitted by the eligible entity in the application for the 
     grant under subsection (b)(2); and
       ``(B) a description of the best practices identified by the 
     eligible entity for increasing the number of individuals who 
     are trained, employed, and retained in employment as realtime 
     writers.
       ``(3) Summaries.--The Secretary shall summarize the reports 
     submitted under paragraph (2) and make such summary available 
     on the Department's website.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

      ``PART T--CENTERS OF EXCELLENCE FOR VETERAN STUDENT SUCCESS

     ``SEC. 873. MODEL PROGRAMS FOR CENTERS OF EXCELLENCE FOR 
                   VETERAN STUDENT SUCCESS.

       ``(a) Purpose.--It is the purpose of this section to 
     encourage model programs to support veteran student success 
     in postsecondary education by coordinating services to 
     address the academic, financial, physical, and social needs 
     of veteran students.
       ``(b) Grants Authorized.--
       ``(1) In general.--Subject to the availability of 
     appropriations under subsection (f), the Secretary shall 
     award grants to institutions of higher education to develop 
     model programs to support veteran student success in 
     postsecondary education.
       ``(2) Grant period.--A grant awarded under this section 
     shall be awarded for a period of three years.
       ``(c) Use of Grants.--
       ``(1) Required activities.--An institution of higher 
     education receiving a grant under this section shall use such 
     grant to carry out a model program that includes--
       ``(A) establishing a Center of Excellence for Veteran 
     Student Success on the campus of the institution to provide a 
     single point of contact to coordinate comprehensive support 
     services for veteran students;
       ``(B) establishing a veteran student support team, 
     including representatives from the offices of the institution 
     responsible for admissions, registration, financial aid, 
     veterans benefits, academic advising, student health, 
     personal or mental health counseling, career advising, 
     disabilities services, and any other office of the 
     institution that provides support to veteran students on 
     campus;
       ``(C) providing a coordinator whose primary responsibility 
     is to coordinate the model program carried out under this 
     section;
       ``(D) monitoring the rates of veteran student enrollment, 
     persistence, and completion; and
       ``(E) developing a plan to sustain the Center of Excellence 
     for Veteran Student Success after the grant period.
       ``(2) Other authorized activities.--An institution of 
     higher education receiving a grant under this section may use 
     such grant to carry out any of the following activities with 
     respect to veteran students:
       ``(A) Outreach and recruitment of such students.
       ``(B) Supportive instructional services for such students, 
     which may include--
       ``(i) personal, academic, and career counseling, as an 
     ongoing part of the program;
       ``(ii) tutoring and academic skill-building instruction 
     assistance, as needed; and
       ``(iii) assistance with special admissions and transfer of 
     credit from previous postsecondary education or experience.
       ``(C) Assistance in obtaining student financial aid.
       ``(D) Housing support for veteran students living in 
     institutional facilities and commuting veteran students.
       ``(E) Cultural events, academic programs, orientation 
     programs, and other activities designed to ease the 
     transition to campus life for veteran students.
       ``(F) Support for veteran student organizations and veteran 
     student support groups on campus.
       ``(G) Coordination of academic advising and admissions 
     counseling with military bases and national guard units in 
     the area.
       ``(H) Other support services the institution determines to 
     be necessary to ensure the success of veterans in achieving 
     educational and career goals.
       ``(d) Application; Selection.--
       ``(1) Application.--To be considered for a grant under this 
     section, an institution of higher education shall submit to 
     the Secretary an application at such time, in such manner, 
     and accompanied by such information as the Secretary may 
     require.
       ``(2) Selection considerations.--In awarding grants under 
     this section, the Secretary shall consider--
       ``(A) the number of veteran students enrolled at an 
     institution of higher education; and
       ``(B) the need for model programs to address the needs of 
     veteran students at a wide range of institutions of higher 
     education, including the need to provide--
       ``(i) an equitable distribution of such grants to 
     institutions of higher education of various types and sizes;
       ``(ii) an equitable geographic distribution of such grants; 
     and
       ``(iii) an equitable distribution of such grants among 
     rural and urban areas.
       ``(e) Evaluation and Accountability Plan.--The Secretary 
     shall develop an evaluation and accountability plan for model 
     programs funded under this section to objectively measure the 
     impact of such programs, including a measure of whether 
     postsecondary education enrollment, persistence, and 
     completion for veterans increases as a result of such 
     programs.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

              ``PART U--UNIVERSITY SUSTAINABILITY PROGRAMS

     ``SEC. 881. SUSTAINABILITY PLANNING GRANTS AUTHORIZED.

       ``(a) Program Authorized.--
       ``(1) In general.--From the amounts appropriated to carry 
     out this section, the Secretary, in consultation with the 
     Administrator of the

[[Page 17187]]

     Environmental Protection Agency, shall make grants to 
     eligible entities to establish sustainability programs to 
     design and implement sustainability practices, including in 
     the areas of energy management, greenhouse gas emissions 
     reductions, green building, waste management, purchasing, 
     transportation, and toxics management, and other aspects of 
     sustainability that integrate campus operations with 
     multidisciplinary academic programs and are applicable to the 
     private and government sectors.
       ``(2) Period of grant.--The provision of payments under a 
     grant under paragraph (1) shall extend over a period of not 
     more than four fiscal years.
       ``(3) Definition of eligible entity.--For purposes of this 
     part, the term `eligible entity' means--
       ``(A) an institution of higher education; or
       ``(B) a nonprofit consortium, association, alliance, or 
     collaboration operating in partnership with one or more 
     institutions of higher education that received funds for the 
     implementation of work associated with sustainability 
     programs under this part.
       ``(b) Applications.--
       ``(1) In general.--To receive a grant under subsection 
     (a)(1), an eligible entity shall submit an application to the 
     Secretary at such time, in such form, and containing such 
     information as the Secretary may reasonably require.
       ``(2) Assurances.--Such application shall include 
     assurances that the eligible entity--
       ``(A) has developed a plan, including an evaluation 
     component, for the program component established pursuant to 
     subsection (c);
       ``(B) shall use Federal funds received from a grant under 
     subsection (a) to supplement, not supplant, non-Federal funds 
     that would otherwise be available for projects funded under 
     this section;
       ``(C) shall provide, with respect to any fiscal year in 
     which such entity receives funds from a grant under 
     subsection (a)(1), non-Federal funds or an in-kind 
     contribution in an amount equal to 20 percent of funds from 
     such grant, for the purpose of carrying out the program 
     component established pursuant to subsection (c); and
       ``(D) shall collaborate with business, government, and the 
     nonprofit sectors in the development and implementation of 
     its sustainability plan.
       ``(c) Use of Funds.--
       ``(1) Individual institutions.--Grants made under 
     subsection (a) may be used by an eligible entity that is an 
     individual institution of higher education for the following 
     purposes:
       ``(A) To develop and implement administrative and 
     operations practices at an institution of higher education 
     that test, model, and analyze principles of sustainability.
       ``(B) To establish multidisciplinary education, research, 
     and outreach programs at an institution of higher education 
     that address the environmental, social, and economic 
     dimensions of sustainability.
       ``(C) To support research and teaching initiatives that 
     focus on multidisciplinary and integrated environmental, 
     economic, and social elements.
       ``(D) To establish initiatives in the areas of energy 
     management, greenhouse gas emissions reductions, green 
     building, waste management, purchasing, toxics management, 
     transportation, and other aspects of sustainability.
       ``(E) To support student, faculty, and staff work at an 
     institution of higher education to implement, research, and 
     evaluate sustainable practices.
       ``(F) To expand sustainability literacy on campus.
       ``(G) To integrate sustainability curricula in all programs 
     of instruction, particularly in business, architecture, 
     technology, manufacturing, engineering, and science programs.
       ``(2) Partnerships.--Grants made under subsection (a) may 
     be used by an eligible entity that is a nonprofit consortium, 
     association, alliance, or collaboration operating in 
     partnership with one or more institutions of higher education 
     for the following purposes:
       ``(A) To conduct faculty, staff and administrator training 
     on the subjects of sustainability and institutional change.
       ``(B) To compile, evaluate, and disseminate best practices, 
     case studies, guidelines and standards regarding 
     sustainability.
       ``(C) To conduct efforts to engage external stakeholders 
     such as business, alumni, and accrediting agencies in the 
     process of building support for research, education, and 
     technology development for sustainability.
       ``(D) To conduct professional development programs for 
     faculty in all disciplines to enable faculty to incorporate 
     sustainability content in their courses.
       ``(E) To create the analytical tools necessary for 
     institutions of higher education to assess and measure their 
     individual progress toward fully sustainable campus 
     operations and fully integrating sustainability into the 
     curriculum.
       ``(F) To develop educational benchmarks for institutions of 
     higher education to determine the necessary rigor and 
     effectiveness of academic sustainability programs.
       ``(d) Reports.--An eligible entity that receives a grant 
     under subsection (a) shall submit to the Secretary, for each 
     fiscal year in which the entity receives amounts from such 
     grant, a report that describes the work conducted pursuant to 
     subsection (c), research findings and publications, 
     administrative savings experienced, and an evaluation of the 
     program.
       ``(e) Allocation Requirement.--The Secretary may not make 
     grants under subsection (a) to any eligible entity in a total 
     amount that is less than $250,000 or more than $2,000,000.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

               ``PART V--MODELING AND SIMULATION PROGRAMS

     ``SEC. 891. MODELING AND SIMULATION.

       ``(a) Purpose; Definition.--
       ``(1) Purpose.--The purpose of this section is to promote 
     the study of modeling and simulation at institutions of 
     higher education, through the collaboration with new and 
     existing programs, and specifically to promote the use of 
     technology in such study through the creation of accurate 
     models that can simulate processes or recreate real life, 
     by--
       ``(A) establishing a task force at the Department of 
     Education to raise awareness of and define the study of 
     modeling and simulation;
       ``(B) providing grants to institutions of higher education 
     to develop new modeling and simulation degree programs; and
       ``(C) providing grants for institutions of higher education 
     to enhance existing modeling and simulation degree programs.
       ``(2) Definition.--In this section, the term `modeling and 
     simulation' means a field of study related to the application 
     of computer science and mathematics to develop a level of 
     understanding of the interaction of the parts of a system and 
     of a system as a whole.
       ``(b) Establishment of Task Force.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall establish a task force 
     within the Department to study modeling and simulation and to 
     support the development of the modeling and simulation field. 
     The activities of such task force shall include--
       ``(A) helping to define the study of modeling and 
     simulation (including the content of modeling and simulation 
     classes and programs);
       ``(B) identifying best practices for such study;
       ``(C) identifying core knowledge and skills that 
     individuals who participate in modeling and simulation 
     programs should acquire; and
       ``(D) providing recommendations to the Secretary with 
     respect to--
       ``(i) the information described in subparagraphs (A) 
     through (C); and
       ``(ii) a system by which grants under this section will be 
     distributed.
       ``(2) Task force membership.--The membership of the task 
     force under this subsection shall be composed of 
     representatives from--
       ``(A) institutions of higher education with established 
     modeling and simulation degree programs;
       ``(B) the National Science Foundation;
       ``(C) Federal Government agencies that use modeling and 
     simulation extensively, including the Department of Defense, 
     the National Institutes of Health, the Department of Homeland 
     Security, the Department of Health and Human Services, the 
     Department of Energy, and the Department of Transportation;
       ``(D) private industries with a primary focus on modeling 
     and simulation;
       ``(E) national modeling and simulation organizations; and
       ``(F) the Office of Science and Technology Policy.
       ``(c) Enhancing Modeling and Simulation at Institutions of 
     Higher Education.--
       ``(1) Enhancement grants authorized.--
       ``(A) In general.--The Secretary is authorized to award 
     grants, on a competitive basis, to eligible institutions to 
     enhance modeling and simulation degree programs at such 
     eligible institutions.
       ``(B) Duration of grant.--A grant awarded under this 
     subsection shall be awarded for a three-year period, and such 
     grant period may be extended for not more than two years if 
     the Secretary determines that an eligible institution has 
     demonstrated success in enhancing the modeling and simulation 
     degree program at such eligible institution.
       ``(C) Minimum grant amount.--Subject to the availability of 
     appropriations, a grant awarded to an eligible institution 
     under this subsection shall not be less than $750,000.
       ``(D) Non-federal share.--Each eligible institution 
     receiving a grant under this subsection shall provide, from 
     non-Federal sources, in cash or in-kind, an amount equal to 
     25 percent of the amount of the grant to carry out the 
     activities supported by the grant. The Secretary may waive 
     the non-Federal share requirement under this subparagraph for 
     an eligible institution if the Secretary determines a waiver 
     to be appropriate based on the financial ability of the 
     institution.
       ``(2) Eligible institutions.--For the purposes of this 
     subsection, an eligible institution is an institution of 
     higher education that--
       ``(A) has an established modeling and simulation degree 
     program, including a major, minor, or career-track program; 
     or
       ``(B) has an established modeling and simulation 
     certificate or concentration program.
       ``(3) Application.--To be considered for a grant under this 
     subsection, an eligible institution shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require. 
     Such application shall include--
       ``(A) a letter from the president or provost of the 
     eligible institution that demonstrates the institution's 
     commitment to the enhancement of the modeling and simulation 
     program at the institution of higher education;
       ``(B) an identification of designated faculty responsible 
     for the enhancement of the institution's modeling and 
     simulation program; and
       ``(C) a detailed plan for how the grant funds will be used 
     to enhance the modeling and simulation program of the 
     institution.

[[Page 17188]]

       ``(4) Uses of funds.--A grant awarded under this subsection 
     shall be used by an eligible institution to carry out the 
     plan developed in accordance with paragraph (3)(C) to enhance 
     modeling and simulation programs at the institution, which 
     may include--
       ``(A) in the case of an institution that is eligible under 
     paragraph (2)(B), activities to assist in the establishment 
     of a major, minor, or career-track modeling and simulation 
     program at the eligible institution;
       ``(B) expanding the multidisciplinary nature of the 
     institution's modeling and simulation programs;
       ``(C) recruiting students into the field of modeling and 
     simulation through the provision of fellowships or 
     assistantships;
       ``(D) creating new courses to complement existing courses 
     and reflect emerging developments in the modeling and 
     simulation field;
       ``(E) conducting research to support new methodologies and 
     techniques in modeling and simulation; and
       ``(F) purchasing equipment necessary for modeling and 
     simulation programs.
       ``(d) Establishing Modeling and Simulation Programs.--
       ``(1) Establishment grants authorized.--
       ``(A) In general.--The Secretary is authorized to award 
     grants to institutions of higher education to establish a 
     modeling and simulation program, including a major, minor, 
     career-track, certificate, or concentration program.
       ``(B) Duration of grant.--A grant awarded under this 
     subsection shall be awarded for a three-year period, and such 
     grant period may be extended for not more than two years if 
     the Secretary determines that an eligible institution has 
     demonstrated success in establishing a modeling and 
     simulation degree program at such eligible institution.
       ``(C) Minimum grant amount.--Subject to the availability of 
     appropriations, a grant awarded to an eligible institution 
     under this subsection shall not be less than $750,000.
       ``(D) Non-federal share.--Each eligible institution 
     receiving a grant under this subsection shall provide, from 
     non-Federal sources, in cash or in-kind, an amount equal to 
     25 percent of the amount of the grant to carry out the 
     activities supported by the grant. The Secretary may waive 
     the non-Federal share requirement under this subparagraph for 
     an eligible institution if the Secretary determines a waiver 
     to be appropriate based on the financial ability of the 
     institution.
       ``(2) Application.--To apply for a grant under this 
     subsection, an eligible institution shall submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require. 
     Such application shall include--
       ``(A) a letter from the president or provost of the 
     eligible institution that demonstrates the institution's 
     commitment to the establishment of a modeling and simulation 
     program at the institution of higher education;
       ``(B) a detailed plan for how the grant funds will be used 
     to establish a modeling and simulation program at the 
     institution; and
       ``(C) a description of how the modeling and simulation 
     program established under this subsection will complement 
     existing programs and fit into the institution's current 
     program and course offerings.
       ``(3) Uses of funds.--A grant awarded under this subsection 
     may be used by an eligible institution to--
       ``(A) establish, or work toward the establishment of, a 
     modeling and simulation program, including a major, minor, 
     career-track, certificate, or concentration program at the 
     eligible institution;
       ``(B) provide adequate staffing to ensure the successful 
     establishment of the modeling and simulation program, which 
     may include the assignment of full-time dedicated or 
     supportive faculty; and
       ``(C) purchase equipment necessary for a modeling and 
     simulation program.
       ``(e) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years. Of the amounts authorized to be 
     appropriated for each fiscal year--
       ``(1) $1,000,000 is authorized to carry out the activities 
     of the task force established pursuant to subsection (b); and
       ``(2) of the amount remaining after the allocation for 
     paragraph (1)--
       ``(A) 50 percent is authorized to carry out the grant 
     program under subsection (c); and
       ``(B) 50 percent is authorized to carry out the grant 
     program under subsection (d).

                       ``PART W--PATH TO SUCCESS

     ``SEC. 892. PATH TO SUCCESS.

       ``(a) Purpose.--The purpose of this section is to encourage 
     community supported programs that--
       ``(1) leverage and enhance community support for at-risk 
     young adults by facilitating the transition of such young 
     adults who are eligible individuals into productive learning 
     environments where such young adults can obtain the life, 
     social, academic, career, and technical skills and 
     credentials necessary to strengthen the Nation's workforce;
       ``(2) provide counseling, as appropriate, for eligible 
     individuals participating in the programs to allow the 
     eligible individuals to build a relationship with one or more 
     guidance counselors during the period that the individuals 
     are enrolled in the programs, including providing referrals 
     and connections to community resources that help eligible 
     individuals transition back into the community with the 
     necessary life, social, academic, career, and technical 
     skills after being in detention, or incarcerated, 
     particularly resources related to health, housing, job 
     training, and workplace readiness;
       ``(3) provide training and education for eligible 
     individuals participating in the programs, to allow such 
     individuals to assist community officials and law enforcement 
     agencies with the deterrence and prevention of gang and youth 
     violence by participating in seminars, training, and 
     workshops throughout the community; and
       ``(4) provide each eligible individual participating in the 
     programs with individual attention based on a curriculum that 
     matches the interests and abilities of the individual to the 
     resources of the program.
       ``(b) Reentry Education Program.--
       ``(1) Grant program established.--From the amounts 
     appropriated under subsection (g), the Secretary is 
     authorized to award grants to community colleges to enter 
     into and maintain partnerships with juvenile detention 
     centers and secure juvenile justice residential facilities to 
     provide assistance, services, and education to eligible 
     individuals who reenter the community and pursue, in 
     accordance with the requirements of this section, at least 
     one of the following:
       ``(A) A certificate of completion for a specialized area of 
     study, such as career and technical training and other 
     alternative postsecondary educational programs.
       ``(B) An associate's degree.
       ``(2) Grant period.--A grant awarded under this part shall 
     be for one four-year period, and may be renewed for an 
     additional period as the Secretary determines to be 
     appropriate.
       ``(3) Application.--A community college desiring to receive 
     a grant under this section shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary shall require. Such application 
     shall include--
       ``(A) an assessment of the existing community resources 
     available to serve at-risk youth;
       ``(B) a detailed description of the program and activities 
     the community college will carry out with such grant; and
       ``(C) a proposed budget describing how the community 
     college will use the funds made available by such grant.
       ``(4) Priority.--In awarding grants under this part, the 
     Secretary shall give priority to community colleges that 
     propose to serve the highest number of priority individuals, 
     and, among such community colleges, shall give priority to 
     community colleges that the Secretary determines will best 
     carry out the purposes of this part, based on the 
     applications submitted in accordance with paragraph (3).
       ``(c) Allowable Uses of Funds.--A community college awarded 
     a grant under this part may use such grant to--
       ``(1) pay for tuition and transportation costs of eligible 
     individuals;
       ``(2) establish and carry out an education program that 
     includes classes for eligible individuals that--
       ``(A) provide marketable life and social skills to such 
     individuals;
       ``(B) meet the education program requirements under 
     subsection (d), including as appropriate, courses necessary 
     for the completion of a secondary school diploma or the 
     recognized equivalent;
       ``(C) promote the civic engagement of such individuals; and
       ``(D) facilitate a smooth reentry of such individuals into 
     the community;
       ``(3) create and carry out a mentoring program that is--
       ``(A) specifically designed to help eligible individuals 
     with the potential challenges of the transitional period from 
     detention to release;
       ``(B) created in consultation with guidance counselors, 
     academic advisors, law enforcement officials, and other 
     community resources; and
       ``(C) administered by a program coordinator, selected and 
     employed by the community college, who shall oversee each 
     individual's development and shall serve as the immediate 
     supervisor and reporting officer to whom the academic 
     advisors, guidance counselors, and volunteers shall report 
     regarding the progress of each such individual;
       ``(4) facilitate employment opportunities for eligible 
     individuals by entering into partnerships with public and 
     private entities to provide opportunities for internships, 
     apprenticeships, and permanent employment, as possible, for 
     such individuals; and
       ``(5) provide training for eligible individuals 
     participating in the programs, to allow such individuals to 
     assist community officials and law enforcement agencies with 
     the deterrence and prevention of gang and youth violence by 
     participating in seminars and workshop series throughout the 
     community.
       ``(d) Education Program Requirements.--An education program 
     established and carried out under subsection (c) shall--
       ``(1) include classes that are required for completion of a 
     certificate, diploma, or degree described in subparagraph (A) 
     or (B) of subsection (b)(1), including as appropriate courses 
     necessary for the completion of a secondary school diploma or 
     the recognized equivalent;
       ``(2) provide a variety of academic programs, with various 
     completion requirements, to accommodate the diverse academic 
     backgrounds, learning styles, and academic and career 
     interests of the eligible individuals who participate in the 
     education program;
       ``(3) offer flexible academic programs that are designed to 
     improve the academic development and achievement of eligible 
     individuals, and to avoid high attrition rates for such 
     individuals; and

[[Page 17189]]

       ``(4) provide for a uniquely designed education plan for 
     each eligible individual participating in the program, which 
     shall require such individual to receive, at a minimum, a 
     certificate or degree described in subparagraph (A) or (B) of 
     subsection (b)(1) to successfully complete such program.
       ``(e) Reports.--Each community college awarded a grant 
     under this part shall submit to the Secretary a report--
       ``(1) documenting the results of the program carried out 
     with such grant; and
       ``(2) evaluating the effectiveness of activities carried 
     out through such program.
       ``(f) Definitions.--In this section:
       ``(1) Community college.--The term `community college' has 
     the meaning given the term `junior or community college' in 
     section 312(f).
       ``(2) Eligible individual.--The term `eligible individual' 
     means an individual who--
       ``(A) is 16 to 25 years of age (inclusive); and
       ``(B)(i) has been convicted of a criminal offense; and
       ``(ii) is detained in, or has been released from, a 
     juvenile detention center or secure juvenile justice 
     residential facility.
       ``(3) Gang-related offense.--
       ``(A) In general.--The term `gang-related offense' means an 
     offense that involves the circumstances described in 
     subparagraph (B) and that is--
       ``(i) a Federal or State felony involving a controlled 
     substance (as defined in section 102 of the Controlled 
     Substances Act (21 U.S.C. 802)) for which the maximum penalty 
     is not less than five years;
       ``(ii) a Federal or State crime of violence that has as an 
     element the use or attempted use of physical force against 
     the person of another for which the maximum penalty is not 
     less than six months; or
       ``(iii) a conspiracy to commit an offense described in 
     clause (i) or (ii).
       ``(B) Circumstances.--The circumstances described in this 
     subparagraph are that the offense described in subparagraph 
     (A) was committed by a person who--
       ``(i) participates in a criminal street gang (as defined in 
     section 521(a) of title 18, United States Code) with 
     knowledge that such gang's members engage in or have engaged 
     in a continuing series of offenses described in subparagraph 
     (A); and
       ``(ii) intends to promote or further the felonious 
     activities of the criminal street gang or maintain or 
     increase the person's position in the gang.
       ``(4) Priority individual.--The term `priority individual' 
     means an individual who--
       ``(A) is an eligible individual;
       ``(B) has been convicted of a gang-related offense; and
       ``(C) has served or is serving a period of detention in a 
     juvenile detention center or secure juvenile justice 
     residential facility for such offense.
       ``(5) Guidance counselor.--The term `guidance counselor' 
     means an individual who works with at-risk youth on a one-on-
     one basis, to establish a supportive relationship with such 
     at-risk youth and to provide such at-risk youth with academic 
     assistance and exposure to new experiences that enhance their 
     ability to become responsible citizens.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

   ``PART X--SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT PROGRAM

     ``SEC. 893. SCHOOL OF VETERINARY MEDICINE COMPETITIVE GRANT 
                   PROGRAM.

       ``(a) In General.--From the amounts appropriated under 
     subsection (g), the Secretary of Health and Human Services 
     shall award competitive grants to eligible entities for the 
     purpose of improving public health preparedness through 
     increasing the number of veterinarians in the workforce.
       ``(b) Eligible Entities.--To be eligible to receive a grant 
     under subsection (a), an entity shall--
       ``(1) be--
       ``(A) a public or other nonprofit school of veterinary 
     medicine that is accredited by a nationally recognized 
     accrediting agency or association recognized by the Secretary 
     of Education pursuant to part H of title IV;
       ``(B) a public or nonprofit, department of comparative 
     medicine, department of veterinary science, school of public 
     health, or school of medicine that is accredited by a 
     nationally recognized accrediting agency or association 
     recognized by the Secretary of Education pursuant to part H 
     of title IV and that offers graduate training for 
     veterinarians in a public health practice area as determined 
     by the Secretary of Health and Human Services; or
       ``(C) a public or nonprofit entity that--
       ``(i) conducts recognized residency training programs for 
     veterinarians that are approved by a veterinary specialty 
     organization that is recognized by the American Veterinary 
     Medical Association; and
       ``(ii) offers postgraduate training for veterinarians in a 
     public health practice area as determined by the Secretary of 
     Health and Human Services; and
       ``(2) prepare and submit to the Secretary of Health and 
     Human Services an application, at such time, in such manner, 
     and containing such information as the Secretary of Health 
     and Human Services may require.
       ``(c) Consideration of Applications.--The Secretary of 
     Health and Human Services shall establish procedures to 
     ensure that applications under subsection (b)(2) are 
     rigorously reviewed and that grants are competitively awarded 
     based on--
       ``(1) the ability of the applicant to increase the number 
     of veterinarians who are trained in specified public health 
     practice areas as determined by the Secretary of Health and 
     Human Services;
       ``(2) the ability of the applicant to increase capacity in 
     research on high priority disease agents; or
       ``(3) any other consideration the Secretary of Health and 
     Human Services determines necessary.
       ``(d) Preference.--In awarding grants under subsection (a), 
     the Secretary of Health and Human Services shall give 
     preference to applicants that demonstrate a comprehensive 
     approach by involving more than one school of veterinary 
     medicine, department of comparative medicine, department of 
     veterinary science, school of public health, school of 
     medicine, or residency training program that offers 
     postgraduate training for veterinarians in a public health 
     practice area as determined by the Secretary of Health and 
     Human Services.
       ``(e) Use of Funds.--Amounts received under a grant under 
     this section shall be used by a grantee to increase the 
     number of veterinarians in the workforce through paying costs 
     associated with the expansion of academic programs at schools 
     of veterinary medicine, departments of comparative medicine, 
     departments of veterinary science, or entities offering 
     residency training programs, or academic programs that offer 
     postgraduate training for veterinarians or concurrent 
     training for veterinary students in specific areas of 
     specialization, which costs may include minor renovation and 
     improvement in classrooms, libraries, and laboratories.
       ``(f) Definition of Public Health Practice Area.--In this 
     section, the term `public health practice area' includes the 
     areas of bioterrorism and emergency preparedness, 
     environmental health, food safety and food security, 
     regulatory medicine, diagnostic laboratory medicine, and 
     biomedical research.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years. Amounts appropriated under this 
     subsection shall remain available until expended.

  ``PART Y--EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION PROGRAM

     ``SEC. 894. EARLY FEDERAL PELL GRANT COMMITMENT DEMONSTRATION 
                   PROGRAM.

       ``(a) Demonstration Program Authority.--
       ``(1) In general.--The Secretary is authorized to carry out 
     an Early Federal Pell Grant Commitment Demonstration Program 
     under which--
       ``(A) the Secretary awards grants to four State educational 
     agencies, in accordance with paragraph (2), to pay the 
     administrative expenses incurred in participating in the 
     demonstration program under this section; and
       ``(B) the Secretary awards Federal Pell Grants to 
     participating students in accordance with this section and 
     consistent with section 401.
       ``(2) Grants.--
       ``(A) In general.--From amounts appropriated under 
     subsection (h) for a fiscal year, the Secretary is authorized 
     to award grants to four State educational agencies to enable 
     the State educational agencies to pay the administrative 
     expenses incurred in participating in the demonstration 
     program under this section by carrying out a demonstration 
     project under which eighth grade students described in 
     subsection (b)(1)(B) receive a commitment early in the 
     students' academic careers to receive a Federal Pell Grant.
       ``(B) Equal amounts.--The Secretary shall award grants 
     under this section in equal amounts to each of the four 
     participating State educational agencies.
       ``(b) Demonstration Project Requirements.--Each of the four 
     demonstration projects assisted under this section shall meet 
     the following requirements:
       ``(1) Participants.--
       ``(A) In general.--The State educational agency shall make 
     participation in the demonstration project available to two 
     cohorts of students, which shall consist of--
       ``(i) one cohort of eighth grade students who begin 
     participating in the first academic year for which funds have 
     been appropriated to carry out this section; and
       ``(ii) one cohort of eighth grade students who begin 
     participating in the academic year succeeding the academic 
     year described in clause (i).
       ``(B) Students in each cohort.--Each cohort of students 
     shall consist of not more than 10,000 eighth grade students 
     who qualify for a free or reduced price school lunch under 
     the Richard B. Russell National School Lunch Act (42 U.S.C. 
     1751 et seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 
     1771 et seq.).
       ``(2) Student data.--The State educational agency shall 
     ensure that student data from local educational agencies 
     serving students who participate in the demonstration 
     project, as well as student data from local educational 
     agencies serving a comparable group of students who do not 
     participate in the demonstration project, are available for 
     evaluation of the demonstration project, and are made 
     available in accordance with the requirements of section 444 
     of the General Education Provisions Act (the Family 
     Educational Rights and Privacy Act of 1974).
       ``(3) Federal pell grant commitment.--Each student who 
     participates in the demonstration project receives a 
     commitment from

[[Page 17190]]

     the Secretary to receive a Federal Pell Grant during the 
     first academic year that the student is in attendance at an 
     institution of higher education as an undergraduate, provided 
     that the student applies for Federal financial aid (via the 
     FAFSA or EZ FAFSA) for such academic year.
       ``(4) Application process.--Each State educational agency 
     shall establish an application process to select local 
     educational agencies within the State to participate in the 
     demonstration project in accordance with subsection (d)(2).
       ``(5) Local educational agency participation.--Subject to 
     the 10,000 statewide student limitation described in 
     paragraph (1), a local educational agency serving students, 
     not less than 50 percent of whom are eligible for a free or 
     reduced price school lunch under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.) or the 
     Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq.), shall 
     be eligible to participate in the demonstration project.
       ``(c) State Educational Agency Applications.--
       ``(1) In general.--Each State educational agency desiring 
     to participate in the demonstration program under this 
     section shall submit an application to the Secretary at such 
     time and in such manner as the Secretary may require.
       ``(2) Contents.--Each application shall include--
       ``(A) a description of the proposed targeted information 
     campaign for the demonstration project and a copy of the plan 
     described in subsection (f)(2);
       ``(B) a description of the student population that will 
     receive an early commitment to receive a Federal Pell Grant 
     under this section;
       ``(C) an assurance that the State educational agency will 
     fully cooperate with the ongoing evaluation of the 
     demonstration project; and
       ``(D) such other information as the Secretary may require.
       ``(d) Selection Considerations.--
       ``(1) Selection of state educational agencies.--In 
     selecting State educational agencies to participate in the 
     demonstration program under this section, the Secretary shall 
     consider--
       ``(A) the number and quality of State educational agency 
     applications received;
       ``(B) a State educational agency's--
       ``(i) financial responsibility;
       ``(ii) administrative capability;
       ``(iii) commitment to focusing resources, in addition to 
     any resources provided on students who receive assistance 
     under part A of title I of the Elementary and Secondary 
     Education Act of 1965;
       ``(iv) ability and plans to run an effective and thorough 
     targeted information campaign for students served by local 
     educational agencies eligible to participate in the 
     demonstration project; and
       ``(v) ability to ensure the participation in the 
     demonstration project of a diverse group of students, 
     including with respect to ethnicity and gender.
       ``(2) Local educational agency.--In selecting local 
     educational agencies to participate in a demonstration 
     project under this section, the State educational agency 
     shall consider--
       ``(A) the number and quality of local educational agency 
     applications received;
       ``(B) a local educational agency's--
       ``(i) financial responsibility;
       ``(ii) administrative capability;
       ``(iii) commitment to focusing resources on students who 
     receive assistance under part A of title I of the Elementary 
     and Secondary Education Act of 1965;
       ``(iv) ability and plans to run an effective and thorough 
     targeted information campaign for students served by the 
     local educational agency; and
       ``(v) ability to ensure the participation in the 
     demonstration project of a diverse group of students.
       ``(e) Evaluation.--
       ``(1) In general.--From amounts appropriated under 
     subsection (h) for a fiscal year, the Secretary shall reserve 
     not more than $1,000,000 to award a grant or contract to an 
     organization outside the Department for an independent 
     evaluation of the impact of the demonstration program 
     assisted under this section.
       ``(2) Competitive basis.--The grant or contract shall be 
     awarded on a competitive basis.
       ``(3) Matters evaluated.--The evaluation described in this 
     subsection shall--
       ``(A) determine the number of students who were encouraged 
     by the demonstration program to pursue higher education;
       ``(B) identify the barriers to the effectiveness of the 
     demonstration program;
       ``(C) assess the cost-effectiveness of the demonstration 
     program in improving access to higher education;
       ``(D) identify the reasons why participants in the 
     demonstration program either received or did not receive a 
     Federal Pell Grant;
       ``(E) identify intermediate outcomes related to 
     postsecondary education attendance, such as whether 
     participants--
       ``(i) were more likely to take a college-preparatory 
     curriculum while in secondary school;
       ``(ii) submitted any applications to institutions of higher 
     education; and
       ``(iii) took the PSAT, SAT, or ACT;
       ``(F) identify the number of students participating in the 
     demonstration program who pursued an associate's degree or a 
     bachelor's degree, or other postsecondary education;
       ``(G) compare the findings of the demonstration program 
     with respect to participants to comparison groups (of similar 
     size and demographics) that did not participate in the 
     demonstration program; and
       ``(H) identify the impact of the demonstration program on 
     the parents of students eligible to participate in the 
     program.
       ``(4) Dissemination.--The findings of the evaluation shall 
     be reported to the Secretary, who shall widely disseminate 
     the findings to the public.
       ``(f) Targeted Information Campaign.--
       ``(1) In general.--Each State educational agency receiving 
     a grant under this section shall, in cooperation with the 
     participating local educational agencies within the State and 
     the Secretary, develop a targeted information campaign for 
     the demonstration project assisted under this section.
       ``(2) Plan.--Each State educational agency receiving a 
     grant under this section shall include in the application 
     submitted under subsection (c) a written plan for the State 
     educational agency proposed targeted information campaign. 
     The plan shall include the following:
       ``(A) Outreach.--A description of the outreach to students 
     and the students' families at the beginning and end of each 
     academic year of the demonstration project, at a minimum.
       ``(B) Distribution.--A description of how the State 
     educational agency plans to provide the outreach described in 
     subparagraph (A) and to provide the information described in 
     subparagraph (C).
       ``(C) Information.--The annual provision by the State 
     educational agency to all students and families participating 
     in the demonstration project of information regarding--
       ``(i) the estimated statewide average cost of attendance 
     for an institution of higher education for each academic 
     year, which cost data shall be disaggregated by--

       ``(I) type of institution, including--

       ``(aa) two-year public degree-granting institutions of 
     higher education;
       ``(bb) four-year public degree-granting institutions of 
     higher education; and
       ``(cc) four-year private degree-granting institutions of 
     higher education;

       ``(II) component, including--

       ``(aa) tuition and fees; and
       ``(bb) room and board;
       ``(ii) Federal Pell Grants, including--

       ``(I) the maximum Federal Pell Grant for each award year;
       ``(II) when and how to apply for a Federal Pell Grant; and
       ``(III) what the application process for a Federal Pell 
     Grant requires;

       ``(iii) State-specific postsecondary education savings 
     programs;
       ``(iv) State merit-based financial aid;
       ``(v) State need-based financial aid; and
       ``(vi) Federal financial aid available to students, 
     including eligibility criteria for such aid and an 
     explanation of the Federal financial aid programs under title 
     IV, such as the Student Guide published by the Department (or 
     any successor to such document).
       ``(3) Cohorts.--The information described in paragraph 
     (2)(C) shall be provided annually to the two successive 
     cohorts of students described in subsection (b)(1)(A) for the 
     duration of the students' participation in the demonstration 
     project.
       ``(4) Reservation.--Each State educational agency receiving 
     a grant under this section shall reserve not more than 15 
     percent of the grant funds received each fiscal year to carry 
     out the targeted information campaign described in this 
     subsection.
       ``(g) Supplement, Not Supplant.--A State educational agency 
     shall use grant funds received under this section only to 
     supplement the funds that would, in the absence of such grant 
     funds, be made available from non-Federal sources for 
     students participating in the demonstration project under 
     this section, and not to supplant such funds.
       ``(h) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

        ``PART Z--HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES

     ``SEC. 895. HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES.

       ``(a) Grants Authorized.--From the amounts appropriated 
     under subsection (c), the Secretary is authorized to award a 
     grant to the University of Hawaii Academy for Creative Media 
     for the establishment, maintenance, and periodic 
     modernization of the Henry Kuualoha Giugni Kupuna Memorial 
     Archives at the University of Hawaii.
       ``(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna 
     Memorial Archives shall use the grant funds received under 
     this section--
       ``(1) to facilitate the acquisition of a secure web-
     accessible repository of Native Hawaiian historical data rich 
     in ethnic and cultural significance to the United States for 
     preservation and access by future generations;
       ``(2) to award scholarships to facilitate access to 
     postsecondary education for students who cannot afford such 
     education;
       ``(3) to support programmatic efforts associated with the 
     web-based media projects of the archives;
       ``(4) to create educational materials, from the contents of 
     the archives, that are applicable to a broad range of 
     indigenous students, such as Native Hawaiians, Alaskan 
     Natives, and Native American Indians;
       ``(5) to develop outreach initiatives that introduce the 
     archival collections to elementary schools and secondary 
     schools;
       ``(6) to develop supplemental web-based resources that 
     define terms and cultural practices innate to Native 
     Hawaiians;

[[Page 17191]]

       ``(7) to rent, lease, purchase, maintain, or repair 
     educational facilities to house the archival collections;
       ``(8) to rent, lease, purchase, maintain, or repair 
     computer equipment for use by elementary schools and 
     secondary schools in accessing the archival collections;
       ``(9) to provide preservice and in-service teacher training 
     to develop a core group of kindergarten through grade 12 
     teachers who are able to provide instruction in a way that is 
     relevant to the unique background of indigenous students, 
     such as Native Hawaiians, Alaskan Natives, and Native 
     American Indians, in order to--
       ``(A) facilitate greater understanding by teachers of the 
     unique background of indigenous students; and
       ``(B) improve student achievement; and
       ``(10) to increase the economic and financial literacy of 
     postsecondary education students through the dissemination of 
     best practices used at other institutions of higher education 
     regarding debt and credit management and economic 
     decisionmaking.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.

           ``PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS

     ``SEC. 897. MASTERS DEGREE PROGRAMS.

       ``In addition to any amounts appropriated under section 
     725, there are authorized to be appropriated, and there are 
     appropriated, out of any funds in the Treasury not otherwise 
     appropriated, $11,500,000 for fiscal year 2009 and for each 
     of the five succeeding fiscal years to carry out subpart 4 of 
     part A of title VII in order to provide grants under sections 
     723 and 724, in the minimum amount authorized under such 
     sections, to all institutions eligible for grants under such 
     sections.

     ``SEC. 898. POSTBACCALAUREATE PROGRAMS.

       ``In addition to any amounts appropriated under part B of 
     title V, there are authorized to be appropriated, and there 
     are appropriated, out of any funds in the Treasury not 
     otherwise appropriated, $11,500,000 for fiscal year 2009 and 
     for each of the five succeeding fiscal years to carry out 
     part B of title V.''.

     SEC. 802. NATIONAL CENTER FOR RESEARCH IN ADVANCED 
                   INFORMATION AND DIGITAL TECHNOLOGIES.

       (a) Establishment.--There shall be established, during the 
     first fiscal year for which appropriations are made available 
     under subsection (c), a nonprofit corporation to be known as 
     the National Center for Research in Advanced Information and 
     Digital Technologies, which shall not be an agency or 
     establishment of the Federal Government. The Center shall be 
     subject to the provisions of this section, and, to the extent 
     consistent with this section, to the District of Columbia 
     Nonprofit Corporation Act (sec. 29-501 et seq., D.C. Official 
     Code).
       (b) Purpose.--The purpose of the Center shall be to support 
     a comprehensive research and development program to harness 
     the increasing capacity of advanced information and digital 
     technologies to improve all levels of learning and education, 
     formal and informal, in order to provide Americans with the 
     knowledge and skills needed to compete in the global economy.
       (c) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated to the Center such sums as may be 
     necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.
       (2) Additional funds.--The Center is authorized--
       (A) to accept funds from any Federal agency or entity;
       (B) to accept, hold, administer, and spend any gift, 
     devise, or bequest of real or personal property made to the 
     Center; and
       (C) to enter into competitive contracts with individuals, 
     public or private organizations, professional societies, and 
     government agencies for the purpose of carrying out the 
     functions of the Center.
       (3) Prohibition.--The Center shall not accept gifts, 
     devises, or bequests from a foreign government or foreign 
     source.
       (d) Board of Directors; Vacancies; Compensation.--
       (1) In general.--A Board of the Center shall be established 
     to oversee the administration of the Center.
       (2) Initial composition.--The initial Board shall consist 
     of nine members to be appointed by the Secretary of Education 
     from recommendations received from the Speaker of the House 
     of Representatives, the Minority Leader of the House of 
     Representatives, the majority leader of the Senate, and the 
     minority leader of the Senate, who--
       (A) reflect representation from the public and private 
     sectors;
       (B) shall provide, as nearly as practicable, a broad 
     representation of various regions of the United States, 
     various professions and occupations, and various kinds of 
     talent and experience appropriate to the functions and 
     responsibilities of the Center;
       (C) shall not be in a position to benefit financially 
     directly from the contracts and grants to eligible 
     institutions under subsection (f)(2); and
       (D) may not be officers or employees of the Federal 
     Government or a Members of Congress serving at the time of 
     such appointment.
       (3) Vacancies and subsequent appointments.--To the extent 
     not inconsistent with paragraph (2), in the case of a vacancy 
     on the Board due to death, resignation, or removal, the 
     vacancy shall be filled through nomination and selection by 
     the sitting members of the Board after--
       (A) taking into consideration the composition of the Board; 
     and
       (B) soliciting recommendations from the public.
       (4) Compensation.--Members of the Board shall serve without 
     compensation but may be reimbursed for reasonable expenses 
     for transportation, lodging, and other expenses directly 
     related to their duties as members of the Board.
       (5) Organization and operation.--The Board shall 
     incorporate and operate the Center in accordance with the 
     laws governing tax exempt organizations in the District of 
     Columbia.
       (e) Director and Staff.--
       (1) Director.--The Board shall appoint a Director of the 
     Center after conducting a national, competitive search to 
     find an individual with the appropriate expertise, 
     experience, and knowledge to oversee the operations of the 
     Center.
       (2) Staff.--In accordance with procedures established by 
     the Board, the Director shall employ individuals to carry out 
     the functions of the Center.
       (3) Compensation.--In no case shall the Director or any 
     employee of the Center receive annual compensation that 
     exceeds an amount equal to the annual rate payable for level 
     II of the Executive Schedule under section 5313 of title 5, 
     United States Code.
       (f) Center Activities.--
       (1) Uses of funds.--The Director, after consultation with 
     the Board, shall use the funds made available to the Center--
       (A) to support research to improve education, teaching, and 
     learning that is in the public interest, but that is 
     determined unlikely to be undertaken entirely with private 
     funds;
       (B) to support--
       (i) precompetitive research, development, and 
     demonstrations;
       (ii) assessments of prototypes of innovative digital 
     learning and information technologies, as well as the 
     components and tools needed to create such technologies; and
       (iii) pilot testing and evaluation of prototype systems 
     described in clause (ii); and
       (C) to encourage the widespread adoption and use of 
     effective, innovative digital approaches to improving 
     education, teaching, and learning.
       (2) Contracts and grants.--
       (A) In general.--To carry out the activities described in 
     paragraph (1), the Director, with the agreement of two-thirds 
     of the members of the Board, may award, on a competitive 
     basis, contracts and grants to four-year institutions of 
     higher education, museums, libraries, nonprofit 
     organizations, public institutions with or without for-profit 
     partners, for-profit organizations, and consortia of any such 
     entities.
       (B) Public domain.--
       (i) In general.--The research and development properties 
     and materials associated with any project funded by a grant 
     or contract under this section shall be freely and 
     nonexclusively available to the general public in a timely 
     manner, consistent with regulations prescribed by the 
     Secretary of Education.
       (ii) Exemption.--The Director may waive the requirements of 
     clause (i) with respect to a project funded by a grant or 
     contract under this section if--

       (I) the Director and the Board (by a unanimous vote of the 
     Board members) determine that the general public will benefit 
     significantly due to the project not being freely and 
     nonexclusively available to the general public in a timely 
     manner; and
       (II) the Board issues a public statement as to the specific 
     reasons of the determination under subclause (I).

       (C) Peer review.--Proposals for grants or contracts shall 
     be evaluated on the basis of comparative merit by panels of 
     experts who represent diverse interests and perspectives, and 
     who are appointed by the Director based on recommendations 
     from the fields served and from the Board.
       (g) Accountability and Reporting.--
       (1) Report.--
       (A) In general.--Not later than December 30 of each year 
     beginning in fiscal year 2009, the Director shall prepare and 
     submit to the Secretary of Education and the authorizing 
     committees a report that contains the information described 
     in subparagraph (B) with respect to the preceding fiscal 
     year.
       (B) Contents.--A report under subparagraph (A) shall 
     include--
       (i) a comprehensive and detailed report of the Center's 
     operations, activities, financial condition, and 
     accomplishments, and such recommendations as the Director 
     determines appropriate;
       (ii) evidence of coordination with the Department of 
     Education, the National Science Foundation, Office of the 
     Director of Defense Research and Engineering in the 
     Department of Defense, and other related Federal agencies to 
     carry out the operations and activities of the Center;
       (iii) a comprehensive and detailed inventory of funds 
     distributed from the Center during the fiscal year for which 
     the report is being prepared; and
       (iv) an independent audit of the Center's finances and 
     operations, and of the implementation of the goals 
     established by the Board.
       (C) Statement of the board.--Each report under subparagraph 
     (A) shall include a statement from the Board containing--
       (i) a clear description of the plans and priorities of the 
     Board for the subsequent year for activities of the Center; 
     and

[[Page 17192]]

       (ii) an estimate of the funds that will be expended by the 
     Center for such year.
       (2) Testimony.--The Director and principal officers of the 
     Center shall testify before the authorizing committees and 
     the Committees on Appropriations of the House of 
     Representatives and the Senate, upon request of such 
     committees, with respect to--
       (A) any report required under paragraph (1)(A); and
       (B) any other matter that such committees may determine 
     appropriate.
       (h) Use of Funds Subject to Appropriations.--The authority 
     to award grants, enter into contracts, or otherwise expend 
     funds under this section is subject to the availability of 
     amounts deposited into the Center under subsection (c), or 
     amounts otherwise appropriated for such purposes by an Act of 
     Congress.
       (i) Definitions.--For purposes of this section:
       (1) Authorizing committees.--The term ``authorizing 
     committees'' has the meaning given the term in section 103 of 
     the Higher Education Act of 1965 (20 U.S.C. 1003).
       (2) Board.--The term ``Board'' means the Board of the 
     Center appointed under subsection (d)(1).
       (3) Center.--The term ``Center'' means the National Center 
     for Research in Advanced Information and Digital Technologies 
     established under subsection (a).
       (4) Director.--The term ``Director'' means the Director of 
     the Center appointed under subsection (e)(1).

     SEC. 803. ESTABLISHMENT OF PILOT PROGRAM FOR COURSE MATERIAL 
                   RENTAL.

       (a) Pilot Grant Program.--From the amounts appropriated 
     pursuant to subsection (e), the Secretary of Education 
     (referred to in this section as the ``Secretary'') shall make 
     grants on a competitive basis to not more than ten 
     institutions of higher education to support pilot programs 
     that expand the services of bookstores to provide the option 
     for students to rent course materials in order to achieve 
     savings for students.
       (b) Application.--An institution of higher education that 
     desires to obtain a grant under this section shall submit an 
     application to the Secretary at such time, in such form, and 
     containing or accompanied by such information, agreements, 
     and assurances as the Secretary may reasonably require.
       (c) Use of Funds.--The funds made available by a grant 
     under this section may be used for--
       (1) purchase of course materials that the entity will make 
     available by rent to students;
       (2) any equipment or software necessary for the conduct of 
     a rental program;
       (3) hiring staff needed for the conduct of a rental 
     program, with priority given to hiring enrolled undergraduate 
     students; and
       (4) building or acquiring extra storage space dedicated to 
     course materials for rent.
       (d) Evaluation and Report.--
       (1) Evaluations by recipients.--After a period of time to 
     be determined by the Secretary, each institution of higher 
     education that receives a grant under this section shall 
     submit a report to the Secretary on the effectiveness of 
     their rental programs in reducing textbook costs for 
     students.
       (2) Report to congress.--Not later than September 30, 2010, 
     the Secretary shall submit a report to Congress on the 
     effectiveness of the textbook rental pilot programs under 
     this section, and identify the best practices developed in 
     such pilot programs. Such report shall contain an estimate by 
     the Secretary of the savings achieved by students who 
     participate in such pilot programs.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for fiscal years 2009 and 2010.
                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

     SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

       Section 104 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4304) is amended--
       (1) by striking the section heading and inserting ``LAURENT 
     CLERC NATIONAL DEAF EDUCATION CENTER'';
       (2) in subsection (a)(1)(A), by inserting ``the Laurent 
     Clerc National Deaf Education Center (referred to in this 
     section as the `Clerc Center') to carry out'' after 
     ``maintain and operate''; and
       (3) in subsection (b)--
       (A) in the matter preceding subparagraph (A) of paragraph 
     (1), by striking ``elementary and secondary education 
     programs'' and inserting ``Clerc Center'';
       (B) in paragraph (2)--
       (i) by striking ``elementary and secondary education 
     programs'' and inserting ``Clerc Center''; and
       (ii) by striking ``section 618(a)(1)(A)'' and inserting 
     ``section 618(a)(1)'';
       (C) in paragraph (4), in subparagraph (C)--
       (i) by moving the margins 2 ems to the left;
       (ii) in clause (i), by striking ``(6)'' and inserting 
     ``(8)''; and
       (iii) in clause (vi), by striking ``(m)'' and inserting 
     ``(o)''; and
       (D) by adding at the end the following:
       ``(5) The University, for purposes of the elementary and 
     secondary education programs carried out at the Clerc Center, 
     shall--
       ``(A)(i) select challenging academic content standards, 
     challenging student academic achievement standards, and 
     academic assessments of a State, adopted and implemented, as 
     appropriate, pursuant to paragraphs (1) and (3) of section 
     1111(b) of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 6311(b)(1) and (3)) and approved by the Secretary; 
     and
       ``(ii) implement such standards and assessments for such 
     programs by not later than the beginning of the 2009-2010 
     academic year;
       ``(B) annually determine whether such programs at the Clerc 
     Center are making adequate yearly progress, as determined 
     according to the definition of adequate yearly progress 
     defined (pursuant to section 1111(b)(2)(C) of such Act (20 
     U.S.C. 6311(b)(2)(C))) by the State that has adopted and 
     implemented the standards and assessments selected under 
     subparagraph (A)(i); and
       ``(C) publicly report the results of the academic 
     assessments implemented under subparagraph (A), except where 
     such reporting would not yield statistically reliable 
     information or would reveal personally identifiable 
     information about an individual student, and whether the 
     programs at the Clerc Center are making adequate yearly 
     progress, as determined under subparagraph (B).''.

     SEC. 902. AGREEMENT WITH GALLAUDET UNIVERSITY.

       Section 105(b)(4) of the Education of the Deaf Act of 1986 
     (20 U.S.C. 4305(b)(4)) is amended--
       (1) by striking ``the Act of March 3, 1931 (40 U.S.C. 276a-
     276a-5) commonly referred to as the Davis-Bacon Act'' and 
     inserting ``subchapter IV of chapter 31 of title 40, United 
     States Code, commonly referred to as the Davis-Bacon Act''; 
     and
       (2) by striking ``section 2 of the Act of June 13, 1934 (40 
     U.S.C. 276c)'' and inserting ``section 3145 of title 40, 
     United States Code''.

     SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR 
                   THE DEAF.

       Section 112 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4332) is amended--
       (1) in subsection (a)(1), by striking the second sentence; 
     and
       (2) in subsection (b)--
       (A) in paragraph (3), by striking ``Committee on Labor and 
     Human Resources of the Senate'' and inserting ``Committee on 
     Health, Education, Labor, and Pensions of the Senate''; and
       (B) in paragraph (5)--
       (i) by striking ``the Act of March 3, 1931 (40 U.S.C. 
     276a--276a-5) commonly referred to as the Davis-Bacon Act'' 
     and inserting ``subchapter IV of chapter 31 of title 40, 
     United States Code, commonly referred to as the Davis-Bacon 
     Act''; and
       (ii) by striking ``section 2 of the Act of June 13, 1934 
     (40 U.S.C. 276c)'' and inserting ``section 3145 of title 40, 
     United States Code''.

     SEC. 904. CULTURAL EXPERIENCES GRANTS.

       (a) Cultural Experiences Grants.--Title I of the Education 
     of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended 
     by adding at the end the following:

                        ``PART C--OTHER PROGRAMS

     ``SEC. 121. CULTURAL EXPERIENCES GRANTS.

       ``(a) In General.--The Secretary is authorized to, on a 
     competitive basis, make grants to, and enter into contracts 
     and cooperative agreements with, eligible entities to support 
     the activities described in subsection (b).
       ``(b) Activities.--In carrying out this section, the 
     Secretary shall support activities providing cultural 
     experiences, through appropriate nonprofit organizations with 
     a demonstrated proficiency in providing such activities, 
     that--
       ``(1) enrich the lives of deaf and hard-of-hearing children 
     and adults;
       ``(2) increase public awareness and understanding of 
     deafness and of the artistic and intellectual achievements of 
     deaf and hard-of-hearing persons; or
       ``(3) promote the integration of hearing, deaf, and hard-
     of-hearing persons through shared cultural, educational, and 
     social experiences.
       ``(c) Applications.--An eligible entity that desires to 
     receive a grant, or enter into a contract or cooperative 
     agreement, under this section shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     such information as the Secretary may require.
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal year 2009 and each of the 
     five succeeding fiscal years.''.
       (b) Conforming Amendment.--The title heading of title I of 
     the Education of the Deaf Act of 1986 (20 U.S.C. 4301 et 
     seq.) is amended by adding at the end the following: ``; 
     OTHER PROGRAMS''.

     SEC. 905. AUDIT.

       Section 203 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4353) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2), by striking ``sections'' and all that 
     follows through the period and inserting ``sections 102(b), 
     105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c) 
     through (f) of section 207, and subsections (b) and (c) of 
     section 209.''; and
       (B) in paragraph (3), by inserting ``and the Committee on 
     Education and Labor of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate'' after ``Secretary''; and
       (2) in subsection (c)(2)(A), by striking ``Committee on 
     Labor and Human Resources of the Senate'' and inserting 
     ``Committee on Health, Education, Labor, and Pensions of the 
     Senate''.

     SEC. 906. REPORTS.

       Section 204 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4354) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Committee on Labor and Human Resources of the Senate'' and 
     inserting ``Committee on Health, Education, Labor, and 
     Pensions of the Senate'';

[[Page 17193]]

       (2) in paragraph (1), by striking ``preparatory,'';
       (3) in paragraph (2)(C), by striking ``upon graduation/
     completion'' and inserting ``on the date that is one year 
     after the date of graduation or completion''; and
       (4) in paragraph (3)(B), by striking ``of the institution 
     of higher education'' and all that follows through ``section 
     203'' and inserting ``of NTID programs and activities''.

     SEC. 907. MONITORING, EVALUATION, AND REPORTING.

       Section 205 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4355) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``preparatory,'';
       (2) in subsection (b), by striking ``The Secretary, as part 
     of the annual report required under section 426 of the 
     Department of Education Organization Act, shall include a 
     description of'' and inserting ``The Secretary shall annually 
     transmit information to Congress on''; and
       (3) in subsection (c), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2009 through 
     2014''.

     SEC. 908. LIAISON FOR EDUCATIONAL PROGRAMS.

       Section 206(a) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4356(a)) is amended by striking ``Not later than 30 
     days after the date of enactment of this Act, the'' and 
     inserting ``The''.

     SEC. 909. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY 
                   AND THE NATIONAL TECHNICAL INSTITUTE FOR THE 
                   DEAF.

       Section 207(h) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4357(h)) is amended by striking ``fiscal years 1998 
     through 2003'' both places it appears and inserting ``fiscal 
     years 2009 through 2014''.

     SEC. 910. OVERSIGHT AND EFFECT OF AGREEMENTS.

       Section 208(a) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359(a)) is amended by striking ``Committee on Labor 
     and Human Resources of the Senate and the Committee on 
     Education and the Workforce of the House of Representatives'' 
     and inserting ``Committee on Education and Labor of the House 
     of Representatives and the Committee on Health, Education, 
     Labor, and Pensions of the Senate''.

     SEC. 911. INTERNATIONAL STUDENTS.

       Section 209 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359a) is amended--
       (1) in subsection (a)--
       (A) by striking ``preparatory, undergraduate,'' and 
     inserting ``undergraduate'';
       (B) by striking ``Effective with'' and inserting the 
     following:
       ``(1) In general.--Except as provided in paragraph (2), 
     effective with''; and
       (C) by adding at the end the following:
       ``(2) Distance learning.--International students who 
     participate in distance learning courses that are at the 
     University or the NTID, who are residing outside of the 
     United States, and are not enrolled in a degree program at 
     the University or the NTID shall--
       ``(A) not be counted as international students for purposes 
     of the cap on international students under paragraph (1), 
     except that in any school year no United States citizen who 
     applies to participate in distance learning courses that are 
     at the University or NTID shall be denied participation in 
     such courses because of the participation of an international 
     student in such courses; and
       ``(B) not be charged a tuition surcharge, as described in 
     subsection (b).''; and
       (2) by striking subsections (b), (c), and (d), and 
     inserting the following:
       ``(b) Tuition Surcharge.--Except as provided in subsections 
     (a)(2)(B) and (c), the tuition for postsecondary 
     international students enrolled in the University (including 
     undergraduate and graduate students) or NTID shall include, 
     for academic year 2009-2010 and any succeeding academic year, 
     a surcharge of--
       ``(1) 100 percent for a postsecondary international student 
     from a non-developing country; and
       ``(2) 50 percent for a postsecondary international student 
     from a developing country, or a country that was a developing 
     country for any academic year during the student's period of 
     uninterrupted enrollment in a degree program at the 
     University or NTID, except that such a surcharge shall not be 
     adjusted retroactively.
       ``(c) Reduction of Surcharge.--
       ``(1) In general.--Beginning with the academic year 2009-
     2010, the University or NTID may reduce the surcharge--
       ``(A) under subsection (b)(1) from 100 percent to not less 
     than 50 percent if--
       ``(i) a student described under subsection (b)(1) 
     demonstrates need; and
       ``(ii) such student has made a good-faith effort to secure 
     aid through such student's government or other sources; and
       ``(B) under subsection (b)(2) from 50 percent to not less 
     than 25 percent if--
       ``(i) a student described under subsection (b)(2) 
     demonstrates need; and
       ``(ii) such student has made a good faith effort to secure 
     aid through such student's government or other sources.
       ``(2) Development of sliding scale.--The University and 
     NTID shall develop a sliding scale model that--
       ``(A) will be used to determine the amount of a tuition 
     surcharge reduction pursuant to paragraph (1); and
       ``(B) shall be approved by the Secretary.
       ``(d) Definition.--In this section, the term `developing 
     country' means a country with a per-capita income of not more 
     than $5,345, measured in 2005 United States dollars, as 
     adjusted by the Secretary to reflect inflation since 2005.''.

     SEC. 912. RESEARCH PRIORITIES.

       Section 210(b) of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4359b(b)) is amended by striking ``Committee on 
     Education and the Workforce of the House of Representatives, 
     and the Committee on Labor and Human Resources of the 
     Senate'' and inserting ``Committee on Education and Labor of 
     the House of Representatives, and the Committee on Health, 
     Education, Labor, and Pensions of the Senate''.

     SEC. 913. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.

       (a) Conduct of Study.--Subsection (a)(1) of section 211 of 
     the Education of the Deaf Act of 1986 (20 U.S.C. 4360) is 
     amended by inserting after ``The Secretary shall'' the 
     following: ``establish a commission on the education of the 
     deaf (in this section referred to as the `commission') to''.
       (b) Public Input and Consultation.--Subsection (b) of such 
     section is amended by striking ``Secretary'' each place the 
     term appears and inserting ``commission''.
       (c) Report.--Subsection (c) of such section is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``Secretary'' and all that follows through ``1998'' and 
     inserting ``commission shall report to the Secretary and 
     Congress not later than 18 months after the date of the 
     enactment of the Higher Education Opportunity Act''; and
       (2) in paragraph (1)--
       (A) by striking ``recommendations,'' and inserting 
     ``recommendations relating to educated-related factors that 
     contribute to successful postsecondary education experiences 
     and employment for individuals who are deaf,''; and
       (B) by striking ``Secretary'' and inserting ``commission''.
       (d) Authorization of Appropriations.--Subsection (d) of 
     such section is amended by striking ``$1,000,000 for each of 
     the fiscal years 1999 and 2000'' and inserting ``such sums as 
     may be necessary for each of the fiscal years 2009 and 
     2010''.

     SEC. 914. AUTHORIZATION OF APPROPRIATIONS.

       Section 212 of the Education of the Deaf Act of 1986 (20 
     U.S.C. 4360a) is amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``fiscal years 1998 through 2003'' and 
     inserting ``fiscal years 2009 through 2014''; and
       (2) in subsection (b), by striking ``fiscal years 1998 
     through 2003'' and inserting ``fiscal years 2009 through 
     2014''.

              PART B--UNITED STATES INSTITUTE OF PEACE ACT

     SEC. 921. UNITED STATES INSTITUTE OF PEACE ACT.

       (a) Powers and Duties.--Section 1705(b)(3) of the United 
     States Institute of Peace Act (22 U.S.C. 4604(b)(3)) is 
     amended by striking ``the Arms Control and Disarmament 
     Agency,''.
       (b) Board of Directors.--
       (1) Amendments.--Section 1706 of the United States 
     Institute of Peace Act (22 U.S.C. 4605) is amended--
       (A) by striking ``(b)(5)'' each place the term appears and 
     inserting ``(b)(4)''; and
       (B) in subsection (e), by adding at the end the following:
       ``(5) The term of a member of the Board shall not commence 
     until the member is confirmed by the Senate and sworn in as a 
     member of the Board.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall take effect as if enacted on June 1, 2007, and shall 
     apply to any member of the Board of Directors of the 
     Institute of Peace confirmed by the Senate and sworn in as a 
     member of the Board of Directors on or after such date.
       (c) Funding.--Section 1710 of the United States Institute 
     of Peace Act (22 U.S.C. 4609) is amended--
       (1) in subsection (a)(1), by striking ``to be 
     appropriated'' and all that follows through the period at the 
     end and inserting ``to be appropriated such sums as may be 
     necessary for fiscal years 2009 through 2014.''; and
       (2) by adding at the end the following:
       ``(d) Extension.--Any authorization of appropriations made 
     for the purposes of carrying out this title shall be extended 
     in the same manner as applicable programs are extended under 
     section 422 of the General Education Provisions Act.''.

 PART C--THE HIGHER EDUCATION AMENDMENTS OF 1998; THE HIGHER EDUCATION 
                           AMENDMENTS OF 1992

     SEC. 931. REPEALS.

       The following provisions of title VIII of the Higher 
     Education Amendments of 1998 (Public Law 105-244) are 
     repealed:
       (1) Part A.
       (2) Part C (20 U.S.C. 1070 note).
       (3) Part F (20 U.S.C. 1862 note).
       (4) Part J.
       (5) Section 861.
       (6) Section 863.

     SEC. 932. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY 
                   TRANSITION TRAINING FOR INCARCERATED 
                   INDIVIDUALS.

       Section 821 of the Higher Education Amendments of 1998 (20 
     U.S.C. 1151) is amended to read as follows:

     ``SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY 
                   TRANSITION TRAINING FOR INCARCERATED 
                   INDIVIDUALS.

       ``(a) Definition.--In this section, the term `incarcerated 
     individual' means a male or female offender who is--

[[Page 17194]]

       ``(1) 35 years of age or younger; and
       ``(2) incarcerated in a State prison, including a 
     prerelease facility.
       ``(b) Grant Program.--The Secretary of Education (in this 
     section referred to as the `Secretary')--
       ``(1) shall establish a program in accordance with this 
     section to provide grants to the State correctional education 
     agencies in the States to assist and encourage incarcerated 
     individuals who have obtained a secondary school diploma or 
     its recognized equivalent to acquire educational and job 
     skills through--
       ``(A) coursework to prepare such individuals to pursue a 
     postsecondary education certificate, an associate's degree, 
     or bachelor's degree while in prison;
       ``(B) the pursuit of a postsecondary education certificate, 
     an associate's degree, or bachelor's degree while in prison; 
     and
       ``(C) employment counseling and other related services, 
     which start during incarceration and end not later than two 
     years after release from incarceration; and
       ``(2) may establish such performance objectives and 
     reporting requirements for State correctional education 
     agencies receiving grants under this section as the Secretary 
     determines are necessary to assess the effectiveness of the 
     program under this section.
       ``(c) Application.--To be eligible for a grant under this 
     section, a State correctional education agency shall submit 
     to the Secretary a proposal for an incarcerated individual 
     program that--
       ``(1) identifies the scope of the problem, including the 
     number of incarcerated individuals in need of postsecondary 
     education and career and technical training;
       ``(2) lists the accredited public or private educational 
     institution or institutions that will provide postsecondary 
     educational services;
       ``(3) lists the cooperating agencies, public and private, 
     or businesses that will provide related services, such as 
     counseling in the areas of career development, substance 
     abuse, health, and parenting skills;
       ``(4) describes specific performance objectives and 
     evaluation methods (in addition to, and consistent with, any 
     objectives established by the Secretary under subsection 
     (b)(2)) that the State correctional education agency will use 
     in carrying out its proposal, including--
       ``(A) specific and quantified student outcome measures that 
     are referenced to outcomes for non-program participants with 
     similar demographic characteristics; and
       ``(B) measures, consistent with the data elements and 
     definitions described in subsection (d)(1)(A), of--
       ``(i) program completion, including an explicit definition 
     of what constitutes a program completion within the proposal;
       ``(ii) knowledge and skill attainment, including 
     specification of instruments that will measure knowledge and 
     skill attainment;
       ``(iii) attainment of employment both prior to and 
     subsequent to release;
       ``(iv) success in employment indicated by job retention and 
     advancement; and
       ``(v) recidivism, including such subindicators as time 
     before subsequent offense and severity of offense;
       ``(5) describes how the proposed program is to be 
     integrated with existing State correctional education 
     programs (such as adult education, graduate education degree 
     programs, and career and technical training) and State 
     industry programs;
       ``(6) describes how the proposed program will--
       ``(A) deliver services under this section; and
       ``(B) utilize technology to deliver such services; and
       ``(7) describes how incarcerated individuals will be 
     selected so that only those eligible under subsection (e) 
     will be enrolled in postsecondary programs.
       ``(d) Program Requirements.--Each State correctional 
     education agency receiving a grant under this section shall--
       ``(1) annually report to the Secretary regarding--
       ``(A) the results of the evaluations conducted using data 
     elements and definitions provided by the Secretary for the 
     use of State correctional education programs;
       ``(B) any objectives or requirements established by the 
     Secretary pursuant to subsection (b)(2);
       ``(C) the additional performance objectives and evaluation 
     methods contained in the proposal described in subsection 
     (c)(4) as necessary to document the attainment of project 
     performance objectives;
       ``(D) how the funds provided under this section are being 
     allocated among postsecondary preparatory education, 
     postsecondary academic programs, and career and technical 
     education programs; and
       ``(E) the service delivery methods being used for each 
     course offering; and
       ``(2) provide for each student eligible under subsection 
     (e) not more than--
       ``(A) $3,000 annually for tuition, books, and essential 
     materials; and
       ``(B) $300 annually for related services such as career 
     development, substance abuse counseling, parenting skills 
     training, and health education.
       ``(e) Student Eligibility.--An incarcerated individual who 
     has obtained a secondary school diploma or its recognized 
     equivalent shall be eligible for participation in a program 
     receiving a grant under this section if such individual--
       ``(1) is eligible to be released within seven years 
     (including an incarcerated individual who is eligible for 
     parole within such time);
       ``(2) is 35 years of age or younger; and
       ``(3) has not been convicted of--
       ``(A) a `criminal offense against a victim who is a minor' 
     or a `sexually violent offense', as such terms are defined in 
     the Jacob Wetterling Crimes Against Children and Sexually 
     Violent Offender Registration Act (42 U.S.C. 14071 et seq.); 
     or
       ``(B) murder, as described in section 1111 of title 18, 
     United States Code.
       ``(f) Length of Participation.--A State correctional 
     education agency receiving a grant under this section shall 
     provide educational and related services to each 
     participating incarcerated individual for a period not to 
     exceed seven years, not more than two years of which may be 
     devoted to study in a graduate education degree program or to 
     coursework to prepare such individuals to take college level 
     courses. Educational and related services shall start during 
     the period of incarceration in prison or prerelease, and the 
     related services may continue for not more than two years 
     after release from confinement.
       ``(g) Education Delivery Systems.--State correctional 
     education agencies and cooperating institutions shall, to the 
     extent practicable, use high-tech applications in developing 
     programs to meet the requirements and goals of this section.
       ``(h) Allocation of Funds.--From the funds appropriated 
     pursuant to subsection (i) for each fiscal year, the 
     Secretary shall allot to each State an amount that bears the 
     same relationship to such funds as the total number of 
     students eligible under subsection (e) in such State bears to 
     the total number of such students in all States.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for fiscal years 2009 through 
     2014.''.

     SEC. 933. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL 
                   PROGRAM.

       Section 841 of the Higher Education Amendments of 1998 (20 
     U.S.C. 1153) is amended--
       (1) in subsection (a), by inserting ``, including the 
     lessons to be drawn from such history'' after ``Railroad'';
       (2) in subsection (b)--
       (A) by striking paragraphs (1) and (2) and inserting the 
     following:
       ``(1) to establish a facility to--
       ``(A) house, display, interpret, and communicate 
     information regarding the artifacts and other materials 
     related to the history of the Underground Railroad, including 
     the lessons to be drawn from such history;
       ``(B) maintain such artifacts and materials; and
       ``(C) make the efforts described in subparagraph (A) 
     available, including through electronic means, to elementary 
     and secondary schools, institutions of higher education, and 
     the general public;
       ``(2) to demonstrate substantial public and private support 
     for the operation of the facility through the implementation 
     of a public-private partnership between one or more State or 
     local public entities and one or more private entities, which 
     public-private partnership shall provide matching funds from 
     non-federal sources for the support of the facility in an 
     amount equal to or greater than four times the amount of the 
     grant awarded under this section;'';
       (B) in paragraph (4)--
       (i) by inserting ``and maintain'' after ``establish''; and
       (ii) by inserting ``including the lessons to be drawn from 
     the history of the Underground Railroad,'' after ``States,''; 
     and
       (C) in paragraph (5)--
       (i) by inserting ``and maintain'' after ``establish''; and
       (ii) by inserting ``, including the lessons to be drawn 
     from such history'' after ``Railroad''; and
       (3) in subsection (c), by striking ``this section'' and all 
     that follows through the period at the end and inserting 
     ``$3,000,000 for fiscal year 2009 and each of the five 
     succeeding fiscal years.''.

     SEC. 934. OLYMPIC SCHOLARSHIPS.

       Section 1543(d) of the Higher Education Amendments of 1992 
     (20 U.S.C. 1070 note) is amended--
       (1) by striking ``1999'' and inserting ``2009''; and
       (2) by striking ``4'' and inserting ``five''.

     SEC. 935. ESTABLISHMENT OF A DEPUTY ASSISTANT SECRETARY FOR 
                   INTERNATIONAL AND FOREIGN LANGUAGE EDUCATION.

       Section 205 of the Department of Education Organization Act 
     (20 U.S.C. 3415) is amended to read as follows:


                  ``office of postsecondary education

       ``Sec. 205.  (a) There shall be in the Department an Office 
     of Postsecondary Education, to be administered by the 
     Assistant Secretary for Postsecondary Education appointed 
     under section 202(b). The Assistant Secretary shall 
     administer such functions affecting postsecondary education, 
     both public and private, as the Secretary shall delegate, and 
     shall serve as the principal adviser to the Secretary on 
     matters affecting postsecondary education.
       ``(b) The Assistant Secretary for Postsecondary Education 
     shall appoint a Deputy Assistant Secretary for International 
     and Foreign Language Education to perform such functions 
     affecting postsecondary, international, and foreign language 
     education as the Secretary may prescribe. The Deputy 
     Assistant Secretary for International and Foreign Language 
     Education shall--

[[Page 17195]]

       ``(1) be an individual with extensive background and 
     experience in international and foreign language education;
       ``(2) have responsibility for encouraging and promoting the 
     study of foreign languages and the study of the cultures of 
     other countries at the elementary, secondary, and 
     postsecondary levels in the United States; and
       ``(3) coordinate with related international and foreign 
     language education programs of other Federal agencies.''.

    PART D--TRIBAL COLLEGE AND UNIVERSITIES; NAVAJO HIGHER EDUCATION

              Subpart 1--Tribal Colleges and Universities

     SEC. 941. REAUTHORIZATION OF THE TRIBALLY CONTROLLED COLLEGE 
                   OR UNIVERSITY ASSISTANCE ACT OF 1978.

