[House Report 109-231]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-231
_______________________________________________________________________
COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005
----------
R E P O R T
of the
COMMITTEE ON EDUCATION AND THE WORKFORCE
on
H.R. 609
COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005
109th Congress
1st Session Report
HOUSE OF REPRESENTATIVES 109-231
_______________________________________________________________________
COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005
__________
R E P O R T
of the
COMMITTEE ON EDUCATION AND THE WORKFORCE
on
H.R. 609
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-231
======================================================================
COLLEGE ACCESS AND OPPORTUNITY ACT OF 2005
_______
September 22, 2005.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Boehner, from the Committee on Education and the Workforce,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 609]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 609) to amend and extend the Higher
Education Act of 1965, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``College Access and
Opportunity Act of 2005''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
TITLE I--GENERAL PROVISIONS
Sec. 101. Definition of institution of higher education.
``Sec. 101. Definition of institution of higher education.
``Sec. 102. Institutions outside the United States.
``Sec. 123. Restrictions on funds for for-profit schools.
Sec. 102. New borrower definition.
Sec. 103. Student speech and association rights.
Sec. 104. National Advisory Committee on Institutional Quality and
Integrity.
Sec. 105. Alcohol and drug abuse prevention.
Sec. 106. Prior rights and obligations.
Sec. 107. Limitation on Certain Uses of Funds.
``Sec. 124. Limitation on Certain Uses of Funds.
Sec. 108. Consumer information and public accountability in higher
education.
``Sec. 131. Consumer information and public accountability in
higher education.
Sec. 109. Databases of student information.
``Sec. 132. Databases of student information prohibited.
Sec. 110. Performance-based organization.
TITLE II--TEACHER PREPARATION
Sec. 201. Teacher quality enhancement grants.
``Part A--Teacher Quality Enhancement Grants for States and
Partnerships
``Sec. 201. Purposes; definitions.
``Sec. 202. State grants.
``Sec. 203. Partnership grants.
``Sec. 204. Teacher recruitment grants.
``Sec. 205. Administrative provisions.
``Sec. 206. Accountability and evaluation.
``Sec. 207. Accountability for programs that prepare teachers.
``Sec. 208. State functions.
``Sec. 209. General provisions.
``Sec. 210. Authorization of appropriations.
Sec. 202. Preparing tomorrow's teachers to use technology.
Sec. 203. Centers of excellence.
``Part C--Centers of Excellence
``Sec. 231. Purposes; definitions.
``Sec. 232. Centers of excellence.
``Sec. 233. Authorization of appropriations.
Sec. 204. Teacher incentive fund program.
``Part D--Teacher Incentive Fund Program
``Sec. 241. Purpose; definitions.
``Sec. 242. Teacher incentive fund grants.
``Sec. 243. Evaluations.
``Sec. 244. Authorization of appropriations.
Sec. 205. Transition.
TITLE III--INSTITUTIONAL AID
Sec. 301. Title III grants for American Indian Tribally Controlled
Colleges and Universities.
Sec. 302. Alaska Native and Native Hawaiian-serving institutions.
Sec. 303. Grants to part B institutions.
Sec. 304. Technical amendments.
Sec. 305. Title III authorizations.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students
Sec. 401. Pell Grants.
``Sec. 401A. Pell Grants Plus: achievement grants for State
scholars.
Sec. 402. TRIO programs.
Sec. 403. TRIO reform.
``Sec. 402G. Staff development activities.
``Sec. 402H. Evaluations.
Sec. 404. GEARUP.
Sec. 405. Federal Supplemental Educational Opportunity Grants.
Sec. 406. LEAP.
Sec. 407. HEP/CAMP program.
Sec. 408. Robert C. Byrd Honors Scholarship Program.
``Subpart 6--Robert C. Byrd Honors Scholarship Program
``Sec. 419A. Robert C. Byrd mathematics and science honors
scholarship program.
``Sec. 419B. Mathematics and science incentive program.
``Sec. 419C. Mathematics and science education coordinating
council grants.
``Sec. 419D. Authorization of appropriations.
Sec. 409. Child care access.
Sec. 410. Learning anytime anywhere partnerships.
Part B--Federal Family Education Loan Program
Sec. 421. Reauthorization of Federal Family Education Loan Program.
Sec. 422. Loan limits.
Sec. 423. Interest rates and special allowances.
Sec. 424. Additional loan terms and conditions.
Sec. 425. Consolidation loan changes.
Sec. 426. Deferment of student loans for military service.
Sec. 427. Loan forgiveness for service in areas of national need.
``Sec. 428K. Loan forgiveness for service in areas of national
need.
Sec. 428. Unsubsidized Stafford loans.
Sec. 429. Elimination of termination dates from Taxpayer-Teacher
Protection Act of 2004.
Sec. 430. Additional administrative provisions.
``Sec. 428I. Special insurance and reinsurance rules for
exceptional performance.
Part C--Federal Work-Study Programs
Sec. 441. Authorization of appropriations.
Sec. 442. Community service.
Sec. 443. Allocation of funds.
Sec. 444. Books and supplies.
Sec. 445. Job location and development.
Sec. 446. Work colleges.
Part D--Federal Direct Loan Program
Sec. 451. Reauthorization of the Direct Loan Program.
Part E--Federal Perkins Loan Program
Sec. 461. Reauthorization of program.
Sec. 462. Loan terms and conditions.
Sec. 463. Loan cancellation.
Sec. 464. Technical amendments.
Part F--Need Analysis
Sec. 471. Significantly simplifying the student aid application
process.
Sec. 472. Additional need analysis amendments.
Part G--General Provisions Relating to Student Financial Assistance
Sec. 481. Definitions of academic year and eligible program.
Sec. 482. Distance education.
Sec. 483. Expanding information dissemination regarding eligibility for
Pell Grants.
Sec. 484. Student eligibility.
Sec. 485. Institutional refunds.
Sec. 486. Institutional and financial assistance information for
students.
Sec. 487. College access initiative.
``Sec. 485D. College access initiative.
Sec. 488. Distance education demonstration program.
Sec. 489. College affordability demonstration program.
``Sec. 486A. College affordability demonstration program.
Sec. 490. Program participation agreements.
Sec. 491. Additional technical and conforming amendments.
Part H--Program Integrity
Sec. 495. Accreditation.
Sec. 496. Report to congress on prevention of fraud and abuse in
student financial aid programs.
``Sec. 499. Report to Congress on prevention of fraud and abuse
in student financial aid programs.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Definitional changes.
Sec. 502. Assurance of enrollment of needy students.
Sec. 503. Additional amendments.
Sec. 504. Postbaccalaureate opportunities for Hispanic Americans.
``Part B--Promoting Postbaccalaureate Opportunities for Hispanic
Americans
``Sec. 511. Purposes.
``Sec. 512. Program authority and eligibility.
``Sec. 513. Authorized activities.
``Sec. 514. Application and duration.
Sec. 505. Authorization of appropriations.
TITLE VI--TITLE VI AMENDMENTS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
``Sec. 621. Program for foreign service professionals.
Sec. 604. Evaluation, outreach, and dissemination.
``Sec. 632. Evaluation, outreach, and dissemination.
Sec. 605. Advisory Board.
``Sec. 633. International Higher Education Advisory Board.
Sec. 606. Recruiter access to students and student recruiting
information; safety.
``Sec. 634. Recruiter access to students and student recruiting
information.
``Sec. 635. Student safety.
Sec. 607. National study of foreign language heritage communities.
``Sec. 636. National study of foreign language heritage
communities.
TITLE VII--TITLE VII AMENDMENTS
Sec. 701. Javits fellowship program.
Sec. 702. Graduate assistance in areas of national need.
Sec. 703. Thurgood Marshall legal educational opportunity program.
Sec. 704. Fund for the improvement of postsecondary education.
Sec. 705. Urban community service.
Sec. 706. Demonstration projects to ensure students with disabilities
receive a quality higher education.
TITLE VIII--CLERICAL AMENDMENTS
Sec. 801. Clerical amendments.
TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS
Part A--Education of the Deaf Act of 1986
Sec. 901. Laurent Clerc National Deaf Education Center.
Sec. 902. Authority.
Sec. 903. Agreement for the National Technical Institute for the Deaf.
Sec. 904. Definitions.
Sec. 905. Audit.
Sec. 906. Reports.
Sec. 907. Liaison for educational programs.
Sec. 908. Federal endowment programs for Gallaudet University and the
National Technical Institute for the Deaf.
Sec. 909. Oversight and effect of agreements.
Sec. 910. Authorization of appropriations.
``Sec. 1. Short title.
Part B--Additional Education Laws
Sec. 921. Cancellation of Student Loan Indebtedness For Survivors of
Victims of the September 11, 2001, Attacks.
Sec. 922. Amendment to Higher Education Amendments of 1998.
Sec. 923. Tribally Controlled College or University Assistance Act of
1978.
Sec. 924. Navajo Community College Act.
Sec. 925. Education Amendments of 1992.
Sec. 926. Study of student learning outcomes and public accountability.
Sec. 927. Study of minority graduation rates.
Sec. 928. Study of education-related indebtedness of medical school
graduates.
Sec. 929. Study of adult learners.
Sec. 930. Increase in college textbook prices.
SEC. 2. REFERENCES; EFFECTIVE DATE.
(a) 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.).
(b) Effective Date.--Except as otherwise provided in this Act, the
amendments made by this Act shall take effect on the date of enactment
of this Act.
TITLE I--GENERAL PROVISIONS
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Amendment.--Title I is amended by striking sections 101 and 102
(20 U.S.C. 1001, 1002) and inserting the following:
``SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
``(a) Institution of Higher Education.--For purposes of this Act, the
term `institution of higher education' means an educational institution
in any State that--
``(1) admits as regular students only individuals who--
``(A) meet the requirements of section 484(d)(3), or
have a certificate of graduation from a school
providing secondary education, or the recognized
equivalent of such a certificate;
``(B) are beyond the age of compulsory school
attendance in the State in which the institution is
located; or
``(C) will be dually enrolled in that institution and
a secondary school;
``(2) is legally authorized within such State to provide a
program of education beyond secondary education;
``(3)(A) is accredited by a nationally recognized accrediting
agency or association; or
``(B) if not so accredited, is a public or nonprofit
institution that has been granted preaccreditation status by
such an agency or association that has been recognized by the
Secretary for the granting of preaccreditation status, and the
Secretary has determined that there is satisfactory assurance
that the institution will meet the accreditation standards of
such an agency or association within a reasonable time; and
``(4) meets either of the following criteria:
``(A) is a nonprofit, for-profit, or public
institution that--
``(i) provides an educational program for
which the institution awards a bachelor's,
graduate, or professional degree;
``(ii) provides not less than a 2-year
educational program which is acceptable for
full credit towards such a degree;
``(iii) provides not less than a 1-year
program of training that prepares students for
gainful employment in a recognized occupation;
or
``(iv) awards a degree that is acceptable for
admission to graduate or professional degree
programs, subject to the review and approval of
the Secretary; or
``(B) is a nonprofit, for-profit, or public
institution that provides an eligible program (as
defined in section 481)--
``(i) for which the institution awards a
certificate; and
``(ii) that prepares students for gainful
employment in a recognized occupation.
``(b) Additional Limitations.--
``(1) For-profit postsecondary institutions.--
``(A) Duration of accreditation.--A for-profit
institution shall not be considered to be an
institution of higher education unless such institution
is accredited by a nationally recognized accrediting
agency or association and such institution has been in
existence for at least 2 years.
``(B) Institutional eligibility only for competitive
grants.--For the purposes of any program providing
grants to institutions for use by the institution (and
not for distribution among students), a for-profit
institution shall not be considered to be an
institution of higher education under this section if
such grants are awarded on any basis other than
competition on the merits of the grant proposal or
application.
``(2) Postsecondary vocational institutions.--A nonprofit or
public institution that meets the criteria of subsection
(a)(4)(B) shall not be considered to be an institution of
higher education unless such institution has been in existence
for at least 2 years.
``(3) Limitations based on management.--An institution shall
not be considered to meet the definition of an institution of
higher education in this section if--
``(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the direction of
the management or policies of the institution, has
filed for bankruptcy, except that this paragraph shall
not apply to a nonprofit institution, the primary
function of which is to provide health care educational
services (or an affiliate of such an institution that
has the power, by contract or ownership interest, to
direct or cause the direction of the institution's
management or policies) that filed for bankruptcy under
chapter 11 of title 11, United States Code, between
July 1, 1998, and December 1, 1998; or
``(B) the institution, the institution's owner, or
the institution's chief executive officer has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of Federal, State, or local government funds, or has
been judicially determined to have committed a crime
involving the acquisition, use, or expenditure
involving Federal, State, or local government funds.
``(4) Limitation on course of study or enrollment.--An
institution shall not be considered to meet the definition of
an institution of higher education in subsection (a) if such
institution--
``(A) offers more than 50 percent of such
institution's courses by correspondence (excluding
courses offered by telecommunications as defined in
section 484(l)(4)), unless the institution is an
institution that meets the definition in section
3(3)(C) of the Carl D. Perkins Vocational and Technical
Education Act of 1998;
``(B) enrolls 50 percent or more of the institution's
students in correspondence courses (excluding courses
offered by telecommunications as defined in section
484(l)(4)), unless the institution is an institution
that meets the definition in section 3(3)(C) of the
Carl D. Perkins Vocational and Technical Education Act
of 1998, except that the Secretary, at the request of
the institution, may waive the applicability of this
subparagraph to the institution for good cause, as
determined by the Secretary in the case of an
institution of higher education that provides a 2- or
4-year program of instruction (or both) for which the
institution awards an associate or baccalaureate
degree, respectively;
``(C) has a student enrollment in which more than 25
percent of the students are incarcerated, except that
the Secretary may waive the limitation contained in
this subparagraph for an institution that provides a 2-
or 4-year program of instruction (or both) for which
the institution awards a bachelor's degree, or an
associate's degree or a postsecondary certificate,
respectively; or
``(D) has a student enrollment in which more than 50
percent of the students either do not meet the
requirements of section 484(d)(3) or do not have a
secondary school diploma or its recognized equivalent,
and does not provide a 2- or 4-year program of
instruction (or both) for which the institution awards
an associate's degree or a bachelor's degree,
respectively, except that the Secretary may waive the
limitation contained in this subparagraph if an
institution demonstrates to the satisfaction of the
Secretary that the institution exceeds such limitation
because the institution serves, through contracts with
Federal, State, or local government agencies,
significant numbers of students who do not meet the
requirements of section 484(d)(3) or do not have a
secondary school diploma or its recognized equivalent.
``(c) List of Accrediting Agencies.--For purposes of this section,
the Secretary shall publish a list of nationally recognized accrediting
agencies or associations that the Secretary determines, pursuant to
subpart 2 of part H of title IV, to be reliable authority as to the
quality of the education or training offered.
``(d) Certification.--The Secretary shall certify, for the purposes
of participation in title IV, an institution's qualification as an
institution of higher education in accordance with the requirements of
subpart 3 of part H of title IV.
``(e) Loss of Eligibility.--An institution of higher education shall
not be considered to meet the definition of an institution of higher
education in this section for the purposes of participation in title IV
if such institution is removed from eligibility for funds under title
IV as a result of an action pursuant to part H of title IV.
``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
``(a) Institutions Outside the United States.--
``(1) In general.--An institution outside the United States
shall be considered to be an institution of higher education
only for purposes of part B of title IV if the institution is
comparable to an institution of higher education, as defined in
section 101, is legally authorized by the education ministry
(or comparable agency) of the country in which the school is
located, and has been approved by the Secretary for purposes of
that part. The Secretary shall establish criteria by regulation
for that approval and that determination of comparability. An
institution may not be so approved or determined to be
comparable unless such institution is a public or nonprofit
institution, except that, subject to paragraph (2)(B), a
graduate medical school or veterinary school located outside
the United States may be a for-profit institution.
``(2) Medical and veterinary school criteria.--In the case of
a graduate medical or veterinary school outside the United
States, such criteria shall include a requirement that a
student attending such school outside the United States is
ineligible for loans made, insured, or guaranteed under part B
of title IV unless--
``(A) in the case of a graduate medical school
located outside the United States--
``(i)(I) at least 60 percent of those
enrolled in, and at least 60 percent of the
graduates of, the graduate medical school
outside the United States were not persons
described in section 484(a)(5) in the year
preceding the year for which a student is
seeking a loan under part B of title IV; and
``(II) at least 60 percent of the individuals
who were students or graduates of the graduate
medical school outside the United States or
Canada (both nationals of the United States and
others) taking the examinations administered by
the Educational Commission for Foreign Medical
Graduates received a passing score in the year
preceding the year for which a student is
seeking a loan under part B of title IV; or
``(ii) the institution has a clinical
training program that was approved by a State
as of January 1, 1992; or
``(B) in the case of a veterinary school located
outside the United States that is not a public or
nonprofit institution, the institution's students
complete their clinical training at an approved
veterinary school located in the United States.
``(b) Advisory Panel.--
``(1) In general.--For the purpose of qualifying a foreign
medical school as an institution of higher education only for
purposes of part B of title IV, the Secretary shall publish
qualifying criteria by regulation and establish an advisory
panel of medical experts that shall--
``(A) evaluate the standards of accreditation applied
to applicant foreign medical schools; and
``(B) determine the comparability of those standards
to standards for accreditation applied to United States
medical schools.
``(2) Failure to release information.--The failure of an
institution outside the United States to provide, release, or
authorize release to the Secretary of such information as may
be required by subsection (a)(2) shall render such institution
ineligible for the purpose of part B of title IV.''.
(b) Restrictions on Funds for For-Profit Schools.--Part B of title I
is amended by inserting after section 122 (20 U.S.C. 1011k) the
following new section:
``SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.
``(a) In General.--Notwithstanding any other provision of this Act
authorizing the use of funds by an institution of higher education that
receives funds under this Act, none of the funds made available under
this Act to a for-profit institution of higher education may be used
for--
``(1) construction, maintenance, renovation, repair, or
improvement of classrooms, libraries, laboratories, or other
facilities;
``(2) establishing, improving, or increasing an endowment
fund; or
``(3) establishing or improving an institutional development
office to strengthen or improve contributions from alumni and
the private sector.
``(b) Exception.--Subsection (a) shall not apply to funds received by
the institution from the grant, loan, or work assistance that is
awarded under title IV to the students attending such institution.
``(c) Ineligibility for Certain Programs.--Notwithstanding section
101, a for-profit institution of higher education shall not be
considered an eligible institution for the programs under titles III
and V of this Act.''.
(c) Conforming Amendments.--
(1) Section 114(a) (20 U.S.C. 1011c(a)) is amended by
striking ``(as defined in section 102)''.
(2) Section 435(a)(1) (20 U.S.C. 1085(a)(1)) is amended by
striking ``section 102'' and inserting ``section 101''.
(3) Subsection (d) of section 484 (20 U.S.C. 1091(d)) is
amended by striking the designation and heading of such
subsection and inserting the following:
``(d) Satisfaction of Secondary Education Standards.--''.
(4) Section 486(b)(2) (20 U.S.C. 1093(b)(2)) is amended by
striking ``102(a)(3)(A), 102(a)(3)(B)'' and inserting
``101(b)(4)(A), 101(b)(4)(B)''.
(5) Section 487(c)(1)(A)(iii) (20 U.S.C. 1094(c)(1)(A)(iii))
is amended by striking ``section 102(a)(1)(C)'' and inserting
``section 102''.
(6) Section 487(d) (20 U.S.C. 1094(d)) is amended by striking
``section 102'' and inserting ``section 101''.
(7) Subsections (j) and (k) of section 496 (20 U.S.C.
1099b(j), (k)) are each amended by striking ``section 102'' and
inserting ``section 101''.
(8) Section 498(g)(3) (20 U.S.C. 1099c(g)(3)) is amended by
striking ``section 102(a)(1)(C)'' and inserting ``section
102''.
(9) Section 498(i)(1) (20 U.S.C. 1099c(i)(1)) is amended by
striking ``section 102'' and inserting ``section 101''.
(10) Section 498(j)(1) (20 U.S.C. 1099c) is amended by
striking ``except that such branch shall not be required to
meet the requirements of sections 102(b)(1)(E) and 102(c)(1)(C)
prior to seeking such certification'' and inserting ``except
that such branch shall not be required to be in existence for
at least 2 years prior to seeking such certification''.
(11) Section 498B(b) (20 U.S.C. 1099c-2(b)) is amended by
striking ``section 102(a)(1)(C)'' and inserting ``section
102''.
(d) Effect on Other Laws.--
(1) Inclusion of for-profit institutions in definition.--The
inclusion of proprietary and for-profit institutions within the
definition of the term ``institution of higher education''' in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001) pursuant to the amendment made by subsection (a) of this
section shall not apply to any other provision of law (other
than the Higher Education Act of 1965) enacted before the date
of enactment of this Act that references section 101 of the
Higher Education Act of 1965 (or that term as so defined),
except as expressly provided by an amendment to, or other
revision of the application of, such law enacted after such
date of enactment.
(2) Inclusion of for-profit institutions as title iii or v
eligible institution.--Any reference in any provision of law
other than the Higher Education Act of 1965 to institutions of
higher education that are eligible to participate in programs
under title III or V of such Act (20 U.S.C. 1051 et. seq., 1101
et seq.) shall not be treated, as a consequence of the
amendment to section 101 of the Higher Education Act of 1965
(20 U.S.C. 1001) by subsection (a) of this section, as
including a reference to a for-profit or proprietary
institution of higher education, except as expressly provided
by an amendment to, or other revision of the application of,
such law enacted after such date of enactment.
SEC. 102. NEW BORROWER DEFINITION.
Paragraph (7) of section 103 (20 U.S.C. 1003) is amended to read as
follows:
``(7) New borrower.--The term `new borrower' when used with
respect to any date for any loan under any provision of--
``(A) part B or part D of title IV means an
individual who on that date has no outstanding balance
of principal or interest owing on any loan made,
insured, or guaranteed under either of those parts; and
``(B) part E of title IV means an individual who on
that date has no outstanding balance of principal or
interest owing on any loan made under that part.''.
SEC. 103. STUDENT SPEECH AND ASSOCIATION RIGHTS.
Section 112 (20 U.S.C. 1011a) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Protection of Rights.--
``(1) It is the sense of Congress that no student attending
an institution of higher education on a full- or part-time
basis should, on the basis of participation in protected speech
or protected association, be excluded from participation in, be
denied the benefits of, or be subjected to discrimination or
official sanction under any education program, activity, or
division of the institution directly or indirectly receiving
financial assistance under this Act, whether or not such
program, activity, or division is sponsored or officially
sanctioned by the institution; and
``(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 colleges and universities have
different missions and each institution should design
its academic program in accordance with its educational
goals;
``(C) within the context of its institutional
mission, a college should promote intellectual
pluralism and facilitate the free and open exchange of
ideas;
``(D) students should not be intimidated, harassed,
discouraged from speaking out, discriminated against,
or subject to official sanction because of their
personal political, ideological, or religious beliefs;
and
``(E) students should be treated equally and fairly,
including evaluation and grading, without regard to or
consideration of their personal political views or
ideological beliefs.
``(3) Nothing in paragraph (2) 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 after ``higher
education'' the following: ``, if the imposition of such
sanction is done objectively, fairly, and without regard to the
student's personal political, ideological, or religious
beliefs''.
SEC. 104. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND
INTEGRITY.
(a) Membership.--Section 114(b) (20 U.S.C. 1011c(b)) is amended by
adding at the end the following new sentence: ``A member of the
Committee may continue to serve after the expiration of a term until a
successor has been appointed.''.
(b) Extension.--Section 114(g) (20 U.S.C. 1011c(g)) is amended by
striking ``2004'' and inserting ``2012''.
SEC. 105. ALCOHOL AND DRUG ABUSE PREVENTION.
Section 120(e)(5) (20 U.S.C. 1011i(e)(5)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding fiscal years'' and inserting
``5 succeeding fiscal years''.
SEC. 106. PRIOR RIGHTS AND OBLIGATIONS.
Section 121(a) (20 U.S.C. 1011j(a)) is amended by striking ``1999 and
for each of the 4'' each place it appears and inserting ``2006 and for
each of the 5''.
SEC. 107. LIMITATION ON CERTAIN USES OF FUNDS.
Part B of title I is further amended by adding after section 123 (as
added by section 101(b) of this Act) the following new section:
``SEC. 124. LIMITATION ON CERTAIN USES OF FUNDS.
``No funds made available to carry out this Act may be used--
``(1) for publicity or propaganda purposes not authorized by
the Congress before the date of enactment of the College Access
and Opportunity Act of 2005; or
``(2) unless authorized by law in effect on such date of
enactment, to produce any prepackaged news story intended for
broadcast or distribution unless such story includes a clear a
notification contained within the text or audio of such story
stating that the prepackaged news story was prepared or funded
by the Department of Education.''.
SEC. 108. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
Section 131 (20 U.S.C. 1015) is amended to read as follows:
``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
``(a) Purpose.--It is the purpose of this section to--
``(1) provide students and families with an easy-to-use,
comprehensive web-based tool for researching and comparing
institutions of higher education;
``(2) increase the transparency of college cost, price, and
financial aid; and
``(3) raise public awareness of information available about
postsecondary education, particularly among low-income
families, non-traditional student populations, and first-
generation college students.
``(b) College Opportunity On-Line (COOL) Website Re-Design Process.--
In carrying out this section, the Secretary--
``(1) shall identify the data elements that are of greatest
importance to prospective students, enrolled students, and
their families, paying particular attention to low-income, non-
traditional student populations, and first-generation college
students;
``(2) shall convene a group of individuals with expertise in
the collection and reporting of data related to institutions of
higher education, the measurement of institutional compliance
costs, consumer use of data related to institutions of higher
education, general consumer marketing, and college intervention
services to--
``(A) determine the relevance of particular data
elements to prospective students, enrolled students,
and families;
``(B) assess the cost-effectiveness of various ways
in which institutions of higher education might produce
the data desired by consumers;
``(C) determine the general comparability of the data
across institutions of higher education;
``(D) make recommendations regarding the inclusion of
specific data items and the most effective and least
burdensome methods to institutions of higher education
of collecting and reporting useful data; and
``(3) shall assure that the redesigned COOL website--
``(A) uses, to the extent practicable, data elements
currently provided by institutions of higher education
to the Secretary;
``(B) includes clear and uniform information
determined to be relevant to prospective students,
enrolled students, and families;
``(C) provides comparable information, by assuring
that data is based on accepted criteria and common
definitions;
``(D) includes a sorting function that permits users
to customize their search for and comparison of
institutions of higher education based on the
information identified through the process as
prescribed in paragraph (1) as being of greatest
relevance to choosing an institution of higher
education.
``(c) Data Collection.--
``(1) Data system.--The Secretary shall continue to redesign
the relevant parts of the Integrated Postsecondary Education
Data System to include additional data as required by this
section and to continue to improve the usefulness and
timeliness of data collected by such systems in order to inform
consumers about institutions of higher education.
``(2) College consumer profile.--The Secretary shall publish,
for each academic year and in accordance with standard
definitions developed by the Commissioner of Education
Statistics (including definitions developed under section
131(a)(3)(A) as in effect on the day before the date of
enactment of the College Access and Opportunity Act of 2005),
from at least all institutions of higher education
participating in programs under title IV the following
information:
``(A) The tuition and fees charged for a first-time,
full-time undergraduate student.
``(B) The room and board charges for such a student.
``(C) The cost of attendance for a first-time, full-
time undergraduate student, consistent with the
provisions of section 472.
``(D) The average amount of financial assistance
received by a first-time full-time undergraduate
student, including--
``(i) each type of assistance or benefits
described in 428(a)(2)(C)(ii);
``(ii) institutional and other assistance;
and
``(iii) Federal loans under parts B, D, and E
of title IV.
``(E) The number of first-time, full-time students
receiving financial assistance described in each clause
of subparagraph (D).
``(F) The average net price for first-time, full-time
students receiving Federal, State, or institutional
grant or loan assistance.
``(G) The institutional instructional expenditure per
full-time equivalent student.
``(H) Student enrollment information, including
information on the number and percentage of full-time
and part-time students, the number and percentage of
resident and non-resident students.
``(I) Faculty/student ratios.
``(J) Faculty information, including the total number
of faculty and the percentage of faculty who are full-
time employees of the institution and the percentage
who are part-time.
``(K) Completion and graduation rates, identifying
whether the completion or graduation rates are from a
2-year or 4-year program of instruction and, in the
case of a 2-year program of instruction, the percentage
of students who transfer to 4-year institutions prior
or subsequent to completion or graduation.
``(L) A link to the institution of higher education
with information of interest to students including
mission, accreditation, student services (including
services for students with disabilities), transfer of
credit policies and, if appropriate, placement rates
and other measures of success in preparing students for
entry into or advancement in the workforce.
``(M) Any additional information that the Secretary
may require.
``(d) Data Dissemination.--The Secretary shall make available, at a
minimum, the data collected pursuant to this section, including an
institution's college affordability index as calculated in accordance
with subsection (e). Such data shall be made available in a manner that
permits the review and comparison of data submissions of individual
institutions of higher education. Such data shall be presented in a
form that is easily accessible and understandable and allows parents
and students to make informed decisions based on the prices for typical
full-time undergraduate students and the institution's rate of cost
increase. The Secretary shall work with public and private entities to
promote broad public awareness, particularly among middle and high
school students and their families, of the information made available
under this section, including by distribution to students who
participate in or receive benefits from Federally funded education
programs and other Federal programs determined by the Secretary.
``(e) College Affordability Index.--
``(1) In general.--The Secretary shall, on the basis of the
data submitted under subsection (a), calculate a college
affordability index for each institution of higher education
submitting such data and shall make the index available in
accordance with subsection (d) as soon as operationally
possible on the Department's college opportunity online Web
site. Such index shall be presented in a manner so that the
index for any institution is stated in a column or cell
immediately adjacent to a column or cell containing the total
tuition and fees of the institution.
``(2) Calculation of index.--The college affordability index
shall be equal to--
``(A) the percentage increase in the tuition and fees
charged for a first-time, full-time, full-year
undergraduate student between the first of the 3 most
recent preceding academic years and the last of those 3
academic years; divided by
``(B) the percentage increase in the Consumer Price
Index--All Urban Consumers (Current Series) from July
of the first of those 3 academic years to July of the
last of those 3 academic years.
``(f) Outcomes and Actions.--
``(1) Response from institution.--Effective on June 30, 2009,
an institution that has a college affordability index that
exceeds 2.0 for any 3-year interval ending on or after that
date shall provide a report to the Secretary, in such a form,
at such time, and containing such information as the Secretary
may require. Such report shall include--
``(A) an explanation of the factors contributing to
the increase in the institution's costs and in the
tuition and fees charged to students;
``(B) a management plan stating the specific steps
the institution is and will be taking to reduce its
college affordability index;
``(C) an action plan, including a schedule, by which
the institution will reduce increases in or stabilize,
such costs and tuition and fees; and
``(D) if determinations of tuition and fee increases
are not within the exclusive control of the
institution, a description of the agency or
instrumentality of State government or other entity
that participates in such determinations and the
authority exercised by such agency, instrumentality, or
entity.
``(2) Information to the public.--Upon receipt of the
institution's report and management plan under paragraph (1),
the Secretary shall make the institution's report required
under paragraph (1) available to the public in accordance with
subsection (b).
``(3) Quality-efficiency task forces.--
``(A) Required.--Each institution subject to
paragraph (1) that has a college affordability index
that is in the highest 25 percent of such indexes of
all institutions subject to paragraph (1) shall
establish a quality-efficiency task force to review the
operations of such institution.
``(B) Membership.--Such task force shall include
administrators and business and civic leaders and may
include faculty, students, trustees, parents of
students, and alumni of such institution.
``(C) Functions.--Such task force shall analyze
institutional operating costs in comparison with such
costs at other institutions within the class of
institutions. Such analysis should identify areas
where, in comparison with other institutions in such
class, the institution operates more expensively to
produce a similar result. Any identified areas should
then be targeted for in-depth analysis for cost
reduction opportunities.
``(D) Report.--The results of the analysis by a
quality-efficiency task force under this paragraph
shall be included in the report to the Secretary under
paragraph (1).
``(4) Consequences for 2-year continuation of failure.--If
the Secretary determines that the institution has failed to
comply with the management plan and action plan submitted by
the institution under this subsection following the next 2
academic years that begin after the submission of such plans,
and has failed to reduce the college affordability index below
2.0 for such 2 academic years, the Secretary--
``(A) shall make available to the public a detailed
report provided by the institution on all costs and
expenditures, and on all tuition and fees charged to
students, for such 2 academic years;
``(B) shall place the institution on an affordability
alert status and shall make the information regarding
the institution's failure available in accordance with
subsection (d);
``(C) shall notify the institution's accrediting
agency of the institution's failure; and
``(D) may require the institution to submit to a
review and audit by the Inspector General of the
Department of Education to determine the cause of the
institution's failure.
``(5) Information to state agencies.--Any institution that
reports under paragraph (1)(C) that an agency or
instrumentality of State government or other entity
participates in the determinations of tuition and fee increases
shall, prior to submitting any information to the Secretary
under this subsection, submit such information to, and request
the comments and input of, such agency, instrumentality, or
entity. With respect to any such institution, the Secretary
shall provide a copy of any communication by the Secretary with
that institution to such agency, instrumentality, or entity.
``(6) Exemptions.--
``(A) Relative price exemption.--The Secretary shall,
for any 3-year interval for which college affordability
indexes are computed under paragraph (1), determine and
publish the dollar amount that, for each class of
institution described in paragraph (7) represents the
maximum tuition and fees charged for a full-time
undergraduate student in the least costly quartile of
institutions within each such class during the last
year of such 3-year interval. An institution that has a
college affordability index computed under paragraph
(1) that exceeds 2.0 for any such 3-year interval, but
that, on average during such 3-year interval, charges
less than such maximum tuition and fees shall not be
subject to the actions required by subparagraph (B) or
(C) of paragraph (1), or any action under paragraph
(4), unless such institution, for a subsequent 3-year
interval, charges more than such maximum tuition and
fees.
``(B) Dollar increase exemption.--An institution that
has a college affordability index computed under
paragraph (1) that exceeds 2.0 for any 3-year interval,
but that exceeds such 2.0 by a dollar amount that is
less than $500, shall not be subject to the actions
required by subparagraph (B) or (C) of paragraph (1),
or any action under paragraph (4), unless such
institution has a college affordability index for a
subsequent 3-year interval that exceeds 2.0 by more
than such dollar amount.
``(7) Classes of institutions.--For purposes of this
subsection, the classes of institutions shall be those sectors
used by the Integrated Postsecondary Education Data System,
based on whether the institution is public, nonprofit private,
or for-profit private, and whether the institution has a 4-
year, 2-year, or less than 2-year program of instruction.
``(g) Fines.--In addition to actions authorized in section 487(c),
the Secretary may impose a fine in an amount not to exceed $25,000 on
an institution of higher education for failing to provide the
information described in this section in a timely and accurate manner,
or for failing to otherwise cooperate with the National Center for
Education Statistics regarding efforts to obtain data on the cost and
price of higher education under this section and pursuant to the
program participation agreement entered into under section 487.
``(h) GAO Study and Report.--
``(1) GAO study.--The Comptroller General shall conduct a
study of the policies and procedures implemented by
institutions in increasing the affordability of postsecondary
education. Such study shall include information with respect
to--
``(A) a list of those institutions that--
``(i) have reduced their college
affordability indexes; or
``(ii) are, as determined under subsection
(f)(6)(A), within the least costly quartile of
institutions within each class described in
subsection (f)(7);
``(B) policies implemented to stem the increase in
tuition and fees and institutional costs;
``(C) the extent to which room and board costs and
prices changed;
``(D) the extent to which other services were altered
to affect tuition and fees;
``(E) the extent to which the institution's policies
affected student body demographics and time to
completion;
``(F) what, if any, operational factors played a role
in reducing tuition and fees;
``(G) the extent to which academic quality was
affected, and how;
``(H) the extent to which policies and practices
reducing costs and prices may be replicated from one
institution to another; and
``(I) other information as necessary to determine
best practices in increasing the affordability of
postsecondary education.
``(2) Interim and final reports.--The Comptroller General
shall submit an interim and a final report regarding the
findings of the study required by paragraph (1) to the
appropriate authorizing committees of Congress. The interim
report shall be submitted not later than July 31, 2011, and the
final report shall be submitted not later than July 31, 2013.
``(i) Student Aid Recipient Survey.--
``(1) Survey required.--The Secretary shall conduct a survey
of student aid recipients under title IV on a regular cycle and
State-by-State basis, but not less than once every 4 years--
``(A) to identify the population of students
receiving Federal student aid;
``(B) to describe the income distribution and other
socioeconomic characteristics of federally aided
students;
``(C) to describe the combinations of aid from State,
Federal, and private sources received by students from
all income groups;
``(D) to describe the debt burden of educational loan
recipients and their capacity to repay their education
debts, and the impact of such debt burden on career
choices;
``(E) to describe the role played by the price of
postsecondary education in the determination by
students of what institution to attend; and
``(F) to describe how the increased costs of
textbooks and other instructional materials affects the
costs of postsecondary education to students.
``(2) Survey design.--The survey shall be representative of
full-time and part-time, undergraduate, graduate, and
professional and current and former students in all types of
institutions, and designed and administered in consultation
with the Congress and the postsecondary education community.
``(3) Dissemination.--The Secretary shall disseminate the
information resulting from the survey in both printed and
electronic form.
``(j) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.''.
SEC. 109. DATABASES OF STUDENT INFORMATION.
Part C of title I is further amended by adding at the end the
following new section:
``SEC. 132. DATABASES OF STUDENT INFORMATION PROHIBITED.
``(a) Prohibition.--Except as described in (b), nothing in this Act
shall be construed to authorize the design, development, creation,
implementation, or maintenance of a nationwide database of personally
identifiable information on individuals receiving assistance, attending
institutions receiving assistance, 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 affect
the loan obligation enforcement activities described in section 485B of
this Act.''.
SEC. 110. PERFORMANCE-BASED ORGANIZATION.
Section 141 (20 U.S.C. 1018) is amended--
(1) in subsection (a)(2)(B)--
(A) by inserting ``unit'' after ``to reduce the'';
and
(B) by inserting ``and, to the extent practicable,
the total costs of administering those programs'' after
``those programs'';
(2) in subsection (c)--
(A) in paragraph (1)(A), by striking ``Each year''
and inserting ``Each fiscal year'';
(B) in paragraph (1)(B), by inserting ``secondary
markets, guaranty agencies,'' after ``lenders,''; and
(C) in paragraph (2)(B), by striking ``Chief
Financial Officer Act of 1990 and'' and inserting
``Chief Financial Officers Act of 1990,'' and by
inserting before the period at the end the following:
``, and other relevant statutes''; and
(3) in subsection (f)(3)(A), by striking ``paragraph (1)(A)''
and inserting ``paragraph (1)''.
TITLE II--TEACHER PREPARATION
SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.
Part A of title II (20 U.S.C. 1021 et seq.) is amended to read as
follows:
``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS
``SEC. 201. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this part are to--
``(1) improve student academic achievement;
``(2) improve the quality of the current and future teaching
force by improving the preparation of prospective teachers and
enhancing professional development activities;
``(3) hold institutions of higher education accountable for
preparing highly qualified teachers; and
``(4) recruit qualified individuals, including minorities and
individuals from other occupations, into the teaching force.
``(b) Definitions.--In this part:
``(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
matter area, the disciplines or content areas in which
academic majors are offered by the arts and science
organizational unit.
``(2) Exemplary teacher.--The term `exemplary teacher' has
the meaning given such term in section 9101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
``(3) Highly qualified.--The term `highly qualified' when
used with respect to an individual means that the individual is
highly qualified as determined under section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)
or section 602 of the Individuals with Disabilities Education
Act (20 U.S.C. 1401).
``(4) High-need local educational agency.--The term `high-
need local educational agency' means a local educational
agency--
``(A)(i)(I) that serves not fewer than 10,000
children from families with incomes below the poverty
line; or
``(II) for which not less than 25 percent of the
children served by the agency are from families with
incomes below the poverty line;
``(ii) that is among those serving the highest number
or percentage of children from families with incomes
below the poverty line in the State, but this clause
applies only in a State that has no local educational
agency meeting the requirements of clause (i); or
``(iii) with a total of less than 600 students in
average daily attendance at the schools that are served
by the agency and all of whose schools are designated
with a school locale code of 7, as determined by the
Secretary; and
``(B)(i) for which there is a high percentage of
teachers not teaching in the academic subjects or grade
levels that the teachers were trained to teach; or
``(ii) for which there is a high percentage of
teachers with emergency, provisional, or temporary
certification or licensing.
``(5) Poverty line.--The term `poverty line' means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
``(6) Professional development.--The term `professional
development' has the meaning given such term in section 9101 of
the Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801).
``(7) 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 (20 U.S.C. 6368).
``(8) Scientifically based research.--The term
`scientifically based research' has the meaning given such term
in section 9101 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801).
``(9) Teaching skills.--The term `teaching skills' means
skills that--
``(A) are based on scientifically based research;
``(B) enable teachers to effectively convey and
explain subject matter content;
``(C) lead to increased student academic achievement;
and
``(D) use strategies that--
``(i) are specific to subject matter;
``(ii) include ongoing assessment of student
learning;
``(iii) focus on identification and tailoring
of academic instruction to students's specific
learning needs; and
``(iv) focus on classroom management.
``SEC. 202. STATE GRANTS.
``(a) In General.--From amounts made available under section 210(1)
for a fiscal year, the Secretary is authorized to award grants under
this section, on a competitive basis, to eligible States to enable the
eligible States to carry out the activities described in subsection
(d).
``(b) Eligible State.--
``(1) Definition.--In this part, the term `eligible State'
means--
``(A) the Governor of a State; or
``(B) in the case of a State for which the
constitution or law of such State designates another
individual, entity, or agency in the State to be
responsible for teacher certification and preparation
activity, such individual, entity, or agency.
``(2) Consultation.--The Governor or the individual, entity,
or agency designated under paragraph (1)(B) shall consult with
the Governor, State board of education, State educational
agency, State agency for higher education, or State agency
responsible for early childhood education and programs, as
appropriate, with respect to the activities assisted under this
section.
``(3) Construction.--Nothing in this subsection shall be
construed to negate or supersede the legal authority under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.
``(c) Application.--To be eligible to receive a grant under this
section, an eligible State shall submit an application to the Secretary
that--
``(1) meets the requirement of this section;
``(2) demonstrates that the State is in full compliance with
sections 207 and 208;
``(3) includes a description of how the eligible State
intends to use funds provided under this section;
``(4) includes measurable objectives for the use of the funds
provided under the grant;
``(5) demonstrates the State has submitted and is actively
implementing a plan that meets the requirements of sections
1111(h)(1)(C)(viii) and 1119 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6311(h)(1)(C)(viii) and 6319);
and
``(6) contains such other information and assurances as the
Secretary may require.
``(d) Uses of Funds.--An eligible State that receives a grant under
this section shall use the grant funds to reform teacher preparation
requirements, to coordinate with State activities under section 2113(c)
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6613(c)), and to ensure that current and future teachers are highly
qualified, by carrying out one or more of the following activities:
``(1) Reforms.--Ensuring that all teacher preparation
programs in the State are preparing teachers who are highly
qualified, are able to understand scientifically based research
and its applicability, and are able to use advanced technology
effectively in the classroom, including use for instructional
techniques to improve student academic achievement, by
assisting such programs--
``(A) to retrain faculty; and
``(B) to design (or redesign) teacher preparation
programs so they--
``(i) are based on rigorous academic content,
scientifically based research (including
scientifically based reading research), and
challenging State student academic content
standards; and
``(ii) promote strong teaching skills.
``(2) Certification or licensure requirements.--Reforming
teacher certification (including recertification) or licensing
requirements to ensure that--
``(A) teachers have the subject matter knowledge and
teaching skills in the academic subjects that the
teachers teach that are necessary to help students meet
challenging State student academic achievement
standards; and
``(B) such requirements are aligned with challenging
State academic content standards.
``(3) Alternatives to traditional teacher preparation and
state certification.--Providing prospective teachers with
alternative routes to State certification and traditional
preparation to become highly qualified teachers through--
``(A) innovative approaches that reduce unnecessary
barriers to State certification while producing highly
qualified teachers, which may include articulation
agreements between institutions of higher education;
``(B) programs that provide support to teachers
during their initial years in the profession; and
``(C) alternative routes to State certification of
teachers for qualified individuals, including mid-
career professionals from other occupations, former
military personnel, and recent college graduates with
records of academic distinction.
``(4) Innovative programs.--Planning and implementing
innovative programs to enhance the ability of institutions of
higher education to prepare highly qualified teachers, such as
charter colleges of education or university and local
educational agency partnership schools, that--
``(A) permit flexibility in meeting State
requirements as long as graduates, during their initial
years in the profession, increase student academic
achievement;
``(B) provide long-term data gathered from teachers'
performance over multiple years in the classroom on the
ability to increase student academic achievement;
``(C) ensure high-quality preparation of teachers
from underrepresented groups; and
``(D) create performance measures that can be used to
document the effectiveness of innovative methods for
preparing highly qualified teachers.
``(5) Merit pay.--Developing, or assisting local educational
agencies in developing--
``(A) merit-based performance systems that reward
teachers who increase student academic achievement; and
``(B) strategies that provide differential and bonus
pay in high-need local educational agencies to retain--
``(i) principals;
``(ii) highly qualified teachers who teach in
high-need academic subjects, such as reading,
mathematics, and science;
``(iii) highly qualified teachers who teach
in schools identified for school improvement
under section 1116(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6316(b));
``(iv) special education teachers;
``(v) teachers specializing in teaching
limited English proficient children; and
``(vi) highly qualified teachers in urban and
rural schools or districts.
``(6) Teacher advancement.--Developing, or assisting local
educational agencies in developing, teacher advancement and
retention initiatives that promote professional growth and
emphasize multiple career paths (such as paths to becoming a
highly qualified mentor teacher or exemplary teacher) and pay
differentiation.
``(7) Teacher removal.--Developing and implementing effective
mechanisms to ensure that local educational agencies and
schools are able to remove expeditiously incompetent or
unqualified teachers consistent with procedures to ensure due
process for the teachers.
``(8) Technical assistance.--Providing technical assistance
to low-performing teacher preparation programs within
institutions of higher education identified under section
208(a).
``(9) Teacher effectiveness.--Developing--
``(A) systems to measure the effectiveness of teacher
preparation programs and professional development
programs; and
``(B) strategies to document gains in student
academic achievement or increases in teacher mastery of
the academic subjects the teachers teach as a result of
such programs.
``(10) Teacher recruitment and retention.--Undertaking
activities that--
``(A) develop and implement effective mechanisms to
ensure that local educational agencies and schools are
able effectively to recruit and retain highly qualified
teachers; or
``(B) are described in section 204(d).
``(11) Early childhood educator.--Developing strategies--
``(A) to improve the qualifications of preschool
teachers, which may include State certification for
such teachers;
``(B) to improve and expand preschool teacher
preparation programs; and
``(C) to reduce unnecessary burdens to the attainment
of a bachelor's degree in early childhood education and
increase the number of bilingual early childhood
educators, which may include developing articulation
agreements between institutions of higher education.
``(12) Gifted and talented students.--Incorporating the
learning needs of gifted and talented students into the
activities described in paragraph (1), (2), or (3) in order to
ensure that new teachers possess the basic knowledge and skills
necessary to meet the educational needs of gifted and talented
students.
``(13) New-teacher mentoring on the needs of gifted and
talented students.-- Establishing or expanding new-teacher
mentoring and assessment programs (including induction and
evaluation programs) that are a part of a licensure process
which is designed to demonstrate that new teachers possess
basic knowledge of the classroom indicators of giftedness, are
able to identify student learning differences among gifted
students, and are able to provide instruction to accommodate
such differences.
``(14) Special education, math, and science faculty.--
Supporting the development of new special education, math, and
science faculty positions in institutions of higher education
dedicated to the preparation of highly qualified special
education, math, and science teachers (as defined by section
9101 of the Elementary and Secondary Education Act or section
602 of the Individuals with Disabilities Education Act), with
matching funds from institutions of higher education and a
commitment to continue new faculty positions when Federal
funding ends.
``(15) Subject area evaluation.--Assessing the performance of
teacher preparation programs within institutions of higher
education in the State using an assessment which provides
comparisons across such schools in the State based upon
indicators including teacher candidate knowledge in subject
areas in which such candidate has been prepared to teach. Such
information shall be made publicly available and widely
disseminated.
``(e) Evaluation.--
``(1) Evaluation system.--An eligible State that receives a
grant under this section shall develop and utilize a system to
evaluate annually the effectiveness of teacher preparation
programs and professional development activities within the
State in producing gains in--
``(A) the teacher's annual contribution to improving
student academic achievement, as measured by State
academic assessments required under section 1111(b)(3)
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311(b)(3)); and
``(B) teacher mastery of the academic subjects they
teach, as measured by pre- and post-participation tests
of teacher knowledge, as appropriate.
``(2) Use of evaluation system.--Such evaluation system shall
be used by the State to evaluate--
``(A) activities carried out using funds provided
under this section; and
``(B) the quality of its teacher education programs.
``(3) Public reporting.--The State shall make the information
described in paragraph (1) widely available through public
means, such as posting on the Internet, distribution to the
media, and distribution through public agencies.
``SEC. 203. PARTNERSHIP GRANTS.
``(a) Grants.--From amounts made available under section 210(2) for a
fiscal year, the Secretary is authorized to award grants under this
section, on a competitive basis, to eligible partnerships to enable the
eligible partnerships to carry out the activities described in
subsections (d) and (e).
``(b) Definitions.--
``(1) Eligible partnerships.--In this part, the term
`eligible partnership' means an entity that--
``(A) shall include--
``(i) a partner institution;
``(ii) a school of arts and sciences;
``(iii) a high-need local educational agency;
and
``(iv) a public or private educational
organization; and
``(B) may include a Governor, State educational
agency, the State board of education, the State agency
for higher education, an institution of higher
education not described in subparagraph (A), a public
charter school, a public or private elementary school
or secondary school, a public or private educational
organization, a business, a science-, mathematics-, or
technology-oriented entity, a faith-based or community
organization, a prekindergarten program, a teacher
organization, an education service agency, a consortia
of local educational agencies, or a nonprofit
telecommunications entity.
``(2) Partner institution.--In this section, the term
`partner institution' means an institution of higher education,
the teacher training program of which demonstrates that--
``(A) graduates from the teacher training program
exhibit strong performance on State-determined
qualifying assessments for new teachers through--
``(i) demonstrating that 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 or areas 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 207(a); and
``(II) using the State report card on
teacher preparation required under
section 207(a); or
``(B) the teacher training program requires all the
students of the program to participate in intensive
clinical experience, to meet high academic standards,
and--
``(i) in the case of secondary school
candidates, to successfully complete an
academic major in the subject area in which the
candidate intends to teach or to demonstrate
competence through a high level of performance
in relevant content areas; and
``(ii) in the case of elementary school
candidates, to successfully complete an
academic major in the arts and sciences or to
demonstrate competence through a high level of
performance in core academic subject areas.
``(c) 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--
``(1) contain a needs assessment of all the partners with
respect to teaching and learning and a description of how the
partnership will coordinate with other teacher training or
professional development programs, and how the activities of
the partnership will be consistent with State, local, and other
education reform activities that promote student academic
achievement;
``(2) contain a resource assessment that describes the
resources available to the partnership, the intended use of the
grant funds, including a description of how the grant funds
will be used in accordance with subsection (f), and the
commitment of the resources of the partnership to the
activities assisted under this part, including financial
support, faculty participation, time commitments, and
continuation of the activities when the grant ends;
``(3) contain a description of--
``(A) how the partnership will meet the purposes of
this part;
``(B) how the partnership will carry out the
activities required under subsection (d) and any
permissible activities under subsection (e);
``(C) the partnership's evaluation plan pursuant to
section 206(b);
``(D) how faculty of the teacher preparation program
at the partner institution will serve, over the term of
the grant, with highly qualified teachers in the
classrooms of the high-need local educational agency
included in the partnership;
``(E) how the partnership will ensure that teachers,
principals, and superintendents in private elementary
and secondary schools located in the geographic areas
served by an eligible partnership under this section
will participate equitably in accordance with section
9501 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7881);
``(F) how the partnership will design and implement a
clinical program component that includes close
supervision of student teachers by faculty of the
teacher preparation program at the partner institution
and mentor teachers;
``(G) how the partnership will design and implement
an induction program to support all new teachers
through the first 3 years of teaching that includes
mentors who are trained and compensated by the
partnership for their work with new teachers; and
``(H) how the partnership will collect, analyze, and
use data on the retention of all teachers in schools
located in the geographic areas served by the
partnership to evaluate the effectiveness of its
teacher support system; and
``(4) contain a certification from the high-need local
educational agency included in the partnership that it has
reviewed the application and determined that the grant proposed
will comply with subsection (f).
``(d) Required Uses of Funds.--An eligible partnership that receives
a grant under this section shall use the grant funds to reform teacher
preparation requirements, to coordinate with State activities under
section 2113(c) of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6613(c)), and to ensure that current and future teachers are
highly qualified, by carrying out one or more of the following
activities:
``(1) Reforms.--Implementing reforms within teacher
preparation programs to ensure that such programs are preparing
teachers who are highly qualified, are able to understand
scientifically based research and its applicability, and are
able to use advanced technology effectively in the classroom,
including use for instructional techniques to improve student
academic achievement, by--
``(A) retraining faculty; and
``(B) designing (or redesigning) teacher preparation
programs so they--
``(i) are based on rigorous academic content,
scientifically based research (including
scientifically based reading research), and
challenging State student academic content
standards; and
``(ii) promote strong teaching skills.
``(2) Clinical experience and interaction.--Providing
sustained and high-quality preservice and in-service 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
for teachers, including preparation time and release time, for
such interaction.
``(3) Professional development.--Creating opportunities for
enhanced and ongoing professional development that improves the
academic content knowledge of teachers in the subject areas in
which the teachers are certified to teach or in which the
teachers are working toward certification to teach, and that
promotes strong teaching skills.
``(4) Teacher preparation.--Developing, or assisting local
educational agencies in developing, professional development
activities that--
``(A) provide training in how to teach and address
the needs of students with different learning styles,
particularly students with disabilities, limited
English proficient students, gifted and talented
students, and students with special learning needs; and
``(B) provide training in methods of--
``(i) improving student behavior in the
classroom; and
``(ii) identifying early and appropriate
interventions to help students described in
subparagraph (A) learn.
``(e) Allowable Uses of Funds.--An eligible partnership that receives
a grant under this section may use such funds to carry out the
following activities:
``(1) Alternatives to traditional teacher preparation and
state certification.--Providing prospective teachers with
alternative routes to State certification and traditional
preparation to become highly qualified teachers through--
``(A) innovative approaches that reduce unnecessary
barriers to teacher preparation producing highly
qualified teachers, which may include articulation
agreements between institutions of higher education;
``(B) programs that provide support during a
teacher's initial years in the profession; and
``(C) alternative routes to State certification of
teachers for qualified individuals, including mid-
career professionals from other occupations, former
military personnel, and recent college graduates with
records of academic distinction.
``(2) Dissemination and coordination.--Broadly disseminating
information on effective practices used by the partnership, and
coordinating with the activities of the Governor, State board
of education, State higher education agency, and State
educational agency, as appropriate.
``(3) Managerial and leadership skills.--Developing and
implementing professional development programs for principals
and superintendents that enable them to be effective school
leaders and prepare all students to meet challenging State
academic content and student academic achievement standards.
``(4) Teacher recruitment.--Activities--
``(A) to encourage students to become highly
qualified teachers, such as extracurricular enrichment
activities; and
``(B) activities described in section 204(d).
``(5) Clinical experience in science, mathematics, and
technology.--Creating opportunities for clinical experience and
training, by participation in the business, research, and work
environments with professionals, in areas relating to science,
mathematics, and technology for teachers and prospective
teachers, including opportunities for use of laboratory
equipment, in order for the teacher to return to the classroom
for at least 2 years and provide instruction that will raise
student academic achievement.
``(6) Coordination with community colleges.--Coordinating
with community colleges to implement teacher preparation
programs, including through distance learning or articulation
agreements, for the purposes of allowing prospective teachers--
``(A) to attain a bachelor's degree and State
certification or licensure; and
``(B) to become highly qualified teachers.
``(7) Teacher mentoring.--Establishing or implementing a
teacher mentoring program that--
``(A) includes minimum qualifications for mentors;
``(B) provides training and stipends for mentors;
``(C) provides mentoring programs for teachers in
their first 3 years of teaching;
``(D) provides regular and ongoing opportunities for
mentors and mentees to observe each other's teaching
methods in classroom settings during the school day;
``(E) establishes an evaluation and accountability
plan for activities conducted under this paragraph that
includes rigorous objectives to measure the impact of
such activities; and
``(F) provides for a report to the Secretary on an
annual basis regarding the partnership's progress in
meeting the objectives described in subparagraph (E).
``(8) Computer software for multilingual education.--Training
teachers to use computer software for multilingual education to
address the needs of limited English proficient students.
``(9) Gifted and talented students.--Increasing the knowledge
and skills of preservice teachers participating in activities
under subsection (d) in the educational and related needs of
gifted and talented students by, among other strategies,
infusing teacher coursework with units on the characteristics
of high-ability learners, using assessments to identify
preexisting knowledge and skills among students, and developing
teaching strategies that are driven by the learner's progress.
``(10) Reducing the shortage of highly qualified special
education, math, and science teachers.--Increasing the number
of highly qualified special education, math, and science
teachers (as defined by section 9101 of the Elementary and
Secondary Education Act or section 602 of the Individuals with
Disabilities Education Act) through such activities as
recruitment, scholarships for tuition, and new teacher
mentoring.
``(f) Special Rule.--At least 50 percent of the funds made available
to an eligible partnership under this section shall be used directly to
benefit the high-need local educational agency included in the
partnership. Any entity described in subsection (b)(1)(A) may be the
fiscal agent under this section.
``(g) Construction.--Nothing in this section shall be construed to
prohibit an eligible partnership from using grant funds to coordinate
with the activities of more than one Governor, State board of
education, State educational agency, local educational agency, or State
agency for higher education.
``(h) 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
the purposes of this section.
``SEC. 204. TEACHER RECRUITMENT GRANTS.
``(a) Program Authorized.--From amounts made available under section
210(3) for a fiscal year, the Secretary is authorized to award grants,
on a competitive basis, to eligible applicants to enable the eligible
applicants to carry out activities described in subsection (d).
``(b) Eligible Applicant Defined.--In this part, the term `eligible
applicant' means--
``(1) an eligible State described in section 202(b); or
``(2) an eligible partnership described in section 203(b).
``(c) Application.--Any eligible applicant desiring to receive a
grant under this section shall submit an application to the Secretary
at such time, in such form, and containing such information as the
Secretary may require, including--
``(1) a description of the assessment that the eligible
applicant, and the other entities with whom the eligible
applicant will carry out the grant activities, have undertaken
to determine the most critical needs of the participating high-
need local educational agencies;
``(2) a description of the activities the eligible applicant
will carry out with the grant, including the extent to which
the applicant will use funds to recruit minority students to
become highly qualified teachers; and
``(3) a description of the eligible applicant's plan for
continuing the activities carried out with the grant, once
Federal funding ceases.
``(d) Uses of Funds.--Each eligible applicant receiving a grant under
this section shall use the grant funds--
``(1)(A) to award scholarships to help students, such as
individuals who have been accepted for their first year, or who
are enrolled in their first or second year, of a program of
undergraduate education at an institution of higher education,
pay the costs of tuition, room, board, and other expenses of
completing a teacher preparation program;
``(B) to provide support services, if needed to enable
scholarship recipients--
``(i) to complete postsecondary education programs;
or
``(ii) to transition from a career outside of the
field of education into a teaching career; and
``(C) for followup services provided to former scholarship
recipients during the recipients first 3 years of teaching; or
``(2) to develop and implement effective mechanisms to ensure
that high-need local educational agencies and schools are able
effectively to recruit highly qualified teachers.
``(e) Additional Discretionary Uses of Funds.--In addition to the
uses described in subsection (d), each eligible applicant receiving a
grant under this section may use the grant funds--
``(1) to develop and implement effective mechanisms to
recruit into the teaching profession employees from--
``(A) high-demand industries, including technology
industries; and
``(B) the fields of science, mathematics, and
engineering;
``(2) to conduct outreach and coordinate with inner city and
rural secondary schools to encourage students to pursue
teaching as a career;
``(3) to develop and implement dual degree programs that
enable students at institutions of higher education to earn two
undergraduate degrees concurrently, one of such degrees being
in education and the other in the subject matter of the
student's choosing; and
``(4) to recruit high achieving students, bilingual students,
and other qualified candidates into early childhood education
programs.
``(f) Service Requirements.--
``(1) In general.--The Secretary shall establish such
requirements as the Secretary determines necessary to ensure
that recipients of scholarships under this section who complete
teacher education programs--
``(A) subsequently teach in a high-need local
educational agency for a period of time equivalent to--
``(i) one year; increased by
``(ii) the period for which the recipient
received scholarship assistance; or
``(B) repay the amount of the scholarship.
``(2) Use of repayments.--The Secretary shall use any such
repayments to carry out additional activities under this
section.
``(g) Priority.--The Secretary shall give priority under this section
to eligible applicants who provide an assurance that they will recruit
a high percentage of minority students to become highly qualified
teachers.
``SEC. 205. ADMINISTRATIVE PROVISIONS.
``(a) Duration; One-Time Awards; Payments.--
``(1) Duration.--
``(A) Eligible states and eligible applicants.--
Grants awarded to eligible States and eligible
applicants under this part shall be awarded for a
period not to exceed 3 years.
``(B) Eligible partnerships.--Grants awarded to
eligible partnerships under this part shall be awarded
for a period of 5 years.
``(2) One-time award.--An eligible partnership may receive a
grant under each of sections 203 and 204, as amended by the
College Access and Opportunity Act of 2005, only once.
``(3) Payments.--The Secretary shall make annual payments of
grant funds awarded under this part.
``(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.--In recommending applications to the
Secretary for funding under this part, the panel shall--
``(A) with respect to grants under section 202, give
priority to eligible States that--
``(i) have initiatives to reform State
teacher certification requirements that are
based on rigorous academic content,
scientifically based research, including
scientifically based reading research, and
challenging State student academic content
standards;
``(ii) have innovative reforms to hold
institutions of higher education with teacher
preparation programs accountable for preparing
teachers who are highly qualified and have
strong teaching skills; or
``(iii) have innovative efforts aimed at
reducing the shortage of highly qualified
teachers in high poverty urban and rural areas;
and
``(B) with respect to grants under section 203--
``(i) give priority to applications from
broad-based eligible partnerships that involve
businesses and community organizations; and
``(ii) take into consideration--
``(I) providing an equitable
geographic distribution of the grants
throughout the United States; and
``(II) the potential of the proposed
activities for creating improvement and
positive change.
``(3) Secretarial selection.--The Secretary shall determine,
based on the peer review process, which application 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.
``(c) Matching Requirements.--
``(1) State grants.--Each eligible State receiving a grant
under section 202 or 204 shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of the
grant (in cash or in kind) to carry out the activities
supported by the grant.
``(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 or 204 shall provide, from
non-Federal sources (in cash or in kind), an amount equal to 25
percent of the grant for the first year of the grant, 35
percent of the grant for the second year of the grant, and 50
percent of the grant for each succeeding year of the grant.
``(d) Limitation on Administrative Expenses.--An eligible State or
eligible partnership that receives a grant under this part may not use
more than 2 percent of the grant funds for purposes of administering
the grant.
``SEC. 206. ACCOUNTABILITY AND EVALUATION.
``(a) State Grant Accountability Report.--An eligible State that
receives a grant under section 202 shall submit an annual
accountability report to the Secretary and the authorizing committees.
Such report shall include a description of the degree to which the
eligible State, in using funds provided under such section, has made
substantial progress in meeting the following goals:
``(1) Percentage of highly qualified teachers.--Increasing
the percentage of highly qualified teachers in the State as
required by section 1119 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6319) and section 602 of the
Individuals with Disabilities Act (20 U.S.C. 1401).
``(2) Student academic achievement.--Increasing student
academic achievement for all students, which may be measured
through the use of value-added assessments, as defined by the
eligible State.
``(3) Raising standards.--Raising the State academic
standards required to enter the teaching profession as a highly
qualified teacher.
``(4) Initial certification or licensure.--Increasing success
in the pass rate for initial State teacher certification or
licensure, or increasing the numbers of qualified individuals
being certified or licensed as teachers through alternative
routes to certification and licensure.
``(5) Decreasing teacher shortages.--Decreasing shortages of
highly qualified teachers in poor urban and rural areas.
``(6) Increasing opportunities for research-based
professional development.--Increasing opportunities for
enhanced and ongoing professional development that--
``(A) improves the academic content knowledge of
teachers in the subject areas in which the teachers are
certified or licensed to teach or in which the teachers
are working toward certification or licensure to teach;
and
``(B) promotes strong teaching skills.
``(7) Technology integration.--Increasing the number of
teachers prepared effectively to integrate technology into
curricula and instruction and who use technology to collect,
manage, and analyze data to improve teaching, learning,
decisionmaking, and parental involvement for the purpose of
increasing student academic achievement.
``(b) Eligible Partnership Evaluation.--Each eligible partnership
applying for a grant under section 203 shall establish, and include in
the application submitted under section 203(c), an evaluation plan that
includes strong performance objectives. The plan shall include
objectives and measures for--
``(1) increased student achievement for all students, as
measured by the partnership;
``(2) increased teacher retention in the first 3 years of a
teacher's career;
``(3) increased success in the pass rate for initial State
certification or licensure of teachers;
``(4) increased percentage of highly qualified teachers; and
``(5) increasing the number of teachers trained effectively
to integrate technology into curricula and instruction and who
use technology to collect, manage, and analyze data to improve
teaching, learning, and decisionmaking for the purpose of
improving student academic achievement.
``(c) Revocation of Grant.--
``(1) Report.--Each eligible State or eligible partnership
receiving a grant under section 202 or 203 shall report
annually on the progress of the eligible State or eligible
partnership toward meeting the purposes of this part and the
goals, objectives, and measures described in subsections (a)
and (b).
``(2) Revocation.--
``(A) Eligible states and eligible applicants.--If
the Secretary determines that an eligible State or
eligible applicant is not making substantial progress
in meeting the purposes, goals, objectives, and
measures, as appropriate, by the end of the second year
of a grant under this part, then the grant payment
shall not be made for the third year of the grant.
``(B) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not making
substantial progress in meeting the purposes, goals,
objectives, and measures, as appropriate, by the end of
the third year of a grant under this part, then the
grant payments shall not be made for any succeeding
year of the grant.
``(d) Evaluation and Dissemination.--The Secretary shall evaluate the
activities funded under this part and report annually the Secretary's
findings regarding the activities to the authorizing committees. The
Secretary shall broadly disseminate successful practices developed by
eligible States and eligible partnerships under this part, and shall
broadly disseminate information regarding such practices that were
found to be ineffective.
``SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
``(a) State Report Card on the Quality of Teacher Preparation.--Each
State that receives funds under this Act shall provide to the Secretary
annually, in a uniform and comprehensible manner that conforms with the
definitions and methods established by the Secretary, a State report
card on the quality of teacher preparation in the State, both for
traditional certification or licensure programs and for alternative
certification or licensure programs, which shall include at least the
following:
``(1) A description of the teacher certification and
licensure assessments, and any other certification and
licensure requirements, used by the State.
``(2) The standards and criteria that prospective teachers
must meet in order to attain initial teacher certification or
licensure and to be certified or licensed to teach particular
subjects or in particular grades within the State.
``(3) A description of the extent to which the assessments
and requirements described in paragraph (1) are aligned with
the State's standards and assessments for students.
``(4) The percentage of students who have completed at least
50 percent of the requirements for a teacher preparation
program at an institution of higher education or alternative
certification program and who have taken and passed each of the
assessments used by the State for teacher certification and
licensure, and the passing score on each assessment that
determines whether a candidate has passed that assessment.
``(5) For students who have completed at least 50 percent of
the requirements for a teacher preparation program at an
institution of higher education or alternative certification
program, and who have taken and passed each of the assessments
used by the State for teacher certification and licensure, each
such institution's and each such program's average raw score,
ranked by teacher preparation program, which shall be made
available widely and publicly.
``(6) A description of each State's alternative routes to
teacher certification, if any, and the number and percentage of
teachers certified through each alternative certification route
who pass State teacher certification or licensure assessments.
``(7) For each State, a description of proposed criteria for
assessing the performance of teacher preparation programs in
the State, including indicators of teacher candidate skills,
academic content knowledge, and evidence of gains in student
academic achievement.
``(8) For each teacher preparation program in the State, the
number of students in the program, the number of minority
students in the program, the average number of hours of
supervised practice teaching required for those in the program,
and the number of full-time equivalent faculty and students in
supervised practice teaching.
``(b) Report of the Secretary on the Quality of Teacher
Preparation.--
``(1) Report card.--The Secretary shall provide to Congress,
and publish and make widely available, a report card on teacher
qualifications and preparation in the United States, including
all the information reported in paragraphs (1) through (8) of
subsection (a). Such report shall identify which eligible
States received a grant under this part, and the States in
which eligible partnerships receiving grants are located. Such
report shall be published and made available annually.
``(2) Report to congress.--The Secretary shall report to
Congress--
``(A) a comparison of States' efforts to improve
teaching quality; and
``(B) regarding the national mean and median scores
on any standardized test that is used in more than one
State for teacher certification or licensure.
``(3) Special rule.--In the case of programs with fewer than
10 students who have completed at least 50 percent of the
requirements for a teacher preparation program taking any
single initial teacher certification or licensure assessment
during an academic year, the Secretary shall collect and
publish information with respect to an average pass rate on
State certification or licensure assessments taken over a 3-
year period.
``(c) 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.
``(d) Institution and Program Report Cards on Quality of Teacher
Preparation.--
``(1) Report card.--Each institution of higher education or
alternative certification program that conducts a teacher
preparation program 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, both for traditional certification or licensure
programs and for alternative certification or licensure
programs, the following information:
``(A) Pass rate.--(i) For the most recent year for
which the information is available, the pass rate of
each student who has completed at least 50 percent of
the requirements for the teacher preparation program on
the teacher certification or licensure assessments of
the State in which the institution is located, but only
for those students who took those assessments within 3
years of receiving a degree from the institution or
completing the program.
``(ii) A comparison of the institution or program's
pass rate for students who have completed at least 50
percent of the requirements for the teacher preparation
program with the average pass rate for institutions and
programs in the State.
``(iii) A comparison of the institution or program's
average raw score for students who have completed at
least 50 percent of the requirements for the teacher
preparation program with the average raw scores for
institutions and programs in the State.
``(iv) In the case of programs with fewer than 10
students who have completed at least 50 percent of the
requirements for a teacher preparation program taking
any single initial teacher certification or licensure
assessment during an academic year, the institution
shall collect and publish information with respect to
an average pass rate on State certification or
licensure assessments taken over a 3-year period.
``(B) Program information.--The number of students in
the program, the average number of hours of supervised
practice teaching required for those in the program,
and the number of full-time equivalent faculty and
students in supervised practice teaching.
``(C) Statement.--In States that require approval or
accreditation of teacher education programs, a
statement of whether the institution's program is so
approved or accredited, and by whom.
``(D) Designation as low-performing.--Whether the
program has been designated as low-performing by the
State under section 208(a).
``(2) Requirement.--The information described in paragraph
(1) shall be reported through publications such as school
catalogs and promotional materials sent to potential
applicants, secondary school guidance counselors, and
prospective employers of the institution's program graduates,
including materials sent by electronic means.
``(3) Fines.--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to exceed
$25,000 on an institution of higher education for failure to
provide the information described in this subsection in a
timely or accurate manner.
``(e) Data Quality.--Either--
``(1) the Governor of the State; or
``(2) in the case of a State for which the constitution or
law of such State designates another individual, entity, or
agency in the State to be responsible for teacher certification
and preparation activity, such individual, entity, or agency;
shall attest annually, in writing, as to the reliability, validity,
integrity, and accuracy of the data submitted pursuant to this section.
``SEC. 208. STATE FUNCTIONS.
``(a) State Assessment.--In order to receive funds under this Act, a
State shall have in place a procedure to identify and assist, through
the provision of technical assistance, low-performing programs of
teacher preparation within institutions of higher education. Such State
shall provide the Secretary an annual list of such low-performing
institutions that includes an identification of those institutions at
risk of being placed on such list. Such levels of performance shall be
determined solely by the State and may include criteria based upon
information collected pursuant to this part. Such assessment shall be
described in the report under section 207(a). A State receiving Federal
funds under this title shall develop plans to close or reconstitute
underperforming programs of teacher preparation within institutions of
higher education.
``(b) Termination of Eligibility.--Any institution of higher
education that offers a program of teacher preparation in which the
State has withdrawn the State's approval or terminated the State's
financial support due to the low performance of the institution's
teacher preparation 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 of Education;
and
``(2) shall not be permitted to accept or enroll any student
who receives aid under title IV of this Act in the
institution's teacher preparation program.
``SEC. 209. GENERAL PROVISIONS.
``(a) Methods.--In complying with sections 207 and 208, 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 allow identification of individuals.
``(b) Special Rule.--For each State in which there are no State
certification or licensure assessments, or for States that do not set
minimum performance levels on those assessments--
``(1) the Secretary shall, 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, the
Secretary shall use such data to carry out requirements of this
part related to assessments or pass rates.
``(c) Limitations.--
``(1) Federal control prohibited.--Nothing in this part 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
part.
``(2) No change in state control encouraged or required.--
Nothing in this part 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.
``(3) National system of teacher certification prohibited.--
Nothing in this part shall be construed to permit, allow,
encourage, or authorize the Secretary to establish or support
any national system of teacher certification.
``SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$300,000,000 for fiscal year 2006 and such sums as may be necessary for
each of the 5 succeeding fiscal years, of which--
``(1) 45 percent shall be available for each fiscal year to
award grants under section 202;
``(2) 45 percent shall be available for each fiscal year to
award grants under section 203; and
``(3) 10 percent shall be available for each fiscal year to
award grants under section 204.''.
SEC. 202. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.
(a) Eligibility.--Section 222(a)(3)(D) (20 U.S.C. 1042(a)(3)(D)) is
amended by inserting ``nonprofit telecommunications entity,'' after
``community-based organization,''.
(b) Permissible Uses of Funds.--Section 223(b)(1)(E) of the Higher
Education Act of 1965 (20 U.S.C. 1043(b)(1)(E)) is amended to read as
follows:
``(E) to use technology to collect, manage, and
analyze data to improve teaching, learning, and
decisionmaking for the purpose of increasing student
academic achievement.''.
(c) Authorization of Appropriations.--Section 224 (20 U.S.C. 1044) is
amended by striking ``each of fiscal years 2002 and 2003.'' and
inserting ``fiscal year 2006 and each of the 5 succeeding fiscal
years.''.
SEC. 203. CENTERS OF EXCELLENCE.
Title II (20 U.S.C. 1021 et seq.) is amended by adding at the end the
following:
``PART C--CENTERS OF EXCELLENCE
``SEC. 231. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this part are--
``(1) to help recruit and prepare teachers, including
minority teachers, to meet the national demand for a highly
qualified teacher in every classroom; and
``(2) to increase opportunities for Americans of all
educational, ethnic, class, and geographic backgrounds to
become highly qualified teachers.
``(b) Definitions.--As used in this part:
``(1) Eligible institution.--The term `eligible institution'
means--
``(A) an institution of higher education that has a
teacher preparation program that meets the requirements
of section 203(b)(2) 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)); or
``(v) a Native Hawaiian-serving institution
(as defined in section 317(b));
``(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 232 is located at an
institution described in subparagraph (A).
``(2) Highly qualified.--The term `highly qualified' when
used with respect to an individual means that the individual is
highly qualified as determined under section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)
or section 602 of the Individuals with Disabilities Education
Act (20 U.S.C. 1401).
``(3) 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 (20 U.S.C. 6368).
``(4) Scientifically based research.--The term
`scientifically based research' has the meaning given such term
in section 9101 of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7801).
``SEC. 232. 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 part
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
based research, and are able to use advanced technology
effectively in the classroom, including use for instructional
techniques to improve student academic achievement, by--
``(A) retraining faculty; and
``(B) designing (or redesigning) teacher preparation
programs that--
``(i) prepare teachers to close student
achievement gaps, are based on rigorous
academic content, scientifically based research
(including scientifically based reading
research), and challenging State student
academic content 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; or
``(B) induction and support for teachers and
principals during their first 3 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.
``(5) Disseminating information on effective practices for
teacher preparation and successful teacher certification and
licensure assessment preparation strategies.
``(6) Activities authorized under sections 202, 203, and 204.
``(c) Application.--Any eligible institution desiring a grant under
this section shall submit an application to the Secretary at such a
time, in such a manner, and accompanied by such information the
Secretary may require.
``(d) Minimum Grant Amount.--The minimum amount of each grant under
this part shall be $500,000.
``(e) Limitation on Administrative Expenses.--An eligible institution
that receives a grant under this part may not use more than 2 percent
of the grant funds for purposes of administering the grant.
``(f) Regulations.--The Secretary shall prescribe such regulations as
may be necessary to carry out this part.
``SEC. 233. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$10,000,000 for fiscal year 2006 and such sums as may be necessary for
each of the 5 succeeding fiscal years.''.
SEC. 204. TEACHER INCENTIVE FUND PROGRAM.
Title II (20 U.S.C. 1021 et seq.), as amended by section 203 of this
Act, is further amended by adding at the end the following:
``PART D--TEACHER INCENTIVE FUND PROGRAM
``SEC. 241. PURPOSE; DEFINITIONS.
``(a) Purpose.--The purpose of this part is to assist States, local
educational agencies, and non-profit or for-profit organizations to
develop and implement, or expand, innovative compensation systems to
provide financial rewards for teachers and principals who raise student
academic achievement and close the achievement gap, especially in the
highest-need local educational agencies.
``(b) Definitions.--For purposes of this part:
``(1) Eligible entity.--The term `eligible entity' means--
``(A) a local educational agency, including a charter
school that is a local educational agency;
``(B) a State educational agency, or other State
agency designated by the chief executive of the State;
or
``(C) a partnership of--
``(i) one or more agencies described in
subparagraph (A) or (B), or both; and
``(ii) at least one non-profit or for-profit
organization.
``(2) High-need local educational agency.--The term `high-
need local educational agency' has the meaning given that term
in section 201.
``SEC. 242. TEACHER INCENTIVE FUND GRANTS.
``(a) Program Authorized.--
``(1) In general.--From the amounts appropriated to carry out
this part, the Secretary is authorized to award competitive
grants of up to 5 years in length to eligible entities to
develop and implement, or expand, a comprehensive performance-
based compensation system for teachers and principals for one
or more local educational agencies.
``(2) Comprehensive performance-based compensation systems.--
A comprehensive performance-based compensation system developed
and implemented, or expanded with funds under this part--
``(A) shall differentiate levels of compensation
primarily on the basis of increases in student academic
achievement; and
``(B) may--
``(i) differentiate levels of compensation on
the basis of high-quality teachers' and
principals' employment and success in hard-to-
staff schools or high-need subject areas; and
``(ii) recognize teachers' and principals'
skills and knowledge as demonstrated through--
``(I) successful fulfillment of
additional responsibilities or job
functions; and
``(II) evidence of high achievement
and mastery of content knowledge and
teaching skills.
``(b) Use of Funds.--A grantee shall use grant funds provided under
this part only to design and implement, or expand, in collaboration
with teachers, principals, other school administrators, and members of
the public, a compensation system consistent with the requirements of
this part. Authorized activities under this part may include the
following:
``(1) Developing appraisal systems that reflect clear and
fair measures of student academic achievement.
``(2) Conducting outreach within the local educational agency
(or agencies) or the State to gain input on how to construct
the appraisal system and to develop support for it.
``(3) Paying, as part of a comprehensive performance-based
compensation system, bonuses and increased salaries to teachers
and principals who raise student academic achievement, so long
as the grantee uses an increasing share of non-Federal funds to
pay these monetary rewards each year of the grant.
``(4) Paying, as part of a comprehensive performance-based
compensation system, additional bonuses to teachers who both
raise student academic achievement and either teach in high-
poverty schools or teach subjects that are difficult to staff,
or both, so long as the grantee uses an increasing share of
non-Federal funds to pay these monetary rewards each year of
the grant.
``(5) Paying, as part of a comprehensive performance-based
compensation system, additional bonuses to principals who both
raise student academic achievement and serve in high-poverty
schools, so long as the grantee uses an increasing share of
non-Federal funds to pay these monetary rewards each year of
the grant.
``(c) Applications.--To be eligible to receive a grant under this
part, an eligible entity shall submit an application that includes--
``(1) a description of the local educational agency or local
educational agencies to be served by the project, including
such demographic information as the Secretary may request;
``(2) information on student academic achievement and the
quality of the teachers and principals in the local educational
agency or agencies to be served by the project;
``(3) a description of the performance-based teacher and
principal compensation system that the applicant proposes to
develop and implement or expand;
``(4) a description of how the applicant will use grant funds
under this part in each year of the grant;
``(5) an explanation of how the applicant will meet the
requirement in subsection (b)(3) and how the grantee will
continue its performance-based compensation system after the
grant ends;
``(6) a description of the support and commitment from
teachers, the community or local educational agency or agencies
for the development and implementation, or expansion, of a
performance-based teacher and principal compensation system;
``(7) a description of how teacher, principal and student
performance will be measured and the baseline measurement
units; and
``(8) a description, if applicable, of how the applicant will
define the term `high-quality' for the purposes of subsection
(a)(2)(B)(i), through the use of measurable indicators, such as
effectiveness in raising student academic achievement, or
demonstrated mastery of subject matter knowledge.
``(d) Priority.--The Secretary shall give priority to applications
for projects that would establish comprehensive performance-based
compensation systems in high-need local educational agencies.
``SEC. 243. EVALUATIONS.
``The Secretary shall conduct an independent evaluation of the
program under this part and may use up to 1 percent of the funds made
available under this part or $1,000,000, whichever is less, for any
fiscal year for the cost of the evaluation.
``SEC. 244. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this part
$100,000,000 for fiscal year 2006 and such sums as may be necessary for
each of the 5 succeeding fiscal years.''.
SEC. 205. TRANSITION.
The Secretary of Education shall take such actions as the Secretary
determines to be appropriate to provide for the orderly implementation
of this title.
TITLE III--INSTITUTIONAL AID
SEC. 301. TITLE III GRANTS FOR AMERICAN INDIAN TRIBALLY CONTROLLED
COLLEGES AND UNIVERSITIES.
(a) Eligible Institutions.--Subsection (b) of section 316 (20 U.S.C.
1059c(b)) is amended to read as follows:
``(b) Definitions.--
``(1) Eligible institutions.--For purposes of this section,
Tribal Colleges and Universities are the following:
``(A) any of the following institutions that qualify
for funding under the Tribally Controlled College or
University Assistance Act of 1978 or is listed in
Equity in Educational Land Grant Status Act of 1994 (7
U.S.C. 301 note): Bay Mills Community College;
Blackfeet Community College; Cankdeska Cikana Community
College; Chief Dull Knife College; College of Menominee
Nation; Crownpoint Institute of Technology; Dine
College; D-Q University; Fond du Lac Tribal and
Community College; Fort Belknap College; Fort Berthold
Community College; Fort Peck Community College; Haskell
Indian Nations University; Institute of American Indian
and Alaska Native Culture and Arts Development; Lac
Courte Oreilles Ojibwa Community College; Leech Lake
Tribal College; Little Big Horn College; Little Priest
Tribal College; Nebraska Indian Community College;
Northwest Indian College; Oglala Lakota College;
Saginaw Chippewa Tribal College; Salish Kootenai
College; Si Tanka University--Eagle Butte Campus; Sinte
Gleska University; Sisseton Wahpeton Community College;
Sitting Bull College; Southwestern Indian Polytechnic
Institute; Stone Child College; Tohono O'Odham
Community College; Turtle Mountain Community College;
United Tribes Technical College; and White Earth Tribal
and Community College; and
``(B) any other institution that meets the definition
of tribally controlled college or university in section
2 of the Tribally Controlled College or University
Assistance Act of 1978, and meets all other
requirements of this section.
``(2) Indian.--The term `Indian' has the meaning given the
term in section 2 of the Tribally Controlled College or
University Assistance Act of 1978.''.
(b) Distance Learning.--Subsection (c)(2) of such section is
amended--
(1) by amending subparagraph (B) to read as follows:
``(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;'';
(2) in subparagraph (C), by inserting before the semicolon at
the end the following: ``, or advanced degrees in tribal
governance or tribal public policy'';
(3) in subparagraph (D), by inserting before the semicolon at
the end the following: ``, in tribal governance, or tribal
public policy'';
(4) by striking ``and'' at the end of subparagraph (K);
(5) by redesignating subparagraph (L) as subparagraph (M);
and
(6) by inserting after subparagraph (K) the following new
subparagraph:
``(L) developing or improving facilities for Internet
use or other distance learning academic instruction
capabilities; and''.
(c) Application and Allotment.--Subsection (d) of such section is
amended to read as follows:
``(d) Application and Allotment.--
``(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.--Any Tribal College or University desiring
to receive assistance under this section shall submit an
application to the Secretary at such time, and in such manner,
as the Secretary may reasonably require.
``(3) Allotments to institutions.--
``(A) Allotment: pell grant basis.--From the amount
appropriated to carry out this section for any fiscal
year, the Secretary shall allot to each eligible
institution a sum which bears the same ratio to one-
half that amount as the number of Pell Grant recipients
in attendance at such institution at the end of the
award year preceding the beginning of that fiscal year
bears to the total number of Pell Grant recipients at
all eligible institutions.
``(B) Allotment: degree and certificate basis.--From
the amount appropriated to carry out this section for
any fiscal year, the Secretary shall allot to each
eligible institution a sum which bears the same ratio
to one-half that amount as the number of degrees or
certificates awarded by such institution during the
preceding academic year bears to the total number of
degrees or certificates at all eligible institutions.
``(C) Minimum grant.--Notwithstanding subparagraphs
(A) and (B), the amount allotted to each institution
under this section shall not be less than $400,000.
``(4) Special rules.--
``(A) Concurrent funding.--For the purposes of this
part, no Tribal College or University that is eligible
for and receives funds under this section shall
concurrently receive funds under other provisions of
this part or part B.
``(B) Exemption.--Section 313(d) shall not apply to
institutions that are eligible to receive funds under
this section.''.
SEC. 302. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
(a) Distance Learning.--Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is
amended--
(1) by amending subparagraph (B) to read as follows:
``(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;'';
(2) in subparagraph (C), by inserting before the semicolon at
the end the following: ``, or advanced degrees in tribal
governance or tribal public policy'';
(3) in subparagraph (D), by inserting before the semicolon at
the end the following: ``, in tribal governance, or tribal
public policy'';
(4) by striking ``and'' at the end of subparagraph (G);
(5) by striking the period at the end of subparagraph (H) and
inserting a semicolon; and
(6) by inserting after subparagraph (H) the following new
subparagraph:
``(I) development or improvement of facilities for
Internet use or other distance learning academic
instruction capabilities; and''.
(b) Endowment Funds.--Section 317(c) is further amended by adding at
the end the following new paragraph:
``(3) Endowment funds.--
``(A) In general.--An Alaska Native or Native
Hawaiian-serving 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),
the institution shall provide to the endowment fund
from non-Federal funds an amount equal to the Federal
funds used in accordance with subparagraph (A), for the
establishment or increase of the endowment fund.
``(C) Applicability of other provisions.--The
provisions of part C regarding the establishment or
increase of an endowment fund, that the Secretary
determines are not inconsistent with this paragraph,
shall apply to funds used under subparagraph (A).''.
(c) Application Process.--Section 317(d)(2) is amended by striking
``Such application shall include--'' and all that follows through ``may
require.''.
SEC. 303. GRANTS TO PART B INSTITUTIONS.
(a) Use of Funds.--
(1) Facilities and equipment.--
(A) Undergraduate institutions.--Paragraph (2) of
section 323(a) (20 U.S.C. 1062(a)) is amended to read
as follows:
``(2) 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) Graduate and professional schools.--Paragraph (2)
of section 326(c) is amended to read as follows:
``(2) 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;''.
(2) Outreach and collaboration.--Paragraph (11) of section
323(a) is amended to read as follows:
``(11) Establishing community outreach programs and
collaborative partnerships between part B institutions and
local elementary or secondary schools. Such partnerships may
include mentoring, tutoring, or other instructional
opportunities that will boost student academic achievement and
assist elementary and secondary school students in developing
the academic skills and the interest to pursue postsecondary
education.''.
(b) Technical Assistance.--Section 323 (20 U.S.C. 1062) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Technical Assistance.--
``(1) In general.--An institution may not use more than 2
percent of the grant funds provided under this part to secure
technical assistance services.
``(2) Technical assistance services.--Technical assistance
services may include assistance with enrollment management,
financial management, and strategic planning.
``(3) Report.--The institution shall report to the Secretary
on an annual basis, in such form as the Secretary requires, on
the use of funds under this subsection.''.
(c) Distance Learning.--Section 323(a)(2) (20 U.S.C. 1062(a)(2)) (as
amended by subsection (a)(1)(A)) is further amended by inserting
``development or improvement of facilities for Internet use or other
distance learning academic instruction capabilities and'' after
``including''.
(d) Minimum Grants.--Section 324(d)(1) (20 U.S.C. 1063(d)(1)) is
amended by inserting before the period at the end the following: ``,
except that, if the amount appropriated to carry out this part for any
fiscal year exceeds the amount required to provide to each institution
an amount equal to the total amount received by such institution under
subsections (a), (b), and (c) for the preceding fiscal year, then the
amount of such excess appropriation shall first be applied to increase
the minimum allotment under this subsection to $750,000''.
(e) Eligible Graduate or Professional Schools.--
(1) General authority.--Section 326(a)(1) (20 U.S.C.
1063b(a)(1)) is amended--
(A) by inserting ``(A)'' after ``subsection (e)
that'';
(B) by inserting before the period at the end the
following: ``, (B) 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, and (C) according to such
an agency or association, is in good standing''.
(2) Eligible institutions.--Section 326(e)(1) (20 U.S.C.
1063b(e)(1)) is amended--
(A) by striking ``and'' at the end of subparagraph
(Q);
(B) by striking the period at the end of subparagraph
(R) and inserting a semicolon; and
(C) by adding at the end the following new
subparagraphs:
``(S) Alabama State University qualified graduate
program;
``(T) Prairie View A & M University qualified
graduate program;
``(U) Coppin State University qualified graduate
program; and
``(V) Delaware State University qualified graduate
program.''.
(3) Conforming amendment.--Section 326(e)(3) (20 U.S.C.
1063b(e)(3)) is amended--
(A) by striking ``1998'' and inserting ``2005''; and
(B) by striking ``(Q) and (R)'' and inserting ``(S),
(T), (U), and (V)''.
(f) Professional or Graduate Institutions.--Section 326(f) (20 U.S.C.
1063b(f)) is amended--
(1) in paragraph (1)--
(A) by striking ``$26,600,000'' and inserting
``$54,500,000''; 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 ``$54,500,000, but not in
excess of $58,500,000''; and
(B) by striking ``subparagraphs (Q) and (R)'' and
inserting ``subparagraphs (S), (T), (U), and (V)''; and
(3) in paragraph (3)--
(A) by striking ``$28,600,000'' and inserting
``$58,500,000''; and
(B) by striking ``(R)'' and inserting ``(V)''.
(g) Hold Harmless.--Section 326(g) (20 U.S.C. 1063b(g)) is amended by
striking ``1998'' each place it appears and inserting ``2005''.
SEC. 304. TECHNICAL AMENDMENTS.
(a) Amendments.--Title III is further amended--
(1) in section 311(c) (20 U.S.C. 1057(c))--
(A) by redesignating paragraphs (7) through (12) as
paragraphs (8) through (13), respectively; and
(B) by inserting after paragraph (6) the following:
``(7) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.'';
(2) in section 312(b)(1)(A) (20 U.S.C. 1058(b)(1)(A)), by
striking ``subsection (c)'' and inserting ``subsection (d)'';
(3) in section 312(b)(1)(F) (20 U.S.C. 1058(b)(1)(F)), by
inserting ``which is'' before ``located'';
(4) in section 312(b)(1) (20 U.S.C. 1058(b)(1)), by
redesignating subparagraphs (E) and (F) as subparagraphs (F)
and (G), respectively, and by inserting after subparagraph (D)
the following new subparagraph:
``(E) which provides a program that is not less than
a 2-year educational program that is acceptable for
full credit toward a bachelor's degree;'';
(5) in section 316(c)(2) (20 U.S.C. 1059c(c)(2))--
(A) by redesignating subparagraphs (G) through (M)
(as redesignated by section 301(b)(2) of this Act) as
subparagraphs (H) through (N), respectively;
(B) by inserting after subparagraph (F) the
following:
``(G) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;''; and
(C) in subparagraph (N), as redesignated by
subparagraph (A), by striking ``subparagraphs (A)
through (K)'' and inserting ``subparagraphs (A) through
(M)'';
(6) in section 317(c)(2) (20 U.S.C. 1059d(c)(2)), by
inserting after subparagraph (I) (as added by section 302(a)(6)
of this Act) the following:
``(J) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents.'';
(7) in section 323(a) (20 U.S.C. 1062(a))--
(A) by striking ``section 360(a)(2)'' and inserting
``section 399(a)(2)'';
(B) by redesignating paragraphs (7) through (12) as
paragraphs (8) through (13), respectively; and
(C) by inserting after paragraph (6) the following:
``(7) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.'';
(8) in section 324(d)(2) (20 U.S.C. 1063(d)(2)), by striking
``section 360(a)(2)(A)'' and inserting ``section
399(a)(2)(A)'';
(9) in section 326(e)(1) (20 U.S.C. 1063b(e)(1)), in the
matter preceding subparagraph (A), by inserting a colon after
``the following'';
(10) in section 327(b) (20 U.S.C. 1063c(b)), by striking
``initial'';
(11) in section 342(5)(C) (20 U.S.C. 1066a(5)(C))--
(A) by inserting a comma after ``equipment'' the
first place it appears; and
(B) by striking ``technology,,'' and inserting
``technology,'';
(12) in section 343(e) (20 U.S.C. 1066b(e)), by inserting
after the subsection designation the following: ``Sale of
Qualified Bonds.--'';
(13) in section 351(a) (20 U.S.C. 1067a(a)), by striking ``of
1979'';
(14) in section 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by
striking ``subparagraph (E)'' and inserting ``subparagraph
(D)''; and
(15) in section 396 (20 U.S.C. 1068e), by striking ``section
360'' and inserting ``section 399''.
(b) Repeal.--Section 1024 (20 U.S.C. 1135b-3), as transferred by
section 301(a)(5) of the Higher Education Amendments of 1998 (Public
Law 105-244; 112 Stat. 1636), is repealed.
SEC. 305. TITLE III AUTHORIZATIONS.
Section 399(a) (20 U.S.C. 1068h(a)) is amended--
(1) by striking ``1999'' each place it appears and inserting
``2006'';
(2) by striking ``4 succeeding fiscal years'' each place it
appears and inserting ``5 succeeding fiscal years'';
(3) in paragraph (1)--
(A) by striking ``$10,000,000'' in subparagraph (B)
and inserting ``$23,800,000''; and
(B) by striking ``$5,000,000'' in subparagraph (C)
and inserting ``$11,900,000'';
(4) in paragraph (2)--
(A) by striking ``$135,000,000'' in subparagraph (A)
and inserting ``$241,000,000''; and
(B) by striking ``$35,000,000'' in subparagraph (B)
and inserting ``$59,000,000''; and
(5) in paragraph (4), by striking ``$110,000'' and inserting
``$212,000''.
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS
SEC. 401. PELL GRANTS.
(a) Extension of Authority.--Section 401(a) (20 U.S.C. 1070a(a)) is
amended by striking ``2004'' and inserting ``2012''.
(b) Direct Payment.--Section 401(a) (20 U.S.C. 1070a(a)) is further
amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as paragraph (2).
(c) Maximum Pell Grant Increase.-- Paragraph (2)(A) of section 401(b)
20 U.S.C. 1070a(b)(2)(A)) is amended to read as follows:
``(2)(A) The amount of the Federal Pell Grant for a student eligible
under this part shall be $6,000 for academic years 2006-2007 through
2012-2013, less an amount equal to the amount determined to be the
expected family contribution with respect to that student for that
year.''.
(d) Tuition Sensitivity.--Section 401(b) is further amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) through (8) as paragraphs
(3) through (7), respectively.
(e) Multiple Grants.--Paragraph (5) of section 401(b) (as
redesignated by subsection (d)(2)) is amended to read as follows:
``(5) Year-round pell grants.--
``(A) In general.--The Secretary shall, for students
enrolled full time in a baccalaureate or associate's
degree program of study at an eligible institution,
award such students two Pell grants during a single
award year to permit such students to accelerate
progress toward their degree objectives by enrolling in
academic programs for 12 months rather than 9 months.
``(B) Limitation.--The Secretary shall limit the
awarding of additional Pell grants under this paragraph
in a single award year to students attending--
``(i) baccalaureate degree granting
institutions that have a graduation rate as
reported by the Integrated Postsecondary
Education Data System for the 4 preceding
academic years of at least 30 percent; or
``(ii) two-year institutions that have a
graduation rate as reported by the Integrated
Postsecondary Education Data Systems, in at
least one of the last 3 years for which data is
available, that is above the average for the
applicable year for the institution's type and
control.
``(C) Evaluation.--The Secretary shall conduct an
evaluation of the program under this paragraph and
submit to the Congress an evaluation report no later
than October 1, 2011.
``(D) Regulations required.--The Secretary shall
promulgate regulations implementing this paragraph.''.
(f) Ineligibility Based on Involuntary Civil Commitment for Sexual
Offenses.--Paragraph (7) of section 401(b) (as redesignated by
subsection (d)(2)) is amended 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 sexual offense (as
determined under regulations of the Secretary)''.
(g) Pell Grant Eligibility Duration.--Section 401(c) (20 U.S.C.
1070a(c)) is amended--
(1) in paragraph (1)--
(A) by striking ``The period'' and inserting in lieu
thereof ``Subject to paragraph (5), the period''; and
(B) by striking the period at the end thereof and
inserting ``but shall be subject to the limitation
described in paragraph (5).''; and
(2) by adding at the end the following new paragraph:
``(5) The period during which a student may receive Federal Pell
Grants shall not exceed the equivalent of 18 semesters or 27 quarters
in duration (as determined by the Secretary by regulation), without
regard to whether the student is enrolled on a full-time basis during
any portion of that period, and including any period of time for which
the student received Federal Pell Grants prior to the date of enactment
of the College Access and Opportunity Act of 2005.''.
(h) Eligibility Period.--Section 401(c)(2) (20 U.S.C. 1070a(c)(2)) is
amended by inserting ``, for not more than one academic year,'' after
``which are determined by the institution'' in the first sentence.
(i) Pell Grants Plus: Achievement Grants for State Scholars
Program.--
(1) Amendment.--Subpart 1 of part A of title IV is amended by
inserting after section 401 (20 U.S.C. 1070a) the following new
section:
``SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.
``(a) Grants Authorized.--From sums appropriated to carry out section
401, the Secretary shall establish a program to award Pell Grants Plus
to students who--
``(1) have successfully completed a rigorous high school
program of study established by a State or local educational
agency in consultation with a State coalition assisted by the
Center for State Scholars;
``(2) are enrolled full-time in the first academic year of
undergraduate education, and have not been previously enrolled
in a program of undergraduate education; and
``(3) are eligible to receive Federal Pell Grants for the
year in which the grant is awarded.
``(b) Amount of Grants.--
``(1) In general.--Except as provided in paragraph (2), the
amount of the grant awarded under this section shall be $1,000.
``(2) Assistance not to exceed cost of attendance.--A grant
awarded under this section to any student, in combination with
the Federal Pell Grant assistance and other student financial
assistance available to such student, may not exceed the
student's cost of attendance.
``(c) Selection of Recipients.--
``(1) Procedures established by regulation.--The Secretary
shall establish by regulation procedures for the determination
of eligibility of students for the grants awarded under this
section. Such procedures shall include measures to ensure that
eligibility is determined in a timely and accurate manner
consistent with the requirements of section 482 and the
submission of the financial aid form required by section 483.
``(2) Required information.--Each eligible student desiring
an award under this section shall submit at such time and in
such manner such information as the Secretary may reasonably
require.
``(3) Continuation of grant requirements.--In order for a
student to continue to be eligible to receive an award under
this section for the second year of undergraduate education,
the eligible student must--
``(A) maintain eligibility to receive a Federal Pell
Grant for that year;
``(B) obtain a grade point average of at least 3.0
(or the equivalent as determined under regulations
prescribed by the Secretary) for the first year of
undergraduate education; and
``(C) be enrolled full-time and fulfill the
requirements for satisfactory progress described in
section 484(c).
``(d) Evaluation, and Reports.--The Secretary shall monitor the
progress, retention, and completion rates of the students to whom
awards are provided under this section. In doing so, the Secretary
shall evaluate the impact of the Pell Grants Plus Program and report,
not less than biennially, to the authorizing committees of the House of
Representatives and the Senate.''.
(2) Conforming amendment.--Chapter 3 of subpart 2 of part A
of title IV (20 U.S.C. 1070a-31 through 1070a-35) is repealed.
SEC. 402. TRIO PROGRAMS.
(a) Duration of Grants.--
(1) Amendment.--Section 402A(b)(2) (20 U.S.C. 1070a-11(b)(2))
is amended to read as follows:
``(2) Duration.--Grants or contracts awarded under this
chapter shall be awarded for a period of 5 years, except that--
``(A) grants under section 402G shall be awarded for
a period of 2 years; and
``(B) grants under section 402H shall be awarded for
a period determined by the Secretary.''.
(2) Transition to synchronous grant periods.--Notwithstanding
section 402A(b)(2) of the Higher Education Act of 1965 (as in
effect both prior to and after the amendment made by paragraph
(1) of this subsection), the Secretary of Education may
continue an award made before the date of enactment of this Act
under section 402B, 402C, 402D, 402E, or 402F of such Act as
necessary to permit all the awards made under such a section to
expire at the end of the same fiscal year, and thereafter to
expire at the end of 5 years as provided in the amendment made
by paragraph (1) of this subsection.
(b) Minimum Grants.--Section 402A(b)(3) (20 U.S.C. 1070a-11(b)(3)) is
amended to read as follows:
``(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, individual grants for programs
authorized under this chapter shall be no less than $200,000,
except that individual grants for programs authorized under
section 402G shall be no less than $170,000.''.
(c) Prior Experience; Novice Applicants.--Section 402A(c)(2) (20
U.S.C. 1070a-11(c)(2)) is amended--
(1) by striking ``In making grants'' and inserting ``(A)
Subject to subparagraph (B), in making grants''; and
(2) by adding at the end the following new subparagraph:
``(B) From the amount available under subsection (h) for a
program under this chapter (other than a program under section
402G or 402H) for any fiscal year in which the Secretary
conducts a competition for the award of grants or contracts
under such program, the Secretary shall reserve 10 percent of
such available amount for purposes of funding applications from
novice applicants. If the Secretary determines that there are
an insufficient number of qualified novice applicants to
utilize the amount so reserved, the Secretary shall restore the
unutilized remainder of the amount reserved for use by
applicants qualifying under subparagraph (A).''.
(d) Application Status.--Section 402A(c) (20 U.S.C. 1070a-11(c)) is
amended by striking paragraph (7).
(e) Documentation of Status.--Section 402A(e) (20 U.S.C. 1070a-11(e))
is amended by striking ``(g)(2)'' each place it appears in paragraphs
(1) and (2) and inserting ``(i)(4)''.
(f) Homeless and Unaccompanied Youth.--Section 402A(e) is further
amended by adding at the end the following new paragraph:
``(3) Notwithstanding this subsection and subsection (i)(4),
individuals who are homeless or unaccompanied youth 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 of this chapter.''.
(g) Authorization of Appropriations.--Section 402A(f) (20 U.S.C.
1070a-11(f)) is amended by striking ``$700,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4 succeeding
fiscal years'' and inserting ``$836,500,000 for fiscal year 2006 and
such sums as may be necessary for each of the 5 succeeding fiscal
years''.
(h) Definition.--Section 402A(g) (20 U.S.C. 1070a-11(g)) is amended--
(1) in paragraph (3), by striking ``by reason of such
individual's age'';
(2) by redesignating paragraphs (1) through (4) as paragraphs
(3) through (6), respectively; and
(3) by inserting before paragraph (3), as redesignated, the
following:
``(1) Different campus.--The term `different campus' means an
institutional site 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, with respect to whom an entity
seeks to serve through an application for funding under this
chapter, that--
``(A) is separate and distinct from any other
population that the entity seeks to serve through an
application for funding under this chapter; or
``(B) while sharing some of the same needs as another
population that the entity seeks to serve through an
application for funding under this chapter, has
distinct needs for specialized services.''.
(i) Education and Counseling Services.--Chapter 1 of subpart 2 of
part A of title IV is further amended--
(1) in section 402B(b) (20 U.S.C. 1070a-12(b))--
(A) by redesignating paragraphs (3) through (10) as
paragraphs (4) through (11), respectively;
(B) by inserting after paragraph (2) the following:
``(3) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)'';
(2) in section 402C (20 U.S.C. 1070a-13)--
(A) in subsection (b)--
(i) by redesignating paragraphs (2) through
(12) as paragraphs (3) through (13),
respectively;
(ii) by inserting after paragraph (1) the
following:
``(2) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;'';
(iii) in paragraph (12), as redesignated by
clause (i), by inserting ``, specifically in
the fields of math and science'' after
``postsecondary education''; and
(iv) in paragraph (13), as redesignated by
clause (i), by striking ``paragraphs (1)
through (11)'' and inserting ``paragraphs (1)
through (12)''; and
(B) in subsection (e), by striking ``subsection
(b)(10)'' and inserting ``subsection (b)(11)'';
(3) in section 402D(b) (20 U.S.C. 1070a-14(b))--
(A) by redesignating paragraphs (2) through (10) as
paragraphs (3) through (11), respectively;
(B) by inserting after paragraph (1) the following:
``(2) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)'';
(4) in section 402E(b) (20 U.S.C. 1070a-15(b))--
(A) by redesignating paragraphs (7) and (8) as
paragraphs (8) and (9), respectively; and
(B) by inserting after paragraph (6) the following:
``(7) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(5) in section 402F(b) (20 U.S.C. 1070a-16(b))--
(A) by redesignating paragraphs (4) through (10) as
paragraphs (5) through (11), respectively;
(B) by inserting after paragraph (3) the following:
``(4) education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents;''; and
(C) in paragraph (11), as redesignated by
subparagraph (A), by striking ``paragraphs (1) through
(9)'' and inserting ``paragraphs (1) through (10)''.
(j) Maximum Stipends.--Section 402C(e) (20 U.S.C. 1070a-13(e)) is
amended--
(1) by striking ``$60'' and inserting ``$100''; and
(2) by striking ``$40'' and inserting ``$60''.
(k) Student Support Services.--Section 402D(d)(6) (20 U.S.C. 1070a-
14(d)(6)) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B) and
inserting ``; and''; and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) working with other entities that serve low-
income working adults to increase access to and
successful progress in postsecondary education by low-
income working adults seeking their first postsecondary
degree or certificate.''.
(l) Postbaccalaureate Achievement Maximum Stipends.--Section
402E(e)(1) (20 U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,800''
and inserting ``$5,000''.
(m) Educational Opportunity Centers: Application Approval.--Section
402F(c) (20 U.S.C. 1070a-16(c)) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) consider the extent to which the proposed project would
provide services to low-income working adults in the region to
be served, in order to increase access to postsecondary
education by low-income working adults.''.
SEC. 403. TRIO REFORM.
(a) Performance Measures.--Section 402A (20 U.S.C. 1070a-11) is
amended--
(1) by redesignating subsections (c), (d), (e), (f), and (g)
as subsections (d), (e), (g), (h), and (i), respectively; and
(2) by inserting after subsection (b) the following new
subsection:
``(c) Performance Measures.--
``(1) In general.--The Secretary shall establish expected
program outcomes and procedures for measuring, annually and for
longer periods, the quality and effectiveness of programs
operated under this chapter, and the impact of the services
provided through the programs to support the attainment of
higher education for students from disadvantaged backgrounds,
low-income individuals, and prospective first-generation
college students.
``(2) Use of measures.--The performance measures described in
paragraph (1) shall be used to--
``(A) assess the impact of the specific services
provided by recipients of grants or contracts under
this chapter and, to the extent the Secretary finds
appropriate, administrative and financial management
practices of such programs;
``(B) identify strengths and weaknesses in the
provision of services provided by grantees under this
chapter;
``(C) identify project operations that may require
training and technical assistance resources.
``(3) Additional measures.--In addition to the performance
measures in paragraph (1), each grant recipient may establish
local performance measures.''.
(b) Selection.--Subsection (d) of such section (as redesignated by
subsection (a)(1) of this section) is amended--
(1) by redesignating paragraphs (2) through (6) as paragraphs
(3) through (7), respectively; and
(2) by inserting after paragraph (1) the following new
paragraph:
``(2) Selection.--
``(A) In general.--In awarding grants from among
qualified applicants, the Secretary shall consider the
effectiveness of each applicant in providing services
under this chapter, based on--
``(i) the plan of such applicant to deliver
program services and achieve expected program
outcomes established by the Secretary;
``(ii) the plan of such applicant to
coordinate program services with other programs
for disadvantaged students; and
``(iii) any prior experience of such
applicant in achieving expected program
outcomes under this chapter.
``(B) Additional criteria.--The Secretary may
establish additional selection criteria as necessary to
identify the most qualified applicants.''.
(c) Prior Experience.--Paragraph (3) of such subsection (d) (as
amended by section 402(c) and redesignated by subsection (b)(1) of this
section) is amended--
(1) by striking subparagraph (A) and inserting ``(A) In
making grants under this chapter, the Secretary shall use the
measures described in subsection (c)(1) to evaluate each
applicant's prior experience in achieving expected program
outcomes under the particular program for which funds are
sought.''; and
(2) by adding at the end the following new subparagraph:
``(C) The Secretary shall not give prior experience points to
any current grantee that during the then most recent period for
which funds were provided--
``(i) failed to meet one or more expected program
outcomes based on the performance measures described in
subsection (c); or
``(ii) expended funds for indirect costs in an amount
that exceeded 8 percent of the total grant award.''.
(d) Order of Awards.--Paragraph (4) of such subsection (d) (as
redesignated by subsection (b)(1) of this section) is amended--
(1) in subparagraph (A)--
(A) by striking ``under paragraph (4)'' and inserting
``under paragraph (5)''; and
(B) by stiking ``with paragraph (2)'' and inserting
``with paragraph (3)''; and
(2) by amending subparagraph (B) to read as follows:
``(B) The Secretary shall not provide assistance to an entity
if the Secretary has determined that such entity has involved
the fraudulent use of public or private funds.''.
(e) Technical Assistance.--Paragraph (3) of subsection (e) of such
section (as redesignated by subsection (a)(1) of this section) is
amended to read as follows:
``(3) Technical assistance.--The Secretary shall provide
technical assistance to applicants for projects and programs
authorized under this chapter. The Secretary shall give
priority to serving programs and projects that serve geographic
areas and eligible populations which have been underserved by
the programs assisted under this chapter. Technical training
activities shall include the provision of information on
authorizing legislation, goals and objectives of the program,
required activities, eligibility requirements, the application
process and application deadlines, and assistance in the
development of program proposals and the completion of program
applications.''.
(f) Recordkeeping and Reporting.--Section 402A is further amended by
inserting after subsection (e) of such section (as redesignated by
subsection (a)(1) of this section) the following new subsection:
``(f) Recordkeeping and Reporting.--
``(1) In general.--The Secretary shall establish uniform
reporting requirements and require each recipient of funds
under this chapter to submit annually and in electronic form
such information in such manner and form and at such time as
the Secretary may require, except that reporting such
information shall not reveal personally identifiable
information about an individual student.
``(2) Report to congress.--At least once every 2-year period,
the Secretary shall prepare and submit to the authorizing
committees, a report on the services provided to students that
shall include--
``(A) a statement for the then most recently
concluded fiscal year specifying--
``(i) the amount of funds received by
grantees to provide services under this
chapter; and
``(ii) the amount of funds received by new
grantees to provide services under this
chapter;
``(B) a description of the specific services provided
to students;
``(C) a summary of the overall success in achieving
specific program outcomes or progress toward such
outcomes;
``(D) a report of the number of students served by
types of service received;
``(E) information summarizing the types of
organizations that received funds under this chapter;
and
``(F) a summary of the research and evaluation
activities under section 402H, including--
``(i) a status report on ongoing activities;
and
``(ii) results, conclusions, and
recommendations of such activities available
after the then most recent report.''.
(g) Increased Monitoring.--Subsection (h) of such section (as
redesignated by subsection (a)(1) of this section) is amended by
striking everything after the first sentence and inserting the
following: ``Of the amount appropriated under this chapter, the
Secretary may use no more than one half of 1 percent of such amount to
support the administration of the Federal TRIO programs including to
increase the level of oversight monitoring, to support impact studies,
program assessments and reviews, and to provide technical assistance to
prospective applicants and current grantees.''.
(h) Expected Program Outcome.--
(1) Section 402B (20 U.S.C. 1070a-12) is amended by adding at
the end the following new subsection:
``(d) Expected Program Outcome.--For the purposes of assessing an
applicant's past performance under section 402A(c)(1), and prior
experience under section 402A(d)(3), the Secretary shall consider the
college-going rate of the participants served by the program compared
to that of other applicants eligible to receive consideration of prior
experience.''.
(2) Section 402C (20 U.S.C. 1070a-12) is amended by adding at
the end the following new subsection:
``(f) Expected Program Outcome.--For the purposes of assessing an
applicant's past performance under section 402A(c)(1), and prior
experience under section 402A(d)(3), the Secretary shall consider the
college-going rate of the participants served by the program compared
to that of other applicants eligible to receive consideration of prior
experience.''.
(3) Section 402D (20 U.S.C. 1070a-12) is amended by adding at
the end the following new subsection:
``(e) Expected Program Outcome.--For the purposes of assessing an
applicant's past performance under section 402A(c)(1), and prior
experience under section 402A(d)(3), the Secretary shall consider the
college-going rate of the participants served by the program compared
to that of other applicants eligible to receive consideration of prior
experience.''.
(4) Section 402E (20 U.S.C. 1070a-12) is amended by striking
subsection (f) and inserting the following:
``(f) Expected Program Outcome.--For the purposes of assessing an
applicant's past performance under section 402A(c)(1), and prior
experience under section 402A(d)(3), the Secretary shall consider the
college-going rate of the participants served by the program compared
to that of other applicants eligible to receive consideration of prior
experience.''.
(5) Section 402F (20 U.S.C. 1070a-12) is amended by adding at
the end the following new subsection:
``(d) Expected Program Outcome.--For the purposes of assessing an
applicant's past performance under section 402A(c)(1), and prior
experience under section 402A(d)(3), the Secretary shall consider the
college-going rate of the participants served by the program compared
to that of other applicants eligible to receive consideration of prior
experience.''.
(i) Staff Development.--Section 402G (20 U.S.C. 1070a-17) is amended
to read as follows:
``SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.
``(a) Secretary's Authority.--For the purpose of improving the
operation of the programs and projects authorized by this chapter, the
Secretary is authorized to make grants to institutions of higher
education and other public and private nonprofit institutions and
organizations to provide training and technical assistance for staff
and leadership personnel employed in, participating in, or preparing
for employment in, such programs and projects.
``(b) Contents of Training Programs.--Such training shall be provided
to assist programs and projects in--
``(1) achieving the expected program outcomes stated under
this chapter or additional outcomes identified by individual
programs or projects;
``(2) addressing any identified program weaknesses in the
overall development, conduct, or administration of a grant or
contract;
``(3) improving the quality of services provided to eligible
students; or
``(4) additional areas in need of program improvement as
identified by the Secretary or as requested by grantees in
order to enhance program operations and outcomes.
``(c) Consultation.--Grants for the purposes of this section shall be
made only after consultation with regional and State professional
associations of persons having special knowledge with respect to the
needs and problems of such programs and projects.''.
(j) Evaluations.--Section 402H (20 U.S.C. 1070a-18) is amended to
read as follows:
``SEC. 402H. EVALUATIONS.
``(a) Evaluations.--
``(1) In general.--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 one or more organizations to--
``(A) evaluate the effectiveness of the programs and
projects assisted under this chapter; and
``(B) disseminate information on the impact of the
programs in increasing the education level of
participating students, as well as other appropriate
measures.
``(2) Issues to be evaluated.--The evaluations described in
paragraph (1) shall measure the effectiveness of programs under
this chapter in--
``(A) meeting the expected program outcomes stated
under this chapter and all performance measures
identified by the Secretary;
``(B) enhancing the access of low-income individuals
and first-generation college students to postsecondary
education;
``(C) preparing individuals and students for
postsecondary education;
``(D) comparing the level of education completed by
students who participate in the programs funded under
this chapter with the level of education completed by
students of similar backgrounds who do not participate
in such programs;
``(E) comparing the retention rates, dropout rates,
graduation rates, and college admission and completion
rates of students who participate in the programs
funded under this chapter with the rates of students of
similar backgrounds who do not participate in such
programs; and
``(F) such other issues as the Secretary considers
appropriate for inclusion in the evaluation.
``(3) Program methods.--Such evaluations shall also
investigate the effectiveness of alternative and innovative
methods within Federal TRIO programs of increasing access to,
and retention of, students in postsecondary education.
``(b) Results.--The Secretary shall submit to the authorizing
committees--
``(1) an annual interim report on the progress and
preliminary results of the evaluation of each program funded
under this chapter no later than 2 years following the date of
enactment of the College Access and Opportunity Act of 2005;
and
``(2) a final report not later than 3 years following the
date of enactment of such Act.
``(c) Public Availability.--All reports and underlying data gathered
pursuant to this section shall be made available to the public upon
request, in a timely manner following submission of the applicable
reports under subsection (b), except that any personally identifiable
information on students participating in any TRIO program shall not be
disclosed or made available to the public.''.
SEC. 404. GEARUP.
(a) Duration of Awards.--Section 404A(b) (20 U.S.C. 1070a-21(b)) is
amended--
(1) in paragraph (2)(B), by striking ``Higher Education
Amendments of 1998'' and inserting ``College Access and
Opportunity Act of 2005''; and
(2) by adding at the end thereof the following new paragraph:
``(3) Duration.--An award made by the Secretary under this
chapter to an eligible entity described in paragraph (1) or (2)
of subsection (c) shall be for the period of 6 years.''.
(b) Continuing Eligibility.--Section 404A (20 U.S.C. 1070a-21) is
amended by adding at the end the following new subsection:
``(d) Continuing Eligibility.--An eligible entity shall not cease to
be an eligible entity upon the expiration of any grant under this
chapter (including a continuation award).''.
(c) Continuity of Service.--
(1) Cohort approach.--Section 404B(g)(1)(B) (20 U.S.C. 1070a-
22(g)(1)(B)) is amended by inserting ``and provide the option
of continued services through the student's first year of
attendance at an eligible institution of higher education''
after ``grade level''.
(2) Early intervention.--Section 404D (20 U.S.C. 1070a-24) is
amended--
(A) in subsection (b)(2)(A), by inserting ``and
students in the first year of attendance at an eligible
institution of higher education'' after ``grade 12'';
and
(B) in subsection (c), by inserting ``, and may
consider students in their first year of attendance at
an eligible institution,'' after ``grade 12''.
(d) Coordination.--Section 404C(a)(2) (20 U.S.C. 1070a-23(a)(2)) is
amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by redesignating subparagraph (B) as subparagraph (C);
and
(3) by inserting after subparagraph (A) the following new
subparagraph:
``(B) describe activities for coordinating,
complementing, and enhancing services under this
chapter provided by other eligible entities in the
State; and''.
(e) Education and Counseling Services.--Section 404D(b)(2)(A)(ii) (20
U.S.C. 1070a-24(b)(2)(A)(ii)) is amended by striking ``and academic
counseling'' and inserting ``academic counseling, and financial
literacy and economic literacy education or counseling''.
(f) Homeless and Unaccompanied Youth.--Section 404D is further
amended by adding at the end the following new subsection:
``(e) Homeless and Unaccompanied Youth.--Notwithstanding any other
provision of this chapter, individuals who are homeless or
unaccompanied youth as defined in section 725 of the McKinney-Vento
Homeless Assistance Act shall be eligible to participate in programs
under this section.''.
(g) Reauthorization.--Section 404H (20 U.S.C. 1070a-28) is amended by
striking ``$200,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years'' and inserting
``$306,500,000 for fiscal year 2006 and such sums as may be necessary
for each of the 5 succeeding fiscal years''.
SEC. 405. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
(a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C.
1070b(b)(1)) is amended by striking ``$675,000,000 for fiscal year 1999
and such sums as may be necessary for the 4 succeeding fiscal years''
and inserting ``$779,000,000 for fiscal year 2006 and such sums as may
be necessary for the 5 succeeding fiscal years''.
(b) Priority of Awards.--Paragraph (2) of section 413C(c) (20 U.S.C.
1070b-2(c)(2)) is amended to read as follows:
``(2) In carrying out paragraph (1) of this subsection, each
institution of higher education shall, in the agreement made under
section 487, assure that the selection procedures--
``(A) will give a priority for supplemental grants under this
subpart to students who receive Pell Grants and meet the
requirements of section 484; and
``(B) will award no more than 10 percent of each
institution's allocation received under section 413D to
students who did not receive Federal Pell Grants in a prior
year.''.
(c) Phaseout of Allocation Based on Previous Allocations.--
(1) Amendment.--Subsection (a) of section 413D (20 U.S.C.
1070b-3(a)) is amended to read as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated pursuant
to section 413A(b) for each fiscal year after fiscal year 2007,
the Secretary shall, subject to paragraph (2), first allocate
to each eligible institution an amount equal to the following
percentage of the amount such institution received under
subsection (a) of this section for fiscal year 2007 (as such
subsection was in effect with respect to allocations for such
fiscal year):
``(A) 80 percent for fiscal years 2008 and 2009;
``(B) 60 percent for fiscal years 2010 and 2011;
``(C) 40 percent for fiscal years 2012 and 2013;
``(D) 20 percent for fiscal years 2014 and 2015; and
``(E) 0 percent for fiscal year 2016 and any
succeeding fiscal year.
``(2) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).
``(3) Additional allocations for certain institutions.--
``(A) Allocations permitted.--Notwithstanding any
other provision of this section, the Secretary may
allocate an amount equal to not more than 10 percent of
the amount by which the amount appropriated in any
fiscal year to carry out this subpart exceeds
$700,000,000 among eligible institutions described in
subparagraph (B).
``(B) Eligible institutions.--An otherwise eligible
institution may receive a portion of the allocation
described in subparagraph (A) if--
``(i) not less than 10 percent of the
students attending the institution receive
Federal Pell Grants; and
``(ii)(I) in the case of an institution that
offers programs of at least 4 years in
duration, if its graduation rate for Federal
Pell Grant recipients attending the institution
and graduating within the period of time equal
to normal duration of the longest undergraduate
program offered by the institution, as measured
from the first day of their enrollment, exceeds
the median rate for the class of institution
(as defined in section 131(f)(5)(C)); or
``(II) in the case of an institution that
offers programs of at least 2, but less than 4,
years in duration, if its rate for Federal Pell
Grant recipients attending the institution and
graduating or transferring to an institution
that offers programs of at least 4 years in
duration within the period of time equal to the
normal duration of the program offered, as
measured from the first day of their
enrollment, exceeds the median rate for the
class of institution (as defined in section
131(f)(5)(C)).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any amounts appropriated under
section 413A(b) of the Higher Education Act of 1965 (20 U.S.C.
1070b(b)) for fiscal year 2008 or any succeeding fiscal year.
(d) Books and Supplies.--Section 413D(c)(3)(D) (20 U.S.C. 1070-
3(c)(3)(D)) is amended by striking ``$450'' and inserting ``$600''.
SEC. 406. LEAP.
Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 407. HEP/CAMP PROGRAM.
Section 418A (20 U.S.C. 1070d-2) is amended--
(1) in subsection (b)(1)(B)(i), by inserting ``, or whose
spouse'' after ``themselves'';
(2) in subsection (b)(3)(B), by inserting ``, including
preparation for college entrance exams'' after ``program'';
(3) in subsection (b)(8), by inserting ``, including child
care and transportation'' after ``supportive services'';
(4) by striking ``and'' at the end of subsection (b)(7), by
striking the period at the end of subsection (b)(8) and
inserting ``; and'', and by adding at the end of subsection (b)
the following new paragraph:
``(9) follow-up activity and reporting requirements, except
that not more than 2 percent of the funds provided under this
section may be used for such purposes.'';
(5) in subsection (c)(1)(A), by inserting ``, or whose
spouse'' after ``themselves'';
(6) in subsection (c)(1)(B), by striking clause (i) and
inserting the following:
``(i) personal, academic, career, and economic
education or personal finance counseling as an ongoing
part of the program;'';
(7) in subsection (c)(2)(B), by inserting ``(including
mentoring and guidance of such students)'' after ``services'';
(8) in subsection (c)(2), by striking ``and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``; and'', and by adding at the
end of subsection (c)(2) the following new subparagraph:
``(C) for students in any program that does not award a
bachelor's degree, encouraging the transfer to, and persistence
in, such a program, and monitoring the rate of such transfer,
persistence, and completion.'';
(9) in subsection (e), by striking ``section 402A(c)(1)'' and
inserting ``section 402A(c)(2)''; and
(10) in subsection (h)--
(A) in paragraph (1), by striking ``$15,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$24,000,000 for fiscal year 2006 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''; and
(B) in paragraph (2), by striking ``$5,000,000 for
fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years'' and inserting
``$16,000,000 for fiscal year 2006 and such sums as may
be necessary for each of the 5 succeeding fiscal
years''.
SEC. 408. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.
Subpart 6 of part A of title IV is amended to read as follows:
``Subpart 6--Robert C. Byrd Honors Scholarship Program
``SEC. 419A. ROBERT C. BYRD MATHEMATICS AND SCIENCE HONORS SCHOLARSHIP
PROGRAM.
``(a) Purpose.--The purpose of this section is to award scholarships
to students who are enrolled in studies leading to baccalaureate and
advanced degrees in physical, life, or computer sciences, mathematics,
and engineering.
``(b) Definitions.--As used in this section--
``(1) the term `computer science' means the branch of
knowledge or study of computers, including such fields of
knowledge or study as computer hardware, computer software,
computer engineering, information systems, and robotics;
``(2) the term `eligible student' means a student who--
``(A) is a citizen of the United States;
``(B) is selected by the managing agent to receive a
scholarship;
``(C) is enrolled full-time in an institution of
higher education, other than a United States service
academy; and
``(D) has shown a commitment to and is pursuing a
major in studies leading to a baccalaureate, masters,
or doctoral degree (or a combination thereof) in
physical, life, or computer sciences, mathematics, or
engineering;
``(3) the term `engineering' means the science by which the
properties of matter and the sources of energy in nature are
made useful to humanity in structures, machines, and products,
as in the construction of engines, bridges, buildings, mines,
and chemical plants, including such fields of knowledge or
study as aeronautical engineering, chemical engineering, civil
engineering, electrical engineering, industrial engineering,
materials engineering, manufacturing engineering, and
mechanical engineering;
``(4) the term `life sciences' means the branch of knowledge
or study of living things, including such fields of knowledge
or study as biology, biochemistry, biophysics, microbiology,
genetics, physiology, botany, zoology, ecology, and behavioral
biology, except that the term does not encompass social
psychology or the health professions;
``(5) the term `managing agent' means an entity to which an
award is made under subsection (c) to manage a program of
Mathematics and Science Honors Scholarships;
``(6) the term `mathematics' means the branch of knowledge or
study of numbers and the systematic treatment of magnitude,
relationships between figures and forms, and relations between
quantities expressed symbolically, including such fields of
knowledge or study as statistics, applied mathematics, and
operations research; and
``(7) the term `physical sciences' means the branch of
knowledge or study of the material universe, including such
fields of knowledge or study as astronomy, atmospheric
sciences, chemistry, earth sciences, ocean sciences, physics,
and planetary sciences.
``(c) Award.--
``(1)(A) From funds authorized under section 419D to carry
out this section, the Secretary is authorized, through a grant
or cooperative agreement, to make an award to a private, non-
profit organization, other than an institution of higher
education or system of institutions of higher education, to
manage, through a public and private partnership, a program of
Mathematics and Science Honors Scholarships under this section.
``(B) The award under subparagraph (A) shall be for a five-
year period.
``(2)(A) One hundred percent of the funds awarded under
paragraph (1)(A) for any fiscal year shall be obligated and
expended solely on scholarships to eligible students.
``(B) No Federal funds shall be used to provide more than 50
percent of the cost of any scholarship to an eligible student.
``(C) The maximum scholarship award shall be the difference
between an eligible student's cost of attendance minus any non-
loan based aid such student receives.
``(3)(A) The secretary may establish--
``(i) eligibility criteria for applicants for
managing agent, including criteria regarding financial
and administrative capability; and
``(ii) operational standards for the managing agent,
including management and performance requirements, such
as audit, recordkeeping, record retention, and
reporting procedures and requirements.
``(B) The Secretary, as necessary, may review and revise any
criteria, standards, and rules established under this paragraph
and, through the agreement with the managing agent, see that
any revisions are implemented.
``(4) If the managing agent fails to meet the requirements of
this section the Secretary may terminate the award to the
managing agent.
``(5) The Secretary shall conduct outreach efforts to help
raise awareness of the Mathematics and Science Honors
Scholarships.
``(d) Duties of the Managing Agent.--The managing agent shall--
``(1) develop criteria to award Mathematics and Science
Honors Scholarships based on established measurements available
to secondary students who wish to pursue degrees in physical,
life, or computer sciences, mathematics, and engineering;
``(2) establish a Mathematics and Science Honors Scholarship
Fund in a separate, named account that clearly discloses the
amount of Federal and non-Federal funds deposited in the
account and used for scholarships under this section;
``(3) solicit funds for scholarships and for the
administration of the program from non-Federal sources;
``(4) solicit applicants for scholarships;
``(5) from the amounts in the Fund, award scholarships to
eligible students and transfer such funds to the institutions
of higher education that they attend; and
``(6) annually submit to the Secretary a financial audit and
a report on the progress of the program, and such other
documents as the Secretary may require to determine the
effective management of the program.
``(e) Applications.--
``(1) Any eligible entity that desires to be the managing
agent under this section shall submit an application to the
Secretary, in such form and containing such information, as the
Secretary may require.
``(2) Each application shall include a description of--
``(A) how the applicant meets or will meet
requirements established under subsections (c)(3)(A)
and (d);
``(B) how the applicant will solicit funds for
scholarships and for the administration of the program
from non-Federal sources;
``(C) how the applicant will provide nationwide
outreach to inform students about the program and to
encourage students to pursue degrees in physical, life,
or computer sciences, mathematics, and engineering;
``(D) how the applicant will solicit applications for
scholarships, including how the applicant will balance
efforts in urban and rural areas;
``(E) the selection criteria based on established
measurements available to secondary students the
applicant will use to award scholarships and to renew
those awards;
``(F) how the applicant will inform the institution
of higher education chosen by the recipient of the name
and scholarship amount of the recipient;
``(G) what procedures and assurances the applicant
and the institution of higher education that the
recipient attends will use to verify student
eligibility, attendance, degree progress, and academic
performance and to deliver and account for payments to
such institution;
``(H) the management (including audit and accounting)
procedures the applicant will use for the program;
``(I) the human, financial, and other resources that
the applicant will need and use to manage the program;
``(J) how the applicant will evaluate the program and
report to the Secretary annually; and
``(K) a description of how the entity will coordinate
with, complement, and build on similar public and
private mathematics and science programs.
``(f) Scholarship Recipients.--
``(1) A student receiving a scholarship under this section
shall be known as a `Byrd Mathematics and Science Honors
Scholar'.
``(2) Any student desiring to receive a scholarship under
this section shall submit an application to the managing agent
in such form, and containing such information, as the managing
agent may require.
``(3) Any student that receives a scholarship under this
section shall enter into an agreement with the managing agent
to complete 5 consecutive years of service to begin no later
than 12 months following completion of the final degree in a
position related to physical, life, or computer sciences,
mathematics, or engineering as defined under this section.
``(4) If any student that receives a scholarship under this
section fails to earn at least a baccalaureate degree in
physical, life, or computer sciences, mathematics, or
engineering as defined under this section, the student shall
repay to the managing agent the amount of any financial
assistance paid to such student.
``(5) If any student that receives a scholarship under this
section fails to meet the requirements of paragraph (3), the
student shall repay to the managing agent the amount of any
financial assistance paid to such student.
``(6)(A) Scholarships shall be awarded for only one academic
year of study at a time.
``(B)(i) A scholarship shall be renewable on an annual basis
for the established length of the academic program if the
student awarded the scholarship remains eligible.
``(ii) The managing agent may condition renewal of a
scholarship on measures of academic progress and achievement,
with the approval of the Secretary.
``(C)(i) If a student fails to either remain eligible or meet
established measures of academic progress and achievement, the
managing agent shall instruct the student's institution of
higher education to suspend payment of the student's
scholarship.
``(ii) A suspension of payment shall remain in effect until
the student is able to demonstrate to the satisfaction of the
managing agent that he or she is again eligible and meets the
established measures of academic progress and achievement.
``(iii) A student's eligibility for a scholarship shall be
terminated if a suspension period exceeds 12 months.
``(D)(i)(I) A student awarded a scholarship may, in a manner
and under the terms established by, and with the approval of,
the managing agent, postpone or interrupt his or her enrollment
at an institution of higher education for up to 12 months.
``(II) Such a postponement or interruption shall not
be considered a suspension for purposes of subparagraph
(C).
``(ii) Neither a student nor the student's institution of
higher education shall receive the student's scholarship
payments during the period of postponement or interruption, but
such payments shall resume upon enrollment or reenrollment.
``(iii) In exceptional circumstances, such as serious injury
or illness or the necessity to care for family members, the
student's postponement or interruption may, upon notification
and approval of the managing agent, be extended beyond the 12
month period described in clause (i)(I).
``(g) Responsibilities of Institution of Higher Education.--
``(1) The managing agent shall require any institution of
higher education that enrolls a student who receives a
scholarship under this section to annually provide an
assurance, prior to making any payment, that the student--
``(A) is eligible in accordance with subsection (b)(2); and
``(B) has provided the institution with a written commitment
to attend, or is attending, classes and is satisfactorily
meeting the institution's academic criteria for enrollment in
its program of study.
``(2)(A) The managing agent shall provide the institution of
higher education with payments from the Fund for selected
recipients in at least two installments.
``(B) An institution of higher education shall return
prorated amounts of any scholarship payment to the managing
agent, who shall deposit it in to the Fund, if a recipient
declines a scholarship, does not attend courses, transfers to
another institution of higher education, or becomes ineligible
for a scholarship.
``SEC. 419B. MATHEMATICS AND SCIENCE INCENTIVE PROGRAM.
``(a) Program.--
``(1) In general.--The Secretary is authorized to carry out a
program of assuming the obligation to pay, pursuant to the
provisions of this section, the interest on a loan made,
insured, or guaranteed under part B or D of this title.
``(2) Eligibility.--The Secretary may assume interest
payments under paragraph (1) only for a borrower who--
``(A) has submitted an application in compliance with
subsection (d);
``(B) obtained one or more loans described in
paragraph (1) as an undergraduate student;
``(C) is a new borrower (within the meaning of
section 103(7) of this Act) on or after the date of
enactment of the College Access and Opportunity Act of
2005;
``(D) is a highly qualified teacher of science,
technology, engineering or mathematics at an elementary
or secondary school in a high need local educational
agency, or is a mathematics, science, or engineering
professional; and
``(E) enters into an agreement with the Secretary to
complete 5 consecutive years of service in a position
described in subparagraph (D), starting on the date of
the agreement.
``(3) Prior interest limitations.--The Secretary shall not
make any payments for interest that--
``(A) accrues prior to the beginning of the repayment
period on a loan in the case of a loan made under
section 428H or a Federal Direct Unsubsidized Stafford
Loan; or
``(B) has accrued prior to the signing of an
agreement under paragraph (2)(E).
``(4) Initial selection.--In selecting participants for the
program under this section, the Secretary--
``(A) shall choose among eligible applicants on the
basis of--
``(i) the national security, homeland
security, and economic security needs of the
United States, as determined by the Secretary,
in consultation with other Federal agencies,
including the Departments of Labor, Defense,
Homeland Security, Commerce, and Energy, the
Central Intelligence Agency, and the National
Science Foundation; and
``(ii) the academic record or job performance
of the applicant; and
``(B) may choose among eligible applicants on the
basis of--
``(i) the likelihood of the applicant to
complete the 5-year service obligation;
``(ii) the likelihood of the applicant to
remain in science, mathematics, or engineering
after the completion of the service
requirement; or
``(iii) other relevant criteria determined by
the Secretary.
``(5) Availability subject to appropriations.--Loan interest
payments under this section shall be subject to the
availability of appropriations. If the amount appropriated for
any fiscal year is not sufficient to provide interest payments
on behalf of all qualified applicants, the Secretary shall give
priority to those individuals on whose behalf interest payments
were made during the preceding fiscal year.
``(6) Regulations.--The Secretary is authorized to prescribe
such regulations as may be necessary to carry out the
provisions of this section.
``(b) Duration and Amount of Interest Payments.--The period during
which the Secretary shall pay interest on behalf of a student borrower
who is selected under subsection (a) is the period that begins on the
effective date of the agreement under subsection (a)(2)(E), continues
after successful completion of the service obligation, and ends on the
earlier of--
``(1) the completion of the repayment period of the loan;
``(2) payment by the Secretary of a total of $5,000 on behalf
of the borrower;
``(3) if the borrower ceases to fulfill the service
obligation under such agreement prior to the end of the 5-year
period, as soon as the borrower is determined to have ceased to
fulfill such obligation in accordance with regulations of the
Secretary; or
``(4) 6 months after the end of any calendar year in which
the borrower's gross income equals or exceeds 4 times the
national per capita disposable personal income (current
dollars) for such calendar year, as determined on the basis of
the National Income and Product Accounts Tables of the Bureau
of Economic Analysis of the Department of Commerce, as
determined in accordance with regulations prescribed by the
Secretary.
``(c) Repayment to Eligible Lenders.--Subject to the regulations
prescribed by the Secretary by regulation under subsection (a)(6), the
Secretary shall pay to each eligible lender or holder for each payment
period the amount of the interest that accrues on a loan of a student
borrower who is selected under subsection (a).
``(d) Application for Repayment.--
``(1) In general.--Each eligible individual desiring loan
interest payment under this section shall submit a complete and
accurate application to the Secretary at such time, in such
manner, and containing such information as the Secretary may
require.
``(2) Failure to complete service agreement.--Such
application shall contain an agreement by the individual that,
if the individual fails to complete the 5 consecutive years of
service required by subsection (a)(2)(E), the individual agrees
to repay the Secretary the amount of any interest paid by the
Secretary on behalf of the individual.
``(e) Treatment of Consolidation Loans.--A consolidation loan made
under section 428C of this Act, or a Federal Direct Consolidation Loan
made under part D of title IV of this Act, may be a qualified loan for
the purpose of this section only to the extent that such loan amount
was used by a borrower who otherwise meets the requirements of this
section to repay--
``(1) a loan made under section 428 or 428H of this Act; or
``(2) a Federal Direct Stafford Loan, or a Federal Direct
Unsubsidized Stafford Loan, made under part D of title IV of
this Act.
``(f) Prevention of Double Benefits.--No borrower may, for the same
service, receive a benefit under both this section and--
``(1) any loan forgiveness program under title IV of this
Act; or
``(2) subtitle D of title I of the National and Community
Service Act of 1990 (42 U.S.C. 12601 et seq.).
``(g) Definitions.--As used in this section--
``(1) the term `high need local educational agency' has the
same meaning given such term in section 201(b)(4); and
``(2) the term `mathematics, science, or engineering
professional' means a person who--
``(A) holds a baccalaureate, masters, or doctoral
degree (or a combination thereof) in science,
mathematics, or engineering; and
``(B) works in a field the Secretary determines is
closely related to that degree, which shall include
working as a professor at a two- or four-year
institution of higher education.
``SEC. 419C. MATHEMATICS AND SCIENCE EDUCATION COORDINATING COUNCIL
GRANTS.
``(a) Purposes.--The purposes of this section include--
``(1) supporting programs that encourage students to enroll
in and successfully complete baccalaureate and advanced degrees
in science, technology, engineering, and mathematics;
``(2) achieving the common objective of organizing, leading,
and implementing State-based reform agendas that support the
continuing improvement of mathematics and science education;
and
``(3) improving collaboration in a State among the State
educational agency, 2-year and 4-year institutions of higher
education, and the business community through the development
or improvement of a coordinating council.
``(b) Definitions.--For the purposes of this section:
``(1) the term `eligible State' means--
``(A) the Governor of a State; or
``(B) in the case of a State for which the
constitution or laws of the State designate an
individual, entity, or agency in the State, other than
the Governor, to be responsible for coordination among
segments of the State's educational systems, such
individual, entity, or agency.
``(2) the term `mathematics and science education
coordinating council' means an organization that is charged by
a State with coordinating mathematics and science education in
the State. Such a council shall be composed of education,
business, and community leaders working together to increase
student participation and academic achievement in mathematics
and science.
``(c) State Grants.--From amounts made available under section 419D
for this section, the Secretary is authorized to use not more than
$5,000,000 to award grants on a competitive basis to eligible States
for the purpose of carrying out activities described in subsection (d).
``(d) Uses of Funds.--An eligible State that receives a grant under
this section is authorized to use grant funds to carry out one or more
of the following activities:
``(1) In a State in which a mathematics and science education
coordinating council does not exist, planning and establishing
such a council.
``(2) In a State in which such a council exists, reforming or
expanding the activities of the council, including implementing
State-based reform agendas that support the continuing
improvement of mathematics and science education, and support
services that lead to better teacher recruitment and training,
increased student academic achievement, and increased student
enrollment and degree attainment in science, technology,
engineering, and mathematics.
``(3) Coordinating with activities under part B of title II
of the Elementary and Secondary Education Act of 1965 and with
title II of this Act, especially as it pertains to the
recruitment and preparation of highly qualified mathematics and
science teachers.
``(e) Application.--To be eligible to receive a grant under this
section, an eligible State shall submit an application to the Secretary
that--
``(1) describes the activities the State will carry out with
the funds;
``(2) contains a plan for continuing such activities once
Federal funding ceases; and
``(3) contains such other information and assurances as the
Secretary may require.
``(f) Consultation.--The Governor of a State, or the individual,
entity, or agency in the State described in subsection (b)(1)(B), shall
consult with the State board of education, State educational agency,
and the State agency for higher education, as appropriate, with respect
to the activities assisted under this section. In the case of an
individual, entity, or agency described in subsection (b)(1)(B), such
consultation shall also include the Governor.
``(g) Construction.--Nothing in this section shall be construed to
negate or supersede the legal authority under State law of any State
agency, State entity, or State public official over programs that are
under the jurisdiction of the agency, entity, or official.
``(h) Administrative Provisions.--
``(1) In general.--
``(A) Grants awarded under this section shall be
awarded for a period not to exceed 5 years.
``(B) A grantee may receive a grant under this part
only once.
``(C) Payments of grant funds under this section
shall be annual.
``(2) Secretarial selections.--The Secretary shall determine
which applications receive funds under this section, and the
amount of the grant. In determining grant amounts, the
Secretary shall take into account the total amount of funds
available for all grants under this section and the nature of
each grant proposal, including whether funds are being sought
to assist in the creation of a new State mathematics and
science education coordinating council or to extend the work of
an existing council. The Secretary shall also take into account
the equitable geographic distribution of grants throughout the
United States.
``(3) Matching requirement.--Each eligible State receiving a
grant under this section shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of the
grant (in cash or in kind) to carry out the activities
supported by the grant.
``(i) Accountability and Evaluation.--
``(1) State grant accountability report.--An eligible State
that receives a grant under this section shall submit an annual
accountability report to the Secretary. Such report shall
include a description of the degree to which the eligible
State, in using grant funds, has made substantial progress in
meeting its objectives.
``(2) Evaluation and dissemination.--The Secretary shall
evaluate the activities funded under this section and report
the Secretary's findings regarding such activities to the
authorizing committees. The Secretary shall broadly disseminate
successful practices developed by eligible States under this
section, and shall broadly disseminate information regarding
such practices that were found to be ineffective.
``(3) Revocation.--If the Secretary determines that an
eligible State is not making substantial progress in meeting
the purposes, objectives, and measures, as appropriate,
required under this section by the end of the second year of a
grant, then the grant payment shall not be made for the third
year and subsequent years of the grant.
``SEC. 419D. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated $41,000,000 for fiscal year
2006 and such sums as may be necessary for each of the 5 succeeding
fiscal years to carry out this subpart.''.
SEC. 409. CHILD CARE ACCESS.
Section 419N(g) (20 U.S.C. 1070e(g)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 410. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
(a) Repeal.--Subpart 8 of part A of title IV (20 U.S.C. 1070f--1070f-
6) is repealed.
(b) Conforming Amendment.--Section 400(b) (20 U.S.C. 1070(b)) is
amended by striking ``through 8'' and inserting ``through 7''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 421. REAUTHORIZATION OF FEDERAL FAMILY EDUCATION LOAN PROGRAM.
(a) Authorization of Appropriations.--Section 421(b)(5) (20 U.S.C.
1071(b)(5)) is amended by striking ``an administrative cost allowance''
and inserting ``a loan processing and issuance fee''.
(b) Extension of Authority.--
(1) Federal insurance limitations.--Section 424(a) (20 U.S.C.
1074(a)) is amended--
(A) by striking ``2004'' and inserting ``2012''; and
(B) by striking ``2008'' and inserting ``2016''.
(2) Guaranteed loans.--Section 428(a)(5) (20 U.S.C.
1078(a)(5)) is amended--
(A) by striking ``2004'' and inserting ``2012''; and
(B) by striking ``2008'' and inserting ``2016''.
(3) Consolidation loans.--Section 428C(e) (20 U.S.C. 1078-
3(e)) is amended by striking ``2004'' and inserting ``2012''.
SEC. 422. LOAN LIMITS.
(a) Federal Insurance Limits.--Section 425(a)(1)(A) (20 U.S.C.
1075(a)(1)(A)) is amended--
(1) in clause (i)(I), by striking ``$2,625'' and inserting
``$3,500''; and
(2) in clause (ii)(I), by striking ``$3,500'' and inserting
``$4,500''.
(b) Guarantee Limits.--Section 428(b)(1)(A) (20 U.S.C. 1078(b)(1)(A))
is amended--
(1) in clause (i)(I), by striking ``$2,625'' and inserting
``$3,500''; and
(2) in clause (ii)(I), by striking ``$3,500'' and inserting
``$4,500''.
(c) Counting of Consolidation Loans Against Limits.--Section
428C(a)(3)(B) (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding at the
end the following new clause:
``(ii) Loans made under this section shall, to the extent
used to pay off the outstanding principal balance on loans made
under this title, excluding capitalized interest, be counted
against the applicable limitations on aggregate indebtedness
contained in sections 425(a)(2), 428(b)(1)(B), 428H(d), 455,
and 464(a)(2)(B).''.
(d) Effective Date.--The amendments made by this section shall apply
with respect to any loan made, insured, or guaranteed under part B or
part D of title IV of the Higher Education Act of 1965 for which the
first disbursement of principal is made on or after July 1, 2007.
SEC. 423. INTEREST RATES AND SPECIAL ALLOWANCES.
(a) FFEL Interest Rates.--Section 427A (20 U.S.C. 1077a(k)) is
amended--
(1) in subsection (k)--
(A) by striking ``, and Before July 1, 2006'' in the
heading of such subsection; and
(B) by striking ``, and before July 1, 2006,'' each
place it appears other than paragraph (4);
(2) by striking subsection (l); and
(3) by redesignating subsections (m) and (n) as subsections
(l) and (m), respectively.
(b) Direct Loan Interest Rates.--Section 455(b) (20 U.S.C. 1087e(b))
is amended--
(1) in paragraph (6)--
(A) by striking ``, and before july 1, 2006'' in the
heading of such paragraph; and
(B) by striking ``, and before July 1, 2006,'' each
place it appears other than subparagraph (D);
(2) by striking paragraph (7); and
(3) by redesignating paragraphs (8) and (9) as paragraphs (7)
and (8), respectively.
(c) Consolidation Loan Interest Rates.--
(1) FFEL loans.--Section 427A(k) (20 U.S.C. 1077a(k)) is
further amended--
(A) in the heading of paragraph (4), by inserting
``before july 1, 2006'' after ``loans'';
(B) by redesignating paragraph (5) as paragraph (6);
and
(C) by inserting after paragraph (4) the following:
``(5) Consolidation loans on or after july 1, 2006.--
``(A) Borrower election.--With respect to any
consolidation loan under section 428C for which the
application is received by an eligible lender on or
after July 1, 2006, the applicable rate of interest
shall, at the election of the borrower at the time of
application for the loan, be either at the rate
determined under subparagraph (B) or the rate
determined under subparagraph (C).
``(B) Variable rate.--Except as provided in
subparagraph (D), the rate determined under this
subparagraph shall, during any 12-month period
beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and, for such 12-
month period, not be more than--
``(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
held prior to such June 1; plus
``(ii) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(C) Fixed rate.--Except as provided in subparagraph
(D), the rate determined under this subparagraph shall
be determined for the duration of the term of the loan
on the July 1 that is or precedes the date on which the
application is received by an eligible lender, and
shall be, for such duration, not more than--
``(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
held prior to the June 1 immediately preceding
such July 1; plus
``(ii) 3.3 percent,
except that such rate shall not exceed 8.25 percent.
``(D) Consolidation of plus loans.--In the case of
any such consolidation loan that is used to repay loans
each of which was made under section 428B or was a
Federal Direct PLUS Loan (or both), the rates
determined under clauses (B) and (C) shall be
determined--
``(i) by substituting `3.1 percent' for `2.3
percent';
``(ii) by substituting `4.1 percent' for `3.3
percent'; and
``(iii) by substituting `9.0 percent' for
`8.25 percent'.''.
(2) Direct loans.--Section 455(b)(6) (20 U.S.C. 1087e(b)(6))
is further amended--
(A) in the heading of subparagraph (D), by inserting
``before july 1, 2006'' after ``loans''
(B) by redesignating subparagraph (E) as subparagraph
(F); and
(C) by inserting after subparagraph (D) the
following:
``(E) Consolidation loans on or after july 1, 2006.--
``(i) Borrower election.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to any Federal Direct Consolidation
Loan for which the application is received by
an eligible lender on or after July 1, 2006,
the applicable rate of interest shall, at the
election of the borrower at the time of
application for the loan, be either at the rate
determined under clause (ii) or the rate
determined under clause (iii).
``(ii) Variable rate.--Except as provided in
clause (iv), the rate determined under this
clause shall, during any 12-month period
beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and, for
such 12-month period, be equal to--
``(I) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
``(II) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
``(iii) Fixed rate.--Except as provided in
clause (iv), the rate determined under this
clause shall be determined for the duration of
the term of the loan on the July 1 that is or
precedes the date on which the application is
received by an eligible lender, and shall be,
for such duration, equal to--
``(I) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to the June 1
immediately preceding such July 1; plus
``(II) 3.3 percent,
except that such rate shall not exceed 8.25
percent.
``(iv) Consolidation of plus loans.--In the
case of any such Federal Direct Consolidation
Loan that is used to repay loans each of which
was made under section 428B or was a Federal
Direct PLUS Loan (or both), the rates
determined under clauses (ii) and (iii) shall
be determined--
``(I) by substituting `3.1 percent'
for `2.3 percent';
``(II) by substituting `4.1 percent'
for `3.3 percent'; and
``(III) by substituting `9.0 percent'
for `8.25 percent'.''.
(d) Consolidation Loan Conforming Amendment.--Section
428C(c)(1)(A)(ii) (20 U.S.C. 1078-3(c)(1)(A)(ii)) is amended by
striking ``section 427A(l)(3)'' and inserting ``section 427A(k)(5)''.
(e) Conforming Amendments for Special Allowances.--
(1) Amendment.--Subparagraph (I) of section 438(b)(2) (20
U.S.C. 1087-1(b)(2)) is amended--
(A) by striking clause (ii) and inserting the
following:
``(ii) In school and grace period.--In the
case of any loan for which the first
disbursement is made on or after January 1,
2000, and for which the applicable interest
rate is described in section 427A(k)(2), clause
(i)(III) of this subparagraph shall be applied
by substituting `1.74 percent' for `2.34
percent'.'';
(B) in clause (iii)--
(i) by striking ``or (l)(2)''; and
(ii) by striking ``, subject to clause (v) of
this subparagraph'';
(C) in clause (iv)--
(i) by striking ``or (l)(3)'' and inserting
``or (k)(5)''; and
(ii) by striking ``, subject to clause (vi)
of this subparagraph''; and
(D) by striking clauses (v), (vi), and (vii) and
inserting the following:
``(v) Recapture of excess interest.--
``(I) Excess credited.--With respect
to a loan on which the applicable
interest rate is determined under
section 427A(k) and for which the first
disbursement of principal is made on or
after July 1, 2006, if the applicable
interest rate for any 3-month period
exceeds the special allowance support
level applicable to such loan under
this subparagraph for such period, then
an adjustment shall be made by
calculating the excess interest in the
amount computed under subclause (II) of
this clause, and by crediting the
excess interest to the Government not
less often than annually.
``(II) Calculation of excess.--The
amount of any adjustment of interest on
a loan to be made under this subsection
for any quarter shall be equal to--
``(aa) the applicable
interest rate minus the special
allowance support level
determined under this
subparagraph; multiplied by
``(bb) the average daily
principal balance of the loan
(not including unearned
interest added to principal)
during such calendar quarter;
divided by
``(cc) four.
``(III) Special allowance support
level.--For purposes of this clause,
the term `special allowance support
level' means, for any loan, a number
expressed as a percentage equal to the
sum of the rates determined under
subclauses (I) and (III) of clause (i),
and applying any substitution rules
applicable to such loan under clauses
(ii), (iii), and (iv) in determining
such sum.''.
(2) Effective date.--The amendments made by this subsection
shall not apply with respect to any special allowance payment
made under section 438 of the Higher Education Act of 1965 (20
U.S.C 1087-1) before July 1, 2006.
SEC. 424. ADDITIONAL LOAN TERMS AND CONDITIONS.
(a) Federal Default Fees.--
(1) In general.--Subparagraph (H) of section 428(b)(1) (20
U.S.C. 1078(b)(1)(H)) is amended to read as follows:
``(H) provides--
``(i) for loans for which the first
disbursement of principal is made before July,
1, 2006, for the collection of a single
insurance premium equal to not more than 1.0
percent of the principal amount of the loan, by
deduction proportionately from each installment
payment of the proceeds of the loan to the
borrower, and insures that the proceeds of the
premium will not be used for incentive payments
to lenders; or
``(ii) for loans for which the first
disbursement of principal is made on or after
July 1, 2006, for the collection and deposit
into the Federal Student Loan Reserve Fund
under section 422A of a Federal default fee of
1.0 percent of the principal amount of such
loan, which shall be deducted proportionately
from each installment payment of the proceeds
of the loan to the borrower prior to payment to
the borrower, and insures that the proceeds of
the Federal default fee will not be used for
incentive payments to lenders;''.
(2) Unsubsidized loans.--Section 428H(h) (20 U.S.C. 1078-
8(h)) is amended by adding at the end the following new
sentence: ``In lieu of the insurance premium authorized under
the preceding sentence, and effective for loans for which the
first disbursement of principal is made on or after July 1,
2006, each State or nonprofit private institution or
organization having an agreement with the Secretary under
section 428(b)(1) shall collect and deposit into the Federal
Student Loan Reserve Fund under section 422A a Federal default
fee of 1.0 percent of the principal amount of the loan,
obtained by deduction proportionately from each installment
payment of the proceeds of the loan to the borrower.''.
(3) Voluntary flexible agreements.--Section 428A(a)(1) (20
U.S.C. 1078-1(a)(1)) is amended--
(A) by striking ``or'' at the end of subparagraph
(A);
(B) by striking the period at the end of subparagraph
(B) and inserting ``; or''; and
(C) by adding at the end the following new
subparagraph:
``(C) the Federal default fee required by section
428(b)(1)(H) and the second sentence of section
428H(h).''.
(b) Disbursement.--Section 428(b)(1)(N) (20 U.S.C. 1078(b)(1)(N)(ii))
is amended--
(1) in clause (i), by inserting ``(including an eligible
foreign institution, except as provided in clause (ii))'' after
``institution''; and
(2) in clause (ii), by striking ``or at an eligible foreign
institution''.
(c) Repayment Plans.--
(1) FFEL loans.--Section 428(b)(9)(A) (20 U.S.C.
1078(b)(9)(A)) is amended--
(A) by inserting before the semicolon at the end of
clause (ii) the following: ``, and the Secretary may
not restrict the proportions or ratios by which such
payments may be graduated with the informed agreement
of the borrower'';
(B) by striking ``and'' at the end of clause (iii);
(C) by redesignating clause (iv) as clause (v); and
(D) by inserting after clause (iii) the following new
clause:
``(iv) a delayed repayment plan under which
the borrower makes scheduled payments for not
more than 2 years that are annually not less
than the amount of interest due or $600,
whichever is greater, and then makes payments
in accordance with clause (i), (ii), or (iii);
and''.
(2) Direct loans.--Section 455(d)(1) (20 U.S.C. 1087e(d)(1))
is amended--
(A) by redesignating subparagraph (D) as subparagraph
(E); and
(B) by striking subparagraphs (A), (B), and (C) and
inserting the following:
``(A) a standard repayment plan, consistent with
subsection (a)(1) of this section and with section
428(b)(9)(A)(i);
``(B) a graduated repayment plan, consistent with
section 428(b)(9)(A)(ii);
``(C) an extended repayment plan, consistent with
section 428(b)(9)(A)(v), except that the borrower shall
annually repay a minimum amount determined by the
Secretary in accordance with section 428(b)(1)(L);
``(D) a delayed repayment plan under which the
borrower makes scheduled payments for not more than 2
years that are annually not less than the amount of
interest due or $600, whichever is greater, and then
makes payments in accordance with subparagraph (A),
(B), or (C); and''.
(d) Origination Fees.--
(1) FFEL program.--Paragraph (2) of section 438(c) (20 U.S.C.
1087-1(c)) is amended--
(A) by striking the designation and heading of such
paragraph and inserting the following:
``(2) Amount of origination fees.--
``(A) In general.--''; and
(B) by adding at the end the following new
subparagraph:
``(B) Subsequent reductions.--Subparagraph (A) shall
be applied to loans made under this part (other than
loans made under sections 428C and 439(o))--
``(i) by substituting `2.0 percent' for `3.0
percent' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2006, and before July 1, 2007;
``(ii) by substituting `1.5 percent' for `3.0
percent' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2007, and before July 1, 2008;
``(iii) by substituting `1.0 percent' for
`3.0 percent' with respect to loans for which
the first disbursement of principal is made on
or after July 1, 2008, and before July 1, 2009;
``(iv) by substituting `0.5 percent' for `3.0
percent' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2009, and before July 1, 2010;
and
``(v) by substituting `0.0 percent' for `3.0
percent' with respect to loans for which the
first disbursement of principal is made on or
after July 1, 2010.''.
(2) Direct loan program.--Subsection (c) of section 455 (20
U.S.C. 1087e(c)) is amended to read as follows:
``(c) Loan Fee.--
``(1) In general.--The Secretary shall charge the borrower of
a loan made under this part an origination fee of 4.0 percent
of the principal amount of loan.
``(2) Subsequent reduction.--Paragraph (1) shall be applied
to loans made under this part, other than consolidation loans
and PLUS loans--
``(A) by substituting `not more or less than 3.0
percent' for `4.0 percent' with respect to loans for
which the first disbursement of principal is made on or
after July 1, 2006, and before July 1, 2007;
``(B) by substituting `not more or less than 2.5
percent' for `4.0 percent' with respect to loans for
which the first disbursement of principal is made on or
after July 1, 2007, and before July 1, 2008;
``(C) by substituting `not more or less than 2.0
percent' for `4.0 percent' with respect to loans for
which the first disbursement of principal is made on or
after July 1, 2008, and before July 1, 2009;
``(D) by substituting `not more or less than 1.5
percent' for `4.0 percent' with respect to loans for
which the first disbursement of principal is made on or
after July 1, 2009, and before July 1, 2010; and
``(E) by substituting `not more or less than 1.0
percent' for `4.0 percent' with respect to loans for
which the first disbursement of principal is made on or
after July 1, 2010.
``(3) Waivers and repayment incentives prohibited.--Beginning
with loans made on or after July 1, 2006, the Secretary is
prohibited--
``(A) from waiving any amount of the loan fee
prescribed under this section as part of a repayment
incentive in section 455(b)(7); and
``(B) from providing any repayment incentive before
the borrower enters repayment.''.
(e) Fixed Rate Offset Charge.--
(1) FFEL consolidation loans.--Section 438(c) (20 U.S.C.
1087-1(c)) is further amended--
(A) in paragraph (1)(A), by inserting after
``paragraph (2) of this subsection'' the following:
``and the amount the lender is authorized to collect as
a fixed rate offset charge in accordance with paragraph
(9) of this subsection'';
(B) in paragraph (1)(B)--
(i) by inserting ``and the fixed rate offset
charge'' after ``origination fee''; and
(ii) by inserting ``and fixed rate offset
charges'' after ``origination fees'';
(C) in paragraphs (3) and (4), by inserting ``and
fixed rate offset charge'' after ``origination fee''
each place it appears;
(D) in paragraph (5)--
(i) by inserting ``or fixed rate offset
charge'' after ``origination fee''; and
(ii) by inserting ``or fixed rate offset
charges'' after ``origination fees'';
(E) in paragraph (7), by inserting ``and fixed rate
offset charges'' after ``origination fees''; and
(F) by adding at the end the following new paragraph:
``(9) Fixed rate offset charges for consolidation loans.--For
any loan under section 428C for which the borrower elects to
take a fixed rate under section 427A(k)(5)(C), the lender is
authorized to collect a fixed rate offset charge in an amount
not to exceed 0.5 percent of the principal amount of the loan.
Such amount may be added to the principal amount of the loan
for repayment by the borrower.''.
(2) Direct loans.--Section 455(c) (20 U.S.C. 1087e(c)), as
amended by subsection (d)(2) of this section, is further
amended by adding at the end the following new paragraph:
``(4) Fixed rate offset charges for consolidation loans.--For
any Federal Direct Consolidation Loan for which the borrower
elects to take a fixed rate under section 455(b)(6)(E)(iii),
the Secretary shall collect a fixed rate offset charge in an
amount not to exceed 0.5 percent of the principal amount of the
loan. Such amount may be added to the principal amount of the
loan for repayment by the borrower. Such amount is not subject
to the requirements of paragraph (3) of this subsection.''.
SEC. 425. CONSOLIDATION LOAN CHANGES.
(a) Cross-Consolidation Between Programs.--Section 428C (20 U.S.C.
1078-3) is amended--
(1) in subsection (a)(3)(B)(i)--
(A) by inserting ``or under section 455(g)'' after
``under this section'' both places it appears;
(B) by inserting ``under both sections'' after
``terminates''
(C) by striking ``and'' at the end of subclause
(III);
(D) by striking the period at the end of subclause
(IV) and inserting ``; and''; and
(E) by adding at the end the following new subclause:
``(V) an individual may obtain a subsequent
consolidation loan under section 455(g) only for the
purposes of obtaining an income contingent repayment
plan, and only if the loan has been submitted to the
guaranty agency for default aversion.''; and
(2) in subsection (b)(5), by striking the first sentence and
inserting the following: ``In the event that a lender with an
agreement under subsection (a)(1) of this section denies a
consolidation loan application submitted to it by an eligible
borrower under this section, or denies an application submitted
to it by such a borrower for a consolidation loan with income-
sensitive repayment terms, the Secretary shall offer any such
borrower who applies for it, a direct consolidation loan. The
Secretary shall offer such a loan to a borrower who has
defaulted, for the purpose of resolving the default.''.
(b) Repeal of in-School Consolidation.--
(1) Definition of repayment period.--Section 428(b)(7)(A) (20
U.S.C. 1078(b)(7)(A)) is amended by striking ``shall begin--''
and all that follows through ``earlier date.'' and inserting
the following: ``shall begin the day after 6 months after the
date the student ceases to carry at least one-half the normal
full-time academic workload (as determined by the
institution).''.
(2) Conforming change to eligible borrower definition.--
Section 428C(a)(3)(A)(ii)(I) (20 U.S.C. 1078-3(a)(3)(A)(ii)(I))
is amended by inserting ``as determined under section
428(b)(7)(A)'' after ``repayment status''.
(c) Additional Amendments.--Section 428C (20 U.S.C. 1078-3) is
amended--
(1) in subsection (a)(3), by striking subparagraph (C); and
(2) in subsection (b)(1)--
(A) by striking everything after ``under this
section'' the first place it appears in subparagraph
(A) and inserting the following: ``and that, if all the
borrower's loans under this part are held by a single
holder, the borrower has notified such holder that the
borrower is seeking to obtain a consolidation loan
under this section;'';
(B) by striking ``(i) which'' and all that follows
through ``and (ii)'' in subparagraph (C);
(C) by striking ``and'' at the end of subparagraph
(E);
(D) by redesignating subparagraph (F) as subparagraph
(G); and
(E) by inserting after subparagraph (E) the following
new subparagraph:
``(F) that the lender of the consolidation loan
shall, upon application for such loan, provide the
borrower with a clear and conspicuous notice of at
least the following information:
``(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
loan forgiveness, cancellation, deferment, and
reduced interest rates on those underlying
loans;
``(iii) the ability of the borrower to prepay
the loan, pay on a shorter schedule, and to
change repayment plans;
``(iv) that borrower benefit programs may
vary among different loan holders, and a
description of how the borrower benefits may
vary among different loan holders;
``(v) the tax benefits for which borrowers
may be eligible;
``(vi) the consequences of default; and
``(vii) that by making the application the
applicant is not obligated to agree to take the
consolidation loan; and''.
