[House Report 110-224]
[From the U.S. Government Publishing Office]





110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-224

======================================================================


 
  PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2669) TO PROVIDE FOR 
RECONCILIATION PURSUANT TO SECTION 601 OF THE CONCURRENT RESOLUTION ON 
                    THE BUDGET FOR FISCAL YEAR 2008

                                _______
                                

   July 10, 2007.--Referred to the House Calendar and ordered to be 
                                printed

    Ms. Sutton, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 531]

    The Committee on Rules, having had under consideration 
House Resolution 531, by a record vote of 6 to 3, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 2669, the 
``College Cost Reduction Act of 2007,'' under a structured 
rule. The resolution provides for one hour of general debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Education and Labor.
    The resolution waives all points of order against 
consideration of the bill except those arising under clauses 9 
or 10 of rule XXI. The resolution provides that the amendment 
in the nature of a substitute recommended by the Committee on 
Education and Labor, modified by the amendment printed in part 
A of the report of the Committee on Rules, shall be considered 
as read. The resolution waives all points of order against the 
bill, as amended.
    The resolution makes in order only the amendment in the 
nature of a substitute printed in part B of the report of the 
Committee on Rules if offered by Mr. McKeon of California or 
his designee. The amendment shall be considered as read and 
shall be debatable for one hour equally divided and controlled 
by a proponent and an opponent. The resolution waives all 
points of order against the amendment printed in part B except 
those arising under clause 9 or 10 of rule XXI. The resolution 
provides one motion to recommit with or without instructions. 
Finally, the resolution permits the Chair, during consideration 
of the bill in the House, to postpone further consideration of 
the bill to a time designated by the Speaker.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the bill (except for those arising under 
clauses 9 or 10 of rule XXI), the Committee is not aware of any 
points of order against consideration of the bill. The waiver 
of all points of order is prophylactic in nature. The waiver of 
all points of order against bill, as amended, includes a waiver 
of clause 4 of rule XXI (appropriating on legislative bills).

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 231

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Miller, George (CA), #9, 
Manager's Amendment, as a free-standing amendment rather than 
as considered as adopted. The Manager's amendment makes various 
technical changes to the College Cost Reduction Act, as well as 
changes the increases in the Income Protection Allowance; moves 
Guaranty Agency Account Maintenance fees to an originated-
volume basis, but at a decreased level, and creates a new fee 
for Guaranty Agencies; adds school counselors to the loan-
forgiveness program, and allows non-profit employees to receive 
loan forgiveness after 10 years of service; makes changes in 
Title II, Reducing the Cost of College, including eliminating 
the provision on State Maintenance of Effort; and ensures that 
all applicants with a score above 70 in the 2007 Upward Bound 
competition are funded.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 232

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Dreier.
    Summary of motion: To grant an open rule.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 233

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for an amendment by Rep. Kline (MN), #14, 
which adds two limitations to the interest rate reductions. 
Borrowers making over $65,000 (or $135,000 if married) are no 
longer able to take advantage of the reduced interest rates in 
this bill. Members of the military are exempt from this income 
limit and can take advantage of the reduced rates. The income 
limitation is the same as the limits in place under current law 
for borrowers to be able to take advantage of the student loan 
interest tax deduction; an amendment by Rep. Price, Tom (GA), 
#22, which strikes the new Teach Grants Program that gives 
entitlement funds to institutions of higher education in order 
to award Teach Grants, and the Centers of Excellence provision 
that gives entitlement funds to institutions of higher 
education for teacher preparation programs; and an amendment by 
Rep. Price, Tom (GA), #24, which strikes the new College Access 
Challenge Grant Program that gives entitlement funds to 
philanthropic organizations.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 234

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for an amendment by Rep. Souder (IN), #20, 
which strikes the Section 133 creation of ``income-based 
repayment,'' a new repayment plan that would reduce a 
borrower's monthly loan repayment to no more than 15 percent of 
the borrower's discretionary income. It also authorizes an 
additional $840 million for Federal Pell Grants; an amendment 
by Rep. Hensarling (TX), #7, which would strike loan 
forgiveness for nurses, foreign language specialists, 
librarians, public sector employees, and other professions; 
Perkins Loan; grants to institutions for low tuition; 
Cooperative Education Rewards to institutions; TEACH grants; 
Centers of Excellence; HBCU and Minority Serving Institutions; 
College Access Challenge Grants; and Upward Bound from the 
bill. In addition, the amendment would strike the mandatory 
funding for the Pell grant program, leaving intact the 
discretionary increases for the Pell program; and an amendment 
by Rep. Hensarling (TX), #8, which would set the authorized 
maximum award for the Pell Grant at the current level, $5,800, 
through FY2013. The amendment would also strike the new 
mandatory funding for the Pell program provided for in the 
underlying bill.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 235