       (a) Clarification of the Definition of National Indian 
     Organization.--Section 2(a)(6) of the Tribally Controlled 
     College or University Assistance Act of 1978 (25 U.S.C. 
     1801(a)(6)) is amended by striking ``in the field of Indian 
     education'' and inserting ``in the fields of tribally 
     controlled colleges and universities and Indian higher 
     education''.
       (b) Indian Student Count.--Section 2(a) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801(a)) is amended--
       (1) by redesignating paragraphs (7) and (8) as paragraphs 
     (8) and (9), respectively; and
       (2) by inserting after paragraph (6) the following:
       ``(7) `Indian student' means a student who is--
       ``(A) a member of an Indian tribe; or
       ``(B) a biological child of a member of an Indian tribe, 
     living or deceased;''.
       (c) Continuing Education.--Section 2(b) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801(b)) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``paragraph (7) of subsection (a)'' and inserting 
     ``subsection (a)(8)'';
       (2) by striking paragraph (5) and inserting the following:
       ``(5) Eligible credits earned in a continuing education 
     program--
       ``(A) shall be determined as one credit for every ten 
     contact hours in the case of an institution on a quarter 
     system, or 15 contact hours in the case of an institution on 
     a semester system, of participation in an organized 
     continuing education experience under responsible 
     sponsorship, capable direction, and qualified instruction, as 
     described in the criteria established by the International 
     Association for Continuing Education and Training; and
       ``(B) shall be limited to ten percent of the Indian student 
     count of a tribally controlled college or university.''; and
       (3) by striking paragraph (6).
       (d) Accreditation Requirement.--Section 103 of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1804) is amended--
       (1) in paragraph (2), by striking ``and'' at the end;
       (2) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (3), the following:
       ``(4)(A) is accredited by a nationally recognized 
     accrediting agency or association determined by the Secretary 
     of Education to be a reliable authority with regard to the 
     quality of training offered; or
       ``(B) according to such an agency or association, is making 
     reasonable progress toward accreditation.''.
       (e) Technical Assistance Contracts.--Section 105 of the 
     Tribally Controlled College or University Assistance Act of 
     1978 (25 U.S.C. 1805) is amended--
       (1) by striking the section designation and heading and all 
     that follows through ``The Secretary shall'' and inserting 
     the following:

     ``SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.

       ``(a) Technical Assistance.--
       ``(1) In general.--The Secretary shall'';
       (2) in the second sentence, by striking ``In the awarding 
     of contracts for technical assistance, preference shall be 
     given'' and inserting the following:
       ``(2) Designated organization.--The Secretary shall require 
     that a contract for technical assistance under paragraph (1) 
     shall be awarded''; and
       (3) in the third sentence, by striking ``No authority'' and 
     inserting the following:
       ``(b) Effect of Section.--No authority''.
       (f) Amount of Grants.--Section 108(a) of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1808(a)) is amended--
       (1) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and indenting the 
     subparagraphs appropriately;
       (2) by striking ``(a) Except as provided in section 111,'' 
     and inserting the following:
       ``(a) Requirement.--
       ``(1) In general.--Except as provided in paragraph (2) and 
     section 111,'';
       (3) in paragraph (1) (as redesignated by paragraphs (1) and 
     (2))--
       (A) in the matter preceding subparagraph (A) (as 
     redesignated by paragraph (1))--
       (i) by striking ``him'' and inserting ``the Secretary''; 
     and
       (ii) by striking ``product of'' and inserting ``product 
     obtained by multiplying'';
       (B) in subparagraph (A) (as redesignated by paragraph (1)), 
     by striking ``section 2(a)(7)'' and inserting ``section 
     2(a)(8)''; and
       (C) in subparagraph (B) (as redesignated by paragraph (1)), 
     by striking ``$6,000,'' and inserting ``$8,000, as adjusted 
     annually for inflation.''; and
       (4) by striking ``except that no grant shall exceed the 
     total cost of the education program provided by such college 
     or university.'' and inserting the following:
       ``(2) Exception.--The amount of a grant under paragraph (1) 
     shall not exceed an amount equal to the total cost of the 
     education program provided by the applicable tribally 
     controlled college or university.''.
       (g) General Provisions Reauthorization.--Section 110(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1810(a)) is amended--
       (1) in paragraphs (1), (2), (3), and (4), by striking 
     ``1999'' and inserting ``2009'';
       (2) in paragraphs (1), (2), and (3), by striking ``4 
     succeeding'' and inserting ``five succeeding'';
       (3) in paragraph (2), by striking ``$40,000,000'' and 
     inserting ``such sums as may be necessary'';
       (4) in paragraph (3), by striking ``$10,000,000'' and 
     inserting ``such sums as may be necessary''; and
       (5) in paragraph (4), by striking ``succeeding 4'' and 
     inserting ``five succeeding''.
       (h) Endowment Program Reauthorization.--Section 306(a) of 
     the Tribally Controlled College or University Assistance Act 
     of 1978 (25 U.S.C. 1836(a)) is amended--
       (1) by striking ``1999'' and inserting ``2009''; and
       (2) by striking ``4 succeeding'' and inserting ``five 
     succeeding''.
       (i) Tribal Economic Development Reauthorization.--Section 
     403 of the Tribal Economic Development and Technology Related 
     Education Assistance Act of 1990 (25 U.S.C. 1852) is 
     amended--
       (1) by striking ``$2,000,000 for fiscal year 1999'' and 
     inserting ``such sums as may be necessary for fiscal year 
     2009''; and
       (2) by striking ``4 succeeding'' and inserting ``five 
     succeeding''.
       (j) Tribally Controlled Postsecondary Career and Technical 
     Institutions.--
       (1) In general.--The Tribally Controlled College or 
     University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is 
     amended by adding at the end the following:
   ``TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL 
                              INSTITUTIONS

     ``SEC. 501. DEFINITION OF TRIBALLY CONTROLLED POSTSECONDARY 
                   CAREER AND TECHNICAL INSTITUTION.

       ``In this title, the term `tribally controlled 
     postsecondary career and technical institution' has the 
     meaning given the term in section 3 of the Carl D. Perkins 
     Career and Technical Education Act of 2006 (20 U.S.C. 2302).

     ``SEC. 502. TRIBALLY CONTROLLED POSTSECONDARY CAREER AND 
                   TECHNICAL INSTITUTIONS PROGRAM.

       ``(a) In General.--Subject to the availability of 
     appropriations, for fiscal year 2009 and each fiscal year 
     thereafter, the Secretary shall--
       ``(1) subject to subsection (b), select two tribally 
     controlled postsecondary career and technical institutions to 
     receive assistance under this title; and
       ``(2) provide funding to the selected tribally controlled 
     postsecondary career and technical institutions to pay the 
     costs (including institutional support costs) of operating 
     postsecondary career and technical education programs for 
     Indian students at the tribally controlled postsecondary 
     career and technical institutions.
       ``(b) Selection of Certain Institutions.--
       ``(1) Requirement.--For each fiscal year during which the 
     Secretary determines that a tribally controlled postsecondary 
     career and technical institution described in paragraph (2) 
     meets the definition referred to in section 501, the 
     Secretary shall select that tribally controlled postsecondary 
     career and technical institution under subsection (a)(1) to 
     receive funding under this section.
       ``(2) Institutions.--The two tribally controlled 
     postsecondary career and technical institutions referred to 
     in paragraph (1) are--
       ``(A) the United Tribes Technical College; and
       ``(B) the Navajo Technical College.
       ``(c) Method of Payment.--For each applicable fiscal year, 
     the Secretary shall provide funding under this section to 
     each tribally controlled postsecondary career and technical 
     institution selected for the fiscal year under subsection 
     (a)(1) in a lump sum payment for the fiscal year.
       ``(d) Distribution.--
       ``(1) In general.--For fiscal year 2009 and each fiscal 
     year thereafter, of amounts made available pursuant to 
     section 504, the Secretary shall distribute to each tribally 
     controlled postsecondary career and technical institution 
     selected for the fiscal year under subsection (a)(1) an 
     amount equal to the greater of--
       ``(A) the total amount appropriated for the tribally 
     controlled postsecondary career and technical institution for 
     fiscal year 2006; or
       ``(B) the total amount appropriated for the tribally 
     controlled postsecondary career and technical institution for 
     fiscal year 2008.
       ``(2) Excess amounts.--If, for any fiscal year, the amount 
     made available pursuant to section 504 exceeds the sum of the 
     amounts required to be distributed under paragraph (1) to the 
     tribally controlled postsecondary career and technical 
     institutions selected for the fiscal year under subsection 
     (a)(1), the Secretary shall distribute to each tribally 
     controlled postsecondary career and technical institution 
     selected for that fiscal year a portion of the excess amount, 
     to be determined by--
       ``(A) dividing the excess amount by the aggregate Indian 
     student count (as defined in section

[[Page 17196]]

     117(h) of the Carl D. Perkins Career and Technical Education 
     Act of 2006 (20 U.S.C. 2327(h)) of such institutions for the 
     prior academic year; and
       ``(B) multiplying the quotient described in subparagraph 
     (A) by the Indian student count of each such institution for 
     the prior academic year.

     ``SEC. 503. APPLICABILITY OF OTHER LAWS.

       ``(a) In General.--Paragraphs (4) and (8) of subsection 
     (a), and subsection (b), of section 2, sections 105, 108, 
     111, 112 and 113, and titles II, III, and IV shall not apply 
     to this title.
       ``(b) Indian Self-Determination and Education Assistance.--
     Funds made available pursuant to this title shall be subject 
     to the Indian Self-Determination and Education Assistance Act 
     (25 U.S.C. 450 et seq.).
       ``(c) Election to Receive.--A tribally controlled 
     postsecondary career and technical institution selected for a 
     fiscal year under section 502(b) may elect to receive funds 
     pursuant to section 502 in accordance with an agreement 
     between the tribally controlled postsecondary career and 
     technical institution and the Secretary under the Indian 
     Self-Determination and Education Assistance Act (25 U.S.C. 
     450 et seq.) if the agreement is in existence on the date of 
     enactment of the Higher Education Opportunity Act.
       ``(d) Other Assistance.--Eligibility for, or receipt of, 
     assistance under this title shall not preclude the 
     eligibility of a tribally controlled postsecondary career and 
     technical institution to receive Federal financial assistance 
     under--
       ``(1) any program under the Higher Education Act of 1965 
     (20 U.S.C. 1001 et seq.);
       ``(2) any program under the Carl D. Perkins Career and 
     Technical Education Act of 2006; or
       ``(3) any other applicable program under which a benefit is 
     provided for--
       ``(A) institutions of higher education;
       ``(B) community colleges; or
       ``(C) postsecondary educational institutions.

     ``SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated such sums as are 
     necessary for fiscal year 2009 and each fiscal year 
     thereafter to carry out this title.''.
       (2) Conforming amendments.--Section 117 of the Carl D. 
     Perkins Career and Technical Education Act of 2006 (20 U.S.C. 
     2327) is amended--
       (A) by striking subsection (a) and inserting the following:
       ``(a) Grant Program.--Subject to the availability of 
     appropriations, the Secretary shall make grants under this 
     section, to provide basic support for the education and 
     training of Indian students, to tribally controlled 
     postsecondary career and technical institutions that are not 
     receiving Federal assistance as of the date on which the 
     grant is provided under--
       ``(1) title I of the Tribally Controlled Colleges and 
     Universities Assistance Act of 1978 (25 U.S.C. 1802 et seq.); 
     or
       ``(2) the Navajo Community College Act (25 U.S.C. 640a et 
     seq.).''; and
       (B) by striking subsection (d) and inserting the following:
       ``(d) Applications.--To be eligible to receive a grant 
     under this section, a tribally controlled postsecondary 
     career and technical institution that is not receiving 
     Federal assistance under title I of the Tribally Controlled 
     Colleges and Universities Assistance Act of 1978 (25 U.S.C. 
     1802 et seq.) or the Navajo Community College Act (25 U.S.C. 
     640a et seq.) shall submit to the Secretary an application at 
     such time, in such manner, and containing such information as 
     the Secretary may require.''.
       (k) Short Title.--
       (1) In general.--The first section of the Tribally 
     Controlled College or University Assistance Act of 1978 (25 
     U.S.C. 1801 note; Public Law 95-471) is amended to read as 
     follows:

     ``SECTION 1. SHORT TITLE.

       ``This Act may be cited as the `Tribally Controlled 
     Colleges and Universities Assistance Act of 1978'.''.
       (2) Technical amendments.--
       (A) Equity in educational land-grant status act of 1994.--
     Section 533(c)(4)(A) of the Equity in Educational Land-Grant 
     Status Act of 1994 (7 U.S.C. 301 note) is amended by striking 
     ``Tribally Controlled College or University Assistance Act of 
     1978'' and inserting ``Tribally Controlled Colleges and 
     Universities Assistance Act of 1978''.
       (B) National museum of the american indian act.--Section 
     10(b)(2) of the National Museum of the American Indian Act 
     (20 U.S.C. 80q-8(b)(2)) is amended by striking ``tribally 
     controlled community colleges (as defined in section 2 of the 
     Tribally Controlled Community College Assistance Act of 
     1978)'' and inserting ``tribally controlled colleges or 
     universities (as defined in section 2(a) of the Tribally 
     Controlled Colleges and Universities Assistance Act of 
     1978)''.
       (C) Individuals with disabilities education act.--Section 
     602(17)(B) of the Individuals with Disabilities Education Act 
     (20 U.S.C. 1401(17)(B)) is amended--
       (i) by striking ``community college'' and inserting 
     ``college or university''; and
       (ii) by striking ``the Tribally Controlled College or 
     University Assistance Act of 1978'' and inserting ``the 
     Tribally Controlled Colleges and Universities Assistance Act 
     of 1978''.
       (D) Carl d. perkins career and technical education act of 
     2006.--The Carl D. Perkins Career and Technical Education Act 
     of 2006 (20 U.S.C. 2301 et seq.) is amended--
       (i) in section 3(33) (20 U.S.C. 2302(33)), by striking 
     ``the Tribally Controlled College or University Assistance 
     Act of 1978'' and inserting ``the Tribally Controlled 
     Colleges and Universities Assistance Act of 1978'';
       (ii) in section 117 (20 U.S.C. 2327), by striking ``the 
     Tribally Controlled College or University Assistance Act of 
     1978'' each place the term appears and inserting ``the 
     Tribally Controlled Colleges and Universities Assistance Act 
     of 1978''; and
       (iii) in section 203(a)(1)(B)(i)(I)(bb)(AA) (20 U.S.C. 
     2373(a)(1)(B)(i)(I)(bb)(AA)), by striking ``the Tribally 
     Controlled College or University Assistance Act of 1978'' and 
     inserting ``the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978''.
       (E) Omnibus education reconciliation act of 1981.--Section 
     528 of the Omnibus Education Reconciliation Act of 1981 (20 
     U.S.C. 3489) is amended by striking ``the Tribally 
     Controlled'' and all that follows through ``1978'' and 
     inserting ``the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978''.
       (F) Elementary and secondary education act of 1965.--The 
     Elementary and Secondary Education Act of 1965 (20 U.S.C. 
     6301 et seq.) is amended--
       (i) in section 3301(3) (20 U.S.C. 7011(3)), by striking 
     ``the Tribally Controlled College or University Assistance 
     Act of 1978'' and inserting ``the Tribally Controlled 
     Colleges and Universities Assistance Act of 1978''; and
       (ii) in section 7134(b)(1)(A) (20 U.S.C. 7454(b)(1)(A)), by 
     striking ``the Tribally Controlled College or University 
     Assistance Act of 1978'' and inserting ``the Tribally 
     Controlled Colleges and Universities Assistance Act of 
     1978''.
       (G) Augustus f. hawkins-robert t. stafford elementary and 
     secondary school improvement amendments of 1988.--Section 
     5404(a)(1) of the Augustus F. Hawkins-Robert T. Stafford 
     Elementary and Secondary School Improvement Amendments of 
     1988 (25 U.S.C. 13d-2(a)(1)) is amended by striking ``the 
     Tribally Controlled'' and all that follows through ``1978'' 
     and inserting ``the Tribally Controlled Colleges and 
     Universities Assistance Act of 1978''.
       (H) Indian self-determination and education assistance 
     act.--Section 403(b)(4)(A) of the Indian Self-Determination 
     and Education Assistance Act (25 U.S.C. 458cc(b)(4)(A)) is 
     amended by striking ``the Tribally Controlled'' and all that 
     follows through ``1978'' and inserting ``the Tribally 
     Controlled Colleges and Universities Assistance Act of 
     1978''.
       (I) Indian health care improvement act.--The Indian Health 
     Care Improvement Act (25 U.S.C. 1601 et seq.) is amended--
       (i) in section 113(b)(1) (25 U.S.C. 1616f(b)(1)), by 
     striking ``tribally-controlled'' and all that follows through 
     ``1978)'' and inserting ``tribally controlled colleges or 
     universities (within the meaning of section 2(a)(4) of the 
     Tribally Controlled Colleges and Universities Act of 1978)'';
       (ii) in section 115(e) (25 U.S.C. 1616h(e)(2))--

       (I) in paragraph (1)(A), by striking ``a tribally 
     controlled community college'' and inserting ``a junior or 
     community college that is a tribally controlled college or 
     university''; and
       (II) by striking paragraph (2) and inserting the following:

       ``(2) The term `tribally controlled college or university' 
     has the meaning given to such term by section 2(a)(4) of the 
     Tribally Controlled Colleges and Universities Assistance Act 
     of 1978.''; and
       (iii) by striking paragraph (3) of section 711(g) (25 
     U.S.C. 1665j(g)) and inserting the following:
       ``(3) The term `tribally controlled community college' 
     means a community college that is a tribally controlled 
     college or university, as such term is defined in section 
     2(a)(4) of the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978.''.
       (J) Indian child protection and family violence prevention 
     act.--Section 411(d)(5)(C) of the Indian Child Protection and 
     Family Violence Prevention Act (25 U.S.C. 3210(d)(5)(C)) is 
     amended by striking ``tribally controlled'' and all that 
     follows through the semicolon at the end and inserting 
     ``tribally controlled college or university (within the 
     meaning of section 2 of the Tribally Controlled Colleges and 
     Universities Assistance Act of 1978);''.
       (K) Assistive technology act of 1998.--Section 3(11) of the 
     Assistive Technology Act of 1998 (29 U.S.C. 3002(11)) is 
     amended by striking ``the Tribally Controlled College or 
     University Assistance Act of 1978'' and inserting ``the 
     Tribally Controlled Colleges and Universities Assistance Act 
     of 1978''.
       (L) Atomic energy act of 1954.--Section 244(a)(3) of the 
     Atomic Energy Act of 1954 (42 U.S.C. 2015c(a)(3)) is amended 
     by striking ``the Tribally Controlled College or University 
     Assistance Act of 1978'' and inserting ``the Tribally 
     Controlled Colleges and Universities Assistance Act of 
     1978''.
       (M) Department of energy science education enhancement 
     act.--Section 3167(a)(5) of the Department of Energy Science 
     Education Enhancement Act (42 U.S.C. 7381c-1(a)(5)) is 
     amended by striking ``the Tribally Controlled College 
     Assistance Act of 1978'' and inserting ``the Tribally 
     Controlled Colleges and Universities Assistance Act of 
     1978''.
       (N) ED 1.0 act.--The ED 1.0 Act (47 U.S.C. 902 note) is 
     amended in subsection (a)(2)(C) by striking ``the Tribally 
     Controlled College or University Assistance Act of 1978'' and 
     inserting ``the Tribally Controlled Colleges and Universities 
     Assistance Act of 1978''.

                   Subpart 2--Navajo Higher Education

     SEC. 945. SHORT TITLE.

       This subpart may be cited as the ``Navajo Nation Higher 
     Education Act of 2008''.

[[Page 17197]]



     SEC. 946. REAUTHORIZATION OF NAVAJO COMMUNITY COLLEGE ACT.

       (a) Purpose.--Section 2 of the Navajo Community College Act 
     (25 U.S.C. 640a) is amended--
       (1) by striking ``Navajo Tribe of Indians'' and inserting 
     ``Navajo Nation''; and
       (2) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''.
       (b) Grants.--Section 3 of the Navajo Community College Act 
     (25 U.S.C. 640b) is amended--
       (1) in the first sentence--
       (A) by inserting ``the'' before ``Interior'';
       (B) by striking ``Navajo Tribe of Indians'' and inserting 
     ``Navajo Nation''; and
       (C) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (2) in the second sentence--
       (A) by striking ``Navajo Tribe'' and inserting ``Navajo 
     Nation''; and
       (B) by striking ``Navajo Indians'' and inserting ``Navajo 
     people''.
       (c) Study of Facilities Needs.--Section 4 of the Navajo 
     Community College Act (25 U.S.C. 640c) is amended--
       (1) in subsection (a)--
       (A) in the first sentence--
       (i) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (ii) by striking ``August 1, 1979'' and inserting ``October 
     31, 2010''; and
       (B) in the second sentence, by striking ``Navajo Tribe'' 
     and inserting ``Navajo Nation'';
       (2) in subsection (b), by striking ``the date of enactment 
     of the Tribally Controlled Community College Assistance Act 
     of 1978'' and inserting ``October 1, 2007''; and
       (3) in subsection (c), in the first sentence, by striking 
     ``the Navajo Community College'' and inserting ``Dine 
     College''.
       (d) Authorization of Appropriations.--Section 5 of the 
     Navajo Community College Act (25 U.S.C. 640c-1) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``$2,000,000'' and all 
     that follows through the end of the paragraph and inserting 
     ``such sums as are necessary for fiscal years 2009 through 
     2014.''; and
       (B) by adding at the end the following:
       ``(3) Sums described in paragraph (2) shall be used to 
     provide grants for construction activities, including the 
     construction of buildings, water and sewer facilities, roads, 
     information technology and telecommunications infrastructure, 
     classrooms, and external structures (such as walkways).'';
       (2) in subsection (b)(1)--
       (A) in the matter preceding subparagraph (A)--
       (i) by striking ``the Navajo Community College'' and 
     inserting ``Dine College''; and
       (ii) by striking ``, for each fiscal year'' and all that 
     follows through ``for--'' and inserting ``such sums as are 
     necessary for fiscal years 2009 through 2014 to pay the cost 
     of--'';
       (B) in subparagraph (A)--
       (i) by striking ``college'' and inserting ``College'';
       (ii) in clauses (i) and (iii), by striking the commas at 
     the ends of the clauses and inserting semicolons; and
       (iii) in clause (ii), by striking ``, and'' at the end and 
     inserting ``; and'';
       (C) in subparagraph (B), by striking the comma at the end 
     and inserting a semicolon;
       (D) in subparagraph (C), by striking ``, and'' at the end 
     and inserting a semicolon;
       (E) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (F) by adding at the end the following:
       ``(E) improving and expanding the College, including by 
     providing, for the Navajo people and others in the community 
     of the College--
       ``(i) higher education programs;
       ``(ii) career and technical education;
       ``(iii) activities relating to the preservation and 
     protection of the Navajo language, philosophy, and culture;
       ``(iv) employment and training opportunities;
       ``(v) economic development and community outreach; and
       ``(vi) a safe learning, working, and living environment.''; 
     and
       (3) in subsection (c), by striking ``the Navajo Community 
     College'' and inserting ``Dine College''.
       (e) Effect on Other Laws.--Section 6 of the Navajo 
     Community College Act (25 U.S.C. 640c-2) is amended--
       (1) by striking ``the Navajo Community College'' each place 
     it appears and inserting ``Dine College''; and
       (2) in subsection (b), by striking ``college'' and 
     inserting ``College''.
       (f) Payments; Interest.--Section 7 of the Navajo Community 
     College Act (25 U.S.C. 640c-3) is amended by striking ``the 
     Navajo Community College'' each place it appears and 
     inserting ``Dine College''.

       PART E--OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968

     SEC. 951. SHORT TITLE.

       This part may be cited as the ``John R. Justice Prosecutors 
     and Defenders Incentive Act of 2008''.

     SEC. 952. LOAN REPAYMENT FOR PROSECUTORS AND DEFENDERS.

       Title I of the Omnibus Crime Control and Safe Streets Act 
     of 1968 (42 U.S.C. 3711 et seq.) is amended by inserting 
     after part II (42 U.S.C. 3797cc et seq.) the following:

     ``PART JJ--LOAN REPAYMENT FOR PROSECUTORS AND PUBLIC DEFENDERS

     ``SEC. 3001. GRANT AUTHORIZATION.

       ``(a) Purpose.--The purpose of this section is to encourage 
     qualified individuals to enter and continue employment as 
     prosecutors and public defenders.
       ``(b) Definitions.--In this section:
       ``(1) Prosecutor.--The term `prosecutor' means a full-time 
     employee of a State or unit of local government who--
       ``(A) is continually licensed to practice law; and
       ``(B) prosecutes criminal or juvenile delinquency cases at 
     the State or unit of local government level (including 
     supervision, education, or training of other persons 
     prosecuting such cases).
       ``(2) Public defender.--The term `public defender' means an 
     attorney who--
       ``(A) is continually licensed to practice law; and
       ``(B) is--
       ``(i) a full-time employee of a State or unit of local 
     government who provides legal representation to indigent 
     persons in criminal or juvenile delinquency cases (including 
     supervision, education, or training of other persons 
     providing such representation);
       ``(ii) a full-time employee of a nonprofit organization 
     operating under a contract with a State or unit of local 
     government, who devotes substantially all of the employee's 
     full-time employment to providing legal representation to 
     indigent persons in criminal or juvenile delinquency cases 
     (including supervision, education, or training of other 
     persons providing such representation); or
       ``(iii) employed as a full-time Federal defender attorney 
     in a defender organization established pursuant to subsection 
     (g) of section 3006A of title 18, United States Code, that 
     provides legal representation to indigent persons in criminal 
     or juvenile delinquency cases.
       ``(3) Student loan.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     the term `student loan' means--
       ``(i) a loan made, insured, or guaranteed under part B of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 
     et seq.);
       ``(ii) a loan made under part D or E of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1087a et seq. and 
     1087aa et seq.); and
       ``(iii) a loan made under section 428C or 455(g) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-3 and 1087e(g)).
       ``(B) Exclusion of parent plus loans.--The term `student 
     loan' does not include any of the following loans:
       ``(i) A loan made to the parents of a dependent student 
     under section 428B of the Higher Education Act of 1965 (20 
     U.S.C. 1078-2).
       ``(ii) A Federal Direct PLUS Loan made to the parents of a 
     dependent student.
       ``(iii) A loan made under section 428C or 455(g) of the 
     Higher Education Act of 1965 (20 U.S.C. 1078-3 and 1087e(g)) 
     to the extent that such loan was used to repay a loan 
     described in clause (i) or (ii).
       ``(c) Program Authorized.--The Attorney General shall 
     establish a program by which the Department of Justice shall 
     assume the obligation to repay a student loan, by direct 
     payments on behalf of a borrower to the holder of such loan, 
     in accordance with subsection (d), for any borrower who--
       ``(1) is employed as a prosecutor or public defender; and
       ``(2) is not in default on a loan for which the borrower 
     seeks forgiveness.
       ``(d) Terms of Agreement.--
       ``(1) In general.--To be eligible to receive repayment 
     benefits under subsection (c), a borrower shall enter into a 
     written agreement that specifies that--
       ``(A) the borrower will remain employed as a prosecutor or 
     public defender for a required period of service of not less 
     than three years, unless involuntarily separated from that 
     employment;
       ``(B) if the borrower is involuntarily separated from 
     employment on account of misconduct, or voluntarily separates 
     from employment, before the end of the period specified in 
     the agreement, the borrower will repay the Attorney General 
     the amount of any benefits received by such employee under 
     this section;
       ``(C) if the borrower is required to repay an amount to the 
     Attorney General under subparagraph (B) and fails to repay 
     such amount, a sum equal to that amount shall be recoverable 
     by the Federal Government from the employee (or such 
     employee's estate, if applicable) by such methods as are 
     provided by law for the recovery of amounts owed to the 
     Federal Government;
       ``(D) the Attorney General may waive, in whole or in part, 
     a right of recovery under this subsection if it is shown that 
     recovery would be against equity and good conscience or 
     against the public interest; and
       ``(E) the Attorney General shall make student loan payments 
     under this section for the period of the agreement, subject 
     to the availability of appropriations.
       ``(2) Repayments.--
       ``(A) In general.--Any amount repaid by, or recovered from, 
     an individual or the estate of an individual under this 
     subsection shall be credited to the appropriation account 
     from which the amount involved was originally paid.
       ``(B) Merger.--Any amount credited under subparagraph (A) 
     shall be merged with other sums in such account and shall be 
     available for the same purposes and period, and subject to 
     the same limitations, if any, as the sums with which the 
     amount was merged.
       ``(3) Limitations.--
       ``(A) Student loan payment amount.--Student loan repayments 
     made by the Attorney General under this section shall be made 
     subject

[[Page 17198]]

     to such terms, limitations, or conditions as may be mutually 
     agreed upon by the borrower and the Attorney General in an 
     agreement under paragraph (1), except that the amount paid by 
     the Attorney General under this section shall not exceed--
       ``(i) $10,000 for any borrower in any calendar year; or
       ``(ii) an aggregate total of $60,000 in the case of any 
     borrower.
       ``(B) Beginning of payments.--Nothing in this section shall 
     authorize the Attorney General to pay any amount to reimburse 
     a borrower for any repayments made by such borrower prior to 
     the date on which the Attorney General entered into an 
     agreement with the borrower under this subsection.
       ``(e) Additional Agreements.--
       ``(1) In general.--On completion of the required period of 
     service under an agreement under subsection (d), the borrower 
     and the Attorney General may, subject to paragraph (2), enter 
     into an additional agreement in accordance with subsection 
     (d).
       ``(2) Term.--An agreement entered into under paragraph (1) 
     may require the borrower to remain employed as a prosecutor 
     or public defender for less than three years.
       ``(f) Award Basis; Priority.--
       ``(1) Award basis.--Subject to paragraph (2), the Attorney 
     General shall provide repayment benefits under this section--
       ``(A) giving priority to borrowers who have the least 
     ability to repay their loans, except that the Attorney 
     General shall determine a fair allocation of repayment 
     benefits among prosecutors and public defenders, and among 
     employing entities nationwide; and
       ``(B) subject to the availability of appropriations.
       ``(2) Priority.--The Attorney General shall give priority 
     in providing repayment benefits under this section in any 
     fiscal year to a borrower who--
       ``(A) received repayment benefits under this section during 
     the preceding fiscal year; and
       ``(B) has completed less than three years of the first 
     required period of service specified for the borrower in an 
     agreement entered into under subsection (d).
       ``(g) Regulations.--The Attorney General is authorized to 
     issue such regulations as may be necessary to carry out the 
     provisions of this section.
       ``(h) Report by Inspector General.--Not later than three 
     years after the date of the enactment of this section, the 
     Inspector General of the Department of Justice shall submit 
     to Congress a report on--
       ``(1) the cost of the program authorized under this 
     section; and
       ``(2) the impact of such program on the hiring and 
     retention of prosecutors and public defenders.
       ``(i) GAO Study.--Not later than one year after the date of 
     the enactment of this section, the Comptroller General shall 
     conduct a study of, and report to Congress on, the impact 
     that law school accreditation requirements and other factors 
     have on the costs of law school and student access to law 
     school, including the impact of such requirements on racial 
     and ethnic minorities.
       ``(j) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section 
     $25,000,000 for fiscal year 2009 and such sums as may be 
     necessary for each of the five succeeding fiscal years.''.

        PART F--INSTITUTIONAL LOAN REPAYMENT ASSISTANCE PROGRAMS

     SEC. 961. INSTITUTIONAL LOAN FORGIVENESS PROGRAMS.

       Notwithstanding any other provision of law--
       (1) a public or private institution of higher education may 
     provide an officer or employee of any branch of the United 
     States Government, of any independent agency of the United 
     States, or of the District of Columbia, who is a current or 
     former student of such institution, financial assistance for 
     the purpose of repaying a student loan or providing 
     forbearance of student loan repayment if--
       (A) such repayment or forbearance is provided to such 
     officer or employee in accordance with a written, published 
     policy of the institution relating to repaying or providing 
     forbearance, respectively, for students or former students 
     who perform public service; and
       (B) in the case of a former student of the institution of 
     higher education, the policy described in subparagraph (A) 
     was in effect at the institution of higher education on the 
     day before the date such officer or employee graduated from 
     or otherwise ceased being a student at such institution; and
       (2) an officer or employee of any branch of the United 
     States Government, of any independent agency of the United 
     States, or of the District of Columbia may receive repayment 
     or forbearance permitted under paragraph (1).

 PART G--MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS TECHNOLOGY 
                          OPPORTUNITY PROGRAM

     SEC. 971. MINORITY SERVING INSTITUTION DIGITAL AND WIRELESS 
                   TECHNOLOGY OPPORTUNITY PROGRAM.

       Section 5 of the Stevenson-Wydler Technology Innovation Act 
     of 1980 (15 U.S.C. 3704) is amended by inserting after 
     subsection (b) the following:
       ``(c) Minority Serving Institution Digital and Wireless 
     Technology Opportunity Program.--
       ``(1) In general.--The Secretary shall establish a Minority 
     Serving Institution Digital and Wireless Technology 
     Opportunity Program that awards grants, cooperative 
     agreements, and contracts to eligible institutions to enable 
     the eligible institutions in acquiring, and augmenting the 
     institutions' use of, digital and wireless networking 
     technologies to improve the quality and delivery of 
     educational services at eligible institutions.
       ``(2) Application and review procedures.--
       ``(A) In general.--To be eligible to receive a grant, 
     cooperative agreement, or contract under this subsection, an 
     eligible institution shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. Such application, 
     at a minimum, shall include a description of how the funds 
     will be used, including a description of any digital and 
     wireless networking technology to be acquired, and a 
     description of how the institution will ensure that digital 
     and wireless networking technology will be made accessible 
     to, and employed by, students, faculty, and administrators. 
     The Secretary, consistent with subparagraph (C) and in 
     consultation with the advisory council established under 
     subparagraph (B), shall establish procedures to review such 
     applications. The Secretary shall publish the application 
     requirements and review criteria in the Federal Register, 
     along with a statement describing the availability of funds.
       ``(B) Advisory council.--The Secretary shall establish an 
     advisory council to advise the Secretary on the best 
     approaches to encourage maximum participation by eligible 
     institutions in the program established under paragraph (1), 
     and on the procedures to review applications submitted to the 
     program. In selecting the members of the advisory council, 
     the Secretary shall consult with representatives of 
     appropriate organizations, including representatives of 
     eligible institutions, to ensure that the membership of the 
     advisory council includes representatives of minority 
     businesses and eligible institution communities. The 
     Secretary shall also consult with experts in digital and 
     wireless networking technology to ensure that such expertise 
     is represented on the advisory council.
       ``(C) Review panels.--Each application submitted under this 
     subsection by an eligible institution shall be reviewed by a 
     panel of individuals selected by the Secretary to judge the 
     quality and merit of the proposal, including the extent to 
     which the eligible institution can effectively and 
     successfully utilize the proposed grant, cooperative 
     agreement, or contract to carry out the program described in 
     paragraph (1). The Secretary shall ensure that the review 
     panels include representatives of minority serving 
     institutions and others who are knowledgeable about eligible 
     institutions and technology issues. The Secretary shall 
     ensure that no individual assigned under this subsection to 
     review any application has a conflict of interest with regard 
     to that application. The Secretary shall take into 
     consideration the recommendations of the review panel in 
     determining whether to award a grant, cooperative agreement, 
     or contract to an eligible institution.
       ``(3) Awards.--
       ``(A) Limitation.--An eligible institution that receives a 
     grant, cooperative agreement, or contract under this 
     subsection that exceeds $2,500,000 shall not be eligible to 
     receive another grant, cooperative agreement, or contract 
     under this subsection.
       ``(B) Consortia.--Grants, cooperative agreements, and 
     contracts may only be awarded to eligible institutions. 
     Eligible institutions may seek funding under this subsection 
     for consortia, which may include other eligible institutions, 
     a State or a State educational agency, local educational 
     agencies, institutions of higher education, community-based 
     organizations, national nonprofit organizations, or 
     businesses, including minority businesses.
       ``(C) Planning grants.--The Secretary may provide funds to 
     develop strategic plans to implement grants, cooperative 
     agreements, or contracts awarded under this subsection.
       ``(D) Institutional diversity.--In awarding grants, 
     cooperative agreements, and contracts to eligible 
     institutions, the Secretary shall ensure, to the extent 
     practicable, that awards are made to all types of 
     institutions eligible for assistance under this subsection.
       ``(E) Need.--In awarding funds under this subsection, the 
     Secretary shall give priority to the eligible institution 
     with the greatest demonstrated need for assistance.
       ``(4) Authorized activities.--An eligible institution may 
     use a grant, cooperative agreement, or contract awarded under 
     this subsection--
       ``(A) to acquire equipment, instrumentation, networking 
     capability, hardware and software, digital network 
     technology, wireless technology, and infrastructure to 
     further the objective of the program described in paragraph 
     (1);
       ``(B) to develop and provide training, education, and 
     professional development programs, including faculty 
     development, to increase the use of, and usefulness of, 
     digital and wireless networking technology;
       ``(C) to provide teacher education, including the provision 
     of preservice teacher training and in-service professional 
     development at eligible institutions, library and media 
     specialist training, and preschool and teacher aid 
     certification to individuals who seek to acquire or enhance 
     technology skills in order to use digital and wireless 
     networking technology in the classroom or instructional 
     process, including instruction in science, mathematics, 
     engineering, and technology subjects;
       ``(D) to obtain capacity-building technical assistance, 
     including through remote technical support, technical 
     assistance workshops, and distance learning services; or

[[Page 17199]]

       ``(E) to foster the use of digital and wireless networking 
     technology to improve research and education, including 
     scientific, mathematics, engineering, and technology 
     instruction.
       ``(5) Information dissemination.--The Secretary shall 
     convene an annual meeting of eligible institutions receiving 
     grants, cooperative agreements, or contracts under this 
     subsection to foster collaboration and capacity-building 
     activities among eligible institutions.
       ``(6) Matching requirement.--The Secretary may not award a 
     grant, cooperative agreement, or contract to an eligible 
     institution under this subsection unless such institution 
     agrees that, with respect to the costs incurred by the 
     institution in carrying out the program for which the grant, 
     cooperative agreement, or contract was awarded, such 
     institution shall make available, directly, or through 
     donations from public or private entities, non-Federal 
     contributions in an amount equal to 25 percent of the grant, 
     cooperative agreement, or contract awarded by the Secretary, 
     or $500,000, whichever is the lesser amount. The Secretary 
     shall waive the matching requirement for any institution or 
     consortium with no endowment, or an endowment that has a 
     current dollar value lower than $50,000,000.
       ``(7) Annual report and assessments.--
       ``(A) Annual report required from recipients.--Each 
     eligible institution that receives a grant, cooperative 
     agreement, or contract awarded under this subsection shall 
     provide an annual report to the Secretary on its use of the 
     grant, cooperative agreement, or contract.
       ``(B) Independent assessments.--
       ``(i) Contract to conduct assessments.--Not later than 6 
     months after the date of enactment of this subsection, the 
     Secretary shall enter into a contract with the National 
     Academy of Public Administration to conduct periodic 
     assessments of the program established under paragraph (1). 
     The assessments shall be conducted once every 3 years during 
     the 10-year period following the date of enactment of this 
     subsection.
       ``(ii) Evaluations and recommendations.--The assessments 
     described in clause (i) shall include--

       ``(I) an evaluation of the effectiveness of the program 
     established under paragraph (1) in improving the education 
     and training of students, faculty, and staff at eligible 
     institutions that have been awarded grants, cooperative 
     agreements, or contracts under the program;
       ``(II) an evaluation of the effectiveness of the program in 
     improving access to, and familiarity with, digital and 
     wireless networking technology for students, faculty, and 
     staff at all eligible institutions;
       ``(III) an evaluation of the procedures established under 
     paragraph (2)(A); and
       ``(IV) recommendations for improving the program, including 
     recommendations concerning the continuing need for Federal 
     support.

       ``(iii) Review of reports.--In carrying out the assessments 
     under this subparagraph, the National Academy of Public 
     Administration shall review the reports submitted to the 
     Secretary under subparagraph (A).
       ``(iv) Report to congress.--Upon completion of each 
     assessment under this subparagraph, the Secretary shall 
     transmit the assessment to Congress along with a summary of 
     the Secretary's plans, if any, to implement the 
     recommendations of the National Academy of Public 
     Administration.
       ``(8) Definitions.--In this subsection:
       ``(A) Digital and wireless networking technology.--The term 
     `digital and wireless networking technology' means computer 
     and communications equipment and software that facilitates 
     the transmission of information in a digital format.
       ``(B) Eligible institution.--The term `eligible 
     institution' means an institution that is--
       ``(i) a part B institution, as defined in section 322(2) of 
     the Higher Education Act of 1965 (20 U.S.C. 1061(2)), an 
     institution identified in subparagraph (A), (B), or (C) of 
     section 326(e)(1) of such Act (20 U.S.C. 1063b(e)(1)(A), (B), 
     or (C)), or a consortium of institutions described in this 
     clause;
       ``(ii) a Hispanic-serving institution, as defined in 
     section 502(a)(5) of the Higher Education Act of 1965 (20 
     U.S.C. 1101a(a)(5));
       ``(iii) a Tribal College or University, as defined in 
     section 316(b)(3) of the Higher Education Act of 1965 (20 
     U.S.C. 1059c(b)(3));
       ``(iv) an Alaska Native-serving institution, as defined in 
     section 317(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1059d(b));
       ``(v) a Native Hawaiian-serving institution, as defined in 
     section 317(b) of the Higher Education Act of 1965 (20 U.S.C. 
     1059d(b));
       ``(vi) a Predominately Black Institution, as defined in 
     section 318 of the Higher Education Act of 1965 (20 U.S.C. 
     1059e);
       ``(vii) a Native American-serving, nontribal institution, 
     as defined in section 319 of the Higher Education Act of 1965 
     (20 U.S.C. 1059f);
       ``(viii) an Asian American and Native American Pacific 
     Islander-serving institution, as defined in section 320 of 
     the Higher Education Act of 1965 (20 U.S.C. 1059g); or
       ``(ix) a minority institution, as defined in section 365 of 
     the Higher Education Act of 1965 (20 U.S.C. 1067k), with an 
     enrollment of needy students, as defined in section 312(d) of 
     the Higher Education Act of 1965 (20 U.S.C. 1058(d)).
       ``(C) Institution of higher education.--The term 
     `institution of higher education' has the meaning given the 
     term in section 101 of the Higher Education Act of 1965 (20 
     U.S.C. 1001).
       ``(D) Local educational agency.--The term `local 
     educational agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7801).
       ``(E) Minority business.--The term `minority business' 
     includes HUBZone small business concerns (as defined in 
     section 3(p) of the Small Business Act (15 U.S.C. 632(p))).
       ``(F) Minority individual.--The term `minority individual' 
     means an American Indian, Alaskan Native, Black (not of 
     Hispanic origin), Hispanic (including persons of Mexican, 
     Puerto Rican, Cuban, and Central or South American origin), 
     or Pacific Islander individual.
       ``(G) State.--The term `State' has the meaning given the 
     term in section 9101 of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801).
       ``(H) State educational agency.--The term `State 
     educational agency' has the meaning given the term in section 
     9101 of the Elementary and Secondary Education Act of 1965 
     (20 U.S.C. 7801).''.

     SEC. 972. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Commerce to carry out section 5(c) of the Stevenson-Wydler 
     Technology Innovation Act of 1980 such sums as may be 
     necessary for each of the fiscal years 2009 through 2012.
               TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

     SEC. 1001. SHORT TITLE.

       This title may be cited as the ``Private Student Loan 
     Transparency and Improvement Act of 2008''.

     SEC. 1002. REGULATIONS.

       Not later than 365 days after the date of enactment of this 
     Act, the Board of Governors of the Federal Reserve System 
     shall issue regulations in final form to implement paragraphs 
     (1), (2), (3), (4), (6), (7), and (8) of section 128(e) and 
     section 140(c) of the Truth in Lending Act, as added by this 
     title, which regulations shall become effective not later 
     than 6 months after their date of issuance.

     SEC. 1003. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsection (b) and 
     as otherwise provided in this title, this title and the 
     amendments made by this title shall become effective on the 
     date of enactment of this Act.
       (b) Effect Notwithstanding Regulations.--Paragraphs (1), 
     (2), (3), (4), (6), (7), and (8) of section 128(e) and 
     section 140(c) of the Truth in Lending Act, as added by this 
     title, shall become effective on the earlier of the date on 
     which regulations issued under section 1002 become effective 
     or 18 months after the date of enactment of this Act.
Subtitle A--Preventing Unfair and Deceptive Private Educational Lending 
            Practices and Eliminating Conflicts of Interest

     SEC. 1011. AMENDMENT TO THE TRUTH IN LENDING ACT.

       (a) Preventing Unfair and Deceptive Private Educational 
     Lending Practices and Conflicts of Interest.--Chapter 2 of 
     the Truth in Lending Act (15 U.S.C. 1631 et seq.) is amended 
     by adding at the end the following new section:
``Sec. 140. Preventing unfair and deceptive private educational lending 
              practices and eliminating conflicts of interest
       ``(a) Definitions.--As used in this section--
       ``(1) the term `covered educational institution'--
       ``(A) means any educational institution that offers a 
     postsecondary educational degree, certificate, or program of 
     study (including any institution of higher education); and
       ``(B) includes an agent, officer, or employee of the 
     educational institution;
       ``(2) the term `gift'--
       ``(A)(i) means any gratuity, favor, discount, 
     entertainment, hospitality, loan, or other item having more 
     than a de minimis monetary value, including services, 
     transportation, lodging, or meals, whether provided in kind, 
     by purchase of a ticket, payment in advance, or reimbursement 
     after the expense has been incurred; and
       ``(ii) includes an item described in clause (i) provided to 
     a family member of an officer, employee, or agent of a 
     covered educational institution, or to any other individual 
     based on that individual's relationship with the officer, 
     employee, or agent, if--
       ``(I) the item is provided with the knowledge and 
     acquiescence of the officer, employee, or agent; and
       ``(II) the officer, employee, or agent has reason to 
     believe the item was provided because of the official 
     position of the officer, employee, or agent; and
       ``(B) does not include--
       ``(i) standard informational material related to a loan, 
     default aversion, default prevention, or financial literacy;
       ``(ii) food, refreshments, training, or informational 
     material furnished to an officer, employee, or agent of a 
     covered educational institution, as an integral part of a 
     training session or through participation in an advisory 
     council that is designed to improve the service of the 
     private educational lender to the covered educational 
     institution, if such training or participation contributes to 
     the professional development of the officer, employee, or 
     agent of the covered educational institution;
       ``(iii) favorable terms, conditions, and borrower benefits 
     on a private education loan provided to a student employed by 
     the covered educational institution, if such terms, 
     conditions, or benefits are not provided because of the 
     student's employment with the covered educational 
     institution;
       ``(iv) the provision of financial literacy counseling or 
     services, including counseling or services provided in 
     coordination with a covered

[[Page 17200]]

     educational institution, to the extent that such counseling 
     or services are not undertaken to secure--

       ``(I) applications for private education loans or private 
     education loan volume;
       ``(II) applications or loan volume for any loan made, 
     insured, or guaranteed under title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070 et seq.); or
       ``(III) the purchase of a product or service of a specific 
     private educational lender;

       ``(v) philanthropic contributions to a covered educational 
     institution from a private educational lender that are 
     unrelated to private education loans and are not made in 
     exchange for any advantage related to private education 
     loans; or
       ``(vi) State education grants, scholarships, or financial 
     aid funds administered by or on behalf of a State;
       ``(3) the term `institution of higher education' has the 
     same meaning as in section 102 of the Higher Education Act of 
     1965 (20 U.S.C. 1002);
       ``(4) the term `postsecondary educational expenses' means 
     any of the expenses that are included as part of the cost of 
     attendance of a student, as defined under section 472 of the 
     Higher Education Act of 1965 (20 U.S.C. 1087ll);
       ``(5) the term `preferred lender arrangement' has the same 
     meaning as in section 151 of the Higher Education Act of 
     1965;
       ``(6) the term `private educational lender' means--
       ``(A) a financial institution, as defined in section 3 of 
     the Federal Deposit Insurance Act (12 U.S.C. 1813) that 
     solicits, makes, or extends private education loans;
       ``(B) a Federal credit union, as defined in section 101 of 
     the Federal Credit Union Act (12 U.S.C. 1752) that solicits, 
     makes, or extends private education loans; and
       ``(C) any other person engaged in the business of 
     soliciting, making, or extending private education loans;
       ``(7) the term `private education loan'--
       ``(A) means a loan provided by a private educational lender 
     that--
       ``(i) is not made, insured, or guaranteed under of title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
     and
       ``(ii) is issued expressly for postsecondary educational 
     expenses to a borrower, regardless of whether the loan is 
     provided through the educational institution that the subject 
     student attends or directly to the borrower from the private 
     educational lender; and
       ``(B) does not include an extension of credit under an open 
     end consumer credit plan, a reverse mortgage transaction, a 
     residential mortgage transaction, or any other loan that is 
     secured by real property or a dwelling; and
       ``(8) the term `revenue sharing' means an arrangement 
     between a covered educational institution and a private 
     educational lender under which--
       ``(A) a private educational lender provides or issues 
     private education loans with respect to students attending 
     the covered educational institution;
       ``(B) the covered educational institution recommends to 
     students or others the private educational lender or the 
     private education loans of the private educational lender; 
     and
       ``(C) the private educational lender pays a fee or provides 
     other material benefits, including profit sharing, to the 
     covered educational institution in connection with the 
     private education loans provided to students attending the 
     covered educational institution or a borrower acting on 
     behalf of a student.
       ``(b) Prohibition on Certain Gifts and Arrangements.--A 
     private educational lender may not, directly or indirectly--
       ``(1) offer or provide any gift to a covered educational 
     institution in exchange for any advantage or consideration 
     provided to such private educational lender related to its 
     private education loan activities; or
       ``(2) engage in revenue sharing with a covered educational 
     institution.
       ``(c) Prohibition on Co-Branding.--A private educational 
     lender may not use the name, emblem, mascot, or logo of the 
     covered educational institution, or other words, pictures, or 
     symbols readily identified with the covered educational 
     institution, in the marketing of private education loans in 
     any way that implies that the covered educational institution 
     endorses the private education loans offered by the private 
     educational lender.
       ``(d) Advisory Board Compensation.--Any person who is 
     employed in the financial aid office of a covered educational 
     institution, or who otherwise has responsibilities with 
     respect to private education loans or other financial aid of 
     the institution, and who serves on an advisory board, 
     commission, or group established by a private educational 
     lender or group of such lenders shall be prohibited from 
     receiving anything of value from the private educational 
     lender or group of lenders. Nothing in this subsection 
     prohibits the reimbursement of reasonable expenses incurred 
     by an employee of a covered educational institution as part 
     of their service on an advisory board, commission, or group 
     described in this subsection.
       ``(e) Prohibition on Prepayment or Repayment Fees or 
     Penalty.--It shall be unlawful for any private educational 
     lender to impose a fee or penalty on a borrower for early 
     repayment or prepayment of any private education loan.''.
       (b) Conforming Amendment to Truth in Lending Act.--Section 
     103(f) of the Truth in Lending Act (15 U.S.C. 1602(f)) is 
     amended by adding at the end the following: ``The term 
     `creditor' includes a private educational lender (as that 
     term is defined in section 140) for purposes of this 
     title.''.
       (c) Disclosures of Reimbursements for Service on Advisory 
     Boards.--
       Section 485 of the Higher Education Act of 1965 (20 U.S.C. 
     1092), as amended by this Act, is further amended by adding 
     at the end the following:
       ``(m) Disclosures of Reimbursements for Service on Advisory 
     Boards.--
       ``(1) Disclosure.--Each institution of higher education 
     participating in any program under this title shall report, 
     on an annual basis, to the Secretary, any reasonable expenses 
     paid or provided under section 140(d) of the Truth in Lending 
     Act to any employee who is employed in the financial aid 
     office of the institution, or who otherwise has 
     responsibilities with respect to education loans or other 
     financial aid of the institution. Such reports shall 
     include--
       ``(A) the amount for each specific instance of reasonable 
     expenses paid or provided;
       ``(B) the name of the financial aid official, other 
     employee, or agent to whom the expenses were paid or 
     provided;
       ``(C) the dates of the activity for which the expenses were 
     paid or provided; and
       ``(D) a brief description of the activity for which the 
     expenses were paid or provided.
       ``(2) Report to congress.--The Secretary shall summarize 
     the information received from institutions of higher 
     education under paragraph (1) in a report and transmit such 
     report annually to the authorizing committees.''.

     SEC. 1012. CIVIL LIABILITY.

       (a) In General.--Section 130 of the Truth in Lending Act 
     (15 U.S.C. 1640) is amended--
       (1) in subsection (a)--
       (A) in paragraph (3), by inserting ``or 128(e)(7)'' after 
     ``section 125''; and
       (B) in the fourth sentence of the undesignated matter at 
     the end--
       (i) by striking ``125 or'' and inserting ``125,''; and
       (ii) by inserting ``of subparagraphs (A), (B), (D), (F), or 
     (J) of section 128(e)(2) (for purposes of paragraph (2) or 
     (4) of section 128(e)), or paragraph (4)(C), (6), (7), or (8) 
     of section 128(e),'' before ``or for failing'';
       (2) in subsection (e), by inserting before the first period 
     the following: ``or, in the case of a violation involving a 
     private education loan (as that term is defined in section 
     140(a)), 1 year from the date on which the first regular 
     payment of principal is due under the loan''; and
       (3) by adding at the end the following:
       ``(j) Private Educational Lender.--A private educational 
     lender (as that term is defined in section 140(a)) has no 
     liability under this section for failure to comply with 
     section 128(e)(3)).''.
       (b) Effective Date.--The amendments made by this section 
     shall have the same effective date as provisions referred to 
     in section 1003(b).

     SEC. 1013. CLERICAL AMENDMENT.

       The table of sections for chapter 2 of title I of the Truth 
     in Lending Act (15 U.S.C. 1631 et seq.) is amended by adding 
     at the end the following:

``140. Preventing unfair and deceptive private educational lending 
              practices and eliminating conflicts of interest.''.
      Subtitle B--Improved Disclosures for Private Education Loans

     SEC. 1021. PRIVATE EDUCATION LOAN DISCLOSURES AND 
                   LIMITATIONS.

       (a) Truth in Lending Act.--Section 128 of the Truth in 
     Lending Act (15 U.S.C. 1638) is amended by adding at the end 
     the following:
       ``(e) Terms and Disclosure With Respect to Private 
     Education Loans.--
       ``(1) Disclosures required in private education loan 
     applications and solicitations.--In any application for a 
     private education loan, or a solicitation for a private 
     education loan without requiring an application, the private 
     educational lender shall disclose to the borrower, clearly 
     and conspicuously--
       ``(A) the potential range of rates of interest applicable 
     to the private education loan;
       ``(B) whether the rate of interest applicable to the 
     private education loan is fixed or variable;
       ``(C) limitations on interest rate adjustments, both in 
     terms of frequency and amount, or the lack thereof, if 
     applicable;
       ``(D) requirements for a co-borrower, including any changes 
     in the applicable interest rates without a co-borrower;
       ``(E) potential finance charges, late fees, penalties, and 
     adjustments to principal, based on defaults or late payments 
     of the borrower;
       ``(F) fees or range of fees applicable to the private 
     education loan;
       ``(G) the term of the private education loan;
       ``(H) whether interest will accrue while the student to 
     whom the private education loan relates is enrolled at a 
     covered educational institution;
       ``(I) payment deferral options;
       ``(J) general eligibility criteria for the private 
     education loan;
       ``(K) an example of the total cost of the private education 
     loan over the life of the loan--
       ``(i) which shall be calculated using the principal amount 
     and the maximum rate of interest actually offered by the 
     private educational lender; and
       ``(ii) calculated both with and without capitalization of 
     interest, if an option exists for postponing interest 
     payments;
       ``(L) that a covered educational institution may have 
     school-specific education loan benefits and terms not 
     detailed on the disclosure form;
       ``(M) that the borrower may qualify for Federal student 
     financial assistance through a program under title IV of the 
     Higher Education Act

[[Page 17201]]

     of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition 
     to, a loan from a non-Federal source;
       ``(N) the interest rates available with respect to such 
     Federal student financial assistance through a program under 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 
     et seq.);
       ``(O) that, as provided in paragraph (6)--
       ``(i) the borrower shall have the right to accept the terms 
     of the loan and consummate the transaction at any time within 
     30 calendar days (or such longer period as the private 
     educational lender may provide) following the date on which 
     the application for the private education loan is approved 
     and the borrower receives the disclosure documents required 
     under this subsection for the loan; and
       ``(ii) except for changes based on adjustments to the index 
     used for a loan, the rates and terms of the loan may not be 
     changed by the private educational lender during the period 
     described in clause (i);
       ``(P) that, before a private education loan may be 
     consummated, the borrower must obtain from the relevant 
     institution of higher education the form required under 
     paragraph (3), and complete, sign, and return such form to 
     the private educational lender;
       ``(Q) that the consumer may obtain additional information 
     concerning such Federal student financial assistance from 
     their institution of higher education, or at the website of 
     the Department of Education; and
       ``(R) such other information as the Board shall prescribe, 
     by rule, as necessary or appropriate for consumers to make 
     informed borrowing decisions.
       ``(2) Disclosures at the time of private education loan 
     approval.--Contemporaneously with the approval of a private 
     education loan application, and before the loan transaction 
     is consummated, the private educational lender shall disclose 
     to the borrower, clearly and conspicuously--
       ``(A) the applicable rate of interest in effect on the date 
     of approval;
       ``(B) whether the rate of interest applicable to the 
     private education loan is fixed or variable;
       ``(C) limitations on interest rate adjustments, both in 
     terms of frequency and amount, or the lack thereof, if 
     applicable;
       ``(D) the initial approved principal amount;
       ``(E) applicable finance charges, late fees, penalties, and 
     adjustments to principal, based on borrower defaults or late 
     payments, including limitations on the discharge of a private 
     education loan in bankruptcy;
       ``(F) fees or range of fees applicable to the private 
     education loan;
       ``(G) the maximum term under the private education loan 
     program;
       ``(H) an estimate of the total amount for repayment, at 
     both the interest rate in effect on the date of approval and 
     at the maximum possible rate of interest offered by the 
     private educational lender and applicable to the borrower, to 
     the extent that such maximum rate may be determined, or if 
     not, a good faith estimate thereof;
       ``(I) any principal and interest payments required while 
     the student for whom the private education loan is intended 
     is enrolled at a covered educational institution and unpaid 
     interest that will accrue during such enrollment;
       ``(J) payment deferral options applicable to the borrower;
       ``(K) whether monthly payments are graduated;
       ``(L) that, as provided in paragraph (6)--
       ``(i) the borrower shall have the right to accept the terms 
     of the loan and consummate the transaction at any time within 
     30 calendar days (or such longer period as the private 
     educational lender may provide) following the date on which 
     the application for the private education loan is approved 
     and the borrower receives the disclosure documents required 
     under this subsection for the loan; and
       ``(ii) except for changes based on adjustments to the index 
     used for a loan, the rates and terms of the loan may not be 
     changed by the private educational lender during the period 
     described in clause (i);
       ``(M) that the borrower --
       ``(i) may qualify for Federal financial assistance through 
     a program under title IV of the Higher Education Act of 1965 
     (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a 
     loan from a non-Federal source; and
       ``(ii) may obtain additional information concerning such 
     assistance from their institution of higher education or the 
     website of the Department of Education;
       ``(N) the interest rates available with respect to such 
     Federal financial assistance through a program under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
       ``(O) the maximum monthly payment, calculated using the 
     maximum rate of interest actually offered by the private 
     educational lender and applicable to the borrower, to the 
     extent that such maximum rate may be determined, or if not, a 
     good faith estimate thereof; and
       ``(P) such other information as the Board shall prescribe, 
     by rule, as necessary or appropriate for consumers to make 
     informed borrowing decisions.
       ``(3) Self-certification of information.--
       ``(A) In general.--Before a private educational lender may 
     consummate a private education loan with respect to a student 
     attending an institution of higher education, the lender 
     shall obtain from the applicant for the private education 
     loan the form developed by the Secretary of Education under 
     section 155 of the Higher Education Act of 1965, signed by 
     the applicant, in written or electronic form.
       ``(B) Rule of construction.--No other provision of this 
     subsection shall be construed to require a private 
     educational lender to perform any additional duty under this 
     paragraph, other than collecting the form required under 
     subparagraph (A).
       ``(4) Disclosures at the time of private education loan 
     consummation.--Contemporaneously with the consummation of a 
     private education loan, a private educational lender shall 
     make to the borrower each of the disclosures described in--
       ``(A) paragraph (2)(A) (adjusted, as necessary, for the 
     rate of interest in effect on the date of consummation, based 
     on the index used for the loan);
       ``(B) subparagraphs (B) through (K) and (M) through (P) of 
     paragraph (2); and
       ``(C) paragraph (7).
       ``(5) Format of disclosures.--
       ``(A) Model form.--Not later than 2 years after the date of 
     enactment of this subsection, the Board shall, based on 
     consumer testing, and in consultation with the Secretary of 
     Education, develop and issue model forms that may be used, at 
     the option of the private educational lender, for the 
     provision of disclosures required under this subsection.
       ``(B) Format.--Model forms developed under this paragraph 
     shall--
       ``(i) be comprehensible to borrowers, with a clear format 
     and design;
       ``(ii) provide for clear and conspicuous disclosures;
       ``(iii) enable borrowers easily to identify material terms 
     of the loan and to compare such terms among private education 
     loans; and
       ``(iv) be succinct, and use an easily readable type font.
       ``(C) Safe harbor.--Any private educational lender that 
     elects to provide a model form developed under this 
     subsection that accurately reflects the practices of the 
     private educational lender shall be deemed to be in 
     compliance with the disclosures required under this 
     subsection.
       ``(6) Effective period of approved rate of interest and 
     loan terms.--
       ``(A) In general.--With respect to a private education 
     loan, the borrower shall have the right to accept the terms 
     of the loan and consummate the transaction at any time within 
     30 calendar days (or such longer period as the private 
     educational lender may provide) following the date on which 
     the application for the private education loan is approved 
     and the borrower receives the disclosure documents required 
     under this subsection for the loan, and the rates and terms 
     of the loan may not be changed by the private educational 
     lender during that period.
       ``(B) Prohibition on changes.--Except for changes based on 
     adjustments to the index used for a loan, the rates and terms 
     of the loan may not be changed by the private educational 
     lender prior to the earlier of--
       ``(i) the date of acceptance of the terms of the loan and 
     consummation of the transaction by the borrower, as described 
     in subparagraph (A); or
       ``(ii) the expiration of the period described in 
     subparagraph (A).
       ``(7) Right to cancel.--With respect to a private education 
     loan, the borrower may cancel the loan, without penalty to 
     the borrower, at any time within 3 business days of the date 
     on which the loan is consummated, and the private educational 
     lender shall disclose such right to the borrower in 
     accordance with paragraph (4).
       ``(8) Prohibition on disbursement.--No funds may be 
     disbursed with respect to a private education loan until the 
     expiration of the 3-day period described in paragraph (7).
       ``(9) Board regulations.--In issuing regulations under this 
     subsection, the Board shall prevent, to the extent possible, 
     duplicative disclosure requirements for private educational 
     lenders that are otherwise required to make disclosures under 
     this title, except that in any case in which the disclosure 
     requirements of this subsection differ or conflict with the 
     disclosure requirements of any other provision of this title, 
     the requirements of this subsection shall be controlling.
       ``(10) Definitions.--For purposes of this subsection, the 
     terms `covered educational institution', `private educational 
     lender', and `private education loan' have the same meanings 
     as in section 140.
       ``(11) Duties of lenders participating in preferred lender 
     arrangements.--Each private educational lender that has a 
     preferred lender arrangement with a covered educational 
     institution shall annually, by a date determined by the 
     Board, in consultation with the Secretary of Education, 
     provide to the covered educational institution such 
     information as the Board determines to include in the model 
     form developed under paragraph (5) for each type of private 
     education loan that the lender plans to offer to students 
     attending the covered educational institution, or to the 
     families of such students, for the next award year (as that 
     term is defined in section 481 of the Higher Education Act of 
     1965).''.
       (b) Self-Certification Form.--Part E of title I of the 
     Higher Education Act of 1965, as added by this Act, is 
     further amended by inserting after section 154 the following:

     ``SEC. 155. SELF-CERTIFICATION FORM FOR PRIVATE EDUCATION 
                   LOANS.

       ``(a) In General.--The Secretary, in consultation with the 
     Board of Governors of the Federal Reserve System, shall 
     develop the self-certification form for private education 
     loans that shall be used to satisfy the requirements of 
     section 128(e)(3) of the Truth in Lending Act. Such form 
     shall--

[[Page 17202]]

       ``(1) be developed in a standardized format;
       ``(2) be made available to the applicant by the relevant 
     institution of higher education, in written or electronic 
     form, upon request of the applicant;
       ``(3) contain only disclosures that--
       ``(A) the applicant may qualify for Federal student 
     financial assistance through a program under title IV of this 
     Act, or State or institutional student financial assistance, 
     in place of, or in addition to, a private education loan;
       ``(B) the applicant is encouraged to discuss the 
     availability of Federal, State, and institutional student 
     financial assistance with financial aid officials at the 
     applicant's institution of higher education;
       ``(C) a private education loan may affect the applicant's 
     eligibility for free or low-cost Federal, State or 
     institutional student financial assistance; and
       ``(D) the information that the applicant is required to 
     provide on the form is available from officials at the 
     financial aid office of the institution of higher education;
       ``(4) include a place to provide information on--
       ``(A) the applicant's cost of attendance at the institution 
     of higher education, as determined by the institution under 
     Part F of title IV;
       ``(B) the applicant's expected family contribution, as 
     determined under Part F of title IV, as applicable, for 
     students who have completed the free application for Federal 
     student aid;
       ``(C) the applicant's estimated financial assistance, as 
     determined by the institution, in accordance with title IV, 
     as applicable;
       ``(D) the difference between the amounts under 
     subparagraphs (A) and (C), as applicable; and
       ``(E) the sum of the amounts under subparagraphs (B) and 
     (D), as applicable; and
       ``(5) include a place for the applicant's signature, in 
     written or electronic form.
       ``(b) Limit on Liability.--Nothing in this section shall be 
     construed to create a private right of action against an 
     institution of higher education with respect to the form 
     developed under subsection (a).''.

     SEC. 1022. APPLICATION OF TRUTH IN LENDING ACT TO ALL PRIVATE 
                   EDUCATION LOANS.

       Section 104(3) of the Truth in Lending Act (15 U.S.C. 
     1603(3)) is amended by inserting ``and other than private 
     education loans (as that term is defined in section 140(a))'' 
     after ``consumer''.
                   Subtitle C--College Affordability

     SEC. 1031. COMMUNITY REINVESTMENT ACT CREDIT FOR LOW-COST 
                   LOANS.

       (a) In General.--Section 804 of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2903) is amended by adding at the end 
     the following new subsection:
       ``(d) Low-Cost Education Loans.--In assessing and taking 
     into account, under subsection (a), the record of a financial 
     institution, the appropriate Federal financial supervisory 
     agency shall consider, as a factor, low-cost education loans 
     provided by the financial institution to low-income 
     borrowers.''.
       (b) Regulations Required.--Not later than 1 year after the 
     date of enactment of this Act, each appropriate Federal 
     financial supervisory agency shall issue rules in final form 
     to implement section 804(d) of the Community Reinvestment Act 
     of 1977, as added by this section.
          Subtitle D--Financial Literacy; Studies and Reports

     SEC. 1041. DEFINITIONS.

       As used in this subtitle--
       (1) the terms ``covered educational institution'', 
     ``private educational lender'', and ``private education 
     loan'' have the same meanings as in section 140 of the Truth 
     in Lending Act, as added by this Act;
       (2) the term ``historically Black colleges and 
     universities'' means a ``part B institution'', within the 
     meaning of section 322 of the Higher Education Act of 1965 
     (20 U.S.C. 1061)); and
       (3) the term ``land-grant colleges and universities'' has 
     the same meaning as in section 1404 of the National 
     Agricultural Research, Extension, and Teaching Policy Act of 
     1977 (7 U.S.C. 3103).

     SEC. 1042. COORDINATED EDUCATION EFFORTS.

       (a) In General.--The Secretary of the Treasury (in this 
     section referred to as the ``Secretary''), in coordination 
     with the Secretary of Education, the Secretary of Agriculture 
     (with respect to land-grant colleges and universities), and 
     any other appropriate agency that is a member of the 
     Financial Literacy and Education Commission established under 
     the Financial Literacy and Education Improvement Act (20 
     U.S.C. 9701 et seq.), shall seek to enhance financial 
     literacy among students at covered educational institutions 
     through--
       (1) the development of initiatives, programs, and curricula 
     that improve student awareness of the short- and long-term 
     costs associated with education loans and other debt assumed 
     while in college, their repayment obligations, and their 
     rights as borrowers; and
       (2) assisting such students in navigating the financial aid 
     process.
       (b) Duties.--For purposes of this section, the Secretary, 
     working in conjunction with the Secretary of Education, the 
     Secretary of Agriculture, and the Financial Literacy and 
     Education Commission, shall--
       (1) identify programs that promote or enhance financial 
     literacy for college students, with specific emphasis on 
     programs that impart the knowledge and ability for students 
     to best navigate the financial aid process, including those 
     that involve partnerships between nonprofit organizations, 
     colleges and universities, State and local governments, and 
     student organizations;
       (2) evaluate the effectiveness of such programs in terms of 
     measured results, including positive behavioral change among 
     college students;
       (3) promote the programs identified as being the most 
     effective; and
       (4) encourage covered educational institutions to implement 
     financial education programs for their students, including 
     those that have the highest evaluations.
       (c) Report.--
       (1) In general.--Not later than 2 years after the date of 
     enactment of this Act, the Financial Literacy and Education 
     Commission shall submit a report to the Committee on Banking, 
     Housing, and Urban Affairs and the Committee on Health 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Financial Services and the Committee on 
     Education and Labor of the House of Representatives on the 
     state of financial education among students at covered 
     educational institutions.
       (2) Content.--The report required by this subsection shall 
     include a description of progress made in enhancing financial 
     education with respect to student understanding of financial 
     aid, including the programs and evaluations required by this 
     section.
       (3) Appearance before congress.--The Secretary shall, upon 
     request, provide testimony before the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives concerning 
     the report required by this subsection.
                     TITLE XI--STUDIES AND REPORTS

     SEC. 1101. STUDY ON FOREIGN GRADUATE MEDICAL SCHOOLS.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall--
       (1) complete a study that examines the performance of 
     students from the United States receiving Federal student 
     financial aid to attend graduate medical schools located 
     outside of the United States;
       (2) provide data and make recommendations to the National 
     Committee on Foreign Medical Education and Accreditation in a 
     timely manner so as to assist the Secretary of Education in 
     the Department of Education's review required under section 
     102 of the Higher Education Act of 1965 (20 U.S.C. 1002); and
       (3) submit to the authorizing committees a report setting 
     forth the conclusions of the study.
       (b) Contents.--The study conducted under this section shall 
     include the following:
       (1) The amount of Federal student financial aid dollars 
     that are spent on graduate medical schools located outside of 
     the United States every year, and the percentage of overall 
     student aid such amount represents.
       (2) The percentage of students of such medical schools who 
     pass the examination sponsored by the Federation of State 
     Medical Boards of the United States, Inc., and the National 
     Board of Medical Examiners the first time.
       (3) The percentage of students of such medical schools who 
     pass the United States medical licensing examination after 
     taking such examinations multiple times, disaggregated by the 
     number of times the students had to take the examinations to 
     pass.
       (4) The percentage of recent graduates of such medical 
     schools practicing medicine in the United States, and a 
     description of where the students are practicing and what 
     types of medicine the students are practicing.
       (5) The rate of graduates of such medical schools who lose 
     malpractice lawsuits or have the graduates' medical licenses 
     revoked, as compared to graduates of graduate medical schools 
     located in the United States.
       (6) Recommendations regarding the percentage passing rate 
     of the United States medical licensing examination that the 
     United States should require of graduate medical schools 
     located outside of the United States for Federal student 
     financial aid purposes.

     SEC. 1102. EMPLOYMENT OF POSTSECONDARY EDUCATION GRADUATES.

       (a) Study, Assessments, and Recommendations.--The 
     Comptroller General of the United States shall--
       (1) conduct a study of--
       (A) the information that States have on the employment of 
     students who have completed postsecondary education programs;
       (B) the feasibility of collecting information on students 
     who complete all types of postsecondary education programs 
     (including two- and four-year degree, certificate, 
     professional, and graduate programs) at all types of 
     institutions of higher education (including public, private 
     nonprofit, and for-profit schools), regarding--
       (i) employment, including--

       (I) the type of job obtained not later than six months 
     after the completion of the degree, certificate, or program;
       (II) whether such job was related to the course of study;
       (III) the starting salary for such job; and
       (IV) the student's satisfaction with the student's 
     preparation for such job and guidance provided with respect 
     to securing the job; and

       (ii) for recipients of Federal student aid, the type of 
     assistance received, so that the information can be used to 
     evaluate various education programs;
       (C) the evaluation systems used by other industries to 
     identify successful programs and challenges, set priorities, 
     monitor performance, and make improvements;
       (D) the best means of collecting information from or 
     regarding recent postsecondary graduates, including--
       (i) whether a national website would be the most effective 
     way to collect information;

[[Page 17203]]

       (ii) whether postsecondary education graduates could be 
     encouraged to voluntarily submit information by allowing a 
     graduate to access aggregated information about other 
     graduates (such as graduates from the graduate's school, with 
     the graduate's degree, or in the graduate's area) if the 
     graduate completes an online questionnaire;
       (iii) whether employers could be encouraged to submit 
     information by allowing an employer to access aggregated 
     information about graduates (such as institutions of higher 
     education attended, degrees, or starting pay) if the employer 
     completes an online questionnaire to evaluate the employer's 
     satisfaction with the graduates the employer hires; and
       (iv) whether postsecondary institutions that receive 
     Federal funds or whose students have received Federal student 
     financial aid could be required to submit aggregated 
     information about the graduates of the institutions; and
       (E) the best means of displaying employment information; 
     and
       (2) provide assessments and recommendations regarding--
       (A) whether successful State cooperative relationships 
     between higher education system offices and State agencies 
     responsible for employment statistics can be encouraged and 
     replicated in other States;
       (B) whether there is value in collecting additional 
     information from, or about, the employment experience of 
     individuals who have recently completed a postsecondary 
     educational program;
       (C) the most promising ways of obtaining and displaying or 
     disseminating such information;
       (D) if a website is used for such information, whether the 
     website should be run by a governmental agency or contracted 
     out to an independent education or employment organization;
       (E) whether a voluntary information system would work, both 
     from the graduates' and employers' perspectives;
       (F) the value of such information to future students, 
     institutions, accrediting agencies or associations, 
     policymakers, and employers, including how the information 
     would be used and the practical applications of the 
     information;
       (G) whether the request for such information is duplicative 
     of information that is already being collected; and
       (H) whether the National Postsecondary Student Aid Survey 
     conducted by the National Center for Education Statistics 
     could be amended to collect such information.
       (b) Reports.--
       (1) Preliminary report.--Not later than one year after the 
     date of enactment of this Act, the Comptroller General of the 
     United States shall submit to the authorizing committees a 
     preliminary report regarding the study, assessments, and 
     recommendations described in subsection (a).
       (2) Final report.--Not later than two years after the date 
     of enactment of this Act, the Comptroller General of the 
     United States shall submit to the authorizing committees a 
     final report regarding such study, assessments, and 
     recommendations.