(d) Effective Date for Single Holder Amendment.--The amendment made
by subsection (c)(2)(A) shall apply with respect to any loan made under
section 428C of the Higher Education Act of 1965 (20 U.S.C. 1078-3) for
which the application is received by an eligible lender on or after
July 1, 2006.
(e) Conforming Amendments to Direct Loan Program.--Section 455 (20
U.S.C. 1087e) is amended
(1) in subsection (a)(1) by inserting ``428C,'' after
``428B,'';
(2) in subsection (a)(2)--
(A) by striking ``and'' at the end of subparagraph
(B);
(B) by redesignating subparagraph (C) as subparagraph
(D); and
(C) by inserting after subparagraph (B) the
following:
``(C) section 428C shall be known as `Federal Direct
Consolidation Loans'; and ''; and
(3) in subsection (g)--
(A) by striking the second sentence; and
(B) by adding at the end the following new sentences:
``To be eligible for a consolidation loan under this
part, a borrower must meet the eligibility criteria set
forth in section 428C(a)(3). The Secretary, upon
application for such a loan, shall comply with the
requirements applicable to a lender under section
428C(b)(1)(F).''.
SEC. 426. DEFERMENT OF STUDENT LOANS FOR MILITARY SERVICE.
(a) Federal Family Education Loans.--Section 428(b)(1)(M) (20 U.S.C.
1078(b)(1)(M)) is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by redesignating clause (iii) as clause (iv); and
(3) by inserting after clause (ii) the following new clause:
``(iii) not in excess of 3 years during which
the borrower--
``(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; or''.
(b) Direct Loans.--Section 455(f)(2) (20 U.S.C. 1087e(f)(2)) is
amended--
(1) by redesignating subparagraph (C) as subparagraph (D);
and
(2) by inserting after subparagraph (B) the following new
subparagraph:
``(C) not in excess of 3 years during which the
borrower--
``(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; or''.
(c) Perkins Loans.--Section 464(c)(2)(A) (20 U.S.C. 1087dd(c)(2)(A))
is amended--
(1) by redesignating clauses (iii) and (iv) as clauses (iv)
and (v), respectively; and
(2) by inserting after clause (ii) the following new clause:
``(iii) not in excess of 3 years during which the borrower--
``(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;''.
(d) Definitions.--Section 481 (20 U.S.C. 1088) is amended by adding
at the end the following new subsection:
``(d) Definitions for Military Deferments.--For purposes of parts B,
D, and E of this title:
``(1) Active duty.--The term `active duty' has the meaning
given such term in section 101(d)(1) of title 10, United States
Code, except that such term does not include active duty for
training or attendance at a service school.
``(2) Military operation.--The term `military operation'
means a contingency operation as such term is defined in
section 101(a)(13) of title 10, United States Code.
``(3) National emergency.--The term `national emergency'
means the national emergency by reason of certain terrorist
attacks declared by the President on September 14, 2001, or
subsequent national emergencies declared by the President by
reason of terrorist attacks.
``(4) Serving on active duty.--The term `serving on active
duty during a war or other military operation or national
emergency' means service by an individual who is--
``(A) a Reserve of an Armed Force ordered to active
duty under section 12301(a), 12301(g), 12302, 12304, or
12306 of title 10, United States Code, or any retired
member of an Armed Force ordered to active duty under
section 688 of such title, for service in connection
with a war or other military operation or national
emergency, regardless of the location at which such
active duty service is performed; and
``(B) any other member of an Armed Force on active
duty in connection with such emergency or subsequent
actions or conditions who has been assigned to a duty
station at a location other than the location at which
such member is normally assigned.
``(5) Qualifying national guard duty.--The term `qualifying
National Guard duty during a war or other military operation or
national emergency' means service as a member of the National
Guard on full-time National Guard duty (as defined in section
101(d)(5) of title 10, United States Code) under a call to
active service authorized by the President or the Secretary of
Defense for a period of more than 30 consecutive days under
section 502(f) of title 32, United States Code, in connection
with a war, other military operation, or a national emergency
declared by the President and supported by Federal funds.''.
(e) Rule of Construction.--Nothing in the amendments made by this
section shall be construed to authorize any refunding of any repayment
of a loan.
(f) Effective Date.--The amendments made by this section shall apply
with respect to loans for which the first disbursement is made on or
after July 1, 1993, to an individual who is a new borrower (within the
meaning of section 103 of the Higher Education Act of 1965 (20 U.S.C.
1003)) on or after such date.
SEC. 427. 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) Purposes.--The purposes of this section are--
``(1) to encourage highly trained individuals to enter and
continue in service in areas of national need; and
``(2) to reduce the burden of student debt for Americans who
dedicate their careers to service in areas of national need.
``(b) Program Authorized.--
``(1) In general.--The Secretary is authorized to carry out a
program of assuming the obligation to repay, pursuant to
paragraphs (2) of subsection (c) and subsection (d), a
qualified loan amount for a loan made, insured, or guaranteed
under this part or part D (other than loans made under section
428B and 428C and comparable loans made under part D), for any
new borrower after the date of enactment of the College Access
and Opportunity Act of 2005, who--
``(A) has been employed full-time for at least 5
consecutive complete school, academic, or calendar
years, as appropriate, in an area of national need
described in subsection (c); and
``(B) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Award basis.--Loan repayment under this section shall
be on a first-come, first-served basis pursuant to the
designation under subsection (c) and subject to the
availability of appropriations.
``(3) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of
this section.
``(c) Areas of National Need.--
``(1) Statutory categories.--For purposes of this section, an
individual shall be treated as employed in an area of national
need if the individual is employed full time and is any of the
following:
``(A) Early childhood educators.--An individual who
is employed as an early childhood educator in an
eligible preschool program or child care facility in a
low-income community, and who is involved directly in
the care, development and education of infants,
toddlers, or young children through age five.
``(B) Nurses.--An individual who is employed--
``(i) as a nurse in a clinical setting; or
``(ii) 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)).
``(C) Foreign language specialists.--An individual
who has obtained a baccalaureate degree in a critical
foreign language and is employed--
``(i) in an elementary or secondary school as
a teacher of a critical foreign language; or
``(ii) in an agency of the United States
Government in a position that regularly
requires the use of such critical foreign
language.
``(D) Librarians.--An individual who is employed
full-time as a libarian in--
``(i) a public library that serves a
geographic area within which the public schools
have a combined average of 30 percent or more
of their total student enrollments composed of
children counted under section 1113(a)(5) of
the Elementary and Secondary Education Act of
1965; or
``(ii) an elementary or secondary school
which is in the school district of a local
educational agency which is eligible in such
year for assistance pursuant to title I of the
Elementary and Secondary Education Act of 1965,
and which for the purpose of this paragraph and
for that year has been 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
counted under section 1113(a)(5) of the
Elementary and Secondary Education Act of 1965
exceeds 30 percent of the total enrollment of
that school.
``(E) Highly qualified teachers: bilingual education
and low-income communities.--An individual who--
``(i) is highly qualified as such term is
defined in section 9101 of the Elementary and
Secondary Education Act of 1965; and
``(ii)(I) is employed as a full-time teacher
of bilingual education; or
``(II) is employed as a teacher for service
in a public or nonprofit private elementary or
secondary school which is in the school
district of a local educational agency which is
eligible in such year for assistance pursuant
to title I of the Elementary and Secondary
Education Act of 1965, and which for the
purpose of this paragraph and for that year has
been 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 counted under
section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965 exceeds 40
percent of the total enrollment of that school.
``(F) First responders in low-income communities.--An
individual who--
``(i) is employed as a firefighter, police
officer, or emergency medical technician; and
``(ii) serves as such in a low-income
community.
``(G) Child welfare workers.--An individual who--
``(i) has obtained a degree in social work or
a related field with a focus on serving
children and families; and
``(ii) is employed in public or private child
welfare services.
``(H) Speech-language pathologists.--An individual
who is a speech-language pathologist, who is employed
in an eligible preschool program or an elementary or
secondary school, and who has, at a minimum, a graduate
degree in speech-language pathology, or communication
sciences and disorders.
``(I) Additional areas of national need.--An
individual who is employed in an area designated by the
Secretary under paragraph (2) and has completed a
baccalaureate or advanced degree related to such area.
``(2) Designation of areas of national need.--After
consultation with appropriate Federal, State, and community-
based agencies and organizations, the Secretary shall designate
areas of national need. In making such designations, the
Secretary shall take into account the extent to which--
``(A) the national interest in the area is
compelling;
``(B) the area suffers from a critical lack of
qualified personnel; and
``(C) other Federal programs support the area
concerned.
``(d) Qualified Loan Amount.--The Secretary shall repay not more than
$5,000 in the aggregate of the loan obligation on a loan made under
section 428 or 428H that is outstanding after the completion of the
fifth consecutive school, academic, or calendar year, as appropriate,
described in subsection (b)(1).
``(e) Construction.--Nothing in this section shall be construed to
authorize the refunding of any repayment of a loan made under section
428 or 428H.
``(f) Ineligibility of National Service Award Recipients.--No student
borrower may, for the same service, receive a benefit under both this
section and subtitle D of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12601 et seq.).
``(g) Ineligibility for Double Benefits.--No borrower may receive a
reduction of loan obligations under both this section and section 428J
or 460.
``(h) Definitions.--In this section
``(1) Child care facility.--The term `child care facility'
means a facility, including a home, that--
``(A) provides for the education and care of children
from birth through age 5; and
``(B) meets any applicable State or local government
licensing, certification, approval, or registration
requirements.
``(2) Critical foreign language.--The term `critical foreign
language' includes the languages of Arabic, Korean, Japanese,
Chinese, Pashto, Persian-Farsi, Serbian-Croatian, Russian,
Portuguese, and any other language identified by the Secretary
of Education, in consultation with the Defense Language
Institute, the Foreign Service Institute, and the National
Security Education Program, as a critical foreign language
need.
``(3) Early childhood educator.--The term `early childhood
educator' means an early childhood educator employed in an
eligible preschool program who has completed a baccalaureate or
advanced degree in early childhood development, early childhood
education, or in a field related to early childhood education.
``(4) Eligible preschool program.--The term `eligible
preschool program' means a program that provides for the care,
development, and education of infants, toddlers, or young
children through age 5, meets any applicable State or local
government licensing, certification, approval, and registration
requirements, and is operated by--
``(A) a public or private school that may be
supported, sponsored, supervised, or administered by a
local educational agency;
``(B) a Head Start agency serving as a grantee
designated under the Head Start Act (42 U.S.C. 9831 et
seq.);
``(C) a nonprofit or community based organization; or
``(D) a child care program, including a home.
``(5) Low-income community.--In this subsection, the term
`low-income community' means a community in which 70 percent of
households earn less than 85 percent of the State median
household income.
``(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 section
801 of the Public Health Service Act (42 U.S.C.
296)).
``(iv) A nursing degree from a diploma school
of nursing (as defined in section 801 of the
Public Health Service Act (42 U.S.C. 296)).
``(7) Speech-language pathologist.--The term `speech-language
pathologist' means a speech-language pathologist who meets all
of the following:
``(A) the speech-language pathologist 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) of this Act; and
``(B) the speech-language pathologist meets or
exceeds the qualifications as defined in section
1861(ll) of the Social Security Act (42 U.S.C. 1395x).
``(i) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for fiscal year 2006 and such sums as may be necessary for each of the
5 succeeding fiscal years.''.
SEC. 428. UNSUBSIDIZED STAFFORD LOANS.
(a) Amendment.--Section 428H(d)(2)(C) (20 U.S.C. 1078-8(d)(2)(C)) is
amended by striking ``$10,000'' and inserting ``$12,000''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
to loans for which the first disbursement of principal is made on or
after July 1, 2007.
SEC. 429. ELIMINATION OF TERMINATION DATES FROM TAXPAYER-TEACHER
PROTECTION ACT OF 2004.
(a) Extension of Limitations on Special Allowance for Loans From the
Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) (20 U.S.C. 1087-
1(b)(2)(B)) is amended--
(1) in clause (iv), by striking ``and before January 1,
2006,''; and
(2) in clause (v)(II)--
(A) by striking ``and before January 1, 2006,'' each
place it appears in divisions (aa) and (bb); and
(B) by striking ``, and before January 1, 2006'' in
division (cc).
(b) Additional Limitation on Special Allowance for Loans From the
Proceeds of Tax Exempt Issues.--Section 438(b)(2)(B) (20 U.S.C 1087-
1(b)(2)(B)) is further amended by adding at the end thereof the
following new clause:
``(vi) Notwithstanding clauses (i), (ii), and (v), the
quarterly rate of the special allowance shall be the rate
determined under subparagraph (A), (E), (F), (G), (H), or (I)
of this paragraph, as the case may be, for a holder of loans--
``(I) that were made or purchased on or after October
1, 2005; or
``(II) that were not earning a quarterly rate of
special allowance determined under clauses (i) or (ii)
of subparagraph (B) of this paragraph (20 U.S.C. 1087-
1(b)(2)(b)) as of October 1, 2005.''.
(c) Elimination of Effective Date Limitation on Higher Teacher Loan
Forgiveness Benefits.--Paragraph (3) of section 3(b) of the Taxpayer-
Teacher Protection Act of 2004 (20 U.S.C. 1078-10, note) is repealed.
(d) Additional Changes to Teacher Loan Forgiveness Provisions.--
(1) FFEL provisions.--Section 428J (20 U.S.C. 1078-10) is
amended--
(A) in subsection (b)(1)(B), by inserting after
``1965'' the following: ``, or meets the requirements
of subsection (g)(3)'';
(B) in subsection (c)(3)--
(i) by striking ``and'' at the end of
subparagraph (A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``; and''; and
(iii) by inserting after subparagraph (B) the
following new subparagraph:
``(C) an elementary or secondary school teacher who
primarily teaches reading--
``(i) who meets the requirements of
subsection (b);
``(ii) who has obtained a separate reading
instruction credential from the State in which
the teacher is employed; and
``(iii) who is certified by the chief
administrative officer of the public or
nonprofit private elementary or secondary
school in which the borrower is employed to
teach reading--
``(I) as being proficient in teaching
the essential components of reading
instruction as defined in section 1208
of the Elementary and Secondary
Education Act of 1965; and
``(II) as having such credential.'';
and
(C) in subsection (g), by adding at the end the
following new paragraph:
``(3) Private school teachers.--An individual who is employed
as a teacher in a private school and is exempt from State
certification requirements (unless otherwise applicable under
State law), may, in lieu of the requirement of subsection
(a)(1)(B), have such employment treated as qualifying
employment under this section if such individual is permitted
to and does satisfy rigorous subject knowledge and skills tests
by taking competency tests in the applicable grade levels and
subject areas. For such purposes, the competency tests taken by
such a private school teacher must be recognized by 5 or more
States for the purpose of fulfilling the highly qualified
teacher requirements under section 9101 of the Elementary and
Secondary Education Act of 1965, and the score achieved by such
teacher on each test must equal or exceed the average passing
score of those 5 States.''.
(2) Direct loan provisions.--Section 460 (20 U.S.C. 1087j) is
amended--
(A) in subsection (b)(1)(A)(ii), by inserting after
``1965'' the following: ``, or meets the requirements
of subsection (g)(3)'';
(B) in subsection (c)(3)--
(i) by striking ``and'' at the end of
subparagraph (A);
(ii) by striking the period at the end of
subparagraph (B) and inserting ``; and''; and
(iii) by inserting after subparagraph (B) the
following new subparagraph:
``(C) an elementary or secondary school teacher who
primarily teaches reading--
``(i) who meets the requirements of
subsection (b);
``(ii) who has obtained a separate reading
instruction credential from the State in which
the teacher is employed; and
``(iii) who is certified by the chief
administrative officer of the public or
nonprofit private elementary or secondary
school in which the borrower is employed to
teach reading--
``(I) as being proficient in teaching
the essential components of reading
instruction as defined in section 1208
of the Elementary and Secondary
Education Act of 1965; and
``(II) as having such credential.'';
and
(C) in subsection (g), by adding at the end the
following new paragraph:
``(3) Private school teachers.--An individual who is employed
as a teacher in a private school and is exempt from State
certification requirements (unless otherwise applicable under
State law), may, in lieu of the requirement of subsection
(a)(1)(A)(ii), have such employment treated as qualifying
employment under this section if such individual is permitted
to and does satisfy rigorous subject knowledge and skills tests
by taking competency tests in the applicable grade levels and
subject areas. For such purposes, the competency tests taken by
such a private school teacher must be recognized by 5 or more
States for the purpose of fulfilling the highly qualified
teacher requirements under section 9101 of the Elementary and
Secondary Education Act of 1965, and the score achieved by such
teacher on each test must equal or exceed the average passing
score of those 5 States.''.
SEC. 430. ADDITIONAL ADMINISTRATIVE PROVISIONS.
(a) Treatment of Exempt Claims.--
(1) Insurance coverage.--Section 428(b)(1)(G) (20 U.S.C.
1078(b)(1)(G)) is amended by inserting before the semicolon at
the end the following: ``and 100 percent of the unpaid
principal amount of exempt claims as defined in subsection
(c)(1)(G)''.
(2) Treatment.--Section 428(c)(1) (20 U.S.C. 1078(c)(1)) is
amended--
(A) by redesignating subparagraph (G) as subparagraph
(I), and moving such subparagraph 2 em spaces to the
left; and
(B) by inserting after subparagraph (F) the following
new subparagraph:
``(G)(i) Notwithstanding any other provisions of this
section, in the case of exempt claims, the Secretary shall
apply the provisions of--
``(I) the fourth sentence of subparagraph (A) by
substituting `100 percent' for `95 percent';
``(II) subparagraph (B)(i) by substituting `100
percent' for `85 percent'; and
``(III) subparagraph (B)(ii) by substituting `100
percent' for `75 percent'.
``(ii) For purposes of clause (i) of this subparagraph, the
term `exempt claims' means claims with respect to loans for
which it is determined that the borrower (or the student on
whose behalf a parent has borrowed), without the lender's or
the institution's knowledge at the time the loan was made,
provided false or erroneous information or took actions that
caused the borrower or the student to be ineligible for all or
a portion of the loan or for interest benefits thereon.''.
(b) Reduction of Insurance/Reinsurance Percentage.--
(1) Insurance percentage reduction.--Section 428(b)(1)(G) as
amended by subsection (a)(1) is further amended by inserting
after the matter inserted by such subsection the following: ``,
except, for any loan for which the first disbursement of
principal is made on or after July 1, 2006, the preceding
provisions of this subparagraph shall be applied by
substituting `96 percent' for `98 percent' ''.
(2) Reinsurance percentage reduction.--Section 428(c)(1) as
amended by subsection (a)(2) is further amended by adding after
subparagraph (G) as added by such subsection the following new
subparagraph:
``(H) Notwithstanding subparagraphs (A) and (B), but subject
to subparagraphs (E) and (F), in the case of a loan for which
the first disbursement of principal is made on or after July 1,
2006, the Secretary shall apply--
``(i) the fourth sentence of subparagraph (A) by
substituting `93 percent' for `95 percent';
``(ii) subparagraph (B)(i) by substituting `83
percent' for `85 percent'; and
``(iii) subparagraph (B)(ii) by substituting `73
percent' for `75 percent'.''.
(3) Increase insurance for exceptional performance.--Section
428I (20 U.S.C. 1078-9) is amended to read as follows:
``SEC. 428I. SPECIAL INSURANCE AND REINSURANCE RULES FOR EXCEPTIONAL
PERFORMANCE.
``(a) Designation of Lenders and Servicers.--
``(1) In general.--Whenever the Secretary determines that an
eligible lender or servicer meets the performance measures
required by paragraph (2), the Secretary shall designate that
eligible lender or servicer, as the case may be, for
exceptional performance. The Secretary shall notify each
appropriate guaranty agency of the eligible lenders and
servicers designated under this section.
``(2) Performance measures.--
``(A) In determining whether to award a lender or
servicer the exceptional performance designation, the
Secretary shall require that the lender or servicer be
performing at or above the 95 percentile of the
industry, and demonstrate improved performance against
the lender's or service's average of the last 3 years
on the factors described in subparagraph (B).
``(B) The factors on which the Secretary shall
require improvement shall include--
``(i) delinquency rates;
``(ii) the rate at which delinquent accounts
are restored to good standing;
``(iii) default rates;
``(iv) the rate of rejected claims; and
``(v) any other such measures as determined
by the Secretary.
``(C) In addition, the Secretary shall not make any
award of such a designation unless the consequence of
the designation is cost-neutral to the Federal
Government.
``(3) Additional information on lenders and servicers.--Each
appropriate guaranty agency shall provide the Secretary with
such other information in its possession regarding an eligible
lender or servicer desiring designation as may relate to the
Secretary's determination under paragraph (1), including but
not limited to any information suggesting that the application
of a lender or servicer for designation should not be approved.
``(4) Determinations by the secretary.--
``(A) The Secretary shall designate an eligible
lender or servicer for exceptional performance if the
eligible lender or servicer meets the performance
measures required by paragraph (2).
``(B) The Secretary shall make the determination
under paragraph (1) based upon the documentation
submitted by the eligible lender or servicer as
specified in regulation, such other information as
provided by any guaranty agency under paragraph (3),
and any information in the possession of the Secretary
or submitted by any other agency or office of the
Federal Government.
``(C) The Secretary shall inform the eligible lender
or servicer and the appropriate guaranty agency that
its application for designation as an exceptional
performance lender or servicer has been approved or
disapproved.
``(5) Transition.--
``(A) Any eligible lender or servicer designated for
exceptional performance as of the day before the date
of enactment of the College Access and Opportunity Act
of 2005 shall continue to be so designated, and subject
to the requirements of this section as in effect on
that day (including revocation), until the performance
standards described in paragraph (2) are established.
``(B) The Secretary shall not designate any
additional eligible lenders or servicers for
exceptional performance until those performance
standards are established.
``(b) Payment to Lenders and Servicers.--A guaranty agency shall pay,
to each eligible lender or servicer (as agent for an eligible lender)
designated under subsection (a), 98 percent of the unpaid principal and
interest of all loans for which claims are submitted for payment by
that eligible lender or servicer for the one-year period following the
receipt by the guaranty agency of the notification of designation under
this section, or until the guaranty agency receives notice from the
Secretary that the designation of the lender or servicer under
subsection (a)(2) has been revoked.
``(c) Revocation Authority.--
``(1) The Secretary shall revoke the designation of a lender
or a servicer under subsection (a) if the Secretary determines
that the lender or servicer has failed to meet the performance
standards required by subsection (a)(2).
``(2) Notwithstanding any other provision of this section, a
designation under subsection (a) may be revoked at any time by
the Secretary, in the Secretary's discretion, if the Secretary
determines that the eligible lender or servicer has failed to
meet the criteria and performance standards established by the
Secretary in regulation, or if the Secretary believes the
lender or servicer may have engaged in fraud in securing
designation under subsection (a), or is failing to service
loans in accordance with program regulations.
``(d) Documentation.--Nothing in this section shall restrict or limit
the authority of guaranty agencies to require the submission of claims
documentation evidencing servicing performed on loans, except that the
guaranty agency may not require greater documentation than that
required for lenders and servicers not designated under subsection (a).
``(e) Special Rule.--Reimbursements made by the Secretary on loans
submitted for claim by an eligible lender or loan servicer designated
for exceptional performance under this section shall not be subject to
additional review by the Secretary or repurchase by the guaranty agency
for any reason other than a determination by the Secretary that the
eligible lender or loan servicer engaged in fraud or other purposeful
misconduct in obtaining designation for exceptional performance.
``(f) Limitation.--Nothing in this section shall be construed to
affect the processing of claims on student loans of eligible lenders
not subject to this section.
``(g) Claims.--A lender or servicer designated under subsection (a)
failing to service loans or otherwise comply with applicable program
regulations shall be considered in violation of section 3729 of title
31, United States Code.
``(h) Termination.--The Secretary may terminate the designation of
lenders and servicers under this section if he determines that
termination would be in the fiscal interest of the United States.
``(i) Definitions.--As used in this section--
``(1) the term `eligible loan' means a loan made, insured, or
guaranteed under this part; and
``(2) the term `servicer' means an entity servicing and
collecting student loans that--
``(A) has substantial experience in servicing and
collecting consumer loans or student loans;
``(B) has an independent financial audit annually
which is furnished to the Secretary and any other
parties designated by the Secretary;
``(C) has business systems which are capable of
meeting the requirements of this part;
``(D) has adequate personnel who are knowledgeable
about the student loan programs authorized by this
part; and
``(E) does not have any owner, majority shareholder,
director, or officer of the entity who has been
convicted of a felony.''.
(4) Effective date of amendments.--The amendments made by
this subsection shall apply with respect to loans for which the
first disbursement of principal is made on or after July 1,
2006.
(c) Documentation of Forbearance Agreements.--Section 428(c) (20
U.S.C. 1078(c)) is further amended--
(1) in paragraph (3)(A)(i), by striking ``in writing''; and
(2) by adding at the end the following new paragraph:
``(10) Documentation of forbearance agreements.--For the
purposes of paragraph (3), the terms of forbearance agreed to
by the parties shall be documented by confirming the agreement
of the borrower by notice to the borrower from the lender, and
by recording the terms in the borrower's file.''.
(d) Consolidation of Defaulted Loans.--Section 428(c) (20 U.S.C.
1078(c)) is further amended--
(1) in paragraph (2)(A)--
(A) by inserting ``(i)'' after ``including''; and
(B) by inserting before the semicolon at the end the
following: ``and (ii) requirements establishing
procedures to preclude consolidation lending from being
an excessive proportion of guaranty agency recoveries
on defaulted loans under this part'';
(2) in paragraph (2)(D), by striking ``paragraph (6)'' and
inserting ``paragraph (6)(A)''; and
(3) in paragraph (6)--
(A) by inserting ``(A)'' before ``For the purpose of
paragraph (2)(D),'';
(B) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively; and
(C) by adding at the end the following new
subparagraphs:
``(B) A guaranty agency shall--
``(i) on or after October 1, 2006--
``(I) not charge the borrower collection costs in an
amount in excess of 18.5 percent of the outstanding
principal and interest of a defaulted loan that is paid
off through consolidation by the borrower under this
title; and
``(II) remit to the Secretary a portion of the
collection charge under subclause (I) equal to 8.5
percent of the outstanding principal and interest of
such defaulted loan; and
``(ii) on and after October 1, 2009, remit to the Secretary
the entire amount charged under clause (i)(I) with respect to
each defaulted loan that is paid off with excess consolidation
proceeds.
``(C) For purposes of subparagraph (B), the term `excess
consolidation proceeds' means, with respect to any guaranty agency for
any Federal fiscal year beginning on or after October 1, 2009, the
proceeds of consolidation of defaulted loans under this title that
exceed 45 percent of the agency's total collections on defaulted loans
in such Federal fiscal year.''.
(e) Voluntary Flexible Agreements.--Section 428A (20 U.S.C. 1078-1)
is amended--
(1) in subsection (a)(1)(B), by striking ``unless the
Secretary'' and all that follows through ``designated
guarantor'';
(2) by striking paragraph (2) of subsection (a);
(3) in paragraph (4)(B) of subsection (a), by striking ``and
any waivers provided to other guaranty agencies under paragraph
(2)'';
(4) by redesignating paragraphs (3) and (4) of subsection (a)
as paragraphs (2) and (3), respectively; and
(5) by striking paragraph (3) of subsection (c) and inserting
the following:
``(3) Notice to interested parties.--Once the Secretary
reaches a tentative agreement in principle under this section,
the Secretary shall publish in the Federal Register a notice
that invites interested parties to comment on the proposed
agreement. The notice shall state how to obtain a copy of the
tentative agreement in principle and shall give interested
parties no less than 30 days to provide comments. The Secretary
may consider such comments prior to providing the notices
pursuant to paragraph (2).''.
(f) Fraud: Repayment Required.--Section 428B(a)(1) (20 U.S.C. 1078-
2(a)(1)) is amended--
(1) by striking ``and'' at the end of subparagraph (A);
(2) by striking the period at the end of subparagraph (B) and
inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(C) if either of the parents has been convicted of,
or has pled nolo contendere or guilty to, a crime
involving fraud in obtaining funds under this title,
such parent has completed the repayment of such funds
to the Secretary, or to the holder in the case of a
loan under this title obtained by fraud.''.
(g) Default Reduction Program.--Section 428F(a)(1) (20 U.S.C. 1078-
6(a)(1)) is amended--
(1) in subparagraph (A), by striking ``consecutive payments
for 12 months'' and inserting ``9 payments made within 20 days
of the due date during 10 consecutive months'';
(2) by redesignating subparagraph (C) as subparagraph (D);
and
(3) by inserting after subparagraph (B) the following new
subparagraph:
``(C) A guaranty agency may charge the borrower and
retain collection costs in an amount not to exceed 18.5
percent of the outstanding principal and interest at
the time of sale of a loan rehabilitated under
subparagraph (A).''.
(h) Financial and Economic Literacy.--
(1) Default reduction program.--Section 428F is further
amended by adding at the end the following:
``(c) Financial and Economic Literacy.--Where appropriate, each
program described under subsection (b) shall include making available
financial and economic education materials for the borrower.''.
(2) Program assistance for borrowers.--Section 432(k)(1) (20
U.S.C. 1082(k)(1)) is amended by striking ``and offering'' and
all that follows through the period and inserting ``, offering
loan repayment matching provisions as part of employee benefit
packages, and providing employees with financial and economic
education and counseling.''.
(i) Credit Bureau Organization Agreements.--Section 430A(a) (20
U.S.C. 1080a(a)) is amended by striking ``agreements with credit bureau
organizations'' and inserting ``an agreement with each national credit
bureau organization (as described in section 603(p) of the Fair Credit
Reporting Act)''.
(j) Uniform Administrative and Claims Procedure.--Section
432(l)(1)(H) (20 U.S.C. 1082(l)(1)(H)) is amended by inserting ``and
anticipated graduation date'' after ``status change''.
(k) Default Reduction Management.--Section 432 is further amended--
(1) by striking subsection (n); and
(2) by redesignating subsections (o) and (p) as subsections
(n) and (o), respectively.
(l) Schools as Lenders.--Paragraph (2) of section 435(d) (20 U.S.C.
1085(d)(2)) is amended to read as follows:
``(2) Requirements for eligible institutions.--
``(A) In general.--To be an eligible lender under
this part, an eligible institution--
``(i) shall employ at least one person whose
full-time responsibilities are limited to the
administration of programs of financial aid for
students attending such institution;
``(ii) shall not be a home study school;
``(iii) shall not--
``(I) make a loan to any
undergraduate student;
``(II) make a loan other than a loan
under section 428 or 428H to a graduate
or professional student; or
``(III) make a loan to a borrower who
is not enrolled at that institution;
``(iv) shall award any contract for
financing, servicing, or administration of
loans under this title on a competitive basis;
``(v) shall offer loans which carry an
origination fee or an interest rate, or both,
that are less than such fee or rate authorized
under the provisions of this title;
``(vi) shall not have a cohort default rate
(as defined in section 435(m)) greater than 10
percent;
``(vii) shall, for any year for which the
institution engages in activities as an
eligible lender, provide for a compliance audit
conducted in accordance with section
428(b)(1)(U)(iii)(I), and the regulations
thereunder, and submit the results of such
audit to the Secretary; and
``(viii) shall use any proceeds from special
allowance payments and interest payments from
borrowers, interest subsidies received from the
Department of Education, and any proceeds from
the sale or other disposition of loans, for
need-based grant programs.
``(B) Administrative expenses.--An eligible lender
under subparagraph (A) shall be permitted to use a
portion of the proceeds described in subparagraph
(A)(viii) for reasonable and direct administrative
expenses.
``(C) Supplement, not supplant.--An eligible lender
under subparagraph (A) shall ensure that the proceeds
described in subparagraph (A)(viii) are used to
supplement, and not to supplant, non-Federal funds that
would otherwise be used for need-based grant
programs.''.
(m) Disability Determinations.--Section 437(a) (20 U.S.C. 1087(a)) is
amended by adding at the end the following new sentence: ``In making
such determination of permanent and total disability, the Secretary
shall provide that a borrower who has been certified as permanently and
totally disabled by the Department of Veterans Affairs or the Social
Security Administration shall not be required to present further
documentation for purposes of this title.''.
(n) Treatment of Falsely Certified Borrowers.--Section 437(c)(1) (20
U.S.C. 1087(c)(1)) is amended by inserting ``or parent's eligibility''
after ``such student's eligibility''.
(o) Perfection of Security Interests.--Section 439(d) (20 U.S.C.
1087-2(d)) is amended--
(1) by striking paragraph (3); and
(2) by redesignating paragraphs (4) and (5) as paragraphs (3)
and (4), respectively.
(p) Additional Technical Amendments.--
(1) Section 428(a)(2)(A) (20 U.S.C. 1078(a)(2)(A)) is
amended--
(A) by striking ``and'' at the end of subclause (II)
of clause (i); and
(B) by moving the margin of clause (iii) two ems to
the left.
(2) Section 428(a)(3)(A)(v) (20 U.S.C. 1078(a)(3)(A)(v)) is
amended--
(A) by striking ``or'' at the end of subclause (I);
(B) by striking the period at the end of subclause
(II) and inserting ``; or''; and
(C) by adding after subclause (II) the following new
subclause:
``(III) in the case of a loan disbursed through an
escrow agent, 3 days before the first disbursement of
the loan.''.
(3) Section 428(c)(1)(A) (20 U.S.C. 1078(c)(1)(A)) is amended
by striking ``45 days'' in the last sentence and inserting ``30
days''.
(4) Section 428(i)(1) (20 U.S.C. 1078(i)(1)) is amended by
striking ``21 days'' in the third sentence and inserting ``10
days''.
(5) Section 428G(e) (20 U.S.C. 1078-7(e)) is amended by
striking ``, made to a student to cover the cost of attendance
at an eligible institution outside the United States,''.
(6) Section 428H(e) (20 U.S.C. 1078-8(e)) is amended by
striking paragraph (6) and inserting the following:
``(6) Time limits on billing interest.--A lender may not
receive interest on a loan under this section from a borrower
for any period that precedes the dates described in section
428(a)(3)(A)(v).''.
(7) Section 432(m)(1)(B) (20 U.S.C. 1082(m)(1)(B)) is
amended--
(A) in clause (i), by inserting ``and'' after the
semicolon at the end; and
(B) in clause (ii), by striking ``; and'' and
inserting a period.
(8) Section 438(b)(4)(B) (20 U.S.C. 1087-1(b)(4)(B)) is
amended by striking ``shall be computed'' and all that follows
through ``to the loan'' and inserting ``described in
subparagraph (A) shall be computed using the interest rate
described in section 3902(a) of title 31, United States
Code,''.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AUTHORIZATION OF APPROPRIATIONS.
Section 441(b) (42 U.S.C. 2751(b)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 442. COMMUNITY SERVICE.
Section 441(c)(1) (42 U.S.C. 2751(c)(1)) is amended by striking
``that are open and accessible to the community''.
SEC. 443. ALLOCATION OF FUNDS.
(a) Phaseout of Allocation Based on Previous Allocations.--Subsection
(a) of section 442 (42 U.S.C. 2752(a)) is amended to read as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated pursuant
to section 441(b) for each fiscal year after fiscal year 2007,
the Secretary shall, subject to paragraph (2), first allocate
to each eligible institution an amount equal to the following
percentage of the amount such institution received under
subsection (a) of this section for fiscal year 2007 (as such
subsection was in effect with respect to allocations for such
fiscal year):
``(A) 80 percent for fiscal years 2008 and 2009;
``(B) 60 percent for fiscal years 2010 and 2011;
``(C) 40 percent for fiscal years 2012 and 2013;
``(D) 20 percent for fiscal years 2014 and 2015; and
``(E) 0 percent for fiscal year 2016 and any
succeeding fiscal year.
``(2) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).
``(3) Additional allocations for certain institutions.--
``(A) Allocations permitted.--Notwithstanding any
other provision of this section, the Secretary may
allocate an amount equal to not more than 10 percent of
the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000
among eligible institutions described in subparagraph
(B).
``(B) Eligible institutions.--An otherwise eligible
institution may receive a portion of the allocation
described in subparagraph (A) if--
``(i) not less than 10 percent of the
students attending the institution receive
Federal Pell Grants; and
``(ii)(I) in the case of an institution that
offers programs of at least 4 years in
duration, if its graduation rate for Federal
Pell Grant recipients attending the institution
and graduating within the period of time equal
to normal duration of the longest undergraduate
program offered by the institution, as measured
from the first day of their enrollment, exceeds
the median rate for the class of institution
(as defined in section 131(f)(5)(C)); or
``(II) in the case of an institution that
offers programs of at least 2, but less than 4,
years in duration, if its rate for Federal Pell
Grant recipients attending the institution and
graduating or transferring to an institution
that offers programs of at least 4 years in
duration within the period of time equal to the
normal duration of the program offered, as
measured from the first day of their
enrollment, exceeds the median rate for the
class of institution (as defined in section
131(f)(5)(C)).''.
(b) Effective Date.--The amendment made by subsection (a) shall apply
with respect to any amounts appropriated under section 441(b) of the
Higher Education Act of 1965 (42 U.S.C. 2751(b)) for fiscal year 2008
or any succeeding fiscal year.
SEC. 444. 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. 445. JOB LOCATION AND DEVELOPMENT.
Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is amended--
(1) by striking ``10 percent or $50,000'' and inserting ``15
percent or $75,000''; and
(2) by inserting before the period at the end the following:
``, except that not less than one-third of such amount shall be
specifically allocated to locate and develop community service
jobs''.
SEC. 446. 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 amending subparagraph (C) of subsection (e)(1) to read
as follows:
``(C) requires all resident 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 5 hours each
week, or at least 80 hours during each period of
enrollment, unless the student is engaged in an
institutionally organized or approved study abroad or
externship program; and'';
(3) by amending paragraph (2) of subsection (e) to read as
follows:
``(2) the term `comprehensive student work-learning-service
program'--
``(A) means a student work-learning-service program
that 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
(4) in subsection (f), by striking ``1999 and such sums as
may be necessary for each of the 4 succeeding fiscal years''
and inserting ``2006 and such sums as may be necessary for the
5 succeeding fiscal years''.
PART D--FEDERAL DIRECT LOAN PROGRAM
SEC. 451. REAUTHORIZATION OF THE DIRECT LOAN PROGRAM.
(a) Administrative Expenses.--Section 458(a)(1) (20 U.S.C.
1087h(a)(1)) is amended by striking ``$617,000,000'' and all that
follows through ``fiscal year 2003'' and inserting ``$820,000,000 in
fiscal year 2006, $833,000,000 in fiscal year 2007, $847,000,000 in
fiscal year 2008, $862,000,000 in fiscal year 2009, and $878,000,000 in
fiscal year 2010, and $894,000,000 in fiscal year 2011''.
(b) Calculation Basis.--Subsection (b) of section 458 (20 U.S.C.
1087h(b)) is amended by striking ``shall be calculated--'' and all that
follows through the end of such subsection and inserting ``shall be
calculated on the basis of 0.10 percent of the original principal
amount of outstanding loans on which insurance was issued under part
B.''.
(c) Special Rules: Fee Cap.--Section 458(c)(1) (20 U.S.C.
1087h(c)(1)) is amended by striking subparagraphs (A) through (E) and
inserting the following:
``(A) for fiscal year 2006, shall not exceed
$220,000,000;
``(B) for fiscal year 2007, shall not exceed
$233,000,000;
``(C) for fiscal year 2008, shall not exceed
$247,000,000;
``(D) for fiscal year 2009, shall not exceed
$262,000,000;
``(E) for fiscal year 2010, shall not exceed
$278,000,000; and
``(F) for fiscal year 2011, shall not exceed
$294,000,000.''.
(d) Income Contingent Repayment.--Section 455(e)(2) (20 U.S.C.
1087e(e)(2)) is amended by striking ``and files a Federal income tax
return jointly with the borrower's spouse''.
PART E--FEDERAL PERKINS LOAN PROGRAM
SEC. 461. REAUTHORIZATION OF PROGRAM.
(a) Program Authorization.--
(1) Authorization of appropriations.--Section 461(b) (20
U.S.C. 1087aa(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``1999'' and inserting
``2006''; and
(ii) by striking ``4 succeeding'' and
inserting ``5 succeeding''; and
(B) in paragraph (2), by striking ``2003'' each place
it appears and inserting ``2012''.
(2) Federal capital contribution recovery.--Section 466 (20
U.S.C. 1087ff) is amended--
(A) by striking ``2004'' each place it appears in
subsections (a) and (c) and inserting ``2012''; and
(B) in subsection (a), by striking ``2003'' each
place it appears and inserting ``2011''.
(b) Phaseout of Allocation Based on Previous Allocations.--
(1) Amendment.--Subsection (a) of section 462 (20 U.S.C.
1087bb(a)) is amended to read as follows:
``(a) Allocation Based on Previous Allocation.--
``(1) Base guarantee.--From the amount appropriated pursuant
to section 461(b) for each fiscal year after fiscal year 2007,
the Secretary shall, subject to paragraphs (2) and (3), first
allocate to each eligible institution an amount equal to--
``(A) 100 percent of the amount such institution
received under subsection (a) of this section for
fiscal year 2007 (as such subsection was in effect with
respect to allocations for such fiscal year),
multiplied by
``(B) the institution's default penalty, as
determined under subsection (e), except that if the
institution has a cohort default rate in excess of the
applicable maximum cohort default rate under subsection
(f), the institution may not receive an allocation
under this paragraph.
``(2) Phase out.--For each of the fiscal years after fiscal
year 2007, paragraph (1) shall be applied by substituting for
`100 percent':
``(A) `80 percent' for fiscal years 2008 and 2009;
``(B) `60 percent' for fiscal years 2010 and 2011;
``(C) `40 percent' for fiscal years 2012 and 2013;
``(D) `20 percent' for fiscal years 2014 and 2015;
and
``(E) `0 percent' for fiscal year 2016 and any
succeeding fiscal year.
``(3) Ratable reductions for insufficient appropriations.--
``(A) Reduction of base guarantee.--If the amount
appropriated for any fiscal year is less than the
amount required to be allocated to all institutions
under this subsection, then the amount of the
allocation to each such institution shall be ratably
reduced.
``(B) Additional appropriations allocation.--If
additional amounts are appropriated for any such fiscal
year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount
allocated equals the amount required to be allocated
under this subsection).''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any amounts appropriated under
section 461(b) of the Higher Education Act of 1965 (20 U.S.C.
1087bb(b)) for fiscal year 2008 or any succeeding fiscal year.
(c) 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. 462. 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) Forbearance.--Section 464(e) (20 U.S.C. 1087dd(e)) is amended by
striking ``, upon written request,''.
(c) Special Repayment Rule.--Paragraph (2) of section 464(f) is
amended to read as follows:
``(2) No compromise repayment of a defaulted loan as authorized by
paragraph (1) may be made unless agreed to by the Secretary.''.
(d) Rehabilitation.--Section 464(h)(1)(A) (20 U.S.C. 1087dd(h)(1)(A))
is amended by striking ``12 ontime'' and inserting ``9 on-time''.
SEC. 463. LOAN CANCELLATION.
Section 465(a)(3)(A) (20 U.S.C. 1087ee(a)(3)(A)) is amended--
(1) by inserting ``(D),'' after ``subparagraph (A), (C),'' in
clause (i);
(2) by inserting ``or'' after the semicolon at the end of
clause (ii);
(3) by striking clause (iii); and
(4) by redesignating clause (iv) as clause (iii).
SEC. 464. TECHNICAL AMENDMENTS.
Part E is further amended as follows:
(1) Section 462(g)(1)(E)(i)(I) (20 U.S.C.
1087bb(g)(1)(E)(i)(I)) is amended by inserting ``monthly''
after ``consecutive''.
(2) Section 463(a)(4)(A) (20 U.S.C. 1087cc(a)(4)(A)) is
amended by striking ``the Secretary may'' and inserting ``the
Secretary shall''.
(3) Section 464(c)(1)(D) (20 U.S.C. 1087dd(c)(1)(D)) is
amended by redesignating subclauses (I) and (II) as clauses (i)
and (ii), respectively.
(4) Section 465(a)(2) (20 U.S.C. 1087ee(a)(2)) is amended in
subparagraph (A), by striking ``section 111(c)'' and inserting
``section 1113(a)(5)''.
(5) Section 467(b) (20 U.S.C. 1087gg(b)) is amended by
striking ``(5)(A), (5)(B)(i), or (6)'' and inserting ``(4)(A),
(4)(B), or (5)''.
(6) Section 469(c) (20 U.S.C. 1087ii(c)) is amended--
(A) by striking ``sections 602 and 632'' and
inserting ``sections 602(3) and 632(5)'';
(B) by striking ``qualified professional provider of
early intervention services'' and inserting ``early
intervention services''; and
(C) by striking ``section 672(2)'' and inserting
``section 632(4)''.
PART F--NEED ANALYSIS
SEC. 471. SIGNIFICANTLY SIMPLIFYING THE STUDENT AID APPLICATION
PROCESS.
(a) Expanding the Auto-Zero and Further Simplifying the Simplified
Needs Test.--
(1) Simplified needs test.--Section 479 (20 U.S.C. 1087ss) is
amended--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) by striking clause (i) of
subparagraph (A) and inserting the
following:
``(i) the student's parents file, or are
eligible to file, a form described in paragraph
(3) or certify that they are not required to
file an income tax return, and the student
files, or is eligible to file, such a form or
certifies that the student is not required to
file an income tax return, or the student's
parents, or the student, received benefits at
some time during the previous 12-month period
under a means-tested Federal benefit program as
defined under subsection (d); and''; and
(II) by striking clause (i) of
subparagraph (B) and inserting the
following:
``(i) the student (and the student's spouse,
if any) files, or is eligible to file, a form
described in paragraph (3) or certifies that
the student (and the student's spouse, if any)
is not required to file an income tax return,
or the student (and the student's spouse, if
any) received benefits at some time during the
previous 12-month period under a means-tested
Federal benefit program as defined under
subsection (d); and''; and
(ii) in paragraph (3), by striking ``A
student or family files a form described in
this subsection, or subsection (c), as the case
may be, if the student or family, respectively,
files'' and inserting ``In the case of an
independent student, the student, or in the
case of a dependent student, the parent, files
a form described in this subsection, or
subsection (c), as the case may be, if the
student or parent, as appropriate, files'';
(B) in subsection (c)--
(i) in paragraph (1), by striking
subparagraph (A) and inserting the following:
``(A) the student's parents file, or are eligible to
file, a form described in subsection (b)(3) or certify
that they are not required to file an income tax
return, and the student files, or is eligible to file,
such a form or certifies that the student is not
required to file an income tax return, or the student's
parents, or the student, received benefits at some time
during the previous 12-month period under a means-
tested Federal benefit program as defined in subsection
(d); and''; and
(ii) in paragraph (2), by striking
subparagraph (A) and inserting the following:
``(A) the student (and the student's spouse, if any)
files, or is eligible to file, a form described in
subsection (b)(3) or certifies that the student (and
the student's spouse, if any) is not required to file
an income tax return, or the student (and the student's
spouse, if any) received benefits at some time during
the previous 12-month period under a means-tested
Federal benefit program as defined in subsection (d);
and''; and
(C) by adding at the end the following new
subsections:
``(d) Definition of Means-Tested Federal Benefit Program.--For the
purposes of this section, the term `means-tested Federal benefit
program' means a mandatory spending program of the Federal Government,
other than a program under this title, in which eligibility for the
program's benefits, or the amount of such benefits, or both, are
determined on the basis of income or resources of the individual or
family seeking the benefit, and may include such programs as the
supplemental security income program under title XVI of the Social
Security Act, the food stamp program under the Food Stamp Act of 1977,
the free and reduced price school lunch program established under the
Richard B. Russell National School Lunch Act, the temporary assistance
to needy families program established under part A of title IV of the
Social Security Act, and the women, infants and children program
established under Section 17 of the Child Nutrition Act of 1966, and
other programs identified by the Secretary.
``(e) Reporting Requirements.--The Secretary shall regularly evaluate
the impact of the eligibility guidelines in subsections (b)(1)(A)(i),
(b)(1)(B)(i), (c)(1)(A) and (c)(2)(A) of this section. In particular,
the Secretary shall evaluate whether, under the definition of means-
tested Federal benefit programs in subsection (d), the Simplified Needs
Test continues to be targeted to the maximum number of low- and
moderate-income students.''.
(b) Improvements to Paper and Electronic Forms.--
(1) Common financial aid form development and processing.--
Section 483(a) (20 U.S.C. 1090(a)) is amended--
(A) by striking paragraphs (1), (2), and (5);
(B) by redesignating paragraphs (3), (4), (6), and
(7), as paragraphs (9), (10), (11), and (12),
respectively;
(C) by inserting before paragraph (9), as
redesignated by subparagraph (B), 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). These 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' .
``(2) Early estimates.--
``(A) In general.--The Secretary shall permit
applicants to complete such forms as described in this
subsection in the 4 years prior to enrollment in order
to obtain a non-binding estimate of the family
contribution, as defined in section 473. The estimate
shall clearly and conspicuously indicate that it is
only an estimate of family contribution, and may not
reflect the actual family contribution of the applicant
that shall be used to determine the grant, loan, or
work assistance that the applicant may receive under
this title when enrolled in a program of postsecondary
education. Such applicants shall be permitted to update
information submitted on forms described in this
subsection using the process required under paragraph
(5)(A).
``(B) Evaluation.--Two years after the early
estimates are implemented under this paragraph and from
data gathered from the early estimates, the Secretary
shall evaluate the differences between initial, non-
binding early estimates and the final financial aid
award made available under this title.
``(C) Report.--The Secretary shall provide a report
to the authorizing committees on the results of the
evaluation.
``(3) Paper format.--
``(A) In general.--The Secretary shall produce,
distribute, and process common forms in paper format to
meet the requirements of paragraph (1). The Secretary
shall develop a common paper form for applicants who do
not meet the requirements of subparagraph (B).
``(B) Ez fafsa.--
``(i) In general.--The Secretary shall
develop and use a simplified paper application
form, to be known as the `EZ FAFSA', to be used
for applicants meeting the requirements of
section 479(c).
``(ii) Reduced data requirements.--The form
under this subparagraph 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 section 479(c).
``(iii) State data.--The Secretary shall
include on the form under this subparagraph
such data items as may be necessary to award
State financial assistance, as provided under
paragraph (6), except that the Secretary shall
not include a State's data if that State does
not permit its applicants for State assistance
to use the form under this subparagraph.
``(iv) Free availability and processing.--The
provisions of paragraph (7) shall apply to the
form under this subparagraph, and the data
collected by means of the form under this
subparagraph shall be available to institutions
of higher education, guaranty agencies, and
States in accordance with paragraph (9).
``(v) Testing.--The Secretary shall conduct
appropriate field testing on the form under
this subparagraph.
``(C) Promoting the use of electronic fafsa.--
``(i) In general.--The Secretary shall make
an effort to encourage applicants to utilize
the electronic forms described in paragraph
(4).
``(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. The
printable electronic file will be made easily
accessible and downloadable to students on the
same website used to provide students with the
electronic application forms described in
paragraph (4) of this subsection. The Secretary
shall enable students to submit a form created
under this subparagraph that is downloaded and
printed from an electronic file format in order
to meet the filing requirements of this section
and in order to receive aid from programs under
this title.
``(iii) Reporting requirement.--The Secretary
shall report annually to Congress on the impact
of the digital divide on students completing
applications for title IV aid described under
this paragraph and paragraph (4). The Secretary
will also report on the steps taken to
eliminate the digital divide and phase out the
paper form described in subparagraph (A) of
this paragraph. The Secretary's report will
specifically address the impact of the digital
divide on the following student populations:
dependent students, independent students
without dependents, and independent students
with dependents other than a spouse.
``(4) Electronic format.--
``(A) In general.--The Secretary shall produce,
distribute, and process common forms in electronic
format to meet the requirements of paragraph (1). The
Secretary shall develop common electronic forms for
applicants who do not meet the requirements of
subparagraph (C) of this paragraph.
``(B) State data.--The Secretary shall include on the
common electronic forms space for information that
needs to be submitted from the applicant to be eligible
for State financial assistance, as provided under
paragraph (6), except the Secretary shall not require
applicants to complete data required by any State other
than the applicant's State of residence.
``(C) Simplified applications: fafsa on the web.--
``(i) In general.--The Secretary shall
develop and use a simplified electronic
application form to be used by applicants
meeting the requirements under subsection (c)
of section 479 and an additional, separate
simplified electronic application form to be
used by applicants meeting the requirements
under subsection (b) of section 479.
``(ii) Reduced data requirements.--The
simplified electronic application 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) State data.--The Secretary shall
include on the simplified electronic
application forms such data items as may be
necessary to award state financial assistance,
as provided under paragraph (6), except that
the Secretary shall not require applicants to
complete data required by any State other than
the applicant's State of residence.
``(iv) Availability and processing.--The data
collected by means of the simplified electronic
application forms shall be available to
institutions of higher education, guaranty
agencies, and States in accordance with
paragraph (9).
``(v) Testing.--The Secretary shall conduct
appropriate field testing on the forms
developed under this subparagraph.
``(D) 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.
``(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 permit an electronic
form under this paragraph to be submitted without a
signature, if a signature is subsequently submitted by
the applicant.
``(5) Streamlining.--
``(A) Streamlined reapplication process.--
``(i) In general.--The Secretary shall
develop streamlined reapplication forms and
processes, including both paper and electronic
reapplication processes, consistent with the
requirements of this subsection, for an
applicant who applies for financial assistance
under this title--
``(I) in the academic year succeeding
the year in which such applicant first
applied for financial assistance under
this title; or
``(II) in any succeeding academic
years.
``(ii) Mechanisms for reapplication.--The
Secretary shall develop appropriate mechanisms
to support reapplication.
``(iii) Identification of updated data.--The
Secretary shall determine, in cooperation with
States, institutions of higher education,
agencies, and organizations involved in student
financial assistance, the data elements that
can be updated from the previous academic
year's application.
``(iv) 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.
``(v) 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 that which is
necessary to determine eligibility under such
section.
``(B) Reduction of data elements.--
``(i) Reduction encouraged.--Of the number of
data elements on the FAFSA on the date of
enactment of the College Access and Opportunity
Act of 2005 (including questions on the FAFSA
for the purposes described in paragraph (6)),
the Secretary, in cooperation with
representatives of agencies and organizations
involved in student financial assistance, shall
continue to reduce the number of such data
elements following the date of enactment.
Reductions of data elements under paragraph
(3)(B), (4)(C), or (5)(A)(iv) shall not be
counted towards the reduction referred to in
this paragraph unless those data elements are
reduced for all applicants.
``(ii) Report.--The Secretary shall annually
report to the House of Representatives and the
Senate on the progress made of reducing data
elements.
``(6) State requirements.--
``(A) In general.--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 State need-
based financial aid under section 415C, except as
provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of
this subsection. 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, except as
provided in paragraphs (3)(B)(iii) and (4)(C)(iii) of
this subsection. The number of such data items shall
not be less than the number included on the form on
October 7, 1998, unless a State notifies the Secretary
that the State no longer requires those data items for
the distribution of State need-based financial aid.
``(B) Annual review.--The Secretary shall conduct an
annual review process to determine which forms and data
items the States require to award State need-based
financial aid and other application requirements that
the States may impose.
``(C) State use of simplified forms.--The Secretary
shall encourage States to take such steps as necessary
to encourage the use of simplified application forms,
including those described in paragraphs (3)(B) and
(4)(C), to meet the requirements under subsection (b)
or (c) of section 479.
``(D) Federal register notice.--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
application forms described in paragraphs
(3)(B) and (4)(C); and
``(ii) of the State-specific data that the
State agency requires for delivery of State
need-based financial aid.
``(E) State notification to the secretary.--
``(i) In general.--Each State agency shall
notify the Secretary--
``(I) whether the State permits an
applicant to file a form described in
paragraph (3)(B) or paragraph (4)(C) of
this subsection for purposes of
determining eligibility for State need-
based financial aid; and
``(II) the State-specific data that
the State agency requires for delivery
of State need-based financial aid.
``(ii) Acceptance of forms.--In the event
that a State does not permit an applicant to
file a form described in paragraph (3)(B) or
paragraph (4)(C) of this subsection for
purposes of determining eligibility for State
need-based financial aid--
``(I) the State shall notify the
Secretary if the State is not permitted
to do so because of either State law or
because of agency policy; and
``(II) the notification under
subclause (I) shall include an estimate
of the program cost to permit
applicants to complete simplified
application forms under paragraphs
(3)(B) and paragraph (4)(C) of this
subsection.
``(iii) Lack of notification by the state.--
If a State does not notify the Secretary
pursuant to clause (i), the Secretary shall--
``(I) permit residents of that State
to complete simplified application
forms under paragraphs (3)(B) and
paragraph (4)(C) of this subsection;
and
``(II) not require any resident of
that State to complete any data
previously required by that State under
this section.
``(7) Charges to students and parents for use of forms
prohibited.--
``(A) Fees prohibited.--The FAFSA, in whatever form
(including the EZ-FAFSA, paper, electronic, simplified,
or reapplication), shall be produced, distributed, and
processed by the Secretary and no parent or student
shall be charged a fee for the collection, processing,
or delivery of financial aid through the use of the
FAFSA. The need and eligibility of a student for
financial assistance under parts A through E of this
title (other than under subpart 4 of part A) may only
be determined by using the FAFSA developed by the
Secretary pursuant to this subsection. No student may
receive assistance under parts A through E of this
title (other than under subpart 4 of part A), except by
use of the FAFSA developed by the Secretary pursuant to
this subsection. No data collected on a form for which
a fee is charged shall be used to complete the FAFSA.
``(B) Notice.--Any entity that provides to students
or parents, or charges students or parents for, any
value-added services with respect to or in connection
with the FAFSA, such as completion of the FAFSA,
submission of the FAFSA, or tracking of the FAFSA for a
student, shall provide to students and parents clear
and conspicuous notice that--
``(i) the FAFSA is a free Federal student aid
application;
``(ii) the FAFSA can be completed without
professional assistance; and
``(iii) includes the current Internet address
for the FAFSA on the Department's web site.
``(8) Application processing cycle.--The Secretary shall
enable students to submit a form created under this subsection
in order to meet the filing requirements of this section and in
order to receive aid from programs under this title and shall
initiate the processing of applications under this subsection
as early as practicable prior to January 1 of the student's
planned year of enrollment.''.
(2) Master calendar.--Section 482(a)(1)(B) (20 U.S.C. 1089)
is amended to read as follows:
``(B) by March 1: proposed modifications, updates,
and notices pursuant to sections 478, 479(c)(2)(C), and
483(a)(6) published in the Federal Register;''.
(c) Increasing Access to Technology.--Section 483 (20 U.S.C. 1090) is
further amended by adding at the end the following:
``(f) Addressing the Digital Divide.--The Secretary shall utilize
savings accrued by moving more applicants to the electronic forms
described in subsection (a)(4) to improve access to the electronic
forms described in subsection (a)(4) for applicants meeting the
requirements of section 479(c).''.
(d) Expanding the Definition of an Independent Student.--Section
480(d) (20 U.S.C.1087vv(d)) is amended by striking paragraph (2) and
inserting the following:
``(2) is an orphan, in foster care, or a ward of the court,
or was in foster care or a ward of the court until the
individual reached the age of 18;''.
SEC. 472. ADDITIONAL NEED ANALYSIS AMENDMENTS.
(a) Income Protection Allowance for Dependent Students.----
(1) Amendment.--Section 475(g)(2)(D) (20 U.S.C.
1087oo(g)(2)(D)) is amended by striking ``$2,200'' and
inserting ``$3,000''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to determinations of need for periods
of enrollment beginning on or after July 1, 2006.
(b) Employment Expense Allowance.--Section 478(h) (20 U.S.C.
1087rr(h)) is amended--
(1) by striking ``476(b)(4)(B),''; and
(2) by striking ``meals away from home, apparel and upkeep,
transportation, and housekeeping services'' and inserting
``food away from home, apparel, transportation, and household
furnishings and operations''.
(c) Discretion of Student Financial Aid Administrators.--Section
479A(a) (20 U.S.C. 1087tt(a)) is amended--
(1) by striking ``(a) In General.--'' and inserting the
following:
``(a) Authority to Make Adjustments.--
``(1) Adjustments for special circumstances.--'';
(2) by inserting before ``Special circumstances may'' the
following:
``(2) Special circumstances defined.--'';
(3) by inserting ``a student's status as a ward of the court
at any time prior to attaining 18 years of age, a student's
status as an individual who was adopted at or after age 13, a
student's status as a homeless or unaccompanied youth (as
defined in section 725 of the McKinney-Vento Homeless
Assistance Act),'' after ``487,'';
(4) by inserting before ``Adequate documentation'' the
following:
``(3) Documentation and use of supplementary information.--
''; and
(5) by inserting before ``No student'' the following:
``(4) Fees for supplementary information prohibited.--''.
(d) Treating Active Duty Members of the Armed Forces as Independent
Students.--Section 480(d)(3) (20 U.S.C. 1087vv(d)(3)) is amended by
inserting before the semicolon at the end the following: ``or is
currently serving on active duty in the Armed Forces for other than
training purposes''.
(e) Excludable Income.--Section 480(e) (20 U.S.C. 1087vv(e)) is
amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(5) any part of any distribution from a qualified tuition
program established under section 529 of the Internal Revenue
Code of 1986 that is not includable in gross income under such
section 529.''.
(f) Treatment of Savings Plans.--
(1) Amendment.--Section 480(f) (20 U.S.C. 1087vv(f)) is
amended--
(A) in paragraph (1), by inserting ``qualified
tuition programs established under section 529 of the
Internal Revenue Code of 1986 (26 U.S.C. 529), except
as provided in paragraph (2),'' after ``tax
shelters,'';
(B) by redesignating paragraph (2) as paragraph (3);
and
(C) by inserting after paragraph (1) the following
new paragraph:
``(2) A qualified tuition program shall not be considered an asset of
a dependent student under section 475 of this part. The value of a
qualified tuition program for purposes of determining the assets of
parents or independent students shall be--
``(A) the refund value of any tuition credits or certificates
purchased under section 529 of the Internal Revenue Code of
1986 (26 U.S.C. 529) on behalf of a beneficiary; or
``(B) the current balance of any account which is established
under such section for the purpose of meeting the qualified
higher education expenses of the designated beneficiary of the
account.''.
(2) Conforming amendment.--Section 480(j) (20 U.S.C.
1087vv(j)) is amended--
(A) by striking ``; Tuition Prepayment Plans'' in the
heading of such subsection;
(B) by striking paragraph (2);
(C) in paragraph (3), by inserting ``, or a
distribution that is not includable in gross income
under section 529 of such Code,'' after ``1986''; and
(D) by redesignating paragraph (3) as paragraph (2).
(g) Treatment of Family Ownership of Small Businesses.--Section
480(f)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(3)),
as redesignated by subsection (f) of this section, is amended--
(1) in subparagraph (A), by striking ``or'';
(2) in subparagraph (B), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following new subparagraph:
``(C) a small business with not more than 100 full-time or
full-time equivalent employees (or any part of such a small
business) that is owned and controlled by the family.''.
(h) Designated Assistance.--Section 480(j) (20 U.S.C. 1087vv(j)) is
amended by adding after paragraph (2) (as redesignated by subsection
(f)(2)(D) of this section) the following new paragraph:
``(3) Notwithstanding paragraph (1) and section 472, assistance not
received under this title may be excluded from both estimated financial
assistance and cost of attendance, if that assistance is designated by
the State providing that assistance to offset a specific component of
the cost of attendance. If that assistance is excluded from either
estimated financial assistance or cost of attendance, it shall be
excluded from both.''.
PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE
SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.
(a) Academic Year.--Paragraph (2) of section 481(a) (20 U.S.C.
1088(a)) is amended to read as follows:
``(2)(A) For the purpose of any program under this title, the term
`academic year' shall--
``(i) require a minimum of 30 weeks of instructional time for
a course of study that measures its program length in credit
hours; or
``(ii) require a minimum of 26 weeks of instructional time
for a course of study that measures its program length in clock
hours; and
``(iii) require an undergraduate course of study to contain
an amount of instructional time whereby a full-time student is
expected to complete at least--
``(I) 24 semester or trimester hours or 36 quarter
credit hours in a course of study that measures its
program length in credit hours; or
``(II) 900 clock hours in a course of study that
measures its program length in clock hours.
``(B) The Secretary may reduce such minimum of 30 weeks to not less
than 26 weeks for good cause, as determined by the Secretary on a case-
by-case basis, in the case of an institution of higher education that
provides a 2-year or 4-year program of instruction for which the
institution awards an associate or baccalaureate degree.''.
(b) Eligible Program.--Section 481(b) (20 U.S.C. 1088(b)) is amended
by adding at the end the following new paragraph:
``(3) For purposes of this title, an eligible program includes an
instructional program that utilizes direct assessment of student
learning, or recognizes the direct assessment of student learning, in
lieu of credit hours or clock hours as the measure of student learning.
In the case of a program being determined eligible for the first time
under this paragraph, such determination shall be made by the Secretary
before such program is considered to be eligible. The Secretary shall
provide an annual report to Congress identifying the programs made
eligible under this paragraph.''.
SEC. 482. DISTANCE EDUCATION.
(a) Distance Education: Eligible Program.--Section 481(b) (20 U.S.C.
1088(b)) is amended by adding after paragraph (3) (as added by section
481(b) of this Act) the following new paragraph:
``(4) An otherwise eligible program that is offered in whole or in
part through telecommunications is eligible for the purposes of this
title if the program is offered by an institution, other than a foreign
institution, that has been evaluated and determined (before or after
the date of enactment of this paragraph) to have the capability to
effectively deliver distance education programs by an accrediting
agency or association that--
``(A) is recognized by the Secretary under subpart 2 of Part
H; and
``(B) has evaluation of distance education programs within
the scope of its recognition, as described in section
496(n)(3).''.
(b) Correspondence Courses.--Section 484(l)(1) (20 U.S.C. 1091(l)(1))
is amended--
(1) in subparagraph (A)--
(A) by striking ``for a program of study of 1 year or
longer''; and
(B) by striking ``unless the total'' and all that
follows through ``courses at the institution''; and
(2) by amending subparagraph (B) to read as follows:
``(B) Exception.--Subparagraph (A) does not apply to
an institution or school described in section 3(3)(C)
of the Carl D. Perkins Vocational and Technical
Education Act of 1998.''.
SEC. 483. EXPANDING INFORMATION DISSEMINATION REGARDING ELIGIBILITY FOR
PELL GRANTS.
Section 483(a) (20 U.S.C. 1090(a)) (as amended by section 471(b)) is
further amended by adding at the end the following new paragraph:
``(13) Expanding information dissemination regarding
eligibility for pell grants.--The Secretary shall make special
efforts, in conjunction with State efforts, to notify students
and their parents who qualify for a free lunch under the
Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et
seq.), the Food Stamps program, or such other programs as the
Secretary shall determine, of their potential eligibility for a
maximum Pell Grant, and shall disseminate such informational
materials as the Secretary deems appropriate.''.
SEC. 484. STUDENT ELIGIBILITY.
(a) Fraud: Repayment Required.--Section 484(a) (20 U.S.C. 1091(a)) is
amended--
(1) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(2) by adding at the end the following new paragraph:
``(6) if the student has been convicted of, or has pled nolo
contendere or guilty to, a crime involving fraud in obtaining
funds under this title, have completed the repayment of such
funds to the Secretary, or to the holder in the case of a loan
under this title obtained by fraud.''.
(b) Technical Amendment.--Section 484(b)(5) (20 U.S.C. 1091(b)(5)) is
amended by inserting ``or parent (on behalf of a student)'' after
``student''.
(c) Loan Ineligibility Based on Involuntary Civil Commitment for
Sexual Offenses.--Section 484(b)(5) (20 U.S.C. 1091(b)(5)) is further
amended by inserting before the period the following: ``, and no
student who is subject to an involuntary civil commitment upon
completion of a period of incarceration for a sexual offense (as
determined under regulations of the Secretary) is eligible to receive a
loan under this title''.
(d) Freely Associated States.--Section 484(j) (20 U.S.C. 1091(j)) is
amended by inserting ``and shall be eligible only for assistance under
subpart 1 of part A thereafter,'' after ``part C,''.
(e) Verification of Income Date.--Paragraph (1) of section 484(q) (20
U.S.C. 1091(q)) is amended to read as follows:
``(1) Confirmation with irs.--The Secretary of Education, in
cooperation with the Secretary of the Treasury, is authorized
to confirm with the Internal Revenue Service the information
specified in section 6103(l)(13) of the Internal Revenue Code
of 1986 reported by applicants (including parents) under this
title on their Federal income tax returns for the purpose of
verifying the information reported by applicants on student
financial aid applications.''.
(f) Suspension of Eligibility for Drug Offenses.--Section 484(r)(1)
(20 U.S.C. 1091(r)(1)) is amended by striking everything preceding the
table and inserting the following:
``(1) In general.--A student who is convicted of any offense
under any Federal or State law involving the possession or sale
of a controlled substance for conduct that occurred during a
period of enrollment for which the student was receiving any
grant, loan, or work assistance under this title shall not be
eligible to receive any grant, loan, or work assistance under
this title from the date of that conviction for the period of
time specified in the following table:''.
SEC. 485. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended--
(1) in subsection (a)(1), by inserting ``subpart 4 of part A
or'' after ``received under'';
(2) in subsection (a)(2), by striking ``takes a leave'' and
by inserting ``takes one or more leaves'';
(3) in subsection (a)(3)(B)(ii), by inserting ``(as
determined in accordance with subsection (d))'' after ``student
has completed'';
(4) in subsection (a)(4), by amending subparagraph (A) to
read as follows:
``(A) In general.--After determining the eligibility
of the student for a late disbursement or post-
withdrawal disbursement (as required in regulations
prescribed by the Secretary), the institution of higher
education shall contact the borrower and obtain
confirmation that the loan funds are still required by
the borrower. In making such contact, the institution
shall explain to the borrower the borrower's obligation
to repay the funds following any such disbursement. The
institution shall document in the borrower's file the
result of such contact and the final determination made
concerning such disbursement.'';
(5) in subsection (b)(1), by inserting ``no later than 45
days from the determination of withdrawal'' after ``return'';
(6) in subsection (b)(2), by amending subparagraph (C) to
read as follows:
``(C) Grant overpayment requirements.--
``(i) In general.--Notwithstanding
subparagraphs (A) and (B), a student shall only
be required to return grant assistance in the
amount (if any) by which--
``(I) the amount to be returned by
the student (as determined under
subparagraphs (A) and (B)), exceeds
``(II) 50 percent of the total grant
assistance received by the student
under this title for the payment period
or period of enrollment.
``(ii) Minimum.--A student shall not be
required to return amounts of $50 or less.'';
(7) in subsection (b)(2), by adding at the end the following
new subparagraph:
``(D) Waivers of pell grant repayment by students
affected by disasters.--The Secretary may waive the
amounts that students are required to return under this
section with respect to Pell grants if the withdrawals
on which the returns are based are withdrawals by
students--
``(i) who were residing in, employed in, or
attending an institution of higher education
that is located in an area in which the
President has declared that a major disaster
exists, in accordance with section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5170);
``(ii) whose attendance was interrupted
because of the impact of the disaster on the
student or the institution; and
``(iii) whose withdrawal ended within the
academic year during which the designation
occurred or during the next succeeding academic
year.''; and
(8) in subsection (d), by striking ``(a)(3)(B)(i)'' and
inserting ``(a)(3)(B)''.
SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--Section 485(a)(1) (20
U.S.C. 1092(a)(1)) is amended--
(1) by amending the second sentence to read as follows: ``The
information required by this section shall be produced and be
made publicly available to an enrolled student and to any
prospective student, through appropriate publications,
mailings, electronic media, and the reports required by the
institution's accrediting agency under section 496(c)(9).'';
(2) by amending subparagraph (G) to read as follows:
``(G) the academic programs of the institution, including--
``(i) the current degree programs and other
educational and training programs;
``(ii) the institution's educational mission and
goals;
``(iii) the instructional, laboratory, and other
physical plant facilities which relate to the academic
programs; and
``(iv) the faculty and other instructional
personnel;'';
(3) by striking subparagraph (L) and inserting the following:
``(L) a summary of student outcomes for full-time
undergraduate students, including--
``(i) the completion or graduation rates of
certificate- or degree-seeking undergraduate students
entering such institutions; and
``(ii) any other student outcome data, qualitative or
quantitative, including data regarding distance
education, deemed by the institution to be appropriate
to its stated educational mission and goals, and, when
applicable, licensing and placement rates for
professional and vocational programs;'';
(4) by inserting before the semicolon at the end of
subparagraph (J) the following: ``, and the process for
students to register complaints with the accrediting agencies
or associations'';
(5) in subparagraph (M), by striking ``guaranteed student
loans under part B of this title or direct student loans under
part E of this title, or both,'' and inserting ``student loans
under part B, D, or E of this title'';
(6) by striking ``and'' at the end of subparagraph (N);
(7) by striking the period at the end of subparagraph (O) and
inserting a semicolon; and
(8) by adding at the end the following new subparagraphs:
``(P) the penalties contained in subsection 484(r) regarding
suspension of eligibility for drug related offenses;
``(Q) the policies of the institution regarding the
acceptance or denial of academic credit earned at another
institution of higher education, which shall include a
statement that such decisions will not be based solely on the
source of accreditation of a sending institution, provided that
the sending institution is accredited by an agency or
association that is recognized by the Secretary pursuant to
section 496 to be a reliable authority as to the quality of the
education or training offered, and except that nothing in this
subparagraph shall be construed to--
``(i) 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;
``(ii) limit the application of the General Education
Provisions Act; or
``(iii) create any legally enforceable right; and''.
(b) Additional Amendments.--Section 485(a) is further amended by
striking paragraph (6) and inserting the following:
``(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or graduation
rate for students described in paragraph (4). For the purpose of this
paragraph, the definitions provided in the Integrated Postsecondary
Education Data System shall apply.
``(7) Each eligible institution participating in any program under
this title may publicly report to currently enrolled and prospective
students the voluntary information collected by the National Survey of
Student Engagement (NSSE), the Community College Survey of Student
Engagement (CCSSE), or other instruments that provide evidence of
student participation in educationally purposeful activities. The
information shall be produced and made available in a uniform and
comprehensible manner, through appropriate publications, mailings, and
electronic media, and may be included in reports required by the
institution's accrediting agency.''.
(c) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended
by adding at the end the following new paragraph:
``(3) Each eligible institution shall, during the exit interview
required by this subsection, provide to a borrower of a loan made under
part B, D, or E a clear and conspicuous notice describing the effect of
using a consolidation loan to discharge the borrower's student loans,
including--
``(A) the effects of consolidation on total interest to be
paid, fees to be paid, and length of repayment;
``(B) the effects of consolidation on a borrower's underlying
loan benefits, including loan forgiveness, cancellation, and
deferment;
``(C) the ability for the borrower to prepay the loan, pay on
a shorter schedule, and to change repayment plans, and that
borrower benefit programs may vary among different loan
holders;
``(D) the tax benefits for which the borrower may be
eligible; and
``(E) the consequences of default.''.
(d) Campus Crime Information.--Section 485(f)(1) (20 U.S.C.
1092(f)(1)) is amended by inserting ``, other than a foreign
institution of higher education,'' after ``under this title''.
(e) Disclosure of Fire Safety of Campus Buildings.--Section 485 of
the Higher Education Act of 1965 (20 U.S.C. 1092) is further amended--
(1) in subsection (a)(1), by adding after subparagraph (Q)
(as added by subsection (a)(8) of this section) the following
new subparagraph:
``(R) the fire safety report prepared by the institution
pursuant to subsection (h).''; and
(2) by adding at the end the following new subsection:
``(h) Disclosure of Fire Safety Standards and Measures.--
``(1) Annual fire safety reports required.--Each institution
participating in any program under this title shall, beginning
in the first academic year that begins after the date of
enactment of the College Access and Opportunity Act of 2005,
and each year thereafter, prepare, publish, and distribute,
through appropriate publications (including the Internet) or
mailings, to all current students and employees, and to any
applicant for enrollment or employment upon request, an annual
fire safety report. Such reports shall contain at least the
following information with respect to the campus fire safety
practices and standards of that institution:
``(A) A statement that identifies each institution-
owned or controlled student housing facility, and
whether or not such facility is equipped with a fire
sprinkler system or other fire safety system, or has
fire escape planning or protocols.
``(B) Statistics for each such facility concerning
the occurrence of fires and false alarms in such
facility during the 2 preceding calendar years for
which data are available.
``(C) For each such occurrence in each such facility,
a summary of the human injuries or deaths, structural
or property damage, or combination thereof.
``(D) Information regarding rules on portable
electrical appliances, smoking and open flames (such as
candles), regular mandatory supervised fire drills, and
planned and future improvements in fire safety.
``(E) Information about fire safety education and
training provided to students, faculty, and staff.
``(F) Information concerning fire safety at any
housing facility owned or controlled by a fraternity,
sorority, or student group that is recognized by the
institution, including--
``(i) information reported to the institution
under paragraph (4); and
``(ii) a statement concerning whether and how
the institution works with recognized student
fraternities and sororities, and other
recognized student groups owning or controlling
housing facilities, to make each building and
property owned or controlled by such
fraternities, sororities, and groups more fire
safe.
``(2) Fraternities, sororities, and other groups.--Each
institution participating in a program under this title shall
request each fraternity and sorority that is recognized by the
institution, and any other student group that is recognized by
the institution and that owns or controls housing facilities,
to collect and report to the institution the information
described in subparagraphs (A) through (E) of paragraph (1), as
applied to the fraternity, sorority, or recognized student
group, respectively, for each building and property owned or
controlled by the fraternity, sorority, or group, respectively.
``(3) Current information to campus community.--Each
institution participating in any program under this title shall
make, keep, and maintain a log, written in a form that can be
easily understood, recording all on-campus fires, including the
nature, date, time, and general location of each fire and all
false fire alarms. All entries that are required pursuant to
this paragraph shall, except where disclosure of such
information is prohibited by law, be open to public inspection,
and each such institution shall make annual reports to the
campus community on such fires and false fire alarms in a
manner that will aid the prevention of similar occurrences.
``(4) Reports to the secretary.--On an annual basis, each
institution participating in any program under this title shall
submit to the Secretary a copy of the statistics required to be
made available under paragraph (1)(B). The Secretary shall--
``(A) review such statistics;
``(B) make copies of the statistics submitted to the
Secretary available to the public; and
``(C) in coordination with nationally recognized fire
organizations and representatives of institutions of
higher education, identify exemplary fire safety
policies, procedures, and practices and disseminate
information concerning those policies, procedures, and
practices that have proven effective in the reduction
of campus fires.
``(5) 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 fire safety.
``(6) Definitions.--In this subsection, the term `campus' has
the meaning provided in subsection (f)(6).''.
SEC. 487. COLLEGE ACCESS INITIATIVE.
Part G is further amended by inserting after section 485C (20 U.S.C.
1092c) the following new section:
``SEC. 485D. COLLEGE ACCESS INITIATIVE.
``(a) State-by-State Information.--The Secretary shall direct each
guaranty agency with which the Secretary has an agreement under section
428(c) to provide to the Secretary the information necessary for the
development of web links and access for students and families to a
comprehensive listing of the postsecondary education opportunities,
programs, publications, Internet Web sites, and other services
available in the States for which such agency serves as the designated
guarantor.
``(b) Guaranty Agency Activities.--
``(1) Plan and activity required.--Each guaranty agency with
which the Secretary has an agreement under section 428(c) shall
develop a plan and undertake the activity necessary to gather
the information required under subsection (a) and to make such
information available to the public and to the Secretary in a
form and manner as prescribed by the Secretary.
``(2) Activities.--Each guaranty agency shall undertake such
activities as are necessary to promote access to postsecondary
education for students through providing information on college
planning, career preparation, and paying for college. The
guaranty agency shall publicize such information and coordinate
such activities with other entities that either provide or
distribute such information in the States for which such
guaranty agency serves as the designated guarantor.
``(3) Funding.--The activities required by this section may
be funded from the guaranty agency's operating account
established pursuant to section 422B and, to the extent funds
remain, from earnings on the restricted account established
pursuant to section 422(h)(4).
``(c) Access to Information.--
``(1) Secretary's responsibility.--The Secretary shall ensure
the availability of the information provided by the guaranty
agencies in accordance with this section to students, parents,
and other interested individuals, through web links or other
methods prescribed by the Secretary.
``(2) Guaranty agency responsibility.--The guaranty agencies
shall ensure that the information required by this section is
available without charge in printed format for students and
parents requesting such information.
``(3) Publicity.--Within 270 days after the date of enactment
of the College Access and Opportunity Act of 2005, the
Secretary and guaranty agencies shall publicize the
availability of the information required by this section, with
special emphasis on ensuring that populations that are
traditionally underrepresented in postsecondary education are
made aware of the availability of such information.''.
SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAM.
(a) Eligible Applicants.--Section 486(b)(3) (20 U.S.C. 1093(b)(3)) is
amended--
(1) in subparagraph (B), by striking ``section 102(a)(1)(C)''
and inserting ``section 102''; and
(2) in subparagraph (C), by striking ``subsection (a) of
section 102, other than the requirement of paragraph (3)(A) or
(3)(B) of such subsection,'' and inserting ``section 101, other
than the requirements of subparagraph (A) or (B) of subsection
(b)(4) of such section''.
(b) Selection.--Section 486(d)(1) (20 U.S.C. 1093(d)(1)) is amended--
(1) by striking ``the third year'' and inserting ``subsequent
years'';
(2) by striking ``35 institutions'' and inserting ``100
institutions''; and
(3) by adding at the end the following new sentence: ``Not
more than 5 of such institutions, systems, or consortia may be
accredited, degree-granting correspondence schools.''.
SEC. 489. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.
Part G of title IV is amended by inserting after section 486 (20
U.S.C. 1093) the following new section:
``SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.
``(a) Purpose.--It is the purpose of this section--
``(1) to provide, through a college affordability
demonstration program, for increased innovation in the delivery
of higher education and student financial aid in a manner
resulting in reduced costs for students as well as the
institution by employing one or more strategies including
accelerating degree or program completion, increasing
availability of, and access to, distance components of
education delivery, engaging in collaborative arrangements with
other institutions and organizations, and other alternative
methodologies; and
``(2) to help determine--
``(A) the most effective means of delivering student
financial aid as well as quality education;
``(B) the specific statutory and regulatory
requirements that should be altered to provide for more
efficient and effective delivery of student financial
aid, as well as access to high quality distance
education programs, resulting in a student more
efficiently completing postsecondary education; and
``(C) the most effective methods of obtaining and
managing institutional resources.
``(b) Demonstration Program Authorized.--
``(1) In general.--In accordance with the purposes described
in subsection (a) and the provisions of subsection (d), the
Secretary is authorized to select not more than 100
institutions of higher education, including those applying as
part of systems or consortia of such institutions, for
voluntary participation in the College Affordability
Demonstration Program in order to enable participating
institutions to carry out such purposes by providing programs
of postsecondary education, and making available student
financial assistance under this title to students enrolled in
those programs, in a manner that would not otherwise meet the
requirements of this title.
``(2) Waivers.--The Secretary is authorized to waive for any
institutions of higher education, or any system or consortia of
institutions of higher education, selected for participation in
the College Affordability Demonstration Program, any
requirements of this Act or the regulations thereunder as
deemed necessary by the Secretary to meet the purpose described
in subsection (a)(1), and shall make a determination that the
waiver can reasonably be expected to result in reduced costs to
students or institutions without an increase in Federal program
costs. The Secretary may not waive under this paragraph the
maximum award amounts for an academic year or loan period.
``(3) Eligible applicants.--
``(A) Eligible institutions.--Except as provided in
subparagraph (B), only an institution of higher
education that is eligible to participate in programs
under this title shall be eligible to participate in
the demonstration program authorized under this
section.
``(B) Prohibition.--An institution of higher
education described in section 102 shall not be
eligible to participate in the demonstration program
authorized under this section.
``(c) Application.--
``(1) In general.--Each institution or system of institutions
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 of applications.--Each application for the
college affordability demonstration program shall include at
least the following:
``(A) a description of the institution or system or
consortium of institutions and what quality assurance
mechanisms are in place to insure the integrity of the
Federal financial aid programs;
``(B) a description of the innovation or innovations
being proposed and the affected programs and students,
including--
``(i) a description of any collaborative
arrangements with other institutions or
organizations to reduce costs;
``(ii) a description of any expected economic
impact of participation in the program within
the community in which the institution is
located; and
``(iii) a description of any means the
institution will employ to reduce the costs of
instructional materials, such as textbooks;
``(C) a description of each regulatory or statutory
requirement for which waivers are sought, with a reason
for each waiver;
``(D) a description of the expected outcomes of the
program changes proposed, including the estimated
reductions in costs both for the institution and for
students;
``(E) a description of the quality assurance
mechanisms in place to ensure the integrity of the
Federal financial aid programs;
``(F) an assurance from each institution in a system
or consortium of a commitment to fulfill its role as
described in the application;
``(G) an assurance that the participating institution
or system of institutions will offer full cooperation
with the ongoing evaluations of the demonstration
program provided for in this section; and
``(H) any other information or assurances the
Secretary may require.
``(d) Selection.--In selecting institutions to participate in the
demonstration program under this section, the Secretary shall take into
account--
``(1) the number and quality of applications received,
determined on the basis of the contents required by subsection
(c)(2);
``(2) the Department's capacity to oversee and monitor each
institution's participation;
``(3) an institution's--
``(A) financial responsibility;
``(B) administrative capability;
``(C) program or programs being offered via distance
education, if applicable;
``(D) student completion rates; and
``(E) student loan default rates; and
``(4) the participation of a diverse group of institutions
with respect to size, mission, and geographic distribution.
``(e) Notification.--The Secretary shall make available to the public
and to the authorizing committees a list of institutions selected to
participate in the demonstration program authorized by this section.
Such notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution and a
description of the innovations being demonstrated.
``(f) Evaluations and Reports.--
``(1) Evaluation.--The Secretary shall evaluate the
demonstration program authorized under this section on a
biennial basis. Such evaluations specifically shall review--
``(A) the extent to which expected outcomes,
including the estimated reductions in cost, were
achieved;
``(B) the number and types of students participating
in the programs offered, including the progress of
participating students toward recognized certificates
or degrees and the extent to which participation in
such programs increased;
``(C) issues related to student financial assistance
associated with the innovations undertaken;
``(D) effective technologies and alternative
methodologies for delivering student financial
assistance;
``(E) the extent of the cost savings to the
institution, the student, and the Federal Government by
virtue of the waivers provided, and an estimate as to
future cost savings for the duration of the
demonstration program;
``(F) the extent to which students saved money by
virtue of completing their postsecondary education
sooner;
``(G) the extent to which the institution reduced its
tuition and fees and its costs by virtue of
participation in the demonstration program;
``(H) the extent to which any collaborative
arrangements with other institutions or organizations
have reduced the participating institution's costs; and
``(I) the extent to which statutory or regulatory
requirements not waived under the demonstration program
present difficulties for students or institutions.
``(2) Policy analysis.--The Secretary shall review current
policies and identify those policies that present impediments
to the implementation of innovations that result in cost
savings and in expanding access to education.
``(3) Reports.--The Secretary shall provide a report to the
authorizing committees on a biennial basis regarding--
``(A) the demonstration program authorized under this
section;
``(B) the results of the evaluations conducted under
paragraph (1);
``(C) the cost savings to the Federal Government by
the demonstration program authorized by this section;
and
``(D) recommendations for changes to increase the
efficiency and effective delivery of financial aid.
``(g) Oversight.--In conducting the demonstration program authorized
under this section, the Secretary shall, on a continuing basis--
``(1) ensure compliance of institutions or systems of
institutions with the requirements of this title (other than
the sections and regulations that are waived under subsection
(b)(2));
``(2) provide technical assistance to institutions in their
application to and participation in the demonstration program;
``(3) monitor fluctuations in the student population enrolled
in the participating institutions or systems of institutions;
``(4) monitor changes in financial assistance provided at the
institution; and
``(5) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities.
``(h) Termination of Authority.--The authority of the Secretary under
this section shall cease to be effective on October 1, 2011.''.
SEC. 490. PROGRAM PARTICIPATION AGREEMENTS.
(a) Refund Policies.--Section 487(a) (20 U.S.C. 1094(a)) is amended--
(1) in paragraph (16), by inserting ``or other Federal,
State, or local government funds'' after ``funds under this
title'' each place it appears;
(2) in paragraph (22), by striking ``refund policy'' and
inserting ``policy on the return of title IV funds''; and
(3) in paragraph (23)--
(A) by moving subparagraph (C) 2 em spaces to the
left; and
(B) by adding after such subparagraph the following
new subparagraph:
``(D) An institution shall be considered in compliance with
the requirements of subparagraph (A) for any 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, provided such information is in
an electronic message devoted to voter registration.''.
(b) Enforcing the 90/10 Rule.--
(1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is further
amended by adding at the end the following new paragraph:
``(24) The institution will, as calculated in accordance with
subsection (f)(1), have at least 10 percent of its revenues
from sources other than funds provided under this title, or
will be subject to the sanctions described in subsection
(f)(2).''.
(2) Implementation.--Section 487 is further amended by adding
at the end the following new subsection:
``(f) Implementation of Non-Title IV Revenue Requirement.--
``(1) Calculation.--In carrying out subsection (a)(24), an
institution shall use the cash basis of accounting and count
the following funds toward the 10 percent of revenues from
sources of funds other than funds provided under this title:
``(A) funds used by students to pay tuition, fees,
and other institutional charges from sources other than
funds provided under this title as long as the
institution can reasonably demonstrate that such funds
were used for such purposes;
``(B) institutional funds used to satisfy matching-
fund requirements for programs under this title;
``(C) funds from savings plans for educational
expenses established pursuant to the Internal Revenue
Code of 1986;
``(D) 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, so long as the program is
approved or licensed by the appropriate State agency or
an accrediting agency recognized by the Secretary; and
``(E) institutional aid, as follows:
``(i) in the case of institutional loans,
only the amount of loan repayments received
during the fiscal year; and
``(ii) in the case of institutional
scholarships, only those 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 the fiscal year from an
established restricted account, and only to the
extent that the funds in that account represent
designated funds from an outside source or from
income earned on those funds.
``(2) Sanctions.--An institution that fails to meet the
requirements of subsection (a)(24) for 3 consecutive years
shall become ineligible to participate in the programs
authorized by this title. In addition to such other means of
enforcing the requirements of this title as may be available to
the Secretary, if an institution fails to meet the requirements
of subsection (a)(24) in any year, the Secretary may impose one
or more of the following sanctions on the institution:
``(A) Place the institution on provisional
certification in accordance with section 498(h) until
the institution demonstrates, to the satisfaction of
the Secretary, that it is in compliance with subsection
(a)(24).
``(B) Require such other increased monitoring and
reporting requirements as the Secretary determines
necessary until the institution demonstrates, to the
satisfaction of the Secretary, that it is in compliance
with subsection (a)(24).
``(3) Publication on cool website.--The Secretary shall
identify, on the College Opportunities On-Line website under
section 131(b), any institution that fails to meet the
requirements of subsection (a)(24) in any year as an
institution that is failing to meet the minimum non-Federal
source of revenue requirements of that subsection.''.
(c) Reports on Disciplinary Proceedings.--
(1) Amendment.--Section 487(a) (20 U.S.C. 1094(a)) is further
amended by adding after paragraph (24), as added by subsection
(b) of this section, the following new paragraph:
``(25) The institution will disclose to the alleged victim of
any crime of violence (as that term is defined in section 16 of
title 18), or a nonforcible sex offense, the final 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, the next
of kin of such victim shall be treated as the alleged victim
for purposes of this paragraph.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to any disciplinary proceeding
conducted by such institution on or after one year after the
date of enactment of this Act.
(d) Audit Requirements.--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
receive less than $500,000 in loans under this title during the award
year preceding the audit period''.
SEC. 491. ADDITIONAL TECHNICAL AND CONFORMING AMENDMENTS.
Part G is further amended as follows:
(1) Section 483(d) (20 U.S.C. 1090(d)) is amended by striking
``that is authorized under section 685(d)(2)(C)'' and inserting
``, or another appropriate provider of technical assistance and
information on postsecondary educational services, that is
supported under section 663''.
(2) Section 484 (20 U.S.C. 1091) is amended--
(A) in subsection (a)(4), by striking
``certification,,'' and inserting ``certification,'';
and
(B) in subsection (b)(2)--
(i) in the matter preceding subparagraph (A),
by striking ``section 428A'' and inserting
``section 428H'';
(ii) in subparagraph (A), by inserting
``and'' after the semicolon at the end thereof;
(iii) in subparagraph (B), by striking ``;
and'' and inserting a period; and
(iv) by striking subparagraph (C).
(3) Section 484A(b)(2) (20 U.S.C. 1091a(b)(2)) is amended by
striking ``part B of this title'' and inserting ``part B, D, or
E of this title''.
(4) Section 485B(a) (20 U.S.C. 1092b(a)) is amended--
(A) by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively;
(B) by redesignating the paragraph (5) (as added by
section 2008 of Public Law 101-239) as paragraph (6);
and
(C) in paragraph (5) (as added by section 204(3) of
the National Community Service Act of 1990 (Public Law
101-610))--
(i) by striking ``(22 U.S.C. 2501 et
seq.)),'' and inserting ``(22 U.S.C. 2501 et
seq.),''; and
(ii) by striking the period at the end
thereof and inserting a semicolon.
(5) Section 487A(b) (20 U.S.C. 1094a(b)) is amended--
(A) in paragraph (1)--
(i) by striking ``Higher Education Amendments
of 1998'' and inserting ``College Access and
Opportunity Act of 2005''; and
(ii) by striking the second sentence;
(B) in paragraph (2)--
(i) by striking ``1993 through 1998'' and
inserting ``1998 through 2004'';
(ii) by striking ``(as such section'' and all
that follows through ``Amendments of 1998)'';
and
(iii) by striking ``Higher Education
Amendments of 1998.'' and inserting ``College
Access and Opportunity Act of 2005.''; and
(C) in paragraph (3)(A)--
(i) by striking ``Upon the submission'' and
all that follows through ``limited number of
additional institutions for voluntary
participation'' and inserting ``The Secretary
is authorized to continue the voluntary
participation of institutions participating as
of July 1, 2005,''; and
(ii) by inserting before the period at the
end the following: ``, and shall continue the
participation of any such institution unless
the Secretary determines that such
institution's participation has not been
successful in carrying out the purposes of this
section''.
(6) Section 491(c) (20 U.S.C. 1098(c)) is amended by adding
at the end the following new paragraph:
``(3) The appointment of members under subparagraphs (A) and (B) of
paragraph (1) shall be effective upon publication of the appointment in
the Congressional Record.''.
(7) Section 491(h)(1) (20 U.S.C. 1098(h)(1)) is amended by
striking ``the rate authorized for GS-18 of the General
Schedule'' and inserting ``the maximum rate payable under
section 5376 of such title''.
(8) Section 491(k) (20 U.S.C. 1098(k)) is amended by striking
``2004'' and inserting ``2011''.
(9) Section 493A (20 U.S.C. 1098c) is repealed.
(10) Section 498 (20 U.S.C. 1099c) is amended--
(A) in subsection (c)(2), by striking ``for profit,''
and inserting ``for-profit,''; and
(B) in subsection (d)(1)(B), by inserting ``and''
after the semicolon at the end thereof.
PART H--PROGRAM INTEGRITY
SEC. 495. ACCREDITATION.
(a) Standards for Accreditation.--Section 496(a) (20 U.S.C. 1099b(a))
is amended--
(1) in paragraph (3)--
(A) by inserting ``or'' after the semicolon at the
end of subparagraph (A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as subparagraph
(B);
(2) in paragraph (4)--
(A) by inserting ``(A)'' after ``(4)'';
(B) by inserting after ``consistently applies and
enforces standards'' the following: ``that consider the
stated missions of institutions of higher education,
including such missions as inculcation of religious
values, and'';
(C) by inserting ``and'' after the semicolon at the
end thereof; and
(D) by adding at the end the following new
subparagraph:
``(B) if such agency or association already has or seeks to
include within its scope of recognition the evaluation of the
quality of institutions or programs offering distance
education, such agency or association shall, in addition to
meeting the other requirements of this subpart, demonstrate to
the Secretary that--
``(i) the accreditation agency's or association's
standards effectively address the quality of an
institution's distance education programs in the areas
identified in paragraph (5) of this subsection, except
that the agency or association shall not be required to
have separate standards, procedures, or policies for
the evaluation of distance education institutions or
programs in order to meet the requirements of this
subparagraph; and
``(ii) the agency or association requires that an
institution that offers distance education programs to
have processes by which it establishes that the student
who registers in a distance education course or program
is the same student who participates, completes
academic work, and receives academic credit;'';
(3) in paragraph (5)--
(A) by amending subparagraph (A) to read as follows:
``(A) success with respect to student achievement in
relation to the institution's mission, including, as
appropriate, consideration of student academic
achievement as determined by the institution (in
accordance with standards of the accrediting agency or
association), retention, course and program completion,
State licensing examinations, and job placement rates,
and other student performance information selected by
the institution, particularly that information used by
the institution to evaluate or strengthen its
programs;''; and
(B) by amending subparagraph (E) to read as follows:
``(E) fiscal, administrative capacity, as appropriate
to the specified scale of operations, and, for an
agency or association where its approval for such
institution determines eligibility for student
assistance under this title, board governance, within
the context of the institution's mission;'';
(4) 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 that comply with due
process that provides for--
``(A) adequate specification of requirements and
deficiencies at the institution of higher education or
program being examined;
``(B) an opportunity for a written response by any
such institution to be included in the evaluation and
withdrawal proceedings;
``(C) upon the written request of an institution, an
opportunity for the institution to appeal any adverse
action at a hearing prior to such action becoming final
before an appeals panel that--
``(i) shall not include current members of
the agency or association's underlying
decision-making body that made the adverse
decision; and
``(ii) is subject to a conflict of interest
of policy; and
``(D) the right to representation by counsel for an
such institution;''; and
(5) by striking paragraph (8) and inserting the following:
``(8) such agency or association shall make available to the
public and submit to the Secretary and the State licensing or
authorizing agency, together with the comments of the affected
institution, a summary of agency or association actions,
involving--
``(A) final denial, withdrawal, suspension, or
termination of accreditation; and
``(B) any other final adverse action taken with
respect to an institution.''.
(b) Operating Procedures.--Section 496(c) (20 U.S.C. 1099b(c)) is
amended--
(1) by inserting ``(including those regarding distance
education)'' before the semicolon at the end of paragraph (1);
(2) by striking ``and'' at the end of paragraph (5);
(3) by striking the period at the end of paragraph (6) and
inserting a semicolon; and
(4) by inserting after paragraph (6) the following new
paragraphs:
``(7) ensures that its onsite comprehensive reviews for
accreditation or reaccreditation include evaluation of the
substance of the information required in subparagraph (H) of
section 485(a)(1);
``(8) confirms as a part of its review for accreditation or
reaccreditation that the institution has transfer policies--
``(A) that are publicly disclosed; and
``(B) that do not deny transfer of credit based
solely on the accreditation of the sending institution
as long as the association or agency is recognized by
the Secretary pursuant to section 496;
``(9) develops a brief summary, available to the public, of
final adverse actions in accordance with the requirements of
subsection (a)(8);
``(10) monitors the enrollment growth of distance education
to ensure that an institution experiencing signficant growth
has the capacity to serve its students effectively;
``(11) discloses publicly, on the agency's website or through
other similar dissemination--
``(A) a list of the individuals who comprised the
evaluation teams during the prior calendar year for
each agency or association and the title and
institutional affiliation of such individuals, although
such list shall not be required to identify those
individuals who comprised the evaluation team used for
any specific institution;
``(B) a description of the agency's or association's
process for selecting, preparing, and evaluating such
individuals; and
``(C) any statements related to the accreditation
responsibilities of such individuals; and
``(12) reviews the record of student complaints resulting
from the student information process described in section
485(a)(1)(J).''.
(c) Limitation, Suspension, and Termination of Recognition.--Section
496(l) is amended by adding at the end the following new paragraph:
``(3) The Secretary shall provide an annual report to Congress on the
status of any agency or association for which the Secretary has
limited, suspended or terminated recognition under this subsection.''.
(d) Program Review and Data.--Section 498A(b) (20 U.S.C. 1099c-1(b))
is amended--
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5) and
inserting a semicolon; and
(3) by adding at the end the following new paragraphs:
``(6) provide to the institution adequate opportunity to
review and respond to any program review report or audit
finding and underlying materials related thereto before any
final program review or audit determination is reached;
``(7) review and take into consideration the institution's
response in any final program review or audit determination,
and include in the final determination--
``(A) a written statement addressing the
institution's response and stating the basis for such
final determination; and
``(B) a copy of the institution's statement in
response, appropriately redacted to protect
confidential information;
``(8) maintain and preserve at all times the confidentiality
of any program review report or audit finding until the
requirements of paragraphs (6) and (7) are met, and until a
final program review or audit determination has been issued,
except to the extent required to comply with paragraph (5),
provided, however, that the Secretary shall promptly disclose
any and all program review reports and audit findings to the
institution under review; and
``(9) require that the authority to approve or issue any
program review report or audit finding, preliminary or
otherwise, that contains any finding, determination, or
proposed assessment that exceeds or may exceed $500,000 in
liabilities shall not be delegated to any official beyond the
Chief Operating Officer of Federal Student Aid.''.
SEC. 496. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN
STUDENT FINANCIAL AID PROGRAMS.
Title IV is amended by adding at the end the following new section:
``SEC. 499. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN
STUDENT FINANCIAL AID PROGRAMS.
``(a) Purpose.--It is the purpose of this section to require the
Secretary to commission a nonpartisan, comprehensive study on the
prevention of fraud and abuse in title IV student financial aid
programs, and to report the results of such study to Congress.
``(b) Scope of Report.--The study under this section shall thoroughly
identify and address the following:
``(1) The impact of fraud and abuse in title IV student
financial aid programs upon students and taxpayers, and the
nature of such fraud and abuse.
``(2) The effectiveness of existing policies and requirements
under this Act that were put in place to prevent fraud and
abuse in title IV student financial aid programs, and how such
policies and requirements should be improved.
``(3) The extent to which existing protections against fraud
and abuse under this Act are adequately enforced, and how
enforcement should be strengthened.
``(4) Areas in which additional information is needed to
assess the effectiveness of current protections and enforcement
against fraud and abuse.
``(5) Existing policies and requirements under this Act aimed
at fraud and abuse that are ineffective, hinder innovation, or
could be eliminated without reducing effectiveness.
``(6) New policies and enforcement, particularly those suited
for the current higher education marketplace, needed to protect
against fraud and abuse in title IV student financial aid
programs.
``(7) The extent to which States are implementing regulations
to protect students from fraud and abuse, and whether changes
to Federal law will preempt such regulations.
``(c) Report.--Not later than December 31, 2007, the Secretary, after
an opportunity for both the Secretary and the Inspector General of the
Department of Education to review the results of the study, shall
transmit to Congress a report on the study conducted under this
section. Such report shall--
``(1) include clear and specific recommendations for
legislative and regulatory actions that are likely to
significantly reduce the fraud and abuse in title IV student
financial aid programs identified under subsection (b); and
``(2) include both the Secretary's and the Inspector
General's comments on the report.''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. DEFINITIONAL CHANGES.
Section 502(a) (20 U.S.C. 1101a(a)) is amended--
(1) in paragraph (5)--
(A) by inserting ``and'' after the semicolon at the
end of subparagraph (A);
(B) by inserting ``at the end of the award year
immediately preceding the date of application'' after
``Hispanic students'' in subparagraph (B);
(C) by striking ``; and'' at the end of subparagraph
(B) and inserting a period; and
(D) by striking subparagraph (C); and
(2) by striking paragraph (7).
SEC. 502. ASSURANCE OF ENROLLMENT OF NEEDY STUDENTS.
Section 511(c) (20 U.S.C. 1103(c)) is amended--
(1) by striking paragraph (2);
(2) by redesignating paragraphs (3) through (7) as paragraphs
(2) through (6); and
(3) by inserting after paragraph (6) as so redesignated the
following new paragraph:
``(7) contain such assurances as the Secretary may require
that the institution has an enrollment of needy students as
required by section 502(b);''.
SEC. 503. ADDITIONAL AMENDMENTS.
Title V is further amended--
(1) in section 502(a)(2)(A) (20 U.S.C. 1101a(a)(2)(A)), by
redesignating clauses (v) and (vi) as clauses (vi) and (vii),
respectively, and inserting after clause (iv) the following new
clause:
``(v) which provides a program of not less
than 2 years that is acceptable for full credit
toward a bachelor's degree;'';
(2) in section 503(b) (20 U.S.C. 1101b(b))--
(A) by amending paragraph (2) to read as follows:
``(2) 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) by amending paragraph (12) to read as follows:
``(12) Establishing community outreach programs and
collaborative partnerships between Hispanic-serving
institutions and local elementary or secondary schools. Such
partnerships may include mentoring, tutoring, or other
instructional opportunities that will boost student academic
achievement and assist elementary and secondary school students
in developing the academic skills and the interest to pursue
postsecondary education.'';
(C) by redesignating paragraphs (5) through (14) as
paragraphs (6) through (15), respectively; and
(D) by inserting after paragraph (4) the following:
``(5) Education or counseling services designed to improve
the financial literacy and economic literacy of students and,
as appropriate, their parents.'';
(3) in section 504(a) (20 U.S.C. 1101c(a))--
(A) by striking the following:
``(a) Award Period.--
``(1) In general.--The Secretary'' and inserting the
following:
``(a) Award Period.--The Secretary''; and
(B) by striking paragraph (2); and
(4) in section 514(c) (20 U.S.C. 1103c(c)), by striking
``section 505'' and inserting ``section 504''.
SEC. 504. POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS.
(a) Establishment of Program.--Title V 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 (20 U.S.C. 1101d) the
following new part:
``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 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
competitive grants to Hispanic-serving institutions determined by the
Secretary to be making substantive contributions to graduate
educational opportunities for Hispanic students.
``(b) Eligibility.--For the purposes of this part, an `eligible
institution' means an institution of higher education that--
``(1) is an eligible institution under section 502(a)(2); and
``(2) offers a postbaccalaureate certificate or 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 needy postbaccalaureate students including
outreach, academic support services, mentoring, scholarships,
fellowships, and other financial assistance to permit the
enrollment of such students in postbaccalaureate certificate
and 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 learning academic instruction capabilities, including
purchase or rental of telecommunications technology equipment
or services.
``(7) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and 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 determined by the Secretary. Such
application shall demonstrate how the grant funds will be used to
improve postbaccalaureate education opportunities in programs and
professions in which Hispanic Americans are underrepresented.
``(b) Duration.--Grants under this part shall be awarded for a period
not to exceed 5 years.
``(c) Limitation.--The Secretary shall not award more than one grant
under this part in any fiscal year to any Hispanic-serving
institution.''.
(b) Cooperative Arrangements.--Section 524(a) (as redesignated by
subsection (a)(2)) (20 U.S.C. 1103c(a)) is amended by inserting ``and
section 513'' after ``section 503''.
SEC. 505. AUTHORIZATION OF APPROPRIATIONS.
Subsection (a) of section 528 (as redesignated by section 504(a)(2)
of this Act) (20 U.S.C. 1103g) is amended to read as follows:
``(a) Authorizations.--
``(1) Part a.--There are authorized to be appropriated to
carry out part A and part C of this title $96,000,000 for
fiscal year 2006 and such sums as may be necessary for each of
the 5 succeeding fiscal years.
``(2) Part b.--There are authorized to be appropriated to
carry out part B of this title $59,000,000 for fiscal year 2006
and such sums as may be necessary for each of the 5 succeeding
fiscal years.''.
TITLE VI--TITLE VI AMENDMENTS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
(a) Findings and Purposes.--Section 601 (20 U.S.C. 1121) is amended--
(1) in subsection (a)--
(A) by striking ``post-Cold War'' in paragraph (3);
(B) by redesignating paragraphs (4) and (5) as
paragraphs (5) and (6), respectively; and
(C) by inserting after paragraph (3) the following
new paragraph:
``(4) The events and aftermath of September 11, 2001, have
underscored the need for the Nation to strengthen and enhance
American knowledge of international relations, world regions,
and foreign languages. Homeland security and effective United
States engagement abroad depend upon an increased number of
Americans who have received such training and are willing to
serve their Nation.'';
(2) in subsection (b)(1)--
(A) by striking ``; and'' at the end of subparagraph
(D) and inserting ``, including through linkages
overseas with institutions of higher education and
relevant organizations that contribute to the
educational programs assisted under this part;'';
(B) by inserting ``and'' after the semicolon at the
end of subparagraph (E);
(C) by inserting after such subparagraph (E) the
following new subparagraph:
``(F) to assist the national effort to educate and train
citizens to participate in the efforts of homeland security;'';
and
(3) in subsection (b)(3)--
(A) by inserting ``reinforce and'' before
``coordinate''; and
(B) by inserting ``, and international business and
trade competitiveness'' before the period.
(b) Graduate and Undergraduate Language and Area Centers and
Programs.--Section 602(a) (20 U.S.C. 1122(a)) is amended--
(1) 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.'';
(2) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph
(G);
(B) by striking the period at the end of subparagraph
(H) and inserting a semicolon; and
(C) by inserting after subparagraph (H) the following
new subparagraphs:
``(I) supporting instructors of the less commonly
taught languages;
``(J) widely disseminating materials developed by the
center or program to local educational agencies and
public and private elementary and secondary education
schools, and institutions of higher education,
presented from diverse perspectives and reflective of a
wide range of views on the subject matter, except that
no more than 50 percent of funds awarded to an
institution of higher education or consortia of such
institutions for purposes under this title may be
associated with the costs of dissemination; and
``(K) projects that support in students an
understanding of science and technology in coordination
with foreign language proficiency.''; and
(3) in paragraph (4)--
(A) by amending subparagraph (B) to read as follows:
``(B) Partnerships or programs of linkage and
outreach with 2-year and 4-year colleges and
universities, including colleges of education and
teacher professional development programs.'';
(B) in subparagraph (C), by striking ``Programs of
linkage or outreach'' and inserting ``Partnerships or
programs of linkage and outreach'';
(C) 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)'';
(D) by redesignating subparagraphs (C), (D), and (E)
as subparagraphs (D), (E), and (F), respectively; and
(E) by inserting after subparagraph (B) the following
new subparagraph:
``(C) Partnerships with local educational agencies
and public and private elementary and secondary
education schools that are designed to increase student
academic achievement in foreign language and knowledge
of world regions, and to facilitate the wide
dissemination of materials related to area studies,
foreign languages, and international studies that are
reflective of a wide range of views on the subject
matter.''.
(c) 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''.
(d) 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)(ii), by striking ``teacher
training'' and inserting ``teacher professional
development'';
(B) by redesignating subparagraphs (I) through (M) as
subparagraphs (J) through (N), respectively;
(C) by inserting after subparagraph (H) the following
new subparagraph:
``(I) the provision of grants for educational
programs abroad that are closely linked to the
program's overall goals and have the purpose of
promoting foreign language fluency and knowledge of
world regions, except that not more than 10 percent of
a grant recipient's funds may be used for this
purpose;''; and
(D) in subparagraph (M)(ii) (as redesignated by
subparagraph (B) of this paragraph), by striking
``elementary and secondary education institutions'' and
inserting ``local educational agencies and public and
private elementary and secondary education schools'';
(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)(8), by striking ``may'' and inserting
``shall''; and
(6) by striking subsection (c).
(e) Research; Studies; Annual Report.--Section 605(a) (20 U.S.C.
1125(a)) is amended by inserting before the period at the end of the
first sentence the following: ``, including the systematic collection,
analysis, and dissemination of data''.
(f) 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 ``museums, or consortia of
such entities'';
(B) by striking ``new''; and
(C) by inserting ``from foreign sources'' after
``disseminate information'';
(2) in subsection (b)--
(A) by inserting ``acquire and'' before ``facilitate
access'' in paragraph (1);
(B) by striking ``new means of'' in paragraph (3) and
inserting ``new means and standards for'';
(C) by striking ``and'' at the end of paragraph (6);
(D) by striking the period at the end of paragraph
(7) and by inserting a semicolon; and
(E) by inserting after paragraph (7) the following
new paragraphs:
``(8) to establish linkages between grant recipients under
subsection (a) with libraries, museums, organizations, or
institutions of higher education located overseas to facilitate
carrying out the purposes of this section; and
``(9) to carry out other activities deemed by the Secretary
to be consistent with the purposes of this section.''; and
(3) by adding at the end the following new subsection:
``(e) Special Rule.--The Secretary may waive or reduce the required
non-Federal share 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.''.
(g) Selection of Grant Recipients.--Section 607(b) (20 U.S.C.
1127(b)) is amended--
(1) by striking ``objectives'' and inserting ``missions'';
and
(2) by adding at the end the following new sentence: ``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 interests, generate and disseminate
information, and foster debate on international issues from
diverse perspectives.''.
(h) Equitable Distribution.--Section 608(a) (20 U.S.C. 1128(a)) is
amended by adding at the end the following new sentence: ``Grants made
under section 602 shall also reflect the purposes of this part.''.
(i) Authorization of Appropriations.--Section 610 (20 U.S.C. 1128b)
is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
(j) Conforming Amendments.--
(1) 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''.
(2) Section 612 (20 U.S.C. 1130-1) is amended by striking
``combination'' each place it appears and inserting
``consortium''.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Centers for International Business Education.--Section 612 (20
U.S.C. 1130-1) is amended--
(1) in subsection (c)(1)(D), 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''; and
(2) in subsection (e), by adding at the end the following new
paragraph:
``(5) Special rule.--The Secretary may waive or reduce the
required non-Federal share for institutions that--
``(A) are eligible to receive assistance under part A
or B of title III or under title V; and
``(B) have submitted a grant application under this
section that demonstrates a need for a waiver or
reduction.''.
(b) Education and Training Programs.--Section 613 (20 U.S.C. 1130a)
is amended by adding at the end the following new subsection:
``(e) Special Rule.--The Secretary may waive or reduce the required
non-Federal share 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.''.
(c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b)
is amended--
(1) by striking ``1999'' each place it appears and inserting
``2006''; and
(2) by striking ``4 succeeding'' each place it appears and
inserting ``5 succeeding''.
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.
(a) Foreign Service Professional Development.--Section 621 (20 U.S.C.
1131) is amended--
(1) by striking the heading of such section and inserting the
following:
``SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.'';
(2) by striking the second sentence of subsection (a) 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.''; and
(3) in subsection (b)(1), by striking subparagraphs (A) and
(B) and inserting the following:
``(A) A Tribally Controlled College or University or
Alaska Native or Native Hawaiian-serving institution
eligible for assistance under title III, an institution
eligible for assistance under part B of title III, or a
Hispanic-serving institution eligible for assistance
under title V.
``(B) An institution of higher education which serves
substantial numbers of underrepresented students.''.
(b) Institutional Development.--Section 622 (20 U.S.C. 1131-1) is
amended by inserting before the period at the end of subsection (a) the
following: ``and promote collaboration with colleges and universities
that receive funds under this title''.
(c) Study Abroad Program.--Section 623(a) (20 U.S.C. 1131a(a)) is
amended by inserting after ``1978,'' the following: ``Alaska Native-
serving, Native Hawaiian-serving, and Hispanic-serving institutions,''.
(d) 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''.
(e) Internships.--Section 625 (20 U.S.C. 1131c) is amended--
(1) in subsection (a), by inserting after ``1978,'' the
following: ``Alaska Native-serving, Native Hawaiian-serving,
and Hispanic-serving institutions,'';
(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) by amending subsection (c) to read as follows:
``(c) Ralph J. Bunche Fellows.--In order to assure the recognition
and commitment of individuals from underrepresented student populations
who demonstrate special interest in international affairs and language
study, eligible students who participate in the internship programs
authorized under (a) and (b) shall be known as the `Ralph J. Bunche
Fellows'.''.
(f) Report.--Section 626 (20 U.S.C. 1131d) is amended by striking
``annually prepare a report'' and inserting ``prepare a report
biennially''.
(g) Authorization of Appropriations.--Section 628 (20 U.S.C. 1131f)
is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 604. EVALUATION, OUTREACH, AND DISSEMINATION.
Part D of title VI is amended by inserting after section 631 (20
U.S.C. 1132) the following new section:
``SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.
``The Secretary may use not more than one percent of the funds made
available for this title for program evaluation, national outreach, and
information dissemination activities.''.
SEC. 605. ADVISORY BOARD.
Part D of title VI is amended by inserting after section 632 (as
added by section 604) the following new section:
``SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.
``(a) Establishment and Purpose.--
``(1) Establishment.--There is established in the Department
an independent International Higher Education Advisory Board
(hereafter in this section referred to as the `International
Advisory Board'). The International Advisory Board shall
provide advice, counsel, and recommendations to the Secretary
and the Congress on international education issues for higher
education.
``(2) Purpose.--The purpose of the International Advisory
Board is--
``(A) to provide expertise in the area of national
needs for proficiency in world regions, foreign
languages, international affairs, and international
business;
``(B) to make recommendations that will promote the
excellence of international education programs and
result in the growth and development of such programs
at the postsecondary education level that will reflect
diverse perspectives and a wide range of views on world
regions, foreign language, international affairs, and
international business; and
``(C) to advise the Secretary and the Congress with
respect to needs for expertise in government, the
private sector, and education in order to enhance
America's understanding of, and engagement in, the
world.
``(b) Independence of International Advisory Board.--In the exercise
of its functions, powers, and duties, the International Advisory Board
shall be independent of the Secretary and the other offices and
officers of the Department. Except as provided in this subsection and
subsection (f), the recommendations of the International Advisory Board
shall not be subject to review or approval by any officer of the
Federal Government. Nothing in this title shall be construed to
authorize the International Advisory Board to mandate, direct, or
control an institution of higher education's specific instructional
content, curriculum, or program of instruction or instructor. The
International Advisory Board is authorized to assess a sample of
activities supported under this title, using materials that have been
submitted to the Department of Education by grant recipients under this
title, in order to provide recommendations to the Secretary and the
Congress for the improvement of programs under the title and to ensure
programs meet the purposes of the title to promote the study of and
expertise in foreign language and world regions, especially with
respect to diplomacy, national security, and international business and
trade competitiveness. The recommendations of the International
Advisory Board may address any area in need of improvement, except that
any recommendation of specific legislation to Congress shall be made
only if the President deems it necessary and expedient.
``(c) Membership.--
``(1) Appointment.--The International Advisory Board shall
have 7 members of whom--
``(A) 3 members shall be appointed by the Secretary;
``(B) 2 members shall be appointed by the Speaker of
the House of Representatives, upon the recommendation
of the Majority Leader and the Minority Leader; and
``(C) 2 members shall be appointed by the President
pro tempore of the Senate, upon the recommendation of
the Majority Leader and the Minority Leader.
``(2) Representation.--Two of the members appointed by the
Secretary under paragraph (1)(A) shall be appointed to
represent Federal agencies that have diplomacy, national
security, international commerce, or other international
activity responsibilities, after consultation with the heads of
such agencies. The members of the International Advisory Board
shall also include (but not be limited to) persons with
international expertise representing States, institutions of
higher education, cultural organizations, educational
organizations, international business, local education
agencies, students, and private citizens with expertise in
international concerns.
``(3) Qualification.--Members of the International Advisory
Board shall be individuals who have technical qualifications,
professional standing, experience working in international
affairs or foreign service or international business
occupations, or demonstrated knowledge in the fields of higher
education and international education, including foreign
languages, world regions, or international affairs.
``(d) Functions of the International Advisory Board.--
``(1) In general.--The International Advisory Board shall
provide recommendations in accordance with subsection (b)
regarding improvement of programs under this title to the
Secretary and the Congress for their review. The International
Advisory Board may--
``(A) review and comment upon the regulations for
grants under this title;
``(B) assess a sample of activities supported under
this title based on the purposes and objectives of this
title, using materials that have been submitted to the
Department of Education by grant recipients under this
title, in order to provide recommendations for
improvement of the programs under this title;
``(C) make recommendations that will assist the
Secretary and the Congress to improve the programs
under this title to better reflect the national needs
related to foreign languages, world regions, diplomacy,
national security, and international business and trade
competitiveness, including an assessment of the
national needs and the training provided by the
institutions of higher education that receive a grant
under this title for expert and non-expert level
foreign language training;
``(D) make recommendations to the Secretary and the
Congress regarding such studies, surveys, and analyses
of international education that will provide feedback
about the programs under this title and assure that
their relative authorized activities reflect diverse
perspectives and a wide range of views on world
regions, foreign languages, diplomacy, national
security, and international business and trade
competitiveness;
``(E) make recommendations that will strengthen the
partnerships between local educational agencies, public
and private elementary and secondary education schools,
and grant recipients under this title to ensure that
the research and knowledge about world regions, foreign
languages, and international affairs is widely
disseminated to local educational agencies;
``(F) make recommendations on how institutions of
higher education that receive a grant under this title
can encourage students to serve the Nation and meet
national needs in an international affairs,
international business, foreign language, or national
security capacity;
``(G) make recommendations on how linkages between
institutions of higher education and public and private
organizations that are involved in international
education, international business and trade
competitiveness, language training, and international
research capacities may fulfill the manpower and
information needs of United States businesses; and
``(H) make recommendations to the Secretary and the
Congress about opportunities for underrepresented
populations in the areas of foreign language study,
diplomacy, international business and trade
competitiveness, and international economics, in order
to effectively carry out the activities of the
Institute under part C.
``(2) Hearings.--The International Advisory Board shall
provide for public hearing and comment regarding the matter
contained in the recommendations described in paragraph (1),
prior to the submission of those recommendations to the
Secretary and the Congress.
``(e) Operations of the Committee.--
``(1) Terms.--Each member of the International Advisory Board
shall be appointed for a term of 3 years, except that, of the
members first appointed (A) 4 shall be appointed for a term of
3 years, and (B) 3 shall be appointed for a term of 4 years, as
designated at the time of appointment by the Secretary. A
member of the International Advisory Board may be reappointed
to successive terms on the International Advisory Board.
``(2) Vacancies.--Any member appointed to fill a vacancy
occurring prior to the expiration of the term of a predecessor
shall be appointed only for the remainder of such term. A
member of the International Advisory Board shall, upon the
Secretary's request, continue to serve after the expiration of
a term until a successor has been appointed.
``(3) No governmental members.--Except for the members
appointed by the Secretary under subsection (c)(1)(A), no
officers or full-time employees of the Federal Government shall
serve as members of the International Advisory Board.
``(4) Meetings.--The International Advisory Board shall meet
not less than once each year. The International Advisory Board
shall hold additional meetings at the call of the Chair or upon
the written request of not less than 3 voting members of the
International Advisory Board.
``(5) Quorum.--A majority of the voting members of the
International Advisory Board serving at the time of a meeting
shall constitute a quorum.
``(6) Chair.--The International Advisory Board shall elect a
Chairman or Chairwoman from among the members of the
International Advisory Board.
``(f) Submission to Department for Comment.--The International
Advisory Board shall submit its proposed recommendations to the
Secretary of Education for comment for a period not to exceed 30 days
in each instance.
``(g) Personnel and Resources.--
``(1) Compensation and expense.--Members of the International
Advisory Board shall serve without pay for such service.
Members of the International Advisory Board who are officers or
employees of the United States may not receive additional pay,
allowances, or benefits by reason of their service on the
International Advisory Board. Members of the International
Advisory Board may each receive reimbursement for travel
expenses incident to attending International Advisory Board
meetings, including per diem in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code, for
persons in the Government service employed intermittently.
``(2) Personnel.--The International Advisory Board may
appoint such personnel as may be determined necessary by the
Chairman without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service,
and may be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, but no
individual so appointed shall be paid in excess of the maximum
rate payable under section 5376 of such title. The
International Advisory Board may appoint not more than one
full-time equivalent, nonpermanent, consultant without regard
to the provisions of title 5, United States Code. The
International Advisory Board shall not be required by the
Secretary to reduce personnel to meet agency personnel
reduction goals.
``(3) Consultation.--In carrying out its duties under the
Act, the International Advisory Board shall consult with other
Federal agencies, representatives of State and local
governments, and private organizations to the extent feasible.
``(4) Assistance from other agencies.--
``(A) Information.--The International Advisory Board
is authorized to secure directly from any executive
department, bureau, agency, board, commission, office,
independent establishment, or instrumentality
information, suggestions, estimates, and statistics for
the purpose of this section and each such department,
bureau, agency, board, commission, office, independent
establishment, or instrumentality is authorized and
directed, to the extent permitted by law, to furnish
such information, suggestions, estimates, and
statistics directly to the International Advisory
Board, upon request made by the Chairman for the
purpose of providing expertise in the area of national
needs for the proficiency in world regions, foreign
languages, and international affairs.
``(B) Services and personnel.--The head of each
Federal agency shall, to the extent not prohibited by
law, consult with the International Advisory Board in
carrying out this section. The International Advisory
Board is authorized to utilize, with their consent, the
services, personnel, information, and facilities of
other Federal, State, local, and private agencies with
or without reimbursement, for the purpose of providing
expertise in the area of national needs for the
proficiency in world regions, foreign languages, and
international affairs.
``(5) Contracts; experts and consultants.--The International
Advisory Board may enter into contracts for the acquisition of
information, suggestions, estimates, and statistics for the
purpose of this section. The International Advisory Board is
authorized to obtain the services of experts and consultants
without regard to section 3109 of title 5, United States Code
and to set pay in accordance with such section.
``(h) Termination.--Notwithstanding the sunset and charter provisions
of the Federal Advisory Committee Act (5 U.S.C. App. I) or any other
statute or regulation, the International Advisory Board shall be
authorized through September 30, 2012.
``(i) Funds.--The Secretary shall use not more than one-half of the
funds available to the Secretary under section 632 to carry out this
section.''.
SEC. 606. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING
INFORMATION; SAFETY.
Part D of title VI is amended by inserting after section 633 (as
added by section 605) the following new sections:
``SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING
INFORMATION.
``Each institution of higher education that receives a grant under
this title shall assure that--
``(1) recruiters of the United States Government and agencies
thereof are given the same access to students as is provided
generally to other institutions of higher education and
prospective employers of those students for the purpose of
recruiting for graduate opportunities or prospective
employment; and
``(2) no undue restrictions are placed upon students that
seek employment with the United States Government or any agency
thereof.
``SEC. 635. STUDENT SAFETY.
``Applicants seeking funds under this title to support student travel
and study abroad shall submit as part of their grant application a
description of safety policies and procedures for students
participating in the program while abroad.''.
SEC. 607. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.
Part D of title VI is further amended by inserting after section 635
(as added by section 606) the following new section:
``SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.
``(a) Study.--The Secretary of Education, in consultation with the
International Advisory Board, shall conduct a study to identify foreign
language heritage communities, particularly such communities that
include speakers of languages that are critical to the national
security of the United States.
``(b) Foreign Language Heritage Community.--For purposes of this
section, the term `foreign language heritage community' means a
community of residents or citizens of the United States who are native
speakers of, or who have partial fluency in, a foreign language.
``(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Education shall submit a report
to the Congress on the results of the study conducted under this
section.''.
TITLE VII--TITLE VII AMENDMENTS
SEC. 701. JAVITS FELLOWSHIP PROGRAM.
(a) Authority and Timing of Awards.--Section 701(a) (20 U.S.C.
1132a(a)) is amended by inserting after the second sentence the
following: ``For purposes of the exception in the preceding sentence, a
master's degree in fine arts shall be considered a terminal degree.''.
(b) 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 not more than 12 months (in any other case), but without
payment of the stipend.''.
(c) Allocation of Fellowships.--Section 702(a)(1) (20 U.S.C.
1134a(a)(1)) is amended--
(1) in the first sentence, by inserting ``from diverse
geographic regions'' after ``higher education''; and
(2) by adding at the end the following new sentence: ``The
Secretary shall also assure that at least one representative
appointed to the Board represents an institution that is
eligible for a grant under title III or V of this Act.''.
(d) Stipends.--Section 703 (20 U.S.C. 1134b(a)) is amended--
(1) in subsection (a)--
(A) by striking ``1999-2000'' and inserting ``2006-
2007'';
(B) by striking ``shall be set'' and inserting ``may
be set''; and
(C) by striking ``Foundation graduate fellowships''
and inserting ``Foundation Graduate Research Fellowship
Program on February 1 of such academic year''; and
(2) in subsection (b), by amending paragraph (1)(A) to read
as follows:
``(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 2006-2007 and succeeding
academic years, the same amount as the institutional payment
made for 2005-2006 adjusted for 2006-2007 and annually
thereafter in accordance with inflation as determined by the
Department of Labor's Consumer Price Index for All Urban
Consumers for the previous calendar year.''.
(e) Authorization of Appropriations.--Section 705 (20 U.S.C. 1134d)
is amended by striking ``fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years'' and inserting
``fiscal year 2006 and such sums as may be necessary for each of the 5
succeeding fiscal years''.
SEC. 702. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.
(a) Designation of Areas of National Need; Priority.--Section 712 (20
U.S.C. 1135a) is amended--
(1) in the last sentence of subsection (b)--
(A) by striking ``and an assessment'' and inserting
``an assessment''; and
(B) by inserting before the period at the end the
following: ``, and the priority described in subsection
(c) of this section''; and
(2) by adding at the end the following new subsection:
``(c) Priority.--The Secretary shall establish a priority for grants
in order to prepare individuals for the professoriate who will train
highly-qualified elementary and secondary math and science teachers,
special education teachers, and teachers who provide instruction for
limited English proficient individuals. Such grants shall offer program
assistance and graduate fellowships for--
``(1) post-baccalaureate study related to teacher preparation
and pedagogy in math and science for students who have
completed a master's degree or are pursuing a doctorate of
philosophy in math and science;
``(2) post-baccalaureate study related to teacher preparation
and pedagogy in special education and English language
acquisition and academic proficiency for limited English
proficient individuals; and
``(3) support of dissertation research in the fields of math,
science, special education, or second language pedagogy and
second language acquisition.''.
(b) Collaboration Required for Certain Applications.--Section 713(b)
(20 U.S.C. 1135b) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by redesignating paragraph (10) as paragraph (11); and
(3) by inserting after paragraph (9) the following new
paragraph:
``(10) in the case of an application for a grant by a
department, program, or unit in education or teacher
preparation, contain assurances that such department, program,
or unit collaborates with departments, programs, or units in
all content areas to assure a successful combination of
training in both teaching and such content; and''.
(c) Stipends.--Section 714(b) (20 U.S.C. 1135c(b)) is amended--
(1) by striking ``1999-2000'' and inserting ``2006-2007'';
(2) by striking ``shall be set'' and inserting ``may be
set''; and
(3) by striking ``Foundation graduate fellowships'' and
inserting ``Foundation Graduate Research Fellowship Program on
February 1 of such academic year''.
(d) Additional Assistance.--Section 715(a)(1) (20 U.S.C. 1135d(a)(1))
is amended--
(1) by striking ``1999-2000'' and inserting ``2006-2007'';
(2) by striking ``1998-1999'' and inserting ``2005-2006'';
and
(3) by inserting ``for All Urban Consumers'' after ``Price
Index''.
(e) Authorization of Appropriations.--Section 716 (20 U.S.C. 1135e)
is amended by striking ``fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years'' and inserting
``fiscal year 2006 and such sums as may be necessary for each of the 5
succeeding fiscal years''.
(f) Technical Amendments.--Section 714(c) (20 U.S.C. 1135c(c)) is
amended--
(1) by striking ``section 716(a)'' and inserting ``section
715(a)''; and
(2) by striking ``section 714(b)(2)'' and inserting ``section
713(b)(2)''.
SEC. 703. THURGOOD MARSHALL LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
(a) Contract and Grant Purposes.--Section 721(c) (20 U.S.C. 1136(c))
is amended--
(1) by amending paragraph (2) to read as follows:
``(2) to prepare such students for study at accredited law
schools and assist them with the development of analytical
skills and study methods to enhance their success and promote
completion of law school;'';
(2) by striking ``and'' at the end of paragraph (4);
(3) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(6) to award Thurgood Marshall Fellowships to eligible law
school students--
``(A) who participated in summer institutes
authorized by subsection (d) and who are enrolled in an
accredited law school; or
``(B) who are eligible law school students who have
successfully completed a comparable summer institute
program certified by the Council on Legal Educational
Opportunity.''.
(b) Services Provided.--Section 721(d)(1)(D) (20 U.S.C.
1136(d)(1)(D)) is amended by inserting ``in analytical skills and study
methods'' after ``courses''.
(c) Authorization of Appropriations.--Section 721(h) (20 U.S.C.
1136(h)) is amended by striking ``1999 and each of the 4 succeeding
fiscal years'' and inserting ``2006 and each of the 5 succeeding fiscal
years''.
(d) General Provisions.--Subsection (e) of section 731 (20 U.S.C.
1137(e)) is repealed.
SEC. 704. 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 amending paragraph (1) to read as follows:
``(1) the encouragement of the reform and improvement of, and
innovation in, postsecondary education and the provision of
educational opportunity for all, especially for the non-
traditional student populations;'';
(2) in paragraph (2), by inserting before the semicolon at
the end the following: ``for postsecondary students, especially
institutions, programs, and joint efforts that provide academic
credit for programs'';
(3) by amending paragraph (3) to read as follows:
``(3) the establishment of institutions and programs based on
the technology of communications, including delivery by
distance education;'';
(4) by amending paragraph (6) to read as follows:
``(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;'';
(5) by striking ``and'' at the end of paragraph (7);
(6) by striking the period at the end of paragraph (8) and
inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(9) the provision of support and assistance to programs
implementing integrated education reform services in order to
improve secondary school graduation and college attendance and
completion rates for disadvantaged students, and to programs
that reduce postsecondary remediation rates, and improve degree
attainment rates, for low-income students and former high
school dropouts; and
``(10) the assessment, in partnership with a public or
private nonprofit institution or agency, of the performance of
teacher preparation programs within institutions of higher
education in a State, using an assessment which provides
comparisons across such schools within the State based upon
indicators including teacher candidate knowledge in subject
areas in which such candidate has been prepared to teach. ''.
(b) Prohibition.--Section 741 (20 U.S.C. 1138) is further amended by
adding at the end the following new subsection:
``(c) Prohibition.--No funds made available under this part may be
used to provide financial assistance to students who do not meet the
requirements of section 484(a)(5).''.
(c) Areas of National Need.--Section 744(c) (20 U.S.C. 1138c(c)) is
amended--
(1) by amending paragraph (2) to read as follows:
``(2)(A) Development of partnerships between local
educational agencies and institutions of higher education to
establish or expand existing dual enrollment programs at
institutions of higher education that allow high school
students to earn high school and transferable college credit.
``(B) Development of consortia of institutions of higher
education to create dual enrollment programs including academic
and student support agreements and comprehensive articulation
agreements that would allow for the seamless and timeless
acquisition of college credits and the transfer of
postsecondary academic credits between such institutions,
particularly from 2-year to 4-year institutions of higher
education.''; and
(2) by striking paragraph (4) and inserting the following:
``(4) International cooperation, partnerships, or student
exchange among postsecondary educational institutions in the
United States and abroad.
``(5) Establishment of academic programs including graduate
and undergraduate courses, seminars and lectures, support of
research, and development of teaching materials for the purpose
of supporting faculty and academic programs that teach
traditional American history (including significant
constitutional, political, intellectual, economic, diplomatic,
and foreign policy trends, issues, and documents; the history,
nature, and development of democratic institutions of which
American democracy is a part; and significant events and
individuals in the history of the United States).
``(6) Support for planning, applied research, training,
resource exchanges or technology transfers, the delivery of
services, or other activities the purpose of which is to design
and implement programs to enable institutions of higher
education to work with private and civic organizations to
assist communities to meet and address their pressing and
severe problems, including economic development, community
infrastructure and housing, crime prevention, education,
healthcare, self-sufficiency, and workforce preparation. Such
activities may include support for the development of
coordinated curriculum and internship opportunities for
students in disadvantaged communities.''.
(d) Authorization of Appropriations.--Section 745 (20 U.S.C. 1138d)
is amended by striking ``$30,000,000 for fiscal year 1999 and such sums
as may be necessary for each of the 4 succeeding fiscal years'' and
inserting ``$40,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years'' .
SEC. 705. URBAN COMMUNITY SERVICE.
Part C of title VII (20 U.S.C. 1139 et seq.) is repealed.
SEC. 706. DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES
RECEIVE A QUALITY HIGHER EDUCATION.
(a) Serving All Students With Disabilities.--Section 762(a) (20
U.S.C. 1140a(a)) is amended by striking ``students with learning
disabilities'' and inserting ``students with disabilities''.
(b) Authorized Activities.--
(1) Amendment.--Section 762(b)(2) is amended--
(A) in subparagraph (A), by inserting ``in order to
improve retention and completion'' after
``disabilities'';
(B) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (E), respectively;
(C) by inserting after subparagraph (A) the following
new subparagraph:
``(B) Effective transition practices.--The
development of innovative, effective, and efficient
teaching methods and strategies to ensure the smooth
transition of students with disabilities from high
school to postsecondary education.''; and
(D) by inserting after subparagraph (C) (as
redesignated by subparagraph (B) of this paragraph) the
following new subparagraph:
``(D) Distance learning.--The development of
innovative, effective, and efficient teaching methods
and strategies to provide faculty and administrators
with the ability to provide accessible distance
education programs or classes that would enhance access
of students with disabilities to higher education,
including the use of electronic communication for
instruction and advisement.''.
(2) Conforming amendment.--Section 762(b)(3) is amended by
striking ``subparagraphs (A) through (C)'' and inserting
``subparagraphs (A) through (E)''.
(c) Applications.--Section 763 (20 U.S.C. 1140b) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) a description of how such institution plans to address
the activities allowed under this part;'';
(2) by striking ``and'' at the end of paragraph (2);
(3) by striking the period at the end of paragraph (3) and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(4) a description of the extent to which an institution
will work to replicate the best practices of institutions of
higher education with demonstrated success in serving students
with disabilities.''.
(d) Authorization of Appropriations.--Section 765 (20 U.S.C. 1140d)
is amended by striking ``fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years'' and inserting
``fiscal year 2006 and such sums as may be necessary for each of the 5
succeeding fiscal years''.
TITLE VIII--CLERICAL AMENDMENTS
SEC. 801. CLERICAL AMENDMENTS.
(a) Definition.--Section 103 (20 U.S.C. 1003) (as amended by section
102) is further amended--
(1) by redesignating paragraphs (1) through (16) as
paragraphs (2) through (17), respectively; and
(2) by inserting before paragraph (2) (as so redesignated)
the following new paragraph:
``(1) Authorizing committees.--The term `authorizing
committees' means the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on Education and
the Workforce of the House of Representatives.''.
(b) Committees.--
(1) The following provisions are each 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 ``authorizing committees'':
(A) Section 428(g) (20 U.S.C. 1078(g)).
(B) Section 428A(a)(3) (20 U.S.C. 1078-1(a)(3)), as
redesignated by section 430(e)(4).
(C) Section 428A(c)(2) (20 U.S.C. 1078-1(c)(2)).
(D) Section 428A(c)(5) (20 U.S.C. 1078-1(c)(5)).
(E) Section 455(b)(7)(B) (20 U.S.C. 1087e(b)(7)(B)),
as redesignated by section 423(b)(3).
(F) Section 483(c) (20 U.S.C. 1090(c)).
(G) Section 486(e) (20 U.S.C. 1093(e)).
(H) Section 486(f)(3)(A) (20 U.S.C. 1093(f)(3)(A)).
(I) Section 486(f)(3)(B) (20 U.S.C. 1093(f)(3)(B)).
(J) Section 487A(a)(5) (20 U.S.C. 1094a(a)(5)).
(K) Section 487A(b)(2) (20 U.S.C. 1094a(b)(2)).
(L) Section 487A(b)(3)(B) (20 U.S.C. 1094a(b)(3)(B)).
(M) Section 498B(d)(1) (20 U.S.C. 1099c-2(d)(1)).
(N) Section 498B(d)(2) (20 U.S.C. 1099c-2(d)(2)).
(2) The following provisions are each 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 ``authorizing committees'':
(A) Section 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)).
(B) Section 428(n)(4) (20 U.S.C. 1078(n)(4)).
(C) Section 437(c)(1) (20 U.S.C. 1087(c)(1)).
(D) Section 485(f)(5)(A) (20 U.S.C. 1092(f)(5)(A)).
(E) Section 485(g)(4)(B) (20 U.S.C. 1092(g)(4)(B)).
(3) Section 401(f)(3) (20 U.S.C. 1070a(f)(3)) is amended by
striking ``Committee on Appropriations and the Committee on
Labor and Human Resources of the Senate and the Committee on
Appropriations and the Committee on Education and the Workforce
of the House of Representatives'' and inserting ``Committees on
Appropriations of the Senate and House of Representatives and
the authorizing committees''.
(4) Section 428(c)(9)(K) (20 U.S.C. 1078(c)(9)(K)) is amended
by striking ``House Committee on Education and the Workforce
and the Senate Committee on Labor and Human Resources'' and
inserting ``authorizing committees''.
(5) Section 432(f)(1)(C) (20 U.S.C. 1082(f)(1)(C)) is amended
by striking ``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''.
(6) Section 439(d)(1)(E)(iii) (20 U.S.C. 1087-
2(d)(1)(E)(iii)) is amended by striking ``Chairman and the
Ranking Member on the Committee on Labor and Human Resources of
the Senate and the Chairman and the Ranking Member of the
Committee on Education and Labor of the House of
Representatives'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(7) Paragraphs (3) and (8)(C) of section 439(r) (20 U.S.C.
1087-2(r)) are each amended by striking ``Chairman and ranking
minority member of the Committee on Labor and Human Resources
of the Senate, the Chairman and ranking minority member of the
Committee on Education and Labor of the House of
Representatives,'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(8) Paragraphs (5)(B) and (10) of section 439(r) (20 U.S.C.
1087-2(r)) are each amended by striking ``Chairman and ranking
minority member of the Senate Committee on Labor and Human
Resources and to the Chairman and ranking minority member of
the House Committee on Education and Labor'' and inserting
``chairpersons and ranking minority members of the authorizing
committees''.
(9) Section 439(r)(6)(B) (20 U.S.C. 1087-2(r)(6)(B)) is
amended by striking ``Chairman and ranking minority member of
the Committee on Labor and Human Resources of the Senate and to
the Chairman and ranking minority member of the Committee on
Education and Labor of the House of Representatives'' and
inserting ``chairpersons and ranking minority members of the
authorizing committees''.
(10) Section 439(s)(2)(A) (20 U.S.C. 1087-2(s)(2)(A)) is
amended by striking ``Chairman and Ranking Member of the
Committee on Labor and Human Resources of the Senate and the
Chairman and Ranking Member of the Committee on Economic and
Educational Opportunities of the House of Representatives'' and
inserting ``chairpersons and ranking minority members of the
authorizing committees''.
(11) Section 439(s)(2)(B) (20 U.S.C. 1087-2(s)(2)(B)) is
amended by striking ``Chairman and Ranking Minority Member of
the Committee on Labor and Human Resources of the Senate and
Chairman and Ranking Minority Member of the Committee on
Economic and Educational Opportunities of the House of
Representatives'' and inserting ``chairpersons and ranking
minority members of the authorizing committees''.
(12) Section 482(d) (20 U.S.C. 1089(d)) is amended 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''.
(c) Additional Clerical Amendments.--
(1) Clauses (i) and (ii) of section 425(a)(2)(A) (20 U.S.C.
1075(a)(2)(A)) are each amended by striking ``428A or 428B''
and inserting ``428B or 428H''.
(2) Section 428(a)(2)(E) (20 U.S.C. 1078(a)(2)(E)) is amended
by striking ``428A or''.
(3) Clauses (i) and (ii) of section 428(b)(1)(B) (20 U.S.C.
1078(b)(1)(B)) are each amended by striking ``428A or 428B''
and inserting ``428B or 428H''.
(4) Section 428(b)(1)(Q) (20 U.S.C. 1078(b)(1)(Q)) is amended
by striking ``sections 428A and 428B'' and inserting ``section
428B or 428H''.
(5) Section 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended
by striking ``428A, 428B,'' and inserting ``428B''.
(6) Section 428G(c)(2) (20 U.S.C. 1078-7(c)(2)) is amended by
striking ``428A'' and inserting ``428H''.
(7) The heading for section 433(e) (20 U.S.C. 1083(e)) is
amended by striking ``SLS Loans And''.
(8) Section 433(e) (20 U.S.C. 1083(e)) is amended by striking
``428A, 428B,'' and inserting ``428B''.
(9) Section 435(a)(3) (20 U.S.C. 1085(a)(3)) is amended--
(A) by inserting ``or'' at the end of subparagraph
(A);
(B) by striking subparagraph (B); and
(C) by redesignating subparagraph (C) as subparagraph
(B).
(10) Section 435(d)(1)(G) (20 U.S.C. 1085(d)(1)(G)) is
amended by striking ``428A(d), 428B(d), 428C,'' and inserting
``428B(d), 428C, 428H,''.
(11) Section 435(m) (20 U.S.C. 1085(m)) is amended--
(A) in paragraph (1)(A), by striking ``, 428A,''; and
(B) in paragraph (2)(D), by striking ``428A'' each
place it appears and inserting ``428H''.
(12) Section 438(b)(2)(D)(ii) (20 U.S.C. 1087-1(b)(2)(D)(ii))
is amended by striking ``division (i) of this subparagraph''
and inserting ``clause (i) of this subparagraph''.
(13) Section 438(c)(6) (20 U.S.C. 1087-1(c)(6)) is amended--
(A) by striking ``Sls and plus'' in the heading and
inserting ``Plus''; and
(B) by striking ``428A or''.
(14) Section 438(c)(7) (20 U.S.C. 1087-1(c)(7)) is amended by
striking ``428A or''.
(15) Nothing in the amendments made by this subsection shall
be construed to alter the terms, conditions, and benefits
applicable to Federal supplemental loans for students (``SLS
loans'') under section 428A as in effect prior to July 1, 1994
(20 U.S.C. 1078-1).
TITLE IX--AMENDMENTS TO OTHER EDUCATION LAWS
PART A--EDUCATION OF THE DEAF ACT OF 1986
SEC. 901. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.
(a) General Authority.--Section 104(a)(1)(A) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4304(a)(1)(A)) is amended by inserting
after ``maintain and operate'' the following: ``, at the Laurent Clerc
National Deaf Education Center,''.
(b) Administrative Requirements.--
(1) In general.--Section 104(b) of the Education of the Deaf
Act of 1986 (20 U.S.C. 4304(b)) is amended--
(A) in the matter preceding subparagraph (A) of
paragraph (1), by striking ``elementary and secondary
education programs'' and inserting ``Laurent Clerc
National Deaf Education Center''; and
(B) in paragraph (2), by striking ``elementary and
secondary education programs'' and inserting ``Laurent
Clerc National Deaf Education Center''.
(2) Academic content standards, achievement standards, and
assessments.--Section 104(b) of the Education of the Deaf Act
of 1986 (20 U.S.C. 4304(b)) is amended by adding at the end the
following new paragraph:
``(5) The University, in consultation with the Secretary and
consistent with the mission of the elementary and secondary programs
operated at the Laurent Clerc National Deaf Education Center, shall--
``(A) not later than the beginning of the 2007-2008 school
year, adopt and implement academic content standards, academic
achievement standards, and academic assessments as described in
paragraphs (1) and (3) of section 1111(b) of the Elementary and
Secondary Education Act of 1965 for such Center;
``(B) develop adequate yearly progress standards for such
Center as described in section 1111(b)(2)(C) of such Act; and
``(C) publicly report the results of such assessments, except
in such case in which such reporting would not yield
statistically reliable information or would reveal personally
identifiable information about an individual student.''.
SEC. 902. AUTHORITY.
Section 111 of the Education of the Deaf Act of 1986 (20 U.S.C. 4331)
is amended by striking ``the institution of higher education with which
the Secretary has an agreement under this part'' and inserting ``the
Rochester Institute of Technology''.
SEC. 903. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) General Authority.--Section 112(a) of the Education of the Deaf
Act of 1986 (20 U.S.C. 4332(a)) is amended--
(1) in paragraph (1)--
(A) in the first sentence--
(i) by striking ``an institution of higher
education'' and inserting ``the Rochester
Institute of Technology, Rochester, New
York,''; and
(ii) by striking ``of a'' and inserting ``of
the''; and
(B) by striking the second sentence; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``the institution of higher education with
which the Secretary has an agreement under this
section'' and inserting ``the Rochester Institute of
Technology''; and
(B) in subparagraph (B), by striking ``the
institution'' and inserting ``the Rochester Institute
of Technology''.
(b) Provisions of Agreement.--Section 112(b) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4332(b)) is amended--
(1) in paragraph (2), by striking ``or other governing body
of the institution'' and inserting ``of the Rochester Institute
of Technology''; and
(2) in paragraph (3)--
(A) by striking ``or other governing body of the
institution'' and inserting ``of the Rochester
Institute of Technology'';
(B) by striking ``the institution of higher education
under the agreement with the Secretary'' and inserting
``the Rochester Institute of Technology by the National
Technical Institute for the Deaf''; and
(C) by striking ``Committee on Education and Labor of
the House of Representatives and to the Committee on
Labor and Human Resources of the Senate'' and inserting
``Committee on Education and the Workforce of the House
of Representatives and to the Committee on Health,
Education, Labor, and Pensions of the Senate''.
(c) Limitation.--Section 112(c) of the Education of the Deaf Act of
1986 (20 U.S.C. 4332(c)) is amended in paragraphs (1) and (2) by
striking ``institution'' each place it appears and inserting
``Rochester Institute of Technology''.
SEC. 904. DEFINITIONS.
Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 4351)
is amended--
(1) by striking paragraph (3);
(2) by redesignating paragraphs (4) through (7) as paragraphs
(3) through (6), respectively; and
(3) by adding at the end the following new paragraph:
``(7) The term `RIT' means the Rochester Institute of
Technology.''.
SEC. 905. AUDIT.
(a) Government Accountability Office Authority.--Section 203(a) of
the Education of the Deaf Act of 1986 (20 U.S.C. 4353(a)) is amended--
(1) in the heading, by striking ``General Accounting Office''
and inserting ``Government Accountability Office''; and
(2) in the matter following paragraph (2), by striking
``General Accounting Office'' and inserting ``Government
Accountability Office''.
(b) Independent Financial and Compliance Audit.--Section 203(b)(1) of
the Education of the Deaf Act of 1986 (20 U.S.C. 4353(b)(1)) is amended
by striking the second sentence and inserting the following: ``NTID
shall have an annual independent financial and compliance audit made of
RIT programs and activities, including NTID programs and activities.''.
(c) Compliance.--Section 203(b)(2) of the Education of the Deaf Act
of 1986 (20 U.S.C. 4353(b)(2)) is amended by striking ``sections'' and
all that follows through ``section 207'' and inserting ``sections
102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2), subsections (c)
through (f) of section 207''.
(d) Submission of Audits.--Section 203(b)(3) of the Education of the
Deaf Act of 1986 (20 U.S.C. 4353(b)(3)) is amended--
(1) by inserting after ``Secretary'' the following: ``and the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education, Labor,
and Pensions of the Senate''; and
(2) by striking ``or the institution authorized to establish
and operate the NTID under section 112(a)'' and inserting ``or
RIT''.
(e) Limitations Regarding Expenditure of Funds.--Section 203(c)(2)(A)
of the Education of the Deaf Act of 1986 (20 U.S.C. 4353(c)(2)(A)) is
amended in the fifth sentence by striking ``the Committee on Education
and Labor of the House of Representatives and the Committee on Labor
and Human Resources of the Senate'' and inserting ``the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the Senate''.
SEC. 906. REPORTS.
(a) Technical Amendments.--Section 204 of the Education of the Deaf
Act of 1986 (20 U.S.C. 4354) is amended in the matter preceding
paragraph (1)--
(1) by striking ``or other governing body of the institution
of higher education with which the Secretary has an agreement
under section 112'' and inserting ``of RIT''; and
(2) by striking ``Committee on Education and Labor of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate'' and inserting ``Committee on
Education and the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate''.
(b) Contents of Report.--Section 204 of the Education of the Deaf Act
of 1986 (20 U.S.C. 4354) is amended--
(1) in paragraph (2)(C), by striking ``upon graduation/
completion'' and inserting ``within one year of graduation/
completion''; and
(2) in paragraph (3)(B), by striking ``of the institution of
higher education with which the Secretary has an agreement
under section 112, including specific schedules and analyses
for all NTID funds, as required under section 203'' and
inserting ``of RIT programs and activities''.
SEC. 907. 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. 908. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
Section 207(a)(2) of the Education of the Deaf Act of 1986 (20 U.S.C.
4357(a)(2)) is amended by striking ``or other governing body of the
institution of higher education with which the Secretary has an
agreement under section 112'' and inserting ``of RIT''.
SEC. 909. 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--
(1) by striking ``the institution of higher education with
which the Secretary has an agreement under part B of title I''
and inserting ``RIT''; and
(2) 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 the Workforce of the House of Representatives and
the Committee on Health, Education, Labor, and Pensions of the
Senate''.
SEC. 910. AUTHORIZATION OF APPROPRIATIONS.
(a) Monitoring and Evaluation Activities.--Section 205(c) of the
Education of the Deaf Act of 1986 (20 U.S.C. 4355(c)) is amended by
striking ``fiscal years 1998 through 2003'' and inserting ``fiscal
years 2006 through 2011''.
(b) 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 in
paragraphs (1) and (2) by striking ``fiscal years 1998 through 2003''
each place it appears and inserting ``fiscal years 2006 through 2011''.
(c) General Authorization of Appropriations.--Section 212 of the
Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
(1) in the matter preceding paragraph (1) in subsection (a),
by striking ``fiscal years 1998 through 2003'' and inserting
``fiscal years 2006 through 2011''; and
(2) in subsection (b), by striking ``fiscal years 1998
through 2003'' and inserting ``fiscal years 2006 through
2011''.
(d) Short Title.--
(1) In general.--The Education of the Deaf Act of 1986 (20
U.S.C. 4301 note) is amended by striking the matter preceding
title I and inserting the following:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Gallaudet University and National
Technical Institute for the Deaf Act'.''.
(2) Other references.-- Any reference in a law, regulation,
document, or other record of the United States to the Education
of the Deaf Act of 1986 shall be deemed to be a reference to
the Gallaudet University and National Technical Institute for
the Deaf Act.
PART B--ADDITIONAL EDUCATION LAWS
SEC. 921. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SURVIVORS OF
VICTIMS OF THE SEPTEMBER 11, 2001, ATTACKS.
(a) Definitions.--For purposes of this section:
(1) Eligible public servant.--The term ``eligible public
sesrvant'' means an individual who, as determined in accordance
with regulations of the Secretary--
(A) served as a police officer, firefighter, other
safety or rescue personnel, or as a member of the Armed
Forces; and
(B) died (or dies) or became (or becomes) permanently
and totally disabled due to injuries suffered in the
terrorist attack on September 11, 2001.
(2) Eligible victim.--The term ``eligible victim'' means an
individual who, as determined in accordance with regulations of
the Secretary, died (or dies) or became (or becomes)
permanently and totally disabled due to injuries suffered in
the terrorist attack on September 11, 2001.
(3) Eligible parent.--The term ``eligible parent'' means the
parent of an eligible victim if--
(A) the parent owes a Federal student loan that is a
consolidation loan that was used to repay a PLUS loan
incurred on behalf of such eligible victim; or
(B) the parent owes a Federal student loan that is a
PLUS loan incurred on behalf of an eligible victim.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Education.
(5) Federal student loan.--The term ``Federal student loan''
means any loan made, insured, or guaranteed under part B, D, or
E of title IV of the Higher Education Act of 1965.
(b) Relief From Indebtedness.--
(1) In general.--The Secretary shall provide for the
discharge or cancellation of--
(A) the Federal student loan indebtedness of the
spouse of an eligible public servant, as determined in
accordance with regulations of the Secretary, including
any consolidation loan that was used jointly by the
eligible public servant and his or her spouse to repay
the Federal student loans of the spouse and the
eligible public servant;
(B) the portion incurred on behalf of the eligible
victim (other than an eligible public servant), of a
Federal student loan that is a consolidation loan that
was used jointly by the eligible victim and his or her
spouse, as determined in accordance with regulations of
the Secretary, to repay the Federal student loans of
the eligible victim and his or her spouse;
(C) the portion of the consolidation loan
indebtedness of an eligible parent that was incurred on
behalf of an eligible victim; and
(D) the PLUS loan indebtedness of an eligible parent
that was incurred on behalf of an eligible victim.
(2) Method of discharge or cancellation.--A loan required to
be discharged or canceled under paragraph (1) shall be
discharged or canceled by the method used under section 437(a),
455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965
(20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is
applicable to such loan.
(c) Facilitation of Claims.--The Secretary shall--
(1) establish procedures for the filing of applications for
discharge or cancellation under this section by regulations
that shall be prescribed and published within 90 days after the
date of enactment of this Act and without regard to the
requirements of section 553 of title 5, United States Code; and
(2) take such actions as may be necessary to publicize the
availability of discharge or cancellation of Federal student
loan indebtedness under this section.
(d) Availability of Funds for Payments.--Funds available for the
purposes of making payments to lenders in accordance with section
437(a) for the discharge of indebtedness of deceased or disabled
individuals shall be available for making payments under section 437(a)
to lenders of loans as required by this section.
(e) Applicable to Outstanding Debt.--The provisions of this section
shall be applied to discharge or cancel only Federal student loans
(including consolidation loans) on which amounts were owed on September
11, 2001. Nothing in this section shall be construed to authorize any
refunding of any repayment of a loan.
SEC. 922. AMENDMENT TO HIGHER EDUCATION AMENDMENTS OF 1998.
(a) Repeals of Expired and Executed Provisions.--The following
provisions of the Higher Education Amendments of 1998 are repealed:
(1) Study of market mechanisms in federal student loan
programs.--Section 801 (20 U.S.C. 1018 note).
(2) Study of feasibility of alternate financial instruments
for determining lender yields.--Section 802.
(3) Student related debt study.--Section 803 (20 U.S.C. 1015
note).
(4) Study of opportunities for participation in athletic
programs.--Section 805 (20 U.S.C. 1001 note).
(5) Community scholarship mobilization.--Part C of title VIII
(20 U.S.C. 1070 note).
(6) Incarcerated youth.--Part D of title VIII (20 U.S.C.
1151).
(7) Improving united states understanding of science,
engineering, and technology in east asia.--Part F of title VIII
(42 U.S.C. 1862 note).
(8) Web-based education commission.--Part J of title VIII.
(b) Extensions of Authorizations and Studies.--
(1) Transfer of credit.--Section 804(b) of such Act (20
U.S.C. 1099b note) is amended--
(A) by striking ``one year after the date of
enactment of this Act'' and inserting ``September 30,
2007''; and
(B) by inserting ``and policies of institutions of
higher education'' after ``agencies or associations''.
(2) Cohort default rate study.--Section 806 of such Act is
amended--
(A) in subsection (a), by striking ``higher education
at which less'' and inserting ``higher education. The
study shall also review the effect of cohort default
rates specifically on institutions of higher education
at which less''; and
(B) in subsection (c), by striking ``September 30,
1999,'' and inserting ``September 30, 2007,''.
(3) Violence against women.--Section 826 of such Act (20
U.S.C. 1152) is amended--
(A) in subsection (g), by striking ``for each of the
fiscal years 2001 through 2005'' and inserting ``fiscal
year 2006 and each of the 5 succeeding fiscal years'';
and
(B) by redesignating subsections (f) and (g) as
subsections (e) and (f), respectively.
(4) Underground railroad.--Subsection (c) of section 841 (20
U.S.C. 1153(c)) is amended to read as follows:
``(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $3,000,000 for fiscal year 2006
and such sums as may be necessary for each of the 5 succeeding fiscal
years.''.
(c) Disbursement of Student Loans.--Section 422(d) of the Higher
Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1696) is
amended by adding at the end the following new sentence: ``Such
amendments shall also be effective on and after July 1, 2006.''.
SEC. 923. TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF
1978.
(a) Title I Authorization.--Section 110(a) of the Tribally Controlled
Community College or University Assistance Act of 1978 (25 U.S.C.
1810(a)) is amended--
(1) by striking ``1999'' each place it appears and inserting
``2006''; and
(2) by striking ``4 succeeding'' each place it appears and
inserting ``5 succeeding''.
(b) Title III Reauthorization.--Section 306(a) of the Tribally
Controlled Community College or University Assistance Act of 1978 (25
U.S.C. 1836(a)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
(c) Title IV 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 ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
(d) Additional Amendments.--The Tribally Controlled Community College
or University Assistance Act of 1978 is further amended--
(1) in section 2(a)(6) (25 U.S.C. 1801(a)(6)), by striking
``in the field of Indian education'' and inserting ``in the
field of Tribal Colleges and Universities and Indian higher
education'';
(2) in section 2(b), by striking paragraph (5) and inserting
the following:
``(5) Eligible credits earned in a continuing education
program shall be determined as one credit for every 10 contact
hours for institutions on a quarter system, and 15 contact
hours for institutions 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 may not exceed 20 percent of an institution's
total Indian student count.''; and
(3) in section 103 (25 U.S.C. 1804), by striking ``and'' at
the end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``; and'', and by inserting after
paragraph (3) the following new paragraph:
``(4) has been accredited by a nationally recognized
accrediting agency or association determined by the Secretary
of Education 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.''.
SEC. 924. NAVAJO COMMUNITY COLLEGE ACT.
Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 640c-
1(a)(1)) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 925. EDUCATION AMENDMENTS OF 1992.
Section 1543(d) of the Education Amendments of 1992 (20 U.S.C. 1070
note) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``4 succeeding'' and inserting ``5
succeeding''.
SEC. 926. STUDY OF STUDENT LEARNING OUTCOMES AND PUBLIC ACCOUNTABILITY.
(a) Study Required.--The Secretary shall provide for the conduct a
study of the best practices of States in assessing undergraduate
postsecondary student learning, particularly as such practices relate
to public accountability systems.
(b) Characteristics of the Association.--Such study shall be
conducted by an association or organization with specific expertise and
knowledge in state practices and access to necessary state officials
(in this section referred to as the ``association''). The association
responsible for the study under this section shall be a national, non-
partisan or bi-partisan entity representing States or State officials
with expertise in evaluative and qualitative policy research for best
practice models, the capacity to convene experts, and to formulate
policy recommendations.
(c) Required Subjects of Study.--In performing the study, the
association shall, at a minimum, examine the following:
(1) The current status of institutional and state efforts to
embed student learning assessments into the state-level public
accountability frameworks.
(2) The extent to which there is commonality among educators
and accrediting agencies on learning standards for the
associates and bachelors degrees.
(3) The reliability, rigor, and generalizability of available
instruments to assess general education at the undergraduate
level.
(4) Roles and responsibilities for public accountability for
student learning.
(d) Consultation.--
(1) National committee.--The association shall establish and
consult with a national committee. The committee shall meet not
less than twice a year to review the research, identify best
practice models, and review recommendations.
(2) Membership.--The national advisory committee shall
consist of a representative of the Secretary of Education and
individuals with expertise in--
(A) State accountability systems;
(B) student learning assessments;
(C) student flow data;
(D) transitions between K-12 and higher education;
and
(E) Federal higher education policy.
(3) Additional expertise.--The association may augment this
committee with other expertise, as appropriate.
(e) Congressional Consultation.--The association shall consult on a
regular basis with the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health Education Labor
and Pensions of the Senate in carrying out the study required by this
section.
(f) Report.--The association shall, not later than two years after
the date of enactment of this Act, prepare and submit a report on the
study required by this section to the Committee on Education and the
Workforce of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate.
SEC. 927. STUDY OF MINORITY GRADUATION RATES.
(a) Study Required.--The Secretary of Education shall--
(1) commission a national study on the decreasing numbers of
underrepresented minority males, particularly African American
males, entering and graduating from colleges and universities;
and
(2) make specific recommendations to the Congress on new
approaches to increase minority male graduation rates and the
number of minority males going into careers where the
population is underrepresented.
(b) Submission of Report.--Not later than one year after the date of
the enactment this Act, the Secretary shall submit a report on the
study required by subsection (a)(1), together with the recommendations
required by subsection (a)(2), to the Committee on Health, Education,
Labor and Pensions of the Senate and the Committee on Education and the
Workforce of the House of Representatives.
SEC. 928. STUDY OF EDUCATION-RELATED INDEBTEDNESS OF MEDICAL SCHOOL
GRADUATES.
(a) Study Required.--The Secretary of Education shall conduct a study
to evaluate the higher education-related indebtedness of medical school
graduates in the United States at the time of graduation.
(b) Deadline.--Not later than one year after the date of enactment of
this Act, the Secretary shall submit a report on the study required by
subsection (a) to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Health, Education, Labor
and Pensions of the Senate, and shall make the report widely available
to the public. Additional reports may be periodically prepared and
released as necessary.
SEC. 929. STUDY OF ADULT LEARNERS.
The Secretary of Education shall conduct a study of the developing
trends in older adult learners attending college and how institutions
of higher education are addressing the needs of this specific
population in terms of outreach, accessibility, financing, and student
support services, including online education. The Secretary shall
submit a report on the study to the Committee on Education and the
Workforce of the House of Representatives that includes recommendations
on measures the Federal Government can take to address the needs in
regards to education and job training for the aging population and the
changing demographics of our country.
SEC. 930. INCREASE IN COLLEGE TEXTBOOK PRICES.
(a) Findings.--The Committee on Education and the Workforce of the
House of Representatives makes the following findings:
(1) The rising costs of higher education are making a
postsecondary education inaccessible for many individuals.
(2) The rise in college textbook pricing contributes to the
overall costs of higher education, and many factors have
contributed to the rise in textbook pricing.