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Bishop, Rob (UT), #21. The 
amendment would provide that students could come from programs 
of study that prepare them for college and work beyond the 
basic graduation requirements and that are recognized by the 
designated state official, or with respect to private or home 
schools, by the designated school official for such schools.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 236

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Cuellar (TX), #10, which would 
ensure that before a student loan auction pilot is implemented, 
the study group reaches agreement that it is practicable; in 
the best interest of both the taxpayers and the student loan 
borrowers; and would not limit availability of student loan 
funds. Additionally, if and when such a pilot program is 
implemented, the amendment would require a report to Congress 
on the outcome of the pilot. The amendment would strike a 
provision permitting the Education Secretary to implement a 
program-wide auction system.
    Results: Defeated 3-6.
    Vote by Members: McGovern--Nay; Matsui--Nay; Cardoza--Nay; 
Welch--Nay; Arcuri--Nay; Sutton--Nay; Dreier--Yea; Diaz-
Balart--Yea; Hastings (WA)--Yea.

Rules Committee record vote No. 237

    Date: June 10, 2007.
    Measure: H.R. 2669.
    Motion by: Ms. Matsui.
    Summary of motion: To report the rule.
    Results: Adopted 6-3.
    Vote by Members: McGovern--Yea; Matsui--Yea; Cardoza--Yea; 
Welch--Yea; Arcuri--Yea; Sutton--Yea; Dreier--Nay; Diaz-
Balart--Nay; Hastings (WA)--Nay.

  SUMMARY OF AMENDMENT IN PART A CONSIDERED AS ADOPTED UNDER THE RULE

    The Manager's amendment makes various technical changes to 
the College Cost Reduction Act, as well as changes the 
increases in the Income Protection Allowance; moves Guaranty 
Agency Account Maintenance fees to an originated-volume basis, 
but at a decreased level, and creates a new fee for Guaranty 
Agencies; adds school counselors to the loan-forgiveness 
program, and allows non-profit employees to receive loan 
forgiveness after 10 years of service; makes changes in Title 
II, Reducing the Cost of College, including eliminating the 
provision on State Maintenance of Effort; and ensures that all 
applicants with a score above 70 in the 2007 Upward Bound 
competition are funded.

      SUMMARY OF AMENDMENT IN PART B MADE IN ORDER UNDER THE RULE

    (Summary derived from information provided by sponsor.)
    1. McKeon (CA): Amendment in the Nature of a Substitute. 
(Revised) The amendment reduces subsidies in the loan programs 
and invests the majority of the savings in the Pell Grant 
program by providing increases of $350 in 2008 and $100 each 
year thereafter. It also provides a plan for improved consumer 
information and public accountability with respect to college 
costs. (60 minutes)

            PART A--TEXT OF AMENDMENT CONSIDERED AS ADOPTED

  Page 2, beginning on line 4, amend section 1 to read as 
follows:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``College Cost Reduction Act of 
2007''.
  Page 8, after line 6, insert the following new paragraph:
          (3) Appropriation.--There shall be available to the 
        Secretary, from funds not otherwise appropriated, 
        $5,000,000 for the period beginning on the date of 
        enactment of this Act and ending on October 1, 2008, to 
        carry out the amendments made by paragraph (1) of this 
        subsection.
  Page 10, beginning on line 16, strike subparagraph (D) 
through page 11, line 2, and insert the following:
                  ``(D) an income protection allowance of 
                $3,750 (or a successor amount prescribed by the 
                Secretary under section 478);''.
  Page 11, beginning on line 7, strike clause (iv) through page 
12, line 8, and insert the following:
                          ``(iv) an income protection allowance 
                        of the following amount (or a successor 
                        amount prescribed by the Secretary 
                        under section 478):
                                  ``(I) for single or separated 
                                students, or married students 
                                where both are enrolled 
                                pursuant to subsection (a)(2), 
                                $6,690; and
                                  ``(II) for married students 
                                where 1 is enrolled pursuant to 
                                subsection (a)(2), $10,720;''.
  Page 13, line 22, strike ``and''; on line 23, redesignate 
subparagraph (B) as subparagraph (C), and after line 22 insert 
the following new subparagraph:
                  ``(B) for each of the academic years 2010-
                2011 and 2011-2012, by increasing each of the 
                amounts determined under this paragraph for the 
                preceding academic year by 10 percent; and
  Page 13, line 25, strike ``contained in such section'' and 
insert ``determined under this paragraph''.
  Page 14, line 8, strike ``October 1, 2008,'' and insert 
``July 1, 2009,''.
  Page 26, beginning on line 13, strike ``for which the first 
disbursement of principal is''.
  Page 28, beginning on line 13, strike section 117 and insert 
the following (and conform the table of contents accordingly):

SEC. 117. ACCOUNT MAINTENANCE FEES.