     SEC. 1103. STUDY ON IPEDS.

       The Comptroller General of the United States shall--
       (1) conduct a study on the time and cost burdens to 
     institutions of higher education associated with completing 
     the Integrated Postsecondary Education Data System (referred 
     to in this section as the ``IPEDS'') survey, which shall--
       (A) report on the time and cost burden of completing the 
     IPEDS survey for four-year, two-year, and less than two-year 
     institutions of higher education;
       (B) present recommendations for reducing such burden; and
       (C) report on the feasibility of collecting additional data 
     from institutions for use in IPEDS, including information on 
     the percentage of enrolled undergraduate students who 
     graduate within two years (in the case of two-year 
     institutions), and four, five, and six years (in the case of 
     two- and four-year institutions), disaggregated by race and 
     ethnic background and by income categories;
       (2) not later than one year after the date of enactment of 
     this Act, submit to the authorizing committees a preliminary 
     report regarding the findings of the study described in 
     paragraph (1); and
       (3) not later than two years after the date of enactment of 
     this Act, submit to the authorizing committees a final report 
     regarding such findings.

     SEC. 1104. REPORT AND STUDY ON ARTICULATION AGREEMENTS.

       (a) Study Required.--The Secretary of Education shall 
     conduct a study to review the articulation agreements at 
     State-supported college and university systems, including 
     junior or community colleges, as well as those at other 
     institutions of higher education. Such study shall consider--
       (1) the extent to which States and institutions have 
     developed and implemented articulation agreements;
       (2) with respect to the articulation agreements developed--
       (A) the number and types of institutions participating in 
     articulation agreements;
       (B) the cost-savings to the participating institutions and 
     to the students;
       (C) what strategies are being employed, including common 
     course numbering, general education core curriculum, and 
     management systems;
       (D) the effective use of technologies to contain costs, 
     maintain quality of instruction, and inform students; and
       (E) a description of the students to whom the articulation 
     agreements are offered and, to the extent practicable, a 
     description of the students who take advantage of the 
     articulation agreements;
       (3) best practices and innovative strategies employed to 
     implement effective articulation agreements; and
       (4) barriers to the implementation of articulation 
     agreements, including technological and informational 
     barriers.
       (b) Report.--The Secretary of Education shall submit to the 
     authorizing committees an interim report on the study 
     required by subsection (a) not later than two years after the 
     date of enactment of this Act and a final report on such 
     study not later than January 1, 2013.

     SEC. 1105. REPORT ON PROPRIETARY INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) In General.--Not later than two years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall conduct an analysis of proprietary institutions 
     of higher education subject to section 487(a)(24) of the 
     Higher Education Act of 1965 (20 U.S.C. 1094(a)(24)) and 
     shall submit to the authorizing committees a report that 
     provides the results of the analysis.
       (b) Contents of Report.--The report shall provide--
       (1) the number of institutions subject to section 
     487(a)(24) of the Higher Education Act of 1965 (20 U.S.C. 
     1094(a)(24));
       (2) the number and percentage of such institutions each 
     year that do not comply with such section;
       (3) the number of such institutions that are in compliance 
     with such section at the time of submission of the report; 
     and
       (4) in the case of institutions that are in compliance with 
     such section at the time of submission of the report, 
     information on the extent to which such institutions' revenue 
     is derived from funds provided under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.), including 
     information on the number of such institutions that derive 
     not less than 85 percent of their revenues from funds 
     provided under such title.

     SEC. 1106. ANALYSIS OF FEDERAL REGULATIONS ON INSTITUTIONS OF 
                   HIGHER EDUCATION.

       The Secretary of Education shall enter into an agreement 
     with the National Research Council of the National Academy of 
     Sciences for the conduct of a study to ascertain the amount 
     and scope of all Federal regulations and reporting 
     requirements with which institutions of higher education must 
     comply. The study shall be completed not later than two years 
     after the date of enactment of this Act, and shall include 
     information describing--
       (1) by agency, the number of Federal regulations and 
     reporting requirements affecting institutions of higher 
     education;
       (2) by agency, the estimated time required and costs to 
     institutions of higher education (disaggregated by types of 
     institutions) to comply with the regulations and reporting 
     requirements described in paragraph (1); and
       (3) by agency, recommendations for consolidating, 
     streamlining, and eliminating redundant and burdensome 
     Federal regulations and reporting requirements affecting 
     institutions of higher education.

     SEC. 1107. INDEPENDENT EVALUATION OF DISTANCE EDUCATION 
                   PROGRAMS.

       (a) Independent Evaluation.--The Secretary of Education 
     shall enter into an agreement with the National Research 
     Council of the National Academy of Sciences to conduct a 
     statistically valid evaluation of the quality of distance 
     education programs, as compared to campus-based education 
     programs, at institutions of higher education. Such 
     evaluation shall include--
       (1) identification of the elements by which the quality of 
     distance education can be assessed, which may include 
     elements such as subject matter, interactivity, and student 
     outcomes;
       (2) identification of distance education program success, 
     with respect to student achievement, in relation to the 
     mission of the institution of higher education;
       (3) identification of the benefits and limitations of 
     distance education programs and campus-based programs for 
     different students (including classification of types of 
     students by age category) by assessing access, job placement 
     rates, graduation rates, and other factors related to 
     persistence, completion, and cost; and
       (4) identification and analysis of factors that may make 
     direct comparisons of distance education programs and campus-
     based education programs difficult.
       (b) Scope.--The National Research Council shall select for 
     participation in the evaluation under subsection (a) a 
     diverse group of institutions of higher education with 
     respect to size, mission, and geographic distribution.
       (c) Interim and Final Reports.--The contract under 
     subsection (a) shall require that the National Research 
     Council submit to the authorizing committees--
       (1) an interim report regarding the evaluation under 
     subsection (a) not later than June 30, 2009; and
       (2) a final report regarding such evaluation not later than 
     June 30, 2010.

     SEC. 1108. REVIEW OF COSTS AND BENEFITS OF ENVIRONMENTAL, 
                   HEALTH, AND SAFETY STANDARDS.

       (a) Review of Standards.--The Secretary of Education shall 
     enter into an agreement with the National Research Council of 
     the National Academy of Sciences to conduct a national study 
     that--

[[Page 17204]]

       (1) reviews, analyzes, and compares existing standards in 
     environmental, health, and safety areas, for the regulation 
     of--
       (A) industrial research and development facilities; and
       (B) research and teaching laboratories and facilities at 
     institutions of higher education; and
       (2) based upon the review in paragraph (1), develops 
     recommended frameworks for alternative regulatory standards, 
     if any, for research and teaching laboratories and facilities 
     at institutions of higher education that--
       (A) maintain the overall level of protection of the 
     environment, and of the health and safety of those using such 
     laboratories and facilities;
       (B) reflect the need to ensure consistent application of 
     Federal laws; and
       (C) take into account the educational and research 
     activities of institutions of higher education.
       (b) Report.--The National Research Council shall report to 
     Congress regarding the recommended frameworks for alternative 
     regulatory standards developed under subsection (a). Such 
     report shall contain recommendations for statutory or 
     regulatory changes needed to implement the different 
     standards described in subsection (a), and the projected 
     costs and benefits resulting from the adoption of such 
     standards.

     SEC. 1109. STUDY OF MINORITY MALE ACADEMIC ACHIEVEMENT.

       (a) Study Required.--The Secretary of Education shall carry 
     out the following:
       (1) Commission and ensure the conduct of a national study 
     of underrepresented minority males (particularly African 
     American, Hispanic American, Native American, Native 
     Hawaiian, and Alaska Native males) completing high school, 
     and entering and graduating from colleges and universities in 
     accordance with the following:
       (A) The data comprising the study shall focus primarily on 
     African American, Hispanic American, Native American, Native 
     Hawaiian, and Alaska Native males and shall utilize existing 
     data sources.
       (B) The study shall focus on high school completion and 
     preparation for college, success on the SAT and ACT, and 
     minority male access to college, including the financing of 
     college, and college persistence and graduation.
       (C) The implementation of the study shall be in four stages 
     based on the recommendations of the Commissioner for 
     Education Statistics.
       (2) Make specific recommendations to the authorizing 
     committees and States on new approaches to increase--
       (A) the number of minority males successfully preparing 
     themselves for college study;
       (B) the number of minority males graduating from high 
     school and entering college; and
       (C) the number of minority males graduating from college 
     and entering careers in which they are underrepresented.
       (b) Submission of the Report.--Not later than four years 
     after the date of enactment of this Act, the Secretary of 
     Education shall submit a report on the study required by 
     subsection (a)(1), together with the recommendations required 
     by subsection (a)(2), to the authorizing committees.

     SEC. 1110. STUDY ON BIAS IN STANDARDIZED TESTS.

       (a) Study.--The Secretary of Education shall enter into an 
     agreement with the Board on Testing and Assessment of the 
     National Academy of Sciences for the conduct of a study to 
     identify any race, ethnicity, or gender bias in the content 
     and construction of standardized tests that are used for 
     admission to institutions of higher education.
       (b) Report.--Not later than two years after the date of 
     enactment of this Act, the Secretary of Education shall issue 
     an interim report to the authorizing committees related to 
     the progress of the study under subsection (a).

     SEC. 1111. ENDOWMENT REPORT.

       (a) Analysis of Endowments.--The Comptroller General of the 
     United States shall conduct a study on the amounts, uses, and 
     public purposes of the endowments of institutions of higher 
     education. The study shall include information (disaggregated 
     by types of institutions) describing--
       (1) the average and range of--
       (A) the outstanding balance of such endowments; and
       (B) the growth of such endowments over the last 20 years;
       (2) the amount and percentage of endowment assets 
     distributed on an annual basis for spending on education;
       (3) the amount and percentage of endowment assets 
     distributed on an annual basis for financial aid or for the 
     purpose of reducing the costs of tuition, fees, textbooks, 
     and room and board; and
       (4) the extent to which the funds in such endowments are 
     restricted, and the restrictions placed upon such funds.
       (b) Submission of Report.--The Comptroller General of the 
     United States shall submit a report on the study required by 
     subsection (a) to the authorizing committees not later than 
     18 months after the date of enactment of this Act.

     SEC. 1112. STUDY OF CORRECTIONAL POSTSECONDARY EDUCATION.

       (a) Study Required.--The Secretary of Education, in 
     consultation with the Secretary of Labor and the Attorney 
     General, shall--
       (1) conduct a longitudinal study to assess the effects of 
     correctional postsecondary education that--
       (A) employs rigorous empirical methods that control for 
     self-selection bias;
       (B) measures a range of outcomes, including those related 
     to employment and earnings, recidivism, engaged citizenship, 
     impact on families of the incarcerated, and impact on the 
     culture of the correctional institution;
       (C) examines different delivery systems of postsecondary 
     education, such as on-site and distance learning; and
       (D) includes a projected cost-benefit analysis of the 
     Federal investment in terms of reduction of future offending, 
     reduction of future prison costs (construction and 
     operational), increased tax payments by formerly incarcerated 
     individuals, a reduction of welfare and other social service 
     costs for successful formerly incarcerated individuals, and 
     increased costs from the employment of formerly incarcerated 
     individuals; and
       (2) make specific recommendations to the authorizing 
     committees and the relevant State agencies responsible for 
     correctional education, such as the State superintendents of 
     education and State secretaries of corrections, on best 
     approaches to increase correctional education and its 
     effectiveness.
       (b) Submission of Reports.--Not later than three years 
     after the date of enactment of this Act, the Secretary of 
     Education shall submit an interim report on the progress of 
     the study required by subsection (a)(1) to the authorizing 
     committees. Not later than seven years after the date of 
     enactment of this Act, the Secretary of Education shall 
     submit a final report, together with the recommendations 
     required by subsection (a)(2), to the authorizing committees.

     SEC. 1113. STUDY OF AID TO LESS-THAN-HALF-TIME STUDENTS.

       (a) Study Required.--The Secretary shall conduct a study on 
     making and expanding the student aid available under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) 
     to less-than-half-time students. The Secretary shall submit a 
     report on the results of such study, including the 
     Secretary's recommendations, to the authorizing committees 
     not later than one year after the date of enactment of this 
     Act.
       (b) Subjects for Study.--The study required by this section 
     shall, at a minimum, examine the following:
       (1) The existing sources of Federal aid for less-than-half-
     time students seeking a college degree or certificate.
       (2) The demand for Federal aid for less-than-half-time 
     students and whether the demand is satisfied by existing 
     sources of Federal aid, taking into consideration not only 
     the number of less-than-half-time students currently seeking 
     a college degree or certificate, but also any increase in the 
     number of less-than-half-time students that may result from 
     an expansion of Federal aid for less-than-half-time students 
     seeking a college degree or certificate.
       (3) The potential costs to the Federal Government and the 
     potential benefits that could be received by students 
     resulting from expanding Federal aid for less-than-half-time 
     students seeking a college degree or certificate.
       (4) The barriers to expanding Federal aid for less-than-
     half-time students, including identifying--
       (A) statutory and regulatory barriers, such as student 
     eligibility, institutional eligibility, needs analysis, 
     program integrity, and award amounts; and
       (B) other factors that may limit participation in an 
     expanded Federal aid program for less-than-half-time 
     students.
       (c) Recommendations To Be Provided.--The Secretary's 
     recommendations under this section shall include 
     recommendations for designing a demonstration student loan 
     program tailored to less-than-half-time students. The 
     recommendations shall include any required statutory or 
     regulatory modifications, as well as proposed accountability 
     mechanisms to protect students, institutions, and the Federal 
     investment in higher education.
       (d) Definitions.--In this section--
       (1) the term ``Secretary'' means the Secretary of 
     Education; and
       (2) the term ``less-than-half-time student'' means a 
     student who is carrying less than one-half the normal full-
     time work load for the course of study that the student is 
     pursuing, as determined by the institution such student is 
     attending.

     SEC. 1114. STUDY ON REGIONAL SENSITIVITY IN THE NEEDS 
                   ANALYSIS FORMULA.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study to review the methodology that is used 
     to determine the expected family contribution under part F of 
     title IV of the Higher Education Act of 1965 (20 U.S.C. 
     1087kk et seq.).
       (b) Study Components.--The study conducted under subsection 
     (a) shall identify and evaluate the needs analysis formula 
     under part F of title IV of the Higher Education Act of 1965 
     (20 U.S.C. 1087kk et seq.) and examine the need for regional 
     sensitivity in need analysis. The study shall include--
       (1) the factors that are used to determine a student's 
     expected family contribution under part F of title IV of the 
     Higher Education Act of 1965;
       (2) the varying allowances that are made in calculating the 
     expected family contribution;
       (3) the effects of the income protection allowance on all 
     aid recipients; and
       (4) options for modifying the income protection allowance 
     to reflect the significant differences in the cost of living 
     in various parts of the United States.
       (c) Report.--Not later than one year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall report to the

[[Page 17205]]

     authorizing committees on the results of the study conducted 
     under this section.

     SEC. 1115. STUDY OF THE IMPACT OF STUDENT LOAN DEBT ON PUBLIC 
                   SERVICE.

       (a) Study.--The Secretary of Education, in consultation 
     with the Office of Management and Budget, is authorized to 
     coordinate with an organization with expertise in the field 
     of public service, such as the National Academy of Public 
     Administrators or the American Society for Public 
     Administration, to coordinate with interested parties to 
     conduct a study of how student loan debt levels impact the 
     decisions of graduates of postsecondary and graduate 
     education programs to enter into public service careers. Such 
     study shall include--
       (1) an assessment of the challenges to recruiting and 
     retaining well-qualified public servants, including the 
     impact of student loan debt;
       (2) an evaluation of existing Federal programs to recruit 
     and retain well-qualified public servants;
       (3) an evaluation of whether additional Federal programs 
     could increase the number of graduates of postsecondary and 
     graduate education programs who enter careers in public 
     service; and
       (4) recommendations for programs that could encourage new 
     graduates of postsecondary and graduate education programs to 
     enter public service careers.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary of Education, in 
     consultation with the Office of Management and Budget, shall 
     submit to the authorizing committees a report related to the 
     findings of the study conducted under subsection (a).

     SEC. 1116. STUDY ON TEACHING STUDENTS WITH READING 
                   DISABILITIES.

       (a) Independent Evaluation.--The Secretary of Education 
     shall enter into an agreement with the Center for Education 
     of the National Academies for a scientifically-based study of 
     the quality of teacher education programs--
       (1) to determine if teachers are adequately prepared to 
     meet the needs of students with reading and language 
     processing disabilities, including dyslexia; and
       (2) to determine the extent to which teacher education 
     programs are based on the essential components of reading 
     instruction and scientifically valid research.
       (b) Components.--The study conducted under subsection (a) 
     shall be designed to provide statistically reliable 
     information on--
       (1) the number, type of courses, and credit hours required 
     to meet the requirements of reading degree programs of 
     teacher education programs; and
       (2) the extent to which the content of the reading degree 
     programs are based on--
       (A) the essential components of reading instruction and 
     scientifically valid research, including phonemic awareness, 
     phonics, fluency, vocabulary, and comprehension; and
       (B) early intervention strategies based on scientific 
     evidence concerning challenges to the development of language 
     processing capacity, including dyslexia, and the extent to 
     which such strategies are effective in preventing reading 
     failure before it occurs.
       (c) Scope.--The Director of the Center for Education of the 
     National Academy of Sciences shall select for participation 
     in the study under subsection (a) a diverse group of 
     institutions of higher education with respect to size, 
     mission, and geographic distribution.
       (d) Interim and Final Reports.--The Director of the Center 
     for Education of the National Academy of Sciences shall 
     submit to the authorizing committees and the Secretary of 
     Education--
       (1) an interim report regarding the study under subsection 
     (a) not later than one year after the date the Center for 
     Education of the National Academies enters into an agreement 
     with the Secretary of Education under this section; and
       (2) a final report summarizing the findings, conclusions, 
     and recommendations of such study not later than two years 
     after the date the Center for Education of the National 
     Academies enters into such agreement.
       (e) Task Force.--
       (1) Establishment.--Upon submission of the final report 
     under subsection (d)(2), the Secretary of Education shall 
     establish a task force to make policy recommendations to the 
     Secretary regarding the findings of the report.
       (2) Membership.--The membership of the task force 
     established under paragraph (1) shall include chief State 
     school officers, State reading consultants, master teachers, 
     national reading experts, and researchers with expertise in 
     relevant fields.
       (3) Public hearings.--The task force established under 
     paragraph (1) shall hold public hearings to provide an 
     opportunity for public comment on the recommendations made 
     under paragraph (1).

     SEC. 1117. REPORT ON INCOME CONTINGENT REPAYMENT THROUGH THE 
                   INCOME TAX WITHHOLDING SYSTEM.

       (a) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary of Education and the 
     Secretary of the Treasury shall conduct a study to determine 
     the feasibility and benefits of developing a system through 
     which a borrower who is repaying a loan through the income 
     contingent repayment plan or the income-based repayment 
     program may make payments on the loan using the income tax 
     withholding system (referred to in this section as ``direct 
     IDEA loans''). The goal of this program would be to--
       (1) streamline the repayment process and provide greater 
     flexibility for borrowers electing to use the direct IDEA 
     loan;
       (2) reduce the number of loan defaults by borrowers; and
       (3) reduce the redundancy in reporting information 
     pertaining to income contingent repayment and income-based 
     repayment to the Department of Education, institutions, and 
     applicants.
       (b) Evaluations.--In conducting the study under subsection 
     (a), the Secretary of Education and the Secretary of the 
     Treasury shall evaluate--
       (1) the feasibility of implementing direct IDEA loans by 
     the Department of Education and the Department of the 
     Treasury;
       (2) any advantages or disadvantages of direct IDEA loans on 
     borrowers and taxpayers;
       (3) the program structure necessary to administer direct 
     IDEA loans; and
       (4) whether the repayment programs that implement income 
     contingent and income-based repayment collected through 
     revenue services, such as programs in England, Australia, and 
     New Zealand, could be effective in collecting loan payments 
     under the income contingent and income-based repayment 
     options in the United States.
       (c) Recommendations.--Not later than one year after the 
     date of enactment of this Act, the Secretary of Education and 
     the Secretary of the Treasury shall provide a report on the 
     study conducted under subsection (a) to Congress. The report 
     shall include recommendations based on the factors examined 
     in subsection (b) for implementing direct IDEA loans, 
     including the necessary statutory changes needed to implement 
     such repayment option.

     SEC. 1118. DEVELOPING ADDITIONAL MEASURES OF DEGREE 
                   COMPLETION.

       (a) In General.--The Secretary of Education, in 
     coordination with the Commissioner for Education Statistics 
     and after consultation with representatives from diverse 
     institutions of higher education, students, experts in the 
     field of higher education policy, State higher education 
     officials, and other stakeholders in the higher education 
     community, shall issue a report with recommendations to 
     Congress about alternatives ways to measure and report degree 
     or program completion rates for institutions of higher 
     education receiving funds under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.).
       (b) Measures to Take Into Consideration.--The alternative 
     measures described in subsection (a) shall consider--
       (1) the number of degrees awarded and the increase in 
     number of degrees awarded disaggregated by race, ethnicity, 
     gender, and income for all students who have earned a degree; 
     and
       (2) the increase in degrees awarded in high-need fields 
     such as science, technology, engineering, mathematics, 
     education, and nursing.

     SEC. 1119. STUDY ON THE FINANCIAL AND COMPLIANCE AUDITS OF 
                   THE FEDERAL STUDENT LOAN PROGRAM.

       (a) In General.--Not later than one year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall complete a study to examine all the financial 
     and compliance audits and reviews required or conducted as 
     part of the proper management of the Federal student loan 
     programs under parts B and D of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1071 et seq. and 1087a et 
     seq.), whether each such audit or review is required under a 
     law or is otherwise performed in order to evaluate a program.
       (b) Content of Study.--
       (1) Comparison of audits and reviews under parts b and d of 
     title iv.--As part of the study under subsection (a), the 
     Comptroller General of the United States shall compare the 
     audits and reviews of programs under parts B and D of title 
     IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et 
     seq. and 1087a et seq.) for purposes of--
       (A) determining whether such audits and reviews are 
     comparable among programs;
       (B) determining whether such audits and reviews result in a 
     level of protection of borrower interests and of Federal 
     fiscal interests that is comparable for each program; and
       (C) determining the extent to which the Department of 
     Education ensures timely submission of required financial and 
     compliance audits and reviews and compliance with statutory 
     and regulatory requirements.
       (2) Additional content of study.--The study under 
     subsection (a) shall--
       (A) provide a list of the financial and compliance audits 
     and reviews required or conducted as part of the proper 
     management of the Federal student loan programs under parts B 
     and D of title IV of the Higher Education Act of 1965 (20 
     U.S.C. 1071 et seq. and 1087a et seq.);
       (B) determine the frequency of each audit and review;
       (C) provide a list of the entities and activities that are 
     the subject of each audit and review, including institutions 
     of higher education, servicers, secondary markets, guaranty 
     agencies, the Department of Education and the contractors of 
     the Department of Education, and any other entities that are 
     required to participate in the audit or review;
       (D) determine the degree of individual borrower level 
     reconciliation required under Federal student loan programs 
     under such parts B and D of title IV;
       (E) make recommendations with respect to such audits and 
     reviews to ensure--
       (i) such audits and reviews are comparable among Federal 
     student loan programs under such parts B and D of title IV; 
     and

[[Page 17206]]

       (ii) a level of protection of borrower interests and of 
     Federal fiscal interests that is comparable for Federal 
     student loan programs under such parts B and D of title IV, 
     to the extent such comparability does not exist; and
       (F) assess the extent to which the Department of Education 
     makes appropriate use of such financial and compliance audits 
     and reviews in the Department's administration and oversight 
     of the Federal student loan programs under such parts B and D 
     of title IV.

     SEC. 1120. SUMMIT ON SUSTAINABILITY.

       Not later than September 30, 2010, the Secretary of 
     Education, in consultation with the Administrator of the 
     Environmental Protection Agency, shall convene a summit of 
     higher education experts working in the area of sustainable 
     operations and programs, representatives from agencies of the 
     Federal Government, and business and industry leaders to 
     focus on efforts of national distinction that--
       (1) encourage faculty, staff, and students at institutions 
     of higher education to establish administrative and academic 
     sustainability programs on campus;
       (2) enhance research by faculty and students at 
     institutions of higher education in sustainability practices 
     and innovations that assist and improve sustainability;
       (3) encourage institutions of higher education to work with 
     community partners from the business, government, and 
     nonprofit sectors to design and implement sustainability 
     programs for application in the community and workplace;
       (4) identify opportunities for partnerships involving 
     institutions of higher education and the Federal Government 
     to expand sustainable operations and academic programs 
     focused on environmental and economic sustainability; and
       (5) charge the summit participants or steering committee to 
     submit a set of recommendations for addressing sustainability 
     through institutions of higher education.

     SEC. 1121. NURSING SCHOOL CAPACITY.

       (a) Findings.--Congress finds the following:
       (1) Researchers in the field of public health have 
     identified the need for a national study to identify 
     constraints encountered by schools of nursing in graduating 
     the number of nurses sufficient to meet the health care needs 
     of the United States.
       (2) The shortage of qualified registered nurses has 
     adversely affected the health care system of the United 
     States.
       (3) Individual States have had varying degrees of success 
     with programs designed to increase the recruitment and 
     retention of nurses.
       (4) Schools of nursing have been unable to provide a 
     sufficient number of qualified graduates to meet the 
     workforce needs.
       (5) Many nurses are approaching the age of retirement, and 
     the problem worsens each year.
       (6) In 2004, an estimated 125,000 applications from 
     qualified applicants were rejected by schools of nursing, due 
     to a shortage of faculty and a lack of capacity for 
     additional students.
       (b) Study With Respect to Constraints With Respect to 
     Schools of Nursing.--
       (1) In general.--The Secretary shall enter into an 
     agreement with the Institute of Medicine of the National 
     Academy of Sciences to conduct a study for the purpose of--
       (A) identifying constraints encountered by schools of 
     nursing in admitting and graduating the number of registered 
     nurses necessary to ensure patient safety and meet the need 
     for quality assurance in the provision of health care; and
       (B) developing recommendations to alleviate the constraints 
     on a short-term and long-term basis.
       (2) Certain components.--The Secretary shall ensure that 
     the agreement under paragraph (1) provides that the study 
     under such paragraph will include information on the 
     following:
       (A) The trends in applications for attendance at schools of 
     nursing that are relevant to the purpose of the study, 
     including trends regarding applicants who are accepted for 
     enrollment and applicants who are not accepted, particularly 
     qualified applicants who are not accepted.
       (B) The number and demographic characteristics of entry-
     level and graduate students currently enrolled in schools of 
     nursing, the retention rates at the schools, and the number 
     of recent graduates from the schools, as compared to previous 
     years and to the projected need for registered nurses based 
     on two-year, five-year, and ten-year projections.
       (C) The number and demographic characteristics of nurses 
     who pursue graduate education in nursing and non-nursing 
     programs but do not pursue faculty positions in schools of 
     nursing, the reasons for not pursuing faculty positions, 
     including any regulatory barriers to choosing to pursue such 
     positions, and the effect of such decisions on the ability of 
     the schools to obtain adequate numbers of faculty members.
       (D) The extent to which--
       (i) entry-level graduates of the schools of nursing are 
     satisfied with their educational preparation, including their 
     participation in nurse externships, internships, and 
     residency programs; and
       (ii) such entry-level graduates are able to effectively 
     transition into the nursing workforce.
       (E) The satisfaction of nurse managers and administrators 
     with respect to the preparation and performance levels of 
     entry-level graduates from the schools after one year, three 
     years, and five years of practice, respectively.
       (F) The extent to which the current salary, benefit 
     structures, and characteristics of the workplace, including 
     the number of nurses who are presently serving in faculty 
     positions, influence the career path of nurses who have 
     pursued graduate education.
       (G) The extent to which the use of innovative technologies 
     for didactic and clinical nursing education might provide for 
     an increase in the ability of schools of nursing to train 
     qualified nurses.
       (3) Recommendations.--The Institute of Medicine may include 
     in the recommendations developed under paragraph (1)(B) 
     recommendations for legislative or administrative changes at 
     the Federal or State level, and measures that can be taken in 
     the private sector--
       (A) to facilitate the recruitment of students into the 
     nursing profession;
       (B) to facilitate the retention of nurses in the workplace; 
     and
       (C) to improve the resources and ability of the education 
     and health care systems to prepare a sufficient number of 
     qualified registered nurses.
       (4) Methodology of study.--
       (A) Scope.--The Secretary shall ensure that the agreement 
     under paragraph (1) provides that the study under such 
     paragraph will consider the perspectives of--
       (i) nurses and physicians in each of the various types of 
     inpatient, outpatient, and residential facilities in the 
     health care delivery system;
       (ii) faculty and administrators of schools of nursing;
       (iii) providers of health plans or health insurance; and
       (iv) consumers.
       (B) Consultation with relevant organization.--The Secretary 
     shall ensure that the agreement under paragraph (1) provides 
     that relevant agencies and organizations with expertise on 
     the nursing shortage will be consulted with respect to the 
     study under such paragraph, including the following:
       (i) The Agency for Healthcare Research and Quality.
       (ii) The American Academy of Nursing.
       (iii) The American Association of Colleges of Nursing.
       (iv) The American Nurses Association.
       (v) The American Organization of Nurse Executives.
       (vi) The National Institute of Nursing Research.
       (vii) The National League for Nursing.
       (viii) The National Organization for Associate Degree 
     Nursing.
       (ix) The National Student Nurses Association.
       (5) Report.--The Secretary shall ensure that the agreement 
     under paragraph (1) provides that, not later than 18 months 
     after the date of enactment of this section, the Institute of 
     Medicine shall submit a report providing the findings and 
     recommendations made in the study under this section to the 
     Secretary and the authorizing committees.
       (6) Other organization.--If the Institute of Medicine 
     declines to conduct the study under paragraph (1), the 
     Secretary may enter into an agreement with another 
     appropriate private entity to conduct the study.
       (c) Definitions.--In this section:
       (1) Terms in public health service act.--The terms 
     ``collegiate school of nursing'', ``associate degree school 
     of nursing'', and ``diploma school of nursing'' have the 
     meanings given to such terms in section 801 of the Public 
     Health Service Act (42 U.S.C. 296).
       (2) School of nursing.--The term ``school of nursing'' 
     means a collegiate school of nursing, an associate degree 
     school of nursing, or a diploma school of nursing in a State.
       (3) Secretary.--The term ``Secretary'' means the Secretary 
     of Education.

     SEC. 1122. STUDY AND REPORT ON NONINDIVIDUAL INFORMATION.

       (a) Definitions.--In this section:
       (1) Historically black college or university.--The term 
     ``historically Black college or university'' has the meaning 
     given the term ``part B institution'' in section 322 of the 
     Higher Education Act of 1965 (20 U.S.C. 1061).
       (2) Truth in lending act.--The terms ``covered educational 
     institution'' and ``private education loan'' have the 
     meanings given the terms in section 140 of the Truth in 
     Lending Act, as added by title X.
       (b) Study.--The Comptroller General of the United States 
     shall conduct a study--
       (1) on the impact on and benefits to borrowers of the 
     inclusion of nonindividual factors, including cohort default 
     rate, accreditation, and graduation rate at institutions of 
     higher education, used in the underwriting criteria to 
     determine the pricing of private education loans;
       (2) to examine whether and to what extent the inclusion of 
     such nonindividual factors--
       (A) increases access to private education loans for 
     borrowers who lack credit history or results in less 
     favorable rates for such borrowers; and
       (B) affects the types of private education loan products 
     and rates available at certain institutions of higher 
     education, including a comparison of such impact--
       (i) on private and public institutions; and
       (ii) on historically Black colleges and universities and 
     institutions of higher education; and
       (3) to assess the extent to which the use of such 
     nonindividual factors in underwriting may have a disparate 
     impact on the pricing of private education loans, based on 
     gender, race, income level, and covered educational 
     institution.
       (c) Report.--Not later than one year after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit a report to the Committee on Banking, 
     Housing, and Urban Affairs and the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives on the results of the study required by this 
     section.

[[Page 17207]]



     SEC. 1123. FEASIBILITY STUDY FOR STUDENT LOAN CLEARINGHOUSE.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall conduct a study of the feasibility of developing 
     a national student loan clearinghouse on the website of the 
     Department of Education that would provide for one or more of 
     the following:
       (1) A registry of real-time information on Federal student 
     loans (including loans under parts B and D of title IV of the 
     Higher Education Act of 1965 (20 U.S.C. 1071 et seq. and 
     1087a et seq.) and private education loans (as defined in 
     section 140 of the Truth in Lending Act)), for both 
     undergraduate and graduate students, and parents of students, 
     for use by prospective borrowers or any person desiring 
     information regarding available interest rates, fees, and 
     other terms from lenders.
       (2) A mechanism whereby prospective borrowers could be 
     matched with lenders that offer highly competitive products 
     and loan servicing quality, including any procedures and 
     safeguards necessary to minimize potentially adverse effects 
     of multiple inquiries into participating borrowers' credit 
     histories recorded by consumer reporting agencies.
       (3) Options concerning the establishment and ongoing 
     maintenance of such a system, including whether such a system 
     should be operated by one or more entities, and methods to 
     finance such a system at no or minimal cost to consumers and 
     the Government.
       (4) Other features that could help prospective borrowers 
     make informed decisions in selecting lenders from whom to 
     obtain Federal and private education loans.
       (b) Consultation.--In conducting the study under subsection 
     (a), the Comptroller General of the United States shall 
     consult with--
       (1) the Secretary of Education;
       (2) the Federal Trade Commission;
       (3) representatives of student loan borrowers;
       (4) representatives from institutions of higher education, 
     including financial aid administrators, registrars, business 
     officers, and student affairs officials;
       (5) Federal and private educational lenders (as defined in 
     section 140 of the Truth in Lending Act), loan servicers, and 
     guaranty agencies; and
       (6) other appropriate entities with relevant experience.
       (c) Report.--Not later than two years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to the authorizing committees a report on 
     the study conducted under subsection (a).

     SEC. 1124. STUDY ON DEPARTMENT OF EDUCATION OVERSIGHT OF 
                   INCENTIVE COMPENSATION BAN.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall--
       (1) conduct a study of efforts by the Secretary of 
     Education to enforce the provisions of section 487(a)(20) of 
     the Higher Education Act of 1965 (20 U.S.C. 1094(a)(20)); and
       (2) submit to the authorizing committees a report that 
     provides the results of such study.
       (b) Content of Report.--The report submitted under 
     subsection (a) shall include--
       (1) an analysis of the nature, extent, and effectiveness of 
     the Secretary of Education's activities to enforce the 
     provisions of section 487(a)(20) of the Higher Education Act 
     of 1965 (20 U.S.C. 1094(a)(20));
       (2) the number of institutions of higher education for 
     which investigations were initiated by the Secretary for 
     potential violations of such section since 1998;
       (3) in cases where violations of such section by 
     institutions of higher education were substantiated by the 
     Secretary--
       (A) the names of such institutions;
       (B) the nature of the violations; and
       (C) the penalty, if any, imposed by the Secretary for such 
     violations;
       (4) an analysis of the impact of the ``safe harbor'' 
     regulations under section 668.14(b)(22)(ii)(A) through (L) of 
     title 34, Code of Federal Regulations, promulgated under such 
     section 487(a)(20), on the number and nature of cases 
     examined by the Secretary for potential violations of such 
     section 487(a)(20), including whether the number of cases 
     examined by the Secretary has increased or decreased since 
     such regulations went into effect;
       (5) information on the extent to which the Secretary has 
     considered efforts by States to examine unethical or unlawful 
     student recruitment or admissions practices by institutions 
     of higher education, including practices that violate the 
     provisions of such section 487(a)(20); and
       (6) information on the extent to which the Secretary 
     reviews publicly-available documents, such as filings to the 
     Securities and Exchange Commission, to monitor the compliance 
     of institutions of higher education with the provisions of 
     such section 487(a)(20).

     SEC. 1125. DEFINITION OF AUTHORIZING COMMITTEES.

       For purposes of this title, the term ``authorizing 
     committees'' has the meaning given such term in section 103 
     of the Higher Education Act of 1965, as amended by this Act.
       And the Senate agreed to the same.
     George Miller,
     Ruben Hinojosa,
     John F. Tierney,
     David Wu,
     Timothy Bishop,
     Jason Altmire,
     John Yarmuth,
     Joe Courtney,
     Robert E. Andrews,
     Bobby Scott,
     Susan A. Davis,
     Danny K. Davis,
     Mazie K. Hirono,
     Bart Gordon,
     Brian Baird,
     John Conyers, Jr.,
     Maxine Waters,
     Buck McKeon,
     Ric Keller,
     Thomas Petri,
     Cathy McMorris Rodgers,
     Mike Castle,
     Mark Souder,
     Vernon J. Ehlers,
     Judy Biggert,
     Louie Gohmert,
                                Managers on the Part of the House.

     Ted Kennedy,
     Christopher Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     Jack Reed,
     Hillary Rodham Clinton,
     Barack Obama,
     Bernard Sanders,
     Sherrod Brown,
     Michael B. Enzi,
     Judd Gregg,
     Richard Burr,
     Lisa Murkowski,
     Orrin G. Hatch,
     Pat Roberts,
     Wayne Allard,
                               Managers on the Part of the Senate.

       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4137), submit the 
     following joint statement to the House and the Senate in 
     explanation of the effect of the action agreed upon by the 
     managers and recommended in the accompanying conference 
     report:
     Section 1. Short title; table of contents
       The Senate amendment and the House bill have different 
     short Titles for the Act. The Senate amendment titles the Act 
     the ``Higher Education Amendments of 2007.'' The House bill 
     titles the Act the ``College Opportunity and Affordability 
     Act of 2007.'' The Senate amendment lists ``references'' and 
     ``general effective date'' as separate Sections in the table 
     of contents. The House bill combines ``references'' and 
     ``general effective date'' in one Section.
       The Senate recedes with an amendment to title the 
     conference report the ``Higher Education Opportunity Act.''
     Section 2. References
       The Senate amendment and the House bill provide that 
     references are to the Higher Education Act of 1965 (HEA) 
     unless otherwise expressly provided.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 3. General Effective Date
       The Senate amendment and the House bill provide that the 
     amendments in this Act are effective on the date of 
     enactment, unless otherwise specified.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.

                      TITLE I--GENERAL PROVISIONS

     Section 101. General definition of institution of higher 
         education
       The House bill amends the definition of an institution of 
     higher education to explicitly include homeschooled students 
     meeting the requirements of Section 484(d)(3).
       The Senate amendment and the House bill modify the 
     definition of an institution of higher education to include 
     an additional type of educational degree. The Senate 
     amendment and the House bill allow public or nonprofit 
     private institutions of higher education to enroll students 
     who are dually or concurrently enrolled in the institution 
     and a secondary school as regular students.
       The Senate recedes.
     Section 102. Definition of institution of higher education 
         for purposes of Title IV programs
       The Senate amendment and the House bill retain the 
     provision requiring proprietary institutions of higher 
     education to receive at least ten percent of their revenues 
     from non-Title IV sources. The requirement is moved from the 
     section in Title I that defines institutions of higher 
     education to the section in Title IV that contains program 
     participation agreement requirements. The Senate amendment 
     and the House bill allow proprietary institutions and 
     postsecondary vocational institutions to admit students who 
     are dually or concurrently enrolled in the institution and a 
     secondary school as regular students.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an additional provision to allow 
     for proprietary institutions to offer bachelor's degrees in 
     liberal arts. In adding this provision, the Conferees do not 
     intend to affect the eligibility of current programs or alter 
     the method used by the Secretary in determining

[[Page 17208]]

     ``recognized occupations'' as required by 102(b)(1)(A)(i). 
     The Conferees intend for the Secretary to continue to refer 
     to the latest edition of the Dictionary of Occupational 
     Titles published by the Department of Labor's Bureau of Labor 
     Statistics in making this determination. Additionally, the 
     Conferees understand that some programs offered by an 
     institution may fit both the definitions in (A)(i) and (ii). 
     The Conferees do not intend the terms ``gainful employment in 
     a recognized occupation'' and ``liberal arts'' to be mutually 
     exclusive.
       The House bill adds nursing schools to the types of 
     institutions of higher education located outside the United 
     States that may be for-profit (proprietary) institutions of 
     higher education and authorized to certify unsubsidized 
     Stafford Loans and PLUS Loans to eligible students.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment clarifies that graduate medical 
     schools located outside of the United States which, under 
     current law, are eligible to participate in Title IV, Part B 
     loan programs because they have a clinical training program 
     that was approved by a state as of January 1, 1992, must have 
     continuously operated a state approved clinical training 
     program in not less than one state that has approved the 
     program.
       The House bill clarifies that graduate medical schools 
     located outside of the United States which, under current 
     law, are eligible to participate in Title IV, Part B because 
     they have a clinical training program that was approved by a 
     state as of January 1, 1992, must continue to operate a state 
     approved clinical training program in not less than one state 
     that has approved the program.
       The Senate recedes.
       The House bill adds a specific set of criteria that nursing 
     schools located outside of the United States are required to 
     meet in order to qualify to certify unsubsidized Stafford 
     Loans and PLUS Loans for their students. Such nursing schools 
     must have agreements with hospitals or nursing schools 
     located in the United States that include provisions for 
     students to complete their clinical training at those 
     hospitals or schools. They must also agree to reimburse the 
     Secretary for the costs of any loan defaults to the extent 
     that the institution's cohort default rate exceeds five 
     percent.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to specify that to be 
     eligible, nursing schools located outside of the United 
     States must have agreements with hospitals or accredited 
     schools of nursing located in the United States that require 
     the nursing students to complete training and receive a 
     degree from the partner accredited institution of higher 
     education and to permit the eligible nursing schools to 
     certify subsidized Stafford loans in addition to unsubsidized 
     Stafford and PLUS loans. Also, such international nursing 
     schools must agree to reimburse the Secretary for the cost of 
     any loan defaults for students included in the school's 
     cohort default rate the previous year. In addition, at least 
     seventy-five percent of the students or graduates from such 
     nursing schools must receive a passing score on the National 
     Council Licensure Exam for Registered Nurses in the year 
     prior to the year the school is eligible to certify Part B 
     loans.
       The House bill adds a third set of criteria that graduate 
     medical schools located outside of the United States can meet 
     in order to be eligible to offer unsubsidized Stafford Loans 
     and PLUS Loans to their students. The House bill permits such 
     eligibility for graduate medical schools outside the United 
     States that have a clinical training program that was 
     approved by the U.S. state prior to January 1, 2008, and 
     agree to reimburse the Secretary for the costs of any loan 
     defaults included in the institution's cohort default rate 
     during the previous fiscal year.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the 
     advisory panel of medical experts to submit a report to the 
     Secretary and the authorizing committees within one year 
     after date of enactment of this Act that will provide 
     recommendations for alternate eligibility criteria for 
     participation in the loan programs by foreign medical schools 
     that do not meet the current statutory criteria. 180 days 
     after the submission of the report, the Secretary may issue 
     proposed regulations that would establish alternate criteria 
     for the eligibility of graduate medical schools located 
     outside of the United States. The Secretary may issue final 
     regulations no earlier than one year after the issuance of 
     the proposed regulations.
       The Senate amendment increases the pass rate percentage 
     required for foreign medical schools to be eligible to 
     certify student loan eligibility from sixty percent to 
     seventy-five percent effective July 1, 2010.
       The House bill contains no similar provision.
       The House recedes.
     Section 103. Additional definitions
       The Senate amendment and the House bill include a 
     definition of ``authorizing committees.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill contain definitions 
     of ``critical foreign language'' that reference an August 2, 
     1985 Federal Register notice. The House definition includes 
     ``Except as otherwise provided'' at the beginning of the 
     definition. The House bill authorizes the Secretary of 
     Education to update the list of critical languages.
       The Senate recedes.
       The House bill adds a definition for a ``high-need 
     school.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to move the definition 
     to Title II and modify the definition.
       The House bill includes a definition for ``universal 
     design.''
       The Senate amendment contains no similar definition.
       The Senate recedes with an amendment adopting the 
     definition of the term as found in Section 3 of the Assistive 
     Technology Act of 1998.
       The House bill includes a definition for ``universal design 
     for learning.''
       The Senate amendment contains no similar definition.
       The Senate recedes with an amendment to define ``universal 
     design for learning'' as follows: a scientifically valid 
     framework for guiding educational practice that provides 
     flexibility in the ways information is presented, in the ways 
     students respond or demonstrate knowledge and skills, and in 
     the ways students are engaged; and, reduces barriers in 
     instruction, provides appropriate accommodations, supports, 
     and challenges, and maintains high achievement expectations 
     for all students, including students with disabilities and 
     students who are limited English proficient.
     Section 104. Protection of student speech and association 
         rights
       The Senate amendment expands on the current sense of 
     Congress on the protection of student speech and association 
     rights in several ways, including by specifying that the 
     diversity of institutions of higher education and educational 
     missions is a strength of higher education in the United 
     States; institutions of higher education have different 
     missions and should design their academic programs in 
     accordance with their educational goals; colleges should 
     facilitate the free and open exchange of ideas; students 
     should not be intimidated, harassed, discouraged from 
     speaking out, or discriminated against; and students should 
     be treated equally and fairly. The Senate amendment modifies 
     current law to require that any sanctions on students be 
     imposed ``objectively and fairly.''
       The House bill contains no similar provisions.
       The House recedes.
     Section 105. Treatment of territories and territorial student 
         assistance
       The House bill changes the Title of Section 113. The House 
     bill deletes Subsection (b), which expired September 30, 
     2004. That provision addressed the eligibility of 
     institutions of higher education in the Freely Associated 
     States for TRIO programs.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
     Section 106. National Advisory Committee on Institutional 
         Quality and Integrity
       The Senate amendment replaces the existing National 
     Advisory Committee on Institutional Quality and Integrity 
     (NACIQI) and establishes a new Committee with a new name--the 
     Accreditation and Institutional Quality and Integrity 
     Committee. The Senate amendment provides that the Committee 
     is established ``to assess the process of accreditation and 
     the institutional eligibility and certification'' of 
     institutions of higher education.
       The House bill contains the same provision except it does 
     not rename the Committee.
       The Senate recedes.
       The Senate amendment specifies that NACIQI will have 
     fifteen Committee members with five members appointed by the 
     Secretary, five members appointed by the Speaker of the House 
     (based on recommendations from the Majority and Minority 
     leaders in the House), and five members appointed by the 
     President pro tempore of the Senate (based on recommendations 
     from the Majority and Minority Leaders in the Senate).
       The House bill specifies that the NACIQI will have eighteen 
     members with six members appointed by the Secretary, six 
     members appointed by the Speaker of the House (three members 
     based on recommendations from the House Majority Leader and 
     three members based on recommendations from the House 
     Minority Leader) and six members appointed by the President 
     pro tempore of the Senate (three members based on 
     recommendations from the Majority Leader in the Senate and 
     three members based on recommendations from the Minority 
     Leader in the Senate).
       The Senate recedes.
       The Senate amendment and the House bill establish 
     qualifications for NACIQI members.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill establish six year 
     terms and a process for

[[Page 17209]]

     filling vacancies for NACIQI members. The Senate amendment 
     and the House bill require vacancies to be filled in the same 
     manner as the original appointment and not later than ninety 
     days after the vacancy occurs. If the vacancy occurs in a 
     position to be filled by the Secretary, the Secretary must 
     post a notice in the Federal Register not later than thirty 
     days after the vacancy.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment creates initial terms for members, 
     staggering the expiration of the terms of appointment. 
     Members appointed by the Secretary will serve two-year terms.
       The House bill creates initial terms for members, 
     staggering the expiration of the terms of appointment. 
     Members appointed by the Secretary will serve three year 
     terms.
       The Senate recedes.
       The Senate amendment and the House bill establish the 
     process for selecting a chairperson. The Senate amendment and 
     the House bill retain all of the current functions of NACIQI, 
     except for developing standards and criteria for specific 
     categories of institutions of higher education for which no 
     accrediting agency exists.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill adds the requirement that the NACIQI take 
     into consideration complaints, and the resolution of such 
     complaints by the Accreditation Ombudsman, when advising the 
     Secretary about accrediting agencies of associations.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill retain the 
     requirement that the NACIQI meet at least twice a year and 
     that the Secretary publish the date of each meeting in the 
     Federal Register. The Chairperson is required to establish 
     the agenda, which must include an opportunity for public 
     comment, and provide it to NACIQI members upon notification 
     of the meeting. The Senate amendment and the House bill drop 
     the requirement that the meeting date and agenda be approved 
     by the Secretary.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment requires that the Secretary's designee 
     be invited to all meetings. The designee may facilitate the 
     flow of information between the NACIQI and the Secretary, but 
     has no authority over the agenda.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike the language 
     clarifying that the designee may facilitate the flow of 
     information between NACIQI and the Secretary, but has no 
     authority over the agenda.
       The Conferees recognize that the Federal Advisory Committee 
     Act requires that the Secretary appoint a designated federal 
     official to be present at meetings of NACIQI.
       The Senate amendment and the House bill require the 
     provisions of the Federal Advisory Committee Act, except 
     Section 14, apply to the NACIQI. Section 14 addresses the 
     termination, renewal, and continuation of federal advisory 
     Committees.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill prohibits the NACIQI from basing a 
     recommendation for the denial of an application for 
     recognition by an accrediting agency on any reason other than 
     those included in Section 496.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill require the 
     Secretary to publish a notice in the Federal Register that 
     contains information about NACIQI members, and to solicit 
     nominations for NACIQI positions to be filled by the 
     Secretary. The Senate amendment and the House bill require 
     the NACIQI to provide an annual report to the Secretary that 
     includes a detailed summary of the activities of the NACIQI, 
     general information about the meetings, a list of NACIQI 
     members and their contact information, and a list of NACIQI 
     functions. Both the Senate amendment and the House bill 
     sunset the NACIQI on September 30, 2012.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an amendment to remove the contact 
     information for NACIQI members from the information to be 
     provided in the annual report and to change the termination 
     date of NACIQI to September 30, 2014.
       The Senate amendment terminates the current NACIQI thirty 
     days after enactment.
       The House bill contains no similar provision.
       The House recedes with an amendment to end the terms of 
     current NACIQI members on the date of enactment of this Act.
       The House bill establishes the new committee on January 1, 
     2009.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 107. Drug and alcohol abuse prevention
       The Senate amendment and the House bill require an 
     institution of higher education, in its biennial review, to 
     determine the number of drug and alcohol-related incidents 
     and fatalities that have occurred on the institution's 
     property or as part of the institution's activities and that 
     are reported to that institution of higher education.
       The Senate and the House recede with an amendment to 
     replace ``incidents'' with ``violations,'' amend the language 
     to require that violations be reported to ``campus 
     officials'' (as opposed to institutions), and replace 
     ``property'' with ``campus.''
       By requiring institutions to report drug and alcohol-
     related violations and fatalities, the Conferees intend to 
     ensure that the information reported by institutions of 
     higher education cover incidents that are located on the 
     campus of the institution of higher education (as that term 
     is defined by the Clery Act) and that are reported to 
     officials at the institution of higher education. Officials 
     shall include campus security and school administrators, and 
     may include other employees at the institution of higher 
     education if they are required to report or enforce 
     institutional policies.
       The House bill extends the authorization of appropriations 
     for such sums as necessary for the Alcohol and Drug Abuse 
     prevention grants to fiscal year 2009 and the five succeeding 
     fiscal years.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill eliminates the National Recognition Awards.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 108. Prior rights and obligations
       The Senate amendment changes the authorization period to 
     fiscal year 2008 and each succeeding fiscal year. The House 
     bill changes the authorization period to fiscal year 2009 and 
     each succeeding fiscal year.
       The Senate recedes.
     Section 109. Diploma mills
       The House bill included, in title VIII, provisions that 
     defined diploma mills, required the Secretary to create a 
     database of accrediting agencies and associations, eligible 
     institutions, and credible foreign-degree granting 
     institutions, required the Secretary of Education to develop 
     a diploma mill task force and required the task force to 
     submit a report to Congress on a plan to prevent diploma 
     mills from being created.
       The Senate amendment had no such provisions.
       The Senate recedes with an amendment to move the definition 
     of a diploma mill to Title I, require the Secretary to 
     maintain information and resources on the Department's 
     website to assist students and families in understanding what 
     a diploma mill is and how to avoid a diploma mill and strike 
     the other provisions.
     Section 110. Improved information concerning the federal 
         student financial aid website
       The Senate amendment and the House bill require the 
     Secretary to ensure that the homepage of the U.S. Department 
     of Education's website includes a link to student financial 
     aid information. The House bill further specifies that the 
     link is to the federal student financial aid website at the 
     Department of Education.
       The Senate recedes.
       The House bill authorizes the Secretary to use 
     administrative funds for operations and expenses to promote 
     the availability of the federal student financial aid 
     website.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment requires the Secretary no later than 
     180 days after the date of enactment of this Act to contract 
     with an independent organization with expertise in the 
     development of consumer-friendly websites to develop 
     improvements to the usefulness and accessibility of 
     information provided by the Department of Education on 
     college financial planning and student financial aid on its 
     website.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment requires the Secretary, not later than 
     one year after the date of enactment of the Act, to implement 
     the improvements to the college financial planning and 
     student financial aid website developed by the contractor. 
     The Senate amendment requires the Secretary to publicize the 
     availability of information on the college financial planning 
     and student financial aid website.
       The House bill contains no similar provisions.
       The House recedes with an amendment to remove the deadline 
     and the references to the outside contractor, to specify that 
     the Secretary shall continue to improve the usefulness and 
     accessibility of information provided by the Department and 
     to require that the access to additional sources of 
     information be coordinated through the Department's database.
       The House bill requires the Secretary to publish 
     information on the federal student financial aid website 
     about student financial assistance available from other 
     federal departments and agencies. The House bill requires 
     each federal department and agency to respond promptly to 
     requests from the

[[Page 17210]]

     Secretary for information about student financial aid 
     programs available through the department or agency. The 
     House bill defines ``non-departmental student financial 
     assistance program.''
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to require the 
     Secretary to request information from other departments and 
     agencies and to make such information easily accessible and 
     searchable through the federal student financial aid website 
     and to include links or other appropriate access to a 
     national database on student financial assistance for the 
     study of science, technology, engineering and math, and to 
     information about all federal and state student financial 
     assistance available to eligible members and veterans of the 
     Armed Forces and their families. To identify the information 
     useful for military members and veterans, the Secretary is 
     required to coordinate with the Secretary of Defense and the 
     Secretary of Veterans Affairs.
       The House bill establishes ``maintenance of effort'' (MOE) 
     requirements that, after July 1, 2008, states must meet to 
     receive funding under the House-proposed ``Grants for Access 
     and Persistence'' (GAP) program, which replaces the existing 
     Special Leveraging Educational Assistance Partnership 
     program. If a state does not meet the MOE requirements, the 
     Secretary shall withhold funds that would be available to the 
     state for the GAP program until the state has made 
     significant efforts to meet those requirements. The House 
     bill requires the Secretary to conduct a study of cost 
     containment methods used by institutions of higher education, 
     to disseminate information from the study, to publicly 
     recognize institutions of higher education doing an effective 
     job of cost containment, and to work with institutions of 
     higher education to implement cost containment methods.
       The Senate amendment contains no similar provisions.
       The House recedes.
     Section 111. Transparency in college tuition for consumers
       The Senate amendment and the House bill set forth how ``net 
     price'' is to be calculated under the transparency in college 
     tuition section. The Senate definition focuses on tuition and 
     fees ``paid by'' a full-time undergraduate student, while the 
     House definition focuses on tuition and fees ``actually 
     charged'' to a full-time undergraduate student.
       The Senate and the House recede with an amendment to define 
     ``net price'' as the average yearly price actually charged to 
     a full-time, first-time undergraduate student receiving 
     student aid, calculated by subtracting average grant aid from 
     federal, state and institutional sources from the cost of 
     attendance and to add a definition of cost of attendance for 
     this section that means the average annual cost of tuition 
     and fees, room and board, books and supplies, and 
     transportation for first time, full-time degree or 
     certificate seeking undergraduate students enrolled at an 
     institution, as such data are currently reported by 
     institutions to the Secretary and made available on the 
     College Navigator website.
       The Conferees recognize that a number of colleges and 
     universities offer programs that reduce or eliminate student 
     debt or otherwise significantly reduce the cost of college 
     for students and that such programs shall be considered grant 
     aid from institutional sources for the purposes of 
     calculating net price under this Section. The Conferees also 
     recognize that some public two-year institutions calculate 
     tuition and fees for residents of the community college 
     district using an in-district tuition and fee schedule. The 
     Conferees intend for in-district tuition and fee rates to be 
     used in calculating the net price, tuition and fees and cost 
     of attendance for those community colleges in the same manner 
     as in-state tuition and fees and in-state students are used 
     in calculating the net price, tuition and fees and cost of 
     attendance for four-year public institutions.
       The Senate amendment and the House bill require the 
     development of education price indices that reflect the 
     annual change in tuition and fees for undergraduate students 
     by institutional category and for all institutions of higher 
     education overall.
       The Senate and the House recede.
       The Senate amendment and the House bill require the 
     Secretary to report annually information on institutional 
     tuition and fees. The House bill specifically requires that 
     this information be made available on the College Navigator 
     website.
       The Senate recedes.
       The Senate amendment requires the Secretary to develop and 
     make publicly available a national list and a list for each 
     state, referred to as ``Higher Education Price Increase Watch 
     Lists.'' The lists rank each institution of higher education 
     that has an increase in tuition and fees in excess of the 
     percentage increase in its applicable higher education price 
     index based on the change in the tuition and fees over the 
     preceding two years. The House bill requires the Secretary to 
     publish three annual lists to be created at the national 
     level by institutional category: the five percent of 
     institutions of higher education with the highest tuition and 
     fees; the five percent of institutions of higher education 
     with the lowest tuition and fees; and the five percent of 
     institutions of higher education with the highest percentage 
     increase in tuition and fees over the most recent three-year 
     period.
       The Senate and the House recede with an amendment to 
     require the Secretary to publish six lists, by institutional 
     category: the five percent of institutions of higher 
     education that have the highest tuition and fees for the most 
     recent year; the five percent of institutions of higher 
     education that have the highest net price for the most recent 
     year; the five percent of institutions of higher education 
     that have the largest percentage increase in tuition and fees 
     over the most recent three years; the five percent of 
     institutions of higher education that have the largest 
     percentage increase in net price over the most recent three 
     years; the ten percent of institutions of higher education 
     that have the lowest tuition and fees for the most recent 
     year; and the ten percent of institutions of higher education 
     that have the lowest net price for the most recent year.
       The Conferees recognize that many institutions of higher 
     education have developed innovative tuition practices to 
     restrain costs and increase the predictability of college 
     expenses for students and parents. The Conferees commend the 
     use of these innovative approaches, including the use of 
     guaranteed tuition plans, and do not intend to subject 
     institutions that use them to a reporting standard that 
     portrays the cost of attendance in an inaccurate or 
     misleading way. Therefore, in calculating the affordability 
     and transparency lists in subsections (b)(3) and (b)(4) of 
     Section 132, the Conferees direct the Secretary to develop a 
     method for accurately representing the percentage change in 
     tuition and fees and net price for students at institutions 
     offering guaranteed tuition plans. However, the Conferees do 
     not intend to otherwise change the applicability of these 
     subsections to such institutions, or exempt such institutions 
     from the requirements of subsection (d), where applicable.
       For reporting purposes, the Senate amendment requires 
     reporting by nine institutional categories. The House bill 
     requires use of the nine institutional categories in the 
     Senate amendment and an additional category that includes 
     institutions of higher education overall.
       The House recedes.
       The House bill requires any institution of higher education 
     that is in the five percent of institutions of higher 
     education by sector, based on the percentage increase in 
     tuition and fees over a three year period, to provide the 
     Secretary with a description of the factors contributing to 
     the increase in tuition and fees. These institutions of 
     higher education are also required to establish a quality 
     efficiency task force to review their operations, analyze 
     their operating costs in comparison with costs at other 
     institutions of higher education in the same category, 
     identify and evaluate areas for cost reduction, develop 
     annual benchmarks for costs reduction in the identified 
     areas, and submit a report to the Secretary. If an 
     institution of higher education fails to meet the benchmarks, 
     it must also provide the Secretary a detailed explanation for 
     why the benchmarks were not met. The House bill requires the 
     Secretary to compile the information submitted by 
     institutions of higher education, submit an annual report to 
     the authorizing Committees, and publish the annual report on 
     the College Navigator website.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to require 
     institutions of higher education that appear on either or 
     both lists of institutions of higher education with the 
     greatest percentage increases in net price or in tuition and 
     fees to submit to the Secretary a description of the major 
     areas in the institution's budget with the greatest cost 
     increases, an explanation of cost increases, and a 
     description of the steps the institution of higher education 
     will take to reduce costs in those major areas. If the cost 
     increases were not in the exclusive control of the 
     institution of higher education, the institution must include 
     a description of the other entities that participate in the 
     determination. Institutions of higher education that are 
     required to submit such report and that appear on the same 
     list for two consecutive years are required to submit a 
     follow-up report describing the progress on the steps 
     identified in the report submitted in the previous year.
       The House bill exempts from the cost increase list and the 
     reporting requirements those institutions of higher education 
     whose tuition and fees are in the lowest quartile for 
     institutions of higher education in their sector, and 
     institutions of higher education whose total dollar increase 
     in tuition and fees was less than $500 over the three year 
     period.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to provide one 
     exemption for institutions of higher education whose total 
     dollar increase in tuition and fees or in net price was less 
     than $600 over the three year period and, beginning in 2014 
     and every three years thereafter, to increase such dollar 
     amount based on increases in the consumer price index.
       The Senate amendment and the House bill require the 
     Secretary to report annually on

[[Page 17211]]

     state higher education appropriations. The House bill 
     specifically requires the Secretary to publish this 
     information on the College Navigator website. The Senate 
     amendment requires the Secretary to report on the percentage 
     change in the state appropriations per enrolled student in a 
     public institution of higher education compared with the 
     percentage change in tuition and fees for each public 
     institution of higher education for each of the previous five 
     years, and the total amount of grant aid provided by the 
     state to students attending an institution of higher 
     education in the state. The House bill requires a similar 
     comparison but bases it on full-time equivalent (FTE) 
     students.
       The Senate and the House recede with an amendment to base 
     the five year percentage change in state spending and in 
     tuition and fees on FTE students at public institutions of 
     higher education in the state and to require one comparison 
     chart for all public institutions of higher education in the 
     state, rather than for each school separately. The Secretary 
     is also required to report the percentage change in need-
     based and merit-based aid provided by each state to full-time 
     students.
       The Senate amendment and the House bill require the 
     Secretary, in consultation with institutions of higher 
     education, to develop a net price calculator. The Senate 
     amendment permits institutions of higher education to use a 
     net price calculator developed by the Secretary or to develop 
     their own. The House bill requires institutions of higher 
     education to use the single net price calculator developed by 
     the Secretary. Both the Senate and the House require 
     institutions of higher education to adopt and use a net price 
     calculator not later than three years after the date of 
     enactment of the Act.
       The House recedes with an amendment to permit institutions 
     of higher education to use their own calculator as long as it 
     includes at least the same data elements as the one developed 
     by the Secretary. A net price estimate must be accompanied by 
     a disclaimer explaining that such estimate does not represent 
     a final determination or actual award of financial 
     assistance; shall not be binding on the Secretary, the 
     institution of higher education, or the state; and that the 
     estimate may change. Students must complete the Free 
     Application for Federal Student Aid (FAFSA) in order to be 
     eligible for, and receive, an actual financial aid award, 
     which may include Federal grants, loans, or work-study 
     assistance under Title IV.
       The Senate amendment and the House bill include new 
     requirements related to data collected from institutions of 
     higher education. The Senate amendment requires the Secretary 
     to develop a model document, known as the University and 
     College Accountability Network (U-CAN), that institutions of 
     higher education can use voluntarily to report basic 
     information about the institution of higher education that 
     would then be posted on the appropriate Department of 
     Education website. The House bill would require the Secretary 
     to post the data elements on the College Navigator website.
       The Senate recedes.
       The data elements required to be reported by institutions 
     of higher education in the Senate amendment and the House 
     bill are similar. The House bill requires institutions to 
     report information on: the number of undergraduate students 
     who have registered with the relevant institutional office as 
     students with disabilities; graduation rates by income 
     category; the number of full-time, part-time, and adjunct 
     faculty, and the number of graduate teaching and research 
     assistants with instructional responsibilities; average 
     annual grant data by income category; and the institution's 
     cohort default rate.
       The Senate recedes with an amendment to require 
     institutions of higher education to report: the percentage of 
     undergraduate students who have formally registered as 
     students with disabilities, unless the percentage is below 
     three percent, in which case the institution may report 
     ``three percent or less''; percentage of first-time, full-
     time students who receive degrees or certificates within the 
     normal time for completion, and within 150 percent and 200 
     percent of the normal time; the number of full-time and part-
     time faculty and graduate teaching assistants with primarily 
     instructional responsibilities; the average annual grant 
     amount for a first-time, full-time undergraduate student who 
     receives financial aid and is enrolled at the institution of 
     higher education; and the institution's cohort default rate. 
     The Secretary is required to provide, on each institution's 
     College Navigator webpage, a link to the appropriate section 
     of the Bureau of Labor Statistics website that provides 
     regional data on starting salaries in all major occupations.
       The Senate amendment requires data to be published for the 
     preceding five academic years, while the House bill requires 
     data to be published for the preceding three academic years. 
     The Senate amendment requires net price data for one year, 
     while the House bill requires data for the three preceding 
     academic years.
       The Senate recedes.
       The Senate amendment requires the Secretary to consult with 
     current and prospective college students and their families 
     and institutions of higher education in making improvements 
     to the College Navigator website.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment includes an authorization of 
     appropriations for carrying out this subsection.
       The House bill contains no similar provision.
       The Senate recedes.
       The Conferees encourage the Secretary to continue to 
     improve the College Navigator to maximize its usefulness for 
     searching through data in a manner that is beneficial to the 
     public. The Conferees also recognize that the Secretary 
     currently collects information for the College Navigator for 
     institutions of higher education that do not participate in 
     Title IV programs and encourage the Secretary to continue to 
     collect information from such institutions that choose to 
     provide it.
       The House bill requires the Secretary to include a higher 
     education pricing summary page on the College Navigator 
     website that can be sorted and searched by users and contains 
     various data elements related to price.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include the net 
     price on the summary page for the three most recent available 
     academic years and, beginning July 1, 2010, the average net 
     price by income category for students receiving federal 
     student financial aid.
       The Conferees note that the Secretary currently collects 
     information on instructional spending and the Conferees do 
     not intend to limit the Secretary in publishing this 
     information on the pricing summary page.
       The House bill establishes income categories for reporting 
     purposes and requires the Secretary to update the income 
     categories annually based on inflation. The House bill 
     includes an exemption from reporting institutional aid data 
     by income category at institutions of higher education where 
     income data is not collected from recipients of institutional 
     aid.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to change the income 
     categories to: $0-30,000; $30,001-48,000; $48,001-75,000; 
     $75,001-110,000; and $110,001 and up, and to require 
     reporting only for students receiving federal student 
     financial aid under Title IV.
       The House bill includes a provision in title IV that would 
     require all institutions that receive title IV aid to provide 
     every incoming student with a multi-year tuition schedule or 
     a single-year tuition schedule with non-binding estimates of 
     tuition levels, after financial aid is awarded, for the 
     following several years. The Secretary has the authority to 
     waive this requirement if the institution can demonstrate 
     that it has suffered economic distress, dramatic reduction of 
     state or federal aid or other circumstances that the 
     Secretary would deem valid.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to move the multi-year 
     tuition concept to Title I and to require the Secretary to 
     develop a multi-year tuition calculator to provide estimates 
     of annual tuition and fees and the total amount of tuition 
     prospective students may pay for the duration of their 
     program of study, based on the average annual percentage 
     change in the institution's tuition and fees for the three 
     most recent academic years. The calculator shall be developed 
     in such a manner to allow for the comparison of estimates 
     across multiple institutions of higher education. Such 
     calculation must include a separate disclaimer that the 
     calculation is an estimate only and shall not be binding on 
     the Secretary of Education, the institution of higher 
     education, or the state and may change due to state 
     appropriations or other factors and that the student must 
     complete the FAFSA in order to be eligible for aid. In the 
     case of an institution that offers a multi-year tuition 
     guarantee program, the calculator must allow a prospective 
     student to enter estimates of tuition and fees based on the 
     provisions of the guarantee program.
       The House bill requires a survey of student aid recipients 
     to be conducted at least once every four years. The House 
     bill also requires the survey to be conduced on a state-by-
     state basis. The House bill expands on the current goals of 
     the survey by requiring the survey to: consider the impact of 
     education loan debt on students' career choices; describe the 
     role of the price of postsecondary education in students' 
     decisions about which institution of higher education to 
     attend; and describe how the cost of textbooks and other 
     instructional materials affect the cost of postsecondary 
     education for students. The House bill retains current law 
     with respect to the survey design, except that it clarifies 
     that the survey shall (rather than ``should'') be designed 
     and administered in consultation with Congress and the 
     postsecondary education community. The House bill requires 
     the survey results to be made available in printed and 
     electronic form.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The House bill authorizes the Secretary to issue 
     regulations to carry out the provisions in this Section.