(b) Sense of the Committee on Education and the Workforce.--It is the
sense of the Committee on Education and the Workforce of the House of
Representatives that in order to make a higher education more
accessible for all students, the following should occur to make college
textbooks more affordable for students:
(1) The Congress encourages textbook publishers to provide
students with the option of buying materials such as textbooks,
CD-ROMs, access to websites, and workbooks, ``a la carte'' or
``unbundled''.
(2) Textbook publishers should work with faculty to
understand the cost to students of purchasing the recommended
textbooks.
(3) College bookstores should work with faculty to review
timelines and processes for ordering and stocking selected
textbooks, and disclose textbook costs to faculty and students.
(4) Colleges and universities should be encouraged to
implement numerous options to address textbook affordability.
Purpose
H.R. 609, the College Access and Opportunity Act,
reauthorizes the Higher Education Act of 1965 by expanding
college access for low- and middle-income students. The bill
reauthorizes the teacher training programs, student aid
programs, programs that assist minority serving institutions,
graduate study programs, international and foreign language
programs, and various provisions that support and enhance
student access and institutional accountability. The bill
includes comprehensive reforms that prioritize student access
and strengthen accountability to empower students and parents,
the consumers of higher education.
Committee Action
On May 24, 2001, the Chairman of the Education and the
Workforce Committee and the Chairman of the Subcommittee on
21st Century Competitiveness, along with the Ranking Members,
invited interested parties to provide the Committee with
proposals, suggestions and ideas for improvements to the
expiring Higher Education Act. The initiative was called
``Upping the Effectiveness of Our Federal Student Aid Programs
(FED UP).'' As part of the Committee's successful ``FED UP''
project, an email address and web site were developed to allow
individuals, organizations, higher education institutions,
lenders and citizens to contact the Committee with ease and
efficiency. The Committee considered over 3,000 submissions
from individuals and more than 100 organizations on this
initiative, as part of the reauthorization process.
The Committee on Education and the Workforce and the
Subcommittees on 21st Century Competitiveness and Select
Education held a total of 35 hearings in Washington, D.C. and
across the country, as well as a series of site visits to many
institutions of higher education in preparation for and as part
of the reauthorization of the Higher Education Act.
107TH CONGRESS
Hearings--First session
On Monday, April 23, 2001, the Committee on Education and
the Workforce, Subcommittee on Select Education, held a field
hearing in Oklahoma City, Oklahoma, on ``Responding to the
Needs of Historically Black Colleges and Universities in the
21st Century.'' The purpose of the hearing was to examine the
unique role of Historically Black Colleges and Universities
(HBCUs) and their role in the higher education system.
Testifying before the Subcommittee were Dr. Ernest L. Holloway,
President, Langston University, Langston, Oklahoma; Dr. Henry
Ponder, Chief Executive Officer and President, National
Association for Equal Opportunity in Higher Education, Silver
Spring, Maryland; Dr. Trudie Kibbe Reed, President, Philander
Smith College, Little Rock, Arkansas; Dr. Lawrence A. Davis,
Jr., Chancellor, University of Arkansas at Pine Bluff, Pine
Bluff, Arkansas; and Dr. Joseph Simmons, Executive Vice
President, Lincoln University, Jefferson City, Missouri.
On Wednesday, June 20, 2001, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``H.R. 1992, the
Internet Equity and Education Act of 2001.'' The purpose of the
hearing was to hear testimony on the provisions in H.R. 1992
introduced by Representative Johnny Isakson (R-GA) on May 24,
2001. Testifying before the Subcommittee were Dr. Stanley
Ikenberry, President, American Council on Education,
Washington, D.C.; Dr. Richard Gowan, President, South Dakota
School of Mines and Technology, Rapid City, South Dakota; Dr.
Joseph DiGregorio, Vice Provost for Distance Learning,
Continuing Education and Outreach, Georgia Institute of
Technology, Atlanta, Georgia; Ms. Lorraine Lewis, Inspector
General, U.S. Department of Education, Washington, D.C.; and
Mr. Omer Waddles, Executive Vice President, ITT Educational
Services, Inc., Indianapolis, Indiana.
On Monday, July 16, 2001, the Committee on Education and
the Workforce, Subcommittee on Select Education, held a field
hearing in Wilberforce, Ohio, on ``Responding to the Needs of
Historically Black Colleges and Universities in the 21st
Century.'' The purpose of the hearing was to examine the unique
role of Historically Black Colleges and Universities (HBCUs)
and their role in the higher education system. Testifying
before the Subcommittee were Dr. John L. Henderson, President,
Wilberforce University, Wilberforce, Ohio; Dr. John W. Garland,
President, Central State University, Wilberforce, Ohio; Dr. W.
Clinton Pettus, President, Cheyney University of Pennsylvania,
Cheyney, Pennsylvania; and Dr. Marjorie Harris, President,
Lewis College of Business, Detroit, Michigan.
On Wednesday, October 31, 2001, the Committee on Education
and the Workforce, Subcommittees on 21st Century
Competitiveness and Select Education, jointly held a hearing in
Washington, D.C., on ``Tracking International Students in
Higher Education--Policy Options and Implications for
Students.'' The purpose of the hearing was to examine the
issues related to international students and their attendance
at U.S. institutions of higher education. Testifying before the
Subcommittees on the first panel were Ms. Mary Ryan, Assistant
Secretary of State for Consular Affairs, U.S. Department of
State, Washington, D.C.; and Mr. Michael Becraft, Acting Deputy
Commissioner, Immigration and Naturalization Service,
Washington, D.C. Testifying before the Subcommittees on the
second panel were Dr. David Ward, President, American Council
on Education, Washington, D.C.; Dr. Gail Short Hanson, Vice
President of Student Services, American University, Washington
D.C.; and Ms. Julia Beatty, President, United States Student
Association, Washington, D.C.
Second session
On Wednesday, February 13, 2002, the Committee on Education
and the Workforce, Subcommittees on 21st Century
Competitiveness and Select Education, jointly held a hearing in
Washington, D.C., on ``Responding to the Needs of Historically
Black Colleges and Universities in the 21st Century.'' The
purpose of the hearing was to examine the unique role played by
Historically Black Colleges and Universities (HBCUs) and to
examine the unique issues these institutions face. Testifying
before the Subcommittees were Dr. William B. DeLauder,
President, Delaware State University, Dover, Delaware; Dr.
Frederick S. Humphries, Chief Executive Officer and President,
National Association for Equal Opportunity in Higher Education,
Silver Spring, Maryland; Dr. Shirley A.R. Lewis, President,
Paine College, Augusta, Georgia; and Mr. Christopher Elders,
student and Rhodes Scholar, Morehouse College, Atlanta,
Georgia.
On Tuesday, July 16, 2002, the Committee on Education and
the Workforce held a hearing in Washington, D.C., on ``Access
to Higher Education for Low-Income Students: A Review of the
Advisory Committee on Student Financial Assistance Report.''
The purpose of the hearing was to consider the issue of access
to postsecondary education, specifically for low-income
students, by examining two reports released by the Advisory
Committee on Student Financial Assistance, entitled Empty
Promises--The Myth of College Access in America (July 2002) and
Access Denied (February 2001). Testifying before the Committee
were Dr. Juliet Garcia, Chairperson, Advisory Committee on
Student Financial Assistance, Washington, D.C.; Mr. Lawrence E.
Gladieux, Education and Public Policy Consultant, Potomac
Falls, Virginia; Dr. Shirley A.R. Lewis, President, Paine
College, Augusta, Georgia; and Ms. Elizabeth Sengkhammee,
student, University of Wisconsin-Milwaukee, Milwaukee,
Wisconsin.
On Thursday, September 19, 2002, the Committee on Education
and the Workforce, Subcommittees on 21st Century
Competitiveness and Select Education held a joint hearing in
Washington, D.C., on ``Responding to the Needs of Historically
Black Colleges and Universities in the 21st Century.'' The
purpose of the hearing was to continue efforts to learn about
the unique role that Historically Black Colleges and
Universities (HBCUs) play in providing postsecondary education
to students. Testifying before the Subcommittees were Dr.
Michael L. Lomax, President, Dillard University, New Orleans,
Louisiana; Dr. Marie McDemmond, President, Norfolk State
University, Norfolk, Virginia; Dr. Willis B. McLeod,
Chancellor, Fayetteville State University, Fayetteville, North
Carolina; Dr. Elson S. Floyd, President, Western Michigan State
University, Kalamazoo, Michigan; and Mr. Steve Stephens, II,
President, Student Governing Association, Langston University,
Langston, Oklahoma.
On Tuesday, September 24, 2002, the Committee on Education
and the Workforce, Subcommittees on 21st Century
Competitiveness and Select Education held a joint hearing in
Washington, D.C., on ``Homeland Security: Tracking
International Students in Higher Education--Progress & Issues
Since 9-11.'' The purpose of the hearing was to learn about the
implementation of the Student Exchange and Visitor Information
System (SEVIS); the issues still outstanding in having SEVIS
fully operational; and the interaction between institutions of
higher education, the Immigration and Naturalization Service
(INS) and the U.S. Department of State. Testifying before the
Subcommittees were Mr. Glenn A. Fine, Inspector General, U.S.
Department of Justice, Washington, D.C.; Ms. Janis Sposato,
Assistant Deputy Executive, Associate Commissioner for
Immigration Services Division, Immigration and Naturalization
Service, Washington, D.C.; Mr. Stephen A. Edson, Acting
Managing Director, Directorate of Visa Services, Bureau of
Consular Affairs, U.S. Department of State, Washington, D.C.;
and Dr. David Ward, President, American Council on Education,
Washington, D.C.
On Tuesday, October 1, 2002, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness
held a hearing in Washington, D.C., on ``Assuring Quality and
Accountability in Postsecondary Education: Assessing the Role
of Accreditation.'' The purpose of the hearing was to learn
more about the accreditation process, how regional and national
accreditors interact, and the specific roles and
responsibilities of accrediting agencies. Testifying before the
Subcommittee were Dr. Judith S. Eaton, President, Council for
Higher Education Accreditation, Washington, D.C.; Dr. Charles
M. Cook, Director, Commission of Institutions of Higher
Education, New England Association of Schools and Colleges,
Bedford, Massachusetts; Dr. Laura Palmer Noone, President,
University of Phoenix, Phoenix, Arizona; the Honorable Hank
Brown, President and Chief Executive Officer, Daniels Fund,
Greeley, Colorado; and Dr. Linwood Rose, President, James
Madison University, Harrisonburg, Virginia.
On Thursday, October 3, 2002, the Committee on Education
and the Workforce held a hearing in Washington, D.C., on ``The
Rising Price of a Quality Postsecondary Education: Fact or
Fiction?'' The purpose of this hearing was to examine the
effects that increasing costs of a postsecondary education have
on students and families. Testifying before the Committee were
Dr. Robert A. Corrigan, President, San Francisco State
University, San Francisco, California; Dr. Richard M. Freeland,
President, Northeastern University, Boston, Massachusetts; Dr.
C.D. Mote, Jr., Professor of Engineering (testifying on behalf
of Dr. William Kirwan, President, University of Maryland),
Glenn L. Martin Institute, College Park, Maryland; and Dr.
Gordon Winston, Economics Professor, Williams College,
Williamstown, Massachusetts.
On Wednesday, October 9, 2002, the Committee on Education
and the Workforce, Subcommittee on 21st Century Competitiveness
held a hearing in Washington, D.C., on ``Training Tomorrow's
Teachers: Ensuring a Quality Postsecondary Education.'' The
purpose of the hearing was to examine the effectiveness of the
competitive grant programs authorized under title II of the
Higher Education Act and also to examine the accountability
provisions for teacher preparation programs under the Act.
Testifying before the Subcommittee were Ms. Cornelia M. Ashby,
Director of Education, Workforce and Income Security Issues,
U.S. Government Accountability Office, Washington, D.C.; Mr.
Wendell Cave, Division of Testing, Research and Internship,
Education Professional Standards Board, Frankfort, Kentucky;
Mr. Steven Brandick, Director of the Career Ladder Office, Los
Angeles Unified School District, Los Angeles, California; Mr.
Kurt Landgraf, President & Chief Executive Officer, Educational
Testing Service, Princeton, New Jersey; and Dr. Allen Mori,
Dean of the Charter College of Education, California State
University, Los Angeles, California.
Legislative action--First session
On May 24, 2001, Representatives Johnny Isakson (R-GA),
John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), Mike
Castle (R-DE), and Bob Goodlatte (R-VA) introduced H.R. 1992,
the Internet Equity and Education Act of 2001, to amend the
Higher Education Act and repeal the 50 percent rule for
telecommunications and make additional reforms regarding
distance education.
On June 28, 2001, the Subcommittee on 21st Century
Competitiveness considered H.R. 1992 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by voice vote. The Subcommittee
considered and adopted by voice vote the following amendments
to H.R. 1992:
Representative Isakson (R-GA) offered a
substitute amendment that made technical and clarifying
changes to the legislation. Specifically, the amendment
clarified provisions dealing with incentive
compensation and third-party service providers.
Representative Wu (D-OR) offered an
amendment to require a study and a report on the effect
of the provisions enacted by H.R. 1992.
On August 1, 2001, the Committee on Education and the
Workforce considered H.R. 1992 in legislative session and
reported it favorably, as amended, to the House of
Representatives by a vote of 31-10. The Committee considered
and adopted by voice vote the following amendments to H.R.
1992:
Representative Isakson (R-GA) offered a
substitute amendment that made technical and clarifying
changes to the legislation. Specifically, the amendment
made modifications to the 50 percent rule for
telecommunications. Additionally, the amendment
modified the 12-hour rule to require non-traditional
programs that provide less than 12 scheduled hours of
instruction to notify the Secretary of Education.
Representative Miller (D-CA) offered an
amendment to authorize the Learning Anytime Anywhere
Partnership Grants at $30 million, an increase from the
current law authorization of $10 million.
Legislative action--Second session
On July 11, 2002, Representatives Lindsey Graham (R-SC),
John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), Todd
Platts (R-PA), James Greenwood (R-PA), Johnny Isakson (R-GA),
Charlie Norwood (R-GA), John Cooksey (R-LA), Sam Graves (R-MO),
Van Hilleary (R-TN), Todd Tiahrt (R-KS), Richard Burr (R-NC),
Ileana Ros-Lehtinen (R-FL) introduced H.R. 5091, the Canceling
Loans to Allow School Systems to Attract Classroom Teachers Act
(CLASS ACT), which amended the Higher Education Act to provide
discretionary loan forgiveness of up to $17,500 for math,
science and special education teachers.
On Thursday, September 5, 2002, the Committee on Education
and the Workforce considered H.R. 5091 in legislative session
and reported favorably, as amended to the House of
Representatives by voice vote. The Committee considered and
adopted by voice vote the following amendments to H.R. 5091:
Representative Graham (R-SC) offered a
substitute amendment to make technical and clarifying
changes to the legislation.
Representative Kind (D-WI) offered an
amendment to have the Secretary of Education notify
local educational agencies eligible to participate in
the Small Rural Achievement Program of the benefits
provided by the teacher loan forgiveness program within
H.R. 5091, and to encourage those agencies to notify
their teachers of the program.
Representative Holt (D-NJ) offered an
amendment to set a priority for teacher loan
forgiveness for those teachers teaching math or
science, or special education teachers.
Representative Miller (D-CA) offered an
amendment to set a priority for teacher loan
forgiveness for those teachers employed in local
educational agencies that are determined by the State
educational agency to have failed to make progress
toward annual increases in the employment of highly
qualified teachers as required by the Elementary and
Secondary Act of 1965, for two consecutive years.
Representative McCarthy (D-NY) offered an
amendment to provide loan forgiveness for spouses of
victims who died or became permanently and totally
disabled as a result of the terrorist attacks on
September 11, 2001. The amendment also provided for
forgiveness of the consolidation loan debt of surviving
spouses who consolidated their loans together with the
victim, as well as parent loans if the child on whose
behalf the loan was taken died or become totally and
permanently disabled as a result of the September 11th
attacks.
108TH CONGRESS
Hearings--First session
On Tuesday, May 13, 2003, the Committee on Education and
the Workforce held a hearing in Washington, D.C., on ``The
State of American Higher Education: What Are Parents, Students
and Taxpayers Getting for Their Money?'' The purpose of the
hearing was to learn what institutions of higher education can
and should be doing to assure the American public that the
investment in higher education by a student, parent or taxpayer
is one that will produce results and assist with lifelong
career pursuits. Testifying before the Committee were Mr.
Charles Miller, Chairman, University of Texas System, Board of
Regents, Houston, Texas; Dr. Frank Newman, Director, The
Futures Project, Brown University, Providence, Rhode Island;
and Dr. Mary Ellen Duncan, President, Howard Community College,
Columbia, Maryland.
On Tuesday, May 20, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``America's Teacher
Colleges: Are They Making the Grade?'' The purpose of the
hearing was to discuss whether teacher colleges and other
teacher preparation programs are producing a competent cadre of
teachers. Testifying before the Subcommittee were Mrs. Lisa
Graham Keegan, Chief Executive Officer, Education Leaders
Council, Washington, D.C.; Ms. Kati Haycock, Director, The
Education Trust, Washington, D.C.; Dr. Arthur E. Wise,
President, National Council for Accreditation of Teacher
Education, Washington, D.C.; Dr. Louanne Kennedy, Provost &
Vice President for Academic Affairs, California State
University--Northridge, Northridge, California; Dr. Jerry
Robbins, Dean, College of Education, Eastern Michigan
University, Ypsilanti, Michigan; and Dr. Joyce R. Coppin, Chief
Executive, Division of Human Resources, New York City
Department of Education, Brooklyn, New York.
On Thursday, June 19, 2003, the Committee on Education and
the Workforce, Subcommittee on Select Education, held a hearing
in Washington, D.C., on ``International Programs in Higher
Education and Questions about Bias.'' The purpose of the
hearing was to learn how programs authorized under title VI of
the Higher Education Act can provide innovative ways to help
bridge the international knowledge gap and also to learn about
the merits of, and concern for, Federal support given to some
of the international education programs that have been
questioned in regard to their teachings. Testifying before the
Subcommittee were Dr. Foster Roden, Professor, University of
North Texas, College of Business, Denton, Texas; Dr. Stanley
Kurtz, Research Fellow, Hoover Institution, Contributing
Editor, National Review Online, Washington, D.C.; Dr. Terry
Hartle, Senior Vice President, American Council on Education,
Washington, D.C.; Ms. Vivian Stewart, Vice President for
Education, Asia Society, New York, New York; and Dr. Gilbert W.
Merkx, Vice Provost for International Affairs, Duke University,
Durham, North Carolina.
On Thursday, July 10, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``Affordability in
Higher Education: We Know There's a Problem; What's the
Solution?'' The purpose of the hearing was to examine the
effects of ever-rising college tuition and debate some of the
possible solutions to this problem. Testifying before the
Subcommittee were Dr. Sandy Baum, Professor, Skidmore College,
Saratoga Springs, New York; Mr. Scott Ross, Executive Director,
Florida Student Association, Tallahassee, Florida; Dr. Carol
Twigg, Executive Director, Center for Academic Transformation,
Troy, New York; Dr. Rolf Wegenke, President, Wisconsin
Association of Independent Colleges and Universities, Madison,
Wisconsin; and Dr. Patrick Kirby, Vice President and Dean of
Enrollment Services, Westminster College, Fulton, Missouri.
On Tuesday, July 15, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``Expanding Access to
College in America: How the Higher Education Act Can Put
College Within Reach.'' The purpose of this hearing was to
examine the college access programs that currently exist at a
national, state and local level; to hear recommendations for
improvements in these programs; and to learn what provisions in
the law may currently prohibit some postsecondary institutions
from accessing resources that would enable them to work more
closely with various student populations. Testifying before the
Subcommittee were Dr. Richard Fonte, President, Austin
Community College, Austin, Texas; Ms. Teri Flack, Deputy
Commissioner, Texas Higher Education Coordinating Board,
Austin, Texas; Mr. Mark Dreyfus, President, ECPI College of
Technology, Virginia Beach, Virginia; Ms. Christina Milano,
Executive Director, National College Access Network, Cleveland,
Ohio; and Dr. Arnold Mitchem, President, Council for
Opportunity in Education, Washington, D.C.
On Tuesday, July 22, 2003, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``Consolidation Loans:
What's Best for Past Borrowers, Future Students & U.S.
Taxpayers?'' The purpose of the hearing was to learn how the
consolidation loan program fits into the mission of the Higher
Education Act by increasing access and affordability to
students pursuing postsecondary education, and to learn more
about whether the program is fair for all borrowers. The first
panel testifying before the Subcommittee included The Honorable
Ralph Regula (R-OH), U.S. House of Representatives, Chairman,
Subcommittee on Labor, Health and Human Services, and
Education, Committee on Appropriations, Washington, D.C., and
The Honorable Rosa DeLauro (D-CT), U.S. House of
Representatives, Member, Subcommittee on Labor, Health and
Human Services, and Education, Committee on Appropriations,
Washington, D.C. The second panel testifying before the
Subcommittee included Ms. Rebecca Wasserman, Vice President,
United States Student Association, Washington, D.C.; Ms. June
McCormack, Executive Vice President, Sallie Mae, Fishers,
Indiana; Mr. Paul Wozniak, Managing Director and Manager,
Education Loan Group, UBS Financial Services, Inc., New York,
New York; Dr. Dallas Martin, President, National Association of
Student Financial Aid Administrators, Washington, D.C.; and Mr.
Barry Morrow, Chief Executive Officer, Collegiate Funding
Services, Fredericksburg, Virginia.
On Tuesday, September 9, 2003, the Committee on Education
and the Workforce, Subcommittee on Select Education, held a
hearing in Washington, D.C., on ``Beyond Baccalaureate:
Graduate Programs in the Higher Education Act.'' The purpose of
the hearing was to learn about the various graduate programs
authorized under title VII of the Higher Education Act and to
hear suggestions for the reauthorization of these programs.
Testifying before the Subcommittee were Dr. Earl Lewis, Dean of
the Graduate School, Rackham School of Graduate Studies,
University of Michigan, Ann Arbor, Michigan; Mr. Daniel Hall,
Vice President of University Relations, University of
Louisville, Louisville, Kentucky; Dr. William B. Allen,
Department of Political Science, Michigan State University,
East Lansing, Michigan; and Dr. Blandina ``Bambi'' Cardenas,
Associate Professor and Dean of Education, University of
Texas--San Antonio, San Antonio, Texas.
On Thursday, September 11, 2003, the Committee on Education
and the Workforce, Subcommittee on 21st Century
Competitiveness, held a hearing in Washington, D.C., on ``H.R.
3039, the Expanding Opportunities in Higher Education Act of
2003.'' The purpose of the hearing was to hear testimony
regarding the provisions in H.R. 3039, introduced by
Representative Tom Cole (R-OK) on September 9, 2003. Testifying
before the Subcommittee were Dr. Donald E. Heller, Associate
Professor, Center for the Study of Higher Education Policy, The
Pennsylvania State University, University Park, Pennsylvania;
Dr. Antonio Flores, President and Chief Executive Officer,
Hispanic Association of Colleges and Universities, San Antonio,
Texas; Mr. George Chin, University Director for Financial Aid,
City University of New York, New York, New York; and Mr. David
G. Moore, Chairman and Chief Executive Officer, Corinthian
Colleges, Inc., Santa Ana, California.
On Tuesday, September 23, 2003, the Committee on Education
and the Workforce, Subcommittee on 21st Century
Competitiveness, held a hearing in Washington, D.C., on ``The
College Cost Crisis Report: Are Institutions Accountable Enough
to Students and Parents?'' The purpose of the hearing was to
examine the findings in the report, to discuss the broad issue
of affordability in higher education, and to hear possible
solutions on how best to address the problem of increasing
college costs. Testifying before the Subcommittee were Dr.
Valerie F. Lewis, President, State Higher Education Executive
Officers, Denver, Colorado; Dr. F. King Alexander, President,
Murray State University, Murray, Kentucky; Mr. Jamie P.
Merisotis, President, Institute for Higher Education Policy,
Washington, D.C.; and Ms. Jessica Hanson, Student, Florida
State University, Tallahassee, Florida.
On Monday, October 6, 2003, the Committee on Education and
the Workforce, Subcommittee on Select Education, held a field
hearing in Edinburg, Texas, on ``Expanding Opportunities in
Higher Education: Honoring the Contributions of America's
Hispanic Serving Institutions.'' The purpose of the field
hearing was to learn about expanding educational opportunities
for students at Hispanic Serving Institutions (HSIs). The first
panel to testify before the Subcommittee included Dr. Miguel
Nevarez, President, University of Texas--Pan-American,
Edinburg, Texas; Dr. Rumaldo Juarez, President, University of
Texas A&M--Kingsville, Kingsville, Texas; Dr. John Brockman,
President, Coastal Bend Community College, Beeville, Texas. The
second panel to testify before the Subcommittee included Dr.
Juliet Garcia, President, University of Texas--Brownsville,
Brownsville, Texas; Dr. Shirley Reed, President, South Texas
Community College, McAllen, Texas; and Ms. Ariana De La Garza,
Student Representative, University of Texas--Pan-American,
Mission, Texas.
Second session
On Wednesday, March 17, 2004, the Committee on Education
and the Workforce held a hearing in Washington, D.C., on
``Fiscal Responsibility and Federal Consolidation Loans:
Examining Cost Implications for Taxpayers, Students, and
Borrowers.'' The purpose of the hearing was to examine the
consolidation loan program and how student lending issues fit
within the broader goal of expanding access to low- and middle-
income students pursing a postsecondary education. Testifying
before the Committee were Ms. Cornelia M. Ashby, U.S.
Government Accountability Office, Director, Education,
Workforce and Income Security, Washington, D.C.; Mr. Titus M.
Hamlett, Student, University of Maryland, Baltimore, Maryland;
Dr. Tom S. Neubig, National Director, Quantitative Economics
and Statistics, Ernst and Young LLP, Washington, D.C.; and Dr.
Robert Shapiro, Chairman, Sonecon, LLP, and Senior Fellow,
Brookings Institution and Progressive Policy Institute,
Washington, D.C.
On Wednesday, May 12, 2004, the Committee on Education and
the Workforce held a hearing in Washington, D.C., on ``H.R.
4283, the College Access and Opportunity Act of 2004.'' The
purpose of this hearing was to examine the provisions in H.R.
4283 and to provide an opportunity for Members of Congress to
hear about provisions in the bill. Testifying before the
Committee were Mr. Jim Boyle, President, College Parents of
America, Washington, D.C.; Dr. Dallas Martin, President,
National Association of Federal Student Aid Administrators,
Washington, D.C.; Ms. Rebecca Wasserman, President, United
States Student Association, Washington, D.C.; Dr. Charles Reed,
Chancellor, California State University System, Long Beach,
California; and Mr. Michael Grayer, Recent Graduate, Virginia
College, Jackson, Mississippi.
On Wednesday, June 16, 2004, the Committee on Education and
the Workforce held a hearing in Washington, D.C., on ``H.R.
4283, the College Access & Opportunity Act: Are Students at
Proprietary Institutions Treated Equitably Under Current Law?''
The purpose of this hearing was to examine issues facing
students attending eligible proprietary institutions of higher
education. Testifying before the Committee was Dr. Dwight
Smith, President and Chief Executive Officer, Sophisticated
Systems, Inc., Columbus, Ohio; Mr. Andrew Rosen, President and
Chief Operations Officer, Kaplan Inc., President, Kaplan
College, Boca Raton, Florida; Dr. Alice Letteney, Director,
University of New Mexico--Valencia, Los Lunas, New Mexico; Mr.
Barmak Nassirian, Associate Director, American Association of
Collegiate Registrars and Admissions Officers, Washington,
D.C.; and Mr. David Moore, Chairman and Chief Executive
Officer, Corinthian Colleges Inc., Santa Ana, California.
On Tuesday, June 22, 2004, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., on ``H.R. 4283, the College
Access & Opportunity Act: Does Accreditation Provide Students
and Parents Accountability and Quality?'' The purpose of this
hearing was to examine issues related to accountability in
higher education and those sections within the bill that deal
with the accreditation process for institutions, and also the
recognition of accreditors by the U.S. Department of Education.
Testifying before the Subcommittee were Dr. Thomas Dary Erwin,
Associate Vice President of Academic Affairs for Assessment and
Program Evaluation, James Madison University, Harrisonburg,
Virginia; Dr. James Davis, President, Shenandoah University,
Winchester, Virginia; Dr. Stephen Crow, Executive Director,
Higher Learning Commission, North Central Association of
Colleges and Schools, Chicago, Illinois; Dr. Jerry Martin,
Chairman, American Council of Trustees and Alumni, Washington,
D.C.; and Dr. Arthur Keiser, Immediate Past Chairman,
Accrediting Commission of Career Schools and Colleges of
Technology, Ft. Lauderdale, Florida.
On Tuesday, July 13, 2004, the Committee on Education and
the Workforce held a hearing in Washington, D.C., on ``H.R.
4283, the College Access and Opportunity Act: Increasing the
Focus on Graduation Rates and Student Outcomes.'' The purpose
of this hearing was to examine issues regarding college
graduation rates and the findings of a report issued by The
Education Trust entitled, ``A Matter of Degrees: Improving
Graduation Rates in Four-Year Colleges and Universities.''
Testifying before the Committee were Dr. Richard Nault, Vice
President for Student Affairs, Miami University, Oxford, Ohio;
Dr. Paul Lingenfelter, Executive Director, State Higher
Education Executive Officers, Denver, Colorado; Mr. Ross
Wiener, Policy Director, The Education Trust, Washington, D.C.;
and Dr. William Law, President, Tallahassee Community College,
Tallahassee, Florida.
On Tuesday, July 20, 2004, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington, D.C., entitled, ``Are College
Textbooks Priced Fairly?'' The purpose of this hearing was to
examine the issue of the high cost of textbooks on college
campuses and the effect on a student's overall cost of higher
education. Testifying before the Subcommittee were Ms. Merriah
Fairchild, Higher Education Director, California Student Public
Interest Research Group, Sacramento, California; Mr. Marc L.
Fleischaker, Legal Counsel, National Association of College
Stores, Arent Fox LLC, Washington, D.C.; Mr. John Isley,
Executive Vice President, Publishing, Planning and Business,
Pearson Higher Education and Professional Publishing, Boston,
Massachusetts; Mr. Virgil Monroe, Manager, Textbook Services,
University of Wisconsin--River Falls, River Falls, Wisconsin.
On Thursday, September 23, 2004, the Committee on Education
and the Workforce, Subcommittee on 21st Century
Competitiveness, held a hearing in Washington, D.C., entitled,
``Are Current Safeguards Protecting Taxpayers against Diploma
Mills?'' The purpose of this hearing was to examine issues
related to diploma mills and their impact on the credibility of
the higher education system and to also hear from witnesses
about the challenge and complexity involved in defining a
diploma mill. Testifying before the Subcommittee were Mr. Allen
Ezell, Retired Agent, Federal Bureau of Investigations, Apollo
Beach, Florida; Ms. Jean Avnet Morse, Executive Director,
Middle States Commission on Higher Education, Philadelphia,
Pennsylvania; and Mr. Robert Cramer, Managing Director, Office
of Special Investigations, Government Accountability Office,
Washington, D.C.
Legislative action--First session
On January 29, 2003, Representatives Joe Wilson (R-SC),
John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), Johnny
Isakson (R-GA), Todd Platts (R-PA), James Greenwood (R-PA),
Patrick Tiberi (R-OH), Tom Cole (R-OK), Mark Souder (R-IN),
Richard Baker (R-LA), Sam Graves (R-MO) and Heather Wilson (R-
NM) introduced H.R. 438, the Teacher Recruitment and Retention
Act of 2003, which amended the Higher Education Act to provide
up to $17,500 in loan forgiveness for math, science and special
education teachers.
On May 22, 2003, Representatives Phil Gingrey (R-GA), John
Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), and Joe
Wilson (R-SC) introduced H.R. 2211, the Ready to Teach Act of
2003, to reauthorize teacher preparation provisions under title
II of the Higher Education Act through fiscal year 2008.
On June 4, 2003, the Subcommittee on 21st Century
Competitiveness considered H.R. 438 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by voice vote. The Subcommittee
considered and adopted by voice vote the following amendment to
H.R. 438:
Representative McKeon (R-CA) offered a
substitute amendment to make technical and clarifying
changes to the legislation. Specifically, the amendment
requires all teachers seeking increased loan
forgiveness to be highly qualified under the No Child
Left Behind Act.
On June 4, 2003, the Subcommittee on 21st Century
Competitiveness considered H.R. 2211 in legislative session and
reported it favorably, as amended, to the Committee on
Education and the Workforce by voice vote. The Subcommittee
considered and adopted by voice vote the following amendments
to H.R. 2211:
Representative Gingrey (R-GA) offered a
substitute amendment that made technical and clarifying
changes to the legislation. In addition, the substitute
amended authorized activities to: include faith-based
and community organizations; benefit high poverty and
rural local educational agencies; increase teacher
retention; allow funds to be used to develop strategies
to improve qualifications of pre-kindergarten teachers;
ensure that teachers in private elementary and
secondary schools are able to participate equitably in
partnerships; provide training in how to teach limited
English proficient students; and ensure that
partnership activities focus on the needs of teachers
in the classroom.
Representative McKeon (R-CA) offered an
amendment that made technical and clarifying changes to
the legislation. In addition, it ensured that urban and
rural school teachers are included in State grant
retention strategies and clarified that State and
institutional reporting requirements are intended for
students that take assessments used by the State for
teacher certification or licensure.
Representatives Burns (R-GA), Owens (D-NY),
and Hinojosa (D-TX) offered an amendment to authorize
grants for the creation of Centers of Excellence at
high quality (as determined by the State) minority
serving institutions. In general, the purposes of this
amendment are to: (1) increase teacher recruitment at
minority serving institutions; and (2) make
institutional improvements to teacher preparation
programs at minority serving institutions. Under the
amendment, grants are competitively awarded to high
quality teacher preparation programs at eligible
institutions which include: Historically Black Colleges
or Universities, Hispanic-Serving Institutions,
Tribally Controlled Colleges or Universities, Alaska
Native-Serving Institutions, or Native Hawaiian-Serving
Institutions.
Representative Kind (D-WI) offered an
amendment to reinstate a current law provision that
allows partnership grant funds to be used for
managerial and leadership activities that include
superintendents.
Representative Hinojosa (D-TX) offered an
amendment to add teachers of limited English proficient
students to the allowable list of educators that could
benefit from merit pay initiatives.
Representative Tierney (D-MA) offered an
amendment to allow current teachers to participate in
authorized clinical experience partnership grant
activities.
Representative Holt (D-NJ) offered an
amendment to allow teachers to use partnership grant
funds to gain clinical experience in science, math, and
technology (as long as such teachers commit to an
additional two years in the classroom).
Representative Wu (D-OR) offered an amendment
to allow teacher recruitment grants to be used to
recruit employees from high demand industries,
including technology industries, into the teaching
profession.
On June 10, 2003, the Committee on Education and the
Workforce considered H.R. 2211 in legislative session and
reported it favorably, as amended, to the House of
Representatives by voice vote. The Committee considered and
adopted by voice vote the following amendments to H.R. 2211:
Representative Gingrey (R-GA) offered a
substitute amendment that made technical and clarifying
changes to the legislation. In addition, the substitute
amendment: adds a definition of ``teaching skills'' to
the Act that is based on scientifically based research;
requires evaluation of State grant activities that are
based on teacher effectiveness (as measured by
increased student academic achievement) and teacher
mastery of academic subjects they teach; clarifies
language to ensure that at least 50 percent of
partnership funds are used to directly benefit partner
local educational agencies; allows partnership grants
to be used to coordinate activities with community
colleges to implement teacher preparation programs;
increases the minimum service requirements for students
that receive scholarships under the teacher recruitment
grant program; requires the Governor of a State to
attest to the reliability of State data reported to the
Secretary of Education; and maintains the original
authorization level of $300 million for Part A
activities and authorizes $10 million for teacher
preparation Centers of Excellence authorized under Part
C.
Representative Van Hollen (D-MD) and
Representative Woolsey (D-CA) offered an amendment to
allow States to use funds to develop strategies to
improve the qualifications of preschool teachers, which
may include the State certification for such teachers.
Representative Holt (D-NJ) offered an
amendment to allow teacher recruitment grants to be
used to recruit employees from high demand industries,
including science, mathematics, and engineering, into
the teaching profession.
On September 11, 2003, Representatives Pete Hoekstra (R-
MI), John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA),
James Greenwood (R-PA), Joe Wilson (R-SC), and Tom Cole (R-OK)
introduced H.R. 3077, the International Studies in Higher
Education Act of 2003, to reauthorize international education
programs under title VI of the Higher Education Act through
fiscal year 2009.
On September 11, 2003, Representatives Pete Hoekstra (R-
MI), John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA),
Johnny Isakson (R-GA), Patrick Tiberi (R-OH), Joe Wilson (R-
SC), and Tom Cole (R-OK) introduced H.R. 3076, the Graduate
Opportunities in Higher Education Act of 2003, to reauthorize
graduate education programs under title VII of the Higher
Education Act through fiscal year 2009.
On September 17, 2003, the Subcommittee on Select Education
considered H.R. 3077 in legislative session and reported it
favorably, as amended, to the Committee on Education and the
Workforce by voice vote. The Subcommittee considered and
adopted by voice vote the following amendment to H.R. 3077:
Representative Hoekstra (R-MI) offered a
substitute amendment that made technical and clarifying
changes to the legislation. Specifically, the amendment
changed the process for naming the members of the
International Advisory Board from the Secretary of
Education to the House of Representatives, Senate and
Secretary of Education, including the addition of two
representatives from national security agencies. The
amendment further required that the activities and
functions of the International Advisory Board were to
be paid by no more than 50 percent or less of the funds
appropriated to the Secretary for evaluation, outreach
and dissemination. The amendment clarified that
minority serving institutions should be considered as
partners in the International Business Education
Centers program. Lastly, the amendment clarified the
language allowing agency and military recruiters access
to campuses.
On September 17, 2003, the Subcommittee on Select Education
considered H.R. 3076 in legislative session and reported it
favorably as amended to the Committee on Education and the
Workforce by voice vote. The Subcommittee considered and
adopted by voice vote the following amendment to H.R. 3076:
Representative Hoekstra (R-MI) offered a
substitute amendment that made technical and clarifying
changes to the legislation, including the reinstatement
of language that ensures qualified students receive
Javits fellowship awards, regardless of Department of
Education error.
On September 25, 2003, the Committee on Education and the
Workforce considered H.R. 3077 in legislative session and
reported it favorably, as amended, to the House of
Representatives by voice vote. The Committee considered and
adopted the following amendments to H.R. 3077:
Representative Hoekstra (R-MI) offered a
substitute amendment that clarified the functions of
the International Advisory Board to ensure the Board is
advisory in its scope. In addition, the amendment
clarified that Board members cannot receive
compensation or gifts for their service, staggered the
terms of the Board members, and clarified the basic
operations of the Board. The amendment clarified that
no more than half of the total funds awarded to an
institution of higher education or consortia of such
institutions under title VI could be used for costs of
dissemination of materials to elementary and secondary
schools. Lastly, the amendment also clarified that
Federal agency and military recruiters are given the
same access to campuses as provided to other
prospective employers. The amendment was adopted by
voice vote.
Representative Holt (D-NJ) offered an
amendment that established a study, to be conducted by
the Secretary of Education in consultation with the
International Advisory Board, of foreign language
heritage communities. The amendment was adopted by
unanimous consent.
Representative Holt (D-NJ) offered an
amendment to authorize projects under the National
Language and Area Centers programs that support
students' understanding of science and technology in
coordination with foreign language proficiency. The
amendment was adopted by unanimous consent.
On Thursday, September 25, 2003, the Committee on Education
and the Workforce considered H.R. 3076 in legislative session
and reported it favorably as amended to the House of
Representatives by voice vote. The Committee considered and
adopted the following amendments to H.R. 3076:
Representative Hoekstra (R-MI) offered a
substitute amendment that made technical and clarifying
changes to the legislation. The amendment included the
addition of an authorized use of special project funds
for the Fund for the Improvement of Postsecondary
Education (FIPSE), which encourages the establishment
of academic programs to train faculty to teach
traditional American history. The substitute also moved
the competitive priority for graduate work in second
language pedagogy and second language acquisition,
including the preparation of teachers who teach limited
English proficient students, from the Javits program to
the Graduate Assistance in Areas of National Need
(GAANN) program. The amendment was adopted by voice
vote.
Representative Ehlers (R-MI) offered an
amendment that was adopted by unanimous consent by the
Committee. The amendment moves the GAANN competitive
priority language to the section of title VII within
which areas of national need and institutional
eligibility are determined. This placement is more
appropriate to the intent of the priority and aligns
the determination of the Secretary with the actual
disciplines to be considered. The amendment also
requires that an applicant have a master's degree or be
working toward a Ph.D. in math or science prior to
receipt of the fellowship.
Representative Holt (D-NJ) offered an
amendment that was adopted by unanimous consent by the
Committee. The amendment requires applicants for the
GAANN program to include within that application,
assurances that the department receiving the grant
collaborates with departments, programs or units in all
content areas to ensure a successful combination of
training in both teaching and content areas.
Representatives Ryan (D-OH) and Hoekstra (R-
MI) offered an amendment that was adopted by unanimous
consent by the Committee. The amendment would add an
authorized activity in the special projects fund of
FIPSE. The amendment allows FIPSE to include support
for planning, research, training, and other services to
be provided by institutions of higher education in
order to work with private and civic organizations to
assist communities in addressing pressing and severe
community problems.
109TH CONGRESS
Hearings--First session
On Tuesday, March 1, 2005, the Committee on Education and
the Workforce held a hearing in Washington, D.C., entitled,
``Enforcement of Federal Anti-Fraud Laws in For-Profit
Education.'' The purpose of this hearing was to examine the
effectiveness and enforcement of Federal laws that exist to
prevent fraud and abuse in for-profit education. Testifying
before the Committee were The Honorable Maxine Waters (D-CA),
Member of Congress, U.S. House of Representatives; Mr. Thomas
A. Carter, Deputy Inspector General, Department of Education,
Washington, D.C.; Mr. David Rhodes, President, The School of
Visual Arts, New York, New York; Mr. Nicholas Glakas,
President, Career College Association, Washington, D.C.; and
Ms. Paula Dorsey, former Director of Admissions, Bryman
College, Reseda, California.
On Tuesday, April 19, 2005, the Committee on Education and
the Workforce held a hearing in Washington D.C., entitled,
``College Access: Is Government Part of this hearing was to
learn about what has been accomplished in regard to the
conditions under which individuals enter the country with the
use of a student visa since the Subcommittees held joint
hearings on October 31, 2001 and September 24, 2002. Testifying
before the Subcommittees were Mr. Victor Cerda, Special
Counsel, U.S. Department of Homeland Security, Immigration and
Customs Enforcement, Washington, D.C.; Mr. Stephen A. Edson,
Managing Director of the Visa Services Directorate, Bureau of
Consular Affairs, Department of State, Washington, D.C.; Mr.
Randolph C. Hite, Director, Information Technology Architecture
and Systems Issues, Government Accountability Office,
Washington, D.C.; Mr. Lawrence Bell, Director, Office of
International Education, University of Colorado, Boulder,
Colorado; and Dr. C.D. Mote, Jr., President, University of
Maryland, College Park, Maryland.
On Friday, April 22, 2005, the Committee on Education and
the Workforce held a hearing entitled, ``College Access: Is
Government Part of the Solution, or Part of the Problem?'' This
hearing served as a forum to discuss the effects of ever-rising
college tuition costs and debate some of the possible solutions
to this problem. Testifying before the Committee were Dr.
Richard Vedder, Distinguished Professor of Economics, Ohio
University, Athens, Ohio; and Dr. Donald Heller, Associate
Professor and Senior Research Associate, Center for the Study
of Higher Education, The Pennsylvania State University,
University Park, Pennsylvania.
On Monday, May 2, 2005, the Committee on Education and the
Workforce, Subcommittee on Select Education, held a field
hearing entitled, ``International Education and Foreign
Language Studies in Higher Education.'' The hearing was held to
discuss international education and the respective programs
under title VI of the Higher Education Act. Specifically, the
Subcommittee sought to gather additional information about how
institutions of higher education are working with local K-12
schools to promote international education opportunities.
Testifying before the Subcommittee were Dr. Blandina Cardenas,
President, The University of Texas--Pan American, Edinburg,
Texas; Ms. Olga Chapa, Graduate Student, The University of
Texas--Pan American, Edinburg, Texas; Dr. Raymund Paredes,
Commissioner, Texas Higher Education Coordinating Board,
Austin, Texas; Dr. Jose Jaime Rivera, President, University of
the Sacred Heart, San Juan, Puerto Rico; and Dr. Tomas
Arciniega, President Emeritus, California State University--
Bakersfield, Valley Center, California.
On Monday, May 5, 2005, the Committee on Education and the
Workforce, Subcommittee on Select Education, held a hearing
entitled, ``College Credit Mobility: Can Transfer of Credit
Policies be Improved?'' This hearing served as a forum to
discuss college credit mobility policies at the institutional
level, as well as to examine best practices at the state level,
which ensure that the policies and articulation agreements
permit the fair and efficient transfer of credit. Testifying
before the Subcommittee were Dr. Philip Day, National
Articulation and Transfer Network, San Francisco, California;
Dr. Nancy Zimpher, President, University of Cincinnati,
Cincinnati, Ohio; Dr. Theresa Klebacha, Director, Strategic
Initiatives, Florida Department of Education, Tallahassee,
Florida; and Mr. Jerome Sullivan, Executive Director, American
Association of Collegiate Registrars and Admissions Officers,
Washington, D.C.
On Thursday, May 5, 2005, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington D.C., entitled, ``College Credit
Mobility: Can Transfer of Credit Policies be Improved?'' This
hearing served as a forum to discuss college credit mobility
policies at the institutional level, as well as to examine best
practices at the state level, which ensure that the policies
and articulation agreements permit the fair and efficient
transfer of credit. Testifying before the Subcommittee were Dr.
Philip Day, National Articulation and Transfer Network, San
Francisco, California; Dr. Nancy Zimpher, President, University
of Cincinnati, Cincinnati, Ohio; Dr. Theresa Klebacha,
Director, Strategic Initiatives, Florida Department of
Education, Tallahassee, Florida; and Mr. Jerome Sullivan,
Executive Director, American Association of Collegiate
Registrars and Admissions Officers, Washington, D.C.
On Thursday, May 19, 2005, the Committee on Education and
the Workforce, Subcommittee on 21st Century Competitiveness,
held a hearing in Washington D.C., entitled, ``Challenges to
American Competitiveness in Math and Science.'' The hearing
focused on whether elementary and high schools are being
creative enough with their math and science curriculum to make
these courses appealing to students. Also, the hearing examined
what is being done at institutions of higher education to
retain and graduate students who start their academic careers
in math, science or engineering disciplines. Testifying before
the Subcommittee were Mr. Norm Augustine, Retired Chairman and
Chief Executive Officer, Lockheed Martin Corporation, Bethesda,
Maryland; Dr. Thomas Magnanti, Dean of the School of
Engineering, Massachusetts Institute of Technology, Cambridge,
Massachusetts; Ms. June Streckfus, Executive Director, Maryland
Business Roundtable, Baltimore, Maryland; and Dr. Nancy Songer,
Professor of Science Education and Learning Technologies,
University of Michigan, Ann Arbor, Michigan.
Legislative action--First session
On February 8, 2005, Representatives John Boehner (R-OH)
and Howard P. ``Buck'' McKeon (R-CA) introduced H.R. 609, the
College Access and Opportunity Act, to reauthorize the Higher
Education Act (HEA) through fiscal year 2011.
On February 2, 2005, Representatives Patrick Tiberi (R-OH),
John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), Joe
Wilson (R-SC), Peter Hoekstra (R-MI), and Ruben Hinojosa (D-TX)
introduced H.R. 509, the International Studies in Higher
Education Act of 2005, to reauthorize international education
programs under title VI of the Higher Education Act through
fiscal year 2011.
On February 2, 2005, Representatives Patrick Tiberi (R-OH),
John Boehner (R-OH), Howard P. ``Buck'' McKeon (R-CA), Vernon
Ehlers (R-MI), Joe Wilson (R-SC), Peter Hoekstra (R-MI), and
Ruben Hinojosa (D-TX) introduced H.R. 510, the Graduate
Opportunities in Higher Education Act of 2005, to reauthorize
graduate education programs under title VII of the Higher
Education Act through fiscal year 2011.
On June 16, 2005, the Subcommittee on Select Education
considered H.R. 509 in legislative session and reported it
favorably, as amended, to the Committee on Education and the
Workforce by voice vote. The Subcommittee considered and
adopted by voice vote the following amendment to H.R. 509:
Representative Tiberi (R-OH) offered a
substitute amendment that made technical and clarifying
changes to the legislation. Specifically, the amendment
emphasized international business and trade
competitiveness as some of the core areas in
international education initiatives; clarified grantees
that are required to disseminate information to
elementary and secondary schools ensure that the
materials are reflective of a wide range of viewpoints;
and expanded the representation on the International
Advisory Board to include additional Federal agency
representatives that have responsibilities for
diplomacy and international commerce.
On June 16, 2005, the Subcommittee on Select Education
considered H.R. 510 in legislative session and reported it
favorably, as amended, to the Committee on Education and the
Workforce by voice vote. The Subcommittee considered and
adopted by voice vote the following amendment to H.R. 510:
Representative Tiberi (R-OH) offered a
substitute amendment to make technical and clarifying
changes to the legislation.
The Subcommittee on 21st Century Competitiveness considered
H.R. 609 in legislative session on Wednesday, July 13 and
Thursday, July 14, 2005 and reported it favorably, as amended
to the Committee on Education and the Workforce by a vote of
18-15. The Subcommittee considered and adopted the following
amendments to H.R. 609:
Representative McKeon (R-CA) offered a
substitute amendment to make technical and clarifying
changes to the legislation. Specifically, under title I
of the bill, the amendment modified the provision on
Student Speech and Association Rights; clarified the
college cost reporting requirements; and added a
prohibition for propaganda not authorized by Congress.
The substitute amended title II of the bill to include
gifted and talented as one of the learning styles on
which teacher preparation programs should focus and
amended reporting requirements to include additional
information on the academic fields being studied by
students participating in teacher preparation programs.
Title III was amended by adding a new eligible
institution to the Historically Black Graduate
Institution (HBGI) program. Amendments to title IV
included a reconfiguration of the reduction of
origination fees that incorporated the mandatory
guaranty fee while still reducing fees paid by students
to 1 percent by 2010; clarified the prohibition of the
ability for students to consolidate their loans while
in-school in both the Federal Family Education Loan
(FFEL) program and the Direct Loan (DL) program;
eliminated the ability of FFEL lenders to take
advantage of the ``super two step'' loophole in the
consolidation loan program; prospectively eliminated
the ability of lenders to earn a minimum of 9.5 percent
special allowance through the practice of
``recycling''; clarified how much money a guarantor can
retain from defaulted borrowers through consolidation
versus rehabilitation of a borrower's defaulted loan;
amended the date for Perkins loan Federal Capital
Contributions recovery; established eligibility for
competency based programs for title IV purposes;
removed the reporting requirements on transfer of
credit; and added due process language for program
reviews and accreditation hearings. In addition, the
substitute amendment made minor changes to the
Education of the Deaf Act, by linking the
accountability provisions of the No Child Left Behind
Act with the elementary and secondary schools operated
by Gallaudet University. The amendment was adopted by
voice vote.
Representative Fortuno (R-PR) offered an
amendment to maintain the single definition of an
institution of higher education, but exempt titles III
and V of the Higher Education Act from those funds for
which for-profit institutions would be eligible to
compete. The amendment was adopted by a vote of 22-10.
Representative Foxx (R-NC) offered an
amendment to prohibit the Department of Education from
implementing the proposed student unit record database.
The amendment was adopted by voice vote.
Representative Wu (D-OR) offered an
amendment to allow for the development of dual degree
programs that allow students to earn two undergraduate
degrees, one in education and the other in the subject
of the student's choosing. The amendment was adopted by
voice vote.
Representative Price (R-GA) offered an
amendment to authorize the Teacher Incentive Fund,
which will provide funds to states that want to develop
merit pay initiatives. The amendment was adopted by a
vote of 17-15.
Representative Keller (R-FL) offered an
amendment to waive Pell Grant repayment obligations for
students who withdraw from their institution of higher
education due to Federally-declared natural disasters.
The amendment was adopted by voice vote.
Representative Keller (R-FL) offered an
amendment to prohibit individuals who are subject to an
involuntary civil commitment upon completion of a
period of incarceration for a sexual offense from being
eligible for a Pell Grant. The amendment was adopted by
voice vote.
Representative Keller (R-FL) offered an
amendment to raise the maximum authorized Pell Grant to
$6,000. The amendment was adopted by voice vote.
Representative Johnson (R-TX) offered an
amendment to limit a student's Pell Grant to 16
semesters (8 years) or 24 quarters (6 years). The
amendment was amended by unanimous consent to limit a
student's Pell Grant to 18 semesters (9 years) or 27
quarters (7 years). The amendment was adopted by voice
vote.
Representative Castle (R-DE) offered an
amendment to strike the repeal of the 90/10 rule and
move the rule to the Program Participation Agreement
and further define what is included in the 10 percent
part of the ratio. The amendment was adopted by voice
vote.
Representatives Porter (R-NV) and McCarthy
(D-NY) offered an amendment to modify the existing
Child Care Loan Forgiveness discretionary program to
include loan forgiveness for nurses and other
occupations deemed by the Secretary to be areas of
national need. The amendment was adopted by voice vote.
Representative McCollum (D-MN) offered an
amendment to direct the Secretary of Education to
commission a study on fraud and abuse in the title IV
student financial aid programs. The amendment was
adopted by a vote of 33-0.
The Committee on Education and the Workforce considered
H.R. 609 in legislative session on Wednesday, July 20,
Thursday, July 21 and Friday, July 22, 2005 and reported it
favorably, as amended, to the House of Representatives, by a
vote of 27-20, 1 present. The Committee considered and adopted
the following amendments to H.R. 609:
Representative Boehner (R-OH) offered a
substitute amendment to make technical and clarifying
changes to the legislation. Specifically, under title I
of the bill, the substitute clarified that degrees
offered by Rabbinical schools are recognized as
equivalent to the baccalaureate degree and Rabbinical
schools are able to participate in the title IV student
financial aid programs; and improved the fraud and
abuse protections for students that receive title IV
aid enrolled in foreign schools. In title II, the
substitute added language that allow states to further
evaluate the content knowledge of potential teachers in
the subject matter they will be teaching; allowed funds
to be used to increase the supply of highly qualified
math, science and special education teachers and the
faculty needed to train them; clarified that funds can
be used to help recruit high achieving students,
including those who are bilingual, into the field of
early childhood education; and allowed institutions of
higher education to develop articulation agreements to
make it easier for existing early childhood educators
to obtain a bachelor's degree. In title III, the
substitute included a provision for the Tribally
Controlled Colleges and Universities and the Alaska-
Native and Native-Hawaiian Serving Institutions to use
grant funds to support instruction in tribal governance
and tribal public policy. In title IV, the substitute
clarified that individuals who are convicted of fraud
and abuse within the title IV student aid programs are
no longer eligible for such aid until they pay back to
the Federal government the aid received through
fraudulent means. Additionally, the substitute
specifically addresses the needs of homeless youth in
the TRIO program and GEAR UP and clarifies that TRIO
programs should include services to address the
transition of veterans into math and science fields.
The substitute adds language to ensure that a loan
cannot be transferred into a qualifying tax exempt bond
to obtain 9.5 percent special allowance. The substitute
also includes a provision to provide the opportunity
for active duty members of the Armed Services who are
out of school to obtain a student loan deferment of up
to three years. The substitute consolidates and
clarifies consumer empowerment information by
establishing a central location for the collection of
such information, designated as the College
Opportunities On-Line (COOL) website operated by the
Department of Education. The substitute also includes
foreign language teachers and U.S. government employees
who are in positions that regularly require the use of
a foreign language in the discretionary national need
loan forgiveness program. The substitute amendment
reflected the amendments made to H.R. 509 and H.R. 510,
the reauthorization bills for title VI and VII of the
Higher Education Act, respectively. Under title VI of
the bill, the substitute clarifies that when the
members of the International Advisory Board assess
activities of centers or programs supported by title VI
funds, the materials that are used to make assessments
must be those submitted by grantees to the Department
of Education as part of the grant requirements. Under
title VII of the bill, the substitute adds language to
prohibit funds from the Fund for the Improvement of
Postsecondary Education (FIPSE) from being spent on
students who are not eligible for title IV aid; and
allows FIPSE funds to be used to support students who
are fulfilling internships in disadvantaged
communities. The substitute renames the ``Education of
the Deaf Act of 1986'' as the ``Gallaudet University
and National Technical Institute for the Deaf Act.''
The amendment was adopted by voice vote.
Representative Castle (R-DE) offered an
amendment to clarify for-profit institutions cannot
automatically compete for other Federal programs
outside of the Higher Education Act. The amendment was
adopted by voice vote.
Representative McCarthy (D-NY) offered an
amendment to require that reports of graduation rates
under the college cost section of the bill must
indicate whether completion or graduation rates are
from two- or four-year institutions, and if the rates
are from a two-year program of instruction, they be
accompanied by the percentage of students who
transferred to a four-year institution. The amendment
was adopted by unanimous consent.
Representative McCarthy (D-NY) offered an
amendment to clarify that the College Affordability
Index must be presented next to an institution's
tuition and fees on the College Opportunities On-Line
(COOL) website. The amendment was adopted by unanimous
consent.
Representatives Hinojosa (D-TX), Grijalva
(D-AZ), Fortuno (R-PR), and Tiberi (R-OH) offered an
amendment to create a new program for graduate programs
at Hispanic Serving Institutions (HSIs). The amendment
was adopted by a vote of 46-2.
Representative Wu (D-OR) offered an
amendment to establish or expand dual enrollment
programs at institutions of higher education with funds
from the Fund for the Improvement of Postsecondary
Education (FIPSE). The amendment was adopted by
unanimous consent.
Representatives Tiberi (R-OH) and Barrow (D-
GA) offered an amendment to clarify that programs that
reduce postsecondary remediation rates and improve
degree attainment rates for low-income students and
former high school dropouts are eligible for funds
under FIPSE. The amendment was adopted by voice vote.
Representative Price (R-GA) offered an
amendment to direct the Secretary of Education to study
the indebtedness of medical school graduates. The
amendment was adopted by voice vote.
Representative Davis (D-IL) offered an
amendment to direct the Secretary of Education to study
the graduation rates of minority male students. The
amendment was adopted by voice vote.
Representatives Petri (R-WI) and Boehner (R-
OH) offered an amendment to provide borrowers a choice
between a fixed interest rate and a variable interest
rate on consolidation loans. The amendment was adopted
by a vote of 26-20.
Representative Petri (R-WI) offered an
amendment to reduce insurance and reinsurance rates for
lenders and guarantors, respectively. The amendment was
adopted by voice vote.
Representatives Kildee (D-MI) and Van Hollen
(D-MD) offered an amendment to reform the school as
lender initiative in the FFEL program. The amendment
was adopted by unanimous consent.
Representative Grijalva (D-AZ) offered an en
bloc amendment to expand the discretionary national
need loan forgiveness program to include librarians,
teachers of bilingual education, first-responders, and
child welfare workers. The amendment was adopted by
voice vote.
Representative Musgrave (R-CO) offered an
amendment to exempt small business assets from being
included in the disclosure of assets for the purposes
of need analysis. The amendment was adopted by a vote
of 28-18.
Representatives Osborne (R-NE) and Holt (D-
NJ) offered an amendment to make community colleges
eligible to participate in the year-round Pell Grant
program. The amendment was adopted by voice vote.
Representative Boustany (R-LA) offered an
amendment to consider children who are adopted after
age 13 to be included in the ``special circumstances''
discretion allowed for school financial aid officers in
need analysis determinations. The amendment was adopted
by voice vote.
Representative Musgrave (R-CO) offered an
amendment to ensure that a student's Federal student
aid is not impacted by his or her participation in a
State choice program. The amendment was amended by
unanimous consent by Representative Musgrave by
changing ``entity'' to ``State'' and adopted by voice
vote.
Representative Foxx (R-NC) offered an
amendment to increase accountability in the TRIO
programs. The amendment was adopted by a vote of 27-19.
Representative Castle (R-DE) offered an
amendment to further define the 90/10 ratio and
increase the penalties for non-compliance. The
amendment was adopted by voice vote.
Representative Platts (R-PA) offered an
amendment to require colleges and universities that are
in the top 25 percent of those in their sector to
exceed the College Affordability Index to establish
college cost task forces. The amendment was adopted by
voice vote.
Representative Ehlers (R-MI) offered an
amendment to require accrediting agencies to monitor
the growth of distance education programs. The
amendment was adopted by unanimous consent.
Representatives McKeon (R-CA), Ehlers (R-MI)
and Kind (D-WI) offered an amendment to provide
scholarships to the top high school seniors to pursue
undergraduate and graduate degrees in math and science,
allow interest repayment on loans for math and science
studies, and create education councils on math and
science. The amendment was adopted by voice vote.
Representatives McKeon (R-CA), Ryan (D-OH),
and Tierney (D-MA) offered an amendment to authorize
the non-mandatory cost provisions of the Advisory
Committee on Student Financial Aid report on FAFSA
simplification. The amendment was adopted by voice
vote.
Representative Van Hollen (D-MD) offered an
amendment to continue the Experimental Sites initiative
and experiments. The amendment was amended by unanimous
consent by clarifying institutional experiments in the
Experimental Sites initiative would continue unless the
Secretary determines the institution's participation
has not been successful. The amendment was adopted by
voice vote.
Representative McKeon (R-CA) offered an
amendment to ensure accreditors take into account an
institution's religious mission during the
institutional review. The amendment was adopted by
voice vote.
Representative Andrews (D-NJ) offered an
amendment to require institutions of higher education
to disclose fire safety policies and procedures to
enrolled and prospective students. The amendment was
adopted by a vote of 35-13.
Representative Andrews (D-NJ) offered an
amendment to modify the return of title IV provisions
for clock hour institutions. The amendment was adopted
by voice vote.
Representative Wu (D-OR) offered an
amendment to establish a Sense of the Committee
regarding textbook costs. The amendment was adopted by
voice vote.
Representative Kind (D-WI) offered an
amendment to direct the Secretary of Education to do a
study on adult learners attending institutions of
higher education. The amendment was adopted by voice
vote.
Below is a summary of H.R. 609.
Summary
Short title; Table of contents
Section 1 gives the short title of the bill as the College
Access and Opportunity Act of 2005 and sets forth the table of
contents.
References; Effective date
Section 2 specifies that the provisions of the bill amend
the Higher Education Act of 1965, and makes these amendments
(except as otherwise provided in the legislation) effective
upon enactment of the legislation.
Title I--General provisions
Title I of H.R. 609 amends provisions and programs under
title I (General Provisions) of the Higher Education Act and
reauthorizes title I through fiscal year 2011.
Definition of an institution of higher education
The bill creates a single definition of an institution of
higher education. Under current law, the Higher Education Act
includes two definitions of an institution of higher education.
The first definition, in section 101 of the law, applies to
institutional participation in both title IV student financial
aid programs and non-title IV programs. The second definition,
in section 102 of the law, applies only to institutions
participating in title IV programs. By creating a single
definition, H.R. 609 removes the 90/10 rule from the criteria
that institutions of higher education must meet in order to be
eligible for title IV participation. Additionally, the single
definition provision repeals the 50 percent rule for
telecommunications courses.
The single definition provision clarifies that institutions
of higher education that dually enroll students in their
institution and a secondary school will continue to be eligible
for participation in the title IV programs. Additionally, the
single definition clarifies that institutions of higher
education who admit home-schooled students are able to
participate in the title IV programs.
Institutions outside the United States
H.R. 609 maintains the section 102 definition of an
institution of higher education for institutions outside of the
United States and makes several amendments to the current law
provision. The bill clarifies the definition of a foreign
school to include a requirement for the school to be legally
authorized by the education ministry (or comparable agency) of
the country in which the school is located. H.R. 609 also
removes the requirement for students attending Canadian Medical
schools to take the Foreign Medical exam. For the purposes of
qualifying as a foreign medical school for participation in the
Federal Family Education Loan (FFEL) program, the bill requires
the Secretary to publish qualifying criteria by regulation and
establish an advisory panel of medical experts to evaluate the
standards of foreign medical school accreditation and determine
their comparability to U.S. standards.
Restrictions on funds for for-profit institutions
With the creation of a single definition of an institution
of higher education, the bill also places restrictions on funds
for proprietary schools and makes proprietary schools
ineligible for funds available through title III or title V of
the Higher Education Act. Additionally, other Federal funds
made available to institutions of higher education through the
current statutory reference to section 101 will not be made
automatically available to for-profit institutions until the
other Federal statute is amended to expressly include the for-
profit sector.
New borrower definition
H.R. 609 clarifies the definition of a ``new borrower'' to
separate the Federal Family Education Loan (FFEL) and Direct
Loan (DL) programs from the Perkins loan program.
Student Speech and Association Rights
H.R. 609 modifies the current Sense of Congress on Student
Speech and Association Rights to clarify students should not be
excluded from campus activities or denied any benefits based on
their ideological or political beliefs.
National Advisory Committee on Institutional Quality and
Integrity
The bill reauthorizes the National Advisory Committee on
Institutional Quality and Integrity (NACIQI) and permits
members of NACIQI to continue to serve after an expiration of
their term until a successor has been appointed.
Alcohol and Drug Abuse Prevention; Prior Rights and
Obligations; Performance Based Organization
H.R. 609 reauthorizes the Alcohol and Drug Abuse Prevention
grants program, Prior Rights and Obligations dealing with bond
servicing, and the Performance Based Organization (PBO) through
fiscal year 2011.
Limitation on certain uses of funds
The bill places a limitation on certain uses of funds, such
as limiting publicity or propaganda activities not authorized
by Congress prior to the enactment of H.R. 609.
Consumer information and public accountability in higher
education
H.R. 609 amends current law section 131 to require the
Secretary to redesign the College Opportunities On-Line (COOL)
website to make the site more user-friendly and contain
information that is of greater use to students and families
when making decisions about college. The bill requires the
Department to revamp its current COOL website, including all
currently required data from institutions of higher education,
to create a College Consumer Profile that is easily reviewed by
parents and students. The bill also amends the Higher Education
Act section 131 to require institutions of higher education
that increase their tuition and fees more than twice the rate
of inflation over a three-year interval to submit a management
plan in conjunction with the entity that controls their tuition
and fee costs to the Secretary for publication on the COOL
website. H.R. 609 establishes a college affordability index and
requires an institution that exceeds the index to report how it
will work to reduce that increase. Institutions that are in the
highest 25 percent of the college affordability index for their
sector will be required to establish a quality-efficiency task
force to review operations at the institution. Institutions
that fail to comply with their management plan or action plan
are subject to an audit by the Inspector General, additional
monitoring by the Department of Education, and potentially a
fine of $25,000. The bill provides for a low-cost school
exemption as well as an exemption for those schools that exceed
the index but do so by less than $500. The bill requires the
Government Accountability Office to conduct a study of best
practices of those institutions that keep costs low and
increase the affordability of higher education. H.R. 609 also
calls for a student aid recipient survey on the current
population of students receiving Federal student aid to be
completed by the Department of Education not less than once
every four years.
Databases of student information
H.R. 609 contains a prohibition of the design, development,
creation, implementation or maintenance of nationwide databases
that track individual students over time.
Title II--Teacher Preparation
Title II of H.R. 609 amends provisions and programs under
title II (Teacher Preparation) of the Higher Education Act and
reauthorizes title II through fiscal year 2011.
H.R. 609 amends Part A (Teacher Quality Enhancement Grants
for States and Partnerships) and Part B (Preparing Tomorrow's
Teachers to Use Technology) of title II of the Higher Education
Act, authorizes new teacher preparation activities under Part C
(Centers of Excellence), and authorizes the creation of new
state and locally developed performance based pay structures
for teachers and principals under Part D (Teacher Incentive
Fund).
Teacher quality enhancement grants for states and
partnerships
The bill authorizes competitively awarded grants to: (1)
increase student academic achievement; (2) improve the quality
of the current and future teaching force by improving the
preparation of prospective teachers and enhancing professional
development activities; (3) hold institutions of higher
education accountable for preparing highly qualified teachers;
(4) recruit highly qualified individuals, including minorities
and individuals from other occupations, into the teaching
force, and (5) assist States and local educational agencies in
developing and implementing performance based pay systems for
teachers and principals who increase student academic
achievement and close the achievement gap.
State grants
H.R. 609 requires States that receive grants to develop
evaluation systems to determine the effectiveness of grant
activities, which must include measures for teacher
effectiveness that are based on gains in student academic
achievement and teacher mastery of the academic subjects they
teach.
Under this section, States must use funds to reform teacher
preparation requirements, coordinate with State activities
authorized under title II of the No Child Left Behind Act and
ensure that current and future teachers are highly qualified.
State grant funds can be used for: (1) designing teacher
preparation programs that are based on rigorous academic
content, scientifically based research (including
scientifically based reading research), and challenging State
student academic content standards; (2) reforming teacher State
certification to ensure that teachers have the necessary
subject matter knowledge and teaching skills to help students
meet challenging State student academic achievement standards;
(3) providing prospective teachers with alternative routes to
traditional preparation and State certification; (4) planning
and implementing innovative teacher preparation programs, such
as charter colleges of education; (5) developing performance-
based compensation systems for teachers and principals; (6)
developing teacher advancement and retention initiatives that
promote professional growth, multiple career paths, and pay
differentiation; (7) ensuring that local educational agencies
and schools are able to expeditiously remove incompetent or
unqualified teachers; (8) developing systems to measure the
effectiveness of teacher preparation programs; (9) providing
technical assistance to low-performing teacher preparation
programs as identified by the State; (10) ensuring that local
educational agencies and schools are able to recruit highly
qualified teachers; (11) developing strategies to improve
qualifications of preschool teachers and preschool teacher
preparation programs; (12) incorporating the learning needs of
gifted and talented students into activities to ensure that new
teachers possess basic knowledge and skills to meet the needs
of these students; (13) establishing or expanding new-teacher
mentoring and assessment programs that are part of a licensure
process to identify student learning differences among gifted
students; (14) supporting the development of new special
education, math and science faculty positions in institutions
of higher education dedicated to the preparation of teachers in
these disciplines; and (15) assessing the performance of
teacher preparation programs within institutions of higher
education in States that provide comparisons across schools in
the State.
Partnership grants
H.R. 609 provides that each eligible partnership must
include at least: (1) a high quality teacher preparation
program at an institution of higher education; (2) a school of
arts and sciences; (3) a high need local educational agency;
and (4) a public or private educational organization.
Each eligible partnership must submit an application that,
among other things, describes: (1) how faculty of a teacher
preparation program at an institution of higher education that
seeks a partnership grant will serve with highly qualified
teachers in the classroom at partner local educational agencies
over the term of the grant; and (2) how teachers in private
elementary and secondary schools located in the geographic
areas served by the partnership will be able to participate
equitably in the partnership.
This section requires that at least 50 percent of
partnership funds be used to ``directly benefit'' partner local
educational agencies and clarifies that any entity under the
partnership may be the fiscal agent of such partnership.
H.R. 609 requires that eligible partnerships use funds to
reform teacher preparation requirements, coordinate with State
activities authorized under title II of the No Child Left
Behind Act, and ensure that current and future teachers are
highly qualified. Partnership grant funds must be used for: (1)
designing teacher preparation programs that are based on
rigorous academic content, scientifically based research
(including scientifically based reading research), and
challenging State student academic content standards; (2)
providing sustained and high quality pre-service and in-service
clinical experience for teachers, including the mentoring of
prospective teachers by exemplary teachers; (3) creating
opportunities for enhanced and ongoing professional development
consistent with the definition of ``professional development''
in the No Child Left Behind Act; and (4) developing
professional development activities that provide training in
how to teach and address the needs of students with different
learning styles (particularly students with disabilities) and
to provide training in methods of improving student behavior in
the classroom.
An eligible partnership that receives a partnership grant
may also use funds for: (1) providing prospective teachers with
alternative routes to traditional preparation and State
certification; (2) disseminating information on effective
practices of the partnership; (3) developing managerial and
leadership professional development programs for principals and
superintendents; (4) providing teacher recruitment activities;
(5) creating opportunities for teachers to gain clinical
experience in science, math, and technology (as long as such
teachers commit to an additional two years in the classroom
after the clinical experience); (6) coordination with community
colleges to implement teacher preparation programs; (7)
establishing or implementing a teacher mentoring program; (8)
providing training for teachers to use computer software for
multilingual education to address the needs of limited English
proficient students; (9) increasing the knowledge and skills of
pre-service teachers participating in activities related to the
needs of gifted and talented students; and (10) increasing the
number of highly qualified special education, math and science
teachers.
Teacher recruitment grants
H.R. 609 requires that applicants for Teacher Recruitment
Grants submit an application that, among other things,
describes the extent to which the applicant will use funds to
recruit minorities into the teaching profession and directs the
Secretary of Education to give priority to applicants that will
place an emphasis on recruiting minorities into the teaching
profession. In addition, the legislation increases the minimum
service requirements (as teachers in high need local
educational agencies) for students that receive assistance to a
minimum of one year, plus an amount of time equivalent to the
aid received.
An eligible applicant must use teacher recruitment grant
funds to: (1) award scholarships to help students pay the costs
of tuition, room, board, and other expenses of completing a
teacher preparation program; (2) provide support services to
enable scholarship recipients to complete postsecondary
education programs; and (3) provide follow up services to
former scholarship recipients during the recipients' first 3
years of teaching; or develop and implement activities to
ensure that high need local educational agencies and schools
are able to effectively recruit highly qualified teachers.
In addition to using funds for the aforementioned required
activities, an eligible applicant that receives a teacher
recruitment grant may also use funds to recruit employees from
high demand industries, including mathematics, science,
engineering, and technology industries, into the teaching
profession. Eligible applicants may also use funds to conduct
outreach and coordinate with inner city and rural secondary
schools to encourage students to pursue teaching as a career;
develop and implement dual degree programs; and recruit high
achieving students and bilingual students into early childhood
education programs.
Accountability for programs that prepare teachers
Under H.R. 609, each State that receives grants under the
Act must continue its ``State Report Card on the Quality of
Teacher Preparation'' (as required under P.L. 105-244, the
Higher Education Amendments of 1998) and report annually to the
Secretary of Education, for both traditional and alternative
teacher preparation programs, the percentage of students (who
completed at least 50 percent of the coursework required for
teacher preparation programs) that took and passed the State
certification or licensure assessment.
H.R. 609 continues provisions for the Secretary of
Education to report on teacher quality and preparation in the
United States. Among other things, the Secretary's report
(which is made available to the Congress and the public) must
include: (1) A comparison of States' efforts to improve
teaching quality; and (2) the national mean and median scores
on any standardized test that is used in one or more States for
teacher certification or licensure.
Each teacher preparation program that enrolls students
receiving Federal assistance under the Act must also continue
current law reporting requirements with regard to the quality
of teacher preparation. In particular, H.R. 609 requires annual
reports from teacher preparation programs that must include:
(1) the pass rate of each student who completed at least 50
percent of the coursework required for the teacher preparation
program on the State certification or licensure assessment; (2)
a comparison of the program's pass rate for students who
completed at least 50 percent of the coursework required for
the teacher preparation program with the average pass rate for
other programs in the State; and (3) a comparison of the
program's average raw score for students who completed at least
50 percent of the coursework required for the teacher
preparation program with the average raw scores for other
programs in the State. In the case of programs with fewer than
ten students who have completed at least 50 percent of the
requirements, the institution shall collect and publish
information with respect to an average pass rate on State
certification or licensure assessments taken over a 3-year
period.
H.R. 609 adds provisions to the Higher Education Act that
require the Governor of a State (or the entity in the State
responsible for teacher certification and preparation) to
attest to the reliability of data reported under the Act to the
Secretary of Education.
Preparing tomorrow's teachers to use technology
H.R. 609 continues activities authorized under the
Preparing Tomorrow's Teachers to Use Technology program. This
program was updated and transferred from the Elementary and
Secondary Education Act to the Higher Education Act during
consideration of the No Child Left Behind Act in the 107th
Congress. The purpose of this program is to prepare prospective
teachers to use advanced technology to prepare all students to
meet challenging State and local academic content and student
academic achievement standards.
Centers of excellence
H.R. 609 authorizes grants for the creation of Centers of
Excellence at high quality minority serving institutions. Under
this part, grants are competitively awarded to high quality
teacher preparation programs (as determined by the State) at
eligible institutions which include: Historically Black
Colleges or Universities, Hispanic-Serving Institutions,
Tribally Controlled Colleges or Universities, Alaska Native-
Serving Institutions, or Native Hawaiian-Serving Institutions.
Teacher incentive fund
The bill also authorizes the Teacher Incentive Fund with
the purpose of assisting States, local educational agencies,
and non-profit or for-profit organizations to develop and
implement, or expand, innovative compensation systems to
provide financial rewards for teachers and principals who raise
student academic achievement and close the achievement gap,
especially in the highest-need local educational agencies.
Title III--Institutional Aid
Title III of H.R. 609 amends provisions and programs under
title III (Institutional Aid) of the Higher Education Act and
reauthorizes title III through fiscal year 2011.
Tribally Controlled Colleges and Universities
The bill amends the current competitive grant program for
Tribally Controlled Colleges and Universities (TCCUs) and
establishes a formula grant for these institutions. The minimum
grant for each institution is $400,000. With the creation of a
formula grant, the bill removes the two-year wait-out period,
which is no longer necessary under the new formula grant
provision. Additionally, H.R. 609 allows TCCUs to use funds for
the development and improvement of facilities for Internet and
other distance learning academic instruction capabilities and
to use funds to assist with advanced degrees in tribal
governance or the development of tribal public policy.
Alaska-Native and Native-Hawaiian Serving Institutions
H.R. 609 conforms the uses of funds provisions for Alaska-
Native and Native-Hawaiian Serving Institutions to that of all
the other minority serving institution programs by allowing
funds to be used for construction and maintenance of
instructional facilities. These institutions can also use funds
for the development and improvement of facilities for Internet
and other distance learning academic instruction capabilities
and to use funds to assist with advanced degrees in tribal
governance or the development of tribal public policy. Lastly,
the bill allows these institutions to use no more than 20
percent of their grant funds to establish an endowment fund
with the use of matching funds. This provision is already
provided for within title III for other minority serving
institutions.
Historically Black Colleges and Universities
The bill amends the program that serves Historically Black
Colleges and Universities (HBCUs) to allow these institutions
to use no more than two percent of funds received through their
grant to secure technical assistance, for use with enrollment
management, financial management and strategic planning. The
bill also requires that these institutions report to the
Secretary on the use of those funds. As with the other programs
that assist minority serving institutions, the bill allows
HBCUs to use their funds for the development and improvement of
facilities for Internet and other distance learning academic
instruction capabilities. H.R. 609 permits HBCUs to use their
funds to establish community outreach programs and
collaborative partnerships between their institution and
elementary and secondary schools. Lastly, the bill increases
the minimum grant for HBCUs from $500,000 to $750,000 provided
funds are available to provide eligible institutions a grant
equal to the preceding year.
Historically Black Graduate Institutions
H.R. 609 amends the Historically Black Graduate
Institutions (HBGIs) program to ensure that the institution
receiving an HBGI grant is accredited by a national accrediting
agency recognized by the Secretary and is in good standing with
that agency. The bill adds four new eligible institutions to
the HBGI program and maintains the current hold harmless
funding provisions.
Technical amendments to Title III
H.R. 609 amends the uses of funds for all of the programs
that award funds to minority-serving institutions under this
title to encourage education and counseling services for
students and their families that will improve their financial
and economic literacy. Additionally, all minority serving
institutions can use funds to acquire real property adjacent to
the campus for the expansion and development of academic
facilities. The bill also ensures that eligible programs under
this title are those that provide not less than a two-year
program that is acceptable for full credit toward a bachelor's
degree.
Title IV--Student Assistance
Title IV of H.R. 609 amends provisions and programs under
title IV (Student Assistance) of the Higher Education Act and
reauthorizes title IV through fiscal year 2011, unless
otherwise specified.
Pell Grant program
H.R. 609 amends the Pell Grant program by extending the
authorization through academic year 2012-2013 and establishes a
maximum grant award of $6,000. The bill eliminates the tuition
sensitivity provision. The bill provides for year-round Pell
Grants for students enrolled for 12 consecutive months, rather
than 9 consecutive months in order to accelerate program
completion. Year-round Pell Grants are limited to four-year
institutions that have a graduation rate of at least 30 percent
and two-year institutions that have a graduation rate in at
least one of the last three years for which data is available
that exceeds the average for the sector. The bill requires an
evaluation of the year-round Pell Grant program and a report by
the Secretary to the Congress. H.R. 609 restricts the use of
Pell Grants for remedial or ESL instruction to one academic
year. H.R. 609 also limits the number of semesters or quarters
a student may receive a Pell Grant to 18 semesters or 27
quarters.
The bill creates a new initiative called Pell Grants Plus--
Achievement Grants for State Scholars. This initiative will
provide for up to an additional $1,000 for the first two years
of full-time undergraduate study to Pell-eligible, high
achieving students. To be eligible to receive the additional
$1,000 for the first-year of postsecondary study, a student
must be enrolled full-time in the first year of undergraduate
education and not have been previously enrolled in an
undergraduate program. The student must also be Pell eligible
and have successfully completed a high school program supported
by the Center for State Scholars. This award, along with other
aid for which the student is eligible, may not exceed the
student's cost of attendance. To continue eligibility for the
second year of undergraduate study, the student must continue
to be Pell-eligible, be enrolled full time and obtain a grade
point average of at least 3.0 and fulfill satisfactory academic
progress. The Secretary will monitor the progress, retention,
and completion of these students to evaluate the impact of this
program and provide recommendations to the authorizing
committees for its continuation or necessary changes.
TRIO program
H.R. 609 reauthorizes the TRIO program and extends TRIO
grants to five years and synchronizes the grants to a five-year
term. The bill also increases the minimum award amount for TRIO
grants. H.R. 609 allows for a competition among novice TRIO
applicants to provide an opportunity for institutions that have
never received a TRIO grant to compete for funds. The provision
requires the Secretary to put aside ten percent of the funds
available for each competition for novice applicants. If there
are not enough qualified novice applicants to utilize the ten
percent, the bill directs the funds to be returned to the
general TRIO fund for other awards. H.R. 609 ensures that all
veterans and individuals who are defined as homeless or
unaccompanied youth will be eligible to participate in TRIO
provided services. The bill also clarifies that institutions
with more than one campus may apply for separate grants to
serve different populations on different campuses. The bill
increases stipends for students in Upward Bound and the McNair
Postbaccalaureate Achievement Program. Throughout the TRIO
programs, the bill authorizes funds to be used for education
and counseling services to improve financial and economic
literacy of students and families who are assisted by TRIO
funds. Additionally, the bill calls for Educational Opportunity
Centers and Student Support Services to provide services to
low-income working adults. The bill also establishes new
performance measures for TRIO grantees, which will help the
Secretary and the Congress measure the quality and
effectiveness of programs and the impact the programs are
having on the target populations to be served.
Gaining Early Awareness and Readiness for Undergraduate
Programs (GEAR UP)
H.R. 609 reauthorizes the Gaining Early Awareness and
Readiness for Undergraduate Program (GEAR UP) and provides
assurances that entities currently holding GEAR UP grants may
reapply upon expiration of their grant. Additionally, the bill
allows GEAR UP services to be provided to students coming out
of a GEAR UP cohort and transitioning into postsecondary
education. The bill requires that GEAR UP applications include
a description of activities in place to coordinate, complement
and enhance services provided by other State entities. H.R. 609
authorizes funds to be used for education and counseling
services to improve financial and economic literacy of students
and families who are assisted by GEAR UP funds. The bill
clarifies individuals who are defined as homeless or
unaccompanied youth are eligible to participate in GEAR UP
programs. Finally, H.R. 609 clarifies that the duration of a
GEAR UP grant is for six years.
Campus based aid programs
H.R. 609 reauthorizes all three campus based aid programs:
Supplemental Educational Opportunity Grants (SEOG), Federal
Work Study and the Perkins loan program. The bill provides for
a phase out of the base guarantee for the allocation of campus
based aid funds to eligible institutions beginning in 2008.
Base guarantee funds decrease by 20 percent every two years and
are replaced by funds awarded by the fair share formula
calculation. Should the funds in the SEOG and Federal Work
Study programs exceed $700 million, the bill gives the
Secretary the discretion to allocate not more than 10 percent
of such funds to institutions that graduate degree-seeking Pell
Grant recipients who complete a four-year degree in four years
and a two-year degree in two years. Within all three campus
based aid programs, the books and supplies allowance is
increased in the determination of the cost of attendance.
Within the Federal Work Study program, the bill allows student
employment in on-campus day care centers to count toward
community service jobs for work-study students. The bill also
permits up to 15 percent or $75,000 of an institution's
allocation, whichever is less, to be used to locate and develop
jobs for students, including community service jobs. H.R. 609
makes technical and clarifying corrections to the work college
provisions.
Leveraging Educational Assistance Partnerships; Child Care
Access Means Parents in School
H.R. 609 reauthorizes the Leveraging Educational Assistance
Partnerships (LEAP) program and the Child Care Access Means
Parents in School program.
High School Equivalency Program; College Assistance Migrant
Program
H.R. 609 reauthorizes the High School Equivalency Program
(HEP) and the College Assistance Migrant Program (CAMP). The
bill expands services to those with family members who are
migrant or seasonal farm workers, and allows for follow-up
services. H.R. 609 encourages that funds be used for HEP
students who are in programs of two-years or less to transfer
to four-year institutions.
Robert C. Byrd Honors Scholarship Program
The bill reauthorizes the Byrd Scholarship Program and
amends the emphasis of the program to focus more intently on
the math and science related disciplines. The program is
renamed to the Robert C. Byrd Mathematics and Science Honors
Scholarship Program.
Learning Anytime Anywhere Partnerships
H.R. 609 repeals the Learning Anytime Anywhere Partnerships
program.
Federal Family Education Loan (FFEL) & Direct Loan (DL)
programs
The Federal Family Education Loan (FFEL) program is
reauthorized through fiscal year 2011 and the insurance
provisions are reauthorized through fiscal year 2012. The
Direct Loan (DL) program is also reauthorized through fiscal
year 2011. H.R. 609 provides a small increase to the maximum
amount of funds that are available to guaranty agencies for
administrative purposes included in section 458 of the Higher
Education Act, while maintaining current authorized levels for
the overall administration of the student aid programs.
H.R. 609 increases the annual maximum loan limits in both
the FFEL and DL programs for first and second year college
students from $2,625 to $3,500 and from $3,500 to $4,500,
respectively, beginning with loans issued on or after July 1,
2007. The bill also clarifies that underlying loans that have
been wrapped into a consolidation loan will still count against
the borrower's aggregate loan limits. Finally, H.R. 609
increases the annual unsubsidized graduate loan limits in both
the FFEL and DL programs from $10,000 to $12,000.
The bill retains the variable rate formula for both the
FFEL and DL programs and repeals the change in Stafford loan
and PLUS loan interest rates scheduled for July 1, 2006.
Beginning on July 1, 2006, the bill changes the interest
rates on consolidation loans in both the FFEL and DL programs
to offer the borrower a choice between a fixed interest rate or
a variable interest rate. The fixed interest rate is equal to
the 91-day Treasury bill + 3.3 percent, capped at 8.25 percent
and includes a one-time fixed rate offset fee of 0.50 percent.
The variable interest rate is equal to the 91-day Treasury bill
+ 2.3 percent, capped at 8.25 percent. The fixed interest rate
for PLUS loans is equal to the 91-day Treasury bill + 4.1
percent, capped at 9.0 percent and includes a one-time fixed
rate offset fee of 0.50 percent. The variable interest rate for
PLUS loans is equal to the 91-day Treasury bill + 3.1 percent,
capped at 9.0 percent.
H.R. 609 retains a provision from current law that limits
the number of times a borrower can consolidate his loans;
however, the bill does allow a borrower to move into the DL
program for purposes of avoiding default by utilizing income
contingent repayment. The bill also eliminates in-school
consolidation in the FFEL program and closes a loophole in the
consolidation loan program that permits borrowers to re-
consolidate by switching between the FFEL and DL programs. H.R.
609 eliminates the single holder rule but requires that a
borrower notify the holder of his loans of his intent to
consolidate if all of the loans are held by one lender. In
addition, the bill requires lenders provide the borrowers with
more information, such as the benefits the borrower could be
losing by consolidating, when the borrower requests to
consolidate his loans. Taken together, these two reforms give
greater flexibility for borrowers to choose their consolidation
lender and ensure the borrowers are given all the information
about the advantages and disadvantages of consolidating his
loans.
The bill makes several conforming and technical amendments
within the special allowance section. The bill also requires
lenders to rebate to the government their ``floor income.''
Floor income is a benefit to lenders that takes place when the
fluctuating guaranteed rate of return for lenders is lower than
the fluctuating borrower interest rate. During this period,
current law permits the lender to keep the higher amount being
paid by the borrower, rather than just retaining the lender's
guaranteed rate of return. H.R. 609 requires the lender only
receive its guaranteed rate of return and rebate to the
government the difference between lender yield and the
borrower's interest rate, when the borrower rate is higher.
H.R. 609 also permanently closes the 9.5 percent subsidy by
extending the Taxpayer-Teacher Protection Act (P.L. 108-409)
and shutting down the ability of lenders to recycle additional
loans to gain the minimum 9.5 percent special allowance.
H.R. 609 requires guaranty agencies to charge the one
percent Federal default fee on loans disbursed on or after July
1, 2006. This fee is already included in current law, but the
guaranty agencies have the ability to waive the fee. The fee
will be deposited in the guaranty agencies' Federal Student
Loan Reserve fund. The bill also phases down the origination
fee charged on FFEL Stafford loans from three percent to zero
percent over the course of the reauthorization. H.R. 609 also
phases down the origination fee required on Direct Loans from
the statutorily required four percent to one percent by 2010.
The bill also prohibits the Secretary of Education from waiving
this fee as a repayment incentive and prohibits any sort of
repayment incentive being given prior to the borrower entering
repayment. By 2010, students will only be charged a one percent
fee on their student loans in both the FFEL and the DL
programs.
To prevent against further fraud and abuse within the
student loan program, H.R. 609 requires the disbursement of
Federal loan funds to students attending foreign schools to be
sent to the institution.
The bill aligns the DL extended repayment plan with the
FFEL extended repayment plan. The bill also requires a borrower
to take into account his or her spouse's income when
determining income for purposes of the income contingent
repayment plans. H.R. 609 also creates a new interest only
repayment plan under which the borrower would only pay the
interest on the loan for the first two years. This plan was
created in both the FFEL and Direct Loan programs.
The bill adds a new deferment option for student loan
borrowers (either in the FFEL or DL program) that are serving
in the U.S. Armed Forces.
H.R. 609 authorizes additional areas for discretionary loan
forgiveness in both the FFEL and DL programs, including early
childhood educators, nurses, foreign language specialists,
librarians, bilingual educators, first responders in low income
areas, child welfare workers, speech language pathologists and
other areas of national need as designated by the Secretary.
The bill also makes permanent mandatory teacher loan
forgiveness for highly qualified math, science and special
education teachers teaching in public or private schools and
adds a new teacher loan forgiveness option for reading
specialists. The bill increases risk sharing for the lenders
and guarantors in the FFEL program by lowering the lender
insurance from 98 percent to 96 percent and the guarantor
reinsurance from 95 percent to 93 percent. H.R. 609 also grants
100 percent insurance for claims with respect to loans for
which it is determined that the borrower, without the lender's
knowledge, provided false information when the loan was made
that caused the loan to be ineligible for interest benefits
under the Federal loan programs. The bill also tightens the
requirements on the exceptional performance program and lowers
the insurance from 100 percent to 98 percent. H.R. 609 lowers
the amount guarantors are permitted to keep as collection costs
from 18.5 percent to 10 percent if the borrower consolidates a
defaulted loan rather than pursuing rehabilitation. In
addition, H.R. 609 imposes a limit of 45 percent on the amount
of a guarantor's collections portfolio that can be in
consolidation loans. The bill also lowers the number of
payments for a borrower to rehabilitate the loan from 12 to 9
and infuses more requirements of financial literacy into
borrower education initiatives.
H.R. 609 adds a provision that requires parents to repay
loan funds obtained by fraud before any additional funds can be
taken out if the parents are convicted of fraud in the student
loan programs.
The school as lender program provisions are reformed to
clarify that schools can only lend to graduate students and any
profits made by the school must be put toward need based aid.
To ease the burden on student loan borrowers that are
already facing formidable challenges due to a disability, H.R.
609 provides that if the Veterans Administration or the Social
Security Administration determines an individual to be totally
and permanently disabled, the Secretary of Education shall
accept that determination and the borrower need not provide the
Secretary of Education with additional paperwork for the
discharge of student loan obligations.
H.R. 609 also eliminates the requirement that a forbearance
agreement be in writing in the FFEL and DL programs, and
instead requires that a notice of forbearance agreement be sent
to the borrower and kept in the borrower's file.
Teacher loan forgiveness
H.R. 609 makes permanent an increase in the allowable
maximum loan forgiveness for math, science, special education
teachers and reading specialists in the FFEL and the DL
programs from $5,000 to $17,500. This loan forgiveness was
originally included for one year in the Taxpayer-Teacher
Protection Act of 2004 (P.L. 108-409). This increased loan
forgiveness is available for highly qualified math, science and
special education teachers and reading specialists teaching in
high need, title I schools. The loan forgiveness passed by the
Congress last year, and made permanent in H.R. 609, coordinates
the requirement for teachers to be highly qualified, as well as
the poverty level for school wide programs, as defined in the
No Child Left Behind Act, with eligibility for all teacher loan
forgiveness.
Perkins loan program
The Perkins loan program is reauthorized through fiscal
year 2011. As with the other two campus based aid programs, the
base guarantee is also phased out for the Perkins loan program
and the allocation of funds is replaced with the fair share
formula calculation. H.R. 609 increases the annual maximum loan
limits from $4,000 to $5,500 for undergraduates and from $6,000
to $8,000 for graduate or professional students. Additionally,
the aggregate loan limits are increased from $20,000 to $27,500
for undergraduates and from $40,000 to $60,000 for graduate and
professional students. The bill conforms forbearance
requirements in Perkins to FFEL and DL to state that a borrower
need not request the forbearance in writing. H.R. 609 also
allows institutions to negotiate compromise payments on
defaulted Perkins loans. The bill conforms the rehabilitation
provision in Perkins to that in FFEL and DL by requiring 9 on-
time, consecutive monthly payments, rather than 12. H.R. 609
also allows for greater cancellation opportunities for members
of the Armed Services and gives them the same consideration as
is given to teachers, full-time law enforcement officers and
nurses.
Need analysis
H.R. 609 simplifies and expands the eligibility of families
to utilize the Simplified Needs Test for need analysis to
include those already receiving benefits under a means-tested
Federal benefit program, which is defined in the bill. The bill
also authorizes the Secretary to regularly evaluate the impact
of these eligibility guidelines and ensure that the Simplified
Needs Test continues to be targeted to the maximum number of
low- and moderate-income students as possible.
H.R. 609 calls for improvements to the paper and electronic
Free Application for Federal Student Aid (FAFSA). The bill
directs the Secretary to permit applicants to complete their
FAFSA in the three years prior to enrollment in order to obtain
a non-binding estimate of the family contribution. The bill
also authorizes an evaluation by the Secretary to determine
differences between initial, non-binding early estimates and
the final financial aid award made to the student.
Additionally, H.R. 609 authorizes the Secretary to develop and
use a simplified paper application form to be known as the EZ-
FAFSA for applicants who meet the requirements of eligibility
for the Simplified Needs Test. The Secretary shall annually
report to Congress on the impact of the digital divide on
students completing applications for Federal student aid and
also report on the steps taken to phase out the paper form as
barriers to the electronic form are eliminated. In addition to
the EZ-FAFSA, the Secretary shall develop and use a simplified
electronic application with reduced data elements and state
data that only applies to the applicant.
For all forms, the Secretary shall ensure that data
collection complies with privacy requirements and that all
forms developed shall maintain reasonable and appropriate
administrative, technical, and physical safeguards to ensure
the integrity and confidentiality of the information.
H.R. 609 authorizes a streamlined reapplication process for
students and further encourages the Secretary to work to reduce
the number of data elements on the FAFSA. The Secretary shall
encourage States to take such steps as necessary to encourage
the use of simplified application forms and conduct an annual
review to determine which forms and data items the States
require to award need-based State aid to applicants.
The bill makes clear that the FAFSA, in whatever form it is
produced, shall be produced, distributed, and processed by the
Secretary and no parent or student shall be charged a fee for
the collection, processing or delivery of financial aid through
the use of the FAFSA.
The bill clarifies that a student who is an orphan, in
foster care, or is a ward of the court, or was in foster care
or a ward of the court until the age of 18, is considered an
independent student. H.R. 609 also treats active duty members
of the military as independent students for the purposes of
need analysis. H.R. 609 clarifies that a student's status as a
ward of the court prior to 18 years of age, a student's status
as an individual adopted at or after age 13, or a student's
status as a homeless or unaccompanied youth can be considered
as a ``special circumstance'' for the purposes of awarding
title IV Federal financial aid.
The bill increases the dependent student work protection
allowance from $2,200 to $3,000. H.R. 609 excludes
distributions from eligible 529 plans from counting as income
or a resource and equalizes the treatment of both tuition
savings plans and pre-paid tuition plans in the need analysis
formula. Under the bill, plans will be treated as assets of the
parents for dependent students and assets of the student for
independent students. H.R. 609 provides for an exception to be
made to the need analysis formula for families that own small
businesses that employ less than 100 full-time equivalent
employees. The bill also provides for a clarification to the
need analysis formula for students who receive a stipend from
their State as a replacement for the direct appropriation of
funds to the institution of higher education.
Definitions of academic year and eligible program
H.R. 609 provides simplification for clock hour schools
within the definition of an academic year in terms of the
number of weeks required. The bill reduces a 30-week
requirement to 26 weeks, while retaining the requirement for
900 hours to constitute a full academic year. Additionally, the
bill recognizes that an eligible program can include an
instructional program that utilizes direct assessment of
student learning, in lieu of credit or clock hours.
Distance education
The bill amends the definition of distance education as an
eligible program for title IV student aid purposes as a program
that is offered in whole or part through telecommunications, if
provided by an accredited institution of higher education,
other than a foreign school. The accreditor that accredits the
institution must have the evaluation of distance education
within its scope. The bill eliminates the connection between
correspondence and telecommunications for the purposes of the
repeal of the 50 percent rule and title IV program
participation.
Expanding information dissemination regarding eligibility
for Pell Grants
H.R. 609 requires the Secretary to make a special effort to
notify students and parents who qualify for free lunch, food
stamps, or other such programs, of their potential eligibility
for a maximum Pell Grant.
Student eligibility
The bill amends various provisions concerning student
eligibility. Students who are convicted of title IV program
fraud are required to repay the funds they fraudulently
obtained to the Secretary or the holder of the loan. Second,
individuals who are subject to involuntary civil commitments
upon completion of a period of incarceration for sexual
offenses are not eligible for Pell Grants. Third, the bill
clarifies eligibility for students from the Freely Associated
States for Pell Grants.
H.R. 609 authorizes the Secretary of Education to work with
the Secretary of the Treasury to provide for an IRS data match.
The bill clarifies that the suspension of eligibility for
drug offense convictions occurs only for those students
enrolled in an institution of higher education and receiving
title IV aid when convicted of their offense. H.R. 609 also
requires the institution of higher education to inform students
of the possibility of suspension of eligibility for title IV
aid for drug related offenses.
Institutional refunds
H.R. 609 allows an institution of higher education to
contact a student who may be eligible for a late disbursement
of loan funds and get the borrower's agreement before
disbursing the funds. The bill also provides an institution
with 45 days from the date of determination that a student has
withdrawn to return loan funds. H.R. 609 permits the Secretary
to waive the amounts that students are required to return to
the government with respect to Pell Grant funds if the
withdrawal is due to a major disaster, declared by the
President.
Institutional and financial assistance information for
students
The bill ensures that institutional and financial
assistance information that is provided to students is made
publicly available through appropriate publications, mailings,
electronic media, and accrediting agency reports. H.R. 609
expands the information an institution provides to students
regarding academic programs to include the institution's
educational mission and goals. Additionally, the institution is
responsible for providing the student with a summary of student
outcomes for full time undergraduate students that includes
completion and graduation rates of certificate and degree-
seeking students, as well as any additional qualitative or
quantitative outcome data reflective of distance education
outcomes or licensing and placement rates for professional and
vocational programs. The bill provides students the opportunity
to register complaints about the institution with the
institution or programmatic accreditor. H.R. 609 requires the
institution to notify the student regarding the acceptance or
denial of academic credit earned at another institution of
higher education and maintain a policy that the denial of
credit will not be based solely on the source of accreditation
of a sending institution, provided that the sending institution
is accredited by an agency or association that is recognized by
the Secretary.
The bill does clarify that the provision does not authorize
any employee at the Department of Education to exercise any
direction, supervision, or control over the curriculum, program
of instruction, administration or personnel of any institution
of higher education or any accrediting agency or association
regarding the transfer of credit policy. H.R. 609 permits
institutions to provide supplemental data to enrolled and
prospective students that demonstrate evidence of student
participation in educationally purposeful activities.
The bill requires institutions of higher education to
include in their exit counseling materials the same consumer
protection language required by lenders with regard to
consolidation loans. H.R. 609 also clarifies that foreign
institutions are not required to report data dealing with
campus crime, as these institutions do not utilize similar
crime definitions and do not abide by similar reporting
requirements as domestic institutions of higher education.
H.R. 609 requires institutions of higher education to file
a fire safety report with the Secretary detailing campus fire
safety practices and standards.
College Access Initiative
The bill creates a new section, the College Access
Initiative that is intended to provide outreach and better
information regarding student financial aid and access programs
to students and their families. The College Access Initiative
requires guaranty agencies to gather information on programs
and student aid available in the State in which they are
designated. That information must be made available to the
public and reported to the Secretary to establish a directory
of programs and provide for access to the information through
the Internet and any other means determined by the Secretary.
Each guaranty agency shall establish a plan to gather and
disseminate the information required and the plan shall include
how the agency will undertake the task, how it will publicize
the information gathered, and how it will coordinate with other
entities in the State. Information collected by the guarantors
will include resources on college planning, career preparation
and paying for college. Guarantors may utilize funds from their
operating fund and if any funds remain, they may use funds from
their former restricted accounts.
Distance Education Demonstration Program
H.R. 609 reauthorizes and amends the Distance Education
Demonstration Program to allow up to five degree-granting,
accredited correspondence schools to participate. The bill also
increases the number of institutional and consortium
participants from 35 to 100.
College Affordability Demonstration Program
The bill authorizes a College Affordability Demonstration
Program that will foster increased innovation in the delivery
of higher education and student financial aid in a manner that
results in reduced costs for students as well as the
institution. Strategies that can be employed could include:
accelerated degree or program completion, increasing
availability of and access to distance education, and engaging
in collaborative arrangements with other institutions and
organizations. The College Affordability Demonstration Program
is open to no more than 100 institutions of higher education,
including those applying as part of systems or consortia and
does not include foreign schools. At the conclusion of the
Demonstration, the Secretary shall review current law rules and
regulations and identify those that present impediments to the
implementation of innovations that result in cost savings and
in expanding access to education.
Program Participation Agreements
The bill clarifies that an institution of higher education
is permitted to provide voter registration materials
electronically to enrolled students.
The bill also amends the Program Participation Agreement
(PPA) by moving the 90/10 rule for proprietary institutions
from eligibility criteria for the for-profit sector to the PPA
and further defining the 10 percent portion of the ratio. The
new 90/10 rule now applies to all institutions of higher
education and counts the following funds toward the 10 percent:
(1) funds used by students to pay tuition, fees and other
institutional charges from sources other than title IV funds;
(2) institutional funds used to satisfy matching-fund
requirements for programs under title IV; (3) funds from
savings plans for educational expenses established by the
Internal Revenue Code of 1986; (4) 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; and (5) institutional aid (in the case of
loans, only the amount of loan repayment received during the
fiscal year and in the case of institutional scholarships, only
those provided by the institution in the form of monetary aid
or tuition discounts). If the institution fails to comply with
the 90/10 rule for three consecutive years, the institution
shall become ineligible to participate in the title IV
programs. The Secretary may also place the institution on
provisional certification or require other such monitoring and
reporting that is necessary for the institution to demonstrate
compliance. The Secretary shall identify on the College
Opportunities On-Line (COOL) website those institutions that
fail to meet the 90/10 rule in any given year.
H.R. 609 also requires institutions of higher education,
within one year of the date of enactment, to disclose to an
alleged victim of any crime of violence or non-forcible sex
offense, the final results of any disciplinary proceeding. If
the victim is deceased, that information shall be disclosed to
the victim's next of kin.
Program integrity
H.R. 609 permits States to be able to apply to the
Secretary for approval as a recognized accreditor.
The bill clarifies that accreditors who seek to have
distance education in the scope of their accrediting process
must demonstrate to the Secretary that the accreditation
agency's or association's standards effectively address the
quality of an institution's distance education programs, but
the accreditors are not required to have separate standards,
procedures, or policies for the evaluation of distance
education or programs. The bill also requires that an
institution that offers distance education programs have
processes by which it establishes that the student who
registers in a distance education course or program is the same
student who participates, completes academic work, and receives
academic credit. H.R. 609 ensures that accrediting agencies or
associations shall take into account the institution's stated
missions, including religious values, when evaluating the
institution for accreditation in a particular program.
H.R. 609 clarifies that student achievement success must be
measured against the relevant performance data and measures
that the institution determines to be necessary to evaluate or
strengthen its programs. The bill also clarifies that the
accreditor must take into consideration fiscal administrative
capacity and board governance, in the context of the
institution's mission, when evaluating an institution.
In order to clarify the due process protections provided to
the institution by the accrediting process, H.R. 609 calls for
accrediting agencies and associations to establish and apply
review procedures throughout the accrediting process, including
evaluation and withdrawal proceedings that comply with due
process requirements. These requirements include: (1) adequate
specification of requirements and deficiencies at the
institution or program being examined; (2) an opportunity for a
written response by any such institution to be included in the
evaluation and withdrawal proceedings; (3) an opportunity for
the institution to appeal any adverse action at a hearing prior
to such action becoming final before an appeals panel; and (4)
the right to representation by counsel for an institution.
The bill requires accrediting agencies and associations to
make public a summary of agency or association actions
including final denial, withdrawal, suspension or termination
of accreditation or any other final adverse action taken with
respect to an institution.
H.R. 609 amends the accrediting agency and association
operating procedures to include a provision under which
agencies and associations confirm that institutions have
transfer of credit policies that are publicly disclosed and do
not call for the denial of credit transfer based solely on the
accreditor of the sending institution as long as the agency or
association is recognized by the Secretary of Education.
Additionally, accrediting agencies and associations are
required to develop a brief summary, which should be made
available to the public that details final adverse actions
against institutions of higher education. The agencies and
associations are also required to monitor the enrollment growth
of distance education programs to ensure that an institution
experiencing significant growth has the capacity to serve its
students effectively. H.R. 609 also requires that the agencies
and associations publicly disclose a list of the individuals
who comprise the evaluation teams and a description of the
agency's process for selecting, preparing and evaluating its
evaluation team volunteers; as well as any statements related
to the accreditation responsibilities of such individuals.
Lastly, the bill requires that the agency or association review
any record of student complaints received. The Secretary is
required to provide the Congress with an annual report on the
status of any accreditation agency or association whose
evaluation scope has been limited, or that has been suspended
or terminated from recognition.
During program reviews, H.R. 609 requires the Secretary to
provide the institution with adequate opportunity to review and
respond to any program review report or audit finding before
the final program review or audit determination is reached.
Additionally, the bill requires the Secretary to take into
consideration the institution's response in any final program
review or audit determination. Under the bill, the Secretary
shall include in the response a written statement addressing
the institution's response and stating the basis for the final
determination. H.R. 609 also requires that the Secretary
maintain and preserve at all times the confidentiality of any
program review report or audit finding until a final program
review or audit determination has been issued. Lastly, the bill
requires that the authority to approve or issue any program
review report or audit finding, preliminary or otherwise that
exceeds $500,000 not be delegated to any officer other than the
Chief Operating Officer of Federal Student Aid at the
Department of Education.
Report to Congress on prevention of fraud and abuse in
student financial aid programs
H.R. 609 authorizes the Secretary to commission a
nonpartisan, comprehensive study on the prevention of fraud and
abuse in title IV student financial aid programs and report the
results to Congress not later than December 31, 2007.
Title V--Developing Institutions
Title V of H.R. 609 amends provisions and programs under
title V (Developing Institutions) of the Higher Education Act
and reauthorizes title V through fiscal year 2011.
H.R. 609 amends the definition of an eligible Hispanic
Serving Institution (HSI) and clarifies when an institution's
eligibility is determined. The bill also requires that the
institution offer not less than a two-year program that is
eligible for credit toward a bachelor's degree in order to be
eligible under title V. H.R. 609 also provides for a use of
funds that will allow these institutions to use their grant
funds to educate or counsel students and their families on
economic and financial literacy. The bill will also allow HSIs
to acquire real property adjacent to the campus with title V
funds. Additionally, the bill allows these institutions to use
their grant funds to establish community outreach programs and
partnerships between HSIs and local elementary and secondary
schools. H.R. 609 repeals the two-year wait out period for
HSIs. The bill also establishes a graduate program for HSIs.
Title VI--International Education
Title VI of H.R. 609 amends the programs under title VI
(International Education Programs) of the Higher Education Act
and reauthorizes title VI through fiscal year 2011.
The bill creates a new International Education Advisory
Board for all title VI programs to increase accountability by
providing advice, counsel, and recommendations to the Secretary
of Education and the Congress on international education issues
for higher education. H.R. 609 also requires the Secretary of
Education to take into account the degree to which activities
of the centers, programs, and fellowships at institutions
funded by title VI advance national interests, generate and
disseminate information, and foster debate on international
issues from diverse perspectives.
In order to ensure that students of all ages are exposed to
international education, the bill encourages and strengthens
international knowledge at all stages of education by allowing
centers and programs funded by title VI to serve as a national
resource for courses and materials for use in elementary and
secondary schools.
The bill allows more of the overall title VI funds to be
used for undergraduate education and also permits 10 percent of
a project's funds to be used for sending undergraduate students
on educational programs abroad. Additionally, the bill stresses
the importance for institutions to promote the safety of
students in study abroad programs.
Noting that minority serving institutions may not have the
capacity to provide matching funds for the programs under title
VI, the bill adds a special rule to the programs in the title
that allows the Secretary to waive or reduce the non-Federal
match for Historically Black Colleges and Universities,
Hispanic Serving Institutions, Tribally Controlled Colleges and
Universities, and Alaska-Native and Native-Hawaiian Serving
institutions.
The bill clarifies that the Institute for International
Public Policy (IIPP) include all underrepresented populations
in its program in order to enhance participation in
international service. The International Studies in Higher
Education Act also names students who participate in graduate
or undergraduate internship programs through the IIPP as the
``Ralph J. Bunche Fellows.''
Title VII--Graduate Education
Title VII of H.R. 609 amends the programs under title VII
(Graduate Education Programs) of the Higher Education Act and
reauthorizes title VII through fiscal year 2011.
Jacob K. Javits Fellowship Program
The bill permits military personnel to interrupt Javits
fellowship study when called to active duty, and requires the
Javits fellowship board to include members from diverse
geographic regions as well as at least one representative from
a minority serving institution. The bill aligns the stipends
for Javits fellowships to the National Science Foundation (NSF)
Graduate Research Fellowship program.
Graduate Assistance in Areas of National Need
Within the Graduate Assistance in Areas of National Need
(GAANN) program, the bill establishes a competitive priority
for grants to those preparing math, science and special
education faculty, as well as those preparing faculty to teach
teachers of limited English proficient individuals. The bill
aligns the stipends for GAANN fellowships to the NSF Graduate
Research Fellowship program.
The Thurgood Marshall Legal Educational Opportunity Program
The College Access and Opportunity Act clarifies the grant
authority within the Thurgood Marshall Program.
Fund for the Improvement of Postsecondary Education (FIPSE)
The bill encourages the recognition of innovative reform
programs with the Fund for the Improvement of Postsecondary
Education (FIPSE) program for non-traditional student
populations and programs that work to improve secondary school
and college graduation rates. The bill also provides for
special projects within FIPSE to include partnerships to
develop dual enrollment programs and articulation agreements;
international partnerships with postsecondary institutions
abroad; encourages the establishment of academic programs that
teach traditional American history; and provide funds for
institutions of higher education that want to provide services
to disadvantaged communities.
Urban Community Service program
The bill repeals the Urban Community Service program.
Demonstration Projects to Ensure Students with Disabilities
Receive a Quality Higher Education
The bill provides for new authority within the
Demonstration Projects to Ensure Students with Disabilities
Receive a Quality Higher Education Program to assist with
students' transition between secondary and postsecondary
education.
Title VIII--Clerical amendments
Title VIII makes technical and clerical amendments to the
Act.
Title IX--Amendments to other education laws
Education of the Deaf Act of 1986
Title IX of H.R. 609 amends multiple education laws. The
first is the Education of the Deaf Act of 1986, which
authorizes and provides support for Gallaudet University and
the National Technical Institute for the Deaf (NTID). H.R. 609
reauthorizes the Education of the Deaf Act of 1986 through 2011
and includes amendments to several provisions of the Act.
First, H.R. 609 identifies the Laurent Clerc National Deaf
Education Center as the entity responsible for K-12 education
programs at Gallaudet University. Second, the bill requires
Gallaudet University to develop academic content standards,
academic achievement standards, and academic assessments
consistent with the No Child Left Behind Act for the elementary
and secondary programs operated at the Laurent Clerc National
Deaf Education Center. Third, the bill deletes the unnecessary
definition of ``institution of higher education.'' Fourth, the
bill slightly alters the reporting requirements for the NTID
and Gallaudet University to require information about the
disposition of students within one year of graduation or
completion of their program. Fifth, the bill codifies the
relationship between the Secretary of Education and the
Rochester Institute of Technology for the operation of the
NTID. Sixth, the bill includes several technical amendments,
including updates to references to the authorizing committees
of Congress. And, finally, the bill changes the name of the Act
to the ``Gallaudet University and National Technical Institute
for the Deaf Act.''
Cancellation of student loan debt for survivors of victims
of the September 11, 2001 attacks
H.R. 609 provides for cancellation of student loan debt for
survivors of victims of the September 11, 2001 terrorist
attacks.
Repeals of expired and executed provisions
The bill repeals the following provisions from the Higher
Education Act Amendments of 1998: the Study of Market
Mechanisms in Federal Student Loan Programs, the Study of
Feasibility of Alternative Financial Instruments for
Determining Lender Yields, the Student Related Debt Study, the
Study of Opportunities for Participation in Athletic Programs,
the Community Scholarship Mobilization program, the
Incarcerated Youth program, the Improving United States
Understanding of Science, Engineering, and Technology in East
Asia program, and the Web-Based Education Commission.
Extensions of authorizations and studies
H.R. 609 extends the authorizations for the Transfer of
Credit study, the Cohort Default Rate study, the Violence
Against Women program, and the Underground Railroad program.
Tribally Controlled College or University Assistance Act of
1978; Navajo Community College Act; Education
Amendments of 1992
The bill reauthorizes the Tribally Controlled College or
University Assistance Act of 1978 and makes clarifying changes
to provisions concerning Indian student count and
accreditation. H.R. 609 reauthorizes the Navajo Community
College Act and the provisions in the Education Amendments of
1992.
Studies and Sense of the Committee
H.R. 609 authorizes four new studies, including: a Study of
Student Learning Outcomes and Public Accountability, a Study of
Minority Graduation Rates, a Study of Education-Related
Indebtedness of Medical School Graduates, and a Study of Adult
Learners. The bill also contains a Sense of the Committee on
Education and the Workforce regarding college textbook prices.
Committee Views
In 1965, the Higher Education Act was established as a
means to help low- and middle-income students gain access to
college. The Higher Education Act represented the vision that a
college education should be available to students from all
walks of life, from across geographic regions, and from varying
financial circumstances. The Higher Education Act was not
created as a new postsecondary infrastructure to support or
control colleges and universities; the investment was and still
is primarily targeted to students themselves. The Higher
Education Act is unique in its focus on providing students with
a portable funding source that they may use at the institution
of their choosing, modeling the success that can be achieved
through authentic educational choice.
Since its inception four decades ago, the Higher Education
Act has provided hundreds of billions of dollars to students,
as well as significant resources to colleges and universities
themselves. The Higher Education Act is responsible for helping
generations of American students successfully complete
postsecondary studies and reap the benefits that come with
higher education. Yet despite this clear success, the Committee
believes the Higher Education Act has failed to achieve a
fundamental goal: lowering the cost of a college education. For
every increase in Federal student aid, it seems there is a
larger increase in college tuition. The result is an unending
spiral of financial confusion that leaves far too many American
students unable to pursue a college education.
The Committee believes reauthorization of the Higher
Education Act is a vital opportunity to reassess the
effectiveness of the Federal investment in higher education;
realign our priorities to ensure the focus of the Higher
Education Act is students; and redefine what it means to hold
colleges and universities accountable. Policymakers have an
opportunity--and an obligation--to enact meaningful reforms on
behalf of American students, families, and taxpayers.
The College Access and Opportunity Act, H.R. 609, reflects
four principles for reform that guided the Committee's efforts
throughout the reauthorization process. Those principles are:
affordability, accessibility, accountability, and quality.
The first principle, affordability, cannot be achieved
through Federal intervention alone. Colleges and universities,
states and local communities, business interests, and students
and parents must all work together to develop solutions to the
affordability crisis in American higher education. However,
there is a Federal role to play, and to that end, H.R. 609
seeks to make postsecondary education more affordable through
two distinct approaches. First, the bill strengthens and
updates the Federal student aid programs to better reflect the
current higher education climate. Second, the bill shines a
spotlight on the college cost issue to empower consumers as
they make decisions in the college marketplace.
The second principle, accessibility, also requires input
and involvement from all higher education stakeholders. While
affordability is one key to accessibility, the issue of college
access is not simply a question of cost. To expand college
access, H.R. 609 includes a multitude of reforms aimed at
meeting the needs of non-traditional college students. The face
of the higher education population is changing, and Federal
programs must be flexible and dynamic in serving the growing
number of Americans from differing backgrounds pursuing higher
education. The College Access and Opportunity Act adds new
flexibility to allow programs and institutions to serve the
changing needs of their students. The bill embraces advances in
technology such as distance learning that can open the doors of
higher education to new segments of the population. The
Committee also believes college access is not just about
getting students in the door, but ensuring their persistence
and success. For that reason, the bill seeks to break down
barriers to college credit transferability to allow an
increasingly mobile student population to plan ahead to
transfer from one institution to another and ultimately
complete their education.
The third principle, accountability, is a term that has
become almost synonymous with education reform in recent years.
However, accountability has a different connotation in the
context of higher education than that commonly associated with
K-12 education reform. In higher education, accountability can
be best understood as a means for higher education consumers--
students and parents, as well as all American taxpayers--to
access information. It is often said that knowledge is power,
and in higher education, the Committee believes that adage
holds true. By providing consumers with access to information,
they will be empowered with the knowledge they need to make
their own best decisions in the college marketplace. The very
nature of Federal higher education support--primarily a
portable funding source that students spend at the institution
of their choosing--demands that accountability will be in
service to that consumer.
Finally, the fourth principle, quality, must be understood
within the realm of the vast diversity of America's higher
education system. There is no single, standard measure of
quality that can be applied to all institutions or sectors of
higher education. Institutions have differing missions.
Students have differing goals within their postsecondary
pursuits, and as such, seek differing measures by which they
may judge quality. For these reasons, the Committee believes
there cannot be a single Federal measure of quality, but rather
the Federal government can help facilitate opportunities for
institutions, students, and the public to make their own
determinations of what constitutes a quality higher education.
To that end, H.R. 609 focuses on greater transparency within
the accreditation process and for the data colleges and
universities report to the Federal government and made
available to the public.
Education beyond high school is becoming increasingly vital
to the success of individual Americans, and to our society as a
whole. As the Committee helps shape the future of higher
education policy, it must bear in mind the vast growth in
higher education participation that is yet to come. H.R. 609
will help update America's higher education system to meet the
challenges of the future, and to ensure the Federal investment
in higher education continues to be as effective and efficient
as it can be.
Historically speaking, and perhaps even more so today,
Federal involvement in higher education is primarily viewed in
financial terms. The Committee believes this emphasis on
funding has both positive and negative implications for
students and taxpayers. On the positive side, the Committee
strongly believes that what has made the Higher Education Act
so effective is that it targets funds directly to students. The
Higher Education Act is a shining example of how educational
freedom encourages competition and serves students by allowing
them to make decisions about what educational opportunity will
best meet their needs. On the negative side, the Committee
believes the vast Federal investment has allowed America's
higher education system to become complacent in its efforts to
expand service, increase efficiency, hold down costs, and
increase quality. Some would even argue that the infusion of
Federal resources has stifled the type of innovation and
competition that would exist in a more demand-driven system
that was not so dependent on third-party payments.
Funding for higher education has indeed gone up
dramatically in recent years. According to information from the
College Board in its 2004 Trends in Student Aid report,
Federally supported student aid programs have increased by 152
percent in the last decade. This includes increases in Pell
Grants, Supplemental Educational Opportunity Grants, Federal
Work Study, support for veterans and other military personnel,
and student loans. As the cornerstone of the need-based Federal
student aid programs, the increases in the Pell Grant program
are striking. Since Republicans gained control of the House of
Representatives in 1995, total Pell Grant funding has doubled,
increasing from $6.2 billion to $12.4 billion for fiscal year
2005 and the maximum Pell Grant award has increased from $2,340
to $4,050 in that same period.
The Committee is proud of the financial commitment Congress
has demonstrated in recent years toward higher education. This
support will continue. However, the Committee is concerned that
the value of this investment may be diminished by a lack of
market discipline, meaningful competition, and consumer
awareness. As such, the Committee believes that while the
financial focus of the Higher Education Act is important to its
success, there is also a need to refocus on the aforementioned
principles of access, accountability, affordability, and
quality.
Title I--General provisions
Through the College Access and Opportunity Act, the
Committee intends to restore fairness to the Higher Education
Act in its treatment of students from varying backgrounds
pursuing the common goal of accessing and succeeding in
postsecondary education. A college degree is viewed by many as
the gateway to the American Dream, and the Committee believes
students should be treated fairly and equitably as they strive
for their goals. In title I of H.R. 609, the Committee seeks
to: call upon the higher education community to engage in
efforts to rein in the dramatic tuition increases that threaten
college access for low- and middle-income students; ensure fair
recognition for institutions of higher education and the
students they serve; protect students' rights and individual
privacy; recognize the unique circumstances of students
educated in non-traditional settings such as home schools;
emphasize the importance of alcohol education; and ensure the
protection of individual students' personal information.
College cost
A college education has long been viewed as a ticket to
prosperity, the gateway to the American Dream. Today, higher
education is playing a more vital role than ever in shaping our
nation's competitiveness. However, America's higher education
system is in crisis. Decades of uncontrolled cost increases are
pushing the dream of a college degree further out of reach for
needy students. The crisis requires a dramatic response.
According to a 2002 report from the Advisory Committee on
Student Financial Assistance, cost factors prevent 48 percent
of college-qualified high school graduates from attending a
four-year institution, and 22 percent from attending any
college at all. The statistics are similarly bleak for middle
income students and families. At this rate, by the end of the
decade, more than two million college-qualified students will
be completely denied the opportunity for a postsecondary
education.
The Committee believes the college cost explosion is a
disturbing trend and one that cannot be allowed to continue.
Education, the great equalizer in our country, can bridge
social, economic, racial and geographic divides like no other
force. Parents, students and taxpayers are investing billions
of dollars in higher education each year, and institutions of
higher education must be accountable for ensuring that they are
getting a quality return on that investment.
For four decades, the Federal government has provided
significant funding to help ensure that students from low- and
moderate-income families are not prevented from receiving a
postsecondary education simply because of financial
circumstances. It is estimated by the Department of Education
that this year alone the Federal government is investing more
than $70 billion in financial aid awarded directly to students
through grants, Federally-guaranteed loans, work-study
opportunities, and various other financial assistance programs.
The Pell Grant program, which is the foundation of need-based
student aid, has received record support in the past ten years
under Republican-controlled Congresses. Additionally, total
program funding has doubled, the maximum Pell Grant award has
increased significantly, and more students than ever before are
gaining access to a college education with the help of Pell
Grants.
There is no question that the Federal contribution to
student aid programs has been significant, and has increased
much more quickly than the rate of inflation in order to keep
pace with college costs. However, college costs have risen
dramatically over the past three decades, and even the immense
Federal contribution has struggled to keep pace with
skyrocketing tuition increases. On April 19, 2005, the
Committee held a hearing to examine the issue of ``College
Access: Is Government Part of the Solution; or Part of the
Problem?'' During the hearing, members of Congress heard from
Dr. Richard Vedder, Distinguished Professor of Economics at
Ohio University:
There are two sectors of the economy where the
federal government involves itself heavily in financing
private transactions, namely health care and higher
education. It is not a coincidence that these are the
two sectors with the greatest amount of price inflation
in modern times. When the federal government increases
subsidized student loans, gives a Pell Grant, or grants
a tuition tax credit, it increases the number of
students wishing to attend college at any given tuition
fee. Indeed, that is the idea--the federal government
wants to provide access to persons who might not
otherwise go to college for financial reasons. In
short, federal policies increase the demand for
education relative to the supply, which pushes prices
or tuition fees up.
The idea of affordability in higher education is not a new
one, particularly for members of Congress. In 1997, Congress
established the National Commission on the Cost of Higher
Education. The Commission was to study the many factors
surrounding the rising costs of education, including trends
associated with those increases and all of the factors that go
into those costs. It was also to examine the extent to which
increases in institutional financial aid and tuition
discounting affected tuition increases. In its 1998 report,
``Straight Talk about College Costs and Prices,'' the
Commission cautioned:
Financing a college education is a serious and
troublesome matter to the American people. Members of
the Commission are equally convinced that if this
public concern continues, and if colleges and
universities do not take steps to reduce their costs,
policymakers at the Federal and state levels will
intervene and take up the task for them.
While the recommendations of the Commission have been
available since 1998, little progress has been made toward
implementing the strategies outlined to help rein in escalating
college costs. The Committee believes that if the college cost
crisis is to be resolved, a good faith effort must be made by
institutions of higher education and the greater higher
education community to acknowledge the problem and work toward
solutions. Additionally, it is the Committee's view that
keeping college affordable will help Federal student aid go
further for students and families and ensure that more students
can realize the dream of a higher education. In the
Commission's 1998 report to Congress, the Commission reported
that:
Institutions of higher education, even to most people
in the academy, are financially opaque. Academic
institutions have made little effort, either on campus
or off, to make themselves more transparent, to explain
their finances. As a result, there is no readily
available information about college costs and prices
nor is there a common national reporting standard for
either.
Although tuition and fee increases are clearly a nationwide
problem affecting students and families in all types of
institutions and courses of study, it is important to highlight
success as well as failure. Many institutions of higher
education, facing the same economic circumstances as the rest
of the higher education community, have chosen not to rapidly
increase tuition, and instead explore cost reduction measures,
find improvements in administrative efficiency, and work toward
numerous other strategies that seek proactive solutions to keep
college affordable. During the July 10, 2003 hearing in front
of the Subcommittee on 21st Century Competitiveness, entitled,
``Affordability in Higher Education: We Know There's a Problem;
What's the Solution?,'' Dr. Rolf Wegenke, President of the
Wisconsin Association of Independent Colleges and Universities
(WAICU) testified about his association's improvements in cost-
effectiveness, which has become a national model, and stated
that:
The WAICU Collaboration Project is a comprehensive
initiative to perform all administrative support (back
office) functions of Wisconsin's 20 private colleges
and universities on a collaborative basis. The
objectives are to save money, to improve the quality of
services to students, faculty, and staff, and to serve
as a national model for controlling college costs. This
project moves beyond incrementalism. Never before in
history have private colleges and universities
considered as extensive a consolidation of functions
short of an actual merger. It sends a message to the
entire nation that something transformative has taken
place.
The Committee believes that the college cost crisis is
unlikely to be solved by good intentions alone. Rather,
solutions will come from an increased awareness, understanding,
and commitment from the higher education community to not only
acknowledge the problem but work toward addressing it, and
broad cooperative efforts from all stakeholders in higher
education to make a concerted effort to improve the
affordability of higher education in America.
The College Affordability Index established in H.R. 609 was
an outgrowth of the concern over the ever-rising cost of
postsecondary education. H.R. 609 requires the Secretary to
ensure data regarding college costs is available in an easily
understandable and accessible format. The College Affordability
Index is simply a means to take existing information and
present it to students and families in a new format that can be
useful and accessible as they make decisions about what
institutions of higher education to attend. This index provides
an apples-to-apples comparison of tuition growth compared to
the growth in the Consumer Price Index (CPI).
Colleges and universities are already reporting on their
increases in tuition and fees. The College Affordability Index
simply compares that data to a widely-accepted standard for
measuring inflation, the CPI. The College Affordability Index
does not determine the quality of education, but it does allow
students and their families to determine what they can or
cannot afford when making decisions about what could be their
largest financial investment. Simply stated, if an institution
of higher education increases its tuition and fees more than
two times the CPI for an interval of three years, it warrants
additional attention.
The requirements in the bill simply ask that an institution
of higher education provide additional information to allow for
a clear and informed decision by consumers. If a student
decides to attend an institution that increases tuition and
fees that exceed the College Affordability Index, they do so
fully aware and educated. It is the Committee's position that
the Federal government does not currently have the authority to
dictate tuition and fee rates for institutions of higher
education. Under H.R. 609, that current practice remains the
same--the Federal government does not have the ability to set
tuition and fee rates for colleges and universities. The
provisions in the bill simply serve as a means by which
additional information can be provided to students and their
families so they can make informed and educated decisions about
their postsecondary education options based on trends in
college costs.
H.R. 609 provides needed comprehensive solutions to help
address college costs. The College Affordability Index infuses
some accountability and understandability to cost increases,
but the bill does much more than that. Additionally, the bill
seeks to proactively assist institutions of higher education to
find innovative solutions that will keep college affordable and
creates a College Affordability Demonstration initiative, which
provides 100 institutions of higher education with the
opportunity to waive statutory or regulatory provisions that
could lead the institution to lower costs and operating
expenses.
In a time when the cost of higher education continues to
skyrocket, families have the right to see in a clear and
uniform manner how much an institution of higher education
raises its tuition and fees.
Single definition
For many non-traditional college students, alternative
postsecondary education options such as community colleges,
degree-granting or certificate programs, proprietary schools,
and distance learning programs provide an important alternative
gateway to a college education. The College Access and
Opportunity Act updates legal definitions within the Higher
Education Act to ensure all eligible institutions are
recognized fully as institutions of higher education. The
current dual definition results in a tiered system that implies
some institutions are less worthy than others, or may not have
the same standing as part of our nation's higher education
system when it comes to providing opportunities to students.
During the June 16, 2004 hearing on, ``H.R. 4283, the College
Access and Opportunity Act: Are Students at Proprietary
Institutions Treated Equitably Under Current Law,'' Mr. David
Moore, Chairman and Chief Executive Officer of Corinthian
Colleges, Inc., stated:
A single definition would send an important signal to
these students that for-profit institutions represent
an equally valid option for the pursuit of their higher
education and training. It would say to these students
that, if they choose to seek the education, training,
and skills that they need to become productive members
of the economy at these institutions, they will not be
regarded under federal law as second class citizens.
The Committee believes in simply combining the two current
institutional definitions into one single, straightforward
definition of an institution of higher education while ensuring
funds historically awarded to community colleges and minority
serving institutions are preserved for these types of
institutions. Money that is awarded to institutions under title
III programs, mainly community colleges, and title V programs,
Hispanic-Serving Institutions (HSIs), would not be available
for award to for-profit institutions under H.R. 609. The bill
clarifies that outside of the Higher Education Act, proprietary
institutions will not automatically gain eligibility for
program participation, but policymakers will determine on a
case-by-case basis which sectors are eligible to receive
Federal funds.
Reforms such as the single definition of an institution of
higher education are a priority for the Committee, as they
create a level playing field for all sectors of higher
education. Proprietary, or for-profit, institutions of higher
education have become mainstream players in the world of higher
education options for students. These institutions have existed
since the 17th century, providing quick training in many
professional disciplines. The modern-day proprietary colleges
began to crop up on the higher education landscape after World
War II. The expanded Federal role in financing postsecondary
education through student financial aid, beginning with the
Higher Education Act of 1972 and the introduction of direct
grants to students now known as Pell grants, created incentives
for the entry and expansion of a wide range of proprietary
schools and expanded opportunities for students to attend
college.
Today, there are over 4,500 private for-profit institutions
educating millions of students in a wide range of occupational
programs, both degree- and non degree-granting. Most for-profit
institutions offer degrees previously considered to be the
domain of traditional colleges and universities. Complex and
converging forces, including demographic trends, shifts in the
job market, technological developments, and demands on higher
education from ongoing reforms and innovations have contributed
to the growth of the proprietary sector and have created a
phenomenal demand for higher education providers that the
traditional sector cannot meet alone.
Student speech and association rights
The Committee believes it is critical that students and
members of the campus community are able to exercise their
right to speak freely and express their views in organizations
and events on campus. Therefore, the Committee amended the
existing Sense of Congress on Student Speech and Association
Rights to ensure that institutions of higher education are
protecting these rights for students. These rights include that
students should be judged solely on their knowledge and
reasoned answers; that student funds should be used to present
diverse views at campus events, lectures and programs; that
institutions should present students with an array of material
in the instructional setting that include dissenting views; and
that students should not be unfairly punished because of their
ideology or political beliefs.
Further, the Committee recognizes that a good education
involves free academic inquiry and thought in all fields of
study. There is evidence to suggest, however, that both faculty
and students have been harassed or discriminated against
because of the expression of their personal or professional
judgments, opinions or beliefs that may be considered
political, ideological or religious. Sometimes these opinions
or beliefs may, in fact, be well-researched and intellectually
informed, but because they are deemed controversial, the
faculty or students who hold these beliefs may be harassed or
limited in some way from academic or professional advancement.
The Committee believes that such discrimination discourages the
type of intellectual curiosity necessary for a free, democratic
society to flourish and encourages universities to promote
intellectual pluralism within the context of the university's
institutional mission.
Home-school students
A growing number of Americans are receiving their
elementary and secondary education in a non-public, private, or
non-traditional campus setting. These programs are a valuable
part of our nation's efforts to prepare its youth for the
demands of a modern society. For example, the Committee
recognizes that home schooling is an effective and popular
means of educating an estimated two million students and is a
legal educational option available to parents and students in
all 50 states. Home schools comply with states' compulsory
attendance laws through specific home school provisions or
through provisions applying to private schools. Students
educated in these non-public, private, or non-traditional
schools acquire four years of academic requirements, generally
graduate with all the requirements of a college preparatory
diploma, and have a record of nationally standardized
achievement scores well above the national average, including
college admissions tests.
However, these non-traditional settings frequently do not
offer a seamless fit with traditional transcript formats and
admissions standards at institutions of higher education.
Unfortunately, some state university systems and individual
colleges and universities have failed to positively address
this issue, despite clear and specific language in the 1998
Committee Report on the Higher Education Act reauthorization.
The Committee understands that some community colleges,
individual colleges and universities, and state university
systems continue to require applicants from home school
settings to submit scores from additional standardized tests in
lieu of a transcript or diploma from an accredited high school.
The Committee strongly urges these institutions to take note of
the changes in this bill that accord the same admissions
standing for students graduating from a home school setting and
specifically clarify that these students have satisfied
secondary education standards.
The Committee recognizes students graduate from a home
school setting as high school graduates and recommends that
institutions of higher education adopt admissions policies and
practices that reflect this recognition. Given that
standardized test scores (ACT or SAT) and portfolios provide a
sound basis for an admission decision regarding these students,
the Committee recommends that colleges and universities
consider using these methods for assessing applicants educated
in home school settings rather than requiring them to undergo
additional types of testing which could be seen as
discriminating against these specific students and may have the
effect of discouraging these students from applying to certain
institutions, decreasing the diversity of opinions and
backgrounds that most institutions strive to achieve.
Accordingly, the Committee believes that in determining
requirements for admission, an institution of higher education
that receives Federal funds shall make every effort to evaluate
and treat applicants from home school settings fairly and in a
non-discriminatory manner. The Committee further encourages
institutions and systems of higher education to continue to
adopt admissions policies that reflect this sense of the
Committee, and to engage in a dialogue with parents, students
and other representatives of the home school community
regarding admissions policies that will best serve the
educational interests of home school graduates.
Alcohol and drug abuse
College and university presidents have cited alcohol
consumption as a major health problem on college and university
campuses. According to the National Institute on Alcohol Abuse
and Alcoholism, two of 5 college students are binge drinkers,
and 1,700 college students die each year from alcohol-related
injuries, the vast majority of whom are killed in traffic
accidents in which the victims or their friends were driving
drunk or impaired. Department of Education figures indicate
that between 30 and 40 percent of college and university
students are below the age of 21, and cannot legally consume
alcohol.
Advertising for alcoholic beverages, like all advertising,
can be seen by underage individuals even though they may not be
the intended audience. The Congress has urged all colleges and
universities to adopt policies limiting the advertisement and
promotion of alcoholic beverages on campus. Although a causal
link between advertising and youth consumption has not been
established, it is the opinion of the Committee that ongoing
efforts are necessary to ensure that alcohol advertising and
marketing remains directed at adult audiences. This
recommendation is consistent with existing voluntary
advertising codes and is not predicated on the argument that
banning the advertising will, in itself, reduce the prevalence
and intensity of drinking among underage college students.
Instead, the objective is to declare and affirm colleges'
genuine and consistent commitment to a policy of discouraging
alcohol use among underage students.
In addition to urging conscientious adherence to voluntary
advertising codes, the Committee urges all interested parties
to continue to build upon existing public-private partnerships
to restrict access to illegal underage individuals, encourage
the use of designated drivers, and other measures that would
improve the safety of students, residents of surrounding
communities, and all citizens using our highways.
Unit record system prohibition
The Committee believes that students pursuing higher
education have an expectation of basic privacy protections, and
that students should not be forced to relinquish their
fundamental privacy rights as a condition of attending an
institution of higher education. Further, the Committee
disagrees with claims that the only means of assuring
accountability in higher education is to collect and maintain a
vast, Federal database of private, personally identifiable
information about all students enrolled in higher education.
Accountability is among the core principles identified by the
Committee to help guide higher education reform, and the
Committee believes accountability will be achieved by placing
more information about colleges and universities into the hands
of students--not by placing information about students into a
massive new database that could compromise fundamental privacy
protections.
The Committee understands that the longitudinal sample
surveys carried out by the National Center for Education
Statistics, such as the Baccalaureate and Beyond Study, the
Beginning Post-Secondary Study, and the National Postsecondary
Student Aid Survey, involve the voluntary participation of
samples of students rather than the collection of extensive,
personally identifiable data on all students, and thus are not
subject to the prohibition.
Title II--Teacher preparation
The caliber of teacher education programs has come under
increased scrutiny over the past several years. Among other
things, teacher preparation programs have been criticized for
providing prospective teachers with inadequate time to learn
subject matter; for teaching a superficial curriculum; and for
being unduly fragmented, with courses not linked to practice
teaching and with education faculty isolated from their arts
and sciences faculty colleagues. In particular, there have been
concerns about high rates of failure of recent teacher college
graduates on initial licensing or certification exams.
According to the Congressional Research Service, one of the
most publicly reported instances of high failure rates was in
1998 when 59 percent of prospective teachers in Massachusetts
failed that State's new certification exam. The results raised
questions about the quality of the preparation and training
prospective teachers had received from teacher preparation
programs at institutions of higher education across the State.
In January 2002, President Bush signed into law the No
Child Left Behind Act, the bipartisan education reform package
that has infused accountability for results into K-12 education
in America. The No Child Left Behind Act calls for a highly
qualified teacher in every public school classroom by the end
of the 2005-2006 school year. In order to be highly qualified,
a teacher must obtain full State certification, a bachelor's
degree, and be able to demonstrate a high level of competency
in all subjects taught (by passing a rigorous State assessment,
completing an academic major for each subject taught, or
participating in a State approved review process).
Title II of H.R. 609 seeks to meet the call of the No Child
Left Behind Act to place a highly qualified teacher in every
classroom by making improvements that will help ensure teacher
training programs are producing well-prepared teachers who meet
the needs of America's students. H.R. 609 takes the important
step of aligning teacher training programs under title II of
the Higher Education Act with the high standards for teacher
quality found in the bipartisan No Child Left Behind Act. This
bill will help to ensure that teacher training programs are
fulfilling their obligation to those seeking to enter the
teaching profession--an obligation to ensure that teachers are
well-prepared to teach when they enter the classroom.
In general, H.R. 609 continues the current law structure of
title II of the Higher Education Act and authorizes three types
of competitive grants that each play a unique, yet critical
role in the education of tomorrow's teachers. Under the Higher
Education Act, 45 percent of the funds are reserved for State
grants, which must be used to reform teacher preparation
requirements and ensure that current and future teachers are
highly qualified; 45 percent of the funds are reserved for
partnership grants, which allow effective partners to join
together, combining strengths and resources to train highly
qualified teachers to achieve success where it matters most--in
the classroom; and 10 percent of the funds are reserved for
teacher recruitment grants, which will help bring high quality
individuals into teacher programs, and ultimately put more
highly qualified teachers into classrooms.
State grants
H.R. 609 authorizes States to use funds to design (or
redesign) teacher preparation programs so they are based on
rigorous academic content, scientifically based research
(including scientifically based reading research), and
challenging State academic content standards. As a result,
States will be able to strengthen teacher preparation programs
by setting higher standards for what potential teachers need to
learn as part of their instruction and ensure more teachers
leave these programs ready to meet the ``highly qualified''
definition for teachers established under the No Child Left
Behind Act.
On May 20, 2003, the Subcommittee on 21st Century
Competitiveness held a hearing entitled ``America's Teacher
Colleges: Are They Making the Grade?'' The purpose of this
hearing was to discuss whether teacher colleges and other
teacher preparation programs are producing a high quality
teaching force. Kati Haycock, Director of the Education Trust,
testified during the hearing that:
Discussions of teacher quality are inadequately
informed by data regarding what makes the biggest
difference in student learning. As the U.S. Government
Accountability Office has reported, the U.S. Department
of Education has granted almost half a billion dollars
($460 million) in HEA Title II funds but there is no
consistent, reliable way to evaluate the effect of
these grants on raising student achievement. State
Grants should be limited to states that are willing to
establish data systems to evaluate the efficacy of
teacher training programs and professional development
activities on improving teacher effectiveness.
Ultimately, states should be in a position to evaluate
their success in terms of hard data indicating whether
various activities helped raise student achievement.
Accordingly, H.R. 609 adds a new State grant evaluation
provision that requires States that accept grants under the Act
to develop evaluation systems to determine the effectiveness of
grant activities. Specifically, these new systems will evaluate
the effectiveness of teacher preparation programs and
professional development activities within the State in
producing gains in: (1) the teacher's annual contribution to
improving student academic achievement, as measured by State
academic assessments required under section 1111 of the No
Child Left Behind Act; and (2) teacher mastery of the academic
subjects they teach, as measured by pre- and post-participation
tests of teacher knowledge.
The College Access and Opportunity Act recognizes that
flexibility should exist in the methods used for training
highly qualified teachers and allows funds to be used for
innovative methods in teacher preparation programs, such as
charter colleges of education and university and local
educational agency partnership schools, which can provide an
alternative gateway for teachers to become highly qualified.
Under H.R. 609, States have the flexibility to set up
charter colleges of education that function in a manner similar
to elementary and secondary charter schools except that they
would prepare highly qualified teachers in a higher education
setting. These charter colleges of education will exchange
flexibility in meeting State requirements for institutional
commitments to produce results-based outcomes for teacher
education graduates--measured based on increased student
academic achievement. The Committee is aware of at least three
institutions of higher education that have created charter
colleges: the Charter College of Education at California State
University, Los Angeles, California; the Charter School of
Education and Human Sciences at Berry College in Mount Berry,
Georgia; and the Charter Teacher Education Program at Fort
Valley State University in Fort Valley, Georgia.
On October, 9, 2002, the Subcommittee on 21st Century
Competitiveness held a hearing in Washington, D.C. entitled
``Training Tomorrow's Teachers: Ensuring a Quality
Postsecondary Education.'' Dr. Allen Mori, Dean of the Charter
College of Education at California State University, Los
Angeles, California, testified before the Subcommittee and
noted that:
The Charter College of Education is clearly on the
cutting edge of high quality teacher preparation in the
21st century. Spurred by the Title II requirements to
improve teacher education, faculty was determined to
build world-class teacher preparation programs to meet
the needs of the ethnically and linguistically diverse
urban community of the Los Angeles basin. This context
is a powerful theme in both the subject matter and
teacher preparation curriculum.
Specifically, the language in H.R. 609 allows States to use
funds for the planning and implementation of charter colleges
of education that: (1) permit flexibility in meeting State
requirements as long as graduates, during their initial years
in the profession, increase student academic achievement; (2)
provide long-term data gathered from teachers' performance over
multiple years in the classroom on the ability to increase
student academic achievement; (3) ensure high-quality
preparation of teachers from underrepresented groups; and (4)
create performance measures that can be used to document the
effectiveness of innovative methods for preparing highly
qualified teachers.
The Committee recognizes that there are other innovative
approaches to teacher preparation, such as university and local
educational agency partnership schools, which will support and
encourage institutions of higher education to establish K-12
schools of excellence in partnership with local educational
agencies. These partnership schools will utilize the assets of
the institution of higher education, the local educational
agency, and the community in order to introduce new models for
learning that are founded on research-based practices, rigorous
academic content, and high standards.
States can also use their grant funds to provide
prospective teachers with alternative routes to traditional
preparation to become highly qualified teachers and achieve
State certification. Such approaches will help to reduce
unnecessary barriers to State certification and offer
alternative routes to State teacher certification for qualified
individuals, including mid-career professionals from other
occupations, former military personnel, and recent college
graduates with records of academic distinction. The Committee
notes that alternative routes to State certification, as
opposed to traditional teacher preparation programs
administered by colleges of education, can streamline the State
certification process and help to move competent and qualified
candidates into the classroom in an expeditious manner.
There are several well-known programs nationwide that
recruit highly qualified candidates using alternative routes to
State certification, including the Troops to Teachers program.
This program provides financial assistance and training to
retiring military personnel and helps to place them in local
school districts, thus providing a new source of teachers to
schools across the country. According to the National Center
for Education Information, teachers certified through
alternative routes also bring diversity to the classroom and
are more apt to take challenging assignments. In particular,
the Center found that 90 percent of teachers in the Troops to
Teachers program are male, compared to just 26 percent in the
overall teaching force and about 30 percent of teachers in the
program are from a minority or ethnic group, compared to just
10 percent overall.
Another popular and successful program associated with
alternative routes to teaching is Teach for America. This
nationwide nonprofit organization recruits accomplished college
graduates without formal backgrounds in education to teach in
high-need urban and rural schools. Candidates apply to the
program and, if selected, attend a summer training course
before being placed in school districts across the country.
Teach for America and the host school districts provide new
teachers with support during the two-year program, after which
some teachers return to graduate school, transfer to other
professions or continue teaching. Since its inception in 1990,
Teach for America has placed more than 12,000 talented young
men and women in some of our nation's most disadvantaged
schools.
The Committee also recognizes the potential for an improved
teaching force through the American Board for Certification of
Teacher Excellence, which provides a nationally recognized,
high quality credential to attract the best and the brightest
into the classroom. This certification has also been recognized
by the Congress--in section 2151(c)(2) of the Elementary and
Secondary Education Act of 1965--as one of the nationally
recognized doorways into the teaching profession. The American
Board is a rigorous way to open the doors for highly qualified
candidates--including professionals who may want to enter
teaching from other fields. Because the rigor of the exam its
candidates will be required to take, American Board certified
teachers have to prove that they not only have a mastery of
their subject matter, but also the professional knowledge to
become successful and highly qualified teachers. The American
Board offers two types of teacher certification: a ``Passport
to Teaching,'' which is available for career changers and
prospective new teachers and ``Master Certification,'' which is
targeted toward extraordinary educators who are already in the
teaching profession and have a demonstrated record of
accomplishment in improving student academic achievement.
The Committee notes that the key to producing highly
qualified teachers is not the path by which they travel, but
the destination they reach. Teachers trained through innovative
options, or certified through alternate means, will still be
held to the same standards of accountability and quality, but
will not be constrained by artificial requirements that could
place barriers between high quality individuals and the
classrooms where they are desperately needed. H.R. 609 takes
the important step of recognizing that individuals seeking to
enter the teaching profession often have varied backgrounds--
and by creating flexible approaches that step outside the box,
these individuals can become highly qualified teachers through
training programs as unique as their individual experiences.
H.R. 609 authorizes State grant, partnership grant, and
teacher recruitment grant programs for the development and
implementation of mechanisms to assist local educational
agencies in recruiting and retaining highly qualified teachers.
The Committee notes that the authorized activities under these
programs provide significant flexibility for States and
partnerships to design innovative initiatives to recruit and
retain highly qualified teachers. The Committee wants to make
clear that funds under these programs may be used to cover
moving expenses to secure employment of highly qualified
teachers and provide other financial assistance necessary to
purchase a home (including mortgage application fees and
closing costs). The Committee recognizes this use of grant
funds as an appropriate way to attract and retain highly
qualified teachers.
Partnership grants
Under H.R. 609, each eligible partnership seeking
assistance under the Act must include at least: (1) a high
quality teacher preparation program at an institution of higher
education; (2) a school of arts and sciences; (3) a high need
local educational agency; and (4) a public or private
educational organization. The Committee believes that these
expanded partnership grants will bring diverse expertise
together for the common goal of placing highly qualified
teachers in the classrooms of high need school districts. The
Committee is requiring participation by a public or private
educational organization in each partnership because varied
expertise in areas such as teacher preparation, certification,
test preparation, and others can bring added dimensions that
benefit school districts, teachers, and most importantly,
students. Some public or private educational entities may be
particularly skilled at working with disadvantaged students and
can help make teachers more successful in teaching to standards
with challenging student populations. Other organizations may
be adept at helping students master concepts critical to their
achievement on high quality assessments. The Committee supports
a flexible approach and believes it would be impossible to
define every valuable service that may be offered by a ``public
or private educational organization'' to a partnership under
this program. Limiting the potential participants is a
disservice to the partnership concept and decreases the ability
of school districts and teacher preparation programs to make
local decisions about the best ways to improve teacher quality
and increase student academic achievement. The Committee also
notes that public and private educational organizations that
participate in the partnership should have the capacity to
offer high quality services that respond to the needs of the
partnership.
The College Access and Opportunity Act requires partnership
grant applicants to describe how faculty of a teacher
preparation program at an institution of higher education that
seeks a partnership grant will serve with highly qualified
teachers in the classroom at partner local educational agencies
over the term of the grant. The Committee believes this
increased interaction between teaching faculty and teachers in
the classroom will provide additional insight into the needs of
everyday teachers. In addition, H.R. 609 requires that at least
50 percent of partnership funds be used to ``directly benefit''
partner local educational agencies and clarifies that any
entity under the partnership may be the fiscal agent of such
partnership. It is the intent of the Committee that partner
local educational agencies actively participate in the
application process and support any proposed grant activities
as described in such partnership applications. Provisions in
H.R. 609 are designed to ensure that each partner local
educational agency has the ability to influence grant
activities and guarantee that partnership activities focus on
the needs of teachers and students in the classroom.
Accountability
While current higher education law contains annual
reporting requirements, these reporting measures have proven
ineffective in determining the true quality of teacher
preparation programs. In fact, under the current law reporting
requirements (as required under title II of P.L. 105-244, the
Higher Education Act Amendments of 1998) many States and
teacher preparation programs have, either intentionally or
unintentionally, submitted skewed and irrelevant data. Under
current law, teacher preparation programs at institutions of
higher education must report the percentage of graduates who
successfully pass the State certification or licensure
assessments.
However, most institutions have simply made completion of
their program contingent upon passage of these assessments.
This practice masks the number of students who are not
adequately prepared by the institution to pass these tests in
the first place. The Committee is discouraged by this reporting
loophole that some teacher preparation programs at institutions
of higher education have used to circumvent current law
accountability provisions. Accordingly, the College Access and
Opportunity Act includes improved accountability provisions
that will strengthen reporting measures and hold teacher
preparation programs (for both traditional and alternative
programs) accountable for providing accurate and useful
information.
H.R. 609 requires each State that receives funds under the
Act to annually report to the Secretary (for both traditional
and alternative teacher preparation programs) on the percentage
of students who completed at least 50 percent of the
requirements for teacher preparation programs that go on to
take and pass the State certification or licensure assessment.
These State report cards on the quality of teacher preparation
must also report on the State-determined passing score of that
assessment and disaggregate and rank each teacher preparation
program in the State based on such data.
In addition, each teacher preparation program that enrolls
students receiving Federal assistance under the Higher
Education Act must report annually to the State and the general
public: (1) the pass rate of each student who completed at
least 50 percent of the requirements for the teacher
preparation program on the State certification or licensure
assessment; (2) a comparison of the program's pass rate with
the average pass rate for other programs in the State; and (3)
a comparison of the program's average raw score with the
average raw scores for other programs in the State.
The Committee directs institutions of higher education and
other teacher preparation programs that receive grants under
the College Access and Opportunity Act to report effective data
on the number of students that have spent a significant amount
of time in teacher preparation programs (those who have
completed at least half of the requirements of the teacher
preparation program) and that have taken and passed State
certification or licensure assessments. The Committee believes
that effective reporting of such data will demonstrate which
teacher preparation programs have added value to program
participants (enabling such participants to pass State
certification and licensure assessments) and that these
improved reporting requirements will make it less likely that
States will submit misleading data. Clarifying language in H.R.
609 (which focuses on students who have completed at least 50
percent of the requirements for a teacher preparation program)
is specifically designed to eliminate the discrepancy in
current law with regard to reporting requirements for
``graduates'' and ``program completers.'' The Committee also
believes that new data on average raw scores on State
certification or licensure assessments will help to distinguish
teacher preparation programs within States that report similar
pass rate data.
Centers of Excellence
The demand for more ethnically and culturally diverse
highly qualified teachers is critical, especially given the
significant growth in the numbers of minority K-12 students
across the country. Opportunities that increase the numbers of
minority teachers and enhance their training, will support
broader strategies to enhance instructional opportunities for,
and can help to eliminate the achievement gaps of, minority
students. Accordingly, H.R. 609 authorizes grants for the
creation of Centers of Excellence at high quality minority
serving institutions. The Committee believes that the Centers
of Excellence will provide minority serving institutions that
have a demonstrated record of preparing highly qualified
teachers with a leadership role in recruiting and preparing
highly qualified teachers and increase opportunities for
Americans of all educational, ethnic, economic, and geographic
backgrounds to become highly qualified teachers.
In general, the purposes of these Centers are to increase
teacher recruitment at minority serving institutions and make
institutional improvements to teacher preparation programs at
such institutions. Grants are competitively awarded to high
quality teacher preparation programs (as determined by the
State) at eligible institutions which include: Historically
Black Colleges and Universities, Hispanic-Serving Institutions,
Tribally Controlled Colleges and Universities, Alaska Native-
Serving Institutions, or Native Hawaiian-Serving Institutions.
Promoting improved early childhood education
The reforms in H.R. 609 expand opportunities for increasing
the number of early childhood education programs offered at
institutions of higher education to prepare high quality pre-
kindergarten teachers. The community college system is an
important component of a professional development system for
the early childhood education workforce. The Committee
encourages States to do everything possible to ensure that a
lack of articulation between two and four-year institutions
does not require prospective early childhood education teachers
to repeat coursework, which lengthens the amount of time it
takes such teachers to obtain Bachelor's degrees in early
childhood education and results in higher costs. Under H.R.
609, States could use funds to provide grants to institutions
of higher education to implement articulation agreements that
ensure there is no replication of coursework, and ensure
students have the opportunity to make a smooth transition from
an Associate's degree to a Bachelor's degree program in early
childhood education.
Evidence suggests that early childhood education programs,
including Head Start programs, struggle to recruit teachers
with the language skills to implement research-based
instructional strategies for limited English proficient
children. The College Access and Opportunity Act will address
this issue by improving opportunities for States to recruit
bilingual early childhood education teachers and to increase
the number of early childhood education teacher preparation
programs for bilingual teachers. For example, a state could use
grant funds to provide financial and academic support for
bilingual or teachers of limited English proficient students
seeking to comply with Head Start Bachelor's degree
requirements.
Teacher Incentive Fund
One of the most important goals of the No Child Left Behind
Act is to ensure that all public school students are taught by
a highly qualified teacher, with a particular emphasis on
ensuring that schools with high concentrations of low-income
students are staffed by fully credentialed teachers that have a
firm understanding of the subject area content knowledge they
are imparting to students.
The Committee is concerned that the manner in which public
school teachers are generally compensated (paying teachers
according to a structured scale on the basis of their level of
education and number of years in the classroom, even though
neither of these factors is necessarily associated with better
teaching or higher student achievement) may work against the
goals in No Child Left Behind.
H.R. 609 addresses this issue by including language
authorizing the Teacher Incentive Fund, a competitive grant
program for State educational agencies, local educational
agencies, or partnerships that include a non-profit
organization. These grants would be used to design and
implement performance based compensation systems that provide
financial rewards for teachers and principals who demonstrate
effectiveness in raising student achievement and closing the
achievement gap, especially in our nation's highest need local
educational agencies. Grantees will be allowed to determine the
specifics of what these compensation systems look like as long
as they are based primarily on gains in student academic
achievement. A priority for high need local educational
agencies is also included.
Grantees will be required to demonstrate a significant
investment in, and ensure the sustainability of, the
performance based compensation system funded by the Teacher
Incentive Fund by committing to pay for an increasing share of
the total cost of the project, for each year of the grant, with
State, local, or other non-Federal funds. The Department of
Education is also required to assess each funded project
through an outside, independent evaluator, to ensure that
Federal funds are being used to improve student outcomes.
The Committee is confident that the Teacher Incentive Fund
will allow States and local educational agencies, along with
their non-profit partners, to implement reforms to teacher
compensation systems that will result in improved learning
environments and increased academic achievement for our
nation's neediest students.
Title III--Institutional aid
Title III of the Higher Education Act provides assistance
to Historically Black Colleges and Universities (HBCUs) and
other institutions of higher education that enroll large
numbers of minority and low-income students. To be eligible for
funds under title III, institutions must have low educational
and general expenditures as compared to other similar
institutions. H.R. 609 makes significant changes to title III,
designed to expand the activities for which these institutions
can use Federal funds.
Republicans have been committed to providing all minority
serving institutions with the resources necessary to ensure
students receive a high-quality postsecondary education. There
is a strong, demonstrated record of increased funding for these
institutions. HBCUs have received $238.6 million in fiscal year
2005, which represents a 29 percent increase since President
George W. Bush took office in 2001. Since Republicans took
control of the House of Representatives, funding for HBCUs has
increased by almost 120 percent, from $109 million in fiscal
year 1995 to $238.6 million in fiscal year 2005.
Funding for Historically Black Graduate Institutions
(HBGIs) has increased by nearly 30 percent since President
George W. Bush took office, from $45 million in fiscal year
2001 to $58 million in fiscal year 2005. Funding for HBGIs has
increased by almost 200 percent since Republicans took control
of the House of Representatives, from $19.6 million in fiscal
year 1995 to $58 million in fiscal year 2005.
Funding for Alaska Native and Native Hawaiian-serving
institutions has increased by nearly 100 percent since
President George W. Bush took office, from $6 million in fiscal
year 2001 to $11.9 million in fiscal year 2005. When
Republicans took control of the House of Representatives,
Alaska Native and Native Hawaiian-serving institutions were
receiving no Federal support. In fiscal year 2005, they
received $11.9 million. Additionally, funding for Tribally
Controlled Colleges and Universities (TCCUs) has increased by
almost 60 percent since President George W. Bush took office,
from $15 million in fiscal year 2001 to $23.8 million in fiscal
year 2005. When Republicans took control of the House of
Representatives, TCCUs were not receiving any Federal funding
support under the Higher Education Act.
Authorized under title V of the Higher Education Act,
Hispanic-Serving Institutions (HSIs) have seen an increase in
funding by 39 percent since President George W. Bush took
office, from $68.5 million in fiscal year 2001 to $95.1 million
in fiscal year 2005. Funding for HSIs has increased by nearly
700 percent since Republicans took control of the House of
Representatives, from $12 million in fiscal year 1995 to $95.1
million in fiscal year 2005.
Under the bill, all institutions under title III are able
to use funds for the acquisition of real property adjacent to
the campus of the institution on which to construct classrooms,
libraries, laboratories and other instructional facilities.
Additionally, the bill retains the ability for institutions to
use their funds for construction, maintenance, renovation and
improvement of instructional facilities. The Committee is
concerned about the current state of many historically
significant buildings on campuses that are designated as title
III institutions. Many of these buildings are not only in need
of renovation and updating; they are also in need of seismic
reinforcement and substantial repair. The Committee believes
that reinforcement and repair of these historical buildings is
a type of construction, maintenance, renovation and improvement
and that funds used for this purpose should be permitted by the
Secretary.
Additionally, the bill ensures that all minority-serving
institutions can use funds for the development or improvement
of facilities for Internet use or other distance learning
academic instruction capabilities as a way to expand access and
increase the use of technology in the classroom. The bill also
equalizes all of the uses of funds for title III institutions.
One significant addition provides that each type of minority
serving institution may use no more than 20 percent of their
grant funds to establish or increase an endowment fund.
Tribally Controlled College and University Formula
The Committee believes that Tribally Controlled Colleges
and Universities (TCCUs) would greatly benefit from a formula
distribution of the title III development grants program. The
formula established in H.R. 609 recognizes the needs of these
unique institutions and the intent of the program. Many TCCUs
operate on very small budgets and many rely on a patchwork of
competitive grants for the funds to simply keep their doors
open to students. These institutions are some of the neediest
in the nation and as such, they use a significant amount of
resources to complete competitive applications for funds they
receive year after year. The pool of eligible applicants for
TCCU funds is small and is likely to remain below 50
institutions in the foreseeable future. The Committee believes
that creating a simplified application process would enable
these institutions to use their resources to directly serve
students and improve the infrastructure and academic
opportunities.
Historically Black Graduate Institutions (HBGIs)
The Committee believes that the addition of four
Historically Black Graduate Institutions (HBGIs) will continue
provide opportunities for growth in math and science fields
where African American graduate students are underrepresented.
It is the Committee's view that the both Master and Doctoral
degree granting institutions are well-served by HBGI program
funds. When distributing HBGI funds, there should be no
distinction made as to which degree the eligible institution
awards, so long as it is in a math or science related
discipline in which African American students are
underrepresented. The Committee also believes that only
institutions in good standing with their institutional
accreditor should be eligible for funds in order to best
utilize the program resources.
Title IV--Student assistance
Through the Higher Education Act, the Federal government is
providing more than $70 billion in direct financial aid to
students in fiscal year 2005 alone. Those funds, provided
through Pell Grants, student loans, and campus-based and other
financial aid programs, are meant to help defray the cost of
college and level the playing field so low- and middle-income
students can access higher education opportunities like those
available to higher income students.
The Federal student aid programs are meant to help offset
some of the costs of higher education, yet considerable
evidence exists showing that increases in student aid coincide
with increases in college costs. As a result, student aid may
be contributing to the very tuition increases it is intended to
guard against. There is no simple remedy to this spiral of aid
and cost increases. However, by gaining awareness of the
correlation between aid and tuition growth, policymakers can
have more informed conversations with higher education
stakeholders as they work together to ensure college access for
American students.
If the tuition explosion of the past decade has taught us
anything, it is that simply pouring more money into the system
is not a viable solution. To be sure, Federal financial aid is
a critical component of our nation's higher education system.
It can help bridge the gap between lower and higher income
students, and provide even more access to postsecondary
education and the possibilities it offers. But increased aid
alone will not result in increased college access if the
pattern of college cost increases at its current pace.
American taxpayers are already shouldering a tremendous
higher education cost burden. In addition to the more than $70
billion annually in direct Federal student aid, Federal dollars
support institutional aid, research, and a wide-range of
programs outside the scope of the Higher Education Act but
still involving colleges and universities. In addition, a
significant portion of state revenues are devoted to higher
education subsidies. And even after all this taxpayer support,
students and families must also contend with annual tuition and
fee increases that grow at double-digit rates and squeeze
family budgets to the breaking point.
The Committee believes that further investments in student
aid must be made strategically, bearing in mind that more money
alone will not result in more access to higher education for
American students. H.R. 609 demands greater accountability,
efficiency, and effectiveness from the existing student aid
programs. The bill continues a long-standing effort to reduce
red tape, eliminate unnecessary bureaucracy, and examine the
underlying causes that drive up tuition. By reassessing current
investments in higher education, the Committee believes the
reforms contained in H.R. 609 will make better use of the
massive Federal investment in higher education by expanding
college access while simultaneously protecting the interests of
all American taxpayers who are footing the bill.
FED UP
The Committee began to lay the groundwork for the College
Access and Opportunity Act dating back to 2001 with an
innovative, web-based outreach initiative that was a first-of-
its-kind opportunity for higher education stakeholders across
the nation to get involved in the reauthorization process. The
Committee believed the first step in developing meaningful
reforms was not simply to impose new regulations on top of the
existing framework, but to identify ways to actually reduce red
tape and bureaucracy for students, financial aid personnel, and
colleges and universities. Known as the FED UP project, this
bipartisan initiative was the first step toward developing a
more efficient and effective Federal student aid system.