  Section 458(b) (20 U.S.C. 1087h(b)) is amended by striking 
``0.10 percent'' and inserting ``0.06 percent''.
  Page 31, line 15, insert ``annually'' after ``Secretary''.
  Page 31, line 18, insert ``a'' after ``of''.
  Page 31, line 23, strike ``, or otherwise affiliated with,''.
  Page 33, beginning on line 4, strike section 119, and 
redesignate succeeding sections accordingly.
  Page 41, after line 3, insert the following new section:

SEC. 121. OTHER GUARANTY AGENCY REFORMS.

  (a) Agency Operating Funds.--Section 422B(c) (20 U.S.C. 
1072b(c)) is amended--
          (1) by striking ``and'' at the end of paragraph (5);
          (2) by redesignating paragraph (6) as paragraph (7); 
        and
          (3) by inserting after paragraph (5) the following 
        new paragraph:
          ``(6) the delinquency prevention fee paid by the 
        Secretary in accordance with section 428(o); and''.
  (b) Delinquency Prevention Fee .--Section 428 (20 U.S.C. 
1078) is amended by adding at the end the following new 
subsection:
  ``(o) Delinquency Prevention Fee.--
          ``(1) Amount of fee.--The Secretary shall pay to each 
        guaranty agency, on a monthly basis, a delinquency 
        prevention fee equal to 0.0055 percent of the original 
        principal amount of loans insured by the agency, other 
        than loans in in-school or grace period status, that 
        are not in delinquency status as of the end of the 
        previous month.
          ``(2) Definition.--For the purpose of earning the 
        delinquency prevention fee, the term `not in 
        delinquency status' means the borrower is less than 60 
        days delinquent in making a required payment.''.
  (c) Minimum Loan Processing and Issuance Fees.--Section 
428(f)(1)(A)(ii) (20 U.S.C. 1078(f)(1)(A)(ii)) is amended by 
inserting before the period at the end the following: ``, 
except that the total amount of such payments to each guaranty 
agency in any fiscal year shall equal at least $1,500,000''.
  Page 46, line 1, redesignate paragraph (9) as paragraph (10) 
and insert before such line the following new paragraph:
          ``(9) School counselors.--An individual who is 
        employed as a school counselor (as such term is defined 
        in section 5421(e)(3) of Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7245(e)(3)) in 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.
  Page 46, line 7, strike ``defense)'' and insert the 
following: ``defense or legal advocacy in low-income 
communities at a nonprofit organization)''.
  Page 52, line 14, strike ``or'', and on line 15, strike 
``defense)'' the following: ``defense or legal advocacy in low-
income communities at a nonprofit organization), or at an 
organization that is described in section 501(c)(3) of the 
Internal Revenue Code of 1986 and exempt from taxation under 
section 501(a) of such Code''.
  Page 60, beginning on line 3, strike section 138.
  Page 63, in title II, strike sections 201 through 203 and 
insert the following:

SEC. 201. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
                    EDUCATION.

  Section 131 of the Higher Education Act of 1965 (20 U.S.C. 
1015) is amended to read as follows:

``SEC. 131. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
                    EDUCATION.