[[Page 17212]]

       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill presents six findings related to higher 
     education and the availability of consumer information about 
     institutions of higher education. The House bill includes a 
     sense of Congress stating that institutions of higher 
     education should participate in efforts to provide concise 
     and accessible online information to prospective students and 
     their families.
       The Senate amendment contains no similar provisions.
       The House recedes.
     Section 112. Textbook information
       The House bill includes provisions that provide more 
     information on the cost of textbooks designed to ensure that 
     students have better and timelier access to course materials.
       The House bill requires publishers to provide faculty 
     members with price information, copyright dates of all 
     previous editions in the preceding ten years, substantial 
     content revisions made between the current and previous 
     editions, and to disclose whether the textbook or 
     supplemental materials are available in any other format.
       The House bill requires publishers that sell a college 
     textbook and supplemental material as a single product to 
     offer the college textbook and each supplement as a separate 
     item.
       The House bill requires institutions of higher education to 
     publish in course schedules for pre-registration and 
     registration purposes, to the ``maximum extent practicable,'' 
     the International Standard Book Number (ISBN) and the retail 
     price of course materials.
       The House bill requires an institution of higher education 
     to provide upon request to any college bookstore its course 
     schedule and materials required or recommended for each 
     course.
       The House bill provides that nothing about these programs 
     supersedes an institution's autonomy with respect to the 
     selection of course materials.
       The House bill's textbook information program is effective 
     as of July 1, 2008.
       The Senate amendment contains no similar provisions.
       The Senate recedes with amendments to the provisions to 
     clarify the definitions of an integrated textbook and 
     supplemental materials, and clarify that the provisions apply 
     only to institutions receiving federal financial assistance. 
     The amendments require a publisher to provide to faculty or 
     others selecting textbooks, the wholesale price, and if 
     available, the retail price at which books are made available 
     to the public, respectively, and specify the copyright dates 
     of the three previous editions need to be provided. The 
     amendments also specify that an institution shall, to the 
     maximum extent practicable, make the required textbook 
     information, including ISBN information, available on its 
     Internet course schedule in a manner of the institution's 
     choosing. Further, an institution shall publish a link to 
     this information in its written course schedule. The 
     amendments also encourage institutions to disseminate 
     information to students about institutional programs that 
     would help students save money on textbooks, such as rental 
     programs or buy-back programs, prohibit the Secretary of 
     Education from promulgating regulations on the section, and 
     require the Government Accountability Office to conduct a 
     review of the implementation of these provisions.
       The Conferees intend that the provisions in this section 
     decrease the cost of textbooks for students in higher 
     education by ensuring that faculty, students, and bookstores 
     all have sufficient, relevant, and timely information to make 
     informed purchasing decisions. The information provided as a 
     result of these provisions should be provided in a consumer-
     friendly manner and should be easily accessible. The 
     Conferees further recognize the shared goals of identifying 
     ways to decrease the burden of textbook costs on students by 
     all parties, and the innovation of institutions, publishers, 
     and bookstores in working toward this goal.
       The Conferees recognize the cost savings to students of 
     used textbooks. Further the Conferees do not intend the 
     definition of ``integrated textbooks'' to discourage faculty 
     and students from using such textbooks in their courses. 
     Textbooks without explicit third-party contract limitations 
     should not be considered as integrated if an identical used 
     textbook or used supplemental material is commonly available 
     to a student, thus making the materials fully usable for its 
     intended purpose and meeting the requirements of a course of 
     instruction at an institution of higher education.
       It is the intention of the Conferees that institutions of 
     higher education that do not offer Internet course schedules 
     are not required to create such schedules for the purposes of 
     satisfying the requirements of this section; and that 
     institutions my satisfy the requirements by providing a link 
     to another appropriate website that satisfies the 
     requirements of the paragraph, provided that such link is 
     clearly and prominently located on the institution's Internet 
     course schedule.
       Further, the Conferees recognize the changing use of 
     technology in the textbook marketplace. The provisions 
     require institutions, to the maximum extent practicable, to 
     disclose the ISBN information for each required textbook. As 
     ISBN information changes, or is replaced by another standard 
     identification system, the Conferees urge institutions to 
     provide students with the most up-to-date and accurate 
     information.
       The Conferees understand that while regulations are 
     prohibited in the context of implementation, enforcement and 
     oversight, the Secretary of Education may need to develop 
     non-regulatory guidance. The Conferees recognize that the 
     Secretary has a variety of means by which to publicize these 
     provisions, including publication in government materials, 
     and should provide for the broad dissemination of such 
     information through communication with institutions of higher 
     education and other relevant stakeholders.
     Section 113. Database of student information prohibited
       The Senate amendment and the House bill prohibit the 
     development, implementation, or maintenance of a federal 
     database of personally identifiable information.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment exempts from the prohibition systems 
     needed for the operation of programs authorized by Titles II, 
     IV, or VII.
       The House bill exempts from the prohibition systems needed 
     for the operation of programs authorized by Titles II, IV, or 
     VII and any data required to be collected by the Secretary 
     under this Act.
       The House recedes.
       The Senate amendment and the House bill provide that 
     nothing in this Act prohibits a state or consortium of states 
     from developing, implementing, or maintaining state developed 
     databases to track students over time.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Conferees support the prohibition on the creation of a 
     national database for the purpose of student tracking. This 
     prohibition should not be construed to prohibit the Secretary 
     from performing surveys that are necessary to monitor the 
     operation of the student aid programs, in particular the 
     National Postsecondary Student Aid Survey which is a valuable 
     source of information on how students and families finance 
     their postsecondary education.
     Section 114. In-state tuition rates for armed forces members, 
         spouses, and dependent children
       The House bill prohibits public institutions of higher 
     education from charging the dependents of members of the 
     Armed Forces on active duty for more than thirty days, whose 
     domicile or permanent duty station is in the same state, more 
     than in-state tuition rates. The House bill requires public 
     institutions of higher education to allow members of the 
     Armed Forces or their dependents who are receiving an in-
     state tuition rate to continue to pay that rate while 
     continuously enrolled at the institution of higher education 
     even if there is a subsequent change in the permanent duty 
     station of the member to a location outside the state.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to specify that the 
     prohibitions apply to states that receive funds under the HEA 
     and to strike the definition of state.
     Section 115. State Higher Education Information System Pilot 
         program
       The Senate amendment and the House bill establish a State 
     Higher Education Information System Pilot program to assist 
     up to five states in developing state-level postsecondary 
     data systems.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment authorizes such sums as may be 
     necessary beginning in fiscal year 2008 and each of the five 
     succeeding fiscal years.
       The House bill authorizes such sums as may be necessary for 
     fiscal year 2009 and each of the four succeeding fiscal 
     years.
       The House recedes with an amendment to replace fiscal year 
     2008 with fiscal year 2009.
     Section 116. State commitment to affordable college education
       The House amendment establishes ``maintenance of effort'' 
     (MOE) requirements that, after July 1, 2008, states must meet 
     to receive funding under the House-proposed ``Grants for 
     Access and Persistence'' (GAP) program, which replaces the 
     existing Special Leveraging Educational Assistance 
     Partnership program. State funding provided for public 
     institutions (for non-capital and non-research and 
     development expenses or costs) must not be less than the 
     average amount provided during the five most recent preceding 
     academic years. States must also provide funding for student 
     financial aid for students attending private institutions in 
     the state in an amount not less than the average amount 
     provided during the 5 most recent preceding academic years. 
     If a state does not meet the MOE requirements, the Secretary 
     shall withhold funds that would be available to the state for 
     the GAP program until the state has made significant efforts 
     to meet those requirements. States may receive a

[[Page 17213]]

     waiver of the requirements for exceptional or uncontrollable 
     circumstances.
       The Senate bill contains no similar provisions.
       The Senate recedes with an amendment to require states to 
     meet the MOE in order to receive an initial grant under the 
     new College Access Challenge Grant program instead of the 
     existing GAP program and to accommodate states with biennial 
     appropriation cycles.
       The Conferees understand states currently face increased 
     deficits and challenging state budgets. It is not the intent 
     of the conferees to compound state economic challenges, but 
     rather to secure a strong federal-state partnership to 
     increase access to higher education for middle- and low-
     income families. The conferees acknowledge that the Secretary 
     has authority to provide a waiver for states meeting the 
     threshold of ``exceptional or uncontrollable circumstances'' 
     which include sudden and unforseen declines in a state's 
     budget.
     Section 117. Performance-Based Organization for the delivery 
         of federal student financial assistance
       The Senate amendment changes the description of the 
     functions of the Performance-Based Organization (PBO) at the 
     Department of Education from ``operational'' to 
     ``administrative and oversight.'' The Senate amendment makes 
     the PBO responsible for the administration of federal student 
     financial assistance programs. The Senate amendment also 
     directs the PBO to utilize procurement systems that 
     streamline operations, improve internal controls, and enhance 
     management.
       The House bill contains no similar provisions.
       The House recedes with an amendment to delete the 
     requirement that the Chief Operating Officer of the PBO 
     provide an annual briefing to the authorizing Committees on 
     the steps the PBO has taken and is taking to ensure that 
     lenders are providing the information required under Title 
     IV; but instead, requires a representative of the Secretary 
     to provide a briefing at any time upon request of the 
     authorizing Committees on the steps the Department has taken 
     to ensure the integrity of the student loan programs, 
     including lender and guaranty agency compliance with the 
     requirements of Title IV.
     Section 118. Procurement flexibility
       The Senate amendment amends Section 142 by modifying the 
     Chief Operating Officer duties, including the fee for service 
     arrangements, and replacing the term ``sole source'' with the 
     term ``single-source basis.''
       The House bill contains no similar provision.
       The House recedes.
     Section 119. Certification regarding the use of certain 
         federal funds
       The Senate amendment specifies that federal funds received 
     by an institution of higher education or other postsecondary 
     educational institution may not be used to pay any person for 
     influencing or attempting to influence an officer or employee 
     of any agency, a Member of Congress, or an employee of a 
     Member of Congress in awarding a federal contract, making a 
     federal grant or loan, entering into any federal cooperative 
     agreement, or in extending, continuing, renewing, amending, 
     or modifying any federal contract, grant, loan, or 
     cooperative agreement. No federal student aid funding may be 
     used to hire a lobbyist or to secure an earmark. Each 
     institution of higher education or other postsecondary 
     educational institution receiving federal funding must 
     annually certify that these requirements have been met.
       The House bill contains no such provision.
       The House recedes with an amendment to clarify that the 
     prohibition relates to funds received by an institution under 
     the Higher Education Act.
       The Conferees wish to clarify that this Section is not 
     intended to prohibit an employee of an institution of higher 
     education from receiving federal funds for participating in a 
     peer review process for a Federal program.
     Section 120. Institution and lender reporting and disclosure 
         requirements
       Both the Senate amendment and the House bill add a new Part 
     E to Title I, instituting lender and institutional 
     requirements relating to education loans.
       The Senate and House recede with amendments to Part E as 
     follows:

 Part E--Lender & Institution Requirements Relating to Education Loans

     Section 151. Definitions
       The Senate amendment defines ``cost of attendance'' as it 
     is defined under Title IV, Section 472.
       The House bill defines ``postsecondary educational 
     expenses'' as defined under Title IV, Section 472.
       Both the Senate and the House recede.
       The Senate amendment defines ``covered institution'' as any 
     educational institution that offers a postsecondary 
     educational degree, certificate, or program of study 
     (including an institution defined in Section 102) and 
     receives any federal funding or assistance. The definition 
     includes any employee or agent of the institution of higher 
     education, or an organization or entity affiliated with, or 
     directly or indirectly controlled by the institution of 
     higher education.
       The House bill defines ``covered institution'' as any 
     educational institution that offers a postsecondary 
     educational degree, certificate, or program of study 
     (including an institution defined in Section 102) and 
     receives any federal funding or assistance. The definition 
     includes any employee or authorized agent of the institution 
     of higher education, including an alumni association, booster 
     club, or other organization directly or indirectly authorized 
     by the institution of higher education.
       The Senate and the House recede with an amendment to define 
     ``covered institution'' as any institution of higher 
     education as such term is defined in Section 102, that 
     receives any federal funding or assistance. Definitions of 
     ``agent'' and ``institution-affiliated organization'' are 
     also added. An ``agent'' means an officer or employee of a 
     covered institution or an institution--affiliated 
     organization. An ``institution-affiliated organization'' 
     means any organization that is directly or indirectly related 
     to a covered institution and is engaged in the practice of 
     recommending, promoting, or endorsing education loans for 
     students attending such covered institution or the families 
     of such students, except that the term does not include any 
     lender with respect to any education loans secured, made or 
     extended by such lender.
       The Senate amendment defines ``educational loan'' as any 
     loan made, insured, or guaranteed under Title IV.
       The House bill defines ``educational loan'' as including 
     any loan made, insured, or guaranteed under Title IV; or any 
     educational loan that is not made, insured, or guaranteed 
     under Title IV, but that is issued by a lender expressly for 
     postsecondary educational expenses to a student, or the 
     parent of the student, regardless of whether the loan 
     involves enrollment certification by the educational 
     institution that the student attends..
       The Senate recedes with an amendment to replace 
     ``educational loan'' with ``education loan'' and to specify 
     that loans made, insured, or guaranteed under Title IV refer 
     to loans made under Parts B and D of Title IV.
       The Senate amendment defines ``educational loan 
     arrangement'' as an arrangement or an agreement between a 
     lender (of loans made under Title IV, and as defined under 
     Section 151(5)) and a covered institution, under which a 
     lender provides or issues (Title IV) educational loans to 
     students attending a covered institution, or their parents; 
     and which is related to the covered institution recommending, 
     promoting, endorsing, or using the (Title IV) educational 
     loans of the lender, and which involves the lender paying a 
     fee or providing other material benefit to the institution of 
     higher education or groups of students attending the 
     institution of higher education.
       The House bill defines ``preferred lender arrangement'' as 
     an arrangement or agreement between a lender and a covered 
     institution, under which a lender provides or issues 
     educational loans to students attending a covered 
     institution, or their parents; and which is related to the 
     covered institution recommending, promoting, or endorsing, 
     educational loan products of the lender; and which does not 
     include arrangements with respect to the Direct Loan program 
     loans, Perkins Loans, or Federal Family Education Loan (FFEL) 
     parent PLUS Loans made in accordance with Section 499(b).
       The Senate recedes with an amendment to change ``parents'' 
     to ``families'' of students, strike the reference to Perkins 
     Loans, and to include in the definition arrangements or 
     agreements between a lender and an institution-affiliated 
     organization.
       The Senate amendment defines ``lender'' as a financial 
     institution participating in the FFEL, and the Secretary for 
     the Direct Loan program loans; and in each case, the term 
     includes any individual, group, or entity acting on behalf of 
     the lender with respect to a Title IV education loan.
       The House bill defines ``lender'' as meaning a 
     ``creditor;'' except that it does not include an issuer of 
     credit secured by a dwelling or under an open end credit 
     plan, and includes an agent of a lender.
       Both the Senate and the House recede with an amendment to 
     define the terms ``eligible lender'' and ``lender.'' The term 
     ``eligible lender'' has the meaning given such term in 
     section 435(d). The term ``lender'' means an eligible lender, 
     in the case of a loan made, insured, or guaranteed under Part 
     B of Title IV; the Secretary, in the case of any loan issued 
     or provided to a student under Part D of Title IV; and, a 
     private educational lender as defined in Section 140(a) of 
     the Truth in Lending Act, in the case of a private education 
     loan.
       The Senate amendment defines ``officer'' as including a 
     director or trustee of an institution of higher education.
       The House bill defines ``officer'' as including a director 
     or trustee of a covered institution if the individual is 
     treated as an employee of the covered institution (see 
     Section151(1)).
       The Senate recedes with an amendment to include in the 
     definition of ``officer'' a director or trustee of an 
     institution-affiliated organization if such individual is 
     treated as an employee.

[[Page 17214]]

       The House bill defines ``private educational loan.''
       The Senate amendment contains no similar provision.
       The House recedes with an amendment to use the term 
     ``private education loan'' in place of ``private educational 
     loan'' and to refer to the definition used in Section 140(a) 
     of the Truth in Lending Act.
     Section 152. Responsibilities of covered institutions, 
         institution-affiliated organizations and lenders
       The Senate amendment institutes requirements for lenders 
     and institutions of higher education participating in 
     ``educational loan arrangements.'' The Senate provision is 
     applicable to arrangements between lenders of Title IV 
     educational loans and covered institutions of higher 
     education.
       The House bill institutes requirements for lenders and 
     institutions of higher education participating in ``preferred 
     lender arrangements.'' The House provision is applicable to 
     arrangements between lenders (i.e., creditors) and covered 
     institutions of higher education. The House provision applies 
     to lenders of loans made, insured, or guaranteed under Title 
     IV, and private educational loans, except that it does not 
     apply to arrangements with respect to Direct loans, Perkins 
     Loans, or parent PLUS loans made in accordance with Section 
     499(b).
       The Senate recedes with an amendment to make no reference 
     to Perkins Loans.
       The House amendment prohibits a covered institution that 
     enters into a preferred lender arrangement regarding private 
     educational loans from agreeing to allow the lender to use 
     the institution's name or likeness in the marketing of 
     private educational loans to students attending the 
     institution in any way that implies the institution's 
     endorsement of the private educational loans.
       The Senate bill contains no similar provision.
       The Senate recedes with an amendment to extend the 
     prohibition to institution-affiliated organizations of 
     covered institutions.
       The Senate amendment requires a covered institution that 
     enters into an educational lender arrangement to disclose the 
     name of the lender in documentation related to the loan.
       The House bill contains no similar provision.
       The House recedes with an amendment to require covered 
     institutions, and institution-affiliated organizations of 
     such institutions, that enter into a preferred lender 
     arrangement with a lender regarding private education loans 
     to ensure that the name of the lender is displayed in all 
     information and documentation related to the loan.
       The House bill requires FFEL lenders that participate in 
     one or more ``preferred lender arrangements'' to annually 
     certify compliance with requirements of the Act and to report 
     on and attest to such compliance in its annual compliance 
     audit.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that provides: ``If an 
     audit is required pursuant to Section 428(b)(1)(U)(iii), the 
     lender's compliance with requirements of this section shall 
     be reported on and attested to annually by the auditor of 
     such the lender.''
       The Senate amendment requires lenders participating in 
     educational loan arrangements, prior to providing a Title IV 
     education loan to a student, to disclose to the student 
     certain information about the terms and conditions of such 
     loans. These disclosures must include: interest rates of 
     educational loans and sample educational loan costs, by type 
     of loan. For each type of educational loan offered, the 
     disclosure must include information on: types of repayment 
     plans available; availability of and conditions for no-
     penalty, early repayment; capitalization of interest; terms 
     and conditions of deferment and forbearance; all available 
     repayment benefits and the percentage of all borrowers who 
     qualify for such benefits; the percent of borrowers who 
     received such benefits in the preceding academic year; 
     collection practices in cases of default; all fees, including 
     late payment penalties, a borrower may be charged; and, such 
     other information as the Secretary may require.
       The House bill contains no similar provision.
       The House recedes with an amendment to incorporate the 
     disclosure requirements in the Senate amendment into the 
     disclosures required under Subsections (a),(c) and (d) of 
     Section 433. The revised disclosure requirements are 
     applicable to loans made, insured or guaranteed under Parts B 
     or D of Title IV, other than consolidation loans. Lenders of 
     private education loans must comply with the disclosures 
     required under Title X of this Act.
       The Senate amendment requires lenders participating in 
     education loan arrangements to annually report to the 
     Secretary any reasonable expenses paid or given to an 
     individual employed in the financial aid office of a covered 
     institution, or who has responsibilities with respect to 
     educational loans or other types of financial aid. The 
     lenders must report the following: the amount of each 
     specific instance of reimbursement; the name of each 
     individual to whom a reimbursement was made; the date of the 
     activity being reimbursed; and, a brief description of the 
     activity being reimbursed. The Secretary shall annually 
     compile such information into a report and transmit the 
     report to the House Education and Labor Committee and the 
     Senate Committee on Health, Education, Labor and Pensions.
       The House bill contains no similar provision.
       The House recedes with an amendment to require each FFEL 
     lender, on an annual basis, to report to the Secretary any 
     reasonable expenses paid or given under the exception clauses 
     in 435(d)(5)(D), 487(e)(7) and 487(e)(3)(B) to any agent of a 
     covered institution who is employed in the financial aid 
     office of a covered institution, or who otherwise has 
     responsibilities with respect to education loans or other 
     financial aid activities of the institution of higher 
     education, and any similar expenses paid or provided to any 
     agent of an institution-affiliated organization of a covered 
     institution who is involved in the practice of recommending, 
     promoting, or endorsing education loans. The report shall 
     include: the amount for each specific instance in which the 
     lender provided such reimbursement; the name of the agent for 
     whom expenses were paid or to whom the reimbursement was 
     made; the dates of the activity for which the expenses were 
     paid or the reimbursement was made; and, a brief description 
     of the activity for which the expenses were paid of the 
     reimbursement was made. The Secretary shall summarize the 
     information contained in the lender reports and provide a 
     report annually to the authorizing Committees.
       The House bill requires the Secretary to display on the 
     Department of Education website, and to provide to colleges 
     and universities, specified information to be used for 
     counseling and consumer information for prospective 
     borrowers. The Secretary shall make such information widely 
     known and shall promote its availability and use by 
     prospective and current students and borrowers, and those 
     entering repayment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify the types 
     of information that must be reported and to change the 
     placement of the provision.
     Section 153. Loan information to be disclosed and model 
         disclosure form for covered institutions, institution-
         affiliated organizations, and lenders participating in 
         preferred lender arrangements
       The Senate amendment and the House bill require the 
     Secretary, not later than 180 days after enactment, to 
     prepare a report on the adequacy of the information provided 
     to students and their parents about education loans, after 
     consulting with students, representatives of covered 
     institutions of higher education (including financial aid 
     administrators, registrars, and business officers), lenders, 
     loan servicers, and guaranty agencies.
       Both the Senate and the House recede with an amendment to 
     strike the report requirement and instead to require the 
     Secretary, not later than eighteen months after enactment, to 
     coordinate with the Board of Governors of the Federal 
     Reserve, and consult with students, their families, 
     representatives of covered institutions (including financial 
     aid administrators, admission officers, and business 
     officers), representatives of institution-affiliated 
     organizations, high school guidance counselors, lenders, loan 
     servicers, and guaranty agencies, and to determine the 
     minimum information that lenders, covered institutions, and 
     institution-affiliated organizations participating in 
     preferred lender arrangements must make available regarding 
     education loans that are offered to students and their 
     families. Both the Senate and House recede also with an 
     amendment to change references from ``parents'' to 
     ``families'' throughout the Section.
       The Senate amendment and the House bill require the 
     Secretary to develop a model format (Senate) or model 
     disclosure form (House) to be used by lenders participating 
     in ``preferred lender arrangements'' (House) or ``educational 
     loan arrangements'' (Senate) for providing information to 
     institutions of higher education and the Secretary, for each 
     type of education loan provided by lenders to students 
     attending a covered institution, and about why the covered 
     institution believes the terms and conditions of each type of 
     loan provided pursuant to the educational loan arrangement 
     are beneficial to borrowers. The House bill requires the 
     Secretary to prescribe this model format by regulation.
       The Senate amendment requires the model format to provide 
     certain information on the terms and conditions of loans, 
     disaggregated by loan type, including interest rates and 
     terms and conditions of loans for the forthcoming academic 
     year; any benefits that are contingent on borrower repayment 
     behavior; the average amount borrowed from the lender by 
     students enrolled in the institution, by loan type, for the 
     preceding academic year; the average interest rate on loans 
     borrowed by such students for the preceding academic year; 
     and the amount of interest that may be required to be paid 
     according to a standard repayment period on the average 
     amount borrowed from the lender by such students, on such 
     type of loan, for the preceding academic year.

[[Page 17215]]

       The House bill also requires the model disclosure form to 
     provide information on the terms and conditions of loans, 
     disaggregated by loan type, including the interest rate or 
     range of rates, and whether rates are fixed or variable; the 
     frequency and amount of interest rate adjustments; co-
     borrower requirements; any fees associated with the loan; 
     available repayment terms; the opportunity for deferment or 
     forbearance, including whether in-school deferment is 
     available; any additional terms and conditions of the loan, 
     including any benefits contingent on repayment behavior of 
     the borrower; the annual percentage rate for such loans, 
     determined in the manner required under Section 107 of the 
     Truth in Lending Act (15 U.S.C. 1606); an example of the 
     total cost of the educational loan over the life of the loan; 
     consequences of default, including any limitations on loan 
     discharge in bankruptcy; contact information for the lender; 
     and, philanthropic contributions by the lender to the covered 
     institution. The House bill requires this information to be 
     provided for opportunity pool loans and requires private 
     lenders, as well as FFEL lenders, to use the model format. 
     The House bill additionally requires the model format to be 
     easy for students and parents to understand; to be easily 
     usable by lenders, institution of higher education, guaranty 
     agencies, and servicers; to provide relevant information on 
     federal and private educational loans; to be based on the 
     report's findings, and to be developed in consultation with 
     specified entities.
       Both the Senate and the House recede with an amendment to 
     require the Secretary to consider the merits of requiring 
     covered institutions and institution-affiliated organizations 
     that have preferred lender arrangements to provide 
     prospective borrowers and families the following information 
     for each type of loan made, insured or guaranteed under Title 
     IV: the interest rate and terms and conditions of the loan 
     for the next award year, including loan forgiveness and 
     deferment; information on any charges such as origination and 
     federal default fees that are payable on the loans, and 
     whether those charges will be paid by the lender or the 
     borrower; the yearly and cumulative maximum amounts that may 
     be borrowed; the average amount borrowed from the lender by 
     undergraduate and graduate students who were enrolled and who 
     graduated the preceding year; the amount the borrower may pay 
     in interest, based on a standard repayment plan and the 
     average amount borrowed by students who graduated from the 
     institution of higher education the preceding year with 
     subsidized and unsubsidized Stafford loans and PLUS loans; 
     the consequences for the borrower of defaulting on a loan, 
     including limitations on the discharge of an education loan 
     in bankruptcy; the contact information for the lender; and 
     other information suggested by those with whom the Secretary 
     has consulted. In addition, the amendment requires the 
     Secretary, in determining the minimum information that 
     lenders, covered institutions, and institution-affiliated 
     organizations participating in preferred lender arrangements 
     shall make available regarding education loans that are 
     offered to students and the families of students, to 
     incorporate identical or similar disclosures developed by the 
     Board of Governors of the Federal Reserve pursuant to Section 
     128(e)(1) of the Truth in Lending Act.
       The House bill also requires the model format to provide, 
     with respect to private educational loans recommended by the 
     covered institution, the method of determining the interest 
     rate of the loan; potential finance charges, late fees, 
     penalties, and adjustments to the principal, based on 
     defaults or late payments of the borrower; and, such other 
     information as the Secretary may require.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill require the 
     Secretary to submit the report and model format (Senate) or 
     disclosure form (House) to the authorizing Committees and 
     make the report and model format available to covered 
     institutions of higher education, lenders, and the public. 
     The Senate amendment and the House bill require the Secretary 
     to encourage lenders that have educational loan (Senate) or 
     preferred lender (House) arrangements with covered 
     institutions of higher education, and covered institutions of 
     higher education to use the model forms.
       Both the Senate and the House recede with an amendment that 
     the Secretary shall, after consulting with the public and in 
     coordination with the Board of Governors of the Federal 
     Reserve specify the information covered institutions and 
     institution-affiliated organizations with preferred lender 
     arrangements must provide to prospective borrowers and the 
     families of such borrowers regarding loans made, insured, or 
     guaranteed under Title IV and require covered institutions 
     and institution-affiliated organizations to provide such 
     information on a model disclosure form developed by the 
     Secretary or on a form developed by the institution of higher 
     education. The Secretary shall update the model disclosure 
     form periodically.
       The Senate amendment and the House bill require lenders 
     that participate in educational loan (Senate) or preferred 
     lender (House) arrangements to report the information 
     contained on the model disclosure form to the institutions of 
     higher education even if they do not use the form. The House 
     bill specifies that such information shall be reported to 
     institutions of higher education by March 1 of each year.
       The Senate recedes with an amendment to require lenders 
     that participate in preferred lender arrangements to report 
     information for Part B loans annually to a covered 
     institution or an institution-affiliated organization and to 
     the Secretary, by a date to be determined by the Secretary.
       The House bill specifies that the development and 
     prescription by regulation of the initial model disclosure 
     form shall not be subject to the requirement that it be 
     published in final form by November 1 prior to the start of 
     the award year, nor shall it be subject to negotiated 
     rulemaking. However, such requirements shall apply to the 
     updating of the model disclosure form.
       The Senate contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill require covered 
     institutions of higher education to submit an annual report 
     to the Secretary that includes the information on the model 
     form, a detailed explanation of why the institution of higher 
     education believes the terms and conditions of each loan 
     provided through an agreement are beneficial to the students 
     attending the institution or to the students' parents. 
     Institutions of higher education must make the report 
     available to the public and provide it to students who are 
     attending or who plan to attend the covered institution.
       The House bill requires covered institutions of higher 
     education, on their website and in publications, mailings, 
     electronic messages or media describing financial aid 
     opportunities to prospective or current students or their 
     parents, to include the following: a statement indicating 
     that students are not limited to or required to use the 
     lenders recommended by the institution of higher education; 
     that the institution of higher education is required to 
     process the documents required to obtain a federal 
     educational loan from any eligible lender the student 
     selects. The website and other publications must also 
     disclose, at a minimum, all of the information provided by 
     the model disclosure form (or updated form) with respect to 
     any lender of federal or private educational loans (including 
     opportunity pools) recommended by the institution of higher 
     education; the maximum amount of federal grant and loan aid 
     available to students in an easy-to-understand format; and, 
     the institution's cost of attendance.
       Both the Senate and the House recede with an amendment to 
     require covered institutions and institution-affiliated 
     organizations to make the information that the Secretary 
     requires for the model disclosure format and the information 
     that a private educational lender provides to a covered 
     institution and institution-affiliated organizations pursuant 
     to Sections 128(e)(12) and 128(e)(1) of the Truth in Lending 
     Act, available in time for students and families to consider 
     before selecting a lender or applying for an education loan. 
     The Senate and House further require covered institutions and 
     institution-affiliated organizations to prepare and submit to 
     the Secretary an annual report, by a date to be determined by 
     the Secretary, that includes for each lender that has a 
     preferred lender arrangement with the covered institution and 
     institution-affiliated organization the information the 
     Secretary requires for the model disclosure form and the 
     information private educational lenders participating in a 
     preferred lender arrangements provide to covered institutions 
     and institution-affiliated organizations, for each type of 
     education loan provided pursuant to the preferred lender 
     arrangement. The reports must also include an explanation of 
     why the covered institution or institution-affiliated 
     organization entered into a preferred lender arrangement, 
     including why the terms, conditions, and provisions of each 
     type of loan for students are beneficial for students or the 
     families of students. The covered institution or institution-
     affiliated organizations shall ensure that the report is made 
     available to the public and provided to students attending or 
     planning to attend the covered institution. Each covered 
     institution that has a preferred lender arrangement must 
     disclose on its website, in addition to this information and 
     the disclosures required under the program participation 
     agreement, the maximum amount of federal financial assistance 
     available to students and a statement that the institution of 
     higher education is required to process the documents 
     required to obtain a federal education loan from any eligible 
     lender the student selects.
       The House bill requires the Secretary, not later than one 
     year after submitting the model disclosure form and report, 
     to assess the adequacy of the model disclosure form and, 
     after consultation with specified entities, prepare a list of 
     improvements identified as beneficial to borrowers and to 
     take such improvements into consideration in updating the 
     model disclosure form.
       The Senate amendment contains no similar provision.
       The House recedes.

[[Page 17216]]

       The House bill requires covered institutions of higher 
     education that make information on private educational loans 
     available to students or their parents to also make certain 
     information about private loans and federal student aid under 
     Title IV available. Covered institutions of higher education 
     must inform students, or their parents, of their eligibility 
     for federal student aid, including loans under Title IV; the 
     terms and conditions of private educational loans that may be 
     less favorable than the terms and conditions of Title IV 
     student loans for which they are eligible; and must clearly 
     distinguish between private educational loans and loans made, 
     insured, or guaranteed under Title IV.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to change references 
     to ``student or parent'' to ``prospective borrower''; to 
     clarify that the prospective borrower must be informed that 
     the borrower may qualify for federal financial assistance 
     through a Title IV program of this Act; and, to modify 
     language to require covered institutions and institution-
     affiliated organizations to inform prospective borrowers that 
     the terms or conditions of Title IV loans may be more 
     favorable than the provisions of private loans. The other 
     disclosure requirements in the House bill and the Senate 
     amendment are moved to Sections 428(c), 433(a) and (b), and 
     485(b), (d), and (l) as amended by this Act.
     Section 154. Loan information to be disclosed and model 
         disclosure form for institutions participating in the 
         William D. Ford Federal Direct Loan Program
       The Conferees establish a new Section that requires the 
     Secretary to provide each institution of higher education 
     participating in the William D. Ford Direct Loan program with 
     a completed model disclosure form including the same 
     information for Federal Direct Stafford loans, Federal Direct 
     Unsubsidized Stafford loans and Federal Direct PLUS loans 
     made to, or on behalf of, students attending the institution 
     as is required on such forms for loans described in section 
     151(3)(A). The Conferees require institutions participating 
     in the Direct Loan program to make the information the 
     Secretary provides available to students attending or 
     planning to attend the institution and their families.

                 TITLE II--TEACHER QUALITY ENHANCEMENTS

       The Senate amendment and the House bill strike and replace 
     Title II of the Higher Education Act.
       The Senate and the House recede with amendments as follows.
     Section 201. Teacher quality enhancement

     Section 200. Definitions
       The Senate amendment and the House bill adopt the current 
     definition for ``Arts and Sciences'' and eliminate the 
     current definition of ``Poverty Line.'' The Senate amendment 
     and House bill add the same definitions of ``Children from 
     Low-Income Families,'' ``Core Academic Subjects,'' ``Early 
     Childhood Educator,'' ``Educational Service Agency,'' 
     ``Essential Components of Reading Instruction,'' ``Exemplary 
     Teacher;'' ``High-Need Early Childhood Education Program,'' 
     ``Highly Competent,'' ``Highly Qualified,'' ``Limited English 
     Proficient,'' ``Professional Development,'' and ``Teaching 
     Residency Program.''
       The Conferees adopt that provisions as proposed by both the 
     Senate and the House with an amendment to adopt the 
     definition for ``parent'' as found in the Elementary 
     Secondary Education Act (ESEA).
       The Senate amendment and the House bill contain definitions 
     for ``Early Childhood Education Programs,'' but the House 
     bill definition of ``Early Childhood Education Program'' 
     differs in two respects by specifying that Head Start 
     programs include Migrant and Seasonal Head Start, as well as 
     American Indian/Alaska Native Head Start programs, and by 
     including prekindergarten programs authorized under Section 
     619 or Part C of the Individuals with Disabilities Education 
     Act.
       The Senate recedes with an amendment to add ``or a program 
     authorized under Section 619 of the Individuals with 
     Disabilities Education Act'' after ``State prekindergarten 
     program'' in the definition of ``Early Childhood Education 
     Programs,'' to clarify that a state licensed or regulated 
     child care program does not include a school and an eligible 
     state prekindergarten program is one that serves children 
     from birth to age six.
       The Senate amendment and the House bill contain definitions 
     of ``eligible partnerships.'' The House bill definition 
     includes alternative certification programs and teacher 
     professional development programs within partner institutions 
     of higher education.
       The Senate recedes with an amendment to allow teacher 
     professional development programs to be included in the 
     partnership only if they are existing programs with proven 
     outcomes within a four year institution of higher education 
     that provides intensive and sustained collaboration between 
     faculty and local educational agencies in order to meet the 
     requirements of this Title.
       The Senate amendment and the House bill amend the 
     definition of a ``High-Need Local Educational Agency'' in the 
     same manner and include references to rural locale codes. The 
     Senate amendment lists specific rural locale codes and the 
     House bill references rural locale codes currently being used 
     by the Department of Education. The Senate amendment includes 
     locale codes correspond to the designations of small town 
     (6); rural, outside major statistical area (7); and rural, 
     inside major statistical area (8). The House bill provides 
     the labels for locale codes that correspond to the following 
     numerical designations: rural, fringe (41); rural, distant 
     (42); and rural, remote (43).
       The House and Senate recede with an amendment to align the 
     definition of local educational agencies with the definition 
     in the Elementary and Secondary Education Act.
       The Senate amendment and the House bill amend the 
     definition of ``High-Need School'' in the same manner; 
     except, the Senate amendment defines a rural school as one 
     designated with a locale code of 6, 7, or 8. The House bill 
     defines a rural school as one designated with a locale code 
     of Rural: Fringe, Rural: Distant, or Rural: Remote.
       The Senate and the House recede with an amendment to define 
     a high-need school as one that is either in the highest 
     quartile of low-income schools in a ranking of all schools 
     served by a local educational agency, as determined by 
     various poverty indicators, or, in the case of an elementary 
     school, one that serves not less than sixty percent of 
     students who are eligible for free or reduced price school 
     lunch under the Richard B. Russell National School Lunch Act, 
     and for all other schools, that serves not less than 45 
     percent of such students.
       The Senate amendment and the House bill define ``Induction 
     Program'' to include periodic, structured time for 
     collaboration with other teachers, as well as time for 
     information-sharing among teachers, principals, 
     administrators, and participating faculty. However, the 
     Senate amendment allows such collaboration to be with any 
     other teachers in the same department or field, and the House 
     bill specifies that such collaboration shall be with mentor 
     teachers.
       The House recedes with an amendment to include mentor 
     teachers in addition to other teachers who shall be provided 
     collaboration time and to include other appropriate 
     instructional staff in information sharing time.
       The Senate amendment and the House bill define an 
     ``Induction Program'' as having a teacher preparation program 
     that includes interdisciplinary collaboration. However, the 
     House bill specifies that the collaboration occurs with those 
     who prepare new teachers with respect to the learning process 
     and the assessment of learning.
       The Senate recedes.
       The Senate amendment and the House bill define an 
     ``Induction Program'' as having a teacher preparation program 
     that provides assistance with the understanding of data, 
     particularly student achievement data, and the applicability 
     of that data in classroom instruction.
       The Senate and the House recede with an amendment that the 
     program shall provide assistance with ``the applicability of 
     such data in classroom instruction.''
       The Senate amendment defines an ``Induction Program'' as 
     having a regular evaluation of the new teacher.
       The House bill specifies that the evaluation include formal 
     observation and feedback, at least four times a year by 
     multiple evaluators, including master teachers and the 
     principal, who must use valid and reliable benchmarks of 
     teaching skills and standards developed with input from 
     teachers in the evaluation.
       The Senate recedes with an amendment to indicate that the 
     evaluation shall consist of ``regular and structured 
     observation and evaluation of the new teachers by multiple 
     evaluators, using valid and reliable measures of teaching 
     skills.''
       The Conferees intend that measures of teaching skills 
     employed during observation and evaluation of new teachers 
     include the teaching skills described later in this Section. 
     Using such a definition of skills in developing metrics for 
     the observation and evaluation of new teachers will require 
     prioritizing these teaching skills while developing a rubric 
     or procedures for evaluation. The Conferees intend that such 
     rubrics or procedures be developed through consultation and 
     cooperation among teachers, mentors, principals and others 
     involved in the process of observation and evaluation.
       The House bill defines the term ``Literacy Coach.''
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill define a ``Partner 
     Institution'' as an institution of higher education, which 
     may include a two-year institution of higher education 
     offering a dual program with a four-year institution of 
     higher education that also meets additional criteria.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Conferees recognize the essential role that community 
     colleges play in teacher preparation, providing the first two 
     years of postsecondary education for many teacher candidates. 
     The Conferees further recognize

[[Page 17217]]

     that two-year institutions of higher education, by 
     definition, provide the initial portion of pre-baccalaureate 
     teacher preparation that each candidate must complete at a 
     four-year institution of higher education. Some two-year 
     institutions of higher education, however, have begun to 
     partner with four-year institutions of higher education and 
     offer students a path to a baccalaureate degree and full 
     state teacher certification. The Conferees intend that to be 
     considered a ``partner institution'' and therefore, part of a 
     partnership eligible to receive funds under this Title, the 
     two-year institution of higher education must partner with a 
     four-year institution of higher education and work together 
     to carry out the activities required under this Title. It is, 
     therefore, essential that two- and four-year institutions of 
     higher education cooperate to ensure that the initial years 
     of pre-baccalaureate preparation offered at each two-year 
     institution of higher education provide courses of study that 
     are aligned with curriculum at the four-year institution of 
     higher education in order to meet the state requirements for 
     teacher certification. Cooperation between institutions of 
     higher education should include a formal agreement to ensure 
     that the institutions have developed an articulated transfer 
     policy so that teacher candidates beginning at a two-year 
     institution will be adequately supported during completion of 
     their pre-baccalaureate preparation at the four-year 
     institution of higher education.
       The Senate amendment and the House bill further define a 
     ``Partner Institution'' as one that includes a teacher 
     preparation program that requires each student meet high 
     academic standards and participate in intensive clinical 
     experience. The House bill also requires each student to 
     demonstrate such high academic standards.
       The Senate recedes with an amendment to strike ``and 
     demonstrate'' and insert after ``high academic standards'', 
     ``, or demonstrate a record of success, as determined by the 
     institution''.
       The House bill defines a ``Partner Institution'' as 
     including a teacher preparation program whose participants 
     include current teachers who seek ongoing professional 
     development and that requires the faculty of arts and 
     sciences of the partner institution of higher education to 
     lead collaborative seminars for the purpose of improving 
     student learning and developing curriculum units.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment defines ``Principles of Scientific 
     Research.''
       The House bill contains no similar provision.
       The House recedes with an amendment to the definition that 
     provides that the term includes, appropriate to the research 
     being conducted, ``strong claims of causal relationships, 
     only with respect to research designs that eliminate 
     plausible competing explanations for observed results, which 
     may include random-assignment experiments.''
       The Senate amendment and the House bill contain the same 
     definition of ``Scientifically Valid Research.''
       The Senate and the House recede with an amendment to strike 
     the word ``accepted'' with regard to principles of scientific 
     research.
       Both the Senate amendment and the House bill define 
     ``Teacher Mentoring.'' However, the House bill defines the 
     term to include programs that provide training in classroom 
     management.
       The Senate recedes with an amendment to include approaches 
     that improve the school-wide climate for learning, such as 
     positive behavioral interventions and supports.
       The Senate amendment and the House bill further define 
     ``Teacher Mentoring'' to include providing regular and 
     ongoing opportunities for mentors and mentees to observe each 
     other's teaching methods.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill defines ``Teacher Mentoring'' to include 
     paid release time for mentors.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that 
     mentors are provided paid release time ``as applicable.''
       The Senate amendment and the House bill include similar 
     definitions of ``Teaching Skills.'' However, the House bill 
     defines the term to include skills that enable the teacher to 
     effectively manage a classroom, including the ability to 
     implement positive behavioral intervention support 
     strategies.
       The Senate recedes with an amendment to include in the 
     definition skills that enable a teacher to effectively teach 
     higher-order analytical, evaluation, problem-solving, and 
     communication skills, and to clarify that skills include the 
     ability to implement positive behavioral ``interventions and 
     support strategies.''

               Part A--Teacher Quality Partnership Grants

     Section 201. Purposes
       The Senate amendment and the House bill both modify Section 
     201(a)(3) of the HEA. The Senate amendment provides that a 
     purpose of this Section is to hold institutions of higher 
     education accountable for preparing highly qualified 
     teachers.
       The House bill specifies that teacher preparation programs 
     be held accountable for preparing highly qualified teachers.
       The Senate recedes with an amendment to clarify that the 
     focus of the program be on prospective and new teachers.
     Section 202. Partnership Grants
       The Senate amendment and the House bill retain the current 
     standards for authorizing a Partnership Grant program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill include different 
     application requirements. The Senate amendment requires that 
     applications describe the extent to which new teachers will 
     be prepared to understand research and data and its 
     applicability. The House bill requires that applications 
     describe how new teachers will be prepared to use research 
     and data to improve instruction. The House bill requires that 
     applications also provide a description of how partnerships 
     will prepare teachers to teach students with disabilities and 
     students with limited English proficiency.
       The Senate recedes with an amendment to require that 
     applications also provide a description of how partnerships 
     will strengthen the content knowledge and teaching skills of 
     elementary and secondary school teachers and train other 
     classroom teachers to implement literacy programs that 
     incorporate the essential components of reading instruction.
       The Senate amendment requires partnerships to use funds for 
     either a pre-baccalaureate preparation program, a teaching 
     residency program, or both. The House bill adds a leadership 
     development program, and requires that funds be used for at 
     least two of the three types of programs.
       The Senate recedes with an amendment to allow partnerships 
     to use funds for a leadership development program only in 
     addition to either a pre-baccalaureate preparation program or 
     a teaching residency program or both.
       The Senate amendment and the House bill describe a ``Pre-
     Baccalaureate Preparation Program'' and require teacher 
     preparation reforms.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require certain 
     reforms to be directed to specified types of current or 
     prospective teachers. The House bill also includes additional 
     provisions regarding ``Advanced Placement and International 
     Baccalaureate teachers.''
       The Senate recedes.
       The Senate amendment and the House bill require reforms 
     that prepare teachers to understand, practice, research, and 
     use technology and instructional techniques. The House bill 
     adds ``strategies, consistent with the principles of 
     universal design for learning, and positive behavioral 
     support strategies.''
       The Senate recedes.
       The Senate amendment and the House bill require reforms to 
     promote strong teaching skills for early childhood educators 
     including, as applicable, techniques for early childhood 
     educators to improve children's cognitive, social, emotional, 
     and physical development. The House bill includes the ability 
     to effectively teach higher-order analytical, evaluative, 
     problem-solving, and communication skills.
       The House recedes.
       The Senate amendment and the House bill include a provision 
     for required reforms.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill requires that reforms implemented by Pre-
     Baccalaureate Preparation Programs include general and 
     special education teachers.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires that reforms implemented by Pre-
     Baccalaureate Preparation Programs effectively teach high-
     order analytical, evaluative, problem solving, and 
     communications skills appropriate for the teacher's content 
     or specialty area.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill requires that reforms implemented by Pre-
     Baccalaureate Preparation Programs ensure that prospective 
     teachers and early childhood educators can effectively 
     participate in the individualized education program 
     ``process,'' as defined in section 614(d)(1)(B) of the 
     Individuals with Disabilities Education Act.
       The Senate recedes with an amendment to clarify that 
     reforms include implementing teacher preparation program 
     curriculum changes to ensure teachers can effectively 
     participate as a member of the individualized education 
     program team.
       The Senate amendment and the House bill contain provisions 
     for developing and implementing induction programs and 
     admissions goals. The House bill requires that reforms 
     implemented by Pre-Baccalaureate Preparation Programs ensure 
     training of highly qualified teachers, which may include 
     training in multiple subjects to teach multiple grade levels 
     as may be needed for individuals preparing to teach in rural 
     communities.

[[Page 17218]]

       The Senate recedes with an amendment to include training 
     for teachers who teach multiple subjects.
       The Senate amendment and the House bill provide that 
     support may include developing admissions goals and 
     priorities. The House bill clarifies that these goals and 
     priorities be ``aligned'' with the hiring objectives of the 
     high-need local educational agency in the eligible 
     partnership.
       The Senate recedes.
       The House bill requires that reforms implemented by Pre-
     Baccalaureate Preparation Programs implement program 
     curriculum changes to prepare teachers to teach Advanced 
     Placement or International Baccalaureate courses.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require reforms to 
     include, as applicable, implementing program and curriculum 
     changes to ensure that prospective teachers have the 
     requisite content knowledge, preparation, and degree to 
     successfully teach Advanced Placement and International 
     Baccalaureate courses.
       The Senate amendment and the House bill require that Pre-
     Baccalaureate Preparation Programs provide clinical 
     experience and interaction.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill provides that clinical experience and 
     interaction may include preparation for meeting the unique 
     needs of teaching in rural communities.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that the 
     training and experience provision shall apply to preparing 
     teachers for both urban and rural communities.
       The Senate amendment and the House bill require that 
     clinical experience and interaction provide support and 
     training for those individuals participating in an activity 
     for prospective teachers described in this paragraph or 
     paragraph (1). The House bill also applies this requirement 
     to paragraph (3) and the Senate amendment applies the 
     requirement to paragraph (2).
       The Senate recedes with an amendment to add ``new'' 
     teachers, in addition to prospective teachers, who shall 
     participate in activities.
       The Senate amendment and the House bill allow support for 
     mentor stipends, which may include bonus or differential pay. 
     The Senate amendment allows the stipend to include incentive, 
     merit, or performance-based pay. The House bill allows the 
     stipend to include incentive pay, based on teachers' extra 
     skills and responsibilities.
       The House recedes with an amendment to allow funds to be 
     used for mentor stipends, which may include bonus, 
     differential, incentive, or performance-based pay, based on 
     teachers' extra skills and responsibilities.
       The Senate amendment and the House bill require that Pre-
     Baccalaureate Preparation Programs provide induction programs 
     for new teachers, and support and training for participants 
     in early childhood education programs.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require that Pre-
     Baccalaureate Preparation Programs provide teacher 
     recruitment. The House bill allows recruitment mechanisms to 
     include alternative routes to State certification of 
     teachers.
       The Senate recedes.
       The House bill places emphasis on recruiting teachers from 
     underrepresented populations, rural communities, shortage 
     areas, and mid-career professionals.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires the development and implementation 
     of literacy training programs to train classroom teachers how 
     to implement literacy programs.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the 
     literacy training to include training in reading instruction 
     for elementary or secondary school teachers, who train or 
     will train classroom teachers to implement literacy programs, 
     or who tutor or will tutor students with intense 
     individualized reading, writing, and subject matter 
     instruction. The literacy training will also provide 
     opportunities for teachers to plan and assess literacy 
     instruction with faculty at institutions of higher education. 
     Such planning time may include school leaders and other 
     teachers.
       The Senate amendment and the House bill define a ``Teaching 
     Residency Program.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment requires that partnerships modify 
     staffing procedures to facilitate the placement of graduates 
     of the teaching residency program in cohorts that facilitate 
     professional collaboration.
       The House bill requires that such placement be attempted 
     where feasible.
       The House recedes with an amendment to require that 
     partnerships carry out a program ``placing graduates'' in 
     cohorts that facilitate professional collaboration.
       The Senate amendment and the House bill ensure that 
     teaching residents who participated in the teaching residency 
     program receive certain benefits.
       The Senate and the House recede with a technical amendment.
       The Senate amendment and the House bill describe a teaching 
     residency program that requires the selection of mentor 
     teachers based on an evaluation that includes observations of 
     a number of domains of teaching. The House bill provides that 
     the evaluations need not include an observation of all the 
     domains.
       The House recedes with an amendment that evaluation of 
     teacher effectiveness shall be based on, ``but not limited 
     to,'' observations of specified activities, with the 
     reference to teaching domains stricken.
       The Senate amendment and the House bill contain in their 
     descriptions of effective teaching appropriate instruction 
     that engages students with different learning styles. The 
     House bill includes students with disabilities.
       The House recedes.
       The House bill states that the admission goals and 
     priorities of a teaching residency program may include 
     consideration of applicants who reflect the communities in 
     which they will teach, as well as consideration of 
     individuals from underrepresented populations in the teaching 
     profession.
       The Senate amendment contains no similar provision.
       The Senate recedes with technical amendments.
       The Senate amendment and the House bill provide criteria 
     for the selection of individuals as teacher residents.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill provide for the 
     award of stipends connected to a service requirement. The 
     House bill limits the stipend or salary to one year, and 
     requires teaching residency candidates to submit an 
     application to obtain a stipend or salary.
       The House recedes.
       The Conferees expect and intend that individuals who agree 
     to teach in a high-need school after completing a teaching 
     residency program will be placed by the partnership into a 
     teaching position that satisfies the needs of the local 
     education agency. This placement should meet the subject 
     areas or grade level priorities deemed most in need by the 
     local agency and its partners, but with full recognition of 
     the needs of the teaching residency program to implement 
     practices consistent with ongoing induction and support of 
     the new teacher. This recognition may require establishing a 
     priority on placing graduates of the residency program 
     together in cohorts that encourage the effective induction 
     and subsequent retention of these new teachers.
       The Senate amendment and the House bill require that a 
     graduate of the residency program who receives a stipend 
     agree to serve three or more years as a teacher in a high-
     need school served by a high-need local education agency in 
     the partnership upon completion of the program. The Senate 
     amendment specifies that applicants serve after completing a 
     one-year teaching residency program.
       The Senate recedes with an amendment to clarify that 
     applicants agree to serve for three years after completing a 
     one-year teaching residency program.
       The House bill requires service in a field designated as 
     high-need by the partnership.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that the 
     applicant will teach in a subject or area that is designated 
     as high-need by the partnership.
       The House bill requires that each year or partial year of 
     service in fulfillment of the service requirement be 
     certified by the school's chief administrative officer.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that the service 
     requirement be certified by the local educational agency's 
     chief administrative officer.
       The House bill requires that, upon beginning service 
     repayment, a teacher must ``be a highly qualified teacher, as 
     defined in Section 9101 of the Elementary and Secondary 
     Education Act of 1965.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that an 
     applicant must ``meet the requirements to be a highly 
     qualified teacher'' at the time the applicant begins to 
     fulfill the service agreement.
       The Senate amendment provides that a stipend recipient who 
     does not fulfill the service requirement repay the local 
     education agency a pro rata portion of the stipend amount for 
     the amount of teaching time that an individual does not 
     complete.
       The House bill provides that a recipient who does not 
     fulfill the service requirement repay the partnership the 
     amount of the stipend or salary with interest.
       The Senate recedes with an amendment to clarify that the 
     stipend or salary is described in (c)(i), and that the 
     interest shall be at a rate specified by the partnership in 
     the agreement.

[[Page 17219]]

       The House bill provides terms under which the service 
     agreement may be deferred.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that adds a provision 
     that the terms and conditions specified by the partnership 
     may include reasonable provisions for pro rata repayment of 
     the stipend or salary described in (c)(i).
       The House bill requires partnerships to use stipend 
     repayment funds for activities that are consistent with the 
     purposes of this Subsection.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment allows funds received by a partnership 
     to be used for activities described in Subsections (d) and 
     (e) to improve pre-baccalaureate teacher preparation and pre-
     service training through public television and digital 
     educational content.
       The House bill contains no similar provision.
       The House recedes with an amendment to allow grant funds to 
     be used to carry out required activities in partnership with 
     public television or another entity that develops digital 
     educational content.
       The Senate amendment and the House bill require 
     consultation, regular communication, and written consent 
     between and among members of the partnership and permit the 
     Secretary to approve changes with the written consent of all 
     members of the eligible partnership. Both the Senate 
     amendment and the House bill provide that nothing in this 
     Section shall be construed to prohibit coordination among 
     partnerships in other states or on a regional basis.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment requires that funds under this Section 
     be used to supplement, not supplant, other federal, state, 
     and local funds.
       The House bill contains no similar provision.
       The House recedes.
       The House bill allows grant funds to be used for the 
     development of a leadership program, which must include 
     activities that prepare students for careers as 
     superintendents, principals, or other school administrators, 
     as well as activities that promote strong leadership skills 
     among other mandatory activities.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to change all 
     references to education or school administrators to ``school 
     leaders.'' The requirement to promote strong leadership 
     skills is expanded to include specific techniques and 
     requirements.
     Section 203. Administrative provisions
       The Senate amendment and the House bill contain identical 
     provisions regarding the duration, number of awards, and 
     payments. The Senate amendment and the House bill charge the 
     Secretary with submitting applications to a peer review 
     panel.
       Senate recedes with an amendment to strike the payment 
     provision.
       The Senate amendment and the House bill put priority on 
     broad-based partnerships and equitable geographic 
     distribution. The Senate amendment requires both, while the 
     House bill requires either, and further requires that 
     priority be given to partnerships with teacher preparation 
     programs that have a rigorous selection process.
       The Senate recedes with an amendment that gives the 
     Secretary the authority to determine priority.
       The Senate amendment and the House bill authorize the 
     Secretary to select the grantees and to determine the amounts 
     of the grants. The Senate amendment and the House bill 
     require one-hundred percent matching funds from non-federal 
     sources and authorize the Secretary to waive this 
     requirement. The Senate amendment and the House bill limit 
     expenditures on administrative activities to two percent of 
     the grant amount.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 204. Accountability and evaluation
       The Senate amendment and the House bill require 
     partnerships to establish an evaluation plan that includes 
     strong performance objectives and measures.
       The Senate recedes with an amendment to insert ``and 
     measurable'' after ``strong''.
       The House bill includes, among the performance objectives 
     and measures, the number of teachers trained to integrate 
     technology, including technology consistent with the 
     principles of universal design for learning, into curricula 
     and instruction.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment making technical 
     changes to the House provision on the number of teachers 
     required to integrate technology into curricula and 
     instruction, and deleting the reference to ``decision 
     making'' in this Section.
       The Senate amendment and the House bill require 
     partnerships to provide information about the activities 
     funded under this part to educational personnel and 
     leadership in surrounding schools and to institutions of 
     higher education. Both give the Secretary authority to revoke 
     a grant to partnerships not making progress on the purposes, 
     goals, objectives, and measures of the grant by the end of 
     the third year.
       The House and Senate recede with an amendment to require 
     the Secretary to cancel the grant if the grantee has not made 
     substantial progress in meeting the goals and objectives of 
     the grant after three years.
       The Senate amendment and the House bill require the 
     Secretary to evaluate activities funded under this Part, 
     report findings to the authorizing committees, and to broadly 
     disseminate information on successful and ineffective 
     practices. The Senate amendment requires the Secretary to 
     report the findings regarding the activities while the House 
     bill requires the Secretary to report the findings regarding 
     the evaluation of such activities.
       The Senate recedes.
     Section 205. Accountability for programs that prepare 
         teachers
       The Senate amendment and the House bill require 
     institutions of higher education receiving federal assistance 
     under the Higher Education Act to report annually to the 
     state and the general public a Report Card containing a 
     variety of information on traditional teacher preparation 
     programs and alternative routes to state certification. Both 
     require the Report Card to contain pass rates and scaled 
     scores for students who took teacher certification 
     assessments and are enrolled in or completed a program. The 
     Senate amendment and the House bill require that the Report 
     Card contain for each of the assessments used by the state 
     the percentage of students at each institution of higher 
     education who have completed one-hundred percent of their 
     non-clinical course work and passed the assessment; the 
     percentage of all students at all institutions of higher 
     education who have passed their assessment; the percentage of 
     students taking an assessment who enrolled in and completed a 
     program; and the average scaled score for all students who 
     took an assessment.
       The Senate recedes with an amendment to add to the report 
     card requirements a new subparagraph on goals and assurances 
     requiring information on whether goals under Section 206 have 
     been met, the activities the institution took to implement 
     the goals, a description of the steps the institution is 
     taking to improve its efforts to meet the goals, and a 
     description of the activities the institution has implemented 
     to meet the assurances required by Section 206.
       The Senate amendment requires that the percentage of 
     students taking an assessment that enrolled in and completed 
     a program be made available widely and publicly by the state.
       The House bill contains a similar provision but does not 
     require the information be made publicly available.
       The Senate recedes.
       The Senate amendment and the House bill require that the 
     Report Card contain the average scaled score, a comparison of 
     the program's pass rates, and a comparison of the programs 
     average scaled scores.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require that the 
     Report Card contain program information. The House bill 
     further requires information on the number of students in the 
     program disaggregated by race, ethnicity, and gender.
       The Senate recedes.
       The Senate amendment and the House bill require that the 
     Report Card contain a statement on approval or accreditation 
     of teacher preparation programs. The Senate amendment and the 
     House bill also require that the Report Card contain 
     information on programs designated as low-performing.
       The Conferees adopt the provision proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require that the 
     Report Card contain information on the use of technology. The 
     House bill further requires that the Report Card contain 
     information on the training of general and special education 
     teachers.
       The Senate recedes with an amendment to include technology 
     consistent with the principles of universal design for 
     learning in the description required regarding the use of 
     technology, and to eliminate ``decision making'' as an 
     improvement sought by the use of technology.
       The Senate amendment and the House bill require that 
     partnerships report annually on the progress made toward 
     meeting the purposes of this Part and the objectives in 
     Section 204(a). The Senate amendment and the House bill 
     authorize the Secretary to impose a fine of up to $25,000.
       The Senate and the House recede with an amendment to 
     increase the fine amount to $27,500.
       The Senate amendment and the House bill require each state 
     receiving federal assistance under the Higher Education Act 
     to report annually to the Secretary a state Report Card 
     containing a variety of information on traditional teacher 
     preparation programs and alternative routes to state 
     certification.
       The Senate recedes with an amendment to require states to 
     make the state Report Card mandated by this section widely 
     available to the general public.
       The Senate amendment and the House bill require that the 
     state Report Card contain a

[[Page 17220]]

     description of the reliability and validity of the teacher 
     certification and licensure assessments.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill contain similar 
     provisions requiring that the state Report Card identify the 
     standards and criteria that prospective teachers must meet to 
     attain initial teacher certification.
       The Senate recedes.
       The Senate amendment and the House bill require that the 
     state Report Card contain a description of how the 
     assessments and requirements described in subparagraph (A) 
     are aligned with the state's challenging academic content 
     standards required under Section 1111(b)(1) of the Elementary 
     and Secondary Education Act. The Senate amendment and the 
     House bill also provide that the state Report Card contain 
     for each of the assessments used by the state: the percentage 
     of students at each institution of higher education who have 
     completed one-hundred percent of their non-clinical course 
     work and passed the assessment; the percentage of all 
     students at all institutions of higher education who have 
     passed their assessment; and the percentage of students 
     taking an assessment who enrolled in and completed a program.
       The Senate recedes with an amendment to include the average 
     scaled scores of individuals participating in the program.
       The Senate amendment requires that the percentage of 
     students taking an assessment that enrolled in and completed 
     a program be made available widely and publicly by the state.
       The House bill contains a similar provision, except that it 
     does not require such information to be made widely and 
     publicly available.
       The Senate recedes.
       The Senate amendment and the House bill contain similar 
     provisions requiring that the state Report Card include a 
     description of alternative routes to certification, except 
     that the Senate amendment refers to ``State certification'' 
     and the House bill refers to ``teacher certification.''
       The Senate recedes.
       The Senate amendment and the House bill require that the 
     state Report Card contain the criteria for admission into the 
     program and the number of students in the program, 
     disaggregated by race and gender. The House bill also 
     requires disaggregation of program participants by ethnicity.
       The Senate recedes.
       The Senate amendment and the House bill contain similar 
     provisions requiring the state Report Card to provide a 
     description of the extent to which teacher preparation 
     programs are helping to address shortages of highly qualified 
     teachers.
       The House recedes with a technical amendment to strike 
     ``helping to'' and to change ``address'' to ``addressing.''
       The House bill requires that the state Report Card contain 
     a description of the activities that prepare general and 
     special education teachers to effectively teach students with 
     disabilities.
       The Senate amendment contains no similar provision.
       The Senate recedes with a technical amendment to strike the 
     phrase ``A description of the activities that prepare general 
     and special education teachers'' and replace it with ``The 
     extent to which teacher education programs prepare teachers, 
     including general and special education teachers.''
       The Senate amendment and the House bill require that the 
     state Report Card contain a description of the activities 
     that prepare teachers to effectively integrate technology 
     into curricula and instruction.
       The Senate recedes with a technical amendment to move 
     ``effectively'' from before ``integrate technology'' to after 
     ``integrate technology'', to insert ``including technology 
     consistent with the principals of universal design for 
     learning'' after ``curricula and instruction'' and to insert 
     ``and'' after ``, learning'', and to strike ``and decision 
     making''.
       The House bill requires that the state Report Card contain 
     a description of the activities that prepare general 
     education and special education teachers to effectively teach 
     students with limited English proficiency.
       The Senate amendment contains no similar provision.
       The Senate recedes with a technical amendment to insert 
     ``teachers, including'' after ``that prepare'' and to insert 
     a comma after ``special education teachers.''
       The Senate amendment and the House bill prohibit the 
     Secretary from creating a national list or ranking of states, 
     institutions of higher education, or schools.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill requires the Secretary to ``prescribe 
     regulations requiring practices and procedures to ensure the 
     reliability, validity, integrity, and accuracy of the data 
     submitted pursuant to this Section.''
       The Senate amendment contains no similar provision.
       The Senate recedes with a technical amendment to strike 
     ``requiring practices and procedures.''
       The Senate amendment and the House bill require the 
     Secretary to report to Congress on the quality of teacher 
     preparation in the United States.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 206. Teacher development
       The Senate amendment and the House bill require that each 
     institution of higher education that conducts a traditional 
     teacher preparation program set annual quantifiable goals. 
     The Senate amendment further establishes this requirement as 
     a condition of receiving assistance under Title IV of the 
     Higher Education Act.
       The Senate recedes.
       The Senate amendment and the House bill require that one 
     quantifiable goal be to increase the number of prospective 
     teachers trained in teacher shortage areas. The Senate 
     amendment provides that shortage areas are designated by the 
     Secretary, while the House bill provides that state 
     educational agencies make that designation.
       The Senate and the House recede with an amendment to allow 
     shortage areas to be designated by either Secretary or the 
     state educational agency.
       The Senate amendment and the House bill require that one 
     quantifiable goal be to more closely link the training 
     provided by the institution of higher education with the 
     needs of schools and the instructional decisions new teachers 
     face in the classroom.
       The Senate and the House recede with an amendment to make 
     this requirement an assurance mandated by Subsection (b), and 
     included as a new paragraph (2) to read as follows: 
     ``training provided to prospective teachers is closely linked 
     with the needs of schools and the instructional decisions new 
     teachers face in the classroom.''
       The Senate amendment and the House bill require that each 
     institution of higher education that conducts a traditional 
     teacher preparation program provide certain assurances to the 
     Secretary. The Senate amendment links this requirement to 
     receipt of assistance under Title IV of the Higher Education 
     Act.
       The Senate recedes.
       The Senate amendment and the House bill require that each 
     institution of higher education that conducts a traditional 
     teacher preparation program provide assurances to the 
     Secretary that prospective teachers receive training on how 
     to effectively teach in urban and rural schools. The House 
     bill limits this requirement as applicable.
       The Senate recedes.
       The Senate amendment and the House bill require public 
     reporting.
       The Senate and the House recede with an amendment to strike 
     the reporting requirement in this Subsection and add a new 
     Subsection (c), captioned ``Rule of Construction'' that 
     provides as follows: ``Nothing in this Section shall be 
     construed to require an institution of higher education to 
     create a new teacher preparation area of concentration or 
     degree program or adopt a specific curriculum in complying 
     with this Section.''
     Section 207. State functions
       The Senate amendment and the House bill contain similar 
     provisions requiring that states have in place a procedure to 
     identify low-performing programs of teacher preparation and 
     to provide those programs with technical assistance.
       The Senate recedes with an amendment to modify Section (a) 
     to begin ``In order to receive funds under this Act, a State 
     shall conduct an assessment to identify low-performing 
     programs of teacher preparation and assist such programs 
     through the provision of technical assistance.''
       The House bill provides that levels of performance of 
     teacher preparation programs shall be determined solely by 
     the state and may include progress in increasing the 
     percentage of highly qualified teachers, improving student 
     achievement, and raising the standards for entry into the 
     teaching profession.
       The Senate amendment contains a similar provision.
       The Senate recedes with an amendment to change ``student 
     achievement'' to ``student academic achievement'' and to 
     change ``all students'' to ``elementary and secondary 
     students.''
       The Senate amendment and the House bill contain identical 
     language on the termination of eligibility, negotiated 
     rulemaking, and on the application of the requirements.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 208. General provisions
       The Senate amendment and the House bill require the 
     Secretary to ensure the use of fair and equitable methods in 
     reporting and that the reporting methods do not allow 
     identification of individuals. The Senate amendment and the 
     House bill also include a special rule for states that do not 
     use content assessments as a means of ensuring that all 
     teachers teaching in core academic subjects are highly 
     qualified, as required under Section 1119 of the Elementary 
     and Secondary Education Act. The Senate amendment and the 
     House bill further require state educational agencies that 
     receive Higher Education Act funds to provide to a teacher 
     preparation program, upon the request of the program, any and 
     all pertinent education-related information possessed or 
     controlled by or accessible to the state agency that may 
     enhance the effectiveness of the program.

[[Page 17221]]

       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 209. Authorization of appropriations
       The Senate amendment authorizes for Part A such sums as 
     necessary for fiscal year 2008 and five succeeding fiscal 
     years.
       The House bill authorizes for Part A $300,000,000 for 
     fiscal year 2009 and such sums for two succeeding fiscal 
     years.
       The Senate recedes.

                  PART B--ENHANCING TEACHER EDUCATION

     Section 230. Authorizations of appropriations
       The House bill establishes an authorization level of such 
     sums as necessary for Part B programs for fiscal year 2009 
     and each of the five succeeding years.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to authorize such sums 
     for fiscal year 2009 and each of the five succeeding fiscal 
     years.


           Subpart 1--Preparing Teachers for Digital Learners

       The House bill replaces the existing Part B, Preparing 
     Teachers to use Technology, and establishes a new Part B 
     program, ``Preparing Teachers for Digital Age Learners,'' 
     that would pay the federal share of the costs of projects to 
     graduate teacher candidates who are prepared to use modern 
     information, communication, and learning tools; to strengthen 
     and develop partnerships among the stakeholders in teacher 
     preparation; and to assess the effectiveness of departments, 
     schools, and colleges of education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Conference agreement contains language to ensure that 
     funds under section 232 can be used to, ``build the skills of 
     teacher candidates to support technology-rich instruction, 
     assessment and learning management in content areas, 
     technology literacy, an understanding of the principles of 
     universal design, and the development of other skills for 
     entering the workplace.''
       The Conferees intend the term ``technology literacy'' to 
     include student knowledge and skills in using contemporary 
     information, communication, and learning technologies in a 
     manner necessary for successful employment, life-long 
     learning and citizenship in the knowledge-based, digital, and 
     global 21st century, which includes, at a minimum, the 
     ability to use technology to: (1) Effectively communicate and 
     collaborate with others in a safe and ethical manner; (2) 
     Analyze and solve problems, including the application of the 
     engineering design process; (3) Access, evaluate, manage, and 
     create information and otherwise gain information literacy; 
     and (4) Demonstrate creative thinking, construct knowledge, 
     and develop innovative products and processes.


        Subpart 2--The Augustus F. Hawkins Centers of Excellence

       The House bill establishes a new program for the creation 
     of Augustus F. Hawkins Centers of Excellence at Historically 
     Black Colleges and Universities (HBCUs) and Minority Serving 
     Institutions (MSIs). The purposes of these Centers are to 
     increase teacher recruitment at HBCUs and MSIs and to make 
     institutional improvements to teacher preparation programs at 
     such institutions of higher education.
       The Senate amendment contains no similar provision.
       The Senate recedes.


  Subpart 3--Preparing General Education Teachers to More Effectively 
                   Educate Students with Disabilities

       The House bill establishes a new Teach to Reach program, a 
     competitive grant program for eligible partnerships to 
     improve the preparation of general education teacher 
     candidates in order to more effectively teach students with 
     disabilities.
       The Senate amendment contains no similar provision.
       The Senate recedes.


                    Subpart 4--Adjunct Teacher Corps

       The House bill establishes a new program called the Adjunct 
     Teacher Corps, a competitive grant program for local 
     education agencies or local education agency partnerships to 
     help recruit and train math, science, and critical foreign 
     language specialists to serve as adjunct content specialists 
     in support of teachers. Grants last five years and must be 
     matched one-hundred percent by non-federal sources.
       The Senate amendment contains no similar provision.
       The Senate recedes.


Subpart 5--Graduate Fellowship to Prepare Faculty in High Need Areas at 
                         Colleges of Education

       The House bill includes a provision under Title VII to 
     establish a priority under the Graduate Assistance in Areas 
     of National Need (GANN) program to fund eligible grantees 
     aimed at educating individuals to become professors in the 
     fields of special education, bilingual education and math and 
     science education.
       The Senate includes no similar provision.
       The Senate recedes with an amendment to create a new 
     program under Title II to establish graduate fellowships to 
     prepare individuals to become university faculty who will 
     prepare highly qualified teachers in fields of special 
     education, bilingual education and English as a second 
     language, mathematics and science.
       The Conferees recognize the critical shortage of faculty in 
     teacher preparation programs in these areas. This program 
     will ensure that teacher preparation programs have the 
     capacity to prepare highly qualified teachers in these high 
     need fields.

                       Part C--General Provisions

     Section 261. Limitations
       The Senate amendment and the House bill include similar 
     provisions that indicate that nothing in this Title (Senate) 
     or Part (House) shall be construed to authorize federal 
     control over private, religious, or home schools, however 
     defined under state law. The Senate amendment also provides 
     that nothing in this title shall be construed to authorize 
     the Secretary to establish any national system of teacher 
     certification or licensure.
       The House recedes.
       The Conferees intend that nothing in this section shall be 
     constructed to limit individual states from collaborating 
     with other states to update, revise, or create state systems 
     of teacher certification or licensure, create similar or 
     identical certification or licensure requirements, or 
     establish certification or licensure reciprocity agreements.
       The House bill provides that nothing in this Title shall be 
     construed to alter or otherwise affect the rights, remedies, 
     and procedures afforded to the employees of local educational 
     agencies under federal, state, or local laws (including 
     applicable regulations or court orders), or under the terms 
     of collective bargaining agreements, memoranda of 
     understanding, or other agreements between such employees and 
     their employers, including the right of the employees to 
     engage in collective bargaining with their employers.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to align the language 
     with a similar provision in the Elementary and Secondary 
     Education Act.

                      TITLE III--INSTITUTIONAL AID

     Section 301. Program purpose
       The Senate amendment and the House bill contain similar 
     provisions regarding the expansion of authorized activities 
     under Part A. The Senate amendment includes remedial 
     education and English language instruction courses as part of 
     any innovative, customized courses designed to help students 
     with program completion.
       The Senate recedes with an amendment to add remedial 
     education and English language instruction as part of any 
     innovative, customized courses designed to help students with 
     program completion.
     Section 302. Definitions; eligibility
       The Senate amendment corrects a cross reference in the 
     institutional eligibility definition by removing the 
     reference to Subsection (c), which defines the term 
     ``endowment fund,'' and instead referring to Subsection (d), 
     which defines the term ``enrollment of needy students.''
       The House bill contains no similar provision.
       The House recedes.
     Section 303. American Indian tribally controlled colleges and 
         universities
       The Senate amendment and the House bill redefine a Tribal 
     College or University (TCU) as an institution that qualifies 
     for funding under the Tribally Controlled College and 
     University Assistance Act (TCCUAA) or the Navajo Community 
     College Assistance Act of 1978 or, that is cited in Section 
     532 of the Equity in Educational Land-Grant Status Act 
     (EELGSA). The Senate amendment and the House bill amend the 
     list of authorized activities and programs of a TCU and 
     authorize the acquisition of real property adjacent to a TCU 
     campus.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill allows faculty exchanges and fellowships to 
     assist faculty with attaining a degree in tribal governance 
     or policy. The House bill also permits funds to be used to 
     provide academic instruction in tribal governance or tribal 
     public policy.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment allows funds to be used for education 
     and counseling services to improve the financial and economic 
     literacy of students or their families, and developing 
     distance education technologies.
       The House bill contains a similar provision with respect to 
     distance education technologies.
       The House recedes.
       The Senate amendment and the House bill amend the 
     application process. The Senate amendment specifies that the 
     Secretary shall establish application requirements in a 
     manner that simplifies and streamlines the process.
       The House recedes with an amendment to clarify that the 
     streamlined process requirement applies to grants under this 
     Section.
       The Senate amendment and the House bill establish a new 
     allocation formula whereby

[[Page 17222]]

     the Secretary may reserve thirty percent of the 
     appropriations for one-year construction, maintenance and 
     renovation grants of not less than $1,000,000. The House 
     requires such reservation to begin with fiscal year 2009.
       The House recedes.
       The Senate amendment and the House bill provide that the 
     Secretary shall give preference to institutions that have not 
     received a prior award. The House bill specifies that such 
     preference applies to institutions that have not received an 
     award under this Section for a previous fiscal year.
       The Senate recedes.
       The Senate amendment and the House bill specify that of any 
     remaining funds, sixty percent shall be allocated to eligible 
     institutions based on Indian student count and forty percent 
     equally distributed among eligible institutions. The minimum 
     grant amount is $500,000.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill specify that no TCU 
     that is eligible for and receives funds under this Section 
     shall concurrently receive funds under other provisions of 
     this Part or Part B.
       The Senate and the House recede with an amendment to 
     clarify that a TCU receiving funds under this Part shall not 
     concurrently receive funds under this Part, Part B, and Title 
     V.
       The Senate amendment and the House bill provide that the 
     wait-out period (Section 313(d) of the Higher Education Act 
     (HEA)) shall not apply to institutions that are eligible for 
     funds under this Section.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 304. Alaska Native and Native Hawaiian-serving 
         institutions
       The Senate amendment expands the authorized activities to 
     include education or counseling services designed to improve 
     the financial and economic literacy of students or their 
     parents.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike ``students'' 
     parents'' and insert ``students'' families.''
     Section 305. Predominantly Black institutions
       The Senate amendment defines ``educational and general 
     expenditures,'' for purposes of this Section, as the term is 
     defined in Section 312 of the Higher Education Act (HEA). 
     Additionally, the Senate amendment specifies that the 
     Secretary's existing waiver authority described in Section 
     392(b) of the HEA is applicable under this program.
       The House bill contains no similar provisions.
       The House recedes.
       The Senate amendment and House bill have similar provisions 
     with respect to waiving the requirement that eligible 
     institutions have low, per full-time equivalent undergraduate 
     student expenditures relative to the average educational and 
     general expenditure per full-time equivalent undergraduate 
     students at institutions that offer similar instruction.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and House bill include similar 
     definitions of ``enrollment of needy students''. The Senate 
     amendment counts students who attended a public or nonprofit 
     secondary school in a district that was eligible for 
     assistance under Part A of Title I in ESEA and where 
     enrollment of students counted under Section 1113(a)(5) of 
     ESEA exceeds thirty percent. The House bill includes students 
     who attended a secondary school that was a high need school 
     during any year of the student's attendance.
       The House recedes.
       The Senate amendment specifies that the Secretary shall 
     give priority to institutions with large numbers or 
     percentages of students described in Subsections (b)(2)(A).
       The House bill contains no similar provision.
       The House recedes.
       The House bill specifies that the Section 393 (Application 
     Review Process) of the HEA does not apply to Predominantly 
     Black Institution applicants.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill specifies that no Predominantly Black 
     Institution (PBI), as defined under 318, that applies for and 
     receives funding under this Section may receive assistance 
     under Part B of this Title.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that a PBI 
     receiving funds under this Part should not concurrently 
     receive funds under other provision of this Part, Part B, and 
     Title V.
       The Senate amendment authorizes appropriations of such sums 
     as may be necessary for fiscal year 2008 and each of the five 
     succeeding fiscal years.
       The House bill provides an authorization of appropriations 
     in Title III of $75,000,000 for fiscal year 2009 and such 
     sums as may be necessary for each of the four succeeding 
     fiscal years.
       The Senate and the House recede with an amendment to 
     authorize $75,000,000 for fiscal year 2009 and such sums as 
     may be necessary for each of the five succeeding years.
     Section 306. Native American-Serving, nontribal institutions.
       The Senate amendment and the House bill establish a new 
     program for Native American-serving, nontribal institutions 
     of higher education to improve and expand the institutions' 
     capacity to serve Native Americans.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an amendment to clarify that grants 
     shall be used by Native American-serving, nontribal 
     institutions of higher education to serve Native Americans 
     and low-income individuals.
       The Senate amendment specifies a minimum grant amount of 
     $200,000 for grants under Title III.
       The House bill contains no similar provision.
       The House recedes with an amendment to clarify that the 
     minimum grant provision applies only to this Section.
     Section 307. Assistance to Asian American and Native American 
         Pacific Islander-serving institutions
       The House bill establishes a new grant program for Asian 
     American and Native American Pacific Islander-serving 
     institutions. Grantees are authorized to use funds for 
     activities similar to those authorized for other Title III 
     grantees. The House bill specifies that the Secretary shall 
     ensure equitable distribution of the grants among all 
     eligible institutions of higher education and shall give 
     priority to institutions of higher education that serve a 
     significant percentage of Asian American or Native American 
     Pacific Islander students.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to clarify that grants 
     shall be used by Asian American and Native American Pacific 
     Islander-serving institutions of higher education to serve 
     Asian Americans, Native American Pacific Islanders and low-
     income individuals.
     Section 308. Part B definitions
       Both the Senate amendment and the House bill require the 
     Secretary to consult with the Commissioner of the National 
     Center for Education Statistics (NCES) regarding the 
     professional and academic areas in which blacks are 
     underrepresented.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 309. Grants to institutions
       The Senate amendment corrects a cross reference to the 
     authorization of funds, by striking ``360(a)(2)'' and 
     inserting ``399(a)(2).''
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill expand the list of 
     authorized activities to include funding for education or 
     counseling services designed to improve financial and 
     economic literacy of students or their parents. The House 
     bill specifies that such information shall focus on student 
     indebtedness and student assistance programs under Title IV. 
     The House bill additionally authorizes the acquisition of 
     real property in connection with the construction, 
     renovation, or addition to or improvement of campus 
     facilities.
       The Senate recedes with an amendment to strike ``parents'' 
     and insert ``families.''
       The House bill additionally authorizes technical assistance 
     or services necessary for the implementation of activities 
     described in the grant application. Not more than two percent 
     of the grant amount may be used for this purpose.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike technical 
     assistance.
     Section 310. Allotments
       The House bill changes the minimum allotment.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 311. Professional or graduate institutions
       The House bill specifies that any funds awarded for the 
     five year grant period authorized under this Section and that 
     are obligated during such five year period may be expended 
     during the ten year period beginning on the first day of such 
     five year period.
       The Senate amendment contains no similar provision.
       The Senate amendment and the House bill authorize the 
     acquisition of real property in connection with the 
     construction, renovation, addition to, or improvement of 
     campus facilities. The House bill does not specify that such 
     property be adjacent to the campus.
       The House recedes.
       The Senate amendment and the House bill authorize education 
     or counseling services designed to improve the financial and 
     economic literacy of students or their parents. The House 
     bill requires that such information focus on student 
     indebtedness and student assistance programs under Title IV.
       The Senate recedes with an amendment to strike ``parents'' 
     and insert ``families.''
       The Senate amendment authorizes tutoring and counseling 
     services to improve academic success.