In that spirit, and in an effort to identify outdated,
redundant, or overly burdensome provisions in title IV of the
Higher Education Act and its regulations, the ``Upping the
Effectiveness of Our Federal Student Aid Programs,'' or ``FED
UP,'' was developed by 21st Century Competitiveness
Subcommittee Chairman Howard P. ``Buck'' McKeon (R-CA) and the
late Representative Patsy Mink (D-HI) in 2001. The project,
which was launched in May 2001, solicited suggestions from the
higher education community as to what provisions in the Higher
Education Act and which regulations should be changed or
eliminated and why. More than 3,000 responses were received and
logged from loan professionals, financial aid officers,
students, higher education associations and concerned citizens.
The Department of Education completed a negotiated rulemaking
session based on the proposals submitted through FED UP and
released new regulations.
H.R. 609 continues the FED UP project to streamline the
current student aid regulations. The legislation specifically
addresses statutory changes that are necessary to relieve some
of the administrative burdens on students, financial aid
professionals, student loan providers and institutions of
higher education, while providing clarification of other
provisions currently in law. This opportunity to address
technical and clerical amendments necessary to alleviate
unnecessary burdens and confusion within the title IV programs
was supported widely by Members of Congress and all sectors of
the higher education community. Some of the responses to the
FED UP process from financial aid professionals include
comments from student financial aid officers, trade
associations and college presidents.
``FED UP is an example of how government should work,''
said David Sheridan, Dean of Enrollment Services at the Stevens
Institute of Technology in New Jersey.
``Your FED UP initiative is a unique, cooperative effort to
streamline and appropriately target aid to needy students. It
has been most welcomed by our colleges and universities and we
hope to see further positive results from your undertaking,''
said David Warren, President of the National Association of
Independent Colleges and Universities (NAICU).
Jolene Koester, President of the California State
University at Northridge said, ``I am delighted to participate
in this effort because I share your belief that the time,
effort, and especially Federal dollars that are consumed in
some of these processes could be better applied to more
productive ends. We very much appreciate the opportunity to
respond, and thank you for bringing the attention of your
office to this important issue.''
Pell Grants
The Federal Pell Grant program is the single largest source
of grant aid for postsecondary education attendance funded by
the Federal government. Congress has appropriated nearly $12.4
billion in fiscal year 2005 to serve about 5.3 million
undergraduate students. The annual appropriations process sets
the maximum award, currently at the historically high level of
$4,050 for fiscal year 2005. Pell Grants are need-based aid
intended to be the foundation for all Federal student aid
awarded to undergraduates. The grants do not have to be repaid
and are awarded to needy students and families who might not
otherwise have the opportunity to pursue a college education.
Although there is no absolute income threshold that determines
who is eligible and who is ineligible for Pell Grants,
recipients are primarily low-income.
Beginning in fiscal year 1973, the Pell Grant program has
made the dream of college a reality for tens of millions of
students. Funding for the Pell Grant program has increased
dramatically over the past three decades, but even these
significant funding increases have not been able to keep pace
with the explosion in college costs. Tuition increases at
institutions across the country have been regularly outpacing
the rate of inflation by three to four times, and often more.
The purchasing power of the Pell Grant has been largely
impacted by the dramatic increase in tuition and fees in all
sectors of American higher education. Tuition increases, if
left unchecked, will continue to erode the great strides made
by Congress in support of the Pell Grant program. That's why
the issue of college costs must also be included in any
discussion of higher education accessibility. In conjunction
with efforts to address the larger issues that impact college
affordability and accessibility, H.R. 609 includes important
reforms to strengthen the Pell Grant program and provides
necessary reforms to ensure that the nation's neediest students
are able to continue to access a postsecondary education.
Since Republicans gained control of the House of
Representatives in 1995, total Pell Grant funding has doubled,
increasing from $6.2 billion to $12.4 billion for fiscal year
2005. In President Bush's first term, Pell Grant funding
increased by $3.6 billion, an increase of more than 40 percent.
Republicans have also significantly increased the Pell Grant
maximum award. Since 1995, the Pell Grant maximum award has
increased by 73 percent, from $2,340 to $4,050. The House of
Representatives recently approved a spending bill for fiscal
year 2006 that added more than $1 billion in total funding for
the Pell Grant program to increase the total appropriation for
the program to $13.4 billion and increased the maximum award to
$4,100. This is a major accomplishment, since even incremental
increases in the Pell Grant maximum award are costly. Budget
estimates indicate that increasing the maximum award by $100 at
current maximum award levels costs $420 million. In addition,
in order to ensure that the Pell Grant program remains on solid
financial ground, the House of Representatives passed a Labor-
HHS-Education spending bill that pays off the $4.3 billion
program shortfall and institutes a Pell Grant scoring rule,
which ensures that the program will not run a deficit in future
years.
Increased funding not only leads to increases in the
maximum award--it also allows the program to serve a greater
number of disadvantaged students. Since 1995, the number of
students receiving Pell Grants has increased from 3.6 million
to 5.3 million--an increase of 1.7 million students, or 47
percent. In President Bush's first term alone, the number of
students receiving Pell Grants increased by one million.
H.R. 609 includes several important reforms to strengthen
the Pell Grant program and better serve students. The bill
calls for a maximum award funding authorization of $6,000--a
responsible and realistic authorization level for the program.
The increased authorization level, from $5,800, which is the
current law authorization, to $6,000 was offered by
Representative Ric Keller (R-FL).
Pell Grants Plus--Achievement Grants for State Scholars
H.R. 609 creates the Pell Grants Plus--Achievement Grants
for State Scholars initiative and provides an additional
$1,000--over and above the Pell Grant a student is receiving--
for high-achieving, low-income students who participate in the
State Scholars program, a rigorous, college preparatory high
school program. The provision has been a part of President
Bush's budget submission to Congress for the past two years.
Under this new initiative, students may receive Pell Grants
Plus in their first and second years of college, providing
additional aid in the freshman and sophomore years when
students often struggle to pay for college and may be more
vulnerable to dropping out. According to the American College
Testing (ACT) program, ``Students who complete a rigorous
curriculum--with at least three years of mathematics and
science, as well as four years of English and social studies,
and courses in foreign language--are more successful in
pursuing and completing further education.''
While this is the first time that merit has been associated
with the Pell Grant program, the Committee believes that it is
imperative to get grant funds in the hands of high-achieving,
low-income students who have great potential to be successful
in postsecondary education.
Year-Round Pell Grants
In order to help needy students who are working to graduate
quickly, the bill allows for year-round Pell Grants. Currently,
students may only receive Pell Grants based on the traditional
two semester academic year. This limits options for students
studying year-round or on a non-traditional schedule.
The Committee believes that in the coming decades, many
states will experience significant increases in postsecondary
education enrollments. To respond to this challenge,
institutions must look for new ways to deliver higher education
and make more effective and efficient use of existing campuses.
Offering year-round Pell Grants will allow institutions of
higher education to make better use of current facilities by
encouraging students to attend college on a year-round basis.
Students who do this might, for example, complete a two-year
associates or a four-year bachelor's degree in less time than
usual. Students may use the new summer Pell Grant eligibility
to take courses that are overbooked in the regular academic
year due to rising enrollments, concentrate on certain courses
that require intensive study, or prepare for difficult or
preliminary coursework (particularly incoming freshman and
transfer students).
The provision of year-round Pell Grants will reduce costs
to students and move them through their programs more quickly,
thus allowing institutions to increase enrollments and
accelerate course completion and graduation for students.
Equally as important to expedited program completion, the
provision of year-round Pell Grants reduces the overall cost of
the Pell Grant program to the taxpayer. Additionally, year-
round Pell Grants reduce the amount of debt that a student may
have to absorb, if year-round Pell Grants were otherwise not
available and the student was left to finance his education by
loans alone during the summer months. Since 1992, the Secretary
had the option to offer year-round Pell Grants on a ``case-by-
case basis,'' but has never exercised that authority because of
the concern that it will add to the shortfall in the Pell Grant
program. Because of the necessity to limit the cost in the
initial phase of the program, the provision is limited to four-
year degree granting institutions of higher education that have
a graduation rate of at least 30 percent and two-year degree
granting institutions of higher education that have a
graduation rate for one of the last three years that is above
the average for their sector.
Tuition sensitivity
H.R. 609 eliminates the tuition sensitivity provision
currently in the Higher Education Act, which reduces the annual
maximum Pell Grant for students attending institutions with
very low tuition charges. This provision penalizes the lowest
income students, by reducing their Pell Grant aid, for
attending very low cost institutions. In fiscal year 2003, the
year for which the most recent data is available, the tuition
sensitivity rule impacted 97,600 students whose Pell Grants
were reduced by an aggregate amount slightly more than $19.9
million. According to the Congressional Research Service, the
estimated average loss in Pell Grant assistance for affected
students was approximately $204 in fiscal year 2003.
Reduced grants under the tuition sensitivity rule may
result in some of the neediest students having to borrow
additional funds to meet their expenses--even at the lowest
priced institutions. Retaining this provision may serve as an
incentive for low-cost institutions to increase their tuition.
The Committee believes that the cost of attendance at
institutions is high enough, even at institutions with the
lowest tuition charges, and elimination of the tuition
sensitivity provision will not result in favoring lower priced
public institutions over higher priced institutions.
Pell Grant eligibility
Current law prohibits a student who is incarcerated in a
State or Federal penal institution from receiving Federal
student loans and Pell Grants. However, some State laws allowed
jurors to confine the worst sexual predators to mental health
facilities. Offenders in these centers are not called
``inmates'' but ``residents.'' Therefore, current law permits
these offenders to qualify for Pell Grants. In the past year
alone, over 50 sexual predators residing in one mental health
facility in Florida have received over $200,000 to take college
courses, paid for by U.S. taxpayer dollars through the Pell
Grant program. Representative Ric Keller (R-FL) offered an
amendment to modify the eligibility requirements for Pell
Grants by ensuring that offenders who remain in custody through
involuntary civil commitment not be eligible for the awards.
The Committee believes that this amendment does not thwart
rehabilitation or education of offenders, but it does address a
very specific and particularly dangerous group of offenders and
does not permit Federal funds to be expended to these
individuals through Pell Grant awards.
Pell Grant limitation
Representative Sam Johnson (R-TX) offered an amendment to
limit the length of time a student may receive a Pell Grant to
18 semesters or 27 quarters. This amendment returns to the
original intent of the Higher Education Act while recognizing
new enrollment trends. Until 1992, a student's eligibility was
limited to six years. This amendment ensures that this
reauthorization will refocus grant aid to students who are
actively pursuing a degree, while at the same time, recognizing
the growth in part-time attendance. The Committee believes this
is a reasonable limit that will encourage students to make
consistent progress toward a degree while protecting the
American taxpayers' investment in higher education. By basing
the limit on semesters or quarters rather than years, this
amendment protects the ability of part-time and non-
traditional students to pursue a degree over an extended number
of years.
Data from the Department of Education shows that only about
six percent of students who received a Pell Grant in 2004 first
received their grant in 1996 or earlier. Data also shows that
less than one percent of students received eight Pell Grants
over an 11 year span. This data demonstrates that the vast
majority of students will easily meet this requirement. And the
few students who might have struggled to comply with this
timeframe will have new incentives to complete a degree and
enter the workforce.
Tax table updates
In December 2004, the Department of Education published a
notice of its intent to revise the Federal need analysis
methodology for the 2005-2006 award year. This action was
consistent with the Higher Education Act, which since 1992 has
required periodic updates to the tables used within the need
analysis formula. In the notice, the Department of Education
published revised versions of the tables for state and other
taxes used to determine the Expected Family Contribution of
students and their families. There has been concern expressed
that the revisions to the tables may cause some students to
lose Pell Grant funds, since the data previously used was from
1988 and reflects State and local taxes that were much higher
than the tax rates in the current environment. However, it is
essential for policy makers to use the best information
available to target those resources to students who need them
the most.
The Committee believes that the decision to update the IRS
tax tables that are used by the Department of Education as part
of its need analysis methodology for determining students' Pell
Grant eligibility was the right thing to do to ensure integrity
in serving students with the greatest need. The Department of
Education is required under the changes made in the Higher
Education Act Amendments of 1992, signed into law under the
Clinton Administration, to use up-to-date information in
determining students' Pell Grant eligibility. Prior to the
recent updates, the Department of Education was relying on tax
data that dated back to 1988. As a consequence, 17-year-old
tables were still being used nearly two decades after they were
compiled.
Updating the tax tables used to determine Pell Grant
eligibility will not only allow continued increases in the
number of American students receiving Pell Grants, but it will
also improve prospects for a future increase in the maximum
Pell Grant award--the amount of aid available annually to the
poorest students in America. Support for the tax table updates
has been voiced throughout the country. In December 2004, the
Cleveland Plain Dealer reported that, ``In truth, the revision
was long overdue. Officials had been using tax data more than a
decade out of date'' and in January 2005, associate provost of
university enrollment at Northwestern University told the Daily
Northwestern that ``[The Education Department] should update
[the tax tables]. If they waited two years from now, the hit
could be stronger.''
TRIO novice applicants
In order to promote competition in the TRIO program and
allows new programs the opportunity to compete for and receive
grant funds, H.R. 609 requires the Secretary of Education to
set aside ten percent of the TRIO funds available for each TRIO
program competition for quality novice applicants. The current
TRIO award structure is intended to be competitive, yet in
practice it virtually guarantees a limited number, if any, new
programs will receive grants. Under this set-aside, if there
are not enough quality novice applicants to utilize the ten
percent set aside, the funds would be returned to the general
TRIO fund for additional future awards.
The purpose of the TRIO programs is to ensure that low-
income, first-generation college students and students with
disabilities are able to access and get additional information
about postsecondary education opportunities. Ensuring that
novice applicants can compete for and receive grants only
serves to expand access to higher education.
Current law requires the same weight be given to prior
experience that was given in 1994-1997. Prior experience is
defined in the regulations to ultimately award a grantee a
maximum of 15 extra points on their application, putting them
at a distinct advantage over new grantees who cannot receive
the prior experience points. The Committee adamantly opposes
the provision of prior experience points based on historical
participation over the demonstrated outcomes and achievements
of the grantee. While the 15 points are not guaranteed for
prior experience, assuming a previous grant holder meets basic
requirements, the seasoned grantee will be awarded extra points
that in some cases make it mathematically impossible for new
programs to get funded. The Committee believes the best
programs should be funded and programs that have not met the
performance criteria are not simply carried by virtue of
previously having a grant. While some previously funded
programs are not automatically renewed, they do have a
substantial advantage. The Committee believes in retaining
prior experience as a consideration, but questions the current
15 point process as less than two percent of previous grants
were not renewed.
The novice applicant proposal retains the current prior
experience provision which, with little if any impact on
current grantees, will ensure novice applicants are provided a
clear opportunity to compete with their peers for awards that
ultimately serve students.
TRIO accountability
While many TRIO grantees provide quality services, an
evaluation of three programs--Upward Bound, Talent Search, and
Student Support Services--conducted by the Office of Management
and Budget (OMB) calls into question the overall impact of
certain TRIO programs. Additionally, the current grantee
selection process, although competitive, heavily favors current
TRIO providers, making it difficult for even the most qualified
novice applicants to receive a grant.
Since 1990, TRIO appropriations have more than tripled from
$241.8 million to $836.5 million in fiscal year 2005. The
Committee takes seriously its responsibility to ensure that the
near $837 million taxpayers spend annually for TRIO programs
are meeting the expectation that TRIO is improving college
entrance and retention rates for low-income and first
generation college students. Current law does not require
recipients of these funds to demonstrate results in achieving
the programs' stated purpose and the Committee supports reforms
to ensure that the most qualified applicants are awarded grants
to operate TRIO programs, and new applicants have a greater
opportunity to participate.
Among the TRIO reforms included in H.R. 609 is an amendment
offered by Representative Virginia Foxx (R-NC) to strengthen
TRIO accountability, transparency, and the quality of TRIO
services available to eligible students by establishing program
performance measures and enhancing grantee reporting
requirements. Improved data collection and the use of program
measures will allow grant recipients to quantitatively evaluate
their success at meeting the program's objective, while helping
the Department of Education identify areas needing program
improvement so that resources can be effectively targeted.
Evidence shows that greater competition fosters continuous
program improvement. In many cases, year after year the same
TRIO providers receive the bulk of the funds, even when there
is little or no evidence of results. The performance-based
grant selection process created by Representative Foxx will
ensure that the most qualified applicants receive grants. The
amendment will allow high-quality grantees to continue
operating TRIO programs in their communities, while providing
the Secretary clear authority to replace grantees that are not
meeting performance goals. Under H.R. 609, current TRIO
providers that do not meet performance goals will not receive
priority consideration during the next grant cycle yet may
still compete for a subsequent TRIO award. In the view of this
Committee, programs that cannot demonstrate reasonable program
outcomes must not be given a free pass to continue receiving
taxpayer funds.
President George W. Bush has made competition for the
provision of government services a priority of his
Administration. This is good policy because when competition
increases, the consumer generally benefits. A requirement that
current TRIO grantees demonstrate success before subsequent
grants are awarded promotes basic fairness and encourages
enhanced program performance. With millions of dollars awarded
each year in Federal TRIO grants, the need for efficiency and
accountability is significant.
The Committee recognizes that the primary principles of
government contracting and grant-making should be to purchase
the best product, provide the best service, and fund the best
operations at the best price for the American taxpayer. The
TRIO programs should not depart from these basic principles.
TRIO for veterans
The Committee bill also resolves an issue important to
veterans who are being served by the Upward Bound TRIO program.
The bill authorizes the use of Upward Bound funding for Math
and Science programs for veterans. In taking this action, the
Committee recognizes that from 1991 through 2004, the
Department of Education successfully funded Veterans Upward
Bound Math Science programs at both Humboldt State University
and Montana State University. In 2004, the Department of
Education unilaterally decided to discontinue these grants
after 13 years despite the fact that one of the grantees has
successfully won the competition to operate its Veterans Upward
Bound Math Science program and was completing the first year in
a multi-year grant. The Committee action specifically provides
the legislative authority to fund such programs, and the
Committee expects the Secretary to reinstate these programs for
the duration of the grant cycle. The Committee further expects
the Secretary to honor the terms under which the grants were
originally awarded including funding level, number of students
to be served, recruitment criteria, provision of room and
board, and the ability to offer veterans the opportunity to
earn math and science credit.
General TRIO provisions
In return, the Committee expects the grantees to comply
with all applicable accountability measures and new program
outcomes that are part of the legislation. Further, the
Committees intends for the programs to continue on a
competitive basis for the duration of the authorization period.
In taking this action, the Committee believes such efforts will
ensure that these important outreach initiatives will continue
to be offered to veterans across the country, as they return
from service, to better prepare them to pursue a postsecondary
education and gain the skills they need to be successful in
today's economy while complying with new accountability
standards and program outcome measures.
The bill also provides some important technical changes in
the TRIO program. The Department of Education has adopted
regulations within the Student Support Services program that
narrowly define additional campuses. This definition thwarts an
institution's ability to apply for grants to serve diverse
groups of disadvantaged students at various campuses. H.R. 609
provides clarification for institutions with multiple campuses
serving different populations by defining the terms ``multiple
campuses'' and ``different populations.''
Robert C. Byrd Mathematics and Science Honors Scholarship
Program
Over the past several years the Committee has heard from
multiple witnesses that our nation's competitiveness depends on
the quality of our science, technology, engineering and
mathematics related workforce. Careers in these disciplines
support the United States in maintaining its leadership in
innovation and in ensuring that we can solve challenging
problems such as designing new technologies, protecting our
nation, and maintaining a strong economy. Therefore, the
Committee is discouraged that America's high school students
are struggling to keep up with their industrialized-world peers
in the fields of mathematics and science and believes that
Congress must do more to encourage our young people to pursue
careers in these fields, which will not only benefit their
future, but the future of our country.
Accordingly, H.R. 609 includes a comprehensive proposal to
help strengthen American competitiveness by increasing
opportunities for students to study mathematics, science, and
related fields. H.R. 609 builds on the framework of existing
Federal higher education investments to better reflect the
national priority of increasing the number of American students
studying advanced science and mathematics. H.R. 609 updates the
Robert C. Byrd Honors Scholarship program to authorize grants
for mathematics and science scholarships, loan interest
repayment, and state education coordinating councils.
The College Access and Opportunity Act of 2005 includes
three distinct approaches to increase mathematics and science
opportunities for students. First, the bill authorizes
mathematics and science honors scholarships to encourage
students to pursue a baccalaureate, masters, or doctoral degree
in physical, life, or computer sciences, mathematics, and
engineering. This idea, generated from testimony provided by
Mr. Norm Augustine during the hearing, ``Challenges to American
Competitiveness in Math and Science,'' is intended to provide
an incentive for more students to persist in studies in the
math and science disciplines. Mr. Augustine's testimony pointed
out that in the mathematics field, current trends indicate that
of 3,500 ninth graders interested in math, only 300 of those
students will qualify as freshmen to pursue a degree in
mathematics. Of the 300 students, only 10 will receive a
bachelor's degree and only one will finish at the Ph.D. level.
Second, H.R. 609 authorizes the Secretary to pay up to
$5,000 in student loan interest for individuals who have
obtained degrees in science or mathematics and serve as
teachers or other professionals in related fields. The loan
forgiveness also provides an incentive for students to enter
into the math and science fields. In addition, this incentive
attempts to maintain people in the math and science fields by
requiring that anyone receiving this forgiveness must work in a
math or science related field for at least five years. Finally,
the College Access and Opportunity Act of 2005 authorizes the
Secretary to award grants to states for Mathematics and Science
Education Coordinating Councils that would be composed of
education, business, and community leaders within the state.
These Councils would work together to implement state-based
reform agendas that support the continuing improvement of
mathematics and science education and will help to support
activities that lead to better teacher recruitment and training
and increased student academic achievement in math and science.
The Committee recognizes that Federal, State, and local
mathematics and science programs are broadening their
perspective to include science, technology, engineering and
mathematics education, commonly referred to as ``STEM''
education. With respect to coordinating councils under this
subpart, it is the Committee's intent that the Mathematics and
Science Coordinating Councils include STEM within its purview
of State activities. It is also the Committee's intent that
funds can be used for recruitment and training of science,
technology, engineering and mathematics teachers, and to
support increased student achievement in science, technology,
engineering and mathematics.
Stafford Loan programs
The Federal student loan system is comprised of two
separate student loan programs--the Federal Family Education
Loan (FFEL) program and the Direct Loan (DL) program. In the
FFEL program, private lenders partnering with the government
disburse the capital. Borrowers then deal with their private
lender as the loan moves through its life cycle. Lenders can be
banks, stand-alone student loan companies or non-profit
agencies. Guaranty agencies work with the lenders and the
borrowers to ensure that the borrowers stay out of default and
administer the Federal guarantee to the lenders if the borrower
does default on the loan. All government partners in the FFEL
program work to provide borrowers with customer service and
financial education with the goal of avoiding borrower
defaults. Secondary markets, which are generally non-profit
state agencies/organizations that act as lenders, purchase
loans from other lenders to free up capital and also originate
their own loans, often offering significant cuts to the
borrower interest rate or favorable repayment terms.
The main difference between the FFEL program and the DL
program is that in the DL program, the capital is disbursed
directly from the Federal Treasury, via the Department of
Education, to the schools on behalf of the student. Borrowers
then deal with the Department of Education and its contractors
for customer service.
Over the years, the two programs have competed against each
other and the participants in the FFEL program competed against
themselves. This competition has dramatically improved the
level of service being offered in both programs. In addition,
because the two student loan programs were created at different
times, the borrower benefit offerings in the programs differ.
H.R. 609 took steps toward equalizing the two student loan
programs to ensure that borrowers did not have different
benefits in one program over the other program.
The Committee entered into this reauthorization with the
goal of making it easier for America's young people access and
persist in completing some form of higher education. A primary
effort has been made to reevaluate the current investment and
determine whether program priorities are in need of
realignment. The Committee specifically identified the pressing
need to address the explosion in subsidies directed to college
graduates; the dramatic growth in the cost of the consolidation
loan program, for example, poses a very real threat to the
ability of Congress to direct future aid increases to low- and
middle-income students who have not yet had the opportunity to
pursue a college education. The Committee has developed a
reasonable, sustainable loan structure that will continue to
serve college graduates working to repay their loans while
refocusing the primary investment on current and future
students. The Committee has met these goals by passing a number
of reforms to both the FFEL program and the DL program that
will increase loan limits, significantly decrease fees paid by
borrowers and better align the borrower benefits offered in the
FFEL and DL programs. The Committee offers these additional
benefits to borrowers by common sense reforms that curb the
excess funds being spent unwisely in the student loan programs.
The reforms included in H.R. 609 will better equalize the
Stafford loan programs and also put both programs on a more
solid financial foundation that will allow the program to
operate efficiently for years into the future.
Borrower benefits
The Federal student loan programs offer unparalleled
borrower benefits. Students are able to access Federally
guaranteed loans at below-market interest rates without
collateral or credit checks. Lower income borrowers who qualify
for the Subsidized Stafford Loan program are not charged
interest on their loans while in school, in their six month
grace period following graduation, or in periods of loan
deferment. Borrowers can access a variety of repayment options,
and the already low fees in the programs are lowered even
further under H.R. 609. However, the Committee believes
inequities between the FFEL and DL programs must be corrected
so that all student loan borrowers, regardless of which loan
program their school has chosen, have access to the same level
of borrower benefits.
In the area of loan fees, the Committee believes the
current fee structure is unnecessarily complex, and unevenly
applied to borrowers. For example, under current law, the fees
paid by the borrowers can vary lender by lender or between
student loan programs. The Higher Education Act requires that
the Secretary charge a four percent origination fee for loans
originated in the DL program and lenders charge a three percent
origination fee in the FFEL program, plus an optional one
percent fee to be charged by guarantors. Thus, under a strict
reading of the law, borrowers in both programs are to be
charged a total of four percent in fees upon origination of
their Federal student loans. Congress originally added these
fees as a temporary cost saving measure during the Omnibus
Budget Reconciliation Act of 1981. These fees were never
intended to be a permanent addition to the Higher Education
Act.
Since that time, a number of changes have been made to the
origination fees charged on Federal student loans. In the DL
program, beginning under the Clinton Administration, the
Department of Education interpreted the origination fee
provision to permit DL to only charge a three percent fee. This
practice has continued. The program then further discounts the
origination fee by offering an up-front rebate of 1.5 percent
of the loan principal purported to be a repayment incentive.
When a borrower enters repayment, if the borrower does not make
12 on-time payments, the fee is capitalized back onto the
principal of the loan. Only about 19 percent of students in the
DL program are actually able to meet the 12 on-time payments
requirement. In practice, this policy results in some DL
borrowers paying a 1.5 percent fee and others paying a three
percent fee.
In the FFEL program, the government must receive a three
percent origination fee on loans, but the statute is not
specific as to who pays that fee--lenders or borrowers. Thus,
similar to the uneven borrower treatment in DL, some borrowers
in the FFEL program will pay the full three percent fee, while
others pay a discounted origination fee because some or all of
the fee will be paid by the lender on the borrower's behalf.
The FFEL borrower also may pay a fee of one percent of the loan
to the guaranty agency to be deposited into the guarantor's
Federal Reserve fund; however, guaranty agencies currently have
the authority to waive charging this fee to the student. The
funds deposited into the Federal Reserve fund are property of
the Federal government, and the Committee believes it is unwise
public policy for Congress to grant guaranty agencies the
authority to waive collection of the Federal dollars, thereby
endangering the fiscal health of the agency and weakening the
overall strength of the FFEL program. The guaranty fee has
always been included in the structure of the Higher Education
Act and unlike origination fees, was never thought to be a
temporary measure.
H.R. 609 provides for a multi-step process by which total
loan fees will be reduced for all borrowers while the future
fiscal health of the loan programs will be improved. H.R. 609
mandates that borrowers pay the existing one percent fee
charged by guaranty agencies, renamed the Federal default fee,
to ensure the long-term viability of the loan guaranty
structure. At the same time, H.R. 609 phases out the temporary
origination fees in the FFEL program, and phases total DL fees
to one percent, concurrently eliminating the complex and uneven
practice of rebating fees prior to repayment. Taken together,
this will result in both FFEL and DL borrowers paying a total
of just one percent in loan fees, a 75 percent reduction from
the four percent fees under existing law. This simplified
structure will ensure borrowers in both programs are treated
equally and increase the amount of money a borrower actually
receives to help pay for his education. Borrowers will pay a
small fee (one percent) for the benefit of a consumer loan
capped at a fiscally responsible 8.25 percent that includes a
number of benefits that will assist students as they work to
complete their education, allow borrowers to pay back their
loans in a timely fashion and assist struggling borrowers to
develop repayment options.
Loan limits
To encourage responsible borrowing habits, prevent
excessive student loan debt, and protect taxpayers against loan
defaults, the Higher Education Act provides for annual and
aggregate loan limits. As the Committee developed its higher
education reform package, there was considerable debate between
those who sought significantly higher loan limits, and those
who believed loan limits should remain at their current levels,
or even be reduced for some borrowers.
At the heart of this debate is the question of whether
higher loan limits will do more to expand college access or
simply expand student debt. According to the College Board, the
cost of attendance at a public four-year institution has risen
28 percent over the past 10 years. However, loan limits for
first year students have not increased significantly since
1986. As a result, many would argue that loan limits should be
increased to keep pace with the explosion in tuition. Groups
such as the American Council on Education (ACE), Association of
American Universities (AAU), College Parents of America,
Consumer Bankers Association (CBA), Education Finance Council
(EFC), National Association on Independent Colleges and
Universities (NAICU), National Association of State
Universities and Land Grant Colleges (NASULGC), National
Association of Student Financial Aid Administrators (NASFAA),
National Council of Higher Education Loan Programs (NCHELP) and
Sallie Mae all spoke out in favor of increased loan limits for
students. As the cost of attending college rapidly increases,
students and families are relying more and more on student
loans to assist them in pursuing their education. At the same
time, the level of student debt continues to rise as well. The
average Stafford loan debt level for a student graduating in
1995-1996 was $10,471; this figure rose to $15,862 for those
graduating in 2003-04. The Committee believes reasonable
concern should be given to ensure the Federal government is not
contributing to unmanageable debt burdens by providing
irresponsible loan limits. The Committee believes that the
Federal government should do its part to ensure that borrowers
have access to affordable loans through the Stafford loan
program. If students complete their first and second years,
they are more likely to continue on through graduation. In
increasing the loan limits for these students, the Committee
believes students will be better equipped to enter into and
graduate from college. H.R. 609 provides reasonable increases
in annual maximum loan limits for first and second year
undergraduate students from $2,625 to $3,500 and $3,500 to
$4,500, respectively, but does not increase the aggregate limit
of $23,000. Similarly, H.R. 609 increases the annual maximum
graduate loan limits from $10,000 to $12,000 but does not
increase the aggregate loan limit.
Interest rates
Throughout the four decade history of the Federal student
loan program, one of the most contentious issues has been that
of the interest rate charged to borrowers. The Federal
government has implemented a variety of fixed interest rates,
only to be forced to revisit those rates when the inevitable
occurs and the rate becomes out of sync with market conditions.
The Committee believes it is of paramount importance that the
student loan programs be placed on a solid financial foundation
based in sound economic principles. As such, the Committee
believes a variable interest rate that fluctuates with the
market offers a viable, long-term solution to the interest rate
question.
Under current law, the Stafford loan program is provided to
borrowers on a variable interest rate pegged to the 91-day
Treasury bill. The rate is adjusted annually, and a discount is
provided to borrowers in school, in a grace period, or in
deferment. However, that variable rate structure is scheduled
to be replaced by a fixed, 6.8 percent interest rate for all
borrowers beginning on July 1, 2006. Without Congressional
action, all future Stafford loan borrowers would pay a static
6.8 percent interest rate regardless of market conditions.
Over the past several years, interest rates have fallen
dramatically, and the variable rate structure of the student
loan programs has allowed for students to benefit tremendously
from these circumstances. In fact, interest rates have hit an
all-time low in recent years for the student loan programs,
residing at 3.37 percent last year. Even as interest rates rose
somewhat in July 2005 to 4.7 percent for students in school and
5.3 percent for borrowers in repayment, the rates have not
risen to the level set to take effect on July 1, 2006, which
would lock borrowers in with no opportunity to benefit from
changes in the economic climate. Prior to the introduction of
the variable interest rate in 1992, Congress made a number of
failed attempts at predicting future economic conditions by
setting fixed interest rates ranging from six percent to up to
10 percent over time. The Committee believes the history of the
loan programs demonstrate clearly that a fixed rate is
unsustainable because it prevents borrowers from taking
advantage of fluctuations in the market. However, the variable
rate currently in place--and included in H.R. 609--offers
borrowers dual benefits. It allows borrowers access to low
rates when they are made available, and it protects borrowers
from excessive rate increases through an interest rate cap of
8.25 percent. H.R. 609 eliminates the switch to a fixed
interest rate on July 1, 2006 and keeps the interest rates set
on a variable rate formula. In the past, every reauthorization
period resulted in Congress adjusting the interest rates to
match the current economic environment. By maintaining a
variable interest rate with a reasonable cap of 8.25 percent,
H.R. 609 ensures that students are able to take advantage of
low interest rates when rates decline and are protected by a
fiscally responsible and reasonable cap should interest rates
rise. The 8.25 percent cap also protects the taxpayers'
liability in the program.
Considerable debate during the reauthorization also
surrounded the issue of interest rates for the consolidation
loan program. The consolidation loan program was originally
intended to assist two groups of borrowers: first, borrowers
with multiple lenders who wanted to consolidate their debt in
order to make just one student loan payment per month, and
second, those borrowers who had so much debt that they needed
to stretch out their repayment term to lower their monthly
payments. Congress never intended the consolidation loan
program to be a refinancing tool. In fact, when the
consolidation loan program was created in 1986, borrowers paid
the greater of the weighted average of the underlying loans
rounded up to the nearest whole percent, or 9 percent. That
means borrowers paid a minimum interest rate of 9 percent.
Given this historical perspective, it is clear that the
consolidation loan program was not created as a refinancing
tool to secure interest rates like those seen in recent years,
and the explosion in consolidation loan subsidies have been an
unintended consequence that must be addressed to ensure the
future health and viability of the loan programs.
As interest rates began to decline in recent years, a
period most argued was not predicted, nor would last, a record
number of borrowers have consolidated their loans not
necessarily because they needed the intended benefits of the
program, but because of abnormally low interest rates and the
unintended disparity between the consolidation program and the
underlying Stafford program. Under current law, Stafford loans
are variable interest rate loans, and consolidation loans are
fixed interest rate loans. By consolidating a loan under these
conditions, a borrower was able to lock in a long term fixed
rate based on the rates of their underlying loans. In fact,
consolidation loan volume is now very close to Stafford loan
volume. In the 2004-05 academic year there were $55.225 billion
in Stafford loans disbursed and $55.272 billion in
consolidation loans disbursed. Just five years ago, during the
1999-2000 academic year, there were $32.110 billion in Stafford
loans disbursed and only $10.217 billion in consolidation loans
disbursed.
The Committee held a hearing last year entitled, ``Fiscal
Responsibility and Federal Consolidation Loans: Examining Cost
Implications for Taxpayers, Students, and Borrowers,'' during
which Mr. Robert Shapiro, Chairman of Sonecon, LLP and a Senior
Fellow with the Brookings Institution and Progressive Policy
Institute, testified about the long term budgetary impacts of
the consolidation loan program. In his testimony, Mr. Shapiro
stated:
If interest rates move in the most likely way,
taxpayers will pay private consolidators almost $14
billion to subsidize the interest on the current stock
of fixed-rate consolidated student loans over the
lifetime of those loans. Moreover, there is a
reasonable likelihood that the costs will be much
higher over the lifetime of these loans, if interest
rates are 2 to 3 percentage points higher than
projected, taxpayers will pay private consolidators
more than $48 billion to service the current stock of
loans.
In addition, the independent Government Accountability
Office pointed out the problem as well in its report, ``As
Federal Costs of Loan Consolidation Rise, Other Options Should
Be Examined,'' which pointed out that the record low interest
rates and the record high consolidation loan volume has led to
increased administrative costs and subsidy costs in the student
loan programs.
While the Committee acknowledges that in the last few
years, the fixed rate structure of the consolidation loan
program has been advantageous to some borrowers, it is also
clear that sound public policy cannot be based on a snapshot of
a few years of unsustainably low interest rates. In making
long-term policy, the Committee sought information on long-term
trends to see how borrowers and taxpayers would be best served.
In that vein, the independent Congressional Research Service
(CRS) issued a report in 2004 that demonstrated that variable
interest rate consolidation loans would have, more often than
not, been cheaper for borrowers. The CRS analysis showed that
in 13 of the last 18 years--since 1986, the first year of the
consolidation loan program--borrowers would actually have been
better off had their consolidation loans been available under a
variable interest rate. If borrowers had extended repayment of
their consolidation loans to 20 years, the analysis showed
borrowers would have paid less interest in 14 of the last 18
years. This analysis demonstrates that over time, variable
rates are actually beneficial to borrowers by offering the dual
benefits of market fluctuation and an interest rate cap.
H.R. 609 also takes precedent setting steps in offering
borrowers new options in the consolidation loan program. For
the first time ever, a borrower whose loans are held with one
lender will be permitted to shop around with other lenders for
the best deal on a consolidation loan. In addition, when the
borrower consolidates, for the first time ever, the borrower
will be able to choose between a fixed interest rate loan and a
variable interest rate loan. The variable interest rate will be
based on the same fiscally prudent formula that sets the
Stafford loans, the 91-day Treasury bill + 2.3 percent. The
fixed interest rate will be based off of the 91-day Treasury
bill + 3.3 percent with a one time 0.50 percent fixed rate
offset fee. These formulas permit borrowers to obtain
exceptionally good interest rates (both options maintain the
cap at 8.25 percent), but require that a borrower bear a
greater share of the costs and risks associated with the
benefits of up to a 30-year repayment schedule at a low fixed
interest rate.
Direct Loans versus Federal Family Education Loans
Ever since the inception of the Direct Loan program in
1993, there has been confusion and debate as to which program
is better, costs less, and whether the two should coexist at
all. The Committee continues to be concerned about the
budgetary scoring of the Direct Loan (DL) program and the
Federal Family Education Loan (FFEL) program. Our concerns echo
those expressed in the fiscal year 2006 conference budget
resolution adopted earlier this year by Congress. The
resolution includes the following report language concerning
the budgetary scoring of the student loan programs:
Although the Congress strongly supports the Federal
student loan programs, it is increasingly concerned
that the subsidy estimates for the Ford Direct Loan
Program do not reflect the program's true cost to the
Federal Government. For example, the President's 2006
budget reveals that although the program was expected
to result in a net savings of $2 billion from its
inception through fiscal year 2004, the actual
experience is that the program resulted in a net cost
to taxpayers of $3 billion over the same period. This
represents a $5-billion underestimate of the program's
actual cost to taxpayers over roughly 10 years.
Accordingly, the Congress supports the administration's
continuing efforts to direct the Department of
Education to refine and improve its cost estimating
techniques for this program.
The Congress believes it is important for estimates
to be corrected for all known deficiencies so that the
decision makers have sufficient information to compare
the cost to taxpayers of competing policy options, and
large-scale structural reform proposals, in the student
loan programs.
Due to the concerns the Committee had about the costs of
the two programs and because the Committee believes the
competition between the two programs has been beneficial to all
colleges and universities, the Committee made a decision to
allow the market to decide in allowing the competition, which
has been beneficial both to the programs, students, and
institutions, to continue. That competition resulted in better
customer service and borrower benefits in the FFEL program and
has resulted in some increased accountability in the DL program
by the Department of Education. Earlier in this Congress, the
Committee on Government Reform held a hearing entitled,
``Federal Student Loan Programs Are They Meeting the Needs of
Students and Schools?'' with the purpose of exploring the
differences between the two student loan programs as it relates
to the services the programs provide schools and students.
During this hearing, the Director of Student Financial Aid at
The Ohio State University, the country's largest DL
institution, Ms. Natala Hart, spoke about the benefits of the
competition between the two student loan programs. She stated:
We at Ohio State believe both FFELP and DL working
together have resulted in the most effective and
efficient improvements in the financial aid system.
While we remain steadfastly a DL school, we encourage
continuation of FFELP as well as DL, as competition
makes both programs more receptive to students' needs.
At that same hearing, Ms. Cynthia Thorton, Director of
Financial Aid at Dillard University also testified. Her
testimony focused around the problems her university
experienced with the DL program and why they switched back into
the FFEL program. Dillard University joined the DL program in
1996 and left the program in 2003 after experiencing continued
problems with reconciliation of accounts. She stated:
Dillard University entered the FDLP in 1996, after
the program was two years old. Initially, it appeared
that loans were being delivered in a timelier manner.
However, in 1997, the FDLP transitioned its loan
origination services from Computer Data Systems to
Electronic Data Systems. The transition was difficult
on the Department of Education and the schools
involved.
During this transition, student loan services were
interrupted for four to five weeks which created a
financial crisis for the school and loan recipients
awaiting funds to meet fiscal obligations. After
evaluating the challenges the students and the
administration were experiencing with the FDLP, Dillard
University made the decision to return to the FFELP
program.
Dillard's return to the FFELP was a slow process. I
believe if one would ask the Financial Aid Office at
FDLP schools what is the one element they dislike about
the Direct Loan Program, I am sure the overwhelming
response would be the reconciliation. In addition to
the arduous task of administering the FDLP, reconciling
the FDLP was an additional responsibility not required
by the FFELP. I recall many difficulties trying to
reconcile and close out the program simply because
records were lost at the Direct Loan servicer. Even
after providing the agencies copies of cancelled
checks, it was difficult to bring closure to
discrepancies. We officially closed out our loans with
the FDLP at the conclusion of the 2003-2004 school
years.
Ms. Thorton was not alone in her experience. In a survey
conducted by Rockbridge Associates Inc. of Financial Aid
Administrators (FAAs) at institutions that switched from the DL
program to the FFEL program, 20 percent of the FAAs surveyed
said that the decision to switch programs relied heavily on
general issues of customer service and 22 percent said that the
fees and borrower benefits in the program were the reasons the
institutions switched programs. In addition, since the
inception of the DL program, over 500 schools have left the
program to return to the FFEL program. Today, approximately 75
percent of the student loan volume is in the FFEL program and
25 percent is in the DL program. However, the DL schools now
seem pleased with the level of service they are receiving. For
that reason, the Committee focused its efforts in
reauthorization around taking steps toward leveling the playing
field between the two programs from the borrower's perspective.
For example, H.R. 609 phases down fees paid by borrowers so
that by 2010 students will be paying one percent in both
programs. The bill also increases loan limits in each program
and aligns the DL program's extended repayment plan to match
the FFEL repayment plan.
Over the past several years, the Committee tried to better
evaluate the cost of the two student loan programs. While the
Committee passed a reauthorization bill that tried to
strengthen both student loan programs, the Committee remains
concerned that the subsidy estimate for the DL program does not
reflect the program's true cost. The President's fiscal year
2006 budget request indicates that over the life of the
programs, the FFEL program has been re-estimated to cost $7
billion less than originally estimated while the DL program has
been re-estimated to cost $5 billion more than originally
estimated. In addition, in a recently released report, Citizens
Against Government Waste recommended that closer scrutiny of
the costs between the FFEL program and the DL program is
warranted. Earlier this year, the independent auditing firm
PricewaterhouseCoopers (PwC) concluded that the DL program
costs taxpayers significantly more than the Federal budget
estimates show because certain costs and revenues are
completely ignored. For example, budget estimates fail to
account for the revenue generated by taxes paid to the Treasury
by private sector lenders, exclude all administrative costs
associated with the DL program, and utilize biased scorekeeping
rules that continue to underestimate the cost of the DL
program.
The Committee is also concerned that the official
scorekeeping baselines for the Federal student loan programs
are inadequate as a policy decision-making tool because they do
not accurately portray the relative cost of the two major
student loan programs--the DL and the FFEL--or the cost impact
of shifting loan volume between the two programs.
The Committee believes that until the above factors are
accurately accounted for in the official scoring baseline, any
claim of budgetary savings from shifting loan volume among the
student loan programs is premature. This will remain the case
so long as a flawed and incomplete system of accounting remains
in use. Therefore, the Committee intends to work with the House
Budget Committee and the Congressional Budget Office to develop
a more accurate official scoring baseline, that incorporates
the cost and revenue factors identified by the
PricewaterhouseCoopers study, and which will more correctly
account for the budgetary impact of the Federal DL program.
Teacher loan forgiveness
No Child Left Behind requires each State educational agency
to develop a plan to ensure that all teachers teaching in core
academic subjects within the State are highly qualified not
later than the end of the 2005-2006 school year. Additionally,
over the next ten years, school districts will need to hire
over two million additional teachers to keep up with increased
student enrollment.
States and school districts must recruit a greater quantity
of people to the teaching profession while also ensuring
teacher quality. Unfortunately, schools with concentrated
poverty have greater teacher and administrator shortages, fewer
applications for vacancies, higher absenteeism among teachers
and staff, and higher rates of teacher and administrator
turnover. Shortages of math, science and special education
teachers are at a critical level. While No Child Left Behind
will help school districts recruit and train high quality
teachers, more help is needed.
The expanded loan forgiveness for math, science and special
education teachers, as well as reading specialists, is a
longstanding priority for the Committee and the Congress. There
are demonstrated shortages of teachers in these subject areas,
particularly in rural and urban school districts that serve
disadvantaged students. According to The Urban Teacher
Challenge, released in January 2000, the nation's largest urban
school districts responding to a national survey reported
immediate needs for math (95 percent), science (98 percent) and
special education teachers (98 percent). The National Center
for Education Statistics reports, for the 1999-2000 school
year, that 67 percent of public elementary and middle schools
had vacancies in special education, 70 percent in mathematics,
61 percent in biology and 51 percent in physical science.
According to the Center for the Study of Teaching Policy,
almost 57 percent of public school teachers are teaching
physical science without a major or minor in their field. H.R.
609 will provide incentives that will allow flexibility to
local schools to recruit and retain highly qualified teachers
in these critical subject areas in both public and private
elementary and secondary schools across the country. Similar
loan forgiveness measures have been included in President
Bush's annual budget requests in 2002, 2003, 2004, 2005, and
2006 and approved by Congress in 2002 (H.R. 5091), 2003 (H.R.
438), and 2004 (H.R. 5186).
H.R. 609 complements No Child Left Behind's focus on
improving the education that children receive, particularly the
education that disadvantaged students and students with
disabilities receive, by supporting quality teachers for our
children. H.R 609 makes permanent the expanded mandatory
teacher loan forgiveness maximum amount of $17,500, up from the
previous $5,000, of a teacher's outstanding loan obligation for
those teaching math, science or special education for five
years in a title I school. In addition, H.R. 609 includes loan
forgiveness for reading specialists, recognizing that literacy
is one of the most important building blocks students need to
learn in order to be successful throughout their lives. The
teacher must teach for five consecutive years in a title I
school for five years in order to qualify. Additionally, in
order to aid those students who are not able to meet their loan
payments while they are teaching, the Secretary has authority
to provide the borrower a waiver of that repayment obligation
if the borrower can prove, in accordance with regulations
promulgated by the Secretary, economic hardship.
By offering additional financial support for public and
private elementary and secondary teachers who have made a
commitment to teach in title I schools in the defined critical
subject areas--math, science and special education--this bill
can make it possible for more disadvantaged students to be
taught by caring and competent teachers in subject areas that
will help shape not only the student but the economic future of
the country. Teaching in high need, low income schools isn't
always easy, but nowhere is it more important.
H.R. 609 includes a provision that would permit private
school teachers who are otherwise exempt from State
certification requirements related to highly qualified teacher
status to also take advantage of the increased amount of
teacher loan forgiveness included in this bill. H.R. 609
considers private school teachers to be in the same category as
charter school teachers under the highly qualified teacher
provisions of No Child Left Behind. Further, allowing private
school teachers to fulfill rigorous subject matter and skills
knowledge requirements by achieving passing scores on
nationally developed and available teacher competency tests
would provide private school teachers the opportunity to
participate in the loan forgiveness program even in States that
preclude such teachers from taking State teacher competency
tests.
The Committee believes we need to do everything we can to
encourage college students to enter a field that, while
challenging, is one of the most rewarding careers one can
undertake. H.R. 609 will help to encourage the best and the
brightest of our nation's college students to enter the
teaching profession to remain committed to the profession and
the schools in which they teach.
National need loan forgiveness
H.R. 609 also updates the existing authority for
discretionary loan forgiveness for child care workers, a
program that has not received funding in recent years in its
current form. Under the bill, the Committee expanded the
program to offer up to $5,000 of loan forgiveness to
individuals in professions considered to be areas of national
need as designated by the Secretary. This program includes loan
forgiveness for early childhood educators, nurses, foreign
language specialists, librarians, bilingual educators, first
responders in low income communities, child welfare workers and
speech language pathologists. These items were added by the
Committee as priorities at this time.
During the mark-up, Representative Porter (R-NV)
highlighted that dating back to 2000, there was a six percent
shortage of nurses and other health care professionals. That
shortage is projected to increase to a shortage of almost 30
percent in the next 15 to 20 years. There is also a shortage of
professionals available to teach students to become nurses,
exacerbating the shortages today and those we will see into the
future. Over the next 10 years, more than two million teachers
will leave the field for other careers. With the continued
vacancies in the nursing profession, we need people willing to
go into the teaching field to educate students hoping to pursue
a career in nursing. In addition, Representative Platts (R-PA)
brought to the Committee's attention the shortage of early
childhood educators and the importance of having qualified
people serve in these positions. The Economic Policy Institute,
the Keystone Research Center and the Foundation for Child
Development recently published a report titled, ``Losing Ground
in Early Childhood Education: Declining Workforce
Qualifications in an Expanding Industry, 1979-2004,'' in which
it was demonstrated that the number of early childhood staff
with college degrees has dropped significantly over the past 20
years, from 43 percent to 30 percent. In addition, the report
pointed out that the most educated cohort of early childhood
teachers are retiring in the next 15 years and there are not
enough students in the pipeline to fill those positions.
The Committee believes authorizing loan forgiveness for
these areas with demonstrated national need will provide a step
in the right direction as the nation works to alleviate
shortages in key fields.
Cutting excess spending out of the student loan programs
H.R. 609 makes a number of reforms that alter the Federal
investment in the student loan programs and ensure Federal
funds will be spent more wisely on behalf of students and
taxpayers. Perhaps most visible of these reforms given the
significant media attention to the issue in the months
preceding reauthorization is the provision for a comprehensive
and permanent end to provisions that allow certain lenders to
collect higher than market rate yields--the so-called half SAP/
9.5 floor for special allowance--on some students loans. The
history of these provisions is complex, but the solution
provided under H.R. 609 is unambiguous.
By way of background, current law and regulations permit
lenders with access to pre-October 1, 1993 tax-exempt bond
estates to receive a minimum return on the loans of 9.5
percent. This practice originated in order to place non-profit
lenders on a more level playing field with other types of
lenders; through eligible tax-exempt bonds, non-profit lenders
were guaranteed to receive half the special allowance payment
(SAP) of banks, or a minimum of 9.5 percent. The special
allowance payment of half SAP or at least 9.5 percent, from
here forward to be referred to as 9.5 percent subsidies, was
put into the law in the 1980s when interest rates were much
higher and the Federal government needed to infuse additional
capital into the program.
The Omnibus Reconciliation Act of 1993 eliminated the
guaranteed 9.5 percent rate of return for tax-exempt bonds
going forward as interest rates began to fall. Many, including
the Committee, believe Congressional intent was that over time,
as the eligible bonds were paid off and retired, the 9.5
subsidies would be eliminated entirely. However, through a
series of administrative actions, the subsidy payments were
allowed to continue.
In 1993, the Clinton Administration issued a Dear Colleague
Letter that permitted the 9.5 percent subsidies to continue by
allowing eligible bonds to be refinanced without losing the 9.5
percent benefit. In 1996, the Department of Education under the
Clinton Administration issued another piece of administrative
guidance that permitted loans to be transferred in and out of
eligible bonds, allowing still more loans to become subject to
the higher guaranteed rate of return. This practice of
transferring, in particular, has been responsible for the
significant growth in volume of 9.5 percent subsidies, as
eligible loans have been transferred to taxable bonds.
In recent years interest rates have dropped dramatically
and the 9.5 percent subsidies have created a windfall for some
lenders. The Committee believes that while the 9.5 percent
subsidies may have made sense two decades ago, when the
economic climate was much different than it is today, the time
has come to put an end to this unnecessarily high rate of
return. During the 108th Congress, temporary legislation was
enacted to provide an immediate halt to the practices that had
allowed the volume of 9.5 percent subsidies to grow:
transferring loans in and out of eligible bonds, and refunding
bonds to extend the maturity date. The Committee was clear when
that bill, the Taxpayer-Teacher Protection Act (P.L. 108-409),
was enacted, it was merely a temporary solution. The complete
and permanent closure of the 9.5 percent subsidies was to come
during the Higher Education Act reauthorization.
There is ample evidence that the administrative actions
during the Clinton Administration allowed the 9.5 percent
subsidies to expand, rather than decline as was originally
intended. From 2001 to 2004, the Department of Education's
special allowance payments on these ``9.5 loans'' increased
from $209 million to $955.5 million. Between the time Congress
passed the Taxpayer-Teacher Protection Act in October 2004 and
the third quarter of fiscal year 2005, special allowance
payments on these loans have dropped from $262 million to $210
million and loan volume has decreased from 17.5 billion to 14.6
billion.
With demonstrated proof that the Taxpayer Teacher
Protection Act is working, the Committee believes the 9.5
percent subsidies are well on their way to being eliminated
entirely. Through H.R. 609, the Committee makes the provisions
of the Taxpayer-Teacher Protection Act permanent, and goes a
step further by also closing down the practice known as
recycling, which permits the proceeds of an eligible bond to be
reinvested in new loans which also carry the higher rate of
return. Taken together, the reforms in H.R. 609 will halt the
practices of transferring, refunding, and recycling, and no
additional loans will be tagged with the special 9.5 percent
subsidies. Subsidies are already declining rapidly, and under
the bill, in time they will be eliminated all together.
A second practice which spends Federal funds unwisely is
known as the ``Super Two Step,'' a practice whereby lenders
counsel borrowers with FFEL consolidation loans to re-
consolidate into the DL program and then re-consolidate again
into the FFEL program. As previously stated, the intent of the
consolidation loan program was to permit borrowers to either
lower their monthly loan payments by stretching out their
repayment term or consolidate multiple payments into one
payment. The program was never intended to be used for
refinancing purposes. This practice subverts all Congressional
intent of the statute and has resulted in millions of dollars
being bled from the Federal Treasury.
H.R. 609 also stops another form of excess earnings in the
loan programs, in which lenders are able to collect more than
their guaranteed minimum rate of return. The structure of the
loan programs provides for a minimum rate of return for lenders
to ensure funds are available to students, as well as a below
market interest rate for borrowers. The lenders' guaranteed
rate of return, known as a lender yield, fluctuates with the
market. Student loan interest rates also fluctuate with the
market. As a result, the borrower rate--still below the market
rate for other consumer loan products--may sometimes exceed the
lender yield. In simple terms, this means the rate being paid
by the borrower is actually higher than the minimum rate
guaranteed to the lender. H.R. 609 requires lenders to return
to the Federal government these excess earnings, otherwise
referred to as ``floor income.'' This reform will generate
savings for taxpayers while preserving the basic structure of
low rates for borrowers and minimum returns for lenders.
Risk sharing
The Federally guaranteed loan program is based on the
premise that the Federal government guarantees lenders against
default, in exchange for which lenders offer capital to loan
borrowers at below market rates. In the past several years,
lenders have significantly increased efficiency and improved
program operation, and as a result, are able to provide student
loans with a lower cost of capital while still providing
valuable benefits to borrowers. Student loan borrowers have
already begun to benefit from the improvements made by lenders,
and under H.R. 609, taxpayers will also begin to benefit.
Given the increased efficiency in the loan programs and the
historically low default rates, the Committee believes it is
prudent for lenders to accept a modest increase in the risk
sharing. In addition, the Committee feels strongly that FFEL
program participants, lenders, and guarantors must continue
efforts in the area of default aversion to ensure default rates
remain low. The Committee agreed with the President's fiscal
year 2006 budget submission to Congress on this point.
Representative Tom Petri (R-WI) responded by introducing an
amendment, which the Committee accepted, that reduced lender
insurance from 98 percent to 96 percent and reduced guarantor
reinsurance from 95 percent to 93 percent. When lender
insurance is cut, the guarantors are not required to reimburse
the lenders as much and therefore should be proportionately
reduced in the reinsurance paid by the Federal government. In
addition, the cut to guarantor reinsurance will provide an
additional incentive to guaranty agencies to continue to excel
in preventing delinquencies and defaults. As previously
mentioned, H.R. 609 also infuses more stability in the
financial health of the guarantor's system by requiring
borrower payment of the one percent Federal default fee.
To further strengthen the loan programs in the interest of
American taxpayers, the Committee has provided for common sense
changes to reward high-performing lenders and servicers.
Currently, a large majority of the loan volume qualifies for
the 100 percent insurance award that comes with the designation
of a lender or service as an ``Exceptional Performer.'' As of
the writing of this report, the Department of Education has
awarded the Exceptional Performer designation to 11 lenders or
servicers. Of those 11, the servicers together service loans
for 93 lenders and the lenders are all in ranked in the top 35
of loan holders. These numbers demonstrate that a large
majority of the loan volume is currently receiving 100 percent
insurance, rather than the standard 98 percent. With so little
risk sharing in the program, lenders and servicers have little
incentive to continue to strive to improve their default
aversion methods. The Exceptional Performer program has
achieved its goal and the Committee believes it is time to
retool the program so that it continues to serve its original
purpose--to push lenders and servicers to improve their
programs thereby resulting in lower defaults. To that end, the
Committee ties the exceptional performer designation to outcome
based measures rather than the current method, which demands
nothing more than a score on a compliance audit. The new
Exceptional Performer designation is also constructed in such a
way that only the best lenders and servicers are awarded this
designation by only permitting the top five percent in the
industry to receive the special award.
Repayment plans
In recent years, college students have seen a rise in the
cost of college and similarly, a rise in the amount of student
loan debt they need to take on in order to pay for that rise in
college tuition. In addition, over the past few years, the
market has provided record low interest rates on their student
loans. When students graduate, they are faced with a decision
about whether to consolidate their loans, thereby stretching
out their monthly payments, or to pick one of the repayment
plans currently offered within the Stafford loan program. Under
current law, DL borrowers will find themselves with different
options than FFEL borrowers. H.R. 609 levels the playing field
by conforming the DL repayment plans to match the FFEL
repayment plans.
Under current law, borrowers who have just graduated and
may not have a job right away or who may have a low-paying job
have limited options as far as avenues to lower their monthly
payment without stretching out their debt. The Committee
believes this is an important gap to fill as some students may
just need temporary relief and do not want to stretch their
payments out longer than 10 years. H.R. 609 implements an
interest only repayment plan whereby borrowers pay only the
interest accruing on their loan, or $600 annually which ever is
more, for the first two years they are in repayment. This new
interest only repayment plan, which is added to both the FFEL
and DL programs will give borrowers additional repayment relief
as they begin their careers without having the borrowers forced
into the consolidation loan program or forced to default
because they do not have the funds to make the initial
payments.
Military deferment
In 2003, Congress extended the Higher Education Relief
Opportunities for Students Act (HEROES), P.L. 108-76, granting
the Department of Education waiver authority of statutory and
regulatory student loan requirements for college students who
had been called to active duty in the U.S. Armed Forces. The
Department of Education implemented the waivers in December
2003. Since that time, students serving in the Armed Forces
have enjoyed the benefits of extended in-school deferment on
their loans, relaxed requirements to obtain a leave of absence
from the school and extended grace periods if the student was
in grace when he or she was called to serve. In addition,
student loan borrowers that obtained loans prior to July 1,
1993 were able to qualify for a military deferment. This
deferment option was removed during the 1992 reauthorization.
The Committee believes members of the military that have
accrued loans since July 1, 1993 should also be afforded these
same benefits and accepted an idea proposed by Representative
Tom Osborne (R-NE) to solve this discrepancy. As a result, H.R.
609 includes a provision that extends a student loan deferment
option to members of the Armed Forces or National Guard serving
on active duty during a war or other military emergency or
national emergency. This new deferment will permit the
borrowers to forgo payments on their loan principal without
going into default. In addition, all interest accruing on
subsidized loans will be paid for by the Department of
Education. The borrower will have the option of either paying
the interest that is accruing on the unsubsidized loans or not
paying the interest and having it capitalize at the end of the
deferment period. This new provision will permit our service
members the ability to concentrate on the task at hand without
having to worry that they are meeting their monthly student
loan payments. The provision also sends a message of support to
our deployed troops, many of whom have left their families and
often their civilian jobs, that they do not have to forfeit the
right to an affordable education in order to serve their
country in uniform.
Financial education and additional disclosures
The rules and regulations surrounding the student loan
program are complex and can be extremely confusing to
borrowers. With students taking on increased levels of student
loan debt to finance their education and with the strong
detrimental effects on a borrower's credit report that evolves
from defaulting on student loan payments, the Committee
strongly believes that more financial education should be
infused into the law. Currently, students must attend both
entrance counseling and exit counseling in order to take out
student loans. However, often these sessions are held in
auditoriums or big group settings where the borrower is not
given counseling that directly meets their financial situation.
In addition, more and more financial aid offices are taking
their entrance and exit counseling online where the borrower
can quickly click through some instructions and answer a fairly
simple quiz that, again, does not address their specific
financial situation. These counseling sessions also do not take
into account other spending or budgeting needs of a newly
graduated student. The Committee has spoken with many lenders,
servicers and guarantors regarding the steps these entities are
already taking to provide borrowers with better counseling.
FFEL participants are taking more steps than necessary in order
to ensure that their customers are well informed. However, the
Committee strongly believes there is an important Federal
purpose here, so H.R. 609 is infused with various provisions
requiring guaranty agencies to undertake additional steps in
the financial education area. It is the hope of the Committee
that with the new provisions, students and borrowers will be
better informed about the burden of borrowing more money than
necessary and will also be counseled on how to work into their
overall budget their student loan obligations which will
prevent delinquencies and defaults.
The goal of creating better informed borrowers also spills
into the consolidation loan program. Over the past several
years, the Committee has heard from Americans all across the
country who consolidated their loans at much higher interest
rates because they were not told that they could only
consolidate once or that they would lose certain benefits upon
consolidating. In addition, with the advent of the record low
interest rates, an increased amount of direct-to-consumer
advertising in the student loan industry has commenced. In
response to these new trends, H.R. 609 takes steps to ensure
that borrowers are being given all of the relevant information
by these companies. The bill requires that lenders give
borrowers information on the effects of consolidation on the
borrower's total interest to be paid, fees to be paid and
length of repayment. In addition, the borrower is to be told
about how the consolidation loan would change the benefits
given by the underlying loan, the ability of a borrower to
prepay the loan or pay on a shorter schedule. Finally, lenders
are also required to disseminate information on any tax
benefits for which the borrower could be eligible. The
Committee believes these additional disclosures will help
borrowers more fully understand their rights under the student
loan program and assist borrowers in deciding whether it is
financially prudent to consolidate their loans.
The Committee has also heard from borrowers who indicated
that they wanted to be able to find the best offer on their
consolidation loans or find a lender with different customer
service. Currently, if borrowers have all of their loans with
one lender, the borrower must consolidate with that lender.
H.R. 609 expands the borrower's options in eliminating this
inflexible rule. With the changes in the Committee's bill,
borrowers will now be able to shop around to find the best
offer that suits their financial needs.
Credit bureaus
In 2003, the media reported on an incident with one lender
where the student loan company stopped reporting to all three
national credit bureaus and instead reported its borrowers'
payment information to just one bureau. The lender defended its
actions by saying that it wanted to protect its customers'
privacy because the other two credit bureaus were selling its
borrowers' loan information to other student loan companies.
This lack of disclosure affected borrowers' ability to obtain
mortgages and credit cards, and had a particularly detrimental
effect on first time home buyers. Mortgage lenders will often
look at all three bureaus' credit scores and average them for a
particular borrower in order to determine the feasibility of
lending to the borrower. If the borrower's scores are
inconsistent, this could harm the borrower's ability to obtain
a positive review by the mortgage lender. The Committee
understands the dramatic effect paying, or not paying, student
loans back has on a borrower's credit rating and believes
strongly that a lender should report information to all
national credit bureaus. H.R. 609 requires that lenders must
report loan payment information to all national credit bureaus,
not just one or two particular companies.
Disability determination
H.R. 609 makes a subtle but powerful change to the
parameters around total and permanent disability discharge
provisions. The Higher Education Act has long provided for the
discharge of a student's loan in the case of death and total
and permanent disability. In 2000, the regulations surrounding
the total and permanent disability discharge changed
dramatically. New and additional burdens to students already
facing very difficult life and health situations were added in
an effort to stem perceived fraud and abuse. While the
Committee agrees with enforcing standards to ensure only those
truly eligible receive such a benefit, the accompanying
requirements must also be reasonable. H.R. 609 provides if the
Veterans Administration or the Social Security Administration
determines an individual is in fact totally and permanently
disabled, the Secretary of Education shall accept that
determination. The Committee believes that a balance can be
achieved between providing for this discharge without
unnecessary administrative burden on recipients and preventing
fraud and abuse. The Committee believes that once an individual
has met the burden of proof relating to disability for the
purposes of the discharge of a student loan under rules
established under another Federal agency, there should be no
need for an additional Federal agency to revisit that
determination.
School as lender
The Committee believes that there is a need to clarify
Congressional intent with respect to the school as lender
program and put into place additional protections for students
whose schools serve as the lender given the inherent conflict
of interest that may exist with this arrangement. According to
the Government Accountability Office, schools receive a premium
for the loans anywhere between two and six percent of the face
value of the loans. Under current law, schools are permitted to
use the premiums made off of selling the loans for their own
purposes, but must use the borrower interest payments and
special allowance payments from the government for need based
grant programs. For students attending those institutions, the
financial aid office is both their lender as well as their
financial advisor. The Committee views the school as lender
program as an inherent conflict of interest in the school's
role, which is, first and foremost, to educate the student and
second, to ensure that the student is receiving the best
financial aid package for his or her financial situation. H.R.
609 takes additional steps to reduce the role schools can play
as a student's bank by permitting schools to only lend to
graduate students, not parents or undergraduate students, and
also further restricts where the profits the school is making
can be spent. If schools are making money from the program, the
Committee believes it should be put back into the need based
aid programs at the school. Through requiring that the schools'
profits from its lending programs be put into the need based
aid programs, H.R. 609 takes one more step to ensure that
students receive the funding they truly need to attend college,
without forcing the student to take out more costly private
loans.
Institutional default reduction initiatives
H.R. 609 permanently extends two expiring provisions within
the Higher Education Act that provide incentives to
institutions to keep their default rates low and assist
students in receiving student loan funds without delay. The
1998 Higher Education Act reauthorization provided for a waiver
of multiple disbursements required for single term loans, and
of a 30-day delay in delivering loan funds to a student who is
enrolled in the first year of an undergraduate program of study
and who has not previously borrowed. The Committee believes
that it is important to extend these two provisions, as they
have provided an incentive for institutions of higher education
to maintain low default rates and serve to benefit students,
who are able to receive Federal student aid funds faster and
more efficiently.
Campus based aid programs
H.R. 609 contains provisions to phaseout base guarantee
allocations to institutions of higher education in the three
campus based aid programs--Federal Work Study (FWS), Perkins
loans, and Supplemental Educational Opportunity Grants (SEOG)--
based on previous allocations, or the ``base guarantee'' over
the period of 2008-2016. The New York Times highlighted the
problem in a November 2003 story, when it reported, ``The
federal government typically gives the wealthiest private
universities, which often serve the smallest percentage of low-
income students, significantly more financial aid money than
their struggling counterparts with much greater shares of poor
students'' (``Rich Colleges Receiving Richest Share of U.S.
Aid,'' Greg Winter, New York Times, November 9, 2003).
While certain institutions and associations, such as the
California State University (CSU) System and the National
Association of Student Financial Aid Administrators (NASFAA)
have urged a more rapid phaseout, the Committee chose this time
frame to ensure that all institutions of higher education had
ample time to adjust to the new funding formula. Under current
law, the campus based aid funding formulas ensure that
participating institutions receive no less than their base
guarantee. Since 1986, an institution's base guarantee has been
the principal determinant of its current year allocation,
regardless of whether its enrollment of financially needy
students increased, decreased, or remained constant. This
``hold harmless'' provision drastically reduces the funding
available to students attending institutions that have seen
dramatic increases in the enrollment of students from low-
income families.
The bill proposes to phase out the base guarantee and
replace the formula with the ``fair share'' formula already
provided for in current law. The fair share formula bases its
allocation on important criteria such as the number of
financially needy students and the tuition and fee costs at the
institution. These criteria are relevant and reflect the needs
of the campus more so than a historical funding figure that may
be awarded to institutions in a manner disproportionate to the
number of needy students at the campus.
Defenders of the status quo have historically tried to pit
states and even individual colleges and universities against
one another by claiming that a ``fair share'' formula will cut
their portion of student aid. This argument misses the point
entirely. When it comes to Federal student aid, it's not about
one state versus another or one college versus another: it's
about how Congress can best assist individual needy students.
The solution is one of basic fairness. Federal student aid
should be awarded based on the financial need of students. The
base guarantee concept is especially unfair to students at new
institutions or new campuses. For new institutions, the base
guarantee is calculated using enrollment data from the first 1-
2 years of the institution's program participation. The
``snapshot'' of student enrollment generally does not reflect a
mature campus population as the new campus adds both programs
and students in its early years. The result is an artificially
low campus based aid allocation for a growing student body and
little new money to be distributed to students on a ``fair
share'' basis.
Under current law, the majority of funding provided for the
campus-based aid programs is allocated for base guarantees.
Approximately more than 40 percent of funding is available for
allocation according to fair share criteria in SEOG, about 30
percent in FWS and only 8 percent in Perkins loans. With most
funding being devoted to meeting institutional base guarantees,
little Federal money is actually being allocated to
institutions based on their needy student population.
The Committee is concerned over the inequity of the current
formula and is especially concerned for the students who will
go underserved if the campus based aid formula goes unchanged.
Perkins loan program
Federal financial assistance programs significantly boost
the chance for students to pursue a higher education. In
particular, the Perkins loan program offers low interest rates
to students through campus-based revolving funds.
Perkins loan borrowers are predominantly from lower income
families. These students are often the first in their family to
attend college. For the 2003-2004 academic year, the Department
of Education reports that 630,000 students borrowed $1.46
billion in Perkins loans, with an average amount of $2,003
awarded per student. Since the inception of the Perkins loan
program in 1958, over $27 billion dollars in loans have been
made to students through almost 25 million financial aid
awards.
While the Committee applauds the Administration's budget
proposal to enhance the financial aid programs, this increase
would come at the expense of the elimination of the Perkins
loan program, which is a critical source of low-interest loans
that many students rely on to pay for college. Perkins loans
provide substantial financial assistance to millions of
students and families across the country. H.R. 609 reauthorizes
the Perkins loan program and makes additional reforms to ensure
funds are targeted to the neediest students and the program
continues to operate in an efficient manner.
Within the Perkins loan program, H.R. 609 makes clear that
a student who has a defaulted loan may be eligible for
rehabilitation if it is practicable, especially in cases where
a judgment has been entered against the borrower. However,
rehabilitation is not an entitlement to the borrower, as
institutions of higher education have often gone to significant
time and expense in obtaining a judgment against a borrower who
refuses to repay a loan in default. In those cases, it may not
be in the best interest of the program to require that a
borrower be offered the benefits of loan rehabilitation. The
Committee believes that the decisions should be left up to the
institution or the Secretary to determine on a case-by-case
basis so that unique situations and circumstances can be
considered.
Need analysis--simplification
Two years ago, Congress tasked the Advisory Committee on
Student Financial Assistance, which provides advice and counsel
to Congress and the Secretary of Education on student financial
aid matters, to conduct a study on options to simplify the
student financial aid process. Its primary task was to examine
possible changes to the financial aid process to make it more
understandable and less complex, especially for low- to
moderate-income families, without increasing program costs or
reducing program integrity. The final report, ``The Student Aid
Gauntlet'' was released with ten major recommendations. In
response to Congressional concern that the Advisory Committee
had not fulfilled its obligation regarding the potential costs
associated with its recommendations, the Advisory Committee
claimed that ``Eight of the ten recommendations do not require
any increase in program costs.'' The Committee wishes to
reiterate that the Advisory Committee's analysis only took into
account the cost implications to the Pell Grant program, and
not the mandatory cost implications for the student loan
program. While minimal, some of the modifications made to H.R.
609 as suggested by the Advisory Committee's report have
mandatory cost implications. The Advisory Committee's
recommendations that were not adopted in H.R. 609 would likely
have had significant cost implications. The Committee is
committed to access and providing streamlined and simplified
means for students to access postsecondary education. However,
given current budgetary and fiscal constraints, the Committee
believes the Advisory Committee should have more appropriately
recognized the fiscal barriers that precluded implementation of
some of the recommendations.
While many of the reforms of the Advisory Committee were
adopted in H.R. 609 and have bipartisan support, the Committee
remains concerned that the approach taken by the Advisory
Committee in its dissemination of the final report to the press
prior to delivery to Congressional requesters was careless and
inappropriate. The Committee hopes that with a new
reauthorization, the Advisory Committee will work together with
Congressional leaders to continue the work of providing
policymakers with ways to understand and ideas to reform the
Federal, State and institutional programs that provide need-
based aid to millions of students.
H.R. 609 provisions and the amendment offered by
Representatives Howard P. ``Buck'' McKeon (R-CA), Tim Ryan (D-
OH) and John Tierney (D-MA) implement the non-cost related
recommendations of the Advisory Committee. The provisions help
break down barriers for students and their families that want
to pursue the dream of a higher education by directing the
Secretary to develop a streamlined application and re-
application form and encouraging the Secretary to reduce the
number of data elements required on the Free Application for
Federal Student Aid (FAFSA). Excessive data elements make the
FAFSA confusing and time-consuming, especially for low- and
middle-income families and first-generation college students.
H.R. 609 aligns eligibility for the Simplified Needs Test
(SNT) to other means-tested Federal benefit programs. The
Committee believes this alignment will allow more students to
take advantage of the simplified application form for SNT
eligible students. Additionally, the bill directs the Secretary
to develop an EZ-FAFSA to allow auto-zero eligible students
access to a simplified paper application.
Additionally, the bill directs the Secretary to submit to
students and their families ``early estimates'' where a student
can submit their FAFSA prior to enrollment to obtain an
estimate of their financial aid package. The Committee believes
this will allow families to plan in advance for their child's
education and be more informed about the realities of college
cost and the amount of financial aid available.
During the 1992 reauthorization of the Higher Education
Act, the bill passed by the House of Representatives included a
provision that exempted small business assets from need
analysis formula. Representative Marilyn Musgrave (R-CO)
offered, and the Committee accepted, a similar amendment that
exempted small business assets from the need analysis formula
for families that own a business that employs less than 100
full-time equivalent employees. Under current law, farm
equipment and other assets attributed to farms are excluded
from the need analysis formula. The Committee believes this
same protection should apply to small business owners, who
should not be asked to borrow against their way of living to
finance a child's education.
Internal Revenue Service data match
H.R. 609 contains a provision that will greatly enhance the
integrity of Federal student aid programs and will help
accomplish the goals of President Bush's initiative to reduce
erroneous student aid payments government-wide. The bill
provides authorization for the Secretary of Education to work
with the Secretary of the Treasury to provide for an Internal
Revenue Service (IRS) data match. Multiple Inspector General
(IG) reports have found significant evidence of student
applicants (either by error or fraud) underreporting income on
the student financial aid application and the FAFSA, thus
gaining eligibility to higher than deserved Pell Grant awards.
Statistical test matches between the Department of Education
and the IRS confirm the IG findings of significant
underreporting (and thus significant overpayments) in the Pell
Grant program. IG reports have further concluded that the
Department of Education's current verification process is
inadequate to address the fraud and error in Pell Grant awards.
During the 108th Congress, H.R. 3613, the Student Aid
Streamlined Disclosure Act of 2003, was introduced by
Representative Sam Johnson (R-TX) and would require the Federal
government to improve the verification process for Pell Grant
awards through an IRS data match. In addition to helping to
reduce the under-awarding of Pell Grant benefits for students
who actually qualify for more generous awards, the bill was
estimated to free up as much as $340 million that Congress
could use to better serve the increasing number of needy
students legitimately receiving Pell grants or increase the
maximum Pell Grant award for students.
Income protection allowance
H.R. 609 increases the income protection allowance for
dependent students to $3,000 for the 2006-07 academic year.
This increase will offer additional protections for students
that need to work while in college without having those hard-
earned funds reduce the amount of Federal financial aid awarded
to them.
Portable student scholarship treatment
Facing increasing pressure to deal with high college costs
and tight budgets, some States are seeking innovative
opportunities to focus higher education funding directly on
students. Some States are directing the subsidy they
traditionally provide to institutions of higher education to
individual students in the form of portable scholarships,
rather than subsidizing State-level institutions that in turn
may serve some students within the State.
For example, the State of Colorado developed the College
Opportunity Fund (COF), which links State funding directly to
resident undergraduate students. Through the COF, the State is
able to be up front with potential students and their parents
about the cost of higher education and the State's willingness
to help fund college costs. The State of Colorado will do this
by collecting information through performance contracts that
will make public information such as: student enrollment,
transfer, and graduation rates; student satisfaction and
performance; and institutional cost and productivity.
Specifically, under the new State system, the State will no
longer make direct lump-sum financial transactions to its
public institutions for undergraduate education. Instead, funds
will go to public and private institutions on behalf of
resident undergraduate students in the form of a per-student
stipend. Stipends are set annually by the General Assembly in
Colorado during the budget process and the allocation is
defined on a credit hour basis. The stipend for the 2005-2006
academic year is $2,400 per student for public institutions and
$1,200 per student for the participating private institutions.
While these types of state choice programs may appear to
direct a large sum of financial aid to students, in reality, it
is simply a new methodology for distributing subsidies that
have always been provided to higher education. Student
financial aid is calculated based on a complex group of
factors, including the amount of aid awarded from other
sources. Therefore, because this is a new way of awarding funds
to students, this type of State higher education subsidy if not
protected in Federal law, may actually hinder a student's
eligibility for Federal student aid. The Committee believes
that students should not lose out on Federal aid simply because
their State has chosen an innovative option for funding higher
education institutions. The amendment offered by Representative
Marilyn Musgrave (R-CO) simply ensures students will not lose
eligibility because of their State higher education funding
process.
Return of Title IV
Within the return of title IV funds policy, H.R. 609 simply
clarifies current law that a program measured in clock hours
may, under certain circumstances, use scheduled hours to
determine the percentage of the payment period or period of
enrollment for which assistance has been earned. H.R. 609 makes
clear that students are not to return more than 50 percent of
the total grant assistance they received. This clarification
will assist students from the lowest income families who
receive large Pell Grant awards. The amount returned will be
only that amount which exceeds the 50 percent remaining after
the calculation has been completed. The Committee wishes to
alleviate a burden, which falls disproportionately on the
lowest income students, while ensuring that students are
responsible to return some portion of the grant assistance
received from the Federal government when the student withdraws
from school. The bill also clarifies that a student will not be
required to return sums of $50 or less.
In order to assist Pell Grant recipients who are forced to
withdraw from their institution of higher education due to a
natural disaster as declared by the President, Representative
Ric Keller (R-FL) offered an amendment to grant the Secretary
waiver authority for purposes of the return of title IV
formula. Waiver authority currently exists for institutions of
higher education that are adversely impacted by natural
disasters. However, there is no authority for the Secretary to
work with the nation's neediest students in times of
catastrophe. This provision is narrowly and responsibly crafted
to protect low-income students who are forced to withdraw from
school because of a Federally-declared natural disaster.
Drug provision
The Committee believes strongly in providing clarification
to the drug ineligibility requirements now in law. Only those
students who are enrolled in an institution of higher education
and receiving Federal financial aid should be subject to the
ineligibility requirements. This will ensure the provision
serves the purpose for which it was intended: to serve as a
deterrent to prevent drug offenses while students are enrolled
in higher education at taxpayer expense, and not to reach back
and limit financial aid for past offenses.
Campus disciplinary proceedings
The Committee acknowledges the importance of informing the
victim, or the next of kin in case of death, in specific
instances of student misconduct at institutions of higher
education; however, it also recognizes the need to maintain the
protection and privacy of student educational records, as
required under Federal privacy laws. Therefore the Committee
approved a requirement for institutions of higher education to
disclose the final results of any disciplinary proceeding to an
alleged victim of any crime of violence or non-forcible sex
offense. This will ensure the institution carefully examines
the complaint and if any action is taken that the victim, or
victim's family, knows what action the institution took in
regard to the crime and is informed while protecting student
privacy. This provision will help institutions of higher
education and victims work together toward greater safety on
campus.
Distance education
In the 1992 reauthorization of the Higher Education Act,
Congress enacted provisions to restrict access to title IV
funds for institutions offering more than 50 percent of their
courses by correspondence or enrolling 50 percent or more of
their students in correspondence courses. An unintended and
unforeseen result was that the definition of correspondence
included telecommunications, which over the last decade has
encompassed distance education on the Internet.
In 1998, Congress created the Distance Education
Demonstration Program that provides waivers to these rules for
participating institutions and created a Commission to study
the quality and accessibility of distance education. Internet-
based distance education was still relatively new at that time.
The Distance Education Demonstration Program was one means to
study distance education to determine appropriate changes to
the Higher Education Act. The Commission, with former Senator
Bob Kerrey as Chairman and then-Congressman Johnny Isakson as
Vice-Chairman, and the Distance Education Demonstration Program
found that distance education is capable of providing access to
millions of students, particularly working adults, at a level
comparable to on-ground education. Both the Web-based
Commission and the Department of Education have recommended the
repeal of the 50 percent rules which continue to limit
students' access to distance education.
The Committee repeals the application of the 50 percent
rule's application to distance education to ensure the higher
education system can take advantage of technological
advancements that create new opportunities for students and
schools. By removing unnecessary barriers to distance
education, the Committee believes institutions of higher
education will be given the flexibility to increase the use of
technology and provide students with new postsecondary options.
Financial rules, administrative capability rules, and
accreditation safeguards remain in place to prevent fraud and
abuse. While maintaining the rule for correspondence classes,
the bill also continues and expands the Distance Education
Demonstration Program to include up to five accredited, degree-
granting correspondence schools.
The Committee understands that Internet-based distance
learning is a mode of learning by which students pursue higher
education, courses are conducted and managed, and institutions
of higher education expand to reach a new and non-traditional
group of students. The Committee further understands that
distance learning can be a cost-effective way of educating
students through both synchronous (live) and asynchronous
(interactive) means. Therefore, the Committee encourages
institutions of higher education to consider the use of
``computer transmission,'' whether synchronous or asynchronous,
and ``computer conferencing,'' that is, distance learning, in a
way that uses a distributed learning system which ensures
secure and encrypted protection for students getting their
education through an Internet-based system.
The Committee also provides for significant accreditation
safeguards to ensure the quality of institutions of higher
education that offer distance education. The bill requires
accrediting agencies or associations that accredit institutions
offering distance education to have distance education within
their scope of recognition as approved by the Secretary. This
will ensure that only accrediting agencies or associations with
the capability to review distance education will allow these
institutions access to the title IV programs. In addition to
the criteria that accrediting agencies or associations are
already required to review for all institutions, the bill
requires accrediting agencies and associations to ensure that
institutions offering distance education programs have
processes by which they establish that the student who
registers is the same student who participates in and completes
the program. The Committee expects institutions that offer
distance education today 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. In time, as technology develops,
the Committee anticipates that additional identification
technologies will become more sophisticated, less expensive and
more mainstream.
Finally, the bill requires accrediting agencies to monitor
the growth of distance education programs at institutions that
are experiencing significant increases in enrollments. The
purpose of such monitoring is to determine whether institutions
continue to have the capacity to handle a significant increase
in the number of students. The Committee does not suggest that
growth in enrollments necessarily relates to a loss of quality.
Instead, the role of the accrediting agency or association
should be to review that the institution maintains the same or
an increasing level of quality, regardless of enrollment
growth.
In its third report to Congress on the Distance Education
Demonstration Program, the Department of Education reports that
repeal of the 50 percent rule is necessary to expand access to
non-traditional student populations, including minority
students. The Committee concurs with the Department's
statement:
The advent of distance learning has forever changed
this critical segment of our educational system.
Indeed, the evidence would suggest that several of the
rules that were intended to protect Federal funds have
instead protected brick-and-mortar institutions, by
limiting Title IV eligibility to institutions that
offer primarily on-site courses, and delayed
appropriate expansion of this alternative mode of
delivery.
Along with the development of new delivery modes, the
changing demographics of postsecondary education stunts
bring into focus the problems arising from the outmoded
assumptions that at one time warranted using term
structure as a foundation for financial aid rules.
Transfer of credit
In light of the significant changes in the economy,
workforce needs and the postsecondary student population, the
Committee believes that arbitrary and unnecessary barriers to
transfer of credits must be eliminated. The Committee received
evidence of many instances in which students who decide to
continue or further their education at a new institution are
hindered by their inability to transfer credits based upon
indefensible factors. The denial of credit transfer inhibits
students from obtaining the education and training they need to
enter or advance their careers. In doing so, deterrents to
credit transfer often results in increasing the cost of
postsecondary education by forcing students to take and pay for
the same courses twice. This situation puts an unnecessary
financial strain on individual students, the title IV programs,
and the American taxpayer.
The Committee does not intend to intrude upon institutions'
evaluation of student work and other academic factors affecting
transfer decisions. However, one factor often used as a
substitute for such individual evaluations--the agency
accrediting the sending institution--is not a legitimate basis
on which to deny credit transfer as long as the institution's
accrediting agency has been reviewed by the Department of
Education and determined to be a reliable authority on
educational quality. Accordingly, the bill requires
institutions to publicly disclose their policies regarding
transfer of credit decisions, and not to deny transfer of
credit solely on the accreditation of the sending institution
so long as the accrediting agency or association is recognized
by the Secretary. H.R. 609 does not mandate what course work
must be accepted by any institution of higher education. The
Committee encourages institutions of higher education to
establish their own policies for the acceptance of transfer
credits. H.R. 609 would simply require an institution to base
its decision to accept credits based on its own stated and
publicized policies.
In order to protect institutions from inappropriate Federal
intrusion on educational decision making, the legislation
requires accrediting agencies and associations to ensure
institutional compliance. The Committee expects the accrediting
agencies and associations to be vigilant and to vigorously
review the transfer of credit provisions through their
accreditation processes so that no institution will deny
transfer of credit based solely on the accreditation of the
sending program or institution. The Committee also expects the
Department to review thoroughly and consistently accrediting
agencies' performance in this area as part of its recognition
of accrediting agencies and associations.
The Committee is concerned that difficulties in transfer
and articulation continue to serve as a barrier to access and
completion of postsecondary education for many students across
the country. According to data from the Department of
Education, nearly half of all students will change colleges
during their academic career. Loss of credits can mean the
difference between success and failure for many students and is
particularly detrimental to minority and low-income students.
Accordingly, the Committee wishes to acknowledge the National
Articulation and Transfer Network (NATN), which has been
working to develop a nationally coordinated articulation and
transfer network to increase the rate of percentage of credits
accepted in transfer and fully counted toward the degree or
certificate completion requirements of undergraduate students.
NATN is supported and sponsored by hundreds of institutions of
higher education across the United States with minority serving
institutions being at the forefront of its current efforts. The
Committee believes that NATN can become a national center of
information for students and institutions to facilitate the
enrollment, transfer, and full-credit articulation of students.
The Committee encourages the Secretary to work closely with
NATN and its partner institutions and organizations to find
ways to ease the transfer burden for postsecondary students.
90/10 Rule
The 90/10 rule was put into effect by the 1998 Higher
Education Act Amendments (P.L. 105-244), replacing its
predecessor, the 85/15 rule, which was authorized by the 1992
Higher Education Act Amendments (P.L. 102-235).
Supporters of the 85/15 rule argued that the rule was
necessary to stem fraudulent and abusive practices that had
been identified at proprietary institutions. It also was argued
that implementing the rule might restore some market incentive
to education as proprietary institutions would be unable to
charge more than what students not receiving enough Federal
financial aid to pay all their institutional charges were
willing to pay. Detractors of the rule argued that requiring
proprietary institutions to obtain at least 15 percent of their
revenue from non-title IV sources could limit access to low-
income students if proprietary institutions were forced to deny
admission to students receiving title IV funds to meet the
required percentage of non-title IV revenues.
During the 1998 reauthorization process, Congress reduced
the percentage of revenue that proprietary institutions had to
obtain from non-title IV sources to at least 10 percent.
Congress declined to make changes to the formula for
calculating revenue that had generated controversy since its
inception following the 1992 reauthorization. The Department of
Education, however, opted to modify the definition of revenue
and calculation of eligibility through regulations following
the 1998 reauthorization.
While the utility of the 90/10 rule as a proxy measure of
institutional integrity and educational quality was subject to
dispute, the Committee concluded that it was inappropriate to
repeal the rule at this time and instead decided to modify it
significantly. In addition, the Committee, through the amended
language, wishes to clarify the rule's interpretation and
application by the Department.
The Committee has changed the 90/10 rule from an
eligibility criterion to a program participation criterion
under the Program Participation Agreement (PPA) currently in
law. In addition, the rule will now apply to all program
participants, instead of solely to proprietary institutions.
The Committee believes if the rule does act to promote
institutional integrity and educational quality, it should
apply more broadly. Failure to comply with the requirements of
the PPA results in sanctions against an institution. The
penalties against the institution for non-compliance or
violation of the 90/10 rule will not be as severe as they would
be if the rule remained an eligibility criterion, which
ultimately penalizes individual students. Because the operation
of the rule involves a number of complexities and variables,
the Committee further modified it by requiring that before the
ultimate sanction of discontinuing participation is pursued, an
institution would have to violate the rule for three
consecutive years. If an institution violates the rule in any
one year, the Department has a range of means to monitor the
institution, and the institution should have the opportunity to
demonstrate any inaccuracies in the calculation, or come back
into compliance.
The Committee wishes to make clear that the provision means
that all non-title IV revenue received by an institution for
any educational purposes consistent with its mission shall
count toward the 10 percent requirement. The Committee is aware
that the Department, under its current rules, presumes that all
title IV funds are to be counted first in establishing a
participant's compliance with the rule. This presumption does
not comport with Congress' intent. The purpose of the rule is
to ensure that institutions receive at least 10 percent of
their revenues from non-title IV sources. Thus this revenue
should be counted first and apply toward meeting the
requirement provided that institutions can supply a reasonable
audit trail.
Furthermore, the Committee intends to reverse the
Department's current interpretation that excludes institutional
funds used to satisfy matching-fund requirements, and funds
from savings plans such as those established under section 529
of the Internal Revenue Code, from being counted toward the 10
percent requirement. The Committee does not intend for this
rule to be a disincentive for institutional participation in
programs requiring matching funds, or individual participation
in educational savings plans.
The Committee believes that institutional aid, in the form
of loans and scholarships, including both monetary aid and
tuition discounts, should be encouraged. The Committee directs
the Department to apply the statutory language in a manner that
carries out this intent, and does not impose unnecessary
impediments to counting such aid toward the 10 percent
requirement. The Committee emphasizes that the provision on
established restricted accounts does not apply to discounted
tuition.
The Committee detailed certain funds that shall be included
in calculating the 10 percent, but it should be clear that the
list is not intended to be exclusive. Those types of funds that
were permitted to be included as non-title IV funds under the
current regulations, such as non-Federal public grant funds,
workforce development funds, and funds from activities
conducted by the institution that are necessary for the
education and training of its students, such as clinical or
service programs or auxiliary enterprises in which students are
required to participate, are intended to continue to be
included in calculating the 10 percent requirement.
Protections against fraud/abuse/diploma mills
Although no formal legal definition exists, a diploma mill
is generally regarded as an entity that lacks accreditation
from a State or professional accreditation organization, but
that nonetheless sells college and graduate degrees that are
fraudulent or worthless because of the lack of standards
imposed on the purchasers of such degrees. Diploma mills have
proliferated in recent decades due to lax law enforcement and
technological advances such as the rise of the Internet. By
some estimates, there are several hundred diploma mills
operating at any given time, with revenue in excess of $200
million per year. There has also been a swell of fake
accrediting organizations to provide diploma mills an air of
legitimacy.
The Committee learned more about diploma mills and the
proliferation of fake degrees and accreditors during a hearing
held by the Subcommittee on 21st Century Competitiveness on
September 23, 2004 entitled, ``Are Current Safeguards
Protecting Taxpayers Against Diploma Mills?'' During the
hearing, witnesses described characteristics of diploma mills
and called for solutions, such as public lists of accredited
institutions of higher education.
Most diploma mills display some or all of the following
hallmarks of a fraudulent operation: (1) They are unaccredited
or they claim to be accredited but the organization that they
cite is not one of the legitimate accrediting agencies
recognized by the Council on Higher Education Accreditation or
the Department of Education; (2) they do not require previous
academic records, such as grade point average or test scores,
for admission; (3) they charge tuition based on the number of
degrees purchased rather than the number of credit hours or
courses taken; (4) they offer many or all degree credits based
on a student's life experience; (5) they guarantee that
students will receive diplomas in far less time than it would
take at a traditional university; (6) their professors often
have degrees from unaccredited universities and have little or
no contact with students; (7) they are located in a foreign
country or have addresses that are post office box numbers; and
(8) they have names that are strikingly similar to legitimate,
accredited universities.
Diploma mills pose dangers to consumers and employers, as
well as the general public and to legitimate institutions of
higher education. Although some individuals who obtain degrees
from diploma mills are active conspirators in fraud, others are
innocent victims of financial scams in which they pay hundreds
or thousands of dollars for worthless degrees.
State and Federal efforts to shut down these entities have
been somewhat erratic over the years, depending in part on the
jurisdiction and enforcement priorities involved. For example,
enforcement has been weak at times for reasons that range from
the difficulty in distinguishing between fraudulent and
legitimate institutions to the ability of diploma mills to move
jurisdictions quickly if authorities in one state begin an
aggressive enforcement campaign. Further complicating matters
is the fact that every state has its own diploma mill laws,
which vary in strength and effectiveness. Meanwhile, the
Federal government pursues enforcement actions against diploma
mills under a separate set of laws.
Although Federal law does not explicitly prohibit diploma
mills, the sale of fraudulent academic credentials is
punishable under several Federal statutes relating to mail
fraud, wire fraud, and conspiracy, and four different
governmental agencies have some direct involvement in or
authority over the legal issues raised by diploma mills, namely
the FBI, the U.S. Postal Inspection Service, the Federal Trade
Commission, and the Department of Education. In recent years
the investigative and enforcement activities at the Federal
level have not been as strong as in the past or as they could
be. The Committee encourages these agencies to focus their
attention on eradicating diploma and accreditation mills, and
to coordinate their efforts when possible.
In the past year, three agencies have ramped up their
efforts. The Department of Education has unveiled a website/
master on-line list of accredited colleges, universities and
other postsecondary institutions, including career and trade
schools that are accredited by agencies recognized by the
Department of Education. This website is intended to help
students, parents, and employers determine whether a particular
school is a diploma mill or not. The website can be accessed
at: http://ope.ed.gov/accreditation/. The Office of Personnel
Management also announced stricter guidelines regarding
educational requirements of those who seek employment with the
Federal government--aimed at helping agencies better understand
how to check credibility of an applicant's credentials and
professional training. Finally, the Federal Trade Commission
released a document, entitled: ``Avoid Fake-Degree Burns by
Researching Academic Credentials,'' which may serve as a guide
for businesses explaining how to identify a diploma mill.
Although the Federal government has been successful in
keeping diploma mills and accreditation mills out of the
Federal student aid programs in recent years, the Committee
recognizes there should be a greater effort across both the
Federal and State governments to find ways to keep diploma
mills out of business altogether.
Accreditation
Accreditation is a peer review process meant to ensure the
academic quality of a school or a program offered by an
institution of higher education. In order for an institution of
higher education to be eligible to participate in any of the
Federal title IV student aid programs, the institution must be
accredited by an agency or association recognized by the
Secretary based on certain criteria set forth in the Higher
Education Act.
For decades, our nation has used the independent peer
reviewed accreditation system to ensure the quality of an
institution of higher education. Yet far too few students,
parents, or taxpayers know what this process entails. H.R. 609
makes common sense reforms that strengthen the value of
accreditation by opening the process up to consumers. The
accreditation system serves as the central component in the
Federal government's effort to hold institutions accountable.
It is widely credited as an invaluable tool for measuring
institutional quality without undue Federal control and Federal
pressure.
At the same time, the Committee also recognizes that the
accreditation system is not perfect. While it may be a
``uniquely American institution,'' it is also one that--all too
often--perpetuates the status quo on campuses. Even with the
additional requirement made in the 1998 Higher Education Act
Amendments that accreditors begin to focus on student outcomes,
the system and the institutions they accredit could be more
effective when it comes to measuring academic quality. This
lackluster focus on academic achievement and student learning
outcomes has resulted in the fact that more than half of our
nation's students do not graduate in four years. Low graduation
rates may be compounded by the fact that parents and students
lack the necessary information to determine whether a
particular college or university is a quality institution or
appear to meet the needs of that particular student.
In order to provide information to students, parents, and
policy makers, H.R. 609 ensures the quality of the
accreditation team conducting site visits with some enhanced
standards other than requiring that volunteers are ``well-
trained.'' H.R. 609 requires accreditors to disclose their
process for selecting and evaluating their agency accrediting
team members. The bill also ensures that accrediting agencies
and associations are not required to establish different
standards and reviews for distance education, as compared to
more traditional face-to-face classroom interaction. Further,
H.R. 609 clarifies those institutions that offer courses by
distance education have in place processes to determine the
students who register in a distance education course or program
are the same students who participate, complete and receive
academic credit. H.R. 609 requires the Secretary to provide
Congress a report of the agency or association actions
including accreditation granted, suspended, terminated, or
denied; information on the qualifications of the team members
doing site visits; and reasons for the actions taken.
Following an adverse decision regarding the accreditation
status of an institution of higher education, questions of the
adequacy of current due process procedures under the Higher
Education Act were raised. Accreditation has functioned well
for decades using volunteers and following the classic
principles of peer review and collegiality. The fairness of
accreditation processes has repeatedly been upheld by courts,
for the denial or withdrawal of accreditation often leads to
lawsuits asserting a denial of due process. While the Committee
believes the Department of Education has a reliable and
comprehensive process to review and approve accrediting
agencies' appeals processes, the Committee amended the Higher
Education Act to provide additional processes for accrediting
agencies or associations to follow when taking an adverse
action against an institution. The Committee clarifies that an
institution shall be given appropriate notice and opportunity
to be heard prior to an adverse action by an accrediting agency
or association becoming final. It is not the intent of the
Committee to expand the types of adverse actions beyond those
already defined by the Secretary as the denial, withdrawal,
suspension, revocation, or termination of accreditation or pre-
accreditation, or any comparable accrediting action an agency
may take against an institution or program. Finally, while it
is essential to afford institutions appropriate due process in
the accreditation context, it is not the intent of this
Committee or this statutory provision to suggest or imply that
accrediting agencies or associations are state actors or that
the level of constitutional due process shall apply.
Title V--Developing institutions
Hispanic Serving Institutions (HSIs) play an important role
in American higher education, particularly in their capacity to
provide college access to underrepresented populations, and
populations of students with limited financial means. HSIs
receive Federal funding under title V of the Higher Education
Act. These grants are provided to institutions that offer and
increase the number of educational opportunities available to
Hispanic and other low-income students. The Committee supports
the elimination of the two-year wait-out period for HSIs that
prevents these institutions from applying for a new grant until
two years have elapsed after the expiration of the prior grant.
The Committee has determined that there is no need for a wait-
out provision and its elimination will allow funds for
institutional development to go to the maximum number of
institutions that submit qualified applications.
Hispanic Serving Institution Graduate Program
The Committee believes that increasing the number of
Hispanic students in graduate education is imperative to
business, industry, medicine and education. During the May 2,
2005 field hearing entitled, ``Expanding Opportunities for
Graduate Study at Hispanic Serving Institutions,'' Dr. Blandina
Cardenas, President of the University of Texas--Pan American
argued that:
The students with master's degrees will be required
to lead a diverse work force and create new products
and product delivery systems for a diverse national
market and for competitiveness in the global market.
Hispanics with doctoral degrees must be available in
sufficient numbers to serve the teaching and research
needs of our colleges and universities and research
organizations in the private and public sector. I
believe that Hispanics with post-baccalaureate
preparation will bring significant added value to the
creative and problem-solving enterprise--not in spite
of the less privileged backgrounds, but because of it.
Hispanics still lag well behind other groups in college-
going rates, retention and graduation rates and participation
in graduate education. In 2003, data from the Department of
Education shows that 34 percent of white students over the age
of 25 had completed four or more years of college. For African
American students, the figure was 17.3 percent; and for
Hispanic students, the rate was 11.4 percent.
In 2002, Hispanic students received 4.2 percent of all
masters degrees awarded in the U.S., compared to 62.1 percent
for white students and 7.7 percent for African American
students. From 1992 to 2002, the percentage of Hispanic
students receiving master's degrees rose from 2.6 percent to
4.2 percent. In 2002, the percentage of Hispanic students
receiving doctoral degrees was 3.1 percent, compared to 57.3
percent for white students and 5.1 percent for African American
students. The share of doctoral degrees received by Hispanic
students in 1992 was two percent. The Committee believes these
data illustrate the necessity of expanding graduate
opportunities for Hispanic students and providing resources to
the institutions that serve the majority of Hispanic students
desiring a graduate degree.
Title VI--International education
International education programs at the postsecondary level
play a critical role in building and maintaining the nation's
ability to supply expertise in foreign language, area studies
and international business arenas. In order to continue the
nation's established leadership role in international affairs,
the opportunities for students to become knowledgeable in
international issues and foreign languages has become
increasingly important. America's interests and national
security are inextricably tied to our knowledge and
understanding of the rest of the world.
Programs authorized under title VI of the Higher Education
Act reflect the priority placed by the Federal government on
diplomacy, national security, and trade competitiveness by
allowing for the study of international and world issues and
cultures, as well as foreign languages at the postsecondary
education level. Centers and fellowships authorized under title
VI serve the nation's national security interests in two ways:
they produce new cadres of personnel trained in foreign
languages and knowledgeable about foreign areas and they
provide a cumulative body of knowledge about international
affairs, which provide expertise for government agencies and an
intellectual foundation for intelligence.
In a report published by the American Council on
Education's Center for Institutional and International
Initiatives entitled, ``Beyond September 11: A Comprehensive
National Policy on International Education,'' three national
policy objectives have been established by the higher education
community for success in international education. First, the
nation must produce international experts and knowledge to
address national strategic needs. Second, it is imperative to
strengthen the ability of the United States to solve
international problems. Third, it is time to develop a
citizenry and workforce that is competent in international
issues and affairs. Programs under title VI were established
over forty years ago to address these objectives and have been
reformed and reauthorized to better reflect the current
international climate.
The bill updates the findings and purposes of the programs
under title VI to reflect our national security needs in the
post-September 11th era, as well as the current international
climate. Therefore, H.R. 609 increases coordination between
international and foreign language studies programs to better
meet America's national and international security needs. The
bill also clarifies that programs under title VI are to
reinforce and coordinate with other Federal programs in the
areas of foreign language, area studies, and international
affairs. The Committee recognizes that a complete understanding
of area studies is intrinsically tied to knowledge of the
history, politics, geography, and languages within a particular
region.
During the June 2005 hearing on title VI programs at The
Ohio State University, Dr. Jerry R. Ladman, Associate Professor
for International Affairs commented about the importance of the
title VI programs to the current international climate, both
inside and out of academia. He said:
As was Sputnik and the Cold War, the events of
September 11, 2001, were another milestone event.
Probably nothing in our nation's history has indicated
to the population at large how important it is to have
numerous professionals within the public and private
sectors who are trained in area studies and foreign
languages, especially less-commonly taught languages,
such as Arabic, Urdu, Hindi, Pashto, and Tajik. Whereas
it is obvious that this is important for matters of
national security, it is also generally recognized as
important for the United States in business and other
matters.
International Advisory Board
In a June 2005 report from the Congressional Research
Service, there was significant discussion regarding the
establishment of either a ``multi-agency board, endowment,
foundation or other independent Federal entity to coordinate
and/or administer all Federal programs dealing with foreign
language and international studies.'' The report further
suggested that one function of such board or agency might be
``relatively long-range planning to attempt to meet both the
Federal government's and the Nation's needs for foreign
language and area studies specialists in a coordinated
manner.''
During the June 2003 hearing on title VI, Dr. Stanley
Kurtz, a Research Fellow with the Hoover Institution, argued
that a board, similar to those that govern the Fulbright and
National Security Education Programs, was needed to help
enhance the programs under title VI. Dr. Kurtz proposed that a
board should be inclusive of all points of view and should
therefore ``be able to hold annual [public] hearings on title
VI activities, including the outreach activities of the
National Resource Centers.''
In a book entitled, ``Language and National Security in the
21st Century,'' published by the National Foreign Language
Center, the authors recommend an ``establishment of mechanisms
to monitor national needs and capacity in language and to
assess how those needs and that capacity are addressed by
Federal, State, and local programs, including title VI.'' The
International Advisory Board, authorized by the bill, is
responsible for making specific recommendations that will
assist the Secretary and the Congress to improve the programs
under title VI to better reflect the national needs related to
homeland security, international education, and international
affairs, including the assessment of the national needs and
training provided by the institutions of higher education that
receive a grant for expert and non-expert level foreign
language training.
The Committee believes that the programs authorized under
title VI of the Higher Education Act are crucially important
because they ensure the expansion of the international
knowledge base of the nation's citizenry and promote the growth
and development in national need areas related to addressing
national security interests and international commerce. The
International Advisory Board will provide advice, counsel and
recommendations to the Secretary and the Congress on
international education issues for higher education in order to
improve international education program. Members of the
International Advisory Board are to be appointed by the House
of Representatives, the Senate, and the Secretary, who must
select two representatives from agencies with diplomacy,
national security, international commerce or other
international activity responsibilities. These agencies may
include, but not be limited to, the Department of Defense, the
Department of Homeland Security, the Department of State, the
Department of Commerce, and the Central Intelligence Agency.
The International Advisory Board is authorized to hold
public hearings to review the recommendations provided by the
Board to the Secretary and the Congress. The Committee believes
this is an important first step to engage the independent board
with the grantees, communities and constituencies who are most
interested in the objectives and outcomes of the programs
authorized under title VI. The Committee believes strongly that
H.R. 609 and the new International Advisory Board does not have
the authority to mandate, direct, or control an institution of
higher education's specific instructional content, curriculum,
or program of instruction.
Moreover, the Committee believes that when selecting
grantees, the Secretary should take into account the degree to
which activities of centers, programs, and fellowships at
institutions of higher education advance national interests,
generate and disseminate information, and foster debate on
American foreign policy from diverse intellectual perspectives.
The Committee also believes that the bill clearly requires that
recruiters from the military and Federal agencies should be
given the same access as is granted to prospective employers
who wish to recruit students for non-government related
employment opportunities. The Committee believes students who
benefit from the programs funded under title VI have
instrumental and unique skills in foreign language, world
regions and international affairs that would serve to benefit
the military and agencies of the Federal government.
Coordination with elementary and secondary schools
During the June 2003 hearing, Ms. Vivien Stewart,
representing the Asia Society, testified that the levels of
student knowledge about international affairs is rudimentary.
``Young Americans are next to last in their knowledge of
geography and international affairs compared with students from
eight other industrial countries,'' she argued. Furthermore,
Ms. Stewart highlighted the fact that most prospective teachers
do not take any international education courses and have very
low participation rates in study abroad programs.
H.R. 609 ensures that colleges of education and teacher
professional development programs can be included as partners
in outreach grants and summer institute programs. By
authorizing the Secretary to make grants to outreach and summer
institute programs that involve partnerships with local
educational agencies and public and private elementary and
secondary schools, the Committee believes there will be an
increase in student academic achievement in foreign language
and knowledge of world regions. Finally, by authorizing title
VI centers and programs to serve as a national resource for
courses and materials for elementary and secondary schools, the
Committee believes this legislation will encourage and enhance
international knowledge at all stages and levels of education.
Foreign language studies
The Committee urges the Secretary to encourage the
development of programs that stress the teaching of foreign
languages for practical and professional use, including
programs that promote foreign language education across the
curriculum.
The bill encourages the Secretary to engage in data
collection and analysis of international education and foreign
language needs and outputs on an ongoing and systematic basis,
and to make the results known nationally on a regular basis.
The Committee notes that international and foreign language
education is an evolving field in the United States, with
heightened importance to the national interest. The Committee
also encourages the Secretary to consider projects that assess
the impact of student learning abroad, develop foreign language
proficiency assessments where they do not exist for the less
commonly taught languages, assess the relationship between
gains in foreign language proficiency and knowledge of world
regions, and assess the impact of technology on language
acquisition.
The Committee recognizes that students who study abroad for
the enhancement of foreign language knowledge and proficiency,
as well as the study of world regions, may travel to areas or
regions in conflict or unrest. The Committee encourages
institutions of higher education to take into consideration
safety policies and procedures for students participating in
any study abroad program funded under title VI.
International business education
The Committee believes that international business
education programs reauthorized by H.R. 609 under title VI of
the Higher Education Act play a unique and important role in
overall international education efforts. The programs have
proven to be an integral part of many postsecondary
institutions' efforts to develop international education
initiatives.
During the May 2005 hearing on title VI initiatives in the
area of international business education, Dr. Stephen M. Hills,
Academic Director, Office of International Programs in the
Fisher College of Business at The Ohio State University,
discussed the importance of the Centers for International
Business Education & Research (CIBERs), authorized under title
VI:
There are currently 30 national CIBER centers in the
United States, each committed to enlarging the sphere
of teaching, research, and outreach undertaken on their
campuses and in their communities in the area of
international business development. Each of the CIBER
centers has at its core the goal of increasing
international competitiveness, business language
acumen, global trade expertise, and area studies
competency. Programs are directed to undergraduate,
graduate and Ph.D. students within colleges of business
as well as elsewhere on campus; to faculty from
throughout the university, and to executives and
professionals within business communities.
Institute for International Public Policy (IIPP)
A hallmark program for the education, inclusion and
participation of students from underrepresented populations,
the Institute for International Public Policy (IIPP) was
amended in H.R. 609 to include all underrepresented populations
in its program in order to enhance participation in
international service. The Committee recognizes the
achievements of a statesman and diplomat, Ralph J. Bunche by
naming students who participate in internships under the IIPP
program as the ``Ralph J. Bunche Fellows.''
Additionally, the Committee recognizes the valuable and
important role minority serving institutions play in
postsecondary education. As these institutions may not have the
capacity to provide full matching funds for the programs under
title VI, H.R. 609 adds a special rule to the programs in the
title that allows the Secretary to waive or reduce the non-
Federal match for Historically Black Colleges and Universities,
Hispanic Serving Institutions, Tribally Controlled Colleges and
Universities, and Alaska Native and Native Hawaiian serving
institutions. Although this waiver authority currently exists
for some programs under the title and throughout the Higher
Education Act, the Committee believes it is important to ensure
continuity and consistency among all title VI programs, which
have a direct benefit to our national interests and security.
It is imperative that title VI programs, as the largest
Federal program supporting language and area studies in the
national interest, continue to take responsibility for training
experts as well as building and maintaining national capacity
in the nation's education system. The consideration and
adoption of H.R. 609 will have a distinct effect on the
international education efforts of postsecondary education
institutions as partners in addressing national strategic needs
in foreign language, area studies, international affairs and
international business education.
Title VII--Graduate education
As we proceed through the 21st Century, the need for
advanced education is becoming increasingly more critical to
successfully maintaining our place in a technologically
advanced economy. Now, more than ever, our citizens are
obtaining graduate degrees in order to gain more knowledge and
expertise in their field of study.
Graduate Assistance in Areas of National Need
Graduate programs, while important for their role in higher
education, also play an essential, yet often overlooked role in
K-12 education. Graduate programs provide the education and
training necessary for individuals to become faculty at
institutions of higher education, who in turn, train the
elementary and secondary teachers of tomorrow. In order to
ensure the nation's children receive the best education
possible, Congress must ensure the faculties in our teacher
colleges are prepared to meet this challenge.
The Committee commends the Secretary for identifying as the
current areas of national need: biology, chemistry, computer
and information sciences, engineering, geological and related
sciences, math, and physics. It is estimated that more than
half of the economic growth of the United States today results
directly from research and development in science and
technology. The effectiveness of the United States in promoting
economic growth will be largely determined by the intellectual
capital of the United States. Education is critical to
developing this resource.
Teachers provide the essential connection between students
and the content they are learning. Elementary and secondary
classrooms across the nation are facing teacher shortages in
particular subject areas. Many states and schools are
struggling to find highly qualified math, science and special
education teachers. As our schools work to educate a rapidly
growing population whose native language is not English, we
need individuals specifically trained in teaching students with
limited English proficiency (LEP). Student performance on the
recent Third International Math and Science Study highlights
the shortcomings of current K-12 science and mathematics
education in the United States, particularly when compared to
other countries. We must expect more from our nation's
educators and students if we are to build on the
accomplishments of previous generations. New methods of
teaching mathematics and science are required, as well as
better curricula and improved training of special education and
LEP teachers.
To achieve improved training of teachers, H.R. 609 requires
that the Secretary establish a competitive priority for grants
under the Graduate Assistance in Areas of National Need (GAANN)
program in order to prepare individuals for the professoriate
who are committed to training highly qualified elementary and
secondary school teachers of mathematics and science.
The Committee encourages the Secretary to provide priority
to departments that engage in such activities, and encourages
the Secretary to regard departments of mathematics and
sciences, as well as departments of engineering, as departments
that may provide such activities.
The Committee recognizes that a chronic and persistent
shortage of special education faculty curtails the national
capacity of colleges and universities to conduct research and
prepare teachers who can effectively teach students with
disabilities. The number of special education doctorates
produced annually has decreased by 30 percent in the last 20
years, according to the Higher Education Consortium for Special
Education. About half of those with doctorates choose to work
in higher education; the others work in leadership positions in
settings such as local school systems.
The Committee is aware that the chronic and persistent
shortage of special education teachers is exacerbated by the
shortage of special education faculty in institutions of higher
education. Without adequate faculty, there will be fewer
qualified teachers and thus lower student achievement. Research
has documented that students are more likely to have higher
achievement when they are taught by qualified teachers, than
when they are taught by unqualified teachers. As accountability
for student achievement increases, the demand for qualified
special education teachers will likewise increase.
To achieve improved training of teachers, H.R. 609 requires
the Secretary to establish a competitive priority for grants
under the GAANN program in order to prepare individuals for the
professoriate who are committed to training highly qualified
elementary and secondary school teachers that can effectively
teach students with disabilities.
The provisions of No Child Left Behind require closing the
achievement gap that exists for the nation's 4.5 million
limited English proficient children. There is an acute shortage
of teachers prepared to teach these young students. The
tremendous need for bilingual/English as a second language
(ESL) teachers exists not only in states with traditionally
large immigrant populations like California, Florida and Texas,
but also on a national level and in an increasing number of
small towns and rural communities.
Therefore, in order to ensure that students with limited
English proficiency are instructed by teachers who are
qualified to address the needs of this unique student
population, H.R. 609 requires the Secretary to establish a
competitive priority for grants under the GAANN program. This
priority will help to ensure preparation of individuals for the
professoriate in fields such as second language pedagogy and
second language acquisition who are committed to training
highly qualified elementary and secondary school teachers can
effectively teach limited English proficient students.
Fund for the Improvement of Postsecondary Education
Ensuring innovation, reform and outreach in higher
education is essential in assisting institutions to meet their
full potential and allowing their students to do the same. The
Committee recognizes that many institutions of higher education
possess tremendous resources in their facilities, faculty and
student body, and often these resources are underutilized
outside of the traditional classroom. H.R. 609 extends the
opportunity for institutions of higher education to reach out
to the communities in which they reside. By allowing the
Secretary to include community outreach and involvement as an
activity within the Fund for Improving Postsecondary Education
(FIPSE), the special project authorization allows institutions
of higher education to assist in meeting the pressing needs of
the surrounding community, while providing an educational
experience for students that will be unmatched in the
classroom.
The Committee anticipates that one of the new activities
provided through FIPSE grants can and should improve secondary
school graduation and college attendance and completion rates
for disadvantaged students. While there are many secondary
school reform models that could meet this eligibility
requirement, the Committee would like to make note of one
particular model program called Project GRAD. Project GRAD is a
comprehensive, cost-effective program with a record of
improving the academic achievement and college access of
students from low-income backgrounds. Project GRAD's integrated
approach to teaching and learning includes working with an
entire feeder system in a school district, the local non-profit
GRAD organization, community involvement and collaboration, and
working with existing assets. Project GRAD delivers a
comprehensive set of research-based programs in reading,
mathematics, classroom management, social services/parent
involvement, and college preparation. In addition, Project GRAD
provides a four-year college scholarship to all students who
qualify. It is this unique structural approach that contributes
to higher academic standards and offers the dream of graduation
and college to all the students within a feeder system, or even
an entire district.
In response to the numerous institutions of higher
education that are working to implement programs to work with
private and civic organizations to resolve pressing and severe
community problems, FIPSE includes a new 'national need'
designation that permits grantees to use funds to support the
development of coordinated curriculum and internship
opportunities for students in disadvantaged communities. The
Committee understands that some universities, such as the
Shepherd Program at Washington and Lee University, are working
to coordinate and expand programs to study poverty and its
impact on communities. The Committee encourages the Department
to identify other such programs for the purposes of awarding
funds in order to assist disadvantaged communities in meeting
this important national need.
In 2000, Congress unanimously passed a concurrent
resolution (S. Con. Res. 129) stating, in part, that ``the
historical illiteracy of America's college and university
graduates is a serious problem. * * *'' reflecting a failure to
impart to students a basic understanding of the history,
ideals, documents and institutions that have formed the nation.
The Committee notes that the events of September 11, 2001 made
these concerns even more compelling. The ideals, institutions,
key documents, and history on which our nation stands need to
be understood if they are to be sustained in times of trial.
This issue was most recently highlighted in a hearing
conducted by the Subcommittee on Select Education, on September
9, 2003. At that hearing, Dr. William Barclay Allen, Professor
of Political Philosophy and Director of the Program in Public
Policy and Administration at Michigan State University, spoke
of the impact of the disappearance of university requirements
in traditional American history and western civilization:
A direct consequence of this trend has been an
erosion of the training of professors (and therefore K-
12 teachers) to preserve broad familiarity with facts,
texts, and significant dates affecting our civic
existence. A targeted response to this situation,
cutting across disciplinary distinctions, will
meaningfully strengthen the academy's ability to play a
central role in fostering content mastery regarding the
significant moral, constitutional, political,
intellectual, economic, cultural, and international
influences revealed through American history.
In response to this concern, H.R. 609 includes an important
amendment to the FIPSE program. Specifically, language was
added identifying the expansion of academic programs focused on
traditional American history as an area of ``national need.''
It is the intent of the Committee that this authority be used
for reinvigorating majors and graduate programs in these
fields, thus creating a new pipeline for producing the scholars
and teachers needed to staff these fields at the graduate and
undergraduate levels and in teacher training programs.
By including the establishment of academic programs in
support of research and the development of teaching materials
for teaching traditional American history, students and faculty
may once again ensure the values and history of the United
States are learned, remembered and passed on to future
generations. H.R. 609 will go a long way in bringing back the
relevance of teaching this important topic and ensure it is
done comprehensively.
During this reauthorization, the Committee feels strongly
that the importance of graduate education overall should not be
overlooked. Dr. Earl Lewis, Dean of the Rackham Graduate
School, Vice Provost for Academic Affairs for Graduate Studies,
and Professor of History at the University of Michigan
expressed his support for graduate education programs before
the Subcommittee on Select Education:
Graduate education prepares the scientists and
engineers needed by industry, government, and
universities to conduct the nation's research and
development. Graduate programs also educate the
scholars in the humanities, social sciences, and the
arts who preserve and enlarge our understanding of the
history and scope of human thought and the human
condition, and transmit that knowledge to succeeding
generations. Moreover, graduate programs at our
nation's universities generate new knowledge and act as
incubators of innovative ideas that drive new
technologies and create new ways to address societal,
health, security, and economic needs and challenges.
As Congress continues its work on the reauthorization of
the Higher Education Act, it must continue to build on the
demonstrated success of these valuable graduate programs. These
programs, and the amendments made within H.R. 609, will prepare
the next generation of scientists, scholars and teachers and
ensure the support and effectiveness of these programs.
Title VIII--Clerical amendments
H.R. 609 made numerous technical and clarifying amendments
to the Higher Education Act.
Title IX--Amendments to other education laws
H.R. 609 mostly maintains current law in its
reauthorization of the Education of the Deaf Act of 1986.
However, the bill includes three important reforms that the
Committee feels will strengthen the Act and improve the
programs offered by Gallaudet University and the National
Technical Institute for the Deaf (NTID).
First, H.R. 609 requires Gallaudet University to develop
academic content standards, academic achievement standards, and
academic assessments consistent with the No Child Left Behind
Act for the elementary and secondary programs operated at the
Laurent Clerc National Deaf Education Center. In July, data
from the National Assessment of Educational Progress 2004 long-
term trend assessment was released showing improving test
scores in mathematics and reading. This data confirms that the
high standards and accountability established in the No Child
Left Behind Act are having a significant impact on our nation's
schools. The Committee feels strongly that students
participating in the elementary and secondary programs at
Gallaudet University deserve the same high standards and
opportunities that other students are experiencing.
H.R. 609 also codifies the relationship between the
Secretary and the Rochester Institute of Technology (RIT). RIT
has operated the NTID through a contract with the Secretary
since 1968, yet the Education of the Deaf Act of 1986 has never
recognized this relationship. Given RIT's nearly 40 years of
successful work on behalf of students who are deaf or hard of
hearing, the Committee believes that formally identifying RIT
as the university responsible for the operation of the NTID is
a commonsense reform that rewards excellence and ensures
stability in this program.
Finally, H.R. 609 changes the name of the Act to the
``Gallaudet University and National Technical Institute for the
Deaf Act.'' This technical change recognizes the Act's purpose
of providing support for the academic programs and research
projects of these two institutions. Given the many other
programs that are geared more generally toward students who are
deaf or hard of hearing, the Committee believes that this
change will ensure that the Act will continue to focus
resources on Gallaudet University and the NTID for the benefit
of all students who are deaf or hard of hearing.
Conclusion
The College Access and Opportunity Act is the product of
more than two years of dedicated effort to improving America's
higher education system. The Committee believes the Higher
Education Act is among the nation's most significant mechanisms
to empower individuals and increase opportunities for success,
and that is why the reauthorization could be no ordinary task.
From the outset, the Committee has been committed to enacting
meaningful reforms that would benefit students and taxpayers.
The process began, appropriately, by identifying ways to
simplify the process. The goal was not to add another layer of
confusion, but to review the programs with a critical eye to
determine what is working well, and what could be working
better; what regulations and red tape are unnecessary, and what
more needs to be done.
Early in the process, the Committee identified access,
accountability, affordability, and quality as the guiding
principles for the reauthorization. Those ideals helped to
shape the policies contained in the legislation, and can be
used to determine Congressional intent. Ultimately, the
Committee believes that reauthorization of the Higher Education
Act is an opportunity to reform and strengthen one of the most
vital systems in America--the higher education system. Rather
than squander the opportunity with a rubber stamp for the
status quo, the Committee members rolled up their sleeves and
fought for real changes. The result is a bill that will expand
college access and ensure the Higher Education Act is equipped
for the future.
Section-by-Section Analysis
Section 1. Short title; table of contents
States the short title as the ``College Access and
Opportunity Act of 2005.'' Contains the Table of Contents.
Section 2. References; effective date
Establishes the effective date as the date of enactment.
States that, unless otherwise noted, any amendment to repeal or
amend a section or provision amends or repeals a section or
provision of the Higher Education Act of 1965.
Title I--General Provisions
Section 101. Definition of institution of higher education
Strikes sections 101 and 102 and inserts new sections 101
and 102. Creates a single definition of an institution of
higher education under section 101. Includes within the list of
students an institution may enroll to meet the definition those
students who are dually enrolled at the institution and a
secondary school. Clarifies requirements for the legal
authorization of foreign schools. Repeals the 50 percent rule
as it pertains to distance education by telecommunication.
Clarifies the institutional eligibility criteria applicable to
foreign not-for-profit veterinary schools. Removes the
requirement for students attending Canadian Medical schools to
take the Foreign Medical exam. Requires the Secretary to
publish qualifying criteria by regulations and establish an
advisory panel with regards to evaluating the qualifications of
foreign medical schools. Adds a new section 123 that clarifies
how proprietary institutions may use grant funds and makes
proprietary institutions ineligible for funds under titles III
and V of this Act. Makes conforming amendments regarding home-
schooled students. Amends the title of 484(d) to read ``(d)
Satisfaction of Secondary Education Standards.'' Makes several
conforming amendments to reflect the single definition of
institutions of higher education. States that the inclusion of
for-profit schools within the definition of ``institution of
higher education'' will not apply to any other provision of law
enacted before the date of enactment of this Act.
Section 102. New borrower definition
Amends section 103(7) to clarify definition of ``new
borrower'' and separate the Federal Family Education Loan and
Direct Loan programs from the Perkins program.
Section 103. Student speech and association rights
Amends section 112 to clarify the current Sense of Congress
regarding student speech and association rights.
Section 104. Extension of National Advisory Committee on Institutional
Quality and Integrity
Amends section 114(b) by permitting members of the
Committee to continue to serve after the expiration of a term
until a successor is appointed.
Amends section 114(g) to extend the authorization of the
National Advisory Committee on Institutional Quality and
Integrity.
Section 105. Alcohol and drug abuse prevention
Amends section 120(e)(5) to extend the Alcohol and Drug
Abuse prevention grants.
Section 106. Prior rights and obligations
Amends section 121(a) to extend the authorization to
continue coverage of prior rights and obligations for servicing
of outstanding bonds from old title VII bonds.
Section 107. Limitation on certain uses of funds
Amends part B of title I by inserting a new section 124
that prohibits funds from this Act from being used for
publicity or propaganda not authorized by Congress or for any
prepackaged news story not authorized by law unless it includes
a clear notification that the story was prepared or funded by
the Department of Education.
Section 108. Consumer information and public accountability in higher
education
Amends section 131 by rewriting the section. Outlines the
purpose of the section. Requires the Secretary to assess the
key data elements that are of greatest importance to students
and families; convene a group of experts to determine what data
elements are important, cost-effective strategies for
institutions to employ to collect necessary data, and the
general comparability of data across institutions; to make
recommendations on what data elements to include on the
redesigned College Opportunities On-Line (COOL) website; and,
to assure that the redesigned COOL website uses data elements
currently provided by institutions, includes clear and uniform
information, provides comparable information, and includes a
sorting function. Also requires the Secretary to redesign the
Integrated Postsecondary Education Data Systems as necessary.
Also requires the Secretary to publish a college consumer
profile for each institution participating in title IV
programs. Requires the Secretary to make available, at a
minimum, the data collected pursuant to this section in a
manner that permits the review and comparison of institutions
and is easily accessible and understandable. Requires the
Secretary to work with public and private entities to promote
broad public awareness, particularly among middle and high
school students and their families, of the information made
available under this section. Requires the Secretary to
distribute this information to students who participate in
Federally funded education programs and other Federal programs
as determined by the Secretary. Establishes a college
affordability index and requires institutions that exceed the
index to report how they will work to address that increase.
Requires each institution that has a college affordability
index that exceeds two for any three year period and that has
an index that is in the highest 25 percent of those
institutions to establish a quality-efficiency task force to
review the operations of the institution. Outlines the
membership and functions of the task force and requires the
task force's recommendations to be included in the report to
the Secretary. If the Secretary determines that an institution
who has exceeded the index has failed to comply with its
management plan and has failed to meet the index for two
consecutive academic years, the Secretary is required to
publicly report the institution's costs and expenditures and
tuition and fees from students, place the institution on an
affordability alert status, notify the institution's
accrediting agency, and may require the institution to submit
to a review and audit by the Department's Inspector General.
Provides for a relative price exemption and dollar increase
exemption to this requirement. Establishes classes of
institutions for the purposes of comparing costs. Permits the
Secretary to impose fines on institutions that fail to provide
the necessary information in a timely and accurate manner.
Requires GAO to conduct a study of best practices regarding
costs. Requires an interim report in 2011 and a final report in
2013. Makes technical amendments regarding data collection and
references to other sections. Requires the Secretary conduct
the student aid survey every 4 years.
Section 109. Databases of student information
Inserts a new section 132 that states that nothing in the
Act should be construed to authorize the design, development,
creation, implementation, or maintenance of a nationwide
database of personally identifiable information on individuals
receiving assistance, attending institutions receiving
assistance, 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. The new
section clarifies that this prohibition does not affect the
loan obligation enforcement activities described in section
485B of this Act.
Section 110. Performance-based organization
Revises section 141 to clarify the goals of the
Performance-Based Organization related to the costs of
administering the student aid programs. Clarifies the
definition of ``year.'' Revises the consultation process on the
annual performance plan to include guarantors and secondary
markets. Makes technical amendments to correct various
citations.
Title II--Teacher Preparation
Section 201. Teacher quality enhancement grants
Amends Part A of title II by rewriting sections 201 through
210. Section 201 outlines the purposes and definitions for the
title. States the need for holding institutions of higher
education accountable for preparing highly qualified teachers.
Defines or modifies the definition for the following terms:
``Arts and Sciences,'' ``Exemplary Teacher,'' ``Highly
Qualified,'' High-Need Local Educational Agency,'' ``Poverty
Line,'' ``Professional Development,'' ``Scientifically Based
Reading Research,'' ``Scientifically Based Research,'' and
``Teaching Skills.''
Section 202 authorizes the State Grants competitive grant
program for eligible States.
Defines the term ``Eligible State'' and outlines
requirements for applications for grants. Requires States to
use funds to reform teacher preparation requirements,
coordinate with State activities under section 2113(c) of the
Elementary and Secondary Education Act of 1965, and ensure that
current and future teachers are highly qualified. Authorizes
grant recipients to use funds to develop teacher preparation
programs that prepare highly qualified teachers who are able to
understand scientifically based research and its applicability,
and are able to use advanced technology effectively in the
classroom; reform teacher certification, recertification, or
licensing requirements to ensure that teachers have the
necessary subject matter knowledge and teaching skills and that
the requirements are aligned with challenging State academic
content standards; provide prospective teachers with
alternative routes to State certification and traditional
preparation to become highly qualified teachers; implement
innovative programs such as charter colleges of education or
university and local educational agency partnership schools
that enhance the ability of institutions of higher education to
prepare highly qualified teachers; develop, or assist local
educational agencies in developing, merit or bonus pay systems
to retain principals and teachers; develop, or assist local
educational agencies in developing, teacher advancement and
retention initiatives that promote professional growth and
emphasize multiple career paths and pay differentiation;
develop and implement effective mechanisms to ensure that local
educational agencies and schools are able to remove incompetent
or unqualified teachers consistent with procedures that ensure
due process; provide technical assistance to low-performing
teacher preparation programs; develop systems to measure the
effectiveness of teacher preparation programs and professional
development programs and strategies to document gains in
student academic achievement or increases in teacher master of
content; develop mechanisms to ensure that local educational
agencies and schools are able to recruit and retain highly
qualified teachers or provide activities as described in
section 204(d); improve the qualifications of early childhood
educators, improve and expand preschool teacher preparation
programs, and reduce unnecessary burdens to the attainment of a
bachelor's degree in early childhood education and increase the
number of bilingual early childhood educators, which may
include developing articulation agreements between institutions
of higher education; incorporate the learning needs of gifted
and talented students into the activities described in
paragraphs (1), (2), or (3) of this subsection in order to
ensure that new teachers possess basic knowledge and skills
necessary to meet the educational needs of gifted and talented
students; establish or expand new teacher mentoring and
assessment programs that are a part of a licensure process
which is designed to demonstrate that new teachers possess
basic knowledge of the classroom indicators of giftedness, are
able to identify student learning differences among gifted
students, and are able to provide instruction to accommodate
such differences; support the development of new special
education, math, and science faculty positions in institutions
of higher education dedicated to the preparation of highly
qualified special education, math, and science teachers, with
matching funds from institutions of higher education and a
commitment to continue new faculty positions when Federal
funding ends; and, assess the performance of teacher
preparation programs within institutions of higher education in
the State using an assessment which provides comparisons across
such schools in the State based upon indicators including
teacher candidate knowledge in subject areas in which such
candidate has been prepared to teach, and to make such
information publicly available and widely disseminated.
Requires States to develop and utilize a system to annually
evaluate teacher preparation programs and professional
development activities, and to publicize the results.
Section 203 authorizes the Partnership Grants competitive
grant program for eligible partnerships. Defines the terms
``Eligible Partnerships'' and ``Partner Institution'' and
outlines the requirements for applications for grants. Requires
grantees to reform teacher preparation requirements, coordinate
with State activities under section 2113(c) of the Elementary
and Secondary Education Act of 1965, and ensure that current
and future teachers are highly qualified by engaging in one or
more of the following activities: implement reforms within
teacher preparation programs to ensure that such programs are
preparing teachers who are highly qualified, are able to
understand scientifically based research and its applicability,
and are able to use advanced technology effectively in the
classroom; provide sustained and high-quality pre-service and
in-service clinical and mentoring experiences; create
opportunities for enhanced and ongoing professional development
that improves academic content knowledge of teachers and
promotes strong teaching skills; develop, or assist local
educational agencies in developing, professional development
activities that provide training in how to teach and address
the needs of students with different learning styles and needs
and provide training in improving student behavior and
identifying interventions to help those students. Authorizes
grantees to use funds to provide prospective teachers with
alternative routes to State certification and traditional
preparation to become highly qualified teachers; disseminate
information on effective practices and coordinate activities
with other State offices and agencies; develop and implement
professional development programs for principals and
superintendents that enable them to be effective school leaders
and prepare all students to meet challenging State academic
content and achievement standards; recruit students into the
teaching profession; create opportunities for clinical
experience and training in areas related to math, science, and
technology; coordinate with community colleges to implement
teacher preparation programs, including through distance
education or articulation agreements; establish or implement a
teacher mentoring program for teachers in their first three
years of teaching; train teachers to use computer software for
multilingual education to address the needs of limited English
proficient students; increase the knowledge and skills of pre-
service teachers participating in activities under the required
uses of funds subsection in the educational and related needs
of gifted and talented students; and, increase the number of
highly qualified special education, math, and science teachers
through such activities as recruitment, scholarships for
tuition and new teacher mentoring. Requires that at least 50
percent of the funds made available under this section be used
directly to benefit the high-need local educational agency
included in the partnership. Requires that funds received under
this section supplement, rather than supplant, other Federal,
State, and local funds.
Section 204 authorizes the Teacher Recruitment Grants
competitive grants program for eligible applicants. Defines the
term ``Eligible Applicant'' and outlines the requirements for
applications for grants. Requires grantees to use funds to
award scholarships to help students pay the costs of tuition,
room, board, and other expenses of completing a teacher
preparation program; provide support services to enable
students to complete a program and transition from another
field into a teaching career; provide follow-up services to
former scholarship recipients during the recipient's first
three years of teaching; and develop mechanisms to ensure that
high-need local educational agencies and schools are able to
effectively recruit highly qualified teachers. Authorizes
grantees to use funds to develop effective mechanisms to
recruit into the teaching profession employees from high-demand
industries and the fields of math, science, and engineering;
conduct outreach and coordinate with inner city and rural
secondary schools to encourage students to pursue teaching
careers; develop and implement dual degree programs that enable
students at institutions of higher education to earn two
undergraduate degrees concurrently, one of which being in
education and the other in the subject matter of the student's
choosing; and, recruit high achieving students, bilingual
students, and other qualified candidates into early childhood
education programs. Requires scholarship recipients to teach in
a high-need local educational agency for a certain time period
or repay the scholarship. Requires the Secretary of Education
to give priority to eligible applicants who provide an
assurance that they will recruit a high percentage of minority
students to become highly qualified teachers.
Section 205 outlines administrative provisions for Part A
of title II. Specifies the duration of grants awarded under
this part and that grantees under sections 203 and 204 may only
receive a grant once. Requires the Secretary to refer
applications for grants under this part to a peer review panel
for evaluation. Outlines the priorities the peer review panel
should consider in making recommendations to the Secretary.
Requires the Secretary to determine, based on the peer review
process, which application shall receive funding and the
amounts of the grants. Requires grantees under this part to
provide matching funds. Limits to two percent the amount of the
grant that can be used on administration expenses.
Section 206 requires grantees under section 202 to submit
an annual accountability report to the Secretary and the
education committees of Congress. Outlines the areas that are
to be covered by the accountability report. Requires grantees
under section 203 to establish as a condition of submitting an
application an evaluation plan that includes strong performance
objectives. Outlines the objectives and measures that are to be
considered by the plan. Requires grantees under sections 202
and 203 to report annually on the progress toward meeting the
purposes of this part and the goals, objectives, and measures
described in subsections (a) and (b) of the section. Requires
the Secretary to withhold certain grant payments if the
Secretary determines that a grantee is not making substantial
progress in meeting the purposes and goals of the appropriate
section. Requires the Secretary to evaluate the activities
funded under this part, report his or her findings to the
education committees of Congress, and broadly disseminate
information regarding both successful and ineffective
practices.
Section 207 requires each State that receives funds under
the Act to submit to the Secretary annually a State report card
on the quality of teacher preparation in the State. Outlines
what is required to be included in the report. Requires the
Secretary to provide annually a report to Congress on teacher
qualifications and preparation in the United States. Outlines
what is required to be included in the report. Requires the
Secretary to coordinate, to the extent practicable, the
information collected and published under this part among
States for teachers who become certified in a State other than
the one in which they received their most recent degree.
Requires each institution of higher education or alternative
certification program that conducts a teacher preparation
program that enrolls students who receive Federal aid under
this Act to submit an annual report to the State and the
general public on both traditional certification or licensure
programs and alternative certification or licensure programs.
Outlines what is required to be included in the report and how
the report must be published and disseminated. Permits the
Secretary to impose a fine on an institution of higher
education for failure to provide the required information in a
timely or accurate manner.
Section 208 requires each State that receives funds under
the Act to have in place a procedure to identify and assist,
through the provision of technical assistance, low-performing
programs of teacher preparation within institutions of higher
education. Requires each State that receives funds under the
Act to provide annually a list of such low-performing programs,
including programs in danger of being placed on the list.
Requires States receiving funds under this title to develop
plans to close or reconstitute underperforming programs of
teacher preparation within institutions of higher education.
States that any institution of higher education that provides a
program of teacher preparation in which the State has withdrawn
its approval or terminated financial support due to low
performance will be ineligible for any funding for professional
development activities awarded by the Department of Education
and will not be permitted to enroll any student who receives
aid under title IV of the Act in the institution's teacher
preparation program.
Section 209 requires the Secretary to ensure that States
and institutions of higher education use equitable methods in
reporting and that the reporting not allow for the
identification of individuals. Outlines procedures for the
Secretary to collect data from States in which there are no
certification or licensure assessments or that do not set
minimum performance levels on those assessments. Prohibits
Federal control over any aspect of any private, religious, or
home school, and clarifies that nothing in this section
prohibits private, religious, or home schools from
participating in the programs under this part. Clarifies that
nothing in this part encourages or requires any changes in a
State's treatment of any private, religious, or home school.
Prohibits the Secretary from establishing or supporting any
national system of teacher certification.
Section 210 establishes the authorization of appropriations
for this part as $300 million for fiscal year 2006 and such
sums for each of the 5 succeeding fiscal years. Establishes the
percentages of funds to be available for sections 202, 203, and
204, respectively.
Section 202. Preparing tomorrow's teachers to use technology
Amends section 222(a) by establishing nonprofit
telecommunications entities as eligible applicants.
Amends section 223(b) by clarifying that funds should focus
on using technology to increase student academic achievement.
Amends section 224 with regards to the authorization of
appropriations.
Section 203. Centers of excellence
Amends title II by inserting a new part C.
Section 231 establishes the purposes for this part. Defines
the following terms: ``Eligible Institution,'' ``Highly
Qualified,'' ``Scientifically Based Reading Research,'' and
``Scientifically Based Research.''
Section 232 authorizes the Centers of Excellence
competitive grant program. Requires grantees to ensure that
current and future teachers are highly qualified. Requires
grantees to use funds to implement reforms within teacher
preparation programs to ensure that such programs are preparing
teachers who are highly qualified, are able to understand
scientifically based research, and are able to use advanced
technology effectively in the classroom to improve student
academic achievement; provide new teachers sustained and high-
quality pre-service clinical experience, mentoring from
exemplary teachers, and increased interaction between faculty
at institutions of higher education and new and experienced
school personnel; develop initiatives to promote retention of
highly qualified teachers and principals, including minority
teachers and principals; award need-based scholarships to help
students pay the cost of tuition, room, board, and other
expenses; disseminate information on effective practices for
teacher preparation and successful teacher certification and
licensure assessment preparation strategies; and activities
authorized under sections 202, 203, and 204. Outlines the
requirements for submitting an application. Sets the minimum
grant under this part at $500,000. Limits to two percent the
amount of a grant that can be used for administrative expenses.
Requires the Secretary to prescribe regulations as necessary.
Section 233 establishes the authorization of appropriations
as $10 million for fiscal year 2006 and such sums for the five
succeeding fiscal years.
Section 204. Teacher incentive fund program
Amends title II by inserting a new part D. Section 241
outlines the purposes of this part and defines the terms
``Eligible Entity'' and ``High-Need Local Educational Agency.''
Section 242 authorizes the Secretary to award competitive
grants of up to 5 years in length for eligible entities to
develop and implement, or expand, a comprehensive performance-
based compensation system for teachers and principals for one
or more local educational agencies. Outlines the necessary and
permitted characteristics of a comprehensive performance-based
compensation system under this part. Requires grantees to use
funds only to design and implement, or expand, in collaboration
with teachers, principals, other school administrators, and
members of the public, a compensation system consistent with
the requirements of this part. Allows grantees to use funds to:
develop appraisal systems that reflect clear and fair measures
of student academic achievement; conduct outreach with the
local educational agency or the State to gain input on how to
construct the appraisal system and to develop support for it;
pay, as part of a comprehensive performance-based system,
bonuses and increased salaries to teachers and principals who
raise student achievement, so long as the grantee uses an
increasing share of non-Federal funds to pay these monetary
rewards each year of the grant; pay, as part of a comprehensive
performance-based compensation system, additional bonuses to
teachers who both raise student achievement and either teach in
high-poverty schools or teach subjects that are difficult to
staff, or both, so long as the grantee uses an increasing share
of non-Federal funds to pay these monetary rewards each year of
the grant; pay, as part of a comprehensive performance-based
compensation system, additional bonuses to principals who both
raise student achievement and serve in high-poverty schools, so
long as the grantee uses an increasing share of non-Federal
funds to pay these monetary rewards each year of the grant.
Outlines what is required to be included in the grant
application. Requires the Secretary to give priority to
applications for projects that would establish comprehensive
performance-based compensation systems in high-need local
educational agencies.
Section 243 requires the Secretary to conduct an
independent evaluation of the program under this part and may
use up to 1 percent of the funds made available under this part
or $1,000,000, whichever is less, for any fiscal year for the
cost of the evaluation.
Section 244 establishes the authorization for this part as
$100,000,000 for fiscal year 2006 and such sums as may be
necessary through 2010.
Section 205. Transition
Requires the Secretary to take necessary actions to provide
for the orderly implementation of this title.
Title III--Institutional Aid
Section 301. Title III grants for American Indian tribally controlled
colleges and universities
Amends section 316(b) with regards to the definitions of
eligible institutions and Indian.
Amends section 316(c)(2) to expand the authorized use of
funds related to instructional facilities, and to provide new
authorized activities with regards to distance learning and
tribal governance.
Amends section 316(d) by changing the program from a
competitive grant program to a formula grant program. Provides
a minimum grant to each eligible institution of $400,000.
Removes the two-year wait out period for these grants, as it is
no longer necessary under a formula system.
Section 302. Alaska Native and Native Hawaiian-serving institutions
Amends section 317(c)(2) to authorize the use of funds for
the construction and maintenance of instructional facilities
and the acquisition of real property adjacent to the campus.
Creates additional new authorized uses of funds related to
distance learning and tribal governance.
Amends section 317(c) by allowing grant funds to be used to
establish or increase an endowment fund so long as the
institution provides matching funds.
Amends section 317(d) by striking subparagraphs (A) and (B)
in paragraph (2) with regards to the requirements that
applications include a 5-year improvement plan and other
information and assurances as the Secretary may require.
Section 303. Grants to part B institutions
Amends section 323(a) by authorizing the use of funds for
the construction and maintenance of instructional facilities
and the acquisition of real property adjacent to the campus.
Amends the authority to establish community outreach programs
to prepare elementary and secondary students for postsecondary
education.
Amends section 323 by adding a new subsection (c) to allow
for the use of no more than two percent of funds received under
Part B to secure technical assistance, financial management and
strategic planning
Amends section 323(a)(2) to include activities related to
distance learning.
Amends section 324(d)(1) to increase the minimum grant to
$750,000 under certain conditions.
Amends section 326(a)(1) to require that the institution be
accredited by a national accrediting agency and be in good
standing.
Amends section 326(c) to authorize the use of funds for the
construction and maintenance of instructional facilities and
the acquisition of real property adjacent to the campus.
Amends section 326(e) to add the names of additional
eligible institutions. Further amends section 326(e) to update
the year for the special rule.
Amends section 326(f) to update the authorization levels.
Further amends section 326(f) to update cross-references.
Amends section 326(g) to update the year for the hold
harmless rule.
Section 304. Technical amendments
Amends section 311(c) to include within the use of funds
education or counseling services to improve financial and
economic literacy.
Amends section 312(b) to require that an institution offer
not less than a two year program that is acceptable for full
credit toward a bachelor's degree.
Amends section 316(c) to include within the use of funds
education or counseling services to improve financial and
economic literacy.
Amends section 317(c) to include within the use of funds
education counseling services to improve financial and economic
literacy.
Amends section 323(a) to include within the use of funds
education counseling services to improve financial and economic
literacy.
Makes several technical amendments.
Revises section 343(e) to add in a subsection heading to
read: ``Sale of Qualified Bonds.''
Repeals section 1024 as transferred by section 301(a)(5) of
the Higher Education Amendments of 1998.
Section 305. Title III authorizations
Amends section 399(a) in regards to the authorization of
appropriations.
Title IV--Student Assistance
PART A--GRANTS TO STUDENTS
Section 401. Pell Grants
Amends section 401(a) by extending the authority of the
program. Further amends section 401(a) by striking paragraph
(2) with regards to advance payment to students attending
institutions that do not participate in the disbursement
system.
Amends section 401(b) to increase the authorized annual
maximum award to $6,000 through academic year 2012-2013.
Further amends section 401(b) by eliminating tuition
sensitivity. Further amends section 401(b) by providing for
year-round Pell grants for students enrolled for 12 months at
baccalaureate degree granting institutions with a graduation
rate of at least 30 percent for the four preceding years and
two-year institutions with a graduation rate that is at least
above the average for the institution's type and control.
Outlines the requirements for the awarding of the year-round
Pell grants. Requires an evaluation and report by the Secretary
by 2011.
Amends section 401(c) by inserting a new paragraph (5) that
limits the period during which a student may receive a Pell
Grant to the equivalent of 18 semesters or 27 quarters in
duration (as determined by the Secretary) without regard to
whether the student is enrolled on a full-time basis during any
portion of that period, and including any period of time for
which the student received Pell Grants prior to the date of
enactment of this Act. Further amends section 401(c) by
restricting the use of Pell Grants for remedial or English as a
second language instruction to one academic year.
Further amends section 401(b) by prohibiting a student who
is subject to an involuntary civil commitment upon completion
of a period of incarceration for a sexual offense (as
determined by the Secretary) from receiving a Pell Grant.
Amends subpart 1 of part A by inserting a new section 401A
to create the Pell Grants Plus--Achievement Grants for State
Scholars program. Outlines how students will be eligible to
receive grants and sets the grant amount as $1000 so long as
the total amount of a student's financial assistance does not
exceed the cost of attendance. Requires the Secretary to
establish regulations for determining student eligibility.
Outlines the requirements students must meet to continue to
receive an award during his or her second year of undergraduate
education. Requires the Secretary to monitor the progress,
retention, and completion of students receiving awards,
evaluate the impact of the program, and submit a report at
least every two years to the authorizing committees of
Congress. Repeals Chapter 3 of subpart 2 of part A, the
Academic Achievement Incentive Scholarship program.
Section 402. TRIO programs
Amends section 402A(b) to establish the duration of TRIO
grants as five years and Staff Development Activities grants as
two years, and allow the Secretary to determine the duration of
Project Improvement and Dissemination Partnership Projects
grants. Further amends section 402A(b) to synchronize
outstanding grants to the five-year term. Further amends
section 402A(b) to increase the minimum TRIO grants to $200,000
and Staff Development Activities grants to $170,000.
Amends section 402A(c) to require the Secretary to set
aside ten percent of funds for novice applicants. In the event
an insufficient number of quality novice applicants are
available, requires the Secretary to distribute the ten percent
among other applicants.
Amends section 402A(c) by striking the requirement that the
Secretary notify current grant holders applying for an
additional grant of the status of that application up to eight
months prior to the expiration of the current grant.
Amends section 402A(e) with a technical amendment. Further
amends section 402A(e) by inserting a new paragraph (3) to make
homeless or unaccompanied youth under section 725 of the
McKinney-Vento Act eligible to participate in the Talent
Search, Upward Bound, Student Support Services, and Educational
Opportunity Centers programs.
Amends section 402A(f) to establish the authorization level
as $836,500,000 and to extend the authorization through fiscal
year 2011.
Amends section 402A(g) by amending the definition of
``Veteran Eligibility'' and defining the terms ``Different
Campus'' and ``Different Population.''
Amends section 402B(b) to add education or counseling
services that address the financial and economic literacy of
students and parents to the list of permissible services.
Amends section 402C(b) to add education or counseling
services that address the financial and economic literacy of
students and parents to the list of permissible services.
Further amends section 402C(b) to stress the transition of
veterans into math and science fields in the list of
permissible services.
Amends section 402D(b) to add education or counseling
services that address the financial and economic literacy of
students and parents to the list of permissible services.
Amends section 402E(b) to add education or counseling
services that address the financial and economic literacy of
students and parents to the list of permissible services.
Amends section 402F(b) to add education or counseling
services that address the financial and economic literacy of
students and parents to the list of permissible services.
Amends section 402C(e) by increasing the maximum stipend to
$100 for services carried out in June, July, and August, and to
$60 for services carried out during the remainder of the year.
Amends section 402D(d) to include within an application's
consideration the services provided to low-income working
adults.
Amends section 402E(e) by increasing the maximum stipend to
$5,000.
Amends section 402F(c) by requiring the Secretary to
consider the services that would be provided to low-income
working adults when considering the application.
Section 403. TRIO reform
Amends section 402A by inserting a new subsection (c). The
new subsection requires the Secretary to establish expected
program outcomes and procedures for measuring the quality and
effectiveness of TRIO programs. Describes the purposes for
which the measures are to be used. Permits local grant
recipients to establish local performance measures.
Amends section 402A(d) by amending paragraph (2). The new
paragraph establishes criteria to be used by the Secretary in
selecting grant recipients. Further amends section 402A(d) by
striking subparagraph (A) of paragraph (3) and inserting a new
subparagraph (A) that requires the Secretary to use the
performance measures to evaluate each applicant's prior
experience in achieving expected program outcomes. Further
amends section 402A(d) by inserting a new subparagraph (C) in
paragraph (3) that prohibits the Secretary from awarding prior
experience points to any current grantee that failed to meet
certain criteria. Further amends section 402A(d) by amending
subparagraph (B) of paragraph (4) to prohibit the Secretary
from providing assistance to an entity if the Secretary has
determined that such entity has been involved in fraud.
Amends section 402A(e) by amending paragraph (3) with
regards to the provision of technical assistance by the
Secretary to applicants for grants under the TRIO programs.
Rewrites section 402A(f) to require the Secretary to
establish uniform reporting requirements and require each
recipient of funds to annually submit information the Secretary
deems necessary. Requires the Secretary to submit a report to
the authorizing committees of Congress at least once every two
years. Describes what is to be included in the report.
Amends section 402A(g) to permit the Secretary to use no
more than one half of 1 percent of funds appropriated for TRIO
to support the administration of the programs.
Amends section 402B by inserting a new subsection (d) that
requires the Secretary to consider the college-going rate of
participants in programs provided by the grantee and compare
that to the rates of other applicants eligible to receive
consideration of prior experience when considering a grantee's
past performance and prior experience.
Amends section 402C by inserting a new subsection (f) that
requires the Secretary to consider the college-going rate of
participants in programs provided by the grantee and compare
that to the rates of other applicants eligible to receive
consideration of prior experience when considering a grantee's
past performance and prior experience.
Amends section 402D by inserting a new subsection (e) that
requires the Secretary to consider the college-going rate of
participants in programs provided by the grantee and compare
that to the rates of other applicants eligible to receive
consideration of prior experience when considering a grantee's
past performance and prior experience.
Amends section 402E by inserting a new subsection (f) that
requires the Secretary to consider the college-going rate of
participants in programs provided by the grantee and compare
that to the rates of other applicants eligible to receive
consideration of prior experience when considering a grantee's
past performance and prior experience.
Amends section 402F by inserting a new subsection (d) that
requires the Secretary to consider the college-going rate of
participants in programs provided by the grantee and compare
that to the rates of other applicants eligible to receive
consideration of prior experience when considering a grantee's
past performance and prior experience.
Rewrites section 402G to authorize the Secretary to make
grants to institutions of higher education and other entities
to provide training and technical assistance for staff and
leadership personnel participating in TRIO programs for the
purpose of improving the operations of the programs. Outlines
the areas in which training should be provided. Requires the
Secretary to consult with regional and State professional
associations with knowledge of TRIO programs before issuing
grants.
Rewrites section 402H to require the Secretary to make
grants or enter into contracts with organizations to evaluate
the effectiveness of the programs and disseminate information
on the impact of the programs. Outlines the areas of
effectiveness to be measured. Requires the Secretary to submit
to the authorizing committees of Congress an annual interim
report on the progress of the evaluations within two years of
the date of enactment of this Act and a final report no later
than three years following the date of enactment. Requires all
reports and underlying data to be made publicly available upon
request.
Section 404. GEARUP
Amends section 404A(b) to establish the duration of the
grant as six years.
Amends section 404A by inserting a new subsection (d) to
ensure that entities currently receiving a grant may reapply
once the grant expires.
Amends section 404B to allow services to be provided to
students during their first year of college.
Amends section 404D to allow services to be provided to
students during their first year of college.
Amends section 404C(a) to require applications for grants
to include a description of activities in place to coordinate,
complement, and enhance services provided by other State
entities.
Amends section 404D(b) to include financial and economic
literacy within the counseling provided.
Further amends section 404D by inserting a new subsection
(e) to make homeless or unaccompanied youth under section 725
of the McKinney-Vento Act eligible to participate in the Talent
Search, Upward Bound, Student Support Services, and Educational
Opportunity Centers programs.
Amends section 404H to increase the authorization level and
extend the authorization through 2011.
Section 405. Federal Supplemental Educational Opportunity Grants
Amends 413A(b) to increase the authorization level and
extend the authorization through 2011.
Amends section 413C(c) to ensure that institutions give
priority for supplemental grants to students who receive Pell
Grants and meet the requirements under section 484, and that no
more than 10 percent of an institution's funds go to students
who did not receive a Pell Grant in a prior year.
Amends section 413D(a) to phase out of the base guarantee
beginning in fiscal year 2007. Further amends section 413D(a)
to allow the Secretary, should the allocation exceed
$700,000,000 for fiscal year 2008 or any succeeding fiscal
year, to allocate not more than 10 percent of such funds to
institutions with at least 10 percent of students receiving
Federal Pell Grants and that meet certain graduate rate
criteria for Pell Grant-receiving students depending on the
type of institution.
Amends section 413D(c) to increase the books and supplies
allowance to $600.
Section 406. LEAP
Amends section 415A(b) to extend the authorization through
2011.
Section 407. HEP/CAMP program
Amends section 418A(b) to expand recruitment services to
include those with a spouse who is a migrant or seasonal farm
worker. Further amends section 418A(b) to include preparation
for college entrance exams and child care and transportation
among the supportive services provided. Further amends section
418A(b) to allow up to two percent of funds to be used for
follow up and reporting.
Amends section 418A(c) to expand outreach and recruitment
services to include those with a spouse who is a migrant or
seasonal farm worker. Further amends section 418A(c) to include
economic education or personal finance counseling among the
services provided. Further amends section 418A(c) to specify
that mentoring and guidance should be included among the follow
up services provided. Further amends section 418A(c) to
encourage the transfer of those in a program of two years or
less to a four year institution.
Amends section 418A(h) to increase the high school
equivalency program authorization to $24,000,000 and extend the
authorization to 2011. Further amends section 418A(h) to
increase the college assistance migrant program authorization
to $16,000,000 and extend the authorization to 2011.
Section 408. Robert C. Byrd Honors Scholarships Program
Amends subpart 6 of part A by rewriting the subpart.
Section 419A authorizes the Robert C. Byrd Mathematics and
Science Honors Scholarship Program. States the purposes of the
section and defines the terms ``Computer Science,'' ``Eligible
Student,'' ``Engineering,'' ``Life Sciences,'' ``Managing
Agent,'' ``Mathematics,'' and ``Physical Sciences.'' Authorizes
the Secretary to make a five year award to a private, non-
profit organization to manage a program of Mathematics and
Science Honors Scholarships under this section. Outlines
requirements for the Federal contribution to the scholarships
and the maximum scholarship award. Permits the Secretary to
establish eligibility criteria and operational standards for
the managing agent, and review and revise those criteria as
necessary. Permits the Secretary to terminate the agreement if
the managing agent fails to meet the requirements and requires
the Secretary to conduct outreach efforts to raise awareness of
the scholarships. Outlines the duties of the managing agent.
Outlines the requirements for submitting an application.
Outlines several responsibilities of students for receiving and
maintaining a scholarship. Outlines the responsibilities of
institutions of higher education.
Section 419B authorizes the Mathematics and Science
Incentive Program. Authorizes the Secretary to carry out a
program of assuming the obligation to pay, pursuant to the
provisions of this section, the interest on a loan made,
insured, or guaranteed under parts B and D of title IV.
Outlines the eligibility criteria for inclusion in the program.
Outlines limitations on the obligations the Secretary is
permitted to assume. Outlines the responsibilities of the
Secretary in selecting program participants. Subjects the
payment of interest under this section to the availability of
appropriations. Outlines the period during which the Secretary
is required to pay interest on behalf of the borrower. Requires
the Secretary to pay to each eligible lender or holder for each
payment period the amount of interest that accrues on a loan.
Outlines the application procedures for eligible borrowers.
Defines criteria for including a consolidation loan in this
program. Prohibits the receipt of benefits under this program
and several others. Defines the terms ``High Need Local
Educational Agency'' and ``Mathematics, Science, or Engineering
Professional.''
Section 419C authorizes the Mathematics and Science
Education Coordinating Council Grants program. Outlines the
purposes of the program and defines the terms ``Eligible
State'' and ``Mathematics and Science Education Coordinating
Council.'' Authorizes the Secretary to use not more than $5
million to award competitive grants to eligible States for the
purposes of carrying out activities under this section.
Outlines the authorized uses of funds. Outlines the application
process. Requires the Governor of a State, or the State entity
described in section (b)(1)(B) to consult with a variety of
State entities with respect to the activities undertaken under
this section. Outlines several administrative provisions
related to the awarding of grants under this section. Requires
States that receive a grant under this section to submit an
annual accountability report to the Secretary. Requires the
Secretary to evaluate the activities funded under this section
and report his or her findings to the authorizing committees of
Congress. Also requires the Secretary to broadly disseminate
successful practices developed under this section. Prohibits
the Secretary for making the grant payment for more than two
years if he or she determines that the State is not making
substantial progress in meeting the goals required under this
section.
Section 419D authorizes $41 million for this subpart for
fiscal year 2006 and such sums for the five succeeding years.
Section 409. Child Care Access
Amends section 419N(g) to extend the authorization to 2011.
Section 410. Learning Anytime Anywhere Partnerships
Repeals subpart 8 of part A. Amends section 400(b) to make
a conforming amendment.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
Section 421. Reauthorization of Federal Family Education Loan program
Amends section 421(b) to reference loan processing and
issuance fee rather than administrative cost allowance.
Amends section 424(a) to extend Federal insurance on
student loans to 2012. Further amends section 424(a) to extend
Federal insurance on student loans for students who have other
loans under this part and are continuing their education
through 2016.
Amends sections 428(a) and 428C(e) to continue the
authorization for the guaranteed and consolidation loan
programs.
Section 422. Loan limits
Amends sections 425(a) and 428(b) to increase the maximum
annual loan limits for freshmen from $2,625 to $3,500 and for
sophomores from $3,500 to $4,500.
Amends section 428C(a) by inserting a new clause (ii) in
paragraph (3)(B)to clarify that the underlying loans in a
consolidation loan will count against a borrower's aggregate
borrowing limits.
Establishes that amendments made by this section will apply
to loans made, insured, or guaranteed under part B or part D
beginning July 1, 2007.
Section 423. Interest rates and special allowances
Amends section 427A(k) to repeal the interest rate change
to a fixed interest rate scheduled to take effect in 2006.
Amends section 427A by striking subsection (l) with regards
to interest rates for new loans on or after July 1, 2006.
Amends section 455(b) to repeal the interest rate change to
a fixed interest rate scheduled to take effect in 2006. Further
amends section 455(b) by striking paragraph (7) with regards to
interest rates for new loans on or after July 1, 2006.
Further amends section 427A(k) by specifying in the heading
of paragraph (4) that the paragraph applies to loans made
before July 1, 2006. Further amends section 427A(k) by
inserting a new paragraph (5) to provide borrowers a choice
between a variable rate and a fixed rate for all consolidation
loans made on or after July 1, 2006. Establishes how the
interest rates will be determined and establishes an interest
rate cap.
Amends section 455(b) by specifying in the heading of
subparagraph (D) of paragraph (6) that the subparagraph applies
to loans made before July 1, 2006. Further amends section
455(b) by inserting a new subparagraph (E) in paragraph (6) to
provide borrowers a choice between a variable rate and a fixed
rate for all consolidation loans made on or after July 1, 2006.
Establishes how the interest rates will be determined and
establishes an interest rate cap.
Makes technical amendment to section 428C.
Makes technical and conforming amendments to section
438(b). Further amends section 438(b) by striking clauses (v),
(vi), and (vii) and inserting a new clause (v) in subparagraph
(I) of paragraph (2) that requires the annual return of excess
interest to the Federal treasury, outlines how the excess
interest is to be calculated, and defines the term ``special
allowance support level.'' States that the amendments made to
this subsection do not apply to any loans made under this
section before July 1, 2006.
Section 424. Additional loan terms and conditions
Amends section 428(b) by inserting a new subparagraph (H)
in paragraph (1) to require guaranty agencies to collect a
single insurance premium equal to no more than 1 percent of the
loan principal for loans for which the first disbursement of
principal is made before July 1, 2006, or for the collection
and deposit into the Federal Student Loan Reserve Fund of a
Federal default fee of 1 percent of the loan principal for
loans made on or after July 1, 2006. Further amends section
428(b) in paragraph (N) to require the disbursement of loan
funds to students attending foreign schools to be sent to the
institution but made payable to the student. Also requires the
endorsement or other certification by the student. Further
amends section 428(b) to prohibit the Secretary from
restricting the proportions or ratios by which payments may be
graduated with the informed agreement of the borrower. Further
amends section 428(b) by inserting a new clause (iv) in
subparagraph (A) of paragraph (9) to provide for an interest
only repayment plan, so long as the interest amounts to at
least $600, for the first two years of repayment.
Amends section 428H(h) to require guaranty agencies with
agreements with the Secretary under section 428(b)(1) to, in
lieu of the insurance premium, collect and deposit into the
Federal Student Loan Reserve Fund a Federal default fee of 1
percent of the loan principal for loans made on or after July
1, 2006.
Amends section 428A(a) by inserting a new subparagraph (C)
in paragraph (1) to prohibit the Secretary from waiving the
Federal default fee under sections 428(b)(1)(H) and 428H(h).
Amends section 428B(a)(1) by inserting a new subparagraph
(C) in paragraph (3) to ensure parents who have been convicted
of fraud have paid off their student loans before they are able
to take out additional loans.
Amends section 455(d) to make technical and conforming
amendments to align repayment plans in part D with repayment
plans in part D.
Amends section 438(c) by inserting a new subparagraph
heading in paragraph (2) to read: ``(A) In General--.'' Further
amends section 438(c) by inserting a new subparagraph (B)
within paragraph (2) to gradually reduce origination fees paid
by students to 0 percent by 2010 for loans, except
consolidation loans, made under part B.
Amends section 455(c) to reduce origination fees to 1
percent by 2010 for loans, except PLUS loans and consolidation
loans, made under part D. Further amends section 455(c) by
prohibiting the Secretary from waiving any amount of the loan
fee prescribed under this section as part of a repayment
incentive. Also prohibits the Secretary from providing any
repayment incentive before a borrower enters repayment.
Further amends section 438(c) by inserting a new paragraph
(9) that establishes a fixed rate offset charge in an amount
not to exceed 0.5 percent of the principal for consolidation
loans.
Further amends section 455(c) by inserting a new paragraph
(4) that establishes a fixed rate offset charge in an amount
not to exceed 0.5 percent of the principal for consolidation
loans.