  ``(a) College Opportunity On-Line (COOL) Website Re-Design 
Process.--In carrying out this section, the Commissioner of 
Education Statistics--
          ``(1) shall identify the data elements related to 
        college costs 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 the informational needs of prospective 
        college students and parents to--
                  ``(A) determine the relevance of particular 
                data elements to prospective students, enrolled 
                students, and families based upon the results 
                of opinion research; and
                  ``(B) make recommendations regarding the 
                inclusion of specific data items and the most 
                effective and least burdensome methods of 
                collecting and reporting useful data from 
                institutions of higher education; and
          ``(3) shall ensure 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 
                ensuring that information 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.
  ``(b) Data Collection.--
          ``(1) Data system.--The Commissioner of Education 
        Statistics 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 System in order to 
        inform consumers about institutions of higher 
        education.
          ``(2) College consumer profile.--The Secretary shall 
        continue to publish on the COOL website, 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 Cost Reduction Act of 
        2007), 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 a first-
                time, full-time undergraduate 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 (including grant assistance) 
                received by a first-year, full-time 
                undergraduate student.
                  ``(E) The number and percentage of first-
                time, full-time undergraduate students 
                receiving financial assistance (including grant 
                assistance) described in each clause of 
                subparagraph (D).
                  ``(F) Student enrollment information, 
                including information on the number and 
                percentage of full-time and part-time students, 
                and the number and percentage of resident and 
                non-resident students.
                  ``(G) Faculty-to-student ratios.
                  ``(H) 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.
                  ``(I) Graduation rates calculated pursuant to 
                section 485(a)(1)(L), including rates 
                disaggregated by gender, by each major racial 
                and ethnic subgroup, and by income status, as 
                measured by receipt of Federal Pell Grants or 
                Federal subsidized student loans.
                  ``(J) 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, any articulation agreements entered 
                into by the institution.
                  ``(K) The college affordability information 
                elements specified in subsection (d).
  ``(c) Information to the Public.--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 means-tested federally 
funded education programs and other Federal programs determined 
by the Secretary.
  ``(d) College Affordability Information Elements.--The 
college affordability information elements required by 
subsection (b)(2)(K) shall include, for each institution 
submitting data--
          ``(1) the sticker price of the institution for the 5 
        most recent academic years; and
          ``(2) the net tuition of the institution for the most 
        recent academic year for which data are available.
  ``(e) Outcomes and Actions.--
          ``(1) Response from institution.--Effective on June 
        30, 2011, an institution that increases its sticker 
        price at a percentage rate for any 3-year interval 
        ending on or after that date that exceeds two times the 
        rate of change in the higher education price index over 
        the same time period shall provide a report to the 
        Secretary. Such report shall be published by the 
        Secretary on the COOL website, and shall include--
                  ``(A) a description of the factors 
                contributing to the increase in the 
                institution's costs and in the tuition and fees 
                charged to students; and
                  ``(B) 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) Consequences for 2-year continuation of 
        failure.--If the Secretary determines that an 
        institution that is subject to paragraph (1) has failed 
        to reduce the subsequent increase in sticker price to 
        equal to or below two times the rate of change in the 
        higher education price index for 2 consecutive academic 
        years subsequent to the 3-year interval used under 
        paragraph (1), the Secretary shall place the 
        institution on affordability alert status.
          ``(3) Exemptions.--Notwithstanding paragraph (2), an 
        institution shall not be placed on affordability alert 
        status if, for any 3-year interval for which sticker 
        prices are computed under paragraph (1)--
                  ``(A) with respect the class of institutions 
                described in paragraph (5) to which the 
                institution belongs, the sticker price of the 
                institution is in the lowest quartile of 
                institutions within such class, as determined 
                by the Secretary, during the last year of such 
                3-year interval; or
                  ``(B) the institution has a percentage change 
                in its sticker price computed under paragraph 
                (1) that exceeds two times the rate of change 
                in the higher education price index over the 
                same time period, but the dollar amount of the 
                sticker price increase is less than $500.
          ``(4) Information to state agencies.--Any institution 
        that reports under paragraph (1)(B) 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.
          ``(5) 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.
          ``(6) Data rejection.--Nothing in this subsection 
        shall be construed as allowing the Secretary to reject 
        the data submitted by an individual institution of 
        higher education.
  ``(f) 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 required by 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 under subsection (c) and 
pursuant to the program participation agreement entered into 
under section 487.
  ``(g) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of 
this section.
  ``(h) Definitions.--For the purposes of this section:
          ``(1) Net tuition.--The term `net tuition' means the 
        average tuition and fees charged to a full-time 
        undergraduate student by an institution of higher 
        education for any academic year, minus the average 
        grant amount received by such a student for such 
        academic year.
          ``(2) Sticker price.--The term `sticker price' means 
        the average published tuition and fees charged to a 
        first-time, full-time, undergraduate student by an 
        institution of higher education for any academic year.
          ``(3) Higher education price index.--The term `higher 
        education price index' means a statistical measure of 
        change over time in the prices of a fixed market basket 
        of goods and services purchased by colleges and 
        universities through current fund educational and 
        general expenditures (excluding expenditures for 
        research), as developed by the Bureau of Labor 
        Statistics.''.
  Redesignate section 204 of the bill as section 202.
  Page 79, strike lines 6 through 9 and insert the following:

              ``TITLE VIII--RESTRAINING TUITION INCREASES

                    ``PART A--COOPERATIVE EDUCATION

  At the end of title VIII of the Higher Education Act of 1965, 
as added by section 202 (as redesignated), strike the close 
quotation marks and following period, and insert the following:

                         ``PART B--LOW TUITION

``SEC. 811. INCENTIVES AND REWARDS FOR LOW TUITION.