[[Page 17223]]

       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment includes additional requirements 
     regarding the application.
       The House bill contains no similar provision.
       The House recedes.
       The House bill authorizes funds to be used for technical 
     assistance or services necessary for the implementation of 
     the activities described in the grant application. Not more 
     than two percent of the grant amount may be used for this 
     purpose.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike technical 
     assistance.
       The Senate amendment and the House bill expand the list of 
     eligible graduate and professional schools/programs under 
     Part B of Section 326 of the HEA. The Senate amendment adds 
     qualified graduate programs at Alabama State University, 
     Coppin State University, Prairie View A&M University, 
     Fayetteville State University, Delaware State University;; 
     Langston University, West Virginia State University, Kentucky 
     State University, and Grambling State University. The House 
     bill adds Alabama State University; Bowie State University, 
     Delaware State University; Langston University; Prairie View 
     A&M University, and the University of the District of 
     Columbia Law School.
       The Senate recedes.
       Under current law any funds in excess of $28,600,000 are 
     made available to institutions using a formula with various 
     factors. The Senate amendment amends the allocation formula 
     with respect to the number of students enrolled in the 
     qualified graduate programs of the eligible institution or 
     program, for which the institution or program received and 
     allocated funding under this Section in the preceding year.
       The House bill contains no similar provision.
       The Senate amendment includes as an element of the formula 
     developed by the Secretary the percentage of students at the 
     institution who are Black American students and minority 
     students receiving their first professional, master's, or 
     doctoral degree from the institution of higher education or 
     program in the academic year preceding the academic year for 
     which the determination is made, represents of the total 
     number of Black American students and minority students in 
     the United States who receive their first professional, 
     master's, or doctoral degree in the professions or 
     disciplines related to the course of study at such 
     institution or program, respectively, in the preceding 
     academic year.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike references to 
     ``Black American'' and insert ``African American.''
       The House bill changes the funding reservation structure to 
     reserve the first $54,500,000 appropriated for the eighteen 
     grantees listed prior to 2008, and reserves $6,000,000 for 
     the six institutions added by the House bill.
     Section 312. Unexpended funds
       The House bill provides that any funds paid to an 
     institution of higher education that are not expended or used 
     for the purposes for which the funds were paid during the 
     five year period following the date of the initial grant 
     award, may be carried over and expended during the succeeding 
     five year period, if such funds were obligated for a purpose 
     for which the funds were paid during the five year period 
     following the date of the initial grant award.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 313. Endowment challenge grants
       The House bill increases the maximum grant amount to 
     $1,000,000 and the minimum grant amount to $100,000.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 314. Historically Black college and university 
         capital financing
       The House bill amends the definition of a ``capital 
     project'' by clarifying that such project includes the 
     construction or acquisition of a facility, equipment or 
     fixture that is essential to maintaining the accreditation of 
     the institution by an accrediting agency or association 
     recognized by the Secretary.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike the 
     reference to a ``nationally recognized accrediting agency or 
     association'' in current law.
       The House bill amends the definition of ``designated 
     bonding authority'' to include ``any private, for-profit 
     corporation selected by the Secretary,'' rather than ``the 
     private, for-profit corporation selected by the Secretary'', 
     in order to allow multiple bonding authorities to operate 
     concurrently.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill further amends the definition of 
     ``designated bonding authority'' to clarify that bonds issued 
     by such authority are for the purposes of financing capital 
     projects.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill includes definitions of ``eligible 
     foundation'' and ``borrower.''
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill reduces to one percent the current maximum 
     of two percent of the proceeds from qualified bonds that the 
     designated bonding authority may retain for issuing bonds.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill specifies that the designated bonding 
     authority may not charge interest on loans in excess of one 
     percent.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill specifies that, for loans closed before June 
     15, 2008, any remaining loan proceeds deposited in escrow 
     that are made available to the Secretary to pay principal and 
     interest on bonds in the event of delinquency in repayment 
     shall be returned to the borrower within ninety days of the 
     scheduled repayment of the loan.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to eliminate the 
     restriction on the applicability of the provision to loans 
     closed by a date certain, to provide that any remaining loan 
     proceeds deposited in escrow shall be returned to the 
     borrower within 120, rather than ninety days of the scheduled 
     repayment of the loan, and to update a reference in current 
     law with respect to the amount of loan proceeds that are 
     deposited in escrow.
       The House bill specifies that any loan collateralization 
     shall not exceed one-hundred percent of the loan amount.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to allow loan 
     collateralization to exceed one-hundred percent only if 
     required by the Secretary.
       The House bill specifies that, for loans closed after June 
     15, 2008, the designating bonding authority shall establish a 
     reserve account into which shall be deposited an origination 
     fee of one percent with respect to each loan. The account 
     shall be available to the Secretary to pay principal and 
     interest on bonds in the event of delinquency in loan 
     repayment.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill provides for loan forbearance and deferment 
     on terms agreed to in writing between the designated bonding 
     authority and a borrower, subject to the approval of the 
     Secretary in consultation with the Historically Black 
     Colleges and Universities (HBCU) Capital Financing Advisory 
     Board.
       The Senate amendment contains no similar provision.
       The House recedes.
       With respect to the limitations on federal insurance for 
     bonds issued by the designated bonding authority, the House 
     bill increases the maximum amount of aggregate principal and 
     accrued unpaid interest that may be outstanding at any time 
     from $375,000,000 to $1,100,000,000 and, of this amount, 
     allots $733,333,333 for loans to private HBCU's and 
     $366,666,666 for loans to public HBCU's.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to increase the 
     allotment for loans to public HBCU's to $366,666,667.
       The House bill directs the Secretary to specify up to three 
     designated bonding authorities authorized under Part D and to 
     provide for periodic review of designated bonding authority 
     authorizations no less frequently than every three years.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to strike the 
     requirement that the Secretary specify up to three designated 
     bonding authorities, and insert a requirement that the 
     Secretary ensure that the selection process for the 
     designated bonding authority is conducted on a competitive 
     basis and that the evaluation and selection process is 
     transparent. The Secretary is directed to review the 
     performance of the designated bonding authority after the 
     third year of the insurance agreement and to implement a 
     revised competitive selection process if determined necessary 
     by the Secretary, in consultation with the HBCU Capital 
     Financing Advisory Board.
       The Senate amendment requires that not later than ninety 
     days after the date of enactment of the [Short Title], the 
     Secretary shall submit to the authorizing committees a report 
     on the progress of the Department of Education in 
     implementing the recommendations made by the Government 
     Accountability Office (GAO) in October 2006, for improving 
     the HBCU Capital Financing Program.
       The House bill contains no similar provision.

[[Page 17224]]

       The House recedes with an amendment to provide the 
     Secretary 120 days after the date of enactment of this Act to 
     submit the report to the authorizing committees.
       The Conferees recognize the prominent role that HBCU's have 
     played in our Nation's history. The Conferees also appreciate 
     that the HBCU Capital Financing Program has helped to 
     strengthen HBCU's by providing access to low-cost financing 
     to fund infrastructure improvements. The Conferees intend for 
     the Secretary to implement improvements that will further 
     enhance the program for HBCU's, including those identified by 
     the GAO in its October 2006 report on the program. The 
     Conferees also intend for the Secretary to continue the 
     Department of Education's reported efforts to explore other 
     options to improve the program. In particular, the Conferees 
     intend for the Secretary to explore alternative methods of 
     compensating the designated bonding authority that would 
     reduce the cost of bond issuance incurred by participating 
     HBCU's, while simultaneously ensuring that the compensation 
     is sufficient to ensure interest on the part of companies to 
     compete to become the program's designated bonding authority. 
     Currently, HBCU's that participate in the program pay up to 
     two percent of the proceeds of bonds issued to the designated 
     bonding authority. The Conferees intend for the Secretary to 
     consider, among other options, a fee structure that would 
     charge up to two percent of the proceeds from bond issuance 
     but not above a reasonable amount (to be determined after an 
     assessment of the actual costs of bond issuance). To ensure 
     continued improvements are made to the program and that it is 
     meeting the needs of HBCU's, the Conferees intend to engage 
     in robust oversight of the Department of Education's 
     administration of the program.
       The House bill increases from nine to eleven the number of 
     members of the HBCU Capital Financing Advisory Board, 
     increases from two to three the number of members required to 
     be presidents of public HBCU's, and designates the President 
     of the Thurgood Marshall Scholarship Fund as a member of the 
     Advisory Board.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike 
     ``Scholarship'' and insert ``College'' to correct the Title 
     of the Thurgood Marshall College Fund.
     Section 315. Programs in STEM fields
       The House bill creates a new subpart 2, ``Programs in STEM 
     Fields'', and a new YES Partnership Grant, that provides 
     support to eligible partnerships for minority youth 
     engagement in science, technology, engineering and 
     mathematics, through outreach and experiential learning. The 
     partnership must include at least one institution of higher 
     education eligible for assistance under Title III or V, at 
     least one high-need local education agency; and at least two 
     community organizations. The House bill specifies a minimum 
     grant amount of $500,000.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The House bill amends Section 361(4) of the HEA, 
     eligibility for grants, to clarify that public institutions 
     of higher education may be included in the consortia. The 
     House bill also includes research laboratories at the 
     Department of Defense or the National Science Foundation as 
     possible partners in the consortia.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to clarify that 
     institutions of higher education include both public and 
     private institutions; to replace the research laboratories 
     affiliated with National Science Foundation with laboratories 
     affiliated with the National Institute of Health, and to 
     expand eligibility to relevant divisions or offices of NASA 
     the National Oceanic and Atmospheric Administration, the 
     National Science Foundation, and the National Institute of 
     Standards and Technology.
     Section 316. Investing in historically Black colleges and 
         universities and other minority serving institutions
       The House bill includes a provision to move Part J of Title 
     IV of the College Cost Reduction and Access Act to Title III.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 317. Technical assistance
       The House bill authorizes the Secretary to provide 
     technical assistance to eligible institutions to prepare them 
     to qualify, apply for and maintain a grant under Title III.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 318. Waiver authority
       The House bill provides the Secretary with waiver authority 
     for institutions that are located in an area affected by a 
     Gulf Hurricane. Specifically the Secretary shall waive the 
     following for each fiscal year 2009 through 2013: the data 
     requirements for eligibility under Section 312 (b) of the 
     HEA; the wait-out period for Part A grants; allotment 
     requirements for Part B; and the use of the funding formula 
     for the historically Black college and university graduate 
     and professional institutions. The House bill makes available 
     to each affected institution of higher education an amount 
     that is not less than the amount made available to such 
     institutions under this Title for fiscal year 2006.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to provide for a 
     ratable reduction in the event of reduced appropriations and 
     to change the waiver extension to three mandatory years and 
     two permissible years.
       The House bill includes TCU's in the definition of an 
     affected institution.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill includes in the definition of an affected 
     institution Alaskan Native-serving and Native Hawaiian-
     serving institutions.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill defines ``area affected by a Gulf hurricane 
     disaster'' and ``Gulf hurricane disaster'' as they are 
     defined in Section 209 of the Higher Education Hurricane 
     Relief Act of 2005.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 319. Authorization of appropriations
       The Senate amendment authorizes ``such sums as may be 
     necessary'' for all Title III programs for fiscal year 2008 
     and each of the five succeeding years.
       The House bill provides specific sums for fiscal year 2009 
     and such sums as may be necessary for each of the four 
     succeeding years.
       The Senate recedes with an amendment to authorize 
     appropriations for fiscal year 2009 of: $135,000,000 for Part 
     A other than American Indian Tribally Controlled Colleges and 
     Universities, $75,000,000 for Predominantly Black 
     Institutions, $30,0000,000 for American Indian Tribally 
     Controlled Colleges and Universities, $15,000,000 for Alaska 
     Native and Native Hawaiian-Serving Institutions, $30,000,000 
     for Assistance to Asian American and Native American Pacific 
     Islander-Serving Institutions, $25,000,000 for Native 
     American-Serving, Nontribal Institutions, $375,000,000 for 
     Strengthening Historically Black Colleges and Universities, 
     $125,000,000 for Historically Black Graduate Institutions, 
     $10,000,000 for Endowment Challenge Grants for Institutions 
     Eligible for Assistance Under Part A or Part B, $185,000 for 
     Historically Black College and University Capital Financing, 
     such sums as necessary for Technical Assistance, $12,000,000 
     for the Minority Science and Engineering Improvement Program, 
     and such sums as may be necessary for YES Partnership Grants, 
     and such sums as may be necessary for each of the five 
     succeeding fiscal years for each program.
     Section 320. Technical corrections
       The Senate amendment and the House bill are identical with 
     respect to the technical amendments.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.

                      TITLE IV--STUDENT ASSISTANCE

  Part A--Grants to Students in Attendance at Institutions of Higher 
                               Education

     Section 401. Federal Pell grants
       The Senate amendment extends the program authority for Pell 
     to 2013.
       The House bill has no similar provision.
       The Senate recedes.
       The Senate amendment increases the authorized maximum Pell 
     award is as follows: $5,400 for academic year 2008-2009; 
     $5,700 for 2009-2010; $6,000 for 2010-2011; and $6,300 for 
     2011-2012. The House bill increases the authorized maximum 
     Pell award to $9,000 for each of the academic years.
       The Senate and House recede with an amendment to increase 
     the authorized maximum Pell award as follows: $6,000 for the 
     academic year 2009-2010; $6,400 for 2010-2011; $6,800 for 
     2011-2012; $7,200 for 2012-2013; $7,600 for 2013-2014 and 
     $8,000 for 2014-2015.
       The Senate amendment changes the minimum Pell award to ten 
     percent of the appropriated maximum Pell award.
       The House contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill authorize a year-
     round Pell grant. The Senate amendment provides up to two 
     Pell grant awards in a single academic year for students who 
     enroll at least half-time in a four-year or two-year program 
     of instruction. The House bill is the same except that it 
     allows a student enrolled in certificate program to be 
     eligible for year-round Pell grants.
       The House recedes with an amendment to specify that 
     students enrolled in a certificate or diploma program at a 
     two-year or four-year institution of higher education are 
     also eligible to receive up to two Pell grants in one award 
     year.
       The Conferees recognize the importance of enabling students 
     to accelerate the completion of their programs of study by 
     enrolling in school year-round.
       The House bill denies eligibility for a Pell Grant to 
     individuals who are subject to an involuntary civil 
     commitment for committing a forcible or non-forcible sexual 
     offense.
       The Senate amendment contains no similar provision.

[[Page 17225]]

       The Senate recedes.
       The House bill makes technical amendments to provisions 
     pertaining to the disbursement of the mandatory Pell Grant 
     funds, emphasizing that the mandatory Pell grant funds and 
     the discretionary Pell grant funds may be disbursed in the 
     same manner during the same timeframe. The House bill 
     specifies that the mandatory funds shall remain available for 
     two full fiscal years to be consistent with discretionary 
     Pell Grant funds.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment and the House bill limit Pell Grant 
     receipt to eighteen semesters or an equivalent determined by 
     the Secretary. The House bill also specifies that twenty-
     seven quarters is equivalent to this limit.
       The House recedes.
       The Senate amendment states that the eighteen-semester 
     limit is determined without regard to attendance status 
     (full-time or part-time) and includes time prior to the date 
     of enactment. The House bill specifies that only the amount 
     (or percent) of time that the student enrolls shall be 
     counted against the time limit. The House bill also applies 
     the limit only to students who receive their first Pell Grant 
     after July 1, 2008.
       The Senate recedes.
       The House bill sets the expected family contribution (EFC) 
     to $0 for any Pell eligible student whose parent or guardian 
     was a member of the Armed Forces and died in Iraq or 
     Afghanistan after September 11, 2001. The student must also 
     be eighteen years or less or enrolled part-time or full-time 
     at an institution of higher education when the parent died.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to specify that to be 
     eligible, a student must have been twenty-four years of age 
     or less, or enrolled at least part-time at an institution of 
     higher education, at the time of parent's death. The 
     Secretary of Defense and the Secretary of Veterans Affairs 
     shall provide the Secretary of Education with the information 
     necessary to determine which students meet the requirement.
       The Conferees intend for the Secretaries of Defense and 
     Veterans Affairs to work with the Secretary of Education to 
     design mechanisms by which potential beneficiaries of this 
     provision may be made known to the Secretary of Education. 
     The Conferees intend for the Secretaries of Defense and 
     Veterans Affairs to notify individuals of the conditions 
     under which they may be eligible for an expected family 
     contribution of zero, and provide direction for obtaining 
     this benefit. The Conferees do not intend for this provision 
     to require the addition of any new questions to the Free 
     Application for Federal Student Aid.
     Section 402. Academic competitiveness grants
       The Conferees agreed to adopt the following provisions in 
     the Senate amendment and House bill, as indicated, but the 
     provisions were struck from the conference agreement because 
     they were enacted in the ``Ensuring Continued Access to 
     Student Loans Act of 2008'' (PL 110-227).
       The Senate amendment and the House bill remove the term 
     ``academic'' from all references to year of study in the 
     Academic Competitiveness (AC) and National Science and 
     Mathematics Access to Retain Talent (SMART) grant program 
     provisions. However, the House bill replaces ``academic'' 
     with ``award.''
       The Senate recedes.
       The Senate amendment and the House bill eliminate the 
     requirement that eligible students must be full-time. Both 
     the Senate amendment and the House bill extend AC and SMART 
     grant eligibility to eligible non-citizens. The Senate 
     amendment states that a student must be Pell-eligible and the 
     House bill states that the student must be eligible for 
     federal student aid.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require that a 
     student be enrolled at least half time to receive AC or SMART 
     grants and that for students enrolled less-than-full time, 
     the amount of the grant is reduced in the same manner as Pell 
     Grants.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill eliminates the requirement that a rigorous 
     program must be established by the State or local education 
     agency and replaces it with courses that prepare students for 
     college and work that are beyond the basic graduation 
     requirements and that are recognized by the designated State 
     official, or with respect to any private school or home 
     school, the designated school official for such school, 
     consistent with State law.
       The Senate amendment has no similar provision.
       The Senate recedes.
       The House bill extends AC grant eligibility to students who 
     were previously enrolled in a program of undergraduate 
     education as a part of their secondary education.
       The Senate amendment has no similar provision.
       The Senate recedes.
       The House bill extends eligibility to students enrolled in 
     certificate programs. The Senate amendment specifies that the 
     extension of eligibility is for a student's first year for 
     students enrolled in certificate programs lasting at least 
     one year, and for a second year in the case of students 
     enrolled in certificate programs lasting at least two years.
       The House recedes.
       The Senate amendment and the House bill redefine which 
     foreign language majors are eligible for SMART grants by 
     removing the requirement that the foreign language must be 
     approved by the Secretary and the Director of National 
     Intelligence, and referencing the list of critical foreign 
     languages published in the Federal Register on August 2, 
     1985. The Secretary may set priorities according to national 
     security, economic competitiveness and educational needs.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill extend eligibility 
     for SMART grants to students studying qualified subjects who 
     are enrolled in institutions of higher education that do not 
     permit declaration of a major. The Senate amendment also 
     extends eligibility to students who are required as part of 
     their degree program to undertake a rigorous course of study 
     in mathematics, biology, chemistry and physics.
       The House recedes with an amendment to require that 
     students enrolled in institutions that do not allow for a 
     declaration of a major, that such students must have a 
     cumulative grade point average of at least 3.0, unless they 
     are enrolled in a degree program that requires a rigorous 
     course of study in mathematics, biology, chemistry, and 
     physics, in which there is no specific grade point average.
       The Senate amendment extends a fifth year of eligibility 
     for SMART grants to students in programs that require five 
     full years of course work.
       The House bill has no similar provision.
       The House recedes.
       The House bill clarifies that the $750 grant amount is for 
     one academic year, during the student's first year of 
     enrollment, that the $1,300 grant amount is for one academic 
     year, during the student's second year of enrollment, and 
     that the $4,000 grant amount is for one academic year, during 
     each of the student's third and fourth years of enrollment.
       Senate amendment has no similar provision.
       The Senate recedes.
       The Senate amendment specifies that the Secretary may not 
     award a grant to any student for credit received prior to the 
     enactment of HERA. The Senate amendment clarifies that the 
     Secretary may not award more than one grant to a student for 
     each year of study through the fifth year. The Senate 
     amendment requires that institutions of higher education make 
     payments for AC and SMART grants in the same manner as Pell. 
     The Senate amendment specifies that the funds shall remain 
     available for a succeeding fiscal year.
       The House bill has no similar provisions.
       The House recedes.
       In addition, Conferees agree to adopt the following changes 
     to the ``Ensuring Continued Access to Student Loans Act of 
     2008'' (PL 100-227): to waive master calendar and negotiated 
     rulemaking for the changes to the Academic Competitiveness 
     and SMART grant program included in that statute; to make the 
     changes to the program take effect starting on July 1, 2009; 
     to require the appropriate official, consistent with State 
     law, to submit eligible rigorous curricula to the Secretary 
     at such time as the Secretary may require; and to clarify 
     that a rigorous curricula also includes one that is 
     recognized as such by the Secretary in regulations 
     promulgated to carry out this section, as such regulations 
     were in effect on May 6, 2008.
     Section 403. Federal TRIO programs
       The Senate amendment and the House bill extend the duration 
     of TRIO grants from four to five years, increase minimum 
     grant amounts for each of the TRIO programs to $200,000 
     except the evaluation grants which are raised to $170,000, 
     prioritize high quality service delivery, and prohibit the 
     Secretary from providing assistance to fraudulent programs. 
     The Senate amendment and the House bill clarify that the 
     Secretary may award grants to different campuses of an 
     institution. Both the Senate and the House make the same 
     amendment concerning prior experience and data. The Senate 
     amendment and the House bill make the same amendment 
     concerning the objectives of the Postbaccalaureate 
     Achievement Program, and Educational Opportunity Centers. The 
     Senate amendment and the House bill make conforming 
     amendments to the subparagraph on the Secretary's waiver 
     authority and subsection (e) (Documentation of status as a 
     low-income individual). The Senate amendment and the House 
     bill change the definitions subsection and add new 
     definitions for the terms ``different campus'' and 
     ``different population.'' The Senate amendment and the House 
     bill extend eligibility for the Postbaccalaureate Achievement 
     program to Native Hawaiians and Pacific Islanders.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill clarifies that community-based organizations 
     are eligible for the TRIO programs and removes a requirement 
     in current law that secondary schools be eligible

[[Page 17226]]

     only in exceptional circumstances. The House bill extends the 
     duration for certain grants in order to synchronize current 
     award cycles and requires the Secretary to consider the 
     number, percentages and needs of eligible participants in 
     awarding grants.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to specify that 
     ``organizations'' includes community-based organizations, and 
     to clarify that secondary schools are eligible grantees as 
     appropriate to the purposes of each program.
       The additional language clarifies that secondary schools 
     can serve as eligible grantees for TRIO programs that take 
     place in secondary schools (e.g., Upward Bound, Upward Bound 
     Math Science, and Talent Search).
       It is the understanding of the Conferees that, when 
     assessing the level of need of an eligible entity for a grant 
     or contract under this chapter, the Department of Education 
     should consider the numbers, percentages, and needs of the 
     eligible students rather than the characteristics of the 
     entity both for pre-college and college-level programs. 
     Focusing on the level of need of a school could 
     unintentionally mask the level of need of students for such 
     services. This provision clarifies that the application 
     process should focus on the needs of the eligible students 
     rather than solely on the characteristics of the institutions 
     attended.
       The House bill requires that all TRIO grantees identify 
     services for foster care youth and to ensure such youth 
     receive services. The House bill further clarifies that 
     homeless youth are eligible to participate in programs under 
     this chapter.
       The Senate amendment makes the same amendments, but does so 
     in each TRIO program.
       The Senate recedes with an amendment to require grantees to 
     identify and make services available for foster care and 
     homeless youth, and to clarify that foster care youth are 
     eligible to participate in programs under this chapter.
       The Senate amendment and the House bill set specific 
     requirements that outcome criteria must measure the quality 
     and effectiveness of an entity's program. Both the Senate 
     amendment and the House bill require the Secretary to compare 
     the results with the target established in the application.
       The Senate amendment requires the entity to compare the 
     results with the target.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill amend the outcome 
     criteria of Talent Search. The House bill also adds language 
     on completing a rigorous secondary school program. The Senate 
     amendment adds language on the postsecondary education 
     completion of students in Talent Search.
       The Senate and the House recede with an amendment to 
     include both completion of a rigorous secondary school 
     program and postsecondary education completion as outcome 
     criteria for students in Talent Search.
       It is the understanding of the Conferees that grantees 
     under this subchapter receive a low dollar amount per 
     student, which may make measuring postsecondary completion of 
     their students difficult. The Department of Education, should 
     work with grantees to design and implement outcome measures 
     that will not result in reduction of services to current 
     students.
       The Senate amendment and the House bill make the same 
     amendment concerning the outcome criteria of Upward Bound. 
     The House bill also adds language on completing a rigorous 
     secondary school program.
       The Senate recedes with an amendment to include 
     postsecondary education completion and to specify that 
     students graduate from secondary school with a regular 
     diploma in the standard number of years as outcome criteria 
     for students in Upward Bound.
       The Senate amendment and the House bill make the same 
     amendment concerning the outcome criteria of Student Support 
     Services.
       The House recedes with an amendment to clarify the outcome 
     criteria relating to the completion of degree programs.
       The House bill adds a new appeals process in the event that 
     the Secretary does not accept an application or does not fund 
     an application.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to create an appeal 
     process for TRIO program applicants, in cases where the 
     applicant has evidence of a specific technical, 
     administrative, or scoring error made by the Department, an 
     agent of the Department, or a peer reviewer on an 
     application, which includes review by a secondary review 
     panel, to formally appeal their grant scores.
       The need for such a process is evidenced by past errors 
     including the miscalculation of prior experience points by 
     the Department, applications lost or wrongly determined to be 
     incomplete by the Department or its agent (such as 
     Grants.gov), and misunderstandings by peer reviewers of the 
     program purpose of a grant applicant and the population that 
     that program serves. By including this language, Conferees 
     intend to prevent future errors from wrongly denying programs 
     funding and ensure that all TRIO applicants are subject to a 
     fair and transparent application process.
       The Senate amendment authorizes TRIO at such sums as 
     necessary for fiscal year 2008 and the five succeeding fiscal 
     years.
       The House bill established the TRIO authorization level at 
     $950,000,000 for fiscal year 2009 and such sums as necessary 
     for the four succeeding fiscal years.
       The Senate recedes with an amendment to authorize 
     $900,000,000 for fiscal year 2009 and such sums as necessary 
     for each of the five succeeding fiscal years.
       The Senate amendment amends veterans eligibility for Upward 
     Bound to include anyone who served on active duty more than 
     180 days after January 31, 1955; served on active duty after 
     January 31, 1955 and was discharged because of a service 
     connected disability; or was a member of the reserves and 
     called to active duty for more than 180 days.
       The House bill amends veterans eligibility for Upward Bound 
     to include anyone who served on active duty more than 180 
     days; served on active duty and was discharged because of a 
     service connected disability; was a member of the reserves 
     and called to active duty for more than 180 days; or was a 
     member of the reserves who served on active duty in support 
     of a contingency operation on or after September 11, 2001.
       The Senate recedes with an amendment to specify that a 
     member of the reserves called to active duty for more than 
     thirty days is eligible for Upward Bound.
       The Senate amendment amends the authorizing language for 
     the Talent Search program, by removing language on 
     educational potential and ability to complete and adding 
     language regarding encouraging eligible youths and 
     facilitating students' application for aid. The Senate 
     amendment adds a new subsection to specify required and 
     permissible services.
       The House bill contains no similar provisions.
       The House recedes with an amendment to move academic 
     tutoring to a permissible service and to require connections 
     to education or counseling services designed to improve 
     financial literacy, instead of requiring the provision of 
     those services.
       The Senate amendment provides language authorizing Talent 
     Search to give support to students who are limited English 
     proficient, homeless, and who are in or aging out of foster 
     care.
       The House bill authorizes Talent Search to give support to 
     students who are limited English proficient, groups or 
     persons from disadvantaged backgrounds that have particular 
     lower education access or outcomes, or disconnected students.
       The House recedes with an amendment to add students from 
     groups that are traditionally underrepresented in 
     postsecondary education, students with disabilities, and 
     other disconnected students.
       The Conferees recognize that students who are limited 
     English proficient, students from groups that are 
     traditionally underrepresented in higher education, students 
     with disabilities, homeless students, youth aging out of 
     foster care, or other disconnected students, such as pregnant 
     or parenting teens or youth who have been involved in the 
     juvenile justice system, have additional challenges in 
     accessing postsecondary educational opportunities and 
     persisting until program completion. Therefore, the Conferees 
     encourage TRIO grantees, as appropriate, to offer programs 
     and activities that are specially designed to address the 
     unique challenges these students face as they work to achieve 
     a college degree.
       Further, this provision seeks to increase the number of 
     minority men in higher education as well as other populations 
     who are unrepresented in higher education. The under 
     representation of minority males, especially African American 
     and Latino males, is a matter of public record that is 
     reinforced by high drop-out rates in urban and rural school 
     districts and by lower participation/enrollment rates of 
     these groups in colleges and universities. By encouraging 
     programs to recruit students from these underrepresented 
     populations, this provision helps provide needed supports to 
     these youth so that the higher education student body better 
     reflects national demographics.
       The Senate amendment replaces the current Upward Bound 
     subsection (b) Permissible Services with a new subsection (b) 
     Required Services that includes many of the current 
     permissible services. The Senate amendment renames the 
     current subsection (c) Required Services calling it (c) 
     ``Additional Required Services for Multiple-Year Grant 
     Recipients.'' The Senate amendment creates a new subsection 
     (d) Permissible Services that includes services permissible 
     under current law and not listed in the new subsection (b) 
     above.
       The House bill amends Upward Bound permissible services to 
     add veterans' mathematics and science preparation.
       The House recedes with an amendment to add special services 
     for veterans, including mathematics and science preparation.
       The Senate amendment adds language authorizing Upward Bound 
     to give support for students who are limited English 
     proficient, homeless, and who are in (or are aging out of) 
     foster care.

[[Page 17227]]

       The House bill authorizes Upward Bound to give support to 
     students who are limited English proficient, groups or 
     persons from disadvantaged backgrounds that have particular 
     lower education access or outcomes, or disconnected students.
       The House recedes with an amendment to add students from 
     groups that are traditionally underrepresented in 
     postsecondary education, students with disabilities, and 
     other disconnected students.
       The Senate amendment gives priority to projects that select 
     not less than thirty percent of their participants from 
     students who have a high risk of academic failure.
       The House bill contains no similar provision.
       The Senate recedes with an amendment to allow Upward Bound 
     to select academically at-risk students from the population 
     of students that are not both low-income and prospective 
     first generation students.
       The Senate amendment prohibits the Secretary from denying a 
     student participation in a project because the student will 
     enter the project after the ninth grade.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends the stipend provision to allow 
     flexibility in defining the period for summer recess.
       The House bill contains no similar provision.
       The House recedes.
       The House bill prohibits the Secretary from proceeding with 
     the implementation or enforcement of the Absolute Priority 
     published in the Federal Register on September 22, 2006 (71 
     Fed. Reg. 55447 et seq.).
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment provides a separate authorization of 
     $57,000,000 for certain Upward Bound projects for fiscal year 
     2007.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment adds the program authorization for 
     Student Support Services to give support for students who are 
     limited English proficient, homeless, and who are in (or are 
     aging out of) foster care.
       The House bill authorizes Student Support Services to give 
     support to students who are limited English proficient, 
     groups or persons from disadvantaged backgrounds that have 
     particular lower education access or outcomes, or 
     disconnected students.
       The House recedes with an amendment to add students from 
     groups that are traditionally underrepresented in 
     postsecondary education, students with disabilities, and 
     other disconnected students.
       The Senate amendment replaces the current subsection (b) 
     Permissible Services with a new subsection (b) Required 
     Services that includes many of the current permissible 
     services. The Senate amendment creates a new subsection (c) 
     Permissible Services that includes services permissible under 
     current law and not listed in the new subsection (b) above. 
     The Senate amendment also adds a new required service for 
     Student Support Services programs to improve financial and 
     economic literacy.
       The House bill contains no similar provisions.
       The House recedes with an amendment to clarify that 
     academic tutoring may be provided directly or indirectly 
     through services provided by the institutions.
       The Senate amendment adds housing services for students who 
     are (or were) homeless and students who are in (or are aging 
     out of) foster care.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment designates certain services as 
     required and others as permissible under the 
     Postbaccalaureate Achievement program authority and adds 
     financial literacy services as a permissible service.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment makes other conforming amendments to 
     the Postbaccalaureate Achievement program.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment adds the program authorization for 
     Educational Opportunity Centers to give support for students 
     who are limited English proficient, homeless, and who are in 
     (or are aging out of) foster care.
       The House bill authorizes Educational Opportunity Centers 
     to give support to students who are limited English 
     proficient, groups or persons from disadvantaged backgrounds 
     that have particular lower education access or outcomes, or 
     disconnected students.
       The House recedes with an amendment to add students from 
     groups that are traditionally underrepresented in 
     postsecondary education, students with disabilities, and 
     other disconnected students.
       The Senate amendment adds financial and economic literacy 
     to the authorized activities for Educational Opportunity 
     Centers.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment changes the current allowable service 
     of personal counseling to ``individualized personal, career, 
     and academic counseling.''
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment adds to Staff Development strategies 
     for recruiting and serving students who are homeless and 
     students who are in (or are aging out of) foster care.
       The House bill amends ``Staff Development'' activities, 
     adding strategies to reach limited English proficient 
     students, those from ``disadvantaged backgrounds that have 
     particular lower educational access or outcomes, disconnected 
     students, and students with disabilities.''
       The House recedes with an amendment to add students from 
     groups that are traditionally underrepresented in 
     postsecondary education, students with disabilities, and 
     other disconnected students.
       The Senate amendment and the House bill require the same 
     new report from the Secretary to the authorizing committees 
     and include practices regarding evaluations and the 
     dissemination of evaluation findings.
       The Senate and House recede with an amendment to require 
     the new report, as well as an evaluation of the Upward Bound 
     program to be implemented by June 30, 2010.
       The Conferees intend for the evaluation of the Upward Bound 
     Program to produce reliable data on the extent to which the 
     program is effective in accomplishing its core purpose of 
     generating the skills and motivation necessary for students 
     to succeed in postsecondary education. To that end, the 
     evaluation should be thorough, well-designed, and, to the 
     degree feasible, free of factors that could affect the 
     reliability of the evaluation. As such, the Conferees expect 
     that the evaluation will not include data from the cohort of 
     students selected for Upward Bound while the absolute 
     priority for the program published by the Department of 
     Education in the Federal Register on September 22, 2006, was 
     in effect. The Conferees also expect the evaluation to be 
     designed, consistent with the other requirements regarding 
     evaluations in section 402H, in a manner that controls for 
     other variables that affect students' likelihood of 
     successfully transitioning into postsecondary education, so 
     that the specific impact of Upward Bound, as distinct from 
     other factors, may be evaluated.
       In addition, the evaluation should also include an 
     assessment of whether students with specific characteristics 
     are more successful in transitioning to postsecondary 
     education as a result of Upward Bound. For example, 
     consideration could be given to variables such as racial/
     ethnic group, parents' education level, and level of the 
     students' educational expectation and whether they interact 
     in a way to promote greater success in the program. Finally, 
     the evaluation should build upon past research findings, such 
     as research on programs with similar objectives as Upward 
     Bound, to determine which programs have produced better 
     results than others, and to identify the common program 
     characteristics that are associated with successful 
     transition to postsecondary education. The Conferees expect 
     the authorizing committees to be able to use the results of 
     the evaluation authorized in this section, as well as past 
     research findings, to inform potential changes to Upward 
     Bound in future reauthorizations.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill prohibit the 
     Secretary from requiring a grantee to recruit students to 
     serve as a control group for purposes of evaluating any 
     program or project assisted under this chapter.
       The Conferees agree to adopt the provision with technical 
     changes.
       The House bill requires the Secretary, when designing an 
     evaluation, to consider the burden that may be placed upon 
     participants and institutional review board.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to specify that the 
     Secretary shall continue to consider whether an evaluation 
     meets generally accepted standards of institutional review 
     boards.
     Section 404. Gaining early awareness and readiness for 
         undergraduate programs
       The Senate amendment removes the requirement that eligible 
     entities ``provide or maintain a guarantee to eligible low-
     income students who obtain a secondary school diploma (or its 
     recognized equivalent), of the financial assistance necessary 
     to permit the students to attend an institution of higher 
     education.''
       The House bill contains no similar provision.
       The House recedes with an amendment to clarify that 
     eligible entities shall provide support and maintain a 
     commitment to assisting participants in obtaining a secondary 
     school degree and succeeding in postsecondary education.
       The House bill includes students with disabilities to the 
     description of those to receive services.
       The Senate amendment contains no similar provision.

[[Page 17228]]

       The Senate recedes.
       The House bill establishes the duration of grants to be 
     seven years.
       The Senate amendment allows funds from a previous grant to 
     be carried over to the following year.
       The Senate recedes with an amendment that provides for a 
     grant period of six years or, in the case of an entity that 
     plans to provide services to students through their first 
     year of postsecondary education, for seven years.
       The House bill updates the prior commitment provision in 
     current law by giving priority to entities that have carried 
     out successful programs prior to enactment of this Act. The 
     House bill retains the requirement in current law that the 
     Secretary will ensure that students served under the program 
     will continue to receive assistance through completion of 
     secondary school.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment amends the definition of a partnership 
     by removing the reference to elementary and secondary schools 
     and replacing it with one or more local educational agencies.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends the funding rules in current 
     law to: remove references to continuation grants for the 
     program which preceded GEAR UP; remove the requirement that 
     thirty-three percent of funds go to the State grant program 
     and thirty-three percent go to the Partnerships program; 
     require the Secretary to consider the geographic and rural/
     urban distribution of grants; remove the requirement that 
     twenty-five to fifty percent of grant funds be used for early 
     intervention; and add a new supplement, not supplant 
     provision.
       The House bill contains no similar provisions.
       The House recedes with an amendment to require the 
     Secretary, in distributing grant funds, to make available no 
     less than thirty-three percent of grant funds to States and 
     no less than thirty-three percent of grant funds to 
     partnerships and to distribute the remaining grant funds 
     between states and partnerships. In awarding grants the 
     Secretary shall take into consideration the number, quality, 
     and promise of the applications; and to the extent 
     practicable, the geographic distribution of such awards; and 
     the distribution of such awards between urban and rural 
     applicants.
       The Senate amendment changes ``plans'' to ``applications'' 
     and removes the requirement that an application for a 
     partnership grant ``provide for the conduct of a scholarship 
     component.'' The Senate amendment expands the contents of the 
     application to include descriptions of how the entity will 
     meet the requirements of program activities, define cohorts 
     of students to be served, and coordinate with existing 
     programs.
       The House bill contains no similar provisions.
       The House recedes.
       In providing assurances that adequate administrative and 
     support staff will be responsible for coordinating the 
     activities of the GEAR UP grant, the Conferees acknowledge 
     the importance of grantees identifying an individual whose 
     primary responsibility is to serve as the coordinator for the 
     GEAR UP grant as well as the other administrative and support 
     staff who will be involved in carrying out the activities 
     described in the grant application.
       The House bill permits grantees to provide matching funds 
     over the duration of the grant award period.
       The Senate amendment has no similar provision.
       The Senate recedes with an amendment to clarify that the 
     grantee must make substantial progress towards meeting the 
     match in each year of the grant award period.
       The House bill authorizes grantees and applicants to 
     request a reduction of the matching percentage requirement if 
     they can demonstrate a change in circumstances.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to specify that an 
     entity may request a reduced match at the time of application 
     due to significant economic hardship and a grantee may 
     request a reduced match if matching funding no longer is 
     available and it has exhausted its reserves.
       The House bill encourages eligible entities to provide 
     student aid to participants by treating every non-federal 
     dollar as two dollars for the purpose of satisfying the 
     matching requirement.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to permit partnerships 
     that provide scholarships to request a reduced match at the 
     time of their application. Such application must include a 
     description of how a reduced match will assist the entity to 
     provide scholarships.
       The Senate amendment and the House bill amend the matching 
     requirement to include funds ``obligated,'' instead of 
     ``paid,'' to students from State, local, institutional, or 
     private funds as well as ``equipment and supplies, cash 
     contributions from non-Federal sources, transportation 
     expenses, in-kind or discounted program services, indirect 
     costs, and facility usage.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment amends the early intervention 
     activities provided under current law to distinguish between 
     Required Activities and Optional Activities. Both States and 
     partnerships are required to provide financial aid 
     information, encourage enrollment in rigorous coursework, and 
     support activities designed to improve the number of 
     participating students who complete secondary school, and 
     enroll in a program of postsecondary education. State 
     grantees are further required to provide scholarships. The 
     Senate amendment requires both State and Partnership grantees 
     to engage in at least one of several optional activities 
     including mentorship, outreach, support services, curricular 
     development, support for dual enrollment, and, in the case of 
     a partnership, support for scholarships.
       The House bill contains no similar provision.
       The House recedes with an amendment to clarify that, as 
     part of an entity's required activities, in order to receive 
     a GEAR UP grant, the entity shall demonstrate to the 
     Secretary that the entity will provide comprehensive 
     mentoring, outreach and supportive services to participating 
     students.
       The House bill adds financial and economic literacy 
     education to the list of permissible activities. The House 
     bill adds special programs or tutoring in science, 
     technology, engineering or mathematics to the list of 
     permissible student support activities.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment and the House bill provide for 
     optional activities including fostering parental involvement, 
     disseminating information, and additional activities for 
     States. The Senate amendment and the House bill allow 
     grantees to continue to provide services to students through 
     completion of secondary school and into the first year of 
     college.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an amendment to change optional 
     activities to permissible activities.
       The Senate amendment and the House bill amend the current 
     priority for services to students for entities that do not 
     use a cohort approach. The Senate amendment and the House 
     bill retain students eligible to be counted under Section 
     1124(c) of the Elementary and Secondary Education Act of 
     1965, and eligible for free or reduced price lunch under the 
     Richard B. Russell National School Lunch Act. The Senate 
     amendment adds to the list, students eligible under Part E, 
     in addition to Part A of Title IV of the Social Security Act, 
     and students eligible for assistance under subtitle B of 
     Title VII of the McKinney-Vento Homeless Assistance Act. The 
     House bill adds disconnected students, students in foster 
     care, or homeless or unaccompanied youth as defined in 
     Section 725 of the McKinney-Vento Homeless Assistance Act.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an amendment to delete the 
     reference to free or reduced price lunch and to give priority 
     to students who are otherwise considered disconnected 
     students.
       The Conferees recognize that students who are limited 
     English proficient, students from groups that are 
     traditionally underrepresented in higher education, students 
     with disabilities, homeless students, youth aging out of 
     foster care, or other disconnected students, such as pregnant 
     or parenting teens or youth who have been involved in the 
     juvenile justice system, have additional challenges to access 
     postsecondary educational opportunities and to persist until 
     program completion. Therefore, the Conferees encourage GEAR 
     UP grantees, as appropriate, to offer programs and activities 
     that are specially designed to address the unique challenges 
     these students face as they work to achieve a college degree.
       The House bill allows entities in partnerships to 
     collaborate in providing matching resources and participate 
     in other activities.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the 
     application to include the sources of matching funds. In the 
     event that the matching funds the entity described in its 
     application are no longer available, the entity may engage 
     other members of the partnership in a collaborative manner to 
     provide matching resources.
       The Senate amendment specifies additional optional 
     activities for States.
       The House bill contains no similar provision.
       The House recedes with an amendment to change ``optional 
     activities'' to ``permissible activities'' and to add 
     providing administrative support to help build the capacity 
     of partnerships to compete for and manage grants as a 
     permissible activity for States.
       The Senate amendment identifies providers who may deliver 
     services under the State grant program.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment requires State grantees to reserve 
     fifty to seventy-five percent of funds received for 
     scholarships. The

[[Page 17229]]

     Senate amendment allows State grantees to use less than fifty 
     percent for scholarships if other funds for scholarships can 
     be demonstrated. The Senate amendment requires State grantees 
     to notify students of their eligibility for scholarships.
       The House bill contains no similar provisions.
       The House recedes.
       The Senate amendment requires State grantees to establish a 
     scholarship trust fund containing amounts sufficient to cover 
     the scholarship for each student in each cohort. The Senate 
     amendment requires that scholarships be available for 
     students upon completion of secondary school and enrollment 
     in college. The Senate amendment requires that unused funds 
     be returned to a grantee's trust fund for redistribution to 
     other eligible students; funds unused after redistribution 
     must be returned to the Secretary.
       The House bill contains no similar provisions.
       The House recedes with an amendment to require States to 
     hold in reserve an amount that is not less than the 
     scholarship amount multiplied by the number of students 
     estimated to be eligible for a scholarship upon enrollment in 
     an institution of higher education.
       The Senate amendment repeals the current provision for 21st 
     Century Scholar Certificates.
       The House bill maintains current law.
       The Senate recedes with an amendment to have a partnership 
     or State provide the certificates.
       The Senate amendment amends the GEAR UP authorization to be 
     for such sums as necessary for 2008 and for the five 
     succeeding fiscal years.
       The House bill authorizes GEAR UP for $400,000,000 for 
     fiscal year 2009 and such sums as necessary for the four 
     succeeding fiscal years.
       The Senate recedes with an amendment to authorize 
     $400,000,000 for fiscal year 2009 and such sums as necessary 
     for each of the five succeeding fiscal years.
     Section 405. Academic Achievement Incentive Scholarships
       The Senate amendment and the House bill repeal Academic 
     Achievement Incentive Scholarships.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 406. Federal Supplemental Educational Opportunity 
         grants
       The Senate amendment authorizes the appropriation of such 
     sums as may be necessary for the FSEOG program at such sums 
     as may be necessary for fiscal year 2008 and each of the five 
     succeeding fiscal years (through fiscal year 2013).
       The House bill authorizes the appropriation of $875,000,000 
     for the FSEOG program for fiscal year 2009, and such sums as 
     may be necessary for the four succeeding fiscal years 
     (through fiscal year 2013).
       The House recedes with an amendment to authorize such sums 
     as may be necessary for fiscal year 2009 and the five 
     succeeding fiscal years.
       The Senate amendment and the House bill increase the 
     allowance for books and supplies used in calculating each 
     institution of higher education's average cost of attendance 
     for purposes of allocating funds to institutions of higher 
     education according to ``fair share'' allocation procedures 
     from $450 to $600.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment strikes the provision at section 
     413D(a)(4), authorizing the Secretary to allocate up to ten 
     percent of the amount appropriated for programs authorized 
     under Title IV, Part A (when the appropriation exceeds 
     $700,000,000), among institutions of higher education from 
     which fifty percent or more Pell Grant recipients either 
     graduate or transfer to four-year institutions of higher 
     education. The Senate amendment makes a technical correction 
     at section 413D(a)(1), pertaining to language for 
     institutional base guarantee funding.
       The House bill contains no similar provisions.
       The Senate recedes.
     Section 407. Leveraging Educational Assistance Partnership 
         program
       The Senate amends the program authorization without 
     specifying authorization levels, but with a trigger amount 
     ($30,000,000) over which Leveraging Educational Assistance 
     Partnership (LEAP) funding would go to Grants for Access and 
     Persistence (GAP) (formerly Special Leveraging Educational 
     Assistance Partnership (SLEAP)).
       The House retains an authorization level for the first year 
     ($200,000,000) and a trigger amount for GAP ($30,000,000).
       The Senate amendment authorizes the program for fiscal year 
     2008-2013; the House bill for fiscal year 2009-fiscal year 
     2013.
       The Senate recedes with an amendment to authorize 
     $200,000,000 for fiscal year 2009 and such sums as necessary 
     for five succeeding years, with a reservation that for any 
     fiscal year for which the amount appropriated exceeds 
     $30,000,000, the excess amount shall be available to carry 
     out Section 415E.
       The Senate amendment and the House bill raise the maximum 
     LEAP grant to $12,500 from $5,000. The Senate caps the amount 
     at the cost of attendance.
       The House recedes.
       The Senate amendment removes the requirement that non-
     federal matching funds for LEAP grants and work-study come 
     only from direct state appropriations.
       The House bill contains no similar provision.
       The Senate recedes with an amendment to clarify that state 
     funds do not need to be provided by ``a direct 
     appropriation.''
       The Senate amendment and the House bill add a requirement 
     that states notify students that the grants are a part of 
     LEAP and are funded by the federal government and the states. 
     The Senate amendment allows other contributing partners to be 
     listed in the notification as well.
       The Senate recedes with an amendment to add the 
     notification, where applicable, other contributing partners.
       The Senate amendment and the House bill repeal the previous 
     Special LEAP program and replace it with new ``Section 415E. 
     Grants for Access and Persistence'' and set purposes for the 
     program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to clarify that 
     community-based organizations can be partners in the program.
       The Senate amendment and the House bill require States to 
     apply for GAP funds in partnerships with institutions of 
     higher education and other organizations and determine the 
     federal share based upon the share of students the partner 
     institutions of higher education enroll. The Senate amendment 
     sets the federal share at fifty percent if partner 
     institutions of higher education enroll less than half of 
     FTEs in the state and the House sets it at fifty-seven 
     percent.
       The Senate amendment sets the federal share at fifty-seven 
     percent and the House bill sets it at 66.66 percent if 
     partner institutions of higher education enroll more than 
     half of full-time equivalent students in the state.
       The Senate recedes.
       The Senate amendment and the House bill include similar 
     provisions regarding the non-federal share, except that the 
     Senate amendment refers to the ``required share'' whereas the 
     House bill specifies the minimum share from non-federal 
     sources.
       The Senate recedes.
       The Senate amendment and the House bill have similar 
     provisions for the submission of an application; however, the 
     Senate amendment includes language for a State that desires 
     to receive an allotment under this section on behalf of the 
     partnership.
       The House recedes.
       The Senate amendment and the House bill contain similar 
     language regarding the content of the application. The Senate 
     amendment also includes language to clarify that the funds 
     are to supplement not supplant.
       The Senate recedes with an amendment to include supplement 
     not supplant language.
       The Senate amendment and the House bill contain similar 
     provisions regarding the description of the organizational 
     structure that the State has in place, except that the Senate 
     amendment would require the State to track participation of 
     students who receive grants.
       The House recedes with an amendment to clarify that states 
     shall compile information on degree completion of students 
     receiving grants under this program.
       The House bill requires a description of the steps the 
     State will take to ensure students who receive grants persist 
     to degree completion.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill provides for 
     assurances that the State has a method in place to identify 
     eligible low-income students and that the State will provide 
     notification to eligible low-income students, except that the 
     House bill limits it to LEAP Grants funded by the Federal 
     Government and the State.
       The Senate recedes with an amendment to add in the 
     notification ``where applicable, other contributing 
     partners.''
       The Senate amendment and the House bill provide for 
     partnerships between State agencies and institutions of 
     higher education that require the partnership to consist of 
     not less than one public and one private institution of 
     higher education in the State, except that the Senate 
     amendment includes an ``if applicable'' clause.
       The House recedes.
       The Senate amendment and the House bill include provisions 
     regarding the roles of partners. The Senate requires the 
     coordination of nonfederal share of funds.
       The House contains no similar provision.
       The House recedes.
       The House bill specifies that institutional partners be 
     degree-granting institutions of higher education as defined 
     under Section 102.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill set grant amounts 
     based on the number of students served by GAP partner 
     institutions of higher education. The Senate amendment and 
     the House bill set grant amounts at: not

[[Page 17230]]

     less than the average tuition and fees for students in states 
     with smaller partnerships that are using funds to create a 
     new grant program; up the average cost of attendance for 
     students in states with smaller partnerships that have an 
     existing grant program and are using these funds to expand 
     such program; and, equal to the average cost of attendance 
     for students in states with larger partnerships.
       The Senate recedes with an amendment to specify whether a 
     student is in a four-year or two-year institution when 
     establishing a grant amount.
       The Senate amendment and the House bill contain provisions 
     regarding partnerships with institutions of higher education 
     serving the majority of students in the state, except that 
     the Senate amendment allows states to determine whether or 
     not students in their State can use GAP grants to attend 
     schools in that State that are not partners in the 
     partnership.
       The House recedes.
       The Senate amendment and the House bill contain an early 
     notification provision which require states to notify low-
     income students in grades seven through twelve of their 
     potential eligibility for financial aid, except that the 
     Senate amendment explicitly defines such low-income students 
     as those eligible under the Richard B. Russell National 
     School Lunch Act.
       The Senate recedes with an amendment to delete the 
     reference to free and reduced price lunch.
       The Senate amendment and the House bill contain similar 
     provisions regarding the required content of notice. The 
     Senate amendment and the House bill contain provisions 
     regarding disclaimer notices to students.
       The House recedes with an amendment to include in the 
     disclaimer that grants may be based on state spending for 
     higher education rather than appropriations.
       The Senate amendment and the House bill contain provisions 
     regarding student eligibility. Students are eligible for 
     grants if they meet not less than two of the following 
     criteria, with priority given to students meeting all of the 
     following criteria: have an expected family contribution 
     equal to zero or a comparable alternative based upon the 
     State's approved criteria, has qualified for a free or 
     reduced price lunch, is eligible for the State's maximum 
     undergraduate award, is participating in, or has participated 
     in, a Federal, State, institutional, or community early 
     information and intervention, mentoring, or outreach program, 
     as recognized by the State agency administering activities 
     under this section, and is receiving, or has received, an 
     access and persistence grant under this section.
       Both the Senate and the House recede with an amendment to 
     strike the requirement that students must have had to qualify 
     for a free or reduced price lunch.
       The Senate amendment and the House bill contain a tentative 
     grant award notification provision.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to clarify that awards 
     are estimated rather than tentative.
       The Senate amendment and the House bill specify that the 
     State may set reasonable time limits for degree completion 
     for the duration of the awards while the Senate amendment 
     allows states to set the same limits for degree completion. 
     The House bill specifies baccalaureate degree.
       The House recedes.
       The Senate amendment prohibits use of federal GAP funds for 
     administrative costs. The House bill allows States to use up 
     to 3.5 percent for administrative costs.
       The Senate recedes with an amendment to allow two percent 
     for administrative funds allowance.
       The House bill adds GAP evaluation provisions to be carried 
     out by the Advisory Committee on Student Financial 
     Assistance.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 408. Special programs for students whose families are 
         engaged in migrant and seasonal farmwork
       The Senate amendment and the House bill change the criteria 
     for recruitment under the High School Equivalency Program 
     (HEP). The Senate amendment and the House bill specify that 
     placement services designed to place students in 
     postsecondary education may include preparation for college 
     entrance examinations. The Senate amendment and the House 
     bill authorize stipends to be provided to HEP participants 
     with no requirements on the frequency of distribution. The 
     Senate amendment and the House bill specify that other 
     essential services may include transportation and child care.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill authorize the HEP 
     to provide other activities to improve persistence and 
     retention in higher education. The Senate amendment and the 
     House bill modify the criteria for outreach and recruitment 
     services under the College Assistance Migrant Program (CAMP) 
     to include individuals whose immediate family has spent a 
     minimum of seventy-five days during the past twenty-four 
     months in migrant or seasonal farmwork. The Senate amendment 
     and the House bill specify that supportive and instructional 
     services provided under CAMP are intended to improve 
     placement, persistence, and retention in postsecondary 
     education. The Senate amendment and the House bill expand 
     authorized services.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill expand the required 
     follow-up services that grantees must provide to migrant 
     students after they have completed their first year of 
     college.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill change the minimum 
     grant amount for each HEP and CAMP project from $150,000 to 
     $180,000.
       The Conferees agree to adopt the provision proposed by both 
     the Senate and the House.
       The Senate amendment and the House bill add a new 
     subsection designating the reservation of funds. The House 
     bill also includes the allocation of funds in this new 
     subsection. The Senate amendment and the House bill allow the 
     Secretary to reserve not more than one-half of one percent of 
     funds available for the HEP and CAMP programs for outreach 
     activities, technical assistance, and professional 
     development.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill requires that the Secretary make available 
     at least forty-five percent of the remaining funds for HEP 
     grants and at least forty-five percent of the remaining funds 
     for CAMP grants. The House bill requires that any funds 
     remaining after the aforementioned reservation and 
     allocations must be used to make HEP or CAMP grants based on 
     the number, quality, and promise of the applications. The 
     House bill requires the Secretary to consider the need to 
     provide an equitable geographic distribution of grants.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment authorizes such sums as may be 
     necessary for fiscal year 2008 and each of the succeeding 
     five years for HEP and CAMP.
       The House bill specifically authorizes $75,000,000 for HEP 
     and CAMP for fiscal year 2009 and such sums as may be 
     necessary for each of the succeeding four fiscal years.
       The Senate recedes with an amendment to authorize 
     $75,000,000 for HEP and CAMP for fiscal year 2009 and such 
     sums are may be necessary for each of the five succeeding 
     fiscal years.
     Section 409. Robert C. Byrd Honors Scholarship Program
       The Senate amendment reauthorizes the Robert C. Byrd Honors 
     Scholarship Program for such sums as may be necessary for 
     fiscal year 2008-fiscal year 2013. Eligibility for 
     scholarships is extended to home school students.
       The House bill authorizes appropriations for the Byrd 
     Scholarships, Math and Science Incentive program, Foreign 
     Language Partnerships, and Adjunct Teacher Corps together as 
     part of an amended Subpart 6.
       The House recedes with an amendment to add Adjunct Teacher 
     Corps to Title II, Part C, incorporate the Foreign Language 
     Partnerships into the Science and Technology Advanced Foreign 
     Language Education Grant Program in Title VI, and to 
     incorporate the Mathematics and Science Incentive program 
     into the Math and Science Scholars program in Title VIII.
     Section 410. Child Care Access means parents in school
       The Senate amendment and the House bill increase grants 
     under the Child Care Access program from $10,000 to $30,000. 
     The Senate amendment allows for such an increase only if 
     appropriations for the program equal or exceed $20,000,000 
     for the fiscal year.
       The House recedes.
       The Senate amendment redefines low-income student for the 
     purpose of determining program eligibility by aligning the 
     Pell Grant qualification with award years as opposed to 
     fiscal years (as in current law), expanding eligibility to 
     graduate students, and expanding eligibility to individuals 
     in the U.S. on a non-immigrant visa.
       The House bill extends eligibility for students whose 
     family income would qualify for a Pell grant.
       The House recedes.
       The House bill lowers the threshold for institutional 
     eligibility by lowering the total amount of Pell Grants 
     awarded at the institution of higher education to qualify, 
     from $350,000 to $250,000.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to allow for such an 
     increase only if appropriations for the program equal or 
     exceed $20,000,000 for the fiscal year.
       The House bill requires the Secretary to publicize the 
     availability of the program in the Federal Register, and in 
     other publications, and directly to related organizations. 
     The House bill changes the timing of reporting requirements 
     to annual reporting instead of reporting every year and a 
     half. The House bill modifies language tying continued 
     funding of the four-year grant awards to annual

[[Page 17231]]

     reporting, replacing the current-law mid-cycle check before 
     the third year.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Senate amendment and the House bill authorize 
     appropriations of such sums as may be necessary (instead of 
     the current law fixed amount)--the Senate for fiscal year 
     2008-fiscal year 2013, the House for fiscal year 2009-fiscal 
     year 2013.
       The Senate recedes with an amendment to authorize such sums 
     are may be necessary for fiscal year 2009 and the five 
     succeeding fiscal years.
     Section 411. Learning Anytime Anywhere Partnerships
       The Senate amendment and the House bill repeal the Learning 
     Anytime Anywhere Partnerships program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 412. TEACH Grants
       The House bill makes technical corrections to the TEACH 
     Grants program, including: amending institutional financial 
     eligibility requirement from ``sound'' to ``responsible'', 
     and clarifies that grants are per year, rather than academic 
     year.
       The Senate amendment contains no similar provisions.
       The House recedes.
       The House bill adds a stipulation that applications for 
     grants include information about the service agreement and 
     consequence for failure to meet the agreement.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The House bill clarifies that grant recipients in fields 
     which are subsequently designated as no longer high-need may 
     fulfill their service agreements in their original field; 
     adding a requirement that the Secretary establish regulations 
     allowing for waiver of the service requirement in extenuating 
     circumstances; and adding a requirement that the Secretary 
     undertake a program evaluation.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires the Secretary to evaluate the 
     effectiveness of TEACH grants with respect to the schools and 
     students served by recipients of the grants.
       The Senate has no similar provision.
       The Senate recedes with an amendment to change the 
     provision to provide that the Secretary shall issue a report, 
     within two years after the date of enactment, and every two 
     years thereafter, that takes into consideration information 
     related to: the number of TEACH grant recipients; the degrees 
     obtained by such recipients; the location including the 
     school, local educational agency, and State, where the 
     recipients completed service; the duration of such service, 
     and any other data necessary to conduct such report.

             Part B--Federal Family Education Loan Program

     Section 421. Limitations on amounts of loans covered by 
         federal insurance
       The House bill extends authorization of interest subsidies 
     under Federally Insured Student Loan Program (FISL) by one 
     fiscal year.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ``2013'' and 
     ``2017'' and insert ``2014'' and ``2018,'' respectively.
     Section 422. Federal payments to reduce student interest 
         costs
       The House bill extends authorization of interest subsidies 
     under Federal Family Education Loan Program (FFEL) by one 
     fiscal year.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to exclude veteran's 
     education benefits from being counted in determining 
     eligibility for loans and to strike ``2013'' and ``2017'' and 
     insert ``2014'' and ``2018,'' respectively.
       The Senate amendment expands the conditions by which 
     lenders shall determine the eligibility of a borrower for an 
     in-school deferment to include the lender's confirmation of 
     the borrower's half-time enrollment status through use of 
     National Student Loan Data System (NSLDS), if the 
     confirmation is requested by the institution of higher 
     education.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment (as part of the requirements of 
     insurance program agreements to qualify loans for interest 
     subsidies), requires lenders to provide information to 
     borrowers who receive deferments on unsubsidized Stafford 
     Loans, at the time deferment is granted, that will enable the 
     borrower to understand the impact that the capitalization of 
     interest will have on the loan and on the total amount of 
     interest to be paid during the life of the loan.
       The House bill contains no similar provision.
       The House recedes with an amendment to re-designate this 
     provision that would have created a new paragraph (Z) to 
     become a new subclause (iii) under 428(b)(Y).
       The Senate amendment, adds the following requirements 
     applicable to transferors and transferees of loans. In 
     addition to existing requirements, transferors and 
     transferees must notify borrowers of: the effective date of 
     the transfer; the date the current servicer will stop 
     accepting payments; and, the date at which the new servicer 
     will begin accepting payments.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment expands restrictions on guaranty 
     agencies with respect to inducements, payments, mailings, and 
     advertising, and adds new provisions regarding the items 
     guaranty agencies may not offer to an institution of higher 
     education or its employees or to a lender or its employees.
       The House bill contains no similar provision.
       The House recedes with an amendment to include additional 
     restrictions, but also to provide an exemption to permit 
     guaranty agencies to perform services related to exit 
     counseling at institutions.
       The Senate amendment revises the contents of guaranty 
     agreements with respect to the granting of forbearance by 
     lenders.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees clarify that borrower interest rates in this 
     Act are not intended to override Section 207 of the 
     Servicemembers Civil Relief Act, which caps interest rates on 
     all types of debt at six percent for active duty 
     servicemembers. However, the Conferees do not intend for this 
     provision to permit members of the Armed Forces to request a 
     refund from their lender for time spent on active duty prior 
     to the enactment of this Act. The Conferees also clarify that 
     the applicable interest rate used when calculating special 
     allowance on new loans disbursed after July 1, 2008 is the 
     rate actually paid by the borrower, not the statutorily set 
     interest rate.
     Section 423. Voluntary flexible agreements
       The House bill requires the Secretary, in consultation with 
     guaranty agencies participating in voluntary flexible 
     agreements, to annually report to the authorizing committees 
     on program outcomes that voluntary flexible agreements have 
     had with respect to: program integrity, program and cost 
     efficiencies, delinquency prevention, default version; 
     consumer education programs, and the availability and 
     delivery of student financial aid.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include a 
     comparison of guaranty agencies not operating under Voluntary 
     Flexible Agreements.
     Section 424. Federal PLUS Loans
       The House bill specifies that repayment of a PLUS Loan to a 
     parent borrower commences not later than sixty days after 
     disbursement and that repayment of a PLUS Loan to a graduate 
     or professional student commences six months and one day 
     after the borrower ceases to carry at least one-half of a 
     full-time academic workload.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that a PLUS 
     borrower may qualify for the special rule regarding 
     extenuating circumstances recently established by the 
     Ensuring Continues Access to Student Loans Act if a lender 
     would not otherwise have found such borrower to have an 
     adverse credit history consistent with the relevant 
     regulations in effect the day before the enactment of such 
     Act.
       The amendment also changes that the grace period for PLUS 
     loans established in the Ensuring Continued Access to 
     Students Loans Act to a deferment. The Conferees also agree 
     that a parent PLUS borrower who is a student shall be 
     eligible for such deferment while such parent is in school.
     Section 425. Federal consolidation loans
       The Senate amendment and the House bill add disclosure 
     requirements with respect to including a Perkins Loan in a 
     Consolidation Loan. The Senate amendment also requires 
     lenders, upon application for a consolidation loan, to 
     provide borrowers with other related information on the 
     possible impact of loan consolidation.
       Both the Senate and the House recede with an amendment to 
     require the lender to disclose the information required in 
     both bills to prospective borrowers, in a clear and 
     conspicuous manner, at the time it provides an application 
     for a consolidation loan but to strike the requirement that 
     the list of occupations be detailed.
       The House bill extends authority for Consolidation Loans 
     for one additional fiscal year.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ``2013'' and 
     insert ``2014.''
     Section 426. Default reduction program
       The Senate amendment amends requirements with respect to 
     rehabilitated defaulted loans. On the sale of a rehabilitated 
     defaulted loan, the lender and guaranty agency, and any prior 
     holder, shall request

[[Page 17232]]

     any consumer reporting agency to which the default of the 
     loan has been reported, to remove the record of default from 
     the borrower's credit history. The Senate amendment limits 
     the ability of a borrower to rehabilitating a defaulted loan 
     to one time per loan.
       The House bill contains no similar provisions.
       The House recedes.
     Section 427. Requirements for disbursement of student loans
       The House bill amends the special rule that allows for the 
     single disbursement of a student loan at institutions of 
     higher education with cohort default rates of ten percent or 
     less for the three most recent fiscal years, by substituting 
     fifteen percent for ten percent beginning October 1, 2011. 
     The House bill expands the exemption for low cohort default 
     rate institutions concerning early disbursement of student 
     loans.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 428. Unsubsidized Stafford loan limits
       The Conferees clarify that students enrolled in coursework 
     necessary for enrollment in a graduate or professional 
     program, or students enrolled in a program that is necessary 
     to attain a professional credential or certification to 
     become a teacher, continue to be eligible for the loan limits 
     for which they were eligible prior to the enactment of the 
     Ensuring Continued Access to Student Loans Act and that 
     undergraduate students pursuing coursework necessary for 
     enrollment in an undergraduate degree or certificate program 
     are eligible for the increased loan limit of $6,000.
     Section 429. Loan forgiveness for teachers employed by 
         educational service agencies
       The Conferees clarify that teachers employed by an 
     educational service agency are eligible for teacher loan 
     forgiveness program in Section 428J of the Higher Education 
     Act.
     Section 430. Loan forgiveness for service in areas of 
         national need
       The House bill establishes a new Loan Forgiveness for 
     Service in Areas of National Need program under 428K. The 
     House bill provides that a borrower employed full-time in any 
     of the following specified occupations/ professions is 
     treated as employed in an area of national need: early 
     childhood educators; nurses; foreign language specialists; 
     librarians; highly qualified teachers; child welfare workers; 
     speech-language pathologists; audiologists; national service; 
     school counselors; public sector employees; nutrition 
     professionals; medical specialists; physical therapists; and 
     superintendents, principals, and other (school) 
     administrators.
       The Senate amendment contains no similar provisions.
       The Senate recedes with amendment to clarify the 
     eligibility requirements for medical specialists and to add 
     occupational therapists and dentists and to specify that 
     borrowers may not receive loan forgiveness for the same 
     service under both this provision and other loan forgiveness 
     provisions in the Higher Education Act. The Conferees clarify 
     that teachers and other employees of educational service 
     agencies who are employed in areas of national need as 
     defined by this section are eligible for loan forgiveness on 
     the same terms as others so employed.
     Section 431. Loan repayment for civil legal assistance 
         attorneys
       The Senate amendment and the House bill create a new 
     section in 428L to establish a Loan Repayment for Civil Legal 
     Assistance Attorneys program to encourage qualified 
     individuals to enter and continue employment as civil legal 
     assistance attorneys.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House, with an amendment to exclude Parent 
     PLUS Loans from eligibility for this program and to list all 
     of the statutory sources of funding for protection and 
     advocacy organizations with which an eligible borrower may be 
     employed.
       The Senate amendment authorizes the appropriation of 
     $10,000,000 for fiscal year 2008 and such sums as necessary 
     for succeeding fiscal years.
       The House bill authorizes the appropriation of $10,000,000 
     for fiscal year 2009, and such sums as necessary for the four 
     succeeding fiscal years.
       The Senate recedes with an amendment to strike four and 
     insert five.
     Section 432. Reports to consumer reporting agencies and 
         institutions of higher education
       The Senate amendment adds requirements regarding the 
     reporting of information to consumer reporting agencies by 
     requiring that information be provided to each of the 
     consumer reporting agencies that compiles and maintains files 
     on consumers on a nationwide basis. Two references to 
     ``credit bureaus'' are changed to ``consumer reporting 
     agencies.''
       The House bill contains no similar provision.
       The House recedes with an amendment to update all 
     references from ``credit bureaus'' to ``consumer reporting 
     agencies'' throughout Part B, and to require that a student 
     loan be reported as an ``education loan'' instead of 
     requiring that the `` type of loan made, insured or 
     guaranteed under Title IV'' be reported.
     Section 433. Legal powers and responsibilities
       The House bill prohibits the Secretary from entering into 
     any settlement of a claim under this Act that exceeds 
     $1,000,000, unless the Secretary has asked the Attorney 
     General to review the settlement agreement and issue an 
     opinion to the Secretary and the authorizing committees.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to prohibit the 
     Secretary from entering into any settlement of a claim under 
     this Act that exceeds $1,000,000 unless the Secretary 
     requests a review of such proposed settlement by the Attorney 
     General and the Attorney General responds to such request, 
     which may include, at the Attorney General's discretion, a 
     written opinion related to such proposed settlement.
       The Senate amendment adds additional provisions applicable 
     to the use of a master promissory for loans made under Part B 
     and Part D.
       The House bill contains no similar provision.
       The House recedes.
     Section 434. Student loan information by eligible lenders
       The Senate amendment adds a new subsection to specify that 
     entities participating under Part B and that are subject to 
     the terms of Title V-A of the Gramm-Leach-Bliley Act may only 
     use and disclose personal information consistent with the 
     provisions of Title V-A of the Gramm-Leach-Bliley Act.
       The House bill contains no similar provision.
       The Senate recedes.
       The House bill adds a new paragraph regarding information 
     on defaults. If requested by an institution of higher 
     education or a third party servicer working on behalf of an 
     institution of higher education to prevent defaults of 
     borrowers from the institution of higher education, a lender, 
     secondary market, holder, or guaranty agency shall provide 
     free of charge and in a timely manner, information on such 
     borrowers. Institutions of higher education and third party 
     servicers are required to safeguard any information received 
     for purposes of preventing defaults, as required under any 
     applicable law, and at least to the same extent as required 
     under Sections 501 and 505(b) of the Gramm-Leach-Bliley Act; 
     Third party servicers that receive information on borrowers 
     through default prevention activities are subject to 
     limitations on the use, sale, and sharing of information; 
     Requirements of entities to share information for purposes of 
     default prevention shall be considered an applicable legal 
     requirement for purposes of Section 502(e)(8) of the Gramm-
     Leach-Bliley Act; and subcontractors are subject to the same 
     restrictions as applicable to third party servicers.
       The Senate amendment contains no similar provisions.
       The House recedes.
       The Senate amendment adds a new subsection (g) to Section 
     433, ``Student Loan Information by Eligible Lenders'', to 
     require lenders, holders, and servicers of loans under Part B 
     to provide the borrower with information on the loan benefit 
     repayment options the lender, holder, or servicer offer, 
     including information on reductions in interest rates: by 
     repaying according to automatic debit; by completing a 
     program of on-time repayment; and under any other interest 
     rate reduction program. The information provided must 
     include: any limitations on the options; explicit reasons a 
     borrower may lose eligibility for such options; examples of 
     the impact of such options on repayment time and the amount 
     of repayment; and any borrower recertification requirements.
       The House bill contains no similar provision.
       The House recedes with amendment to include this 
     information as a new paragraph (5) in Section 433 (b) of 
     current law, ``Required Disclosure Before Repayment.'' The 
     new paragraph requires lenders, at or prior to the start of 
     repayment, to disclose to the borrower information on loan 
     repayment benefits offered.
       It is the conferees understanding that lenders and loan 
     servicers send statements to borrowers today that are in 
     various formats; some are organized by loan, some are by 
     account, and some are by borrower. It is not the conferees 
     intent to require loan servicers to change their 
     organizational format in order to comply with the 
     requirements of Section 433(e). These disclosures can be made 
     by loan, by account, or by borrower.
     Section 435. Consumer education information
       The Senate amendment and the House bill require guaranty 
     agencies to work with institutions of higher education to 
     develop and make available high-quality educational program 
     and materials to provide training for students in budgeting 
     and financial management, debt management, and financial 
     literacy. The Senate amendment provides that these activities 
     shall be considered default reduction activities. The House 
     bill does not prohibit a lender or servicer from providing 
     outreach or financial aid literacy.
       The House recedes with amendments to include ``students and 
     families'' and to add the House bill's rule of construction.