Section 425. Consolidation loan changes
Amends section 428C(a) to terminate a student's status as
an eligible borrower under this section and section 455(g) upon
the receipt of a consolidation loan. Further amends section
428C(a) by inserting a new subclause (V) in clause (i) of
subparagraph (B) of paragraph (3) to allow a student who has
already consolidated their loan to obtain a subsequent Direct
Loan consolidation loan only for the purposes of obtaining an
income contingent repayment plan and only if the loan has been
submitted to the guaranty agency for default aversion. Further
amends section 428C(a) to include a cross-reference to section
428(b)(7)(A) in subclause (I) of clause (ii) of subparagraph
(3). Further amends section 428C(a) by striking subparagraph
(C) of paragraph (3) with regards to spousal consolidation.
Amends section 428C(b) to require the Secretary to offer
any eligible borrower that is denied a consolidation loan, or a
consolidation loan with income-sensitive repayment terms, by an
eligible lender under subsection (a)(1) of this section, a
direct consolidation loan if the eligible borrower submits an
application. The Secretary is required to offer such loans to a
borrower who has defaulted so that the borrower may resolve the
default. Further amends section 428C(b) by requiring lenders of
consolidation loans to have an eligible borrower certify, if
all of his or her loans are held by a single holder, that he or
she has notified that holder of his or her interest in
receiving a consolidation loan and strikes language that
required borrowers with a single holder to consolidate with
that holder. Further amends section 428C(b) by striking an
outdated references to a minimum loan balance required for
consolidation. Further amends section 428C(b) by inserting a
new subparagraph (F) in paragraph (1) that requires the
consolidating lender to provide a borrower with a clear and
conspicuous notice of the effects of consolidation on a
borrower's total interest to be paid, fees and length of
repayment; the effects of consolidation on a borrower's
underlying loan benefits; the ability of the borrower to pre-
pay the loan, pay on a shorter schedule, change repayment
plans, and information making clear how borrower benefit
programs may vary among lenders and loan holders; the tax
benefits for which the borrower might be eligible; the
consequences of default; and that by applying for the
consolidation loan, the borrower is not obligated to take the
loan.
Amends section 428(b) to require the repayment period to
begin the day after 6 months after the date the student ceases
to carry at least on-half the normal full-time academic
workload as determined by the institution.
Establishes the effective date for the amendments under
subsection (a)(2)(A) of this section of H.R. 609 as July 1,
2006.
Amends sections 455(a) and 455(g) to align consolidation
loans under part D with the requirements of this section.
Section 426. Deferment of student loans for military service
Amends section 428(b) by inserting a new clause (iii) in
subparagraph (M) of paragraph (1) to provide loan deferments
for up to three years for individuals serving on active duty or
performing National Guard duty during a war or other military
operation or emergency.
Amends section 455(f) by inserting a new subparagraph (C)
in paragraph (2) to provide loan deferments for up to three
years for individuals serving on active duty or performing
National Guard duty during a war or other military operation or
emergency.
Amends section 464(c) by inserting a new clause (iii) in
subparagraph (A) of paragraph (2) to provide loan deferments
for up to three years for individuals serving on active duty or
performing National Guard duty during a war or other military
operation or emergency.
Amends section 481 by inserting a new subsection (d) that
defines the terms ``Active Duty,'' ``Military Operation,''
``National Emergency,'' ``Serving on Active Duty,'' and
``Qualifying National Guard Duty.''
States that nothing in these amendments authorizes the
refunding of any repayment on a loan.
Establishes the effective date for these amendments as July
1, 1993.
Section 427. Loan forgiveness for service in areas of national need
Rewrites section 428K to amend the Loan Forgiveness for
Child Care Providers program. Renames the program the Loan
Forgiveness for Service in Areas of National Need program.
Outlines the purposes of the section. Authorizes the Secretary
to assume the obligation to repay a qualified loan amount for a
loan made, insured, or guaranteed under this part or part D
(excluding PLUS and consolidated loans) by a borrower who has
been employed full-time for at least five consecutive complete
school, academic, or calendar years in an area of national
need, and is not in default on a loan for which the borrower
seeks forgiveness. Forgiveness is awarded on a first-come,
first-served basis subject to the availability of
appropriations. Identifies the areas of national need as being
early childhood educators, nurses, foreign language
specialists, librarians, highly qualified teachers of bilingual
education in low-income communities, first responders in low-
income communities, child welfare workers, and speech-language
pathologists. Provides the Secretary the authority to designate
the areas of national need. Establishes the qualified loan
amount as being not more than $5,000. Prohibits a borrower from
receiving a benefit for the same service under both this
section and subtitle D of title I of the National and Community
Service Act of 1990. Prohibits a borrower from receiving a
reduction of loan obligations under both this section and
sections 428J or 460. Defines the terms ``Child Care
Facility,'' ``Critical Foreign Language,'' ``Early Childhood
Educator,'' ``Eligible Preschool Program,'' ``Low-Income
Community,'' ``Nurse,'' and ``Speech-Language Pathologist.''
Authorizes such sums as may be necessary for fiscal years 2006-
2011.
Section 428. Unsubsidized Stafford Loans
Amends section 428H(d) to increase the maximum annual loan
limits for unsubsidized loans for graduate students from
$10,000 to $12,000.
States that this amendment will apply to loans made on or
after July 1, 2007.
Section 429. Elimination of termination dates from Taxpayer-Teacher
Protection Act of 2004
Amends section 438(b) as amended by the Taxpayer-Teacher
Protection Act of 2004 to eliminate the termination dates for
special allowance payments. Further amends section 438(b) by
inserting a new clause (vi) in subparagraph (B) of paragraph
(2) to require the quarterly rate of the special allowance to
be the rate determined under subparagraphs (A), (E), (F), (G),
(H), or (I) for a holder of loans that were made or purchased
on or after October 1, 2005, or for a holder of loans that were
not earning a quarterly rate of special allowance determined in
this subsection as of October 1, 2005.
Amends section 3(b) of the Taxpayer-Teacher Protection Act
of 2004 by striking paragraph (3) with regards to the effective
date for new borrowers to be eligible for loan forgiveness.
Amends section 428J(a) by including a cross-reference to a
new subsection (g)(3).
Amends section 428J(c) by inserting a new subparagraph (C)
in paragraph (3). The new subparagraph (C) includes elementary
or secondary school teachers who primarily teach reading. To
qualify, such teachers must meet the requirements of subsection
(b) of this section, have obtained a separate reading
instruction credential from the State in which the teacher is
employed and be certified by the chief administrative officer
of the public or non-profit private elementary or secondary
school in which the borrower is employed to teach reading as
being proficient in teaching the essential components of
reading instruction and as having such credential.
Amends section 428J(g) by inserting a new paragraph (3) to
establish guidelines for private school teachers to qualify
under this section for the loan forgiveness.
Amends section 460(a) by inserting a cross-reference to a
new subsection (g)(3).
Amends section 460(g) by inserting a new paragraph (3) to
establish guidelines for private school teachers to qualify
under this section.
Section 430. Additional administrative provisions
Amends section 428(b) to require 100 percent insurance on
``exempt claims.'' Further amends section 428(b) by changing
the insurance rate from 98 percent to 96 percent in the case of
a loan for which the first disbursement of principal is made or
on after July 1, 2006.
Amends section 428(c) by inserting a new subparagraph (G)
in paragraph (1) to require 100 percent reinsurance on ``exempt
claims'' and define ``exempt claims'' under this new
subparagraph. Further amends section 428(c) by inserting a new
subparagraph (H) in paragraph (1) to reduce the reinsurance
rate from 95 percent to 93 percent for loans for which the
first disbursement of principal is made on or after July 1,
2006 described in subparagraphs (A) and (B). Further amends
section 428(c) to eliminate the requirement that forbearance
agreements be documented in writing. Further amends section
428(c) by inserting a new paragraph (10) that requires
forbearance agreements to be recorded and confirmed with the
borrower. Further amends section 428(c) by inserting a heading
for clause (i) in paragraph (2)(A) and inserting a new clause
(ii) to require the guaranty agreements to include requirements
establishing procedures to preclude consolidation lending from
being an excessive proportion of guaranty agency recoveries on
defaulted loans. Further amends section 428(c) by amending a
cross-reference by redesignating certain subparagraphs as
clauses, and by adding new subparagraphs (B) and (C). The new
subparagraphs require guaranty agencies, beginning October 1,
2006, to not charge collection costs that are more than 18.5
percent of the outstanding principal and interest of a
defaulted loan that is paid off through consolidation; return
to the Secretary a portion of the collection charge equal to
8.5 percent of the outstanding principal and interest of such
defaulted loan; and, beginning October 1, 2009, to return to
the Secretary the entire amount charged with respect to each
defaulted loan that is paid off with excess consolidation
proceeds. The new subparagraphs also define the term ``excess
consolidation proceeds.''
Amends section 428I which outlines the rules for
exceptional performance. States that the Secretary is required
to designate eligible lenders and servicers that meet certain
performance measures for exceptional performance, and to notify
the guaranty agencies of the lenders and servicers receiving
the designation. Outlines the performance measures eligible
lenders and servicers must meet to receive the designation.
Requires each guaranty agency to provide the Secretary with
other information in its possession regarding lenders and
servicers requesting the exceptional performance designation
from the Secretary. Outlines the basis for the Secretary's
decision. States that any lender or servicer designated for
exceptional performance as of the day before the date of
enactment of the College Access and Opportunity Act of 2005
shall continue to be so designated and subject to the
requirements of this section as in effect on that day until the
performance standards described in this section are
established. Prohibits the Secretary from designating any
additional lenders or servicers until the new performance
standards are established. Requires guaranty agencies to pay,
to each eligible lender or servicer, 98 percent of the unpaid
principal and interest of all loans for which claims are
submitted for payment by that eligible lender or servicer for
the one year period following the receipt by the guaranty
agency of the notification of designation under this section,
or until the guaranty agency receives notice from the Secretary
that the designation of the lender or servicer has been
revoked. Requires the Secretary to revoke the exceptional
performance designation if a lender or servicer fails to meet
the performance standards, gained the designation through
fraud, or is failing to operate in accordance with regulations.
States that this section does not limit the ability of guaranty
agencies to require the submission of claims documentation
evidencing servicing performed on loans, except that the
guaranty agency may not require greater documentation than that
required for lenders and servicers not receiving the
exceptional performance designation. States that loans
reimbursed under this section will not be subject to additional
review by the Secretary or repurchase by the guaranty agency
unless a determination is made by the Secretary that the lender
or servicer engaged in fraud or other purposeful misconduct in
obtaining the exceptional performance designation. Grants the
Secretary the authority to terminate the exceptional
performance designation of lenders and servicers if he or she
determines that the termination would be in the best interests
of the United States. Defines the terms ``Eligible Loan'' and
``Servicer.'' Establishes the effective date of these
amendments as July 1, 2006. Makes additional technical
amendments.
Amends section 428A(a) by striking the authority of the
Secretary to waive the prohibition on inducements under certain
circumstances within the Voluntary Flexible Agreements (VFA).
Amends section 428A(c) by striking the existing paragraph
(3) and inserting a new paragraph (3) that requires the
Secretary to publish notification in the Federal Register of
any new agreements and allow public comment on the proposed
agreement prior to final approval.
Amends section 428B(a)(1) by adding at the end, a new
subparagraph which requires parents convicted of or who have
plead guilty to a crime involving fraud in obtaining funds
under this title complete repayment of the funds to the
Secretary before they are eligible to receive additional funds.
Amends section 428F(a) to strike the requirement for 12
months of consecutive payments and insert a requirement for
nine payments made within 20 days of the due date during 10
consecutive months. Further amends section 428F(a) by inserting
a new subparagraph (C) of paragraph (1) to codify the
collection costs permissible for rehabilitated loans at up to
18.5 percent of the outstanding principle and interest of the
loan.
Amends section 428F by inserting a new subsection (c) that
requires, where appropriate, each program described under
subsection (b) of section 428F to make available financial and
economic education materials for the borrower.
Amends section 432(k) to require the Secretary to provide
financial and economic education and counseling.
Amends section 430A(a) to require loan holders to report
loan information to all national credit bureaus.
Amends section 432(l) to include the anticipated graduation
date.
Amends section 432 by striking subsection (n) with regards
to Default Reduction Management.
Amends section 435(d) by amending paragraph (2) to
establish new requirements for institutions to become an
eligible lender in the FFEL program. Establishes that an
eligible institution is permitted to use a portion of the
proceeds from special allowance payments, interest payments
from borrowers, interest subsidies from the Department, and any
proceeds from the sale or other disposition of loans for need
based aid and reasonable, direct administrative expenses.
Requires an institution to ensure that the proceeds received
under this paragraph are used to supplement, and not supplant,
non-Federal funds that would otherwise be used for need-based
grant programs. Prohibits schools from acting as PLUS lenders
and as lenders to undergraduate students.
Amends section 437(a) to state that a borrower who has been
certified as permanently and totally disabled by the Department
of Veteran Affairs or the Social Security Administration will
not be required to present further documentation.
Amends section 437(c) to include a parent's eligibility
within the false certification section.
Amends section 439(d) by striking paragraph (3) with
regards to the perfection of security interests in student
loans.
Amends section 428(a) by inserting a new subclause (III) of
clause (v) of subparagraph (A) of paragraph (3) to prohibit a
lender from receiving interest on a loan disbursed through an
escrow agent for any period that precedes the date that is 3
days before the first disbursement of the loan.
Further amends section 428(c) by requiring a guaranty
agency to file a claim for reimbursement with respect to losses
under this subsection within 30 days after the agency
discharges its insurance obligation on the loan rather than 45
days.
Amends section 428(i) by amending from 21 days to 10 the
timeline for lenders to make payments into the escrow account
prior to the date of the disbursement of the installment to the
borrowers.
Amends section 428G(e) by striking the reference that
limits the applicability of this subsection to foreign
institutions.
Amends section 428H(e) by striking paragraph (6) and
inserting a new paragraph (6) to prohibit a lender from
receiving interest on a loan under this section for any period
that precedes the dates described in section 428(a)(3)(A)(v).
Amends section 438(b) to require the daily interest to be
computed using the interest rate described in section 3902(a)
of title 31, United States Code.
Makes technical amendments.
PART C--FEDERAL WORK-STUDY PROGRAMS
Section 441. Authorization of appropriations
Amends section 441(b) by extending the authorization
through 2011.
Section 442. Community service
Amends section 441(c) to remove the requirement that
eligible child care services be open and accessible to the
community.
Section 443. Allocation of funds
Amends section 442(a) to phase out of the base guarantee
beginning in fiscal year 2007. Further amends section 442(a) to
permit the Secretary, should the allocation for this program
exceed $700,000,000, to allocate not more than 10 percent of
the excess to eligible institutions with at least 10 percent of
students receiving Federal Pell Grants and that meet certain
graduate rate criteria for Pell Grant-receiving students
depending on the type of institution.
Establishes the effective date for the amendments made here
and funds appropriated under section 441(441b) as 2008.
Section 444. Books and supplies
Amends section 442(c) by increasing the books and supplies
allowance to $600.
Section 445. Job location and development
Amends section 446(a) to increase the amount and percentage
of funds eligible for job location and development programs to
15 percent or $75,000, which ever is less. Further amends
section 446(a) to specify that at least one-third of this
amount must be specifically allocated to locate and develop
community service jobs.
Section 446. Work college
Amends section 448 to strike ``work-learning'' and ``work-
service'' and insert ``work-learning-service.''
Amends section 448(e) with regards to the definition of
``work-college.'' Further amends section 448(e) by striking
``work-learning'' and inserting ``work-learning-service'' in
paragraph (2) and amending the definition of ``comprehensive
student work-learning-service'' in paragraph (2).
Amends section 448(f) by extending the authorization
through 2011.
PART D--FEDERAL DIRECT LOAN PROGRAM
Section 451. Reauthorization of the Direct Loan program
Amends section 458(a) by increasing the authorization each
year and extending the authorization through 2011.
Amends section 458(b) by establishing that the calculation
basis will be 0.10 percent of the original principal amount of
outstanding loans on which insurance was issued under part B.
Amends section 458(c) by striking subparagraphs (A) through
(E) of paragraph (1) and inserting new subparagraphs (A)
through (F) that establish new account maintenance fee caps.
Amends section 455(e) to strike the requirement that the
borrower files a Federal income tax return jointly with his or
her spouse.
PART E--FEDERAL PERKINS LOAN PROGRAM
Section 461. Reauthorization of programs
Amends section 461(b) to extend the authorization of the
program through 2012. Further amends section 461(b) to extend
the authorization for loans to students to continue or complete
courses of study through 2017.
Amends section 466 to extend the time frame after which an
institution would have to return funds to the Secretary.
Amends section 462(a) to phase out of the base guarantee
beginning in fiscal year 2008.
States that the effective date for the amendments to
section 462(a) will be fiscal year 2008.
Amends section 462(c) to increase the books and supplies
allowance to $600.
Section 462. Loan terms and conditions
Amends section 464(a) to increase the annual maximum loan
limits from $4,000 to $5,500 for undergraduates and from $6,000
to $8,000 for graduate or professional students. Further amends
section 464(a) to increase the aggregate loan limits for
undergraduates from $20,000 to $27,500 and for graduate and
professional students from $40,000 to $60,000. Further amends
section 464(a) to increase the aggregate loan limits for
students not otherwise covered under this paragraph from $8,000
to $11,000.
Amends section 464(e) to strike the requirement that a
borrower must request forbearance in writing.
Amends section 464(f) to strike the terms schools must meet
to allow compromise payments on defaulted loans; prohibits
compromise payments on defaulted loans unless the Secretary
grants approval.
Amends section 464(h) to lower from 12 to nine the number
of consecutive payments that are required to be made for a loan
to be considered rehabilitated.
Section 463. Loan cancellation
Amends section 465(a) by striking clause (iii) of
subparagraph (A) of paragraph (3) with regards to the
percentage of loan forgiveness for members of the Armed Forces.
Further amends section 465(a) by allowing for loan forgiveness
for members of the Armed Forces at the same rate as is provided
teachers who teach in a title I local educational agency;
special education teachers; law enforcement officers; teachers
in math, science, foreign languages, bilingual education, or
other high need areas as defined by the State educational
agency; nurses or medical technicians; and employees of a
public or private nonprofit child or family service agency.
Section 464. Technical amendments
Amends section 462(g) to clarify that consecutive payments
are consecutive monthly payments.
Amends section 463(a) to require the Secretary to carry out
the provisions of paragraph (4)(A). The Secretary is now only
permitted to carry out these provisions.
Amends section 464(c) to correct incorrect designations.
Amends section 465(a) to correct a cross-reference. Further
amends section 465(a) by making a technical correction.
Amends section 467(b) to correct a cross-reference.
Amends section 469(c) to correct cross-references to the
Individuals with Disabilities Education Act.
PART F--NEED ANALYSIS
Section 471. Significantly simplifying the student aid application
process
Amends section 479(b) by striking clause (i) of
subparagraph (A) of paragraph (1) and inserting a new clause
(i) to redefine the requirements a dependent student must meet
to be eligible to file the simplified needs test. Further
amends section 479(b) by striking clause (i) of subparagraph
(B) of paragraph (1) to redefine the requirements an
independent student must meet to be eligible to file the
simplified needs test.
Amends section 479(c) by striking subparagraph (A) of
paragraph (1) and inserting a new subparagraph (A) to redefine
the characteristics a dependent student must meet in order to
be considered as having an expected family contribution of
zero. Further amends section 479(c) by striking subparagraph
(A) of paragraph (2) and inserting a new subparagraph (A) to
redefine the characteristics an independent student must meet
in order to be considered as having an expected family
contribution of zero.
Amends section 479 by inserting new subsections (d) and (e)
to define the term ``Means-Tested Federal Benefit Program'' and
require the Secretary to regularly evaluate the impact of the
eligibility guidelines in this section to ensure that the
simplified needs test continues to be targeted to the maximum
number of low- and moderate-income students.
Amends section 483(a) by striking paragraphs (1), (2), and
(5) and redesignating certain paragraphs. Further amends
section 483(a) by inserting new paragraphs (1) through (8).
Paragraph (1) requires the Secretary to cooperate with student
financial assistance organizations to produce, distribute, and
process free of charge common financial reporting forms to be
used for determining financial need and eligibility. The forms
should be in both paper and electronic format and should be
referred to as ``Free Application for Federal Student Aid'' or
``FAFSA.'' Paragraph (2) requires the Secretary to permit
applicants to complete such forms in the years prior to
enrollment in order to obtain a non-binding estimate of the
family contribution, and requires the Secretary to evaluate the
differences between the estimates and the actual determinations
two years after this paragraph is implemented and submit a
report to the authorizing committees of Congress on the results
of the evaluation. Paragraph (3) requires the Secretary to
develop a common paper form and an EZ-FAFSA for students with
an expected family contribution of zero. Outlines what is to be
included in the EZ-FAFSA. Requires the Secretary to encourage
applicants to use the electronic FAFSA forms that the Secretary
must maintain. Outlines how the Secretary must maintain the
electronic forms. Requires the Secretary to report annually to
Congress on the impact of the digital divide on students
completing applications for title IV aid and steps being taken
to eliminate the divide. Paragraph (4) requires the Secretary
to develop a common electronic form. Outlines what is to be
included on the form. Requires the Secretary to develop a
simplified electronic application for students with an expected
family contribution of zero. Outlines what is to be included on
the simplified form. Requires the Secretary to ensure that
electronic data collection protects applicants' privacy and
permits the Secretary to allow electronic forms to be submitted
without a signature if the signature is subsequently submitted
by the applicant. Paragraph (5) requires the Secretary to
develop a streamlined reapplication process. The Secretary is
also required to continue reducing the data elements on the
FAFSA and report on this to Congress. Paragraph (6) requires
the Secretary, in consultation with Sate agencies, to include
on the forms such State- specific data items as the Secretary
determines are necessary. Requires the Secretary to conduct an
annual review. Requires the Secretary to encourage States to
take steps to encourage the use of simplified application
forms. Requires the Secretary to annually publish in the
Federal Register a notice requiring State agencies to inform
the Secretary if the State is unable to utilize the simplified
application forms and the State-specific data that the State
agency requires for delivery of State need-based aid. Requires
State notification to the Secretary regarding the use of
application forms. Requires the Secretary, if the State does
not provide proper notice, to permit residents of the State to
complete simplified forms and not require them to complete any
data previously required by that State. Paragraph (7) prohibits
the Secretary from charging students or parents for the use of
the FAFSA in any of its forms. Requires the use of the FAFSA
for determining need for aid under most title IV programs.
Requires organizations that charge students and parents to
assist them with the filing of a FAFSA to provide several
notices regarding the nature of the FAFSA. Paragraph (8)
requires the Secretary to initiate the processing of forms
under this section as early as practicable prior to January 1
of the student's planned year of enrollment.
Amends section 482(a) to require proposed modifications,
updates, and notices to be published in the Federal Register by
March 1.
Amends section 483 by inserting a new subsection (e) to
require the Secretary to utilize savings accrued by moving more
applicants to the electronic form to improve access to the
electronic forms for students with an expected family
contribution of zero.
Amends section 480(d) by striking paragraph (2) and
inserting a new paragraph (2) with regards to include in the
definition of ``Independent Student'' any student who is an
orphan, in foster care, or a ward of the court, or was in
foster care or a ward of the court until the individual reached
the age of 18.
Section 472. Additional need analysis amendments
Amends section 475(g) to increase the dependent student
work protection allowance from $2,200 to $3,000 beginning July
1, 2006.
Amends section 478(h) by striking an incorrect cross-
reference and clarifying what expenses are allowable under the
employment expense allowance.
Amends section 479A(a) by inserting a new heading for the
subsection and a new paragraph (1). Further amends section
479A(a) by inserting a new paragraph (2). Further amends
section 479A(a) to include a student's status as a ward of the
court before turning 18, a homeless or unaccompanied youth
under section 725 of the McKinney-Vento Act, and an individual
who was adopted at or after age 13 as special circumstances
under the new paragraph (2). Further amends section 479A(a) by
inserting new paragraphs (3) and (4) as technical amendments.
Amends section 480(d) to treat active duty members of the
military as independent students for purposes of need analysis.
Amends section 480(e) by inserting a new paragraph (5) to
exclude distributions from a qualified tuition program
established under section 529 of the Internal Revenue Code of
1986 that is not included in gross income calculations under
section 529.
Amends section 480(f) with regards to the definition of
assets by including qualified tuition programs established
under section 529 of the Internal Revenue Code of 1986. Further
amends section 480(f) by inserting a new paragraph (2) to
clarify that qualified tuition programs under section 529 of
the Internal Revenue Code of 1986 will not be treated as an
asset for a dependent student under section 475. The new
paragraph (2) also clarifies how the value of a qualified
tuition program will be calculated for the purposes of
determining the assets of parents or independent students.
Amends section 480(j) by striking ``; Tuition Prepayment
Plans'' from the heading of the subsection, striking paragraph
(2), and inserting language in paragraph (3) to exclude
distributions from a qualified tuition program under section
529 of the Internal Revenue Code of 1986 that are not
includable in gross income calculations from counting as a
resource. Further amends section 480(j) by inserting a new
paragraph (3) that excludes assistance not received under this
title from both estimated financial assistance and cost of
attendance, if that assistance is designated by the State
providing that assistance to offset a specific component of the
cost of attendance. This new paragraph also states that if the
assistance is excluded from either estimated financial
assistance or cost of attendance, it must be excluded from
both.
Further amends section 480(f) by inserting a new
subparagraph (C) in paragraph (3) that exempts small businesses
with 100 or fewer full-time or full-time equivalent employees
that is owned or controlled by the family.
PART G--GENERAL PROVISIONS RELATING TO STUDENT FINANCIAL ASSISTANCE
Section 481. Definitions of academic year and eligible program
Amends section 481(a) by amending paragraph (2) to reduce
the 30-week requirement for clock hour schools to 26 weeks.
Further amends section 481(a) by granting the Secretary the
authority to reduce the 30 week minimum for credit hour schools
to 26 weeks as appropriate on a case-by-case basis.
Amends section 481(b) by inserting a new paragraph (3) to
include within the definition of eligible program an
instructional program that utilizes direct assessment of
student learning or recognizes the direct assessment of student
learning by others in lieu of credit hours or clock hours as
the measure of student learning. This eligibility determination
must be made by the Secretary for institutions being deemed
eligible for the first time. Requires the Secretary to provide
an annual report to Congress identifying the programs made
eligible under this paragraph.
Section 482. Distance education
Amends section 481(b) by inserting a new paragraph (4) to
provide a definition of distance education as an eligible
program for title IV purposes.
Amends section 484(l) by striking the one year or longer
program of study requirement for a telecommunication course to
not be considered a correspondence course; and, by striking the
requirement that less than 50 percent of an institution's
courses be telecommunications or correspondence courses in
order for telecommunications courses to not be considered
correspondence courses. Further amends section 484(l) by
excluding institutions described in the Carl D. Perkins
Vocational and Technical Education Act of 1998.
Section 483. Expanding information dissemination regarding eligibility
for Pell Grants
Amends section 483(a) by inserting a new paragraph (8) to
require the Secretary to make a special effort to notify
students and parents who qualify for free lunch, food stamps,
or other such programs, of their potential eligibility for a
maximum Pell grant.
Section 484. Student eligibility
Amends section 484(a) by inserting a new paragraph (6) that
requires students who have plead guilty or no contest to a
crime involving fraud in obtaining funds under this title, to
have fully repaid the funds to the Secretary or to the holder
of a loan before being considered eligible.
Amends section 484(r) by striking paragraph (1) and
inserting a new paragraph (1) to clarify that only those
students enrolled and receiving student aid under title IV at
the time of the conviction will lose student aid eligibility.
Amends section 484(j) to clarify that students from the
freely associated states will only be eligible for Pell Grants.
Amends section 484(q) to include a specific reference to
the Internal Revenue Code of 1986 to define what information
the Secretary will have access to.
Amends section 484(b) to include incarcerated parents among
those not eligible for Federal loans. Further amends section
484(b) by prohibiting a student who is subject to an
involuntary civil commitment upon completion of a period of
incarceration for a sexual offense (as determined by the
Secretary) from being eligible for a loan under this title.
Section 485. Institutional refunds
Amends section 484B(a) to clarify that LEAP funds are
excluded from the requirements of this section. Further amends
section 484B(a) to allow for multiple leaves of absence.
Further amends section 484B(a) to provide a cross-reference to
subsection (d) to determine how the percentage of the
enrollment period or payment period that has been completed
will be calculated. Further amends section 484B(a) to require
the institution to contact a student who is eligible for a late
disbursement or post-withdrawal disbursement and obtain
confirmation that the loan funds are still required by the
student, explain to the student his or her obligation to repay
the funds, and document in his or her file the result of such
contact and the final determination.
Amends section 484B(b) to provide an institution with 45
days from the date of the determination that a student has
withdrawn to return the loan funds. Further amends section
484B(b) to clarify the rule that protects 50 percent of a
student's grant funds. Further amends section 484B(b) by
stating that students do not have to return amounts of $50 or
less. Further amends section 485B(b) by inserting a new
subparagraph (D) in paragraph (2) to permit the Secretary to
waive the Pell Grant amounts that students are required to
return under this section if the withdrawals are by students
residing in, employed in, or attending an institution that is
located in an area in which the President has declared that a
major disaster exists and whose attendance was interrupted
because of the impact of the disaster on the student or the
institution; and, if the withdrawals end within the academic
year during which the declared disaster occurred or during the
next succeeding academic year.
Amends section 484B(d) by making technical amendments.
Further amends section 484B(d) by amending subparagraph B of
paragraph (2) to mean the clock hours scheduled to be completed
by the student in the period as of the last date of attendance,
not to exceed 150 percent of the hours completed by the student
in the period.
Section 486. Institutional and financial assistance information for
students
Amends section 485(a) to ensure that the information
required under this section is made publicly available through
appropriate outlets and included in reports required by the
institution's accrediting agency. Further amends section 485(a)
by including information about the institution's educational
mission and goals in the information an institution provides to
students. Further amends section 485(a) by striking
subparagraph (L) in paragraph (1) and inserting a new
subparagraph (L) to expand the information institutions are
required to provide students to include student outcomes for
full time undergraduate students. Further amends section 485(a)
to require institutions to include the process for registering
any complaints with the appropriate accrediting agencies or
associations in the information disclosed to students. Further
amends section 485(a) by making a technical amendment to
subparagraph (M) of paragraph (1). Further amends section
485(a) by inserting new subparagraphs (P) and (Q) in paragraph
(1) to expand the information institutions must provide
students to include the penalties found in the drug provision
in section 484(r) and the institution's policies for accepting
transfer of credit. The information regarding transfer of
credit must include a statement that such decisions will not be
based solely on the accrediting agency of the sending
institution as long as the accrediting agency is recognized by
the Secretary. States that nothing in the transfer of credit
amendments authorizes an officer or employee of the Department
to exercise any direction, supervision, or control over
curriculum, program of instruction, administration, or
personnel of any institution or accrediting agency. Further
amends section 485(a) by striking paragraph (6) and inserting a
new paragraph (6) to provide institutions an opportunity to
provide supplemental data to enrolled and prospective students
on the completion or graduation rate for students who leave
school to serve in the armed services, on official church
missions, or with a recognized foreign aid service of the
Federal Government; and, inserting a new paragraph (7) to allow
institutions now participating in the National Survey on
Student Engagement (NSSE), Community College Survey of Student
Engagement (CCSSE), or other similar survey to publicly report
that data.
Amends section 485(b) by inserting a new paragraph (3) to
require institutions to include in their exit counseling
material the same consumer protection language required by
lenders with regard to consolidation loans.
Amends section 485(f) to clarify that foreign institutions
are not required to report data dealing with campus crime.
Further amends section 485(a) by inserting a new
subparagraph (P) in paragraph (1) to include the fire safety
report prepared by the institution.
Amends section 485 by inserting a new subsection (h) to
require each institution, beginning in the first academic year
that begins after the date of enactment of the Campus Fire
Safety Right-to-Know Act of 2005, to prepare, publish, and
distribute through appropriate publications or mailings to all
current students and employees, and any applicant for
enrollment or employment, an annual fire safety report.
Outlines what is required to be included in the report. Also
requires each institution participating in a title IV program
to request each recognized fraternity and sorority, and any
other student group that is recognized by the institution and
that owns or controls housing facilities, to collect and report
to the institution the information described in this
subsection. Also requires each institution participating in any
title IV program to make, keep, and maintain a log that records
all on-campus fires, including the nature, date, time, and
general location of each fire and all false fire alarms. These
entries, except where disclosure is prohibited by law, must be
open to public inspection. Each institution must also make
annual reports to the campus community on such fires and false
fire alarms. Each institution participating in title IV
programs must also submit to the Secretary a copy of the
statistics required to be available under this subsection.
Requires the Secretary to review the statistics, make copies of
the statistics available to the public, and identify and
disseminate exemplary fire safety practices. Defines the term
``campus.''
Section 487. College access initiative
Amends part G by inserting a new section 485D to create a
college access initiative. This new section will require the
Secretary to direct each guaranty agency to gather information
on programs and student aid available in the State in which the
agency is designated. The information must be made available to
the public free of charge and be reported to the Secretary to
establish a directory of programs through web sites,
publications, and other means determined by the Secretary. The
new section requires each guaranty agency to establish a plan
to gather and disseminate the information required. The new
section outlines the information required from the guarantors
and the activities the guarantors must undertake. The new
section permits guarantors to utilize funds from operating
funds pursuant to section 422B and, if any funds remain, from
earnings on the restricted accounts under section 422(h)(4).
The new section requires the Secretary and guaranty agencies to
publicize the availability of the information within 270 days
of enactment of this Act, particularly to traditionally
underrepresented populations.
Section 488. Distance Education Demonstration Program
Amends section 486(b) to make conforming and technical
changes.
Amends section 486(d) by allowing the Secretary to select
up to 100 institutions in any year after the program's first
year rather than only 35 institutions in the third year, and to
allow up to five degree-granting, accredited correspondence
schools to participate.
Section 489. College Affordability Demonstration Program
Amends part G by inserting a new section 486A. The new
section provides for a College Affordability Demonstration
Program to provide innovation in the delivery of higher
education and student financial aid in a manner resulting in
reduced costs for students and institutions and more effective
delivery of education and financial aid. The new section
authorizes the Secretary to select up to 100 institutions, or
systems or consortia of institutions, to participate and
enables the Secretary to waive requirements under this Act for
participating institutions as the Secretary feels necessary to
meet the purpose of this section. Limits this waiver authority
by prohibiting the Secretary from waiving maximum award amounts
for an academic year or loan period and requires the Secretary
to determine that the waiver can reasonably be expected to
result in reduced costs to students or institutions without an
increase in Federal program costs. The new section defines what
institutions are eligible, outlines how those institutions
should apply, and outlines the criteria the Secretary should
use to select participants. The new section requires the
Secretary to report to the public and the authorizing
committees of Congress the list of participating institutions
and a list of the statutory or regulatory requirements being
waived for each institution. The new section requires the
Secretary to evaluate the program every two years and review
the existing impediments to the implementation of innovations
that result in cost savings and in expanding access to
education. The new section requires the Secretary to report to
the authorizing committees of Congress every two years on the
progress of the demonstration program. The new section requires
the Secretary to provide oversight of the participating
institutions. The new section sets the termination date for the
program as October 1, 2011.
Section 490. Program participation agreements
Amends section 487(a) by extending the prohibition on
employing individuals responsible for administering funds under
this title who have been convicted of, or pled ``no contest''
to, crimes involving funds under this title to include other
Federal, State or local government funds. Further amends
section 487(a) with a technical amendment to clarify that an
institution must comply with the ``return of title IV funds''
policy in section 484B. Further amends section 487(a) by
inserting a new subparagraph (D) in paragraph (23) to clarify
that an institution is permitted to provide voter registration
material electronically via the form itself or with information
and a link to the forms accepted in the institution's State.
Further amends section 487(a) by inserting a new paragraph (24)
that requires the institution to receive at least 10 percent of
its revenues from sources other than those provided under this
title.
Amends section 487 by inserting a new subsection (f) to
implement the non-title IV revenue requirement. Outlines how
the 10 percent established in section 487(a)(24) must be
calculated. States that an institution that fails to meet the
requirement in section 487(a)(24) for three successive years
will become ineligible to participate in the title IV programs.
Also outlines sanctions the Secretary could impose on an
institution that fails to meet the requirement in any given
year. Requires the Secretary to identify on the College
Opportunities On-Line website any institution that fails to
meet the requirements of section 487(a)(24) in any year.
Amends section 487(c) to permit the Secretary to modify the
requirements for foreign schools, and to waive requirements for
foreign institutions with loan volumes under $500,000.
Further amends section 487(a) by inserting a new paragraph
(25) to require institutions, within one year of the date of
enactment of this Act, to disclose to an alleged victim of any
crime of violence or nonforcible sex offense, the final results
of any disciplinary proceeding. If the victim is deceased, that
information is required to be disclosed to the victim's next of
kin.
Section 491. Additional technical and conforming amendments
Amends section 483(d) to correct a cross-reference to the
Individuals with Disabilities Education Act.
Amends section 484(a) to make a technical correction
Amends section 484(b) to correct a cross-reference to the
section of this title which authorizes unsubsidized Stafford
loans for middle-income borrowers. Further amends section
484(b) by making technical amendments to strike an unnecessary
reference to section 428H.
Amends section 484(l) to correct a cross-reference to the
Carl D. Perkins Vocational and Education Act of 1998.
Amends section 484A(b) by extending the provisions of
paragraph (2) to loans made under parts D and E of this title.
Amends section 485B(a) by making several technical
amendments to correct the designations of the paragraphs within
this subsection and to correct a cross-reference to a section
of the United States Code.
Amends section 487A(b) by making technical amendments.
Further amends section 487A(b) by authorizing the Secretary to
continue the voluntary participation of institutions
participating as of July 1, 2005 and the participation of any
such institution unless the Secretary determines that such
institution's participation has not been successful in carrying
out the purposes of this section.
Amends section 491(c) by inserting a new paragraph (3) to
clarify that an appointment to the Advisory Committee on
Student Financial Assistance is effective upon appearing in the
Congressional Record.
Amends section 491(h) with regards to payments to members
of the Advisory Committee on Student Financial Assistance to
conform to requirements regarding the pay of Federal employees.
Amends section 491(k) by extending the authorization of the
Advisory Committee to 2011.
Amends title IV, part G by repealing section 493A with
regards to year 2000 requirements at the department.
Amends section 498(c) by making a technical amendment.
Amends section 498(d) by making a technical amendment.
PART H--PROGRAM INTEGRITY
Section 495. Accreditation
Amends section 496(a) by striking subparagraph (B) in
paragraph (3) to allow states to be able to apply to the
Secretary to become a recognized accreditor. Further amends
section 496(a) by inserting a new subparagraph heading (A) at
the beginning of paragraph (4) of the subsection, by inserting
language in the new subparagraph (A) of paragraph (4) to
require accreditors to consider the stated missions of
institutions of higher education, including but not limited to
such missions as inculcation of religious values, and inserting
a new subparagraph (B) of paragraph (4) to clarify that an
accreditor who seeks to have distance education in the scope of
the agency's accrediting process must demonstrate that the
agency's standards effectively address the quality of an
institution's distance education programs in the areas
identified in paragraph (5) of this subsection; and, the agency
requires that an institution that offers distance education
programs to have processes by which it establishes that the
student who registers in a distance education course or program
is the same student who participates, completes the work, and
receives the credit. Further amends section 496(a) by amending
subparagraph (A) of paragraph (5) to require that accrediting
agencies assess institutions' success with respect to student
achievement in several areas. Further amends section 496(a) to
include fiscal and administrative capacity and, under certain
circumstances, board governance to the list of institutional
characteristics the accreditor is required to evaluate. Further
amends section 496(a) by striking paragraph (6) and inserting a
new paragraph (6) that requires accreditors to establish and
apply review procedures throughout the accrediting process and
outlines what the procedures must provide for. Further amends
section 496(a) by striking paragraph (8) and inserting a new
paragraph (8) to require accreditors to make public and submit
to the Secretary and the State licensing or authorizing agency
a summary of agency or association actions involving any
adverse action taken with respect to the institution.
Amends section 496(c) by amending paragraph (1) to ensure
that members of accrediting teams are well-trained and
knowledgeable about distance education. Further amends section
496(c) by inserting new paragraphs (7), (8), (9), (10), and
(11), and (12) to require accreditors to include the
information required in subparagraph (H) of section 485(a)(1)
in the accreditors' reviews; to confirm that the institution
has transfer policies that are publicly disclosed and do not
deny transfer of credit based solely on the accreditation of
the sending institution as long as the accreditor is recognized
by the Secretary; to develop a summary available to the public
of any adverse actions taken by the agency; to monitor the
enrollment growth of distance education to ensure that an
institution experiencing significant growth has the capacity to
serve its students effectively; to disclose publicly a list of
the individuals who comprised the evaluation teams during the
prior calendar year and the title and institutional affiliation
of each individual, a description of the agency's process for
selecting, preparing, and evaluating such individuals, and any
statements related to the accreditation responsibilities of
such individuals; and, to review the record of student
complaints resulting from the student information process
described in section 485(a)(1)(J).
Amends section 496(l) by inserting a new paragraph (3) to
require the Secretary to provide an annual report to Congress
on accrediting agencies or associations whose status has been
limited, suspended or terminated.
Amends section 498A(b) by inserting new paragraphs (6),
(7), (8), and (9) to expand the requirements the Secretary must
meet in fulfilling his or her responsibilities to include
providing the institution an adequate opportunity to review and
respond to any report or audit finding before a final
determination is reached; reviewing and taking into
consideration the institution's response in any final
determination, and include in the final determination a written
statement addressing the institution's response and stating the
basis for the final determination and a copy of the
institution's statement in response; maintaining and preserving
the confidentiality of any report or audit until the
requirements listed above are met; and, requiring that the
authority to approve or issue any report or audit finding
involving amounts that may exceed $500,000 is not delegated
beyond the Chief Operating Officer of Federal Student Aid.
Section 496. Report to Congress on prevention of fraud and abuse in
student financial aid programs
Amends title IV by inserting a new section 499. The new
section requires the Secretary to commission an independent,
non-partisan, comprehensive study on the prevention of fraud
and abuse in title IV student financial aid programs and report
the results of such study to Congress. Outlines the areas to be
covered in the study. Establishes a deadline of December 31,
2007 for the Secretary to transmit the report to Congress. The
report must include clear and specific recommendations for
legislative and regulatory actions that are likely to
significantly reduce the fraud and abuse in title IV programs.
Title V--Developing Institutions
Section 501. Definitional changes
Amends section 502(a) by clarifying that a Hispanic-Serving
Institution must have an enrollment of undergraduate full-time
equivalent students that is at least 25 percent Hispanic at the
end of the award year immediately preceding the date of
application. Further amends section 502(a) by striking the
requirement that a Hispanic-Serving Institution provide
assurances that at least 50 percent of the institution's
Hispanic students are low-income.
Section 502. Assurance of enrollment of needy students
Amends section 511(c) by striking paragraph (2) with
regards to the 5-year improvement plan. Further amends section
511(c) to require the institution to provide in its application
for a grant assurances that the institution has an enrollment
of needy students as required in section 502(b).
Section 503. Additional amendments
Amends section 502(a) to insert the requirement that the
institution offer not less than a two year program that is
acceptable for full credit toward a bachelor's degree.
Amends section 503(b) to insert within the uses of funds
education or counseling services designed to improve financial
and economic literacy of students and parents. Further amends
section 503(b) by inserting within the allowable uses of funds
the construction, maintenance, renovation, and improvement of
instructional facilities, the purchase or rental of
telecommunications technology equipment or services, and the
acquisition of real property adjacent to the campus. Further
amends section 503(b) to insert within the allowable uses of
funds the establishment of community outreach programs and
partnerships between institutions and local elementary or
secondary schools.
Amends section 504(a) by striking the 2-year wait out
period.
Makes a technical amendment to section 514(c).
Section 504. Postbaccalaureate opportunities for Hispanic Americans
Amends title V by inserting a new part B, which authorizes
the ``Promoting Postbaccalaureate Opportunities for Hispanic
Americans'' program. Section 511 outlines the purposes of the
program. Section 512 authorizes the Secretary to award
competitive grants to Hispanic-serving institutions determined
by the Secretary to be making substantive contributions to
graduate educational opportunities for Hispanic students.
Defines the term ``Eligible Institution.'' Section 513 lists
the activities grantees are authorized to undertake. Section
514 outlines how applications are to be submitted, establishes
a duration of five years for grants awarded, limits to one the
number of grants any single institution can receive under this
part in one fiscal year.
Section 505. Authorization of appropriations
Amends section 528(a) by establishing the authorization for
appropriations for this title.
Title VI--Title VI Amendments
Section 601. International and foreign language studies
Amends section 601 with regard to the findings and purposes
of this Act.
Amends section 602(a) by authorizing the Secretary to award
grants to support instructors of the less commonly taught
languages; authorizing the dissemination of materials developed
by centers and programs to local educational agencies, public
and private elementary and secondary schools, and institutions
of higher education; authorizing projects that support in
students an understanding of science and technology in
coordination with foreign language proficiency; and encouraging
partnerships between two- and four-year institutions of higher
education, colleges of education, and Federal and state
departments and agencies.
Amends section 603(c) regarding Language Resource Centers.
Amends section 604 by authorizing additional uses of funds
for sending undergraduate students on educational programs
abroad to enhance their foreign language proficiency and
cultural knowledge; requiring grantees to submit program
evaluations; and removing the 10 percent funding cap for this
section.
Amends section 605(a) by modifying authorized activities to
encourage the Department of Education to engage in data
collection, analysis, and dissemination of international
education and foreign language needs and outputs.
Amends section 606 by permitting museums to apply for
grants under this section; by authorizing funds to be used for
the acquisition of printed material from abroad for the
purposes of this section, the development of standards for
electronic access, the means for access of international data,
the establishment of linkages with institutions abroad that
facilitate access to foreign information, and to provide the
Department of Education with the flexibility to establish new
activities that are useful for carrying out the purposes of
this section, with the idea that future technological changes
may enhance the activities which could be conducted under this
section; and allows the Secretary of Education to waive or
reduce the non-Federal share for institutions that are eligible
to receive assistance under part A or B of title III or under
title V and have demonstrated a need for a waiver in the grant
application.
Amends section 607(b) by requiring the Secretary to take
into account the degree to which grant applicants address
national interests and generate and disseminate information
from diverse perspectives with regard to international issues.
Amends section 608(a) with regard to equitable
distribution.
Amends section 610 with regard to the authorization of
appropriations.
Section 602. Business and international education programs
Amends section 612 by clarifying that minority serving
institutions are eligible for assistance under this section;
and by allowing the Secretary to waive or reduce the non-
Federal share for institutions that receive assistance under
part A or B of title III or under title V and have demonstrated
a need for a waiver in the grant application.
Amends section 613 by allowing the Secretary to waive or
reduce the non-Federal share for institutions that receive
assistance under part A or B of title III or under title V and
have demonstrated a need for a waiver in the grant application.
Amends section 614 with regard to the authorization of
appropriations.
Section 603. Institution for International Public Policy
Amends section 621 by clarifying that the Institute for
International Public Policy shall include all underrepresented
minorities in its program in order to enhance participation in
international service; by modifying the heading of section 621
to read ``Program for Foreign Service Professionals''; and, by
clarifying that eligible recipients include all minority
serving institutions and institutions that serve substantial
numbers of underrepresented students.
Amends section 622 by encouraging collaboration among
colleges and universities receiving funds under this title.
Amends section 623(a) to include Alaska Native-serving,
Native Hawaiian-serving, and Hispanic-serving institutions in
the study abroad program.
Amends section 624 by modifying the heading of section 624
to read ``Advanced Degree in International Relations;'' and by
authorizing the Institute for International Public Policy's
consortia of institutions to provide advanced degree programs
in a variety of academic areas.
Amends section 625 to include Alaska Native-serving, Native
Hawaiian-serving, and Hispanic-serving institutions in the
internships program; by repealing the Interagency Committee on
Minority Careers in International Affairs; and by stating that
students who participate in Internship programs under
subsections (a) and (b) will be called ``Ralph J. Bunche
Fellows.''
Amends section 626 by requiring the Secretary to submit a
biennial report.
Amends section 628 with regard to the authorization of
appropriations for this part.
Section 604. Evaluation, outreach, and dissemination
Amends Part D of title VI to include section 632. Section
632 authorizes the Secretary to use not more than 1 percent of
the funds made available for this title for program evaluation,
national outreach, and information dissemination activities.
Section 605. Advisory Board
Amends Part D of title VI to include section 633. Section
633 establishes the International Advisory Board and sets forth
its mission, authorities, and purpose; clarifies that the Board
will be independent of the Secretary and the Department of
Education; contains provisions regarding the Board's
organizational structure and membership; and sets forth the
functions and operations of the Board.
Section 606. Recruiter access to students and student recruiting
information; safety
Amends Part D of title VI to include sections 634 and 635.
Section 634 sets forth provisions regarding recruiter access to
students for the purpose of recruiting for graduate
opportunities or prospective employment.
Section 635 contains provisions concerning student safety.
Section 607. National study of foreign language heritage communities
Amends Part D of title VI to include section 636. Section
636 contains provisions requiring the Secretary, in
consultation with the International Advisory Board, to conduct
a study of foreign language heritage communities, particularly
those communities that include speakers of languages that are
critical to the national security of the United States; and
requiring the Secretary to submit a report not later than a
year after the date of enactment.
Title VII--Title VII Amendments
Section 701. Javits Fellowship program
Amends section 701 (a) by adding language after the second
sentence clarifying that a master's degree in fine arts shall
be considered a terminal degree.
Amends section 701(c) by allowing institutions of higher
education to grant fellowship recipients an interruption of
study due to active duty military service or a personal or
family member illness.
Amends section 702(a)(1) with regard to the allocation of
fellowships within the Jacob K. Javits program and by requiring
the Secretary to ensure that one member of the fellowship board
will be from a minority serving institution.
Amends section 703 with regard to stipends and by providing
for institutional allowances.
Amends section 705 with regard to the authorization of
appropriations.
Section 702. Graduate Assistance in Areas of National Need
Amends section 712(b) pertaining to the designation of
areas of national need.
Amends section 712 by inserting subsection (c), which
requires the Secretary to establish a priority for grants to
prepare faculty to train highly qualified elementary and
secondary school teachers of math, science and special
education, and teachers who will provide instruction for
limited English proficient individuals.
Amends section 713(b) to require grantees that are
departments, programs, or units involved in teacher preparation
to provide assurances that the grantee collaborates with other
departments within the institution to ensure a successful
combination of training in both teaching and content.
Amends section 714(b) with regard to stipends.
Amends section 714(c) by making technical amendments.
Amends section 715(a)(1) concerning additional assistance.
Specifies that the Consumer Price Index to be used is the
Consumer Price Index for All Urban Consumers.
Amends section 716 with regard to the authorization of
appropriations.
Section 703. Thurgood Marshall Legal Educational Opportunity program
Amends section 721(c) pertaining to contract and grant
purposes for the Thurgood Marshall Legal Educational
Opportunity program.
Amends section 721(d)(1)(D) with regard to services
provided.
Amends section 721(h) with regard to the authorization of
appropriations.
Amends section 731 by repealing subsection (e).
Section 704. Fund for the improvement of postsecondary education
Amends section 741(a) by authorizing the Secretary to
consider applications for grants that recognize the needs of
non-traditional student populations; focus on technology to
deliver distance education; introduce reforms that encourage
students to enter and reenter postsecondary institutions and
pursue postsecondary study tied to individual needs; provide
support for services that improve high school graduation and
college attendance and completion rates for disadvantaged
students, and for programs that reduce postsecondary
remediation rates, and improve degree attainment rates, for
low-income students and former high school dropouts; and
assess, in partnership with a public or private nonprofit
institution or agency, the performance of teacher preparation
programs within institutions of higher education in a State
using an assessment which provides comparisons across such
schools within the State based upon indicators including
teacher candidate knowledge in subject areas in which such
candidate has been prepared to teach.
Amends section 741 by prohibiting funds made available
under this part from being used to provide financial assistance
to students who do not meet the requirements of section
484(a)(5).
Amends section 744(c) by expanding the area of national
need related to articulation agreements to include dual
enrollment programs between secondary schools and institutions
of higher education. Further amends section 744(c) to clarify
that special projects may include international partnerships
with postsecondary institutions abroad, the establishment of
academic programs that teach traditional American history, and
institutional efforts to address pressing community needs,
including support for the development of coordinated curriculum
and internship opportunities for students in disadvantaged
communities.
Amends section 745 with regard to the authorization of
appropriations.
Section 705. Urban Community Service
Amends title VII by repealing part C, Urban Community
Service program.
Section 706. Demonstration projects to ensure students with
disabilities receive a quality higher education
Amends section 762(a) by allowing grants to address the
needs of all students with disabilities.
Amends section 762(b)(2) by allowing grantees to assist
students with disabilities with the transition between
secondary and postsecondary education and to use funds to
develop innovative, effective and efficient distance education
programs that would enhance access of students with
disabilities to postsecondary education programs.
Amends section 763 by requiring the application to include
a description of how the institution will work to replicate the
best practices of institutions of higher education with
demonstrated success in serving students with disabilities.
Amends section 765 with regard to the authorization of
appropriations.
Title VIII--Clerical Amendments
Section 801. Clerical amendments
Amends section 103 by inserting a new paragraph (1) to
define the term ``authorizing committees'' as the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Education and the Workforce of the House of
Representatives.
Amends multiple sections with technical amendments that
strike the names of the Senate and House committees and insert
references to the authorizing committees.
Makes several technical amendments to multiple sections to
correct headings and cross-references.
Amends section 435(a) by striking subparagraph (B) of
paragraph (3) with regards to Federal Supplemental Loans for
Students.
States that nothing in these amendments should be construed
to alter the terms, conditions, and benefits applicable to
Federal supplemental loans for students under section 428A as
in effect prior to July 1, 1994.
Title IX--Amendments to Other Education Laws
PART A--EDUCATION OF THE DEAF ACT OF 1986
Section 901. Laurent Clerc National Deaf Education Center
Amends section 104(a) of the Education of the Deaf Act of
1986 by referencing the Laurent Clerc National Deaf Education
Center.
Amends section 104(b) of the Education of the Deaf Act of
1986 by referencing the Laurent Clerc National Deaf Education
Center. Further amends section 104(b) by inserting a new
paragraph (5) that requires Gallaudet University, in
consultation with the Secretary, to implement standards and
assessments for the programs operated by the Laurent Clerc
National Deaf Education Center that are consistent with the
Elementary and Secondary Education Act of 1965. The standards
and assessments must be in place by the beginning of the 2007-
2008 academic year. The results of the assessments must be
publicly reported.
Section 902. Authority
Amends section 111 of the Education of the Deaf Act of 1986
by naming the Rochester Institute of Technology as the
institution responsible for the National Technological
Institute for the Deaf.
Section 903. Agreement for the National Technical Institute for the
Deaf
Amends section 112(a) of the Education of the Deaf Act of
1986 by naming the Rochester Institute of Technology as the
institution responsible for the National Technological
Institute for the Deaf.
Amends section 112(b) of the Education of the Deaf Act of
1986 by specifying the governing body as the Rochester
Institute of Technology's Board of Trustees. Further amends
section 112(b) by specifying that the Board of Trustees for the
Rochester Institute of Technology is responsible for accounting
for the indirect costs paid by the National Technological
Institute for the Deaf to the Rochester Institute of
Technology. Further amends section 112(b) by correcting the
reference to the House and Senate authorizing committees.
Amends section 112(c) of the Education of the Deaf Act of
1986 by referring specifically to the Rochester Institute of
Technology.
Section 904. Definitions
Amends section 201 of the Education of the Deaf Act of 1986
by striking paragraph (3) with regards to the definition of
institution of higher education. Further amends section 201 by
inserting a new paragraph (7) that defines ``RIT'' as the
Rochester Institute of Technology.
Section 905. Audit
Amends section 203(a) of the Education of the Deaf Act of
1986 by correcting the reference to the Government
Accountability Office.
Amends section 203(b) of the Education of the Deaf Act of
1986 by requiring the National Technological Institute for the
Deaf to have an annual independent financial and compliance
audit made of the Rochester Institute of Technology's programs
and activities, including the Institute's programs and
activities. Further amends section 203(b) by correcting section
references. Further amends section 203(b) by requiring a copy
of each audit be delivered to the authorizing committees of the
House and Senate. Further amends section 203(b) by specifically
referring to the Rochester Institute of Technology.
Amends section 203(c) of the Education of the Deaf Act of
1986 by correcting the reference to the House and Senate
authorizing committees.
Section 906. Reports
Amends section 204 of the Education of the Deaf Act of 1986
by specifically referring to the Rochester Institute of
Technology. Further amends section 204 by correcting the
reference to the House and Senate authorizing committees.
Further amends section 204 by requiring Gallaudet University
and the Institute to report on the disposition of enrolled
students within one year of graduation or completion.
Section 907. Liaison for educational programs
Amends section 206(a) of the Education of the Deaf Act of
1986 to strike the reference to a 30 day deadline.
Section 908. Federal endowment programs for Gallaudet University and
the National Technical Institute for the Deaf
Amends section 207(a) of the Education of the Deaf Act of
1986 by specifically referring to the Rochester Institute of
Technology.
Section 909. Oversight and effect of agreements
Amends section 208(a) of the Education of the Deaf Act of
1986 by specifically referring to the Rochester Institute of
Technology. Further amends section 208(a) by correcting the
reference to the authorizing committees.
Section 910. Authorization of appropriations
Amends section 205(c) of the Education of the Deaf Act of
1986 to extend the authorization through 2011.
Amends section 207(h) of the Education of the Deaf Act of
1986 to extend the authorizations through 2011.
Amends section 212 of the Education of the Deaf Act of 1986
to extend the authorizations through 2011.
Inserts a new section (1) that establishes the short title
of this act as the ``Gallaudet University and National
Technical Institute for the Deaf Act.''
PART B--ADDITIONAL EDUCATION LAWS
Section 921. Cancellation of student loan indebtedness for survivors of
Victims of the September 11, 2001, attacks
Defines the terms ``Eligible Public Servant,'' ``Eligible
Victim,'' ``Eligible Parent,'' ``Secretary,'' and ``Federal
Student Loan.''
Requires the Secretary to provide for the discharge or
cancellation of the Federal student loan indebtedness of the
spouse of an eligible public servant, the portion of a Federal
consolidation loan incurred on behalf of the eligible victim
that was used jointly by the eligible victim and his or her
spouse, the portion of the consolidation loan indebtedness of
an eligible parent that was incurred on behalf of an eligible
victim, and the PLUS loan indebtedness of an eligible parent
that was incurred on behalf of an eligible victim.
Outlines the methods to be used to cancel or discharge
eligible loans.
Requires the Secretary to establish procedures for the
filing of applications and to publicize the availability of
loan discharge or cancellation.
States that funds available for the purposes of making
payments to lenders in accordance with section 437(a) shall be
available for making payments to lenders as required by this
section.
States that the provisions of this section shall be applied
to loans on which amounts were owed on September 11, 2001.
Section 922. Amendment to Higher Education Amendments of 1998
Repeals several expired studies and programs from the
Higher Education Amendments of 1998.
Amends section 804(b) of the Higher Education Amendments of
1998 to provide a deadline of September 30, 2007 for the
Secretary to report the conclusions on the study on transfer of
credits. Further amends section 804(b) to include the policies
of institutions of higher education in the report.
Amends section 806(a) of the Higher Education Amendments of
1998 to include all institutions of higher education in the
report.
Amends section 806(c) of the Higher Education Amendments of
1998 by setting the deadline as September 30, 2007 for the
submission of the report.
Amends section 826(g) of the Higher Education Amendments of
1998 by extending the authorization through 2011.
Amends section 826 of the Higher Education Amendments of
1998 by correcting the paragraph designations.
Amends section 841(c) of the Higher Education Amendments of
1998 to establish the authorization level as $3 million in 2006
and such sums through 2011.
Amends section 422(d) of the Higher Education Amendments of
1998 to establish an effective date for the amendments of July
1, 2006.
Section 923. Tribally Controlled College or University Assistance Act
of 1978
Amends section 110(a) of the Tribally Controlled Community
College or University
Assistance Act of 1978 to extend the authorization through
2011.
Amends section 306(a) of the Tribally Controlled Community
College or University
Assistance Act of 1978 to extend the authorization through
2011.
Amends section 403 of the Tribal Economic Development and
Technology Related Education Assistance Act of 1990 to extend
the authorization through 2011.
Amends section 2(a) of the Tribally Controlled Community
College or University Assistance Act of 1978 to clarify the
definition of ``national Indian organization.''
Amends section 2(b) of the Tribally Controlled Community
College or University Assistance Act of 1978 by striking
paragraph (5) and inserting a new paragraph (5) to clarify how
eligible credits earned in a continuing education program
should be counted in determining the Indian student count.
Amends section 103 of the Tribally Controlled Community
College or University Assistance Act of 1978 by inserting a new
paragraph (4) to require a tribally controlled college or
university to be accredited by a nationally recognized
accrediting agency recognized by the Secretary in order to be
eligible for funds.
Section 924. Navajo Community College Act
Amends section 5(a) of the Navajo Community College Act to
extend the authorization through 2011.
Section 925. Education Amendments of 1992
Amends section 1543(d) of the Education Amendments of 1992
to extend the authorization through 2011.
Section 926. Study of student learning outcomes and public
accountability
Requires the Secretary to provide for the conduct of a
study of the best practices of States in assessing
undergraduate postsecondary student learning, particularly as
such practices relate to public accountability systems.
Requires the study to be conducted by a national, non-partisan,
or bi-partisan association or organization with knowledge in
State practices and access to necessary State officials. The
association or organization must also represent States or State
officials. Outlines the topics to be covered by the study.
Requires the agency or association conducting the study to
establish and consult with a national committee that will meet
at least twice a year to review the research, identify best
practice models, and review recommendations. Outlines the
membership of the national committee. Requires the association
to consult regularly with the authorizing committees in the
House and Senate and submit a report on the study to those
committees no later than two years after the date of enactment
of this Act.
Section 927. Study of minority graduation rates
Requires the Secretary to commission a national study on
the decreasing number of underrepresented minority males,
particularly African American males, entering and graduating
from colleges and universities and make recommendations to
Congress on new approaches to increase minority male graduation
rates and the number of minority males going into careers where
the population is underrepresented. Requires the report to be
submitted within one year of the enactment of this Act.
Section 928. Study of education related indebtedness of medical school
graduates
Requires the Secretary to conduct a study to evaluate the
higher education-related indebtedness of medical school
graduates in the United States at the time of graduation. Also
requires the Secretary to submit a report on the study to the
respective authorizing committees of Congress within one year
of the date of enactment of the Act and make the report widely
available to the public.
Section 929. Study of adult learners
Requires the Secretary to conduct a study of the developing
trends in older adult learners attending college and how
institutions of higher education are addressing the needs of
this specific population in terms of outreach, accessibility,
financing, and student support services, including online
education. Requires the Secretary to submit a report on the
study to the Committee on Education and the Workforce that
includes recommendations on measures the Federal government can
take to address the needs in regards to education and job
training for the aging population and the changing demographics
of our country.
Section 930. Increase in college textbook prices
States findings of the Committee on Education and the
Workforce related to the rising costs of textbooks. States the
sense of the Committee that in order to make a higher education
more accessible for all students, the following should occur to
make college textbooks more affordable to students: textbook
publishers should provide students with the option of buying
materials ``a la carte'' or ``unbundled''; textbook publishers
should work with faculty to understand the cost to students of
purchasing the recommended textbook; college bookstores should
work with faculty to review timelines and processes for
ordering and stocking selected textbooks, and disclose textbook
costs to faculty and students; and, colleges and universities
should be encouraged to implement numerous options to address
textbook affordability.
Explanation of Amendments
The provisions of the substitute are explained in this
report.
Applicaiton of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. The bill amends the Higher Education Act of 1965 by
providing increase access for students to a higher education.
The bill reauthorizes the teacher training programs, student
aid programs, programs that assist minority serving
institutions, graduate study programs, international and
foreign language programs, and various provisions that support
and enhance student access and institutional accountability.
The bill includes comprehensive reforms that prioritize student
access and strengthen accountability to empower students and
parents, the consumers of higher education. The bill does not
prevent legislative branch employees from receiving services
provided under this legislation.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. The bill reauthorizes spending programs under the
Higher Education Act. As such, the bill does not contain any
unfunded mandates.
Rollcall Votes
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the body of this report.
Budget Authority and Congressional Budget Office Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the House of Representatives and section 308(a) of the
Congressional Budget Act of 1974 and with respect to
requirements of 3(c)(3) of rule XIII of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following cost estimate
for H.R. 609 from the Director of the Congressional Budget
Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 16, 2005.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for the direct spending
effects of H.R. 609, the College Access and Opportunities Act
of 2005. CBO has not completed its review of the provisions of
the bill that would affect spending subject to appropriation.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Deborah
Kalcevic.
Sincerely,
Douglas Holtz-Eakin,
Director.
Enclosure.
H.R. 609--College Access and Opportunities Act of 2005
Summary: H.R. 609 would make numerous changes to federal
higher education programs, including the student and parent
loan programs. CBO projects that, under the current-law
baseline, the loan programs would guarantee or disburse loans
totaling about $360 billion over the 2006-2010 period--costing
about $37 billion in total spending (mostly measured as subsidy
costs). CBO estimates that enacting H.R. 609 would reduce these
costs by $6.3 billion in 2006, $8.7 billion over the 2006-2010
period, and $4.5 billion over the 2006-2015 period. H.R. 609
also would affect spending subject to appropriation, but CBO
has not completed an analysis of the bill's potential impact on
discretionary spending.
Provisions of H.R. 609 with significant budget effects
include:
Change the formulas used to calculate borrower
interest rates and lender yields;
Eliminate the separate formula for lender
yields for loans supported with certain tax-exempt
funding;
Change the insurance provided to lenders;
Change the funding for mandatory
administrative costs;
Reduce borrower origination fees and mandate
collection of a 1.0 percent insurance premium;
Increase loan limits for first-year, second-
year, and graduate students; and
Delay the recall of the federal share of the
Perkins Loan Revolving Fund.
Pursuant to section 407 of H. Con. Res. 95 (the Concurrent
Resolution on the Budget, Fiscal Year 2006), CBO estimates that
enacting H.R. 609 would cause an increase in direct spending
greater than $5 billion in the 10-year period between 2016 and
2025. CBO also expects that the direct spending costs of the
bill would exceed the $5 billion threshold in at least one of
the 10-year periods from 2026 through 2055.
H.R. 609 contains no intergovernmental or private-sector
mandates as defined by the Unfunded Mandates Reform Act (UMRA);
any costs to state, local, or tribal governments would results
from complying with conditions of federal assistance.
Estimated cost to the Federal Government: The estimated
impact of H.R. 609 on direct spending is shown in the following
table. The costs of this legislation would fall within budget
function 500 (education, training, and social services).
Basis of estimate: This estimate of the direct spending
effects of H.R. 609 assumes that the bill will be enacted in
the fall of 2005. The CBO has not completed its review of the
provisions of the bill that would affect spending subject to
appropriation.
Major provisions reducing spending
The provisions of H.R. 609 that would generate the largest
savings include changes to the borrower interest rate and
lender-yield formulas, reductions in the federal insurances
rates for lenders, and modifications in the budget authority
provided for mandatory administrative expenses. Together these
provisions would reduce outlays by $6.3 billion in 2006, $12.4
billion over the 2006-2010 period, and $20.1 billion over the
2006-2015 period. Because the changes would be made in federal
loan programs, the impacts generally are the estimated changes
in the subsidy costs that are assessed on a net present value
basis, as specified in the Federal Credit Reform Act.
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Major Provisions Reducing Spending:
Changes in Borrower Interest Rates and Lender
Yields:
Estimated Budget Authority...................... -5,495 -1,290 -1,190 -1,135 -1,145 -1,165 -1,195 -1,220 -1,245 -1,275
Estimated Outlays............................... -5,040 -1,080 -1,075 -1,005 -1,005 -1,015 -1,035 -1,065 -1,085 -1,110
Changes to Certain Loans Financed with Tax-Exempt
Bonds:
Estimated Budget Authority...................... -980 -265 -265 -270 -270 -275 -280 -290 -290 -290
Estimated Outlays............................... -850 -235 -235 -235 -240 -245 -245 -250 -255 -265
Changes in Lender Insurance:
Estimated Budget Authority...................... -425 -145 -150 -160 -165 -170 -180 -185 -195 -200
Estimated Outlays............................... -385 -115 -130 -140 -145 -150 -155 -160 -170 -175
Changes in Mandatory Administrative Costs:
Estimated Budget Authority...................... -13 -128 -66 -187 -214 -241 0 0 0 0
Estimated Outlays............................... 17 -111 -50 -172 -198 -225 -81 -21 -8 0
Subtotal:
Estimated Budget Authority.................. -6,913 -1,828 -1,671 -1,752 -1,794 -1,851 -1,655 -1,695 -1,730 -1,765
Estimated Outlays........................... -6,258 -1,541 -1,490 -1,552 -1,558 -1,635 -1,516 -1,496 -1,518 -1,550
Major Provisions Increasing Spending:
Changes in Borrower Origination Fees and Insurance
Premiums:
Estimated Budget Authority...................... 10 265 685 1,045 1,420 1,590 1,610 1,625 1,635 1,660
Estimated Outlays............................... -90 70 450 750 1,070 1,275 1,335 1,345 1,350 1,360
Increased Loan Limits:
Estimated Budget Authority...................... 0 315 540 555 580 600 620 640 660 685
Estimated Outlays............................... 0 185 410 485 505 525 540 560 580 595
Changes in the Perkins Loan Program:
Estimated Budget Authority...................... 40 40 40 40 40 40 401 715 736 840
Estimated Outlays............................... 0 40 40 40 40 40 401 715 736 840
Subtotal:
Estimated Budget Authority.................. 50 620 1,265 1,640 2,040 2,230 2,631 2,980 3,031 3,185
Estimated Outlays........................... -90 295 900 1,275 1,615 1,840 2,276 2,620 2,666 2,795
Other Provisions With Measurable Effects:
Estimated Budget Authority...................... 245 76 33 38 53 66 66 71 66 76
Estimated Outlays............................... 192 81 58 33 53 66 71 71 71 76
Interaction Effects:
Estimated Budget Authority...................... -132 -163 -182 -161 -154 -145 -137 -146 -137 -146
Estimated Outlays............................... -104 -100 -163 -141 -130 -121 -131 -135 -129 -126
Total Changes in Direct Spending:
Estimated Budget Authority.................. -6,750 -1,295 -555 -235 145 300 905 1,210 1,230 1,350
Estimated Outlays........................... -6,260 -1,265 -695 -385 -50 150 700 1,060 1,090 1,195
--------------------------------------------------------------------------------------------------------------------------------------------------------
Borrower Interest Rate and Lender-Yield Formulas. Relative
to the current-law baseline, H.R. 609 would change many of the
formulas used to compute what borrowers owe to lenders and what
lenders can charge. The following table outlines the current-
law formulas and the proposed changes. Borrower rates on new
Stafford and parent loans are scheduled to switch from a
variable-rate formula to a fixed rate (6.8 percent for students
and 7.9 percent for parents) in July 2006; H.R. 609 would
eliminate that change and continue the current variable-rate
formulas. The rates on consolidated loans would change from
being a fixed rate based on the weighted average of the loans
being consolidated, rounded up to the nearest one-eighth
percent, to the borrower's choice of a variable rate (91-day
Treasury bill rate plus 2.3 percentage points for students and
plus 3.1 percentage points for parents) or a fixed rate (set at
the 91-day Treasury bill rate plus 3.3 percentage points for
students and plus 4.1 percentage points for parents). The rates
for students and for parents would be capped at 8.25 percent
and 9.0 percent, respectively.
The lender-yield formulas for student and parent loans
would continue to be based on a variable-rate formula, but H.R.
609 would no longer allow the borrowers' rates to serve as the
minimum for the lender yield. Lenders under current law receive
the higher of the lender-yield formula or the rate paid by
borrowers, but the bill would require lenders to rebate the
difference between the two rates to the government when the
borrower rate is higher.
The combination of these changes to borrowers and lenders
would save $5.0 billion in 2006, $9.2 billion over the 2006-
2010 period, and $14.5 billion through 2015.
Another change in the payment formulas for lenders affects
loans that are funded with financing based on tax-exempt bonds
issued between 1980 and 1993. Historically, these loans have
had a different formula for determining payments to lenders.
Specifically, the formula for the special allowance payments to
the holders of these loans was 50 percent of the sum of the 91-
day Treasury bill rate plus 3.5 percentage points or 9.5
percent, whichever was higher. In recent years, the 9.5 percent
rate was higher. (Consequently, these have come to be referred
to as 9.5 percent loans.) Legislation in 2004 modified this
policy for most new loans from tax-exempt lenders during the
October 2004 to December 2005 period, changing the lender
formula to conform to the rates to other leaders. Under current
law, the formula on new loans will revert back to the pre-
October 2004 structure. H.R. 609 would continue the practice in
place on December 2005, but expand its scope to include all new
loans supported with this type of financing. This policy would
save an estimated $850 million in 2006, $1.8 billion over the
2006-2010 period, $3.1 billion over the 2006-2015 period.
----------------------------------------------------------------------------------------------------------------
Loans originating after Loans originating after
Type of Loan December 1999 and Loans originating after June 2006 (under H.R.
before July 2006 June 2006 (current law) 609)
----------------------------------------------------------------------------------------------------------------
BORROWER INTEREST RATES
Student loans:
In-school, grace, or deferment... Variable rate set Fixed rate at 6.8 Variable rate set
annually at 91-day percent. annually at 91-day
Treasury bill plus 1.7 Treasury bill plus 1.7
percentage points percentage points
(8.25 percent cap). (8.25 percent cap).
In repayment..................... Variable rate set Fixed rate at 6.8 Variable rate set
annually at 91-day percent. annually at 91-day
Treasury bill plus 2.3 Treasury bill plus 2.3
percentage points percentage points
(8.25 percent cap). (8.25 percent cap).
Parent loans......................... Variable rate set Fixed rate at 7.9 Variable rate set
annually at the percent. annually at 91-day
Treasury bill rate Treasury bill rate
plus 3.1 percent (9.0 plus 3.1 percent (9.0
percent cap). percent cap).
Consolidation loans:
Students......................... Fixed rate set at the Fixed rate set at the Choice of variable rate
weighted average of weighted average of set annually at 91-day
loans consolidated loans consolidated Treasury bill rate
rounded up to nearest rounded up to nearest plus 2.3 percent (8.25
\1/8\ percent. \1/8\ percent. percent cap) or fixed
rate set at 91-day
Treasury bill rate
plus 3.3 percentage
points.
Parents.......................... Fixed rate set at the Fixed rate set at the Choice of variable rate
weighted average of weighted average of set annually at 91-day
loans consolidated loans consolidated Treasury bill rate
rounded up to nearest rounded up to nearest plus 3.1 percent (9.0
\1/8\ percent. \1/8\ percent. percent cap) or fixed
rate set at 91-day
Treasury bill rate
plus 4.1 percentage
points.
LENDER YIELDS
Student loans:
In-school, grace, and deferment.. Greater of 3-month Greater of 3-month 3-month commercial
commercial paper rate commercial paper rate paper rate plus 1.74
plus 1.74 percentage plus 1.74 percentage percentage points.
points or the borrower points or the borrower
rate. rate.
In-repayment..................... Greater of 3-month Greater of 3-month 3-month commercial
commercial paper rate commercial paper rate paper rate plus 2.34
plus 2.34 percentage plus 2.34 percentage percentage points.
points or the borrower points or the borrower
rate. rate.
Parent Loans......................... Greater of 3-month Greater of 3-month 3-month commercial
commercial paper rate commercial paper rate paper rate plus 2.64
plus 2.64 percentage plus 2.64 percentage percentage points.
points only when the points only when that
borrower rate is formula exceeds 9.0
capped at 9.0 percent percent or the
or the borrower rate. borrower rate.
Consolidation loans:
Student loans.................... Regular formula less Regular formula less Regular formula less
1.05 percentage points. 1.05 percentage points. 1.05 percentage
points.
Parent loans..................... Regular formula less Regular formula less Regular formula less
1.05 percentage points. 1.05 percentage points. 1.05 percentage
points.
----------------------------------------------------------------------------------------------------------------
Federal Lender Insurance. H.R. 609 would reduce the portion
of defaulted loans for which lenders are reimbursed. under
current law, lenders are generally reimbursed for 98 percent of
the outstanding balances on loans which go into default.
lenders who meet certain requirements are classified as
exceptional lenders and they receive 100 percent insurance.
H.R. 609 would reduce the 98 percent to 96 percent, and would
tighten eligibility for the exceptional lender designation. For
those lenders losing exceptional lender status the insurance
rate would drop from 100 percent to 96 percent. CBO estimates
that these changes would reduce outlays by $385 million in
2006, $915 million over the 2006-2010 period, and $1.7 billion
through 2015.
Changes to the federal reinsurance rate only affect
intrabudgetary transactions, and have no effect on total
federal spending or revenues.
Funding for Mandatory Administrative Costs. Under the
Higher Education Act of 1965, section 458 specifies a direct
appropriation for administrative costs associated with
operating the financial assistance programs for post-secondary
education students. After 2002, the statue does not contain a
limit on the amount provided for those activities; thus, CBO
treats this account as an uncapped direct spending program.
CBO's baseline assumes that the portion of the account that
funds administrative activities would be equal to the actual
amount used in 2004, adjusted for anticipated inflation. The
other major components is an account maintenance fee payable to
guaranty agencies equal to 0.10 percent of original principal
on outstanding guaranteed student loans.
H.R. 609 would establish new annual caps on total section
458 funds, and restrict the amount that could be used for the
agency account maintenance fees below what the formula would
provide. CBO assumes that the entire amount of the fees will be
paid, but a portion would be paid out of the federal student
loans reserve fund (the on-budget guaranty agency account
referred to in the previous section) instead of out of section
458. As a result, the amounts that certain agencies would
retain in the reserve fund would fall below that fund's minimum
requirements and some of these agencies would have to collect
the 1.0 percent insurance premium allowed guaranty agencies--
premiums that many of those agencies currently waive. The net
effect of these changes in section 458 funding would increase
outlays by $17 million in 2006, but reduce them by $514 million
over the 2006-2010 period and by $849 million over the 2006-
1015 period.
Major provisions increasing spending
The provisions in the bill that would result in the largest
increases in spending are the changes to origination fees and
insurance premiums paid by borrowers, increases in loan limits,
and modifications to the Perkins Loan Revolving fund. The
estimated costs resulting from these portions of H.R. 609 total
$4.0 billion over the 2006-2010 period and $16.2 billion over
the 2006-2015 period.
Borrower Origination Fees and Premiums. H.R. 609 would
gradually reduce borrower origination fees for both subsidized
and unsubsidized student loans, while at the same time
requiring guaranty agencies to charge all guaranteed students
and parent loans borrowers the 1.0 percent premium currently
authorized. Currently, origination fees for guaranteed loans
are 3.0 percent and the insurance premium is up to 1.0 percent.
In the direct loan programs, the origination fee is 3.0 percent
(although the actual practice is to charge 1.5 percent up front
and another 1.5 percent if the borrower fails to make payments)
and there is no insurance fee. The changes in the bill would
equalize the total fees charged to students borrowing through
guaranteed loans with those borrowing through the direct loan
program.
Total fees on student borrowers would drop to 2.5 percent
in July 2007, to 2.0 percent in July 2008, to 1.5 percent in
July 2009, and to 1.0 percent in July 2010. These changes would
reduce outlays by $90 million in 2006 because the increase
insurance premiums are recorded more quickly than the reduced
origination fees (fees are tied to loan disbursements that
often fall into a subsequent year). CBO estimates that the net
impact of the changes would be to increase outlays by $2.25
billion over the 2006-2010 period and by $8.9 billion over the
2006-2015 period.
Borrower Loan Limits. H.R. 609 would increase the maximum
amount of subsidized loans for first- and second-year students
from $2,625 and $3,500, respectively, to $3,500 and $4,500
beginning in 2007. In addition, the bill would increase the
limit for unsubsidized loans for each year of graduate school
from $10,000 to 12,000. To conform the aggregate borrowing
limits to the latter changes, the limit on unsubsidized loans
would be increased by $10,000. These increases would boost
aggregate student loans borrowing and increase spending by $1.6
billion over the 2007-2010 period and by $4.4 billion over the
2007-2015 period.
Perkins Loan Revolving Fund. H.R. 609 would divert certain
default collections in the Perkins loan program to schools and
delay the beginning of the recall to the Treasury of balances
held by participating schools from 2012 to 2020.
Under current loan, any collections by the Secretary of
Education on defaulted Perkins loans--a program administered by
colleges and universities--are returned to the Treasury. These
collections amount to roughly $40 million per year. The bill
would require the Secretary to reallocate these funds--in the
following year--to other schools participating in the loan
programs, thus increasing net federal spending by $40 million
annually beginning in 2007.
Beginning in 2012, schools are required to return the
federal share of their Perkins loan repayments to the Treasury.
H.R. 609 would delay that date until 2020. Based on data from
the Department of Education, CBO estimates that the recall of
the federal share would total about $2.5 billion over the 2012-
2015 period. Consequently, the delay that would result from
enacting H.R. 609 would reduce recoveries by a like amount.
Other provisions with measurable effects
H.R. 609 contains numerous provisions that would have much
smaller budgetary effects than those described above. Among
them are changes in loan cancellation programs, borrower
repayment terms, and interest deferment eligibility. Other
provisions with some estimated budget effects during the 2006-
2010 period include changes in the income protection allowance
for dependent students, the restrictions on eligibility for
certain student with drug-related convictions, the eligibility
of schools to participate on the basis of distance learning
programs, and the multiple disbursement requirement for certain
loans for schools with low default rates. The total effects of
these provisions are costs of $192 million in 2006, $417
million over the 2006-2010 period, and $772 million for the
2006-2015 period.
Interactions
The overall spending reductions that H.R. 609 would yield
are significantly larger than the sum of the individual
provisions because many provisions interact. For example, the
lender-yield and borrower interest rate changes save even more
when the increased loan volume flowing from the changes in
loans limits are considered. However, those same loan limit
increases boost the costs of the provisions that reduce
borrower fees. As another example, the application of the
proposed lender yields and borrower interest rates to the 9.5
percent loans increase the saving when compared to that
provision alone. In total, the interactions among the various
provisions generate an additional $104 million in savings in
2006, $638 million over the 2006-2010 period, and $1.3 billion
over the 2006-2015 period.
Estimated long-term effects on direct spending: Pursuant to
section 407 of H. Con. Res. 95 (the Concurrent Resolution on
the Budget, Fiscal Year 2006), CBO estimates that enacting H.R.
609 would cause an increase in direct spending greater than $5
billion in the 10-year period between 2016 and 2025. CBO also
expects that the direct spending costs of the bill would exceed
the $5 billion threshold in at least one of the 10-year periods
from 2026 through 2055.
Intergovernment and private sector impact: H.R. 609
contains no intergovernmental or private-sector mandates as
directed by UMRA. The bill would authorize funding for student
aid and higher education programs, much of which would go to
public institutions of higher education.
The bill also would impose several new reporting
requirements on institutions of higher education that receive
federal aid under Title IV of the Higher Education Act. These
institutions would be required to submit data that would be
used by the Department of Education to calculate an
institution's affordability index. Institutions with indexes
that exceed a certain threshold also would be required to
submit management and action plans that outline steps the
institution will take to reduce affordability index. CBO
assumes that these requirements are effectively placed on
institutions participating in grant programs; therefore costs
related to these provisions would be incurred voluntarily, as a
condition of federal assistance.
Estimated prepared by: Federal spending: Deborah Kalcevic,
Chad Chirico, and Justin Humphrey; Impact on state, local, and
tribal governments: Lisa Ramirez-Branum; Impact on the private
sector: Nabeel Alsalam.
Estmate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goal of the bill is to reauthorize and improve programs
authorized under the Higher Education Act. The Committee
expects the Department of Education to comply with these
provisions and implement the changes to the law in accordance
with these stated goals.
Constitutional Authority Statement
Under clause 3(d)(1) of rule XIII of the Rules of the House
of Representatives, the Committee must include a statement
citing the specific powers granted to Congress in the
Constitution to enact the law proposed by the bill. The
Committee believes that the amendments, made by this bill to
the Social Security Act, are within Congress' authority under
Article I, section 8, clause 1 of the Constitution.
Committee Estimate
Clause 3(d)(2) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison by the
Committee of the costs that would be incurred in carrying out
H.R. 609. However, clause 3(d)(3)(B) of that rule provides that
this requirement does not apply when the Committee has included
in its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
TITLE I--GENERAL PROVISIONS
PART A--DEFINITIONS
[SEC. 101. GENERAL DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
[(a) Institution of Higher Education.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' means an educational institution in any State
that--
[(1) admits as regular students only persons having a
certificate of graduation from a school providing
secondary education, or the recognized equivalent of
such a certificate;
[(2) is legally authorized within such State to
provide a program of education beyond secondary
education;
[(3) provides an educational program for which the
institution awards a bachelor's degree or provides not
less than a 2-year program that is acceptable for full
credit toward such a degree;
[(4) is a public or other nonprofit institution; and
[(5) is accredited by a nationally recognized
accrediting agency or association, or if not so
accredited, is an institution that has been granted
preaccreditation status by such an agency or
association that has been recognized by the Secretary
for the granting of preaccreditation status, and the
Secretary has determined that there is satisfactory
assurance that the institution will meet the
accreditation standards of such an agency or
association within a reasonable time.
[(b) Additional Institutions Included.--For purposes of this
Act, other than title IV, the term ``institution of higher
education'' also includes--
[(1) any school that provides not less than a 1-year
program of training to prepare students for gainful
employment in a recognized occupation and that meets
the provision of paragraphs (1), (2), (4), and (5) of
subsection (a); and
[(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 persons who are beyond the age of compulsory
school attendance in the State in which the institution
is located.
[(c) List of Accrediting Agencies.--For purposes of this
section and section 102, the Secretary shall publish a list of
nationally recognized accrediting agencies or associations that
the Secretary determines, pursuant to subpart 2 of part H of
title IV, to be reliable authority as to the quality of the
education or training offered.
[SEC. 102. DEFINITION OF INSTITUTION OF HIGHER EDUCATION FOR PURPOSES
OF TITLE IV PROGRAMS.
[(a) Definition of Institution of Higher Education for
Purposes of Title IV Programs.--
[(1) Inclusion of additional institutions.--Subject
to paragraphs (2) through (4) of this subsection, the
term ``institution of higher education'' for purposes
of title IV includes, in addition to the institutions
covered by the definition in section 101--
[(A) a proprietary institution of higher
education (as defined in subsection (b) of this
section);
[(B) a postsecondary vocational institution
(as defined in subsection (c) of this section);
and
[(C) only for the purposes of part B of title
IV, an institution outside the United States
that is comparable to an institution of higher
education as defined in section 101 and that
has been approved by the Secretary for the
purpose of part B of title IV.
[(2) Institutions outside the united states.--
[(A) In general.--For the purpose of
qualifying as an institution under paragraph
(1)(C), the Secretary shall establish criteria
by regulation for the approval of institutions
outside the United States and for the
determination that such institutions are
comparable to an institution of higher
education as defined in section 101 (except
that a graduate medical school, or a veterinary
school, located outside the United States shall
not be required to meet the requirements of
section 101(a)(4)). Such criteria shall include
a requirement that a student attending such
school outside the United States is ineligible
for loans made, insured, or guaranteed under
part B of title IV unless--
[(i) in the case of a graduate
medical school located outside the
United States--
[(I)(aa) at least 60 percent
of those enrolled in, and at
least 60 percent of the
graduates of, the graduate
medical school outside the
United States were not persons
described in section 484(a)(5)
in the year preceding the year
for which a student is seeking
a loan under part B of title
IV; and
[(bb) at least 60 percent of
the individuals who were
students or graduates of the
graduate medical school outside
the United States or Canada
(both nationals of the United
States and others) taking the
examinations administered by
the Educational Commission for
Foreign Medical Graduates
received a passing score in the
year preceding the year for
which a student is seeking a
loan under part B of title IV;
or
[(II) the institution has a
clinical training program that
was approved by a State as of
January 1, 1992; or
[(ii) in the case of a veterinary
school located outside the United
States that does not meet the
requirements of section 101(a)(4), the
institution's students complete their
clinical training at an approved
veterinary school located in the United
States.
[(B) Advisory panel.--
[(i) In general.--For the purpose of
qualifying as an institution under
paragraph (1)(C) of this subsection,
the Secretary shall establish an
advisory panel of medical experts that
shall--
[(I) evaluate the standards
of accreditation applied to
applicant foreign medical
schools; and
[(II) determine the
comparability of those
standards to standards for
accreditation applied to United
States medical schools.
[(ii) Special rule.--If the
accreditation standards described in
clause (i) are determined not to be
comparable, the foreign medical school
shall be required to meet the
requirements of section 101.
[(C) Failure to release information.--The
failure of an institution outside the United
States to provide, release, or authorize
release to the Secretary of such information as
may be required by subparagraph (A) shall
render such institution ineligible for the
purpose of part B of title IV.
[(D) Special rule.--If, pursuant to this
paragraph, an institution loses eligibility to
participate in the programs under title IV,
then a student enrolled at such institution
may, notwithstanding such loss of eligibility,
continue to be eligible to receive a loan under
part B while attending such institution for the
academic year succeeding the academic year in
which such loss of eligibility occurred.
[(3) Limitations based on course of study or
enrollment.--An institution shall not be considered to
meet the definition of an institution of higher
education in paragraph (1) if such institution--
[(A) offers more than 50 percent of such
institution's courses by correspondence, unless
the institution is an institution that meets
the definition in section 521(4)(C) of the Carl
D. Perkins Vocational and Applied Technology
Education Act;
[(B) enrolls 50 percent or more of the
institution's students in correspondence
courses, unless the institution is an
institution that meets the definition in such
section, except that the Secretary, at the
request of such institution, may waive the
applicability of this subparagraph to such
institution for good cause, as determined by
the Secretary in the case of an institution of
higher education that provides a 2- or 4-year
program of instruction (or both) for which the
institution awards an associate or
baccalaureate degree, respectively;
[(C) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for a nonprofit institution that
provides a 2- or 4-year program of instruction
(or both) for which the institution awards a
bachelor's degree, or an associate's degree or
a postsecondary diploma, respectively; or
[(D) has a student enrollment in which more
than 50 percent of the students do not have a
secondary school diploma or its recognized
equivalent, and does not provide a 2- or 4-year
program of instruction (or both) for which the
institution awards a bachelor's degree or an
associate's degree, respectively, except that
the Secretary may waive the limitation
contained in this subparagraph if a nonprofit
institution demonstrates to the satisfaction of
the Secretary that the institution exceeds such
limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of
students who do not have a secondary school
diploma or its recognized equivalent.
[(4) Limitations based on management.--An institution
shall not be considered to meet the definition of an
institution of higher education in paragraph (1) if--
[(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the management or policies of the
institution, has filed for bankruptcy, except
that this paragraph shall not apply to a
nonprofit institution, the primary function of
which is to provide health care educational
services (or an affiliate of such an
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the institution's management or
policies) that files for bankruptcy under
chapter 11 of title 11, United States Code,
between July 1, 1998, and December 1, 1998; or
[(B) the institution, the institution's
owner, or the institution's chief executive
officer has been convicted of, or has pled nolo
contendere or guilty to, a crime involving the
acquisition, use, or expenditure of funds under
title IV, or has been judicially determined to
have committed fraud involving funds under
title IV.
[(5) Certification.--The Secretary shall certify an
institution's qualification as an institution of higher
education in accordance with the requirements of
subpart 3 of part H of title IV.
[(6) Loss of eligibility.--An institution of higher
education shall not be considered to meet the
definition of an institution of higher education in
paragraph (1) if such institution is removed from
eligibility for funds under title IV as a result of an
action pursuant to part H of title IV.
[(b) Proprietary Institution of Higher Education.--
[(1) Principal criteria.--For the purpose of this
section, the term ``proprietary institution of higher
education'' means a school that--
[(A) provides an eligible program of training
to prepare students for gainful employment in a
recognized occupation;
[(B) meets the requirements of paragraphs (1)
and (2) of section 101(a);
[(C) does not meet the requirement of
paragraph (4) of section 101(a);
[(D) is accredited by a nationally recognized
accrediting agency or association recognized by
the Secretary pursuant to part H of title IV;
[(E) has been in existence for at least 2
years; and
[(F) has at least 10 percent of the school's
revenues from sources that are not derived from
funds provided under title IV, as determined in
accordance with regulations prescribed by the
Secretary.
[(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 paragraph (1) of section
101(a), admits as regular students persons who are
beyond the age of compulsory school attendance in the
State in which the institution is located.
[(c) Postsecondary Vocational Institution.--
[(1) Principal criteria.--For the purpose of this
section, the term ``postsecondary vocational
institution'' means a school that--
[(A) provides an eligible program of training
to prepare students for gainful employment in a
recognized occupation;
[(B) meets the requirements of paragraphs
(1), (2), (4), and (5) of section 101(a); and
[(C) has been in existence for at least 2
years.
[(2) Additional institutions.--The term
``postsecondary vocational institution'' also includes
an educational institution in any State that, in lieu
of the requirement in paragraph (1) of section 101(a),
admits as regular students persons who are beyond the
age of compulsory school attendance in the State in
which the institution is located.]
SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.
(a) Institution of Higher Education.--For purposes of this
Act, the term ``institution of higher education'' means an
educational institution in any State that--
(1) admits as regular students only individuals who--
(A) meet the requirements of section
484(d)(3), or have a certificate of graduation
from a school providing secondary education, or
the recognized equivalent of such a
certificate;
(B) are beyond the age of compulsory school
attendance in the State in which the
institution is located; or
(C) will be dually enrolled in that
institution and a secondary school;
(2) is legally authorized within such State to
provide a program of education beyond secondary
education;
(3)(A) is accredited by a nationally recognized
accrediting agency or association; or
(B) if not so accredited, is a public or nonprofit
institution that has been granted preaccreditation
status by such an agency or association that has been
recognized by the Secretary for the granting of
preaccreditation status, and the Secretary has
determined that there is satisfactory assurance that
the institution will meet the accreditation standards
of such an agency or association within a reasonable
time; and
(4) meets either of the following criteria:
(A) is a nonprofit, for-profit, or public
institution that--
(i) provides an educational program
for which the institution awards a
bachelor's, graduate, or professional
degree;
(ii) provides not less than a 2-year
educational program which is acceptable
for full credit towards such a degree;
(iii) provides not less than a 1-year
program of training that prepares
students for gainful employment in a
recognized occupation; or
(iv) awards a degree that is
acceptable for admission to graduate or
professional degree programs, subject
to the review and approval of the
Secretary; or
(B) is a nonprofit, for-profit, or public
institution that provides an eligible program
(as defined in section 481)--
(i) for which the institution awards
a certificate; and
(ii) that prepares students for
gainful employment in a recognized
occupation.
(b) Additional Limitations.--
(1) For-profit postsecondary institutions.--
(A) Duration of accreditation.--A for-profit
institution shall not be considered to be an
institution of higher education unless such
institution is accredited by a nationally
recognized accrediting agency or association
and such institution has been in existence for
at least 2 years.
(B) Institutional eligibility only for
competitive grants.--For the purposes of any
program providing grants to institutions for
use by the institution (and not for
distribution among students), a for-profit
institution shall not be considered to be an
institution of higher education under this
section if such grants are awarded on any basis
other than competition on the merits of the
grant proposal or application.
(2) Postsecondary vocational institutions.--A
nonprofit or public institution that meets the criteria
of subsection (a)(4)(B) shall not be considered to be
an institution of higher education unless such
institution has been in existence for at least 2 years.
(3) Limitations based on management.--An institution
shall not be considered to meet the definition of an
institution of higher education in this section if--
(A) the institution, or an affiliate of the
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the management or policies of the
institution, has filed for bankruptcy, except
that this paragraph shall not apply to a
nonprofit institution, the primary function of
which is to provide health care educational
services (or an affiliate of such an
institution that has the power, by contract or
ownership interest, to direct or cause the
direction of the institution's management or
policies) that filed for bankruptcy under
chapter 11 of title 11, United States Code,
between July 1, 1998, and December 1, 1998; or
(B) the institution, the institution's owner,
or the institution's chief executive officer
has been convicted of, or has pled nolo
contendere or guilty to, a crime involving the
acquisition, use, or expenditure of Federal,
State, or local government funds, or has been
judicially determined to have committed a crime
involving the acquisition, use, or expenditure
involving Federal, State, or local government
funds.
(4) Limitation on course of study or enrollment.--An
institution shall not be considered to meet the
definition of an institution of higher education in
subsection (a) if such institution--
(A) offers more than 50 percent of such
institution's courses by correspondence
(excluding courses offered by
telecommunications as defined in section
484(l)(4)), unless the institution is an
institution that meets the definition in
section 3(3)(C) of the Carl D. Perkins
Vocational and Technical Education Act of 1998;
(B) enrolls 50 percent or more of the
institution's students in correspondence
courses (excluding courses offered by
telecommunications as defined in section
484(l)(4)), unless the institution is an
institution that meets the definition in
section 3(3)(C) of the Carl D. Perkins
Vocational and Technical Education Act of 1998,
except that the Secretary, at the request of
the institution, may waive the applicability of
this subparagraph to the institution for good
cause, as determined by the Secretary in the
case of an institution of higher education that
provides a 2- or 4-year program of instruction
(or both) for which the institution awards an
associate or baccalaureate degree,
respectively;
(C) has a student enrollment in which more
than 25 percent of the students are
incarcerated, except that the Secretary may
waive the limitation contained in this
subparagraph for an institution that provides a
2- or 4-year program of instruction (or both)
for which the institution awards a bachelor's
degree, or an associate's degree or a
postsecondary certificate, respectively; or
(D) has a student enrollment in which more
than 50 percent of the students either do not
meet the requirements of section 484(d)(3) or
do not have a secondary school diploma or its
recognized equivalent, and does not provide a
2- or 4-year program of instruction (or both)
for which the institution awards an associate's
degree or a bachelor's degree, respectively,
except that the Secretary may waive the
limitation contained in this subparagraph if an
institution demonstrates to the satisfaction of
the Secretary that the institution exceeds such
limitation because the institution serves,
through contracts with Federal, State, or local
government agencies, significant numbers of
students who do not meet the requirements of
section 484(d)(3) or do not have a secondary
school diploma or its recognized equivalent.
(c) List of Accrediting Agencies.--For purposes of this
section, the Secretary shall publish a list of nationally
recognized accrediting agencies or associations that the
Secretary determines, pursuant to subpart 2 of part H of title
IV, to be reliable authority as to the quality of the education
or training offered.
(d) Certification.--The Secretary shall certify, for the
purposes of participation in title IV, an institution's
qualification as an institution of higher education in
accordance with the requirements of subpart 3 of part H of
title IV.
(e) Loss of Eligibility.--An institution of higher education
shall not be considered to meet the definition of an
institution of higher education in this section for the
purposes of participation in title IV if such institution is
removed from eligibility for funds under title IV as a result
of an action pursuant to part H of title IV.
SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.
(a) Institutions Outside the United States.--
(1) In general.--An institution outside the United
States shall be considered to be an institution of
higher education only for purposes of part B of title
IV if the institution is comparable to an institution
of higher education, as defined in section 101, is
legally authorized by the education ministry (or
comparable agency) of the country in which the school
is located, and has been approved by the Secretary for
purposes of that part. The Secretary shall establish
criteria by regulation for that approval and that
determination of comparability. An institution may not
be so approved or determined to be comparable unless
such institution is a public or nonprofit institution,
except that, subject to paragraph (2)(B), a graduate
medical school or veterinary school located outside the
United States may be a for-profit institution.
(2) Medical and veterinary school criteria.--In the
case of a graduate medical or veterinary school outside
the United States, such criteria shall include a
requirement that a student attending such school
outside the United States is ineligible for loans made,
insured, or guaranteed under part B of title IV
unless--
(A) in the case of a graduate medical school
located outside the United States--
(i)(I) at least 60 percent of those
enrolled in, and at least 60 percent of
the graduates of, the graduate medical
school outside the United States were
not persons described in section
484(a)(5) in the year preceding the
year for which a student is seeking a
loan under part B of title IV; and
(II) at least 60 percent of the
individuals who were students or
graduates of the graduate medical
school outside the United States or
Canada (both nationals of the United
States and others) taking the
examinations administered by the
Educational Commission for Foreign
Medical Graduates received a passing
score in the year preceding the year
for which a student is seeking a loan
under part B of title IV; or
(ii) the institution has a clinical
training program that was approved by a
State as of January 1, 1992; or
(B) in the case of a veterinary school
located outside the United States that is not a
public or nonprofit institution, the
institution's students complete their clinical
training at an approved veterinary school
located in the United States.
(b) Advisory Panel.--
(1) In general.--For the purpose of qualifying a
foreign medical school as an institution of higher
education only for purposes of part B of title IV, the
Secretary shall publish qualifying criteria by
regulation and establish an advisory panel of medical
experts that shall--
(A) evaluate the standards of accreditation
applied to applicant foreign medical schools;
and
(B) determine the comparability of those
standards to standards for accreditation
applied to United States medical schools.
(2) Failure to release information.--The failure of
an institution outside the United States to provide,
release, or authorize release to the Secretary of such
information as may be required by subsection (a)(2)
shall render such institution ineligible for the
purpose of part B of title IV.
SEC. 103. ADDITIONAL DEFINITIONS.
In this Act:
(1) Authorizing committees.--The term ``authorizing
committees'' means the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and the Workforce of the House of
Representatives.
[(1)] (2) Combination of institutions of higher
education.--The term ``combination of institutions of
higher education'' means a group of institutions of
higher education that have entered into a cooperative
arrangement for the purpose of carrying out a common
objective, or a public or private nonprofit agency,
organization, or institution designated or created by a
group of institutions of higher education for the
purpose of carrying out a common objective on the
group's behalf.
[(2)] (3) Department.--The term ``Department'' means
the Department of Education.
[(3)] (4) Disability.--The term ``disability'' has
the same meaning given that term under section 3(2) of
the Americans With Disabilities Act of 1990.
[(4)] (5) Elementary school.--The term ``elementary
school'' has the same meaning given that term under
section 9101 of the Elementary and Secondary Education
Act of 1965.
[(5)] (6) Gifted and talented.--The term ``gifted and
talented'' has the same meaning given that term under
section 9101 of the Elementary and Secondary Education
Act of 1965.
[(6)] (7) Local educational agency.--The term ``local
educational agency'' has the same meaning given that
term under section 9101 of the Elementary and Secondary
Education Act of 1965.
[(7) New borrower.--The term ``new borrower'' when
used with respect to any date means an individual who
on that date has no outstanding balance of principal or
interest owing on any loan made, insured, or guaranteed
under title IV.]
(8) New borrower.--The term ``new borrower'' when
used with respect to any date for any loan under any
provision of--
(A) part B or part D of title IV means an
individual who on that date has no outstanding
balance of principal or interest owing on any
loan made, insured, or guaranteed under either
of those parts; and
(B) part E of title IV means an individual
who on that date has no outstanding balance of
principal or interest owing on any loan made
under that part.
[(8)] (9) Nonprofit.--The term ``nonprofit'' as
applied to a school, agency, organization, or
institution means a school, agency, organization, or
institution owned and operated by one or more nonprofit
corporations or associations, no part of the net
earnings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
[(9)] (10) School or department of divinity.--The
term ``school or department of divinity'' means an
institution, or a department or a branch of an
institution, the program of instruction of which is
designed for the education of students--
(A) * * *
* * * * * * *
[(10)] (11) Secondary school.--The term ``secondary
school'' has the same meaning given that term under
section 9101 of the Elementary and Secondary Education
Act of 1965.
[(11)] (12) Secretary.--The term ``Secretary'' means
the Secretary of Education.
[(12)] (13) Service-learning.--The term ``service-
learning'' has the same meaning given that term under
section 101(23) of the National and Community Service
Act of 1990.
[(13)] (14) Special education teacher.--The term
``special education teacher'' means teachers who teach
children with disabilities as defined in section 602 of
the Individuals with Disabilities Education Act.
[(14)] (15) State educational agency.--The term
``State educational agency'' has the same meaning given
that term under section 9101 of the Elementary and
Secondary Education Act of 1965.
[(15)] (16) State higher education agency.--The term
``State higher education agency'' means the officer or
agency primarily responsible for the State supervision
of higher education.
[(16)] (17) State; freely associated states.--
(A) * * *
* * * * * * *
PART B--ADDITIONAL GENERAL PROVISIONS
* * * * * * *
SEC. 112. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.
[(a) Protection of Rights.--It is the sense of Congress that
no student attending an institution of higher education on a
full- or part-time basis should, on the basis of participation
in protected speech or protected association, be excluded from
participation in, be denied the benefits of, or be subjected to
discrimination or official sanction under any education
program, activity, or division of the institution directly or
indirectly receiving financial assistance under this Act,
whether or not such program, activity, or division is sponsored
or officially sanctioned by the institution.]
(a) Protection of Rights.--
(1) It is the sense of Congress that no student
attending an institution of higher education on a full-
or part-time basis should, on the basis of
participation in protected speech or protected
association, be excluded from participation in, be
denied the benefits of, or be subjected to
discrimination or official sanction under any education
program, activity, or division of the institution
directly or indirectly receiving financial assistance
under this Act, whether or not such program, activity,
or division is sponsored or officially sanctioned by
the institution; and
(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 colleges and universities have
different missions and each institution should
design its academic program in accordance with
its educational goals;
(C) within the context of its institutional
mission, a college should promote intellectual
pluralism and facilitate the free and open
exchange of ideas;
(D) students should not be intimidated,
harassed, discouraged from speaking out,
discriminated against, or subject to official
sanction because of their personal political,
ideological, or religious beliefs; and
(E) students should be treated equally and
fairly, including evaluation and grading,
without regard to or consideration of their
personal political views or ideological
beliefs.
(3) Nothing in paragraph (2) shall be construed to
modify, change, or infringe upon any constitutionally
protected religious liberty, freedom, expression, or
association.
(b) Construction.--Nothing in this section shall be
construed--
(1) to discourage the imposition of an official
sanction on a student that has willfully participated
in the disruption or attempted disruption of a lecture,
class, speech, presentation, or performance made or
scheduled to be made under the auspices of the
institution of higher education, if the imposition of
such sanction is done objectively, fairly, and without
regard to the student's personal political,
ideological, or religious beliefs; or
* * * * * * *
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 (hereafter in this section referred to as the
``Committee''), which shall be composed of 15 members appointed
by the Secretary from among individuals who are representatives
of, or knowledgeable concerning, education and training beyond
secondary education, including representatives of all sectors
and types of institutions of higher education [(as defined in
section 102)], to assess the process of eligibility and
certification of such institutions under title IV and the
provision of financial aid under title IV.
(b) Terms of Members.--Terms of office of each member of the
Committee shall be 3 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. A member of the
Committee may continue to serve after the expiration of a term
until a successor has been appointed.
* * * * * * *
(g) Termination.--The Committee shall cease to exist on
September 30, [2004] 2012.
* * * * * * *
SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.
(a) * * *
* * * * * * *
(e) Alcohol and Drug Abuse Prevention Grants.--
(1) * * *
* * * * * * *
(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $5,000,000 for fiscal year [1999] 2006 and
such sums as may be necessary for each of the [4] 5
succeeding fiscal years.
SEC. 121. PRIOR RIGHTS AND OBLIGATIONS.
(a) Authorization of Appropriations.--
(1) Pre-1987 parts c and d of title vii.--There are
authorized to be appropriated such sums as may be
necessary for fiscal year [1999 and for each of the 4]
2006 and for each of the 5 succeeding fiscal years to
pay obligations incurred prior to 1987 under parts C
and D of title VII, as such parts were in effect before
the effective date of the Higher Education Amendments
of 1992.
(2) Post-1992 and pre-1998 part c of title vii.--
There are authorized to be appropriated such sums as
may be necessary for fiscal year [1999 and for each of
the 4] 2006 and for each of the 5 succeeding fiscal
years to pay obligations incurred prior to the date of
enactment of the Higher Education Amendments of 1998
under part C of title VII, as such part was in effect
during the period--
(A) * * *
* * * * * * *
SEC. 123. RESTRICTIONS ON FUNDS FOR FOR-PROFIT SCHOOLS.
(a) In General.--Notwithstanding any other provision of this
Act authorizing the use of funds by an institution of higher
education that receives funds under this Act, none of the funds
made available under this Act to a for-profit institution of
higher education may be used for--
(1) construction, maintenance, renovation, repair, or
improvement of classrooms, libraries, laboratories, or
other facilities;
(2) establishing, improving, or increasing an
endowment fund; or
(3) establishing or improving an institutional
development office to strengthen or improve
contributions from alumni and the private sector.
(b) Exception.--Subsection (a) shall not apply to funds
received by the institution from the grant, loan, or work
assistance that is awarded under title IV to the students
attending such institution.
(c) Ineligibility for Certain Programs.--Notwithstanding
section 101, a for-profit institution of higher education shall
not be considered an eligible institution for the programs
under titles III and V of this Act.
SEC. 124. LIMITATION ON CERTAIN USES OF FUNDS.
No funds made available to carry out this Act may be used--
(1) for publicity or propaganda purposes not
authorized by the Congress before the date of enactment
of the College Access and Opportunity Act of 2005; or
(2) unless authorized by law in effect on such date
of enactment, to produce any prepackaged news story
intended for broadcast or distribution unless such
story includes a clear a notification contained within
the text or audio of such story stating that the
prepackaged news story was prepared or funded by the
Department of Education.
PART C--COST OF HIGHER EDUCATION
[SEC. 131. IMPROVEMENTS IN MARKET INFORMATION AND PUBLIC ACCOUNTABILITY
IN HIGHER EDUCATION.
[(a) Improved Data Collection.--
[(1) Development of uniform methodology.--The
Secretary shall direct the Commissioner of Education
Statistics to convene a series of forums to develop
nationally consistent methodologies for reporting costs
incurred by postsecondary institutions in providing
postsecondary education.
[(2) Redesign of data systems.--On the basis of the
methodologies developed pursuant to paragraph (1), the
Secretary shall redesign relevant parts of the
postsecondary education data systems to improve the
usefulness and timeliness of the data collected by such
systems.
[(3) Information to institutions.--The Commissioner
of Education Statistics shall--
[(A) develop a standard definition for the
following data elements:
[(i) tuition and fees for a full-time
undergraduate student;
[(ii) cost of attendance for a full-
time undergraduate student, consistent
with the provisions of section 472;
[(iii) average amount of financial
assistance received by an undergraduate
student who attends an institution of
higher education, including--
[(I) each type of assistance
or benefit described in section
428(a)(2)(C)(i);
[(II) fellowships; and
[(III) institutional and
other assistance; and
[(iv) number of students receiving
financial assistance described in each
of subclauses (I), (II), and (III) of
clause (iii);
[(B) not later than 90 days after the date of
enactment of the Higher Education Amendments of
1998, report the definitions to each
institution of higher education and within a
reasonable period of time thereafter inform the
Committee on Labor and Human Resources of the
Senate and the Committee on Education and the
Workforce of the House of Representatives of
those definitions; and
[(C) collect information regarding the data
elements described in subparagraph (A) with
respect to at least all institutions of higher
education participating in programs under title
IV, beginning with the information from
academic year 2000-2001 and annually
thereafter.
[(b) Data Dissemination.--The Secretary shall make available
the data collected pursuant to subsection (a). Such data shall
be available in a form that permits the review and comparison
of the data submissions of individual institutions of higher
education. Such data shall be presented in a form that is
easily understandable and allows parents and students to make
informed decisions based on the costs for typical full-time
undergraduate students.
[(c) Study.--
[(1) In general.--The Commissioner of Education
Statistics shall conduct a national study of
expenditures at institutions of higher education. Such
study shall include information with respect to--
[(A) the change in tuition and fees compared
with the consumer price index and other
appropriate measures of inflation;
[(B) faculty salaries and benefits;
[(C) administrative salaries, benefits and
expenses;
[(D) academic support services;
[(E) research;
[(F) operations and maintenance; and
[(G) institutional expenditures for
construction and technology and the potential
cost of replacing instructional buildings and
equipment.
[(2) Evaluation.--The study shall include an
evaluation of--
[(A) changes over time in the expenditures
identified in paragraph (1);
[(B) the relationship of the expenditures
identified in paragraph (1) to college costs;
and
[(C) the extent to which increases in
institutional financial aid and tuition
discounting practices affect tuition increases,
including the demographics of students
receiving such discounts, the extent to which
financial aid is provided to students with
limited need in order to attract a student to a
particular institution, and the extent to which
Federal financial aid, including loan aid, has
been used to offset the costs of such
practices.
[(3) Final report.--The Commissioner of Education
Statistics shall submit a report regarding the findings
of the study required by paragraph (1) to the
appropriate committees of Congress not later than
September 30, 2002.
[(4) Higher education market basket.--The Bureau of
Labor Statistics, in consultation with the Commissioner
of Education Statistics, shall develop a higher
education market basket that identifies the items that
comprise the costs of higher education. The Bureau of
Labor Statistics shall provide a report on the market
basket to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the
Workforce of the House of Representatives not later
than September 30, 2002.
[(5) Fines.--In addition to actions authorized in
section 487(c), the Secretary may impose a fine in an
amount not to exceed $25,000 on an institution of
higher education for failing to provide the information
described in paragraph (1) in a timely and accurate
manner, or for failing to otherwise cooperate with the
National Center for Education Statistics regarding
efforts to obtain data on the cost of higher education
under this section and pursuant to the program
participation agreement entered into under section 487.
[(d) Student Aid Recipient Survey.--(1) The Secretary shall
survey student aid recipients on a regular cycle, but not less
than once every 3 years--
[(A) to identify the population of students receiving
Federal student aid;
[(B) to determine the income distribution and other
socioeconomic characteristics of federally aided
students;
[(C) to describe the combinations of aid from State,
Federal, and private sources received by students from
all income groups;
[(D) to describe the debt burden of loan recipients
and their capacity to repay their education debts; and
[(E) to disseminate such information in both
published and machine readable form.
[(2) The survey shall be representative of full-time and
part-time, undergraduate, graduate, and professional and
current and former students in all types of institutions, and
should be designed and administered in consultation with the
Congress and the postsecondary education community.]
SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER
EDUCATION.
(a) Purpose.--It is the purpose of this section to--
(1) provide students and families with an easy-to-
use, comprehensive web-based tool for researching and
comparing institutions of higher education;
(2) increase the transparency of college cost, price,
and financial aid; and
(3) raise public awareness of information available
about postsecondary education, particularly among low-
income families, non-traditional student populations,
and first-generation college students.
(b) College Opportunity On-Line (COOL) Website Re-Design
Process.--In carrying out this section, the Secretary--
(1) shall identify the data elements that are of
greatest importance to prospective students, enrolled
students, and their families, paying particular
attention to low-income, non-traditional student
populations, and first-generation college students;
(2) shall convene a group of individuals with
expertise in the collection and reporting of data
related to institutions of higher education, the
measurement of institutional compliance costs, consumer
use of data related to institutions of higher
education, general consumer marketing, and college
intervention services to--
(A) determine the relevance of particular
data elements to prospective students, enrolled
students, and families;
(B) assess the cost-effectiveness of various
ways in which institutions of higher education
might produce the data desired by consumers;
(C) determine the general comparability of
the data across institutions of higher
education;
(D) make recommendations regarding the
inclusion of specific data items and the most
effective and least burdensome methods to
institutions of higher education of collecting
and reporting useful data; and
(3) shall assure that the redesigned COOL website--
(A) uses, to the extent practicable, data
elements currently provided by institutions of
higher education to the Secretary;
(B) includes clear and uniform information
determined to be relevant to prospective
students, enrolled students, and families;
(C) provides comparable information, by
assuring that data is based on accepted
criteria and common definitions;
(D) includes a sorting function that permits
users to customize their search for and
comparison of institutions of higher education
based on the information identified through the
process as prescribed in paragraph (1) as being
of greatest relevance to choosing an
institution of higher education.
(c) Data Collection.--
(1) Data system.--The Secretary shall continue to
redesign the relevant parts of the Integrated
Postsecondary Education Data System to include
additional data as required by this section and to
continue to improve the usefulness and timeliness of
data collected by such systems in order to inform
consumers about institutions of higher education.
(2) College consumer profile.--The Secretary shall
publish, for each academic year and in accordance with
standard definitions developed by the Commissioner of
Education Statistics (including definitions developed
under section 131(a)(3)(A) as in effect on the day
before the date of enactment of the College Access and
Opportunity Act of 2005), from at least all
institutions of higher education participating in
programs under title IV the following information:
(A) The tuition and fees charged for a first-
time, full-time undergraduate student.
(B) The room and board charges for such a
student.
(C) The cost of attendance for a first-time,
full-time undergraduate student, consistent
with the provisions of section 472.
(D) The average amount of financial
assistance received by a first-time full-time
undergraduate student, including--
(i) each type of assistance or
benefits described in 428(a)(2)(C)(ii);
(ii) institutional and other
assistance; and
(iii) Federal loans under parts B, D,
and E of title IV.
(E) The number of first-time, full-time
students receiving financial assistance
described in each clause of subparagraph (D).
(F) The average net price for first-time,
full-time students receiving Federal, State, or
institutional grant or loan assistance.
(G) The institutional instructional
expenditure per full-time equivalent student.
(H) Student enrollment information, including
information on the number and percentage of
full-time and part-time students, the number
and percentage of resident and non-resident
students.
(I) Faculty/student ratios.
(J) Faculty information, including the total
number of faculty and the percentage of faculty
who are full-time employees of the institution
and the percentage who are part-time.
(K) Completion and graduation rates,
identifying whether the completion or
graduation rates are from a 2-year or 4-year
program of instruction and, in the case of a 2-
year program of instruction, the percentage of
students who transfer to 4-year institutions
prior or subsequent to completion or
graduation.
(L) A link to the institution of higher
education with information of interest to
students including mission, accreditation,
student services (including services for
students with disabilities), transfer of credit
policies and, if appropriate, placement rates
and other measures of success in preparing
students for entry into or advancement in the
workforce.
(M) Any additional information that the
Secretary may require.
(d) Data Dissemination.--The Secretary shall make available,
at a minimum, the data collected pursuant to this section,
including an institution's college affordability index as
calculated in accordance with subsection (e). Such data shall
be made available in a manner that permits the review and
comparison of data submissions of individual institutions of
higher education. Such data shall be presented in a form that
is easily accessible and understandable and allows parents and
students to make informed decisions based on the prices for
typical full-time undergraduate students and the institution's
rate of cost increase. The Secretary shall work with public and
private entities to promote broad public awareness,
particularly among middle and high school students and their
families, of the information made available under this section,
including by distribution to students who participate in or
receive benefits from Federally funded education programs and
other Federal programs determined by the Secretary.
(e) College Affordability Index.--
(1) In general.--The Secretary shall, on the basis of
the data submitted under subsection (a), calculate a
college affordability index for each institution of
higher education submitting such data and shall make
the index available in accordance with subsection (d)
as soon as operationally possible on the Department's
college opportunity online Web site. Such index shall
be presented in a manner so that the index for any
institution is stated in a column or cell immediately
adjacent to a column or cell containing the total
tuition and fees of the institution.
(2) Calculation of index.--The college affordability
index shall be equal to--
(A) the percentage increase in the tuition
and fees charged for a first-time, full-time,
full-year undergraduate student between the
first of the 3 most recent preceding academic
years and the last of those 3 academic years;
divided by
(B) the percentage increase in the Consumer
Price Index--All Urban Consumers (Current
Series) from July of the first of those 3
academic years to July of the last of those 3
academic years.
(f) Outcomes and Actions.--
(1) Response from institution.--Effective on June 30,
2009, an institution that has a college affordability
index that exceeds 2.0 for any 3-year interval ending
on or after that date shall provide a report to the
Secretary, in such a form, at such time, and containing
such information as the Secretary may require. Such
report shall include--
(A) an explanation of the factors
contributing to the increase in the
institution's costs and in the tuition and fees
charged to students;
(B) a management plan stating the specific
steps the institution is and will be taking to
reduce its college affordability index;
(C) an action plan, including a schedule, by
which the institution will reduce increases in
or stabilize, such costs and tuition and fees;
and
(D) if determinations of tuition and fee
increases are not within the exclusive control
of the institution, a description of the agency
or instrumentality of State government or other
entity that participates in such determinations
and the authority exercised by such agency,
instrumentality, or entity.
(2) Information to the public.--Upon receipt of the
institution's report and management plan under
paragraph (1), the Secretary shall make the
institution's report required under paragraph (1)
available to the public in accordance with subsection
(b).
(3) Quality-efficiency task forces.--
(A) Required.--Each institution subject to
paragraph (1) that has a college affordability
index that is in the highest 25 percent of such
indexes of all institutions subject to
paragraph (1) shall establish a quality-
efficiency task force to review the operations
of such institution.
(B) Membership.--Such task force shall
include administrators and business and civic
leaders and may include faculty, students,
trustees, parents of students, and alumni of
such institution.
(C) Functions.--Such task force shall analyze
institutional operating costs in comparison
with such costs at other institutions within
the class of institutions. Such analysis should
identify areas where, in comparison with other
institutions in such class, the institution
operates more expensively to produce a similar
result. Any identified areas should then be
targeted for in-depth analysis for cost
reduction opportunities.
(D) Report.--The results of the analysis by a
quality-efficiency task force under this
paragraph shall be included in the report to
the Secretary under paragraph (1).
(4) Consequences for 2-year continuation of
failure.--If the Secretary determines that the
institution has failed to comply with the management
plan and action plan submitted by the institution under
this subsection following the next 2 academic years
that begin after the submission of such plans, and has
failed to reduce the college affordability index below
2.0 for such 2 academic years, the Secretary--
(A) shall make available to the public a
detailed report provided by the institution on
all costs and expenditures, and on all tuition
and fees charged to students, for such 2
academic years;
(B) shall place the institution on an
affordability alert status and shall make the
information regarding the institution's failure
available in accordance with subsection (d);
(C) shall notify the institution's
accrediting agency of the institution's
failure; and
(D) may require the institution to submit to
a review and audit by the Inspector General of
the Department of Education to determine the
cause of the institution's failure.
(5) Information to state agencies.--Any institution
that reports under paragraph (1)(C) that an agency or
instrumentality of State government or other entity
participates in the determinations of tuition and fee
increases shall, prior to submitting any information to
the Secretary under this subsection, submit such
information to, and request the comments and input of,
such agency, instrumentality, or entity. With respect
to any such institution, the Secretary shall provide a
copy of any communication by the Secretary with that
institution to such agency, instrumentality, or entity.
(6) Exemptions.--
(A) Relative price exemption.--The Secretary
shall, for any 3-year interval for which
college affordability indexes are computed
under paragraph (1), determine and publish the
dollar amount that, for each class of
institution described in paragraph (7)
represents the maximum tuition and fees charged
for a full-time undergraduate student in the
least costly quartile of institutions within
each such class during the last year of such 3-
year interval. An institution that has a
college affordability index computed under
paragraph (1) that exceeds 2.0 for any such 3-
year interval, but that, on average during such
3-year interval, charges less than such maximum
tuition and fees shall not be subject to the
actions required by subparagraph (B) or (C) of
paragraph (1), or any action under paragraph
(4), unless such institution, for a subsequent
3-year interval, charges more than such maximum
tuition and fees.
(B) Dollar increase exemption.--An
institution that has a college affordability
index computed under paragraph (1) that exceeds
2.0 for any 3-year interval, but that exceeds
such 2.0 by a dollar amount that is less than
$500, shall not be subject to the actions
required by subparagraph (B) or (C) of
paragraph (1), or any action under paragraph
(4), unless such institution has a college
affordability index for a subsequent 3-year
interval that exceeds 2.0 by more than such
dollar amount.
(7) Classes of institutions.--For purposes of this
subsection, the classes of institutions shall be those
sectors used by the Integrated Postsecondary Education
Data System, based on whether the institution is
public, nonprofit private, or for-profit private, and
whether the institution has a 4-year, 2-year, or less
than 2-year program of instruction.
(g) Fines.--In addition to actions authorized in section
487(c), the Secretary may impose a fine in an amount not to
exceed $25,000 on an institution of higher education for
failing to provide the information described in this section in
a timely and accurate manner, or for failing to otherwise
cooperate with the National Center for Education Statistics
regarding efforts to obtain data on the cost and price of
higher education under this section and pursuant to the program
participation agreement entered into under section 487.
(h) GAO Study and Report.--
(1) GAO study.--The Comptroller General shall conduct
a study of the policies and procedures implemented by
institutions in increasing the affordability of
postsecondary education. Such study shall include
information with respect to--
(A) a list of those institutions that--
(i) have reduced their college
affordability indexes; or
(ii) are, as determined under
subsection (f)(6)(A), within the least
costly quartile of institutions within
each class described in subsection
(f)(7);
(B) policies implemented to stem the increase
in tuition and fees and institutional costs;
(C) the extent to which room and board costs
and prices changed;
(D) the extent to which other services were
altered to affect tuition and fees;
(E) the extent to which the institution's
policies affected student body demographics and
time to completion;
(F) what, if any, operational factors played
a role in reducing tuition and fees;
(G) the extent to which academic quality was
affected, and how;
(H) the extent to which policies and
practices reducing costs and prices may be
replicated from one institution to another; and
(I) other information as necessary to
determine best practices in increasing the
affordability of postsecondary education.
(2) Interim and final reports.--The Comptroller
General shall submit an interim and a final report
regarding the findings of the study required by
paragraph (1) to the appropriate authorizing committees
of Congress. The interim report shall be submitted not
later than July 31, 2011, and the final report shall be
submitted not later than July 31, 2013.
(i) Student Aid Recipient Survey.--
(1) Survey required.--The Secretary shall conduct a
survey of student aid recipients under title IV on a
regular cycle and State-by-State basis, but not less
than once every 4 years--
(A) to identify the population of students
receiving Federal student aid;
(B) to describe the income distribution and
other socioeconomic characteristics of
federally aided students;
(C) to describe the combinations of aid from
State, Federal, and private sources received by
students from all income groups;
(D) to describe the debt burden of
educational loan recipients and their capacity
to repay their education debts, and the impact
of such debt burden on career choices;
(E) to describe the role played by the price
of postsecondary education in the determination
by students of what institution to attend; and
(F) to describe how the increased costs of
textbooks and other instructional materials
affects the costs of postsecondary education to
students.
(2) Survey design.--The survey shall be
representative of full-time and part-time,
undergraduate, graduate, and professional and current
and former students in all types of institutions, and
designed and administered in consultation with the
Congress and the postsecondary education community.
(3) Dissemination.--The Secretary shall disseminate
the information resulting from the survey in both
printed and electronic form.
(j) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of
this section.
SEC. 132. DATABASES OF STUDENT INFORMATION PROHIBITED.
(a) Prohibition.--Except as described in (b), nothing in this
Act shall be construed to authorize the design, development,
creation, implementation, or maintenance of a nationwide
database of personally identifiable information on individuals
receiving assistance, attending institutions receiving
assistance, 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
affect the loan obligation enforcement activities described in
section 485B of this Act.
PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
SEC. 141. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL
STUDENT FINANCIAL ASSISTANCE.
(a) Establishment and Purpose.--
(1) * * *
(2) Purposes.--The purposes of the PBO are--
(A) * * *
(B) to reduce the unit costs of administering
those programs and, to the extent practicable,
the total costs of administering those
programs;
* * * * * * *
(c) Performance Plan and Report.--
(1) Performance plan.--
(A) In general.--Each fiscal year, the
Secretary and Chief Operating Officer shall
agree on, and make available to the public, a
performance plan for the PBO for the succeeding
5 years that establishes measurable goals and
objectives for the organization.
(B) Consultation.--In developing the 5-year
performance plan and any revision to the plan,
the Secretary and the Chief Operating Officer
shall consult with students, institutions of
higher education, Congress, lenders, secondary
markets, guaranty agencies, the Advisory
Committee on Student Financial Assistance, and
other interested parties not less than 30 days
prior to the implementation of the performance
plan or revision.
* * * * * * *
(2) Annual report.--Each year, the Chief Operating
Officer shall prepare and submit to Congress, through
the Secretary, an annual report on the performance of
the PBO, including an evaluation of the extent to which
the PBO met the goals and objectives contained in the
5-year performance plan described in paragraph (1) for
the preceding year. The annual report shall include the
following:
(A) * * *
(B) Financial and performance requirements
applicable to the PBO under the [Chief
Financial Officer Act of 1990 and] Chief
Financial Officers Act of 1990, the Government
Performance and Results Act of 1993, and other
relevant statutes.
(d) Chief Operating Officer.--
(1) * * *
* * * * * * *
(4) Performance agreement.--
(A) * * *
(B) Transmittal.--The final agreement, and
any revision to the final agreement, shall be
transmitted to the [Committee on Education and
the Workforce of the House of Representatives
and the Committee on Labor and Human Resources
of the Senate] authorizing committees, and made
publicly available.
* * * * * * *
(f ) Student Loan Ombudsman.--
(1) * * *
* * * * * * *
(3) Functions of ombudsman.--The Ombudsman shall--
(A) in accordance with regulations of the
Secretary, receive, review, and attempt to
resolve informally complaints from borrowers of
loans described in paragraph (1), including, as
appropriate, attempts to resolve such
complaints within the Department of Education
and with institutions of higher education,
lenders, guaranty agencies, loan servicers, and
other participants in the loan programs
described in paragraph [(1)(A)] (1); and
* * * * * * *
TITLE II--TEACHER QUALITY ENHANCEMENT
[PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS
[SEC. 201. PURPOSES; DEFINITIONS.
[(a) Purposes.--The purposes of this part are to--
[(1) improve student achievement;
[(2) improve the quality of the current and future
teaching force by improving the preparation of
prospective teachers and enhancing professional
development activities;
[(3) hold institutions of higher education
accountable for preparing teachers who have the
necessary teaching skills and are highly competent in
the academic content areas in which the teachers plan
to teach, such as mathematics, science, English,
foreign languages, history, economics, art, civics,
Government, and geography, including training in the
effective uses of technology in the classroom; and
[(4) recruit highly qualified individuals, including
individuals from other occupations, into the teaching
force.
[(b) Definitions.--In this part:
[(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 1 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 matter area, the disciplines or content
areas in which academic majors are offered by
the arts and science organizational unit.
[(2) High need local educational agency.--The term
``high need local educational agency'' means a local
educational agency that serves an elementary school or
secondary school located in an area in which there is--
[(A) a high percentage of individuals from
families with incomes below the poverty line;
[(B) a high percentage of secondary school
teachers not teaching in the content area in
which the teachers were trained to teach; or
[(C) a high teacher turnover rate.
[(3) Poverty line.--The term ``poverty line'' means
the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
[SEC. 202. STATE GRANTS.
[(a) In General.--From amounts made available under section
210(1) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible
States to enable the eligible States to carry out the
activities described in subsection (d).
[(b) Eligible State.--
[(1) Definition.--In this part, the term ``eligible
State'' means--
[(A) the Governor of a State; or
[(B) in the case of a State for which the
constitution or law of such State designates
another individual, entity, or agency in the
State to be responsible for teacher
certification and preparation activity, such
individual, entity, or agency.
[(2) Consultation.--The Governor and the individual,
entity, or agency designated under paragraph (1) shall
consult with the Governor, State board of education,
State educational agency, or State agency for higher
education, as appropriate, with respect to the
activities assisted under this section.
[(3) Construction.--Nothing in this subsection shall
be construed to negate or supersede the legal authority
under State law of any State agency, State entity, or
State public official over programs that are under the
jurisdiction of the agency, entity, or official.
[(c) Application.--To be eligible to receive a grant under
this section, an eligible State shall, at the time of the
initial grant application, submit an application to the
Secretary that--
[(1) meets the requirement of this section;
[(2) includes a description of how the eligible State
intends to use funds provided under this section; and
[(3) contains such other information and assurances
as the Secretary may require.
[(d) Uses of Funds.--An eligible State that receives a grant
under this section shall use the grant funds to reform teacher
preparation requirements, and to ensure that current and future
teachers possess the necessary teaching skills and academic
content knowledge in the subject areas in which the teachers
are assigned to teach, by carrying out 1 or more of the
following activities:
[(1) Reforms.--Implementing reforms that hold
institutions of higher education with teacher
preparation programs accountable for preparing teachers
who are highly competent in the academic content areas
in which the teachers plan to teach, and possess strong
teaching skills, which may include the use of rigorous
subject matter competency tests and the requirement
that a teacher have an academic major in the subject
area, or related discipline, in which the teacher plans
to teach.
[(2) Certification or licensure requirements.--
Reforming teacher certification or licensure
requirements to ensure that teachers have the necessary
teaching skills and academic content knowledge in the
subject areas in which teachers are assigned to teach.
[(3) Alternatives to traditional preparation for
teaching.--Providing prospective teachers with
alternatives to traditional preparation for teaching
through programs at colleges of arts and sciences or at
nonprofit educational organizations.
[(4) Alternative routes to state certification.--
Carrying out programs that--
[(A) include support during the initial
teaching
experience; and
[(B) establish, expand, or improve
alternative routes to State certification of
teachers for highly qualified individuals,
including mid-career professionals from other
occupations, paraprofessionals, former military
personnel and recent college graduates with
records of academic distinction.
[(5) Recruitment; pay; removal.--Developing and
implementing effective mechanisms to ensure that local
educational agencies and schools are able to
effectively recruit highly qualified teachers, to
financially reward those teachers and principals whose
students have made significant progress toward high
academic performance, such as through performance-based
compensation systems and access to ongoing professional
development opportunities for teachers and
administrators, and to expeditiously remove incompetent
or unqualified teachers consistent with procedures to
ensure due process for the teachers.
[(6) Social promotion.--Development and
implementation of efforts to address the problem of
social promotion and to prepare teachers to effectively
address the issues raised by ending the practice of
social promotion.
[(7) Recruitment.--Activities described in section
204(d).
[SEC. 203. PARTNERSHIP GRANTS.
[(a) Grants.--From amounts made available under section
210(2) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible
partnerships to enable the eligible partnerships to carry out
the activities described in subsections (d) and (e).
[(b) Definitions.--
[(1) Eligible partnerships.--In this part, the term
``eligible partnerships'' means an entity that--
[(A) shall include--
[(i) a partner institution;
[(ii) a school of arts and sciences;
and
[(iii) a high need local educational
agency; and
[(B) may include a Governor, State
educational agency, the State board of
education, the State agency for higher
education, an institution of higher education
not described in subparagraph (A), a public
charter school, a public or private elementary
school or secondary school, a public or private
nonprofit educational organization, a business,
a teacher organization, or a prekindergarten
program.
[(2) Partner institution.--In this section, the term
``partner institution'' means a private independent or
State-supported public institution of higher education,
the teacher training program of which demonstrates
that--
[(A) graduates from the teacher training
program 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 or areas
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
207(b); and
[(II) using the State report
card on teacher preparation
required under section 207(b),
after the first publication of
such report card and for every
year thereafter; or
[(B) the teacher training program requires
all the students of the program to participate
in intensive clinical experience, to meet high
academic standards, and--
[(i) in the case of secondary school
candidates, to successfully complete an
academic major in the subject area in
which the candidate intends to teach or
to demonstrate competence through a
high level of performance in relevant
content areas; and
[(ii) in the case of elementary
school candidates, to successfully
complete an academic major in the arts
and sciences or to demonstrate
competence through a high level of
performance in core academic subject
areas.
[(c) 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--
[(1) contain a needs assessment of all the partners
with respect to teaching and learning and a description
of how the partnership will coordinate with other
teacher training or professional development programs,
and how the activities of the partnership will be
consistent with State, local, and other education
reform activities that promote student achievement;
[(2) contain a resource assessment that describes the
resources available to the partnership, the intended
use of the grant funds, including a description of how
the grant funds will be fairly distributed in
accordance with subsection (f ), and the commitment of
the resources of the partnership to the activities
assisted under this part, including financial support,
faculty participation, time commitments, and
continuation of the activities when the grant ends; and
[(3) contain a description of--
[(A) how the partnership will meet the
purposes of this part;
[(B) how the partnership will carry out the
activities required under subsection (d) and
any permissible activities under subsection
(e); and
[(C) the partnership's evaluation plan
pursuant to section 206(b).
[(d) Required Uses of Funds.--An eligible partnership that
receives a grant under this section shall use the grant funds
to carry out the following activities:
[(1) Reforms.--Implementing reforms within teacher
preparation programs to hold the programs accountable
for preparing teachers who are highly competent in the
academic content areas in which the teachers plan to
teach, and for promoting strong teaching skills,
including working with a school of arts and sciences
and integrating reliable research-based teaching
methods into the curriculum, which curriculum shall
include programs designed to successfully integrate
technology into teaching and learning.
[(2) Clinical experience and interaction.--Providing
sustained and high quality preservice clinical
experience including the mentoring of prospective
teachers by veteran teachers, and 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) Professional development.--Creating
opportunities for enhanced and ongoing professional
development that improves the academic content
knowledge of teachers in the subject areas in which the
teachers are certified to teach or in which the
teachers are working toward certification to teach, and
that promotes strong teaching skills.
[(e) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use such funds to carry
out the following activities:
[(1) Teacher preparation and parent involvement.--
Preparing teachers to work with diverse student
populations, including individuals with disabilities
and limited English proficient individuals, and
involving parents in the teacher preparation program
reform process.
[(2) Dissemination and coordination.--Broadly
disseminating information on effective practices used
by the partnership, and coordinating with the
activities of the Governor, State board of education,
State higher education agency, and State educational
agency, as appropriate.
[(3) Managerial and leadership skills.--Developing
and implementing proven mechanisms to provide
principals and superintendents with effective
managerial and leadership skills that result in
increased student achievement.
[(4) Teacher recruitment.--Activities described in
section 204(d).
[(f ) Special Rule.--No individual member of an eligible
partnership shall retain more than 50 percent of the funds made
available to the partnership under this section.
[(g) Construction.--Nothing in this section shall be
construed to prohibit an eligible partnership from using grant
funds to coordinate with the activities of more than one
Governor, State board of education, State educational agency,
local educational agency, or State agency for higher education.
[SEC. 204. TEACHER RECRUITMENT GRANTS.
[(a) Program Authorized.--From amounts made available under
section 210(3) for a fiscal year, the Secretary is authorized
to award grants, on a competitive basis, to eligible applicants
to enable the eligible applicants to carry out activities
described in subsection (d).
[(b) Eligible Applicant Defined.--In this part, the term
``eligible applicant'' means--
[(1) an eligible State described in section 202(b);
or
[(2) an eligible partnership described in section
203(b).
[(c) Application.--Any eligible applicant desiring to receive
a grant under this section shall submit an application to the
Secretary at such time, in such form, and containing such
information as the Secretary may require, including--
[(1) a description of the assessment that the
eligible applicant, and the other entities with whom
the eligible applicant will carry out the grant
activities, have undertaken to determine the most
critical needs of the participating high-need local
educational agencies;
[(2) a description of the activities the eligible
applicant will carry out with the grant; and
[(3) a description of the eligible applicant's plan
for continuing the activities carried out with the
grant, once Federal funding ceases.
[(d) Uses of Funds.--Each eligible applicant receiving a
grant under this section shall use the grant funds--
[(1)(A) to award scholarships to help students pay
the costs of tuition, room, board, and other expenses
of completing a teacher preparation program;
[(B) to provide support services, if needed to enable
scholarship recipients to complete postsecondary
education programs; and
[(C) for followup services provided to former
scholarship recipients during the recipients first 3
years of teaching; or
[(2) to develop and implement effective mechanisms to
ensure that high need local educational agencies and
schools are able to effectively recruit highly
qualified teachers.
[(e) Service Requirements.--The Secretary shall establish
such requirements as the Secretary finds necessary to ensure
that recipients of scholarships under this section who complete
teacher education programs subsequently teach in a high-need
local educational agency, for a period of time equivalent to
the period for which the recipients receive scholarship
assistance, or repay the amount of the scholarship. The
Secretary shall use any such repayments to carry out additional
activities under this section.
[SEC. 205. ADMINISTRATIVE PROVISIONS.
[(a) Duration; One-Time Awards; Payments.--
[(1) Duration.--
[(A) Eligible states and eligible
applicants.--Grants awarded to eligible States
and eligible applicants under this part shall
be awarded for a period not to exceed 3 years.
[(B) Eligible partnerships.--Grants awarded
to eligible partnerships under this part shall
be awarded for a period of 5 years.
[(2) One-time award.--An eligible State and an
eligible partnership may receive a grant under each of
sections 202, 203, and 204 only once.
[(3) Payments.--The Secretary shall make annual
payments of grant funds awarded under this part.
[(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.--In recommending applications to the
Secretary for funding under this part, the panel
shall--
[(A) with respect to grants under section
202, give priority to eligible States serving
States that--
[(i) have initiatives to reform State
teacher certification requirements that
are designed to ensure that current and
future teachers possess the necessary
teaching skills and academic content
knowledge in the subject areas in which
the teachers are certified or licensed
to teach;
[(ii) include innovative reforms to
hold institutions of higher education
with teacher preparation programs
accountable for preparing teachers who
are highly competent in the academic
content area in which the teachers plan
to teach and have strong teaching
skills; or
[(iii) involve the development of
innovative efforts aimed at reducing
the shortage of highly qualified
teachers in high poverty urban and
rural areas;
[(B) with respect to grants under section
203--
[(i) give priority to applications
from eligible partnerships that involve
businesses; and
[(ii) take into consideration--
[(I) providing an equitable
geographic distribution of the
grants throughout the United
States; and
[(II) the potential of the
proposed activities for
creating improvement and
positive change.
[(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which
application 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.
[(c) Matching Requirements.--
[(1) State grants.--Each eligible State receiving a
grant under section 202 or 204 shall provide, from non-
Federal sources, an amount equal to 50 percent of the
amount of the grant (in cash or in kind) to carry out
the activities supported by the grant.
[(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 or 204 shall
provide, from non-Federal sources (in cash or in kind),
an amount equal to 25 percent of the grant for the
first year of the grant, 35 percent of the grant for
the second year of the grant, and 50 percent of the
grant for each succeeding year of the grant.
[(d) Limitation on Administrative Expenses.--An eligible
State or eligible partnership that receives a grant under this
part may not use more than 2 percent of the grant funds for
purposes of administering the grant.
[(e) Teacher Qualifications Provided to Parents Upon
Request.--Any local educational agency or school that benefits
from the activities assisted under this part shall make
available, upon request and in an understandable and uniform
format, to any parent of a student attending any school served
by the local educational agency, information regarding the
qualification of the student's classroom teacher with regard to
the subject matter in which the teacher provides instruction.
The local educational agency shall inform parents that the
parents are entitled to receive the information upon request.
[SEC. 206. ACCOUNTABILITY AND EVALUATION.
[(a) State Grant Accountability Report.--An eligible State
that receives a grant under section 202 shall submit an annual
accountability report to the Secretary, the Committee on Labor
and Human Resources of the Senate, and the Committee on
Education and the Workforce of the House of Representatives.
Such report shall include a description of the degree to which
the eligible State, in using funds provided under such section,
has made substantial progress in meeting the following goals:
[(1) Student achievement.--Increasing student
achievement for all students as defined by the eligible
State.
[(2) Raising standards.--Raising the State academic
standards required to enter the teaching profession,
including, where appropriate, through the use of
incentives to incorporate the requirement of an
academic major in the subject, or related discipline,
in which the teacher plans to teach.
[(3) Initial certification or licensure.--Increasing
success in the pass rate for initial State teacher
certification or licensure, or increasing the numbers
of highly qualified individuals being certified or
licensed as teachers through alternative programs.
[(4) Core academic subjects.--
[(A) Secondary school classes.--Increasing
the percentage of secondary school classes
taught in core academic subject areas by
teachers--
[(i) with academic majors in those
areas or in a related field;
[(ii) who can demonstrate a high
level of competence through rigorous
academic subject area tests; or
[(iii) who can demonstrate competence
through a high level of performance in
relevant content areas.
[(B) Elementary school classes.--Increasing
the percentage of elementary school classes
taught by teachers--
[(i) with academic majors in the arts
and sciences; or
[(ii) who can demonstrate competence
through a high level of performance in
core academic subjects.
[(5) Decreasing teacher shortages.--Decreasing
shortages of qualified teachers in poor urban and rural
areas.
[(6) Increasing opportunities for professional
development.--Increasing opportunities for enhanced and
ongoing professional development that improves the
academic content knowledge of teachers in the subject
areas in which the teachers are certified or licensed
to teach or in which the teachers are working toward
certification or licensure to teach, and that promotes
strong teaching skills.
[(7) Technology integration.--Increasing the number
of teachers prepared to integrate technology in the
classroom.
[(b) Eligible Partnership Evaluation.--Each eligible
partnership receiving a grant under section 203 shall establish
and include in the application submitted under section 203(c),
an evaluation plan that includes strong performance objectives.
The plan shall include objectives and measures for--
[(1) increased student achievement for all students
as measured by the partnership;
[(2) increased teacher retention in the first 3 years
of a teacher's career;
[(3) increased success in the pass rate for initial
State certification or licensure of teachers; and
[(4) increased percentage of secondary school classes
taught in core academic subject areas by teachers--
[(A) with academic majors in the areas or in
a related field; and
[(B) who can demonstrate a high level of
competence through rigorous academic subject
area tests or who can demonstrate competence
through a high level of performance in relevant
content areas;
[(5) increasing the percentage of elementary school
classes taught by teachers with academic majors in the
arts and sciences or who demonstrate competence through
a high level of performance in core academic subject
areas; and
[(6) increasing the number of teachers trained in
technology.
[(c) Revocation of Grant.--
[(1) Report.--Each eligible State or eligible
partnership receiving a grant under this part shall
report annually on the progress of the eligible State
or eligible partnership toward meeting the purposes of
this part and the goals, objectives, and measures
described in subsections (a) and (b).
[(2) Revocation.--
[(A) Eligible states and eligible
applicants.--If the Secretary determines that
an eligible State or eligible applicant is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the second year of a
grant under this part, then the grant payment
shall not be made for the third year of the
grant.
[(B) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the third year of a
grant under this part, then the grant payments
shall not be made for any succeeding year of
the grant.
[(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report the
Secretary's findings regarding the activities to the Committee
on Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives.
The Secretary shall broadly disseminate successful practices
developed by eligible States and eligible partnerships under
this part, and shall broadly disseminate information regarding
such practices that were found to be ineffective.
[SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
[(a) Development of Definitions and Reporting Methods.--
Within 9 months of the date of enactment of the Higher
Education Amendments of 1998, the Commissioner of the National
Center for Education Statistics, in consultation with States
and institutions of higher education, shall develop key
definitions for terms, and uniform reporting methods (including
the key definitions for the consistent reporting of pass
rates), related to the performance of elementary school and
secondary school teacher preparation programs.
[(b) State Report Card on the Quality of Teacher
Preparation.--Each State that receives funds under this Act
shall provide to the Secretary, within 2 years of the date of
enactment of the Higher Education Amendments of 1998, and
annually thereafter, in a uniform and comprehensible manner
that conforms with the definitions and methods established in
subsection (a), a State report card on the quality of teacher
preparation in the State, which shall include at least the
following:
[(1) A description of the teacher certification and
licensure assessments, and any other certification and
licensure requirements, used by the State.
[(2) The standards and criteria that prospective
teachers must meet in order to attain initial teacher
certification or licensure and to be certified or
licensed to teach particular subjects or in particular
grades within the State.
[(3) A description of the extent to which the
assessments and requirements described in paragraph (1)
are aligned with the State's standards and assessments
for students.
[(4) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher
certification and licensure, and the passing score on
each assessment that determines whether a candidate has
passed that assessment.
[(5) The percentage of teaching candidates who passed
each of the assessments used by the State for teacher
certification and licensure, disaggregated and ranked,
by the teacher preparation program in that State from
which the teacher candidate received the candidate's
most recent degree, which shall be made available
widely and publicly.
[(6) Information on the extent to which teachers in
the State are given waivers of State certification or
licensure requirements, including the proportion of
such teachers distributed across high- and low-poverty
school districts and across subject areas.
[(7) A description of each State's alternative routes
to teacher certification, if any, and the percentage of
teachers certified through alternative certification
routes who pass State teacher certification or
licensure assessments.
[(8) For each State, a description of proposed
criteria for assessing the performance of teacher
preparation programs within institutions of higher
education in the State, including indicators of teacher
candidate knowledge and skills.
[(9) Information on the extent to which teachers or
prospective teachers in each State are required to take
examinations or other assessments of their subject
matter knowledge in the area or areas in which the
teachers provide instruction, the standards established
for passing any such assessments, and the extent to
which teachers or prospective teachers are required to
receive a passing score on such assessments in order to
teach in specific subject areas or grade levels.
[(c) Initial Report.--
[(1) In general.--Each State that receives funds
under this Act, not later than 6 months of the date of
enactment of the Higher Education Amendments of 1998
and in a uniform and comprehensible manner, shall
submit to the Secretary the information described in
paragraphs (1), (5), and (6) of subsection (b). Such
information shall be compiled by the Secretary and
submitted to the Committee on Labor and Human Resources
of the Senate and the Committee on Education and the
Workforce of the House of Representatives not later
than 9 months after the date of enactment of the Higher
Education Amendments of 1998.
[(2) Construction.--Nothing in this subsection shall
be construed to require a State to gather information
that is not in the possession of the State or the
teacher preparation programs in the State, or readily
available to the State or teacher preparation programs.
[(d) Report of the Secretary on the Quality of Teacher
Preparation.--
[(1) Report card.--The Secretary shall provide to
Congress, and publish and make widely available, a
report card on teacher qualifications and preparation
in the United States, including all the information
reported in paragraphs (1) through (9) of subsection
(b). Such report shall identify States for which
eligible States and eligible partnerships received a
grant under this part. Such report shall be so
provided, published and made available not later than 2
years 6 months after the date of enactment of the
Higher Education Amendments of 1998 and annually
thereafter.
[(2) Report to congress.--The Secretary shall report
to Congress--
[(A) a comparison of States' efforts to
improve teaching quality; and
[(B) regarding the national mean and median
scores on any standardized test that is used in
more than 1 State for teacher certification or
licensure.
[(3) Special rule.--In the case of teacher
preparation programs with fewer than 10 graduates
taking any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish information with
respect to an average pass rate on State certification
or licensure assessments taken over a 3-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.
[(f ) Institutional Report Cards on the Quality of Teacher
Preparation.--
[(1) Report card.--Each institution of higher
education that conducts a teacher preparation program
that enrolls students receiving Federal assistance
under this Act, not later than 18 months after the date
of enactment of the Higher Education Amendments of 1998
and annually thereafter, shall report to the State and
the general public, in a uniform and comprehensible
manner that conforms with the definitions and methods
established under subsection (a), the following
information:
[(A) Pass rate.--(i) For the most recent year
for which the information is available, the
pass rate of the institution's graduates on the
teacher certification or licensure assessments
of the State in which the institution is
located, but only for those students who took
those assessments within 3 years of completing
the program.
[(ii) A comparison of the program's pass rate
with the average pass rate for programs in the
State.
[(iii) In the case of teacher preparation
programs with fewer than 10 graduates taking
any single initial teacher certification or
licensure assessment during an academic year,
the institution shall collect and publish
information with respect to an average pass
rate on State certification or licensure
assessments taken over a 3-year period.
[(B) Program information.--The number of
students in the program, the average number of
hours of supervised practice teaching required
for those in the program, and the faculty-
student ratio in supervised practice teaching.
[(C) Statement.--In States that approve or
accredit teacher education programs, a
statement of whether the institution's program
is so approved or accredited.
[(D) Designation as low-performing.--Whether
the program has been designated as low-
performing by the State under section 208(a).
[(2) Requirement.--The information described in
paragraph (1) shall be reported through publications
such as school catalogs and promotional materials sent
to potential applicants, secondary school guidance
counselors, and prospective employers of the
institution's program graduates.
[(3) Fines.--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to
exceed $25,000 on an institution of higher education
for failure to provide the information described in
this subsection in a timely or accurate manner.
[SEC. 208. STATE FUNCTIONS.
[(a) State Assessment.--In order to receive funds under this
Act, a State, not later than 2 years after the date of
enactment of the Higher Education Amendments of 1998, shall
have in place a procedure to identify, and assist, through the
provision of technical assistance, low-performing programs of
teacher preparation within institutions of higher education.
Such State shall provide the Secretary an annual list of such
low-performing institutions that includes an identification of
those institutions at-risk of being placed on such list. Such
levels of performance shall be determined solely by the State
and may include criteria based upon information collected
pursuant to this part. Such assessment shall be described in
the report under section 207(b).
[(b) Termination of Eligibility.--Any institution of higher
education that offers a program of teacher preparation in which
the State has withdrawn the State's approval or terminated the
State's financial support due to the low performance of the
institution's teacher preparation 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 of Education; and
[(2) shall not be permitted to accept or enroll any
student that receives aid under title IV of this Act in
the institution's teacher preparation program.
[(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.
[SEC. 209. GENERAL PROVISIONS.
[(a) Methods.--In complying with sections 207 and 208, the
Secretary shall ensure that States and institutions of higher
education use fair and equitable methods in reporting and that
the reporting methods protect the privacy of individuals.
[(b) Special Rule.--For each State in which there are no
State certification or licensure assessments, or for States
that do not set minimum performance levels on those
assessments--
[(1) the Secretary shall, 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, the Secretary shall use such data to carry out
requirements of this part related to assessments or
pass rates.
[(c) Limitations.--
[(1) Federal control prohibited.--Nothing in this
part 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 part.
[(2) No change in state control encouraged or
required.--Nothing in this part 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.
[(3) National system of teacher certification
prohibited.--Nothing in this part shall be construed to
permit, allow, encourage, or authorize the Secretary to
establish or support any national system of teacher
certification.
[SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part $300,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years, of which--
[(1) 45 percent shall be available for each fiscal
year to award grants under section 202;
[(2) 45 percent shall be available for each fiscal
year to award grants under section 203; and
[(3) 10 percent shall be available for each fiscal
year to award grants under section 204.]
PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS
SEC. 201. PURPOSES; DEFINITIONS.
(a) Purposes.--The purposes of this part are to--
(1) improve student academic achievement;
(2) improve the quality of the current and future
teaching force by improving the preparation of
prospective teachers and enhancing professional
development activities;
(3) hold institutions of higher education accountable
for preparing highly qualified teachers; and
(4) recruit qualified individuals, including
minorities and individuals from other occupations, into
the teaching force.
(b) Definitions.--In this part:
(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 matter area, the disciplines or content
areas in which academic majors are offered by
the arts and science organizational unit.
(2) Exemplary teacher.--The term ``exemplary
teacher'' has the meaning given such term in section
9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
(3) Highly qualified.--The term ``highly qualified''
when used with respect to an individual means that the
individual is highly qualified as determined under
section 9101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801) or section 602 of the
Individuals with Disabilities Education Act (20 U.S.C.
1401).
(4) High-need local educational agency.--The term
``high-need local educational agency'' means a local
educational agency--
(A)(i)(I) that serves not fewer than 10,000
children from families with incomes below the
poverty line; or
(II) for which not less than 25 percent of
the children served by the agency are from
families with incomes below the poverty line;
(ii) that is among those serving the highest
number or percentage of children from families
with incomes below the poverty line in the
State, but this clause applies only in a State
that has no local educational agency meeting
the requirements of clause (i); or
(iii) with a total of less than 600 students
in average daily attendance at the schools that
are served by the agency and all of whose
schools are designated with a school locale
code of 7, as determined by the Secretary; and
(B)(i) for which there is a high percentage
of teachers not teaching in the academic
subjects or grade levels that the teachers were
trained to teach; or
(ii) for which there is a high percentage of
teachers with emergency, provisional, or
temporary certification or licensing.
(5) Poverty line.--The term ``poverty line'' means
the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
(6) Professional development.--The term
``professional development'' has the meaning given such
term in section 9101 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7801).
(7) 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 (20
U.S.C. 6368).
(8) Scientifically based research.--The term
``scientifically based research'' has the meaning given
such term in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
(9) Teaching skills.--The term ``teaching skills''
means skills that--
(A) are based on scientifically based
research;
(B) enable teachers to effectively convey and
explain subject matter content;
(C) lead to increased student academic
achievement; and
(D) use strategies that--
(i) are specific to subject matter;
(ii) include ongoing assessment of
student learning;
(iii) focus on identification and
tailoring of academic instruction to
students's specific learning needs; and
(iv) focus on classroom management.
SEC. 202. STATE GRANTS.
(a) In General.--From amounts made available under section
210(1) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible
States to enable the eligible States to carry out the
activities described in subsection (d).
(b) Eligible State.--
(1) Definition.--In this part, the term ``eligible
State'' means--
(A) the Governor of a State; or
(B) in the case of a State for which the
constitution or law of such State designates
another individual, entity, or agency in the
State to be responsible for teacher
certification and preparation activity, such
individual, entity, or agency.
(2) Consultation.--The Governor or the individual,
entity, or agency designated under paragraph (1)(B)
shall consult with the Governor, State board of
education, State educational agency, State agency for
higher education, or State agency responsible for early
childhood education and programs, as appropriate, with
respect to the activities assisted under this section.
(3) Construction.--Nothing in this subsection shall
be construed to negate or supersede the legal authority
under State law of any State agency, State entity, or
State public official over programs that are under the
jurisdiction of the agency, entity, or official.
(c) Application.--To be eligible to receive a grant under
this section, an eligible State shall submit an application to
the Secretary that--
(1) meets the requirement of this section;
(2) demonstrates that the State is in full compliance
with sections 207 and 208;
(3) includes a description of how the eligible State
intends to use funds provided under this section;
(4) includes measurable objectives for the use of the
funds provided under the grant;
(5) demonstrates the State has submitted and is
actively implementing a plan that meets the
requirements of sections 1111(h)(1)(C)(viii) and 1119
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311(h)(1)(C)(viii) and 6319); and
(6) contains such other information and assurances as
the Secretary may require.
(d) Uses of Funds.--An eligible State that receives a grant
under this section shall use the grant funds to reform teacher
preparation requirements, to coordinate with State activities
under section 2113(c) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6613(c)), and to ensure that current and
future teachers are highly qualified, by carrying out one or
more of the following activities:
(1) Reforms.--Ensuring that all teacher preparation
programs in the State are preparing teachers who are
highly qualified, are able to understand scientifically
based research and its applicability, and are able to
use advanced technology effectively in the classroom,
including use for instructional techniques to improve
student academic achievement, by assisting such
programs--
(A) to retrain faculty; and
(B) to design (or redesign) teacher
preparation programs so they--
(i) are based on rigorous academic
content, scientifically based research
(including scientifically based reading
research), and challenging State
student academic content standards; and
(ii) promote strong teaching skills.
(2) Certification or licensure requirements.--
Reforming teacher certification (including
recertification) or licensing requirements to ensure
that--
(A) teachers have the subject matter
knowledge and teaching skills in the academic
subjects that the teachers teach that are
necessary to help students meet challenging
State student academic achievement standards;
and
(B) such requirements are aligned with
challenging State academic content standards.
(3) Alternatives to traditional teacher preparation
and state certification.--Providing prospective
teachers with alternative routes to State certification
and traditional preparation to become highly qualified
teachers through--
(A) innovative approaches that reduce
unnecessary barriers to State certification
while producing highly qualified teachers,
which may include articulation agreements
between institutions of higher education;
(B) programs that provide support to teachers
during their initial years in the profession;
and
(C) alternative routes to State certification
of teachers for qualified individuals,
including mid-career professionals from other
occupations, former military personnel, and
recent college graduates with records of
academic distinction.
(4) Innovative programs.--Planning and implementing
innovative programs to enhance the ability of
institutions of higher education to prepare highly
qualified teachers, such as charter colleges of
education or university and local educational agency
partnership schools, that--
(A) permit flexibility in meeting State
requirements as long as graduates, during their
initial years in the profession, increase
student academic achievement;
(B) provide long-term data gathered from
teachers' performance over multiple years in
the classroom on the ability to increase
student academic achievement;
(C) ensure high-quality preparation of
teachers from underrepresented groups; and
(D) create performance measures that can be
used to document the effectiveness of
innovative methods for preparing highly
qualified teachers.
(5) Merit pay.--Developing, or assisting local
educational agencies in developing--
(A) merit-based performance systems that
reward teachers who increase student academic
achievement; and
(B) strategies that provide differential and
bonus pay in high-need local educational
agencies to retain--
(i) principals;
(ii) highly qualified teachers who
teach in high-need academic subjects,
such as reading, mathematics, and
science;
(iii) highly qualified teachers who
teach in schools identified for school
improvement under section 1116(b) of
the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 6316(b));
(iv) special education teachers;
(v) teachers specializing in teaching
limited English proficient children;
and
(vi) highly qualified teachers in
urban and rural schools or districts.
(6) Teacher advancement.--Developing, or assisting
local educational agencies in developing, teacher
advancement and retention initiatives that promote
professional growth and emphasize multiple career paths
(such as paths to becoming a highly qualified mentor
teacher or exemplary teacher) and pay differentiation.
(7) Teacher removal.--Developing and implementing
effective mechanisms to ensure that local educational
agencies and schools are able to remove expeditiously
incompetent or unqualified teachers consistent with
procedures to ensure due process for the teachers.
(8) Technical assistance.--Providing technical
assistance to low-performing teacher preparation
programs within institutions of higher education
identified under section 208(a).
(9) Teacher effectiveness.--Developing--
(A) systems to measure the effectiveness of
teacher preparation programs and professional
development programs; and
(B) strategies to document gains in student
academic achievement or increases in teacher
mastery of the academic subjects the teachers
teach as a result of such programs.
(10) Teacher recruitment and retention.--Undertaking
activities that--
(A) develop and implement effective
mechanisms to ensure that local educational
agencies and schools are able effectively to
recruit and retain highly qualified teachers;
or
(B) are described in section 204(d).
(11) Early childhood educator.--Developing
strategies--
(A) to improve the qualifications of
preschool teachers, which may include State
certification for such teachers;
(B) to improve and expand preschool teacher
preparation programs; and
(C) to reduce unnecessary burdens to the
attainment of a bachelor's degree in early
childhood education and increase the number of
bilingual early childhood educators, which may
include developing articulation agreements
between institutions of higher education.
(12) Gifted and talented students.--Incorporating the
learning needs of gifted and talented students into the
activities described in paragraph (1), (2), or (3) in
order to ensure that new teachers possess the basic
knowledge and skills necessary to meet the educational
needs of gifted and talented students.
(13) New-teacher mentoring on the needs of gifted and
talented students.-- Establishing or expanding new-
teacher mentoring and assessment programs (including
induction and evaluation programs) that are a part of a
licensure process which is designed to demonstrate that
new teachers possess basic knowledge of the classroom
indicators of giftedness, are able to identify student
learning differences among gifted students, and are
able to provide instruction to accommodate such
differences.
(14) Special education, math, and science faculty.--
Supporting the development of new special education,
math, and science faculty positions in institutions of
higher education dedicated to the preparation of highly
qualified special education, math, and science teachers
(as defined by section 9101 of the Elementary and
Secondary Education Act or section 602 of the
Individuals with Disabilities Education Act), with
matching funds from institutions of higher education
and a commitment to continue new faculty positions when
Federal funding ends.
(15) Subject area evaluation.--Assessing the
performance of teacher preparation programs within
institutions of higher education in the State using an
assessment which provides comparisons across such
schools in the State based upon indicators including
teacher candidate knowledge in subject areas in which
such candidate has been prepared to teach. Such
information shall be made publicly available and widely
disseminated.
(e) Evaluation.--
(1) Evaluation system.--An eligible State that
receives a grant under this section shall develop and
utilize a system to evaluate annually the effectiveness
of teacher preparation programs and professional
development activities within the State in producing
gains in--
(A) the teacher's annual contribution to
improving student academic achievement, as
measured by State academic assessments required
under section 1111(b)(3) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C.
6311(b)(3)); and
(B) teacher mastery of the academic subjects
they teach, as measured by pre- and post-
participation tests of teacher knowledge, as
appropriate.
(2) Use of evaluation system.--Such evaluation system
shall be used by the State to evaluate--
(A) activities carried out using funds
provided under this section; and
(B) the quality of its teacher education
programs.
(3) Public reporting.--The State shall make the
information described in paragraph (1) widely available
through public means, such as posting on the Internet,
distribution to the media, and distribution through
public agencies.
SEC. 203. PARTNERSHIP GRANTS.
(a) Grants.--From amounts made available under section 210(2)
for a fiscal year, the Secretary is authorized to award grants
under this section, on a competitive basis, to eligible
partnerships to enable the eligible partnerships to carry out
the activities described in subsections (d) and (e).
(b) Definitions.--
(1) Eligible partnerships.--In this part, the term
``eligible partnership'' means an entity that--
(A) shall include--
(i) a partner institution;
(ii) a school of arts and sciences;
(iii) a high-need local educational
agency; and
(iv) a public or private educational
organization; and
(B) may include a Governor, State educational
agency, the State board of education, the State
agency for higher education, an institution of
higher education not described in subparagraph
(A), a public charter school, a public or
private elementary school or secondary school,
a public or private educational organization, a
business, a science-, mathematics-, or
technology-oriented entity, a faith-based or
community organization, a prekindergarten
program, a teacher organization, an education
service agency, a consortia of local
educational agencies, or a nonprofit
telecommunications entity.
(2) Partner institution.--In this section, the term
``partner institution'' means an institution of higher
education, the teacher training program of which
demonstrates that--
(A) graduates from the teacher training
program exhibit strong performance on State-
determined qualifying assessments for new
teachers through--
(i) demonstrating that 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 or areas
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
207(a); and
(II) using the State report
card on teacher preparation
required under section 207(a);
or
(B) the teacher training program requires all
the students of the program to participate in
intensive clinical experience, to meet high
academic standards, and--
(i) in the case of secondary school
candidates, to successfully complete an
academic major in the subject area in
which the candidate intends to teach or
to demonstrate competence through a
high level of performance in relevant
content areas; and
(ii) in the case of elementary school
candidates, to successfully complete an
academic major in the arts and sciences
or to demonstrate competence through a
high level of performance in core
academic subject areas.