  ``(a) Rewards for Low Tuition.--
          ``(1) Competitive grants.--The Secretary shall award 
        grants on a competitive basis to institutions of higher 
        education that, for academic year 2008-2009 or any 
        succeeding academic year, have an annual net tuition 
        increase (expressed as a percentage) for the most 
        recent academic year for which satisfactory data is 
        available that is equal to or less than the percentage 
        change in the higher education price index for such 
        academic year.
          ``(2) Use of funds.--Funds awarded to an institution 
        of higher education under paragraph (1) shall be 
        distributed by the institution in the form of need-
        based grant aid to students who are eligible for 
        Federal Pell Grants, except that no student shall 
        receive an amount under this section that would cause 
        the amount of total financial aid received by such 
        student to exceed the cost of attendance of the 
        institution.
  ``(b) Rewards for Guaranteed Tuition.--
          ``(1) Bonus.--For each institution of higher 
        education that the Secretary of Education determines 
        complies with the requirements of paragraph (2) or (3) 
        of this subsection, the Secretary shall provide to such 
        institution a bonus amount. Such institution shall 
        award the bonus amount first to students who are 
        eligible for Federal Pell Grants who were in attendance 
        at the institution during the award year that such 
        institution satisfied the eligibility criteria for 
        maintaining low tuition and fees, then to students who 
        are eligible for Federal Pell Grants who were not in 
        attendance at the institution during such award year, 
        in the form of need-based aid.
          ``(2) 4-year institutions.--An institution of higher 
        education that provides a program of instruction for 
        which it awards a bachelor's degree complies with the 
        requirements of this paragraph if such institution 
        guarantees that for any academic year beginning on or 
        after July 1, 2008, and for each of the 4 succeeding 
        continuous academic years, the net tuition charged to 
        an undergraduate student will not exceed--
                  ``(A) the amount that the student was charged 
                for an academic year at the time he or she 
                first enrolled in the institution of higher 
                education, plus
                  ``(B) the product of the percentage increase 
                in the higher education price index for the 
                prior academic year, or the most recent prior 
                academic year for which data is available, 
                multiplied by the amount determined under 
                subparagraph (A).
          ``(3) Less-than 4-year institutions.--An institution 
        of higher education that does not provide a program of 
        instruction for which it awards a bachelor's degree 
        complies with the requirements of this paragraph if 
        such institution guarantees that for any academic year 
        (or the equivalent) beginning on or after July 1, 2008, 
        and for each of the 1.5 succeeding continuous academic 
        years, the net tuition charged to an undergraduate 
        student will not exceed--
                  ``(A) the amount that the student was charged 
                for an academic year at the time he or she 
                first enrolled in the institution of higher 
                education, plus
                  ``(B) the product of the percentage increase 
                in the higher education price index for the 
                prior academic year, or the most recent prior 
                academic year for which data is available, 
                multiplied by the amount determined under 
                subparagraph (A).
  ``(c) Maintaining Affordable Tuition.--
          ``(1) Institution reports.--If an institution of 
        higher education has an increase in annual net tuition 
        (expressed as a percentage), for the most recent 
        academic year for which satisfactory data is available, 
        that is greater than the percentage increase in the 
        higher education price index for such academic year, 
        the institution is required to submit to the Secretary 
        the following information, within 6 months of such 
        determination--
                  ``(A) a report on the factors contributing to 
                the increase in the institution's costs and the 
                increase in net tuition and fees charged to 
                students, including identification of the major 
                areas in the institution's budget with the 
                greatest cost increases;
                  ``(B) the institution's 3 most recent Form 
                990s submitted to the Internal Revenue Service, 
                as required under section 6033 of the Internal 
                Revenue Code of 1986;
                  ``(C) a description of the major areas of 
                expenditures in the institution's budget with 
                the greatest increase for such academic year; 
                and
                  ``(D) voluntary actions being taken by the 
                institution to reduce net tuition.
          ``(2) Report to congress.--The Secretary shall 
        compile the information submitted under this subsection 
        and shall provide to the relevant authorizing 
        committees an annual report relating to such 
        information.
  ``(d) Priority.--In awarding incentives and rewards under 
this section, the Secretary shall give priority to institutions 
of higher education with the lowest annual net tuition increase 
for the most recent academic year for which satisfactory data 
is available, when compared with other institutions of higher 
education with annual net tuition increases that are equal to 
or less than the higher education price index for such academic 
year.
  ``(e) Exemptions.--An institution shall still be eligible to 
receive rewards under subsection (a) and (b), and will not be 
penalized under subsection (c) if, for any 2-year interval for 
which net tuition is computed under such subsections--
          ``(1) with respect to the class of institutions 
        described in section 131(d)(5) to which the institution 
        belongs, the net tuition of the institution is in the 
        lowest quartile of institutions within such class, as 
        determined by the Secretary, during the last year of 
        such 2-year interval; or
          ``(2) the institution has a percentage change in its 
        net tuition computed under subsections (a) or (c) that 
        exceeds the rate of change in the higher education 
        price index (as defined in section 401B(d)) over the 
        same time period, but the dollar amount of the net 
        tuition increase is less than $500.
  ``(f) Definitions.--
          ``(1) Net tuition.--The term `net tuition' has the 
        same meaning as provided in section 131(h).
          ``(2) Higher education price index.--The term `higher 
        education price index' has the same meaning as provided 
        in section 131(h).
  ``(g) Funding.--There shall be available to the Secretary to 
carry out this section, from funds not otherwise appropriated, 
$15,000,000 for each of the fiscal years 2008 through 2012.
  ``(h) Sunset.--The authority to carry out this section shall 
expire at the end of fiscal year 2012.''.
  Page 95, strike lines 10 and 11 and insert the following:
          ``(1) Undergraduate and post-baccalaureate 
        students.--The period during which an undergraduate or 
        post-baccalaureate student may receive
  Page 95, line 14, insert ``or post-baccalaureate'' before 
``course''.
  Page 95, line 22, insert ``or post-baccalaureate'' after 
``undergraduate''.
  Page 96, line 20, insert ``or post-baccalaureate'' after 
``baccalaureate''.
  Page 98, line 11, insert ``, post-baccalaureate,'' after 
``undergraduate''.
  Page 101, beginning on line 18, amend paragraph (1) to read 
as follows:
          ``(1) Eligible institution.--The term `eligible 
        institution' means an institution of higher education, 
        as defined in section 102, that the Secretary 
        determines--
                  ``(A) provides high quality teacher 
                preparation and professional development 
                services, including extensive clinical 
                experience as a part of pre-service 
                preparation;
                  ``(B) is financially sound;
                  ``(C) provides pedagogical course work, or 
                assistance in the provision of such coursework, 
                including the monitoring of student 
                performance, and formal instruction related to 
                the theory and practices of teaching; and
                  ``(D) provides supervision and support 
                services to teachers, or assistance in the 
                provision of such services, including mentoring 
                focused on developing effective teaching skills 
                and strategies.
  Page 102, line 15, insert ``and schools'' after ``agencies''.
  Page 102, line 16, strike ``baccalaureate degree'' and insert 
``baccalaureate degree, post-baccalaureate teacher credential, 
or graduate degree''.
  Page 104, after line 3, insert the following new paragraph:
          ``(3) Post-baccalaureate.--The term `post-
        baccalaureate' means a program of instruction that does 
        not lead to a graduate degree, and that consists of 
        courses required by a State in order for the student to 
        receive a professional certification or licensing 
        credential that is required for employment as a teacher 
        in an elementary school or secondary school in that 
        State, except that such term shall not include any 
        program of instruction offered by an institution of 
        higher education that offers a baccalaureate degree in 
        education.
  Page 119, beginning on line 10, strike ``from subgroups with 
low levels of college degree attainment''.
  Page 119, beginning on line 23, through page 120, line 2, 
strike paragraph (8).
  Page 125, beginning on line 22, strike subsection (e) and 
redesignate succeeding subsections accordingly.
  Page 131, line 4, strike ``$30,000,000'' and insert 
``$57,000,000''.
  Page 131, beginning on line 10, amend paragraph (2) to read 
as follows:
          ``(2) Use of funds.--The amounts made available by 
        paragraph (1) shall be available to provide assistance 
        to all Upward Bound projects that did not receive 
        assistance in fiscal year 2007 and that have a grant 
        score above 70. Such assistance shall be made available 
        in the form of 4-year grants.''.
  Page 131, beginning on line 18, strike title V.