[[Page 17233]]


     Section 436. Definition of eligible institution & eligible 
         lender
       The House bill amends the cohort default rate threshold at 
     which an institution of higher education becomes ineligible 
     to participate in Title IV programs. It increases the 
     threshold from twenty-five percent to thirty percent in 
     fiscal year 2012 and any succeeding fiscal year. The House 
     bill applies the definition of mitigating circumstances to 
     the entire subsection and establishes an appeals process for 
     regulatory relief.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The House bill requires institutions of higher education 
     whose cohort default rate is greater than or equal to the 
     threshold percentage (twenty-five percent through fiscal year 
     2011; thirty percent thereafter) for any fiscal year to 
     establish a default prevention task force to prepare a plan 
     to reduce the institution of higher education's cohort 
     default rate. The House bill provides for institutions of 
     higher education whose cohort default rate is greater than or 
     equal to the threshold percentage in the second consecutive 
     fiscal years have their default prevention task force review 
     and revise their default reduction plan, and to submit the 
     revised plan to the Secretary for review. Upon review, the 
     Secretary may require amendments to the plan, with measure 
     objectives, to promote student loan repayment.
       The Senate amendment contains no similar provision.
       The Senate recedes with amendments to include in the task 
     force's plan the steps to be taken to improve the institution 
     of higher education's cohort default rate and to specify 
     actions the institution of higher education can take to 
     improve repayment, including appropriate counseling regarding 
     loan repayment options and striking references to the use of 
     professional judgment by financial aid administrators.
       Recognizing the serious consequences of student loan 
     default for the borrowers, it is the Conferees' intent that 
     institutions that exceed the cohort default rate threshold 
     develop a comprehensive strategy to prevent current and 
     former students from defaulting on their federal student 
     loans. The Conferees intend for institutions to establish a 
     default prevention task force that would bring together 
     experts who can address the key components of successful 
     default prevention strategies. For example, default 
     prevention task forces may include representatives from the 
     admissions office, the student aid office, student affairs, 
     and the career and academic advising office. Institutions 
     should also include representatives of students and families 
     on the default prevention task force. The Conferees encourage 
     institutions to consult with experts in default prevention 
     and financial literacy such as the state designated guaranty 
     agency in developing their plans and to coordinate with the 
     lenders and servicers on default prevention activities.
       The House bill requires the Secretary to publish cohort 
     default rates on the College Navigator web site.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill increases the cohort default rate 
     participation rate index threshold from 3.75 percent to 6.25 
     percent beginning in fiscal year 2012.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill amends the definition of an ``eligible 
     lender'' to include a National or State chartered bank that 
     that has as its primary consumer credit function, the making 
     or holding of loans made to students under Part B provided 
     such bank has assets of less than $1,000,000,000.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include credit 
     unions in the definition.
       The Senate amendment expands the list of activities that 
     may result in the disqualification of a lender from 
     participation in programs under Part B, to include: payments 
     for referrals and for processing of finder fees, prizes, 
     stock or other securities, travel, entertainment expenses, 
     tuition repayment, the provision of information technology 
     equipment at below-market value, additional financial aid 
     funds.
       The House bill contains no similar provisions.
       The House recedes with an amendment to change ``parents'' 
     to ``family members'' to strike ``tuition repayment'' and 
     insert ``tuition payment or reimbursement'' and to provide an 
     exemption to the general prohibition on a lender's performing 
     functions for institutions to permit lenders to perform 
     services related to exit counseling at institutions.
       The Senate amendment terminates authority for the school as 
     lender program, effective June 30, 2012.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment establishes a compliance audit 
     requirement for all institutions of higher education serving 
     as an eligible lender, and all eligible lender trustees. The 
     compliance audit shall determine whether the institution of 
     higher education or lender is using all proceeds for need-
     based aid programs; is limiting administrative expenses; and 
     is using its proceeds to supplement and not supplant non-
     Federal funds for need-based grant programs.
       The House bill contains no similar provision.
       The House recedes.
       The House bill extends the period for which the cohort 
     default rate is calculated by one additional fiscal year. The 
     House bill requires the Secretary to calculate and publish at 
     least once each fiscal year, a report showing cohort default 
     rates and life of cohort default rates for categories of 
     institutions of higher education. The House bill defines 
     ``life of cohort default rate.'' The calculation of cohort 
     default rates using a three-year cohort default rate period 
     will begin with fiscal year 2008. Until three consecutive 
     years of cohort default rates are calculated using the three-
     year default period, cohort default rates will continue to be 
     calculated and penalties assessed using the two-year default 
     period. Penalties under the three-year cohort default rate 
     will not apply until data for the fiscal year 2010 cohort are 
     available.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 437. Discharge and cancellation rights in cases of 
         disability
       The Senate amendment specifies that a federal student loan, 
     including Perkins loan, will be discharged in the case of a 
     student who dies or becomes permanently and totally disabled, 
     such loans will also be discharged in the case of a student 
     borrower who is unable to engage in any substantial gainful 
     activity by reason of any medically determinable physical or 
     mental impairment that can be expected to result in death, 
     and has lasted or can be expected to last at least sixty 
     months. The Senate amendment also specifies that Secretary 
     may develop safeguards to prevent fraud and abuse in the 
     discharge and cancellation of loans for death, disability, or 
     inability to engage in substantial gainful activity due to a 
     physical or mental impairment expected to result in death. 
     The Senate amendments are effective July 1, 2008.
       The House bill contains no similar provisions.
       The House recedes.
       The House bill specifies that borrowers who receive a 
     permanent total disability rating from the Secretary of 
     Veterans Affairs, and provide such documentation to the 
     Secretary, shall be considered permanently and totally 
     disabled for the discharge of federal student loans, and 
     shall not be required to present additional documentation.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that a 
     borrower must be determined by the Secretary of Veterans 
     Affairs to be unemployable due to a service-connected 
     condition to be eligible for the discharge of federal student 
     loans.
     Section 438. Conforming amendments for repeal of section 439
       The Conferees make necessary conforming amendments to 
     accommodate for the repeal of section 439.

                  Part C--Federal Work-Study Programs

     Section 441. Authorization of appropriations
       The Senate amendment authorizes the appropriation of such 
     sums as may be necessary for the Federal work study program 
     through fiscal year 2013.
       The House bill authorizes the appropriation of 
     $1,500,000,000 for the Federal work study program for fiscal 
     year 2009, and such sums as may be necessary for the four 
     succeeding fiscal years (through fiscal year 2013).
       The House recedes with an amendment to extend authorization 
     through fiscal year 2014.
       The House bill amends the definition of `community 
     services' to include responding to the needs of the 
     community, which may include activities in preparation for 
     and during emergencies and natural disasters.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to insert ``emergency 
     preparedness and response'' into section 441(c)(1).
     Section 442. Allowance for books and supplies
       The Senate amendment and the House bill increase the 
     allowance for books and supplies used in calculating each 
     institution of higher education's average COA for purposes of 
     allocating funds to institutions of higher education 
     according to ``fair share'' allocation procedures from $450 
     to $600.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 443. Grants for federal work-study programs
       The Senate amendment strikes language in section 
     443(b)(2)(A) requiring institutions of higher education to 
     use at least five percent of their Federal work study 
     allocation for fiscal year 1999 to compensate students 
     employed in community service. The Senate amendment expands 
     the criteria upon which the Secretary may grant a waiver that 
     institutions of higher education use at least seven percent 
     of their Federal work study allocation for community service, 
     to include that a waiver may be granted if the institution of 
     higher education certifies that fifteen

[[Page 17234]]

     percent or more of its full-time students participate in 
     specified community service or tutoring and literacy 
     activities.
       The House bill adds the requirement that institutions of 
     higher education operate at least one civic education and 
     participation project in meeting its requirement to use at 
     least seven percent of their Federal work study allocation to 
     compensate students employed in community service. The House 
     bill defines `civic education and participation activities,' 
     and specifies priority for schools in the employment of 
     students in certain types of projects, and specifies that the 
     federal share of funds to compensate students may exceed 
     seventy-five percent.
       The Senate recedes with an amendment to strike ``such as 
     voting or running for elected office'', and to make civic 
     education activities permissible.
       The Conferees consider the community service aspect of the 
     Federal Work-Study program extremely important, and is 
     concerned by the fact that after years of growth, the 
     program's national average community service rate has 
     declined for each of the last two years. The Conferees urge 
     participating institutions to improve the availability and 
     quality of Work-Study community service job information they 
     provide to eligible students and to improve their outreach to 
     local community service agencies. The Education Department 
     and the Corporation for National and Community Service are 
     directed to provide all necessary information and technical 
     assistance to participating institutions in order to help 
     them expand the use of Work-Study funds for community service 
     and to strengthen the connection between Federal Work-Study 
     jobs and the educational or career goals of participating 
     students.
     Section 444. Flexible use of funds
       The House bill adds provisions to the flexible use of funds 
     under the Federal work study program to grant flexibility in 
     the event of a major disaster.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that 
     students who have been prevented from fulfilling their work 
     study job due to a major disaster are able to receive wages 
     for that position only until they are able to find another 
     work study job or continue to fulfill the responsibilities of 
     their past job, and for no longer than one academic year.
     Section 445. Job location and development programs
       The Senate amendment increases the amount of Federal work 
     study funds institutions of higher education may use for job 
     location and development programs from not more than ten 
     percent or $50,000 of their Federal work study allocations to 
     not more than ten percent or $75,000.
       The House bill contains no similar provision.
       The House recedes.
     Section 446. Additional funds for off-campus community 
         service
       The House bill establishes a new Off-Campus Community 
     Service Grant program under which the Secretary may award 
     grants to institutions of higher education to recruit and 
     compensate students for off-campus community service 
     employment.
       The Senate amendment contains no similar provision.
       The Senate recedes with technical amendments.
     Section 447. Work colleges
       The Senate amendment and the House bill strike ``work-
     learning'' each place it appears in the Work Colleges program 
     and replace it with ``work-learning-service.'' The Senate 
     amendment and the House bill make similar changes to 
     definitions for the Work Colleges program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment contains a provision providing support 
     for existing and new model student volunteer community 
     service projects.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment removes the separate authorization of 
     appropriations specifically for the Work-Colleges program and 
     provides for the use of funds appropriated.
       The House bill authorizes the appropriation of funds for 
     the Work Colleges program in the amount of such sums as may 
     be necessary for fiscal year 2009 through fiscal year 2013.
       The Senate recedes with an amendment to extend the 
     authorization through fiscal year 2014.

                  Part D--Federal Direct Student Loan

     Section 451. Terms and conditions of loans
       The Conferees adopt a technical amendment to add the 
     income-based repayment plan adopted by P.L. 110-84 to the 
     list of repayment options available to borrowers in the 
     Direct Loan program.
       The House bill amends the definition of `public service 
     job' for the Loan Forgiveness for Public Service Employees 
     provision under the Federal Direct Loan program to exclude 
     time served as a Member of Congress from eligible government 
     service. In addition, for purposes of this section the House 
     bill defines public health to include nurses, nurse 
     practitioners, nurses in a clinical setting, and full-time 
     professionals engaged in health care practitioner occupations 
     and health care support occupations, as such terms are 
     defined by the Bureau of Labor Statistics, and includes a 
     clarification of early childhood education and full-time 
     faculty member at a Tribal College or University.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires the Secretary to ensure that 
     monthly statements on Federal Direct Loan program loans and 
     other Department of Education publications do not contain 
     more than four digits of any individual's social security 
     number.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill provides that interest shall not accrue on 
     loans made under Part D that are disbursed on or after 
     October 1, 2008, for borrowers serving on active duty or 
     performing qualifying National Guard duty during a war or 
     other military operation or national emergency, and for 
     borrowers serving in an area of hostilities qualifying for 
     special pay.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that 
     individuals eligible for this benefit are ``eligible military 
     borrowers.''
       The Senate amendment requires that institutions 
     participating in the Direct Loan program provide disclosures 
     about the loans to borrowers.
       The House bill contains no similar provision.
       The House recedes with an amendment to specify the 
     disclosures in Section 433.
     Section 452. Funds for administrative expenses
       The House bill extends authorization for Direct Loan 
     program administrative expenses and for Federal Family 
     Education Loan account maintenance fees through fiscal year 
     2013.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ``2013'' and 
     insert ``2014.''
       The House bill requires the Secretary to have a financial 
     and compliance audit of all loans owned by the Department and 
     made under the Federal Direct Loan program, as well as all 
     contracts for Direct Loan program activities, conducted 
     annually by an independent organization. The House bill 
     requires the Secretary to release its budget justifications 
     to the public upon providing them to Congress and to make 
     quarterly reports publicly available containing the same 
     level of detail as annual reports included in the budget 
     justifications. The House bill includes additional reporting 
     requirements under paragraph (2). The House bill requires the 
     Secretary to have a financial and compliance audit of all 
     guaranty agencies participating under Part B, conducted 
     annually by a qualified independent organization. The results 
     of both audits must be submitted to Congress and be made 
     publicly available.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment requiring the GAO to 
     study the respective costs of the Direct Loan and FFEL 
     programs in title XI of this bill.
     Section 453. Guaranty agency responsibilities and payments; 
         reports and cost estimates
       The Conferees clarify that as of the date the Secretary 
     purchase a loan pursuant to the authority given her in the 
     Ensuring Continued Access to Student Loans Act, the guaranty 
     agency that previously insured such loan shall cease to have 
     any rights or responsibilities with respect to such loan. The 
     guaranty agency shall maintain a right to a payment they have 
     earned for any activity carried out up to such date.
       The Conferees require that the Secretary provide to 
     Congress detailed implementation and budget and cost 
     information on the student loan purchase program authorized 
     under the Ensuring Continued Access to Student Loans Act. The 
     budget and cost information is required to be reported 
     separately for the loan purchase and participation interest 
     purchase programs and reported in a manner that is comparable 
     to that included in the President's budget request for Part B 
     and Part D loans.
     Section 454. Loan cancellation for teachers
       The Conferees clarify that teachers employed by an 
     educational service agency are eligible for teacher loan 
     forgiveness program in Section 460 of the Higher Education 
     Act.

                     Part E--Federal Perkins Loans

     Section 461. Extension of authority/program authority
       The Senate amendment authorizes the appropriation of such 
     sums as may be necessary for federal capital contributions 
     for the Federal Perkins Loan program at such sums as may be 
     necessary for fiscal year 2008 through fiscal year 2012.
       The House bill authorizes the appropriation of $350,000,000 
     for the federal capital contributions for the Federal Perkins 
     Loan program for fiscal year 2009, and such sums as may be 
     necessary for the four succeeding fiscal years (through 
     fiscal year 2013). The House bill extends the authorization 
     of appropriations for federal capital contributions, in the 
     amount of such sums as may be

[[Page 17235]]

     necessary for fiscal year 2014 through fiscal year 2019, to 
     enable students receiving Perkins Loans for academic years 
     ending prior to October 1, 2014, to continue or complete 
     their courses of study.
       The Senate recedes with an amendment to authorize 
     appropriations of $300,000,000 for fiscal year 2009 and for 
     each of the five succeeding fiscal years and extends the 
     authorization of appropriations for federal capital 
     contributions, in the amount of such sums as may be necessary 
     for fiscal year 2014 through fiscal year 2019, to enable 
     students receiving Perkins Loans for academic years ending 
     prior to October 1, 2014, to continue or complete their 
     courses of study. .
     Section 462. Allowance for books and supplies
       The Senate amendment and the House bill increase the 
     allowance for books and supplies used in calculating each 
     institution of higher education's average cost of attendance 
     for purposes of allocating federal capital contributions to 
     institutions of higher education according to ``fair share'' 
     allocation procedures from $450 to $600.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 463. Agreements with institutions
       The House bill amends Federal Perkins Loan program 
     agreements between the Secretary and institutions of higher 
     education to provide that if an institution of higher 
     education has not knowingly failed to maintain an acceptable 
     collection record with respect to a defaulted Perkins Loan, 
     the Secretary may allow the institution of higher education 
     to refer the loan to the Secretary, without recompense, 
     except that the amount collected shall be repaid to the 
     referring institution of higher education within 180 days of 
     collection and shall be treated as an additional federal 
     capital contribution. The House bill adds language to limit 
     the authority of the Secretary to require the mandatory 
     assignment of Perkins Loans.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Conferees note that the Secretary of Education lacks 
     the authority under this section to require assignment of 
     defaulted Perkins loans. Furthermore, it is the intent of the 
     Conferees that any funds collected from defaulted Perkins 
     loans, including loans that have been assigned to the 
     Department of Education for additional collection activities, 
     be returned to the institution's revolving fund and available 
     for new loans to future students.
       The Conferees intend to prohibit administrative measures 
     that would weaken the program by reducing the Perkins Loan 
     funds available to lend to students. For this reason, the 
     Conferees agreed to provisions clarifying that the Secretary 
     is only permitted to require the assignment of defaulted 
     Perkins Loans to the Secretary when an institution of higher 
     education has knowingly failed to maintain collection 
     records. The fact that a loan has been in default for any 
     period of time does not mean that the institution has failed 
     to perform due diligence in its collection and is not grounds 
     for the Secretary to require the assignment of the loan.
     Section 464. Perkins loan terms and conditions
       The House bill increases annual Perkins Loan limits from 
     $4,000 to $5,500 for undergraduate students; and from $6,000 
     to $8,000 for graduate and professional students. The House 
     bill increases aggregate Perkins Loan limits from $40,000 to 
     $60,000 for graduate and professional students; from $20,000 
     to $27,500 for undergraduate students who have completed two 
     years of study; and from $8,000 to $11,000 for all other 
     students.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
       The Conferees adopt a provision to make the death or 
     disability discharge of Perkins loans consistent with how a 
     loan is discharged in the loan programs in Parts B and D.
       The Senate amendment and the House bill remove the 
     requirement that borrowers of Perkins Loans request 
     forbearance in writing and require that the terms of 
     forbearance agreed to by the borrower and the lending 
     institution of higher education must be documented and 
     recorded in the borrower's file and amend a cross-reference 
     regarding forbearance and the Armed Forces Student Loan 
     Interest Payment Program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill reduces the number of on-time, consecutive, 
     monthly payments required for rehabilitation of a Perkins 
     Loan from twelve to nine.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 465. Cancellation for public service
       The House bill revises the provision providing Perkins Loan 
     cancellation for teachers to be for service ``as a full-time 
     teacher for service in a high-need school''.
       The Senate amendment contains no similar provision.
       The House recedes with an amendment to include a full-time 
     teacher for service in an academic year in an educational 
     service agency as defined in 9101 (17) of the Elementary and 
     Secondary Education Act.
       The Senate amendment and the House bill expand the existing 
     Perkins Loan cancellations to include service ``in a pre-
     kindergarten or child care program that is licensed or 
     regulated by the State.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill adds Perkins Loan cancellation for service 
     ``as a full-time fire fighter for service to a local, State, 
     or Federal fire department or fire district.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill add Perkins Loan 
     cancellation for service ``as a full-time faculty member at a 
     Tribal College or University'', Perkins Loan cancellation for 
     service as a librarian with a master's degree in library 
     science, and employed in a school served under Title I of the 
     Elementary and Secondary Education Act, or in a public 
     library serving Title I school, and Perkins Loan cancellation 
     for service as a full-time speech language pathologist with a 
     master's degree, working exclusively with Title I schools.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 466. Sense of Congress regarding federal perkins 
         loans
       The House bill adds language stating the sense of the 
     Congress regarding Perkins Loans.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to modify the sense of 
     Congress.

                         Part F--Need Analysis

     Section 471. Cost of attendance
       The Senate amendment and the House bill exclude the value 
     of military housing or a military housing allowance received 
     by a student or his/her parent, from consideration as untaxed 
     income or benefits in the need analysis formula.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment has an effective date for the 
     amendments of July 1, 2008. The House bill has an effective 
     date for the amendments of July 1, 2009.
       The Senate and the House recede with an amendment to make 
     the effective date July 1, 2010.
     Section 472. Discretion to make adjustments
       The House bill provides for the discretion of the financial 
     aid administrator to consider nursing home expenses in 
     addition to other medical-related expenses in making an 
     adjustment to a student's expected family contribution.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to add dependent care 
     expenses to the list of circumstances in which a financial 
     aid administrator may make adjustments and also clarifies 
     that a student's dislocated worker status shall be 
     considered, in addition to dependent students and parents 
     dislocated worker status, as defined in the Workforce 
     Investment Act. In addition, the discretion of financial aid 
     administrators is expanded to enable them to offer 
     unsubsidized Stafford loans to dependent students whose 
     parents do not support them and refuse to complete a Free 
     Application for Federal Student Aid (FAFSA).
     Section 473. Definitions
       The House bill authorizes the Secretary to issue 
     regulations that allow the use of the second preceding tax 
     year information to carry out the simplification process.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to permit the 
     Secretary to use data from the second preceding tax year to 
     carry out the simplification of applications. Such 
     simplification may include the sharing of data between the 
     IRS and the Department of Education pursuant to the 
     applicant's permission.
       The House bill specifies that ``total income'' with respect 
     to dislocated workers is equal to estimated untaxed income 
     and benefits for the current tax year minus estimated 
     excludable income for the current year.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill stipulate that 
     students who live in military housing or receive a basic 
     allowance for housing shall receive an allowance for board, 
     but not for room, in determining the cost of attendance.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Conferees adopt technical changes to P.L. 110-84 to 
     clarify when an orphan, individual in foster care or 
     emancipated minor can be declared an independent student.
       The House bill excludes any income earned from work under a 
     cooperative education program at an institution of higher 
     education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill excludes the amount that the student's 
     military pay was reduced by due to his/her contribution to 
     the Montgomery GI bill (MGIB) education benefit

[[Page 17236]]

     when calculating the amount of ``other financial assistance'' 
     the student has access to in his/her first year of using the 
     MGIB education benefit.
       The Senate amendment contains no similar provision.
       Both the Senate and the House recede with an amendment to 
     exclude veteran's education benefits from being counted as 
     available financial assistance in determining eligibility for 
     federal student financial aid.
       The Senate amendment's effective date for this amendment is 
     July 1, 2008. The House bill's effective date for this 
     amendment is July 1, 2009.
       The Senate recedes with an amendment to make this amendment 
     effective on July 1, 2010.

       Part G--General Provisions Relating to Student Assistance

     Section 481. Definitions
       The Senate amendment clarifies that the Secretary may 
     reduce the number of weeks of instruction for programs that 
     measure program length in credit hours or clock hours. The 
     Secretary may not waive the requirement for institutions of 
     higher education that solely measure student learning based 
     on direct assessment.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees include a definition of an ``educational 
     service agency.''
     Section 482. Master calendar
       The House bill includes ``notices pursuant to sections 478 
     and 483(a)(6)'' in the March deadline and ``final notices'' 
     pursuant to the same sections.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill require the 
     Secretary, prior to the beginning of each award year, to 
     provide institutions of higher education with a list of all 
     reports and disclosures required under the Higher Education 
     Act, including, the date each report or disclosure is due, 
     required recipients of each report or disclosure, the 
     required content of each report or disclosure, and references 
     to statutory authority, applicable regulations.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with an amendment to add an effective 
     date of July 1, 2010.
     Section 483. Improvements to paper and electronic forms and 
         processes
       The Senate amendment includes provisions pertaining to 
     common financial aid forms. The House bill includes 
     provisions pertaining to common financial aid forms that are 
     primarily the same as the Senate amendment's provisions, 
     however, the House bill also specifies that: the application 
     is for applying and reapplying to determine need, and the 
     Secretary shall work to make the FAFSA consumer-friendly, and 
     make the application available in formats that are accessible 
     to individuals with disabilities.
       The Senate recedes.
       The Senate amendment and the House bill require the 
     Secretary to maintain a paper version of the FAFSA. The 
     Senate amendment requires the Secretary to encourage 
     applicants to file the electronic version of the application.
       The House recedes.
       The Senate amendment and the House bill require the 
     Secretary to develop an EZ FAFSA for individuals eligible for 
     automatic-zero expected family contribution (auto-zero EFC). 
     The House bill also includes individuals who are eligible for 
     simplified needs test (SNT).
       The Senate recedes with an amendment that the Secretary 
     shall use the simplified paper application form after 
     appropriate field testing.
       The Senate amendment and the House bill require that the 
     form contain only elements necessary to determine student 
     eligibility for federal student aid if such applicant is 
     eligible for auto-zero EFC. The House bill also extends this 
     provision to applicants eligible for SNT.
       The Senate recedes.
       The Senate amendment and the House bill include a provision 
     that requires the Secretary to include State data items 
     necessary to award State financial assistance, unless that 
     State does not permit use of the EZ FAFSA.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill include a provision 
     regarding free availability and processing of the EZ FAFSA. 
     The House bill further states that the data collected from 
     the EZ FAFSA shall be available to institutions of higher 
     education, guaranty agencies and states.
       The Senate recedes.
       The Senate amendment states that the Secretary shall phase 
     out printing the full paper FAFSA at such time as it is 
     determined to not be cost effective. Additionally, the 
     Secretary is required to maintain an easily accessible, 
     downloadable paper version and provide a printed version of 
     the full FAFSA upon request.
       The House bill requires that an easily accessible version 
     be made available, but specifies that it must be made 
     available on the same website used to provide students with 
     the electronic form.
       The Senate and the House recede with an amendment to 
     require the Secretary to maintain the FAFSA in a printable 
     form and provide a printed copy of the full paper version of 
     FAFSA upon request.
       The House bill requires the Secretary to report annually to 
     Congress the impact of the digital divide on students 
     applying for Title IV aid. The Secretary's report must 
     specifically address the impact on independent and dependent 
     students as well as those students who are traditionally 
     underrepresented.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the 
     Secretary to maintain the data and report the information 
     periodically, rather than annually.
       The Senate amendment and the House bill require the 
     Secretary to produce and make available an electronic version 
     of the FAFSA and to develop a simplified electronic 
     application for auto-zero EFC eligible students. The House 
     bill extends this eligibility to those eligible for 
     simplified needs test.
       The Senate recedes.
       The Senate amendment requires that the Secretary use all 
     available technology to ensure that students who complete the 
     electronic version of the FAFSA answer only the minimum 
     number of questions necessary.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill require that 
     students who are both auto-zero EFC and SNT eligible be 
     required to submit only the data necessary to determine their 
     eligibility for auto-zero EFC and SNT. The Senate amendment 
     and the House bill require the Secretary to include space on 
     the electronic form for State data, except that a student 
     shall be required to enter data only for his/her State.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill include a provision 
     regarding data availability. The House bill also requires 
     that the data shall be made available to institutions of 
     higher education, guaranty agencies and States.
       The Senate recedes.
       The Senate amendment and the House bill include a provision 
     regarding privacy and data confidentiality.
       The Senate recedes with an amendment to strike the 
     reference to State aid awarded under the LEAP program.
       The Senate amendment and the House bill contain similar 
     provisions regarding the use of electronic signatures.
       The Senate recedes with an amendment to add language that 
     the Secretary may ``continue to'' permit an electronic form 
     to be completed without a signature if a signature is 
     subsequently submitted or if a Personal Identification Number 
     (PIN) is used.
       The Senate amendment permits the Secretary to assign PINs 
     to applicants to allow applicants to sign the electronic 
     version of the FAFSA. The House has the same provision, 
     except that it specifies that the PIN can be used in lieu of 
     a signature for forms required by the LEAP program.
       The House recedes with an amendment clarifying that the 
     Secretary ``may continue to'' assign PINs.
       The Senate amendment and the House bill include similar 
     provisions regarding PIN improvement, but the Senate 
     amendment specifies that a real time data match must be 
     implemented within 180 days following enactment.
       The Senate recedes with an amendment to require the 
     Secretary to ``continue to work with'' the Social Security 
     Administration to minimize the time it takes for a student to 
     obtain a PIN.
       The House bill states that the Secretary shall work to 
     reduce the number of data elements entered by all applicants 
     by fifty percent. The House bill further specifies that the 
     Secretary must submit a report on the reduction process to 
     each of the authorizing committees two years after enactment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to: use the number of 
     data elements on the FAFSA from the 2009-2010 academic year 
     as the baseline to be reduced by fifty percent; insert 
     language that the Secretary's efforts, in cooperation with 
     representatives from other agencies and organizations, be 
     consistent with other provisions in this section; strike the 
     language exempting form development required under this Act 
     from the reduction goal; and to include a date by which the 
     report shall be submitted.
       The Senate amendment specifies that the number of state 
     items on the form shall not be less than the number of items 
     in award year 2005-2006. The House bill specifies that the 
     number of state items shall not be less than the number of 
     items in award year 2008-2009.
       The House recedes with an amendment to change the award 
     year to 2008-2009.
       The Senate amendment requires the Secretary to review the 
     data annually to determine which items a State needs to award 
     need-based aid and whether the State permits an applicant to 
     file a simplified form.

[[Page 17237]]

       The House bill requires the Secretary to conduct an annual 
     review of the forms and non-financial data States require to 
     award need-based aid.
       The House recedes.
       The House bill requires the Secretary to publish an annual 
     notice in the Federal Register requiring States to inform the 
     Secretary what State-specific data are required to deliver 
     State need-based aid and if the State does not permit 
     applicants to use a simplified form.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires States to notify the Secretary if 
     the State permits applicants to file a form for the purposes 
     of determining eligibility and of the State-specific 
     nonfinancial data the State requires for delivery of need-
     based aid.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment requires that if a State does not 
     permit applicants to use a simplified form the Secretary may 
     decide not to include the State's questions on the FAFSA.
       The House bill requires the States that do not permit 
     applicants to use a simplified form due to State law or 
     agency policy to notify the Secretary. The State must also 
     include an estimate of the costs associated with the use a 
     simplified form. The House bill requires that State 
     applicants for LEAP notify the Secretary if the use of a 
     simplified form is permitted.
       The House recedes.
       The Senate amendment and the House bill prohibit charges to 
     students and parents for use of the form.
       Both the Senate and the House recede with an amendment to 
     specify that no data collected on a form for which a fee is 
     charged shall be used to complete the form prescribed under 
     this section, other than a Federal or State income tax form 
     prepared by a paid income tax preparation service for the 
     primary purpose of filing a Federal or State income tax 
     return.
       The Senate amendment restricts the use of the applicant's 
     PIN by select entities.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment requires the Secretary to permit 
     students to complete the FAFSA as early as practicable prior 
     to January 1 of the student's planned year of enrollment.
       The House bill states that students should be able to 
     complete the FAFSA as early as practicable prior to October 
     15 in the year prior to the student's planned year of 
     enrollment.
       The House recedes.
       The Senate amendment and the House bill state that the 
     Secretary shall develop the means to provide students with an 
     early estimate of their financial aid eligibility. The House 
     bill further states that the Secretary must notify applicants 
     that the EFC is subject to change.
       The Senate recedes with an amendment to require the 
     Secretary to consult with representatives of States, 
     institutions of higher education and other individuals with 
     experience in student financial aid processes in making 
     updates to forms used to provide early estimates.
       The Senate amendment provides that FAFSA data shall be 
     provided to institutions of higher education, guaranty 
     agencies and states without charge. The Senate amendment 
     provides private organizations and consortia that develop 
     software used by Title IV participating institutions of 
     higher education the necessary specifications to produce and 
     distribute software. The Senate amendment authorizes the 
     Secretary to include space for parent's social security 
     number and date of birth on the FAFSA.
       The House bill contains no similar provisions.
       The House recedes.
       The Senate amendment requires the Secretary to test and 
     implement a toll free telephone number for the FAFSA 
     application system.
       The House bill contains no similar provision.
       The House recedes with an amendment to: strike the 
     requirement that the Secretary test the system not later than 
     two years after the date of enactment of this act; add in 
     language that the Secretary shall ``continue to implement'' 
     the toll-free telephone based system; and make the submission 
     of applications over this system a separate activity by 
     adding ``and (b)'' before it.
       The Senate amendment authorizes applicants to use a 
     preparer for consultative or preparer services. Any entity 
     that provides any value-added service such as completion or 
     submission of the FAFSA shall provide a clear and conspicuous 
     notice that the FAFSA is free, can be completed without 
     professional assistance, and provide a link to the Department 
     of Education's website. Also, the Senate amendment specifies 
     that the provider cannot charge recipients who qualify for 
     SNT or auto-zero EFC.
       The House bill states that any entity that provides any 
     value-added service such as completion or submission of the 
     FAFSA shall provide notice that the FAFSA is free; can be 
     completed without professional assistance; and provide a link 
     to the Department of Education's website.
       The House recedes with the amendment that: states that the 
     preparer's identification information is required if a fee is 
     charged for the services; the preparer providing services 
     must clearly inform each individual that the forms are free 
     and may be completed without professional assistance; 
     modifies the language that the FAFSA and EZ FAFSA are free 
     forms that may be completed via paper or electronically; 
     strikes subpart (E) which refers to not charging any fee to 
     any individual who meets specified requirements; and 
     specifies that a preparer is subject to the same penalties as 
     an applicant for purposely giving false or misleading 
     information in the application.
       The Senate amendment and the House bill include an early 
     application and demonstration program to determine the 
     benefits and costs of early notification. The House bill's 
     purpose is more detailed.
       The Senate recedes with an amendment to title this 
     provision ``Early Application and Estimated Award 
     Demonstration Program.''
       The Senate amendment implements the early application 
     demonstration program within two years of the enactment of 
     this Act. The Senate amendment also states that for all of 
     the dependent students who participate in the demonstration 
     program, those who are also auto-zero EFC eligible shall be 
     provided with an EFC and Pell Grant award amount for the 
     first year.
       The House bill contains a similar provision that provides 
     an estimated EFC and aid award for all students.
       The House recedes with amendments that: modify the 
     requirement that the Secretary provide each student with ``an 
     estimated award''; and strike the requirement that the 
     Secretary provide estimates to students who do not meet the 
     requirements.
       The Senate amendment and House bill include provisions 
     identifying participants. The Senate amendment specifies that 
     the secondary school must commit select resources and 
     participate in an evaluation.
       The House recedes.
       The Senate amendment specifies that the application must 
     contain certain assurances, such as the amount of state need-
     based aid available, a commitment to provide actual awards 
     and estimates, and a plan to recruit institutions of higher 
     education.
       The House bill contains a comparable provision regarding 
     the application process for the demonstration program, but 
     does not include the Senate's specific assurances.
       The House recedes with amendments to the application 
     requirements: clarify that the information provided is an 
     estimate rather than an award determination; all 
     participating dependent students must receive estimated 
     awards; State applications must include a plan to select 
     institutions of higher education and postsecondary schools 
     that to the extent possible serve different populations are 
     of varying types ``and sectors'' (rather than ``control'').
       The Senate amendment grants the Secretary the authority to 
     waive requirements for an institution of higher education to 
     participate in the demonstration program.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment requires the Secretary to conduct an 
     evaluation of the demonstration program.
       The House bill includes a similar, but less detailed 
     provision.
       The House recedes with an amendment to include a 
     description of the extent to which estimated awards differ 
     from actual awards made to students participating in the 
     program.
       The Senate amendment and the House bill have a provision 
     requiring the Secretary to consult with the Advisory 
     Committee on Student Financial Assistance in implementing the 
     pilot program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment requires the Comptroller General and 
     the Secretary, in consultation with a study group, to design 
     and conduct a study to identify and evaluate the means of 
     simplifying the process of applying for Federal student 
     financial aid. The Secretary, with the Secretary of the 
     Treasury, may use Internal Revenue Service data to pre-
     populate the FAFSA if such use would not negatively impact 
     students, institutions, states or the federal government.
       The House bill includes a provision that expresses the 
     Sense of the Congress that the Department of Education and 
     the Secretary of Treasury should work together to develop a 
     process by which the Department of Education would be able to 
     obtain student's financial information from the IRS, with the 
     student's permission, to assist with completing the FAFSA.
       The House recedes with an amendment that directs the 
     Secretary to continue current FAFSA simplification efforts, 
     in cooperation with the Internal Revenue Service, and to 
     report on efforts to date. In addition, the Comptroller 
     General is to convene a group to study additional 
     simplification of the financial aid application process, 
     using the current statutory requirements, and to

[[Page 17238]]

     identify changes to the need analysis formula that will be 
     necessary to reduce the amount of financial information 
     students and families need to provide to receive a 
     determination of an eligibility for student financial aid.
       The Conferees intend that, in evaluating the impact of 
     using income from the year that is two years prior to a 
     student's enrollment on the ability of States and 
     institutions to make financial aid awards and commitments, 
     the Secretary should assess the overall application burden on 
     students and families applying for all types of aid, and any 
     additional costs to States and institutions. The Conferees 
     recognize one of the advantages of the current FAFSA 
     application and process is that it is used by many States and 
     institutions to award State and institutional aid in addition 
     to Federal aid. Students and families would not be well 
     served if the application and award process for Federal 
     student aid were simpler, but the application and award 
     process for State and institutional aid became more 
     cumbersome.
       The Senate amendment and the House bill include similar 
     provisions to require the Secretary to use the savings 
     produced by not printing the full paper FAFSA to improve 
     access to the electronic forms for low-income students.
       The Senate recedes.
     Section 484. Model institutions financial aid offer form
       The House bill directs the Secretary to report on the 
     adequacy of the financial aid offer forms provided by 
     institutions of higher education to students and their 
     families. The report should include a model financial aid 
     offer form which includes: cost of attendance the amount of 
     aid that does not have to repaid, and types and amounts of 
     loans, for which the student is eligible.
       The Senate amendment contains no similar provision.
       The Senate recedes with amendments to: direct the Secretary 
     to convene a group for the purpose of offering 
     recommendations to improve financial aid offer forms; include 
     additional individuals on the list of members of the group; 
     and modify the contents of the form.
     Section 485. Student eligibility
       The House bill eliminates the exemption for students from 
     the Republic of the Marshall Islands and the Federated States 
     of Micronesia from providing their social security number 
     when applying for federal student aid.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment allows institutions to determine that 
     a student has the ability to benefit from postsecondary 
     education if the student satisfactorily completes six credit 
     hours or the equivalent coursework applicable toward a degree 
     or certificate offered by the institution of higher 
     education.
       The House bill contains no similar provision.
       The House recedes.
       The House bill specifies that the provision of assistance 
     to students from the Republic of Palau only applies for 
     federal student aid under Title IV subpart 1 of Part A and 
     would expire September 30, 2009.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill make several 
     updates to change ``telecommunications'' to ``distance 
     education'' to be consistent with the newly added definition 
     of distance education; update the reference to postsecondary 
     vocational institutions to reflect the reauthorization of the 
     Perkins Career and Technical Education Act in 2006
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill allows a student who has lost student aid 
     eligibility due to a drug conviction that complies with 
     requirements established by the Secretary to regain 
     eligibility for Title IV aid if the student successfully 
     passes two unannounced drug tests conducted by a drug 
     rehabilitation program.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       Currently, students lose their eligibility for federal 
     student financial aid if they were convicted for the sale or 
     possession of drugs while receiving such aid. This provision 
     does not affect the eligibility of students who may have been 
     arrested prior to the start of their first year of college, 
     or who were arrested during any period where they were not 
     receiving federal student aid. Current law provides 
     mechanisms by which students may regain their eligibility for 
     federal student financial aid.
       The Conferees believe that the Department of Education and 
     institutions of higher education should take steps to ensure 
     that students understand the implications and provisions of 
     section 484(r). As currently worded, the `drug penalty' 
     question on the FAFSA may serve as a barrier to completing 
     the form, as students may not understand the scope of the 
     prohibition. Data from the Department of Education show that 
     in the 2007-2008 award year, at least 15,700 students 
     initially filled the form out in such a way that they would 
     have been ineligible for financial aid for at least part of 
     the academic year. Upon further review and revision of these 
     applications, approximately 5,400 students were deemed 
     ineligible for aid-thirty-four percent of those originally 
     deemed ineligible for aid.
       The Conferees believe that the Department of Education 
     should immediately re-word the question on the FAFSA form in 
     order to more accurately reflect the provision.
       Furthermore, the Conferees encourage the Department of 
     Education to take steps to ensure the integrity and privacy 
     of the drug tests used by students to regain eligibility. 
     Such drug testing should utilize only highly-reliable methods 
     conducted by qualified drug rehabilitation programs.
       The Senate amendment permits students with intellectual 
     disabilities to receive Pell grants, FSEOG, and Federal Work 
     Study under certain circumstances.
       The House bill includes similar provisions.
       The Senate recedes with an amendment to limit the waivers 
     the Secretary can provide to implement this section.
       The Conferees intend to provide eligibility to students 
     with intellectual disabilities attending any inclusive 
     comprehensive transition and postsecondary program for 
     students with intellectual disabilities as defined by this 
     Act, including but not limited to students attending programs 
     participating in grants authorized under subpart 2 of Title 
     VII of this Act, provided that such students meet the 
     eligibility criteria described in this section.
       The House bill requires the Secretary, in consultation with 
     the Central Processing System, to analyze data from the FAFSA 
     containing information regarding the number, characteristics, 
     and circumstances of students denied Federal student aid 
     based on a drug conviction while receiving Federal aid.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ``in 
     consultation with the Central Processing System.''
       The Conferees expect the Secretary to work with the Central 
     Processing System in developing the report or access to 
     federal student aid for certain populations as required in 
     this section. The Conferees understand that, as Congress 
     continues to examine the issue of drug-related student 
     eligibility, it is critical to have full information about 
     the impact of the provision. The Conferees intend that the 
     information collected, analyzed, and made available to the 
     public under this section will provide an understanding of 
     the demographic background of the students excluded from 
     federal aid by the drug prohibition, the nature of the 
     offenses underlying the exclusion, and other characteristics 
     of such students that may better inform the work of Congress 
     as it continues to examine the issue of drug-related student 
     eligibility.
     Section 486. Statute of limitations and state court judgments
       The Senate amendment and the House bill specify that for 
     the Perkins Loan program, institutions shall not be subject 
     to a defense raised by a borrower on the basis of a claim of 
     infancy under state law.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment provides that obligations to repay 
     loans and grant overpayments, costs and other charges on 
     defaulted loans, and state court judgments shall not apply in 
     the case of deceased student or a deceased student's estate. 
     Neither a deceased student's estate nor the estate of a 
     deceased student's family shall be required to repay any 
     Title IV financial assistance, nor interest, collection 
     costs, or other charges.
       The House bill contains no similar provision.
       The House recedes.
     Section 487. Readmission requirements for service members
       The House bill requires any institution of higher education 
     that requires a student, who is a member of the Armed Forces 
     or a member of the Armed Forces in retired status, whose 
     attendance is interrupted by a call or order to active duty 
     to subsequently reapply for readmission at the time of the 
     conclusion of active duty to justify this requirement in 
     writing to the Secretary.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to establish a 
     standard process for students who are required to leave an 
     institution because they have been called to active duty to 
     re-enroll at the institution in the same academic standing 
     the student had before leaving the institution. Such process 
     is modeled after the process established for servicemembers 
     to return to employment after serving on active duty in the 
     Uniformed Services Employment and Reemployment Rights Act.
     Section 488. Institutional and financial assistance 
         information for students
       The Senate amendment requires each institution of higher 
     education to make available to current and prospective 
     students information about its plans for improving the 
     academic program of the institution of higher education.
       The House bill contains no similar provision.

[[Page 17239]]

       The House recedes with an amendment to make a technical 
     change.
       The Senate amendment alters the requirement that 
     institutions make available to current and prospective 
     students the terms and conditions under which students 
     receive Federal Family Education Loan and Direct Loan to also 
     include Perkins Loans.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill require 
     institutions to make available to current and prospective 
     students the institution of higher education's policies and 
     sanctions related to copyright infringement, including a 
     description of actions taken by the institution of higher 
     education to detect and prevent the unauthorized distribution 
     of copyrighted materials on the institution of higher 
     education's technology system.
       Both the Senate and the House recede with an amendment to 
     replace language in (iv) with language requiring institutions 
     to make available the development of plans to detect and 
     prevent unauthorized distribution of copyrighted material on 
     the institution of higher education's information technology 
     system which shall, to the extent practicable, include 
     offering alternatives to illegal-downloading or peer-to-peer 
     distribution of intellectual property, as determined by the 
     institution of higher education in consultation with the 
     Chief Technology Officer or other designated officer of the 
     institution.
       The Conferees have combined elements from both bills to 
     require institutions to advise students about this issue and 
     to certify that all institutions have plans to combat and 
     reduce illegal peer to peer file sharing.
       Experience shows that a technology-based deterrent can be 
     an effective element of an overall solution to combat 
     copyright infringement, when used in combination with other 
     internal and external solutions to educate users and enforce 
     institutional policies.
       Effective technology-based deterrents are currently 
     available to institutions of higher education through a 
     number of vendors. These approaches may provide an 
     institution with the ability to choose which one best meets 
     its needs, depending on that institution's own unique 
     characteristics, such as cost and scale. These include 
     bandwidth shaping, traffic monitoring to identify the largest 
     bandwidth users, a vigorous program of accepting and 
     responding to Digital Millennium Copyright Act (DMCA) 
     notices, and a variety of commercial products designed to 
     reduce or block illegal file sharing.
       Rapid advances in information technology mean that new 
     products and techniques are continually emerging. 
     Technologies that are promising today may be obsolete a year 
     from now and new products that are not even on the drawing 
     board may, at some point in the not too distant future, prove 
     highly effective. The Conferees intend that this Section be 
     interpreted to be technology neutral and not imply that any 
     particular technology measures are favored or required for 
     inclusion in an institution's plans. The Conferees intend for 
     each institution to retain the authority to determine what 
     its particular plans for compliance with this Section will 
     be, including those that prohibit content monitoring. The 
     Conferees recognize that there is a broad range of 
     possibilities that exist for institutions to consider in 
     developing plans for purposes of complying with this Section.
       Numerous institutions are utilizing various technology 
     based deterrents in their efforts to combat copyright 
     infringement on their campuses. According to a report of the 
     Joint Committee of the Higher Education and Entertainment 
     Communities, many institutions of higher education have taken 
     significant steps to deal with the problem. Indiana 
     University, for example, hosts an extensive ``Are you 
     legal?'' educational campaign for students on the issues, and 
     enforces campus policies on proper use of the network. It 
     acts on DCMA notices by disconnecting students from the 
     network and requires tutorials and quizzes to restore 
     service. Second offenders are blocked immediately and are 
     sent to the Student Ethics Committee for disciplinary action.
       Audible Magic's CopySense Network Appliance provides 
     comprehensive control over Peer-to-Peer (P2P) usage on a 
     university's network. The CopySense Appliance identifies and 
     blocks illegal sharing of copyrighted files while allowing 
     other legitimate P2P uses to continue. It filters copyrighted 
     P2P content by sensing an electronic fingerprint unique to 
     the content itself, which is very similar to the way virus 
     filters operate.
       Red Lambda's ``Integrity'' is a network security solution 
     dedicated to the management of file-sharing activities via 
     protocols like P2P, IM, IRC, and FTP. This technology is able 
     to detect all P2P, OS file-sharing, FTP, IM, proxy use, Skype 
     and application tunneling over HTTP, HTTPS, DNS and ICMP 
     protocols.
       The University of Maryland, College Park, severely 
     restricts bandwidth for residential networks and block 
     certain protocols. It designed ``Project Nethics'' to promote 
     the responsible use of information technology through user 
     education and policy enforcement. A third violation can 
     result in eviction from the university housing system. 
     Montgomery College in Maryland enforces an Acceptable Use 
     Policy on its wired and wireless networks.
       Additional existing technological approaches can deter 
     illegal file sharing by automatically processing notices sent 
     by scanning vendors then taking actions such as messaging the 
     user via browser redirection, applying the appropriate 
     sanction and automatically re-enable browsing after a timeout 
     or reconnect fee is paid. Other institutions use technology 
     to appropriately manage their campus networks by limiting 
     and/or shaping bandwidth, such as Packeteer's packet shaping 
     technology.
       The Senate amendment requires institutions to make 
     available to current and prospective student's information on 
     student body, diversity, the placement in employment and 
     types of employment obtained by graduates, the institutions 
     report on fire safety, and the retention rate of certificate 
     or degree-seeking, full-time undergraduate students.
       The House bill contains no similar provision.
       The House recedes.
       The House bill requires institutions to make available to 
     current and prospective students their policies regarding 
     meningococcal vaccinations.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that 
     institutions shall disclose policies on all vaccinations, not 
     only meningococcal vaccinations. The Conferees note that 
     institutions of higher education should have a policy on 
     vaccinations of students. Of particular concern are the 
     recent outbreaks of meningitis on college campuses. The 
     Center for Disease Control's Advisory Committee on 
     Immunization Practices has reported that college freshmen, 
     especially those who live in dormitories, are at a modestly 
     increased risk for meningococcal disease compared with other 
     persons of the same age. There are nearly 3,000 cases of 
     meningococcal disease every year in the U.S. According to the 
     Centers for Disease Control and Prevention between ten and 
     twelve percent of the cases are fatal (about 300 to 360). 
     Among those who survive meningococcal disease, approximately 
     twenty percent suffer long-term consequences, such as brain 
     damage, kidney disease, hearing loss or limb amputations.
       The Senate amendment and the House bill allow an 
     institution of higher education to adjust the calculation of 
     completion and graduation rates for certain students. Under 
     the Senate amendment and the House bill, if the number of 
     students who leave school to serve in the Armed Forces, on 
     official church missions, or with a recognized foreign aid 
     service of the Federal government represent twenty percent or 
     more of certificate- or degree-seeking, full-time 
     undergraduate students, the institution of higher education 
     may exclude the time such students were not enrolled from the 
     calculation.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment requires institutions to disaggregate 
     data on completion and graduation rates based on student 
     gender, race/ethnicity, and receipt of a Pell Grant, receipt 
     of specific federal loans but not a Pell Grant, and non-
     receipt of a Pell Grant or specific federal loans. The Senate 
     amendment does not require the disclosure of data if 
     reporting would not yield statistically reliable information 
     or would reveal personally identifiable information.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees believe that the disaggregation of completion 
     and graduation rates of students attending institutions of 
     higher education, as specified under section 485 (a)(7), will 
     yield important information regarding the degree to which 
     different types of students are completing postsecondary 
     education programs. The Conferees acknowledge that two-year 
     degree-granting institutions of higher education face unique 
     considerations in reporting such data, because these 
     institutions often enroll students for purposes beyond 
     certificate and degree programs. Two-year institutions should 
     not be exempt from reporting completion and graduation rates. 
     However, the Conferees believe it is appropriate for the 
     Secretary to assist these institutions in reporting such data 
     accurately and, if necessary, to develop supplemental 
     measures of success that take into consideration the multiple 
     missions and the varied needs and goals of the individuals 
     who attend two-year institutions and the communities such 
     institutions serve. The group required to be convened under 
     section 485(a)(7)(B) is meant to achieve that goal.
       The Senate amendment requires institutions of higher 
     education to offer specific disclosures during a required 
     exit counseling session to borrowers of loans made, insured, 
     or guaranteed under Parts B, D, or E but excludes PLUS Loans 
     and Consolidation Loans.
       The House bill contains no similar provisions
       The House recedes with an amendment to reorder the 
     provisions in the section to reduce redundancy, clarify that 
     information on repayment plans shall include the average 
     anticipated monthly repayments under each plan, specify that 
     a general description of

[[Page 17240]]

     loan forgiveness provisions be included, along with a copy of 
     information provided by the Department and add that borrowers 
     must be informed of the consequences of default on loans 
     including adverse credit reports, federal offset, and 
     litigation.
       The Senate amendment requires institutions to provide 
     borrowers with a clear and conspicuous notice describing the 
     general effects of using a consolidation loan to discharge a 
     borrower's student loans. The House bill contains no similar 
     provision.
       The House recedes.
       The Senate amendment amends a requirement for the Secretary 
     to compile and disseminate information on State and other 
     prepaid tuition and savings programs to require the Secretary 
     to also compile and disseminate information on State grant 
     assistance programs. The Senate amendment also requires the 
     Secretary to disseminate such information through means 
     including the Internet.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill add new provisions 
     related to the calculation of completion and graduation rates 
     of student athletes. Under the Senate amendment and the House 
     bill, if students who leave school to serve in the Armed 
     Forces, on official church missions, or with a recognized 
     foreign aid service of the Federal government represent more 
     twenty percent or more of certificate- or degree-seeking, 
     full-time undergraduate students, the institution of higher 
     education may exclude the time such students were not 
     enrolled from the calculation.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill exclude foreign 
     institutions from having to disclose their campus security 
     policies and campus crime statistics.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill amends the Clery Act to require greater 
     coordination between campus security and local law 
     enforcement.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify the 
     requirement for greater transparency in the relationship 
     between campus security personnel and State and local law 
     enforcement agencies, including whether institutions have 
     agreements with such agencies, such as written memoranda of 
     understanding, for the investigation of alleged criminal 
     offenses.
       It is the intent of the Conferees that the amendments made 
     to this section will help protect students and personnel on 
     campuses.
       The House bill adds four crimes to the list of crimes an 
     institutions must report as ``hate crimes'' in cases where 
     the victim is intentionally selected because of their actual 
     or perceived race, gender, religion, sexual orientation, 
     ethnicity or disability.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Conferees believe that this change will facilitate 
     uniformity in campus crime reporting to both the Department 
     of Education and the FBI's Uniform Crime Reporting (UCR) 
     Program, the voluntary national crime data collection program 
     based on the submissions of more than 17,000 city, county, 
     state, tribal, and federal law enforcement agencies. Each of 
     the offense types required under this section is already an 
     integral part of the FBI UCR crime data reporting program.
       To increase awareness of hate crimes on college campuses, 
     the 1998 amendments to the Higher Education Act required all 
     colleges and universities to collect and report hate crime 
     statistics to the Office of Postsecondary Education (OPE) of 
     the Department of Education. The Department of Education 
     utilized the definition of hate crime developed by the FBI, 
     but the criminal offenses required to be reported did not 
     match the existing FBI crime categories. The current HEA 
     crime category omissions have resulted in critical gaps in 
     OPE data, as well as discrepancies and substantial 
     inconsistencies between FBI and OPE hate crime statistics. 
     The Conferees intend for this provision to provide parents 
     and students a more accurate sense of campus safety by making 
     the crime categories required to be reported to the 
     Department of Education parallel those collected by the FBI's 
     UCR Program and published in its annual publications.
       The Senate amendment and the House bill require 
     institutions to make available to current and prospective 
     students a statement of current campus policies regarding 
     immediate emergency response and evacuation procedures to 
     notify the campus community of a significant emergency or 
     dangerous situation that poses a threat to students or staff.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       Both the Senate amendment and House bill change current 
     disclosure requirements for campus safety policies and 
     procedures. The Senate amendment and House bill have similar 
     requirements for institutions notifying the campus community 
     in the event of a significant emergency.
       The Conferees adopt the provisions as modified, with an 
     amendment to require institutions to publish their procedures 
     to immediately notify the campus community upon the 
     confirmation of a significant emergency or dangerous 
     situation, unless issuing such notification would compromise 
     efforts to contain the emergency. The amendment also provides 
     that notifications should be made for emergencies on campus 
     as defined by the Clery Act.
       The Conferees intend that each institution's statement of 
     emergency policy should clearly articulate a method to 
     promptly determine whether incidents pose an immediate threat 
     to the health or safety of students or staff. This policy 
     statement should include a method, or methods, to initiate 
     dissemination of the required emergency notifications 
     immediately and without any delay following a professional 
     determination by law enforcement or other authorities that an 
     emergency exists. The Conferees believe it is important that 
     the Department be informed by past demonstrated ability of 
     institutions to take immediate action in the face of campus 
     emergencies in developing any regulations related to this 
     provision. Recent examples include:
       Florida Atlantic University on April 30, 2008--A shooting 
     incident was reported at 1:16 AM, 26 minutes later alerts 
     were sent out to the campus community, sirens, public address 
     systems and Reverse 911 systems were activated. A follow-up 
     e-mail was sent to the campus community at 2 AM.
       Ferrum College (VA) on February 26, 2008--A sighting of a 
     man with a gun was reported at 7:29 AM, 11 minutes later 
     sirens were activated, and by 7:54 a text alert went out to 
     the campus community with additional details concerning the 
     emergency.
       Northern Illinois University on February 14, 2008--A 
     multiple shooting incident was reported at 3 PM, and 20 
     minutes later an alert was posted to the institution's web 
     site.
       Because of the importance of informing students and staff 
     of immediate threats to their safety, notification should 
     only be withheld if it is in the professional determination 
     of law enforcement that issuing the notice would put the 
     community at greater risk, and in such a case notice should 
     be withheld for as short a period as possible.
       The Conferees recognize that emergencies are volatile, 
     fast-moving and unpredictable events that can encompass a 
     range of natural and man-made situations, from campus fires 
     to the presence of shooting suspects on campus. As such, the 
     Conferees intend that institutions may rely upon the initial 
     known facts of a situation in crafting and disseminating 
     notifications that are timely, accurate and useful to 
     appropriate segments of the campus community. The Conferees 
     also do not intend to hold institutions responsible for the 
     failure of local law enforcement or other emergency response 
     personnel to provide them with information, or other 
     circumstances beyond their control that may delay the 
     delivery of emergency notifications.
       The Conferees intend that institutions should publicize to 
     all students and staff their emergency response and 
     evacuation procedures, both in their annual security report 
     and separately at least once each calendar year as a part of 
     the required test of such procedures. When an emergency 
     happens time is of the essence so it is critical that 
     students and staff know where to turn for information and 
     what to expect.
       The Senate amendment and the House bill require the 
     Secretary to report annually to authorizing committees 
     regarding institutions' compliance with this subsection and 
     on the Secretary's monitoring of this compliance. The Senate 
     amendment and the House bill permit the Secretary to seek 
     guidance from the Attorney General regarding the development 
     and dissemination of information to institutions about best 
     practices related to campus crime and safety.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill prohibits an institution of higher education 
     or its employees, offices, or agents from intimidating, 
     threatening, coercing, or otherwise discriminating against an 
     individual for the purpose of interfering with the 
     implementation of this subsection, or any rights or 
     privileges accorded under the is subsection, or because the 
     individual has participated in an investigation, proceeding, 
     or hearing.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include a rule of 
     construction indicating that nothing in this subsection shall 
     be construed to permit a participating institution or their 
     agent to retaliate, intimidate, threaten, coerce, or 
     otherwise discriminate against any individual with respect to 
     the implementation of any provision of this subsection.
       The Senate amendment and the House bill require each 
     institution of higher education participating in Title IV to 
     publicly disclose its current transfer of credit policies, 
     which must include the disclosure of any criteria used by the 
     institution of higher education to evaluate the transfer of 
     credit earned at another institution of higher education and 
     a list of the institutions with which the institution of 
     higher education has established an articulation agreement.

[[Page 17241]]

       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill specifically state 
     that nothing in this subsection authorizes the Secretary or 
     the Accreditation and institutional Quality and Integrity 
     Advisory Committee (Senate amendment) or NACIQI (House bill) 
     to require particular policies, procedures, or practices by 
     institutions with respect to transfer of credit. The Senate 
     amendment and the House bill specifically state that nothing 
     in this section authorizes an officer or employee of the U.S. 
     Department of Education (ED) to exercise any direction, 
     supervision, or control over the curriculum, instruction, 
     administration, or personnel at any institution of higher 
     education or over any accrediting agency, limits the 
     application of the General Education Provisions Act, or 
     creates a legally enforceable right on the part of a student 
     to require an institution of higher education to accept a 
     transfer of credit.
       The Senate recedes.
       The Senate amendment and the House bill require 
     institutions to report and make public an annual fire safety 
     report.
       The House recedes with an amendment to require the 
     Secretary to make policies public, including the installation 
     of fire detection and prevention technologies in student 
     housing, dormitories, and other buildings.
       The House bill prohibits an institution of higher education 
     or its employees, offices, or agents from intimidating, 
     threatening, coercing, or otherwise discriminating against an 
     individual for the purpose of interfering with the 
     implementation of this subsection, or any rights or 
     privileges accorded under the is subsection, or because the 
     individual has participated in an investigation, proceeding, 
     or hearing.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill requires institutions of higher education to 
     implement procedures for managing reports of missing persons.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to specify that 
     institutions of higher education must establish a policy for 
     students who reside in on-campus housing that includes a 
     notification to the student that the institution of higher 
     education is required to notify a parent or guardian twenty-
     four hours after the time that the student is deemed to be 
     missing in accordance with official notification procedures 
     established by the institution of higher education.
       The House bill requires institutions of higher education to 
     provide each student, upon enrollment, with a ``separate, 
     clear, and conspicuous written notice'' that provides 
     information on the penalties associated with drug-related 
     offenses.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires institutions of higher education to 
     provide each student, within two weeks of being notified by 
     the Secretary that the student has been convicted of a drug-
     related offense that resulted in the loss of eligibility for 
     Title IV aid, with a ``separate, clear, and conspicuous 
     written notice'' that notifies the student of the loss of 
     Title IV eligibility and discusses ways to regain Title IV 
     eligibility.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require each 
     student who has lost eligibility for any grant, loan, or 
     work-study assistance under this Title as a result of the 
     penalties under 484(r)(1) to be provided such notification by 
     the institution in a reasonable and timely manner.
       The Senate amendment adds a new subsection (b) to Section 
     485 specifying requirements for institutions of higher 
     education to provide entrance counseling prior to 
     disbursement for first-time borrowers loans made, guaranteed, 
     or insured under Part B or Part D. Entrance counseling must 
     meet specified disclosure requirements.
       The House bill contains similar provisions on entrance 
     counseling in Title I.
       Both the Senate and the House recede with an amendment to 
     merge the entrance counseling provisions from both bills to 
     require institutions of higher education, at or prior to the 
     time of a disbursement to a first-time borrower to provide 
     comprehensive information on the terms and conditions of the 
     loan and of the responsibilities the borrower has with 
     respect to such loan. Such information shall be provided in 
     simple and understandable terms and may be provided: during 
     an entrance counseling session conducted in person; on a 
     separate written form provided to the borrower that the 
     borrower signs and returns to the institution of higher 
     education; or, online, with the borrower acknowledging 
     receipt of the information. Institutions of higher education 
     are encouraged to carry out the entrance counseling through 
     interactive programs that test the borrower's understanding 
     of the terms and conditions of their loans.
     Section 489. National Student Loan Data System
       The Senate amendment makes technical amendment and requires 
     the Secretary to take actions to maintain the system. The 
     Senate amendment also requires the Secretary to prepare and 
     submit a report to the appropriate committees of Congress, 
     not later than September 30th of each fiscal year, describing 
     certain specified aspects of NSLDS; requires the Secretary to 
     conduct a study regarding the available mechanisms for 
     providing students and parents the ability to opt in or opt 
     out of allowing eligible lenders to access their records in 
     NSLDS; and the appropriate protocols for limiting access to 
     NSLDS, based on the risk assessment required under subchapter 
     III of Chapter 35 of Title 44, U.S.C.; and requires the 
     Secretary to submit the report to the appropriate 
     Congressional committees no later than three years after 
     enactment.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees intend that NSLDS data may be released to 
     outside contractors and analysts if all individuals 
     identifiers are excluded from the data and the outside 
     analyst or contractor is certified according to data 
     confidentiality standards and procedures used by the National 
     Center for Education Statistics.
     Section 490. Early awareness of financial aid eligibility
       The Senate amendment requires the Secretary to implement, 
     in cooperation with other relevant entities a comprehensive 
     system of early financial aid information in order to provide 
     students and families with early information about financial 
     aid and early estimates of such students' eligibility for 
     financial aid from multiple sources.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike the provision 
     that required the Secretary to provide early estimates of 
     financial aid awards.
     Section 491. Distance Education Demonstration Programs
       The Senate amendment and the House bill make a conforming 
     amendment to the existing Distance Education Demonstration 
     Program, to replace Committee on Labor and Human Resources of 
     the Senate and the Committee on Education and the Workforce 
     of the House of Representatives with authorizing committees.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to clarify that the 
     reports shall be provided by the Secretary on an annual 
     basis.
     Section 492. Articulation agreements
       The House bill requires the Secretary to work with States 
     to develop more comprehensive articulation agreements and 
     requires the Secretary to conduct a study.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to move the study to 
     Title XI.
     Section 493. Program participation agreements
       The Senate amendment and the House bill move the 90/10 rule 
     from an institutional eligibility requirement for proprietary 
     institutions of higher education to a Program Participation 
     Agreement (PPA) requirement for proprietary institutions. 
     Under both the Senate amendment and the House bill, a 
     proprietary institution must have not less than 10 percent of 
     its revenue from sources other than Title IV funds.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment adds to the PPA a requirement that 
     institutions of higher education develop a ``code of 
     conduct.''
       The House requires institutions of higher education 
     participating in Title IV or whose students get a private 
     education loan to develop a ``code of conduct'' in accordance 
     with new requirements in Title I.
       The Senate recedes.
       The House bill requires that officers, employees, and 
     agents of institutions of higher education that have 
     responsibilities with respect to education loans obtain 
     annual training on the code of conduct.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that removes the 
     training requirement, but requires that officers, employees, 
     and agents with responsibilities with respect to education 
     loans be informed annually of the provisions of the code of 
     conduct.
       The House bill requires an institution of higher education 
     to, upon request, disclose to the alleged victim of any 
     violent crime or nonforcible sex offense the final results of 
     any institutional disciplinary proceeding conducted against a 
     student who is the alleged perpetrator of such crime or 
     offense. The House bill also requires that this information 
     be provided to the alleged victim's next of kin, if the 
     alleged victim is deceased.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require disclosure 
     upon written request and that the disclosure be made 
     available to the next of kin only if the victim dies as a 
     result of the crime or offense.
       Both the Senate amendment and the House bill amend section 
     487(a) by adding a new paragraph which specifies requirements 
     applicable to institutions of higher education that maintain 
     a preferred lender list for

[[Page 17242]]

     loans. The Senate amendment provision applies to preferred 
     lender lists for loans under Part B; while the House bill 
     provision applies to preferred lender lists under Part B, and 
     also for private educational loans if recommended by the 
     institution of higher education.
       The Senate recedes.
       The House bill requires that upon the request of a private 
     educational lender, acting in connection with an application 
     initiated by a consumer for a private educational loan, an 
     institution of higher education shall certify: that the 
     student is enrolled or is scheduled to enroll at the 
     institution; the student's cost of attendance; and the 
     difference between the cost of attendance of the institution 
     and the student's estimated financial assistance received 
     under this title and other assistance known to the 
     institution. The House bill requires the institution of 
     higher education to disclose the student's ability to select 
     a private educational lender of the borrower's choice and 
     inform students of the impact of a proposed private 
     educational loan on the students' potential eligibility for 
     other financial assistance, including Federal financial 
     assistance under this title.
       The Senate amendment has no similar provision.
       The Senate recedes with an amendment to require the 
     institution to provide an applicant for a private educational 
     loan with the form required under Section Truth in Lending 
     Act and the information required to complete the form.
       The Senate amendment permits the Secretary to modify 
     regulations regarding financial and compliance audits of 
     institutions of higher education located outside of the 
     United States. The House bill contains a similar provision 
     that allows the Secretary to waive these requirements for 
     foreign institutions of higher education whose students 
     received less than $500,000 in loans under Title IV during 
     the award year proceeding the audit period. This provision 
     appears at a later point in this document.
       The Senate recedes.
       The Senate amendment specifies what funds proprietary 
     institutions of higher education may count toward their ten 
     percent of non-Title IV revenue. The House bill specifies 
     what proprietary institutions may count as revenue.
       The Senate recedes.
       The Senate amendment requires proprietary institutions of 
     higher education to demonstrate that institutional revenue 
     includes funds from non-title IV sources. The House bill 
     includes as revenue from tuition and fees, only those 
     tuition, fees and other institutional charges for students 
     enrolled in programs eligible of assistance under Title IV.
       The Senate recedes with an amendment that specifies that 
     funds paid by a student, or on behalf of a student by a party 
     other than the institution, for an education or training 
     program that is not eligible for funds under title IV, may be 
     counted as institutional revenue, provided that the program 
     is both approved or licensed by the appropriate State agency 
     and is accredited by an accrediting agency recognized by the 
     Secretary or provides an industry-recognized credential or 
     certification.
       The Senate amendment specifies certain institutional aid 
     provided to a student as institutional revenue under certain 
     conditions. In the case of loans made by an institution to a 
     student, the amount of loan repayments received by the 
     institution during the fiscal year for which compliance with 
     the 90/10 rule is determined is deemed to be institutional 
     revenue.
       The House bill also specifies certain institutional aid 
     provided to students as institutional revenue. For each of an 
     institution's fiscal years 2009 through 2012, the principal 
     amount of loans made by an institution to a student, based on 
     the expected interest earned less the estimated amount to 
     account for future defaults and loan forgiveness, accounted 
     for on an accrual basis, in accordance with Generally 
     Accepted Accounting Principles and related standards and 
     guidance, and that meet other specified conditions, are 
     deemed to be institutional revenue. For an institution's 
     fiscal year 2013 and each of an institution's subsequent 
     fiscal years, only the amount of repayments on loans made by 
     an institution to students received during the fiscal year 
     for which compliance with the 90/10 rule is determined is 
     deemed to be institutional revenue.
       The Senate recedes with an amendment that for loans made by 
     an institution, for loans disbursed to students between July 
     1, 2008 and July 1, 2012, the net present value of loans made 
     by the institution, accounted for on an accrual basis and, 
     estimated in accordance with Generally Accepted Accounting 
     Principles and related standards and guidance, and that meet 
     other specified conditions, are deemed institutional revenue.
       The Conferees intend that for the fiscal years 2009 through 
     2012 when the net present value of institutional loans can be 
     calculated as institutional revenue that institutions will 
     only count as institutional revenue the net present value of 
     the loan in the fiscal year the loan is actually made.
       In the case of scholarships provided by the institution, 
     the Senate amendment specifies as institutional revenue 
     scholarship funds that are in the form of monetary aid based 
     upon the academic achievements or financial need of students; 
     disbursed from an established restricted account; and funded 
     by outside sources or income earned on such funds. In 
     addition, the Senate amendment specifies that tuition 
     discounts based upon the academic achievement or financial 
     need of students are considered institutional revenue.
       In the case of scholarships provided by the institution, 
     the House bill specifies as institutional revenue scholarship 
     funds that are in the form of monetary aid or tuition 
     discounts based upon the academic achievements or financial 
     need of students; disbursed from an established restricted 
     account; and funded by outside sources or income earned on 
     such funds are considered institutional revenues.
       The Senate recedes.
       In determining compliance with the 90/10 rule the House 
     bill requires that an institution presume that any title IV 
     program funds disbursed or delivered to or on behalf of a 
     student is used to pay the student's tuition, fees, or other 
     institutional charges, regardless of whether the institution 
     credits those funds to the student's account or pays those 
     funds directly to the student, except to the extent that the 
     student's tuition, fees, or other institutional charges are 
     satisfied by grant funds provided by non-Federal public 
     agencies or private sources independent of the institution;) 
     funds provided under a contractual arrangement with Federal, 
     State, or local government agencies for the purpose of 
     providing job training to low-income individuals who are in 
     need of that training; or funds used by a student from 
     savings plans for educational expenses established by or on 
     behalf of the student and which qualify for special tax 
     treatment under the Internal Revenue Code of 1986, provided 
     that the institution can reasonably demonstrate such funds 
     were used to pay the student's tuition, fees, or other 
     institutional charges.
       The Senate amendment contains no similar provision. The 
     Senate recedes with an amendment to provide an additional 
     exception to the presumption for scholarships provided by the 
     institution in the form of monetary aid or tuition discounts 
     and that meet other specified conditions and remove the 
     condition that institutions must demonstrate that funds from 
     savings plans that qualify for special tax treatment were 
     used to pay a student's tuition, fees, or other institutional 
     charges. Additionally, the Conferees clarify that, for loans 
     received by students between July 1, 2008 and July 1, 2011, 
     the amount of loan funds for 428H or Federal Direct 
     Unsubsidized Stafford Loans that exceed that loan limits that 
     were in effect prior to May 7, 2008 shall be counted as 
     revenue received by the institution.
       The House bill specifies that certain revenues are to be 
     excluded by an institution in determining compliance with the 
     90/10 rule. Revenues to be excluded are the amount of funds 
     received by an institution under the Federal Work-Study 
     program, unless the institution uses those funds to pay a 
     student's institutional charges; the amount of funds received 
     by an institution under the Leveraging Education Assistance 
     Partnership program; the amount of institutional funds used 
     by an institution to match title IV program funds; the amount 
     of title IV program funds that must be refunded or returned; 
     and the amount charged by an institution for books, supplies, 
     and equipment unless the institution includes that amount as 
     tuition, fees, or other institutional charges.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       Under both the Senate and the House bills, a proprietary 
     institution that fails to comply with the 90/10 rule for two 
     consecutive years becomes ineligible to participate in Title 
     IV programs. Under the Senate amendment, an institution 
     remains ineligible until it demonstrates to the satisfaction 
     of the Secretary that it is in compliance with the 90/10 
     rule. Under the House bill, an institution is required to 
     demonstrate compliance with all eligibility requirements for 
     at least three fiscal years following the fiscal year in 
     which the institution became ineligible before the 
     institution can regain eligibility to participate in Title IV 
     programs.
       The House and Senate recede with an amendment to modify the 
     sanction such that an institution may be placed on 
     provisional certification and may become ineligible to 
     participate in Title IV programs for a minimum of two 
     institutional fiscal years after the institutional fiscal 
     year the institution failed to comply with the 90/10 rule for 
     two consecutive fiscal years. To regain eligibility to 
     participate in Title IV programs, the institution must 
     demonstrate compliance with all eligibility requirements for 
     at least two institutional fiscal years after the 
     institutional fiscal year in which the institution failed to 
     comply with the 90/10 rule.
       The House bill requires the Secretary to submit an annual 
     report to the authorizing committees that contains the result 
     of the calculation of the percentage of revenue derived from 
     Title IV sources of funds for each proprietary institution.
       The Senate recedes with an amendment to have the Secretary 
     submit such report no

[[Page 17243]]

     later than July 1, 2009 and on July 1 of each subsequent 
     year, a report to the authorizing committees.
       The House bill and the Senate amendment require codes of 
     conduct to include prohibitions on revenue-sharing 
     arrangements. The House bill's prohibition of revenue-sharing 
     arrangements encompasses both Federal and private education 
     loans. The Senate amendment's prohibition of revenue-sharing 
     arrangements applies only to Federal student loans.
       The House recedes.
       The House bill and the Senate amendment require codes of 
     conduct to include prohibitions on officers, employees or 
     agents of institutions of higher education, and under certain 
     conditions, by the families of officers, employees or agents 
     of institutions of higher education, soliciting or accepting 
     gifts from lenders, guarantors, and servicers of education 
     loans. The House bill includes several exceptions in the 
     definition of gift.
       The Senate amendment includes no similar exceptions to the 
     definition of gift as included in the House bill.
       The Senate recedes with an amendment to clarify that 
     philanthropic contributions that are not made for any 
     advantage with respect to education loans are not considered 
     gifts for purposes of the section.
       The House bill and the Senate amendment require codes of 
     conduct to include prohibitions on contracting arrangements 
     between an officer or employee of the institution and a 
     lender of an affiliate of a lender. The House bill includes 
     exceptions, in certain limited circumstances, to allow 
     institution officers, employees and agents to serve on the 
     boards of directors of lenders, guarantors, and servicers of 
     education loans. Similarly, the House bill includes 
     exceptions that allow, under certain conditions, officers, 
     employees and agents of a lender, guarantor, and servicer of 
     education loans to serve as a trustee of an institution.
       The Senate amendment includes no similar exceptions to the 
     prohibition.
       The Senate recedes with a modification to the exception 
     with respect to officers, employees and agents of a lender, 
     guarantor, and servicer of education loans and an amendment 
     to clarify that the prohibition applies to consulting 
     arrangements or the provision of other services with respect 
     to educational loans.
       The Senate amendment contains provision on institutional 
     interaction with borrowers.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment contains a provision on institutional 
     interaction with borrowers.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees recognize that some institutions list 
     specific lenders in financial aid award offer letters to 
     students. For example, in many states, public institutions of 
     higher education will inform students in financial aid offer 
     letters that they are eligible for a loan offered though 
     their state-based student loan agency, and the amount of such 
     loan. The code of conduct provision prohibiting the 
     assignment of loans to a specific lender, through packaging 
     or other means, is not intended to apply to this case, 
     because a financial aid award letter is an offer of aid, and 
     a student may select the named lender, or another lender, at 
     the student's discretion. Other practices, such as the 
     distribution of loan promissory notes to students containing 
     a specific lender's name, are prohibited by this provision.
       The House bill prohibits an institution of higher education 
     from requesting or accepting any offer of funds for private 
     educational loans in exchange for the institution of higher 
     education providing the lender with a specified number of 
     loans or loan volume, or a preferred lender arrangement for 
     Title IV loans.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike language in 
     order to clarify that the definition of an opportunity pool 
     loan does not include any private loan that is guaranteed by 
     a covered institution of higher education (i.e., a recourse 
     loan).
       The Conferees intend that an institution may request and 
     accept an offer of recourse loans but only if such request 
     and acceptance is not conditioned on the institution 
     providing a lender with a specified number of loans or loan 
     volume, or a preferred lender arrangement for Title IV loans.
       The House bill contains a provision which bans covered 
     institutions of higher education from receiving staffing 
     assistance with financial aid.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House recedes with an amendment to permit lenders to 
     provide staffing services on a short-term, nonrecurring basis 
     to assist institutions with financial aid-related functions 
     during emergency situations.
       The House bill includes a ban on employees of a financial 
     aid office or those with educational loan responsibilities 
     from participating on advisory councils of lenders or 
     affiliates of lenders.
       The Senate amendment prohibits any employee who is employed 
     in the financial aid office of the institution, or who 
     otherwise has responsibilities with respect to education 
     loans or other student financial aid of the institution, and 
     who serves on an advisory board, commission, or group 
     established by a lender or group of lenders from receiving 
     anything of value from the lender or group of lenders, except 
     that the employee may be reimbursed for reasonable expenses 
     incurred in serving on such advisory board, commission or 
     group.
       The House recedes.
       The Senate amendment requires institutions to designate an 
     individual responsible for fulfillment of code of conduct 
     requirements and to make the code of conduct widely 
     available.
       The House bill contains no similar provision.
       The Senate recedes.
       The Senate amendment requires the Secretary to require an 
     institution of higher education to develop a teach-out plan 
     for submission to its accrediting agency if the Secretary 
     initiates a limitation, suspension, or termination of the 
     institution of higher education in any program under Title IV 
     or initiates an emergency action against the institution.
       The Senate amendment defines ``teach-out plan.''
       The House bill contains no similar provisions.
       The House recedes.
       The House bill requires an Inspector General investigation 
     in the case of any reported violation of the gift ban 
     provision and an annual report to the authorizing committees 
     identifying all substantiated violations of the gift ban.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike the language 
     requiring the Inspector General to investigate any reported 
     violation.
       The Senate amendment and the House bill include similar 
     provisions to allow institutions of higher education to 
     comply with voter registration requirements by transmitting 
     voter registration information electronically to students, 
     provided that the electronic message only include voter 
     registration information; however, the Senate amendment 
     applies only to proprietary institutions.
       The Senate recedes.
       The Senate amendment and the House bill require 
     institutions of higher education that have preferred lender 
     lists to clearly and fully disclose on such lists why the 
     institution has included each lender on its list, especially 
     with respect to terms and conditions favorable to the 
     borrower and to make clear that the students attending the 
     institution of higher education (or the parents of such 
     students) do not have to borrow from a lender on the 
     preferred lender list.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The House bill requires that an institution of higher 
     education with a preferred lender list provide no less than 
     the information required to be disclosed in the model 
     disclosure form required under Section 153.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill require that an 
     institution of higher education with a preferred lender list 
     for Federal Family Education Loans ensure, through the list 
     of lender affiliates provided by the Secretary, that there 
     are at least three lenders that are not affiliates of each 
     other on the list.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill requires that if an institution of higher 
     education recommends private loans, there are at least two 
     lenders of private educational loans that are not affiliates 
     of each other included on the list.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill ensure that lenders 
     are placed on the preferred lender list on the basis of the 
     benefits provided to borrowers including highly competitive 
     interest rates, high-quality customer service or additional 
     benefits beyond the standard terms and conditions of such 
     loans; however, the House bill also requires information on 
     criteria for selecting lenders, and information on private 
     loans.
       Both the Senate and the House recede with an amendment to 
     require that institutions of higher education prominently 
     disclose the method and criteria used by the institution of 
     higher education in selecting lenders with which to enter 
     into preferred lender arrangements to ensure that the lenders 
     are selected on the basis of the best interest of the 
     borrowers.
       The House bill contains a provision which requires lenders 
     to exercise a duty of care and loyalty in compiling the 
     preferred lender list without prejudice and for the sole 
     benefit of borrowers; and comply with other requirements as 
     prescribed by the Secretary in regulation.
       The Senate amendment contains no similar provisions.