(c) 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--
(1) contain a needs assessment of all the partners
with respect to teaching and learning and a description
of how the partnership will coordinate with other
teacher training or professional development programs,
and how the activities of the partnership will be
consistent with State, local, and other education
reform activities that promote student academic
achievement;
(2) contain a resource assessment that describes the
resources available to the partnership, the intended
use of the grant funds, including a description of how
the grant funds will be used in accordance with
subsection (f), and the commitment of the resources of
the partnership to the activities assisted under this
part, including financial support, faculty
participation, time commitments, and continuation of
the activities when the grant ends;
(3) contain a description of--
(A) how the partnership will meet the
purposes of this part;
(B) how the partnership will carry out the
activities required under subsection (d) and
any permissible activities under subsection
(e);
(C) the partnership's evaluation plan
pursuant to section 206(b);
(D) how faculty of the teacher preparation
program at the partner institution will serve,
over the term of the grant, with highly
qualified teachers in the classrooms of the
high-need local educational agency included in
the partnership;
(E) how the partnership will ensure that
teachers, principals, and superintendents in
private elementary and secondary schools
located in the geographic areas served by an
eligible partnership under this section will
participate equitably in accordance with
section 9501 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7881);
(F) how the partnership will design and
implement a clinical program component that
includes close supervision of student teachers
by faculty of the teacher preparation program
at the partner institution and mentor teachers;
(G) how the partnership will design and
implement an induction program to support all
new teachers through the first 3 years of
teaching that includes mentors who are trained
and compensated by the partnership for their
work with new teachers; and
(H) how the partnership will collect,
analyze, and use data on the retention of all
teachers in schools located in the geographic
areas served by the partnership to evaluate the
effectiveness of its teacher support system;
and
(4) contain a certification from the high-need local
educational agency included in the partnership that it
has reviewed the application and determined that the
grant proposed will comply with subsection (f).
(d) Required Uses of Funds.--An eligible partnership that
receives a grant under this section shall use the grant funds
to reform teacher preparation requirements, to coordinate with
State activities under section 2113(c) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6613(c)), and to
ensure that current and future teachers are highly qualified,
by carrying out one or more of the following activities:
(1) Reforms.--Implementing reforms within teacher
preparation programs to ensure that such programs are
preparing teachers who are highly qualified, are able
to understand scientifically based research and its
applicability, and are able to use advanced technology
effectively in the classroom, including use for
instructional techniques to improve student academic
achievement, by--
(A) retraining faculty; and
(B) designing (or redesigning) teacher
preparation programs so they--
(i) are based on rigorous academic
content, scientifically based research
(including scientifically based reading
research), and challenging State
student academic content standards; and
(ii) promote strong teaching skills.
(2) Clinical experience and interaction.--Providing
sustained and high-quality preservice and in-service
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 for teachers, including
preparation time and release time, for such
interaction.
(3) Professional development.--Creating opportunities
for enhanced and ongoing professional development that
improves the academic content knowledge of teachers in
the subject areas in which the teachers are certified
to teach or in which the teachers are working toward
certification to teach, and that promotes strong
teaching skills.
(4) Teacher preparation.--Developing, or assisting
local educational agencies in developing, professional
development activities that--
(A) provide training in how to teach and
address the needs of students with different
learning styles, particularly students with
disabilities, limited English proficient
students, gifted and talented students, and
students with special learning needs; and
(B) provide training in methods of--
(i) improving student behavior in the
classroom; and
(ii) identifying early and
appropriate interventions to help
students described in subparagraph (A)
learn.
(e) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use such funds to carry
out the following activities:
(1) Alternatives to traditional teacher preparation
and state certification.--Providing prospective
teachers with alternative routes to State certification
and traditional preparation to become highly qualified
teachers through--
(A) innovative approaches that reduce
unnecessary barriers to teacher preparation
producing highly qualified teachers, which may
include articulation agreements between
institutions of higher education;
(B) programs that provide support during a
teacher's initial years in the profession; and
(C) alternative routes to State certification
of teachers for qualified individuals,
including mid-career professionals from other
occupations, former military personnel, and
recent college graduates with records of
academic distinction.
(2) Dissemination and coordination.--Broadly
disseminating information on effective practices used
by the partnership, and coordinating with the
activities of the Governor, State board of education,
State higher education agency, and State educational
agency, as appropriate.
(3) Managerial and leadership skills.--Developing and
implementing professional development programs for
principals and superintendents that enable them to be
effective school leaders and prepare all students to
meet challenging State academic content and student
academic achievement standards.
(4) Teacher recruitment.--Activities--
(A) to encourage students to become highly
qualified teachers, such as extracurricular
enrichment activities; and
(B) activities described in section 204(d).
(5) Clinical experience in science, mathematics, and
technology.--Creating opportunities for clinical
experience and training, by participation in the
business, research, and work environments with
professionals, in areas relating to science,
mathematics, and technology for teachers and
prospective teachers, including opportunities for use
of laboratory equipment, in order for the teacher to
return to the classroom for at least 2 years and
provide instruction that will raise student academic
achievement.
(6) Coordination with community colleges.--
Coordinating with community colleges to implement
teacher preparation programs, including through
distance learning or articulation agreements, for the
purposes of allowing prospective teachers--
(A) to attain a bachelor's degree and State
certification or licensure; and
(B) to become highly qualified teachers.
(7) Teacher mentoring.--Establishing or implementing
a teacher mentoring program that--
(A) includes minimum qualifications for
mentors;
(B) provides training and stipends for
mentors;
(C) provides mentoring programs for teachers
in their first 3 years of teaching;
(D) provides regular and ongoing
opportunities for mentors and mentees to
observe each other's teaching methods in
classroom settings during the school day;
(E) establishes an evaluation and
accountability plan for activities conducted
under this paragraph that includes rigorous
objectives to measure the impact of such
activities; and
(F) provides for a report to the Secretary on
an annual basis regarding the partnership's
progress in meeting the objectives described in
subparagraph (E).
(8) Computer software for multilingual education.--
Training teachers to use computer software for
multilingual education to address the needs of limited
English proficient students.
(9) Gifted and talented students.--Increasing the
knowledge and skills of preservice teachers
participating in activities under subsection (d) in the
educational and related needs of gifted and talented
students by, among other strategies, infusing teacher
coursework with units on the characteristics of high-
ability learners, using assessments to identify
preexisting knowledge and skills among students, and
developing teaching strategies that are driven by the
learner's progress.
(10) Reducing the shortage of highly qualified
special education, math, and science teachers.--
Increasing the number of highly qualified special
education, math, and science teachers (as defined by
section 9101 of the Elementary and Secondary Education
Act or section 602 of the Individuals with Disabilities
Education Act) through such activities as recruitment,
scholarships for tuition, and new teacher mentoring.
(f) Special Rule.--At least 50 percent of the funds made
available to an eligible partnership under this section shall
be used directly to benefit the high-need local educational
agency included in the partnership. Any entity described in
subsection (b)(1)(A) may be the fiscal agent under this
section.
(g) Construction.--Nothing in this section shall be construed
to prohibit an eligible partnership from using grant funds to
coordinate with the activities of more than one Governor, State
board of education, State educational agency, local educational
agency, or State agency for higher education.
(h) 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 the purposes of this section.
SEC. 204. TEACHER RECRUITMENT GRANTS.
(a) Program Authorized.--From amounts made available under
section 210(3) for a fiscal year, the Secretary is authorized
to award grants, on a competitive basis, to eligible applicants
to enable the eligible applicants to carry out activities
described in subsection (d).
(b) Eligible Applicant Defined.--In this part, the term
``eligible applicant'' means--
(1) an eligible State described in section 202(b); or
(2) an eligible partnership described in section
203(b).
(c) Application.--Any eligible applicant desiring to receive
a grant under this section shall submit an application to the
Secretary at such time, in such form, and containing such
information as the Secretary may require, including--
(1) a description of the assessment that the eligible
applicant, and the other entities with whom the
eligible applicant will carry out the grant activities,
have undertaken to determine the most critical needs of
the participating high-need local educational agencies;
(2) a description of the activities the eligible
applicant will carry out with the grant, including the
extent to which the applicant will use funds to recruit
minority students to become highly qualified teachers;
and
(3) a description of the eligible applicant's plan
for continuing the activities carried out with the
grant, once Federal funding ceases.
(d) Uses of Funds.--Each eligible applicant receiving a grant
under this section shall use the grant funds--
(1)(A) to award scholarships to help students, such
as individuals who have been accepted for their first
year, or who are enrolled in their first or second
year, of a program of undergraduate education at an
institution of higher education, pay the costs of
tuition, room, board, and other expenses of completing
a teacher preparation program;
(B) to provide support services, if needed to enable
scholarship recipients--
(i) to complete postsecondary education
programs; or
(ii) to transition from a career outside of
the field of education into a teaching career;
and
(C) for followup services provided to former
scholarship recipients during the recipients first 3
years of teaching; or
(2) to develop and implement effective mechanisms to
ensure that high-need local educational agencies and
schools are able effectively to recruit highly
qualified teachers.
(e) Additional Discretionary Uses of Funds.--In addition to
the uses described in subsection (d), each eligible applicant
receiving a grant under this section may use the grant funds--
(1) to develop and implement effective mechanisms to
recruit into the teaching profession employees from--
(A) high-demand industries, including
technology industries; and
(B) the fields of science, mathematics, and
engineering;
(2) to conduct outreach and coordinate with inner
city and rural secondary schools to encourage students
to pursue teaching as a career;
(3) to develop and implement dual degree programs
that enable students at institutions of higher
education to earn two undergraduate degrees
concurrently, one of such degrees being in education
and the other in the subject matter of the student's
choosing; and
(4) to recruit high achieving students, bilingual
students, and other qualified candidates into early
childhood education programs.
(f) Service Requirements.--
(1) In general.--The Secretary shall establish such
requirements as the Secretary determines necessary to
ensure that recipients of scholarships under this
section who complete teacher education programs--
(A) subsequently teach in a high-need local
educational agency for a period of time
equivalent to--
(i) one year; increased by
(ii) the period for which the
recipient received scholarship
assistance; or
(B) repay the amount of the scholarship.
(2) Use of repayments.--The Secretary shall use any
such repayments to carry out additional activities
under this section.
(g) Priority.--The Secretary shall give priority under this
section to eligible applicants who provide an assurance that
they will recruit a high percentage of minority students to
become highly qualified teachers.
SEC. 205. ADMINISTRATIVE PROVISIONS.
(a) Duration; One-Time Awards; Payments.--
(1) Duration.--
(A) Eligible states and eligible
applicants.--Grants awarded to eligible States
and eligible applicants under this part shall
be awarded for a period not to exceed 3 years.
(B) Eligible partnerships.--Grants awarded to
eligible partnerships under this part shall be
awarded for a period of 5 years.
(2) One-time award.--An eligible partnership may
receive a grant under each of sections 203 and 204, as
amended by the College Access and Opportunity Act of
2005, only once.
(3) Payments.--The Secretary shall make annual
payments of grant funds awarded under this part.
(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.--In recommending applications to the
Secretary for funding under this part, the panel
shall--
(A) with respect to grants under section 202,
give priority to eligible States that--
(i) have initiatives to reform State
teacher certification requirements that
are based on rigorous academic content,
scientifically based research,
including scientifically based reading
research, and challenging State student
academic content standards;
(ii) have innovative reforms to hold
institutions of higher education with
teacher preparation programs
accountable for preparing teachers who
are highly qualified and have strong
teaching skills; or
(iii) have innovative efforts aimed
at reducing the shortage of highly
qualified teachers in high poverty
urban and rural areas; and
(B) with respect to grants under section
203--
(i) give priority to applications
from broad-based eligible partnerships
that involve businesses and community
organizations; and
(ii) take into consideration--
(I) providing an equitable
geographic distribution of the
grants throughout the United
States; and
(II) the potential of the
proposed activities for
creating improvement and
positive change.
(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which
application 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.
(c) Matching Requirements.--
(1) State grants.--Each eligible State receiving a
grant under section 202 or 204 shall provide, from non-
Federal sources, an amount equal to 50 percent of the
amount of the grant (in cash or in kind) to carry out
the activities supported by the grant.
(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 or 204 shall
provide, from non-Federal sources (in cash or in kind),
an amount equal to 25 percent of the grant for the
first year of the grant, 35 percent of the grant for
the second year of the grant, and 50 percent of the
grant for each succeeding year of the grant.
(d) Limitation on Administrative Expenses.--An eligible State
or eligible partnership that receives a grant under this part
may not use more than 2 percent of the grant funds for purposes
of administering the grant.
SEC. 206. ACCOUNTABILITY AND EVALUATION.
(a) State Grant Accountability Report.--An eligible State
that receives a grant under section 202 shall submit an annual
accountability report to the Secretary and the authorizing
committees. Such report shall include a description of the
degree to which the eligible State, in using funds provided
under such section, has made substantial progress in meeting
the following goals:
(1) Percentage of highly qualified teachers.--
Increasing the percentage of highly qualified teachers
in the State as required by section 1119 of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 6319) and section 602 of the Individuals with
Disabilities Act (20 U.S.C. 1401).
(2) Student academic achievement.--Increasing student
academic achievement for all students, which may be
measured through the use of value-added assessments, as
defined by the eligible State.
(3) Raising standards.--Raising the State academic
standards required to enter the teaching profession as
a highly qualified teacher.
(4) Initial certification or licensure.--Increasing
success in the pass rate for initial State teacher
certification or licensure, or increasing the numbers
of qualified individuals being certified or licensed as
teachers through alternative routes to certification
and licensure.
(5) Decreasing teacher shortages.--Decreasing
shortages of highly qualified teachers in poor urban
and rural areas.
(6) Increasing opportunities for research-based
professional development.--Increasing opportunities for
enhanced and ongoing professional development that--
(A) improves the academic content knowledge
of teachers in the subject areas in which the
teachers are certified or licensed to teach or
in which the teachers are working toward
certification or licensure to teach; and
(B) promotes strong teaching skills.
(7) Technology integration.--Increasing the number of
teachers prepared effectively to integrate technology
into curricula and instruction and who use technology
to collect, manage, and analyze data to improve
teaching, learning, decisionmaking, and parental
involvement for the purpose of increasing student
academic achievement.
(b) Eligible Partnership Evaluation.--Each eligible
partnership applying for a grant under section 203 shall
establish, and include in the application submitted under
section 203(c), an evaluation plan that includes strong
performance objectives. The plan shall include objectives and
measures for--
(1) increased student achievement for all students,
as measured by the partnership;
(2) increased teacher retention in the first 3 years
of a teacher's career;
(3) increased success in the pass rate for initial
State certification or licensure of teachers;
(4) increased percentage of highly qualified
teachers; and
(5) increasing the number of teachers trained
effectively to integrate technology into curricula and
instruction and who use technology to collect, manage,
and analyze data to improve teaching, learning, and
decisionmaking for the purpose of improving student
academic achievement.
(c) Revocation of Grant.--
(1) Report.--Each eligible State or eligible
partnership receiving a grant under section 202 or 203
shall report annually on the progress of the eligible
State or eligible partnership toward meeting the
purposes of this part and the goals, objectives, and
measures described in subsections (a) and (b).
(2) Revocation.--
(A) Eligible states and eligible
applicants.--If the Secretary determines that
an eligible State or eligible applicant is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the second year of a
grant under this part, then the grant payment
shall not be made for the third year of the
grant.
(B) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not
making substantial progress in meeting the
purposes, goals, objectives, and measures, as
appropriate, by the end of the third year of a
grant under this part, then the grant payments
shall not be made for any succeeding year of
the grant.
(d) Evaluation and Dissemination.--The Secretary shall
evaluate the activities funded under this part and report
annually the Secretary's findings regarding the activities to
the authorizing committees. The Secretary shall broadly
disseminate successful practices developed by eligible States
and eligible partnerships under this part, and shall broadly
disseminate information regarding such practices that were
found to be ineffective.
SEC. 207. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
(a) State Report Card on the Quality of Teacher
Preparation.--Each State that receives funds under this Act
shall provide to the Secretary annually, in a uniform and
comprehensible manner that conforms with the definitions and
methods established by the Secretary, a State report card on
the quality of teacher preparation in the State, both for
traditional certification or licensure programs and for
alternative certification or licensure programs, which shall
include at least the following:
(1) A description of the teacher certification and
licensure assessments, and any other certification and
licensure requirements, used by the State.
(2) The standards and criteria that prospective
teachers must meet in order to attain initial teacher
certification or licensure and to be certified or
licensed to teach particular subjects or in particular
grades within the State.
(3) A description of the extent to which the
assessments and requirements described in paragraph (1)
are aligned with the State's standards and assessments
for students.
(4) The percentage of students who have completed at
least 50 percent of the requirements for a teacher
preparation program at an institution of higher
education or alternative certification program and who
have taken and passed each of the assessments used by
the State for teacher certification and licensure, and
the passing score on each assessment that determines
whether a candidate has passed that assessment.
(5) For students who have completed at least 50
percent of the requirements for a teacher preparation
program at an institution of higher education or
alternative certification program, and who have taken
and passed each of the assessments used by the State
for teacher certification and licensure, each such
institution's and each such program's average raw
score, ranked by teacher preparation program, which
shall be made available widely and publicly.
(6) A description of each State's alternative routes
to teacher certification, if any, and the number and
percentage of teachers certified through each
alternative certification route who pass State teacher
certification or licensure assessments.
(7) For each State, a description of proposed
criteria for assessing the performance of teacher
preparation programs in the State, including indicators
of teacher candidate skills, academic content
knowledge, and evidence of gains in student academic
achievement.
(8) For each teacher preparation program in the
State, the number of students in the program, the
number of minority students in the program, the average
number of hours of supervised practice teaching
required for those in the program, and the number of
full-time equivalent faculty and students in supervised
practice teaching.
(b) Report of the Secretary on the Quality of Teacher
Preparation.--
(1) Report card.--The Secretary shall provide to
Congress, and publish and make widely available, a
report card on teacher qualifications and preparation
in the United States, including all the information
reported in paragraphs (1) through (8) of subsection
(a). Such report shall identify which eligible States
received a grant under this part, and the States in
which eligible partnerships receiving grants are
located. Such report shall be published and made
available annually.
(2) Report to congress.--The Secretary shall report
to Congress--
(A) a comparison of States' efforts to
improve teaching quality; and
(B) regarding the national mean and median
scores on any standardized test that is used in
more than one State for teacher certification
or licensure.
(3) Special rule.--In the case of programs with fewer
than 10 students who have completed at least 50 percent
of the requirements for a teacher preparation program
taking any single initial teacher certification or
licensure assessment during an academic year, the
Secretary shall collect and publish information with
respect to an average pass rate on State certification
or licensure assessments taken over a 3-year period.
(c) 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.
(d) Institution and Program Report Cards on Quality of
Teacher Preparation.--
(1) Report card.--Each institution of higher
education or alternative certification program that
conducts a teacher preparation program 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, both for traditional certification or
licensure programs and for alternative certification or
licensure programs, the following information:
(A) Pass rate.--(i) For the most recent year
for which the information is available, the
pass rate of each student who has completed at
least 50 percent of the requirements for the
teacher preparation program on the teacher
certification or licensure assessments of the
State in which the institution is located, but
only for those students who took those
assessments within 3 years of receiving a
degree from the institution or completing the
program.
(ii) A comparison of the institution or
program's pass rate for students who have
completed at least 50 percent of the
requirements for the teacher preparation
program with the average pass rate for
institutions and programs in the State.
(iii) A comparison of the institution or
program's average raw score for students who
have completed at least 50 percent of the
requirements for the teacher preparation
program with the average raw scores for
institutions and programs in the State.
(iv) In the case of programs with fewer than
10 students who have completed at least 50
percent of the requirements for a teacher
preparation program taking any single initial
teacher certification or licensure assessment
during an academic year, the institution shall
collect and publish information with respect to
an average pass rate on State certification or
licensure assessments taken over a 3-year
period.
(B) Program information.--The number of
students in the program, the average number of
hours of supervised practice teaching required
for those in the program, and the number of
full-time equivalent faculty and students in
supervised practice teaching.
(C) Statement.--In States that require
approval or accreditation of teacher education
programs, a statement of whether the
institution's program is so approved or
accredited, and by whom.
(D) Designation as low-performing.--Whether
the program has been designated as low-
performing by the State under section 208(a).
(2) Requirement.--The information described in
paragraph (1) shall be reported through publications
such as school catalogs and promotional materials sent
to potential applicants, secondary school guidance
counselors, and prospective employers of the
institution's program graduates, including materials
sent by electronic means.
(3) Fines.--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to
exceed $25,000 on an institution of higher education
for failure to provide the information described in
this subsection in a timely or accurate manner.
(e) Data Quality.--Either--
(1) the Governor of the State; or
(2) in the case of a State for which the constitution
or law of such State designates another individual,
entity, or agency in the State to be responsible for
teacher certification and preparation activity, such
individual, entity, or agency;
shall attest annually, in writing, as to the reliability,
validity, integrity, and accuracy of the data submitted
pursuant to this section.
SEC. 208. STATE FUNCTIONS.
(a) State Assessment.--In order to receive funds under this
Act, a State shall have in place a procedure to identify and
assist, through the provision of technical assistance, low-
performing programs of teacher preparation within institutions
of higher education. Such State shall provide the Secretary an
annual list of such low-performing institutions that includes
an identification of those institutions at risk of being placed
on such list. Such levels of performance shall be determined
solely by the State and may include criteria based upon
information collected pursuant to this part. Such assessment
shall be described in the report under section 207(a). A State
receiving Federal funds under this title shall develop plans to
close or reconstitute underperforming programs of teacher
preparation within institutions of higher education.
(b) Termination of Eligibility.--Any institution of higher
education that offers a program of teacher preparation in which
the State has withdrawn the State's approval or terminated the
State's financial support due to the low performance of the
institution's teacher preparation 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 of Education; and
(2) shall not be permitted to accept or enroll any
student who receives aid under title IV of this Act in
the institution's teacher preparation program.
SEC. 209. GENERAL PROVISIONS.
(a) Methods.--In complying with sections 207 and 208, 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 allow identification of
individuals.
(b) Special Rule.--For each State in which there are no State
certification or licensure assessments, or for States that do
not set minimum performance levels on those assessments--
(1) the Secretary shall, 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,
the Secretary shall use such data to carry out
requirements of this part related to assessments or
pass rates.
(c) Limitations.--
(1) Federal control prohibited.--Nothing in this part
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 part.
(2) No change in state control encouraged or
required.--Nothing in this part 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.
(3) National system of teacher certification
prohibited.--Nothing in this part shall be construed to
permit, allow, encourage, or authorize the Secretary to
establish or support any national system of teacher
certification.
SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part $300,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years, of which--
(1) 45 percent shall be available for each fiscal
year to award grants under section 202;
(2) 45 percent shall be available for each fiscal
year to award grants under section 203; and
(3) 10 percent shall be available for each fiscal
year to award grants under section 204.
PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY
* * * * * * *
SEC. 222. ELIGIBILITY.
(a) Eligible Applicants.--In order to receive a grant or
enter into a contract or cooperative agreement under this part,
an applicant shall be a consortium that includes the following:
(1) * * *
* * * * * * *
(3) One or more of the following entities:
(A) * * *
* * * * * * *
(D) A professional association, foundation,
museum, library, for-profit business, public or
private nonprofit organization, community-based
organization, nonprofit telecommunications
entity, or other entity, with the capacity to
contribute to the technology-related reform of
teacher preparation programs.
* * * * * * *
SEC. 223. USE OF FUNDS.
(a) * * *
(b) Permissible Uses.--The consortium may use funds made
available under this part for a project, described in the
application submitted by the consortium under this part, that
carries out the purpose of this part, such as the following:
(1) Developing and implementing high-quality teacher
preparation programs that enable educators--
(A) * * *
* * * * * * *
[(E) to use technology to collect, manage,
and analyze data to improve teaching and
decisionmaking.]
(E) to use technology to collect, manage, and
analyze data to improve teaching, learning, and
decisionmaking for the purpose of increasing
student academic achievement.
* * * * * * *
SEC. 224. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part such sums as may be necessary for [each of fiscal years
2002 and 2003.] fiscal year 2006 and each of the 5 succeeding
fiscal years.
PART C--CENTERS OF EXCELLENCE
SEC. 231. PURPOSES; DEFINITIONS.
(a) Purposes.--The purposes of this part are--
(1) to help recruit and prepare teachers, including
minority teachers, to meet the national demand for a
highly qualified teacher in every classroom; and
(2) to increase opportunities for Americans of all
educational, ethnic, class, and geographic backgrounds
to become highly qualified teachers.
(b) Definitions.--As used in this part:
(1) Eligible institution.--The term ``eligible
institution'' means--
(A) an institution of higher education that
has a teacher preparation program that meets
the requirements of section 203(b)(2) 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)); or
(v) a Native Hawaiian-serving
institution (as defined in section
317(b));
(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 232 is
located at an institution described in
subparagraph (A).
(2) Highly qualified.--The term ``highly qualified''
when used with respect to an individual means that the
individual is highly qualified as determined under
section 9101 of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7801) or section 602 of the
Individuals with Disabilities Education Act (20 U.S.C.
1401).
(3) 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 (20
U.S.C. 6368).
(4) Scientifically based research.--The term
``scientifically based research'' has the meaning given
such term in section 9101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7801).
SEC. 232. 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 part 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 based research, and are able
to use advanced technology effectively in the
classroom, including use for instructional techniques
to improve student academic achievement, by--
(A) retraining faculty; and
(B) designing (or redesigning) teacher
preparation programs that--
(i) prepare teachers to close student
achievement gaps, are based on rigorous
academic content, scientifically based
research (including scientifically
based reading research), and
challenging State student academic
content 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; or
(B) induction and support for teachers and
principals during their first 3 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.
(5) Disseminating information on effective practices
for teacher preparation and successful teacher
certification and licensure assessment preparation
strategies.
(6) Activities authorized under sections 202, 203,
and 204.
(c) Application.--Any eligible institution desiring a grant
under this section shall submit an application to the Secretary
at such a time, in such a manner, and accompanied by such
information the Secretary may require.
(d) Minimum Grant Amount.--The minimum amount of each grant
under this part shall be $500,000.
(e) Limitation on Administrative Expenses.--An eligible
institution that receives a grant under this part may not use
more than 2 percent of the grant funds for purposes of
administering the grant.
(f) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out this part.
SEC. 233. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part $10,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
PART D--TEACHER INCENTIVE FUND PROGRAM
SEC. 241. PURPOSE; DEFINITIONS.
(a) Purpose.--The purpose of this part is to assist States,
local educational agencies, and non-profit or for-profit
organizations to develop and implement, or expand, innovative
compensation systems to provide financial rewards for teachers
and principals who raise student academic achievement and close
the achievement gap, especially in the highest-need local
educational agencies.
(b) Definitions.--For purposes of this part:
(1) Eligible entity.--The term ``eligible entity''
means--
(A) a local educational agency, including a
charter school that is a local educational
agency;
(B) a State educational agency, or other
State agency designated by the chief executive
of the State; or
(C) a partnership of--
(i) one or more agencies described in
subparagraph (A) or (B), or both; and
(ii) at least one non-profit or for-
profit organization.
(2) High-need local educational agency.--The term
``high-need local educational agency'' has the meaning
given that term in section 201.
SEC. 242. TEACHER INCENTIVE FUND GRANTS.
(a) Program Authorized.--
(1) In general.--From the amounts appropriated to
carry out this part, the Secretary is authorized to
award competitive grants of up to 5 years in length to
eligible entities to develop and implement, or expand,
a comprehensive performance-based compensation system
for teachers and principals for one or more local
educational agencies.
(2) Comprehensive performance-based compensation
systems.--A comprehensive performance-based
compensation system developed and implemented, or
expanded with funds under this part--
(A) shall differentiate levels of
compensation primarily on the basis of
increases in student academic achievement; and
(B) may--
(i) differentiate levels of
compensation on the basis of high-
quality teachers' and principals'
employment and success in hard-to-staff
schools or high-need subject areas; and
(ii) recognize teachers' and
principals' skills and knowledge as
demonstrated through--
(I) successful fulfillment of
additional responsibilities or
job functions; and
(II) evidence of high
achievement and mastery of
content knowledge and teaching
skills.
(b) Use of Funds.--A grantee shall use grant funds provided
under this part only to design and implement, or expand, in
collaboration with teachers, principals, other school
administrators, and members of the public, a compensation
system consistent with the requirements of this part.
Authorized activities under this part may include the
following:
(1) Developing appraisal systems that reflect clear
and fair measures of student academic achievement.
(2) Conducting outreach within the local educational
agency (or agencies) or the State to gain input on how
to construct the appraisal system and to develop
support for it.
(3) Paying, as part of a comprehensive performance-
based compensation system, bonuses and increased
salaries to teachers and principals who raise student
academic achievement, so long as the grantee uses an
increasing share of non-Federal funds to pay these
monetary rewards each year of the grant.
(4) Paying, as part of a comprehensive performance-
based compensation system, additional bonuses to
teachers who both raise student academic achievement
and either teach in high-poverty schools or teach
subjects that are difficult to staff, or both, so long
as the grantee uses an increasing share of non-Federal
funds to pay these monetary rewards each year of the
grant.
(5) Paying, as part of a comprehensive performance-
based compensation system, additional bonuses to
principals who both raise student academic achievement
and serve in high-poverty schools, so long as the
grantee uses an increasing share of non-Federal funds
to pay these monetary rewards each year of the grant.
(c) Applications.--To be eligible to receive a grant under
this part, an eligible entity shall submit an application that
includes--
(1) a description of the local educational agency or
local educational agencies to be served by the project,
including such demographic information as the Secretary
may request;
(2) information on student academic achievement and
the quality of the teachers and principals in the local
educational agency or agencies to be served by the
project;
(3) a description of the performance-based teacher
and principal compensation system that the applicant
proposes to develop and implement or expand;
(4) a description of how the applicant will use grant
funds under this part in each year of the grant;
(5) an explanation of how the applicant will meet the
requirement in subsection (b)(3) and how the grantee
will continue its performance-based compensation system
after the grant ends;
(6) a description of the support and commitment from
teachers, the community or local educational agency or
agencies for the development and implementation, or
expansion, of a performance-based teacher and principal
compensation system;
(7) a description of how teacher, principal and
student performance will be measured and the baseline
measurement units; and
(8) a description, if applicable, of how the
applicant will define the term ``high-quality'' for the
purposes of subsection (a)(2)(B)(i), through the use of
measurable indicators, such as effectiveness in raising
student academic achievement, or demonstrated mastery
of subject matter knowledge.
(d) Priority.--The Secretary shall give priority to
applications for projects that would establish comprehensive
performance-based compensation systems in high-need local
educational agencies.
SEC. 243. EVALUATIONS.
The Secretary shall conduct an independent evaluation of the
program under this part and may use up to 1 percent of the
funds made available under this part or $1,000,000, whichever
is less, for any fiscal year for the cost of the evaluation.
SEC. 244. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part $100,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
TITLE III--INSTITUTIONAL AID
* * * * * * *
Part A--Strengthening Institutions
SEC. 311. PROGRAM PURPOSE.
(a) * * *
* * * * * * *
(c) Authorized Activities.--Grants awarded under this section
shall be used for 1 or more of the following activities:
(1) * * *
* * * * * * *
(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents.
[(7)] (8) Funds management, administrative
management, and acquisition of equipment for use in
strengthening funds management.
[(8)] (9) Joint use of facilities, such as
laboratories and libraries.
[(9)] (10) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(10)] (11) Establishing or improving an endowment
fund.
[(11)] (12) Creating or improving facilities for
Internet or other distance learning academic
instruction capabilities, including purchase or rental
of telecommunications technology equipment or services.
[(12)] (13) Other activities proposed in the
application submitted pursuant to subsection (c) that--
(A) * * *
* * * * * * *
SEC. 312. DEFINITIONS; ELIGIBILITY.
(a) * * *
(b) Eligible Institution.--For the purpose of this part, the
term ``eligible institution'' means--
(1) an institution of higher education--
(A) which has an enrollment of needy students
as required by subsection [(c)] (d) of this
section;
* * * * * * *
(E) which provides a program that is not less
than a 2-year educational program that is
acceptable for full credit toward a bachelor's
degree;
[(E)] (F) which meets such other requirements
as the Secretary may prescribe; and
[(F)] (G) which is located in a State; and
* * * * * * *
SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
(a) * * *
[(b) Definitions.--In this section:
[(1) Indian.--The term ``Indian'' has the meaning
given the term in section 2 of the Tribally Controlled
College or University Assistance Act of 1978.
[(2) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 2 of the Tribally
Controlled College or University Assistance Act of
1978.
[(3) Tribal college or university.--The term ``Tribal
College or University'' has the meaning give the term
``tribally controlled college or university'' in
section 2 of the Tribally Controlled College or
University Assistance Act of 1978, and includes an
institution listed in the Equity in Educational Land
Grant Status Act of 1994.
[(4) Institution of higher education.--The term
``institution of higher education'' means an
institution of higher education as defined in section
101(a), except that paragraph (2) of such section shall
not apply.]
(b) Definitions.--
(1) Eligible institutions.--For purposes of this
section, Tribal Colleges and Universities are the
following:
(A) any of the following institutions that
qualify for funding under the Tribally
Controlled College or University Assistance Act
of 1978 or is listed in Equity in Educational
Land Grant Status Act of 1994 (7 U.S.C. 301
note): Bay Mills Community College; Blackfeet
Community College; Cankdeska Cikana Community
College; Chief Dull Knife College; College of
Menominee Nation; Crownpoint Institute of
Technology; Dine College; D-Q University; Fond
du Lac Tribal and Community College; Fort
Belknap College; Fort Berthold Community
College; Fort Peck Community College; Haskell
Indian Nations University; Institute of
American Indian and Alaska Native Culture and
Arts Development; Lac Courte Oreilles Ojibwa
Community College; Leech Lake Tribal College;
Little Big Horn College; Little Priest Tribal
College; Nebraska Indian Community College;
Northwest Indian College; Oglala Lakota
College; Saginaw Chippewa Tribal College;
Salish Kootenai College; Si Tanka University--
Eagle Butte Campus; Sinte Gleska University;
Sisseton Wahpeton Community College; Sitting
Bull College; Southwestern Indian Polytechnic
Institute; Stone Child College; Tohono O'Odham
Community College; Turtle Mountain Community
College; United Tribes Technical College; and
White Earth Tribal and Community College; and
(B) any other institution that meets the
definition of tribally controlled college or
university in section 2 of the Tribally
Controlled College or University Assistance Act
of 1978, and meets all other requirements of
this section.
(2) Indian.--The term ``Indian'' has the meaning
given the term in section 2 of the Tribally Controlled
College or University Assistance Act of 1978.
(c) Authorized Activities.--
(1) * * *
(2) Examples of authorized activities.--The
activities described in paragraph (1) may include--
(A) * * *
[(B) construction, maintenance, renovation,
and improvement in classrooms, libraries,
laboratories, and other instructional
facilities, including purchase or rental of
telecommunications technology equipment or
services;]
(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;
(C) support of faculty exchanges, faculty
development, and faculty fellowships to assist
in attaining advanced degrees in the faculty's
field of instruction, or advanced degrees in
tribal governance or tribal public policy;
(D) academic instruction in disciplines in
which Indians are underrepresented, in tribal
governance, or tribal public policy;
* * * * * * *
(G) education or counseling services designed
to improve the financial literacy and economic
literacy of students and, as appropriate, their
parents;
[(G)] (H) funds management, administrative
management, and acquisition of equipment for
use in strengthening funds management;
[(H)] (I) joint use of facilities, such as
laboratories and libraries;
[(I)] (J) establishing or improving a
development office to strengthen or improve
contributions from alumni and the private
sector;
[(J)] (K) establishing or enhancing a program
of teacher education designed to qualify
students to teach in elementary schools or
secondary schools, with a particular emphasis
on teaching Indian children and youth, that
shall include, as part of such program,
preparation for teacher certification;
[(K)] (L) establishing community outreach
programs that encourage Indian elementary
school and secondary school students to develop
the academic skills and the interest to pursue
postsecondary education; [and]
(M) developing or improving facilities for
Internet use or other distance learning
academic instruction capabilities; and
[(L)] (N) other activities proposed in the
application submitted pursuant to subsection
(d) that--
(i) contribute to carrying out the
activities described in subparagraphs
(A) through [(K)] (M); and
* * * * * * *
[(d) Application Process.--
[(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.--Any Tribal College or University
desiring to receive assistance under this section shall
submit an application to the Secretary at such time,
and in such manner, as the Secretary may by regulation
reasonably require. The Secretary shall, to the extent
possible, prescribe a simplified and streamlined format
for such applications that takes into account the
limited number of institutions that are eligible for
assistance under this section. Each such application
shall include--
[(A) a 5-year plan for improving the
assistance provided by the Tribal College or
University to Indian students, increasing the
rates at which Indian secondary school students
enroll in higher education, and increasing
overall postsecondary retention rates for
Indian students; and
[(B) such enrollment data and other
information and assurances as the Secretary may
require to demonstrate compliance with
paragraph (1).
[(3) Special rules.--
[(A) Eligibility.--No Tribal College or
University that receives funds under this
section shall concurrently receive funds under
other provisions of this part or part B.
[(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) Application and Allotment.--
(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.--Any Tribal College or University
desiring to receive assistance under this section shall
submit an application to the Secretary at such time,
and in such manner, as the Secretary may reasonably
require.
(3) Allotments to institutions.--
(A) Allotment: pell grant basis.--From the
amount appropriated to carry out this section
for any fiscal year, the Secretary shall allot
to each eligible institution a sum which bears
the same ratio to one-half that amount as the
number of Pell Grant recipients in attendance
at such institution at the end of the award
year preceding the beginning of that fiscal
year bears to the total number of Pell Grant
recipients at all eligible institutions.
(B) Allotment: degree and certificate
basis.--From the amount appropriated to carry
out this section for any fiscal year, the
Secretary shall allot to each eligible
institution a sum which bears the same ratio to
one-half that amount as the number of degrees
or certificates awarded by such institution
during the preceding academic year bears to the
total number of degrees or certificates at all
eligible institutions.
(C) Minimum grant.--Notwithstanding
subparagraphs (A) and (B), the amount allotted
to each institution under this section shall
not be less than $400,000.
(4) Special rules.--
(A) Concurrent funding.--For the purposes of
this part, no Tribal College or University that
is eligible for and receives funds under this
section shall concurrently receive funds under
other provisions of this part or part B.
(B) Exemption.--Section 313(d) shall not
apply to institutions that are eligible to
receive funds under this section.
SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.
(a) * * *
* * * * * * *
(c) Authorized Activities.--
(1) * * *
(2) Examples of authorized activities.--Such programs
may include--
(A) * * *
[(B) renovation and improvement in classroom,
library, laboratory, and other instructional
facilities;]
(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;
(C) support of faculty exchanges, and faculty
development and faculty fellowships to assist
in attaining advanced degrees in the faculty's
field of instruction, or advanced degrees in
tribal governance or tribal public policy;
(D) curriculum development and academic
instruction, in tribal governance, or tribal
public policy;
* * * * * * *
(G) joint use of facilities such as
laboratories and libraries; [and]
(H) academic tutoring and counseling programs
and student support services[.];
(I) development or improvement of facilities
for Internet use or other distance learning
academic instruction capabilities; and
(J) education or counseling services designed
to improve the financial literacy and economic
literacy of students and, as appropriate, their
parents.
(3) Endowment funds.--
(A) In general.--An Alaska Native or Native
Hawaiian-serving 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), the institution shall provide
to the endowment fund from non-Federal funds an
amount equal to the Federal funds used in
accordance with subparagraph (A), for the
establishment or increase of the endowment
fund.
(C) Applicability of other provisions.--The
provisions of part C regarding the
establishment or increase of an endowment fund,
that the Secretary determines are not
inconsistent with this paragraph, shall apply
to funds used under subparagraph (A).
(d) Application Process.--
(1) * * *
(2) Applications.--Any institution which is
determined by the Secretary to be an Alaska Native-
serving institution or a Native Hawaiian-serving
institution may submit an application for assistance
under this section to the Secretary. The Secretary
shall, to the extent possible, prescribe a simplified
and streamlined format for such applications that takes
into account the limited number of institutions that
are eligible for assistance under this section. [Such
application shall include--
[(A) a 5-year plan for improving the
assistance provided by the Alaska Native-
serving institution or the Native Hawaiian-
serving institution to Alaska Native or Native
Hawaiian students; and
[(B) such other information and assurance as
the Secretary may require.]
* * * * * * *
Part B--Strengthening Historically Black Colleges and Universities
* * * * * * *
SEC. 323. GRANTS TO INSTITUTIONS.
(a) General Authorization; Uses of Funds.--From amounts
available under [section 360(a)(2)] section 399(a)(2) in any
fiscal year the Secretary shall make grants (under section 324)
to institutions which have applications approved by the
Secretary (under section 325) for any of the following uses:
(1) * * *
[(2) Construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services.]
(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including development
or improvement of facilities for Internet use or other
distance learning academic instruction capabilities and
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.
* * * * * * *
(7) Education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents.
[(7)] (8) Funds and administrative management, and
acquisition of equipment for use in strengthening funds
management.
[(8)] (9) Joint use of facilities, such as
laboratories and libraries.
[(9)] (10) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(10)] (11) Establishing or enhancing a program of
teacher education designed to qualify students to teach
in a public elementary or secondary school in the State
that shall include, as part of such program,
preparation for teacher certification.
[(11) Establishing community outreach programs which
will encourage elementary and secondary students to
develop the academic skills and the interest to pursue
postsecondary education.]
(12) Establishing community outreach programs and
collaborative partnerships between part B institutions
and local elementary or secondary schools. Such
partnerships may include mentoring, tutoring, or other
instructional opportunities that will boost student
academic achievement and assist elementary and
secondary school students in developing the academic
skills and the interest to pursue postsecondary
education.
[(12)] (13) Other activities proposed in the
application submitted pursuant to section 325 that--
(A) * * *
* * * * * * *
(c) Technical Assistance.--
(1) In general.--An institution may not use more than
2 percent of the grant funds provided under this part
to secure technical assistance services.
(2) Technical assistance services.--Technical
assistance services may include assistance with
enrollment management, financial management, and
strategic planning.
(3) Report.--The institution shall report to the
Secretary on an annual basis, in such form as the
Secretary requires, on the use of funds under this
subsection.
[(c)] (d) Limitations.--(1) * * *
* * * * * * *
SEC. 324. ALLOTMENTS TO INSTITUTIONS.
(a) * * *
* * * * * * *
(d) Minimum Allotment.--(1) Notwithstanding subsections (a),
(b), and (c), the amount allotted to each part B institution
under this section shall not be less than $500,000, except
that, if the amount appropriated to carry out this part for any
fiscal year exceeds the amount required to provide to each
institution an amount equal to the total amount received by
such institution under subsections (a), (b), and (c) for the
preceding fiscal year, then the amount of such excess
appropriation shall first be applied to increase the minimum
allotment under this subsection to $750,000.
(2) If the amount appropriated pursuant to [section
360(a)(2)(A)] section 399(a)(2)(A) for any fiscal year is not
sufficient to pay the minimum allotment required by paragraph
(1) of this subsection to all part B institutions, the amount
of such minimum allotments shall be ratably reduced. If
additional sums become available for such fiscal year, such
reduced allocation shall be increased on the same basis as they
were reduced (until the amount allotted equals the minimum
allotment required by paragraph (1)).
* * * * * * *
SEC. 326. PROFESSIONAL OR GRADUATE INSTITUTIONS.
(a) General Authorization.--(1) Subject to the availability
of funds appropriated to carry out this section, the Secretary
shall award program grants to each of the postgraduate
institutions listed in subsection (e) that (A) is determined by
the Secretary to be making a substantial contribution to the
legal, medical, dental, veterinary, or other graduate education
opportunities in mathematics, engineering, or the physical or
natural sciences for Black Americans, (B) 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, and (C) according to such an
agency or association, is in good standing.
* * * * * * *
(c) Uses of Funds.--A grant under this section may be used
for--
(1) * * *
[(2) construction, maintenance, renovation, and
improvement in classroom, library, laboratory, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;]
(2) 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;
* * * * * * *
(e) Eligibility.--
(1) In general.--Independent professional or graduate
institutions and programs eligible for grants under
subsection (a) are the following:
(A) * * *
* * * * * * *
(Q) Norfolk State University qualified
graduate programs; [and]
(R) Tennessee State University qualified
graduate programs[.];
(S) Alabama State University qualified
graduate program;
(T) Prairie View A & M University qualified
graduate program;
(U) Coppin State University qualified
graduate program; and
(V) Delaware State University qualified
graduate program.
* * * * * * *
(3) Special rule.--Institutions that were awarded
grants under this section prior to October 1, [1998]
2005, shall continue to receive such grants, subject to
the availability of appropriated funds, regardless of
the eligibility of the institutions described in
subparagraphs [(Q) and (R)] (S), (T), (U), and (V) of
paragraph (1).
* * * * * * *
(f) Funding Rule.--Subject to subsection (g), of the amount
appropriated to carry out this section for any fiscal year--
(1) the first [$26,600,000] $54,500,000 (or any
lesser amount appropriated) shall be available only for
the purposes of making grants to institutions or
programs described in subparagraphs (A) through [(P)]
(R) of subsection (e)(1);
(2) any amount in excess of [$26,600,000, but not in
excess of $28,600,000] $54,500,000, but not in excess
of $58,500,000, shall be available for the purpose of
making grants to institutions or programs described in
[subparagraphs (Q) and (R)] subparagraphs (S), (T),
(U), and (V) of subsection (e)(1); and
(3) any amount in excess of [$28,600,000]
$58,500,000, shall be made available to each of the
institutions or programs identified in subparagraphs
(A) through [(R)] (V) pursuant to a formula developed
by the Secretary that uses the following elements:
(A) * * *
* * * * * * *
(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and
(3) of subsection (f ), no institution or qualified program
identified in subsection (e)(1) that received a grant for
fiscal year [1998] 2005 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 [1998] 2005, unless the amount
appropriated is not sufficient to provide such grant amounts to
all such institutions and programs, or the institution cannot
provide sufficient matching funds to meet the requirements of
this section.
SEC. 327. REPORTING AND AUDIT REQUIREMENTS.
(a) * * *
(b) Repayment of Unexpended Funds.--Any funds paid to an
institution and not expended or used for the purposes for which
the funds were paid within 10 years following the date of the
[initial] grant awarded to an institution under part B of this
title shall be repaid to the Treasury of the United States.
* * * * * * *
PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
* * * * * * *
SEC. 342. DEFINITIONS.
For the purposes of this part:
(1) * * *
* * * * * * *
(5) The term ``capital project'' means, subject to
section 344(b) the repair, renovation, or, in
exceptional circumstances, the construction or
acquisition, of--
(A) * * *
* * * * * * *
(C) instructional equipment [technology,,],
techology, research instrumentation, and any
capital equipment or fixture related to
facilities described in subparagraph (A);
* * * * * * *
SEC. 343. FEDERAL INSURANCE FOR BONDS.
(a) * * *
* * * * * * *
(e) Sale of Qualified Bonds.--Notwithstanding any other
provision of law, a qualified bond guaranteed under this part
may be sold to any party that offers terms that the Secretary
determines are in the best interest of the eligible
institution.
* * * * * * *
PART E--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM
Subpart 1--Minority Science and Engineering Improvement Program
* * * * * * *
SEC. 351. PURPOSE; AUTHORITY.
(a) It is the purpose of this subpart to continue the
authority of the Department to operate the Minority
Institutions Science Improvement Program created under section
3(a)(1) of the National Science Foundation Act of 1950 and
transferred to the Department by section 304(a)(1) of the
Department of Education Organization Act [of 1979].
* * * * * * *
[SEC. 1024. MULTIAGENCY STUDY OF MINORITY SCIENCE PROGRAMS.
[The Secretary, in cooperation with the heads of other
departments and agencies that operate programs similar in
purposes to the Minority Science Improvement Program which seek
to increase minority participation and representation in
scientific fields, shall submit a report to the President and
Congress summarizing and evaluating such programs by January 1,
1996.]
* * * * * * *
Part F--General Provisions
SEC. 391. APPLICATIONS FOR ASSISTANCE.
(a) * * *
(b) Contents.--An institution, in its application for a
grant, shall--
(1) * * *
* * * * * * *
(7) describe in a comprehensive manner any proposed
project for which funds are sought under the
application and include--
(A) * * *
* * * * * * *
(E) a detailed description of any activity
which involves the expenditure of more than
$25,000, as identified in the budget referred
to in [subparagraph (E)] subparagraph (D); and
* * * * * * *
SEC. 396. LIMITATIONS.
The funds appropriated under [section 360] section 399 may
not be used--
(1) * * *
* * * * * * *
SEC. 399. AUTHORIZATIONS OF APPROPRIATIONS.
(a) Authorizations.--
(1) Part a.--(A) There are authorized to be
appropriated to carry out part A, $135,000,000 (other
than section 316) for fiscal year [1999] 2006, and such
sums as may be necessary for each of the [4] 5
succeeding fiscal years.
(B) There are authorized to be appropriated to carry
out section 316, [$10,000,000] $23,800,000 for fiscal
year [1999] 2006 and such sums as may be necessary for
each of the [4] 5 succeeding fiscal years.
(C) There are authorized to be appropriated to carry
out section 317, [$5,000,000] $11,900,000 for fiscal
year [1999] 2006 and such sums as may be necessary for
each of the [4] 5 succeeding fiscal years.
(2) Part b.--(A) There are authorized to be
appropriated to carry out part B (other than section
326), [$135,000,000] $241,000,000 for fiscal year
[1999] 2006, and such sums as may be necessary for each
of the [4] 5 succeeding fiscal years.
(B) There are authorized to be appropriated to carry
out section 326, [$35,000,000] $59,000,000 for fiscal
year [1999] 2006, and such sums as may be necessary for
each of the [4] 5 succeeding fiscal years.
* * * * * * *
(4) Part d.--(A) There are authorized to be
appropriated to carry out part D (other than section
345(7), but including section 347), [$110,000] $212,000
for fiscal year [1999] 2006, and such sums as may be
necessary for each of the [4] 5 succeeding fiscal
years.
(B) There are authorized to be appropriated to carry
out section 345(7), such sums as may be necessary for
fiscal year [1999] 2006 and each of the [4] 5
succeeding fiscal years.
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students in Attendance at Institutions of Higher
Education
SEC. 400. STATEMENT OF PURPOSE; PROGRAM AUTHORIZATION.
(a) * * *
(b) Secretary Required To Carry Out Purposes.--The Secretary
shall, in accordance with subparts 1 [through 8] through 7,
carry out programs to achieve the purposes of this part.
Subpart 1--Federal Pell Grants
SEC. 401. FEDERAL PELL GRANTS: AMOUNT AND DETERMINATIONS; APPLICATIONS.
(a) Program Authority and Method of Distribution.--(1) For
each fiscal year through fiscal year [2004] 2012, the Secretary
shall pay to each eligible institution such sums as may be
necessary to pay to each eligible student (defined in
accordance with section 484) for each academic year during
which that student is in attendance at an institution of higher
education, as an undergraduate, a Federal Pell Grant in the
amount for which that student is eligible, as determined
pursuant to subsection (b). Not less than 85 percent of such
sums shall be advanced to eligible institutions prior to the
start of each payment period and shall be based upon an amount
requested by the institution as needed to pay eligible students
until such time as the Secretary determines and publishes in
the Federal Register with an opportunity for comment, an
alternative payment system that provides payments to
institutions in an accurate and timely manner,, except that
this sentence shall not be construed to limit the authority of
the Secretary to place an institution on a reimbursement system
of payment.
[(2) Nothing in this section shall be interpreted to prohibit
the Secretary from paying directly to students, in advance of
the beginning of the academic term, an amount for which they
are eligible, in cases where the eligible institution elects
not to participate in the disbursement system required by
paragraph (1).]
[(3)] (2) Grants made under this subpart shall be known as
``Federal Pell Grants''.
(b) Purpose and Amount of Grants.--(1) * * *
[(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be--
[(i) $4,500 for academic year 1999-2000;
[(ii) $4,800 for academic year 2000-2001;
[(iii) $5,100 for academic year 2001-2002;
[(iv) $5,400 for academic year 2002-2003; and
[(v) $5,800 for academic year 2003-2004,
less an amount equal to the amount determined to be the
expected family contribution with respect to that student for
that year.]
(2)(A) The amount of the Federal Pell Grant for a student
eligible under this part shall be $6,000 for academic years
2006-2007 through 2012-2013, less an amount equal to the amount
determined to be the expected family contribution with respect
to that student for that year.
* * * * * * *
[(3)(A) For any academic year for which an appropriation Act
provides a maximum basic grant in an amount in excess of
$2,700, the amount of a student's basic grant shall equal
$2,700 plus--
[(i) one-half of the amount by which such maximum
basic grant exceeds $2,700; plus
[(ii) the lesser of--
[(I) the remaining one-half of such excess;
or
[(II) the sum of the student's tuition and,
if the student has dependent care expenses (as
described in section 472(8)) or disability-
related expenses (as described in section
472(9)), an allowance determined by the
institution for such expenses.
[(B) An institution that charged only fees in lieu of tuition
as of October 1, 1998, may include in the institution's
determination of tuition charged, fees that would normally
constitute tuition.]
[(4)] (3) No Federal Pell Grant under this subpart shall
exceed the difference between the expected family contribution
for a student and the cost of attendance (as defined in section
472) at the institution at which that student is in attendance.
If, with respect to any student, it is determined that the
amount of a Federal Pell Grant plus the amount of the expected
family contribution for that student exceeds the cost of
attendance for that year, the amount of the Federal Pell Grant
shall be reduced until the combination of expected family
contribution and the amount of the Federal Pell Grant does not
exceed the cost of attendance at such institution.
[(5)] (4) No Federal Pell Grant shall be awarded to a student
under this subpart if the amount of that grant for that student
as determined under this subsection for any academic year is
less than $400, except that a student who is eligible for a
Federal Pell Grant that is equal to or greater than $200 but
less than $400 shall be awarded a Federal Pell Grant of $400.
[(6)(A) The Secretary may allow, on a case-by-case basis, a
student to receive 2 Pell grants during a single award year,
if--
[(i) the student is enrolled full-time in an
associate or baccalaureate degree program of study that
is 2 years or longer at an eligible institution that is
computed in credit hours; and
[(ii) the student completes course work toward
completion of an associate or baccalaureate degree that
exceeds the requirements for a full academic year as
defined by the institution.
[(B) The Secretary shall promulgate regulations implementing
this paragraph.]
(5) Year-round pell grants.--
(A) In general.--The Secretary shall, for
students enrolled full time in a baccalaureate
or associate's degree program of study at an
eligible institution, award such students two
Pell grants during a single award year to
permit such students to accelerate progress
toward their degree objectives by enrolling in
academic programs for 12 months rather than 9
months.
(B) Limitation.--The Secretary shall limit
the awarding of additional Pell grants under
this paragraph in a single award year to
students attending--
(i) baccalaureate degree granting
institutions that have a graduation
rate as reported by the Integrated
Postsecondary Education Data System for
the 4 preceding academic years of at
least 30 percent; or
(ii) two-year institutions that have
a graduation rate as reported by the
Integrated Postsecondary Education Data
Systems, in at least one of the last 3
years for which data is available, that
is above the average for the applicable
year for the institution's type and
control.
(C) Evaluation.--The Secretary shall conduct
an evaluation of the program under this
paragraph and submit to the Congress an
evaluation report no later than October 1,
2011.
(D) Regulations required.--The Secretary
shall promulgate regulations implementing this
paragraph.
[(7)] (6) Notwithstanding any other provision of this
subpart, the Secretary shall allow the amount of the Federal
Pell Grant to be exceeded for students participating in a
program of study abroad approved for credit by the institution
at which the student is enrolled when the reasonable costs of
such program are greater than the cost of attendance at the
student's home institution, except that the amount of such
Federal Pell Grant in any fiscal year shall not exceed the
grant level specified in the appropriate Appropriation Act for
this subpart for such year. If the preceding sentence applies,
the financial aid administrator at the home institution may use
the cost of the study abroad program, rather than the home
institution's cost, to determine the cost of attendance of the
student.
[(8)] (7) No Federal Pell Grant shall be awarded under this
subpart to any individual who is incarcerated in any Federal or
State penal institution or who is subject to an involuntary
civil commitment upon completion of a period of incarceration
for a sexual offense (as determined under regulations of the
Secretary).
(c) Period of Eligibility for Grants.--(1) [The period]
Subject to paragraph (5), the period during which a student may
receive Federal Pell Grants shall be the period required for
the completion of the first undergraduate baccalaureate course
of study being pursued by that student at the institution at
which the student is in attendance except that any period
during which the student is enrolled in a noncredit or remedial
course of study as defined in paragraph (2) shall not be
counted for the purpose of this paragraph[.] but shall be
subject to the limitation described in paragraph (5).
(2) Nothing in this section shall exclude from eligibility
courses of study which are noncredit or remedial in nature
(including courses in English language instruction) which are
determined by the institution, for not more than one academic
year, to be necessary to help the student be prepared for the
pursuit of a first undergraduate baccalaureate degree or
certificate or, in the case of courses in English language
instruction, to be necessary to enable the student to utilize
already existing knowledge, training, or skills. Nothing in
this section shall exclude from eligibility programs of study
abroad that are approved for credit by the home institution at
which the student is enrolled.
* * * * * * *
(5) The period during which a student may receive Federal
Pell Grants shall not exceed the equivalent of 18 semesters or
27 quarters in duration (as determined by the Secretary by
regulation), without regard to whether the student is enrolled
on a full-time basis during any portion of that period, and
including any period of time for which the student received
Federal Pell Grants prior to the date of enactment of the
College Access and Opportunity Act of 2005.
* * * * * * *
(f) Calculation of Eligibility.--(1) * * *
* * * * * * *
(3) Each contractor processing applications for awards under
this subpart shall for each academic year after academic year
1986-1987 prepare and submit a report to the Secretary on the
correctness of the computations of amount of the expected
family contribution, and on the accuracy of the questions on
the application form under this subpart for the previous
academic year for which the contractor is responsible. The
Secretary shall transmit the report, together with the comments
and recommendations of the Secretary, to the [Committee on
Appropriations and the Committee on Labor and Human Resources
of the Senate and the Committee on Appropriations and the
Committee on Education and the Workforce of the House of
Representatives] Committees on Appropriations of the Senate and
House of Representatives and the authorizing committees.
* * * * * * *
SEC. 401A. PELL GRANTS PLUS: ACHIEVEMENT GRANTS FOR STATE SCHOLARS.
(a) Grants Authorized.--From sums appropriated to carry out
section 401, the Secretary shall establish a program to award
Pell Grants Plus to students who--
(1) have successfully completed a rigorous high
school program of study established by a State or local
educational agency in consultation with a State
coalition assisted by the Center for State Scholars;
(2) are enrolled full-time in the first academic year
of undergraduate education, and have not been
previously enrolled in a program of undergraduate
education; and
(3) are eligible to receive Federal Pell Grants for
the year in which the grant is awarded.
(b) Amount of Grants.--
(1) In general.--Except as provided in paragraph (2),
the amount of the grant awarded under this section
shall be $1,000.
(2) Assistance not to exceed cost of attendance.--A
grant awarded under this section to any student, in
combination with the Federal Pell Grant assistance and
other student financial assistance available to such
student, may not exceed the student's cost of
attendance.
(c) Selection of Recipients.--
(1) Procedures established by regulation.--The
Secretary shall establish by regulation procedures for
the determination of eligibility of students for the
grants awarded under this section. Such procedures
shall include measures to ensure that eligibility is
determined in a timely and accurate manner consistent
with the requirements of section 482 and the submission
of the financial aid form required by section 483.
(2) Required information.--Each eligible student
desiring an award under this section shall submit at
such time and in such manner such information as the
Secretary may reasonably require.
(3) Continuation of grant requirements.--In order for
a student to continue to be eligible to receive an
award under this section for the second year of
undergraduate education, the eligible student must--
(A) maintain eligibility to receive a Federal
Pell Grant for that year;
(B) obtain a grade point average of at least
3.0 (or the equivalent as determined under
regulations prescribed by the Secretary) for
the first year of undergraduate education; and
(C) be enrolled full-time and fulfill the
requirements for satisfactory progress
described in section 484(c).
(d) Evaluation, and Reports.--The Secretary shall monitor the
progress, retention, and completion rates of the students to
whom awards are provided under this section. In doing so, the
Secretary shall evaluate the impact of the Pell Grants Plus
Program and report, not less than biennially, to the
authorizing committees of the House of Representatives and the
Senate.
Subpart 2--Federal Early Outreach and Student Services Programs
CHAPTER 1--FEDERAL TRIO PROGRAMS
SEC. 402A. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIATIONS.
(a) * * *
(b) Recipients, Duration, and Size.--
(1) * * *
[(2) Duration.--Grants or contracts made under this
chapter shall be awarded for a period of 4 years,
except that--
[(A) the Secretary shall award such grants or
contracts for 5 years to applicants whose peer
review scores were in the highest 10 percent of
scores of all applicants receiving grants or
contracts in each program competition for the
same award year;
[(B) grants made under section 402G shall be
awarded for a period of 2 years; and
[(C) grants under section 402H shall be
awarded for a period determined by the
Secretary.
[(3) Minimum grants.--Unless the institution or
agency requests a smaller amount, individual grants
under this chapter shall be no less than--
[(A) $170,000 for programs authorized by
sections 402D and 402G;
[(B) $180,000 for programs authorized by
sections 402B and 402F; and
[(C) $190,000 for programs authorized by
sections 402C and 402E.]
(2) Duration.--Grants or contracts awarded under this
chapter shall be awarded for a period of 5 years,
except that--
(A) grants under section 402G shall be
awarded for a period of 2 years; and
(B) grants under section 402H shall be
awarded for a period determined by the
Secretary.
(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, individual grants for
programs authorized under this chapter shall be no less
than $200,000, except that individual grants for
programs authorized under section 402G shall be no less
than $170,000.
(c) Performance Measures.--
(1) In general.--The Secretary shall establish
expected program outcomes and procedures for measuring,
annually and for longer periods, the quality and
effectiveness of programs operated under this chapter,
and the impact of the services provided through the
programs to support the attainment of higher education
for students from disadvantaged backgrounds, low-income
individuals, and prospective first-generation college
students.
(2) Use of measures.--The performance measures
described in paragraph (1) shall be used to--
(A) assess the impact of the specific
services provided by recipients of grants or
contracts under this chapter and, to the extent
the Secretary finds appropriate, administrative
and financial management practices of such
programs;
(B) identify strengths and weaknesses in the
provision of services provided by grantees
under this chapter;
(C) identify project operations that may
require training and technical assistance
resources.
(3) Additional measures.--In addition to the
performance measures in paragraph (1), each grant
recipient may establish local performance measures.
[(c)] (d) Procedures for Awarding Grants and Contracts.--
(1) * * *
(2) Selection.--
(A) In general.--In awarding grants from
among qualified applicants, the Secretary shall
consider the effectiveness of each applicant in
providing services under this chapter, based
on--
(i) the plan of such applicant to
deliver program services and achieve
expected program outcomes established
by the Secretary;
(ii) the plan of such applicant to
coordinate program services with other
programs for disadvantaged students;
and
(iii) any prior experience of such
applicant in achieving expected program
outcomes under this chapter.
(B) Additional criteria.--The Secretary may
establish additional selection criteria as
necessary to identify the most qualified
applicants.
[(2)] (3) Prior experience.--[In making grants under
this chapter, the Secretary shall consider each
applicant's prior experience of service delivery under
the particular program for which funds are sought. The
level of consideration given the factor of prior
experience shall not vary from the level of
consideration given such factor during fiscal years
1994 through 1997, except that grants made under
section 402H shall not be given prior experience
consideration.] (A) In making grants under this
chapter, the Secretary shall use the measures described
in subsection (c)(1) to evaluate each applicant's prior
experience in achieving expected program outcomes under
the particular program for which funds are sought.
(B) From the amount available under subsection (h)
for a program under this chapter (other than a program
under section 402G or 402H) for any fiscal year in
which the Secretary conducts a competition for the
award of grants or contracts under such program, the
Secretary shall reserve 10 percent of such available
amount for purposes of funding applications from novice
applicants. If the Secretary determines that there are
an insufficient number of qualified novice applicants
to utilize the amount so reserved, the Secretary shall
restore the unutilized remainder of the amount reserved
for use by applicants qualifying under subparagraph
(A).
(C) The Secretary shall not give prior experience
points to any current grantee that during the then most
recent period for which funds were provided--
(i) failed to meet one or more expected
program outcomes based on the performance
measures described in subsection (c); or
(ii) expended funds for indirect costs in an
amount that exceeded 8 percent of the total
grant award.
[(3)] (4) Order of awards; program fraud.--(A)
Except with respect to grants made under sections 402G
and 402H and as provided in subparagraph (B), the
Secretary shall award grants and contracts under this
chapter in the order of the scores received by the
application for such grant or contract in the peer
review process required [under paragraph (4)] under
paragraph (5) and adjusted for prior experience in
accordance [with paragraph (2)] with paragraph (3) of
this subsection.
[(B) The Secretary is not required to provide
assistance to a program otherwise eligible for
assistance under this chapter, if the Secretary has
determined that such program has involved the
fraudulent use of funds under this chapter.]
(B) The Secretary shall not provide assistance to an
entity if the Secretary has determined that such entity
has involved the fraudulent use of public or private
funds.
[(4)] (5) Peer review process.--(A) * * *
* * * * * * *
[(5)] (6) Number of applications for grants and
contracts.--The Secretary shall not limit the number of
applications submitted by an entity under any program
authorized under this chapter if the additional
applications describe programs serving different
populations or campuses.
[(6)] (7) Coordination with other programs for
disadvantaged students.--The Secretary shall encourage
coordination of programs assisted under this chapter
with other programs for disadvantaged students operated
by the sponsoring institution or agency, regardless of
the funding source of such programs. The Secretary
shall not limit an entity's eligibility to receive
funds under this chapter because such entity sponsors a
program similar to the program to be assisted under
this chapter, regardless of the funding source of such
program. The Secretary shall permit the Director of a
program receiving funds under this chapter to
administer one or more additional programs for
disadvantaged students operated by the sponsoring
institution or agency, regardless of the funding
sources of such programs.
[(7) Application status.--The Secretary shall inform
each entity operating programs under this chapter
regarding the status of their application for continued
funding at least 8 months prior to the expiration of
the grant or contract. The Secretary, in the case of an
entity that is continuing to operate a successful
program under this chapter, shall ensure that the
start-up date for a new grant or contract for such
program immediately follows the termination of the
preceding grant or contract so that no interruption of
funding occurs for such successful reapplicants. The
Secretary shall inform each entity requesting
assistance under this chapter for a new program
regarding the status of their application at least 8
months prior to the proposed startup date of such
program.]
[(d)] (e) Outreach.--
(1) * * *
* * * * * * *
[(3) Technical assistance.--The Secretary shall
provide technical training to applicants for projects
and programs authorized under this chapter. The
Secretary shall give priority to serving programs and
projects that serve geographic areas and eligible
populations which have been underserved by the programs
assisted under this chapter. Technical training
activities shall include the provision of information
on authorizing legislation, goals and objectives of the
program, required activities, eligibility requirements,
the application process and application deadlines, and
assistance in the development of program proposals and
the completion of program applications. Such training
shall be furnished at conferences, seminars, and
workshops to be conducted at not less than 10 sites
throughout the United States to ensure that all areas
of the United States with large concentrations of
eligible participants are served.]
(3) Technical assistance.--The Secretary shall
provide technical assistance to applicants for projects
and programs authorized under this chapter. The
Secretary shall give priority to serving programs and
projects that serve geographic areas and eligible
populations which have been underserved by the programs
assisted under this chapter. Technical training
activities shall include the provision of information
on authorizing legislation, goals and objectives of the
program, required activities, eligibility requirements,
the application process and application deadlines, and
assistance in the development of program proposals and
the completion of program applications.
* * * * * * *
(f) Recordkeeping and Reporting.--
(1) In general.--The Secretary shall establish
uniform reporting requirements and require each
recipient of funds under this chapter to submit
annually and in electronic form such information in
such manner and form and at such time as the Secretary
may require, except that reporting such information
shall not reveal personally identifiable information
about an individual student.
(2) Report to congress.--At least once every 2-year
period, the Secretary shall prepare and submit to the
authorizing committees, a report on the services
provided to students that shall include--
(A) a statement for the then most recently
concluded fiscal year specifying--
(i) the amount of funds received by
grantees to provide services under this
chapter; and
(ii) the amount of funds received by
new grantees to provide services under
this chapter;
(B) a description of the specific services
provided to students;
(C) a summary of the overall success in
achieving specific program outcomes or progress
toward such outcomes;
(D) a report of the number of students served
by types of service received;
(E) information summarizing the types of
organizations that received funds under this
chapter; and
(F) a summary of the research and evaluation
activities under section 402H, including--
(i) a status report on ongoing
activities; and
(ii) results, conclusions, and
recommendations of such activities
available after the then most recent
report.
[(e)] (g) Documentation of Status as a Low-Income
Individual.--(1) Except in the case of an independent student,
as defined in section 480(d), documentation of an individual's
status pursuant to subsection [(g)(2)] (i)(4) shall be made by
providing the Secretary with--
(A) * * *
* * * * * * *
(2) In the case of an independent student, as defined in
section 480(d), documentation of an individual's status
pursuant to subsection [(g)(2)] (i)(4) shall be made by
providing the Secretary with--
(A) * * *
* * * * * * *
(3) Notwithstanding this subsection and subsection (i)(4),
individuals who are homeless or unaccompanied youth 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 of this chapter.
[(f)] (h) Authorization of Appropriations.--For the purpose
of making grants and contracts under this chapter, there are
authorized to be appropriated [$700,000,000 for fiscal year
1999, and such sums as may be necessary for each of the 4
succeeding fiscal years] $836,500,000 for fiscal year 2006 and
such sums as may be necessary for each of the 5 succeeding
fiscal years. [Of the amount appropriated under this chapter,
the Secretary may use no more than \1/2\ of 1 percent of such
amount to obtain additional qualified readers and additional
staff to review applications, to increase the level of
oversight monitoring, to support impact studies, program
assessments and reviews, and to provide technical assistance to
potential applicants and current grantees. In expending these
funds, the Secretary shall give priority to the additional
administrative requirements provided in the Higher Education
Amendments of 1992, to outreach activities, and to obtaining
additional readers. The Secretary shall report to Congress by
October 1, 1994, on the use of these funds.] Of the amount
appropriated under this chapter, the Secretary may use no more
than one half of 1 percent of such amount to support the
administration of the Federal TRIO programs including to
increase the level of oversight monitoring, to support impact
studies, program assessments and reviews, and to provide
technical assistance to prospective applicants and current
grantees.
[(g)] (i) Definitions.--For the purpose of this chapter:
(1) Different campus.--The term ``different campus''
means an institutional site 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, with respect
to whom an entity seeks to serve through an application
for funding under this chapter, that--
(A) is separate and distinct from any other
population that the entity seeks to serve
through an application for funding under this
chapter; or
(B) while sharing some of the same needs as
another population that the entity seeks to
serve through an application for funding under
this chapter, has distinct needs for
specialized services.
[(1)] (3) First generation college student.--The term
``first generation college student'' means--
(A) * * *
* * * * * * *
[(2)] (4) Low-income individual.--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.
[(3)] (5) Veteran eligibility.--No veteran shall be
deemed ineligible to participate in any program under
this chapter [by reason of such individual's age] who--
(A) * * *
* * * * * * *
[(4)] (6) Waiver.--The Secretary may waive the
service requirements in subparagraph (A) or (B) of
paragraph (3) if the Secretary determines the
application of the service requirements to a veteran
will defeat the purpose of a program under this
chapter.
SEC. 402B. TALENT SEARCH.
(a) * * *
(b) Permissible Services.--Any talent search project assisted
under this chapter may provide services such as--
(1) * * *
* * * * * * *
(3) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;
[(3)] (4) assistance in preparing for college
entrance examinations;
[(4)] (5) guidance on and assistance in secondary
school reentry, entry to general educational
development (GED) programs, other alternative education
programs for secondary school dropouts, or
postsecondary education;
[(5)] (6) personal and career counseling, or
activities designed to acquaint individuals from
disadvantaged backgrounds with careers in which the
individuals are particularly underrepresented;
[(6)] (7) tutorial services;
[(7)] (8) exposure to college campuses as well as
cultural events, academic programs and other sites or
activities not usually available to disadvantaged
youth;
[(8)] (9) workshops and counseling for families of
students served;
[(9)] (10) 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
[(10)] (11) programs and activities as described in
paragraphs (1) [through (9)] through (10) which are
specially designed for students of limited English
proficiency.
* * * * * * *
(d) Expected Program Outcome.--For the purposes of assessing
an applicant's past performance under section 402A(c)(1), and
prior experience under section 402A(d)(3), the Secretary shall
consider the college-going rate of the participants served by
the program compared to that of other applicants eligible to
receive consideration of prior experience.
SEC. 402C. UPWARD BOUND.
(a) * * *
(b) Permissible Services.--Any upward bound project assisted
under this chapter may provide services such as--
(1) * * *
(2) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;
[(2)] (3) counseling and workshops;
[(3)] (4) academic advice and assistance in secondary
school course selection;
[(4)] (5) tutorial services;
[(5)] (6) exposure to cultural events, academic
programs, and other activities not usually available to
disadvantaged youth;
[(6)] (7) activities designed to acquaint youths
participating in the project with the range of career
options available to them;
[(7)] (8) instruction designed to prepare youths
participating in the project for careers in which
persons from disadvantaged backgrounds are particularly
underrepresented;
[(8)] (9) on-campus residential programs;
[(9)] (10) mentoring programs involving elementary or
secondary school teachers or counselors, faculty
members at institutions of higher education, students,
or any combination of such persons;
[(10)] (11) work-study positions where youth
participating in the project are exposed to careers
requiring a postsecondary degree;
[(11)] (12) special services to enable veterans to
make the transition to postsecondary education,
specifically in the fields of math and science; and
[(12)] (13) programs and activities as described in
paragraphs [(1) through (11)] (1) through (12) which
are specially designed for students of limited English
proficiency.
* * * * * * *
(e) Maximum Stipends.--Youths participating in a project
proposed to be carried out under any application may be paid
stipends not in excess of [$60] $100 per month during June,
July, and August, except that youth participating in a work-
study position under subsection [(b)(10)] (b)(11) may be paid a
stipend of $300 per month during June, July, and August. Youths
participating in a project proposed to be carried out under any
application may be paid stipends not in excess of [$40] $60 per
month during the remaining period of the year.
(f) Expected Program Outcome.--For the purposes of assessing
an applicant's past performance under section 402A(c)(1), and
prior experience under section 402A(d)(3), the Secretary shall
consider the college-going rate of the participants served by
the program compared to that of other applicants eligible to
receive consideration of prior experience.
SEC. 402D. STUDENT SUPPORT SERVICES.
(a) * * *
(b) Permissible Services.--A student support services project
assisted under this chapter may provide services such as--
(1) * * *
(2) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;
[(2)] (3) personal counseling;
[(3)] (4) academic advice and assistance in course
selection;
[(4)] (5) tutorial services and counseling and peer
counseling;
[(5)] (6) exposure to cultural events and academic
programs not usually available to disadvantaged
students;
[(6)] (7) activities designed to acquaint students
participating in the project with the range of career
options available to them;
[(7)] (8) activities designed to assist students
participating in the project in securing admission and
financial assistance for enrollment in graduate and
professional programs;
[(8)] (9) activities designed to assist students
currently enrolled in 2-year institutions in securing
admission and financial assistance for enrollment in a
four-year program of postsecondary education;
[(9)] (10) mentoring programs involving faculty or
upper class students, or a combination thereof; and
[(10)] (11) programs and activities as described in
paragraphs [(1) through (9)] (1) through (10) which are
specially designed for students of limited English
proficiency.
* * * * * * *
(d) Requirements for Approval of Applications.--In approving
applications for student support services projects under this
chapter for any fiscal year, the Secretary shall--
(1) * * *
* * * * * * *
(6) consider, in addition to such other criteria as
the Secretary may prescribe, the institution's effort,
and where applicable past history, in--
(A) providing sufficient financial assistance
to meet the full financial need of each student
in the project; [and]
(B) maintaining the loan burden of each such
student at a manageable level[.]; and
(C) working with other entities that serve
low-income working adults to increase access to
and successful progress in postsecondary
education by low-income working adults seeking
their first postsecondary degree or
certificate.
(e) Expected Program Outcome.--For the purposes of assessing
an applicant's past performance under section 402A(c)(1), and
prior experience under section 402A(d)(3), the Secretary shall
consider the college-going rate of the participants served by
the program compared to that of other applicants eligible to
receive consideration of prior experience.
SEC. 402E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.
(a) * * *
(b) Services.--A postbaccalaureate achievement project
assisted under this section may provide services such as--
(1) * * *
* * * * * * *
(7) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;
[(7)] (8) mentoring programs involving faculty
members at institutions of higher education, students,
or any combination of such persons; and
[(8)] (9) exposure to cultural events and academic
programs not usually available to disadvantaged
students.
* * * * * * *
(e) Maximum Stipends.--Students participating in research
under a postbaccalaureate achievement project may receive an
award that--
(1) shall include a stipend not to exceed [$2,800]
$5,000 per annum; and
* * * * * * *
[(f) Funding.--From amounts appropriated pursuant to the
authority of section 402A(f), the Secretary shall, to the
extent practicable, allocate funds for projects authorized by
this section in an amount which is not less than $11,000,000
for each of the fiscal years 1993 through 1997.]
(f) Expected Program Outcome.--For the purposes of assessing
an applicant's past performance under section 402A(c)(1), and
prior experience under section 402A(d)(3), the Secretary shall
consider the college-going rate of the participants served by
the program compared to that of other applicants eligible to
receive consideration of prior experience.
SEC. 402F. EDUCATIONAL OPPORTUNITY CENTERS.
(a) * * *
(b) Permissible Services.--An educational opportunity center
assisted under this section may provide services such as--
(1) * * *
* * * * * * *
(4) education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents;
[(4)] (5) assistance in preparing for college
entrance examinations;
[(5)] (6) guidance on secondary school reentry or
entry to a general educational development (GED)
program or other alternative education programs for
secondary school dropouts;
[(6)] (7) personal counseling;
[(7)] (8) tutorial services;
[(8)] (9) career workshops and counseling;
[(9)] (10) mentoring programs involving elementary or
secondary school teachers, faculty members at
institutions of higher education, students, or any
combination of such persons; and
[(10)] (11) programs and activities as described in
paragraphs [(1) through (9)] (1) through (10) which are
specially designed for students of limited English
proficiency.
(c) Requirements for Approval of Applications.--In approving
applications for educational opportunity centers under this
section for any fiscal year the Secretary shall--
(1) * * *
(2) require that such participants be persons who are
at least nineteen years of age, unless the imposition
of such limitation with respect to any person would
defeat the purposes of this section or the purposes of
section 402B; [and]
(3) require an assurance that individuals
participating in the project proposed in the
application do not have access to services from another
project funded under this section or under section
402B[.]; and
(4) consider the extent to which the proposed project
would provide services to low-income working adults in
the region to be served, in order to increase access to
postsecondary education by low-income working adults.
(d) Expected Program Outcome.--For the purposes of assessing
an applicant's past performance under section 402A(c)(1), and
prior experience under section 402A(d)(3), the Secretary shall
consider the college-going rate of the participants served by
the program compared to that of other applicants eligible to
receive consideration of prior experience.
[SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.
[(a) Secretary's Authority.--For the purpose of improving the
operation of the programs and projects authorized by this
chapter, the Secretary is authorized to make grants to
institutions of higher education and other public and private
nonprofit institutions and organizations to provide training
for staff and leadership personnel employed in, participating
in, or preparing for employment in, such programs and projects.
[(b) Contents of Training Programs.--Such training shall
include conferences, internships, seminars, workshops, and the
publication of manuals designed to improve the operation of
such programs and projects and shall be carried out in the
various regions of the Nation in order to ensure that the
training opportunities are appropriate to meet the needs in the
local areas being served by such programs and projects. Such
training shall be offered annually for new directors of
projects funded under this chapter as well as annually on the
following topics and other topics chosen by the Secretary:
[(1) Legislative and regulatory requirements for the
operation of programs funded under this chapter.
[(2) Assisting students in receiving adequate
financial aid from programs assisted under this title
and other programs.
[(3) The design and operation of model programs for
projects funded under this chapter.
[(4) The use of appropriate educational technology in
the operation of projects assisted under this chapter.
[(c) Consultation.--Grants for the purposes of this section
shall be made only after consultation with regional and State
professional associations of persons having special knowledge
with respect to the needs and problems of such programs and
projects.
[SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION PARTNERSHIP PROJECTS.
[(a) Evaluations.--
[(1) In general.--For the purpose of improving the
effectiveness of the programs and projects assisted
under this chapter, the Secretary may make grants to or
enter into contracts with institutions of higher
education and other public and private institutions and
organizations to evaluate the effectiveness of the
programs and projects assisted under this chapter.
[(2) Practices.--The evaluations described in
paragraph (1) shall identify institutional, community,
and program or project practices that are particularly
effective in enhancing the access of low-income
individuals and first-generation college students to
postsecondary education, the preparation of the
individuals and students for postsecondary education,
and the success of the individuals and students in
postsecondary education. Such evaluations shall also
investigate the effectiveness of alternative and
innovative methods within Federal TRIO programs of
increasing access to, and retention of, students in
postsecondary education.
[(b) Grants.--The Secretary may award grants to institutions
of higher education or other private and public institutions
and organizations, that are carrying out a program or project
assisted under this chapter prior to the date of enactment of
the Higher Education Amendments of 1998, to enable the
institutions and organizations to expand and leverage the
success of such programs or projects by working in partnership
with other institutions, community-based organizations, or
combinations of such institutions and organizations, that are
not receiving assistance under this chapter and are serving
low-income students and first generation college students, in
order to--
[(1) disseminate and replicate best practices of
programs or projects assisted under this chapter; and
[(2) provide technical assistance regarding programs
and projects assisted under this chapter.
[(c) Results.--In order to improve overall program or project
effectiveness, the results of evaluations and grants described
in this section shall be disseminated by the Secretary to
similar programs or projects assisted under this subpart, as
well as other individuals concerned with postsecondary access
for and retention of low-income individuals and first-
generation college students.]
SEC. 402G. STAFF DEVELOPMENT ACTIVITIES.
(a) Secretary's Authority.--For the purpose of improving the
operation of the programs and projects authorized by this
chapter, the Secretary is authorized to make grants to
institutions of higher education and other public and private
nonprofit institutions and organizations to provide training
and technical assistance for staff and leadership personnel
employed in, participating in, or preparing for employment in,
such programs and projects.
(b) Contents of Training Programs.--Such training shall be
provided to assist programs and projects in--
(1) achieving the expected program outcomes stated
under this chapter or additional outcomes identified by
individual programs or projects;
(2) addressing any identified program weaknesses in
the overall development, conduct, or administration of
a grant or contract;
(3) improving the quality of services provided to
eligible students; or
(4) additional areas in need of program improvement
as identified by the Secretary or as requested by
grantees in order to enhance program operations and
outcomes.
(c) Consultation.--Grants for the purposes of this section
shall be made only after consultation with regional and State
professional associations of persons having special knowledge
with respect to the needs and problems of such programs and
projects.
SEC. 402H. EVALUATIONS.
(a) Evaluations.--
(1) In general.--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 one or more organizations
to--
(A) evaluate the effectiveness of the
programs and projects assisted under this
chapter; and
(B) disseminate information on the impact of
the programs in increasing the education level
of participating students, as well as other
appropriate measures.
(2) Issues to be evaluated.--The evaluations
described in paragraph (1) shall measure the
effectiveness of programs under this chapter in--
(A) meeting the expected program outcomes
stated under this chapter and all performance
measures identified by the Secretary;
(B) enhancing the access of low-income
individuals and first-generation college
students to postsecondary education;
(C) preparing individuals and students for
postsecondary education;
(D) comparing the level of education
completed by students who participate in the
programs funded under this chapter with the
level of education completed by students of
similar backgrounds who do not participate in
such programs;
(E) comparing the retention rates, dropout
rates, graduation rates, and college admission
and completion rates of students who
participate in the programs funded under this
chapter with the rates of students of similar
backgrounds who do not participate in such
programs; and
(F) such other issues as the Secretary
considers appropriate for inclusion in the
evaluation.
(3) Program methods.--Such evaluations shall also
investigate the effectiveness of alternative and
innovative methods within Federal TRIO programs of
increasing access to, and retention of, students in
postsecondary education.
(b) Results.--The Secretary shall submit to the authorizing
committees--
(1) an annual interim report on the progress and
preliminary results of the evaluation of each program
funded under this chapter no later than 2 years
following the date of enactment of the College Access
and Opportunity Act of 2005; and
(2) a final report not later than 3 years following
the date of enactment of such Act.
(c) Public Availability.--All reports and underlying data
gathered pursuant to this section shall be made available to
the public upon request, in a timely manner following
submission of the applicable reports under subsection (b),
except that any personally identifiable information on students
participating in any TRIO program shall not be disclosed or
made available to the public.
CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS
SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM AUTHORIZED.
(a) * * *
(b) Awards.--
(1) * * *
(2) Priority.--In making awards to eligible entities
described in paragraph (c)(1), the Secretary shall--
(A) * * *
(B) ensure that students served under this
chapter on the day before the date of enactment
of the [Higher Education Amendments of 1998]
College Access and Opportunity Act of 2005
continue to receive assistance through the
completion of secondary school.
(3) Duration.--An award made by the Secretary under
this chapter to an eligible entity described in
paragraph (1) or (2) of subsection (c) shall be for the
period of 6 years.
* * * * * * *
(d) Continuing Eligibility.--An eligible entity shall not
cease to be an eligible entity upon the expiration of any grant
under this chapter (including a continuation award).
SEC. 404B. REQUIREMENTS.
(a) * * *
* * * * * * *
(g) Cohort Approach.--
(1) In general.--The Secretary shall require that
eligible entities described in section 404A(c)(2)--
(A) * * *
(B) ensure that the services are provided
through the 12th grade to students in the
participating grade level and provide the
option of continued services through the
student's first year of attendance at an
eligible institution of higher education.
* * * * * * *
SEC. 404C. ELIGIBLE ENTITY PLANS.
(a) Plan Required for Eligibility.--
(1) * * *
(2) Contents.--Each plan 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 require by
regulation. Each such plan shall--
(A) describe the activities for which
assistance under this chapter is sought; [and]
(B) describe activities for coordinating,
complementing, and enhancing services under
this chapter provided by other eligible
entities in the State; and
[(B)] (C) provide such additional assurances
as the Secretary determines necessary to ensure
compliance with the requirements of this
chapter.
* * * * * * *
SEC. 404D. EARLY INTERVENTION.
(a) * * *
(b) Uses of Funds.--
(1) * * *
(2) Permissible activities.--Examples of activities
that meet the requirements of subsection (a) include
the following:
(A) Providing eligible students in preschool
through grade 12 and students in the first year
of attendance at an eligible institution of
higher education with a continuing system of
mentoring and advising that--
(i) * * *
(ii) may include such support
services as after school and summer
tutoring, assistance in obtaining
summer jobs, career mentoring, [and
academic counseling] academic
counseling, and financial literacy and
economic literacy education or
counseling.
* * * * * * *
(c) Priority Students.--For eligible entities not using a
cohort approach, the eligible entity shall treat as priority
students any student in preschool through grade 12, and may
consider students in their first year of attendance at an
eligible institution, who is eligible--
(1) * * *
* * * * * * *
(e) Homeless and Unaccompanied Youth.--Notwithstanding any
other provision of this chapter, individuals who are homeless
or unaccompanied youth as defined in section 725 of the
McKinney-Vento Homeless Assistance Act shall be eligible to
participate in programs under this section.
SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
chapter [$200,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years]
$306,500,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
[CHAPTER 3--ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS
[SEC. 406A. SCHOLARSHIPS AUTHORIZED.
[The Secretary is authorized to award scholarships to
students who graduate from secondary school after May 1, 2000,
to enable the students to pay the cost of attendance at an
institution of higher education during the students first 2
academic years of undergraduate education, if the students--
[(1) are eligible to receive Federal Pell Grants for
the year in which the scholarships are awarded; and
[(2) demonstrate academic achievement by graduating
in the top 10 percent of their secondary school
graduating class.
[SEC. 406B. SCHOLARSHIP PROGRAM REQUIREMENTS.
[(a) Amount of Award.--
[(1) In general.--Except as provided in paragraph
(2), the amount of a scholarship awarded under this
chapter for any academic year shall be equal to 100
percent of the amount of the Federal Pell Grant for
which the recipient is eligible for the academic year.
[(2) Adjustment for insufficient appropriations.--If,
after the Secretary determines the total number of
eligible applicants for an academic year in accordance
with section 406C, funds available to carry out this
chapter for the academic year are insufficient to fully
fund all awards under this chapter for the academic
year, the amount of the scholarship paid to each
student under this chapter shall be reduced
proportionately.
[(b) Assistance Not To Exceed Cost of Attendance.--A
scholarship awarded under this chapter to any student, in
combination with the Federal Pell Grant assistance and other
student financial assistance available to such student, may not
exceed the student's cost of attendance.
[SEC. 406C. ELIGIBILITY OF SCHOLARS.
[(a) Procedures Established by Regulation.--The Secretary
shall establish by regulation procedures for the determination
of eligibility of students for the scholarships awarded under
this chapter. Such procedures shall include measures to prevent
any secondary school from certifying more than 10 percent of
the school's students for eligibility under this section.
[(b) Coordination.--In prescribing procedures under
subsection (a), the Secretary shall ensure that the
determination of eligibility and the amount of the scholarship
is determined in a timely and accurate manner consistent with
the requirements of section 482 and the submission of the
financial aid form required by section 483. For such purposes,
the Secretary may provide that, for the first academic year of
a student's 2 academic years of eligibility under this chapter,
class rank may be determined prior to graduation from secondary
school, at such time and in such manner as the Secretary may
specify in regulations prescribed under this chapter.
[SEC. 406D. STUDENT REQUIREMENTS.
[(a) In General.--Each eligible student desiring a
scholarship under this chapter shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may reasonably require.
[(b) Continuing Eligibility.--In order for a student to
continue to be eligible to receive a scholarship under this
chapter for the second year of undergraduate education, the
eligible student shall maintain eligibility to receive a
Federal Pell Grant for that year, including fulfilling the
requirements for satisfactory progress described in section
484(c).
[SEC. 407E. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
chapter $200,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years.]
Subpart 3--Federal Supplemental Educational Opportunity Grants
SEC. 413A. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) * * *
(b) Authorization of Appropriations.--(1) For the purpose of
enabling the Secretary to make payments to institutions of
higher education which have made agreements with the Secretary
in accordance with section 413C(a), for use by such
institutions for payments to undergraduate students of
supplemental grants awarded to them under this subpart, there
are authorized to be appropriated [$675,000,000 for fiscal year
1999 and such sums as may be necessary for the 4 succeeding
fiscal years] $779,000,000 for fiscal year 2006 and such sums
as may be necessary for the 5 succeeding fiscal years.
* * * * * * *
SEC. 413C. AGREEMENTS WITH INSTITUTIONS; SELECTION OF RECIPIENTS.
(a) * * *
* * * * * * *
(c) Selection of Individuals and Determination of Amount of
Awards.--(1) * * *
[(2)(A) In carrying out paragraph (1) of this subsection,
each institution of higher education shall, in the agreement
made under section 487, assure that the selection procedures--
[(i) will be designed to award supplemental grants
under this subpart, first, to students with exceptional
need, and
[(ii) will give a priority for supplemental grants
under this subpart to students who receive Pell Grants
and meet the requirements of section 484.
[(B) For the purpose of subparagraph (A), the term ``students
with exceptional need'' means students with the lowest expected
family contributions at the institution.]
(2) In carrying out paragraph (1) of this subsection, each
institution of higher education shall, in the agreement made
under section 487, assure that the selection procedures--
(A) will give a priority for supplemental grants
under this subpart to students who receive Pell Grants
and meet the requirements of section 484; and
(B) will award no more than 10 percent of each
institution's allocation received under section 413D to
students who did not receive Federal Pell Grants in a
prior year.
* * * * * * *
SEC. 413D. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 413A(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution an amount equal to 100 percent of the amount 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).
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this subpart after fiscal
year 1999 but is not a first or second time participant, an
amount equal to the greater of--
[(i) $5,000; or
[(ii) 90 percent of the amount received and used
under this subpart for the first year it participated
in the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this subpart after fiscal
year 1999 and is a first or second time participant, an amount
equal to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this subpart in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).
[(4)(A) Notwithstanding any other provision of this section,
the Secretary may allocate an amount equal to not more than 10
percent of the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000 among
eligible institutions described in subparagraph (B).
[(B) In order to receive an allocation pursuant to
subparagraph (A) an institution shall be an eligible
institution from which 50 percent or more of the Pell Grant
recipients attending such eligible institution graduate from or
transfer to a 4-year institution of higher education.]
(a) Allocation Based on Previous Allocation.--
(1) Base guarantee.--From the amount appropriated
pursuant to section 413A(b) for each fiscal year after
fiscal year 2007, the Secretary shall, subject to
paragraph (2), first allocate to each eligible
institution an amount equal to the following percentage
of the amount such institution received under
subsection (a) of this section for fiscal year 2007 (as
such subsection was in effect with respect to
allocations for such fiscal year):
(A) 80 percent for fiscal years 2008 and
2009;
(B) 60 percent for fiscal years 2010 and
2011;
(C) 40 percent for fiscal years 2012 and
2013;
(D) 20 percent for fiscal years 2014 and
2015; and
(E) 0 percent for fiscal year 2016 and any
succeeding fiscal year.
(2) Ratable reductions for insufficient
appropriations.--
(A) Reduction of base guarantee.--If the
amount appropriated for any fiscal year is less
than the amount required to be allocated to all
institutions under this subsection, then the
amount of the allocation to each such
institution shall be ratably reduced.
(B) Additional appropriations allocation.--If
additional amounts are appropriated for any
such fiscal year, such reduced amounts shall be
increased on the same basis as they were
reduced (until the amount allocated equals the
amount required to be allocated under this
subsection).
(3) Additional allocations for certain
institutions.--
(A) Allocations permitted.--Notwithstanding
any other provision of this section, the
Secretary may allocate an amount equal to not
more than 10 percent of the amount by which the
amount appropriated in any fiscal year to carry
out this subpart exceeds $700,000,000 among
eligible institutions described in subparagraph
(B).
(B) Eligible institutions.--An otherwise
eligible institution may receive a portion of
the allocation described in subparagraph (A)
if--
(i) not less than 10 percent of the
students attending the institution
receive Federal Pell Grants; and
(ii)(I) in the case of an institution
that offers programs of at least 4
years in duration, if its graduation
rate for Federal Pell Grant recipients
attending the institution and
graduating within the period of time
equal to normal duration of the longest
undergraduate program offered by the
institution, as measured from the first
day of their enrollment, exceeds the
median rate for the class of
institution (as defined in section
131(f)(5)(C)); or
(II) in the case of an institution
that offers programs of at least 2, but
less than 4, years in duration, if its
rate for Federal Pell Grant recipients
attending the institution and
graduating or transferring to an
institution that offers programs of at
least 4 years in duration within the
period of time equal to the normal
duration of the program offered, as
measured from the first day of their
enrollment, exceeds the median rate for
the class of institution (as defined in
section 131(f)(5)(C)).
* * * * * * *
(c) Determination of Institution's Need.--(1) * * *
* * * * * * *
(3)(A) * * *
* * * * * * *
(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to [$450] $600.
* * * * * * *
Subpart 4--Leveraging Educational Assistance Partnership Program
SEC. 415A. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) * * *
(b) Authorization of Appropriations; Availability.--
(1) In general.--There are authorized to be
appropriated $105,000,000 for fiscal year [1999] 2006,
and such sums as may be necessary for each of the [4] 5
succeeding fiscal years.
* * * * * * *
Subpart 5--Special Programs for Students Whose Families Are Engaged in
Migrant and Seasonal Farmwork
SEC. 418A. MAINTENANCE AND EXPANSION OF EXISTING PROGRAMS.
(a) * * *
(b) Services Provided by High School Equivalency Program.--
The services authorized by this subpart for the high school
equivalency program include--
(1) recruitment services to reach persons--
(A) * * *
(B)(i) who themselves, or whose spouse, or
whose parents, have spent a minimum of 75 days
during the past 24 months in migrant and
seasonal farmwork; or
* * * * * * *
(3) supportive services which include the following:
(A) * * *
(B) placement services designed to place
students in a university, college, or junior
college program, including preparation for
college entrance exams, or in military service
or career positions; and
* * * * * * *
(7) exposure to cultural events, academic programs,
and other educational and cultural activities usually
not available to migrant youth; [and]
(8) other essential supportive services, including
child care and transportation, as needed to ensure the
success of eligible students[.]; and
(9) follow-up activity and reporting requirements,
except that not more than 2 percent of the funds
provided under this section may be used for such
purposes.
(c) Services Provided by College Assistance Migrant
Program.--(1) Services authorized by this subpart for the
college assistance migrant program include--
(A) outreach and recruitment services to reach
persons who themselves, or whose spouse or whose
parents have spent a minimum of 75 days during the past
24 months in migrant and seasonal farmwork or who have
participated or are eligible to participate, in
programs under part C of title I of the Elementary and
Secondary Education Act of 1965 (or such part's
predecessor authority) or section 402 of the Job
Training Partnership Act or section 167 of the
Workforce Investment Act of 1998, and who meet the
minimum qualifications for attendance at a college or
university;
(B) supportive and instructional services which
include:
[(i) personal, academic, and career
counseling as an ongoing part of the program;]
(i) personal, academic, career, and economic
education or personal finance counseling as an
ongoing part of the program;
* * * * * * *
(2) A recipient of a grant to operate a college assistance
migrant program under this subpart shall provide followup
services for migrant students after such students have
completed their first year of college, and shall not use more
than 10 percent of such grant for such followup services. Such
followup services may include--
(A) monitoring and reporting the academic progress of
students who participated in the project during such
student's first year of college and during such
student's subsequent years in college; [and]
(B) referring such students to on- or off-campus
providers of counseling services (including mentoring
and guidance of such students), academic assistance, or
financial aid[.]; and
(C) for students in any program that does not award a
bachelor's degree, encouraging the transfer to, and
persistence in, such a program, and monitoring the rate
of such transfer, persistence, and completion.
* * * * * * *
(e) Five-year Grant Period; Consideration of Prior
Experience.--Except under extraordinary circumstances, the
Secretary shall award grants for a 5-year period. For the
purpose of making grants under this subpart, the Secretary
shall consider the prior experience of service delivery under
the particular project for which funds are sought by each
applicant. Such prior experience shall be awarded the same
level of consideration given this factor for applicants for
programs in accordance with [section 402A(c)(1)] section
402A(c)(2).
* * * * * * *
(h) Authorization of Appropriations.--(1) There are
authorized to be appropriated for the high school equivalency
program [$15,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years]
$24,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
(2) There are authorized to be appropriated for the college
assistance migrant program [$5,000,000 for fiscal year 1999 and
such sums as may be necessary for each of the 4 succeeding
fiscal years] $16,000,000 for fiscal year 2006 and such sums as
may be necessary for each of the 5 succeeding fiscal years.
[Subpart 6--Robert C. Byrd Honors Scholarship Program
[SEC. 419A. STATEMENT OF PURPOSE.
[It is the purpose of this subpart to establish a Robert C.
Byrd Honors Scholarship Program to promote student excellence
and achievement and to recognize exceptionally able students
who show promise of continued excellence.
[SEC. 419C. SCHOLARSHIPS AUTHORIZED.
[(a) Program Authority.--The Secretary is authorized, in
accordance with the provisions of this subpart, to make grants
to States to enable the States to award scholarships to
individuals who have demonstrated outstanding academic
achievement and who show promise of continued academic
achievement.
[(b) Period of Award.--Scholarships under this section shall
be awarded for a period of not less than 1 or more than 4 years
during the first 4 years of study at any institution of higher
education eligible to participate in any programs assisted
under this title. The State educational agency administering
the program in a State shall have discretion to determine the
period of the award (within the limits specified in the
preceding sentence), except that--
[(1) if the amount appropriated for this subpart for
any fiscal year exceeds the amount appropriated for
this subpart for fiscal year 1993, the Secretary shall
identify to each State educational agency the number of
scholarships available to that State under section
419D(b) that are attributable to such excess;
[(2) the State educational agency shall award not
less than that number of scholarships for a period of 4
years.
[(c) Use at any Institution Permitted.--A student awarded a
scholarship under this subpart may attend any institution of
higher education.
[(d) Byrd Scholars.--Individuals awarded scholarships under
this subpart shall be known as ``Byrd Scholars''.
[SEC. 419D. ALLOCATION AMONG STATES.
[(a) Allocation Formula.--From the sums appropriated pursuant
to the authority of section 419K for any fiscal year, the
Secretary shall allocate to each State that has an agreement
under section 419E an amount equal to $1,500 multiplied by the
number of scholarships determined by the Secretary to be
available to such State in accordance with subsection (b).
[(b) Number of Scholarships Available.--The number of
scholarships to be made available in a State for any fiscal
year shall bear the same ratio to the number of scholarships
made available to all States as the State's population ages 5
through 17 bears to the population ages 5 through 17 in all the
States, except that not less than 10 scholarships shall be made
available to any State.
[(c) Use of Census Data.--For the purpose of this section,
the population ages 5 through 17 in a State and in all the
States shall be determined by the most recently available data,
satisfactory to the Secretary, from the Bureau of the Census.
[(d) Consolidation by Insular Areas Prohibited.--
Notwithstanding section 501 of Public Law 95-1134 (48 U.S.C.
1469a), funds allocated under this part to an Insular Area
described in that section shall be deemed to be direct payments
to classes of individuals, and the Insular Area may not
consolidate such funds with other funds received by the Insular
Area from any department or agency of the United States
Government.
[(e) FAS Eligibility.--
[(1) Fiscal years 2000 through 2004.--Notwithstanding
any other provision of this subpart, in the case of
students from the Freely Associated States who may be
selected to receive a scholarship under this subpart
for the first time for any of the fiscal years 2000
through 2004--
[(A) there shall be 10 scholarships in the
aggregate awarded to such students for each of
the fiscal years 2000 through 2004; and
[(B) the Pacific Regional Educational
Laboratory shall administer the program under
this subpart in the case of scholarships for
students in the Freely Associated States.
[(2) Termination of eligibility.--A student from the
Freely Associated States shall not be eligible to
receive a scholarship under this subpart after
September 30, 2004.
[SEC. 419E. AGREEMENTS.
[The Secretary shall enter into an agreement with each State
desiring to participate in the scholarship program authorized
by this subpart. Each such agreement shall include provisions
designed to assure that--
[(1) the State educational agency will administer the
scholarship program authorized by this subpart in the
State;
[(2) the State educational agency will comply with
the eligibility and selection provisions of this
subpart;
[(3) the State educational agency will conduct
outreach activities to publicize the availability of
scholarships under this subpart to all eligible
students in the State, with particular emphasis on
activities designed to assure that students from low-
income and moderate-income families have access to the
information on the opportunity for full participation
in the scholarship program authorized by this subpart;
and
[(4) the State educational agency will pay to each
individual in the State who is awarded a scholarship
under this subpart $1,500.
[SEC. 419F. ELIGIBILITY OF SCHOLARS.
[(a) High School Graduation or Equivalent and Admission to
Institution Required.--Each student awarded a scholarship under
this subpart shall be a graduate of a public or private
secondary school or have the equivalent of a certificate of
graduation as recognized by the State in which the student
resides and must have been admitted for enrollment at an
institution of higher education.
[(b) Selection Based on Promise of Academic Achievement.--
Each student awarded a scholarship under this subpart must
demonstrate outstanding academic achievement and show promise
of continued academic achievement.
[SEC. 419G. SELECTION OF SCHOLARS.
[(a) Establishment of Criteria.--The State educational agency
is authorized to establish the criteria for the selection of
scholars under this subpart.
[(b) Adoption of Procedures.--The State educational agency
shall adopt selection procedures designed to ensure an
equitable geographic distribution of awards within the State
(and in the case of the Federated States of Micronesia, the
Republic of the Marshall Islands, the Virgin Islands, American
Samoa, the Commonwealth of the Northern Mariana Islands, Guam,
or Palau (until such time as the Compact of Free Association is
ratified), not to exceed 10 individuals will be selected from
such entities).
[(c) Consultation Requirement.--In carrying out its
responsibilities under subsections (a) and (b), the State
educational agency shall consult with school administrators,
school boards, teachers, counselors, and parents.
[(d) Timing of Selection.--The selection process shall be
completed, and the awards made, prior to the end of each
secondary school academic year.
[SEC. 419H. STIPENDS AND SCHOLARSHIP CONDITIONS.
[(a) Amount of Award.--Each student awarded a scholarship
under this subpart shall receive a stipend of $1,500 for the
academic year of study for which the scholarship is awarded,
except that in no case shall the total amount of financial aid
awarded to such student exceed such student's total cost-of-
attendance.
[(b) Use of Award.--The State educational agency shall
establish procedures to assure that a scholar awarded a
scholarship under this subpart pursues a course of study at an
institution of higher education.
[SEC. 419J. CONSTRUCTION OF NEEDS PROVISIONS.
[Except as provided in section 471, nothing in this subpart,
or any other Act, shall be construed to permit the receipt of a
scholarship under this subpart to be counted for any needs test
in connection with the awarding of any grant or the making of
any loan under this Act or any other provision of Federal law
relating to educational assistance.
[SEC. 419K. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated for this subpart
$45,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years.]
Subpart 6--Robert C. Byrd Honors Scholarship Program
SEC. 419A. ROBERT C. BYRD MATHEMATICS AND SCIENCE HONORS SCHOLARSHIP
PROGRAM.
(a) Purpose.--The purpose of this section is to award
scholarships to students who are enrolled in studies leading to
baccalaureate and advanced degrees in physical, life, or
computer sciences, mathematics, and engineering.
(b) Definitions.--As used in this section--
(1) the term ``computer science'' means the branch of
knowledge or study of computers, including such fields
of knowledge or study as computer hardware, computer
software, computer engineering, information systems,
and robotics;
(2) the term ``eligible student'' means a student
who--
(A) is a citizen of the United States;
(B) is selected by the managing agent to
receive a scholarship;
(C) is enrolled full-time in an institution
of higher education, other than a United States
service academy; and
(D) has shown a commitment to and is pursuing
a major in studies leading to a baccalaureate,
masters, or doctoral degree (or a combination
thereof) in physical, life, or computer
sciences, mathematics, or engineering;
(3) the term ``engineering'' means the science by
which the properties of matter and the sources of
energy in nature are made useful to humanity in
structures, machines, and products, as in the
construction of engines, bridges, buildings, mines, and
chemical plants, including such fields of knowledge or
study as aeronautical engineering, chemical
engineering, civil engineering, electrical engineering,
industrial engineering, materials engineering,
manufacturing engineering, and mechanical engineering;
(4) the term ``life sciences'' means the branch of
knowledge or study of living things, including such
fields of knowledge or study as biology, biochemistry,
biophysics, microbiology, genetics, physiology, botany,
zoology, ecology, and behavioral biology, except that
the term does not encompass social psychology or the
health professions;
(5) the term ``managing agent'' means an entity to
which an award is made under subsection (c) to manage a
program of Mathematics and Science Honors Scholarships;
(6) the term ``mathematics'' means the branch of
knowledge or study of numbers and the systematic
treatment of magnitude, relationships between figures
and forms, and relations between quantities expressed
symbolically, including such fields of knowledge or
study as statistics, applied mathematics, and
operations research; and
(7) the term ``physical sciences'' means the branch
of knowledge or study of the material universe,
including such fields of knowledge or study as
astronomy, atmospheric sciences, chemistry, earth
sciences, ocean sciences, physics, and planetary
sciences.
(c) Award.--
(1)(A) From funds authorized under section 419D to
carry out this section, the Secretary is authorized,
through a grant or cooperative agreement, to make an
award to a private, non-profit organization, other than
an institution of higher education or system of
institutions of higher education, to manage, through a
public and private partnership, a program of
Mathematics and Science Honors Scholarships under this
section.
(B) The award under subparagraph (A) shall be for a
five-year period.
(2)(A) One hundred percent of the funds awarded under
paragraph (1)(A) for any fiscal year shall be obligated
and expended solely on scholarships to eligible
students.
(B) No Federal funds shall be used to provide more
than 50 percent of the cost of any scholarship to an
eligible student.
(C) The maximum scholarship award shall be the
difference between an eligible student's cost of
attendance minus any non-loan based aid such student
receives.
(3)(A) The secretary may establish--
(i) eligibility criteria for applicants for
managing agent, including criteria regarding
financial and administrative capability; and
(ii) operational standards for the managing
agent, including management and performance
requirements, such as audit, recordkeeping,
record retention, and reporting procedures and
requirements.
(B) The Secretary, as necessary, may review and
revise any criteria, standards, and rules established
under this paragraph and, through the agreement with
the managing agent, see that any revisions are
implemented.
(4) If the managing agent fails to meet the
requirements of this section the Secretary may
terminate the award to the managing agent.
(5) The Secretary shall conduct outreach efforts to
help raise awareness of the Mathematics and Science
Honors Scholarships.
(d) Duties of the Managing Agent.--The managing agent shall--
(1) develop criteria to award Mathematics and Science
Honors Scholarships based on established measurements
available to secondary students who wish to pursue
degrees in physical, life, or computer sciences,
mathematics, and engineering;
(2) establish a Mathematics and Science Honors
Scholarship Fund in a separate, named account that
clearly discloses the amount of Federal and non-Federal
funds deposited in the account and used for
scholarships under this section;
(3) solicit funds for scholarships and for the
administration of the program from non-Federal sources;
(4) solicit applicants for scholarships;
(5) from the amounts in the Fund, award scholarships
to eligible students and transfer such funds to the
institutions of higher education that they attend; and
(6) annually submit to the Secretary a financial
audit and a report on the progress of the program, and
such other documents as the Secretary may require to
determine the effective management of the program.
(e) Applications.--
(1) Any eligible entity that desires to be the
managing agent under this section shall submit an
application to the Secretary, in such form and
containing such information, as the Secretary may
require.
(2) Each application shall include a description of--
(A) how the applicant meets or will meet
requirements established under subsections
(c)(3)(A) and (d);
(B) how the applicant will solicit funds for
scholarships and for the administration of the
program from non-Federal sources;
(C) how the applicant will provide nationwide
outreach to inform students about the program
and to encourage students to pursue degrees in
physical, life, or computer sciences,
mathematics, and engineering;
(D) how the applicant will solicit
applications for scholarships, including how
the applicant will balance efforts in urban and
rural areas;
(E) the selection criteria based on
established measurements available to secondary
students the applicant will use to award
scholarships and to renew those awards;
(F) how the applicant will inform the
institution of higher education chosen by the
recipient of the name and scholarship amount of
the recipient;
(G) what procedures and assurances the
applicant and the institution of higher
education that the recipient attends will use
to verify student eligibility, attendance,
degree progress, and academic performance and
to deliver and account for payments to such
institution;
(H) the management (including audit and
accounting) procedures the applicant will use
for the program;
(I) the human, financial, and other resources
that the applicant will need and use to manage
the program;
(J) how the applicant will evaluate the
program and report to the Secretary annually;
and
(K) a description of how the entity will
coordinate with, complement, and build on
similar public and private mathematics and
science programs.
(f) Scholarship Recipients.--
(1) A student receiving a scholarship under this
section shall be known as a ``Byrd Mathematics and
Science Honors Scholar''.
(2) Any student desiring to receive a scholarship
under this section shall submit an application to the
managing agent in such form, and containing such
information, as the managing agent may require.
(3) Any student that receives a scholarship under
this section shall enter into an agreement with the
managing agent to complete 5 consecutive years of
service to begin no later than 12 months following
completion of the final degree in a position related to
physical, life, or computer sciences, mathematics, or
engineering as defined under this section.
(4) If any student that receives a scholarship under
this section fails to earn at least a baccalaureate
degree in physical, life, or computer sciences,
mathematics, or engineering as defined under this
section, the student shall repay to the managing agent
the amount of any financial assistance paid to such
student.
(5) If any student that receives a scholarship under
this section fails to meet the requirements of
paragraph (3), the student shall repay to the managing
agent the amount of any financial assistance paid to
such student.
(6)(A) Scholarships shall be awarded for only one
academic year of study at a time.
(B)(i) A scholarship shall be renewable on an annual
basis for the established length of the academic
program if the student awarded the scholarship remains
eligible.
(ii) The managing agent may condition renewal of a
scholarship on measures of academic progress and
achievement, with the approval of the Secretary.
(C)(i) If a student fails to either remain eligible
or meet established measures of academic progress and
achievement, the managing agent shall instruct the
student's institution of higher education to suspend
payment of the student's scholarship.
(ii) A suspension of payment shall remain in effect
until the student is able to demonstrate to the
satisfaction of the managing agent that he or she is
again eligible and meets the established measures of
academic progress and achievement.
(iii) A student's eligibility for a scholarship shall
be terminated if a suspension period exceeds 12 months.
(D)(i)(I) A student awarded a scholarship may, in a
manner and under the terms established by, and with the
approval of, the managing agent, postpone or interrupt
his or her enrollment at an institution of higher
education for up to 12 months.
(II) Such a postponement or interruption
shall not be considered a suspension for
purposes of subparagraph (C).
(ii) Neither a student nor the student's institution
of higher education shall receive the student's
scholarship payments during the period of postponement
or interruption, but such payments shall resume upon
enrollment or reenrollment.
(iii) In exceptional circumstances, such as serious
injury or illness or the necessity to care for family
members, the student's postponement or interruption
may, upon notification and approval of the managing
agent, be extended beyond the 12 month period described
in clause (i)(I).
(g) Responsibilities of Institution of Higher Education.--
(1) The managing agent shall require any institution
of higher education that enrolls a student who receives
a scholarship under this section to annually provide an
assurance, prior to making any payment, that the
student--
(A) is eligible in accordance with subsection (b)(2);
and
(B) has provided the institution with a written
commitment to attend, or is attending, classes and is
satisfactorily meeting the institution's academic
criteria for enrollment in its program of study.
(2)(A) The managing agent shall provide the
institution of higher education with payments from the
Fund for selected recipients in at least two
installments.
(B) An institution of higher education shall return
prorated amounts of any scholarship payment to the
managing agent, who shall deposit it in to the Fund, if
a recipient declines a scholarship, does not attend
courses, transfers to another institution of higher
education, or becomes ineligible for a scholarship.
SEC. 419B. MATHEMATICS AND SCIENCE INCENTIVE PROGRAM.
(a) Program.--
(1) In general.--The Secretary is authorized to carry
out a program of assuming the obligation to pay,
pursuant to the provisions of this section, the
interest on a loan made, insured, or guaranteed under
part B or D of this title.
(2) Eligibility.--The Secretary may assume interest
payments under paragraph (1) only for a borrower who--
(A) has submitted an application in
compliance with subsection (d);
(B) obtained one or more loans described in
paragraph (1) as an undergraduate student;
(C) is a new borrower (within the meaning of
section 103(7) of this Act) on or after the
date of enactment of the College Access and
Opportunity Act of 2005;
(D) is a highly qualified teacher of science,
technology, engineering or mathematics at an
elementary or secondary school in a high need
local educational agency, or is a mathematics,
science, or engineering professional; and
(E) enters into an agreement with the
Secretary to complete 5 consecutive years of
service in a position described in subparagraph
(D), starting on the date of the agreement.
(3) Prior interest limitations.--The Secretary shall
not make any payments for interest that--
(A) accrues prior to the beginning of the
repayment period on a loan in the case of a
loan made under section 428H or a Federal
Direct Unsubsidized Stafford Loan; or
(B) has accrued prior to the signing of an
agreement under paragraph (2)(E).
(4) Initial selection.--In selecting participants for
the program under this section, the Secretary--
(A) shall choose among eligible applicants on
the basis of--
(i) the national security, homeland
security, and economic security needs
of the United States, as determined by
the Secretary, in consultation with
other Federal agencies, including the
Departments of Labor, Defense, Homeland
Security, Commerce, and Energy, the
Central Intelligence Agency, and the
National Science Foundation; and
(ii) the academic record or job
performance of the applicant; and
(B) may choose among eligible applicants on
the basis of--
(i) the likelihood of the applicant
to complete the 5-year service
obligation;
(ii) the likelihood of the applicant
to remain in science, mathematics, or
engineering after the completion of the
service requirement; or
(iii) other relevant criteria
determined by the Secretary.
(5) Availability subject to appropriations.--Loan
interest payments under this section shall be subject
to the availability of appropriations. If the amount
appropriated for any fiscal year is not sufficient to
provide interest payments on behalf of all qualified
applicants, the Secretary shall give priority to those
individuals on whose behalf interest payments were made
during the preceding fiscal year.
(6) Regulations.--The Secretary is authorized to
prescribe such regulations as may be necessary to carry
out the provisions of this section.
(b) Duration and Amount of Interest Payments.--The period
during which the Secretary shall pay interest on behalf of a
student borrower who is selected under subsection (a) is the
period that begins on the effective date of the agreement under
subsection (a)(2)(E), continues after successful completion of
the service obligation, and ends on the earlier of--
(1) the completion of the repayment period of the
loan;
(2) payment by the Secretary of a total of $5,000 on
behalf of the borrower;
(3) if the borrower ceases to fulfill the service
obligation under such agreement prior to the end of the
5-year period, as soon as the borrower is determined to
have ceased to fulfill such obligation in accordance
with regulations of the Secretary; or
(4) 6 months after the end of any calendar year in
which the borrower's gross income equals or exceeds 4
times the national per capita disposable personal
income (current dollars) for such calendar year, as
determined on the basis of the National Income and
Product Accounts Tables of the Bureau of Economic
Analysis of the Department of Commerce, as determined
in accordance with regulations prescribed by the
Secretary.
(c) Repayment to Eligible Lenders.--Subject to the
regulations prescribed by the Secretary by regulation under
subsection (a)(6), the Secretary shall pay to each eligible
lender or holder for each payment period the amount of the
interest that accrues on a loan of a student borrower who is
selected under subsection (a).
(d) Application for Repayment.--
(1) In general.--Each eligible individual desiring
loan interest payment under this section shall submit a
complete and accurate application to the Secretary at
such time, in such manner, and containing such
information as the Secretary may require.
(2) Failure to complete service agreement.--Such
application shall contain an agreement by the
individual that, if the individual fails to complete
the 5 consecutive years of service required by
subsection (a)(2)(E), the individual agrees to repay
the Secretary the amount of any interest paid by the
Secretary on behalf of the individual.
(e) Treatment of Consolidation Loans.--A consolidation loan
made under section 428C of this Act, or a Federal Direct
Consolidation Loan made under part D of title IV of this Act,
may be a qualified loan for the purpose of this section only to
the extent that such loan amount was used by a borrower who
otherwise meets the requirements of this section to repay--
(1) a loan made under section 428 or 428H of this
Act; or
(2) a Federal Direct Stafford Loan, or a Federal
Direct Unsubsidized Stafford Loan, made under part D of
title IV of this Act.
(f) Prevention of Double Benefits.--No borrower may, for the
same service, receive a benefit under both this section and--
(1) any loan forgiveness program under title IV of
this Act; or
(2) subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12601 et
seq.).
(g) Definitions.--As used in this section--
(1) the term ``high need local educational agency''
has the same meaning given such term in section
201(b)(4); and
(2) the term ``mathematics, science, or engineering
professional'' means a person who--
(A) holds a baccalaureate, masters, or
doctoral degree (or a combination thereof) in
science, mathematics, or engineering; and
(B) works in a field the Secretary determines
is closely related to that degree, which shall
include working as a professor at a two- or
four-year institution of higher education.
SEC. 419C. MATHEMATICS AND SCIENCE EDUCATION COORDINATING COUNCIL
GRANTS.
(a) Purposes.--The purposes of this section include--
(1) supporting programs that encourage students to
enroll in and successfully complete baccalaureate and
advanced degrees in science, technology, engineering,
and mathematics;
(2) achieving the common objective of organizing,
leading, and implementing State-based reform agendas
that support the continuing improvement of mathematics
and science education; and
(3) improving collaboration in a State among the
State educational agency, 2-year and 4-year
institutions of higher education, and the business
community through the development or improvement of a
coordinating council.
(b) Definitions.--For the purposes of this section:
(1) the term ``eligible State'' means--
(A) the Governor of a State; or
(B) in the case of a State for which the
constitution or laws of the State designate an
individual, entity, or agency in the State,
other than the Governor, to be responsible for
coordination among segments of the State's
educational systems, such individual, entity,
or agency.
(2) the term ``mathematics and science education
coordinating council'' means an organization that is
charged by a State with coordinating mathematics and
science education in the State. Such a council shall be
composed of education, business, and community leaders
working together to increase student participation and
academic achievement in mathematics and science.
(c) State Grants.--From amounts made available under section
419D for this section, the Secretary is authorized to use not
more than $5,000,000 to award grants on a competitive basis to
eligible States for the purpose of carrying out activities
described in subsection (d).
(d) Uses of Funds.--An eligible State that receives a grant
under this section is authorized to use grant funds to carry
out one or more of the following activities:
(1) In a State in which a mathematics and science
education coordinating council does not exist, planning
and establishing such a council.
(2) In a State in which such a council exists,
reforming or expanding the activities of the council,
including implementing State-based reform agendas that
support the continuing improvement of mathematics and
science education, and support services that lead to
better teacher recruitment and training, increased
student academic achievement, and increased student
enrollment and degree attainment in science,
technology, engineering, and mathematics.
(3) Coordinating with activities under part B of
title II of the Elementary and Secondary Education Act
of 1965 and with title II of this Act, especially as it
pertains to the recruitment and preparation of highly
qualified mathematics and science teachers.
(e) Application.--To be eligible to receive a grant under
this section, an eligible State shall submit an application to
the Secretary that--
(1) describes the activities the State will carry out
with the funds;
(2) contains a plan for continuing such activities
once Federal funding ceases; and
(3) contains such other information and assurances as
the Secretary may require.
(f) Consultation.--The Governor of a State, or the
individual, entity, or agency in the State described in
subsection (b)(1)(B), shall consult with the State board of
education, State educational agency, and the State agency for
higher education, as appropriate, with respect to the
activities assisted under this section. In the case of an
individual, entity, or agency described in subsection
(b)(1)(B), such consultation shall also include the Governor.
(g) Construction.--Nothing in this section shall be construed
to negate or supersede the legal authority under State law of
any State agency, State entity, or State public official over
programs that are under the jurisdiction of the agency, entity,
or official.
(h) Administrative Provisions.--
(1) In general.--
(A) Grants awarded under this section shall
be awarded for a period not to exceed 5 years.
(B) A grantee may receive a grant under this
part only once.
(C) Payments of grant funds under this
section shall be annual.
(2) Secretarial selections.--The Secretary shall
determine which applications receive funds under this
section, and the amount of the grant. In determining
grant amounts, the Secretary shall take into account
the total amount of funds available for all grants
under this section and the nature of each grant
proposal, including whether funds are being sought to
assist in the creation of a new State mathematics and
science education coordinating council or to extend the
work of an existing council. The Secretary shall also
take into account the equitable geographic distribution
of grants throughout the United States.
(3) Matching requirement.--Each eligible State
receiving a grant under this section shall provide,
from non-Federal sources, an amount equal to 50 percent
of the amount of the grant (in cash or in kind) to
carry out the activities supported by the grant.
(i) Accountability and Evaluation.--
(1) State grant accountability report.--An eligible
State that receives a grant under this section shall
submit an annual accountability report to the
Secretary. Such report shall include a description of
the degree to which the eligible State, in using grant
funds, has made substantial progress in meeting its
objectives.
(2) Evaluation and dissemination.--The Secretary
shall evaluate the activities funded under this section
and report the Secretary's findings regarding such
activities to the authorizing committees. The Secretary
shall broadly disseminate successful practices
developed by eligible States under this section, and
shall broadly disseminate information regarding such
practices that were found to be ineffective.
(3) Revocation.--If the Secretary determines that an
eligible State is not making substantial progress in
meeting the purposes, objectives, and measures, as
appropriate, required under this section by the end of
the second year of a grant, then the grant payment
shall not be made for the third year and subsequent
years of the grant.
SEC. 419D. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $41,000,000 for
fiscal year 2006 and such sums as may be necessary for each of
the 5 succeeding fiscal years to carry out this subpart.
Subpart 7--Child Care Access Means Parents in School
SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
(a) * * *
* * * * * * *
(g) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $45,000,000 for
fiscal year [1999] 2006 and such sums as may be necessary for
each of the [4] 5 succeeding fiscal years.
* * * * * * *
[Subpart 8--Learning Anytime Anywhere Partnerships
[SEC. 420D. FINDINGS.
[Congress makes the following findings:
[(1) The nature of postsecondary education delivery
is changing, and new technology and other related
innovations can provide promising education
opportunities for individuals who are currently not
being served, particularly for individuals without easy
access to traditional campus-based postsecondary
education or for whom traditional courses are a poor
match with education or training needs.
[(2) Individuals, including individuals seeking basic
or technical skills or their first postsecondary
experience, individuals with disabilities, dislocated
workers, individuals making the transition from
welfare-to-work, and individuals who are limited by
time and place constraints can benefit from
nontraditional, noncampus-based postsecondary education
opportunities and appropriate support services.
[(3) The need for high-quality, nontraditional,
technology-based education opportunities is great, as
is the need for skill competency credentials and other
measures of educational progress and attainment that
are valid and widely accepted, but neither need is
likely to be adequately addressed by the uncoordinated
efforts of agencies and institutions acting
independently and without assistance.
[(4) Partnerships, consisting of institutions of
higher education, community organizations, or other
public or private agencies or organizations, can
coordinate and combine institutional resources--
[(A) to provide the needed variety of
education options to students; and
[(B) to develop new means of ensuring
accountability and quality for innovative
education methods.
[SEC. 420E. PURPOSE; PROGRAM AUTHORIZED.
[(a) Purpose.--It is the purpose of this subpart to enhance
the delivery, quality, and accountability of postsecondary
education and career-oriented lifelong learning through
technology and related innovations.
[(b) Program Authorized.--
[(1) Grants.--
[(A) In general.--The Secretary may, from
funds appropriated under section 420J make
grants to, or enter into contracts or
cooperative agreements with, eligible
partnerships to carry out the authorized
activities described in section 420G.
[(B) Duration.--Grants under this subpart
shall be awarded for periods that do not exceed
5 years.
[(2) Definition of eligible partnership.--For
purposes of this subpart, the term ``eligible
partnership'' means a partnership consisting of 2 or
more independent agencies, organizations, or
institutions. The agencies, organizations, or
institutions may include institutions of higher
education, community organizations, and other public
and private institutions, agencies, and organizations.
[SEC. 420F. APPLICATION.
[(a) Requirement.--An eligible partnership desiring to
receive a grant under this subpart shall submit an application
to the Secretary, in such form and containing such information,
as the Secretary may require.
[(b) Contents.--Each application shall include--
[(1) the name of each partner and a description of
the responsibilities of the partner, including the
designation of a nonprofit organization as the fiscal
agent for the partnership;
[(2) a description of the need for the project,
including a description of how the project will build
on any existing services and activities;
[(3) a listing of human, financial (other than funds
provided under this subpart), and other resources that
each member of the partnership will contribute to the
partnership, and a description of the efforts each
member of the partnership will make in seeking
additional resources; and
[(4) a description of how the project will operate,
including how funds awarded under this subpart will be
used to meet the purpose of this subpart.
[SEC. 420G. AUTHORIZED ACTIVITIES.
[Funds awarded to an eligible partnership under this subpart
shall be used to--
[(1) develop and assess model distance learning
programs or innovative educational software;
[(2) develop methodologies for the identification and
measurement of skill competencies;
[(3) develop and assess innovative student support
services; or
[(4) support other activities that are consistent
with the purpose of this subpart.
[SEC. 420H. MATCHING REQUIREMENT.
[Federal funds shall provide not more than 50 percent of the
cost of a project under this subpart. The non-Federal share of
project costs may be in cash or in kind, fairly evaluated,
including services, supplies, or equipment.
[SEC. 420I. PEER REVIEW.
[The Secretary shall use a peer review process to review
applications under this subpart and to make recommendations for
funding under this subpart to the Secretary.
[SEC. 420J. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
subpart $10,000,000 for fiscal year 1999 and such sums as may
be necessary for each of the 4 succeeding fiscal years.]
Part B--Federal Family Education Loan Program
SEC. 421. STATEMENT OF PURPOSE; NONDISCRIMINATION; AND APPROPRIATIONS
AUTHORIZED.
(a) * * *
(b) Authorization of Appropriations.--For the purpose of
carrying out this part--
(1) * * *
* * * * * * *
(5) there are authorized to be appropriated such sums
as may be necessary for the purpose of paying [an
administrative cost allowance] a loan processing and
issuance fee in accordance with section 428(f) to
guaranty agencies.
Sums appropriated under paragraphs (1), (2), (4), and (5) of
this subsection shall remain available until expended. No
additional sums are authorized to be appropriated under
paragraph (3) or (4) of this subsection by reason of the
reenactment of such paragraphs by the Higher Education
Amendments of 1986.
* * * * * * *
SEC. 424. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM.
(a) Limitations on Amounts of Loans Covered by Federal
Insurance.--The total principal amount of new loans made and
installments paid pursuant to lines of credit (as defined in
section 435) to students covered by Federal loan insurance
under this part shall not exceed $2,000,000,000 for the period
from July 1, 1976, to September 30, 1976, and for each of the
succeeding fiscal years ending prior to October 1, [2004] 2012.
Thereafter, Federal loan insurance pursuant to this part may be
granted only for loans made (or for loan installments paid
pursuant to lines of credit) to enable students, who have
obtained prior loans insured under this part, to continue or
complete their educational program; but no insurance may be
granted for any loan made or installment paid after September
30, [2008] 2016.
* * * * * * *
SEC. 425. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND ON
FEDERAL LOAN INSURANCE.
(a) Annual and Aggregate Limits.--
(1) Annual limits.--(A) The total of loans made to a
student in any academic year or its equivalent (as
determined by the Secretary) which may be covered by
Federal loan insurance under this part may not exceed--
(i) in the case of a student at an eligible
institution who has not successfully completed
the first year of a program of undergraduate
education--
(I) [$2,625] $3,500, if such student
is enrolled in a program whose length
is at least one academic year in length
(as determined under section 481); and
* * * * * * *
(ii) in the case of a student at an eligible
institution who has successfully completed such
first year but has not successfully completed
the remainder of a program of undergraduate
education--
(I) [$3,500] $4,500; or
* * * * * * *
(2) Aggregate limits.--(A) The aggregate insured
unpaid principal amount for all such insured loans made
to any student shall not at any time exceed--
(i) $23,000, in the case of any student who has not
successfully completed a program of undergraduate
education, excluding loans made under section [428A or
428B] 428B or 428H; and
(ii) $65,500, in the case of any graduate or
professional student (as defined by regulations of the
Secretary) and (I) including any loans which are
insured by the Secretary under this section, or by a
guaranty agency, made to such student before the
student became a graduate or professional student), but
(II) excluding loans made under section [428A or 428B]
428B or 428H,
except that the Secretary may increase the limit applicable to
students who are pursuing programs which the Secretary
determines are exceptionally expensive.
* * * * * * *
SEC. 427A. APPLICABLE INTEREST RATES.
(a) * * *
* * * * * * *
(k) Interest Rates for New Loans on or After October 1,
1998[, and Before July 1, 2006].--
(1) In general.--Notwithstanding subsection (h) and
subject to paragraph (2) of this subsection, with
respect to any loan made, insured, or guaranteed under
this part (other than a loan made pursuant to section
428B or 428C) for which the first disbursement is made
on or after October 1, 1998[, and before July 1, 2006,]
the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to--
(A) * * *
* * * * * * *
(2) In school and grace period rules.--
Notwithstanding subsection (h), with respect to any
loan under this part (other than a loan made pursuant
to section 428B or 428C) for which the first
disbursement is made on or after October 1, 1998[, and
before July 1, 2006,] the applicable rate of interest
for interest which accrues--
(A) * * *
* * * * * * *
(3) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the
first disbursement is made on or after October 1,
1998[, and before July 1, 2006,] the applicable rate of
interest shall be determined under paragraph (1)--
(A) * * *
* * * * * * *
(4) Consolidation loans before july 1, 2006.--With
respect to any consolidation loan under section 428C
for which the application is received by an eligible
lender on or after October 1, 1998, and before July 1,
2006, the applicable rate of interest shall be at an
annual rate on the unpaid principal balance of the loan
that is equal to the lesser of--
(A) * * *
* * * * * * *
(5) Consolidation loans on or after july 1, 2006.--
(A) Borrower election.--With respect to any
consolidation loan under section 428C for which
the application is received by an eligible
lender on or after July 1, 2006, the applicable
rate of interest shall, at the election of the
borrower at the time of application for the
loan, be either at the rate determined under
subparagraph (B) or the rate determined under
subparagraph (C).
(B) Variable rate.--Except as provided in
subparagraph (D), the rate determined under
this subparagraph shall, during any 12-month
period beginning on July 1 and ending on June
30, be determined on the preceding June 1 and,
for such 12-month period, not be more than--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
(ii) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
(C) Fixed rate.--Except as provided in
subparagraph (D), the rate determined under
this subparagraph shall be determined for the
duration of the term of the loan on the July 1
that is or precedes the date on which the
application is received by an eligible lender,
and shall be, for such duration, not more
than--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to the June 1
immediately preceding such July 1; plus
(ii) 3.3 percent,
except that such rate shall not exceed 8.25
percent.
(D) Consolidation of plus loans.--In the case
of any such consolidation loan that is used to
repay loans each of which was made under
section 428B or was a Federal Direct PLUS Loan
(or both), the rates determined under clauses
(B) and (C) shall be determined--
(i) by substituting ``3.1 percent''
for ``2.3 percent'';
(ii) by substituting ``4.1 percent''
for ``3.3 percent''; and
(iii) by substituting ``9.0 percent''
for ``8.25 percent''.
[(5)] (6) Consultation.--The Secretary shall
determine the applicable rate of interest under this
subsection after consultation with the Secretary of the
Treasury and shall publish such rate in the Federal
Register as soon as practicable after the date of
determination.
[(l) Interest Rates for New Loans on or After July 1, 2006.--
[(1) In general.--Notwithstanding subsection (h),
with respect to any loan made, insured, or guaranteed
under this part (other than a loan made pursuant to
section 428B or 428C) for which the first disbursement
is made on or after July 1, 2006, the applicable rate
of interest shall be 6.8 percent on the unpaid
principal balance of the loan.
[(2) PLUS loans.--Notwithstanding subsection (h),
with respect to any loan under section 428B for which
the first disbursement is made on or after July 1,
2006, the applicable rate of interest shall be 7.9
percent on the unpaid principal balance of the loan.
[(3) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the
application is received by an eligible lender on or
after July 1, 2006, the applicable rate of interest
shall be at an annual rate on the unpaid principal
balance of the loan that is equal to the lesser of--
[(A) the weighted average of the interest
rates on the loans consolidated, rounded to the
nearest higher one-eighth of 1 percent; or
[(B) 8.25 percent.]
[(m)] (l) Lesser Rates Permitted.--Nothing in this section or
section 428C shall be construed to prohibit a lender from
charging a borrower interest at a rate less than the rate which
is applicable under this part.
[(n)] (m) Definitions.--For the purpose of subsections (a)
and (d) of this section--
(1) * * *
* * * * * * *
SEC. 428. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Federal Interest Subsidies.--
(1) * * *
(2) Additional requirements to receive subsidy.--(A)
Each student qualifying for a portion of an interest
payment under paragraph (1) shall--
(i) have provided to the lender a statement
from the eligible institution, at which the
student has been accepted for enrollment, or at
which the student is in attendance, which--
(I) sets forth the loan amount for
which the student shows financial need;
and
(II) sets forth a schedule for
disbursement of the proceeds of the
loan in installments, consistent with
the requirements of section 428G; [and]
(iii) have provided to the lender at the time
of application for a loan made, insured, or
guaranteed under this part, the student's
driver's number, if any.
* * * * * * *
(E) For the purpose of subparagraphs (B) and (C) of
this paragraph, any loan obtained by a student under
section [428A or] 428H or a parent under section 428B
of this Act or under any State-sponsored or private
loan program for an academic year for which the
determination is made may be used to offset the
expected family contribution of the student for that
year.
(3) Amount of interest subsidy.--(A)(i) * * *
* * * * * * *
(v) A lender may not receive interest on a loan for
any period that precedes the date that is--
(I) in the case of a loan disbursed by check,
10 days before the first disbursement of the
loan; [or]
(II) in the case of a loan disbursed by
electronic funds transfer, 3 days before the
first disbursement of the loan[.]; or
(III) in the case of a loan disbursed through
an escrow agent, 3 days before the first
disbursement of the loan.
* * * * * * *
(5) Duration of authority to make interest subsidized
loans.--The period referred to in subparagraph (B) of
paragraph (1) of this subsection shall begin on the
date of enactment of this Act and end at the close of
September 30, [2004] 2012, except that, in the case of
a loan made or insured under a student loan or loan
insurance program to enable a student who has obtained
a prior loan made or insured under such program to
continue his or her education program, such period
shall end at the close of September 30, [2008] 2016.
* * * * * * *
(b) Insurance Program Agreements To Qualify Loans for
Interest Subsidies.--
(1) Requirements of insurance program.--Any State or
any nonprofit private institution or organization may
enter into an agreement with the Secretary for the
purpose of entitling students who receive loans which
are insured under a student loan insurance program of
that State, institution, or organization to have made
on their behalf the payments provided for in subsection
(a) if the Secretary determines that the student loan
insurance program--
(A) authorizes the insurance in any academic
year, as defined in section 481(a)(2), or its
equivalent (as determined under regulations of
the Secretary) for any student who is carrying
at an eligible institution or in a program of
study abroad approved for credit by the
eligible home institution at which such student
is enrolled at least one-half the normal full-
time academic workload (as determined by the
institution) in any amount up to a maximum of--
(i) in the case of a student at an
eligible institution who has not
successfully completed the first year
of a program of undergraduate
education--
(I) [$2,625] $3,500, if such
student is enrolled in a
program whose length is at
least one academic year in
length; and
* * * * * * *
(ii) in the case of a student at an
eligible institution who has
successfully completed such first year
but has not successfully completed the
remainder of a program of undergraduate
education--
(I) [$3,500] $4,500; or
* * * * * * *
(B) provides that the aggregate insured
unpaid principal amount for all such insured
loans made to any student shall be any amount
up to a maximum of--
(i) $23,000, in the case of any
student who has not successfully
completed a program of undergraduate
education, excluding loans made under
section [428A or 428B] 428B or 428H;
and
(ii) $65,500, in the case of any
graduate or professional student (as
defined by regulations of the
Secretary), and (I) including any loans
which are insured by the Secretary
under this section, or by a guaranty
agency, made to such student before the
student became a graduate or
professional student, but (II)
excluding loans made under section
[428A or 428B] 428B or 428H,
except that the Secretary may increase the
limit applicable to students who are pursuing
programs which the Secretary determines are
exceptionally expensive;
* * * * * * *
(G) insures 98 percent of the unpaid
principal of loans insured under the program,
except that such program shall insure 100
percent of the unpaid principal of loans made
with funds advanced pursuant to section 428(j)
or 439(q) and 100 percent of the unpaid
principal amount of exempt claims as defined in
subsection (c)(1)(G), except, for any loan for
which the first disbursement of principal is
made on or after July 1, 2006, the preceding
provisions of this subparagraph shall be
applied by substituting ``96 percent'' for ``98
percent'';
[(H) provides for collection of a single
insurance premium equal to not more than 1.0
percent of the principal amount of the loan, by
deduction proportionately from each installment
payment of the proceeds of the loan to the
borrower, and insures that the proceeds of the
premium will not be used for incentive payments
to lenders;]
(H) provides--
(i) for loans for which the first
disbursement of principal is made
before July, 1, 2006, for the
collection of a single insurance
premium equal to not more than 1.0
percent of the principal amount of the
loan, by deduction proportionately from
each installment payment of the
proceeds of the loan to the borrower,
and insures that the proceeds of the
premium will not be used for incentive
payments to lenders; or
(ii) for loans for which the first
disbursement of principal is made on or
after July 1, 2006, for the collection
and deposit into the Federal Student
Loan Reserve Fund under section 422A of
a Federal default fee of 1.0 percent of
the principal amount of such loan,
which shall be deducted proportionately
from each installment payment of the
proceeds of the loan to the borrower
prior to payment to the borrower, and
insures that the proceeds of the
Federal default fee will not be used
for incentive payments to lenders;
* * * * * * *
(M) provides that periodic installments of
principal need not be paid, but interest shall
accrue and be paid by the Secretary, during any
period--
(i) * * *
(ii) not in excess of 3 years during
which the borrower is seeking and
unable to find full-time employment,
except that no borrower who provides
evidence of eligibility for
unemployment benefits shall be required
to provide additional paperwork for a
deferment under this clause; [or]
(iii) not in excess of 3 years during
which the borrower--
(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; or
[(iii)] (iv) not in excess of 3 years
for any reason which the lender
determines, in accordance with
regulations prescribed by the Secretary
under section 435(o), has caused or
will cause the borrower to have an
economic hardship;
(N) provides that funds borrowed by a
student--
(i) are disbursed to the institution
(including an eligible foreign
institution, except as provided in
clause (ii)) by check or other means
that is payable to, and requires the
endorsement or other certification by,
such student; or
(ii) in the case of a student who is
studying outside the United States in a
program of study abroad that is
approved for credit by the home
institution at which such student is
enrolled [or at an eligible foreign
institution], are, at the request of
the student, disbursed directly to the
student by the means described in
clause (i), unless such student
requests that the check be endorsed, or
the funds transfer authorized, pursuant
to an authorized power-of-attorney;
* * * * * * *
(Q) provides for the guarantee of loans made
to students and parents under [sections 428A
and 428B] section 428B or 428H;
* * * * * * *
(7) Repayment period.--(A) In the case of a loan made
under section 427 or 428, the repayment period shall
exclude any period of authorized deferment or
forbearance and [shall begin--
[(i) the day after 6 months after the date
the student ceases to carry at least one-half
the normal full-time academic workload (as
determined by the institution); or
[(ii) on an earlier date if the borrower
requests and is granted a repayment schedule
that provides for repayment to commence at an
earlier date.] shall begin the day after 6
months after the date the student ceases to
carry at least one-half the normal full-time
academic workload (as determined by the
institution).
* * * * * * *
(C) In the case of a loan made under section [428A,
428B,] 428B or 428C, the repayment period shall begin
on the day the loan is disbursed, or, if the loan is
disbursed in multiple installments, on the day of the
last such disbursement, and shall exclude any period of
authorized deferment or forbearance.
* * * * * * *
(9) Repayment plans.--
(A) Design and selection.--In accordance with
regulations promulgated by the Secretary, the
lender shall offer a borrower of a loan made
under this part the plans described in this
subparagraph for repayment of such loan,
including principal and interest thereon. No
plan may require a borrower to repay a loan in
less than 5 years unless the borrower, during
the 6 months immediately preceding the start of
the repayment period, specifically requests
that repayment be made over of a shorter
period. The borrower may choose from--
(i) * * *
(ii) a graduated repayment plan paid
over a fixed period of time, not to
exceed 10 years, and the Secretary may
not restrict the proportions or ratios
by which such payments may be graduated
with the informed agreement of the
borrower;
(iii) an income-sensitive repayment
plan, with income-sensitive repayment
amounts paid over a fixed period of
time, not to exceed 10 years, except
that the borrower's scheduled payments
shall not be less than the amount of
interest due; [and]
(iv) a delayed repayment plan under
which the borrower makes scheduled
payments for not more than 2 years that
are annually not less than the amount
of interest due or $600, whichever is
greater, and then makes payments in
accordance with clause (i), (ii), or
(iii); and
[(iv)] (v) for new borrowers on or
after the date of enactment of the
Higher Education Amendments of 1998 who
accumulate (after such date)
outstanding loans under this part
totaling more than $30,000, an extended
repayment plan, with a fixed annual or
graduated repayment amount paid over an
extended period of time, not to exceed
25 years, except that the borrower
shall repay annually a minimum amount
determined in accordance with paragraph
(1)(L)(i).
(c) Guaranty Agreements for Reimbursing Losses.--
(1) Authority to enter into agreements.--(A) The
Secretary may enter into a guaranty agreement with any
guaranty agency, whereby the Secretary shall undertake
to reimburse it, under such terms and conditions as the
Secretary may establish, with respect to losses
(resulting from the default of the student borrower) on
the unpaid balance of the principal and accrued
interest of any insured loan. The guaranty agency
shall, be deemed to have a contractual right against
the United States, during the life of such loan, to
receive reimbursement according to the provisions of
this subsection. Upon receipt of an accurate and
complete request by a guaranty agency for reimbursement
with respect to such losses, the Secretary shall pay
promptly and without administrative delay. Except as
provided in subparagraph (B) of this paragraph and in
paragraph (7), the amount to be paid a guaranty agency
as reimbursement under this subsection shall be equal
to 95 percent of the amount expended by it in discharge
of its insurance obligation incurred under its loan
insurance program. A guaranty agency shall file a claim
for reimbursement with respect to losses under this
subsection within [45] 30 days after the guaranty
agency discharges its insurance obligation on the loan.
* * * * * * *
(G)(i) Notwithstanding any other provisions of this
section, in the case of exempt claims, the Secretary
shall apply the provisions of--
(I) the fourth sentence of subparagraph (A)
by substituting ``100 percent'' for ``95
percent'';
(II) subparagraph (B)(i) by substituting
``100 percent'' for ``85 percent''; and
(III) subparagraph (B)(ii) by substituting
``100 percent'' for ``75 percent''.
(ii) For purposes of clause (i) of this subparagraph,
the term ``exempt claims'' means claims with respect to
loans for which it is determined that the borrower (or
the student on whose behalf a parent has borrowed),
without the lender's or the institution's knowledge at
the time the loan was made, provided false or erroneous
information or took actions that caused the borrower or
the student to be ineligible for all or a portion of
the loan or for interest benefits thereon.
(H) Notwithstanding subparagraphs (A) and (B), but
subject to subparagraphs (E) and (F), in the case of a
loan for which the first disbursement of principal is
made on or after July 1, 2006, the Secretary shall
apply--
(i) the fourth sentence of subparagraph (A)
by substituting ``93 percent'' for ``95
percent'';
(ii) subparagraph (B)(i) by substituting ``83
percent'' for ``85 percent''; and
(iii) subparagraph (B)(ii) by substituting
``73 percent'' for ``75 percent''.
[(G)] (I) Notwithstanding any other provision of this
section, the Secretary shall exclude a loan made
pursuant to a lender-of-last-resort program when making
reimbursement payment calculations under subparagraphs
(B) and (C).
(2) Contents of guaranty agreements.--The guaranty
agreement--
(A) shall set forth such administrative and
fiscal procedures as may be necessary to
protect the United States from the risk of
unreasonable loss thereunder, to ensure proper
and efficient administration of the loan
insurance program, and to assure that due
diligence will be exercised in the collection
of loans insured under the program, including
(i) a requirement that each beneficiary of
insurance on the loan submit proof that the
institution was contacted and other reasonable
attempts were made to locate the borrower (when
the location of the borrower is unknown) and
proof that contact was made with the borrower
(when the location is known) and (ii)
requirements establishing procedures to
preclude consolidation lending from being an
excessive proportion of guaranty agency
recoveries on defaulted loans under this part;
* * * * * * *
(D) shall provide that if, after the
Secretary has made payment under the guaranty
agreement pursuant to paragraph (1) of this
subsection with respect to any loan, any
payments are made in discharge of the
obligation incurred by the borrower with
respect to such loan (including any payments of
interest accruing on such loan after such
payment by the Secretary), there shall be paid
over to the Secretary (for deposit in the fund
established by section 431) such proportion of
the amounts of such payments as is determined
(in accordance with paragraph [(6)] (6)(A)) to
represent his equitable share thereof, but (i)
shall provide for subrogation of the United
States to the rights of any insurance
beneficiary only to the extent required for the
purpose of paragraph (8); and (ii) except as
the Secretary may otherwise by or pursuant to
regulation provide, amounts so paid by a
borrower on such a loan shall be first applied
in reduction of principal owing on such loan;
* * * * * * *
(3) Forbearance.--A guaranty agreement under this
subsection--
(A) shall contain provisions providing that--
(i) upon request, a lender shall
grant a borrower forbearance, renewable
at 12-month intervals, on terms agreed
to [in writing] by the parties to the
loan with the approval of the insurer,
and otherwise consistent with the
regulations of the Secretary, if the
borrower--
(I) * * *
* * * * * * *
(6) Secretary's equitable share.--(A) For the purpose
of paragraph (2)(D), the Secretary's equitable share of
payments made by the borrower shall be that portion of
the payments remaining after the guaranty agency with
which the Secretary has an agreement under this
subsection has deducted from such payments--
[(A)] (i) a percentage amount equal to the
complement of the reinsurance percentage in
effect when payment under the guaranty
agreement was made with respect to the loan;
and
[(B)] (ii) an amount equal to 24 percent of
such payments for use in accordance with
section 422B, except that, beginning on October
1, 2003, this subparagraph shall be applied by
substituting ``23 percent'' for ``24 percent''.
(B) A guaranty agency shall--
(i) on or after October 1, 2006--
(I) not charge the borrower collection costs
in an amount in excess of 18.5 percent of the
outstanding principal and interest of a
defaulted loan that is paid off through
consolidation by the borrower under this title;
and
(II) remit to the Secretary a portion of the
collection charge under subclause (I) equal to
8.5 percent of the outstanding principal and
interest of such defaulted loan; and
(ii) on and after October 1, 2009, remit to the
Secretary the entire amount charged under clause (i)(I)
with respect to each defaulted loan that is paid off
with excess consolidation proceeds.
(C) Excess consolidation proceeds.--For purposes of
subparagraph (B), the term ``excess consolidation proceeds''
means, with respect to any guaranty agency for any Federal
fiscal year beginning on or after October 1, 2009, the proceeds
of consolidation of defaulted loans under this title that
exceed 45 percent of the agency's total collections on
defaulted loans in such Federal fiscal year.
* * * * * * *
(9) Guaranty agency reserve level.--(A) * * *
* * * * * * *
(K) The Secretary, within 3 months after the end of
each fiscal year, shall submit to the [House Committee
on Education and the Workforce and the Senate Committee
on Labor and Human Resources] authorizing committees a
report specifying the Secretary's assessment of the
fiscal soundness of the guaranty agency system.
* * * * * * *
(10) Documentation of forbearance agreements.--For
the purposes of paragraph (3), the terms of forbearance
agreed to by the parties shall be documented by
confirming the agreement of the borrower by notice to
the borrower from the lender, and by recording the
terms in the borrower's file.
* * * * * * *
(g) Action on Insurance Program and Guaranty Agreements.--If
a nonprofit private institution or organization--
(1) applies to enter into an agreement with the
Secretary under subsections (b) and (c) with respect to
a student loan insurance program to be carried on in a
State with which the Secretary does not have an
agreement under subsection (b), and
(2) as provided in the application, undertakes to
meet the requirements of section 422(c)(6)(B) (i),
(ii), and (iii),
the Secretary shall consider and act upon such application
within 180 days, and shall forthwith notify the [Committee on
Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives]
authorizing committees of his actions.
* * * * * * *
(i) Multiple Disbursement of Loans.--
(1) Escrow accounts administered by escrow agent.--
Any guaranty agency or eligible lender (hereafter in
this subsection referred to as the ``escrow agent'')
may enter into an agreement with any other eligible
lender that is not an eligible institution or an agency
or instrumentality of the State (hereafter in this
subsection referred to as the ``lender'') for the
purpose of authorizing disbursements of the proceeds of
a loan to a student. Such agreement shall provide that
the lender will pay the proceeds of such loans into an
escrow account to be administered by the escrow agent
in accordance with the provisions of paragraph (2) of
this subsection. Such agreement may allow the lender to
make payments into the escrow account in amounts that
do not exceed the sum of the amounts required for
disbursement of initial or subsequent installments to
borrowers and to make such payments not more than [21]
10 days prior to the date of the disbursement of such
installment to such borrowers. Such agreement shall
require the lender to notify promptly the eligible
institution when funds are escrowed under this
subsection for a student at such institution.
* * * * * * *
(n) Blanket Certificate of Loan Guaranty.--
(1) * * *
* * * * * * *
(4) Report required.--The Secretary shall, at the
conclusion of the pilot program under paragraph (3),
provide a report to the [Committee on Education and the
Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate]
authorizing committees on the impact of the blanket
certificates of guaranty on program efficiency and
integrity.
* * * * * * *
SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.
(a) Voluntary Agreements.--
(1) Authority.--Subject to paragraph (2), the
Secretary may enter into a voluntary, flexible
agreement with a guaranty agency under this section, in
lieu of agreements with a guaranty agency under
subsections (b) and (c) of section 428. The Secretary
may waive or modify any requirement under such
subsections, except that the Secretary may not waive--
(A) any statutory requirement pertaining to
the terms and conditions attached to student
loans or default claim payments made to
lenders; [or]
(B) the prohibitions on inducements contained
in section 428(b)(3) [unless the Secretary
determines that such a waiver is consistent
with the purposes of this section and is
limited to activities of the guaranty agency
within the State or States for which the
guaranty agency serves as the designated
guarantor.]; or
(C) the Federal default fee required by
section 428(b)(1)(H) and the second sentence of
section 428H(h).
[(2) Special rule.--If the Secretary grants a waiver
pursuant to paragraph (1)(B), any guaranty agency doing
business within the affected State or States may
request, and the Secretary shall grant, an identical
waiver to such guaranty agency under the same terms and
conditions (including service area limitations) as
govern the original waiver.]
[(3)] (2) Eligibility.--During fiscal years 1999,
2000, and 2001, the Secretary may enter into a
voluntary, flexible agreement with not more than 6
guaranty agencies that had 1 or more agreements with
the Secretary under subsections (b) and (c) of section
428 as of the day before the date of enactment of the
Higher Education Amendments of 1998. Beginning in
fiscal year 2002, any guaranty agency or consortium
thereof may enter into a voluntary flexible agreement
with the Secretary.
[(4)] (3) Report required.--Not later than September
30, 2001, the Secretary shall report to the [Committee
on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House
of Representatives] authorizing committees regarding
the impact that the voluntary flexible agreements have
had upon program integrity, program and cost
efficiencies, and the availability and delivery of
student financial aid. Such report shall include--
(A) * * *
(B) a list of participating guaranty agencies
and the specific statutory or regulatory
waivers provided to each guaranty agency [and
any waivers provided to other guaranty agencies
under paragraph (2)];
* * * * * * *
(c) Public Notice.--
(1) * * *
(2) Agreement notice.--The Secretary shall notify the
Chairperson and the Ranking Minority Member of the
[Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] authorizing committees not
later than 30 days prior to concluding an agreement
under this section. The notice shall contain--
(A) * * *
* * * * * * *
[(3) Waiver notice.--The Secretary shall notify the
Chairperson and the Ranking Minority Member of the
Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives not later than 30 days prior
to the granting of a waiver pursuant to subsection
(a)(2) to a guaranty agency that is not a party to a
voluntary flexible agreement.]
(3) Notice to interested parties.--Once the Secretary
reaches a tentative agreement in principle under this
section, the Secretary shall publish in the Federal
Register a notice that invites interested parties to
comment on the proposed agreement. The notice shall
state how to obtain a copy of the tentative agreement
in principle and shall give interested parties no less
than 30 days to provide comments. The Secretary may
consider such comments prior to providing the notices
pursuant to paragraph (2).
* * * * * * *
(5) Modification notice.--The Secretary shall notify
the Chairperson and the Ranking Minority Members of the
[Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] authorizing committees 30
days prior to any modifications to an agreement under
this section.
* * * * * * *
SEC. 428B. FEDERAL PLUS LOANS.
(a) Authority To Borrow.--
(1) Authority and eligibility.--Parents of a
dependent student shall be eligible to borrow funds
under this section in amounts specified in subsection
(b), if--
(A) the parents do not have an adverse credit
history as determined pursuant to regulations
promulgated by the Secretary; [and]
(B) the parents meet such other eligibility
criteria as the Secretary may establish by
regulation, after consultation with guaranty
agencies, eligible lenders, and other
organizations involved in student financial
assistance[.]; and
(C) if either of the parents has been
convicted of, or has pled nolo contendere or
guilty to, a crime involving fraud in obtaining
funds under this title, such parent has
completed the repayment of such funds to the
Secretary, or to the holder in the case of a
loan under this title obtained by fraud.
* * * * * * *
SEC. 428C. FEDERAL CONSOLIDATION LOANS.
(a) Agreements With Eligible Lenders.--
(1) * * *
* * * * * * *
(3) Definition of eligible borrower.--(A) For the
purpose of this section, the term ``eligible borrower''
means a borrower who--
(i) * * *
(ii) at the time of application for a
consolidation loan--
(I) is in repayment status as
determined under section 428(b)(7)(A);
* * * * * * *
(B)(i) An individual's status as an eligible borrower
under this section or under section 455(g) terminates
under both sections upon receipt of a consolidation
loan under this section or under section 455(g), except
that--
(I) * * *
* * * * * * *
(III) loans received following the making of
the consolidation loan may be added during the
180-day period following the making of the
consolidation loan; [and]
(IV) loans received prior to the date of the
first consolidation loan may be added to a
subsequent consolidation loan[.]; and
(V) an individual may obtain a subsequent
consolidation loan under section 455(g) only
for the purposes of obtaining an income
contingent repayment plan, and only if the loan
has been submitted to the guaranty agency for
default aversion.
(ii) Loans made under this section shall, to the
extent used to pay off the outstanding principal
balance on loans made under this title, excluding
capitalized interest, be counted against the applicable
limitations on aggregate indebtedness contained in
sections 425(a)(2), 428(b)(1)(B), 428H(d), 455, and
464(a)(2)(B).
[(C)(i) A married couple, each of whom has eligible
student loans, may be treated as if such couple were an
individual borrowing under subparagraphs (A) and (B) if
such couple agrees to be held jointly and severally
liable for the repayment of a consolidation loan,
without regard to the amounts of the respective loan
obligations that are to be consolidated, and without
regard to any subsequent change that may occur in such
couple's marital status.
[(ii) Only one spouse in a married couple applying
for a consolidation loan under this subparagraph need
meet any of the requirements of subsection (b) of this
section, except that each spouse shall--
[(I) individually make the initial
certification that no other application is
pending in accordance with subsection
(b)(1)(A); and
[(II) agree to notify the holder concerning
any change of address in accordance with
subsection (b)(4).]
* * * * * * *
(b) Contents of Agreements, Certificates of Insurance, and
Loan Notes.--
(1) Agreements with lenders.--Any lender described in
subparagraph (A), (B), or (C) of subsection (a)(1) who
wishes to make consolidation loans under this section
shall enter into an agreement with the Secretary or a
guaranty agency which provides--
(A) that, in the case of all lenders
described in subsection (a)(1), the lender will
make a consolidation loan to an eligible
borrower (on request of that borrower) only if
the borrower certifies that the borrower has no
other application pending for a loan under this
section [and (i) the lender holds an
outstanding loan of that borrower which is
selected by the borrower for consolidation
under this section, except that this clause
shall not apply in the case of a borrower with
multiple holders of loans under this part, or
(ii) the borrower certifies that the borrower
has sought and has been unable to obtain a
consolidation loan with income-sensitive
repayment terms from the holders of the
outstanding loans of that borrower (which are
so selected for consolidation);] and that, if
all the borrower's loans under this part are
held by a single holder, the borrower has
notified such holder that the borrower is
seeking to obtain a consolidation loan under
this section;
* * * * * * *
(C) that each consolidation loan will be
made, notwithstanding any other provision of
this part limiting the annual or aggregate
principal amount for all insured loans made to
a borrower, in an amount [(i) which is not less
than the minimum amount required for
eligibility of the borrower under subsection
(a)(3), and (ii)] which is equal to the sum of
the unpaid principal and accrued unpaid
interest and late charges of all eligible
student loans received by the eligible borrower
which are selected by the borrower for
consolidation;
* * * * * * *
(E) that the lender shall offer an income-
sensitive repayment schedule, established by
the lender in accordance with the regulations
promulgated by the Secretary, to the borrower
of any consolidation loan made by the lender on
or after July 1, 1994; [and]
(F) that the lender of the consolidation loan
shall, upon application for such loan, provide
the borrower with a clear and conspicuous
notice of at least the following information:
(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 loan forgiveness,
cancellation, deferment, and reduced
interest rates on those underlying
loans;
(iii) the ability of the borrower to
prepay the loan, pay on a shorter
schedule, and to change repayment
plans;
(iv) that borrower benefit programs
may vary among different loan holders,
and a description of how the borrower
benefits may vary among different loan
holders;
(v) the tax benefits for which
borrowers may be eligible;
(vi) the consequences of default; and
(vii) that by making the application
the applicant is not obligated to agree
to take the consolidation loan; and
[(F)] (G) such other terms and conditions as
the Secretary or the guaranty agency may
specifically require of the lender to carry out
this section.
* * * * * * *
(5) Direct loans.--[In the event that a borrower is
unable to obtain a consolidation loan from a lender
with an agreement under subsection (a)(1), or is unable
to obtain a consolidation loan with income-sensitive
repayment terms acceptable to the borrower from such a
lender, the Secretary shall offer any such borrower who
applies for it, a direct consolidation loan.] In the
event that a lender with an agreement under subsection
(a)(1) of this section denies a consolidation loan
application submitted to it by an eligible borrower
under this section, or denies an application submitted
to it by such a borrower for a consolidation loan with
income-sensitive repayment terms, the Secretary shall
offer any such borrower who applies for it, a direct
consolidation loan. The Secretary shall offer such a
loan to a borrower who has defaulted, for the purpose
of resolving the default. Such direct consolidation
loan shall, as requested by the borrower, be repaid
either pursuant to income contingent repayment under
part D of this title or pursuant to any other repayment
provision under this section. The Secretary shall not
offer such loans if, in the Secretary's judgment, the
Department of Education does not have the necessary
origination and servicing arrangements in place for
such loans.
* * * * * * *
(c) Payment of Principal and Interest.--
(1) Interest rate.--(A) Notwithstanding subparagraphs
(B) and (C), with respect to any loan made under this
section for which the application is received by an
eligible lender--
(i) * * *
(ii) on or after July 1, 2006, the applicable
interest rate shall be determined under
[section 427A(l)(3)] section 427A(k)(5).
* * * * * * *
(e) Termination of Authority.--The authority to make loans
under this section expires at the close of September 30, [2004]
2012. Nothing in this section shall be construed to authorize
the Secretary to promulgate rules or regulations governing the
terms or conditions of the agreements and certificates under
subsection (b). Loans made under this section which are insured
by the Secretary shall be considered to be new loans made to
students for the purpose of section 424(a).
* * * * * * *
SEC. 428F. DEFAULT REDUCTION PROGRAM.
(a) Other Repayment Incentives.--
(1) Sale of loan.--
(A) Each guaranty agency shall enter into an
agreement with the Secretary which shall
provide that upon securing [consecutive
payments for 12 months] 9 payments made within
20 days of the due date during 10 consecutive
months of amounts owed on a loan for which the
Secretary has made a payment under paragraph
(1) of section 428(c), the guaranty agency
(pursuant to an agreement with the Secretary)
or the Secretary shall, if practicable, sell
the loan to an eligible lender. Such loan shall
not be sold to an eligible lender who has been
found by the guaranty agency or the Secretary
to have substantially failed to exercise the
due diligence required of lenders under this
part. Neither the guaranty agency nor the
Secretary shall demand from a borrower as
monthly payment amounts referred to in this
paragraph more than is reasonable and
affordable based upon the borrower's total
financial circumstances.
* * * * * * *
(C) A guaranty agency may charge the borrower
and retain collection costs in an amount not to
exceed 18.5 percent of the outstanding
principal and interest at the time of sale of a
loan rehabilitated under subparagraph (A).
[(C)] (D) A loan which does not meet the
requirements of subparagraph (A) may also be
eligible for sale under this paragraph upon a
determination that the loan was in default due
to clerical or data processing error and would
not, in the absence of such error, be in a
delinquent status.
* * * * * * *
(c) Financial and Economic Literacy.--Where appropriate, each
program described under subsection (b) shall include making
available financial and economic education materials for the
borrower.
SEC. 428G. REQUIREMENTS FOR DISBURSEMENT OF STUDENT LOANS.
(a) * * *
* * * * * * *
(c) Method of Multiple Disbursement.--Disbursements under
subsection (a)--
(1) * * *
(2) may be made directly by the lender or, in the
case of a loan under sections 428 and [428A] 428H, may
be disbursed pursuant to the escrow provisions of
section 428(i); and
* * * * * * *
(e) Exclusion of Consolidation and Foreign Study Loans.--The
provisions of this section shall not apply in the case of a
loan made under section 428C[, made to a student to cover the
cost of attendance at an eligible institution outside the
United States,] or made to a student to cover the cost of
attendance in a program of study abroad approved by the home
eligible institution if the home eligible institution has a
cohort default rate (as calculated under section 435(m)) of
less than 5 percent.
* * * * * * *
SEC. 428H. UNSUBSIDIZED STAFFORD LOANS FOR MIDDLE-INCOME BORROWERS.
(a) * * *
* * * * * * *
(d) Loan Limits.--
(1) * * *
(2) Annual limits for independent, graduate, and
professional students.--The maximum annual amount of
loans under this section an independent student (or a
student whose parents are unable to borrow under
section 428B or the Federal Direct PLUS Loan Program)
may borrow in any academic year (as defined in section
481(a)(2)) or its equivalent shall be the amount
determined under paragraph (1), plus--
(A) * * *
* * * * * * *
(C) in the case of such a student who is a
graduate or professional student attending an
eligible institution, [$10,000] $12,000; and
* * * * * * *
(e) Payment of Principal and Interest.--
(1) * * *
* * * * * * *
[(6) Repayment period.--For purposes of calculating
the repayment period under section 428(b)(9), such
period shall commence at the time the first payment of
principal is due from the borrower.]