                PART B--TEXT OF AMENDMENT MADE IN ORDER


 An Amendment To Be Offered by Representative McKeon of California, or 
                 His Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Pell Grant Enhancement Act'' .

SEC. 2. REDUCTION OF LENDER INSURANCE PERCENTAGE.

  (a) Amendment.--Subparagraph (G) of section 428(b)(1) of the 
Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(G)) is 
amended to read as follows:
                  ``(G) insures 95 percent of the unpaid 
                principal of loans insured under the program, 
                except that--
                          ``(i) 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
                          ``(ii) notwithstanding the preceding 
                        provisions of this subparagraph, such 
                        program shall insure 100 percent of the 
                        unpaid principal amount of exempt 
                        claims as defined in subsection 
                        (c)(1)(G);''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall take effect with respect to loans made on or after 
October 1, 2007.

SEC. 3. GUARANTEE AGENCY COLLECTION RETENTION.

  Clause (ii) of section 428(c)(6)(A) of the Higher Education 
Act of 1965 (20 U.S.C. 1078(c)(6)(A)(ii)) is amended to read as 
follows:
                          ``(ii) an amount equal to 24 percent 
                        of such payments for use in accordance 
                        with section 422B, except that--
                                  ``(I) beginning October 1, 
                                2003 and ending September 30, 
                                2007, this subparagraph shall 
                                be applied by substituting `23 
                                percent' for `24 percent';
                                  ``(II) beginning October 1, 
                                2007 and ending September 30, 
                                2008, this subparagraph shall 
                                be applied by substituting `20 
                                percent' for `24 percent';
                                  ``(III) beginning October 1, 
                                2008 and ending September 30, 
                                2010, this subparagraph shall 
                                be applied by substituting `18 
                                percent' for `24 percent'; and
                                  ``(IV) beginning October 1, 
                                2010, this subparagraph shall 
                                be applied by substituting for 
                                `24 percent' a percentage 
                                determined in accordance with 
                                the regulations of the 
                                Secretary and equal to the 
                                average rate paid to collection 
                                agencies that have contracts 
                                with the Secretary.''.

SEC. 4. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR LENDERS.