[[Page 17244]]

       The Senate recedes.
       The House bill specifies that a lender shall not deny or 
     impede a borrower's choice of lender or delay certification 
     for borrowers who choose a lender not on the list. There is 
     similar language in the Senate code of conduct.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill define/use 
     `affiliate' and `control' in a similar manner. The House bill 
     defines `preferred lender arrangement', and defines 
     `educational loan' to exclude the Pilot Program for parent 
     PLUS Loans, Federal Direct Loan program loans, and Perkins 
     Loans.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require the 
     Secretary to maintain and update a list of lender affiliates 
     of all eligible lenders and to provide such lists to eligible 
     institutions of higher education. The Senate amendment 
     requires consultation by the Secretary with the Director of 
     the Federal Deposit Insurance Corporation.
       The Senate recedes with an amendment that the Secretary 
     shall update such lists on a regular basis. An institution of 
     higher education shall be deemed to be in compliance with 
     this subsection if the institution of higher education uses 
     the most recent list published by the Secretary and in effect 
     at the time the preferred lender list is created or updated.
       The Senate amendment provides that if an institution of 
     higher education has willfully contravened its attestation of 
     compliance with the code of conduct, the Secretary may limit, 
     suspend, or terminate the institution of higher education's 
     eligibility for the Title IV loan programs.
       The House bill contains no similar provision.
       The Senate recedes.
       The House bill requires institutions of higher education to 
     establish a policy on the disposal or disposition of all 
     technology assets which may contain personal and sensitive 
     student data. The House bill defines ``technology assets.''
       The Senate amendment contains no similar provisions.
       The House recedes.
       The House bill requires the Secretary to issue regulations 
     to provide for the review of an institution of higher 
     education's compliance with provisions governing the 
     enrollment of students who are not high school graduates if 
     it is determined through required financial and compliance 
     audits that more than five percent of the institution of 
     higher education's students were accepted for enrollment and 
     qualified for Title IV aid based on ability to benefit from 
     postsecondary education provisions.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 494. Regulatory relief and improvement
       The Senate amendment and the House bill address the 
     continuation of experimental sites; however, the Senate 
     amendment authorizes the Secretary to continue any 
     experimental sites in existence on the date of enactment of 
     this Act and requires the Secretary to discontinue any sites 
     approved by that date that are inconsistent with this section 
     by June 30, 2008. The House bill requires the Secretary to 
     continue the participation of any experimental sites in 
     existence on July 1, 2007, unless the Secretary determines 
     that the site has not been successful in carrying out the 
     purposes of this section. In this case, the site must be 
     discontinued by June 30, 2009.
       The Senate recedes.
     Section 494A. Transfer of allotments
       The Senate amendment amends existing transfer of allotment 
     provisions for the campus-based programs to permit 
     institutions of higher education to also transfer up to 
     twenty-five percent of their FSEOG allotment to the Federal 
     Work Study program.
       The House bill amends existing transfer of allotment 
     provisions for the campus-based programs to permit 
     institutions of higher education to also transfer up to 
     twenty-five percent of their Federal Work Study allotment to 
     federal capital contributions for the Federal Perkins Loan 
     program.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 494B. Purpose of administrative payments
       The Senate amendment makes a wording change to language 
     describing the specified purpose of administrative payments 
     for the Pell Grant program, the campus-based programs, and 
     the immigration status verification system.
       The House bill contains no similar provision.
       The House recedes.
     Section 494C. Advisory Committee on Student Financial 
         Assistance
       The Senate amendment and the House bill expand the purpose 
     of the Advisory Committee on Student Financial Assistance 
     (ACSFA) to include providing knowledge and understanding of 
     early intervention programs and making recommendations that 
     will result in early awareness for low and moderate-income 
     students of their eligibility for assistance.
       The Senate amendment clarifies that the appointment of 
     members shall be effective upon confirmation by the Senate 
     and publication of such appointment in the Congressional 
     Record.
       The House bill contains no similar provision.
       The House and Senate recede with an amendment to specify 
     that four members shall be appointed by the President pro 
     tempore of the Senate, four members shall be appointed by the 
     Speaker of the House of Representatives, and three members 
     shall be appointed by the Secretary. The appointments of 
     members appointed by the Senate or the House shall be 
     effective upon publication of the appointment in the 
     Congressional Record and not confirmation by the Senate.
       The House bill would end ACSFA after 2011.
       The Senate amendment has no similar provision.
       The House recedes.
       The Senate amendment requires the ACSFA to conduct a study 
     of innovative pathways to baccalaureate degree attainment, 
     such as dual enrollment, Pell program changes, and compressed 
     or modular scheduling, among other things.
       The House has no similar provision.
       The House recedes.
     Section 494D. Regional meetings and negotiated rule-making
       The Senate amendment adds state student grant agencies to 
     the list of examples of groups involved in Title IV student 
     financial assistance programs.
       The House bill contains no similar provision.
       The House recedes.
       The House bill requires that participants in the negotiated 
     rulemaking process be selected by the Secretary from 
     individuals who are nominated by groups identified to provide 
     the Secretary with advice and recommendations on the 
     development of proposed regulations, and that these 
     individuals must have recognized legitimacy as designated 
     representatives of major stakeholders, sectors, and 
     constituencies in the higher education community.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require that the 
     Secretary select individuals with demonstrated expertise or 
     experience in the relevant subjects under negotiation and to 
     remove the existing qualifier that the Secretary select 
     certain types of individuals ``to the extent possible.''
     Section 494E. Year 2000 and requirements at the department
       The Senate amendment repeals Year 2000 requirements for the 
     Department of Education.
       The House bill contains no similar provision.
       The House recedes.
     Section 494F. Technical amendment of income-based repayments
       The House bill makes a technical amendment to the 
     eligibility criteria for borrowers to select the income-based 
     repayment plan.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that a 
     borrower may elect to participate in the income-base 
     repayment plan if their loan had been in default in the past 
     but was subsequently rehabilitated.

                       Part H--Program Integrity

     Section 495. Recognition of accrediting agency or association
       The Senate amendment and the House bill requires 
     accrediting agencies to apply and enforce standards that 
     respect the stated mission of the institution of higher 
     education, including religious missions.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require an 
     accrediting agency that has or seeks to include the 
     evaluation of distance education programs within its scope of 
     recognition to demonstrate to the Secretary that its 
     standards effectively address the quality of distance 
     education in the same areas in which it is required to 
     evaluate classroom-based programs. The Senate amendment and 
     House bill state that associations aren't required to have 
     separate standards for accrediting distance education 
     programs.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill does not require an accrediting agency to 
     obtain the approval of the Secretary to expand its scope of 
     accreditation to include distance education, provided that 
     the accrediting agency notifies the Secretary in writing 
     about the change.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require a review at 
     the next NACIQI meeting of any agency or association that 
     expands its scope to include the evaluation of institutions 
     or programs offering courses through distance education if an 
     institution accredited by the agency or association 
     experiences a growth in the enrollment increases by fifty 
     percent or more within the institution's fiscal year.
       The Senate amendment and the House bill require accrediting 
     agencies to require that

[[Page 17245]]

     institutions of higher education offering distance education 
     programs have a process by which the institution of higher 
     education establishes that a student registered for a 
     distance education course is the same student that 
     participates in, completes, and receives credit for the 
     course.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House. The Conferees expect institutions that 
     offer distance education to have security mechanisms in 
     place, such as identification numbers or other pass code 
     information required to be used each time the student 
     participates in class time or coursework on-line. As new 
     identification technologies are developed and become more 
     sophisticated, less expensive and more mainstream, the 
     Conferees anticipate that accrediting agencies or 
     associations and institutions will consider their use in the 
     future. The Conferees do not intend that institutions use or 
     rely on any technology that interferes with the privacy of 
     the student and expect that students' privacy will be 
     protected with whichever method the institutions choose to 
     utilize.
       The Senate amendment modifies the requirement that 
     accrediting agencies assess an institution of higher 
     education's success with respect to student achievement in 
     relation to the institution of higher education's mission, 
     including, as appropriate, consideration of state licensing 
     examinations, and job placement rates to specify that 
     consideration of student achievement in relation to the 
     institution of higher education's mission may include 
     different standards for different institutions of higher 
     education or programs as established by the institution of 
     higher education.
       The House bill includes the same provision but lists course 
     completion rates as one item that should be considered.
       The Senate recedes.
       The Senate amendment and the House bill expand existing due 
     process requirements, including: specification of clear and 
     consistent standards; an opportunity for a written response; 
     an opportunity to appeal any adverse action; the right to 
     representation by counsel; and submission to the Secretary a 
     summary of actions that includes the award of accreditation 
     or reaccreditation of an institution of higher education and 
     several adverse actions.
       Conferees adopt the provisions as amended, and clarify that 
     the due process provisions allow the institution of higher 
     education to put forward new evidence as long as it relates 
     to a financial matter.
       The Senate amendment and the House bill requires an 
     accrediting agency, as part of its accreditation or 
     reaccreditation reviews, to confirm that the institution of 
     higher education has publicly disclosed its transfer of 
     credit policies and that the policies specifically state the 
     criteria used by the institution of higher education 
     regarding the transfer of credit from another institution of 
     higher education.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill requires an accrediting agency to review and 
     consider an institution of higher education's response to any 
     review or determination and to include in any determination a 
     written statement addressing the institution of higher 
     education's response and the basis for such determination, as 
     well as the institution of higher education's response.
       The Senate amendment contains no similar provisions.
       The House recedes.
       The House bill prohibits an accrediting agency from making 
     a determination or taking an adverse action based on an 
     unpublished or undocumented policy, practice, or precedent.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment requires on-site evaluations by the 
     accrediting agency for accreditation or reaccreditation to 
     include a review of the federally required information the 
     institution of higher education or program provides to 
     current and prospective students.
       The House bill contains no similar provisions.
       The Senate recedes.
       The Senate amendment and the House bill require the agency 
     or association to make public decisions of accrediting 
     agencies or associations. The Senate amendment requires 
     placement on probation to be made public.
       The House recedes.
       The Senate amendment and the House bill require accrediting 
     agencies to monitor the growth of programs at institutions of 
     higher education that are experiencing significant enrollment 
     growth and also require an institution of higher education to 
     submit a teach-out plan for approval by the accrediting 
     agency if specific events occur, such as the accrediting 
     agency withdraws accreditation or the institution of higher 
     education notifies the accrediting agency that it will be 
     closing.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill specifically 
     prohibit the Secretary from establishing any criteria that 
     ``specifies, defines, or prescribes'' standards that 
     accrediting agencies must use to assess any institution of 
     higher education's success with respect to student 
     achievement.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill prohibit the 
     Secretary from issuing regulations related to the standards 
     used by accrediting agencies to evaluate the institution of 
     higher education with respect to the institution of higher 
     education's success with respect to student achievement, 
     curricula, faculty, and so forth.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill establishes a rule of construction that 
     states that none of the requirements that are established 
     related to an accrediting agency's required review of an 
     institution of higher education's success with respect to 
     student achievement, curricula, faculty, and so forth shall 
     restrict an accrediting agency's authority to set, with the 
     involvement of its members, and to apply accreditation 
     standards to institutions of higher education or programs 
     that request review by the agency. In addition, the 
     aforementioned requirements do not restrict the authority of 
     an institution of higher education to develop and use 
     institutional standards to show success with respect to 
     student achievement, and these standards must be considered 
     as part of any accreditation review.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 496. Eligibility and certification procedures
       The Senate amendment allows a location of a closed 
     institution of higher education to be used as an additional 
     location of an institution of higher education for the 
     purposes of a teach-out, if the teach-out has been approved 
     by the institution of higher education's accrediting agency. 
     The Senate amendment permits an institution of higher 
     education that conducts a teach-out by establishing an 
     additional location at a closed institution of higher 
     education to establish a permanent location at the closed 
     institution of higher education.
       The House bill contains no similar provisions.
       The House recedes.
     Section 497. Program review and data
       The Senate amendment requires the Secretary to provide an 
     institution of higher education being reviewed with an 
     adequate opportunity to review and respond to any program 
     review report and relevant materials before any final program 
     review report is issued. The House bill requires the 
     Secretary to provide an institution with adequate opportunity 
     to review any program review report or audit finding before 
     any final program review or audit determination is reached.
       The House recedes.
       The House bill also specifies that an institution of higher 
     education can have access to documentation related to the 
     program review report or audit findings, such as work papers 
     and notes.
       The Senate amendment contains no similar provisions.
       The House recedes.
       The Senate amendment and the House bill required the 
     Secretary to take into consideration the response from the 
     institution of higher education in any final program review 
     report or audit determination and include certain elements.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill require that the 
     confidentiality of any program review report be maintained 
     until the aforementioned steps are taken and a final program 
     review determination is issued. The Senate amendment excludes 
     from the confidentiality requirement the disclosures to 
     inform the state or accrediting agency when the Secretary 
     takes action against an institution of higher education. The 
     Senate amendment requires the Secretary to promptly disclose 
     all program review reports to the institution of higher 
     education under review.
       The House recedes.
     Section 498. Review of regulations
       The Conferees adopt an amendment to end the requirement 
     that the Secretary review and report on regulations for small 
     institutions.

             Part I--Competitive Loan Auction Pilot Program

     Section 499. Competitive Loan Auction Pilot Program 
         evaluation
       The Senate amendment requires the Comptroller General to 
     evaluate the Competitive Loan Auction Pilot Program. The 
     House bill requires the Secretaries of Education and the 
     Treasury, in consultation with OMB, CBO, and the Comptroller 
     General to evaluate the Competitive Loan Auction Pilot 
     Program.
       The Senate recedes.
       The House bill additionally requires the Comptroller 
     General to study the feasibility of using other market 
     mechanisms to operate the loan programs under Part B and the 
     feasibility of a specific alternative market-based mechanism.

[[Page 17246]]

       The Senate amendment contains no similar provision.
       The House recedes with an amendment to require the 
     Secretary to include in the report any recommendations based 
     on the findings of the evaluation for improving the operation 
     and administration of other loan programs under Part B.
       The Conferees clarify that Guaranty Agencies may serve the 
     same function for lenders making PLUS loans as a result of 
     winning the auctions as they do for lenders in accordance 
     with Part B, except that loans are insured at ninety-nine 
     percent.

                    TITLE V--DEVELOPING INSTITUTIONS

     Section 501. Authorized activities
       The Senate amendment adds remedial education and English 
     language instruction, articulation agreements and enhancing 
     distance learning academic instruction capabilities as 
     authorized activities.
       The House bill has no similar provisions.
       The House recedes.
       The Senate amendment and the House bill provide for 
     education or information designed to improve the financial 
     and economic literacy of students or their parents. The 
     Senate amendment includes counseling services. The House bill 
     includes the provision of information with regard to student 
     indebtedness.
       The Senate recedes with an amendment to allow counseling 
     services to be provided as a part of efforts to improve the 
     financial and economic literacy of students or their 
     families.
     Section 502. Postbaccalaureate opportunities for Hispanic 
         Americans
       The Senate amendment and the House bill create a new 
     program for promoting postbaccalaureate opportunities through 
     programs at Hispanic-serving institutions of higher 
     education.
       The Conferees adopt the provision.
     Section 503. Applications
       The Senate amendment re-designates the sections as needed 
     due to the addition of the section on postbaccalaureate 
     programs at Hispanic-serving institutions of higher 
     education.
       The House bill contains no similar provision.
       The House recedes.
       The Conferees recognize that despite significant growth in 
     the number of Hispanics pursuing graduate study, in 2005 
     Hispanics made up only six percent of the total number of 
     graduate students nationwide. Given these low rates of 
     graduate degree attainment, the Conferees recognize that 
     Hispanics are under-represented in all fields of graduate 
     study. In addition to increasing the number of Hispanics 
     earning graduate degrees, the Conferees encourage 
     institutions of higher education receiving grants under this 
     Part to expand opportunities for graduate study in fields 
     where Hispanics are most under-represented.
     Section 504. Cooperative arrangements
       The Senate amendment and the House bill contain similar 
     provisions regarding cooperative arrangements.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 505. Authorization of appropriations
       The Senate amendment authorizes such sums as may be 
     necessary for fiscal year 2008 and five succeeding fiscal 
     years for both Part A and Part B.
       The House bill authorizes $175,000,000 for Part A for 
     fiscal year 2009 and four succeeding fiscal years. The House 
     bill authorizes $125,000,000 for Part B for the same period.
       The Senate recedes with an amendment to authorize 
     $175,000,000 for Part A and $100,000,000 for Part B for 
     fiscal year 2009, and such sums as may be necessary for each 
     of the five succeeding fiscal years.
       The House bill establishes a new minimum grant of $200,000.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike the $200,000 
     minimum and require that grants be of sufficient size and 
     scope to significantly contribute to the educational program 
     of the eligible institution.
       The Conferees intend that in awarding grants under this 
     Title such grants shall be of sufficient size and scope to 
     achieve the purposes of expanding the educational 
     opportunities for and improving the educational attainment of 
     Hispanic Americans and to expand and enhance academic 
     offerings, program quality, and institutional stability at 
     Hispanic-serving institutions of higher education.

     PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR 
                   HISPANIC AMERICANS

     Section 511. Purposes
       The House bill includes a section designating the purposes 
     of the new program for promoting postbaccalaureate 
     opportunities at Hispanic-serving institutions of higher 
     education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 512. Program authority and eligibility
       The Senate amendment and the House bill contain similar 
     provisions regarding program authority and eligibility. The 
     House bill provides that the Secretary shall award 
     competitive grants to Hispanic-serving institutions of higher 
     education determined by the Secretary to be making 
     substantive contributions to graduate educational 
     opportunities for Hispanic students.
       The House recedes.
     Section 513. Authorized activities
       The Senate amendment and the House bill contain similar 
     activities for postbaccalaureate Hispanic-serving Institution 
     of higher education.
       The Senate recedes.
     Section 514. Application and duration
       The Senate amendment and the House bill contain similar 
     provisions regarding application and duration requirements.
       The House recedes.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

     Section 601. Findings; purposes; consultation; survey
       The Senate amendment renames Section 601 of the HEA, adding 
     the words ``Consultation'' and ``Survey'' to the heading.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill delete the term 
     ``post-Cold War'' from the findings.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill include linkages 
     with overseas institutions of higher education as an 
     additional purpose of this section. The House bill also 
     includes linkages to organizations that contribute to the 
     educational programs assisted under this Part.
       The House recedes.
       The House bill includes international business and trade 
     competitiveness as an additional purpose of this section.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment adds a new subsection that requires 
     the Secretary to consult with officials from a wide range of 
     federal agencies when determining the national need for 
     foreign languages, and to take the recommendations into 
     account when soliciting applications.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike the 
     requirement that federal ``agencies shall provide information 
     to the Secretary regarding how the agencies utilize expertise 
     and resources provided by grantees under this Title,'' and to 
     permit, rather than require, the Secretary to take the 
     recommendations into account when soliciting applications.
       The Senate amendment adds a new subsection that requires 
     the Secretary to develop and administer a survey to get 
     information on postgraduation placement.
       The House bill contains no similar provision.
       The House recedes with an amendment to ensure that the 
     survey is conducted once every two years and is administered 
     to students who have ``completed'' rather than ``participated 
     in'' a program supported under this Title.
     Section 602. Graduate and undergraduate language and area 
         centers and programs
       The Senate amendment and the House bill add support for 
     instructors of the less commonly taught languages to the list 
     of authorized activities for the National Language and Area 
     Centers.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill authorizes projects that support students' 
     understanding of science and technology in coordination with 
     foreign language proficiency.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to authorize 
     ``projects that support students in the science, technology, 
     engineering, and math fields to achieve foreign language 
     proficiency.''
       The House bill includes partnerships with ``colleges of 
     education and teacher professional development'' as an 
     additional purpose for Outreach Grants.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill includes partnerships with federal and state 
     governmental entities as an additional purpose for Outreach 
     Grants.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill modifies the purposes for Summer Institutes, 
     by striking ``foreign area'' and inserting ``area studies'' 
     in its place, and striking ``of linkage and outreach.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment and the House bill include 
     partnerships or linkages with local educational agencies as 
     an additional purpose for Outreach Grants. The Senate 
     amendment includes ``State educational agencies'' and the 
     House bill includes private and public elementary and 
     secondary

[[Page 17247]]

     schools. The House bill adds dissemination of materials as an 
     additional purpose for Outreach Grants.
       The House recedes.
       The Senate amendment includes ``scholarship programs for 
     students in related areas'' as part of the purpose of linkage 
     and outreach to federal and state governmental entities.
       The House bill contains no similar provision.
       The House recedes.
       The House bill adds ``Undergraduate'' to the name of the 
     Graduate Fellowships program. The Senate amendment strikes 
     ``Graduate'' from the name.
       The House recedes.
       The Senate amendment and the House bill have similar 
     provisions that make eligible undergraduates engaged in 
     ``intermediate or advanced study of a less commonly taught 
     language'' and continue eligibility for graduate students 
     engaged in pre-dissertation study, dissertation research, and 
     dissertation writing.
       The House recedes.
       The Senate amendment amends the subsection on 
     ``Allowances'' to add undergraduate expenses for educational 
     programs in the United States and abroad.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment includes additional application 
     requirements for all Graduate and Undergraduate Language and 
     Area Centers and Programs.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike the 
     requirement that ``[e]ach application shall also describe how 
     the applicant will address disputes regarding whether 
     activities funded under the application reflect diverse 
     perspectives and a wide range of views.''
     Section 603. Language resource centers
       The House bill amends section 603(c) of the HEA to require 
     that grants under this section also ``reflect the purposes of 
     this Part''.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 604. Undergraduate international studies and foreign 
         language programs
       The House bill replaces all occurrences of the term 
     ``combinations'' in section 604(a)(1) of the HEA with 
     ``consortia.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill renames, as an authorized use of funds under 
     section 604(a)(2) of the HEA, ``teacher training'' as 
     ``teacher professional development.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to retain ``teacher 
     training'' as an authorized use of funds, insert ``pre-
     service'' before ``teacher training'', and ``in-service'' 
     before ``teacher professional development.''
       Both the Senate amendment and the House bill restrict 
     grantees from using any more than ten percent of the grant 
     for this purpose.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill authorizes funds to be used for partnerships 
     with ``local educational agencies and public and private 
     elementary and secondary education schools.'' Under current 
     law funds may be used for partnership with ``elementary and 
     secondary education institutions.''
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill authorizes the Secretary to waive the non-
     federal matching requirement for any eligible institution 
     that demonstrates need for a waiver or reduction.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires that grants allowed under 
     subsection (a)(6) ``reflect the purposes of this Part.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment amends the application requirements to 
     include details on how scholarship information will be 
     provided to students, how the funded activities reflect 
     diverse perspectives and a range of views, and how the 
     applicant will address disputes and encourage service.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike the 
     requirement that an applicant describe how it will address 
     disputes.
       The House bill requires the Secretary to establish 
     requirements for program evaluations and requires grant 
     recipients to submit annual reports that evaluate the 
     progress and performance of students participating in 
     programs assisted under subsection (a).
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment raises the current ten percent 
     limitation to twenty percent and limits the use of funds for 
     section 604(a)(2)(I) to not more than ten percent of a grant. 
     The House bill repeals the current provision restricting the 
     Secretary from using no more than ten percent of the funds 
     appropriated for Title VI-A to award grants under Section 
     604.
       The House recedes.
     Section 605. Research; studies
       The Senate amendment amends the provision regarding the 
     study of the international education programs to authorize 
     research or studies that may include an ``evaluation of the 
     extent to which programs assisted under this title reflect 
     diverse perspectives and a wide range of views and generate 
     debate on world regions and international affairs.''
       The House bill contains no similar provision.
       The House recedes with an amendment adding at the end of 
     the provision ``as described in the grantee's application.''
       The Senate amendment and the House bill amend the provision 
     to authorize research or studies that may include ``the 
     systematic collection, analysis, and dissemination of data.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment amends the provision to authorize 
     research or studies that may include ``support for programs 
     or activities to make data collected, analyzed, or 
     disseminated under this section publicly available and easy 
     to understand.''
       The House bill contains no similar provision.
       The House recedes.
     Section 606. Technological innovation and cooperation for 
         foreign information access
       The House bill authorizes the Secretary to provide 
     technological innovation grants to ``partnerships'' between 
     ``institutions or libraries and nonprofit educational 
     organizations including museums.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ``including 
     museums''.
       The Senate amendment and the House bill authorize grants 
     using ``electronic technologies to collect, organize, 
     preserve, and widely disseminate'' specified information 
     ``from foreign sources.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment authorizes the Secretary to provide 
     grants for partnerships with not-for-profit educational 
     organizations.
       The House bill contains no similar provision.
       The House recedes with an amendment to replace ``not-for-
     profit'' with ``nonprofit''.
       The Senate amendment and the House bill amend the list of 
     authorized activities to include acquiring foreign 
     information resources.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill amend the list of 
     authorized activities to include establishing linkages 
     between grantees and libraries, museums, organizations, or 
     institutions of higher education located overseas.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment and the House bill amend the list of 
     authorized activities to include other activities consistent 
     with the purposes of this section.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment adds ``library'' as an entity that may 
     submit an application.
       The House bill contains no similar provision.
       The House recedes.
       The House bill authorizes the Secretary to waive or reduce 
     the non-federal matching requirement.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to establish a special 
     rule under a new Section 623 of the HEA granting the 
     Secretary the authority to waive or reduce all of the non-
     federal matching requirements under this title.
     Section 607. Selection of certain grant recipients
       The Senate amendment clarifies the current provision on the 
     Secretary's authority to award competitive grants under 
     Section 602 of the HEA.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends the selection criteria by 
     requiring the Secretary to consider an applicant's efforts to 
     place and record of placing students into service in areas of 
     national need.
       The House bill contains no similar provision.
       The House recedes.
       The House bill amends the selection criteria by requiring 
     the Secretary to consider the extent to which applicants 
     ``address national needs, generate and disseminate 
     information, and foster debate on international issues.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to insert an ``and'' 
     after ``address national

[[Page 17248]]

     needs'', and replace ``, and foster debate on international 
     issues'' with ``to the public''.
       The House bill requires that grants under Section 602 
     reflect the purposes of this Part.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 608. American overseas research centers
       The Senate amendment adds an application requirement for 
     grants to American overseas research centers.
       The House bill contains no similar provision.
       The House recedes.
     Section 609. Authorization of appropriations for 
         international and foreign language studies
       The Senate amendment authorizes such sums as may be 
     necessary for fiscal year 2008 and for the five succeeding 
     fiscal years.
       The House bill authorizes appropriations of $80,000,000 for 
     fiscal year 2009 and such sums as may be necessary for the 
     four succeeding fiscal years.
       The House recedes with an amendment to authorize such sums 
     as may be necessary for 2009 and each of the five succeeding 
     fiscal years.
     Section 610. Conforming amendments
       The House bill replaces all occurrences of the term 
     ``combinations'' in sections 603(a), 604(a)(5), and 612 of 
     the HEA with ``consortia.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill replaces all occurrences of the term 
     ``combination'' in Section 612 of the HEA with 
     ``consortium''.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 611. Business and international education programs
       The House bill adds ``manufacturing software systems, 
     technology management'' to the authorizing language for 
     Centers for International Business Education under Section 
     612 of the HEA.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill includes Historically Black Colleges and 
     Universities (HBCUs) and Hispanic-Serving Institutions (HSIs) 
     of higher education as eligible recipients of grants to 
     conduct permissible outreach activities.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill adds programs and activities ``encouraging 
     the advancement and understanding of cultural, technological 
     management, and manufacturing software systems'' to the list 
     of permissible outreach activities.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike all that 
     follows after ``understanding of'' in the House bill and 
     replace with ``technology-related disciplines.''
       The House bill authorizes the Secretary to waive or reduce 
     the non-federal matching requirement.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to establish a special 
     rule under a new Section 623 of the HEA granting the 
     Secretary the authority to waive or reduce all of the non-
     federal matching requirements under this title.
       The Senate amendment amends Section 612(f)(3) of the HEA to 
     authorize the Secretary to require applicants to make 
     ``diverse perspectives'' available to students.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends the application requirements in 
     Section 613 of the HEA for education and training programs to 
     require applicants to assure that ``the activities funded by 
     the grant will reflect diverse perspectives and a wide range 
     of views on world regions and international affairs.''
       The House bill contains no similar provision.
       The House recedes.
       The House bill authorizes the Secretary to waive or reduce 
     the non-federal matching requirement.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to establish a special 
     rule under a new Section 623 of the HEA granting the 
     Secretary the authority to waive or reduce all of the non-
     federal matching requirements under this title.
       The Senate amendment authorizes the Centers for 
     International Business and the Educational and Training 
     Programs at such sums as necessary for fiscal year 2008 and 
     the five succeeding fiscal years.
       The House bill authorizes the Centers for International 
     Business at $11,000,000 for fiscal year 2009 and such sums as 
     necessary for the four succeeding fiscal years. The House 
     bill authorizes the Educational and Training Programs at 
     $7,000,000 for fiscal year 2009 and such sums as necessary 
     for the four succeeding fiscal years.
       The House recedes with an amendment to authorize such sums 
     as may be necessary for fiscal year 2009 and each of the 
     succeeding five years.
     Section 612. Minority foreign service professional 
         development program
       The House bill renames the program established by Section 
     621 of the HEA, the ``Program for Foreign Service 
     Professionals.''
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill modifies the provision on the establishment 
     of the Institute for International Public Policy by requiring 
     the Institute to increase the participation of 
     ``underrepresented populations in the international 
     service'', including ``the international commercial 
     service''.
       The Senate amendment contains no similar language.
       The Senate recedes with an amendment to strike ``the 
     international commercial service.''
       The House bill expands eligibility under Section 621 of the 
     HEA to include Tribally Controlled Colleges or Universities, 
     Alaska Native, Native Hawaiian, and Hispanic-serving 
     institutions of higher education.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include programs 
     eligible for assistance under Part A and B of Title III or 
     Title V.
       The Senate amendment amends the application requirements 
     under Section 621 to require applicants to describe how their 
     activities ``will reflect diverse perspectives and a wide 
     range of views on world regions and international affairs, 
     where applicable.''
       The House bill contains no similar provision.
       The House recedes with an amendment to add ``and generate 
     debate'' after ``range of views''
       The Senate amendment authorizes the Secretary to waive or 
     reduce the non-federal matching requirement.
       The House bill contains no similar provision.
       The Senate recedes with an amendment to establish a special 
     rule under a new Section 623 of the HEA granting the 
     Secretary the authority to waive or reduce all of the non-
     federal matching requirements under this Title.
     Section 613. Institutional development
       The Senate amendment expands the list of programs eligible 
     institutions will be enabled to strengthen under the Section 
     622 of the HEA, including ``international business, and 
     foreign language study programs''.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment and the House bill contain similar 
     provisions that include ``collaboration'' among institutions 
     of higher education to the institutional development goals 
     under Subsection (a).
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment deletes definitions for ``historically 
     Black college or university'' and ``Tribally Controlled 
     College or University'' in Section 622(c) of the HEA.
       The House bill contains no similar provision.
       The House recedes with an amendment to relocate these 
     definitions in Section 631 of the HEA.
     Section 614. Study abroad program
       The Senate amendment deletes references to definitions for 
     ``historically Black college or university'' and ``tribally 
     controlled Indian community colleges'' in Section 623 of the 
     HEA.
       The House bill contains no similar provision.
       The House recedes with an amendment to relocate these 
     definitions in Section 631 of the HEA.
       The House bill adds ``Alaska Native-serving, Native 
     Hawaiian-serving, and Hispanic-serving institutions'' to the 
     program authorizing language under Section 623 of the HEA.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to replace ``tribally 
     controlled Indian community colleges'' with ``tribally 
     controlled colleges or universities''.
     Section 615. Advanced degree in international relations
       The Senate amendment and the House bill contain similar 
     provisions to replace ``master's'' with ``advanced'' degree 
     in the program heading and in the second sentence of the 
     program authorization of Section 624 of the HEA.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with technical revisions.
       The Senate amendment amends the first sentence of the 
     program authorizing provision by inserting ``, and in 
     exceptional circumstances, a doctoral degree,'' after 
     ``master's degree''. The House bill amends the first sentence 
     by replacing ``a master's degree'' with ``an advanced 
     degree'' and including the additional subjects of 
     ``international affairs, international economics, or other 
     academic areas related to the Institute fellow's career 
     objectives.''
       The Senate recedes.
     Section 616. Internships
       The Senate amendment deletes references to definitions for 
     ``historically Black college

[[Page 17249]]

     or university'' and ``tribally controlled Indian community 
     colleges'' in Section 625 of the HEA.
       The House bill contains no similar provision.
       The House recedes with an amendment to relocate these 
     definitions in Section 631 of the HEA.
       The Senate amendment replaces internships with the ``United 
     States Information Agency'' with ``the Department of State.''
       The House bill contains no similar provision.
       The House recedes.
       The House bill adds ``Alaska Native-serving, Native 
     Hawaiian-serving, and Hispanic-serving institutions'' to the 
     program authority.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill deletes the provision requiring that the 
     Interagency Committee on Minority Careers in International 
     Affairs assist in the internship program.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment deletes the position of Associate 
     Director for Education and Cultural Affairs of the United 
     State Information Agency.
       The House bill contains no similar provision.
       The House recedes.
       The House bill names the students participating in 
     internships authorized under Section 625 of the HEA as Ralph 
     J. Bunche Fellows.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 617. Financial assistance
       The Senate amendment authorizes financial assistance under 
     Part C of this Title for summer stipends and Ralph Bunche 
     Scholarships.
       The House bill contains no similar provision.
       The House recedes.
     Section 618. Report
       The Senate amendment and the House bill change the annual 
     report on Part C to a biennial report.
       The Senate and the House recede with an amendment to 
     replace ``biennially'' with ``once every two years.''
     Section 619. Gifts and donations
       The Senate amendment amends the provision on gifts and 
     donations under Part C to conform to its redesignation as 
     Section 628.
       The House bill contains no similar provision.
       The House recedes.
     Section 620. Authorization of appropriations for the 
         Institute for International Public Policy
       The Senate amendment authorizes such sums as may be 
     necessary to carry out Part C of this Title for fiscal year 
     2008 and the five succeeding fiscal years.
       The House bill authorizes $10,000,000 to carry out Part C 
     of this Title for fiscal year 2009 and such sums as may be 
     necessary for the four succeeding fiscal years.
       The House recedes with an amendment to authorize such sums 
     as may be necessary for 2009 and the five succeeding fiscal 
     years.
     Section 621. Definitions
       The Senate amendment deletes the current definition of 
     ``critical languages'' and re-designates the current 
     definitions under Section 631 of the HEA.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends ``comprehensive language and 
     area center'' to be ``comprehensive foreign language and area 
     or international studies center.'' The Senate amendment adds 
     a definition for ``historically Black college and 
     university.'' The Senate amendment adds a definition for 
     ``tribally controlled college or university.'' The Senate 
     amendment amends ``undergraduate language and area center'' 
     to be ``undergraduate foreign language and area or 
     international studies center.''
       The House bill contains no similar provisions.
       The House recedes.
     Section 622. New provisions
       The Senate amendment authorizes the Secretary to assess 
     grantees' compliance with the conditions and terms of Title 
     VI, and includes a rule of construction that provides that 
     this Title shall not be construed to authorize the Secretary 
     to control an institution of higher education's instructional 
     program for the purposes of Title VI.
       The House bill contains no similar provision.
       The House recedes with an amendment to strike reference to 
     the role of complaints in renewing grants under this Section.
       The Senate amendment and the House bill add a new Section 
     633 that authorizes the Secretary to use no more than one 
     percent of the funds appropriated for Title VI to conduct 
     specified activities relating to the programs authorized 
     under this Title.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The Senate amendment requires that the Secretary provide to 
     the authorizing committees a biennial report that identifies 
     areas of national need in foreign language, area, and 
     international studies and a plan to address those needs.
       The House bill contains no similar provision.
       The House recedes with an amendment to replace 
     ``biennially'' with ``once every two years.''
       The House bill includes a provision regarding student 
     safety policies while studying abroad.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 637. Science and technology advanced foreign language 
         education grant program
       The House bill adds a new program to support the 
     development of innovative programs for teaching foreign 
     languages and to emphasize attaining an understanding of 
     science and technological developments in non-English 
     speaking countries.
       The Senate amendment contains no similar provision.
       The House bill authorizes such sums as may be necessary for 
     fiscal year 2009 and each of the four succeeding fiscal 
     years.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that authorizes such 
     sums as may be necessary for fiscal year 2009 and for each of 
     the five succeeding fiscal years.
     Section 638. Reporting by institutions
       The House bill adds a new reporting requirement for Title 
     VI-funded centers or programs at an institution of higher 
     education that receive funds valued at more than $1,000,000 
     from a ``foreign government or private sector corporation, 
     foundation, or any other entity or individual (excluding 
     domestic government entities) during any fiscal year.'' Such 
     institutions of higher education must report, as part of the 
     Integrated Postsecondary Education Data System (IPEDS) data 
     collection, the names and addresses of such contributors and 
     the amount given.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike 
     ``$1,000,000'' and replace with ``$250,000'', to delete the 
     data collection requirement as part of the IPEDS and to 
     require that information required under this section be 
     publicly available. The conferees intend for the Department 
     of Education to ensure the integrity of the reporting 
     requirements under this Title and Section 117. In particular 
     the conferees are concerned that donations are reported and 
     categorized correctly. It is the intent of Congress that the 
     Department of Education guidance prohibit avoidance of the 
     disclosure of foreign gifts through the utilization of 
     domestic conduits or through the reimbursement of domestic 
     entity contributions.
       The House bill requires the Secretary to establish a 
     foreign language marketing campaign.
       The Senate amendment contains no similar provision.
       The House recedes.

        TITLE VII--GRADUATE & POSTSECONDARY IMPROVEMENT PROGRAMS

     Section 701. Purpose
       The Senate amendment adds specific language areas to 
     further define ``areas of national need'' under the purpose 
     of Title VII.
       The House bill contains no similar provision.
       The House recedes with an amendment to include technology 
     in the list of critical security needs.
     Section 702. Jacob K. Javits Fellowship Program
       The House bill gives institutions of higher education 
     additional discretion to allow for Javits Fellows to 
     interrupt their study due to exceptional circumstances for up 
     to one year (or longer if called to active military service), 
     without payment of the fellowship stipend.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment amends this section to require the 
     Secretary to appoint a board consisting of nine individuals.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment adds to the qualifications of members 
     of the Jacob K. Javits Fellows Program Fellowship Board 
     (hereinafter referred to as ``the board'') based on 
     geographic distribution of members, institutional 
     affiliation, and representation from minority institutions of 
     higher education, as defined in Section 365.
       The House bill includes similar provisions, and specifies 
     that at least one member of the board must represent an 
     institution of higher education eligible for grants under 
     Titles III or V.
       The House recedes with an amendment to clarify that board 
     representatives from minority institutions of higher 
     education be from institutions of higher education eligible 
     for grants under Titles III or V.
       The House bill specifies that the stipend amount is to be 
     set at the comparable level on February 1 of the academic 
     year of the recipient's first award. This provision applies 
     to awards for academic year 2009-2010 and

[[Page 17250]]

     later. The House bill redefines the institutional allowance 
     paid to institutions of higher education by replacing a 
     reference to a previous version of the Higher Education Act. 
     The House bill also clarifies that the Consumer Price Index 
     used for calculating inflationary increases is to be the All 
     Urban Consumers index.
       The Senate amendment has no similar provisions.
       The Senate recedes with an amendment to strike ``All Urban 
     Consumers'' and strike ``on February 1st of such academic 
     research year.''
       The House bill specifies that a Masters of Fine Arts degree 
     is to be considered a terminal degree for the purpose of 
     establishing eligibility for a Javits Fellowship.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment extends the Javits program 
     authorization from fiscal year 2008--fiscal year 2013. The 
     Senate amendment amends the authorization level by removing 
     any specified level.
       The House bill extends the Javits program authorization 
     from fiscal year 2009--fiscal year 2013. The House bill 
     retains a specified level ($30,000,000) for the first year of 
     authorization (fiscal year 2009).
       The Senate recedes with an amendment to extend the 
     authorization through fiscal year 2014.
     Section 703. Graduate assistance in areas of national need
       The Senate amendment and the House bill redefine ``areas of 
     national need'' for the purpose of identifying eligible 
     grantees for GAANN.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill adds a priority for specified purposes to 
     support programs preparing professors to become faculty of 
     teacher education programs in specified fields (math, 
     science, special education, and limited English proficiency). 
     The House bill requires grant applications from teacher 
     education programs to include plans for collaboration with 
     other academic programs.
       The Senate amendment contains no similar provision.
       The House recedes.
       The Conferees recognize the Graduate Assistance in Areas of 
     National Need (GAANN) program has been amended to include a 
     subsection which directs the Secretary to consider an 
     ``assessment of the current and future professional workforce 
     needs of the United States'' when selecting GAANN designated 
     fields. In 2007, the U.S. Bureau of Labor Statistics 
     projected that more than one million new and replacement 
     nurses will be needed by 2016. A significant contributing 
     factor to the nursing shortage is the need for nurse faculty. 
     According to the American Association of Colleges of Nursing, 
     the national nurse faculty vacancy rate in baccalaureate and 
     graduate schools of nursing is 8.8%. Given the revisions to 
     this program and the national shortage of nurses and nurse 
     educators, we respectfully request that the Secretary 
     continue to select nursing as a discipline covered under the 
     GAANN program.
       The Senate amendment and the House bill clarify that the 
     stipend levels for the GAANN program are equal to the 
     National Science Foundation Graduate Research Fellowship 
     Program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill further specifies the stipend amount is to 
     be set at the comparable level on February 1 ``of such 
     academic year.''
       The Senate amendment contains no similar provision.
       The House recedes.
       The Senate amendment specifies that this provision applies 
     to awards for 2008-2009 and later. The House bill specifies 
     that this provision applies to awards for 2009-2010 and 
     later.
       The Senate recedes.
       The Senate amendment updates the years from which 
     institutional payments are based beginning in 2007-2008.
       The House bill updates the years from which institutional 
     payments are based beginning in 2008-2009, and ties the 
     payments to the All Urban Consumers Price Index.
       The Senate recedes with an amendment to strike the 
     reference to the All Urban Consumers Price Index.
       The Senate amendment amends the authorization level by 
     removing any specified level for the first year of 
     authorization (fiscal year 2008).
       The House bill retains a specified level ($35,000,000) for 
     the first year of authorization (fiscal year 2009).
       The Senate recedes with an amendment to extend the 
     authorization through fiscal year 2014.
       The House bill makes technical amendments to Section 714(c) 
     to correct incorrect references to other provisions.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill adds language to clarify that master's 
     degree programs are included in academic programs eligible 
     for GAANN.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include doctoral 
     degrees in definition of eligible programs in addition to 
     master's degrees.
       The House bill adds language to specify that a GAANN 
     fellowship recipient must pursue the highest possible degree 
     in their field that is offered by the institution of higher 
     education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 704. Thurgood Marshall Legal Educational Opportunity 
         Program
       The Senate amendment and the House bill make similar 
     changes to the Thurgood Marshall Legal Educational 
     Opportunity program, expanding eligibility for services to 
     students seeking ``admission to law practice.'' In so doing, 
     the Senate amendment refers to ``secondary school students'' 
     while the House bill refers to ``middle and high school 
     students.''
       The House recedes. The Conferees intend that ``secondary 
     school'' encompass both middle schools and high schools.
       The Senate amendment expands the description of a grant 
     activity to include preparing students for successful 
     completion of a baccalaureate program for study at accredited 
     law schools.
       The House bill includes similar changes.
       The House recedes.
       The Senate amendment expands the description of a grant 
     activity to include pre-college and summer academic programs.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment expands eligibility for subgrants to 
     bar associations.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment amends stipend authorization language 
     to include Thurgood Marshall program associates. Stipend 
     recipients must maintain satisfactory progress towards the 
     Juris Doctor or Bachelor of Laws degree, as determined by the 
     respective institution. The Senate amendment exempts 
     graduates in bar preparation courses from meeting this 
     requirement.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment removes an explicit appropriation 
     level authorization and authorizes the program for fiscal 
     year 2008-fiscal year 2013.
       The House bill retains the authorization level of 
     $5,000,000 per year and authorizes the program for fiscal 
     year 2009-fiscal year 2013.
       The Senate recedes with an amendment to extend the 
     authorization through fiscal year 2014.
       The House bill repeals an expired continuation provision.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 705. Sense of Congress
       The Senate amendment and the House bill establish a new 
     program to award competitive grants to institutions for 
     fellowships to minorities and women seeking doctoral degrees 
     with the intent of entering the professoriate under Title 
     VIII.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to add a Sense of the 
     Congress regarding the importance of inter-institutional 
     cooperation in addressing the under-representation of women 
     and minorities in the higher education professoriate.
     Section 706. Masters degree programs at Historically Black 
         Colleges and Universities and Other Minority Serving 
         Institutions
       The House bill establishes a new program to provide 
     competitive grants to qualifying master's degree programs at 
     a specified list of Historically Black Colleges and 
     Universities and Minority Serving Institutions to provide 
     fellowships to students in specified STEM and health fields.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to create a program 
     for Historically Black Colleges and Universities under 
     section 723, a program for Predominantly Black Institutions 
     under section 724, and to authorize appropriations for both 
     programs under section 725 and to allow grantees to expand 
     the uses of funds.
       The Conferees acknowledge that this new authorization 
     dramatically expands the focus on graduate education at the 
     Historically Black Colleges and Universities (HBCUs) by 
     expanding the number of institutional participants in the 
     Title III, B, Section 326 Historically Black Graduate 
     Institution program, and by creating two new masters degree 
     programs in Title VII that serve the Black student community. 
     The Conferees believe that this expansion is warranted in 
     light of the need to dramatically increase the number of 
     minorities, especially African Americans, earning degrees in 
     the physical and natural sciences, computer science, 
     information technology, engineering, mathematics, nursing and 
     allied health, as well as in medicine, veterinary medicine, 
     dentistry, pharmacy, and law. Currently, Title III, B 
     provides grants for undergraduate programs at HBCUs and 
     doctoral and first professional degree programs at HBCUs. 
     Conferees acknowledge that there has been confusion in

[[Page 17251]]

     recent years regarding the Section 326 program and wish to 
     make clear that the focus and intent of the section 326 
     program is to support doctoral and first professional degree 
     programs at eligible HBCUs.
       Recognizing the importance of increasing the number of 
     African Americans holding master's degrees, with this 
     reauthorization, Conferees are creating two master's degree 
     programs to further advance educational opportunities for 
     African Americans. Moreover, the Conferees are committed to 
     increasing funds for the existing Strengthening Historically 
     Black College and University (Section 323) program in order 
     to assure that a strong ``pipeline'' of qualified 
     baccalaureate degree holders is available to compete for 
     acceptance into HBCU graduate and professional schools, as 
     well as other graduate and professional schools throughout 
     the United States. This should begin by assuring that the 
     infusion of $85 million in additional funds provided to HBCUs 
     through the College Cost and Reduction Act is retained and 
     used to supplement, and not supplant the $238.1 million in 
     discretionary Title III, B funds.
       Conferees recognize the vital role HBCUs play in our 
     nation's system of higher education. Following passage of the 
     Civil Rights Act of 1964, Congress in 1965 created distinct 
     federal support for HBCUs which, in the face of legally 
     sanctioned discrimination, had worked to raise the 
     educational outcomes of African Americans. Although HBCUs 
     represent just three percent of all colleges and universities 
     in the nation, HBCUs account for 21.6% of all baccalaureate 
     degrees awarded to Black Americans, 11.4% of all master's 
     degrees, and 10.8% of all doctoral degrees. Additionally, 
     HBCUs year in and year out dominate the top 10 lists of 
     colleges and universities in the awarding of baccalaureate 
     and graduate degrees awarded to Black Americans in the 
     sciences and engineering.
       Conferees also recognize the significant role that 
     Predominantly Black Institutions (PBIs) have in providing 
     postsecondary education. These institutions are ineligible 
     for funding under Title III, B because they do not meet the 
     definition of an HBCU which Congress established when HBCUs 
     were first recognized by Congress in 1965. Nevertheless, 
     Conferees recognize that PBIs represent an important cadre of 
     four-year and two-year institutions that serve as the access 
     point for a growing number of urban and rural Black students 
     whose family and financial situations limit their ability to 
     gain access to college in many states. Many of these students 
     come from low-income families and are also ``first 
     generation'' college students, whose educational preparation 
     for college and family finances to pay for college present 
     special challenges to educational success. PBIs are meeting 
     vital higher education needs for traditionally 
     underrepresented students, a disproportionate number of whom 
     are African American. The master's program for PBIs aims to 
     serve the needs of a growing number of students seeking to 
     expand their educational opportunities. This program will 
     work hand in hand with the undergraduate PBI program and 
     serve as a pipeline for underrepresented and underserved 
     populations to go on to and pursue a master's degree.
       Conferees recognize that both HBCUs and PBIs contribute to 
     the development of Black master's professionals. Conferees 
     respect the historical and distinct differences between these 
     types of institutions; at the same time, Conferees recognize 
     that both serve similar communities.
       For this reason, Conferees intend that future 
     appropriations authorized under section 725 for each program 
     represent the proportionate number of eligible institutions 
     in sections 723 and 724 relative to the total number of 
     institutions in subpart 4 and in accordance with the minimum 
     grant provisions (sections 723(a) and 724(a)), funding rule 
     provisions (sections 723(f) and 724(f)), and hold harmless 
     provisions (sections 723(g) and 724(g)) in each program. This 
     will ensure equitable levels of funding for each program and 
     will encourage stakeholders to work together to secure 
     resources. An institution shall not receive more than one 
     grant under section 723 or 724 for the same fiscal year. 
     Grants may periodically be renewed for a period of time to be 
     determined by the Secretary.
     Section 707. Fund for the Improvement of Postsecondary 
         Education
       The House bill amends the FIPSE authority by placing an 
     emphasis on providing opportunities for non-traditional 
     student populations and emphasizing joint efforts that 
     provide ``for academic credit.''
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to encourage improved 
     opportunities for all students, including non-traditional 
     students and add to the purpose to create programs involving 
     paths to career and professional training, including efforts 
     that provide academic credit for programs and combinations of 
     academic and experiential learning.
       The Senate amendment and the House bill amend the stated 
     grant purposes pertaining to supporting technology of 
     communications, including delivery of distance education, but 
     the Senate explicitly includes ``health professions serving 
     medically underserved populations.''
       The House recedes.
       The House bill amends the FIPSE authority by changing 
     ``institutions'' to ``postsecondary institutions.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment adds to the FIPSE authority to include 
     remedial postsecondary English language instruction. The 
     House bill adds to the authority to support and assist 
     partnerships between institutions of higher education and 
     secondary schools that have not less than ten percent of the 
     schools' enrollment assessed as late-entering limited English 
     proficient students.
       The Senate and the House recede with an amendment to adopt 
     both new additions with an amendment to strike the ten 
     percent requirement and replace that criterion with 
     ``secondary schools that have a significant population 
     identified as late-entering limited English proficient.''
       The Senate amendment and the House bill amend the FIPSE 
     authority by adding the development of institutional 
     consortia to design and offer curricular programs that focus 
     on poverty and human capabilities, which includes a service-
     learning component.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill amends FIPSE authority by adding the 
     following programs: assessment of teacher education programs; 
     reduction of illegal downloading of copyrighted content; 
     promoting fire safety in student housing; assessing the 
     feasibility of an inter-institutional monitoring organization 
     on gender and racial equality in campus faculty 
     administration; demonstration projects for homeless and 
     former foster students to provide housing during academic 
     breaks; and promoting diversity in the entertainment 
     industry.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to strike the 
     assessment of teacher education programs, illegal 
     downloading, fire safety in student housing, and an inter-
     institutional monitoring organization on gender and racial 
     equality.
       The Senate amendment and the House bill establish a Center 
     for Best Practices to Support Single Parent Students.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
       The House bill amends FIPSE to require that funds made 
     available under FIPSE are not to be given to students who are 
     not citizens, permanent residents, a citizen of one of the 
     Freely Associated States, or is otherwise in the United 
     States not temporarily to seek citizenship or residency, or 
     to institutions of higher education not meeting certain 
     energy efficiency standards for new construction.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to: create a priority 
     under FIPSE for institutions of higher education that meet 
     certain energy efficiency standards for new construction; and 
     clarify that only funds made available under FIPSE for the 
     purpose of providing direct financial assistance to an 
     individual student are to be limited to eligible citizens, in 
     order to align student eligibility for grants under the FIPSE 
     program with Title IV eligibility.
       The Conferees do not intend to limit funds that are made 
     available under FIPSE for programs that are provided to 
     citizens and non-citizen students together, such as an 
     institution wide program or, to exclude non-citizens from 
     such program.
       The Senate amendment and the House bill add a new 
     scholarship program under FIPSE for dependent children and 
     spouses of 
     post-9/11 veterans killed or disabled in duty and current 
     active duty military personnel. The Senate amendment 
     describes spousal eligibility; caps scholarships at $5,000; 
     and accounts for cost of attendance--disallowing the 
     scholarship and other non-loan based aid to exceed cost of 
     attendance. The House bill describes spousal eligibility in a 
     substantively similar way to the Senate and caps scholarships 
     at $5,000. The Senate amendment and the House bill include a 
     provision that nonprofit organizations receiving a contract 
     under this subsection may not use more than one percent of 
     funds for administrative costs.
       The Senate recedes with an amendment to ensure the grant 
     does not exceed the cost of attendance.
       The House bill substitutes references to the Director of 
     FIPSE with references to the Secretary, and eliminates 
     requirements to establish FIPSE grant and contracting 
     procedures.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment amends the areas for national need for 
     which grants for special FIPSE projects may be awarded to 
     include instructional improvement and assessment and 
     specifies model programs to include model core curricula.
       The House bill amends the areas for national need for which 
     grants for special FIPSE projects may be awarded to include 
     courses in American and world history and other core 
     subjects, and support centers for quality and safety in 
     preparing medical and nursing students.
       The House recedes with an amendment to include support for 
     centers for medical quality.

[[Page 17252]]

       The Senate amendment removes any specific authorization 
     level for FIPSE and extends authorization for fiscal year 
     2008-fiscal year 2013.
       The House bill raises authorization for the fiscal year 
     2009 to $40,000,000 and such sums as may be necessary for 
     fiscal year 2009-fiscal year 2013.
       The Senate recedes with an amendment to extend the 
     authorization through fiscal year 2014.
     Section 708. Repeal of the Urban Community Service Program
       The Senate amendment repeals the Urban Community Service 
     Program.
       The House bill repeals the Urban Community Service Program 
     and replaces it with an ``Urban-Serving Research 
     Universities'' program to expand research and other urban-
     service initiatives in partnerships with other public non-
     profit organizations. The program is authorized for 
     $50,000,000 per year for fiscal year 2009-fiscal year 2013.
       The House recedes.
     Section 709. Programs to provide students with disabilities 
         with a quality higher education
       Both the Senate amendment and the House bill amend Part D 
     of Title VII.
       The Conferees adopt the provisions with the following 
     amendments.
       The Senate amendment and House bill make similar changes to 
     the program supporting postsecondary faculty in educating 
     students with disabilities in Part D of Title VII, and 
     establish a new comprehensive transition program for students 
     with intellectual disabilities, as well as a coordinating 
     center for technical assistance, evaluation, and development 
     of accreditation standards to support such transition 
     programs.
       The Senate amendment also amends the program supporting 
     postsecondary faculty in educating students with disabilities 
     to create ``disability career pathways'' to encourage 
     students with disabilities and nondisabled students to enter 
     disability-related fields.
       The House bill contains no similar provision.
       The House bill also establishes an Advisory Commission on 
     Accessible Instructional Materials in Postsecondary Education 
     for Students with Disabilities, model demonstration programs 
     to support improved access to postsecondary instructional 
     materials for students with print disabilities, and a 
     National Technical Assistance Center to provide information 
     and technical assistance for students with disabilities to 
     improve the postsecondary recruitment, retention, and 
     completion rates of such students.
       The Senate amendment contains no similar provisions.
       The House and Senate recede with an amendment to adopt 
     various changes to the program supporting postsecondary 
     faculty in educating students with disabilities, place the 
     program in a new Subpart 1 of Part D, and establish new 
     subparts 2, 3, and 4 in Part D, as follows:


  Subpart 1--Demonstration Projects to Support Postsecondary Faculty, 
    Staff and Administrators in Educating Students with Disabilities

       The Conferees amend the authorized activities of the 
     program to include teaching methods and strategies consistent 
     with the principles of universal design for learning, and 
     specify that such methods and strategies should provide 
     postsecondary faculty, and staff and administrators with the 
     skills and supports necessary to meet the academic and 
     programmatic needs of students with disabilities. The 
     Conferees also add options to the list of authorized 
     activities, including effective transition practices for 
     students with disabilities, accessible distance learning 
     strategies, ``disability career pathways,'' and curriculum 
     development that makes postsecondary education more 
     accessible to students with disabilities.
       The Conferees amend the application requirements to include 
     a description of the extent to which the applicant will work 
     to replicate best practices in serving students with 
     disabilities.
       The Conferees require the Secretary to prepare and 
     disseminate reports, reviewing both prior and new 
     demonstration projects authorized under this subpart and 
     providing recommendations on how effective projects can be 
     replicated.
       The Conferees authorize such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal years 
     to carry out the purposes of this subpart.


     Subpart 2--Transition Programs for Students with Intellectual 
                   Disabilities Into Higher Education

       The Conferees establish a new subpart 2 of Part D to 
     support model demonstration programs that promote the 
     successful transition of students with intellectual 
     disabilities into higher education. Comprehensive transition 
     and postsecondary programs for students with intellectual 
     disabilities are defined as degree, certificate, or non-
     degree programs that are offered by an institution of higher 
     education, designed to support students with intellectual 
     disabilities who are seeking to continue academic, career and 
     technical, and independent living instruction at an 
     institution of higher education, include an advising and 
     curriculum structure, and require students with intellectual 
     disabilities to participate on not less than a half-time 
     basis in coursework and other activities with nondisabled 
     students. The Conferees intend to encourage such programs to 
     integrate students with intellectual disabilities into 
     inclusive activities, coursework and campus settings with 
     nondisabled postsecondary students, and that such programs 
     include measurable outcomes, such as attainment of a degree 
     or certificate.
       A student with an intellectual disability is defined as a 
     student with mental retardation or a cognitive impairment 
     characterized by significant limitations in intellectual and 
     cognitive functioning and adaptive behavior, and who is 
     currently, or was formerly, eligible for a free, appropriate 
     public education under the Individuals with Disabilities 
     Education Act (IDEA). The Conferees recognize that some 
     students with disabilities who are eligible for a free and 
     appropriate public education may not enroll in public 
     schools, nor choose to receive special education services 
     under the Individuals with Disabilities Education Act. The 
     Conferees intend to include such students in the definition 
     of students with intellectual disabilities under this Act, if 
     such students can otherwise demonstrate they meet the 
     eligibility criteria.
       The Conferees authorize the Secretary to competitively 
     award grants to institutions of higher education, or 
     consortia of such institutions, to create or expand the model 
     demonstration programs, and specify that the program shall be 
     administered by the office at the Department of Education 
     that administers other postsecondary programs. Grants are 
     authorized to be awarded for a period of five years. The 
     Conferees direct the Secretary, in awarding such grants, to 
     provide for an equitable geographic distribution of grants, 
     provide grants to institutions or consortia that are located 
     in areas that are underserved by such programs and to give 
     preference to institutions or consortia that agree to form 
     partnerships with other relevant agencies that serve students 
     with intellectual disabilities, integrate students with 
     intellectual disabilities into institutionally owned or 
     operated housing offered to students without disabilities, or 
     involve students attending the institution who are studying 
     special education, general education, vocational 
     rehabilitation, assistive technology, or related fields in 
     the model program.
       The Conferees authorize various uses of funds for 
     institutions or consortia receiving grants under this 
     subpart, including the provision of individual supports and 
     services for the academic and social inclusion of students 
     with disabilities in academic courses, extracurricular 
     activities, and other aspects of the institution's 
     postsecondary program; a focus on academic enrichment, 
     socialization, independent living skills, and integrated work 
     experiences and career skills; integration of person-centered 
     planning for the participating students; participation of the 
     institution or consortium in the coordinating center 
     established in subpart 4; partnerships with one or more local 
     educational agencies to support students with intellectual 
     disabilities who are still eligible for education and related 
     services under IDEA to participate in the model programs; and 
     the creation and offer of a meaningful credential for 
     students with intellectual disabilities upon completion of 
     the model program. The Conferees also require an institution 
     or consortium receiving a grant under this subpart to provide 
     matching funds of not less than twenty-five percent of the 
     cost of the model program supported under the grant, which 
     may be provided in cash or in kind.
       The Conferees require the Secretary to prepare and 
     disseminate a report, within five years of the date of the 
     first grant awarded under this subpart, which reviews the 
     programs supported under this subpart and 
     provides recommendations on how model programs can be 
     replicated. The Conferees include a rule of construction to 
     specify that nothing in the subpart shall be construed to 
     reduce or expand the obligation of a State or local 
     educational agency to provide a free, appropriate public 
     education under IDEA, or eligibility requirements under any 
     Federal, State, or local disability law.
       The Conferees recognize that under the Individuals with 
     Disabilities Education Act, nothing prohibits the use of Part 
     B funds to support students with disabilities in transition 
     programs at institutions of higher education, if the 
     Individualized Education Program Team determines that such a 
     program is the appropriate placement for the student.
       The Conferees authorize such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal years 
     to carry out the purposes of this subpart, and include a 
     reservation of funds for the coordinating center authorized 
     in subpart 4.


  Subpart 3--Commission on Accessible Materials; Programs to Support 
                      Improved Access to Materials

       The Conferees establish a new subpart 3 of Part D that 
     creates an Advisory Commission on Accessible Instructional 
     Materials in Postsecondary Education for Students with 
     Disabilities, and model demonstration programs to support 
     improved access to postsecondary instructional materials for 
     students with print disabilities. The term 'student with a 
     print disability' is defined as a student with a disability 
     who experiences barriers to accessing instructional materials 
     in

[[Page 17253]]

     nonspecialized formats, including students eligible under 17 
     U.S.C. 121(d)(2). The Conferees acknowledge that students 
     with a range of impairments, including but not limited to 
     visual impairments, physical limitations, dyslexia, and 
     intellectual disabilities, may meet this definition. Among 
     other activities, the Conferees intend that the Commission 
     will analyze the different definitions of eligible students 
     in applicable Federal law and make recommendations as to the 
     scope of the definition of student with a print disability.
       The Conferees direct the Secretary to appoint nineteen 
     members to the Commission from various categories, including 
     representatives from the Department, the Library of Congress, 
     associations representing individuals with disabilities, 
     associations representing publishers, institutions of higher 
     education with experience in teaching or supporting students 
     with print disabilities, producers of accessible materials, 
     and individuals with print disabilities, including 
     postsecondary students. The Commission is directed to meet 
     for the first time no later than ninety days after the 
     establishment of the Commission.
       The Conferees direct the Commission to conduct a 
     comprehensive study to assess the barriers that affect, and 
     the technical solutions that can improve, the timely delivery 
     and quality of accessible instructional materials for 
     students with print disabilities, as well as the effective 
     use of such materials by postsecondary faculty and staff. The 
     Commission is directed to make recommendations related to a 
     comprehensive approach to improve the opportunities for 
     postsecondary students with print disabilities to access 
     instructional materials in specialized formats in a timeframe 
     comparable to the availability of standard instructional 
     materials for postsecondary students without disabilities.
       The Commission is also directed to develop recommendations 
     to inform Federal regulations and legislation and support the 
     model demonstration programs to improve access to 
     postsecondary instructional materials for students with print 
     disabilities authorized in the subpart. Such recommendations 
     are to identify best practices related to systems for 
     collecting, maintaining, processing, and disseminating 
     materials in specialized formats; improve the effective use 
     of such materials by faculty and staff while complying with 
     applicable copyright law; and analyze and consider 
     modifications to the terms `instructional materials,' 
     `authorized entities,' and `eligible students' in applicable 
     Federal law for the purpose of improving services to 
     students with disabilities. The Conferees recognize the 
     importance of accessible instructional materials for all 
     students with disabilities, while also recognizing the 
     importance of maintaining appropriate copyright protections, 
     and the opportunity to market universally-designed materials 
     that meet the needs of all students, for publishers of 
     instructional materials.
       In conducting its study and developing its recommendations, 
     the Conferees intend for the Commission to identify, and draw 
     upon the expertise of, national non-profit organizations and 
     other entities with extensive experience providing accessible 
     instructional materials to postsecondary students with print 
     disabilities. Such organizations and entities should have 
     proven track records in conducting research into the creation 
     of file standards for accessible instructional materials, 
     implementing models for the provision of accessible 
     instructional materials for postsecondary students with print 
     disabilities, and collaborating with publishers and other 
     stakeholders in these efforts. The Conferees note that the 
     following organizations and entities have done useful work in 
     these areas: the Recording for the Blind & Dyslexic 
     Technology Advisory Committee, Benetech Bookshare, the 
     Critical Issues Task Force of the Association of American 
     Publishers Higher Education Division, the Center for Applied 
     Special Technology, the Association of Higher Education and 
     Disabilities E-Text Solutions Working Group, the Library of 
     Congress National Digital Information and Infrastructure 
     Preservation Program Copyright Working Group, and the 
     Advisory Council and the Technical Assistance and Development 
     Centers of the National Instructional Materials Access 
     Center. The Conferees recommend that the Commission consider 
     the work of these groups in its efforts, and identify other 
     entities with technical expertise in the Commission's areas 
     of study, including entities that may have used federal 
     dollars to identify solutions.
       In developing these recommendations, the Commission is 
     directed to consider how students with print disabilities may 
     obtain materials in accessible formats in a timeframe, 
     comparable to the availability of materials to students 
     without disabilities; and to the maximum extent practicable, 
     at comparable costs; the feasibility of establishing 
     standardized electronic file formats for accessible 
     materials; the feasibility of establishing a national 
     clearinghouse, repository, or file-sharing network for such 
     materials; the feasibility of market-based solutions 
     involving collaborations among publishers and institutions of 
     higher education to increase the availability of accessible 
     materials; solutions utilizing universal design; and 
     solutions for low-incidence, high-cost requests for materials 
     in specialized formats. The Conferees direct the Commission 
     to submit a report detailing its findings and recommendations 
     to the Secretary and the authorizing committees not later 
     than one year after the Commission's first meeting.
       With respect to the model demonstration programs to support 
     improved access to postsecondary instructional materials for 
     students with print disabilities, the Conferees authorize the 
     Secretary to award grants or contracts, on a competitive 
     basis, to not less than one partnership consisting of an 
     institution of higher education with demonstrated expertise 
     in meeting the needs of students with print disabilities, and 
     a public or private entity with demonstrated expertise in 
     developing accessible instructional materials, and the 
     technical development expertise necessary for the efficient 
     dissemination of such materials. The partnership may include 
     representatives of the publishing industry.
       The Conferees direct partnerships receiving grants or 
     contracts under this subpart to conduct a variety of required 
     activities, including the development and implementation of 
     processes to identify and verify eligibility of postsecondary 
     students with print disabilities; procedures to facilitate 
     methods to request such materials; procedures to coordinate 
     among institutions of higher education, publishers, and 
     entities that produce materials in specialized formats; 
     systems to deliver specialized materials in a timely fashion, 
     and to reduce duplicative conversions of such materials; 
     procedures to protect against copyright infringement with 
     respect to materials in specialized formats; and outreach and 
     awareness activities for postsecondary students, faculty and 
     staff regarding the acquisition and dissemination of 
     materials in specialized formats and materials utilizing 
     universal design.
       The Conferees direct the Secretary, in awarding such grants 
     or contracts, to give preference to partnerships that support 
     a unified search for accessible instructional materials 
     across multiple databases or market-based approaches to make 
     accessible instructional materials available to eligible 
     students at prices comparable to the prices of standard 
     instructional materials.
       The Conferees direct the Secretary to submit a report to 
     the authorizing committees, not later than three years after 
     the date of the first contract or grant awarded under this 
     subpart, which details the grants and contracts supported 
     under this subpart, as well as the number of students with 
     print disabilities served by such grants or contracts. The 
     Conferees authorize the Secretary to expand the model 
     programs supported under this subpart on the basis of this 
     report and other related reports.
       The Conferees include a rule of construction to specify 
     that nothing in the subpart shall be construed to limit or 
     preempt a State law regarding the production or distribution 
     of postsecondary instructional materials in accessible 
     formats to students with disabilities.
       The Conferees authorize such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal years 
     to carry out the purposes of this subpart, and include a 
     reservation of funds for the Advisory Commission authorized 
     in the subpart.