(6) Time limits on billing interest.--A lender may
not receive interest on a loan under this section from
a borrower for any period that precedes the dates
described in section 428(a)(3)(A)(v).
* * * * * * *
(h) Insurance Premium.--Each State or nonprofit private
institution or organization having an agreement with the
Secretary under section 428(b)(1) may charge a borrower under
this section an insurance premium equal to not more than 1.0
percent of the principal amount of the loan, if such premium
will not be used for incentive payments to lenders. In lieu of
the insurance premium authorized under the preceding sentence,
and effective for loans for which the first disbursement of
principal is made on or after July 1, 2006, each State or
nonprofit private institution or organization having an
agreement with the Secretary under section 428(b)(1) shall
collect and deposit into the Federal Student Loan Reserve Fund
under section 422A a Federal default fee of 1.0 percent of the
principal amount of the loan, obtained by deduction
proportionately from each installment payment of the proceeds
of the loan to the borrower.
[SEC. 428I. SPECIAL INSURANCE AND REINSURANCE RULES.
[(a) Designation of Lenders, Servicers, and Guaranty
Agencies.--
[(1) Authority.--Whenever the Secretary determines
that an eligible lender, servicer, or guaranty agency
has a compliance performance rating that equals or
exceeds 97 percent, the Secretary shall designate the
eligible lender, servicer, or guaranty agency, as the
case may be, for exceptional performance. The Secretary
shall notify each appropriate guaranty agency of the
eligible lenders and servicers designated under this
section.
[(2) Compliance performance rating.--For purposes of
paragraph (1), a compliance performance rating is
determined with respect to compliance with due
diligence in the collection of loans under this part
for each year for which the determination is made. Such
rating is equal to the percent of all due diligence
requirements applicable to each loan, on average, as
established by the Secretary by regulation, with
respect to--
[(A) loans serviced during the period by the
eligible lender or servicer; or
[(B) loans on which loan collection was
attempted by the guaranty agency.
[(b) Payment to Lenders and Servicers.--
[(1) 100 percent payment rule.--Each guaranty agency
shall pay each eligible lender or servicer (as agent
for an eligible lender) designated under subsection (a)
100 percent of the unpaid principal and interest of all
loans for which claims are submitted for payment by
that eligible lender or servicer for the one-year
period following the receipt by the guaranty agency of
the notification of designation under this section or
until the guaranty agency receives notice from the
Secretary that the designation of the lender or
servicer under subsection (a) has been revoked.
[(2) Revocation authority.--The Secretary shall
revoke the designation of a lender or servicer under
subsection (a) if any quarterly audit required under
subsection (c)(5) is not received by the Secretary by
the date established by the Secretary or if the audit
indicates the lender or servicer failed to maintain 97
percent or higher compliance with program regulations,
as reflected in the performance of not less than 97
percent of all due diligence requirements applicable to
each loan, on average, as established by the Secretary
for the purpose of this section, for 2 consecutive
months or 90 percent for 1 month.
[(3) Documentation.--Nothing in this section shall
restrict or limit the authority of guaranty agencies to
require the submission of claims documentation
evidencing servicing performed on loans, except that
the guaranty agency may not require greater
documentation than that required for lenders and
servicers not designated under subsection (a).
[(4) Payments to guaranty agencies.--The Secretary
shall pay to each guaranty agency designated under
subsection (a) the appropriate percentage under this
subsection for the 1-year period following the receipt
by the guaranty agency of the notification of
designation under subsection (a).
[(c) Supervision of Designated Lenders and Servicers.--
[(1) Audits for lenders and servicers.--Each eligible
lender or servicer desiring a designation under
subsection (a) shall have a financial and compliance
audit of the loan portfolio of such eligible lender or
servicer conducted annually by a qualified independent
organization from a list of qualified organizations
promulgated by the Secretary in accordance with
standards established by the Comptroller General and
the Secretary. The standards shall measure the lender's
or servicer's compliance with the due diligence
standards and shall include a defined statistical
sampling technique designed to measure the performance
rating of the eligible lender or servicer for the
purpose of this section. Each eligible lender or
servicer shall submit the audit required by this
section to the Secretary and to each appropriate
guaranty agency.
[(2) Additional information on lenders and
servicers.--Each appropriate guaranty agency shall
provide the Secretary with such other information in
its possession regarding an eligible lender or servicer
desiring designation as may relate to the Secretary's
determination under subsection (a), including but not
limited to any information suggesting that the
application of a lender or servicer for designation
under subsection (a) should not be approved.
[(3) Secretary's determinations.--The Secretary shall
make the determination under subsection (a) based upon
the audits submitted under this section, such other
information as provided by any guaranty agency under
paragraph (2), and any information in the possession of
the Secretary or submitted by any other agency or
office of the Federal Government. If the results of the
audit are not persuasively rebutted by such other
information, the Secretary shall inform the eligible
lender or servicer and the appropriate guaranty agency
that its application for designation as an exceptional
lender or servicer has been approved.
[(4) Cost of audit.--Each eligible lender or servicer
shall pay for all the costs of the audits required
under this section.
[(5) Compliance audit.--In order to maintain its
status as an exceptional eligible lender or servicer,
the lender or servicer shall undergo a quarterly
compliance audit at the end of each quarter (other than
the quarter in which status as an exceptional lender or
servicer is established through a financial and
compliance audit, as described in subsection (c)(1)),
and submit the results of such audit to the Secretary
and such appropriate guaranty agency. The compliance
audit will review compliance with due diligence
requirements for the period since the last audit.
[(6) Loss of designation.--If the audit performed
pursuant to paragraph (5) fails to meet the standards
for designation as an exceptional lender or servicer
under subsection (a)(1), the lender or servicer shall
lose its designation as an exceptional lender or
servicer. A lender or servicer receiving a compliance
audit not meeting the standard for designation as an
exceptional lender or servicer may reapply for
designation under subsection (a) at any time.
[(7) Due diligence standards.--Due diligence
standards used for determining compliance under
paragraph (5) shall be promulgated by the Secretary
after consultation with lenders, guaranty agencies and
servicers and shall consist of a list of specific
elements for the Federal regulations selected to
provide an indication of systems degradation.
[(8) Additional revocation authority.--
Notwithstanding any other provision of this section,
designation under subsection (a) may be revoked at any
time by the Secretary if the Secretary determines that
the eligible lender or servicer has failed to maintain
an overall level of regulatory compliance consistent
with the audit submitted by the eligible lender or
servicer under this section or if the Secretary
believes the lender or servicer may have engaged in
fraud in securing designation under subsection (a) or
is failing to service loans in accordance with program
regulations.
[(d) Supervision of Designated Guaranty Agencies.--
[(1) Audit of guaranty agencies.--Each guaranty
agency desiring a designation under subsection (a)
shall have a financial and compliance audit of the
defaulted loan portfolio of such guaranty agency
conducted annually by a qualified independent
organization or person from a list of qualified
organizations or persons promulgated by the Secretary
in accordance with standards established by the
Comptroller General and the Secretary. The standards
shall include defined statistical sampling techniques
designed to measure the performance rating of the
guaranty agency for the purpose of this section. Each
guaranty agency shall submit the audit required by this
paragraph to the Secretary.
[(2) Quarterly sample audits.--The Secretary may
require quarterly sample audits as a means of
determining continued qualification of the guaranty
agency for designation as an exceptional guaranty
agency.
[(3) Secretary's determinations.--The Secretary shall
make the determination under subsection (a) based upon
the audits submitted under this section and other
information in his possession. If the results of the
audit are not persuasively rebutted by such other
information, the Secretary shall inform the guaranty
agency that its application for designation as an
exceptional guaranty agency has been approved.
[(4) Costs of audits.--Each guaranty agency shall pay
for all of the costs of the audits regulated by this
section.
[(5) Revocation for fraud.--The Secretary may revoke
the designation of a guaranty agency under subsection
(a) at any time if the Secretary has reason to believe
the guaranty agency secured its designation under
subsection (a) through fraud or fails to comply with
applicable regulations.
[(6) Revocation based on performance.--Designation as
an exceptional guaranty agency may be revoked at any
time by the Secretary upon 30 days notice and an
opportunity for a hearing before the Secretary upon a
finding by the Secretary that the guaranty agency has
failed to maintain an acceptable overall level of
regulatory compliance.
[(e) Special Rule.--Reimbursements made by the Secretary on
loans submitted for claim by an eligible lender or loan
servicer designated for exceptional performance under this
section shall not be subject to additional review by the
Secretary or repurchase by the guaranty agency for any reason
other than a determination by the Secretary that the eligible
lender, loan servicer, or guaranty agency engaged in fraud or
other purposeful misconduct in obtaining designation for
exceptional performance.
[(f) Limitation.--Nothing in this section shall be construed
to affect the processing of claims on student loans of eligible
lenders not subject to this paragraph.
[(g) Claims.--A lender, servicer, or guaranty agency
designated under subsection (a) failing to service loans or
otherwise comply with applicable program regulations shall be
considered in violation of section 3729 of title 31, United
States Code,.
[(h) Evaluation.--Not later than 3 years after the date of
enactment of this Act, the Comptroller General shall submit to
the Chairman of the Senate Labor and Human Resources Committee
and the House Committee on Education and Labor, an evaluation
of the provisions of this section including, but not limited
to, the following:
[(1) The effectiveness of due diligence performed by
lenders and servicers receiving designation as
exceptional lenders or servicers from the perspective
of securing maximum collections from borrowers.
[(2) A quantification of the dollar volume of claims
that were paid to exceptional lenders and servicers
that would not have been paid under applicable program
provisions prior to the enactment of this section.
[(3) An assessment of the impact of this section on
the financial condition of guaranty agencies.
[(4) An assessment of the savings to lenders,
servicers, and guaranty agencies resulting from
designation as exceptional performance.
[(5) An identification of specific administration
steps that lenders, servicers, and guaranty agencies do
not have to perform as a result of designation as
exceptional lenders, servicers, or guaranty agencies.
[(6) A recommendation for program modifications
applicable to all program participants based on the
findings of the evaluation.
[(7) A recommendation for modifications to this
section and whether the program should be continued.
[(i) Termination.--After receipt of the study authorized in
subsection (h), the Secretary may terminate such program if he
determines such termination to be in the fiscal interest of the
United States.
[(j) Definitions.--For the purpose of this section--
[(1) the term ``due diligence requirements'' means
the activities required to be performed by lenders on
delinquent loans pursuant to regulations issued by the
Secretary;
[(2) the term ``eligible loan'' means a loan made,
insured or guaranteed under part B of title IV;
[(3) the term ``servicer'' means an entity servicing
and collecting student loans which--
[(A) has substantial experience in servicing
and collecting consumer loans or student loans;
[(B) has an independent financial audit
annually which is furnished to the Secretary
and any other parties designated by the
Secretary;
[(C) has business systems which are capable
of meeting the requirements of part B of title
IV;
[(D) has adequate personnel who are
knowledgeable about the student loan programs
authorized by part B of title IV; and
[(E) does not have any owner, majority
shareholder, director, or officer of the entity
who has been convicted of a felony.]
SEC. 428I. SPECIAL INSURANCE AND REINSURANCE RULES FOR EXCEPTIONAL
PERFORMANCE.
(a) Designation of Lenders and Servicers.--
(1) In general.--Whenever the Secretary determines
that an eligible lender or servicer meets the
performance measures required by paragraph (2), the
Secretary shall designate that eligible lender or
servicer, as the case may be, for exceptional
performance. The Secretary shall notify each
appropriate guaranty agency of the eligible lenders and
servicers designated under this section.
(2) Performance measures.--
(A) In determining whether to award a lender
or servicer the exceptional performance
designation, the Secretary shall require that
the lender or servicer be performing at or
above the 95 percentile of the industry, and
demonstrate improved performance against the
lender's or service's average of the last 3
years on the factors described in subparagraph
(B).
(B) The factors on which the Secretary shall
require improvement shall include--
(i) delinquency rates;
(ii) the rate at which delinquent
accounts are restored to good standing;
(iii) default rates;
(iv) the rate of rejected claims; and
(v) any other such measures as
determined by the Secretary.
(C) In addition, the Secretary shall not make
any award of such a designation unless the
consequence of the designation is cost-neutral
to the Federal Government.
(3) Additional information on lenders and
servicers.--Each appropriate guaranty agency shall
provide the Secretary with such other information in
its possession regarding an eligible lender or servicer
desiring designation as may relate to the Secretary's
determination under paragraph (1), including but not
limited to any information suggesting that the
application of a lender or servicer for designation
should not be approved.
(4) Determinations by the secretary.--
(A) The Secretary shall designate an eligible
lender or servicer for exceptional performance
if the eligible lender or servicer meets the
performance measures required by paragraph (2).
(B) The Secretary shall make the
determination under paragraph (1) based upon
the documentation submitted by the eligible
lender or servicer as specified in regulation,
such other information as provided by any
guaranty agency under paragraph (3), and any
information in the possession of the Secretary
or submitted by any other agency or office of
the Federal Government.
(C) The Secretary shall inform the eligible
lender or servicer and the appropriate guaranty
agency that its application for designation as
an exceptional performance lender or servicer
has been approved or disapproved.
(5) Transition.--
(A) Any eligible lender or servicer
designated for exceptional performance as of
the day before the date of enactment of the
College Access and Opportunity Act of 2005
shall continue to be so designated, and subject
to the requirements of this section as in
effect on that day (including revocation),
until the performance standards described in
paragraph (2) are established.
(B) The Secretary shall not designate any
additional eligible lenders or servicers for
exceptional performance until those performance
standards are established.
(b) Payment to Lenders and Servicers.--A guaranty agency
shall pay, to each eligible lender or servicer (as agent for an
eligible lender) designated under subsection (a), 98 percent of
the unpaid principal and interest of all loans for which claims
are submitted for payment by that eligible lender or servicer
for the one-year period following the receipt by the guaranty
agency of the notification of designation under this section,
or until the guaranty agency receives notice from the Secretary
that the designation of the lender or servicer under subsection
(a)(2) has been revoked.
(c) Revocation Authority.--
(1) The Secretary shall revoke the designation of a
lender or a servicer under subsection (a) if the
Secretary determines that the lender or servicer has
failed to meet the performance standards required by
subsection (a)(2).
(2) Notwithstanding any other provision of this
section, a designation under subsection (a) may be
revoked at any time by the Secretary, in the
Secretary's discretion, if the Secretary determines
that the eligible lender or servicer has failed to meet
the criteria and performance standards established by
the Secretary in regulation, or if the Secretary
believes the lender or servicer may have engaged in
fraud in securing designation under subsection (a), or
is failing to service loans in accordance with program
regulations.
(d) Documentation.--Nothing in this section shall restrict or
limit the authority of guaranty agencies to require the
submission of claims documentation evidencing servicing
performed on loans, except that the guaranty agency may not
require greater documentation than that required for lenders
and servicers not designated under subsection (a).
(e) Special Rule.--Reimbursements made by the Secretary on
loans submitted for claim by an eligible lender or loan
servicer designated for exceptional performance under this
section shall not be subject to additional review by the
Secretary or repurchase by the guaranty agency for any reason
other than a determination by the Secretary that the eligible
lender or loan servicer engaged in fraud or other purposeful
misconduct in obtaining designation for exceptional
performance.
(f) Limitation.--Nothing in this section shall be construed
to affect the processing of claims on student loans of eligible
lenders not subject to this section.
(g) Claims.--A lender or servicer designated under subsection
(a) failing to service loans or otherwise comply with
applicable program regulations shall be considered in violation
of section 3729 of title 31, United States Code.
(h) Termination.--The Secretary may terminate the designation
of lenders and servicers under this section if he determines
that termination would be in the fiscal interest of the United
States.
(i) Definitions.--As used in this section--
(1) the term ``eligible loan'' means a loan made,
insured, or guaranteed under this part; and
(2) the term ``servicer'' means an entity servicing
and collecting student loans that--
(A) has substantial experience in servicing
and collecting consumer loans or student loans;
(B) has an independent financial audit
annually which is furnished to the Secretary
and any other parties designated by the
Secretary;
(C) has business systems which are capable of
meeting the requirements of this part;
(D) has adequate personnel who are
knowledgeable about the student loan programs
authorized by this part; and
(E) does not have any owner, majority
shareholder, director, or officer of the entity
who has been convicted of a felony.
SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
(a) * * *
(b) Program Authorized.--The Secretary shall carry out a
program, through the holder of the loan, of assuming the
obligation to repay a qualified loan amount for a loan made
under section 428 or 428H, in accordance with subsection (c),
for any new borrower on or after October 1, 1998, who--
(1) has been employed as a full-time teacher for 5
consecutive complete school years--
(A) * * *
(B) if employed as an elementary school or
secondary school teacher, is highly qualified
as defined in section 9101 of the Elementary
Secondary Education Act of 1965, or meets the
requirements of subsection (g)(3); and
* * * * * * *
(c) Qualified Loans Amount.--
(1) * * *
* * * * * * *
(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the
amount specified in paragraph (1), the aggregate amount
that the Secretary shall repay under this section shall
be not more than $17,500 in the case of--
(A) a secondary school teacher--
(i) * * *
(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time
basis; [and]
(B) an elementary school or secondary school
teacher--
(i) * * *
* * * * * * *
(iii) who, as certified by the chief
administrative officer of the public or
non-profit private elementary school or
secondary school in which the borrower
is employed, is teaching children with
disabilities that correspond with the
borrower's special education training
and has demonstrated knowledge and
teaching skills in the content areas of
the elementary school or secondary
school curriculum that the borrower is
teaching[.]; and
(C) an elementary or secondary school teacher
who primarily teaches reading--
(i) who meets the requirements of
subsection (b);
(ii) who has obtained a separate
reading instruction credential from the
State in which the teacher is employed;
and
(iii) who is certified by the chief
administrative officer of the public or
nonprofit private elementary or
secondary school in which the borrower
is employed to teach reading--
(I) as being proficient in
teaching the essential
components of reading
instruction as defined in
section 1208 of the Elementary
and Secondary Education Act of
1965; and
(II) as having such
credential.
* * * * * * *
(g) Additional Eligibility Provisions.--
(1) * * *
(3) Private school teachers.--An individual who is
employed as a teacher in a private school and is exempt
from State certification requirements (unless otherwise
applicable under State law), may, in lieu of the
requirement of subsection (a)(1)(B), have such
employment treated as qualifying employment under this
section if such individual is permitted to and does
satisfy rigorous subject knowledge and skills tests by
taking competency tests in the applicable grade levels
and subject areas. For such purposes, the competency
tests taken by such a private school teacher must be
recognized by 5 or more States for the purpose of
fulfilling the highly qualified teacher requirements
under section 9101 of the Elementary and Secondary
Education Act of 1965, and the score achieved by such
teacher on each test must equal or exceed the average
passing score of those 5 States.
* * * * * * *
[SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
[(a) Purpose.--It is the purpose of this section--
[(1) to bring more highly trained individuals into
the early child care profession; and
[(2) to keep more highly trained child care providers
in the early child care field for longer periods of
time.
[(b) Definitions.--In this section:
[(1) Child care facility.--The term ``child care
facility'' means a facility, including a home, that--
[(A) provides child care services; and
[(B) meets applicable State or local
government licensing, certification, approval,
or registration requirements, if any.
[(2) Child care services.--The term ``child care
services'' means activities and services provided for
the education and care of children from birth through
age 5 by an individual who has a degree in early
childhood education.
[(3) Degree.--The term ``degree'' means an
associate's or bachelor's degree awarded by an
institution of higher education.
[(4) Early childhood education.--The term ``early
childhood education'' means education in the areas of
early child education, child care, or any other
educational area related to child care that the
Secretary determines appropriate.
[(5) Institution of higher education.--
Notwithstanding section 102, the term ``institution of
higher education'' has the meaning given the term in
section 101.
[(c) Demonstration Program.--
[(1) In general.--The Secretary may carry out a
demonstration program of assuming the obligation to
repay, pursuant to subsection (d), a loan made,
insured, or guaranteed under this part or part D
(excluding loans made under sections 428B and 428C or
comparable loans made under part D) for any new
borrower after the date of enactment of the Higher
Education Amendments of 1998, who--
[(A) completes a degree in early childhood
education;
[(B) obtains employment in a child care
facility; and
[(C) has worked full time for the 2
consecutive years preceding the year for which
the determination is made as a child care
provider in a low-income community.
[(2) Low-income community.--For the purposes of this
subsection, the term ``low-income community'' means a
community in which 70 percent of households within the
community earn less than 85 percent of the State median
household income.
[(3) Award basis; priority.--
[(A) Award basis.--Subject to subparagraph
(B), loan repayment under this section shall be
on a first-come, first-served basis and subject
to the availability of appropriations.
[(B) Priority.--The Secretary shall give
priority in providing loan repayment under this
section for a fiscal year to student borrowers
who received loan repayment under this section
for the preceding fiscal year.
[(4) Regulations.--The Secretary is authorized to
prescribe such regulations as may be necessary to carry
out the provisions of this section.
[(d) Loan Repayment.--
[(1) In general.--The Secretary shall assume the
obligation to repay--
[(A) after the second consecutive year of
employment described in subparagraphs (B) and
(C) of subsection (c)(1), 20 percent of the
total amount of all loans made after date of
enactment of the Higher Education Amendments of
1998, to a student under this part or part D;
[(B) after the third consecutive year of such
employment, 20 percent of the total amount of
all such loans; and
[(C) after each of the fourth and fifth
consecutive years of such employment, 30
percent of the total amount of all such loans.
[(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment
of a loan made under this part or part D.
[(3) Interest.--If a portion of a loan is repaid by
the Secretary under this section for any year, the
proportionate amount of interest on such loan which
accrues for such year shall be repaid by the Secretary.
[(4) Special rule.--In the case where a student
borrower who is not participating in loan repayment
pursuant to this section returns to an institution of
higher education after graduation from an institution
of higher education for the purpose of obtaining a
degree in early childhood education, the Secretary is
authorized to assume the obligation to repay the total
amount of loans made under this part or part D incurred
for a maximum of two academic years in returning to an
institution of higher education for the purpose of
obtaining a degree in early childhood education. Such
loans shall only be repaid for borrowers who qualify
for loan repayment pursuant to the provisions of this
section, and shall be repaid in accordance with the
provisions of paragraph (1).
[(5) Ineligibility of national service award
recipients.--No student borrower may, for the same
volunteer service, receive a benefit under both this
section and subtitle D of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12601 et
seq.).
[(e) Repayment to Eligible Lenders.--The Secretary shall pay
to each eligible lender or holder for each fiscal year an
amount equal to the aggregate amount of loans which are subject
to repayment pursuant to this section for such year.
[(f ) Application for Repayment.--
[(1) In general.--Each eligible individual desiring
loan repayment under this section shall submit a
complete and accurate application to the Secretary at
such time, in such manner, and containing such
information as the Secretary may require.
[(2) Conditions.--An eligible individual may apply
for loan repayment under this section after completing
each year of qualifying employment. The borrower shall
receive forbearance while engaged in qualifying
employment unless the borrower is in deferment while so
engaged.
[(g) Evaluation.--
[(1) In general.--The Secretary shall conduct, by
grant or contract, an independent national evaluation
of the impact of the demonstration program assisted
under this section on the field of early childhood
education.
[(2) Competitive basis.--The grant or contract
described in subsection (b) shall be awarded on a
competitive basis.
[(3) Contents.--The evaluation described in this
subsection shall--
[(A) determine the number of individuals who
were encouraged by the demonstration program
assisted under this section to pursue early
childhood education;
[(B) determine the number of individuals who
remain employed in a child care facility as a
result of participation in the program;
[(C) identify the barriers to the
effectiveness of the program;
[(D) assess the cost-effectiveness of the
program in improving the quality of--
[(i) early childhood education; and
[(ii) child care services;
[(E) identify the reasons why participants in
the program have chosen to take part in the
program;
[(F) identify the number of individuals
participating in the program who received an
associate's degree and the number of such
individuals who received a bachelor's degree;
and
[(G) identify the number of years each
individual participates in the program.
[(4) Interim and final evaluation reports.--The
Secretary shall prepare and submit to the President and
the Congress such interim reports regarding the
evaluation described in this subsection as the
Secretary deems appropriate, and shall prepare and so
submit a final report regarding the evaluation by
January 1, 2002.
[(h) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $10,000,000 for
fiscal year 1999, and such sums as may be necessary for each of
the 4 succeeding fiscal years.]
SEC. 428K. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.
(a) Purposes.--The purposes of this section are--
(1) to encourage highly trained individuals to enter
and continue in service in areas of national need; and
(2) to reduce the burden of student debt for
Americans who dedicate their careers to service in
areas of national need.
(b) Program Authorized.--
(1) In general.--The Secretary is authorized to carry
out a program of assuming the obligation to repay,
pursuant to paragraphs (2) of subsection (c) and
subsection (d), a qualified loan amount for a loan
made, insured, or guaranteed under this part or part D
(other than loans made under section 428B and 428C and
comparable loans made under part D), for any new
borrower after the date of enactment of the College
Access and Opportunity Act of 2005, who--
(A) has been employed full-time for at least
5 consecutive complete school, academic, or
calendar years, as appropriate, in an area of
national need described in subsection (c); and
(B) is not in default on a loan for which the
borrower seeks forgiveness.
(2) Award basis.--Loan repayment under this section
shall be on a first-come, first-served basis pursuant
to the designation under subsection (c) and subject to
the availability of appropriations.
(3) Regulations.--The Secretary is authorized to
issue such regulations as may be necessary to carry out
the provisions of this section.
(c) Areas of National Need.--
(1) Statutory categories.--For purposes of this
section, an individual shall be treated as employed in
an area of national need if the individual is employed
full time and is any of the following:
(A) Early childhood educators.--An individual
who is employed as an early childhood educator
in an eligible preschool program or child care
facility in a low-income community, and who is
involved directly in the care, development and
education of infants, toddlers, or young
children through age five.
(B) Nurses.--An individual who is employed--
(i) as a nurse in a clinical setting;
or
(ii) 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)).
(C) Foreign language specialists.--An
individual who has obtained a baccalaureate
degree in a critical foreign language and is
employed--
(i) in an elementary or secondary
school as a teacher of a critical
foreign language; or
(ii) in an agency of the United
States Government in a position that
regularly requires the use of such
critical foreign language.
(D) Librarians.--An individual who is
employed full-time as a libarian in--
(i) a public library that serves a
geographic area within which the public
schools have a combined average of 30
percent or more of their total student
enrollments composed of children
counted under section 1113(a)(5) of the
Elementary and Secondary Education Act
of 1965; or
(ii) an elementary or secondary
school which is in the school district
of a local educational agency which is
eligible in such year for assistance
pursuant to title I of the Elementary
and Secondary Education Act of 1965,
and which for the purpose of this
paragraph and for that year has been
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 counted under
section 1113(a)(5) of the Elementary
and Secondary Education Act of 1965
exceeds 30 percent of the total
enrollment of that school.
(E) Highly qualified teachers: bilingual
education and low-income communities.--An
individual who--
(i) is highly qualified as such term
is defined in section 9101 of the
Elementary and Secondary Education Act
of 1965; and
(ii)(I) is employed as a full-time
teacher of bilingual education; or
(II) is employed as a teacher for
service in a public or nonprofit
private elementary or secondary school
which is in the school district of a
local educational agency which is
eligible in such year for assistance
pursuant to title I of the Elementary
and Secondary Education Act of 1965,
and which for the purpose of this
paragraph and for that year has been
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 counted under
section 1113(a)(5) of the Elementary
and Secondary Education Act of 1965
exceeds 40 percent of the total
enrollment of that school.
(F) First responders in low-income
communities.--An individual who--
(i) is employed as a firefighter,
police officer, or emergency medical
technician; and
(ii) serves as such in a low-income
community.
(G) Child welfare workers.--An individual
who--
(i) has obtained a degree in social
work or a related field with a focus on
serving children and families; and
(ii) is employed in public or private
child welfare services.
(H) Speech-language pathologists.--An
individual who is a speech-language
pathologist, who is employed in an eligible
preschool program or an elementary or secondary
school, and who has, at a minimum, a graduate
degree in speech-language pathology, or
communication sciences and disorders.
(I) Additional areas of national need.--An
individual who is employed in an area
designated by the Secretary under paragraph (2)
and has completed a baccalaureate or advanced
degree related to such area.
(2) Designation of areas of national need.--After
consultation with appropriate Federal, State, and
community-based agencies and organizations, the
Secretary shall designate areas of national need. In
making such designations, the Secretary shall take into
account the extent to which--
(A) the national interest in the area is
compelling;
(B) the area suffers from a critical lack of
qualified personnel; and
(C) other Federal programs support the area
concerned.
(d) Qualified Loan Amount.--The Secretary shall repay not
more than $5,000 in the aggregate of the loan obligation on a
loan made under section 428 or 428H that is outstanding after
the completion of the fifth consecutive school, academic, or
calendar year, as appropriate, described in subsection (b)(1).
(e) Construction.--Nothing in this section shall be construed
to authorize the refunding of any repayment of a loan made
under section 428 or 428H.
(f) Ineligibility of National Service Award Recipients.--No
student borrower may, for the same service, receive a benefit
under both this section and subtitle D of title I of the
National and Community Service Act of 1990 (42 U.S.C. 12601 et
seq.).
(g) Ineligibility for Double Benefits.--No borrower may
receive a reduction of loan obligations under both this section
and section 428J or 460.
(h) Definitions.--In this section
(1) Child care facility.--The term ``child care
facility'' means a facility, including a home, that--
(A) provides for the education and care of
children from birth through age 5; and
(B) meets any applicable State or local
government licensing, certification, approval,
or registration requirements.
(2) Critical foreign language.--The term ``critical
foreign language'' includes the languages of Arabic,
Korean, Japanese, Chinese, Pashto, Persian-Farsi,
Serbian-Croatian, Russian, Portuguese, and any other
language identified by the Secretary of Education, in
consultation with the Defense Language Institute, the
Foreign Service Institute, and the National Security
Education Program, as a critical foreign language need.
(3) Early childhood educator.--The term ``early
childhood educator'' means an early childhood educator
employed in an eligible preschool program who has
completed a baccalaureate or advanced degree in early
childhood development, early childhood education, or in
a field related to early childhood education.
(4) Eligible preschool program.--The term ``eligible
preschool program'' means a program that provides for
the care, development, and education of infants,
toddlers, or young children through age 5, meets any
applicable State or local government licensing,
certification, approval, and registration requirements,
and is operated by--
(A) a public or private school that may be
supported, sponsored, supervised, or
administered by a local educational agency;
(B) a Head Start agency serving as a grantee
designated under the Head Start Act (42 U.S.C.
9831 et seq.);
(C) a nonprofit or community based
organization; or
(D) a child care program, including a home.
(5) Low-income community.--In this subsection, the
term ``low-income community'' means a community in
which 70 percent of households earn less than 85
percent of the State median household income.
(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 section 801 of the Public
Health Service Act (42 U.S.C. 296)).
(iv) A nursing degree from a diploma
school of nursing (as defined in
section 801 of the Public Health
Service Act (42 U.S.C. 296)).
(7) Speech-language pathologist.--The term ``speech-
language pathologist'' means a speech-language
pathologist who meets all of the following:
(A) the speech-language pathologist 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) of this Act; and
(B) the speech-language pathologist meets or
exceeds the qualifications as defined in
section 1861(ll) of the Social Security Act (42
U.S.C. 1395x).
(i) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section such sums as may be
necessary for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
* * * * * * *
SEC. 430A. REPORTS TO CREDIT BUREAUS AND INSTITUTIONS OF HIGHER
EDUCATION.
(a) Agreements To Exchange Information.--For the purpose of
promoting responsible repayment of loans covered by Federal
loan insurance pursuant to this part or covered by a guaranty
agreement pursuant to section 428, the Secretary, each guaranty
agency, eligible lender, and subsequent holder shall enter into
[agreements with credit bureau organizations] an agreement with
each national credit bureau organization (as described in
section 603(p) of the Fair Credit Reporting Act) to exchange
information concerning student borrowers, in accordance with
the requirements of this section. For the purpose of assisting
such organizations in complying with the Fair Credit Reporting
Act, such agreements may provide for timely response by the
Secretary (concerning loans covered by Federal loan insurance),
by a guaranty agency, eligible lender, or subsequent holder
(concerning loans covered by a guaranty agreement), or to
requests from such organizations for responses to objections
raised by borrowers. Subject to the requirements of subsection
(c), such agreements shall require the Secretary, the guaranty
agency, eligible lender, or subsequent holder, as appropriate,
to disclose to such organizations, with respect to any loan
under this part that has not been repaid by the borrower--
(1) * * *
* * * * * * *
SEC. 432. LEGAL POWERS AND RESPONSIBILITIES.
(a) * * *
* * * * * * *
(f) Audit of Financial Transactions.--
(1) Comptroller General and Inspector General
authority.--The Comptroller General and the Inspector
General of the Department of Education shall each have
the authority to conduct an audit of the financial
transactions of--
(A) * * *
* * * * * * *
(C) a representative sample of eligible
lenders under this part, upon the request of
the [Committee on Education and the Workforce
of the House of Representatives or the
Committee on Labor and Human Resources of the
Senate] either of the authorizing committees,
with respect to the payment of the special
allowance under section 438 in order to
evaluate the program authorized by this part.
* * * * * * *
(k) Program of Assistance for Borrowers.--
(1) In general.--The Secretary shall undertake a
program to encourage corporations and other private and
public employers, including the Federal Government, to
assist borrowers in repaying loans received under this
title, including providing employers with options for
payroll deduction of loan payments [and offering loan
repayment matching provisions as part of employee
benefit packages.], offering loan repayment matching
provisions as part of employee benefit packages, and
providing employees with financial and economic
education and counseling.
* * * * * * *
(l) Uniform Administrative and Claims Procedures.--
(1) In general.--The Secretary shall, by regulation
developed in consultation with guaranty agencies,
lenders, institutions of higher education, secondary
markets, students, third party servicers and other
organizations involved in providing loans under this
part, prescribe standardized forms and procedures
regarding--
(A) * * *
* * * * * * *
(H) borrower status change and anticipated
graduation date; and
* * * * * * *
(m) Common Forms and Formats.--
(1) Common guaranteed student loan application form
and promissory note.--
(A) * * *
(B) Requirements.--The forms prescribed by
the Secretary shall--
(i) use clear, concise, and simple
language to facilitate understanding of
loan terms and conditions by
applicants; and
(ii) be formatted to require the
applicant to clearly indicate a choice
of lender[; and].
* * * * * * *
[(n) Default Reduction Management.--
[(1) Authorization.--There are authorized to be
appropriated $25,000,000 for fiscal year 1999 and each
of the four succeeding fiscal years, for the Secretary
to expend for default reduction management activities
for the purposes of establishing a performance measure
that will reduce defaults by 5 percent relative to the
prior fiscal year. Such funds shall be in addition to,
and not in lieu of, other appropriations made for such
purposes.
[(2) Allowable activities.--Allowable activities for
which such funds shall be expended by the Secretary
shall include the following: (A) program reviews; (B)
audits; (C) debt management programs; (D) training
activities; and (E) such other management improvement
activities approved by the Secretary.
[(3) Plan for use required.--The Secretary shall
submit a plan, for inclusion in the materials
accompanying the President's budget each fiscal year,
detailing the expenditure of funds authorized by this
section to accomplish the 5 percent reduction in
defaults. At the conclusion of the fiscal year, the
Secretary shall report the Secretary's findings and
activities concerning the expenditure of funds and
whether the performance measure was met. If the
performance measure was not met, the Secretary shall
report the following:
[(A) why the goal was not met, including an
indication of any managerial deficiencies or of
any legal obstacles;
[(B) plans and a schedule for achieving the
established performance goal;
[(C) recommended legislative or regulatory
changes necessary to achieve the goal; and
[(D) if the performance standard or goal is
impractical or infeasible, why that is the case
and what action is recommended, including
whether the goal should be changed or the
program altered or eliminated.
This report shall be submitted to the Appropriations
Committees of the House of Representatives and the
Senate and to the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate.]
[(o)] (n) Consequences of Guaranty Agency Insolvency.--In the
event that the Secretary has determined that a guaranty agency
is unable to meet its insurance obligations under this part,
the holder of loans insured by the guaranty agency may submit
insurance claims directly to the Secretary and the Secretary
shall pay to the holder the full insurance obligation of the
guaranty agency, in accordance with insurance requirements no
more stringent than those of the guaranty agency. Such
arrangements shall continue until the Secretary is satisfied
that the insurance obligations have been transferred to another
guarantor who can meet those obligations or a successor will
assume the outstanding insurance obligations.
[(p)] (o) Reporting Requirement.--All officers and directors,
and those employees and paid consultants of eligible
institutions, eligible lenders, guaranty agencies, loan
servicing agencies, accrediting agencies or associations, State
licensing agencies or boards, and entities acting as secondary
markets (including the Student Loan Marketing Association), who
are engaged in making decisions as to the administration of any
program or funds under this title or as to the eligibility of
any entity or individual to participate under this title, shall
report to the Secretary, in such manner and at such time as the
Secretary shall require, on any financial interest which such
individual may hold in any other entity participating in any
program assisted under this title.
SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) * * *
* * * * * * *
(e) Special Disclosure Rules on [SLS Loans and] PLUS Loans
and Unsubsidized Loans.--Loans made under sections [428A,
428B,] 428B and 428H shall not be subject to the disclosure of
projected monthly payment amounts required under subsection
(b)(8) 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 is
in school. Such sample projections shall disclose the cost to
the student of capitalizing--
(1) * * *
* * * * * * *
SEC. 435. DEFINITIONS FOR STUDENT LOAN INSURANCE PROGRAM.
As used in this part:
(a) Eligible Institution.--
(1) In general.--Except as provided in paragraph (2),
the term ``eligible institution'' means an institution
of higher education, as defined in section [102] 101,
except that, for the purposes of sections
427(a)(2)(C)(i) and 428(b)(1)(M)(i), an eligible
institution includes any institution that is within
this definition without regard to whether such
institution is participating in any program under this
title and includes any institution ineligible for
participation in any program under this part pursuant
to paragraph (2) of this subsection.
* * * * * * *
(3) Appeals based upon allegations of improper loan
servicing.--An institution that--
(A) is subject to loss of eligibility for the
Federal Family Education Loan Program pursuant
to paragraph (2)(A) of this subsection; or
[(B) is subject to loss of eligibility for
the Federal Supplemental Loans for Students
pursuant to section 428A(a)(2); or]
[(C)] (B) is an institution whose cohort
default rate equals or exceeds 20 percent for
the most recent year for which data are
available;
may include in its appeal of such loss or rate a
defense based on improper loan servicing (in addition
to other defenses). In any such appeal, the Secretary
shall take whatever steps are necessary to ensure that
such institution has access for a reasonable period of
time, not to exceed 30 days, to a representative sample
(as determined by the Secretary) of the relevant loan
servicing and collection records used by a guaranty
agency in determining whether to pay a claim on a
defaulted loan or by the Department in determining an
institution's default rate in the loan program under
part D of this title. The Secretary shall reduce the
institution's cohort default rate to reflect the
percentage of defaulted loans in the representative
sample that are required to be excluded pursuant to
subsection (m)(1)(B).
* * * * * * *
(d) Eligible Lender.--
(1) In general.--Except as provided in paragraphs (2)
through (6), the term ``eligible lender'' means--
(A) * * *
* * * * * * *
(G) for purposes of making loans under
sections [428A(d), 428B(d), 428C,] 428B(d),
428C, 428H, and 439(q), the Student Loan
Marketing Association or the Holding Company of
the Student Loan Marketing Association,
including any subsidiary of the Holding
Company, created pursuant to section 440;
* * * * * * *
[(2) Additional requirements of eligible
institutions.--To be an eligible lender under this
part, an eligible institution--
[(A) shall employ at least one person whose
full-time responsibilities are limited to the
administration of programs of financial aid for
students attending such institution;
[(B) shall not be a home study school;
[(C) shall make loans to not more than 50
percent of the undergraduate students at the
institution;
[(D) shall not make a loan, other than a loan
to a graduate or professional student, unless
the borrower has previously received a loan
from the school or has been denied a loan by an
eligible lender;
[(E) shall not have a cohort default rate (as
defined in section 435(m)) greater than 15
percent; and
[(F) shall use the proceeds from special
allowance payments and interest payments from
borrowers for need-based grant programs, except
for reasonable reimbursement for direct
administrative expenses;
except that the requirements of subparagraphs (C) and
(D) shall not apply with respect to loans made, and
loan commitments made, after the date of enactment of
the Higher Education Amendments of 1986 and prior to
July 1, 1987.]
(2) Requirements for eligible institutions.--
(A) In general.--To be an eligible lender
under this part, an eligible institution--
(i) shall employ at least one person
whose full-time responsibilities are
limited to the administration of
programs of financial aid for students
attending such institution;
(ii) shall not be a home study
school;
(iii) shall not--
(I) make a loan to any
undergraduate student;
(II) make a loan other than a
loan under section 428 or 428H
to a graduate or professional
student; or
(III) make a loan to a
borrower who is not enrolled at
that institution;
(iv) shall award any contract for
financing, servicing, or administration
of loans under this title on a
competitive basis;
(v) shall offer loans which carry an
origination fee or an interest rate, or
both, that are less than such fee or
rate authorized under the provisions of
this title;
(vi) shall not have a cohort default
rate (as defined in section 435(m))
greater than 10 percent;
(vii) shall, for any year for which
the institution engages in activities
as an eligible lender, provide for a
compliance audit conducted in
accordance with section
428(b)(1)(U)(iii)(I), and the
regulations thereunder, and submit the
results of such audit to the Secretary;
and
(viii) shall use any proceeds from
special allowance payments and interest
payments from borrowers, interest
subsidies received from the Department
of Education, and any proceeds from the
sale or other disposition of loans, for
need-based grant programs.
(B) Administrative expenses.--An eligible
lender under subparagraph (A) shall be
permitted to use a portion of the proceeds
described in subparagraph (A)(viii) for
reasonable and direct administrative expenses.
(C) Supplement, not supplant.--An eligible
lender under subparagraph (A) shall ensure that
the proceeds described in subparagraph
(A)(viii) are used to supplement, and not to
supplant, non-Federal funds that would
otherwise be used for need-based grant
programs.
* * * * * * *
(m) Cohort Default Rate.--
(1) In general.--(A) Except as provided in paragraph
(2), the term ``cohort default rate'' means, for any
fiscal year in which 30 or more current and former
students at the institution enter repayment on loans
under section 428[, 428A,] or 428H, received for
attendance at the institution, 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 that institution in that fiscal year who
default before the end of the following fiscal year.
The Secretary shall require that each guaranty agency
that has insured loans for current or former students
of the institution afford such institution a reasonable
opportunity (as specified by the Secretary) to review
and correct errors in the information required to be
provided to the Secretary by the guaranty agency for
the purposes of calculating a cohort default rate for
such institution, prior to the calculation of such
rate.
(2) Special rules.--(A) * * *
* * * * * * *
(D) For the purposes of this subsection, a loan made
in accordance with section [428A] 428H (or the portion
of a loan made under section 428C that is used to repay
a loan made under section [428A] 428H) shall not be
considered to enter repayment until after the borrower
has ceased to be enrolled in a course of study leading
to a degree or certificate at an eligible institution
on at least a half-time basis (as determined by the
institution) and ceased to be in a period of
forbearance based on such enrollment. Each eligible
lender of a loan made under section [428A] 428H (or a
loan made under section 428C a portion of which is used
to repay a loan made under section [428A] 428H) shall
provide the guaranty agency with the information
necessary to determine when the loan entered repayment
for purposes of this subsection, and the guaranty
agency shall provide such information to the Secretary.
* * * * * * *
SEC. 437. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR
DISABLED BORROWERS; TREATMENT OF BORROWERS
ATTENDING CLOSED SCHOOLS OR FALSELY CERTIFIED AS
ELIGIBLE TO BORROW.
(a) Repayment in Full for Death and Disability.--If a student
borrower who has received a loan described in subparagraph (A)
or (B) of section 428(a)(1) dies or becomes permanently and
totally disabled (as determined in accordance with regulations
of the Secretary), then the Secretary shall discharge the
borrower's liability on the loan by repaying the amount owed on
the loan. In making such determination of permanent and total
disability, the Secretary shall provide that a borrower who has
been certified as permanently and totally disabled by the
Department of Veterans Affairs or the Social Security
Administration shall not be required to present further
documentation for purposes of this title.
* * * * * * *
(c) Discharge.--
(1) In general.--If a borrower who received, on or
after January 1, 1986, a loan made, insured, or
guaranteed under this part and the student borrower, or
the student on whose behalf a parent borrowed, is
unable to complete the program in which such student is
enrolled due to the closure of the institution or if
such student's eligibility or parent's eligibility to
borrow under this part was falsely certified by the
eligible institution, or if the institution failed to
make a refund of loan proceeds which the institution
owed to such student's lender, then the Secretary shall
discharge the borrower's liability on the loan
(including interest and collection fees) by repaying
the amount owed on the loan and shall subsequently
pursue any claim available to such borrower against the
institution and its affiliates and principals or settle
the loan obligation pursuant to the financial
responsibility authority under subpart 3 of part H. In
the case of a discharge based upon a failure to refund,
the amount of the discharge shall not exceed that
portion of the loan which should have been refunded.
The Secretary shall report to the [Committee on
Education and the Workforce of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate] authorizing committees
annually as to the dollar amount of loan discharges
attributable to failures to make refunds.
* * * * * * *
SEC. 438. SPECIAL ALLOWANCES.
(a) * * *
(b) Computation and Payment.--
(1) * * *
(2) Rate of special allowance.--(A) * * *
(B)(i) * * *
* * * * * * *
(iv) Notwithstanding clauses (i) and (ii), the
quarterly rate of the special allowance for holders of
loans which are financed with funds obtained by the
holder from the issuance of obligations originally
issued on or after October 1, 1993, or refunded after
September 30, 2004, [and before January 1, 2006,] the
income from which is excluded from gross income under
the Internal Revenue Code of 1986, shall be the
quarterly rate of the special allowance established
under subparagraph (A), (E), (F), (G), (H), or (I) as
the case may be. Such rate shall also apply to holders
of loans which were made or purchased with funds
obtained by the holder from collections or default
reimbursements on, or interest or other income
pertaining to, eligible loans made or purchased with
funds described in the preceding sentence of this
subparagraph or from income on the investment of such
funds.
(v) Notwithstanding clauses (i) and (ii), the
quarterly rate of the special allowance shall be the
rate determined under subparagraph (A), (E), (F), (G),
(H), or (I) of this paragraph, or paragraph (4), as the
case may be, for a holder of loans that--
(I) * * *
(II) are--
(aa) financed by such an obligation
that, after September 30, 2004, [and
before January 1, 2006,] has matured or
been retired or defeased;
(bb) refinanced after September 30,
2004, [and before January 1, 2006,]
with funds obtained from a source other
than funds described in subclause (I)
of this clause; or
(cc) sold or transferred to any other
holder after September 30, 2004[, and
before January 1, 2006].
(vi) Notwithstanding clauses (i), (ii), and (v), the
quarterly rate of the special allowance shall be the
rate determined under subparagraph (A), (E), (F), (G),
(H), or (I) of this paragraph, as the case may be, for
a holder of loans--
(I) that were made or purchased on or after
October 1, 2005; or
(II) that were not earning a quarterly rate
of special allowance determined under clauses
(i) or (ii) of subparagraph (B) of this
paragraph (20 U.S.C. 1087-1(b)(2)(b)) as of
October 1, 2005.
* * * * * * *
(D)(i) * * *
(ii) For the purpose of [division (i) of this
subparagraph] clause (i) of this subparagraph, the term
``qualified State obligation'' means--
(I) * * *
* * * * * * *
(I) Loans disbursed on or after january 1,
2000.--
(i) * * *
[(ii) In school and grace period.--In
the case of any loan--
[(I) for which the first
disbursement is made on or
after January 1, 2000, and
before July 1, 2006, and for
which the applicable rate of
interest is described in
section 427A(k)(2); or
[(II) for which the first
disbursement is made on or
after July 1, 2006, and for
which the applicable rate of
interest is described in
section 427A(l)(1), but only
with respect to (aa) periods
prior to the beginning of the
repayment period of the loan;
or (bb) during the periods in
which principal need not be
paid (whether or not such
principal is in fact paid) by
reason of a provision described
in section 427(a)(2)(C) or
428(b)(1)(M);
clause (i)(III) of this subparagraph
shall be applied by substituting ``1.74
percent'' for ``2.34 percent''.]
(ii) In school and grace period.--In
the case of any loan for which the
first disbursement is made on or after
January 1, 2000, and for which the
applicable interest rate is described
in section 427A(k)(2), clause (i)(III)
of this subparagraph shall be applied
by substituting ``1.74 percent'' for
``2.34 percent''.
(iii) PLUS loans.--In the case of any
loan for which the first disbursement
is made on or after January 1, 2000,
and for which the applicable rate of
interest is described in section
427A(k)(3) [or (l)(2)], clause (i)(III)
of this subparagraph shall be applied
by substituting ``2.64 percent'' for
``2.34 percent''[, subject to clause
(v) of this subparagraph].
(iv) Consolidation loans.--In the
case of any consolidation loan for
which the application is received by an
eligible lender on or after January 1,
2000, and for which the applicable
interest rate is determined under
section 427A(k)(4) [or (l)(3)] or
(k)(5), clause (i)(III) of this
subparagraph shall be applied by
substituting ``2.64 percent'' for
``2.34 percent''[, subject to clause
(vi) of this subparagraph].
[(v) Limitation on special allowances
for plus loans before july 1, 2006.--In
the case of PLUS loans made under
section 428B and first disbursed on or
after January 1, 2000, and before July
1, 2006, for which the interest rate is
determined under section 427A(k)(3), a
special allowance shall not be paid for
such loan during any 12-month period
beginning on July 1 and ending on June
30 unless, on the June 1 preceding such
July 1--
[(I) the bond equivalent rate
of 91-day Treasury bills
auctioned at the final auction
held prior to such June 1 (as
determined by the Secretary for
purposes of such section); plus
[(II) 3.1 percent,
exceeds 9.0 percent.
[(vi) Limitation on special
allowances for consolidation loans.--In
the case of consolidation loans made
under section 428C and for which the
application is received on or after
January 1, 2000, for which the interest
rate is determined under section
427A(k)(4) or (l)(3), a special
allowance shall not be paid for such
loan during any 3-month period ending
March 31, June 30, September 30, or
December 31 unless--
[(I) the average of the bond
equivalent rates of the quotes
of the 3-month commercial paper
(financial) rates in effect for
each of the days in such
quarter as reported by the
Federal Reserve in Publication
H-15 (or its successor) for
such 3-month period; plus
[(II) 2.64 percent,
exceeds the rate determined under
section 427A(k)(4) or (l)(3), whichever
is applicable.
[(vii) Limitation on special
allowances for plus loans on or after
july 1, 2006.--In the case of PLUS
loans made under section 428B and first
disbursed on or after July 1, 2006, for
which the interest rate is determined
under section 427A(l)(2), a special
allowance shall not be paid for such
loan during any 12-month period
beginning on July 1 and ending on June
30 unless--
[(I) the average of the bond
equivalent rates of the quotes
of the 3-month commercial paper
(financial), as published by
the Board of Governors of the
Federal Reserve System in
Publication H-15 (or its
successor), for the last
calendar week ending on or
before such July 1; plus
[(II) 2.64 percent,
exceeds 9.0 percent.]
(v) Recapture of excess interest.--
(I) Excess credited.--With
respect to a loan on which the
applicable interest rate is
determined under section
427A(k) and for which the first
disbursement of principal is
made on or after July 1, 2006,
if the applicable interest rate
for any 3-month period exceeds
the special allowance support
level applicable to such loan
under this subparagraph for
such period, then an adjustment
shall be made by calculating
the excess interest in the
amount computed under subclause
(II) of this clause, and by
crediting the excess interest
to the Government not less
often than annually.
(II) Calculation of excess.--
The amount of any adjustment of
interest on a loan to be made
under this subsection for any
quarter shall be equal to--
(aa) the applicable
interest rate minus the
special allowance
support level
determined under this
subparagraph;
multiplied by
(bb) the average
daily principal balance
of the loan (not
including unearned
interest added to
principal) during such
calendar quarter;
divided by
(cc) four.
(III) Special allowance
support level.--For purposes of
this clause, the term ``special
allowance support level''
means, for any loan, a number
expressed as a percentage equal
to the sum of the rates
determined under subclauses (I)
and (III) of clause (i), and
applying any substitution rules
applicable to such loan under
clauses (ii), (iii), and (iv)
in determining such sum.
* * * * * * *
(4) Penalty for late payment.--(A) * * *
(B) Such daily interest [shall be computed at the
daily equivalent rate of the sum of the special
allowance rate computed pursuant to paragraph (2) and
the interest rate applicable to the loan] described in
subparagraph (A) shall be computed using the interest
rate described in section 3902(a) of title 31, United
States Code, and shall be paid for the later of (i) the
31st day after the receipt of such request for payment
from the holder, or (ii) the 31st day after the final
day of the period or periods covered by such request,
and shall be paid for each succeeding day until, and
including, the date on which the Secretary authorizes
payment.
* * * * * * *
(c) Origination Fees From Students.--
(1) Deduction from interest and special allowance
subsidies.--(A) Notwithstanding subsection (b), the
Secretary shall collect the amount the lender is
authorized to charge as an origination fee in
accordance with paragraph (2) of this subsection and
the amount the lender is authorized to collect as a
fixed rate offset charge in accordance with paragraph
(9) of this subsection--
(i) * * *
* * * * * * *
(B) If the Secretary collects the origination fee and
the fixed rate offset charge under this subsection
through the reduction of interest and special
allowance, and the total amount of interest and special
allowance payable under section 428(a)(3)(A) and
subsection (b) of this section, respectively, is less
than the amount the lender was authorized to charge
borrowers for origination fees and fixed rate offset
charges in that quarter, the Secretary shall deduct the
excess amount from the subsequent quarters' payments
until the total amount has been deducted.
[(2) Amount of origination fees.--]
(2) Amount of origination fees.--
(A) In general.--Subject to paragraph (6) of
this subsection, with respect to any loan
(including loans made under section 428H, but
excluding loans made under sections 428C and
439(o)) for which a completed note or other
written evidence of the loan was sent or
delivered to the borrower for signing on or
after 10 days after the date of enactment of
the Postsecondary Student Assistance Amendments
of 1981, each eligible lender under this part
is authorized to charge the borrower an
origination fee in an amount not to exceed 3.0
percent of the principal amount of the loan, to
be deducted proportionately from each
installment payment of the proceeds of the loan
prior to payment to the borrower. Except as
provided in paragraph (8), a lender that
charges an origination fee under this paragraph
shall assess the same fee to all student
borrowers.
(B) Subsequent reductions.--Subparagraph (A)
shall be applied to loans made under this part
(other than loans made under sections 428C and
439(o))--
(i) by substituting ``2.0 percent''
for ``3.0 percent'' with respect to
loans for which the first disbursement
of principal is made on or after July
1, 2006, and before July 1, 2007;
(ii) by substituting ``1.5 percent''
for ``3.0 percent'' with respect to
loans for which the first disbursement
of principal is made on or after July
1, 2007, and before July 1, 2008;
(iii) by substituting ``1.0 percent''
for ``3.0 percent'' with respect to
loans for which the first disbursement
of principal is made on or after July
1, 2008, and before July 1, 2009;
(iv) by substituting ``0.5 percent''
for ``3.0 percent'' with respect to
loans for which the first disbursement
of principal is made on or after July
1, 2009, and before July 1, 2010; and
(v) by substituting ``0.0 percent''
for ``3.0 percent'' with respect to
loans for which the first disbursement
of principal is made on or after July
1, 2010.
(3) Relation to applicable interest.--Such
origination fee and fixed rate offset charge shall not
be taken into account for purposes of determining
compliance with section 427A.
(4) Disclosure required.--The lender shall disclose
to the borrower the amount and method of calculating
the origination fee and fixed rate offset charge.
(5) Prohibition on department compelling origination
fee collections by lenders.--Nothing in this subsection
shall be construed to permit the Secretary to require
any lender that is making loans that are insured or
guaranteed under this part, but for which no amount
will be payable for interest under section 428(a)(3)(A)
or for special allowances under subsection (b) of this
section, to collect any origination fee or fixed rate
offset charge or to submit the sums collected as
origination fees or fixed rate offset charges to the
United States. The Secretary shall, not later than
January 1, 1987, return to any such lender any such
sums collected before the enactment of this paragraph,
together with interest thereon.
(6) [SLS and plus] Plus loans.--With respect to any
loans made under section [428A or] 428B on or after
October 1, 1992, each eligible lender under this part
shall charge the borrower an origination fee of 3.0
percent of the principal amount of the loan, to be
deducted proportionately from each installment payment
of the proceeds of the loan prior to payments to the
borrower.
(7) Distribution of origination fees.--All
origination fees and fixed rate offset charges
collected pursuant to this section on loans authorized
under section [428A or] 428B shall be paid to the
Secretary by the lender and deposited in the fund
authorized under section 431 of this part.
* * * * * * *
(9) Fixed rate offset charges for consolidation
loans.--For any loan under section 428C for which the
borrower elects to take a fixed rate under section
427A(k)(5)(C), the lender is authorized to collect a
fixed rate offset charge in an amount not to exceed 0.5
percent of the principal amount of the loan. Such
amount may be added to the principal amount of the loan
for repayment by the borrower.
SEC. 439. STUDENT LOAN MARKETING ASSOCIATION.
(a) * * *
* * * * * * *
(d) Authority of Association.--
(1) In general.--The Association is authorized,
subject to the provisions of this section--
(A) * * *
* * * * * * *
(E) to undertake any other activity which the
Board of Directors of the Association
determines to be in furtherance of the programs
of insured student loans authorized under this
part or will otherwise support the credit needs
of students, except that--
(i) * * *
* * * * * * *
(iii) not later than 30 days prior to
the initial implementation of a program
undertaken pursuant to this
subparagraph (E), the Association shall
advise the [Chairman and the Ranking
Member on the Committee on Labor and
Human Resources of the Senate and the
Chairman and the Ranking Member of the
Committee on Education and Labor of the
House of Representatives] chairpersons
and ranking minority members of the
authorizing committees in writing of
its plans to offer such program and
shall provide information relating to
the general terms and conditions of
such program.
The Association is further authorized to undertake any
activity with regard to student loans which are not
insured or guaranteed as provided for in this
subsection as it may undertake with regard to insured
or guaranteed student loans. Any warehousing advance
made on the security of such loans shall be subject to
the provisions of paragraph (3) of this subsection to
the same extent as a warehousing advance made on the
security of insured loans.
* * * * * * *
[(3) Perfection of security interests in student
loans.--Notwithstanding the provisions of any State law
to the contrary, including the Uniform Commercial Code
as in effect in any State, a security interest in
insured student loans created on behalf of the
Association or any eligible lender as defined in
section 435(a) may be perfected either through the
taking of possession of such loans or by the filing of
notice of such security interest in such loans in the
manner provided by such State law for perfection of
security interests in accounts.]
[(4)] (3) Form of securities.--Securities issued
pursuant to the offering of participations or pooled
interests under paragraph (1) of this subsection may be
in the form of debt obligations, or trust certificates
of beneficial ownership, or both. Student loans set
aside pursuant to the offering of participations or
pooled interests shall at all times be adequate to
ensure the timely principal and interest payments on
such securities.
[(5)] (4) Restrictions on facilities and housing
activities.--Not less than 75 percent of the aggregate
dollar amount of obligations bought, sold, held,
insured, underwritten, and otherwise supported in
accordance with the authority contained in paragraph
(1)(C) shall be obligations which are listed by a
nationally recognized statistical rating organization
at a rating below the second highest rating of such
organization.
* * * * * * *
(r) Safety and Soundness of Association.--
(1) * * *
* * * * * * *
(3) Monitoring of safety and soundness.--The
Secretary of the Treasury shall conduct such studies as
may be necessary to monitor the financial safety and
soundness of the Association. In the event that the
Secretary of the Treasury determines that the financial
safety and soundness of the Association is at risk, the
Secretary of the Treasury shall inform the [Chairman
and ranking minority member of the Committee on Labor
and Human Resources of the Senate, the Chairman and
ranking minority member of the Committee on Education
and Labor of the House of Representatives,]
chairpersons and ranking minority members of the
authorizing committees and the Secretary of Education
of such determination and identify any corrective
actions that should be taken to ensure the safety and
soundness of the Association.
* * * * * * *
(5) Capital restoration plan.--
(A) * * *
(B) Disapproval.--If the Secretary of the
Treasury does not approve a capital restoration
plan as provided in subparagraph (A), then not
later than the earlier of the date the
Secretary of the Treasury disapproves of such
plan by written notice to the Association or
the expiration of the 30-day consideration
period referred to in subparagraph (A) (as such
period may have been extended by mutual
agreement), the Secretary of the Treasury shall
submit the Association's capital restoration
plan, in the form most recently proposed to the
Secretary of the Treasury by the Association,
together with a report on the Secretary of the
Treasury's reasons for disapproval of such plan
and an alternative capital restoration plan, to
the [Chairman and ranking minority member of
the Senate Committee on Labor and Human
Resources and to the Chairman and ranking
minority member of the House Committee on
Education and Labor] chairpersons and ranking
minority members of the authorizing committees.
A copy of such submission simultaneously shall
be sent to the Association and the Secretary of
Education by the Secretary of the Treasury.
* * * * * * *
(6) Substantial capital ratio reduction.--
(A) * * *
(B) Disapproval.--If the Secretary of the
Treasury disapproves a capital restoration plan
or modified plan submitted pursuant to
subparagraph (A), then, not later than the
earlier of the date the Secretary of the
Treasury disapproves of such plan or modified
plan (by written notice to the Association) or
the expiration of the 30-day consideration
period described in subparagraph (A) (as such
period may have been extended by mutual
agreement), the Secretary of the Treasury shall
prepare and submit an alternative capital
restoration plan, together with a report on his
reasons for disapproval of the Association's
plan or modified plan, to the [Chairman and
ranking minority member of the Committee on
Labor and Human Resources of the Senate and to
the Chairman and ranking minority member of the
Committee on Education and Labor of the House
of Representatives] chairpersons and ranking
minority members of the authorizing committees.
A copy of such submission simultaneously shall
be sent to the Association and the Secretary of
Education by the Secretary of the Treasury. The
Association, within 5 days after receipt from
the Secretary of the Treasury of such
submission, shall submit to the Chairmen and
ranking minority members of such Committees,
and the Secretary of the Treasury, a written
response to such submission, setting out fully
the nature and extent of the Association's
agreement or disagreement with the Secretary of
the Treasury with respect to the disapproved
plan and the alternative plan of the Secretary
of the Treasury and any findings of the
Secretary of the Treasury.
* * * * * * *
(8) Critical capital standard.--(A) * * *
* * * * * * *
(C) Immediately upon a determination under
subparagraph (A) or (B) to implement a capital
restoration plan, the Secretary of the Treasury shall
submit the capital restoration plan to be implemented
to the [Chairman and ranking minority member of the
Committee on Labor and Human Resources of the Senate,
the Chairman and ranking minority member of the
Committee on Education and Labor of the House of
Representatives,] chairpersons and ranking minority
members of the authorizing committees and the Secretary
of Education.
* * * * * * *
(10) Review by secretary of education.--The Secretary
of Education shall review the Secretary of the
Treasury's submission required pursuant to paragraph
(5)(B), (6)(B), or (8) and shall submit a report within
30 days to the [Chairman and ranking minority member of
the Senate Committee on Labor and Human Resources and
to the Chairman and ranking minority member of the
House Committee on Education and Labor] chairpersons
and ranking minority members of the authorizing
committees--
(A) * * *
* * * * * * *
(s) Charter Sunset.--
(1) * * *
(2) Sunset plan.--
(A) Plan submission by the association.--Not
later than July 1, 2007, the Association shall
submit to the Secretary of the Treasury and to
the [Chairman and Ranking Member of the
Committee on Labor and Human Resources of the
Senate and the Chairman and Ranking Member of
the Committee on Economic and Educational
Opportunities of the House of Representatives]
chairpersons and ranking minority members of
the authorizing committees, a detailed plan for
the orderly winding up, by July 1, 2013, of
business activities conducted pursuant to the
charter set forth in this section. Such plan
shall--
(i) * * *
* * * * * * *
(B) Amendment of the plan by the
association.--The Association shall from time
to time amend such plan to reflect changed
circumstances, and submit such amendments to
the Secretary of the Treasury and to the
[Chairman and Ranking Minority Member of the
Committee on Labor and Human Resources of the
Senate and Chairman and Ranking Minority Member
of the Committee on Economic and Educational
Opportunities of the House of Representatives]
chairpersons and ranking minority members of
the authorizing committees. In no case may any
amendment extend the date for full
implementation of the plan beyond the
dissolution date provided in paragraph (3).
* * * * * * *
Part C--Federal Work-Study Programs
SEC. 441. PURPOSE; APPROPRIATIONS AUTHORIZED.
(a) * * *
(b) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this part, $1,000,000,000 for
fiscal year [1999] 2006 and such sums as may be necessary for
each of the [4] 5 succeeding fiscal years.
(c) Community Services.--For purposes of this part, the term
``community services'' means services which are identified by
an institution of higher education, through formal or informal
consultation with local nonprofit, governmental, and community-
based organizations, as designed to improve the quality of life
for community residents, particularly low-income individuals,
or to solve particular problems related to their needs,
including--
(1) such fields as health care, child care (including
child care services provided on campus [that are open
and accessible to the community]), literacy training,
education (including tutorial services), welfare,
social services, transportation, housing and
neighborhood improvement, public safety, crime
prevention and control, recreation, rural development,
and community improvement;
* * * * * * *
SEC. 442. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 441(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution for each succeeding fiscal year, an amount equal to
100 percent of the amount such institution received under
subsections (a) and (b) for fiscal year 1999 (as such
subsections were in effect with respect to allocations for such
fiscal year).
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 but is not a first or second time participant, an amount
equal to the greater of--
[(i) $5,000; or
[(ii) 90 percent of the amount received and used
under this part for the first year it participated in
the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 and is a first or second time participant, an amount equal
to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this part in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which--
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).
[(4)(A) Notwithstanding any other provision of this section,
the Secretary may allocate an amount equal to not more than 10
percent of the amount by which the amount appropriated in any
fiscal year to carry out this part exceeds $700,000,000 among
eligible institutions described in subparagraph (B).
[(B) In order to receive an allocation pursuant to
subparagraph (A) an institution shall be an eligible
institution from which 50 percent or more of the Pell Grant
recipients attending such eligible institution graduate or
transfer to a 4-year institution of higher education.]
(a) Allocation Based on Previous Allocation.--
(1) Base guarantee.--From the amount appropriated
pursuant to section 441(b) for each fiscal year after
fiscal year 2007, the Secretary shall, subject to
paragraph (2), first allocate to each eligible
institution an amount equal to the following percentage
of the amount such institution received under
subsection (a) of this section for fiscal year 2007 (as
such subsection was in effect with respect to
allocations for such fiscal year):
(A) 80 percent for fiscal years 2008 and
2009;
(B) 60 percent for fiscal years 2010 and
2011;
(C) 40 percent for fiscal years 2012 and
2013;
(D) 20 percent for fiscal years 2014 and
2015; and
(E) 0 percent for fiscal year 2016 and any
succeeding fiscal year.
(2) Ratable reductions for insufficient
appropriations.--
(A) Reduction of base guarantee.--If the
amount appropriated for any fiscal year is less
than the amount required to be allocated to all
institutions under this subsection, then the
amount of the allocation to each such
institution shall be ratably reduced.
(B) Additional appropriations allocation.--If
additional amounts are appropriated for any
such fiscal year, such reduced amounts shall be
increased on the same basis as they were
reduced (until the amount allocated equals the
amount required to be allocated under this
subsection).
(3) Additional allocations for certain
institutions.--
(A) Allocations permitted.--Notwithstanding
any other provision of this section, the
Secretary may allocate an amount equal to not
more than 10 percent of the amount by which the
amount appropriated in any fiscal year to carry
out this part exceeds $700,000,000 among
eligible institutions described in subparagraph
(B).
(B) Eligible institutions.--An otherwise
eligible institution may receive a portion of
the allocation described in subparagraph (A)
if--
(i) not less than 10 percent of the
students attending the institution
receive Federal Pell Grants; and
(ii)(I) in the case of an institution
that offers programs of at least 4
years in duration, if its graduation
rate for Federal Pell Grant recipients
attending the institution and
graduating within the period of time
equal to normal duration of the longest
undergraduate program offered by the
institution, as measured from the first
day of their enrollment, exceeds the
median rate for the class of
institution (as defined in section
131(f)(5)(C)); or
(II) in the case of an institution
that offers programs of at least 2, but
less than 4, years in duration, if its
rate for Federal Pell Grant recipients
attending the institution and
graduating or transferring to an
institution that offers programs of at
least 4 years in duration within the
period of time equal to the normal
duration of the program offered, as
measured from the first day of their
enrollment, exceeds the median rate for
the class of institution (as defined in
section 131(f)(5)(C)).
* * * * * * *
(c) Determination of Institution's Need.--(1) * * *
* * * * * * *
(4)(A) * * *
* * * * * * *
(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to [$450] $600.
* * * * * * *
SEC. 446. JOB LOCATION AND DEVELOPMENT PROGRAMS.
(a) Agreements Required.--(1) The Secretary is authorized to
enter into agreements with eligible institutions under which
such institution may use not more than [10 percent or $50,000]
15 percent or $75,000 of its allotment under section 442,
whichever is less, to establish or expand a program under which
such institution, separately or in combination with other
eligible institutions, locates and develops jobs, including
community service jobs, for currently enrolled students, except
that not less than one-third of such amount shall be
specifically allocated to locate and develop community service
jobs.
* * * * * * *
SEC. 448. WORK COLLEGES.
(a) Purpose.--The purpose of this section is to recognize,
encourage, and promote the use of comprehensive [work-learning]
work-learning-service programs as a valuable educational
approach when it is an integral part of the institution's
educational program and a part of a financial plan which
decreases reliance on grants and loans.
(b) Source and Use Funds.--
(1) Source of funds.--In addition to the sums
appropriated under subsection (f), funds allocated to
the institution under part C and part E of this title
may be transferred for use under this section to
provide flexibility in strengthening the self-help-
through-work element in financial aid packaging.
(2) Activities authorized.--From the sums
appropriated pursuant to subsection (f), and from the
funds available under paragraph (1), eligible
institutions may, following approval of an application
under subsection (c) by the Secretary--
(A) support the educational costs of
qualified students through self-help payments
or credits provided under the [work-learning]
work-learning-service program of the
institution within the limits of part F of this
title;
(B) promote the work-learning-service
experience as a tool of postsecondary
education, financial self-help and community
service-learning opportunities;
(C) carry out activities described in section
443 or 446;
(D) be used for the administration,
development and assessment of comprehensive
[work-learning] work-learning-service programs,
including--
(i) community-based [work-learning]
work-learning-service alternatives that
expand opportunities for community
service and career-related work; and
(ii) alternatives that develop sound
citizenship, encourage student
persistence, and make optimum use of
assistance under this part in education
and student development;
(E) coordinate and carry out joint projects
and activities to promote work service
learning; and
(F) carry out a comprehensive, longitudinal
study of student academic progress and academic
and career outcomes, relative to student self-
sufficiency in financing their higher
education, repayment of student loans,
continued community service, kind and quality
of service performed, and career choice and
community service selected after graduation.
(c) Application.--Each eligible institution may submit an
application for funds authorized by subsection (f) to use funds
under subsection (b)(1) at such time and in such manner as the
Secretary, by regulation, may reasonably require.
(d) Match Required.--Funds made available to work-colleges
pursuant to this section shall be matched on a dollar-for-
dollar basis from non-Federal sources.
(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
institution with a commitment to community
service;
(B) has operated a comprehensive [work-
learning] work-learning-service program for at
least 2 years;
[(C) requires all resident students who
reside on campus to participate in a
comprehensive work-learning program and the
provision of services as an integral part of
the institution's educational program and as
part of the institution's educational
philosophy; and]
(C) requires all resident 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 5 hours each week, or at
least 80 hours during each period of
enrollment, 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] 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
program'' means a student work/service program that is
an integral and stated part of the institution's
educational philosophy and program; requires
participation of all resident students for enrollment,
participation, and graduation; includes learning
objectives, evaluation and a record of work performance
as part of the student's college record; provides
programmatic leadership by college personnel at levels
comparable to traditional academic programs; recognizes
the educational role of work-learning supervisors; and
includes consequences for nonperformance or failure in
the work-learning program similar to the consequences
for failure in the regular academic program.]
(2) the term ``comprehensive student work-learning-
service program''--
(A) means a student work-learning-service
program that 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.
(f) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for fiscal
year [1999 and such sums as may be necessary for each of the 4
succeeding fiscal years] 2006 and such sums as may be necessary
for the 5 succeeding fiscal years.
PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
* * * * * * *
SEC. 455. TERMS AND CONDITIONS OF LOANS.
(a) In General.--
(1) Parallel terms, conditions, benefits, and
amounts.--Unless otherwise specified in this part,
loans made to borrowers under this part shall have the
same terms, conditions, and benefits, and be available
in the same amounts, as loans made to borrowers under
sections 428, 428B, 428C, and 428H of this title.
(2) Designation of loans.--Loans made to borrowers
under this part that, except as otherwise specified in
this part, have the same terms, conditions, and
benefits as loans made to borrowers under--
(A) section 428 shall be known as ``Federal
Direct Stafford Loans'';
(B) section 428B shall be known as ``Federal
Direct PLUS Loans''; [and]
(C) section 428C shall be known as ``Federal
Direct Consolidation Loans''; and
[(C)] (D) section 428H shall be known as
``Federal Direct Unsubsidized Stafford Loans''.
(b) Interest Rate.--
(1) * * *
* * * * * * *
(6) Interest rate provision for new loans on or after
october 1, 1998[, and before july 1, 2006].--
(A) Rates for fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made
on or after October 1, 1998[, and before July
1, 2006,] the applicable rate of interest
shall, during any 12-month period beginning on
July 1 and ending on June 30, be determined on
the preceding June 1 and be equal to--
(i) the bond equivalent rate of 91-
day Treasury bills auctioned at the
final auction held prior to such June
1; plus
(ii) 2.3 percent,
except that such rate shall not exceed 8.25
percent.
(B) In school and grace period rules.--
Notwithstanding the preceding paragraphs of
this subsection, with respect to any Federal
Direct Stafford Loan or Federal Direct
Unsubsidized Stafford Loan for which the first
disbursement is made on or after October 1,
1998[, and before July 1, 2006,] the applicable
rate of interest for interest which accrues--
(i) prior to the beginning of the
repayment period of the loan; or
(ii) during the period in which
principal need not be paid (whether or
not such principal is in fact paid) by
reason of a provision described in
section 428(b)(1)(M) or 427(a)(2)(C),
shall be determined under subparagraph (A) by
substituting ``1.7 percent'' for ``2.3
percent''.
(C) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to Federal Direct PLUS Loan for which
the first disbursement is made on or after
October 1, 1998[, and before July 1, 2006,] the
applicable rate of interest shall be determined
under subparagraph (A)--
(i) by substituting ``3.1 percent''
for ``2.3 percent''; and
(ii) by substituting ``9.0 percent''
for ``8.25 percent''.
(D) Consolidation loans before july 1,
2006.--Notwithstanding the preceding paragraphs
of this subsection, any Federal Direct
Consolidation loan for which the application is
received on or after February 1, 1999, and
before July 1, 2006, shall bear interest at an
annual rate on the unpaid principal balance of
the loan that is equal to the lesser of--
(i) * * *
* * * * * * *
(E) Consolidation loans on or after july 1,
2006.--
(i) Borrower election.--
Notwithstanding the preceding
paragraphs of this subsection, with
respect to any Federal Direct
Consolidation Loan for which the
application is received by an eligible
lender on or after July 1, 2006, the
applicable rate of interest shall, at
the election of the borrower at the
time of application for the loan, be
either at the rate determined under
clause (ii) or the rate determined
under clause (iii).
(ii) Variable rate.--Except as
provided in clause (iv), the rate
determined under this clause shall,
during any 12-month period beginning on
July 1 and ending on June 30, be
determined on the preceding June 1 and,
for such 12-month period, be equal to--
(I) the bond equivalent rate
of 91-day Treasury bills
auctioned at the final auction
held prior to such June 1; plus
(II) 2.3 percent,
except that such rate shall not exceed
8.25 percent.
(iii) Fixed rate.--Except as provided
in clause (iv), the rate determined
under this clause shall be determined
for the duration of the term of the
loan on the July 1 that is or precedes
the date on which the application is
received by an eligible lender, and
shall be, for such duration, equal to--
(I) the bond equivalent rate
of 91-day Treasury bills
auctioned at the final auction
held prior to the June 1
immediately preceding such July
1; plus
(II) 3.3 percent,
except that such rate shall not exceed
8.25 percent.
(iv) Consolidation of plus loans.--In
the case of any such Federal Direct
Consolidation Loan that is used to
repay loans each of which was made
under section 428B or was a Federal
Direct PLUS Loan (or both), the rates
determined under clauses (ii) and (iii)
shall be determined--
(I) by substituting ``3.1
percent'' for ``2.3 percent'';
(II) by substituting ``4.1
percent'' for ``3.3 percent'';
and
(III) by substituting ``9.0
percent'' for ``8.25 percent''.
[(E)] (F) Temporary rules for consolidation
loans.--Notwithstanding the preceding
paragraphs of this subsection, any Federal
Direct Consolidation loan for which the
application is received on or after October 1,
1998, and before February 1, 1999, shall bear
interest at an annual rate on the unpaid
principal balance of the loan that is equal
to--
(i) * * *
* * * * * * *
[(7) Interest rate provision for new loans on or
after july 1, 2006.--
[(A) Rates for fdsl and fdusl.--
Notwithstanding the preceding paragraphs of
this subsection, for Federal Direct Stafford
Loans and Federal Direct Unsubsidized Stafford
Loans for which the first disbursement is made
on or after July 1, 2006, the applicable rate
of interest shall be 6.8 percent on the unpaid
principal balance of the loan.
[(B) PLUS loans.--Notwithstanding the
preceding paragraphs of this subsection, with
respect to any Federal Direct PLUS loan for
which the first disbursement is made on or
after July 1, 2006, the applicable rate of
interest shall be 7.9 percent on the unpaid
principal balance of the loan.
[(C) Consolidation loans.--Notwithstanding
the preceding paragraphs of this subsection,
any Federal Direct Consolidation loan for which
the application is received on or after July 1,
2006, shall bear interest at an annual rate on
the unpaid principal balance of the loan that
is equal to the lesser of--
[(i) the weighted average of the
interest rates on the loans
consolidated, rounded to the nearest
higher one-eighth of one percent; or
[(ii) 8.25 percent.]
[(8)] (7) Repayment incentives.--
(A) * * *
(B) Accountability.--Prior to publishing
regulations proposing repayment incentives, the
Secretary shall ensure the cost neutrality of
such reductions. The Secretary shall not
prescribe such regulations in final form unless
an official report from the Director of the
Office of Management and Budget to the
Secretary and a comparable report from the
Director of the Congressional Budget Office to
the Congress each certify that any such
reductions will be completely cost neutral.
Such reports shall be transmitted to the
[Committee on Labor and Human Resources of the
Senate and the Committee on Education and the
Workforce of the House of Representatives]
authorizing committees not less than 60 days
prior to the publication of regulations
proposing such reductions.
[(9)] (8) Publication.--The Secretary shall determine
the applicable rates of interest under this subsection
after consultation with the Secretary of the Treasury
and shall publish such rate in the Federal Register as
soon as practicable after the date of determination.
[(c) Loan Fee.--The Secretary shall charge the borrower of a
loan made under this part an origination fee of 4.0 percent of
the principal amount of loan.]
(c) Loan Fee.--
(1) In general.--The Secretary shall charge the
borrower of a loan made under this part an origination
fee of 4.0 percent of the principal amount of loan.
(2) Subsequent reduction.--Paragraph (1) shall be
applied to loans made under this part, other than
consolidation loans and PLUS loans--
(A) by substituting ``not more or less than
3.0 percent'' for ``4.0 percent'' with respect
to loans for which the first disbursement of
principal is made on or after July 1, 2006, and
before July 1, 2007;
(B) by substituting ``not more or less than
2.5 percent'' for ``4.0 percent'' with respect
to loans for which the first disbursement of
principal is made on or after July 1, 2007, and
before July 1, 2008;
(C) by substituting ``not more or less than
2.0 percent'' for ``4.0 percent'' with respect
to loans for which the first disbursement of
principal is made on or after July 1, 2008, and
before July 1, 2009;
(D) by substituting ``not more or less than
1.5 percent'' for ``4.0 percent'' with respect
to loans for which the first disbursement of
principal is made on or after July 1, 2009, and
before July 1, 2010; and
(E) by substituting ``not more or less than
1.0 percent'' for ``4.0 percent'' with respect
to loans for which the first disbursement of
principal is made on or after July 1, 2010.
(3) Waivers and repayment incentives prohibited.--
Beginning with loans made on or after July 1, 2006, the
Secretary is prohibited--
(A) from waiving any amount of the loan fee
prescribed under this section as part of a
repayment incentive in section 455(b)(7); and
(B) from providing any repayment incentive
before the borrower enters repayment.
(4) Fixed rate offset charges for consolidation
loans.--For any Federal Direct Consolidation Loan for
which the borrower elects to take a fixed rate under
section 455(b)(6)(E)(iii), the Secretary shall collect
a fixed rate offset charge in an amount not to exceed
0.5 percent of the principal amount of the loan. Such
amount may be added to the principal amount of the loan
for repayment by the borrower. Such amount is not
subject to the requirements of paragraph (3) of this
subsection.
(d) Repayment Plans.--
(1) Design and selection.--Consistent with criteria
established by the Secretary, the Secretary shall offer
a borrower of a loan made under this part a variety of
plans for repayment of such loan, including principal
and interest on the loan. The borrower shall be
entitled to accelerate, without penalty, repayment on
the borrower's loans under this part. The borrower may
choose--
[(A) a standard repayment plan, with a fixed
annual repayment amount paid over a fixed
period of time, consistent with subsection
(a)(1) of this section;
[(B) an extended repayment plan, with a fixed
annual repayment amount paid over an extended
period of time, except that the borrower shall
annually repay a minimum amount determined by
the Secretary in accordance with section
428(b)(1)(L);
[(C) a graduated repayment plan, with annual
repayment amounts established at 2 or more
graduated levels and paid over a fixed or
extended period of time, except that the
borrower's scheduled payments shall not be less
than 50 percent, nor more than 150 percent, of
what the amortized payment on the amount owed
would be if the loan were repaid under the
standard repayment plan; and]
(A) a standard repayment plan, consistent
with subsection (a)(1) of this section and with
section 428(b)(9)(A)(i);
(B) a graduated repayment plan, consistent
with section 428(b)(9)(A)(ii);
(C) an extended repayment plan, consistent
with section 428(b)(9)(A)(v), except that the
borrower shall annually repay a minimum amount
determined by the Secretary in accordance with
section 428(b)(1)(L);
(D) a delayed repayment plan under which the
borrower makes scheduled payments for not more
than 2 years that are annually not less than
the amount of interest due or $600, whichever
is greater, and then makes payments in
accordance with subparagraph (A), (B), or (C);
and
[(D)] (E) an income contingent repayment
plan, with varying annual repayment amounts
based on the income of the borrower, paid over
an extended period of time prescribed by the
Secretary, not to exceed 25 years, except that
the plan described in this subparagraph shall
not be available to the borrower of a Federal
Direct PLUS loan.
* * * * * * *
(e) Income Contingent Repayment.--
(1) * * *
(2) Repayment based on adjusted gross income.--A
repayment schedule for a loan made under this part and
repaid pursuant to income contingent repayment shall be
based on the adjusted gross income (as defined in
section 62 of the Internal Revenue Code of 1986) of the
borrower or, if the borrower is married [and files a
Federal income tax return jointly with the borrower's
spouse], on the adjusted gross income of the borrower
and the borrower's spouse.
* * * * * * *
(f) Deferment.--
(1) * * *
(2) Eligibility.--A borrower of a loan made under
this part shall be eligible for a deferment during any
period--
(A) * * *
* * * * * * *
(C) not in excess of 3 years during which the
borrower--
(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; or
[(C)] (D) not in excess of 3 years during
which the Secretary determines, in accordance
with regulations prescribed under section
435(o), that the borrower has experienced or
will experience an economic hardship.
* * * * * * *
(g) Federal Direct Consolidation Loans.--A borrower of a loan
made under this part may consolidate such loan with the loans
described in section 428C(a)(4). [Loans made under this
subsection shall be known as ``Federal Direct Consolidation
Loans''.] To be eligible for a consolidation loan under this
part, a borrower must meet the eligibility criteria set forth
in section 428C(a)(3). The Secretary, upon application for such
a loan, shall comply with the requirements applicable to a
lender under section 428C(b)(1)(F).
* * * * * * *
SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.
(a) Administrative Expenses.--
(1) In general.--Each fiscal year there shall be
available to the Secretary, from funds not otherwise
appropriated, funds to be obligated for--
(A) * * *
* * * * * * *
not to exceed (from such funds not otherwise
appropriated) [$617,000,000 in fiscal year 1999,
$735,000,000 in fiscal year 2000, $770,000,000 in
fiscal year 2001, $780,000,000 in fiscal year 2002, and
$795,000,000 in fiscal year 2003] $820,000,000 in
fiscal year 2006, $833,000,000 in fiscal year 2007,
$847,000,000 in fiscal year 2008, $862,000,000 in
fiscal year 2009, and $878,000,000 in fiscal year 2010,
and $894,000,000 in fiscal year 2011.
* * * * * * *
(b) Calculation Basis.--Except as provided in subsection (c),
account maintenance fees payable to guaranty agencies under
paragraph (1)(B) [shall be calculated--
[(1) for fiscal years 1999 and 2000, on the basis of
0.12 percent of the original principal amount of
outstanding loans on which insurance was issued under
part B; and
[(2) for fiscal years 2001, 2002, and 2003, on the
basis of 0.10 percent of the original principal amount
of outstanding loans on which insurance was issued
under part B.] shall be calculated on the basis of 0.10
percent of the original principal amount of outstanding
loans on which insurance was issued under part B.
(c) Special Rules.--
(1) Fee cap.--The total amount of account maintenance
fees payable under this section--
[(A) for fiscal year 1999, shall not exceed
$177,000,000;
[(B) for fiscal year 2000, shall not exceed
$180,000,000;
[(C) for fiscal year 2001, shall not exceed
$170,000,000;
[(D) for fiscal year 2002, shall not exceed
$180,000,000; and
[(E) for fiscal year 2003, shall not exceed
$195,000,000.]
(A) for fiscal year 2006, shall not exceed
$220,000,000;
(B) for fiscal year 2007, shall not exceed
$233,000,000;
(C) for fiscal year 2008, shall not exceed
$247,000,000;
(D) for fiscal year 2009, shall not exceed
$262,000,000;
(E) for fiscal year 2010, shall not exceed
$278,000,000; and
(F) for fiscal year 2011, shall not exceed
$294,000,000.
* * * * * * *
SEC. 460. LOAN CANCELLATION FOR TEACHERS.
(a) * * *
(b) Program Authorized.--
(1) In general.--The Secretary shall carry out a
program of canceling the obligation to repay a
qualified loan amount in accordance with subsection (c)
for Federal Direct Stafford Loans and Federal Direct
Unsubsidized Stafford Loans made under this part for
any new borrower on or after October 1, 1998, who--
(A) has been employed as a full-time teacher
for 5 consecutive complete school years--
(i) * * *
(ii) if employed as an elementary
school or secondary school teacher, is
highly qualified as defined in section
9101 of the Elementary and Secondary
Education Act of 1965, or meets the
requirements of subsection (g)(3); and
* * * * * * *
(c) Qualified Loan Amounts.--
(1) * * *
* * * * * * *
(3) Additional amounts for teachers in mathematics,
science, or special education.--Notwithstanding the
amount specified in paragraph (1), the aggregate amount
that the Secretary shall cancel under this section
shall be not more than $17,500 in the case of--
(A) a secondary school teacher--
(i) * * *
(ii) whose qualifying employment for
purposes of such subsection is teaching
mathematics or science on a full-time
basis; [and]
(B) an elementary school or secondary school
teacher--
(i) * * *
* * * * * * *
(iii) who, as certified by the chief
administrative officer of the public or
non-profit private elementary school or
secondary school in which the borrower
is employed, is teaching children with
disabilities that correspond with the
borrower's special education training
and has demonstrated knowledge and
teaching skills in the content areas of
the elementary school or secondary
school curriculum that the borrower is
teaching[.]; and
(C) an elementary or secondary school teacher
who primarily teaches reading--
(i) who meets the requirements of
subsection (b);
(ii) who has obtained a separate
reading instruction credential from the
State in which the teacher is employed;
and
(iii) who is certified by the chief
administrative officer of the public or
nonprofit private elementary or
secondary school in which the borrower
is employed to teach reading--
(I) as being proficient in
teaching the essential
components of reading
instruction as defined in
section 1208 of the Elementary
and Secondary Education Act of
1965; and
(II) as having such
credential.
* * * * * * *
(g) Additional Eligibility Provisions.--
(1) * * *
(3) Private school teachers.--An individual who is
employed as a teacher in a private school and is exempt
from State certification requirements (unless otherwise
applicable under State law), may, in lieu of the
requirement of subsection (a)(1)(A)(ii), have such
employment treated as qualifying employment under this
section if such individual is permitted to and does
satisfy rigorous subject knowledge and skills tests by
taking competency tests in the applicable grade levels
and subject areas. For such purposes, the competency
tests taken by such a private school teacher must be
recognized by 5 or more States for the purpose of
fulfilling the highly qualified teacher requirements
under section 9101 of the Elementary and Secondary
Education Act of 1965, and the score achieved by such
teacher on each test must equal or exceed the average
passing score of those 5 States.
* * * * * * *
Part E--Federal Perkins Loans
SEC. 461. APPROPRIATIONS AUTHORIZED.
(a) * * *
(b) Authorization of Appropriations.--(1) For the purpose of
enabling the Secretary to make contributions to student loan
funds established under this part, there are authorized to be
appropriated $250,000,000 for fiscal year [1999] 2006 and such
sums as may be necessary for each of the [4] 5 succeeding
fiscal years.
(2) In addition to the funds authorized under paragraph (1),
there are hereby authorized to be appropriated such sums for
fiscal year [2003] 2012 and each of the 5 succeeding fiscal
years as may be necessary to enable students who have received
loans for academic years ending prior to October 1, [2003]
2012, to continue or complete courses of study.
* * * * * * *
SEC. 462. ALLOCATION OF FUNDS.
[(a) Allocation Based on Previous Allocation.--(1) From the
amount appropriated pursuant to section 461(b) for each fiscal
year, the Secretary shall first allocate to each eligible
institution an amount equal to--
[(A) 100 percent of the amount 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), multiplied by
[(B) the institution's default penalty, as determined
under subsection (e),
except that if the institution has a cohort default rate in
excess of the applicable maximum cohort default rate under
subsection (f), the institution may not receive an allocation
under this paragraph.
[(2)(A) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 but is not a first or second time participant, an amount
equal to the greater of--
[(i) $5,000; or
[(ii) 100 percent of the amount received and expended
under this part for the first year it participated in
the program.
[(B) From the amount so appropriated, the Secretary shall
next allocate to each eligible institution that began
participation in the program under this part after fiscal year
1999 and is a first or second time participant, an amount equal
to the greatest of--
[(i) $5,000;
[(ii) an amount equal to (I) 90 percent of the amount
received and used under this part in the second
preceding fiscal year by eligible institutions offering
comparable programs of instruction, divided by (II) the
number of students enrolled at such comparable
institutions in such fiscal year, multiplied by (III)
the number of students enrolled at the applicant
institution in such fiscal year; or
[(iii) 90 percent of the institution's allocation
under this part for the preceding fiscal year.
[(C) Notwithstanding subparagraphs (A) and (B) of this
paragraph, the Secretary shall allocate to each eligible
institution which--
[(i) was a first-time participant in the program in
fiscal year 2000 or any subsequent fiscal year, and
[(ii) received a larger amount under this subsection
in the second year of participation,
an amount equal to 90 percent of the amount it received under
this subsection in its second year of participation.
[(D) For any fiscal year after a fiscal year in which an
institution receives an allocation under subparagraph (A), (B),
or (C), the Secretary shall allocate to such institution an
amount equal to the product of--
[(i) the amount determined under subparagraph (A),
(B), or (C), multiplied by
[(ii) the institution's default penalty, as
determined under subsection (e),
except that if the institution has a cohort default rate in
excess of the applicable maximum cohort default rate under
subsection (f), the institution may not receive an allocation
under this paragraph.
[(3)(A) If the amount appropriated for any fiscal year is
less than the amount required to be allocated to all
institutions under paragraph (1) of this subsection, then the
amount of the allocation to each such institution shall be
ratably reduced.
[(B) If the amount appropriated for any fiscal year is more
than the amount required to be allocated to all institutions
under paragraph (1) but less than the amount required to be
allocated to all institutions under paragraph (2), then--
[(i) the Secretary shall allot the amount required to
be allocated to all institutions under paragraph (1),
and
[(ii) the amount of the allocation to each
institution under paragraph (2) shall be ratably
reduced.
[(C) If additional amounts are appropriated for any such
fiscal year, such reduced amounts shall be increased on the
same basis as they were reduced (until the amount allocated
equals the amount required to be allocated under paragraphs (1)
and (2) of this subsection).]
(a) Allocation Based on Previous Allocation.--
(1) Base guarantee.--From the amount appropriated
pursuant to section 461(b) for each fiscal year after
fiscal year 2007, the Secretary shall, subject to
paragraphs (2) and (3), first allocate to each eligible
institution an amount equal to--
(A) 100 percent of the amount such
institution received under subsection (a) of
this section for fiscal year 2007 (as such
subsection was in effect with respect to
allocations for such fiscal year), multiplied
by
(B) the institution's default penalty, as
determined under subsection (e), except that if
the institution has a cohort default rate in
excess of the applicable maximum cohort default
rate under subsection (f), the institution may
not receive an allocation under this paragraph.
(2) Phase out.--For each of the fiscal years after
fiscal year 2007, paragraph (1) shall be applied by
substituting for ``100 percent'':
(A) ``80 percent'' for fiscal years 2008 and
2009;
(B) ``60 percent'' for fiscal years 2010 and
2011;
(C) ``40 percent'' for fiscal years 2012 and
2013;
(D) ``20 percent'' for fiscal years 2014 and
2015; and
(E) ``0 percent'' for fiscal year 2016 and
any succeeding fiscal year.
(3) Ratable reductions for insufficient
appropriations.--
(A) Reduction of base guarantee.--If the
amount appropriated for any fiscal year is less
than the amount required to be allocated to all
institutions under this subsection, then the
amount of the allocation to each such
institution shall be ratably reduced.
(B) Additional appropriations allocation.--If
additional amounts are appropriated for any
such fiscal year, such reduced amounts shall be
increased on the same basis as they were
reduced (until the amount allocated equals the
amount required to be allocated under this
subsection).
* * * * * * *
(c) Determination of Institution's Self-Help Need.--(1) * * *
* * * * * * *
(4)(A) * * *
* * * * * * *
(D) The allowance for books and supplies described in
subparagraph (A)(iii) is equal to [$450] $600.
* * * * * * *
(g) Definition of Cohort Default Rate.--
(1)(A) * * *
* * * * * * *
(E) In determining the number of students who default
before the end of such award year, the institution, in
calculating the cohort default rate, shall exclude--
(i) any loan on which the borrower has, after
the time periods specified in paragraph (2)--
(I) voluntarily made 6 consecutive
monthly payments;
* * * * * * *
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
(a) Contents of Agreements.--An agreement with any
institution of higher education for the payment of Federal
capital contributions under this part shall--
(1) * * *
* * * * * * *
(4) provide that where a note or written agreement
evidencing a loan has been in default despite due
diligence on the part of the institution in attempting
collection thereon--
(A) if the institution has knowingly failed
to maintain an acceptable collection record
with respect to such loan, as determined by the
Secretary in accordance with criteria
established by regulation, the Secretary [may]
shall--
(i) * * *
* * * * * * *
SEC. 464. TERMS OF LOANS.
(a) Terms and Conditions.--(1) * * *
(2)(A) Except as provided in paragraph (4), the total of
loans made to a student in any academic year or its equivalent
by an institution of higher education from a loan fund
established pursuant to an agreement under this part shall not
exceed--
(i) [$4,000] $5,500, in the case of a student who has
not successfully completed a program of undergraduate
education; or
(ii) [$6,000] $8,000, in the case of a graduate or
professional student (as defined in regulations issued
by the Secretary).
(B) Except as provided in paragraph (4), the aggregate unpaid
principal amount for all loans made to a student by
institutions of higher education from loan funds established
pursuant to agreements under this part may not exceed--
(i) [$40,000] $60,000, in the case of any graduate or
professional student (as defined by regulations issued
by the Secretary, and including any loans from such
funds made to such person before such person became a
graduate or professional student);
(ii) [$20,000] $27,500, in the case of a student who
has successfully completed 2 years of a program of
education leading to a bachelor's degree but who has
not completed the work necessary for such a degree
(determined under regulations issued by the Secretary),
and including any loans from such funds made to such
person before such person became such a student; and
(iii) [$8,000] $11,000, in the case of any other
student.
* * * * * * *
(c) Contents of Loan Agreement.--(1) Any agreement between an
institution and a student for a loan from a student loan fund
assisted under this part--
(A) * * *
* * * * * * *
(D) shall provide that the loan shall bear interest,
on the unpaid balance of the loan, at the rate of 5
percent per year in the case of any loan made on or
after October 1, 1981, except that no interest shall
accrue [(I)] (i) prior to the beginning date of
repayment determined under paragraph (2)(A)(i), or
[(II)] (ii) during any period in which repayment is
suspended by reason of paragraph (2);
* * * * * * *
(2)(A) No repayment of principal of, or interest on, any loan
from a student loan fund assisted under this part shall be
required during any period--
(i) * * *
* * * * * * *
(iii) not in excess of 3 years during which the
borrower--
(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;
[(iii)] (iv) not in excess of 3 years for any reason
which the lender determines, in accordance with
regulations prescribed by the Secretary under section
435(o), has caused or will cause the borrower to have
an economic hardship; or
[(iv)] (v) during which the borrower is engaged in
service described in section 465(a)(2);
and provides that any such period shall not be included in
determining the 10-year period described in subparagraph (A) of
paragraph (1).
* * * * * * *
(e) Forbearance.--The Secretary shall ensure that[, upon
written request,] an institution of higher education shall
grant a borrower forbearance of principal and interest or
principal only, renewable at 12-month intervals for a period
not to exceed 3 years, on such terms as are otherwise
consistent with the regulations issued by the Secretary and
agreed upon in writing by the parties to the loan, if--
(1) * * *
* * * * * * *
(f) Special Repayment Rule Authority.--(1) * * *
[(2) No compromise repayment of a defaulted loan as
authorized by paragraph (1) may be made unless the student
borrower pays--
[(A) 90 percent of the loan under this part;
[(B) the interest due on such loan; and
[(C) any collection fees due on such loan;
in a lump sum payment.]
(2) No compromise repayment of a defaulted loan as authorized
by paragraph (1) may be made unless agreed to by the Secretary.
* * * * * * *
(h) Rehabilitation of Loans.--
(1) Rehabilitation.--
(A) In general.--If the borrower of a loan
made under this part who has defaulted on the
loan makes [12 ontime] 9 on-time, consecutive,
monthly payments of amounts owed on the loan,
as determined by the institution, or by the
Secretary in the case of a loan held by the
Secretary, the loan shall be considered
rehabilitated, and the institution that made
that loan (or the Secretary, in the case of a
loan held by the Secretary) shall request that
any credit bureau organization or credit
reporting agency to which the default was
reported remove the default from the borrower's
credit history.
* * * * * * *
SEC. 465. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.
(a) Cancellation of Percentage of Debt Based on Years of
Qualifying Service.--(1) * * *
(2) Loans shall be canceled under paragraph (1) for service--
(A) as a full-time teacher for service in an academic
year in a public or other nonprofit private elementary
or secondary school which is in the school district of
a local educational agency which is eligible in such
year for assistance pursuant to title I of the
Elementary and Secondary Education Act of 1965, and
which for the purpose of this paragraph and for that
year has been 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 counted under [section 111(c)] section
1113(a)(5) of the Elementary and Secondary Education
Act of 1965 exceeds 30 percent of the total enrollment
of that school;
* * * * * * *
(3)(A) The percent of a loan which shall be canceled under
paragraph (1) of this subsection is--
(i) in the case of service described in subparagraph
(A), (C), (D), (F), (G), (H), or (I) of paragraph (2),
at the rate of 15 percent for the first or second year
of such service, 20 percent for the third or fourth
year of such service, and 30 percent for the fifth year
of such service;
(ii) in the case of service described in subparagraph
(B) of paragraph (2), at the rate of 15 percent for
each year of such service; or
[(iii) in the case of service described in
subparagraph (D) of paragraph (2), not to exceed a
total of 50 percent of such loan at the rate of 12\1/2\
percent for each year of qualifying service; or]
[(iv)] (iii) in the case of service described in
subparagraph (E) of paragraph (2) at the rate of 15
percent for the first or second year of such service
and 20 percent for the third or fourth year of such
service.
* * * * * * *
SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
(a) In General.--After September 30, [2003] 2011, and not
later than March 31, [2004] 2012, there shall be a capital
distribution of the balance of the student loan fund
established under this part by each institution of higher
education as follows:
(1) The Secretary shall first be paid an amount which
bears the same ratio to the balance in such fund at the
close of September 30, [2003] 2011, as the total amount
of the Federal capital contributions to such fund by
the Secretary under this part bears to the sum of such
Federal contributions and the institution's capital
contributions to such fund.
(2) The remainder of such balance shall be paid to
the institution.
(b) Distribution of Late Collections.--After March 31, 2012,
each institution with which the Secretary has made an agreement
under this part, shall pay to the Secretary the same
proportionate share of amounts received by this institution
after September 30, 2003, in payment of principal and interest
on student loans made from the student loan fund established
pursuant to such agreement (which amount shall be determined
after deduction of any costs of litigation incurred in
collection of the principal or interest on loans from the fund
and not already reimbursed from the fund or from such payments
of principal or interest), as was determined for the Secretary
under subsection (a).
(c) Distribution of Excess Capital.--(1) Upon a finding by
the institution or the Secretary prior to October 1, [2004]
2012, that the liquid assets of a student loan fund established
pursuant to an agreement under this part exceed the amount
required for loans or otherwise in the foreseeable future, and
upon notice to such institution or to the Secretary, as the
case may be, there shall be, subject to such limitations as may
be included in regulations of the Secretary or in such
agreement, a capital distribution from such fund. Such capital
distribution shall be made as follows:
(A) The Secretary shall first be paid an amount which
bears the same ratio to the total to be distributed as
the Federal capital contributions by the Secretary to
the student loan fund prior to such distribution bear
to the sum of such Federal capital contributions and
the capital contributions to the fund made by the
institution.
(B) The remainder of the capital distribution shall
be paid to the institution.
(2) No finding that the liquid assets of a student loan fund
established under this part exceed the amount required under
paragraph (1) may be made prior to a date which is 2 years
after the date on which the institution of higher education
received the funds from such institution's allocation under
section 462.
SEC. 467. COLLECTION OF DEFAULTED LOANS: PERKINS LOAN REVOLVING FUND.
(a) * * *
(b) Collection of Referred, Transferred, or Assigned Loans.--
The Secretary shall continue to attempt to collect any loan
referred, transferred, or assigned under paragraph [(5)(A),
(5)(B)(i), or (6)] (4)(A), (4)(B), or (5) of section 463(a)
until all appropriate collection efforts, as determined by the
Secretary, have been expended.
* * * * * * *
SEC. 469. DEFINITIONS.
(a) * * *
* * * * * * *
(c) Infants, Toddlers, Children, and Youth With
Disabilities.--For purposes of this part, the term ``infants,
toddlers, children, and youth with disabilities'' means
children with disabilities and infants and toddlers with
disabilities as defined in [sections 602 and 632] sections
602(3) and 632(5), respectively, of the Individuals with
Disabilities Education Act, and the term ``[qualified
professional provider of early intervention services] early
intervention services'' has the meaning specified in [section
672(2)] section 632(4) of such Act.
* * * * * * *
PART F--NEED ANALYSIS
* * * * * * *
SEC. 475. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) * * *
* * * * * * *
(g) Student Contribution From Available Income.--
(1) * * *
(2) Adjustment to student income.--The adjustment to
student income is equal to the sum of--
(A) * * *
* * * * * * *
(D) an income protection allowance of
[$2,200] $3,000 (or a successor amount
prescribed by the Secretary under section 478);
* * * * * * *
SEC. 478. REGULATIONS; UPDATED TABLES.
(a) * * *
* * * * * * *
(h) Employment Expense Allowance.--For each award year after
award year 1993-1994, the Secretary shall publish in the
Federal Register a revised table of employment expense
allowances for the purpose of sections 475(c)(5), 476(b)(4),
and 477(b)(5). Such revised table shall be developed by
increasing the dollar amount specified in sections
475(c)(5)(A), 475(c)(5)(B), 476(b)(4)(A), [476(b)(4)(B),]
477(b)(5)(A), and 477(b)(5)(B) to reflect increases in the
amount and percent of the Bureau of Labor Statistics budget of
the marginal costs for [meals away from home, apparel and
upkeep, transportation, and housekeeping services] food away
from home, apparel, transportation, and household furnishings
and operations for a two-worker versus one-worker family.
SEC. 479. SIMPLIFIED NEEDS TESTS.
(a) * * *
(b) Simplified Needs Test.--
(1) Eligibility.--An applicant is eligible to file a
simplified form containing the elements required by
paragraph (2) if--
(A) in the case of an applicant who is a
dependent student--
[(i) the student's parents file or
are eligible to file a form described
in paragraph (3) or certify that they
are not required to file an income tax
return and the student files or is
eligible to file such a form or
certifies that the student is not
required to file an income tax return;
and]
(i) the student's parents file, or
are eligible to file, a form described
in paragraph (3) or certify that they
are not required to file an income tax
return, and the student files, or is
eligible to file, such a form or
certifies that the student is not
required to file an income tax return,
or the student's parents, or the
student, received benefits at some time
during the previous 12-month period
under a means-tested Federal benefit
program as defined under subsection
(d); and
* * * * * * *
(B) in the case of an applicant who is an
independent student--
[(i) the student (and the student's
spouse, if any) files or is eligible to
file a form described in paragraph (3)
or certifies that the student (and the
student's spouse, if any) is not
required to file an income tax return;
and]
(i) the student (and the student's
spouse, if any) files, or is eligible
to file, a form described in paragraph
(3) or certifies that the student (and
the student's spouse, if any) is not
required to file an income tax return,
or the student (and the student's
spouse, if any) received benefits at
some time during the previous 12-month
period under a means-tested Federal
benefit program as defined under
subsection (d); and
* * * * * * *
(3) Qualifying forms.--[A student or family files a
form described in this subsection, or subsection (c),
as the case may be, if the student or family,
respectively, files] In the case of an independent
student, the student, or in the case of a dependent
student, the parent, files a form described in this
subsection, or subsection (c), as the case may be, if
the student or parent, as appropriate, files--
(A) * * *
* * * * * * *
(c) Zero Expected Family Contribution.--The Secretary shall
consider an applicant to have an expected family contribution
equal to zero if--
(1) in the case of a dependent student--
[(A) the student's parents file, or are
eligible to file, a form described in
subsection (b)(3), or certify that the parents
are not required to file an income tax return
and the student files, or is eligible to file,
such a form, or certifies that the student is
not required to file an income tax return; and]
(A) the student's parents file, or are
eligible to file, a form described in
subsection (b)(3) or certify that they are not
required to file an income tax return, and the
student files, or is eligible to file, such a
form or certifies that the student is not
required to file an income tax return, or the
student's parents, or the student, received
benefits at some time during the previous 12-
month period under a means-tested Federal
benefit program as defined in subsection (d);
and
* * * * * * *
(2) in the case of an independent student with
dependents other than a spouse--
[(A) the student (and the student's spouse,
if any) files, or is eligible to file, a form
described in subsection (b)(3), or certifies
that the student (and the student's spouse, if
any) is not required to file an income tax
return; and]
(A) the student (and the student's spouse, if
any) files, or is eligible to file, a form
described in subsection (b)(3) or certifies
that the student (and the student's spouse, if
any) is not required to file an income tax
return, or the student (and the student's
spouse, if any) received benefits at some time
during the previous 12-month period under a
means-tested Federal benefit program as defined
in subsection (d); and
* * * * * * *
(d) Definition of Means-Tested Federal Benefit Program.--For
the purposes of this section, the term ``means-tested Federal
benefit program'' means a mandatory spending program of the
Federal Government, other than a program under this title, in
which eligibility for the program's benefits, or the amount of
such benefits, or both, are determined on the basis of income
or resources of the individual or family seeking the benefit,
and may include such programs as the supplemental security
income program under title XVI of the Social Security Act, the
food stamp program under the Food Stamp Act of 1977, the free
and reduced price school lunch program established under the
Richard B. Russell National School Lunch Act, the temporary
assistance to needy families program established under part A
of title IV of the Social Security Act, and the women, infants
and children program established under Section 17 of the Child
Nutrition Act of 1966, and other programs identified by the
Secretary.
(e) Reporting Requirements.--The Secretary shall regularly
evaluate the impact of the eligibility guidelines in
subsections (b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A) and (c)(2)(A)
of this section. In particular, the Secretary shall evaluate
whether, under the definition of means-tested Federal benefit
programs in subsection (d), the Simplified Needs Test continues
to be targeted to the maximum number of low- and moderate-
income students.
SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
[(a) In General.--]
(a) Authority To Make Adjustments.--
(1) Adjustments for special circumstances.--Nothing
in this part shall be interpreted as limiting the
authority of the financial aid administrator, on the
basis of adequate documentation, to make adjustments on
a case-by-case basis to the cost of attendance or the
values of the data items required to calculate the
expected student or parent contribution (or both) to
allow for treatment of an individual eligible applicant
with special circumstances. However, this authority
shall not be construed to permit aid administrators to
deviate from the contributions expected in the absence
of special circumstances.
(2) Special circumstances defined.--Special
circumstances may include tuition expenses at an
elementary or secondary school, medical or dental
expenses not covered by insurance, unusually high child
care costs, recent unemployment of a family member, the
number of parents enrolled at least half-time in a
degree, certificate, or other program leading to a
recognized educational credential at an institution
with a program participation agreement under section
487, a student's status as a ward of the court at any
time prior to attaining 18 years of age, a student's
status as an individual who was adopted at or after age
13, a student's status as a homeless or unaccompanied
youth (as defined in section 725 of the McKinney-Vento
Homeless Assistance Act), or other changes in a
family's income, a family's assets, or a student's
status. Special circumstances shall be conditions that
differentiate an individual student from a class of
students rather than conditions that exist across a
class of students.
(3) Documentation and use of supplementary
information.--Adequate documentation for such
adjustments shall substantiate such special
circumstances of individual students. In addition,
nothing in this title shall be interpreted as limiting
the authority of the student financial aid
administrator in such cases 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.
(4) Fees for supplementary information prohibited.--
No student or parent shall be charged a fee for
collecting, processing, or delivering such
supplementary information.
* * * * * * *
SEC. 480. DEFINITIONS.
As used in this part:
(a) * * *
* * * * * * *
(d) Independent Student.--The term ``independent'', when used
with respect to a student, means any individual who--
(1) * * *
[(2) is an orphan or ward of the court or was a ward
of the court until the individual reached the age of
18;]
(2) is an orphan, in foster care, or a ward of the
court, or was in foster care or a ward of the court
until the individual reached the age of 18;
(3) is a veteran of the Armed Forces of the United
States (as defined in subsection (c)(1)) or is
currently serving on active duty in the Armed Forces
for other than training purposes;
* * * * * * *
(e) Excludable Income.--The term ``excludable income''
means--
(1) * * *
* * * * * * *
(3) child support payments made by the student or
parent; [and]
(4) payments made and services provided under part E
of title IV of the Social Security Act[.]; and
(5) any part of any distribution from a qualified
tuition program established under section 529 of the
Internal Revenue Code of 1986 that is not includable in
gross income under such section 529.
(f) Assets.--(1) The term ``assets'' means cash on hand,
including the amount in checking and savings accounts, time
deposits, money market funds, trusts, stocks, bonds, other
securities, mutual funds, tax shelters, qualified tuition
programs established under section 529 of the Internal Revenue
Code of 1986 (26 U.S.C. 529), except as provided in paragraph
(2), and the net value of real estate, income producing
property, and business and farm assets.
(2) A qualified tuition program shall not be considered an
asset of a dependent student under section 475 of this part.
The value of a qualified tuition program for purposes of
determining the assets of parents or independent students shall
be--
(A) the refund value of any tuition credits or
certificates purchased under section 529 of the
Internal Revenue Code of 1986 (26 U.S.C. 529) on behalf
of a beneficiary; or
(B) the current balance of any account which is
established under such section for the purpose of
meeting the qualified higher education expenses of the
designated beneficiary of the account.
[(2)] (3) With respect to determinations of need under this
title, other than for subpart 4 of part A, the term ``assets''
shall not include the net value of--
(A) the family's principal place of residence; [or]
(B) a family farm on which the family resides[.]; or
(C) a small business with not more than 100 full-time
or full-time equivalent employees (or any part of such
a small business) that is owned and controlled by the
family.
* * * * * * *
(j) Other Financial Assistance[; Tuition Prepayment Plans].--
(1) For purposes of determining a student's eligibility for
funds under this title, estimated financial assistance not
received under this title shall include all scholarships,
grants, loans, or other assistance known to the institution at
the time the determination of the student's need is made,
including veterans' education benefits as defined in subsection
(c), and national service educational awards or post-service
benefits under title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.).
[(2)(A) Except as provided in subparagraph (B), for purposes
of determining a student's eligibility for funds under this
title, tuition prepayment plans shall reduce the cost of
attendance (as determined under section 472) by the amount of
the prepayment, and shall not be considered estimated financial
assistance.
[(B) If the institutional expense covered by the prepayment
must be part of the student's cost of attendance for accounting
purposes, the prepayment shall be considered estimated
financial assistance.]
[(3)] (2) Notwithstanding paragraph (1), a tax credit taken
under section 25A of the Internal Revenue Code of 1986, or a
distribution that is not includable in gross income under
section 529 of such Code, shall not be treated as estimated
financial assistance for purposes of section 471(3).
(3) Notwithstanding paragraph (1) and section 472, assistance
not received under this title may be excluded from both
estimated financial assistance and cost of attendance, if that
assistance is designated by the State providing that assistance
to offset a specific component of the cost of attendance. If
that assistance is excluded from either estimated financial
assistance or cost of attendance, it shall be excluded from
both.
* * * * * * *
Part G--General Provisions Relating to Student Assistance Programs
SEC. 481. DEFINITIONS.
(a) Academic and Award Year.--(1) * * *
[(2) For the purpose of any program under this title, the
term ``academic year'' shall require a minimum of 30 weeks of
instructional time, and, with respect to an undergraduate
course of study, shall require that during such minimum period
of instructional time a full-time student is expected to
complete at least 24 semester or trimester hours or 36 quarter
hours at an institution that measures program length in credit
hours, or at least 900 clock hours at an institution that
measures program length in clock hours. The Secretary may
reduce such minimum of 30 weeks to not less than 26 weeks for
good cause, as determined by the Secretary on a case-by-case
basis, in the case of an institution of higher education that
provides a 2-year or 4-year program of instruction for which
the institution awards an associate or baccalaureate degree.]
(2)(A) For the purpose of any program under this title, the
term ``academic year'' shall--
(i) require a minimum of 30 weeks of instructional
time for a course of study that measures its program
length in credit hours; or
(ii) require a minimum of 26 weeks of instructional
time for a course of study that measures its program
length in clock hours; and
(iii) require an undergraduate course of study to
contain an amount of instructional time whereby a full-
time student is expected to complete at least--
(I) 24 semester or trimester hours or 36
quarter credit hours in a course of study that
measures its program length in credit hours; or
(II) 900 clock hours in a course of study
that measures its program length in clock
hours.
(B) The Secretary may reduce such minimum of 30 weeks to not
less than 26 weeks for good cause, as determined by the
Secretary on a case-by-case basis, in the case of an
institution of higher education that provides a 2-year or 4-
year program of instruction for which the institution awards an
associate or baccalaureate degree.
(b) Eligible Program.--(1) * * *
* * * * * * *
(3) For purposes of this title, an eligible program includes
an instructional program that utilizes direct assessment of
student learning, or recognizes the direct assessment of
student learning, in lieu of credit hours or clock hours as the
measure of student learning. In the case of a program being
determined eligible for the first time under this paragraph,
such determination shall be made by the Secretary before such
program is considered to be eligible. The Secretary shall
provide an annual report to Congress identifying the programs
made eligible under this paragraph.
(4) An otherwise eligible program that is offered in whole or
in part through telecommunications is eligible for the purposes
of this title if the program is offered by an institution,
other than a foreign institution, that has been evaluated and
determined (before or after the date of enactment of this
paragraph) to have the capability to effectively deliver
distance education programs by an accrediting agency or
association that--
(A) is recognized by the Secretary under
subpart 2 of Part H; and
(B) has evaluation of distance education
programs within the scope of its recognition,
as described in section 496(n)(3).
* * * * * * *
(d) Definitions for Military Deferments.--For purposes of
parts B, D, and E of this title:
(1) Active duty.--The term ``active duty'' has the
meaning given such term in section 101(d)(1) of title
10, United States Code, except that such term does not
include active duty for training or attendance at a
service school.
(2) Military operation.--The term ``military
operation'' means a contingency operation as such term
is defined in section 101(a)(13) of title 10, United
States Code.
(3) National emergency.--The term ``national
emergency'' means the national emergency by reason of
certain terrorist attacks declared by the President on
September 14, 2001, or subsequent national emergencies
declared by the President by reason of terrorist
attacks.
(4) Serving on active duty.--The term ``serving on
active duty during a war or other military operation or
national emergency'' means service by an individual who
is--
(A) a Reserve of an Armed Force ordered to
active duty under section 12301(a), 12301(g),
12302, 12304, or 12306 of title 10, United
States Code, or any retired member of an Armed
Force ordered to active duty under section 688
of such title, for service in connection with a
war or other military operation or national
emergency, regardless of the location at which
such active duty service is performed; and
(B) any other member of an Armed Force on
active duty in connection with such emergency
or subsequent actions or conditions who has
been assigned to a duty station at a location
other than the location at which such member is
normally assigned.
(5) Qualifying national guard duty.--The term
``qualifying National Guard duty during a war or other
military operation or national emergency'' means
service as a member of the National Guard on full-time
National Guard duty (as defined in section 101(d)(5) of
title 10, United States Code) under a call to active
service authorized by the President or the Secretary of
Defense for a period of more than 30 consecutive days
under section 502(f) of title 32, United States Code,
in connection with a war, other military operation, or
a national emergency declared by the President and
supported by Federal funds.
SEC. 482. MASTER CALENDAR.
(a) Secretary Required To Comply With Schedule.--To assure
adequate notification and timely delivery of student aid funds
under this title, the Secretary shall adhere to the following
calendar dates in the year preceding the award year:
(1) Development and distribution of Federal and
multiple data entry forms--
(A) * * *
[(B) by March 1: proposed modifications and
updates pursuant to section 478 published in
the Federal Register;]
(B) by March 1: proposed modifications,
updates, and notices pursuant to sections 478,
479(c)(2)(C), and 483(a)(6) published in the
Federal Register;
* * * * * * *
(d) Notice to Congress.--The Secretary shall notify the
[Committee on Labor and Human Resources of the Senate and the
Committee on Education and Labor of the House of
Representatives] authorizing committees when a deadline
included in the calendar described in subsection (a) is not
met. Nothing in this section shall be interpreted to penalize
institutions or deny them the specified times allotted to
enable them to return information to the Secretary based on the
failure of the Secretary to adhere to the dates specified in
this section.
SEC. 483. FORMS AND REGULATIONS.
(a) Common Financial Aid Form Development and Processing.--
[(1) Single form required.--The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance,
shall produce, distribute, and process free of charge a
common financial reporting form to be used to determine
the need and eligibility of a student for financial
assistance under parts A through E of this title (other
than under subpart 4 of part A). The Secretary shall
include on the form developed under this subsection
such data items as the Secretary determines are
appropriate for inclusion. Such items shall be selected
in consultation with States to assist in the awarding
of State financial assistance. In no case shall the
number of such data items be less than the number
included on the form on the date of enactment of the
Higher Education Amendments of 1998. Such form shall
satisfy the requirements of section 401(d) of this
title.
[(2) Charges to students and parents for use of form
prohibited.--The common financial reporting form
prescribed by the Secretary under paragraph (1) shall
be produced, distributed, and processed by the
Secretary and no parent or student shall be charged a
fee for the collection, processing, or delivery of
financial aid through the use of such form. The need
and eligibility of a student for financial assistance
under parts A through E of this title (other than under
subpart 4 of part A) may only be determined by using
the form developed by the Secretary pursuant to
paragraph (1) of this subsection. No student may
receive assistance under parts A through E of this
title (other than under subpart 4 of part A), except by
use of the form developed by the Secretary pursuant to
this section. No data collected on a form for which a
fee is charged shall be used to complete the form
prescribed under paragraph (1).]
(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). These 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'' .
(2) Early estimates.--
(A) In general.--The Secretary shall permit
applicants to complete such forms as described
in this subsection in the 4 years prior to
enrollment in order to obtain a non-binding
estimate of the family contribution, as defined
in section 473. The estimate shall clearly and
conspicuously indicate that it is only an
estimate of family contribution, and may not
reflect the actual family contribution of the
applicant that shall be used to determine the
grant, loan, or work assistance that the
applicant may receive under this title when
enrolled in a program of postsecondary
education. Such applicants shall be permitted
to update information submitted on forms
described in this subsection using the process
required under paragraph (5)(A).
(B) Evaluation.--Two years after the early
estimates are implemented under this paragraph
and from data gathered from the early
estimates, the Secretary shall evaluate the
differences between initial, non-binding early
estimates and the final financial aid award
made available under this title.
(C) Report.--The Secretary shall provide a
report to the authorizing committees on the
results of the evaluation.
(3) Paper format.--
(A) In general.--The Secretary shall produce,
distribute, and process common forms in paper
format to meet the requirements of paragraph
(1). The Secretary shall develop a common paper
form for applicants who do not meet the
requirements of subparagraph (B).
(B) Ez fafsa.--
(i) In general.--The Secretary shall
develop and use a simplified paper
application form, to be known as the
``EZ FAFSA'', to be used for applicants
meeting the requirements of section
479(c).
(ii) Reduced data requirements.--The
form under this subparagraph 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 section
479(c).
(iii) State data.--The Secretary
shall include on the form under this
subparagraph such data items as may be
necessary to award State financial
assistance, as provided under paragraph
(6), except that the Secretary shall
not include a State's data if that
State does not permit its applicants
for State assistance to use the form
under this subparagraph.
(iv) Free availability and
processing.--The provisions of
paragraph (7) shall apply to the form
under this subparagraph, and the data
collected by means of the form under
this subparagraph shall be available to
institutions of higher education,
guaranty agencies, and States in
accordance with paragraph (9).
(v) Testing.--The Secretary shall
conduct appropriate field testing on
the form under this subparagraph.
(C) Promoting the use of electronic fafsa.--
(i) In general.--The Secretary shall
make an effort to encourage applicants
to utilize the electronic forms
described in paragraph (4).
(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. The printable
electronic file will be made easily
accessible and downloadable to students
on the same website used to provide
students with the electronic
application forms described in
paragraph (4) of this subsection. The
Secretary shall enable students to
submit a form created under this
subparagraph that is downloaded and
printed from an electronic file format
in order to meet the filing
requirements of this section and in
order to receive aid from programs
under this title.
(iii) Reporting requirement.--The
Secretary shall report annually to
Congress on the impact of the digital
divide on students completing
applications for title IV aid described
under this paragraph and paragraph (4).
The Secretary will also report on the
steps taken to eliminate the digital
divide and phase out the paper form
described in subparagraph (A) of this
paragraph. The Secretary's report will
specifically address the impact of the
digital divide on the following student
populations: dependent students,
independent students without
dependents, and independent students
with dependents other than a spouse.
(4) Electronic format.--
(A) In general.--The Secretary shall produce,
distribute, and process common forms in
electronic format to meet the requirements of
paragraph (1). The Secretary shall develop
common electronic forms for applicants who do
not meet the requirements of subparagraph (C)
of this paragraph.
(B) State data.--The Secretary shall include
on the common electronic forms space for
information that needs to be submitted from the
applicant to be eligible for State financial
assistance, as provided under paragraph (6),
except the Secretary shall not require
applicants to complete data required by any
State other than the applicant's State of
residence.
(C) Simplified applications: fafsa on the
web.--
(i) In general.--The Secretary shall
develop and use a simplified electronic
application form to be used by
applicants meeting the requirements
under subsection (c) of section 479 and
an additional, separate simplified
electronic application form to be used
by applicants meeting the requirements
under subsection (b) of section 479.
(ii) Reduced data requirements.--The
simplified electronic application 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) State data.--The Secretary
shall include on the simplified
electronic application forms such data
items as may be necessary to award
state financial assistance, as provided
under paragraph (6), except that the
Secretary shall not require applicants
to complete data required by any State
other than the applicant's State of
residence.
(iv) Availability and processing.--
The data collected by means of the
simplified electronic application forms
shall be available to institutions of
higher education, guaranty agencies,
and States in accordance with paragraph
(9).
(v) Testing.--The Secretary shall
conduct appropriate field testing on
the forms developed under this
subparagraph.
(D) 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.
(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 permit
an electronic form under this paragraph to be
submitted without a signature, if a signature
is subsequently submitted by the applicant.
(5) Streamlining.--
(A) Streamlined reapplication process.--
(i) In general.--The Secretary shall
develop streamlined reapplication forms
and processes, including both paper and
electronic reapplication processes,
consistent with the requirements of
this subsection, for an applicant who
applies for financial assistance under
this title--
(I) in the academic year
succeeding the year in which
such applicant first applied
for financial assistance under
this title; or
(II) in any succeeding
academic years.
(ii) Mechanisms for reapplication.--
The Secretary shall develop appropriate
mechanisms to support reapplication.
(iii) Identification of updated
data.--The Secretary shall determine,
in cooperation with States,
institutions of higher education,
agencies, and organizations involved in
student financial assistance, the data
elements that can be updated from the
previous academic year's application.
(iv) 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.
(v) 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 that which is necessary to
determine eligibility under such
section.
(B) Reduction of data elements.--
(i) Reduction encouraged.--Of the
number of data elements on the FAFSA on
the date of enactment of the College
Access and Opportunity Act of 2005
(including questions on the FAFSA for
the purposes described in paragraph
(6)), the Secretary, in cooperation
with representatives of agencies and
organizations involved in student
financial assistance, shall continue to
reduce the number of such data elements
following the date of enactment.
Reductions of data elements under
paragraph (3)(B), (4)(C), or (5)(A)(iv)
shall not be counted towards the
reduction referred to in this paragraph
unless those data elements are reduced
for all applicants.
(ii) Report.--The Secretary shall
annually report to the House of
Representatives and the Senate on the
progress made of reducing data
elements.
(6) State requirements.--
(A) In general.--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 State need-based financial aid
under section 415C, except as provided in
paragraphs (3)(B)(iii) and (4)(C)(iii) of this
subsection. 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, except as provided in paragraphs
(3)(B)(iii) and (4)(C)(iii) of this subsection.
The number of such data items shall not be less
than the number included on the form on October
7, 1998, unless a State notifies the Secretary
that the State no longer requires those data
items for the distribution of State need-based
financial aid.
(B) Annual review.--The Secretary shall
conduct an annual review process to determine
which forms and data items the States require
to award State need-based financial aid and
other application requirements that the States
may impose.
(C) State use of simplified forms.--The
Secretary shall encourage States to take such
steps as necessary to encourage the use of
simplified application forms, including those
described in paragraphs (3)(B) and (4)(C), to
meet the requirements under subsection (b) or
(c) of section 479.
(D) Federal register notice.--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 application forms described
in paragraphs (3)(B) and (4)(C); and
(ii) of the State-specific data that
the State agency requires for delivery
of State need-based financial aid.
(E) State notification to the secretary.--
(i) In general.--Each State agency
shall notify the Secretary--
(I) whether the State permits
an applicant to file a form
described in paragraph (3)(B)
or paragraph (4)(C) of this
subsection for purposes of
determining eligibility for
State need-based financial aid;
and
(II) the State-specific data
that the State agency requires
for delivery of State need-
based financial aid.
(ii) Acceptance of forms.--In the
event that a State does not permit an
applicant to file a form described in
paragraph (3)(B) or paragraph (4)(C) of
this subsection for purposes of
determining eligibility for State need-
based financial aid--
(I) the State shall notify
the Secretary if the State is
not permitted to do so because
of either State law or because
of agency policy; and
(II) the notification under
subclause (I) shall include an
estimate of the program cost to
permit applicants to complete
simplified application forms
under paragraphs (3)(B) and
paragraph (4)(C) of this
subsection.
(iii) Lack of notification by the
state.--If a State does not notify the
Secretary pursuant to clause (i), the
Secretary shall--
(I) permit residents of that
State to complete simplified
application forms under
paragraphs (3)(B) and paragraph
(4)(C) of this subsection; and
(II) not require any resident
of that State to complete any
data previously required by
that State under this section.
(7) Charges to students and parents for use of forms
prohibited.--
(A) Fees prohibited.--The FAFSA, in whatever
form (including the EZ-FAFSA, paper,
electronic, simplified, or reapplication),
shall be produced, distributed, and processed
by the Secretary and no parent or student shall
be charged a fee for the collection,
processing, or delivery of financial aid
through the use of the FAFSA. The need and
eligibility of a student for financial
assistance under parts A through E of this
title (other than under subpart 4 of part A)
may only be determined by using the FAFSA
developed by the Secretary pursuant to this
subsection. No student may receive assistance
under parts A through E of this title (other
than under subpart 4 of part A), except by use
of the FAFSA developed by the Secretary
pursuant to this subsection. No data collected
on a form for which a fee is charged shall be
used to complete the FAFSA.
(B) Notice.--Any entity that provides to
students or parents, or charges students or
parents for, any value-added services with
respect to or in connection with the FAFSA,
such as completion of the FAFSA, submission of
the FAFSA, or tracking of the FAFSA for a
student, shall provide to students and parents
clear and conspicuous notice that--
(i) the FAFSA is a free Federal
student aid application;
(ii) the FAFSA can be completed
without professional assistance; and
(iii) includes the current Internet
address for the FAFSA on the
Department's web site.
(8) Application processing cycle.--The Secretary
shall enable students to submit a form created under
this subsection in order to meet the filing
requirements of this section and in order to receive
aid from programs under this title and shall initiate
the processing of applications under this subsection as
early as practicable prior to January 1 of the
student's planned year of enrollment.
[(3)] (9) Distribution of data.--Institutions of
higher education, guaranty agencies, and States shall
receive, without charge, the data collected by the
Secretary using the form developed pursuant to this
section 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.
[(4)] (10) Contracts for collection and processing.--
(A) The Secretary shall, to the extent practicable,
enter into not less than 5 contracts with States,
institutions of higher education, or private
organizations for the purposes of the timely collection
and processing of the form developed pursuant to
paragraph (1) and the timely delivery of the data
submitted on such form. The Secretary shall use such
contracts to assist States and institutions of higher
education with the collection of additional data
required to award State or institutional financial
assistance, except that the Secretary shall not include
these additional data items on the common financial
reporting form developed pursuant to this section. The
Secretary shall include in each such contract a
requirement that--
(i) * * *
* * * * * * *
[(5) Electronic forms.--(A) The Secretary, in
cooperation with representatives of agencies and
organizations involved in student financial assistance,
including private computer software providers, shall
develop an electronic version of the form described in
paragraph (1). As permitted by the Secretary, such an
electronic version shall not require a signature to be
collected at the time such version is submitted, if a
signature is subsequently submitted by the applicant.
The Secretary shall prescribe such version not later
than 120 days after the date of enactment of the Higher
Education Amendments of 1998.
[(B) Nothing in this section shall be construed to
prohibit the use of the form developed by the Secretary
pursuant to subparagraph (A) by an eligible
institution, eligible lender, guaranty agency, State
grant agency, private computer software providers, a
consortium thereof, or such other entities as the
Secretary may designate.
[(C) No fee shall be charged to students in
connection with the use of the electronic version of
the form, or of any other electronic forms used in
conjunction with such form in applying for Federal or
State student financial assistance.
[(D) The Secretary shall ensure that data collection
complies with section 552a of title 5, United States
Code, and that any entity using the electronic version
of the form developed by the Secretary pursuant to
subparagraph (A) 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
form. Data collected by such version of the form 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 version of the form 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.]
[(6)] (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 eligible institutions 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) which
are 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 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.
[(7)] (12) Parent's social security number and birth
date.--The Secretary is authorized to include on the
form developed under this subsection space for the
social security number and birth date of parents of
dependent students seeking financial assistance under
this title.
(13) Expanding information dissemination regarding
eligibility for pell grants.--The Secretary shall make
special efforts, in conjunction with State efforts, to
notify students and their parents who qualify for a
free lunch under the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et seq.), the Food Stamps
program, or such other programs as the Secretary shall
determine, of their potential eligibility for a maximum
Pell Grant, and shall disseminate such informational
materials as the Secretary deems appropriate.
* * * * * * *
(c) Information to Committees of Congress.--Copies of all
rules, regulations, guidelines, instructions, and application
forms published or promulgated pursuant to this title shall be
provided to the [Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the
House of Representatives] authorizing committees at least 45
days prior to their effective date.
(d) Toll-Free Information.--The Secretary shall contract for,
or establish, and publicize a toll-free telephone service to
provide timely and accurate information to the general public.
The information provided shall include specific instructions on
completing the application form for assistance under this
title. Such service shall also include a service accessible by
telecommunications devices for the deaf (TDD's) and shall, in
addition to the services provided for in the previous sentence,
refer such students to the national clearinghouse on
postsecondary education [that is authorized under section
685(d)(2)(C)], or another appropriate provider of technical
assistance and information on postsecondary educational
services, that is supported under section 663 of the
Individuals with Disabilities Education Act.
* * * * * * *
(f) Addressing the Digital Divide.--The Secretary shall
utilize savings accrued by moving more applicants to the
electronic forms described in subsection (a)(4) to improve
access to the electronic forms described in subsection (a)(4)
for applicants meeting the requirements of section 479(c).
SEC. 484. STUDENT ELIGIBILITY.
(a) In General.--In order to receive any grant, loan, or work
assistance under this title, a student must--
(1) * * *
* * * * * * *
(4) file with the Secretary, as part of the original
financial aid application process, a [certification,,]
certification, which need not be notarized, but which
shall include--
(A) * * *
* * * * * * *
(5) be a citizen or national of the United States, a
permanent resident of the United States, able to
provide evidence from the Immigration and
Naturalization Service that he or she is in the United
States for other than a temporary purpose with the
intention of becoming a citizen or permanent resident,
a citizen of any one of the Freely Associated
States[.]; and
(6) if the student has been convicted of, or has pled
nolo contendere or guilty to, a crime involving fraud
in obtaining funds under this title, have completed the
repayment of such funds to the Secretary, or to the
holder in the case of a loan under this title obtained
by fraud.
(b) Eligibility for Student Loans.--(1) * * *
(2) In order to be eligible to receive any loan under
[section 428A] section 428H for any period of
enrollment, a student shall--
(A) have received a determination of need for
a loan under section 428(a)(2)(B) of this
title; and
(B) if determined to have need for a loan
under section 428, have applied for such a
loan[; and].
[(C) has applied for a loan under section
428H, if such student is eligible to apply for
such a loan.]
* * * * * * *
(5) Notwithstanding any other provision of this
subsection, no incarcerated student or parent (on
behalf of a student) is eligible to receive a loan
under this title, and no student who is subject to an
involuntary civil commitment upon completion of a
period of incarceration for a sexual offense (as
determined under regulations of the Secretary) is
eligible to receive a loan under this title.
* * * * * * *
[(d) Students Who Are Not High School Graduates.--] (d)
Satisfaction of Secondary Education Standards.--In order for a
student who does not have a certificate of graduation from a
school providing secondary education, or the recognized
equivalent of such certificate, to be eligible for any
assistance under subparts 1, 3, and 4 of part A and parts B, C,
D, and E of this title, the student shall meet one of the
following standards:
(1) * * *
* * * * * * *
( j) Assistance Under Subparts 1 and 3 of Part A, and Part
C.--Notwithstanding any other provision of law, a student shall
be eligible until September 30, 2004, for assistance under
subparts 1 and 3 of part A, and part C, and shall be eligible
only for assistance under subpart 1 of part A thereafter, if
the student is otherwise qualified and--
(1) * * *
* * * * * * *
(l) Courses Offered Through Telecommunications.--
(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 in whole or in
part through telecommunications and leads to a
recognized certificate [for a program of study
of 1 year or longer], or a recognized
associate, baccalaureate, or graduate degree,
conferred by such institution, shall not be
considered to be enrolled in correspondence
courses [unless the total amount of
telecommunications and correspondence courses
at such institution equals or exceeds 50
percent of the total amount of all courses at
the institution].
[(B) Requirement.--An institution of higher
education referred to in subparagraph (A) is an
institution of higher education--
[(i) that is not an institute or
school described in section 521(4)(C)
of the Carl D. Perkins Vocational and
Applied Technology Education Act; and
[(ii) for which at least 50 percent
of the programs of study offered by the
institution lead to the award of a
recognized associate, baccalaureate, or
graduate degree.]
(B) Exception.--Subparagraph (A) does not
apply to an institution or school described in
section 3(3)(C) of the Carl D. Perkins
Vocational and Technical Education Act of 1998.
* * * * * * *
(q) Verification of Income Data.--
[(1) Confirmation with irs.--The Secretary of
Education, in cooperation with the Secretary of the
Treasury, is authorized to confirm with the Internal
Revenue Service the adjusted gross income, Federal
income taxes paid, filing status, and exemptions
reported by applicants (including parents) under this
title on their Federal income tax returns for the
purpose of verifying the information reported by
applicants on student financial aid applications.]
(1) Confirmation with irs.--The Secretary of
Education, in cooperation with the Secretary of the
Treasury, is authorized to confirm with the Internal
Revenue Service the information specified in section
6103(l)(13) of the Internal Revenue Code of 1986
reported by applicants (including parents) under this
title on their Federal income tax returns for the
purpose of verifying the information reported by
applicants on student financial aid applications.
* * * * * * *
(r) Suspension of Eligibility for Drug-Related Offenses.--
[(1) In general.--A student who has been convicted of
any offense under any Federal or State law involving
the possession or sale of a controlled substance shall
not be eligible to receive any grant, loan, or work
assistance under this title during the period beginning
on the date of such conviction and ending after the
interval specified in the following table:]
(1) In general.--A student who is convicted of any
offense under any Federal or State law involving the
possession or sale of a controlled substance for
conduct that occurred during a period of enrollment for
which the student was receiving any grant, loan, or
work assistance under this title shall not be eligible
to receive any grant, loan, or work assistance under
this title from the date of that conviction for the
period of time specified in the following table:
If convicted of an offense involving:
The possession o a con-
trolled substancIneligibility period is:
First offense... 1 year ...........................................
Second offense.. 2 years ..........................................
Third offense... Indefinite........................................
The sale of a ntrolled
substance: Ineligibility period is:
First offense... 2 years ..........................................
Second offense.. Indefinite........................................
* * * * * * *
SEC. 484A. STATUTE OF LIMITATIONS, AND STATE COURT JUDGMENTS.
(a) * * *
(b) Assessment of Costs and Other Charges.--Notwithstanding
any provision of State law to the contrary--
(1) * * *
(2) in collecting any obligation arising from a loan
made under [part B of this title] part B, D, or E of
this title, a guaranty agency or the Secretary shall
not be subject to a defense raised by any borrower
based on a claim of infancy.
* * * * * * *
SEC. 484B. INSTITUTIONAL REFUNDS.
(a) Return of Title IV Funds.--
(1) In general.--If a recipient of assistance under
this title withdraws from an institution during a
payment period or period of enrollment in which the
recipient began attendance, the amount of grant or loan
assistance (other than assistance received under
subpart 4 of part A or part C) to be returned to the
title IV programs is calculated according to paragraph
(3) and returned in accordance with subsection (b).
(2) Leave of absence.--
(A) Leave not treated as withdrawal.--In the
case of a student who [takes a leave] takes one
or more leaves of absence from an institution
for not more than a total of 180 days in any
12-month period, the institution may consider
the student as not having withdrawn from the
institution during the leave of absence, and
not calculate the amount of grant and loan
assistance provided under this title that is to
be returned in accordance with this section
if--
(i) * * *
* * * * * * *
(3) Calculation of amount of title iv assistance
earned.--
(A) * * *
(B) Percentage earned.--For purposes of
subparagraph (A)(i), the percentage of grant or
loan assistance under this title that has been
earned by the student is--
(i) * * *
(ii) 100 percent, if the day the
student withdrew occurs after the
student has completed (as determined in
accordance with subsection (d)) 60
percent of the payment period or period
of enrollment.
* * * * * * *
(4) Differences between amounts earned and amounts
received.--
[(A) In general.--If the student has received
less grant or loan assistance than the amount
earned as calculated under subparagraph (A) of
paragraph (3), the institution of higher
education shall comply with the procedures for
late disbursement specified by the Secretary in
regulations.]
(A) In general.--After determining the
eligibility of the student for a late
disbursement or post-withdrawal disbursement
(as required in regulations prescribed by the
Secretary), the institution of higher education
shall contact the borrower and obtain
confirmation that the loan funds are still
required by the borrower. In making such
contact, the institution shall explain to the
borrower the borrower's obligation to repay the
funds following any such disbursement. The
institution shall document in the borrower's
file the result of such contact and the final
determination made concerning such
disbursement.
* * * * * * *
(b) Return of Title IV Program Funds.--
(1) Responsibility of the institution.--The
institution shall return no later than 45 days from the
determination of withdrawal, in the order specified in
paragraph (3), the lesser of--
(A) * * *
* * * * * * *
(2) Responsibility of the student.--
(A) * * *
* * * * * * *
[(C) Requirement.--Notwithstanding
subparagraphs (A) and (B), a student shall not
be required to return 50 percent of the grant
assistance received by the student under this
title, for a payment period or period of
enrollment, that is the responsibility of the
student to repay under this section.]
(C) Grant overpayment requirements.--
(i) In general.--Notwithstanding
subparagraphs (A) and (B), a student
shall only be required to return grant
assistance in the amount (if any) by
which--
(I) the amount to be returned
by the student (as determined
under subparagraphs (A) and
(B)), exceeds
(II) 50 percent of the total
grant assistance received by
the student under this title
for the payment period or
period of enrollment.
(ii) Minimum.--A student shall not be
required to return amounts of $50 or
less.
(D) Waivers of pell grant repayment by
students affected by disasters.--The Secretary
may waive the amounts that students are
required to return under this section with
respect to Pell grants if the withdrawals on
which the returns are based are withdrawals by
students--
(i) who were residing in, employed
in, or attending an institution of
higher education that is located in an
area in which the President has
declared that a major disaster exists,
in accordance with section 401 of the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C.
5170);
(ii) whose attendance was interrupted
because of the impact of the disaster
on the student or the institution; and
(iii) whose withdrawal ended within
the academic year during which the
designation occurred or during the next
succeeding academic year.
* * * * * * *
(d) Percentage of the Payment Period or Period of Enrollment
Completed.--For purposes of subsection [(a)(3)(B)(i)]
(a)(3)(B), the percentage of the payment period or period of
enrollment for which assistance was awarded that was completed,
is determined--
(1) * * *
* * * * * * *
SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--(1) Each eligible
institution participating in any program under this title shall
carry out information dissemination activities for prospective
and enrolled students (including those attending or planning to
attend less than full time) regarding the institution and all
financial assistance under this title. [The information
required by this section shall be produced and be made readily
available upon request, through appropriate publications,
mailings, and electronic media, to an enrolled student and to
any prospective student.] The information required by this
section shall be produced and be made publicly available to an
enrolled student and to any prospective student, through
appropriate publications, mailings, electronic media, and the
reports required by the institution's accrediting agency under
section 496(c)(9). Each eligible institution shall, on an
annual basis, provide to all enrolled students a list of the
information that is required to be provided by institutions to
students by this section and section 444 of the General
Education Provisions Act (also referred to as the Family
Educational Rights and Privacy Act of 1974), together with a
statement of the procedures required to obtain such
information. The information required by this section shall
accurately describe--
(A) * * *
* * * * * * *
[(G) the academic program of the institution,
including (i) the current degree programs and other
educational and training programs, (ii) the
instructional, laboratory, and other physical plant
facilities which relate to the academic program, and
(iii) the faculty and other instructional personnel;]
(G) the academic programs of the institution,
including--
(i) the current degree programs and other
educational and training programs;
(ii) the institution's educational mission
and goals;
(iii) the instructional, laboratory, and
other physical plant facilities which relate to
the academic programs; and
(iv) the faculty and other instructional
personnel;
* * * * * * *
(J) the names of associations, agencies, or
governmental bodies which accredit, approve, or license
the institution and its programs, and the procedures
under which any current or prospective student may
obtain or review upon request a copy of the documents
describing the institution's accreditation, approval,
or licensing, and the process for students to register
complaints with the accrediting agencies or
associations;
* * * * * * *
[(L) the completion or graduation rate of
certificate- or degree-seeking, full-time,
undergraduate students entering such institutions;]
(L) a summary of student outcomes for full-time
undergraduate students, including--
(i) the completion or graduation rates of
certificate- or degree-seeking undergraduate
students entering such institutions; and
(ii) any other student outcome data,
qualitative or quantitative, including data
regarding distance education, deemed by the
institution to be appropriate to its stated
educational mission and goals, and, when
applicable, licensing and placement rates for
professional and vocational programs;
(M) the terms and conditions under which students
receiving [guaranteed student loans under part B of
this title or direct student loans under part E of this
title, or both,] student loans under part B, D, or E of
this title may--
(i) * * *
* * * * * * *
(N) that enrollment in a program of study abroad
approved for credit by the home institution may be
considered enrollment in the home institution for
purposes of applying for Federal student financial
assistance; [and]
(O) the campus crime report prepared by the
institution pursuant to subsection (f ), including all
required reporting categories[.];
(P) the penalties contained in subsection 484(r)
regarding suspension of eligibility for drug related
offenses;
(Q) the policies of the institution regarding the
acceptance or denial of academic credit earned at
another institution of higher education, which shall
include a statement that such decisions will not be
based solely on the source of accreditation of a
sending institution, provided that the sending
institution is accredited by an agency or association
that is recognized by the Secretary pursuant to section
496 to be a reliable authority as to the quality of the
education or training offered, and except that nothing
in this subparagraph shall be construed to--
(i) 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;
(ii) limit the application of the General
Education Provisions Act; or
(iii) create any legally enforceable right;
and
(R) the fire safety report prepared by the
institution pursuant to subsection (h).
* * * * * * *
[(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4) or for
students transferring into the institution or information
showing the rate at which students transfer out of the
institution.]
(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
graduation rate for students described in paragraph (4). For
the purpose of this paragraph, the definitions provided in the
Integrated Postsecondary Education Data System shall apply.
(7) Each eligible institution participating in any program
under this title may publicly report to currently enrolled and
prospective students the voluntary information collected by the
National Survey of Student Engagement (NSSE), the Community
College Survey of Student Engagement (CCSSE), or other
instruments that provide evidence of student participation in
educationally purposeful activities. The information shall be
produced and made available in a uniform and comprehensible
manner, through appropriate publications, mailings, and
electronic media, and may be included in reports required by
the institution's accrediting agency.
(b) Exit Counseling for Borrowers.--(1) * * *
* * * * * * *
(3) Each eligible institution shall, during the exit
interview required by this subsection, provide to a borrower of
a loan made under part B, D, or E a clear and conspicuous
notice describing the effect of using a consolidation loan to
discharge the borrower's student loans, including--
(A) the effects of consolidation on total interest to
be paid, fees to be paid, and length of repayment;
(B) the effects of consolidation on a borrower's
underlying loan benefits, including loan forgiveness,
cancellation, and deferment;
(C) the ability for the borrower to prepay the loan,
pay on a shorter schedule, and to change repayment
plans, and that borrower benefit programs may vary
among different loan holders;
(D) the tax benefits for which the borrower may be
eligible; and
(E) the consequences of default.
* * * * * * *
(f) Disclosure of Campus Security Policy and Campus Crime
Statistics.--(1) Each eligible institution participating in any
program under this title, other than a foreign institution of
higher education, shall on August 1, 1991, begin to collect the
following information with respect to campus crime statistics
and campus security policies of that institution, and beginning
September 1, 1992, and each year thereafter, prepare, publish,
and distribute, through appropriate publications or mailings,
to all current students and employees, and to any applicant for
enrollment or employment upon request, an annual security
report containing at least the following information with
respect to the campus security policies and campus crime
statistics of that institution:
(A) * * *
* * * * * * *
(5) On an annual basis, each institution participating in any
program under this title shall submit to the Secretary a copy
of the statistics required to be made available under paragraph
(1)(F). The Secretary shall--
(A) review such statistics and report to the
[Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human
Resources of the Senate] authorizing committees on
campus crime statistics by September 1, 2000;
* * * * * * *
(g) Data Required.--
(1) * * *
* * * * * * *
(4) Submission; report; information availability.--
(A) * * *
(B) The Secretary shall prepare a report regarding
the information received under subparagraph (A) and
submit such report to the [Committee on Education and
the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate]
authorizing committees by April 1, 2000. The report
shall--
(i) * * *
* * * * * * *
(h) Disclosure of Fire Safety Standards and Measures.--
(1) Annual fire safety reports required.--Each
institution participating in any program under this
title shall, beginning in the first academic year that
begins after the date of enactment of the College
Access and Opportunity Act of 2005, and each year
thereafter, prepare, publish, and distribute, through
appropriate publications (including the Internet) or
mailings, to all current students and employees, and to
any applicant for enrollment or employment upon
request, an annual fire safety report. Such reports
shall contain at least the following information with
respect to the campus fire safety practices and
standards of that institution:
(A) A statement that identifies each
institution-owned or controlled student housing
facility, and whether or not such facility is
equipped with a fire sprinkler system or other
fire safety system, or has fire escape planning
or protocols.
(B) Statistics for each such facility
concerning the occurrence of fires and false
alarms in such facility during the 2 preceding
calendar years for which data are available.
(C) For each such occurrence in each such
facility, a summary of the human injuries or
deaths, structural or property damage, or
combination thereof.
(D) Information regarding rules on portable
electrical appliances, smoking and open flames
(such as candles), regular mandatory supervised
fire drills, and planned and future
improvements in fire safety.
(E) Information about fire safety education
and training provided to students, faculty, and
staff.
(F) Information concerning fire safety at any
housing facility owned or controlled by a
fraternity, sorority, or student group that is
recognized by the institution, including--
(i) information reported to the
institution under paragraph (4); and
(ii) a statement concerning whether
and how the institution works with
recognized student fraternities and
sororities, and other recognized
student groups owning or controlling
housing facilities, to make each
building and property owned or
controlled by such fraternities,
sororities, and groups more fire safe.
(2) Fraternities, sororities, and other groups.--Each
institution participating in a program under this title
shall request each fraternity and sorority that is
recognized by the institution, and any other student
group that is recognized by the institution and that
owns or controls housing facilities, to collect and
report to the institution the information described in
subparagraphs (A) through (E) of paragraph (1), as
applied to the fraternity, sorority, or recognized
student group, respectively, for each building and
property owned or controlled by the fraternity,
sorority, or group, respectively.
(3) Current information to campus community.--Each
institution participating in any program under this
title shall make, keep, and maintain a log, written in
a form that can be easily understood, recording all on-
campus fires, including the nature, date, time, and
general location of each fire and all false fire
alarms. All entries that are required pursuant to this
paragraph shall, except where disclosure of such
information is prohibited by law, be open to public
inspection, and each such institution shall make annual
reports to the campus community on such fires and false
fire alarms in a manner that will aid the prevention of
similar occurrences.
(4) Reports to the secretary.--On an annual basis,
each institution participating in any program under
this title shall submit to the Secretary a copy of the
statistics required to be made available under
paragraph (1)(B). The Secretary shall--
(A) review such statistics;
(B) make copies of the statistics submitted
to the Secretary available to the public; and
(C) in coordination with nationally
recognized fire organizations and
representatives of institutions of higher
education, identify exemplary fire safety
policies, procedures, and practices and
disseminate information concerning those
policies, procedures, and practices that have
proven effective in the reduction of campus
fires.
(5) 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
fire safety.
(6) Definitions.--In this subsection, the term
``campus'' has the meaning provided in subsection
(f)(6).
* * * * * * *
SEC. 485B. NATIONAL STUDENT LOAN DATA SYSTEM.
(a) Development of the System.--The Secretary shall consult
with a representative group of guaranty agencies, eligible
lenders, and eligible institutions to develop a mutually
agreeable proposal for the establishment of a National Student
Loan Data System containing information regarding loans made,
insured, or guaranteed under part B and loans made under parts
D and E, and for allowing the electronic exchange of data
between program participants and the system. In establishing
such data system, the Secretary shall place a priority on
providing for the monitoring of enrollment, student status,
information about current loan holders and servicers, and
internship and residency information. Such data system shall
also permit borrowers to use the system to identify the current
loan holders and servicers of such borrower's loan not later
than one year after the date of enactment of the Higher
Education Amendments of 1998. The information in the data
system shall include (but is not limited to)--
(1) * * *
* * * * * * *
(5) the exact amount of loans partially or totally
canceled or in deferment for service under the Peace
Corps Act [(22 U.S.C. 2501 et seq.)),] (22 U.S.C. 2501
et seq.), for service under the Domestic Volunteer
Service Act of 1973 (42 U.S.C. 4951 et seq.), and for
comparable full-time service as a volunteer for a tax-
exempt organization of demonstrated effectiveness[.];
[(5)] (6) the eligible institution in which the
student was enrolled or accepted for enrollment at the
time the loan was made, and any additional institutions
attended by the borrower;
[(6)] (7) the total amount of loans made to any
borrower and the remaining balance of the loans;
[(7)] (8) the lender, holder, and servicer of such
loans;
[(8)] (9) information concerning the date of any
default on the loan and the collection of the loan,
including any information concerning the repayment
status of any defaulted loan on which the Secretary has
made a payment pursuant to section 430(a) or the
guaranty agency has made a payment to the previous
holder of the loan;
[(9)] (10) information regarding any deferments or
forbearance granted on such loans; and
[(10)] (11) the date of cancellation of the note upon
completion of repayment by the borrower of the loan or
payment by the Secretary pursuant to section 437.
* * * * * * *
SEC. 485D. COLLEGE ACCESS INITIATIVE.
(a) State-by-State Information.--The Secretary shall direct
each guaranty agency with which the Secretary has an agreement
under section 428(c) to provide to the Secretary the
information necessary for the development of web links and
access for students and families to a comprehensive listing of
the postsecondary education opportunities, programs,
publications, Internet Web sites, and other services available
in the States for which such agency serves as the designated
guarantor.
(b) Guaranty Agency Activities.--
(1) Plan and activity required.--Each guaranty agency
with which the Secretary has an agreement under section
428(c) shall develop a plan and undertake the activity
necessary to gather the information required under
subsection (a) and to make such information available
to the public and to the Secretary in a form and manner
as prescribed by the Secretary.
(2) Activities.--Each guaranty agency shall undertake
such activities as are necessary to promote access to
postsecondary education for students through providing
information on college planning, career preparation,
and paying for college. The guaranty agency shall
publicize such information and coordinate such
activities with other entities that either provide or
distribute such information in the States for which
such guaranty agency serves as the designated
guarantor.
(3) Funding.--The activities required by this section
may be funded from the guaranty agency's operating
account established pursuant to section 422B and, to
the extent funds remain, from earnings on the
restricted account established pursuant to section
422(h)(4).
(c) Access to Information.--
(1) Secretary's responsibility.--The Secretary shall
ensure the availability of the information provided by
the guaranty agencies in accordance with this section
to students, parents, and other interested individuals,
through web links or other methods prescribed by the
Secretary.
(2) Guaranty agency responsibility.--The guaranty
agencies shall ensure that the information required by
this section is available without charge in printed
format for students and parents requesting such
information.
(3) Publicity.--Within 270 days after the date of
enactment of the College Access and Opportunity Act of
2005, the Secretary and guaranty agencies shall
publicize the availability of the information required
by this section, with special emphasis on ensuring that
populations that are traditionally underrepresented in
postsecondary education are made aware of the
availability of such information.
SEC. 486. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
(a) * * *
(b) Demonstration Programs Authorized.--
(1) * * *
(2) Waivers.--The Secretary is authorized to waive
for any institution of higher education, system of
institutions of higher education, or consortium
participating in a Distance Education Demonstration
Program, the requirements of section 472(5) as the
section relates to computer costs, sections 481(a) and
481(b) as such sections relate to requirements for a
minimum number of weeks of instruction, sections
[102(a)(3)(A), 102(a)(3)(B)] 101(b)(4)(A),
101(b)(4)(B), and 484(l)(1), or one or more of the
regulations prescribed under this part or part F which
inhibit the operation of quality distance education
programs.
(3) Eligible applicants.--
(A) * * *
(B) Prohibition.--An institution of higher
education described in [section 102(a)(1)(C)]
section 102 shall not be eligible to
participate in the demonstration program
authorized under this section.
(C) Special rule.--Subject to subparagraph
(B), an institution of higher education that
meets the requirements of [subsection (a) of
section 102, other than the requirement of
paragraph (3)(A) or (3)(B) of such subsection,]
section 101, other than the requirements of
subparagraph (A) or (B) of subsection (b)(4) of
such section and that provides a 2-year or 4-
year program of instruction for which the
institution awards an associate or
baccalaureate degree, shall be eligible to
participate in the demonstration program
authorized under this section.
* * * * * * *
(d) Selection.--
(1) In general.--For the first year of the
demonstration program authorized under this section,
the Secretary is authorized to select for participation
in the program not more than 15 institutions, systems
of institutions, or consortia of institutions. For [the
third year] subsequent years of the demonstration
program authorized under this section, the Secretary
may select not more than [35] 100 institutions,
systems, or consortia, in addition to the institutions,
systems, or consortia selected pursuant to the
preceding sentence, to participate in the demonstration
program if the Secretary determines that such expansion
is warranted based on the evaluations conducted in
accordance with subsections (f ) and (g). Not more than
5 of such institutions, systems, or consortia may be
accredited, degree-granting correspondence schools.
* * * * * * *
(e) Notification.--The Secretary shall make available to the
public and to the [Committee on Labor and Human Resources of
the Senate and the Committee on Education and the Workforce of
the House of Representatives] authorizing committees a list of
institutions, systems or consortia selected to participate in
the demonstration program authorized by this section. Such
notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution,
system or consortium and a description of the distance
education courses to be offered.
(f ) Evaluations and Reports.--
(1) * * *
* * * * * * *
(3) Reports.--
(A) In general.--Within 18 months of the
initiation of the demonstration program, the
Secretary shall report to the [Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the
House of Representatives] authorizing
committees with respect to--
(i) * * *
* * * * * * *
(B) Additional reports.--The Secretary shall
provide additional reports to the [Committee on
Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the
House of Representatives] authorizing
committees on an annual basis regarding--
(i) * * *
* * * * * * *
SEC. 486A. COLLEGE AFFORDABILITY DEMONSTRATION PROGRAM.
(a) Purpose.--It is the purpose of this section--
(1) to provide, through a college affordability
demonstration program, for increased innovation in the
delivery of higher education and student financial aid
in a manner resulting in reduced costs for students as
well as the institution by employing one or more
strategies including accelerating degree or program
completion, increasing availability of, and access to,
distance components of education delivery, engaging in
collaborative arrangements with other institutions and
organizations, and other alternative methodologies; and
(2) to help determine--
(A) the most effective means of delivering
student financial aid as well as quality
education;
(B) the specific statutory and regulatory
requirements that should be altered to provide
for more efficient and effective delivery of
student financial aid, as well as access to
high quality distance education programs,
resulting in a student more efficiently
completing postsecondary education; and
(C) the most effective methods of obtaining
and managing institutional resources.
(b) Demonstration Program Authorized.--
(1) In general.--In accordance with the purposes
described in subsection (a) and the provisions of
subsection (d), the Secretary is authorized to select
not more than 100 institutions of higher education,
including those applying as part of systems or
consortia of such institutions, for voluntary
participation in the College Affordability
Demonstration Program in order to enable participating
institutions to carry out such purposes by providing
programs of postsecondary education, and making
available student financial assistance under this title
to students enrolled in those programs, in a manner
that would not otherwise meet the requirements of this
title.
(2) Waivers.--The Secretary is authorized to waive
for any institutions of higher education, or any system
or consortia of institutions of higher education,
selected for participation in the College Affordability
Demonstration Program, any requirements of this Act or
the regulations thereunder as deemed necessary by the
Secretary to meet the purpose described in subsection
(a)(1), and shall make a determination that the waiver
can reasonably be expected to result in reduced costs
to students or institutions without an increase in
Federal program costs. The Secretary may not waive
under this paragraph the maximum award amounts for an
academic year or loan period.
(3) Eligible applicants.--
(A) Eligible institutions.--Except as
provided in subparagraph (B), only an
institution of higher education that is
eligible to participate in programs under this
title shall be eligible to participate in the
demonstration program authorized under this
section.
(B) Prohibition.--An institution of higher
education described in section 102 shall not be
eligible to participate in the demonstration
program authorized under this section.
(c) Application.--
(1) In general.--Each institution or system of
institutions 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 of applications.--Each application for
the college affordability demonstration program shall
include at least the following:
(A) a description of the institution or
system or consortium of institutions and what
quality assurance mechanisms are in place to
insure the integrity of the Federal financial
aid programs;
(B) a description of the innovation or
innovations being proposed and the affected
programs and students, including--
(i) a description of any
collaborative arrangements with other
institutions or organizations to reduce
costs;
(ii) a description of any expected
economic impact of participation in the
program within the community in which
the institution is located; and
(iii) a description of any means the
institution will employ to reduce the
costs of instructional materials, such
as textbooks;
(C) a description of each regulatory or
statutory requirement for which waivers are
sought, with a reason for each waiver;
(D) a description of the expected outcomes of
the program changes proposed, including the
estimated reductions in costs both for the
institution and for students;
(E) a description of the quality assurance
mechanisms in place to ensure the integrity of
the Federal financial aid programs;
(F) an assurance from each institution in a
system or consortium of a commitment to fulfill
its role as described in the application;
(G) an assurance that the participating
institution or system of institutions will
offer full cooperation with the ongoing
evaluations of the demonstration program
provided for in this section; and
(H) any other information or assurances the
Secretary may require.
(d) Selection.--In selecting institutions to participate in
the demonstration program under this section, the Secretary
shall take into account--
(1) the number and quality of applications received,
determined on the basis of the contents required by
subsection (c)(2);
(2) the Department's capacity to oversee and monitor
each institution's participation;
(3) an institution's--
(A) financial responsibility;
(B) administrative capability;
(C) program or programs being offered via
distance education, if applicable;
(D) student completion rates; and
(E) student loan default rates; and
(4) the participation of a diverse group of
institutions with respect to size, mission, and
geographic distribution.
(e) Notification.--The Secretary shall make available to the
public and to the authorizing committees a list of institutions
selected to participate in the demonstration program authorized
by this section. Such notice shall include a listing of the
specific statutory and regulatory requirements being waived for
each institution and a description of the innovations being
demonstrated.
(f) Evaluations and Reports.--
(1) Evaluation.--The Secretary shall evaluate the
demonstration program authorized under this section on
a biennial basis. Such evaluations specifically shall
review--
(A) the extent to which expected outcomes,
including the estimated reductions in cost,
were achieved;
(B) the number and types of students
participating in the programs offered,
including the progress of participating
students toward recognized certificates or
degrees and the extent to which participation
in such programs increased;
(C) issues related to student financial
assistance associated with the innovations
undertaken;
(D) effective technologies and alternative
methodologies for delivering student financial
assistance;
(E) the extent of the cost savings to the
institution, the student, and the Federal
Government by virtue of the waivers provided,
and an estimate as to future cost savings for
the duration of the demonstration program;
(F) the extent to which students saved money
by virtue of completing their postsecondary
education sooner;
(G) the extent to which the institution
reduced its tuition and fees and its costs by
virtue of participation in the demonstration
program;
(H) the extent to which any collaborative
arrangements with other institutions or
organizations have reduced the participating
institution's costs; and
(I) the extent to which statutory or
regulatory requirements not waived under the
demonstration program present difficulties for
students or institutions.
(2) Policy analysis.--The Secretary shall review
current policies and identify those policies that
present impediments to the implementation of
innovations that result in cost savings and in
expanding access to education.
(3) Reports.--The Secretary shall provide a report to
the authorizing committees on a biennial basis
regarding--
(A) the demonstration program authorized
under this section;
(B) the results of the evaluations conducted
under paragraph (1);
(C) the cost savings to the Federal
Government by the demonstration program
authorized by this section; and
(D) recommendations for changes to increase
the efficiency and effective delivery of
financial aid.
(g) Oversight.--In conducting the demonstration program
authorized under this section, the Secretary shall, on a
continuing basis--
(1) ensure compliance of institutions or systems of
institutions with the requirements of this title (other
than the sections and regulations that are waived under
subsection (b)(2));
(2) provide technical assistance to institutions in
their application to and participation in the
demonstration program;
(3) monitor fluctuations in the student population
enrolled in the participating institutions or systems
of institutions;
(4) monitor changes in financial assistance provided
at the institution; and
(5) consult with appropriate accrediting agencies or
associations and appropriate State regulatory
authorities.