  (a) Elimination of Status.--Part B of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amended by 
striking section 428I (20 U.S.C. 1078-9).
  (b) Conforming Amendments.--Part B of title IV of such Act is 
further amended--
          (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
                  (A) by striking subparagraph (D); and
                  (B) by redesignating subparagraphs (E) 
                through (H) as subparagraphs (D) through (G), 
                respectively; and
          (2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by 
        striking the matter following subparagraph (B).
  (c) Effective Date.--The amendments made by subsections (a) 
and (b) shall take effect on October 1, 2007.

SEC. 5. REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS.

  Section 438(b)(2)(I) of the Higher Education Act of 1965 (20 
U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end the 
following new clauses:
                          ``(vi) Reduction for loans disbursed 
                        on or after october 1, 2007.--With 
                        respect to a loan on which the 
                        applicable interest rate is determined 
                        under section 427A(l) and for which the 
                        first disbursement of principal is made 
                        on or after October 1, 2007, the 
                        special allowance payment computed 
                        pursuant to this subparagraph shall be 
                        computed--
                                  ``(I) by substituting `2.0 
                                percent' for `2.34 percent' 
                                each place it appears in this 
                                subparagraph;
                                  ``(II) by substituting `1.4 
                                percent' for `1.74 percent' in 
                                clause (ii); and
                                  ``(III) by substituting `2.0 
                                percent' for `2.64 percent' 
                                each place it appears in 
                                clauses (iii) and (iv).''.

SEC. 6. UNIT COST CALCULATION FOR GUARANTY AGENCY ACCOUNT MAINTENANCE 
                    FEES.

  Section 458(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087h(b)) is amended--
          (1) by striking ``Account'' and inserting the 
        following:
          ``(1) For fiscal years 2006 and 2007.--For each of 
        the fiscal years 2006 and 2007, account''; and
          (2) by adding at the end the following new paragraph:
          ``(2) For fiscal year 2008 and succeeding fiscal 
        years.--
                  ``(A) Unit cost basis.--For fiscal year 2008 
                and each succeeding fiscal year, the Secretary 
                shall calculate the account maintenance fees 
                payable to guaranty agencies under subsection 
                (a)(3), on a per-loan cost basis in accordance 
                with subparagraph (B).
                  ``(B) Determinations.--To determine the 
                amount that shall be paid under subsection 
                (a)(3) per outstanding loan guaranteed by a 
                guaranty agency for fiscal year 2008 and 
                succeeding fiscal years, the Secretary shall--
                          ``(i) establish the per-loan cost 
                        basis amount by--
                                  ``(I) dividing the total 
                                amount of account maintenance 
                                fees paid under subsection 
                                (a)(3) in fiscal year 2006, by
                                  ``(II) the number of loans 
                                under part B that were 
                                outstanding in that fiscal 
                                year; and
                          ``(ii) determine on October 1 of 
                        fiscal year 2008 and each subsequent 
                        fiscal year, and pay to each guaranty 
                        agency, an amount equal to the product 
                        of the number of loans under part B 
                        that are outstanding on October 1 of 
                        that fiscal year and insured by that 
                        guaranty agency multiplied by--
                                  ``(I) the amount determined 
                                under clause (i); increased by
                                  ``(II) a percentage equal to 
                                the percentage increase in the 
                                Consumer Price Index for Wage 
                                Earners (as determined by the 
                                Bureau of Labor Statistics of 
                                the Department of Labor) 
                                between the calendar quarter 
                                ending on June 30, 2006, and 
                                the calendar quarter ending on 
                                the June 30 preceding such 
                                October 1 of such fiscal 
                                year.''.

SEC. 7. TUITION SENSITIVITY.

  (a) Elimination of Tuition Sensitivity.--Section 401(b) of 
the Higher Education Act of 1965 (20 U.S.C. 1070a(b)) is 
amended--
          (1) by striking paragraph (3); and
          (2) by redesignating paragraphs (4) through (9) as 
        paragraphs (3) through (8), respectively.
  (b) Effective Date.--The amendments made by subsection (a) 
shall take effect on July 1, 2008.

SEC. 8. MANDATORY PELL GRANT INCREASES.