  Subpart 4--National Technical Assistance Center; Coordinating Center

       The Conferees establish a new subpart 4 of Part D that 
     creates a National Center for Information and Technical 
     Support for Postsecondary Students with Disabilities to 
     provide information on best and promising practices to 
     students with disabilities, the families of such students, 
     and entities awarded grants, contracts, or cooperative 
     agreements under subparts 1, 2, and 3 of Part D to improve 
     the postsecondary recruitment, transition, retention, and 
     completion rates of students with disabilities. Subpart 4 
     also authorizes a coordinating center to support inclusive 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities, including those 
     authorized under subpart 2.
       The Conferees establish and support a National Center for 
     Information and Technical Support for Postsecondary Students 
     with Disabilities. The Conferees specify that an institution 
     or higher education or nonprofit organization, with 
     demonstrated expertise in supporting students with 
     disabilities in higher education, technical knowledge related 
     to the dissemination of information in accessible formats, 
     and working with diverse types of institutions of higher 
     education, or partnership of two or more such institutions or 
     organizations, may qualify as the eligible entity authorized 
     to operate the National Center. The Conferees specify that 
     the National Center shall provide information and technical 
     assistance to students with disabilities and the families of 
     such students, to support students across the broad spectrum 
     of disabilities, including information to assist students 
     with disabilities in planning for postsecondary education 
     while they are in secondary school; information to improve 
     the participation of students with disabilities in early 
     outreach programs supported under Title IV; information on 
     research-based supports available in postsecondary settings; 
     information on student mentoring

[[Page 17254]]

     and networking opportunities; and effective recruitment and 
     transition practices for students with disabilities at 
     institutions of higher education.
       The Conferees further specify that the National Center 
     shall provide information and technical assistance to 
     postsecondary faculty, staff, and administrators to improve 
     the services provided to, the accommodations for, the 
     retention rates of, and the completion rates of students with 
     disabilities in higher education settings. These activities 
     may include collection and dissemination of best practices 
     and materials for accommodating and supporting students with 
     disabilities; the development of training modules for higher 
     education faculty for such purpose; and development of 
     technology-based tutorials. The Conferees authorize the 
     National Center to build, maintain, and update a database of 
     disability support information related to postsecondary 
     education that shall be made available to the public through 
     a website built to high technical standards of accessibility.
       The Conferees direct the National Center to prepare 
     periodic reports to the Secretary and the authorizing 
     committees analyzing the condition of postsecondary success 
     for students with disabilities, including a review of the 
     programs authorized under Part D; annual enrollment and 
     graduation rates of students with disabilities at 
     institutions of higher education; recommendations for 
     effective supports and services for students with 
     disabilities in higher education; recommendations on reducing 
     barriers to full participation of such students in higher 
     education; and a description of successful strategies in 
     improving the success of such students in postsecondary 
     education. The first of such reports shall be submitted not 
     later than three years after the establishment of the Center, 
     and every two years thereafter.
       The Conferees specify that in hiring employees of the 
     National Center, the center shall consider prospective 
     employees' experience in providing training and technical 
     assistance to practitioners.
       The Conferees establish a Coordinating Center for Model 
     Programs for Students with Intellectual Disabilities, which 
     will serve as a coordinating center for technical assistance, 
     evaluation, and recommendations related to the development of 
     standards for institutions of higher education that offer 
     inclusive comprehensive transition and postsecondary programs 
     for students with intellectual disabilities. The Conferees 
     recognize that there may currently exist inclusive 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities as defined by this 
     Act, and intend the Coordinating Center to work with such 
     programs as well as those participating in grants authorized 
     under subpart 2. The Conferees specify that an entity or 
     partnership of entities with demonstrated expertise in the 
     fields of higher education, the education of students with 
     intellectual disabilities, the development of comprehensive 
     transition and postsecondary programs for students with 
     intellectual disabilities, and evaluation and technical 
     assistance may qualify as the eligible entity to operate the 
     coordinating center. The Conferees authorize the Secretary to 
     enter into an agreement with an eligible entity to operate 
     the coordinating center for a period of five years.
       The Conferees direct that the coordinating center shall 
     serve as the technical assistance entity for all 
     comprehensive transition and postsecondary programs for 
     students with intellectual disabilities, and that the center 
     shall provide technical assistance regarding the development, 
     evaluation, and improvement of such programs; develop an 
     evaluation protocol for such programs; and assist recipients 
     of grants under subpart 2 of Part D in providing a meaningful 
     credential to students with intellectual disabilities who 
     complete such programs. The Conferees also direct the 
     coordinating center to develop recommendations on various 
     components of the programs supported under subpart 2, analyze 
     potential funding streams for such programs, develop model 
     memoranda of agreement among institutions of higher 
     education, States, and local educational agencies with 
     respect to such programs; develop mechanisms for the regular 
     communication, outreach and dissemination of information 
     about such programs among relevant groups; and convene a 
     workgroup to develop model criteria, standards, and 
     components of such programs that are appropriate for the 
     development of accreditation standards for these programs.
       The Conferees direct the coordinating center to prepare a 
     report to the Secretary, the authorizing committees, and the 
     National Advisory Committee on Institutional Quality and 
     Integrity, no later than five years after the date of 
     establishment of the coordinating center, on the 
     recommendations of the workgroup charged with developing 
     model criteria and standards appropriate for the development 
     of accreditation standards for comprehensive transition and 
     postsecondary programs for students with intellectual 
     disabilities.
       The Conferees authorize such sums as may be necessary for 
     fiscal year 2009 and each of the five succeeding fiscal years 
     to carry out the purposes of this subpart.
     Section 710. Subgrants to nonprofit organizations
       The House bill clarifies that guaranty agencies are 
     eligible for subgrants under the College Access Challenge 
     Grant Program created by CCRAA.
       The Senate amendment contains no similar provision.
       The Senate recedes.

                    TITLE VIII--ADDITIONAL PROGRAMS

     Section 801. Additional programs
       The Senate amendment and the House bill create a new Title 
     VIII to add new programs to the Act.
       The Senate and House recede with amendments to Title VIII 
     as follows.
     Section 801. Project GRAD
       The Senate amendment and the House bill authorize a new 
     program to provide funding through a grant for a non-profit 
     organization called Project GRAD USA to support integrated 
     secondary-postsecondary graduation reform efforts. The Senate 
     amendment establishes the program as a subsection of FIPSE. 
     The House bill establishes the program under Title VIII.
       The Senate recedes on placement and with an amendment to 
     strike the term disadvantaged students and replace with low-
     income students, to reduce the administrative funding from 
     eight percent to five percent, and to include additional 
     outcome criteria for determining the funding level for 
     grantees. The House and Senate recede to require the 
     Secretary enter into a contract, rather than a grant, with 
     Project Grad
     Section 802. Mathematics and science scholars program
       The Senate amendment establishes a new competitive grant 
     program that authorizes the Secretary to award competitive 
     grants to states. States would award $1,000 scholarships to 
     first and second year undergraduate students who complete a 
     rigorous high school program in math and science. States must 
     match fifty percent of federal funds and may set priorities 
     (e.g., underrepresented groups) for the scholarships. The 
     Senate amendment authorizes appropriations of such sums as 
     may be necessary fiscal year 2008 through fiscal year 2009.
       The House bill contains no similar provision.
       The House recedes with an amendment to increase the 
     scholarship award from $1,000 to $5,000, to limit eligibility 
     to first year undergraduate students, and to incorporate 
     provisions from the Math and Science incentives program from 
     Title IV of the House bill.
       The Conferees intend that States awarding scholarships from 
     the Mathematics and Science Scholars Program should take into 
     account the regional and geographic needs of the State in 
     determining which eligible students receive the scholarships.
     Section 803. Business workforce partnerships for job skill 
         training in high-growth occupations or industries
       The Senate amendment authorizes the Secretary to award 
     competitive grants to partnerships between institutions of 
     higher education and local workforce investment boards for 
     development of job training programs in high-growth 
     industries. Grants would fund training for ``non-
     traditional'' students meeting specified criteria. The Senate 
     amendment authorizes appropriations of such sums as may be 
     necessary for fiscal year 2008 through fiscal year 2009.
       The House bill includes a related Business Workforce 
     Partnership grant program that authorizes the Secretary to 
     award competitive grants to institutions of higher education 
     in partnership with businesses, local workforce investment 
     boards, and labor organizations to develop pathways from 
     education and training to high-demand occupations.
       The Senate and the House recede with an amendment to merge 
     the two programs and authorize such sums as may be necessary 
     for fiscal year 2009 and each of the five succeeding fiscal 
     years.
       It is the intent of the Conferees that the Workforce 
     Partnerships for Job Skill Training in High-Growth 
     Occupations or Industries created in this bill are awarded as 
     part of a competitive grants process. The Conferees further 
     intend that the Secretary shall consult with experts in the 
     workforce and occupational education and training fields 
     during all parts of the grants process, including the 
     reviewing of applications, awarding grants, and evaluating 
     the success of grantees.
       Finally, the Conferees intend for the Secretary to 
     encourage grant recipients pursuing partnerships for the 
     purposes outlined in subsection (e)(1) or (e)(2) to where 
     possible design course offerings and programs that offer 
     credit towards a degree or certificate.
     Section 804. Capacity for nursing students or faculty
       The Senate amendment and the House bill establish a new 
     program that authorizes the Secretary to award competitive 
     grants to nursing programs to expand faculty and facilities.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with the following amendments.
       The Senate amendment authorizes grants beginning in 
     academic year 2006-2007. The House bill authorizes grants 
     beginning in academic year 2008-2009.

[[Page 17255]]

       The Senate recedes.
       The Senate amendment authorizes funding indefinitely. The 
     House bill does not provide a separate authorization of 
     appropriations for this section.
       The House recedes with an amendment to authorize such sums 
     as may be necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.
       The House bill establishes a Nurse Faculty Pilot Project 
     which authorizes the Secretary to award competitive grants to 
     fund scholarships and release time for nurses studying for 
     advanced degrees with the intention of becoming faculty.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify that grants 
     awarded under this section may be used to support 
     partnerships with hospitals or health facilities to improve 
     alignment between nursing education and healthcare delivery 
     methods, fund release time for qualified nurses enrolled in 
     the graduate nursing program and to provide scholarships to 
     qualified nurses in pursuit of an advanced degree with the 
     goal of becoming faculty members in an accredited nursing 
     program.
       The conferees recognize that Part D, Section 804, Capacity 
     for Nursing Students and Faculty, combines two distinct 
     programs included in the House bill; a capitation grant 
     program and a nurse faculty pilot project. In considering the 
     designation of the awards and distribution of excess funds, 
     the committee urges the Secretary to ensure an adequate 
     number of awards and funding is provided for the nurse 
     faculty pilot project described in (c)(2)(B). Additionally, 
     the Secretary shall determine the duration in which the nurse 
     faculty pilot project grants are awarded; such time period 
     should not exceed five years but should not be less than 
     three years. After the expiration of the pilot program, the 
     project's success will be evaluated.
     Section 805. American history for freedom
       The Senate amendment establishes a new program that 
     authorizes the Secretary to award competitive grants to 
     institutions of higher education to establish or strengthen 
     programs that promote ``(1) traditional American history; (2) 
     the history and nature of, and threats to, free institutions; 
     or (3) the history and achievements of Western 
     Civilization.'' The Senate amendment authorizes 
     appropriations for fiscal year 2008 through fiscal year 2013.
       The House bill contains no similar provision.
       The House recedes with an amendment to authorize such sums 
     as may be necessary for fiscal year 2009 and each of the five 
     succeeding fiscal years.
     Section 806. Teach for America
       The Senate amendment and the House bill authorize the 
     Secretary to award a grant to Teach For America, Inc. to 
     implement and expand its program of recruiting, selecting, 
     training, and supporting new teachers; and to study the 
     program's effectiveness.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with the following amendments.
       The Senate amendment uses the term achievement gains, while 
     the House bill uses the term student learning gains.
       The House recedes with an amendment to use the term student 
     achievement gains.
       The House bill requires those participating in the peer 
     review process required by the Senate amendment and House 
     bill to meet specific qualifications.
       The Senate recedes.
       The Senate amendment authorizes appropriations of such sums 
     as may be necessary for fiscal year 2008 through fiscal year 
     2013.
       The House bill authorizes $20,000,000.
       The Senate recedes.
       The Senate amendment limits the Teach For America 
     organization from using federal funds for more than twenty-
     five percent of its administrative costs.
       The House bill contains no similar provision.
       The House recedes.
     Section 807. The Patsy T. Mink fellowship program
       The Senate amendment and the House bill establish a new 
     program to award competitive grants to institutions of higher 
     education for fellowships to minorities and women seeking 
     doctoral degrees with the intent of entering the 
     professoriate.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to clarify that the 
     fellowship awards should be given to individuals from groups 
     who are underrepresented in doctoral degree programs, 
     including minorities and women.
       The Senate amendment requires that at least thirty percent 
     of funds would be reserved for institutions of higher 
     education eligible for a grant under Titles III or V.
       The House bill requires that at least fifty percent of 
     funds would be reserved for institutions of higher education 
     eligible for a grant under Titles III or V.
       The House recedes.
       The Senate amendment and the House bill establish similar 
     eligibility requirements for students to receive Mink 
     fellowships from grantee institutions of higher education. 
     The Senate amendment requires intent to pursue a career in 
     instruction at certain delineated institutions of higher 
     education; the House bill simply refers to those institutions 
     of higher education eligible to participate in Title IV 
     programs.
       The House recedes.
       The Senate amendment and the House bill requires each 
     grantee to award a minimum of fifteen fellowships with the 
     grant funds.
       The Conferees agree to this provision with an amendment to 
     reduce the minimum number of awards to ten and clarify that 
     the Secretary can use unused appropriated funds to make a 
     grant award to a grantee that would result in less than ten 
     fellowships being awarded.
       The Conferees intend that the Patsy Mink Fellowship Program 
     grants will support a minimum of ten fellowships per grant. 
     The goal of this minimum number of fellowships is to enable 
     cohorts of underrepresented individuals to move through 
     graduate education together and increase the likelihood that 
     individuals will complete their education and enter the 
     professoriate. The Conferees recognize that appropriated 
     funds may not always be adequate to ensure that each grant 
     could support this minimum number. In such situations, the 
     Conferees intend that the Secretary award the maximum number 
     of grants that would support the minimum fellowship 
     requirement but would have the flexibility to award a single 
     grant using remaining funds which would not be required to 
     meet the minimum fellowship requirement. The Secretary may 
     not award multiple grants, in any single grant cycle, that do 
     not meet the minimum fellowship requirement.
       The Senate amendment includes provisions prohibiting any 
     requirement for preferential treatment in hiring for Mink 
     fellows.
       The House bill contains no similar provision.
       The House recedes.
     Section 808. Improving college enrollment by secondary 
         schools
       The Senate amendment and the House bill establish a new 
     program in which the Secretary must contract with a non-
     profit organization to conduct a needs assessment and provide 
     comprehensive services to urban school districts and rural 
     states in order to improve college-going rates of 
     participating schools.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with the following amendment.
       The Senate amendment directs the Secretary to contract with 
     one non-profit organization to carry out the program.
       The House bill requires the Secretary to award a grant to a 
     nonprofit organization to carry out the program.
       The Senate recedes.
     Section 811-818. Early childhood education professional 
         development and career task force
       The Senate amendment and the House bill include a program 
     for early childhood development professional development.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with the following amendments.
       The Senate amendment and the House bill include a 
     definition of an ``early childhood education program.'' The 
     House bill's definition includes a program authorized under 
     Section 619 or Part C of IDEA.
       The Senate recedes.
       The Senate amendment provides for a five year grant award 
     period. The House bill provides for a three year grant award 
     period.
       The House recedes.
       The Senate amendment and the House bill require the 
     development of a State Task Force. The House bill specifies 
     that a representative from the state educational agency and 
     the State Head Start collaboration director participate in 
     the State Task Force. The House bill includes language 
     stating that nothing precludes the State from designating a 
     pre-existing entity to serve as the State Task Force required 
     under this program. The Senate amendment requires a state 
     representative serve on the Task Force, but does not require 
     that person to be from the state educational agency.
       The Senate recedes.
       The Senate amendment and the House bill include similar 
     provisions for ``State Taskforce Activities'', except, the 
     House bill specifies that the survey, administered by the 
     Task Force, should collect information disaggregated by 
     specialized knowledge in the education of children with 
     limited English proficiency, in addition to the areas 
     included in the Senate amendment.
       The Senate recedes with an amendment to also require the 
     collection of information regarding children with 
     disabilities.
       The Senate amendment and the House bill require the State 
     Task Force to develop a plan for a comprehensive professional 
     development and career system for individuals working in 
     early childhood education programs and specify what must be 
     included in the plan.
       The Conferees adopt this provision with an amendment to 
     clarify that the plans may, rather than shall, include 
     certain contents.
     Section 819. Improving science, technology, engineering and 
         mathematics education with a focus on Alaska Native and 
         Native Hawaiian students
       The Senate amendment and the House bill authorize the 
     Secretary to award competitive grants to partnerships to 
     develop or expand STEM programs and academic support

[[Page 17256]]

     services and internships for STEM students, with a focus on 
     Alaska Native and Native Hawaiian students.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House with the following amendment.
       The Senate amendment includes a definition of institution 
     of higher education.
       The House bill contains no similar provision.
       The House recedes.
       The Senate amendment includes authorizing language for such 
     sums as necessary to carry out this Part for fiscal year 2008 
     and five succeeding years.
       The House bill contains no similar provision.
       The House recedes with amendment to strike 2008 and replace 
     with 2009.
     Section 820. Pilot programs to increase college persistence 
         and success
       The Senate amendment authorizes the Secretary to award 
     competitive grants to institutions of higher education for 
     scholarships ($2,000 per year for two years) and counseling 
     services for low-income students with dependents. Scholarship 
     funds are paid upon completion of specified academic 
     milestones. The program is to be evaluated with a random 
     assignment study design. The Senate amendment authorizes such 
     sums as may be necessary for fiscal year 2008 through fiscal 
     year 2013.
       The House bill contains the Student Success Grants, which 
     authorizes the Secretary to award competitive grants to 
     eligible institutions of higher education to help low-income 
     students persist and complete postsecondary education and 
     training programs through coaching programs. In addition to 
     supportive services, institutions of higher education would 
     provide grants to eligible students for $1,500 per student, 
     per year, for five years, with a twenty-five percent non-
     federal matching requirement.
       The Senate and the House recede with an amendment to merge 
     the two programs.
     Section 821. Student safety and campus emergency management
       The Senate amendment and the House bill create a new 
     student safety and campus emergency grant program.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with the following amendments.
       The House bill adds one additional authorized activity that 
     allows funds to be used for the acquisition and installation 
     of access control, video surveillance, intrusion detection, 
     and perimeter security technologies.
       The Senate recedes.
       The Conferees intend that the authorized emergency 
     communications systems to include multiple technologies, 
     including those currently provided over personal computers, 
     personal digital assistants, message boards, and speaker-
     sirens, such as mass notification systems using 
     ``intelligible voice'' messaging. The Conferees are aware 
     that the Department of Defense and other entities use three 
     forms of mass notification systems for interior and exterior 
     emergency communications. These combinations of technologies 
     are important for emergency communications to reassure that 
     there are multiple paths for message delivery. This will 
     allow for messages with intelligible voice messaging over 
     remote speaker-sirens and personal computing devices to 
     notify personnel inside and outside in large open area with 
     real-time information in an endangered areas prior, during, 
     and after the emergency.
     Section 822. Model emergency response policies, procedures, 
         and practices
       The Senate amendment provides joint authority to the 
     Secretary, Attorney General, and Secretary of Homeland 
     Security to provide technical assistance to institutions of 
     higher education on model emergency response issues and to 
     disseminate relevant information.
       The House bill requires the Secretary of Education, in 
     consultation with the Attorney General and Secretary of 
     Homeland Security, to provide these technical assistance and 
     dissemination services.
       The Senate recedes with an amendment to clarify that the 
     Secretary shall continue the efforts that are already 
     underway in working with the Attorney General and Secretary 
     of Homeland Security.
     Section 823. Preparation for future disasters plan by the 
         Secretary
       The House bill requires the Secretary to develop and 
     maintain a disaster relief plan that addresses the needs of 
     institutions of higher education in the event of a natural or 
     man-made disaster that is declared a major disaster or 
     emergency by the President. The House bill requires the 
     Secretary to submit the disaster plan and any revisions to 
     the plan to the authorizing Committees.
       The Senate amendment contains no such provision.
       The Senate recedes with an amendment to ensure that the 
     Secretary works in coordination with the Secretary of 
     Homeland Security and other appropriate agencies and to 
     strike the requirement that the Secretary submit the plans to 
     the authorizing Committees.
       The Conferees remain interested in the progress made by the 
     Secretary of Education, along with other agencies, in 
     developing plans to ensure that the federal government is 
     ready to assist institutions of higher education, their 
     employees and their students in the event of another natural 
     or man-made disaster. The Conferees would appreciate a 
     briefing on the plans as they are developed.
     Section 824. Education disaster and emergency relief loan 
         program
       The House bill establishes a new education disaster and 
     emergency relief loan program for institutions of higher 
     education for direct or indirect losses incurred as a result 
     of a federally declared major disaster or emergency.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to limit the uses of 
     funds.
       The Conferees remain interested in the progress made by the 
     Secretary of Education, along with other agencies, in 
     developing plans to ensure that the federal government is 
     ready to assist institutions of higher education, their 
     employees and their students in the event of another natural 
     or man-made disaster. The Conferees intend for Congress, upon 
     its request, to be kept apprised of such plans as they are 
     developed.
       The Conferees note the devastating effect that hurricanes 
     Katrina and Rita had on the universities and colleges located 
     in the Gulf region, displacing 83,821 students and resulting 
     in the closure, for the first time, of eleven colleges and 
     universities in New Orleans for a full semester and ten more 
     in Louisiana, Mississippi, Texas, and Florida for an extended 
     period of time. The Conferees are concerned that nearly three 
     years after Katrina and Rita these colleges and universities 
     are still struggling to recover. In particular, colleges and 
     universities are suffering with student enrollments, faculty 
     hiring and retention, as well as recovering financially 
     overall from the damages to the schools. In terms of faculty 
     and staff, it is important to note that salaries and benefits 
     are paid during a disaster even as enrollments drop. The 
     latest statistics reveal the challenges faced by these 
     institutions:
       Enrollment:
       Pre-hurricanes: More than 70,000 students
       Spring 2008: Less than 50,000
       Faculty:
       Pre-hurricanes: Nearly 11,000
       Spring 2008: Approximately 8,000
       Damages & Recovery
       Damages (Revenue Losses, Physical Damages): Approximately 
     $1.254 billion
       Recovery (Insurance & FEMA): Approximately $400 million
       In developing the disaster loan program, the Conferees 
     intend for the Secretary to consider, as appropriate, the 
     development of applicable rates of interest, credit reviews, 
     escrow accounts, and provision that loans shall be fairly 
     allocated among as many eligible institutions as possible, 
     consistent with making loans of amounts that will allow for 
     needed construction, replacement, renovation and operations 
     resulting from a major disaster or emergency.
     Section 825-826. Guidance on mental health disclosures for 
         student safety
       The House bill requires the Secretary, not later than 
     ninety days after the enactment of this Act, to provide 
     guidance to clarify the role of institutions of higher 
     education with respect to the disclosure of education records 
     in situations where a student poses a significant risk of 
     harm to himself/herself or others. This guidance must also 
     state that institutions of higher education acting in ``good 
     faith'' with respect to the disclosure of education records 
     in accordance with the requirements of this Act and Family 
     Educational Rights and Privacy Act of 1974 shall not be 
     liable for that disclosure.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike ninety and 
     replace with 180.
     Section 830. Incentives and rewards for low tuition
       The House bill authorizes the Secretary to award grants for 
     low tuition to institutions of higher education for academic 
     year 2008-2009 and any succeeding academic year whose 
     percentage increase in annual net tuition is equal to or less 
     than the percentage change in the relevant Postsecondary 
     Education Price Index (PEPI) for such academic year. The 
     Secretary may also award grants to public institutions of 
     higher education that have a net tuition that is in the 
     lowest quartile of comparable institutions of higher 
     education or have a tuition increase of less than $500 for a 
     full-time undergraduate student.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 831-833. Cooperative education
       The House bill awards grants to institutions of higher 
     education or combinations of institutions of higher education 
     to encourage them to develop and make available work 
     experiences for their students to prepare them for future 
     careers and enable students to support themselves financially 
     while in school.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 834-835. Demonstration and innovation projects; 
         training and resource centers; and research
       The House bill authorizes the Secretary to make grants or 
     enter into contracts for demonstration programs, training and 
     resource

[[Page 17257]]

     centers, and research related to cooperative education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 841. College partnership grants authorized
       The House bill establishes a grant program for eligible 
     partnerships of institutions of higher education to support 
     the development and implementation of articulation 
     agreements. An eligible partnership must include at least two 
     institutions of higher education or a system of institutions 
     of higher education.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike the 
     requirement that the Secretary prescribe regulations for the 
     implementation of this program.
     Section 842. Grants to create bridges from jobs to careers
       The House bill establishes a new program that authorizes 
     the Secretary to award competitive grants to institutions of 
     higher education to create workforce bridge programs from 
     developmental coursework to occupational certificate 
     programs. Grants offer a priority for institutions of higher 
     education with more than half of students enrolling in 
     developmental coursework.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to strike part of the 
     evaluation.
       The Conferees encourage the Secretary, in carrying out the 
     evaluation of the impact of the programs funded under this 
     program, to work with private foundations, and other 
     providers of funds, to allow for the use of a random 
     assignment evaluation in at least one of the demonstration 
     sites.
     Section 861-870. Rural development grants for rural colleges 
         and universities
       The House bill authorizes the Secretary to award 
     competitive grants to rural institutions of higher education 
     in partnership with rural local education agencies, rural 
     educational service agencies, regional employers, or non-
     profit organizations in order to support the following: 
     increasing college enrollment rates among graduates of rural 
     high schools and nontraditional students at rural 
     institutions of higher education; related economic 
     development activities; and increasing student participation 
     in academic programs leading to careers of a high-need in 
     rural areas. Grants are between $200,000 and $500,000 per 
     year for three years.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment.
       The Conferees intend that the term 'rural-serving 
     institution' encompasses an institution of higher education, 
     including its regional and satellite campuses, that primarily 
     serves a rural area. Further, a 'regional employer' includes 
     an employer located in the rural area, regardless of the 
     location of the employer's headquarters.
     Section 871. Campus-based digital theft prevention
       The House bill authorized the Secretary to award grants to 
     institutions of higher education to develop or improve 
     programs that are designed to reduce illegal downloading on 
     campus.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to move the program 
     from Title IV to Title VIII.
     Section 872. Program to promote training and job placement of 
         realtime writers
       The House bill authorizes the Secretary of Commerce to 
     award competitive grants to institutions of higher education 
     for training and placing students in realtime writing jobs. 
     Grants may not exceed $1,500,000 over two years. Scholarship 
     amounts for training are to be determined according to Title 
     IV Part F need analysis.
       The Senate amendment contains no similar provision.
       The Senate recedes with amendments to clarify what 
     constitutes an eligible entity, to increase the duration of 
     the grant from two years to five years, to clarify when the 
     Secretary can waive the employment requirement for 
     individuals who receive fellowships under this program, and 
     to clarify the evaluation required under the program.
     Section 873. Model programs for centers of excellence for 
         veteran student success
       The House bill authorizes the Secretary to award 
     competitive grants to encourage model programs to support 
     veteran student success in postsecondary education.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 881. University sustainability programs
       The House bill authorizes the Secretary to award 
     competitive grants to institutions of higher education and 
     partnerships to design and implement sustainability 
     practices. The House bill requires the Secretary to convene a 
     summit on sustainability in higher education not later than 
     September 30, 2008.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to modify the uses of 
     funds in the grant program and to move the Sustainability 
     Summit to Title XI and strike 2008 and replace with 2010 for 
     the date by which the Secretary must convene the Summit.
     Section 891. Modeling and simulation programs
       The House bill authorizes the Secretary to award 
     competitive grants to institutions of higher education to 
     create and enhance modeling and simulation programs. Grants 
     have twenty-five percent by non-federal source matching 
     requirement. The House bill requires the Secretary to 
     establish a task force to raise awareness of and define the 
     study of modeling and simulation.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 892. Path to success
       The House bill authorizes the Secretary to award 
     competitive grants to community colleges in partnership with 
     juvenile justice systems to provide education and related 
     services to eligible youth in areas with gang activity.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to modify the uses of 
     funds.
     Section 893. School of veterinary medicine competitive grant 
         program
       The Senate amendment authorizes the Secretary of Health and 
     Human Services to award competitive grants to veterinary 
     schools or residency programs for veterinarians to increase 
     the number of veterinarians in the workforce.
       The House bill contains no similar provision.
       The House recedes.
     Section 894. Early Federal pell grant commitment 
         demonstration program
       The Senate amendment authorizes the Secretary to establish 
     an early federal Pell Commitment Demonstration Program and 
     award grants to four state educational agencies to pay the 
     administrative expenses for program participation. The 
     program would provide 8th grade students who are eligible for 
     free or reduced price lunch with a commitment to receive a 
     Pell Grant during their first year of undergraduate study, 
     provided the student applies for federal financial aid during 
     the student's senior year of high school. Each state would 
     identify two cohorts of 8th grade students to participate in 
     the demonstration program. The two cohorts of students, which 
     shall consist of (1) one cohort of 8th grade students who 
     begin the participation in academic year 2008-2009; and (2) 
     one cohort of 8th grade students who begin the participation 
     in academic year 2009-2010. Each cohort of students shall 
     consist of not more than 10,000 8th grade students who 
     qualify for a free or reduced price meal.
       The House bill contains no similar provision.
       The House recedes with an amendment to clarify who can 
     participate in the program.
     Section 895. Henry Kuualoha Guigni Kupuna Memorial Archives
       The Senate amendment authorizes the Secretary to award a 
     grant to the University of Hawaii Academy for Creative Media 
     for the establishment, maintenance, and periodic 
     modernization of the memorial archives.
       The House bill contains no similar provision.
       The House recedes.
     Section 802. National Center for Research in Advanced 
         Information and Digital Technologies
       The House bill includes language to authorize the 
     establishment of a nonprofit corporation, National Center for 
     Learning Science and Technology (referred to in this Act as 
     the ``Center''). The Center shall have a trust fund that is 
     established within the Treasury. Trust funds shall be used to 
     support research that is in the public interest but that is 
     unlikely to be undertaken entirely with private funds for 
     activities such as precompetitive and applied research 
     development and demonstrations, and assessments of prototypes 
     of innovative digital learning and information technologies 
     as well as the components and tools needed to create them. A 
     board of directors of the Center shall be established to 
     oversee the administration of the Center. The initial Board 
     shall consist of nine members to be appointed by the 
     Secretary from a list of recommendations received from the 
     House of Representatives and the Senate.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify the purpose 
     to ``support a comprehensive research and development program 
     to harness the increasing capacity of advanced information 
     and digital technologies to improve all levels of learning 
     and education, formal and informal, to provide Americans the 
     knowledge and skills needed to compete in the global 
     economy.''
       The National Center for Research in Advanced Information 
     and Digital Technologies is established as a nonprofit 
     corporation to support a comprehensive research and 
     development program to harness the increasing capacity of 
     advanced information and digital technologies to improve all 
     levels of learning and education, formal and informal, to 
     provide Americans the knowledge and skills needed to compete 
     in the global economy. The Center will carry this out through 
     awarding grants funded by a combination of

[[Page 17258]]

     federal and private funds. Grants can be made to colleges and 
     universities, museums, libraries, nonprofit organizations, 
     public institutions with or without for-profit partners, for-
     profit organizations, and consortia of any such entities, 
     including public broadcasting entities. It is the intention 
     of the Conferees that in order to avoid duplication of 
     efforts the Center coordinates its efforts with current 
     activities of the Department of Education, the Department of 
     Defense, the National Science Foundation, and other federal 
     agencies. It is also the Conferees intention that the results 
     of the work of the Center be available in the public domain, 
     except in rare circumstances which shall require a unanimous 
     vote of the board and a public report of the exception.
     Section 803. Establishment of Pilot Program for Course 
         Material Rental
       The House bill authorizes the Secretary to make grants to 
     no more than ten institutions of higher education to develop 
     pilot programs that would allow students to rent textbooks.
       The Senate amendment contains no similar provision.
       The Senate recedes.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986

     Section 901. Laurent Clerc National Deaf Education Center
       The Senate amendment and the House bill authorize the 
     Laurent Clerc Center. The House bill clarifies that the 
     results required to be reported under the Senate amendment 
     and the House bill shall only be reported if they yield 
     statistically meaningful information that is not personally 
     identifiable.
       The Senate recedes.
     Section 902. Agreement with Gallaudet University
       The Senate amendment and the House bill are identical with 
     respect to these provisions.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 903. Agreement for the National Technical Institute 
         for the Deaf
       The Senate amendment amends this section by specifying that 
     the institution of higher education operating the National 
     Technical Institution for the Deaf shall be the Rochester 
     Institute of Technology in Rochester, New York.
       The House bill contains no similar provision.
       The Senate recedes with an amendment to strike the language 
     that specifies if either Rochester Institute of Technology or 
     the Secretary terminate the agreement, the Secretary shall 
     consider proposals from other institutions of higher 
     education.
       The Senate amendment and the House bill update the title of 
     the Senate Health, Education, Labor and Pensions Committee, 
     and modify the references to the Davis-Bacon Act.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 904. Cultural experiences grants
       The Senate amendment establishes the cultural experiences 
     grant program.
       The House bill contains no similar provision.
       The House recedes.
     Section 905. Audit
       The Senate amendment and the House bill make the same 
     technical amendments to the audit section by inserting the 
     appropriate section and subsection numbers and updating the 
     appropriate Senate and House Committee names.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.
     Section 906. Reports
       The Senate amendment and the House bill make similar 
     technical amendments to the reports section including 
     updating the appropriate Senate Committee name, striking the 
     word ``preparatory'', amending language regarding the 
     graduation or completion date, and adding a reference to 
     National Technical Institute for the Deaf programs and 
     activities.
       The Senate recedes.
     Section 907. Monitoring, evaluation, and reporting
       The Senate amendment and the House bill amend the annual 
     report to Congress to be an annual transmission from the 
     Secretary and update the fiscal years to 2008 through 2013.
       The House bill strikes the word ``preparatory.''
       The Senate recedes with an amendment to update the fiscal 
     years to 2009 through 2014.
     Section 908. Liaison for educational programs
       The Senate amendment and the House bill amend the required 
     timeline in the Education of the Deaf Act of 1986 by striking 
     ``not later than thirty days after the enactment of this 
     Act.''
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 909. Federal endowment programs for Gallaudet 
         University and the National Technical Institute for the 
         Deaf
       The Senate amendment and the House bill update the fiscal 
     years to 2008 through 2013.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House with an amendment to update the fiscal 
     years to 2009 through 2014.
     Section 910. Oversight and Effect of Agreements.
       The Senate amendment and the House bill update the 
     appropriate Senate and House Committee names.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 911. International Students
       The Senate amendment and the House bill have similar 
     provisions with respect to international students 
     participating in distance learning. The House bill clarifies 
     that students who are not enrolled in a degree program at the 
     University or the NTID shall not be counted as international 
     students for the purposes of the cap on international 
     students.
       The Senate recedes.
       The House bill clarifies that tuition surcharges should 
     remain consistent for international students from developing 
     countries despite changes to the developing country status of 
     the home country of such students during their enrollment 
     period.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The Senate amendment defines ``developing country'' as a 
     country with a per-capita income of not more than $4,825 
     measured in 1999 U.S. dollars.
       The House bill defines ``developing country'' as a country 
     with a per-capita income of not more than $5,345 measured in 
     2005 U.S. dollars.
       The Senate recedes.
     Section 912. Research priorities
       The Senate amendment and the House bill update the 
     appropriate Senate and House Committee names.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.
     Section 913. National study on the education of the deaf
       The House bill requires a national study of the education 
     of the deaf.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 914. Authorization of appropriations
       The Senate amendment and the House bill update the fiscal 
     years to 2008 through 2013.
       The Senate and the House recede with an amendment to update 
     the fiscal years to 2009 through 2014.

              Part B--United States Institute of Peace Act

     Section 921. United States Institute of Peace Act
       The Senate amendment amends various provisions of the U.S. 
     Institute of Peace Act.
       The House bill contains no similar provisions.
       The House recedes with an amendment to provide that the 
     amendments to this section shall take effect as if they were 
     enacted on June 1, 2007.

 Part C--The Higher Education Amendments of 1998; The Higher Education 
                           Amendments of 1992

     Section 931. Repeals
       The Senate repeals provisions of the Higher Education 
     Amendments of 1998, including Part A--Study of Market 
     Mechanisms in the Federal Student Loan programs; Study of the 
     Feasibility of Alternative Financial Instruments for 
     Determining Lender Yields; Student Related Debt Study; Study 
     of Transfer of Credits; Study of Opportunities for 
     Participation in Athletics Programs; and the Study of the 
     Effectiveness of Cohort Default Rates for Institutions of 
     Higher Education with few Student Loan Borrowers; Section 
     861--Education Welfare Study; Part C--Community scholarship 
     mobilization; Part F--Improving United States understanding 
     of science, engineering, and technology in East Asia; and 
     Part J--Web-based education commission of the Higher 
     Education Amendments of 1998; and Section 863--Sense of 
     Congress Regarding Good Character.
       The House bill repeals provisions of Part A of the Higher 
     Education Amendments of 1998, including Section 801--Study of 
     Market Mechanisms in the Federal Student Loan programs; 
     Section 802--Study of the Feasibility of Alternative 
     Financial Instruments for Determining Lender Yields; Part C--
     Community scholarship mobilization; Part F--Improving United 
     States understanding of science, engineering, and technology 
     in East Asia; and Part J--Web-based education commission of 
     the Higher Education Amendments of 1998; and Section 803--
     Student Related Debt Study.
       The House recedes.
     Section 932. Grants to states for workplace and community 
         transition training for incarcerated individuals.
       The Senate amendment and the House bill reauthorize grants 
     to states for workforce and community transition training for 
     incarcerated individuals. The Conferees adopt the provision 
     as proposed by both the Senate and the House with the 
     following amendments.
       The Senate amendment and the House bill have different 
     titles for the program.
       The Senate recedes.
       The Senate amendment defines ``youth offender'' as a male 
     or female offender under the age of thirty-five, who is 
     incarcerated in a State prison.

[[Page 17259]]

       The House bill defines ``incarcerated individual'' as a 
     male or female offender who is incarcerated in a State 
     prison.
       The Senate recedes with an amendment to define 
     ``incarcerated individual'' as a male or female offender 
     under the age of thirty-five, who is incarcerated in a State 
     prison.
       The Senate amendment directs the Secretary to establish 
     programs designed to assist and encourage youth offenders to 
     acquire functional literacy, live and job skills. The Senate 
     amendment includes as authorized activities: the pursuit of a 
     postsecondary education certificate or an associate or 
     bachelor's degree while in prison; and employment counseling 
     and other related services that may end not later than one 
     year after release.
       The House bill directs the Secretary to establish programs 
     to assist and encourage incarcerated individuals to acquire 
     educational and job skills. The House bill includes as 
     authorized activities: coursework to prepare students to take 
     college level courses; the pursuit of a postsecondary 
     education certificate or an associate or bachelor's degree 
     while in prison; and employment counseling and other related 
     services that may end not later than one year after release.
       The Senate and the House recede with an amendment to direct 
     the Secretary to establish programs to assist and encourage 
     incarcerated individuals who have obtained a secondary school 
     diploma or its recognized equivalent to acquire educational 
     and job skills. Authorized activities include: coursework to 
     prepare students to pursue a postsecondary education 
     certificate or an associate or bachelor's degree while in 
     prison; pursuit of a postsecondary education certificate or 
     an associate or bachelor's degree while in prison; and 
     employment counseling and other related services that may end 
     not later than two years after release.
       The Senate amendment requires that an eligible State 
     correctional education agency shall include in its 
     application a list of the accredited institutions that will 
     provide the postsecondary educational services.
       The House bill requires that an eligible State correctional 
     education agency shall include in its application a list of 
     the accredited institutions with campuses established outside 
     the prison facility that will provide the postsecondary 
     educational services.
       The House recedes.
       The Senate amendment and the House bill require an eligible 
     State correctional education agency to include in its 
     application a description of how the proposed program will be 
     integrated with existing State correctional education 
     programs and vocational training.
       The Conferees adopt the provision with an amendment to 
     change the reference to ``vocational'' to ``career and 
     technical''.
       The Senate amendment and the House bill require a State 
     correctional education agency receiving a grant under this to 
     submit an annual report to the Secretary.
       The House bill requires this report includes a description 
     of how the funds provided are being allocated among 
     postsecondary preparatory education, postsecondary academic, 
     and vocational education programs.
       The Senate and House recede with an amendment to change the 
     reference to ``vocational'' to ``career and technical'' and 
     to include in the report a description of the service 
     delivery methods being used for each course offering.
       The Senate amendment includes a section on student 
     eligibility that defines ``eligible youth offender'' as an 
     individual who is eligible to be released from State prison 
     within five years; who is thirty-five years of age or 
     younger; and has not been convicted of murder, a crime 
     against a minor, or a sexually violent crime.
       The House bill includes no similar provision.
       The House recedes with an amendment to clarify that an 
     eligible incarcerated individual is an individual who is 
     eligible for release with seven years; is thirty-five years 
     of age or younger; and has not been convicted of murder, a 
     crime against a minor, or a sexually violent crime.
       Both the Senate amendment and the House bill include 
     similar ``Length of Participation'' sections.
       The House recedes with an amendment to clarify that 
     grantees may provide educational and related services to 
     participating individuals for not more than seven years, up 
     to two years of which may be devoted to study in a graduate 
     education degree program or to coursework to prepare such 
     individuals to take college level courses.
       The Senate amendment allocates funds to States based on the 
     total number of eligible students.
       The House bill allocates funds to States based on the total 
     number of incarcerated individuals in the State in relation 
     to the total number of incarcerated individuals in all 
     States.
       The House recedes.
       The Senate amendment authorizes such sums as may be 
     necessary for fiscal year 2008 through fiscal year 2013.
       The House bill does the same except for fiscal year 2009 
     and the four succeeding fiscal years.
       The House recedes with an amendment to strike fiscal year 
     2008 through fiscal year 2013 and replace with fiscal year 
     2009 through fiscal year 2014.
       Conferees recognize the value and contribution of the 
     Grants to States for Workforce and Community Transition 
     Training for Incarcerated Individuals. The conferees intend 
     for the Secretary to implement improvements that would 
     provide greater flexibility to State correctional education 
     agencies to identify and serve individual inmates who are 
     best able to benefit from postsecondary education, including 
     expanding the eligibility criteria for participation to 
     include individuals who are age thirty-five or younger and 
     who are eligible for release within seven years. Conferees 
     also intend for the Secretary to expand and strengthen State 
     plan and reporting requirements related to performance 
     monitoring and measuring outcomes, guiding States to develop 
     and implement performance monitoring and evaluation plans 
     that reflect results-based program management. Conferees 
     understand that these provisions are to support the 
     longitudinal study of post secondary correctional education 
     in Section 1112, ``Study of Correctional Postsecondary 
     Education.''
     Section 933. Underground Railroad Educational and Cultural 
         Program
       The Senate amendment provides such sums as necessary for 
     fiscal year 2008 through fiscal year 2013.
       The House bill provides $3,000,000 for fiscal year 2009 and 
     each of the four succeeding fiscal years.
       The House and Senate recede with an amendment to clarify 
     that funds under the Underground Railroad Educational and 
     Cultural Program may be used to support activities that 
     include the lessons to be drawn from the history of the 
     Underground Railroad; allow activities authorized under the 
     program to be made available to elementary and secondary 
     schools, institutions of higher education, and the general 
     public; and amend the matching funds provision under the 
     program to require grantees to implement a public-private 
     partnership under the program that provides matching funds 
     from non-Federal sources in an amount equal to or greater 
     than four times the amount awarded to the grantee.
     Section 934. Olympic scholarships under the higher education 
         amendments of 1992
       The Senate amendment authorizes from fiscal year 2008 
     through fiscal year 2013.
       The House bill authorizes for fiscal year 2009 through 
     fiscal year 2013.
       The House recedes with an amendment to strike fiscal year 
     2008 through fiscal year 2013 and replace with fiscal year 
     2009 through fiscal year 2014.
     Section 935. Establishment of a deputy assistant secretary 
         for international and foreign language education
       The House bill creates a new Assistant Secretary for 
     International and Foreign Language Education. The new 
     Assistant Secretary would have responsibility for encouraging 
     and promoting the study of cultures of other countries at all 
     levels of education; carrying out the administration of all 
     Department programs on international and foreign language 
     education and research; and coordinating the Department's 
     international and foreign language education programs with 
     other departments and agencies.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to establish a Deputy 
     Assistant Secretary position under the Office of 
     Postsecondary Education in the United States Department of 
     Education.
       The Conferees note that the National Academy of Sciences 
     has recommended that the Department of Education should 
     consolidate the administration of its international education 
     and foreign language programs under an executive level 
     position reporting to the Secretary who will provide more 
     strategic direction and coordination with other federal 
     agencies and the nation's education community, with respect 
     to international education and foreign language programs. 
     While this Act does not create an Assistant Secretary and 
     Office for International and Foreign Language Instruction, 
     nothing in this Act limits the ability of a future Secretary 
     of Education to establish one. The appointed Deputy Assistant 
     Secretary required by this Act should be an individual with 
     extensive background and experience in international and 
     foreign language education, and shall have authority to 
     administer and coordinate the Department's international and 
     foreign language education programs with other departments 
     and agencies.


              Subpart 1--Tribal Colleges and Universities

     Section 941. Reauthorization of the Tribally Controlled 
         College or University Assistance Act of 1978
       The Senate amendment and the House bill contain similar 
     provisions to reauthorize the Tribally Controlled College or 
     University Assistance Act of 1978.
       The Conferees adopt the provision as proposed by both the 
     Senate and the House.


                   Subpart 2--Navajo Higher Education

     Section 945. Short title
       The Senate amendment contains a provision to cite this 
     subpart as the ``Navajo Nation Higher Education Act of 
     2006.''

[[Page 17260]]

       The House bill contains no similar provision.
       The House recedes with an amendment to change the date in 
     the Title from ``2006'' to ``2008.''
     Section 946. Reauthorization of the Navajo Community College 
         Act
       The Senate amendment and the House bill contain similar 
     provisions to reauthorize the Navajo Community College Act.
       The Conferees adopt the provisions as proposed by both the 
     Senate and the House.

       Part E--Omnibus Crime Control and Safe Streets Act of 1968

     Section 951. Short title
       The Senate provides that this Part may be cited as the 
     ``John R. Justice Prosecutors and Defenders Incentive Act of 
     2007.''
       The House bill contains no similar provision.
       The House recedes with an amendment to strike 2007 and 
     insert 2008.
     Section 952. Loan repayment for prosecutors and defenders
       The Senate amendment amends the Omnibus Crime Control and 
     Safe Streets Act of 1968 to establish a Loan Repayment for 
     Prosecutors and Public Defenders program, under which the 
     Attorney General may assume the obligation to repay up to 
     $10,000 of federal student loans per year, with a maximum of 
     $60,000, owed by full-time state and local prosecutors and 
     public defenders who agree to a service agreement of at least 
     three years.
       The House bill defines ``prosecutor'' and ``public 
     defender'' and gives priority to borrowers who have the least 
     ability to repay.
       Both the Senate and the House recede with amendments to 
     modify the definitions of ``prosecutor'' and ``public 
     defender'' by changing references to a local agency or local 
     level to be a unit of local government, exclude Parent PLUS 
     Loans from eligibility for this program, require an Inspector 
     General report not later than three years after the date of 
     enactment, and include the priority contained in the House 
     bill.
       The Senate amendment authorizes the appropriation of 
     $25,000,000 for fiscal year 2008, and such sums as may be 
     necessary for each succeeding fiscal year.
       The House bill authorizes the appropriation of $25,000,000 
     for fiscal year 2008, and each fiscal year through fiscal 
     year 2013.
       The House recedes with an amendment striking fiscal year 
     2008 and replacing with fiscal year 2009 and authorizing as 
     may be necessary for the five succeeding fiscal years.

        Part F--Institutional Loan Repayment Assistance Program

     Section 961. Institutional loan forgiveness programs
       The House bill specifies that notwithstanding any other 
     provision of law a public or private institution of higher 
     education may provide financial assistance to current and 
     former students who are officers or employees of a branch or 
     independent agency of the U.S. government or of the District 
     of Columbia, for the purpose of repaying a student loan or 
     providing forbearance, provided that such assistance is 
     provided in accordance with a published written policy of the 
     institution of higher education pertaining to the provision 
     of such assistance for current and former students who 
     perform public service.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to change the title of 
     the section to ``Institutional Loan Repayment Assistance 
     Programs'' and to clarify that a published policy regarding 
     the loan forgiveness must have been in place at the time the 
     beneficiary of such assistance was enrolled in the 
     institution of higher education that provides the subsequent 
     loan forgiveness. The Conferees are concerned that the high 
     cost of college and corresponding increasing debt students 
     are taking on to pay for postsecondary education is making it 
     increasingly difficult for many graduates to enter public 
     service. The Conferees commend institutions of higher 
     education that have chosen to use their own resources to 
     address this challenge by developing loan repayment 
     assistance programs to encourage their students and graduates 
     to enter public service jobs. The Conferees are aware of 
     recent concern on the part of some universities that these 
     programs may run afoul of federal law, and would like to 
     ensure that universities that offer such loan repayment or 
     assistance programs, implemented in accordance with the 
     statutory language, and their students and graduates that 
     receive assistance through such programs, do not face 
     liability for such actions under 18 U.S.C. 209 or any other 
     provision of federal law, regulation or practice, including 
     ``gift bans'' that apply to federal government employees.

 Part G--Minority Serving Institutions Digital and Wireless Technology 
                          Opportunity Program

     Section 971. Minority Serving Institution Digital and 
         Wireless Technology Opportunity Program
       The Senate amendment and the House bill authorizes a 
     competitive grant program, with a matching requirement, to 
     Minority Serving Institutions to strengthen their ability to 
     provide capacity for instruction in digital and wireless 
     technologies and to increase the national investment in 
     telecommunications and technology infrastructure at Minority 
     Serving Institutions. The Senate amendment administers the 
     program through the Department of Education and the House 
     bill administers the program through the Department of 
     Commerce.
       The Senate recedes with an amendment to authorize such sums 
     as may be necessary for the program.
     Section 972. Authorization of appropriations
       The Senate amendment and the House bill authorize such sums 
     as many be necessary to carry out the Minority Serving 
     Institutions Digital and Wireless Technology Opportunity 
     Program. The Senate amendment authorizes appropriations to 
     the Secretary of Education to administer the program and the 
     House bill provides appropriations to the Secretary of 
     Commerce to administer the program.
       The Senate recedes.

               TITLE X--PRIVATE STUDENT LOAN IMPROVEMENT

     Section 1001. Short title
       The House bill includes a Title X, referred to as the 
     ``Private Student Loan Transparency and Improvement Act of 
     2008.''
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 1002. Regulations
       The House bill requires the Board of Governors of the 
     Federal Reserve System (hereinafter referred to as the Board) 
     to issue final regulations to implement these amendments to 
     the Truth in Lending Act (TILA) no later than 180 days after 
     the date of enactment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to change the time by 
     which the Board is required to issue regulations from 180 
     days to 365 days, and for those regulations to be effective 
     six months from issuance.
     Section 1003. Effective dates
       The House bill establishes an effective date for Title X of 
     180 days after regulations are issued by the Secretary of the 
     Treasury in final form.
       The Senate amendment includes no similar provision.
       The Senate recedes with an amendment to change the 
     effective date of the provisions of the Title to be the date 
     of enactment of the Act, except for paragraphs 1, 2, 3, 5, 
     and 6 of Section 128(e) and Section 140(c) of the TILA, as 
     added by this Title, for which the effective date is the 
     earlier of the date on which regulations are issued or 
     eighteen months after the date of enactment of this Act.

SUBTITLE A--PREVENTING UNFAIR AND DECEPTIVE PRIVATE EDUCATIONAL LENDING 
            PRACTICES AND ELIMINATING CONFLICTS OF INTEREST

     Section 1011. Amendment to the Truth in Lending Act
       The House bill amends TILA by adding a new Section 140 to 
     Chapter 2 that defines ``Board,'' ``covered educational 
     institution,'' ``Federal banking agencies,'' ``institution of 
     higher education,'' ``postsecondary educational expenses,'' 
     ``private educational lender,'' and ``private education 
     loan.''
       The Senate amendment includes no similar provision.
       The Senate recedes with amendments to: substitute the 
     definition ``private educational lender;'' modify the 
     definition of ``private education loan;'' include definitions 
     for ``preferred lender arrangement,'' ``gift,'' and ``revenue 
     sharing;'' and strike the definitions of ``Board'' and 
     ``Federal banking agencies.''
       The House bill includes prohibitions on gift giving, 
     revenue sharing arrangements, co-branding, participation on 
     advisory councils, and prepayment fees and penalties for 
     covered institutions of higher education and private 
     educational lenders.
       The Senate amendment includes no similar provision.
       The Senate recedes with an amendment that substitutes the 
     provision that prohibits a covered educational institution 
     financial aid official from participating on a private 
     educational lender's advisory council with a provision that 
     prohibits certain employees of a covered educational 
     institution from receiving anything of value for service on 
     an advisory board, commission, or group established by a 
     private educational lender, with the exception of 
     reimbursements of reasonable expenses incurred by an employee 
     of such an institution. The Senate amendment also amends the 
     Higher Education Act of 1965 to require institutions of 
     higher education to annually report to the Secretary of 
     Education any reasonable expenses paid or provided by a 
     private educational lender to any employee who is employed in 
     the financial aid office of the institution, or who otherwise 
     has responsibilities with respect to education loans or other 
     financial aid of the institution, for service on a private 
     educational lender's advisory board, commission, or group. 
     The amendment also requires the Secretary of Education to 
     summarize the information received from institutions of 
     higher education and annually report the information to the 
     authorizing committees.

[[Page 17261]]

       With respect to this section's prohibition on co-branding, 
     the Conferees understand that some credit unions share the 
     names of the institutions of higher education whose 
     communities they serve. Nothing in this Section is intended 
     to prohibit a credit union whose name includes the name of a 
     covered educational institution from using its own name in 
     marketing its private education loans.
       The Conferees intend that a lender may demonstrate it is 
     not implying endorsement by the covered educational 
     institution of its private education loans by providing a 
     clear prominent and conspicuous disclaimer that the use of 
     the name, emblem, mascot, or logo of a covered educational 
     institution, or other words, pictures, or symbols readily 
     identified with a covered educational institution, in no way 
     implies endorsement by the covered educational institution of 
     the lender's private education loans and that the lender is 
     not affiliated with the covered educational institution.
       The Conferees intend that nothing in this section shall 
     prohibit states or institutions of higher education from 
     using State seals, with appropriate authorization, in the 
     marketing of state education loan products.
     Section 1012. Civil liability
       The House bill amends TILA to permit borrowers of private 
     education loans to bring an action concerning a violation of 
     specified provisions in any United States District Court, or 
     in any other court of competent jurisdiction, within one year 
     following the date on which the first payment of principal is 
     due on the loan, and provides for the award of certain 
     specified damages with respect to a violation of a borrower's 
     right of rescission.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to provide for the 
     award of damages with respect to violations of certain 
     specified disclosures and terms required by Section 128 of 
     TILA, as amended by this Act. The Senate amendment also 
     provides that a private educational lender has no civil 
     liability with respect to section 128(e)(3) of TILA, which 
     requires lenders to obtain a prospective borrower's self-
     certification of information.
     Section 1013. Clerical amendment
       The TILA table of sections is amended.
       The Senate amendment includes no similar provision.

      SUBTITLE B--IMPROVED DISCLOSURES FOR PRIVATE EDUCATION LOANS

     Section 1021. Private education loan disclosures and 
         limitations
       The House bill amends TILA by adding a new subsection (e) 
     to Section 128 that requires certain consumer disclosures at 
     application and solicitation, approval, and consummation of 
     private education loans.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify and modify 
     the required disclosures and provide additional disclosures, 
     subject to regulation by the Board.
       The House bill requires private educational lenders to 
     obtain a written acknowledgment from a consumer that the 
     consumer has read and understood the disclosures.
       The Senate amendment contains no similar provision.
       The House recedes.
       The House bill requires a private educational lender, prior 
     to issuing any funds to a borrower, to obtain from an 
     institution of higher education, such institution of higher 
     education's certification of the enrollment status of the 
     borrower, the borrower's cost of attendance, and the 
     difference between the borrower's cost of attendance and the 
     borrower's estimated financial assistance received under 
     Title IV of the Higher Education Act and other assistance 
     known to the institution of higher education.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to replace the 
     requirement that a lender obtain an institution of higher 
     education's certification of information with a requirement 
     that a lender obtain from a prospective borrower such 
     borrower's self-certification of information before a private 
     education loan may be consummated. The amendment also amends 
     the Higher Education Act of 1965 to require the Secretary of 
     Education, in consultation with the Board, to develop a 
     borrower self-certification form for the purpose of 
     satisfying the requirement that lenders obtain prospective 
     borrowers' self-certification of information prior to the 
     consummation of a private education loan. In addition, the 
     amendment includes a rule of construction to clarify that a 
     private educational lender need not perform any additional 
     duty beyond collecting a prospective borrower's completed and 
     signed self-certification form, and a rule of construction to 
     clarify that the amendment does not create a private right of 
     action against an institution of higher education with 
     respect to the self-certification form developed by the 
     Secretary.
       The House bill includes requirements for formatting of new 
     disclosures required by subsection (e) of TILA, as amended by 
     this Act.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment that provides for a 
     model form, to be developed by the Board, based on consumer 
     testing and in consultation with the Secretary of Education, 
     that may be used by private educational lenders for the 
     provision of required disclosures, and a requirement that 
     lenders that have preferred lender arrangements with a 
     covered educational institution must annually provide to such 
     institutions the information the Board determines to include 
     in the model form for each type of education loan the lenders 
     plan to offer to students attending the covered educational 
     institution, or to the families of such students. The Board 
     is directed to, where possible, prevent duplicative 
     disclosure requirements. Private educational lenders that 
     have preferred lender arrangements with covered institutions 
     are required to provide to the covered educational 
     institutions such information as may be required by the Board 
     as a part of the model form developed under this section.
       The House bill provides a borrower of a private education 
     loan up to thirty calendar days to accept the terms of the 
     loan, during which time the rates and terms of the loan may 
     not be changed by the private educational lender, with 
     certain exceptions.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill provides a borrower of a private education 
     loan the right to cancel a loan without penalty at anytime 
     within three business days of the date the loan is 
     consummated. Disbursement within the three business day 
     cancelation window is prohibited.
       The Senate amendment contains no similar provision.
       The Senate recedes.
       The House bill requires a private educational lender, on or 
     before the date on which a private educational lender issues 
     any funds with respect to a private education loan, to notify 
     the relevant institution of higher education of the amount of 
     the loan and the student on whose behalf the loan is made.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 1022. Application of Truth In Lending Act to all 
         private education loans
       The House bill extends the provisions of TILA to all 
     private education loans, regardless of the amount of such 
     loans.
       The Senate amendment contains no similar provision.
       The Senate recedes.

                   SUBTITLE C--COLLEGE AFFORDABILITY

     Section 1031. Community Reinvestment Act credit for low-cost 
         loans
       The House bill amends the Community Reinvestment Act to 
     require the appropriate Federal financial supervisory agency 
     to consider as a factor in assessing the financial 
     institution's record of meeting the credit needs of its 
     entire community (including low- and moderate-income 
     neighborhoods, consistent with the safe and sound operation 
     of such institution), low-cost education loans provided by 
     the financial institution to low-income borrowers.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require each 
     Federal financial supervisory agency to issue final rules to 
     implement the amendment no later than one year after the date 
     of enactment of the Act.

          SUBTITLE D--FINANCIAL LITERACY; STUDIES AND REPORTS

     Section 1041. Definitions
       The House bill defines covered educational institution, 
     private educational lender, private education loan, 
     historically Black colleges and universities, and land-grant 
     colleges and universities for purposes of this subtitle.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
     Section 1042. Coordinated education efforts
       The House bill requires the Secretary of the Treasury, in 
     coordination with the Secretary of Education, the Secretary 
     of Agriculture, and appropriate member agencies of the 
     Financial Literacy and Education Commission, to undertake 
     efforts to enhance financial literacy among students at 
     institutions of higher education. Not later than two years 
     after the date of enactment, the Financial Literacy and 
     Education Commission is required to submit a report to 
     Congress on the state of financial literacy among students at 
     institutions of higher education. The House bill also 
     requires GAO to study and report to Congress on the inclusion 
     of non-individual factors (e.g., institution of higher 
     education cohort default rates, accreditation, and graduation 
     rates) in the underwriting criteria used to determine the 
     pricing of private education loans.
       The Senate amendment contains no similar provisions.
       The Senate recedes with amendments to: define ``covered 
     educational institution,'' ``historically Black colleges and 
     universities'' and ``land-grant colleges and universities;'' 
     expand the scope of the financial literacy efforts to capture 
     both students and

[[Page 17262]]

     their families; clarify that the Secretary of the Treasury 
     shall provide, upon request, testimony before the Senate 
     Committee on Banking, Housing and Urban Affairs and the House 
     Committee on Financial Services on the report required under 
     this section; clarify that GAO shall submit its final report 
     on non-individual factors to the Senate Committee on Banking, 
     Housing, and Urban Affairs, the Senate Committee on Health, 
     Education, Labor and Pensions, the House Committee on 
     Financial Services, and the House Committee on Education and 
     Labor; and move the GAO report to Title XI of this Act.

                     TITLE XI--STUDIES AND REPORTS

     Section 1101. Study on foreign graduate medical schools
       The Senate amendment requires the Government Accountability 
     Office (``GAO'') to complete a study that shall examine 
     American students receiving Federal financial aid to attend 
     graduate medical schools located outside of the United States 
     and submit a report with the conclusions of the study to 
     Congress.
       The House bill contains no such provisions.
       The House recedes.
     Section 1102. Employment of postsecondary education graduates
       The Senate amendment requires the GAO to conduct a study of 
     the information states currently have on employment of 
     students who have completed postsecondary education programs 
     and the feasibility of collecting this type of information, 
     the evaluation systems used by other industries to identify 
     successful programs, the best means of collecting this 
     information, and the best means of displaying employment 
     information.
       The House bill contains no such provision.
       The House recedes.
     Section 1103. Study on IPEDS
       The Senate amendment requires the GAO to conduct a study on 
     the time and cost burdens to institutions of higher education 
     associated with responding to Integrated Postsecondary 
     Education Data System (``IPEDS'').
       The House bill contains no similar provision.
       The House recedes with an amendment to require the GAO to 
     report on the feasibility of collecting additional data from 
     institutions of higher education for use in IPEDS, including 
     information on the percentage of enrolled undergraduate 
     students who graduate within two years (in the case of two-
     year institutions of higher education), and four, five and 
     six years (in the case of two- and four-year institutions of 
     higher education), by race and ethnic background and by 
     income categories.
       The House bill requires the Commissioner of Education 
     Statistics to redesign IPEDS as needed to collect the 
     additional data required in this subsection and to continue 
     to improve the usefulness and timeliness of IPEDS.
       The Senate amendment contains no similar provision.
       The House recedes.
     Section 1104. Report and study on articulation agreements
       The House bill requires the Secretary to conduct a study of 
     articulation agreements at state-based college and university 
     systems and at other institutions of higher education.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
     Section 1105. Report on proprietary institutions of higher 
         education
       The Senate and the House agree to require the GAO to 
     conduct an analysis of proprietary institutions of higher 
     education subject to the 90/10 rule
       Section 1106. Analysis of Federal regulations on 
     institutions of higher education.
       The House bill requires the Secretary to enter into an 
     agreement with the National Research Council of the National 
     Academies to conduct a study to ascertain the amount and 
     scope of all Federal regulations and reporting requirements 
     with which institutions of higher education must comply.
       The Senate amendment contains no similar provisions.
       The Senate recedes.
     Section 1107. Independent evaluation of distance education 
         programs
       The House bill authorizes the Secretary to enter into an 
     agreement with the National Academy of Sciences to conduct an 
     independent evaluation of the quality of distance education 
     programs.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify specific 
     areas of study and push out the deadlines for the interim and 
     final reports.
     Section 1108. Review of costs and benefits of environmental, 
         health and safety standards
       The House bill authorizes the Secretary to enter into an 
     agreement with the National Research Council of the National 
     Academy of Sciences to conduct a national study to determine 
     the costs and viability of developing and implementing 
     standards in environmental, health and safety areas.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 1109. Study of minority male academic achievement
       The House bill authorizes the Secretary to conduct a 
     national study of underrepresented minority males, 
     particularly African American and Hispanic American males, 
     completing high school, and entering and graduating from 
     colleges and universities. The study shall focus on high 
     school completion and preparation for college, success on the 
     SAT and ACT, and minority male access to college, including 
     the financing of college, and college persistence and 
     graduation. A report shall be presented to the Authorizing 
     Committees no later than four years following enactment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to include other 
     racial and ethnic groups in the study.
     Section 1110. Study on bias in standardized testing
       The House bill requires the GAO to conduct a study to 
     identify the presence of race, ethnicity, and gender biases 
     in standardized tests. An interim report shall be presented 
     to the Authorizing Committees no later than one year 
     following enactment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to carry out the study 
     through the Board on Testing and Assessment.
       The Conferees intend that the study be consistent with 
     protocols utilized by the National Academy of Sciences, which 
     includes provisions for public access for data collected and 
     used to conduct the study.
     Section 1111. Endowment report
       The House bill requires the Secretary to conduct a study on 
     the amount, uses and public purposes of endowments at 
     institutions of higher education. A report shall be presented 
     to the Authorizing Committees no later than one year 
     following enactment.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to have the GAO 
     conduct the study and provide additional detail on areas to 
     be studied.
     Section 1112. Study on correctional postsecondary education
       The House bill requires the Secretary to conduct a 
     longitudinal study to assess the effects of correctional 
     postsecondary education that uses empirical assessment 
     methods, measures a range of outcomes, and examines different 
     delivery systems of postsecondary education.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the 
     Secretary of Education to consult with the Secretary of Labor 
     and the Attorney General in carrying out the study.
       The Conferees recognize that prison populations in the 
     United States continue to swell, placing financial burdens on 
     operating jurisdictions and representing lost human potential 
     among the citizenry. Given that recidivism of released 
     offenders is a key factor in prison population growth, the 
     Conferees intend for the Secretary to consult with the 
     Secretary of Labor and the Attorney General to determine the 
     benefit of postsecondary education during the period of 
     correctional confinement as a means to reduce post release 
     offending. Further, the Secretary is charged with identifying 
     and studying potential ways to deliver postsecondary 
     education within correctional environments.
     Section 1113. Study of aid to less-than-half-time students
       The House bill requires the Secretary to conduct a study on 
     expanding eligibility for Title IV aid to less-than-half-time 
     students.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 1114. Study on regional sensitivity in the needs 
         analysis formula
       The House bill requires the GAO to review the methodology 
     that is used to determine the expected family contribution 
     under the needs analysis formula found in Part F of Title IV.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 1115. Study of the impact of student loan debt on 
         public service
       The House bill requires the Secretary in consultation with 
     the Office of Management and Budget, an organization with 
     expertise in the field of public service, and other 
     interested parties, to conduct a study of how student loan 
     debt levels impact the decisions of graduates of 
     postsecondary and graduate education programs to enter into 
     public service careers.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to clarify what items 
     that the study should cover.
     Section 1116. Study on teaching students with reading 
         disabilities
       The amendment requires the Secretary of Education to enter 
     into an agreement with the National Academy of Sciences to 
     study

[[Page 17263]]

     the quality of teacher education programs with respect to 
     meeting the needs of students with reading and language 
     processing disabilities.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to focus the scope of 
     the study and have the study be conducted by the Center for 
     Education at the National Academy of Sciences. The study will 
     examine the degree to which schools of education prepare 
     their teachers to effectively address the five essential 
     components of reading instruction. The study will also 
     examine quality of the teacher preparation reading programs 
     to determine the extent to which these programs incorporate 
     early intervention strategies that target the prevention of 
     reading failure before it occurs. The Conferees believe that 
     teacher preparation programs should be aligned with current 
     research and based on the essential components of reading 
     instruction. These programs should ensure that our Nation's 
     future teachers are adequately prepared to address the 
     diverse learning needs of students with reading and language 
     processing disabilities, including dyslexia. The Conferees 
     are concerned that pre-service teachers do not receive 
     adequate training in the fundamentals of reading instruction 
     during their teacher preparation program, and thus are not 
     prepared to effectively meet the diverse needs of the 
     students that they teach.
     Section 1117. Report on income-contingent repayment through 
         the income tax withholding system
       The House bill includes a sense of the Congress that the 
     Secretaries of Education and the Treasury will work together 
     to develop a process by which borrowers can convert their 
     student loans to income contingent loans where they will make 
     payments on their student loans using income tax withholding. 
     The House bill requires the Secretaries of Education and the 
     Treasury to report to the Authorizing Committees within one 
     year after the date of enactment with information on progress 
     in developing such a system for borrowers to convert their 
     loans to income-contingent loans that they will repay through 
     income tax withholding.
       The Senate amendment contains no similar provisions.
       The Senate recedes with an amendment to strike the sense of 
     the Congress and refine the scope of the report.
     Section 1118. Developing additional measures of degree 
         completion
       The Senate amendment requires institutions to disaggregate 
     data on completion and graduation rates based on student 
     gender, race/ethnicity, and receipt of a Pell Grant and 
     federal loans under Title IV.
       The House bill contains no similar provision.
       The House recedes with an amendment to require the 
     Secretary, in coordination with the Commissioner of Education 
     Statistics, representatives of institutions, and other 
     stakeholders to make recommendations on alternative ways to 
     report such graduation rate information.
     Section 1119. Study on the financial and compliance audits of 
         the Federal Student Loan Program
       The House bill required the Secretary to conduct an audit 
     of the Direct Loan Program and guaranty agencies in the 
     Federal Family Loan Program.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to require the GAO to 
     conduct a study on the audits being done of the student loan 
     programs and the ability of the audits to determine whether 
     the programs are operating in the best interests of students 
     and taxpayers.
     Section 1120. Summit on sustainability
       The House bill requires the Secretary to convene a summit 
     on sustainability in higher education no later than September 
     30, 2008.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to strike 2008 and 
     replace with 2010 for the date by which the Secretary must 
     convene the Summit.
     Section 1121: Nursing school capacity
       The House bill requires the Secretary to enter into an 
     agreement with the Institute of Medicine of the National 
     Academy of Sciences to conduct a study on the capacity of 
     nursing schools to admit and train a sufficient number of 
     registered nurses to meet health care needs in the United 
     States.
       The Senate amendment contains no similar provision.
       The Senate recedes.
     Section 1122. Study and report on non-individual information
       The House bill requires the GAO to study and report to 
     Congress on the inclusion of non-individual factors (e.g., 
     institution of higher education cohort default rates, 
     accreditation, and graduation rates) in the underwriting 
     criteria used to determine the pricing of private education 
     loans. No later than one year after the date of enactment, 
     the GAO shall submit a report on the results of the study to 
     Congress.
       The Senate amendment contains no similar provision.
       The Senate recedes with an amendment to move the provision 
     to Title XI and require the GAO to report to the Senate 
     Committees on Banking, Housing and Urban Affairs and Health, 
     Education, Labor and Pensions.
     Section 1123. Feasibility study for student loan 
         clearinghouse
       The House bill requires the Secretary of Education to 
     conduct a study on the feasibility of developing a National 
     Electronic Student Loan Marketplace to provide a registry of 
     real-time information on Federal student loans and private 
     educational loans, and other purposes.
       The Senate amendment authorizes the Secretary of Education 
     to establish one or more clearinghouses of information on 
     Federal student loans and private educational loans, for use 
     by prospective borrowers or any person desiring information 
     regarding available interest rates and other terms from 
     lenders.
       The Senate recedes with an amendment to require the 
     Comptroller General to conduct a study on the feasibility of 
     developing a national student loan clearinghouse on the 
     website of the Department of Education to provide a registry 
     of real-time information on Federal student loans and private 
     educational loans, and further modifies the purposes of the 
     study.
     Section 1124. Study on Department of Education oversight of 
         incentive compensation ban
       The Conferees require the GAO to conduct a study of efforts 
     made by the Department of Education to enforce the existing 
     program participation agreement requirement that prohibits 
     institutions from offering incentives for enrollment.
     Section 1125. Definition of authorizing committees
       Authorizing Committees are defined for purposes of this 
     Title.

                     COMPLIANCE WITH HOUSE RULE XXI

       Pursuant to clause 9 of rule XXI of the Rules of the House 
     of Representatives, this conference report and the statement 
     of managers accompanying this conference report contain no 
     congressional earmarks, limited tax benefits, or limited 
     tariff benefits as defined in clause 9(d), 9(e), or 9(f) of 
     rule XXI.
     George Miller,
     Ruben Hinojosa,
     John F. Tierney,
     David Wu,
     Timothy Bishop,
     Jason Altmire,
     John Yarmuth,
     Joe Courtney,
     Robert E. Andrews,
     Bobby Scott,
     Susan A. Davis,
     Danny K. Davis,
     Mark K. Hirono,
     Bart Gordon,
     Brian Baird,
     John Conyers, Jr.,
     Maxine Waters,
     Buck McKeon,
     Ric Keller,
     Thomas Petri,
     Cathy McMorris Rodgers,
     Mike Castle,
     Mark Souder,
     Vernon J. Ehlers,
     Judy Biggert,
     Louie Gohmert,
                                Managers on the Part of the House.

     Ted Kennedy,
     Christopher Dodd,
     Tom Harkin,
     Barbara A. Mikulski,
     Jeff Bingaman,
     Patty Murray,
     Jack Reed,
     Hillary Rodham Clinton,
     Barack Obama,
     Bernard Sanders,
     Sherrod Brown,
     Michael B. Enzi,
     Judd Gregg,
     Richard Burr,
     Lisa Murkowski,
     Orrin G. Hatch,
     Pat Roberts,
     Wayne Allard,
     Managers on the Part of the Senate.

                          ____________________