(h) Termination of Authority.--The authority of the Secretary
under this section shall cease to be effective on October 1,
2011.
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.--In order
to be an eligible institution for the purposes of any program
authorized under this title, an institution must be an
institution of higher education or an eligible institution (as
that term is defined for the purpose of that program) and
shall, except with respect to a program under subpart 4 of part
A, enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and
continuing eligibility of an institution to participate in a
program upon compliance with the following requirements:
(1) * * *
* * * * * * *
(16)(A) The institution will not knowingly employ an
individual in a capacity that involves the
administration of programs under this title, or the
receipt of program funds under this title or other
Federal, State, or local government funds, who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under this title or other Federal, State, or
local government funds, or has been judicially
determined to have committed fraud involving funds
under this title or other Federal, State, or local
government funds or contract with an institution or
third party servicer that has been terminated under
section 432 involving the acquisition, use, or
expenditure of funds under this title or other Federal,
State, or local government funds, or who has been
judicially determined to have committed fraud involving
funds under this title or other Federal, State, or
local government funds.
(B) The institution will not knowingly contract with
or employ any individual, agency, or organization that
has been, or whose officers or employees have been--
(i) convicted of, or pled nolo contendere or
guilty to, a crime involving the acquisition,
use, or expenditure of funds under this title
or other Federal, State, or local government
funds; or
(ii) judicially determined to have committed
fraud involving funds under this title or other
Federal, State, or local government funds.
* * * * * * *
(22) The institution will comply with the [refund
policy] policy on the return of title IV funds
established pursuant to section 484B.
(23)(A) * * *
* * * * * * *
(C) This paragraph shall apply to general and special
elections for Federal office, as defined in section
301(3) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(3)), and to the elections for Governor or
other chief executive within such State).
(D) An institution shall be considered in compliance
with the requirements of subparagraph (A) for any
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, provided such
information is in an electronic message devoted to
voter registration.
(24) The institution will, as calculated in
accordance with subsection (f)(1), have at least 10
percent of its revenues from sources other than funds
provided under this title, or will be subject to the
sanctions described in subsection (f)(2).
(25) The institution will disclose to the alleged
victim of any crime of violence (as that term is
defined in section 16 of title 18), or a nonforcible
sex offense, the final 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,
the next of kin of such victim shall be treated as the
alleged victim for purposes of this paragraph.
* * * * * * *
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, 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 receive
less than $500,000 in loans under this title during the
award year preceding the audit period;
* * * * * * *
(iii) at the discretion of the Secretary, with regard
to an eligible institution (other than an eligible
institution described in [section 102(a)(1)(C)] section
102) that has obtained less than $200,000 in funds
under this title during each of the 2 award years that
precede the audit period and submits a letter of credit
payable to the Secretary equal to not less than \1/2\
of the annual potential liabilities of such institution
as determined by the Secretary, deeming an audit
conducted every 3 years to satisfy the requirements of
clause (i), except for the award year immediately
preceding renewal of the institution's eligibility
under section 498(g);
* * * * * * *
(d) Definition of Eligible Institution.--For the purpose of
this section, the term ``eligible institution'' means any such
institution described in section [102] 101 of this Act.
* * * * * * *
(f) Implementation of Non-Title IV Revenue Requirement.--
(1) Calculation.--In carrying out subsection (a)(24),
an institution shall use the cash basis of accounting
and count the following funds toward the 10 percent of
revenues from sources of funds other than funds
provided under this title:
(A) funds used by students to pay tuition,
fees, and other institutional charges from
sources other than funds provided under this
title as long as the institution can reasonably
demonstrate that such funds were used for such
purposes;
(B) institutional funds used to satisfy
matching-fund requirements for programs under
this title;
(C) funds from savings plans for educational
expenses established pursuant to the Internal
Revenue Code of 1986;
(D) 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, so long as the program is approved
or licensed by the appropriate State agency or
an accrediting agency recognized by the
Secretary; and
(E) institutional aid, as follows:
(i) in the case of institutional
loans, only the amount of loan
repayments received during the fiscal
year; and
(ii) in the case of institutional
scholarships, only those 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 the
fiscal year from an established
restricted account, and only to the
extent that the funds in that account
represent designated funds from an
outside source or from income earned on
those funds.
(2) Sanctions.--An institution that fails to meet the
requirements of subsection (a)(24) for 3 consecutive
years shall become ineligible to participate in the
programs authorized by this title. In addition to such
other means of enforcing the requirements of this title
as may be available to the Secretary, if an institution
fails to meet the requirements of subsection (a)(24) in
any year, the Secretary may impose one or more of the
following sanctions on the institution:
(A) Place the institution on provisional
certification in accordance with section 498(h)
until the institution demonstrates, to the
satisfaction of the Secretary, that it is in
compliance with subsection (a)(24).
(B) Require such other increased monitoring
and reporting requirements as the Secretary
determines necessary until the institution
demonstrates, to the satisfaction of the
Secretary, that it is in compliance with
subsection (a)(24).
(3) Publication on cool website.--The Secretary shall
identify, on the College Opportunities On-Line website
under section 131(b), any institution that fails to
meet the requirements of subsection (a)(24) in any year
as an institution that is failing to meet the minimum
non-Federal source of revenue requirements of that
subsection.
SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.
(a) Quality Assurance Program.--
(1) * * *
* * * * * * *
(5) Review and evaluation.--The Secretary shall
review and evaluate the Quality Assurance Program
conducted by each participating institution and, on the
basis of that evaluation, make recommendations
regarding amendments to this Act that will streamline
the administration and enhance the integrity of Federal
student assistance programs. Such recommendations shall
be submitted to the [Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives]
authorizing committees.
(b) Regulatory Improvement and Streamlining Experiments.--
(1) In general.--The Secretary may continue any
experimental sites in existence on the date of
enactment of the [Higher Education Amendments of 1998]
College Access and Opportunity Act of 2005. [Any
activities approved by the Secretary prior to such date
that are inconsistent with this section shall be
discontinued not later than June 30, 1999.]
(2) Report.--The Secretary shall review and evaluate
the experience of institutions participating as
experimental sites during the period of [1993 through
1998] 1998 through 2004 under this section [(as such
section was in effect on the day before the date of
enactment of the Higher Education Amendments of 1998)],
and shall submit a report based on this review and
evaluation to the [Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives]
authorizing committees not later than 6 months after
the enactment of the [Higher Education Amendments of
1998.] College Access and Opportunity Act of 2005. Such
report shall include--
(A) * * *
* * * * * * *
(3) Selection.--
(A) In general.--[Upon the submission of the
report required by paragraph (2), the Secretary
is authorized to select a limited number of
additional institutions for voluntary
participation] The Secretary is authorized to
continue the voluntary participation of
institutions participating as of July 1, 2005,
as experimental sites to provide
recommendations to the Secretary on the impact
and effectiveness of proposed regulations or
new management initiatives, and shall continue
the participation of any such institution
unless the Secretary determines that such
institution's participation has not been
successful in carrying out the purposes of this
section.
(B) Consultation.--Prior to approving any
additional experimental sites, the Secretary
shall consult with the [Committee on Labor and
Human Resources of the Senate and the Committee
on Education and the Workforce of the House of
Representatives] authorizing committees and
shall provide to such Committees--
(i) * * *
* * * * * * *
SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
(a) * * *
* * * * * * *
(c) Membership.--(1) * * *
* * * * * * *
(3) The appointment of members under subparagraphs (A) and
(B) of paragraph (1) shall be effective upon publication of the
appointment in the Congressional Record.
* * * * * * *
(h) Personnel and Resources.--(1) The Advisory Committee may
appoint such personnel as may be determined necessary by the
Chairman without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service,
and may be paid without regard to the provisions of chapter 51
and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, but no
individual so appointed shall be paid in excess of [the rate
authorized for GS-18 of the General Schedule] the maximum rate
payable under section 5376 of such title. The Advisory
Committee may appoint not more than 1 full-time equivalent,
nonpermanent, consultant without regard to the provisions of
title 5, United States Code. The Advisory Committee shall not
be required by the Secretary to reduce personnel to meet agency
personnel reduction goals.
* * * * * * *
(k) Term of the Committee.--Notwithstanding the sunset and
charter provisions of the Federal Advisory Committee Act (5
U.S.C. App. I) or any other statute or regulation, the Advisory
Committee shall be authorized until October 1, [2004] 2011.
* * * * * * *
[SEC. 493A. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT.
[(a) Preparations for Year 2000.--In order to ensure that the
processing, delivery, and administration of grant, loan, and
work assistance provided under this title is not interrupted
due to operational problems related to the inability of
computer systems to indicate accurately dates after December
31, 1999, the Secretary of Education shall--
[(1) take such actions as are necessary to ensure
that all internal and external systems, hardware, and
data exchange infrastructure administered by the
Department that are necessary for the processing,
delivery, and administration of the grant, loan, and
work assistance are Year 2000 compliant by March 31,
1999, such that there will be no business interruption
after December 31, 1999;
[(2) ensure that the Robert T. Stafford Federal
Student Loan Program and the William D. Ford Federal
Direct Loan Program are equal in level of priority with
respect to addressing, and that resources are managed
to equally provide for successful resolution of, the
Year 2000 computer problem in both programs by December
31, 1999;
[(3) work with the Department's various data exchange
partners under this title to fully test all data
exchange routes for Year 2000 compliance via end-to-end
testing, and submit a report describing the parameters
and results of such tests to the Comptroller General
not later than March 31, 1999;
[(4) ensure that the Inspector General of the
Department (or an external, independent entity selected
by the Inspector General) performs and publishes a risk
assessment of the systems and hardware under the
Department's management, that has been reviewed by an
independent entity, and make such assessment publicly
available not later than 60 days after the date of
enactment of the Higher Education Amendments of 1998;
[(5) not later than June 30, 1999, ensure that the
Inspector General (or an external, independent entity
selected by the Inspector General) conducts a review of
the Department's Year 2000 compliance for the
processing, delivery, and administration of grant,
loan, and work assistance, and submits a report
reflecting the results of that review to the
Chairperson of the Committee on Labor and Human
Resources of the Senate and the Chairperson of the
Committee on Education and the Workforce of the House
of Representatives;
[(6) develop a contingency plan to ensure the
programs under this title will continue to run
uninterrupted in the event of widespread disruptions in
the flow of accurate computerized data, which
contingency plan shall include a prioritization of
mission critical systems and strategies to allow data
partners to transfer data through alternate means; and
[(7) alert Congress at the earliest possible time if
mission critical deadlines will not be met.
[(b) Postponement Authority for the Year 2000.--
[(1) Purpose.--It is the purpose of this subsection
to
provide the Secretary with the flexibility necessary
to--
[(A) ensure that the resources and
capabilities of institutions, lenders, and
guaranty agencies are not overburdened by the
combination of student aid processing and
delivery requirements added or modified by the
amendments made by the Higher Education
Amendments of 1998 and by the changes required
to ensure that the systems of the institutions,
lenders and guaranty agencies are Year 2000
compliant; and
[(B) avoid the disruption of grant, loan, or
work assistance funds awarded to students
because of Year 2000 compliance problems at a
substantial number of institutions, lenders,
and guaranty agencies.
[(2) Authority to postpone.--The Secretary may
postpone, for a period of time described in paragraph
(3), the implementation of any requirements under part
B, D, E, or G that are added or modified by the
amendments made by the Higher Education Amendments of
1998 related to the processing or delivery of grant,
loan, and work assistance (which shall not include the
determination of need for such assistance) provided
under this title, if the Secretary--
[(A) determines that--
[(i) implementation of such
requirements would require extensive
changes to the existing systems of
institutions, lenders, or guaranty
agencies; and
[(ii) postponement is necessary to
avoid jeopardizing the ability of a
substantial number of institutions,
lenders, or guaranty agencies to ensure
that all of the systems of the
institutions, lenders, or guaranty
agencies related to the processing or
delivery of such assistance function
successfully after December 31, 1999;
and
[(B) promptly publishes in the Federal
Register a list of, and notifies Congress of,
any provisions, the implementation of which the
Secretary intends to postpone, with the reasons
for such postponement.
[(3) Exceptions to authority.--The Secretary may not
postpone the implementation of one or more provisions
described in this subsection longer than the earlier
of--
[(A) the period of time that the Secretary
determines necessary to ensure that the
processing and delivery systems of the
institutions, lenders, and guaranty agencies
referred to in paragraph (1)(A)(ii) are capable
of functioning successfully after December 31,
1999; or
[(B) one award year after the effective date
applicable to such provision under the Higher
Education Amendments of 1998.]
Subpart 2--Accrediting Agency Recognition
SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.
(a) Criteria Required.--No accrediting agency or association
may be determined by the Secretary to be a reliable authority
as to the quality of education or training offered for the
purposes of this Act or for other Federal purposes, unless the
agency or association meets criteria established by the
Secretary pursuant to this section. The Secretary shall, after
notice and opportunity for a hearing, establish criteria for
such determinations. Such criteria shall include an appropriate
measure or measures of student achievement. Such criteria shall
require that--
(1) * * *
* * * * * * *
(3) if such agency or association is an agency or
association described in--
(A) subparagraph (A)(i) of paragraph (2),
then such agency or association is separate and
independent, both administratively and
financially of any related, associated, or
affiliated trade association or membership
organization; or
[(B) subparagraph (B) of paragraph (2), then
such agency or association has been recognized
by the Secretary on or before October 1, 1991;
or]
[(C)] (B) subparagraph (C) of paragraph (2)
and such agency or association has been
recognized by the Secretary on or before
October 1, 1991, then the Secretary may waive
the requirement that such agency or association
is separate and independent, both
administratively and financially of any
related, associated, or affiliated trade
association or membership organization upon a
demonstration that the existing relationship
has not served to compromise the independence
of its accreditation process;
(4)(A) such agency or association consistently
applies and enforces standards that consider the stated
missions of institutions of higher education, including
such missions as inculcation of religious values, and
that ensure that the courses or programs of
instruction, training, or study offered by the
institution of higher education, including distance
education 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 already has or
seeks to include within its scope of recognition the
evaluation of the quality of institutions or programs
offering distance education, such agency or association
shall, in addition to meeting the other requirements of
this subpart, demonstrate to the Secretary that--
(i) the accreditation agency's or
association's standards effectively address the
quality of an institution's distance education
programs in the areas identified in paragraph
(5) of this subsection, except that the agency
or association shall not be required to have
separate standards, procedures, or policies for
the evaluation of distance education
institutions or programs in order to meet the
requirements of this subparagraph; and
(ii) the agency or association requires that
an institution that offers distance education
programs to have processes by which it
establishes that the student who registers in a
distance education course or program is the
same student who participates, completes
academic work, and receives academic credit;
(5) the standards for accreditation of the agency or
association assess the institution's--
[(A) success with respect to student
achievement in relation to the institution's
mission, including, as appropriate,
consideration of course completion, State
licensing examinations, and job placement
rates;]
(A) success with respect to student
achievement in relation to the institution's
mission, including, as appropriate,
consideration of student academic achievement
as determined by the institution (in accordance
with standards of the accrediting agency or
association), retention, course and program
completion, State licensing examinations, and
job placement rates, and other student
performance information selected by the
institution, particularly that information used
by the institution to evaluate or strengthen
its programs;
* * * * * * *
[(E) fiscal and administrative capacity as
appropriate to the specified scale of
operations;]
(E) fiscal, administrative capacity, as
appropriate to the specified scale of
operations, and, for an agency or association
where its approval for such institution
determines eligibility for student assistance
under this title, board governance, within the
context of the institution's mission;
* * * * * * *
[(6) such agency or association shall apply
procedures throughout the accrediting process,
including evaluation and withdrawal proceedings, that
comply with due process, including--
[(A) adequate specification of requirements
and deficiencies at the institution of higher
education or program being examined;
[(B) notice of an opportunity for a hearing
by any such institution;
[(C) the right to appeal any adverse action
against any such institution; and
[(D) the right to representation by counsel
for any such institution;]
(6) such an agency or association shall establish and
apply review procedures throughout the accrediting
process, including evaluation and withdrawal
proceedings that comply with due process that provides
for--
(A) adequate specification of requirements
and deficiencies at the institution of higher
education or program being examined;
(B) an opportunity for a written response by
any such institution to be included in the
evaluation and withdrawal proceedings;
(C) upon the written request of an
institution, an opportunity for the institution
to appeal any adverse action at a hearing prior
to such action becoming final before an appeals
panel that--
(i) shall not include current members
of the agency or association's
underlying decision-making body that
made the adverse decision; and
(ii) is subject to a conflict of
interest of policy; and
(D) the right to representation by counsel
for an such institution;
* * * * * * *
[(8) such agency or association shall make available
to the public, upon request, and to the Secretary, and
the State licensing or authorizing agency a summary of
any review resulting in a final accrediting decision
involving denial, termination, or suspension of
accreditation, together with the comments of the
affected institution.]
(8) such agency or association shall make available
to the public and submit to the Secretary and the State
licensing or authorizing agency, together with the
comments of the affected institution, a summary of
agency or association actions, involving--
(A) final denial, withdrawal, suspension, or
termination of accreditation; and
(B) any other final adverse action taken with
respect to an institution.
* * * * * * *
(c) Operating Procedures Required.--No accrediting agency or
association may be recognized by the Secretary as a reliable
authority as to the quality of education or training offered by
an institution seeking to participate in the programs
authorized under this title, unless the agency or association--
(1) performs, at regularly established intervals, on-
site inspections and reviews of institutions of higher
education (which may include unannounced site visits)
with particular focus on educational quality and
program effectiveness, and ensures that accreditation
team members are well-trained and knowledgeable with
respect to their responsibilities (including those
regarding distance education);
* * * * * * *
(5) maintains and makes publicly available written
materials regarding standards and procedures for
accreditation, appeal procedures, and the accreditation
status of each institution subject to its jurisdiction;
[and]
(6) discloses publicly whenever an institution of
higher education subject to its jurisdiction is being
considered for accreditation or reaccreditation[.];
(7) ensures that its onsite comprehensive reviews for
accreditation or reaccreditation include evaluation of
the substance of the information required in
subparagraph (H) of section 485(a)(1);
(8) confirms as a part of its review for
accreditation or reaccreditation that the institution
has transfer policies--
(A) that are publicly disclosed; and
(B) that do not deny transfer of credit based
solely on the accreditation of the sending
institution as long as the association or
agency is recognized by the Secretary pursuant
to section 496;
(9) develops a brief summary, available to the
public, of final adverse actions in accordance with the
requirements of subsection (a)(8);
(10) monitors the enrollment growth of distance
education to ensure that an institution experiencing
signficant growth has the capacity to serve its
students effectively;
(11) discloses publicly, on the agency's website or
through other similar dissemination--
(A) a list of the individuals who comprised
the evaluation teams during the prior calendar
year for each agency or association and the
title and institutional affiliation of such
individuals, although such list shall not be
required to identify those individuals who
comprised the evaluation team used for any
specific institution;
(B) a description of the agency's or
association's process for selecting, preparing,
and evaluating such individuals; and
(C) any statements related to the
accreditation responsibilities of such
individuals; and
(12) reviews the record of student complaints
resulting from the student information process
described in section 485(a)(1)(J).
* * * * * * *
(j) Impact of Loss of Accreditation.--An institution may not
be certified or recertified as an institution of higher
education under [section 102] section 101 and subpart 3 of this
part or participate in any of the other programs authorized by
this Act if such institution--
(1) * * *
* * * * * * *
(k) Religious Institution Rule.--Notwithstanding subsection
(j), the Secretary shall allow an institution that has had its
accreditation withdrawn, revoked, or otherwise terminated, or
has voluntarily withdrawn from an accreditation agency, to
remain certified as an institution of higher education under
[section 102] section 101 and subpart 3 of this part for a
period sufficient to allow such institution to obtain
alternative accreditation, if the Secretary determines that the
reason for the withdrawal, revocation, or termination--
(1) * * *
* * * * * * *
(l) Limitation, Suspension, or Termination of Recognition.--
(1) * * *
* * * * * * *
(3) The Secretary shall provide an annual report to Congress
on the status of any agency or association for which the
Secretary has limited, suspended or terminated recognition
under this subsection.
Subpart 3--Eligibility and Certification Procedures
SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) * * *
* * * * * * *
(c) Financial Responsibility Standards.--(1) * * *
(2) Notwithstanding paragraph (1), if an institution fails to
meet criteria prescribed by the Secretary regarding ratios that
demonstrate financial responsibility, then the institution
shall provide the Secretary with satisfactory evidence of its
financial responsibility in accordance with paragraph (3). Such
criteria shall take into account any differences in generally
accepted accounting principles, and the financial statements
required thereunder, that are applicable to [for profit,] for-
profit, public, and nonprofit institutions. The Secretary shall
take into account an institution's total financial
circumstances in making a determination of its ability to meet
the standards herein required.
(d) Administrative Capacity Standard.--The Secretary is
authorized--
(1) to establish procedures and requirements relating
to the administrative capacities of institutions of
higher education, including--
(A) * * *
(B) maintenance of records; and
* * * * * * *
(g) Time Limitations on, and Renewal of, Eligibility.--
(1) * * *
* * * * * * *
(3) Institutions outside the united states.--The
Secretary shall promulgate regulations regarding the
recertification requirements applicable to an
institution of higher education outside of the United
States that meets the requirements of [section
102(a)(1)(C)] section 102 and received less than
$500,000 in funds under part B for the most recent year
for which data are available.
* * * * * * *
(i) Treatment of Changes of Ownership.--(1) An eligible
institution of higher education that has had a change in
ownership resulting in a change of control shall not qualify to
participate in programs under this title after the change in
control (except as provided in paragraph (3)) unless it
establishes that it meets the requirements of [section 102]
section 101 (other than the requirements in subsections (b)(5)
and (c)(3)) and this section after such change in control.
* * * * * * *
(j) Treatment of Branches.--(1) A branch of an eligible
institution of higher education, as defined pursuant to
regulations of the Secretary, shall be certified under this
subpart before it may participate as part of such institution
in a program under this title, [except that such branch shall
not be required to meet the requirements of sections
102(b)(1)(E) and 102(c)(1)(C) prior to seeking such
certification] except that such branch shall not be required to
be in existence for at least 2 years prior to seeking such
certification. Such branch is required to be in existence at
least 2 years after the branch is certified by the Secretary as
a branch campus participating in a program under this title,
prior to seeking certification as a main campus or free-
standing institution.
SEC. 498A. PROGRAM REVIEW AND DATA.
(a) * * *
(b) Special Administrative Rules.--In carrying out paragraphs
(1) and (2) of subsection (a) and any other relevant provisions
of this title, the Secretary shall--
(1) * * *
* * * * * * *
(4) base any civil penalty assessed against an
institution of higher education resulting from a
program review or audit on the gravity of the
violation, failure, or misrepresentation; [and]
(5) inform the appropriate State and accrediting
agency or association whenever the Secretary takes
action against an institution of higher education under
this section, section 498, or section 432[.];
(6) provide to the institution adequate opportunity
to review and respond to any program review report or
audit finding and underlying materials related thereto
before any final program review or audit determination
is reached;
(7) review and take into consideration the
institution's response in any final program review or
audit determination, and include in the final
determination--
(A) a written statement addressing the
institution's response and stating the basis
for such final determination; and
(B) a copy of the institution's statement in
response, appropriately redacted to protect
confidential information;
(8) maintain and preserve at all times the
confidentiality of any program review report or audit
finding until the requirements of paragraphs (6) and
(7) are met, and until a final program review or audit
determination has been issued, except to the extent
required to comply with paragraph (5), provided,
however, that the Secretary shall promptly disclose any
and all program review reports and audit findings to
the institution under review; and
(9) require that the authority to approve or issue
any program review report or audit finding, preliminary
or otherwise, that contains any finding, determination,
or proposed assessment that exceeds or may exceed
$500,000 in liabilities shall not be delegated to any
official beyond the Chief Operating Officer of Federal
Student Aid.
* * * * * * *
SEC. 498B. REVIEW OF REGULATIONS.
(a) * * *
(b) Regulatory and Statutory Relief for Small Volume
Institutions.--The Secretary shall review and evaluate ways in
which regulations under and provisions of this Act affecting
institution of higher education (other than institutions
described in [section 102(a)(1)(C)] section 102), that have
received in each of the two most recent award years prior to
the date of the enactment of the Higher Education Amendments of
1998 less than $200,000 in funds through this title, may be
improved, streamlined, or eliminated.
* * * * * * *
(d) Reports to Congress.--
(1) In general.--The Secretary shall submit, not
later than 1 year after the date of the enactment of
the Higher Education Amendments of 1998, a report to
the [Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce
of the House of Representatives] authorizing committees
detailing the Secretary's findings and recommendations
based on the reviews conducted under subsections (a)
and (b), including a timetable for implementation of
any recommended changes in regulations and a
description of any recommendations for legislative
changes.
(2) Additional reports.--Not later than January 1,
2003, the Secretary shall submit a report to the
[Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the
House of Representatives] authorizing committees
detailing the Secretary's findings and recommendations
based on the review conducted under subsection (a),
including a timetable for implementation of any
recommended changes in regulations and a description of
any recommendations for legislative changes.
SEC. 499. REPORT TO CONGRESS ON PREVENTION OF FRAUD AND ABUSE IN
STUDENT FINANCIAL AID PROGRAMS.
(a) Purpose.--It is the purpose of this section to require
the Secretary to commission a nonpartisan, comprehensive study
on the prevention of fraud and abuse in title IV student
financial aid programs, and to report the results of such study
to Congress.
(b) Scope of Report.--The study under this section shall
thoroughly identify and address the following:
(1) The impact of fraud and abuse in title IV student
financial aid programs upon students and taxpayers, and
the nature of such fraud and abuse.
(2) The effectiveness of existing policies and
requirements under this Act that were put in place to
prevent fraud and abuse in title IV student financial
aid programs, and how such policies and requirements
should be improved.
(3) The extent to which existing protections against
fraud and abuse under this Act are adequately enforced,
and how enforcement should be strengthened.
(4) Areas in which additional information is needed
to assess the effectiveness of current protections and
enforcement against fraud and abuse.
(5) Existing policies and requirements under this Act
aimed at fraud and abuse that are ineffective, hinder
innovation, or could be eliminated without reducing
effectiveness.
(6) New policies and enforcement, particularly those
suited for the current higher education marketplace,
needed to protect against fraud and abuse in title IV
student financial aid programs.
(7) The extent to which States are implementing
regulations to protect students from fraud and abuse,
and whether changes to Federal law will preempt such
regulations.
(c) Report.--Not later than December 31, 2007, the Secretary,
after an opportunity for both the Secretary and the Inspector
General of the Department of Education to review the results of
the study, shall transmit to Congress a report on the study
conducted under this section. Such report shall--
(1) include clear and specific recommendations for
legislative and regulatory actions that are likely to
significantly reduce the fraud and abuse in title IV
student financial aid programs identified under
subsection (b); and
(2) include both the Secretary's and the Inspector
General's comments on the report.
TITLE V--DEVELOPING INSTITUTIONS
PART A--HISPANIC-SERVING INSTITUTIONS
* * * * * * *
SEC. 502. DEFINITIONS; ELIGIBILITY.
(a) Definitions.--For the purpose of this title:
(1) * * *
(2) Eligible institution.--The term ``eligible
institution'' means--
(A) an institution of higher education--
(i) * * *
* * * * * * *
(v) which provides a program of not
less than 2 years that is acceptable
for full credit toward a bachelor's
degree;
[(v)] (vi) that meets such other
requirements as the Secretary may
prescribe; and
[(vi)] (vii) that is located in a
State; and
* * * * * * *
(5) Hispanic-serving institution.--The term
``Hispanic-serving institution'' means an institution
of higher education that--
(A) is an eligible institution; and
(B) at the time of application, has an
enrollment of undergraduate full-time
equivalent students that is at least 25 percent
Hispanic students[; and] at the end of the
award year immediately preceding the date of
application.
[(C) provides assurances that not less than
50 percent of the institution's Hispanic
students are low-income individuals, which
assurances--
[(i) may employ statistical
extrapolation using appropriate data
from the Bureau of the Census or other
appropriate Federal or State sources;
and
[(ii) the Secretary shall consider as
meeting the requirements of this
subparagraph, unless the Secretary
determines, based on a preponderance of
the evidence, that the assurances do
not meet the requirements.]
* * * * * * *
[(7) Low-income individual.--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. 503. AUTHORIZED ACTIVITIES.
(a) * * *
(b) Authorized Activities.--Grants awarded under this section
shall be used for one or more of the following activities:
(1) * * *
[(2) Construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities.]
(2) 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.
* * * * * * *
(5) Education or counseling services designed to
improve the financial literacy and economic literacy of
students and, as appropriate, their parents.
[(5)] (6) Tutoring, counseling, and student service
programs designed to improve academic success.
[(6)] (7) Funds management, administrative
management, and acquisition of equipment for use in
strengthening funds management.
[(7)] (8) Joint use of facilities, such as
laboratories and libraries.
[(8)] (9) Establishing or improving a development
office to strengthen or improve contributions from
alumni and the private sector.
[(9)] (10) Establishing or improving an endowment
fund.
[(10)] (11) Creating or improving facilities for
Internet or other distance learning academic
instruction capabilities, including purchase or rental
of telecommunications technology equipment or services.
[(11)] (12) Establishing or enhancing a program of
teacher education designed to qualify students to teach
in public elementary schools and secondary schools.
[(12) 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.]
(13) Establishing community outreach programs and
collaborative partnerships between Hispanic-serving
institutions and local elementary or secondary schools.
Such partnerships may include mentoring, tutoring, or
other instructional opportunities that will boost
student academic achievement and assist elementary and
secondary school students in developing the academic
skills and the interest to pursue postsecondary
education.
[(13)] (14) Expanding the number of Hispanic and
other underrepresented graduate and professional
students that can be served by the institution by
expanding courses and institutional resources.
[(14)] (15) Other activities proposed in the
application submitted pursuant to section 504 that--
(A) * * *
* * * * * * *
SEC. 504. DURATION OF GRANT.
[(a) Award Period.--
[(1) In general.--The Secretary]
(a) Award Period.--The Secretary may award a grant to a
Hispanic-serving institution under this title for 5 years.
[(2) Waitout period.--A Hispanic-serving institution
shall not be eligible to secure a subsequent 5-year
grant award under this title until 2 years have elapsed
since the expiration of the institution's most recent
5-year grant award under this title, except that for
the purpose of this subsection a grant under section
514(a) shall not be considered a grant under this
title.]
* * * * * * *
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 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
competitive grants to Hispanic-serving institutions determined
by the Secretary to be making substantive contributions to
graduate educational opportunities for Hispanic students.
(b) Eligibility.--For the purposes of this part, an
``eligible institution'' means an institution of higher
education that--
(1) is an eligible institution under section
502(a)(2); and
(2) offers a postbaccalaureate certificate or 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 needy postbaccalaureate students
including outreach, academic support services,
mentoring, scholarships, fellowships, and other
financial assistance to permit the enrollment of such
students in postbaccalaureate certificate and 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 learning academic instruction
capabilities, including purchase or rental of
telecommunications technology equipment or services.
(7) Collaboration with other institutions of higher
education to expand postbaccalaureate certificate and
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 determined by the
Secretary. Such application shall demonstrate how the grant
funds will be used to improve postbaccalaureate education
opportunities in programs and professions in which Hispanic
Americans are underrepresented.
(b) Duration.--Grants under this part shall be awarded for a
period not to exceed 5 years.
(c) Limitation.--The Secretary shall not award more than one
grant under this part in any fiscal year to any Hispanic-
serving institution.
PART [B] C--GENERAL PROVISIONS
SEC. [511] 521. ELIGIBILITY; APPLICATIONS.
(a) * * *
* * * * * * *
(c) Contents.--A Hispanic-serving institution, in the
institution's application for a grant, shall--
(1) * * *
[(2) include a 5-year plan for improving the
assistance provided by the Hispanic-serving institution
to Hispanic students and other low-income individuals;]
[(3)] (2) set forth policies and procedures to ensure
that Federal funds made available under this title for
any fiscal year will be used to supplement and, to the
extent practical, increase the funds that would
otherwise be made available for the purposes of section
501(b), and in no case supplant those funds;
[(4)] (3) set forth policies and procedures for
evaluating the effectiveness in accomplishing the
purpose of the activities for which a grant is sought
under this title;
[(5)] (4) provide for such fiscal control and fund
accounting procedures as may be necessary to ensure
proper disbursement of and accounting for funds made
available to the institution under this title;
[(6)] (5) provide that the institution will comply
with the limitations set forth in section 516;
[(7)] (6) describe in a comprehensive manner any
proposed project for which funds are sought under the
application and include--
(A) * * *
* * * * * * *
(7) contain such assurances as the Secretary may
require that the institution has an enrollment of needy
students as required by section 502(b);
* * * * * * *
SEC. [512] 522. WAIVER AUTHORITY AND REPORTING REQUIREMENT.
(a) * * *
* * * * * * *
SEC. [513] 523. APPLICATION REVIEW PROCESS.
(a) * * *
* * * * * * *
SEC. [514] 524. COOPERATIVE ARRANGEMENTS.
(a) General Authority.--The Secretary may make grants to
encourage cooperative arrangements with funds available to
carry out this title, between Hispanic-serving institutions
eligible for assistance under this title, and between such
institutions and institutions not receiving assistance under
this title, for the activities described in section 503 and
section 513 so that the resources of the cooperating
institutions might be combined and shared in order to achieve
the purposes of this title, to avoid costly duplicative
efforts, and to enhance the development of Hispanic-serving
institutions.
* * * * * * *
(c) Duration.--Grants to Hispanic-serving institutions having
a cooperative arrangement may be made under this section for a
period determined under [section 505] section 504.
SEC. [515] 525. ASSISTANCE TO INSTITUTIONS UNDER OTHER PROGRAMS.
(a) * * *
* * * * * * *
SEC. [516] 526. LIMITATIONS.
The funds appropriated under section 518 may not be used--
(1) * * *
* * * * * * *
SEC. [517] 527. PENALTIES.
Whoever, being an officer, director, agent, or employee of,
or connected in any capacity with, any recipient of Federal
financial assistance or grant pursuant to this title embezzles,
willfully misapplies, steals, or obtains by fraud any of the
funds that are the subject of such grant or assistance, shall
be fined not more than $10,000 or imprisoned for not more than
2 years, or both.
SEC. [518] 528. AUTHORIZATIONS OF APPROPRIATIONS.
[(a) Authorizations.--There are authorized to be appropriated
to carry out this title $62,500,000 for fiscal year 1999 and
such sums as may be necessary for each of the 4 succeeding
fiscal years.]
(a) Authorizations.--
(1) Part a.--There are authorized to be appropriated
to carry out part A and part C of this title
$96,000,000 for fiscal year 2006 and such sums as may
be necessary for each of the 5 succeeding fiscal years.
(2) Part b.--There are authorized to be appropriated
to carry out part B of this title $59,000,000 for
fiscal year 2006 and such sums as may be necessary for
each of the 5 succeeding fiscal years.
* * * * * * *
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
SEC. 601. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds as follows:
(1) * * *
* * * * * * *
(3) Dramatic [post-Cold War] changes in the world's
geopolitical and economic landscapes are creating needs
for American expertise and knowledge about a greater
diversity of less commonly taught foreign languages and
nations of the world.
(4) The events and aftermath of September 11, 2001,
have underscored the need for the Nation to strengthen
and enhance American knowledge of international
relations, world regions, and foreign languages.
Homeland security and effective United States
engagement abroad depend upon an increased number of
Americans who have received such training and are
willing to serve their Nation.
[(4)] (5) Systematic efforts are necessary to enhance
the capacity of institutions of higher education in the
United States for--
(A) * * *
* * * * * * *
[(5)] (6) Cooperative efforts among the Federal
Government, institutions of higher education, and the
private sector are necessary to promote the generation
and dissemination of information about world regions,
foreign languages, and international affairs throughout
education, government, business, civic, and nonprofit
sectors in the United States.
(b) Purposes.--The purposes of this part are--
(1)(A) * * *
* * * * * * *
(D) to promote access to research and training
overseas[; and], including through linkages overseas
with institutions of higher education and relevant
organizations that contribute to the educational
programs assisted under this part;
(E) to advance the internationalization of a variety
of disciplines throughout undergraduate and graduate
education; and
(F) to assist the national effort to educate and
train citizens to participate in the efforts of
homeland security;
* * * * * * *
(3) to reinforce and coordinate the programs of the
Federal Government in the areas of foreign language,
area studies, and other international studies,
including professional international affairs education
and research, and international business and trade
competitiveness.
SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND
PROGRAMS.
(a) National Language and Area Centers and Programs
Authorized.--
(1) Centers and programs.--
[(A) In general.--The Secretary is
authorized--
[(i) to make grants to institutions
of higher education, or combinations
thereof, for the purpose of
establishing, strengthening, and
operating comprehensive foreign
language and area or international
studies centers and programs; and
[(ii) to make grants to such
institutions or combinations for the
purpose of establishing, strengthening,
and operating a diverse network of
undergraduate foreign language and area
or international studies centers and
programs.]
(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.
* * * * * * *
(2) Authorized activities.--Any such grant may be
used to pay all or part of the cost of establishing or
operating a center or program, including the cost of--
(A) * * *
* * * * * * *
(G) summer institutes in the United States or
abroad designed to provide language and area
training in the center's field or topic; [and]
(H) support for faculty, staff, and student
travel in foreign areas, regions, or countries,
and for the development and support of
educational programs abroad for students[.];
(I) supporting instructors of the less
commonly taught languages;
(J) widely disseminating materials developed
by the center or program to local educational
agencies and public and private elementary and
secondary education schools, and institutions
of higher education, presented from diverse
perspectives and reflective of a wide range of
views on the subject matter, except that no
more than 50 percent of funds awarded to an
institution of higher education or consortia of
such institutions for purposes under this title
may be associated with the costs of
dissemination; and
(K) projects that support in students an
understanding of science and technology in
coordination with foreign language proficiency.
* * * * * * *
(4) Outreach grants and summer institutes.--The
Secretary may make additional grants to centers
described in paragraph (1) for any one or more of the
following purposes:
(A) * * *
[(B) Programs of linkage or outreach with 2-
and 4-year colleges and universities.]
(B) Partnerships or programs of linkage and
outreach with 2-year and 4-year colleges and
universities, including colleges of education
and teacher professional development programs.
(C) Partnerships with local educational
agencies and public and private elementary and
secondary education schools that are designed
to increase student academic achievement in
foreign language and knowledge of world
regions, and to facilitate the wide
dissemination of materials related to area
studies, foreign languages, and international
studies that are reflective of a wide range of
views on the subject matter.
[(C) Programs of linkage or outreach] (D)
Partnerships or programs of linkage and
outreach with departments or agencies of
Federal and State governments.
[(D)] (E) Programs of linkage or outreach
with the news media, business, professional, or
trade associations.
[(E)] (F) Summer institutes in [foreign area]
area studies, foreign language, and other
international fields designed to carry out the
programs [of linkage and outreach] described in
subparagraphs (A), (B), [(C), and (D)] (D), and
(E).
* * * * * * *
SEC. 603. LANGUAGE RESOURCE CENTERS.
(a) Language Resource Centers Authorized.--The Secretary is
authorized to make grants to and enter into contracts with
institutions of higher education, or [combinations] consortia
of such institutions, for the purpose of establishing,
strengthening, and operating a small number of national
language resource and training centers, which shall serve as
resources to improve the capacity to teach and learn foreign
languages effectively.
* * * * * * *
(c) Conditions for Grants.--Grants under this section shall
reflect the purposes of this part and be made on such
conditions as the Secretary determines to be necessary to carry
out the provisions of this section.
SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE
PROGRAMS.
(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate
International Studies and Foreign Language Programs.--
(1) Authority.--The Secretary is authorized to make
grants to institutions of higher education,
[combinations] consortia of such institutions, or
partnerships between nonprofit educational
organizations and institutions of higher education, to
assist such institutions, [combinations] consortia or
partnerships in planning, developing, and carrying out
programs to improve undergraduate instruction in
international studies and foreign languages. Such
grants shall be awarded to institutions, [combinations]
consortia or partnerships seeking to create new
programs or to strengthen existing programs in foreign
languages, area studies, and other international
fields.
(2) Use of funds.--Grants made under this section may
be used for Federal share of the cost of projects and
activities which are an integral part of such a
program, such as--
(A) * * *
(B) teaching, research, curriculum
development,
faculty training in the United States or
abroad, and other related activities,
including--
(i) the expansion of library and
teaching resources; and
(ii) preservice and inservice
[teacher training] teacher professional
development;
* * * * * * *
(I) the provision of grants for educational
programs abroad that are closely linked to the
program's overall goals and have the purpose of
promoting foreign language fluency and
knowledge of world regions, except that not
more than 10 percent of a grant recipient's
funds may be used for this purpose;
[(I)] (J) the development of programs
designed to integrate professional and
technical education with foreign languages,
area studies, and other international fields;
[(J)] (K) the establishment of linkages
overseas with institutions of higher education
and organizations that contribute to the
educational programs assisted under this
subsection;
[(K)] (L) the conduct of summer institutes in
foreign area, foreign language, and other
international fields to provide faculty and
curriculum development, including the
integration of professional and technical
education with foreign area and other
international studies, and to provide foreign
area and other international knowledge or
skills to government personnel or private
sector professionals in international
activities;
[(L)] (M) the development of partnerships
between--
(i) institutions of higher education;
and
(ii) the private sector, government,
or [elementary and secondary education
institutions] local educational
agencies and public and private
elementary and secondary education
schools,
in order to enhance international knowledge and
skills; and
[(M)] (N) the use of innovative technology to
increase access to international education
programs.
* * * * * * *
(4) Special rule.--The Secretary may waive or reduce
the required non-Federal share for institutions that--
(A) are eligible to receive assistance under
part A or B of title III or under title V; and
(B) have submitted a grant application under
this section that demonstrates a need for a
waiver or reduction.
(5) Priority.--In awarding grants under this section,
the Secretary shall give priority to applications from
institutions of higher education, [combinations]
consortia or partnerships that require entering
students to have successfully completed at least 2
years of secondary school foreign language instruction
or that require each graduating student to earn 2 years
of postsecondary credit in a foreign language (or have
demonstrated equivalent competence in the foreign
language) or, in the case of a 2-year degree granting
institution, offer 2 years of postsecondary credit in a
foreign language.
(6) Grant conditions.--Grants under this subsection
shall reflect the purposes of this part and be made on
such conditions as the Secretary determines to be
necessary to carry out this subsection.
* * * * * * *
(8) Evaluation.--The Secretary [may] shall establish
requirements for program evaluations and require grant
recipients to submit annual reports that evaluate the
progress and performance of students participating in
programs assisted under this subsection.
* * * * * * *
[(c) Funding Support.--The Secretary may use not more than 10
percent of the total amount appropriated for this part for
carrying out the purposes of this section.]
SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.
(a) Authorized Activities.--The Secretary may, directly or
through grants or contracts, conduct research and studies that
contribute to achieving the purposes of this part, including
the systematic collection, analysis, and dissemination of data.
Such research and studies may include--
(1) * * *
* * * * * * *
SEC. 606. TECHNOLOGICAL INNOVATION AND COOPERATION FOR FOREIGN
INFORMATION ACCESS.
(a) Authority.--The Secretary is authorized to make grants to
institutions of higher education, public or nonprofit private
libraries, [or consortia of such institutions or libraries]
museums, or consortia of such entities, to develop innovative
techniques or programs using [new] electronic technologies to
collect, organize, preserve, and widely disseminate information
from foreign sources on world regions and countries other than
the United States that address our Nation's teaching and
research needs in international education and foreign
languages.
(b) Authorized Activities.--Grants under this section may be
used--
(1) to acquire and facilitate access to or preserve
foreign information resources in print or electronic
forms;
(2) to develop new means of immediate, full-text
document delivery for information and scholarship from
abroad;
(3) to develop [new means of] new means and standards
for shared electronic access to international data;
* * * * * * *
(6) to assist teachers of less commonly taught
languages in acquiring, via electronic and other means,
materials suitable for classroom use; [and]
(7) to promote collaborative technology based
projects in foreign languages, area studies, and
international studies among grant recipients under this
title[.];
(8) to establish linkages between grant recipients
under subsection (a) with libraries, museums,
organizations, or institutions of higher education
located overseas to facilitate carrying out the
purposes of this section; and
(9) to carry out other activities deemed by the
Secretary to be consistent with the purposes of this
section.
* * * * * * *
(e) Special Rule.--The Secretary may waive or reduce the
required non-Federal share 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.
SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS.
(a) * * *
(b) Selection Criteria.--The Secretary shall set criteria for
grants awarded under section 602 by which a determination of
excellence shall be made to meet the differing [objectives]
missions of graduate and undergraduate institutions. 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 interests, generate and disseminate information, and
foster debate on international issues from diverse
perspectives.
* * * * * * *
SEC. 608. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.
(a) Selection Criteria.--The Secretary shall make excellence
the criterion for selection of grants awarded under section
602. Grants made under section 602 shall also reflect the
purposes of this part.
* * * * * * *
SEC. 610. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part $80,000,000 for fiscal year [1999] 2006, and such sums as
may be necessary for each of the [4] 5 succeeding fiscal years.
PART B--BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS
* * * * * * *
SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.
(a) Program Authorized.--
(1) In general.--The Secretary is authorized to make
grants to institutions of higher education, or
[combinations] consortia of such institutions, to pay
the Federal share of the cost of planning, establishing
and operating centers for international business
education which--
(A) * * *
* * * * * * *
(c) Authorized Activities.--
(1) Mandatory activities.--Programs and activities to
be conducted by centers assisted under this section
shall include--
(A) * * *
* * * * * * *
(D) collaborative programs, activities, or
research involving other institutions of higher
education (including those that are eligible to
receive assistance under part A or B of title
III or under title V), local educational
agencies, professional associations,
businesses, firms, or [combinations] consortia
thereof, to promote the development of
international skills, awareness, and expertise
among current and prospective members of the
business community and other professionals;
* * * * * * *
(d) Advisory Council.--
(1) Establishment.--In order to be eligible for
assistance under this section, an institution of higher
education, or [combination] consortium of such
institutions, shall establish a center advisory council
which will conduct extensive planning prior to the
establishment of a center concerning the scope of the
center's activities and the design of its programs.
* * * * * * *
(e) Grant Duration; Federal Share.--
(1) * * *
* * * * * * *
(5) Special rule.--The Secretary may waive or reduce
the required non-Federal share for institutions that--
(A) are eligible to receive assistance under
part A or B of title III or under title V; and
(B) have submitted a grant application under
this section that demonstrates a need for a
waiver or reduction.
(f) Grant Conditions.--Grants under this section shall be
made on such conditions as the Secretary determines to be
necessary to carry out the objectives of this section. Such
conditions shall include--
(1) evidence that the institution of higher
education, or [combination] consortium of such
institutions, will conduct extensive planning prior to
the establishment of a center concerning the scope of
the center's activities and the design of its programs
in accordance with subsection (d)(1);
* * * * * * *
(4) assurance that the institution of higher
education, or [combination] consortium of such
institutions, will use the assistance provided under
this section to supplement and not to supplant
activities conducted by institutions of higher
education described in subsection (c)(1).
* * * * * * *
SEC. 613. EDUCATION AND TRAINING PROGRAMS.
(a) * * *
* * * * * * *
(e) Special Rule.--The Secretary may waive or reduce the
required non-Federal share 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.
SEC. 614. AUTHORIZATION OF APPROPRIATIONS.
(a) Centers for International Business Education.--There are
authorized to be appropriated $11,000,000 for the fiscal year
[1999] 2006 and such sums as may be necessary for each of the
[4] 5 succeeding fiscal years to carry out the provisions of
section 612.
(b) Education and Training Programs.--There are authorized to
be appropriated $7,000,000 for fiscal year [1999] 2006, and
such sums as may be necessary for the [4] 5 succeeding fiscal
years, to carry out the provisions of section 613.
PART C--INSTITUTE FOR INTERNATIONAL PUBLIC POLICY
[SEC. 621. MINORITY FOREIGN SERVICE PROFESSIONAL DEVELOPMENT PROGRAM.]
SEC. 621. PROGRAM FOR FOREIGN SERVICE PROFESSIONALS.
(a) Establishment.--The Secretary is authorized to award a
grant, on a competitive basis, to an eligible recipient to
enable such recipient to establish an Institute for
International Public Policy (hereafter in this part referred to
as the ``Institute''). [The Institute shall conduct a program
to significantly increase the numbers of African Americans and
other underrepresented minorities in the international service,
including private international voluntary organizations and the
foreign service of the United States.] 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. Such program shall
include a program for such students to study abroad in their
junior year, fellowships for graduate study, internships,
intensive academic programs such as summer institutes, or
intensive language training.
(b) Definition of Eligible Recipient.--
(1) In general.--For the purpose of this part, the
term ``eligible recipient'' means a consortium
consisting of 1 or more of the following entities:
[(A) An institution eligible for assistance
under part B of title III of this Act.
[(B) An institution of higher education which
serves substantial numbers of African American
or other underrepresented minority students.]
(A) A Tribally Controlled College or
University or Alaska Native or Native Hawaiian-
serving institution eligible for assistance
under title III, an institution eligible for
assistance under part B of title III, or a
Hispanic-serving institution eligible for
assistance under title V.
(B) An institution of higher education which
serves substantial numbers of underrepresented
students.
* * * * * * *
SEC. 622. INSTITUTIONAL DEVELOPMENT.
(a) In General.--The Institute shall award grants, from
amounts available to the Institute for each fiscal year, to
historically Black colleges and universities, Hispanic-serving
institutions, Tribally Controlled Colleges or Universities, and
minority institutions, to enable such colleges, universities,
and institutions to strengthen international affairs programs
and promote collaboration with colleges and universities that
receive funds under this title.
* * * * * * *
SEC. 623. STUDY ABROAD PROGRAM.
(a) Program Authority.--The Institute shall conduct, by grant
or contract, a junior year abroad program. The junior year
abroad program shall be open to eligible students at
institutions of higher education, including historically Black
colleges and universities as defined in section 322 of this
Act, tribally controlled Indian community colleges as defined
in the Tribally Controlled Community College Assistance Act of
1978, Alaska Native-serving, Native Hawaiian-serving, and
Hispanic-serving institutions, and other institutions of higher
education with significant minority student populations.
Eligible student expenses shall be shared by the Institute and
the institution at which the student is in attendance. Each
student may spend not more than 9 months abroad in a program of
academic study, as well as social, familial and political
interactions designed to foster an understanding of and
familiarity with the language, culture, economics and
governance of the host country.
* * * * * * *
SEC. 624. [MASTERS] ADVANCED DEGREE IN INTERNATIONAL RELATIONS.
The Institute shall provide, in cooperation with the other
members participating in the eligible recipient consortium, a
program of study leading to [a masters degree in international
relations. The masters degree program designed by the
consortia] an advanced degree in international relations,
international affairs, international economics, or other
academic areas related to the Institute fellow's career
objectives. The advanced degree study program shall be designed
by the consortia, consistent with the fellow's career
objectives, and shall be reviewed and approved by the
Secretary. The Institute may grant fellowships in an amount not
to exceed the level of support comparable to that provided by
the National Science Foundation graduate fellowships, except
such amount shall be adjusted as necessary so as not to exceed
the fellow's demonstrated level of need according to
measurement of need approved by the Secretary. A fellowship
recipient shall agree to undertake full-time study and to enter
the international service (including work with private
international voluntary organizations) or foreign service of
the United States
SEC. 625. INTERNSHIPS.
(a) In General.--The Institute shall enter into agreements
with historically Black colleges and universities as defined in
section 322 of this Act, tribally controlled Indian community
colleges as defined in the Tribally Controlled Community
College Assistance Act of 1978, Alaska Native-serving, Native
Hawaiian-serving, and Hispanic-serving institutions, other
institutions of higher education with significant numbers of
minority students, and institutions of higher education with
programs in training foreign service professionals, to provide
academic year internships during the junior and senior year and
summer internships following the sophomore and junior academic
years, by work placements with an international voluntary or
government organizations or agencies, including the Agency for
International Development, the United States Information
Agency, the International Monetary Fund, the National Security
Council, the Organization of American States, the Export-Import
Bank, the Overseas Private Investment Corporation, the
Department of State, Office of the United States Trade
Representative, the World Bank, and the United Nations.
(b) Postbaccalaureate Internships.--The Institute shall enter
into agreements with institutions of higher education described
in the first sentence of subsection (a) to conduct internships
for students who have completed study for a baccalaureate
degree. The internship program authorized by this subsection
shall--
(1) * * *
(2) be carried out with the assistance of the Woodrow
Wilson International Center for Scholars; and
(3) contain work experience for the students designed
to contribute to the students' preparation for a
master's degree program[; and].
[(4) be assisted by the Interagency Committee on
Minority Careers in International Affairs established
under subsection (c).
[(c) Interagency Committee on Minority Careers in
International Affairs.--
[(1) Establishment.--There is established in the
executive branch of the Federal Government an
Interagency Committee on Minority Careers in
International Affairs composed of not less than 7
members, including--
[(A) the Under Secretary for Farm and Foreign
Agricultural Services of the Department of
Agriculture, or the Under Secretary's designee;
[(B) the Assistant Secretary and Director
General, of the United States and Foreign
Commercial Service of the Department of
Commerce, or the Assistant Secretary and
Director General's designee;
[(C) the Under Secretary of Defense for
Personnel and Readiness of the Department of
Defense, or the Under Secretary's designee;
[(D) the Assistant Secretary for
Postsecondary Education in the Department of
Education, or the Assistant Secretary's
designee;
[(E) the Director General of the Foreign
Service of the Department of State, or the
Director General's designee;
[(F) the General Counsel of the Agency for
International Development, or the General
Counsel's designee; and
[(G) the Associate Director for Educational
and Cultural Affairs of the United States
Information Agency, or the Associate Director's
designee.
[(2) Functions.--The Interagency Committee
established by this section shall--
[(A) on an annual basis inform the Secretary
and the Institute regarding ways to advise
students participating in the internship
program assisted under this section with
respect to goals for careers in international
affairs;
[(B) locate for students potential internship
opportunities in the Federal Government related
to international affairs; and
[(C) promote policies in each department and
agency participating in the Committee that are
designed to carry out the objectives of this
part.]
(c) Ralph J. Bunche Fellows.--In order to assure the
recognition and commitment of individuals from underrepresented
student populations who demonstrate special interest in
international affairs and language study, eligible students who
participate in the internship programs authorized under (a) and
(b) shall be known as the ``Ralph J. Bunche Fellows''.
SEC. 626. REPORT.
The Institute shall [annually prepare a report] prepare a
report biennially on the activities of the Institute and shall
submit such report to the Secretary of Education and the
Secretary of State.
SEC. 628. AUTHORIZATION.
There is authorized to be appropriated $10,000,000 for fiscal
year [1999] 2006 and such sums as may be necessary for each of
the [4] 5 succeeding fiscal years to carry out this part.
PART D--GENERAL PROVISIONS
* * * * * * *
SEC. 632. EVALUATION, OUTREACH, AND DISSEMINATION.
The Secretary may use not more than one percent of the funds
made available for this title for program evaluation, national
outreach, and information dissemination activities.
SEC. 633. INTERNATIONAL HIGHER EDUCATION ADVISORY BOARD.
(a) Establishment and Purpose.--
(1) Establishment.--There is established in the
Department an independent International Higher
Education Advisory Board (hereafter in this section
referred to as the ``International Advisory Board'').
The International Advisory Board shall provide advice,
counsel, and recommendations to the Secretary and the
Congress on international education issues for higher
education.
(2) Purpose.--The purpose of the International
Advisory Board is--
(A) to provide expertise in the area of
national needs for proficiency in world
regions, foreign languages, international
affairs, and international business;
(B) to make recommendations that will promote
the excellence of international education
programs and result in the growth and
development of such programs at the
postsecondary education level that will reflect
diverse perspectives and a wide range of views
on world regions, foreign language,
international affairs, and international
business; and
(C) to advise the Secretary and the Congress
with respect to needs for expertise in
government, the private sector, and education
in order to enhance America's understanding of,
and engagement in, the world.
(b) Independence of International Advisory Board.--In the
exercise of its functions, powers, and duties, the
International Advisory Board shall be independent of the
Secretary and the other offices and officers of the Department.
Except as provided in this subsection and subsection (f), the
recommendations of the International Advisory Board shall not
be subject to review or approval by any officer of the Federal
Government. Nothing in this title shall be construed to
authorize the International Advisory Board to mandate, direct,
or control an institution of higher education's specific
instructional content, curriculum, or program of instruction or
instructor. The International Advisory Board is authorized to
assess a sample of activities supported under this title, using
materials that have been submitted to the Department of
Education by grant recipients under this title, in order to
provide recommendations to the Secretary and the Congress for
the improvement of programs under the title and to ensure
programs meet the purposes of the title to promote the study of
and expertise in foreign language and world regions, especially
with respect to diplomacy, national security, and international
business and trade competitiveness. The recommendations of the
International Advisory Board may address any area in need of
improvement, except that any recommendation of specific
legislation to Congress shall be made only if the President
deems it necessary and expedient.
(c) Membership.--
(1) Appointment.--The International Advisory Board
shall have 7 members of whom--
(A) 3 members shall be appointed by the
Secretary;
(B) 2 members shall be appointed by the
Speaker of the House of Representatives, upon
the recommendation of the Majority Leader and
the Minority Leader; and
(C) 2 members shall be appointed by the
President pro tempore of the Senate, upon the
recommendation of the Majority Leader and the
Minority Leader.
(2) Representation.--Two of the members appointed by
the Secretary under paragraph (1)(A) shall be appointed
to represent Federal agencies that have diplomacy,
national security, international commerce, or other
international activity responsibilities, after
consultation with the heads of such agencies. The
members of the International Advisory Board shall also
include (but not be limited to) persons with
international expertise representing States,
institutions of higher education, cultural
organizations, educational organizations, international
business, local education agencies, students, and
private citizens with expertise in international
concerns.
(3) Qualification.--Members of the International
Advisory Board shall be individuals who have technical
qualifications, professional standing, experience
working in international affairs or foreign service or
international business occupations, or demonstrated
knowledge in the fields of higher education and
international education, including foreign languages,
world regions, or international affairs.
(d) Functions of the International Advisory Board.--
(1) In general.--The International Advisory Board
shall provide recommendations in accordance with
subsection (b) regarding improvement of programs under
this title to the Secretary and the Congress for their
review. The International Advisory Board may--
(A) review and comment upon the regulations
for grants under this title;
(B) assess a sample of activities supported
under this title based on the purposes and
objectives of this title, using materials that
have been submitted to the Department of
Education by grant recipients under this title,
in order to provide recommendations for
improvement of the programs under this title;
(C) make recommendations that will assist the
Secretary and the Congress to improve the
programs under this title to better reflect the
national needs related to foreign languages,
world regions, diplomacy, national security,
and international business and trade
competitiveness, including an assessment of the
national needs and the training provided by the
institutions of higher education that receive a
grant under this title for expert and non-
expert level foreign language training;
(D) make recommendations to the Secretary and
the Congress regarding such studies, surveys,
and analyses of international education that
will provide feedback about the programs under
this title and assure that their relative
authorized activities reflect diverse
perspectives and a wide range of views on world
regions, foreign languages, diplomacy, national
security, and international business and trade
competitiveness;
(E) make recommendations that will strengthen
the partnerships between local educational
agencies, public and private elementary and
secondary education schools, and grant
recipients under this title to ensure that the
research and knowledge about world regions,
foreign languages, and international affairs is
widely disseminated to local educational
agencies;
(F) make recommendations on how institutions
of higher education that receive a grant under
this title can encourage students to serve the
Nation and meet national needs in an
international affairs, international business,
foreign language, or national security
capacity;
(G) make recommendations on how linkages
between institutions of higher education and
public and private organizations that are
involved in international education,
international business and trade
competitiveness, language training, and
international research capacities may fulfill
the manpower and information needs of United
States businesses; and
(H) make recommendations to the Secretary and
the Congress about opportunities for
underrepresented populations in the areas of
foreign language study, diplomacy,
international business and trade
competitiveness, and international economics,
in order to effectively carry out the
activities of the Institute under part C.
(2) Hearings.--The International Advisory Board shall
provide for public hearing and comment regarding the
matter contained in the recommendations described in
paragraph (1), prior to the submission of those
recommendations to the Secretary and the Congress.
(e) Operations of the Committee.--
(1) Terms.--Each member of the International Advisory
Board shall be appointed for a term of 3 years, except
that, of the members first appointed (A) 4 shall be
appointed for a term of 3 years, and (B) 3 shall be
appointed for a term of 4 years, as designated at the
time of appointment by the Secretary. A member of the
International Advisory Board may be reappointed to
successive terms on the International Advisory Board.
(2) Vacancies.--Any member appointed to fill a
vacancy occurring prior to the expiration of the term
of a predecessor shall be appointed only for the
remainder of such term. A member of the International
Advisory Board shall, upon the Secretary's request,
continue to serve after the expiration of a term until
a successor has been appointed.
(3) No governmental members.--Except for the members
appointed by the Secretary under subsection (c)(1)(A),
no officers or full-time employees of the Federal
Government shall serve as members of the International
Advisory Board.
(4) Meetings.--The International Advisory Board shall
meet not less than once each year. The International
Advisory Board shall hold additional meetings at the
call of the Chair or upon the written request of not
less than 3 voting members of the International
Advisory Board.
(5) Quorum.--A majority of the voting members of the
International Advisory Board serving at the time of a
meeting shall constitute a quorum.
(6) Chair.--The International Advisory Board shall
elect a Chairman or Chairwoman from among the members
of the International Advisory Board.
(f) Submission to Department for Comment.--The International
Advisory Board shall submit its proposed recommendations to the
Secretary of Education for comment for a period not to exceed
30 days in each instance.
(g) Personnel and Resources.--
(1) Compensation and expense.--Members of the
International Advisory Board shall serve without pay
for such service. Members of the International Advisory
Board who are officers or employees of the United
States may not receive additional pay, allowances, or
benefits by reason of their service on the
International Advisory Board. Members of the
International Advisory Board may each receive
reimbursement for travel expenses incident to attending
International Advisory Board meetings, including per
diem in lieu of subsistence, as authorized by section
5703 of title 5, United States Code, for persons in the
Government service employed intermittently.
(2) Personnel.--The International Advisory Board may
appoint such personnel as may be determined necessary
by the Chairman without regard to the provisions of
title 5, United States Code, governing appointments in
the competitive service, and may be paid without regard
to the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and
General Schedule pay rates, but no individual so
appointed shall be paid in excess of the maximum rate
payable under section 5376 of such title. The
International Advisory Board may appoint not more than
one full-time equivalent, nonpermanent, consultant
without regard to the provisions of title 5, United
States Code. The International Advisory Board shall not
be required by the Secretary to reduce personnel to
meet agency personnel reduction goals.
(3) Consultation.--In carrying out its duties under
the Act, the International Advisory Board shall consult
with other Federal agencies, representatives of State
and local governments, and private organizations to the
extent feasible.
(4) Assistance from other agencies.--
(A) Information.--The International Advisory
Board is authorized to secure directly from any
executive department, bureau, agency, board,
commission, office, independent establishment,
or instrumentality information, suggestions,
estimates, and statistics for the purpose of
this section and each such department, bureau,
agency, board, commission, office, independent
establishment, or instrumentality is authorized
and directed, to the extent permitted by law,
to furnish such information, suggestions,
estimates, and statistics directly to the
International Advisory Board, upon request made
by the Chairman for the purpose of providing
expertise in the area of national needs for the
proficiency in world regions, foreign
languages, and international affairs.
(B) Services and personnel.--The head of each
Federal agency shall, to the extent not
prohibited by law, consult with the
International Advisory Board in carrying out
this section. The International Advisory Board
is authorized to utilize, with their consent,
the services, personnel, information, and
facilities of other Federal, State, local, and
private agencies with or without reimbursement,
for the purpose of providing expertise in the
area of national needs for the proficiency in
world regions, foreign languages, and
international affairs.
(5) Contracts; experts and consultants.--The
International Advisory Board may enter into contracts
for the acquisition of information, suggestions,
estimates, and statistics for the purpose of this
section. The International Advisory Board is authorized
to obtain the services of experts and consultants
without regard to section 3109 of title 5, United
States Code and to set pay in accordance with such
section.
(h) Termination.--Notwithstanding the sunset and charter
provisions of the Federal Advisory Committee Act (5 U.S.C. App.
I) or any other statute or regulation, the International
Advisory Board shall be authorized through September 30, 2012.
(i) Funds.--The Secretary shall use not more than one-half of
the funds available to the Secretary under section 632 to carry
out this section.
SEC. 634. RECRUITER ACCESS TO STUDENTS AND STUDENT RECRUITING
INFORMATION.
Each institution of higher education that receives a grant
under this title shall assure that--
(1) recruiters of the United States Government and
agencies thereof are given the same access to students
as is provided generally to other institutions of
higher education and prospective employers of those
students for the purpose of recruiting for graduate
opportunities or prospective employment; and
(2) no undue restrictions are placed upon students
that seek employment with the United States Government
or any agency thereof.
SEC. 635. STUDENT SAFETY.
Applicants seeking funds under this title to support student
travel and study abroad shall submit as part of their grant
application a description of safety policies and procedures for
students participating in the program while abroad.
SEC. 636. NATIONAL STUDY OF FOREIGN LANGUAGE HERITAGE COMMUNITIES.
(a) Study.--The Secretary of Education, in consultation with
the International Advisory Board, shall conduct a study to
identify foreign language heritage communities, particularly
such communities that include speakers of languages that are
critical to the national security of the United States.
(b) Foreign Language Heritage Community.--For purposes of
this section, the term ``foreign language heritage community''
means a community of residents or citizens of the United States
who are native speakers of, or who have partial fluency in, a
foreign language.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Education shall submit
a report to the Congress on the results of the study conducted
under this section.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
* * * * * * *
PART A--GRADUATE EDUCATION PROGRAMS
Subpart 1--Jacob K. Javits Fellowship Program
SEC. 701. AWARD OF JACOB K. JAVITS FELLOWSHIPS.
(a) Authority and Timing of Awards.--The Secretary is
authorized to award fellowships in accordance with the
provisions of this subpart for graduate study in the arts,
humanities, and social sciences by students of superior ability
selected on the basis of demonstrated achievement, financial
need, and exceptional promise. The fellowships shall be awarded
to students who are eligible to receive any grant, loan, or
work assistance pursuant to section 484 and intend to pursue a
doctoral degree, except that fellowships may be granted to
students pursuing a master's degree in those fields in which
the master's degree is the terminal highest degree awarded in
the area of study. For purposes of the exception in the
preceding sentence, a master's degree in fine arts shall be
considered a terminal degree. All funds appropriated in a
fiscal year shall be obligated and expended to the students for
fellowships for use in the academic year beginning after July 1
of the fiscal year following the fiscal year for which the
funds were appropriated. The fellowships shall be awarded for
only 1 academic year of study and shall be renewable for a
period not to exceed 4 years of study.
* * * * * * *
(c) Interruptions of Study.--The institution of higher
education may allow a fellowship recipient to interrupt periods
of study for a period not to exceed 12 months for the purpose
of work, travel, or independent study away from the campus, if
such independent study is supportive of the fellowship
recipient's academic program and shall continue payments for
those 12-month periods during which the student is pursuing
travel or independent study supportive of the recipient's
academic program. 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 not more than 12 months (in any other
case), but without payment of the stipend.
* * * * * * *
SEC. 702. ALLOCATION OF FELLOWSHIPS.
(a) Fellowship Board.--
(1) Appointment.--The Secretary shall appoint a Jacob
K. Javits Fellows Program Fellowship Board (hereinafter
in this subpart referred to as the ``Board'')
consisting of 9 individuals representative of both
public and private institutions of higher education
from diverse geographic regions who are especially
qualified to serve on the Board. In making
appointments, the Secretary shall give due
consideration to the appointment of individuals who are
highly respected in the academic community. The
Secretary shall assure that individuals appointed to
the Board are broadly representative of a range of
disciplines in graduate education in arts, humanities,
and social sciences. The Secretary shall also assure
that at least one representative appointed to the Board
represents an institution that is eligible for a grant
under title III or V of this Act.
* * * * * * *
SEC. 703. STIPENDS.
(a) Award by Secretary.--The Secretary shall pay to
individuals awarded fellowships under this subpart such
stipends as the Secretary may establish, reflecting the purpose
of this program to encourage highly talented students to
undertake graduate study as described in this subpart. In the
case of an individual who receives such individual's first
stipend under this subpart in academic year [1999-2000] 2006-
2007 or any succeeding academic year, such stipend [shall be
set] may be set at a level of support equal to that provided by
the National Science [Foundation graduate fellowships]
Foundation Graduate Research Fellowship Program on February 1
of such academic year, except such amount shall be adjusted as
necessary so as not to exceed the fellow's demonstrated level
of need determined in accordance with part F of title IV.
(b) Institutional Payments.--
[(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 1999-2000 and succeeding
academic years, the same amount as the institutional
payment made for 1998-1999 under section 933(b) (as
such section was in effect on the day before the date
of enactment of the Higher Education Amendments of
1998) adjusted for 1999-2000 and annually thereafter in
accordance with inflation as determined by the
Department of Labor's Consumer Price Index for the
previous calendar year.]
(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 2006-2007 and succeeding academic years, the same
amount as the institutional payment made for 2005-2006
adjusted for 2006-2007 and annually thereafter in
accordance with inflation as determined by the
Department of Labor's Consumer Price Index for All
Urban Consumers for the previous calendar year.
* * * * * * *
SEC. 705. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $30,000,000 for
[fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years] fiscal year 2006 and such sums
as may be necessary for each of the 5 succeeding fiscal years
to carry out this subpart.
Subpart 2--Graduate Assistance in Areas of National Need
* * * * * * *
SEC. 712. INSTITUTIONAL ELIGIBILITY.
(a) * * *
(b) Designation of Areas of National Need.--After
consultation with appropriate Federal and nonprofit agencies
and organizations, the Secretary shall designate areas of
national need. In making such designations, the Secretary shall
take into account the extent to which the interest in the area
is compelling, the extent to which other Federal programs
support postbaccalaureate study in the area concerned, [and] an
assessment of how the program could achieve the most
significant impact with available resources, and the priority
described in subsection (c) of this section.
(c) Priority.--The Secretary shall establish a priority for
grants in order to prepare individuals for the professoriate
who will train highly-qualified elementary and secondary math
and science teachers, special education teachers, and teachers
who provide instruction for limited English proficient
individuals. Such grants shall offer program assistance and
graduate fellowships for--
(1) post-baccalaureate study related to teacher
preparation and pedagogy in math and science for
students who have completed a master's degree or are
pursuing a doctorate of philosophy in math and science;
(2) post-baccalaureate study related to teacher
preparation and pedagogy in special education and
English language acquisition and academic proficiency
for limited English proficient individuals; and
(3) support of dissertation research in the fields of
math, science, special education, or second language
pedagogy and second language acquisition.
SEC. 713. CRITERIA FOR APPLICATIONS.
(a) * * *
(b) Contents of Applications.--An academic department,
program or unit of an institution of higher education, in the
department, program or unit's application for a grant, shall--
(1) * * *
* * * * * * *
(9) provide assurances that the academic department
will provide at least 1 year of supervised training in
instruction for students; [and]
(10) in the case of an application for a grant by a
department, program, or unit in education or teacher
preparation, contain assurances that such department,
program, or unit collaborates with departments,
programs, or units in all content areas to assure a
successful combination of training in both teaching and
such content; and
[(10)] (11) include such other information as the
Secretary may prescribe.
SEC. 714. AWARDS TO GRADUATE STUDENTS.
(a) * * *
(b) Amount of Stipends.--The Secretary shall make payments to
institutions of higher education for the purpose of paying
stipends to individuals who are awarded fellowships under this
subpart. The stipends the Secretary establishes shall reflect
the purpose of the program under this subpart to encourage
highly talented students to undertake graduate study as
described in this subpart. In the case of an individual who
receives such individual's first stipend under this subpart in
academic year [1999-2000] 2006-2007 or any succeeding academic
year, such stipend [shall be set] may be set at a level of
support equal to that provided by the National Science
[Foundation graduate fellowships] Foundation Graduate Research
Fellowship Program on February 1 of such academic year, except
such amount shall be adjusted as necessary so as not to exceed
the fellow's demonstrated level of need as determined under
part F of title IV.
(c) Treatment of Institutional Payments.--An institution of
higher education that makes institutional payments for tuition
and fees on behalf of individuals supported by fellowships
under this subpart in amounts that exceed the institutional
payments made by the Secretary pursuant to [section 716(a)]
section 715(a) may count such excess toward the amounts the
institution is required to provide pursuant to [section
714(b)(2)] section 713(b)(2).
* * * * * * *
SEC. 715. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION.
(a) Institutional Payments.--
(1) In general.--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 paragraph (2), such allowance shall be, for
[1999-2000] 2006-2007 and succeeding academic years,
the same amount as the institutional payment made for
[1998-1999] 2005-2006 adjusted annually thereafter in
accordance with inflation as determined by the
Department of Labor's Consumer Price Index for All
Urban Consumers for the previous calendar year.
* * * * * * *
SEC. 716. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated $35,000,000 for
[fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years] fiscal year 2006 and such sums
as may be necessary for each of the 5 succeeding fiscal years
to carry out this subpart.
Subpart 3--Thurgood Marshall Legal Educational Opportunity Program
SEC. 721. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.
(a) * * *
* * * * * * *
(c) Contract or Grant Authorized.--The Secretary is
authorized to enter into a contract with, or make a grant to,
the Council on Legal Education Opportunity, for a period of not
less than 5 years--
(1) * * *
[(2) to prepare such students for study at accredited
law schools;]
(2) to prepare such students for study at accredited
law schools and assist them with the development of
analytical skills and study methods to enhance their
success and promote completion of law school;
* * * * * * *
(4) to provide support services to such students who
are first-year law students to improve retention and
success in law school studies; [and]
(5) to motivate and prepare such students with
respect to law school studies and practice in low-
income communities[.]; and
(6) to award Thurgood Marshall Fellowships to
eligible law school students--
(A) who participated in summer institutes
authorized by subsection (d) and who are
enrolled in an accredited law school; or
(B) who are eligible law school students who
have successfully completed a comparable summer
institute program certified by the Council on
Legal Educational Opportunity.
(d) Services Provided.--In carrying out the purposes
described in subsection (c), the contract or grant shall
provide for the delivery of services through prelaw information
resource centers, summer institutes, midyear seminars, and
other educational activities, conducted under this section.
Such services may include--
(1) information and counseling regarding--
(A) * * *
* * * * * * *
(D) undergraduate preparatory courses in
analytical skills and study methods and
curriculum selection;
* * * * * * *
(h) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $5,000,000 for fiscal
year [1999 and each of the 4 succeeding fiscal years] 2006 and
each of the 5 succeeding fiscal years.
* * * * * * *
Subpart 4--General Provisions
SEC. 731. ADMINISTRATIVE PROVISIONS FOR SUBPARTS 1, 2, AND 3.
(a) * * *
* * * * * * *
[(e) Continuation Awards.--The Secretary, using funds
appropriated to carry out subparts 1 and 2, and before awarding
any assistance under such parts to a recipient that did not
receive assistance under part C or D of title IX (as such parts
were in effect prior to the date of enactment of the Higher
Education Amendments of 1998) shall continue to provide funding
to recipients of assistance under such part C or D (as so in
effect), as the case may be, pursuant to any multiyear award of
such assistance.]
PART B--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
SEC. 741. FUND FOR THE IMPROVEMENT OF POSTSECONDARY
EDUCATION.
(a) Authority.--The Secretary is authorized to make grants
to, or enter into contracts with, institutions of higher
education, combinations of such institutions, and other public
and private nonprofit institutions and agencies, to enable such
institutions, combinations, and agencies to improve
postsecondary education opportunities by--
[(1) encouraging the reform, innovation, and
improvement of postsecondary education, and providing
equal educational opportunity for all;]
(1) the encouragement of the reform and improvement
of, and innovation in, postsecondary education and the
provision of educational opportunity for all,
especially for the non-traditional student populations;
(2) the creation of institutions, programs, and joint
efforts involving paths to career and professional
training, and combinations of academic and experiential
learning for postsecondary students, especially
institutions, programs, and joint efforts that provide
academic credit for programs;
[(3) the establishment of institutions and programs
based on the technology of communications;]
(3) the establishment of institutions and programs
based on the technology of communications, including
delivery by distance education;
* * * * * * *
[(6) the introduction of institutional reforms
designed to expand individual opportunities for
entering and reentering institutions and pursuing
programs of study tailored to individual needs;]
(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;
(7) the introduction of reforms in graduate
education, in the structure of academic professions,
and in the recruitment and retention of faculties;
[and]
(8) the creation of new institutions and programs for
examining and awarding credentials to individuals, and
the introduction of reforms in current institutional
practices related thereto[.];
(9) the provision of support and assistance to
programs implementing integrated education reform
services in order to improve secondary school
graduation and college attendance and completion rates
for disadvantaged students, and to programs that reduce
postsecondary remediation rates, and improve degree
attainment rates, for low-income students and former
high school dropouts; and
(10) the assessment, in partnership with a public or
private nonprofit institution or agency, of the
performance of teacher preparation programs within
institutions of higher education in a State, using an
assessment which provides comparisons across such
schools within the State based upon indicators
including teacher candidate knowledge in subject areas
in which such candidate has been prepared to teach.
* * * * * * *
(c) Prohibition.--No funds made available under this part may
be used to provide financial assistance to students who do not
meet the requirements of section 484(a)(5).
* * * * * * *
SEC. 744. SPECIAL PROJECTS.
(a) * * *
* * * * * * *
(c) Areas of National Need.--Areas of national need shall
initially include, but shall not be limited to, the following:
(1) * * *
[(2) Articulation between 2- and 4-year institutions
of higher education, including developing innovative
methods for ensuring the successful transfer of
students from 2- to 4-year institutions of higher
education.]
(2)(A) Development of partnerships between local
educational agencies and institutions of higher
education to establish or expand existing dual
enrollment programs at institutions of higher education
that allow high school students to earn high school and
transferable college credit.
(B) Development of consortia of institutions of
higher education to create dual enrollment programs
including academic and student support agreements and
comprehensive articulation agreements that would allow
for the seamless and timeless acquisition of college
credits and the transfer of postsecondary academic
credits between such institutions, particularly from 2-
year to 4-year institutions of higher education.
* * * * * * *
[(4) International cooperation and student exchange
among postsecondary educational institutions.]
(4) International cooperation, partnerships, or
student exchange among postsecondary educational
institutions in the United States and abroad.
(5) Establishment of academic programs including
graduate and undergraduate courses, seminars and
lectures, support of research, and development of
teaching materials for the purpose of supporting
faculty and academic programs that teach traditional
American history (including significant constitutional,
political, intellectual, economic, diplomatic, and
foreign policy trends, issues, and documents; the
history, nature, and development of democratic
institutions of which American democracy is a part; and
significant events and individuals in the history of
the United States).
(6) Support for planning, applied research, training,
resource exchanges or technology transfers, the
delivery of services, or other activities the purpose
of which is to design and implement programs to enable
institutions of higher education to work with private
and civic organizations to assist communities to meet
and address their pressing and severe problems,
including economic development, community
infrastructure and housing, crime prevention,
education, healthcare, self-sufficiency, and workforce
preparation. Such activities may include support for
the development of coordinated curriculum and
internship opportunities for students in disadvantaged
communities.
SEC. 745. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out this
part [$30,000,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years]
$40,000,000 for fiscal year 2006 and such sums as may be
necessary for each of the 5 succeeding fiscal years.
[PART C--URBAN COMMUNITY SERVICE
[SEC. 751. FINDINGS.
[The Congress finds that--
[(1) the Nation's urban centers are facing
increasingly pressing problems and needs in the areas
of economic development, community infrastructure and
service, social policy, public health, housing, crime,
education, environmental concerns, planning and work
force preparation;
[(2) there are, in the Nation's urban institutions,
people with underutilized skills, knowledge, and
experience who are capable of providing a vast range of
services toward the amelioration of the problems
described in paragraph (1);
[(3) the skills, knowledge and experience in these
urban institutions, if applied in a systematic and
sustained manner, can make a significant contribution
to the solution of such problems; and
[(4) the application of such skills, knowledge and
experience is hindered by the limited funds available
to redirect attention to solutions to such urban
problems.
[SEC. 752. PURPOSE; PROGRAM AUTHORIZED.
[(a) Purpose.--It is the purpose of this part to provide
incentives to urban academic institutions to enable such
institutions to work with private and civic organizations to
devise and implement solutions to pressing and severe problems
in their communities.
[(b) Program Authorized.--The Secretary is authorized to
carry out a program of providing assistance to eligible
institutions to enable such institutions to carry out the
activities described in section 754 in accordance with the
provisions of this part.
[SEC. 753. APPLICATION FOR URBAN COMMUNITY SERVICE GRANTS.
[(a) Application.--
[(1) In general.--An eligible institution seeking
assistance under this part shall submit to the
Secretary an application at such time, in such form,
and containing or accompanied by such information and
assurances as the Secretary may require by regulation.
[(2) Contents.--Each application submitted pursuant
to paragraph (1) shall--
[(A) describe the activities and services for
which assistance is sought; and
[(B) include a plan that is agreed to by the
members of a consortium that includes, in
addition to the eligible institution, one or
more of the following entities:
[(i) A community college.
[(ii) An urban school system.
[(iii) A local government.
[(iv) A business or other employer.
[(v) A nonprofit institution.
[(3) Waiver.--The Secretary may waive the consortium
requirements described in paragraph (2) for any
applicant who can demonstrate to the satisfaction of
the Secretary that the applicant has devised an
integrated and coordinated plan which meets the purpose
of this part.
[(b) Priority in Selection of Applications.--The Secretary
shall give priority to applications that propose to conduct
joint projects supported by other local, State, and Federal
programs. In addition, the Secretary shall give priority to
eligible institutions submitting applications that demonstrate
the eligible institution's commitment to urban community
service.
[(c) Selection Procedures.--The Secretary shall, by
regulation, develop a formal procedure for the submission of
applications under this part and shall publish in the Federal
Register an announcement of that procedure and the availability
of funds under this part.
[SEC. 754. ALLOWABLE ACTIVITIES.
[Funds made available under this part shall be used to
support planning, applied research, training, resource
exchanges or technology transfers, the delivery of services, or
other activities the purpose of which is to design and
implement programs to assist urban communities to meet and
address their pressing and severe problems, such as the
following:
[(1) Work force preparation.
[(2) Urban poverty and the alleviation of such
poverty.
[(3) Health care, including delivery and access.
[(4) Underperforming school systems and students.
[(5) Problems faced by the elderly and individuals
with disabilities in urban settings.
[(6) Problems faced by families and children.
[(7) Campus and community crime prevention, including
enhanced security and safety awareness measures as well
as coordinated programs addressing the root causes of
crime.
[(8) Urban housing.
[(9) Urban infrastructure.
[(10) Economic development.
[(11) Urban environmental concerns.
[(12) Other problem areas which participants in the
consortium described in section 753(a)(2)(B) concur are
of high priority in the urban area.
[(13)(A) Problems faced by individuals with
disabilities regarding accessibility to institutions of
higher education and other public and private community
facilities.
[(B) Amelioration of existing attitudinal barriers
that prevent full inclusion by individuals with
disabilities in their community.
[(14) Improving access to technology in local
communities.
[SEC. 755. PEER REVIEW.
[The Secretary shall designate a peer review panel to review
applications submitted under this part and make recommendations
for funding to the Secretary. In selecting the peer review
panel, the Secretary may consult with other appropriate
Cabinet-level officials and with non-Federal organizations, to
ensure that the panel will be geographically balanced and be
composed of representatives from public and private
institutions of higher education, labor, business, and State
and local government, who have expertise in urban community
service or in education.
[SEC. 756. DISBURSEMENT OF FUNDS.
[(a) Multiyear Availability.--Subject to the availability of
appropriations, grants under this part may be made on a
multiyear basis, except that no institution, individually or as
a participant in a consortium of such institutions, may receive
such a grant for more than 5 years.
[(b) Equitable Geographic Distribution.--The Secretary shall
award grants under this part in a manner that achieves an
equitable geographic distribution of such grants.
[(c) Matching Requirement.--An applicant under this part and
the local governments associated with the application shall
contribute to the conduct of the program supported by the grant
an amount from non-Federal funds equal to at least one-fourth
of the amount of the grant, which contribution may be in cash
or in kind.
[SEC. 757. DESIGNATION OF URBAN GRANT INSTITUTIONS.
[The Secretary shall publish a list of eligible institutions
under this part and shall designate these institutions of
higher education as ``Urban Grant Institutions''. The Secretary
shall establish a national network of Urban Grant Institutions
so that the results of individual projects achieved in one
metropolitan area can then be generalized, disseminated,
replicated, and applied throughout the Nation. The information
developed as a result of this section shall be made available
to Urban Grant Institutions and to any other interested
institution of higher education by any appropriate means.
[SEC. 758. DEFINITIONS.
[As used in this part:
[(1) Urban area.--The term ``urban area'' means a
metropolitan statistical area having a population of
not less than 350,000, or two contiguous metropolitan
statistical areas having a population of not less than
350,000, or, in any State which does not have a
metropolitan statistical area which has such a
population, the eligible entity in the State submitting
an application under section 753, or, if no such entity
submits an application, the Secretary, shall designate
one urban area for the purposes of this part.
[(2) Eligible institution.--The term ``eligible
institution'' means--
[(A) a nonprofit municipal university,
established by the governing body of the city
in which it is located, and operating as of the
date of enactment of the Higher Education
Amendments of 1992 under that authority; or
[(B) an institution of higher education, or a
consortium of such institutions any one of
which meets all of the requirements of this
paragraph, which--
[(i) is located in an urban area;
[(ii) draws a substantial portion of
its undergraduate students from the
urban area in which such institution is
located, or from contiguous areas;
[(iii) carries out programs to make
postsecondary educational opportunities
more accessible to residents of such
urban area, or contiguous areas;
[(iv) has the present capacity to
provide resources responsive to the
needs and priorities of such urban area
and contiguous areas;
[(v) offers a range of professional,
technical, or graduate programs
sufficient to sustain the capacity of
such institution to provide such
resources; and
[(vi) has demonstrated and sustained
a sense of responsibility to such urban
area and contiguous areas and the
people of such areas.
[SEC. 759. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated $20,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years to carry out this part.]
PART D--DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES
RECEIVE A QUALITY HIGHER EDUCATION
* * * * * * *
SEC. 762. GRANTS AUTHORIZED.
(a) Competitive Grants Authorized.--The Secretary may award
grants, contracts, and cooperative agreements, on a competitive
basis, to institutions of higher education, of which at least
two such grants shall be awarded to institutions that provide
professional development and technical assistance in order for
[students with learning disabilities] students with
disabilities to receive a quality postsecondary education.
(b) Duration; Activities.--
(1) * * *
(2) Authorized activities.--Grants under this part
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 to
provide faculty and administrators with the
skills and supports necessary to teach students
with disabilities in order to improve retention
and completion. Such methods and strategies may
include inservice 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, effective, and
efficient teaching methods and strategies to
ensure the smooth transition of students with
disabilities from high school to postsecondary
education.
[(B)] (C) Synthesizing research and
information.--Synthesizing research and other
information related to the provision of
postsecondary educational services to students
with disabilities.
(D) Distance learning.--The development of
innovative, effective, and efficient teaching
methods and strategies to provide faculty and
administrators with the ability to provide
accessible distance education programs or
classes that would enhance access of students
with disabilities to higher education,
including the use of electronic communication
for instruction and advisement.
[(C)] (E) Professional development and
training sessions.--Conducting professional
development and training sessions for faculty
and administrators from other institutions of
higher education to enable the faculty and
administrators to meet the postsecondary
educational needs of students with
disabilities.
(3) Mandatory evaluation and dissemination.--Grants
under this part shall be used for evaluation, and
dissemination to other institutions of higher
education, of the information obtained through the
activities described in [subparagraphs (A) through (C)]
subparagraphs (A) through (E).
* * * * * * *
SEC. 763. APPLICATIONS.
Each institution of higher education desiring to receive a
grant, contract, or cooperative agreement 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 require. Each application shall include--
[(1) a description of how such institution plans to
address each of the activities required under this
part;]
(1) a description of how such institution plans to
address the activities allowed under this part;
(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;
[and]
(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 an
institution will work to replicate the best practices
of institutions of higher education with demonstrated
success in serving students with disabilities.
* * * * * * *
SEC. 765. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for this part
$10,000,000 for [fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years] fiscal
year 2006 and such sums as may be necessary for each of the 5
succeeding fiscal years.
----------
SECTION 3 OF THE TAXPAYER-TEACHER PROTECTION ACT OF 2004
SEC. 3. LOAN FORGIVENESS FOR TEACHERS.
(a) * * *
(b) Additional Amounts Eligible to Be Repaid.--
(1) * * *
* * * * * * *
[(3) Effective date.--The amendments made by this
subsection shall apply only with respect to eligible
individuals who are new borrowers (as such term is
defined in 103 of the Higher Education Act of 1965 (20
U.S.C. 1003)) on or after October 1, 1998, and before
October 1, 2005.]
* * * * * * *
----------
EDUCATION OF THE DEAF ACT OF 1986
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, [That this
Act may be cited as the ``Education of the Deaf Act of 1986''.]
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Gallaudet University and
National Technical Institute for the Deaf Act''.
TITLE I--GALLAUDET UNIVERSITY; NATIONAL TECHNICAL INSTITUTE FOR THE
DEAF
Part A--Gallaudet University
* * * * * * *
SEC. 104. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.
(a) General Authority.--(1)(A) The Board of Trustees of
Gallaudet University is authorized, in accordance with the
agreement under section 105, to maintain and operate, at the
Laurent Clerc National Deaf Education Center, exemplary
elementary and secondary education programs, projects, and
activities for the primary purpose of developing, evaluating,
and disseminating innovative curricula, instructional
techniques and strategies, and materials that can be used in
various educational environments serving individuals who are
deaf or hard of hearing throughout the Nation.
* * * * * * *
(b) Administrative Requirements.--(1) The [elementary and
secondary education programs] Laurent Clerc National Deaf
Education Center shall--
(A) * * *
* * * * * * *
(2) To the extent possible, the [elementary and secondary
education programs] Laurent Clerc National Deaf Education
Center shall provide the services required under paragraph
(1)(B) in an equitable manner, based on the national
distribution of students who are deaf or hard of hearing in
educational environments as determined by the Secretary for
purposes of section 618(a)(1) of the Individuals with
Disabilities Education Act. Such educational environments shall
include--
(A) * * *
* * * * * * *
(5) The University, in consultation with the Secretary and
consistent with the mission of the elementary and secondary
programs operated at the Laurent Clerc National Deaf Education
Center, shall--
(A) not later than the beginning of the 2007-2008
school year, adopt and implement academic content
standards, academic achievement standards, and academic
assessments as described in paragraphs (1) and (3) of
section 1111(b) of the Elementary and Secondary
Education Act of 1965 for such Center;
(B) develop adequate yearly progress standards for
such Center as described in section 1111(b)(2)(C) of
such Act; and
(C) publicly report the results of such assessments,
except in such case in which such reporting would not
yield statistically reliable information or would
reveal personally identifiable information about an
individual student.
Part B--National Technical Institute for the Deaf
SEC. 111. AUTHORITY.
For the purpose of providing a residential facility for
postsecondary technical training and education for individuals
who are deaf in order to prepare them for successful
employment, [the institution of higher education with which the
Secretary has an agreement under this part] the Rochester
Institute of Technology is authorized to operate and maintain a
National Technical Institute for the Deaf.
SEC. 112. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) General Authority.--(1) The Secretary is authorized to
establish or continue an agreement with [an institution of
higher education] the Rochester Institute of Technology,
Rochester, New York, for the establishment and operation,
including construction and equipment, [of a] of the National
Technical Institute for the Deaf. [The Secretary, in
considering proposals from institutions of higher education to
enter into an agreement under this part, shall give preference
to institutions which are located in metropolitan industrial
areas.]
(2) The Secretary and [the institution of higher education
with which the Secretary has an agreement under this section]
the Rochester Institute of Technology--
(A) * * *
(B) shall periodically update the agreement as
determined necessary by the Secretary or [the
institution] the Rochester Institute of Technology.
(b) Provisions of Agreement.--The agreement shall--
(1) * * *
(2) provide that the Board of Trustees [or other
governing body of the institution] of the Rochester
Institute of Technology, subject to the approval of the
Secretary, will appoint an advisory group to advise the
Director of NTID in formulating and carrying out the
basic policies governing its establishment and
operation, which group shall include individuals who
are professionally concerned with education and
technical training at the postsecondary school level,
persons who are professionally concerned with
activities relating to education and training of
individuals who are deaf, and members of the public
familiar with the need for services provided by NTID;
(3) provide that the Board of Trustees [or other
governing body of the institution] of the Rochester
Institute of Technology will prepare and submit to the
Secretary, not later than June 1 following the fiscal
year for which the report is submitted, an annual
report containing an accounting of all indirect costs
paid to [the institution of higher education under the
agreement with the Secretary] the Rochester Institute
of Technology by the National Technical Institute for
the Deaf, which accounting the Secretary shall transmit
to the [Committee on Education and Labor of the House
of Representatives and to the Committee on Labor and
Human Resources of the Senate] Committee on Education
and the Workforce of the House of Representatives and
to the Committee on Health, Education, Labor, and
Pensions of the Senate, with such comments and
recommendations as the Secretary may deem appropriate;
* * * * * * *
(c) Limitation.--If, within twenty years after the completion
of any construction (except minor remodeling or alteration) for
which such funds have been paid--
(1) the facility ceases to be used for the purposes
for which it was constructed or the agreement is
terminated, unless the Secretary determines that there
is good cause for releasing the [institution] Rochester
Institute of Technology from its obligation, or
(2) the [institution] Rochester Institute of
Technology ceases to be the owner of the facility,
the United States shall be entitled to recover from the
applicant or other owner of the facility an amount which has
the same ratio with respect to the current market value of the
facility as the amount of Federal funds expended for
construction of such facility bears to the total cost of
construction of the facility. The current market value of the
facility shall be determined by agreement of the parties or by
action brought in the United States district court for the
district in which the facility is situated.
TITLE II--GENERAL PROVISIONS
SEC. 201. DEFINITIONS.
As used in this Act--
(1) * * *
* * * * * * *
[(3) The term ``institution of higher education''
means an educational institution in any State which (A)
admits as regular students only individuals having a
certificate of graduation from a school providing
secondary education, or the recognized equivalent of
such a certificate; (B) is legally authorized within
such State to provide a program of education beyond
secondary education; (C) provides an educational
program for which it awards a bachelor's degree; (D)
includes one or more professional or graduate schools;
(E) is a public or nonprofit private institution; and
(F) is accredited by a nationally recognized
accrediting agency or association. For the purpose of
subparagraph (F), the Secretary shall publish a list of
nationally recognized accrediting agencies or
associations which the Secretary determines to be
reliable authority as to the quality of training
offered.]
[(4)] (3) The term ``Secretary'' means the Secretary
of Education.
[(5)] (4) The term ``State'' means each of the
several States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, American Samoa, the
Virgin Islands, and the Commonwealth of the Northern
Mariana Islands.
[(6)] (5) The term ``NTID'' means the National
Technical Institute for the Deaf.
[(7)] (6) The term ``University'' means Gallaudet
University.
(7) The term ``RIT'' means the Rochester Institute of
Technology.
* * * * * * *
SEC. 203. AUDIT.
(a) [General Accounting Office] Government Accountability
Office Authority.--All financial transactions and accounts of
the corporation or institution of higher education, as the case
may be, in connection with the expenditure of any moneys
appropriated by any law of the United States--
(1) * * *
(2) for the benefit of the National Technical
Institute for the Deaf or for the construction of
facilities for its use,
shall be settled and adjusted in the [General Accounting
Office] Government Accountability Office.
(b) Independent Financial and Compliance Audit.--
(1) In general.--Gallaudet University shall have an
annual independent financial and compliance audit made
of the programs and activities of the University,
including the national mission and school operations of
the elementary and secondary education programs at
Gallaudet. [The institution of higher education with
which the Secretary has an agreement under section 112
shall have an annual independent financial and
compliance audit made of the programs and activities of
such institution of higher education, including NTID,
and containing specific schedules and analyses for all
NTID funds, as determined by the Secretary.] NTID shall
have an annual independent financial and compliance
audit made of RIT programs and activities, including
NTID programs and activities.
(2) Compliance.--As used in paragraph (1), compliance
means compliance with [sections 102(b), 105(b)(4),
112(b)(5), and 203(c), paragraphs (2) and (3) of
section 207(b), subsections (b)(2), (b)(3), and (c)
through (f ), of section 207] 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 210.
(3) Submission of audits.--A copy of each audit
described in paragraph (1) shall be provided to the
Secretary and the Committee on Education and the
Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate within 15 days of acceptance of the audit by
the University [or the institution authorized to
establish and operate the NTID under section 112(a)] or
RIT, as the case may be, but not later than January 10
of each year.
(c) Limitations Regarding Expenditure of Funds.--
(1) * * *
(2) Policies.--
(A) Not later than 180 days after the date of
the enactment of the Education of the Deaf Act
Amendments of 1992, the University and NTID
shall develop policies, to be applied
uniformly, for the allowability of expenditures
for each institution. These policies should
reflect the unique nature of these
institutions. The principles established by the
Office of Management and Budget for costs of
educational institutions may be used as
guidance in developing these policies. General
principles relating to allowability and
reasonableness of all costs associated with the
operations of the institutions shall be
addressed. These policies shall be submitted to
the Secretary for review and comments, and to
[the Committee on Education and Labor of the
House of Representatives and the Committee on
Labor and Human Resources of the Senate] the
Committee on Education and the Workforce of the
House of Representatives and the Committee on
Health, Education, Labor, and Pensions of the
Senate.
* * * * * * *
SEC. 204. REPORTS.
The Board of Trustees of Gallaudet University and the Board
of Trustees [or other governing body of the institution of
higher education with which the Secretary has an agreement
under section 112] of RIT shall prepare and submit an annual
report to the Secretary, and to the [Committee on Education and
Labor of the House of Representatives and the Committee on
Labor and Human Resources of the Senate] Committee on Education
and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the
Senate, not later than 100 days after the end of each fiscal
year, which shall include the following:
(1) * * *
(2) For the preceding academic year, and to the
extent possible, the following data on individuals who
are deaf and from minority backgrounds and who are
students (at all educational levels) or employees:
(A) * * *
* * * * * * *
(C) The disposition of these students [upon
graduation/completion] within one year of
graduation/completion of programs at NTID and
at the University and its elementary and
secondary schools in comparison to students
from non-minority backgrounds.
* * * * * * *
(3)(A) A summary of the annual audited financial
statements and auditor's report of the University, as
required under section 203, and (B) a summary of the
annual audited financial statements and auditor's
report [of the institution of higher education with
which the Secretary has an agreement under section 112,
including specific schedules and analyses for all NTID
funds, as required under section 203] of RIT programs
and activities, and such supplementary schedules
presenting financial information for NTID for the end
of the Federal fiscal year as determined by the
Secretary.
* * * * * * *
SEC. 205. MONITORING, EVALUATION, AND REPORTING.
(a) * * *
* * * * * * *
(c) Authorization of Appropriations.--There are authorized to
be appropriated such sums as may be necessary for each of the
[fiscal years 1998 through 2003] fiscal years 2006 through 2011
to carry out the monitoring and evaluation activities
authorized under this section.
SEC. 206. LIAISON FOR EDUCATIONAL PROGRAMS.
(a) Designation of Liaison.--[Not later than 30 days after
the date of enactment of this Act, the] The Secretary shall
designate an individual in the Office of Special Education and
Rehabilitative Services of the Department of Education from
among individuals who have experience in the education of
individuals who are deaf to serve as liaison between the
Department and Gallaudet University, the National Technical
Institute for the Deaf, and other postsecondary educational
programs for individuals who are deaf under the Individuals
with Disabilities Education Act, the Rehabilitation Act of
1973, and other Federal or non-Federal agencies, institutions,
or organizations involved with the education or rehabilitation
of individuals who are deaf or hard of hearing.
* * * * * * *
SEC. 207. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
(a) Establishment of Programs.--
(1) * * *
(2) The Secretary and the Board of Trustees [or other
governing body of the institution of higher education
with which the Secretary has an agreement under section
112] of RIT are authorized to establish the National
Technical Institute for the Deaf Federal Endowment Fund
as a permanent endowment fund, in accordance with this
section, for the purpose of promoting the financial
independence of NTID. The Secretary and the Board or
other governing body may enter into such agreements as
may be necessary to carry out the purposes of this
section with respect to NTID.
* * * * * * *
(h) Authorization of Appropriations.--
(1) In the case of the University, there are
authorized to be appropriated for the purposes of this
section such sums as may be necessary for each of the
[fiscal years 1998 through 2003] fiscal years 2006
through 2011.
(2) In the case of NTID, there are authorized to be
appropriated for the purposes of this section such sums
as may be necessary for each of the [fiscal years 1998
through 2003] fiscal years 2006 through 2011.
* * * * * * *
SEC. 208. OVERSIGHT AND EFFECT OF AGREEMENTS.
(a) Oversight Activities.--Nothing in this Act shall be
construed to diminish the oversight activities of the
[Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives] Committee on Education and the Workforce of
the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate with respect to
any agreement entered into between the Secretary of Education
and Gallaudet University, and [the institution of higher
education with which the Secretary has an agreement under part
B of title I] RIT.
* * * * * * *
SEC. 212. AUTHORIZATION OF APPROPRIATIONS.
(a) Gallaudet University.--There are authorized to be
appropriated such sums as may be necessary for each of the
[fiscal years 1998 through 2003] fiscal years 2006 through 2011
to carry out the provisions of title I and this title, relating
to--
(1) * * *
* * * * * * *
(b) National Technical Institute for the Deaf.--There are
authorized to be appropriated such sums as may be necessary for
each of the [fiscal years 1998 through 2003] fiscal years 2006
through 2011 to carry out the provisions of title I and this
title relating to the National Technical Institute for the
Deaf.
----------
HIGHER EDUCATION AMENDMENTS OF 1998
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
* * * * * * *
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
* * * * * * *
SEC. 422. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.
(a) * * *
* * * * * * *
(d) Effective Date.--The amendments made by subsections (a)
and (b) shall be effective during the period beginning on
October 1, 1998, and ending on September 30, 2002. Such
amendments shall also be effective on and after July 1, 2006.
* * * * * * *
TITLE VIII--STUDIES, REPORTS, AND RELATED PROGRAMS
PART A--STUDIES
[SEC. 801. STUDY OF MARKET MECHANISMS IN FEDERAL STUDENT LOAN PROGRAMS.
[(a) Study Required.--The Comptroller General and the
Secretary of Education shall convene a study group including
the Secretary of the Treasury, the Director of the Office of
Management and Budget, the Director of the Congressional Budget
Office, representatives of entities making loans under part B
of title IV of the Higher Education Act of 1965,
representatives of other entities in the financial services
community, representatives of other participants in the student
loan programs, and such other individuals as the Comptroller
General and the Secretary may designate. The Comptroller
General and Secretary, in consultation with the study group,
shall design and conduct a study to identify and evaluate means
of establishing a market mechanism for the delivery of loans
made pursuant to such title IV.
[(b) Design of Study.--The study required under this section
shall identify not fewer than 3 different market mechanisms for
use in determining lender return on student loans while
continuing to meet the other objectives of the programs under
parts B and D of such title IV, including the provision of
loans to all eligible students. Consideration may be given to
the use of auctions and to the feasibility of incorporating
income-contingent repayment options into the student loan
system and requiring borrowers to repay through income tax
withholding.
[(c) Evaluation of Market Mechanisms.--The mechanisms
identified under subsection (b) shall be evaluated in terms of
the following areas:
[(1) The cost or savings of loans to or for
borrowers, including parent borrowers.
[(2) The cost or savings of the mechanism to the
Federal Government.
[(3) The cost, effect, and distribution of Federal
subsidies to or for participants in the program.
[(4) The ability of the mechanism to accommodate the
potential distribution of subsidies to students through
an income-contingent repayment option.
[(5) The effect on the simplicity of the program,
including the effect of the plan on the regulatory
burden on students, institutions, lenders, and other
program participants.
[(6) The effect on investment in human capital and
resources, loan servicing capability, and the quality
of service to the borrower.
[(7) The effect on the diversity of lenders,
including community-based lenders, originating and
secondary market lenders.
[(8) The effect on program integrity.
[(9) The degree to which the mechanism will provide
market incentives to encourage continuous improvement
in the delivery and servicing of loans.
[(10) The availability of loans to students by
region, income level, and by categories of
institutions.
[(11) The proposed Federal and State role in the
operation of the mechanism.
[(12) A description of how the mechanism will be
administered and operated.
[(13) Transition procedures, including the effect on
loan availability during a transition period.
[(14) Any other areas the study group may include.
[(d) Preliminary Findings and Publication of Study.--Not
later than November 15, 2000, the study group shall make the
group's preliminary findings, including any additional or
dissenting views, available to the public with a 60-day request
for public comment. The study group shall review these comments
and the Comptroller General and the Secretary shall transmit a
final report, including any additional or dissenting views, to
the Committee on Education and the Workforce of the House of
Representatives, the Committee on Labor and Human Resources of
the Senate, and the Committees on the Budget of the House of
Representatives and the Senate not later than May 15, 2001.
[SEC. 802. STUDY OF THE FEASIBILITY OF ALTERNATIVE FINANCIAL
INSTRUMENTS FOR DETERMINING LENDER YIELDS.
[(a) Study Required.--The Comptroller General and the
Secretary of Education shall convene a study group including
the Secretary of the Treasury, the Director of the Office of
Management and Budget, the Director of the Congressional Budget
Office, representatives of entities making loans under part B
of title IV of the Higher Education Act of 1965,
representatives of other entities in the financial services
community, representatives of other participants in the student
loan programs, and such other individuals as the Comptroller
General and the Secretary of Education may designate. The
Comptroller General and the Secretary of Education, in
consultation with the study group, shall evaluate the 91-day
Treasury bill, 30-day and 90-day commercial paper, and the 90-
day London Interbank Offered Rate (in this section referred to
as ``LIBOR'') in terms of the following:
[(1) The historical liquidity of the market for each,
and a historical comparison of the spread between: (A)
the 30-day and 90-day commercial paper rate,
respectively, and the 91-day Treasury bill rate; and
(B) the spread between the LIBOR and the 91-day
Treasury bill rate.
[(2) The historical volatility of the rates and
projections of future volatility.
[(3) Recent changes in the liquidity of the market
for each such instrument in a balanced Federal budget
environment and a low-interest rate environment, and
projections of future liquidity assuming the Federal
budget remains in balance.
[(4) The cost or savings to lenders with small,
medium, and large student loan portfolios of basing
lender yield on either the 30-day or 90-day commercial
paper rate or the LIBOR while continuing to base the
borrower rate on the 91-day Treasury bill, and the
effect of such change on the diversity of lenders
participating in the program.
[(5) The cost or savings to the Federal Government of
basing lender yield on either the 30-day or 90-day
commercial paper rate or the LIBOR while continuing to
base the borrower rate on the 91-day Treasury bill.
[(6) Any possible risks or benefits to the student
loan programs under the Higher Education Act of 1965
and to student borrowers.
[(7) Any other areas the Comptroller General and the
Secretary of Education agree to include.
[(b) Report Required.--Not later than 6 months after the date
of enactment of this Act, the Comptroller General and the
Secretary shall submit a final report regarding the findings of
the study group to the Committee on Education and the Workforce
of the House of Representatives and the Committee on Labor and
Human Resources of the Senate.
[SEC. 803. STUDENT-RELATED DEBT STUDY REQUIRED.
[(a) In General.--The Secretary of Education shall conduct a
study that analyzes the distribution and increase in student-
related debt in terms of--
[(1) demographic characteristics, such as race or
ethnicity, and family income;
[(2) type of institution and whether the institution
is a public or private institution;
[(3) loan source, such as Federal, State,
institutional or other, and, if the loan source is
Federal, whether the loan is or is not subsidized;
[(4) academic field of study;
[(5) parent loans, and whether the parent loans are
federally guaranteed, private, or property-secured such
as home equity loans; and
[(6) relation of student debt or anticipated debt
to--
[(A) students' decisions about whether and
where to enroll in college and whether or how
much to borrow in order to attend college;
[(B) the length of time it takes students to
earn baccalaureate degrees;
[(C) students' decisions about whether and
where to attend graduate school;
[(D) graduates' employment decisions;
[(E) graduates' burden of repayment as
reflected by the graduates' ability to save for
retirement or invest in a home; and
[(F) students' future earnings.
[(b) Report.--After conclusion of the study required by
subsection (a), the Secretary of Education shall submit a final
report regarding the findings of the study to the Committee on
Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives not
later than 18 months after the date of enactment of the Higher
Education Amendments of 1998.
[(c) Information.--After the study and report under this
section are concluded, the Secretary of Education shall
determine which information described in subsection (a) would
be useful for families to know and shall include such
information as part of the comparative information provided to
families about the costs of higher education under the
provisions of part C of title I.]
SEC. 804. STUDY OF TRANSFER OF CREDITS.
(a) * * *
(b) Report.--Not later than [one year after the date of
enactment of this Act] September 30, 2007, the Secretary of
Education shall submit a report to the Chairman and Ranking
Minority Member of the Committee on Education and the Workforce
of the House of Representatives and the Committee on Labor and
Human Resources of the Senate detailing the Secretary's
findings regarding the study conducted under subsection (a).
The Secretary's report shall include such recommendation with
respect to the recognition of accrediting agencies or
associations and policies of institutions of higher education
as the Secretary deems advisable.
[SEC. 805. STUDY OF OPPORTUNITIES FOR PARTICIPATION IN ATHLETICS
PROGRAMS.
[(a) Study.--The Comptroller General shall conduct a study of
the opportunities for participation in intercollegiate
athletics. The study shall address issues including--
[(1) the extent to which the number of--
[(A) secondary school athletic teams has
increased or decreased in the 20 years
preceding 1998 (in aggregate terms); and
[(B) intercollegiate athletic teams has
increased or decreased in the 20 years
preceding 1998 (in aggregate terms) at 2-year
and 4-year institutions of higher education;
[(2) the extent to which participation by student-
athletes in secondary school and intercollegiate
athletics has increased or decreased in the 20 years
preceding 1998 (in aggregate terms);
[(3) over the 20-year period preceding 1998, a list
of the men's and women's secondary school and
intercollegiate sports, ranked in order of the sports
most affected by increases or decreases in levels of
participation and numbers of teams (in the aggregate);
[(4) all factors that have influenced campus
officials to add or discontinue sports teams at
secondary schools and institutions of higher education,
including--
[(A) institutional mission and priorities;
[(B) budgetary pressures;
[(C) institutional reforms and restructuring;
[(D) escalating liability insurance premiums;
[(E) changing student and community interest
in a sport;
[(F) advancement of diversity among students;
[(G) lack of necessary level of
competitiveness of the sports program;
[(H) club level sport achieving a level of
competitiveness to make the sport a viable
varsity level sport;
[(I) injuries or deaths; and
[(J) conference realignment;
[(5) the actions that institutions of higher
education have taken when decreasing the level of
participation in intercollegiate sports, or the number
of teams, in terms of providing information, advice,
scholarship maintenance, counseling, advance warning,
and an opportunity for student-athletes to be involved
in the decisionmaking process;
[(6) the administrative processes and procedures used
by institutions of higher education when determining
whether to increase or decrease intercollegiate
athletic teams or participation by student-athletes;
[(7) the budgetary or fiscal impact, if any, of a
decision by an institution of higher education--
[(A) to increase or decrease the number of
intercollegiate athletic teams or the
participation of student-athletes; or
[(B) to be involved in a conference
realignment; and
[(8) the alternatives, if any, institutions of higher
education have pursued in lieu of eliminating, or
severely reducing the funding for, an intercollegiate
sport, and the success of such alternatives.
[(b) Report.--The Comptroller General shall submit a report
regarding the results of the study to the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives.]
SEC. 806. STUDY OF THE EFFECTIVENESS OF COHORT DEFAULT RATES FOR
INSTITUTIONS WITH FEW STUDENT LOAN BORROWERS.
(a) Study Required.--The Secretary of Education shall conduct
a study of the effectiveness of cohort default rates as an
indicator of administrative capability and program quality for
institutions of [higher education at which less] higher
education. The study shall also review the effect of cohort
default rates specifically on institutions of higher education
at which less than 15 percent of students eligible to borrow
participate in the Federal student loan programs under title IV
of the Higher Education Act of 1965 and fewer than 30 borrowers
enter repayment in any fiscal year. At a minimum, the study
shall include--
(1) * * *
* * * * * * *
(c) Report to Congress.--The Secretary of Education shall
report to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the
House of Representatives not later than [September 30, 1999,]
September 30, 2007, regarding the results of the study
described in subsection (a).
* * * * * * *
[PART C--COMMUNITY SCHOLARSHIP MOBILIZATION
[SEC. 811. SHORT TITLE.
[This part may be cited as the ``Community Scholarship
Mobilization Act''.
[SEC. 812. FINDINGS.
[Congress finds that--
[(1) the local community, when properly organized and
challenged, is one of the best sources of academic
support, motivation toward achievement, and financial
resources for aspiring postsecondary students;
[(2) local communities, working to complement or
augment services currently offered by area schools and
colleges, can raise the educational expectations and
increase the rate of postsecondary attendance of their
youth by forming locally-based organizations that
provide both academic support (including guidance,
counseling, mentoring, tutoring, encouragement, and
recognition) and tangible, locally raised, effectively
targeted, publicly recognized, financial assistance;
[(3) proven methods of stimulating these community
efforts can be promoted through Federal support for the
establishment of regional, State, or community program
centers to organize and challenge community efforts to
develop educational incentives and support for local
students; and
[(4) using Federal funds to leverage private
contributions to help students from low-income families
attain educational and career goals is an efficient and
effective investment of scarce taxpayer-provided
resources.
[SEC. 813. DEFINITIONS.
[In this part:
[(1) Regional, state, or community program center.--
The term ``regional, State, or community program
center'' means an organization that--
[(A) is a division or member of, responsible
to, and overseen by, a national organization;
and
[(B) is staffed by professionals trained to
create, develop, and sustain local entities in
towns, cities, and neighborhoods.
[(2) Local entity.--The term ``local entity'' means
an organization that--
[(A) is a nonprofit 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 shall
meet this criteria through affiliation with the
national organization);
[(B) is formed for the purpose of providing
educational scholarships and academic support
for residents of the local community served by
such organization;
[(C) solicits broad-based community support
in its academic support and fund-raising
activities;
[(D) is broadly representative of the local
community in the structures of its volunteer-
operated organization and has a board of
directors that includes leaders from local
neighborhood organizations and neighborhood
residents, such as school or college personnel,
parents, students, community agency
representatives, retirees, and representatives
of the business community;
[(E) awards scholarships without regard to
age, sex, marital status, race, creed, color,
religion, national origin, or disability; and
[(F) gives priority to awarding scholarships
for postsecondary education to deserving
students from low-income families in the local
community.
[(3) National organization.--The term ``national
organization'' means an organization that--
[(A) has the capacity to create, develop and
sustain local entities and affiliated regional,
State, or community program centers;
[(B) has the capacity to sustain newly
created local entities in towns, cities, and
neighborhoods through ongoing training support
programs;
[(C) 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;
[(D) is a publicly supported organization
within the meaning of section 170(b)(1)(A)(iv)
of such Code;
[(E) ensures that each of the organization's
local entities meet the criteria described in
subparagraphs (C) and (D); and
[(F) has a program for or experience in
cooperating with secondary and postsecondary
institutions in carrying out the organization's
scholarship and academic support activities.
[(4) High poverty area.--The term ``high poverty
area'' means a community with a higher percentage of
children from low-income families than the national
average of such percentage and a lower percentage of
children pursuing postsecondary education than the
national average of such percentage.
[(5) Secretary.--The term ``Secretary'' means the
Secretary of Education.
[(6) Students from low-income families.--The term
``students from low-income families'' means students
determined, pursuant to part F of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087kk et
seq.), to be eligible for a Federal Pell Grant under
subpart 1 of part A of title IV of such Act (20 U.S.C.
1070a).
[SEC. 814. PURPOSE; ENDOWMENT GRANT AUTHORITY.
[(a) Purpose.--It is the purpose of this part to establish
and support regional, State or community program centers to
enable such centers to foster the development of local entities
in high poverty areas that promote higher education goals for
students from low-income families by--
[(1) providing academic support, including guidance,
counseling, mentoring, tutoring, and recognition; and
[(2) providing scholarship assistance for the cost of
postsecondary education.
[(b) Endowment Grant Authority.--From the funds appropriated
pursuant to the authority of section 816, the Secretary shall
award an endowment grant, on a competitive basis, to a national
organization to enable such organization to support the
establishment or ongoing work of regional, State or community
program centers that foster the development of local entities
in high poverty areas to improve secondary school graduation
rates and postsecondary attendance through the provision of
academic support services and scholarship assistance for the
cost of postsecondary education.
[SEC. 815. GRANT AGREEMENT AND REQUIREMENTS.
[(a) In General.--The Secretary shall award one or more
endowment grants described in section 814(b) pursuant to an
agreement between the Secretary and a national organization.
Such agreement shall--
[(1) require a national organization to establish an
endowment fund in the amount of the grant, the corpus
of which shall remain intact and the interest income
from which shall be used to support the activities
described in paragraphs (2) and (3);
[(2) require a national organization to use 70
percent of the interest income from the endowment fund
in any fiscal year to support the establishment or
ongoing work of regional, State or community program
centers to enable such centers to work with local
communities to establish local entities in high poverty
areas and provide ongoing technical assistance,
training workshops, and other activities to help ensure
the ongoing success of the local entities;
[(3) require a national organization to use 30
percent of the interest income from the endowment fund
in any fiscal year to provide scholarships for
postsecondary education to students from low-income
families, which scholarships shall be matched on a
dollar-for-dollar basis from funds raised by the local
entities;
[(4) require that at least 50 percent of all the
interest income from the endowment be allocated to
establish new local entities or support regional, State
or community program centers in high poverty areas;
[(5) require a national organization to submit, for
each fiscal year in which such organization uses the
interest from the endowment fund, a report to the
Secretary that contains--
[(A) a description of the programs and
activities supported by the interest on the
endowment fund;
[(B) the audited financial statement of the
national organization for the preceding fiscal
year;
[(C) a plan for the programs and activities
to be supported by the interest on the
endowment fund as the Secretary may require;
[(D) an evaluation of the programs and
activities supported by the interest on the
endowment fund as the Secretary may require;
and
[(E) data indicating the number of students
from low-income families who receive
scholarships from local entities, and the
amounts of such scholarships;
[(6) contain such assurances as the Secretary may
require with respect to the management and operation of
the endowment fund; and
[(7) contain an assurance that if the Secretary
determines that such organization is not in substantial
compliance with the provisions of this part, then the
national organization shall pay to the Secretary an
amount equal to the corpus of the endowment fund plus
any accrued interest on such fund that is available to
the national organization on the date of such
determination.
[(b) Returned Funds.--All funds returned to the Secretary
pursuant to subsection (a)(7) shall be available to the
Secretary to carry out any scholarship or grant program
assisted under title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.).
[SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
[There are authorized to be appropriated to carry out this
part $10,000,000 for fiscal year 2000.
[PART D--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS
[SEC. 821. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION
TRAINING FOR INCARCERATED YOUTH OFFENDERS.
[(a) Findings.--Congress makes the following findings:
[(1) Over 150,000 youth offenders age 21 and younger
are incarcerated in the Nation's jails, juvenile
facilities, and prisons.
[(2) Most youth offenders who are incarcerated have
been sentenced as first-time adult felons.
[(3) Approximately 75 percent of youth offenders are
high school dropouts who lack basic literacy and life
skills, have little or no job experience, and lack
marketable skills.
[(4) The average incarcerated youth has attended
school only through grade 10.
[(5) Most of these youths can be diverted from a life
of crime into productive citizenship with available
educational, vocational, work skills, and related
service programs.
[(6) If not involved with educational programs while
incarcerated, almost all of these youths will return to
a life of crime upon release.
[(7) The average length of sentence for a youth
offender is about 3 years. Time spent in prison
provides a unique opportunity for education and
training.
[(8) Even with quality education and training
provided during incarceration, a period of intense
supervision, support, and counseling is needed upon
release to ensure effective reintegration of youth
offenders into society.
[(9) Research consistently shows that the vast
majority of incarcerated youths will not return to the
public schools to complete their education.
[(10) There is a need for alternative educational
opportunities during incarceration and after release.
[(b) Definition.--For purposes of this part, the term ``youth
offender'' means a male or female offender under the age of 25,
who is incarcerated in a State prison, including a prerelease
facility.
[(c) Grant Program.--The Secretary of Education (in this
section referred to as the ``Secretary'') shall establish a
program in accordance with this section to provide grants to
the State correctional education agencies in the States, from
allocations for the States under subsection (i), to assist and
encourage incarcerated youths to acquire functional literacy,
life, and job skills, through the pursuit of a postsecondary
education certificate, or an associate of arts or bachelor's
degree while in prison, and employment counseling and other
related services which start during incarceration and continue
through prerelease and while on parole.
[(d) Application.--To be eligible for a grant under this
section, a State correctional education agency shall submit to
the Secretary a proposal for a youth offender program that--
[(1) identifies the scope of the problem, including
the number of incarcerated youths in need of
postsecondary education and vocational 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 the evaluation methods and performance
measures that the State correctional education agency
will employ, which methods and measures--
[(A) shall be appropriate to meet the goals
and objectives of the proposal; and
[(B) shall include measures of--
[(i) program completion;
[(ii) student academic and vocational
skill attainment;
[(iii) success in job placement and
retention; and
[(iv) recidivism;
[(5) describes how the proposed programs are to be
integrated with existing State correctional education
programs (such as adult education, graduate education
degree programs, and vocational training) and State
industry programs;
[(6) addresses the educational needs of youth
offenders who are in alternative programs (such as boot
camps); and
[(7) describes how students will be selected so that
only youth offenders eligible under subsection (f )
will be enrolled in postsecondary programs.
[(e) Program Requirements.--Each State correctional education
agency receiving a grant under this section shall--
[(1) integrate activities carried out under the grant
with the objectives and activities of the school-to-
work programs of such State, including--
[(A) work experience or apprenticeship
programs;
[(B) transitional worksite job training for
vocational education students that is related
to the occupational goals of such students and
closely linked to classroom and laboratory
instruction;
[(C) placement services in occupations that
the students are preparing to enter;
[(D) employment-based learning programs; and
[(E) programs that address State and local
labor shortages;
[(2) annually report to the Secretary and the
Attorney
General on the results of the evaluations conducted
using the methods and performance measures contained in
the proposal; and
[(3) provide to each State for each student eligible
under subsection (f ) not more than $1,500 annually for
tuition, books, and essential materials, and not more
than $300 annually for related services such as career
development, substance abuse counseling, parenting
skills training, and health education, for each
eligible incarcerated youth.
[(f ) Student Eligibility.--A youth offender shall be
eligible for participation in a program receiving a grant under
this section if the youth offender--
[(1) is eligible to be released within 5 years
(including a youth offender who is eligible for parole
within such time); and
[(2) is 25 years of age or younger.
[(g) Length of Participation.--A State correctional education
agency receiving a grant under this section shall provide
educational and related services to each participating youth
offender for a period not to exceed 5 years, 1 year of which
may be devoted to study in a graduate education degree program
or to remedial education services for students who have
obtained a secondary school diploma or its recognized
equivalent. Educational and related services shall start during
the period of incarceration in prison or prerelease and may
continue during the period of parole.
[(h) 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.
[(i) Allocation of Funds.--From the funds appropriated
pursuant to subsection ( j) 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 (f ) in such State bears to the total
number of such students in all States.
[( j) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $17,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years.]
* * * * * * *
PART E--GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES
SEC. 826. GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES.
(a) * * *
* * * * * * *
[(f )] (e) Definitions.--In this section--
(1) * * *
* * * * * * *
[(g)] (f) Authorization of Appropriations.--For the purpose
of carrying out this part, there are authorized to be
appropriated $10,000,000 [for each of fiscal years 2001 through
2005] fiscal year 2006 and each of the 5 succeeding fiscal
years.
[PART F--IMPROVING UNITED STATES UNDERSTANDING OF SCIENCE, ENGINEERING,
AND TECHNOLOGY IN EAST ASIA
[SEC. 831. IMPROVING UNITED STATES UNDERSTANDING OF SCIENCE,
ENGINEERING, AND TECHNOLOGY IN EAST ASIA.
[(a) Establishment.--The Director of the National Science
Foundation is authorized, beginning in fiscal year 2000, to
carry out an interdisciplinary program of education and
research on East Asian science, engineering, and technology.
The Director shall carry out the interdisciplinary program in
consultation with the Secretary of Education.
[(b) Purposes.--The purposes of the program established under
this section shall be to--
[(1) increase understanding of East Asian research,
and innovation for the creative application of science
and technology to the problems of society;
[(2) provide scientists, engineers, technology
managers, and students with training in East Asian
languages, and with an understanding of research,
technology, and management of innovation, in East Asian
countries;
[(3) provide program participants with opportunities
to be directly involved in scientific and engineering
research, and activities related to the management of
scientific and technological innovation, in East Asia;
and
[(4) create mechanisms for cooperation and
partnerships among United States industry,
universities, colleges, not-for-profit institutions,
Federal laboratories (within the meaning of section
4(6) of the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3703(6))), and government, to
disseminate the results of the program assisted under
this section for the benefit of United States research
and innovation.
[(c) Participation by Federal Scientists, Engineers, and
Managers.--Scientists, engineers, and managers of science and
engineering programs in Federal agencies and the Federal
laboratories shall be eligible to participate in the program
assisted under this section on a reimbursable basis.
[(d) Requirement for Merit Review.--Awards made under the
program established under this section shall only be made using
a competitive, merit-based review process.
[(e) Authorization of Appropriations.--There is authorized to
be appropriated to carry out this section $10,000,000 for
fiscal year 2000.]
* * * * * * *
PART H--UNDERGROUND RAILROAD
SEC. 841. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.
(a) * * *
* * * * * * *
[(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $6,000,000 for
fiscal year 1999, $6,000,000 for fiscal year 2000, $6,000,000
for fiscal year 2001, $3,000,000 for fiscal year 2002, and
$3,000,000 for fiscal year 2003.]
(c) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this section $3,000,000 for fiscal
year 2006 and such sums as may be necessary for each of the 5
succeeding fiscal years.
* * * * * * *
[PART J--WEB-BASED EDUCATION COMMISSION
[SEC. 851. DEFINITIONS.
[(a) In General.--This part may be cited as the ``Web-Based
Education Commission Act''.
[(b) Definitions.--In this part:
[(1) Commission.--The term ``Commission'' means the
Web-Based Education Commission established under
section 852.
[(2) Information technology.--The term ``information
technology'' has the meaning given that term in section
5002 of the Information Technology Management Reform
Act of 1996 (110 Stat. 679).
[(3) State.--The term ``State'' means each of the
several States of the United States and the District of
Columbia.
[SEC. 852. ESTABLISHMENT OF WEB-BASED EDUCATION COMMISSION.
[(a) Establishment.--There is established a commission to be
known as the Web-Based Education Commission.
[(b) Membership.--
[(1) Composition.--The Commission shall be composed
of 16 members, of which--
[(A) three members shall be appointed by the
President, from among individuals representing
the Internet technology industry;
[(B) three members shall be appointed by the
Secretary, from among individuals with
expertise in accreditation, establishing
statewide curricula, and establishing
information technology networks pertaining to
education curricula;
[(C) two members shall be appointed by the
Majority Leader of the Senate;
[(D) two members shall be appointed by the
Minority Leader of the Senate;
[(E) two members shall be appointed by the
Speaker of the House of Representatives;
[(F) two members shall be appointed by the
Minority Leader of the House of
Representatives;
[(G) one member shall be appointed by the
Chairperson of the Committee on Health,
Education, Labor, and Pensions of the Senate
from among members of the Senate; and
[(H) one member shall be appointed by the
Chairperson of the Committee on Education and
the Workforce of the House of Representatives
from among members of the House of
Representatives.
[(2) Date.--The appointments of the members of the
Commission shall be made not later than 45 days after
the date of enactment of this Act.
[(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled in
the same manner as the original appointment.
[(d) Initial Meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed, the
Commission shall hold the Commission's first meeting.
[(e) Meetings.--The Commission shall meet at the call of the
Chairperson.
[(f ) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
[(g) Chairperson and Vice Chairperson.--The Commission shall
select a chairperson and vice chairperson from among the
members of the Commission.
[SEC. 853. DUTIES OF THE COMMISSION.
[(a) Study.--
[(1) In general.--The Commission shall conduct a
thorough study to assess the educational software
available in retail markets for secondary and
postsecondary students who choose to use such software.
[(2) Public hearings.--As part of the study conducted
under this subsection, the Commission shall hold public
hearings in each region of the United States concerning
the assessment referred to in paragraph (1).
[(3) Existing information.--To the extent
practicable, in carrying out the study under this
subsection, the Commission shall identify and use
existing information related to the assessment referred
to in paragraph (1).
[(b) Report.--Not later than 12 months after the first
meeting of the Commission, the Commission shall submit a report
to the President and Congress that shall contain a detailed
statement of the findings and conclusions of the Commission
resulting from the study, together with the Commission's
recommendations--
[(1) for such legislation and administrative actions
as the Commission considers to be appropriate; and
[(2) regarding the appropriate Federal role in
determining quality educational software products.
[(c) Facilitation of Exchange of Information.--In carrying
out the study under subsection (a), the Commission shall, to
the extent practicable, facilitate the exchange of information
concerning the issues that are the subject of the study among--
[(1) officials of the Federal Government, and State
governments and political subdivisions of States; and
[(2) educators from Federal, State, and local
institutions of higher education and secondary schools.
[SEC. 854. POWERS OF THE COMMISSION.
[(a) Hearings.--The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable to
carry out the duties of the Commission.
[(b) Information From Federal Agencies.--The Commission may
request from the head of any Federal agency or instrumentality
such information as the Commission considers necessary to carry
out the provisions of this part. Each such agency or
instrumentality shall, to the extent permitted by law and
subject to the exceptions set forth in section 552 of title 5,
United States Code (commonly referred to as the Freedom of
Information Act), furnish such information to the Commission
upon request.
[(c) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
[(d) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
[SEC. 855. COMMISSION PERSONNEL MATTERS.
[(a) Compensation of Members.--Except as provided in
subsection (b), each member of the Commission who is not an
officer or employee of the Federal Government shall serve
without compensation. All members of the Commission who are
officers or employees of the United States shall serve without
compensation in addition to that received for their services as
officers or employees of the United States.
[(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Commission.
[(c) Staff.--
[(1) In general.--The Chairperson of the Commission
may, without regard to the civil service laws and
regulations, appoint and terminate an executive
director and such other additional personnel as may be
necessary to enable the Commission to perform the
Commission's duties. The employment of an executive
director shall be subject to confirmation by the
Commission.
[(2) Compensation.--The Chairperson of the Commission
may fix the compensation of the executive director and
other personnel without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of
positions and General Schedule pay rates, except that
the rate of pay for the executive director and other
personnel may not exceed the rate payable for level V
of the Executive Schedule under section 5316 of such
title.
[(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
[(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals that do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
[SEC. 856. TERMINATION OF THE COMMISSION.
[The Commission shall terminate on the date that is 90 days
after the date on which the Commission submits the Commission's
report under section 853(b).
[SEC. 857. AUTHORIZATION OF APPROPRIATIONS.
[(a) In General.--There are authorized to be appropriated
$450,000 for fiscal year 1999 to the Commission to carry out
this part.
[(b) Availability.--Any sums appropriated under the
authorization contained in this section shall remain available,
without fiscal year limitation, until expended.]
* * * * * * *
----------
TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ASSISTANCE ACT OF 1978
* * * * * * *
DEFINITIONS
Sec. 2. (a) For purposes of this Act, the term--
(1) * * *
* * * * * * *
(6) ``national Indian organization'' means an
organization which the Secretary finds is nationally
based, represents a substantial Indian constituency,
and has expertise [in the field of Indian education] in
the field of Tribal Colleges and Universities and
Indian higher education;
* * * * * * *
(b) The following conditions shall apply for the purpose of
determining the Indian student count pursuant to paragraph (7)
of subsection (a):
(1) * * *
* * * * * * *
[(5) Credits earned in a continuing education program
shall be converted to a credit-hour basis in accordance
with the tribally controlled college or university's
system for providing credit for participation in such
program.]
(5) Eligible credits earned in a continuing education
program shall be determined as one credit for every 10
contact hours for institutions on a quarter system, and
15 contact hours for institutions 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
may not exceed 20 percent of an institution's total
Indian student count.
* * * * * * *
TITLE I--TRIBALLY CONTROLLED COLLEGES OR UNIVERSITIES
* * * * * * *
ELIGIBLE GRANT RECIPIENTS
Sec. 103. To be eligible for assistance under this title, a
tribally controlled college or university must be one which--
(1) * * *
(2) demonstrates adherence to stated goals, a
philosophy, or a plan of operation which is directed to
meet the needs of Indians; [and]
(3) if in operation for more than one year, has
students a majority of whom are Indians[.]; and
(4) has been accredited by a nationally recognized
accrediting agency or association determined by the
Secretary of Education 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.
* * * * * * *
APPROPRIATION AUTHORIZATION
Sec. 110. (a)(1) There is authorized to be appropriated, for
the purpose of carrying out section 105, $3,200,000 for fiscal
year [1999] 2006 and such sums as may be necessary for each of
the [4] 5 succeeding fiscal years.
(2) There is authorized to be appropriated for the purpose of
carrying out section 107, $40,000,000 for fiscal year [1999]
2006 and such sums as may be necessary for each of the [4] 5
succeeding fiscal years.
(3) There is authorized to be appropriated for the purpose of
carrying out sections 112(b) and 113, $10,000,000 for fiscal
year [1999] 2006 and such sums as may be necessary for each of
the [4] 5 succeeding fiscal years.
(4) Funds appropriated pursuant to the authorizations under
this section for the fiscal year [1999] 2006 and for each of
the succeeding 4 fiscal years shall be transferred by the
Secretary of the Treasury through the most expeditious method
available, with each of the tribally controlled colleges or
universities being designated as its own certifying agency.
* * * * * * *
TITLE III--TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ENDOWMENT PROGRAM
* * * * * * *
AUTHORIZATION OF APPROPRIATIONS
Sec. 306. (a) There are authorized to be appropriated to
carry out the provisions of this title, $10,000,000 for fiscal
year [1999] 2006 and such sums as may be necessary for each of
the [4] 5 succeeding fiscal years.
* * * * * * *
TITLE IV--TRIBAL ECONOMIC DEVELOPMENT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Tribal Economic Development
and Technology Related Education Assistance Act of 1990''.
* * * * * * *
SEC. 403. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for grants under this
title, $2,000,000 for fiscal year [1999] 2006 and such sums as
may be necessary for each of the [4] 5 succeeding fiscal years.
----------
SECTION 5 OF THE NAVAJO COMMUNITY COLLEGE ACT
AUTHORIZATION OF APPROPRIATIONS
Sec. 5. (a)(1) For the purpose of making construction grants
under this Act, there are authorized to be appropriated
$2,000,000 for fiscal year [1999] 2006 and such sums as may be
necessary for each of the [4] 5 succeeding fiscal years.
* * * * * * *
----------
SECTION 1543 OF THE EDUCATION AMENDMENTS OF 1992
SEC. 1543. OLYMPIC SCHOLARSHIPS.
(a) * * *
* * * * * * *
(d) Authorization of Appropriations.--There are authorized to
be appropriated $5,000,000 for fiscal year [1999] 2006 and such
sums as may be necessary for each of the [4] 5 succeeding
fiscal years to carry out this section.
* * * * * * *
MINORITY VIEWS
INTRODUCTION
Every year millions of hardworking American families and
students fall short when paying for college costs, even after
grants, loans, family savings and work. The weakened economy,
huge tax cuts for the super rich, and massive federal budget
cuts have hurt state budgets, driving up tuition prices for
students--more than 75 percent of whom attend public
institutions.
The typical low-income student at a 4-year public college
already falls short by $3,800, and the typical middle-income
student falls $2,300 short, when paying for college each year.
Rather than helping these students and families, H.R. 609
makes students pay even more for their college education. The
bill cuts $8.7 billion from the student aid programs and fails
to significantly boost affordable college opportunities. Due to
these shortcomings, we oppose the Committee passage of this
legislation.
H.R. 609--Makes college more expensive by raising student loan interest
rate caps
In 2002, Congress made a promise to students to lower the
interest rate cap on student loans to 6.8 percent in 2006. H.R.
609 goes back on this promise, and sets the cap at 8.25
percent. As a result, the typical student borrower, with
$17,500 in debt, would be forced to pay as much as $2,600 more
for his or her loans.
Democrats offered an amendment that would have maintained
Congress' bipartisan promise to lower the student loan interest
rate cap, with a variable interest rate (for all non-
consolidation loans), at no additional cost to taxpayers or
students. The committee rejected this amendment.
H.R. 609--Forces students and families to pay for the National Budget
Crisis
The bill saves $8.7 billion by: raising interest rates on
student consolidation loans; raising the interest rate cap on
student loans; eliminating borrower benefits that lower the
cost of borrowing; cutting critical student aid delivery funds;
and, eliminating some of the excessive subsidies paid to
student lenders. This raid on student aid represents the single
largest cuts to the nation's federal student aid programs ever.
As a result of these cuts, the typical student borrower, with
$17,500 in debt, could be forced to pay up to $5,800 more for
his or her college loans, than compared to current law.
After widespread criticism from Democrats, students and
editorial writers, the Majority finally agreed to reduce
excessive subsidies to large lending institutions. But instead
of recycling those dollars into low-interest loans and
additional grants, the Majority plans to use the $8.7 billion
in cuts--to lender subsidies and student aid--for alleged
deficit reduction. They believed for years it was acceptable to
spend billions in excessive subsidies on profitable banks, but
now they refuse to spend this money on students.
The Majority claims that these cuts must be made in the
budget reconciliation process to reduce the federal deficit--
yet the budget reconciliation actually increases the federal
deficit by $35 billion over 5 years.
This budget scheme balances the irresponsible management of
our nation's budget on the backs of students and families who
are already struggling to pay for college.
We should be doing more, not less, to increase affordable
college opportunities not just because it is the right thing to
do but because it is critical to the economic prosperity and
well-being of the nation.
Since the passage of the Higher Education Act in 1965,
Federal grants, loans and work-study have helped to send
millions of students to college, many of whom would not have
gone to college without the help.
This investment has been critical in making the U.S. the
world economic leader it is today. However, the global economy
has become significantly more competitive since 1965. Whether
the U.S. retains its preeminence in this fiercely competitive
environment will depend more and more on having a highly
skilled workforce. Higher education is the critical tool for
building that workforce.
This raid on student aid misses a golden opportunity to re-
direct billions of dollars in savings by recycling the
excessive subsidies paid to student lenders into additional
grant aid for students--without any additional costs to
taxpayers. This opportunity is an essential step towards
ensuring that all college qualified students receive an
affordable top quality higher education and that the U.S. is
competitive in the global economy.
H.R. 609--Makes student borrowers pay more for consolidation loans
Committee members adopted a Petri-Boehner amendment that
will give students the choice of a fixed or variable interest
rate on consolidation--but that raises the interest rate on
fixed consolidation loans by 1.0 percent (to 91-day Treasury
bill + 3.3 percent, capped at 8.25 percent) and forces students
to pay a .5 percent fee on fixed consolidation loans.
While this change improved the base bill, it would still
result in the typical student borrower paying $2,800 more for
his or her college loans, than under current law.
Democrats opposed raising rates on consolidation loans, but
offered a 2nd degree amendment that would have kept cost
increases to student borrowers much lower and raised almost the
same amount of savings. The Miller 2nd degree amendment would
have lowered the interest rate on fixed consolidation loans and
eliminated the .5 percent origination fee. Republicans rejected
the Democratic alternative.
COMPARISON OF CONSOLIDATION LOAN AMENDMENTS
----------------------------------------------------------------------------------------------------------------
Miller 2nd degree
Current law Petri-Boehner amendment amendment
----------------------------------------------------------------------------------------------------------------
Student Consolidation Interest Rate 91-Day Treasury bill + 91-Day Treasury bill + 91-Day Treasury bill +
Formula--In Repayment. 2.3 percent, capped at 3.3 percent, capped at 2.8 percent, capped at
8.25 percent. 8.25 percent. 8.25 percent.
Student Fee for Consolidation Loan... No fee................. 0.50%.................. No fee.
CBO Savings.......................... n/a.................... $11.5 billion over 6 $11.5 billion over 6
years. years.
----------------------------------------------------------------------------------------------------------------
H.R. 609--Fails to provide a real increase in the maximum Pell Grant
Scholarship
The declining buying power of Pell grant scholarships and
rising tuition prices are forcing millions of students to
assume high debt, work long hours or even forgo college. The
Committee has missed another opportunity to restore the
original buying power of Pell grant scholarships. Last year the
maximum Pell grant scholarship was worth $800 less, in
inflation-adjusted terms, than it was in 1975-76.
Not only does H.R. 609 fail to restore the Pell grants to
the level of its original value, but it fails to make good on
the Republican promise of an actual $5,100 maximum Pell grant
scholarship. Instead, the bill raises the authorizing level by
a mere $200 dollars over 6 years.
Democrats offered an amendment that would have provided a
guaranteed boost, with mandatory funds, of $500 the maximum
Pell grant over 5 years, raising the overall Pell Maximum award
to $4,500--at no new cost to taxpayers. Republicans rejected
this modest Pell increase.
H.R. 609--Changes the formula for campus based aid allocation and as a
result takes aid from one needy student to pay for another
needy student
H.R. 609 alters the formula for distributing funding for
campus-based aid programs (Supplemental Educational Opportunity
Grants, Work Study and Perkins Loans) and will significantly
decrease aid to students in 29 states. The elimination of the
base guarantee in the funding formula will harm thousands of
students because it will simply take funds from disadvantaged
students and shift those funds to another group of
disadvantaged students. Any reallocation of the formula must
include a significant increase in the overall investment of
these successful programs, so that we don't rob one student in
need to provide for another student in need.
Reps. Tierney and Kind offered an amendment to boost and
equalize campus based aid funding. This amendment would require
the Secretary of Education to phase in changes to the based
guarantee in accordance with the necessary investment to the
programs to ensure a level playing field. This amendment was
narrowly defeated by a vote of 24-24.
ESTIMATED CHANGE IN CAMPUS-BASED AID FUNDING--BASE GUARANTEE ELIMINATION PROPOSAL
----------------------------------------------------------------------------------------------------------------
Perkins change
SEOG change in FWS change in in allocation Total change $ Percent change
allocation $ allocation $ $
----------------------------------------------------------------------------------------------------------------
Alabama......................... 319,328 1,366,249 193,908 -853,013 -2.9
Alaska.......................... -357,194 -292,672 0 -649,866 -39.1
Arizona......................... 184,692 191,795 495,118 871,605 3.5
Arkansas........................ -109,651 -847,811 -223,204 -1,180,666 -8.8
California...................... 5,346,622 6,981,497 1,367,670 13,695,789 7.0
Colorado........................ 354,210 -35,688 -224,410 94,112 0.4
Connecticut..................... 68,743 744,203 -2,244 810,702 3.8
Delaware........................ 184,837 170,007 -4,868 349,976 10.5
District of Columbia............ 17,425 1,884,291 240,916 2,142,632 11.3
Florida......................... 1,894,571 2,956,506 1,975,050 6,826,127 9.1
Georgia......................... 1,172,369 -896,299 414,028 690,098 1.7
Hawaii.......................... -109,763 -161,240 -16,180 -287,183 -7.4
Idaho........................... -68,365 276,785 -146,554 61,866 1.2
Illinois........................ 1,582,535 1,975,747 -703,749 2,854,533 3.0
Indiana......................... 875,175 1,201,143 -164,648 1,911,670 5.0
Iowa............................ 268,598 1,088 -391,244 -121,558 -0.5
Kansas.......................... -609,378 -821,312 -693,636 -2,124,326 -14.6
Kentucky........................ 803,328 -1,518,496 -11,330 -726,498 -3.2
Louisiana....................... 915,018 -1,193,153 99,218 -178,917 -0.7
Maine........................... -3,346,280 -3,425,036 -460,794 -7,232,110 -46.5
Maryland........................ -262,256 272,230 43,102 53,076 0.2
Massachusetts................... -4,398,750 -4,886,369 -96,665 -9,381,784 -11.7
Michigan........................ -1,798,914 752,152 -1,213,575 -2,260,337 -4.0
Minnesota....................... -2,377,299 -1,248,027 -452,806 -4,078,132 -11.1
Mississippi..................... -1,282,404 -2,487,498 -700,467 -4,470,369 -20.0
Missouri........................ 923,933 945,748 -63,658 1,806,023 5.0
Montana......................... 241,460 -378,709 -177,076 -314,325 -5.2
Nebraska........................ 52,045 -138,681 -268,659 -355,295 -3.1
Nevada.......................... 195,286 295,456 66,199 556,941 13.2
New Hampshire................... -769,185 -1,502,087 -156,759 -2,428,031 -18.7
New Jersey...................... 501,889 450,066 106,108 1,058,063 2.8
New Mexico...................... -586,005 -2,183,573 -204,870 -2,974,448 -26.2
New York........................ 7,189,176 7,766,963 3,204,027 18,160,166 9.7
North Carolina.................. -1,820,724 -1,384,785 -88,970 -3,294,479 -8.0
North Dakota.................... -965,544 -577,921 2,866,841 1,323,376 19.9
Ohio............................ 775,727 46,677 620,384 1,442,788 2.0
Oklahoma........................ 36,553 -619,493 -456,089 -1,039,029 -5.3
Oregon.......................... -1,738,961 -889,047 -185,769 -2,813,777 -11.2
Pennsylvania.................... 2,514,303 4,595,845 1,265,707 8,375,855 7.5
Puerto Rico..................... 1,650,308 432,023 442,540 2,524,871 7.1
Rhode Island.................... 21,779 -533,551 36,572 -475,200 -2.8
South Carolina.................. 100,627 -789,970 97,811 -591,532 -2.5
South Dakota.................... -635,011 -1,360,964 -234,921 -2,230,896 -27.7
Tennessee....................... 5,768 -452,951 -6,719 -453,902 -1.4
Texas........................... 647,894 1,103,488 -1,236,695 514,687 0.5
Utah............................ -422,039 214,156 -477,662 -685,545 -6.4
Vermont......................... -2,382,485 -1,778,571 -264,202 -4,425,258 -37.7
Virginia........................ 854,144 -174,968 12,640 691,816 2.0
Washington...................... -844,292 771,689 -229,162 -301,765 -1.0
West Virginia................... -76,805 -302,606 -127,184 -506,595 -4.1
Wisconsin....................... -4,769,861 -1,419,305 -1,192,894 -7,382,060 -19.3
Wyoming......................... 16,325 112,844 -80,097 49,072 1.9
----------------------------------------------------------------------------------------------------------------
**Total 29 states would lose funding under this proposal.
Source: American Council on Education, Center for Policy Analysis.
H.R. 609--Fails to provide real relief for rising College costs
Under the bill, the earliest that students and families
could receive any relief from rising college costs would be
five years after enactment, at which point colleges and
universities with rapidly increasing tuition would be required
to increase their reporting and disclosures to the public and
federal government.
In addition, the bill fails to engage states and encourage
them to grow funds for higher education, so that college
tuition is more affordable to the more than 75 percent of
students who attend public, state supported institutions.
Reps. Tierney and McCollum offered an amendment to address
rising college tuition that would provide immediate relief to
students and families by: promoting affordable tuition by
encouraging states to grow funds for higher education;
providing incentives to public and private colleges to make
tuition more affordable; ensuring colleges curb their costs--
and tuition prices--through cost containment strategies; and,
putting students and families in control by providing easy to
understand information about college costs through accessible
public disclosures.
The Committee rejected this amendment on a party line vote
of 27 to 19.
H.R. 609--Fails to meet the growing demand for additional investments
in College and Universities that serve predominantly minority,
low-income and first generation students
Millions of minority and first-generation students cannot
afford to attend college, while the institutions that
traditionally serve these students struggle to expand their
infrastructure, student support services and academic programs.
Additionally, we face a shortage of minority teachers and an
immediate need to encourage more Latinos to pursue advanced
degrees.
We strongly support the passage of the Hinojosa-Grijalva-
Fortuno-Tiberi amendment to establish the graduate Hispanic
Serving Institutions program to significantly increase the
number of Latino students earning advanced degrees--though we
are disappointed that the full authorization level of $125
million was not passed. We believe that the passage of this
amendment was only a first step in boosting the college
participation of these students. We must significantly boost
our investment in all minority serving institutions to ensure
that all college qualified students can access an affordable
top quality education.
H.R. 609--Raises student loan fees
While the bill provides for a gradual phase out of the 3
percent origination fee charged to student and parent
borrowers, it effectively doubles the current 1.5 percent
origination fee that Direct Loan borrowers pay in the first
year of the phase out (2006). In the second year of the phase
out, the origination fee is 1 percent higher, and in the third
year, .5 percent higher than borrowers in the Direct Loan
program currently pay. While we strongly support elimination of
these student taxes, which Democratic members have been urging
for years, we cannot support legislation that raises fees, and
the cost of college, for students, before eliminating them.
H.R. 609 also requires guaranty agencies to charge student
and parent borrowers a 1 percent insurance fee on their loans.
Most guaranty agencies currently waive this fee, but the bill
requires borrowers to pay this tax. According to the
Congressional Budget Office, this change will raise $3.6
billion over 10 years from borrowers.
H.R. 609--Eliminates critical borrower benefits that encourage on-time
repayment and lower interest rates
The bill eliminates the Secretary of Education's authority
to provide benefits, such as lower interest rates, to student
borrowers in the Direct Loan program who make a certain number
of on-time payments. Private banks who participate in the
Federal Family Education Loan (FFEL) program currently offer
similar benefits to their student borrowers.
The bill also eliminates the in-school consolidation
benefit, which allows student borrowers (in both the Direct
Loan and FFEL programs) who are still in school or in their six
month grace period, to consolidate their loans at a lower
interest rate (60 basis points lower). The elimination of this
benefit will cost the typical student borrower nearly $1,000 in
additional interest rate charges, compared to current law.
H.R. 609--Closes the 9.5 percent loan loophole
Led by Reps. Kildee and Van Hollen, last year Congress
voted to partially close the loophole with student lenders to
collect a guaranteed 9.5 percent rate of return on certain
student loans. This rate of return is 4 percent higher (and was
6 percent higher last year) than the return which lenders
receive on regular student loans. However, this partial closure
still allowed lenders to ``recycle,'' or use the interest
payments and the excessive subsides paid on their outstanding
9.5 percent loans to make new loans which also receive the 9.5
percent rate of return. The Government Accountability Office
estimated that recycling alone is responsible for up to 40
percent of the current loan volume which is guaranteed this 9.5
percent rate of return.
At the urging of Committee Democrats, H.R. 609 completely
closes the 9.5 percent loophole which generated billions of
dollars in excessive profits to lenders. The closure of this
loophole will generate over $2 billion dollars in savings over
the next 6 years--money which should be reinvested into student
aid. Unfortunately, the Majority is using these savings to pay
for alleged deficit reduction.
H.R. 609--Promotes the suppression of free speech on College campuses
We agree that it is critical that students, faculty and
other members of the campus community have the ability to
exercise their right to free speech, whether it is in the
classroom or an event on campus.
Democrats believe that any attempts to stifle the free
speech rights of students and faculty should be taken
seriously. However, without a conclusive body of evidence
regarding this issue, it is unclear what problem this bill is
trying to fix.
SIGNIFICANT CHANGES TO STUDENT AID SAFEGUARDS
Several changes were made to the key student aid
safeguards, such as the 50 percent rules, the 90-10 rule, and
the single definition of an institution of higher education.
While we support expanding college opportunities for students,
a number of our members remain concerned that some of these
changes, absent strong alternative safeguards, may result in
increased fraud and abuse in the student aid programs. We are
also very concerned at the Committee's overall failure to
perform its oversight duties to ensure that the nearly $80
billion of federal student aid that is disbursed each year is
done so with the utmost integrity.
We encourage the Chairman to carry out the necessary
oversight to ensure both the integrity of the student aid
programs and to ensure that all students receive a top quality
education.
PETRI-MILLER AMENDMENT
Reps. Petri and Miller offered an amendment to incentivize
colleges and universities to use the lowest-cost federal
lending program, whether it is the Direct Loan program or the
Federal Family Education Loan program. Under this amendment,
colleges that switch to the cheaper of the two lending
programs, as determined by the secretary of Education, will be
given half of the savings generated from the switch. Colleges
must use those savings to increase Pell grant scholarships or
need-based graduate student fellowships.
Colleges that already use the lowest-cost federal lending
program at the time of enactment share the savings generated by
the schools that switch to the less expensive program and must
use the savings to increase Pell grant scholarships or need-
based graduate student fellowships. Analysis by the
Congressional Budget Office found that if passed, this
provision would boost student grant aid by $17 billion dollars
over 10 years, at no additional cost to taxpayers. Republicans
rejected the amendment.
ACCREDITATION
Our members continue to have serious reservations about the
McKeon Amendment to require accrediting agencies, as part of
the accreditation process, to consider the ``stated missions of
institutions of higher education, including but not limited to
such missions as inculcation of religious values * * * ''. This
amendment deserves close scrutiny as for the first time it
would require the Federal Government, as part of their
determination of the acceptability of accrediting agencies, to
evaluate whether an accrediting agency has appropriately
considered an institution's religious affiliation in its review
of the program under consideration for accreditation. We
believe that the amendment is not warranted in light of current
practices by accrediting agencies and could have tremendous
implications for the independence of accrediting agencies in
determining appropriate standards for accreditation.
The Majority has not presented evidence that this amendment
is necessary. In fact, institutions of higher education,
accrediting agencies and the faith community have, in the past,
debated this issue and found an appropriate balance that
preserves both religious and academic freedom. In 2000, the
American Psychological Association (APA), the accrediting
agency for doctoral and graduate programs in psychology, was
presented with a proposal to eliminate an exemption \1\ for
religiously affiliated institutions relating to the APA
guidelines on ``cultural and individual diversity''. The
exemption allowed such institutions to continue to uphold their
right to safeguard their religious teachings and tenets and
still achieve the standards set by the APA. Elimination of this
exemption was soundly opposed by a broad coalition of groups.
Other accrediting agencies such as the American Bar
Association, the Middle States Association of Colleges and
Schools and the Western Association of Colleges and Schools
have also seen fit to provide exemptions for religiously
affiliated institutions.
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\1\ Footnote 4 of the American Psychological Association's
Guidelines and Principles for Accreditation of Programs in Professional
Psychology states, ``This requirement does not exclude programs from
having a religious affiliation or purpose and adopting and applying
admission and employment policies that directly relate to this
affiliation or purpose so long as (1) Public notice of these policies
has been made to applicants, students, faculty, or staff before their
application or affiliation with the program; and (2) the policies do
not contravene the intent of other relevant portions of this document
or the concept of academic freedom. These policies may provide a
preference for persons adhering to the religious purpose or affiliation
of the program, but they shall not be used to preclude the admission,
hiring, or retention of individuals because of the personal and
demographic characteristics described in Domain A, Section 5 of this
document (and referred to as cultural and individual diversity). This
footnote is intended to permit religious policies as to admission,
retention, and employment only to the extent that they are protected by
the U.S. Constitution. It will be administered as if the U.S.
Constitution governed its application.''
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The provision currently included in the bill does not
reflect our view that such a change from current law is
unnecessary. We continue to support the rights of religiously
affiliated institutions of higher education to retain their
religious and academic freedom while according accrediting
agencies their abilities to set appropriate academic standards
of excellence for their programs.
CONCLUSION
American students and families need more affordable college
opportunities. Significantly boosting these opportunities is
critical to the success of the American economy and the
nation's ability to maintain and grow our competitive edge in
the global economy.
Not only does this bill fail on this account, but it
actually makes the largest single cut to the student aid
programs ever. As a result, students will be forced to pay
thousands of dollars more for college.
This bill, squanders a rare chance to re-deploy billions of
dollars, saved from cuts to excessive lender subsidies, toward
boosting grant aid and lowering the cost of borrowing to
students. Rather than advance this partisan legislation, which
is opposed by students, colleges, and consumer groups alike, we
should be focused on increasing affordable college
opportunities to all Americans.
The reauthorization of the Higher Education Act offered the
Committee an opportunity to ensure college access to all
Americans. Unfortunately, the Majority chose to pass up this
golden opportunity and instead, is making college students and
families pay for the irresponsible budget management of the
Congress.
DEMOCRATIC AMENDMENTS OFFERED IN FULL COMMITTEE MARKUP OF H.R. 609
Mr. Miller, Mr. Kildee, Mr. Kind, Mr. Van Hollen and Mr.
Barrow offered an amendment that would maintain Congress'
promise to lower the student loan interest rate caps to 6.8
percent in 2005, offered student borrowers the choice of a
variable or low fixed interest rate on their consolidation
loans, and restore the value of Pell grant scholarships to
their maximum buying power. The amendment was defeated.
Mr. Miller offered a second degree amendment to the Petri
amendment on loan consolidation to lower interest rates and to
eliminate the .5 percent origination fee charged to students.
The amendment was defeated.
Mr. Tierney and Ms. McCollum offered an amendment to make
college tuition more affordable. The amendment was defeated.
Mr. Holt and Mr. Bishop offered an amendment to grant
rebates to students who will have their Pell awards reduced or
eliminated this fall, due to the recent student aid reduction
from the Bush administration. The amendment was defeated.
Mr. Tierney and Mr. Kind offered an amendment to boost and
equalize campus based aid funding. The amendment was defeated.
Mr. Andrews offered a hold harmless amendment on campus
based aid. The amendment was defeated.
Mr. Kildee and Mr. Van Hollen offered an amendment to
provide additional safeguards to schools acting as lenders. The
amendment was accepted under unanimous consent.
Mr. Miller offered a second degree amendment to the Petri
amendment on guaranty agencies to require that the Bush
proposals on eliminating excessive subsidies to guaranty
agencies. The amendment was defeated.
Mr. Hinojosa and Mr. Grijalva offered an amendment on
graduate HSI programs that would establish a program to
significantly increase the number of Latino students earning
advanced degrees. The amendment passed by recorded vote.
Mr. Van Hollen offered an amendment to strike the provision
that forces students to pay the insurance fee on their student
loans. The amendment was defeated.
Mr. Holt and Mr. Kind offered an amendment to provide up
front tuition assistance for students pursuing careers in math,
science or engineering. The amendment was defeated by voice
vote.
Mr. Scott offered an amendment to expand teaching centers
of excellence at minority serving institutions. The amendment
failed by voice vote.
Mr. Miller and Mr. Petri offered an amendment to include
the Student Aid Reward Act as part of the Higher Education Act.
The amendment was defeated.
Mr. Miller offered an amendment on teacher quality to:
increase the supply of outstanding teachers; ensure that all
children have teachers with expertise in the subjects they
teach; identifying and reward our best teachers; and, keeping
the best teachers and principals in our schools. The amendment
was defeated.
Mr. Grijalva and Ms. McCollum offered an amendment to
retain the separate definitions of institutions of higher
education. The amendment was withdrawn.
Mr. Davis offered an amendment to create a study on
minority males, their graduation rates, why they are not
attending college, and ways to address the problem. The
amendment was agreed to by voice vote.
Mrs. Davis offered an amendment to reduce fees for student
borrowers. The amendment was defeated.
Mr. Kind and Mr. Van Hollen offered an amendment on FLAS
award that would establish undergraduate scholarships to
students studying high priority languages. The amendment was
withdrawn.
Mr. Holt offered an amendment to on Title 6 dealing with
science, technology and foreign languages. The amendment was
defeated.
Mr. Ryan offered an amendment on the college textbook
rental expansion program. The amendment was defeated.
Ms. Woolsey offered an amendment on the Pasty Mink
Fellowship that would increase the number of women and
minorities pursuing advanced degrees in priority fields of
study. The amendment was defeated.
Mr. Wu offered an amendment to establish a grant program to
encourage institutions of higher education to create
partnerships with community colleges. The amendment was
accepted by unanimous consent.
Mr. Wu offered an amendment on university sustainability
centers. The amendment was defeated.
Mr. Bishop and Mr. Tierney offered an amendment to
establish a cooperative education program. The amendment was
defeated.
Ms. Woolsey offered an amendment to prohibit the Secretary
of Education from enforcing recent guidance that would allow
institutions to demonstrate equal athletic opportunities solely
on the basis of a survey and to count on non-responses to such
a survey as a lack of interest in athletic opportunities. The
amendment was defeated.
Mrs. Davis offered an amendment on veterans. The amendment
was withdrawn.
Mr. Tierney offered an amendment on the academic bill of
rights, striking section 103. The amendment was defeated.
Mr. Andrews offered an amendment on campus fire safety. The
amendment passed by recorded vote.
Ms. McCarthy offered an amendment on graduation/completion
rates that would add language to section (K) of the College
Consumer Profile. The language would identify whether
completion or graduation rates are from a 2-year or a 4-year
school. The amendment was accepted under unanimous consent.
Ms. McCarthy offered an amendment to clarify language in
the affordability section. The amendment was accepted under
unanimous consent.
Mr. Owens offered an amendment to establish predominantly
Black Serving Institutions under title 3 of the HEA. The
amendment was defeated.
Mr. Owens offered an amendment to strike minimum grants for
HBCUs. The amendment was defeated.
Mr. Wu offered an amendment on refinancing consolidation
loans. The amendment was defeated.
Mr. Grijalva offered an amendment en bloc on: (a) providing
loan forgiveness for librarians and (b) additional areas of
need, dealing with highly qualified teachers in bilingual
education in low-income communities. The amendment was agreed
to by voice vote.
Mr. Davis offered on amendment to allow prisoners to
receive financial aid while in prison. The amendment was
defeated.
Mr. Tierney offered an amendment to ensure Pell equity,
striking the State Scholars language. The amendment was
defeated.
Mr. Scott and Mr. Grijalva offered an amendment on hate
crimes so that an institution's data that is collected matches
with data from the FBI. The amendment was defeated by voice
vote.
Ms. McCarthy and Mr. Tiberi offered an amendment on Project
GRAD. The amendment was withdrawn.
Mr. Davis, Mr. Andrews and Mr. Kucinich offered an
amendment to repeal the drug question on the federal student
aid application. The amendment was defeated.
Mr. Holt offered an amendment to expand affordable child
care assistance for low-income students. The amendment was
defeated.
Mr. Ryan and Mr. Tierney offered an amendment with Mr.
McKeon to simplify the student aid application process. The
amendment was agreed to by voice vote.
Mr. Bishop offered an amendment to ensure the transfer of
college credits. The amendment was defeated.
Mr. Van Hollen offered an amendment on regulatory relief
experimental sites. The amendment was agreed to by voice vote.
Mr. Andrews offered an en bloc amendment on: (a) additional
deferments up to two years for individuals who participate in
an internship program following graduation; (b) residency
program deferments for medical and dental residents; and
restrict students' ability to consolidate their loans at a low
fixed rate, eliminate origination fees, and change borrow
repayment terms. The amendment was defeated.
Mr. Andrews and Mr. Holt offered an amendment on over award
that provides that federal aid be given without regard to
university aid, which could then be given on top. The amendment
was defeated by voice vote.
Mr. Andrews offered an amendment on Bryan's Law, dealing
with missing person procedures. The amendment was defeated.
Mr. Andrews offered an amendment requiring a meningitis
vaccine for all incoming students. The amendment was defeated.
Mr. Andrews offered an amendment on technology asset
disposal that would require personal computers disposed of by
the institution of higher education to be fully scrubbed of
personal information and also in an environmentally friendly
manner. The amendment was defeated.
Mr. Andrews offered an amendment to amend the definition of
clock hours. The amendment was agreed to by voice vote.
Mr. Andrews offered an amendment to direct the Education
Secretary to support effort to create an American university in
Jordan. The amendment was withdrawn.
Mr. Bishop offered on an amendment on pre-competitive
innovation that would develop a grant program for institutions
of higher education to help bridge the gap between laboratory
discoveries and community viable researching. The amendment was
defeated.
Mr. Wu offered an amendment on college textbook
affordability and prices. The amendment was agreed to by voice
vote.
Mr. Wu offered an amendment on the National Commission on
College Textbook Affordability. The amendment was withdrawn.
Mr. Kind offered an amendment on creating a GAG study for
older adult learners. The amendment was agreed to by voice
vote.
Mr. Kind offered an amendment on the education grant
program. The amendment was defeated by voice vote.
Mr. Andrews offered an amendment on uncooperative parents
that would allow students whose parents won't provide financial
information on the FAFSA to receive unsubsidized loans. The
amendment was withdrawn.
Mr. Andrews offered an amendment on student assistance. The
amendment was withdrawn.
Ms. McCarthy and Mr. Porter offered an amendment to provide
up to $5,000 in loan forgiveness for individuals who have
completed a baccalaureate or advanced degree and who serve for
5 consecutive years in ``areas of national need'' as designated
by the Secretary of Education. The amendment was accepted by
voice vote.
Ms. McCarthy offered an amendment to ensure that degrees
from Rabbincal schools will be able to continue to be
recognized as the equivalent of Baccalaureate degrees. This
amendment was accepted by voice vote.
George Miller.
Timothy Bishop.
Raul M. Grijalva.
Chris Van Hollen.
Dennis J. Kucinich.
Rubert E. Andrews.
Rush Holt.
Lynn Woolsey.
Susan Davis.
Major R. Owens.
Dale E. Kildee.
John F. Tierney.
Danny K. Davis.
Carolyn McCarthy.
Tim Ryan.
Betty McCollum.
Ron Kind.
David Wu.
Donald M. Payne.
Robert C. ``Bobby'' Scott.