  (a) Extension of Authority.--Section 401(a) (20 U.S.C. 
1070a(a)) is amended by striking ``fiscal year 2004'' and 
inserting ``fiscal year 2017''.
  (b) Funding for Increases.--Section 401(b) (20 U.S.C. 
1070a(b)) is amended by adding at the end the following new 
paragraph:
          ``(9) Additional funds.--
                  ``(A) In general.--For an academic year, 
                there are authorized to be appropriated, and 
                there are appropriated, such sums as may be 
                necessary to carry out subparagraph (B) of this 
                paragraph (in addition to any other amounts 
                appropriated to carry out this section and out 
                of any money in the Treasury not otherwise 
                appropriated) the following amounts:
                          ``(i) $1,454,000,000 for fiscal year 
                        2008;
                          ``(ii) $1,915,000,000 for fiscal year 
                        2009;
                          ``(iii) $2,380,000,000 for fiscal 
                        year 2010;
                          ``(iv) $2,845,000,000 for fiscal year 
                        2011;
                          ``(v) $3,386,000,000 for fiscal year 
                        2012;
                          ``(vi) $3,407,000,000 for fiscal year 
                        2013;
                          ``(vii) $3,443,000,000 for fiscal 
                        year 2014;
                          ``(viii) $3,474,000,000 for fiscal 
                        year 2015;
                          ``(ix) $3,502,000,000 for fiscal year 
                        2016; and
                          ``(x) $3,526,000,000 for fiscal year 
                        2017.
                  ``(B) Increase in federal pell grants.--The 
                amounts made available pursuant to subparagraph 
                (A) of this paragraph shall be used to increase 
                the amount of the maximum Pell Grant for which 
                a student shall be eligible during an award 
                year, as specified in the last enacted 
                appropriation Act applicable to that award 
                year, by--
                          ``(i) $350 for award year 2008-2009;
                          ``(ii) $450 for award year 2009-2010;
                          ``(iii) $550 for award year 2010-
                        2011;
                          ``(iv) $650 for award year 2011-2012; 
                        and
                          ``(v) $750 for each of the award 
                        years 2012-2013 through 2017-2018.''.
  (c)  Authorized Maximums.--Section 401(b)(2)(A) (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 for each of 
        the award years 2008-2009 through 2016-2017, the sum 
        of--
                          ``(i) the amount appropriated in the 
                        applicable appropriation Act for the 
                        maximum Federal Pell Grant for that 
                        award year; and
                          ``(ii) the amount specified in 
                        subsection (a)(2)(B) for that award 
                        year;
                less an amount equal to the amount determined 
                to be the expected family contribution with 
                respect to that student for that year.''.

SEC. 9. PLUS LOAN INTEREST RATES.

  Paragraph (2) of section 427A(l) of the Higher Education Act 
of 1965 (20 U.S.C. 1077a(l)(2)) is amended to read as follows:
          ``(2) PLUS loans.--Notwithstanding subsection (h), 
        with respect to any loan under section 428B, the 
        applicable rate of interest--
                  ``(A) shall be 8.5 percent on the unpaid 
                principal balance of any such loan for which 
                the first disbursement is made on or after July 
                1, 2006, and before July 1, 2008; and
                  ``(B) shall be 7.9 percent on the unpaid 
                principal balance of any such loan for which 
                the first disbursement is made on or after July 
                1, 2008.''.

SEC. 10. CONSUMER INFORMATION AND PUBLIC ACCOUNTABILITY IN HIGHER 
                    EDUCATION.

  Section 131 of the Higher Education Act of 1965 (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 Commissioner of 
Education Statistics--
          ``(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 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 relevant data;
                  ``(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 of 
                collecting and reporting useful data from 
                institutions of higher education; and
          ``(3) shall ensure 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 
                ensuring that data are 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 Commissioner of Education 
        Statistics 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 
        continue to publish on the COOL website, 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 Affordability and 
        Transparency Act of 2007), 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, full-year undergraduate 
                student.
                  ``(B) The room and board charges for a first-
                time, full-time, full-year undergraduate 
                student.
                  ``(C) The price of attendance for a first-
                time, full-time, full-year undergraduate 
                student, consistent with the provisions of 
                section 472.
                  ``(D) The average amount of financial 
                assistance received by a first-year, full-time, 
                full-year 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, 
                full-year undergraduate students receiving 
                financial assistance described in each clause 
                of subparagraph (D).
                  ``(F) The institutional instructional 
                expenditure per full-time equivalent student.
                  ``(G) 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.
                  ``(H) Faculty-to-student ratios.
                  ``(I) 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.
                  ``(J) Completion and graduation rates of 
                undergraduate students, 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.
                  ``(K) 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.
                  ``(L) The college affordability information 
                elements specified in subsection (d).
                  ``(M) Any additional information that the 
                Secretary may require.
  ``(d) College Affordability Information Elements.--The 
college affordability information elements required by 
subsection (c)(2)(L) shall include, for each institution 
submitting data--
          ``(1) the sticker price of the institution for the 3 
        most recent academic years;
          ``(2) the net tuition price of the institution for 
        the 3 most recent academic years;
          ``(3) the percentage change in both the sticker price 
        and the net tuition price over the 3-year time period 
        that is being reported;
          ``(4) the percentage change in the CPI over the same 
        time period; and
          ``(5) whether the institution has been placed on 
        affordability alert status as required by subsection 
        (e)(3).
  ``(e) Outcomes and Actions.--
          ``(1) Response from institution.--Effective on June 
        30, 2008, an institution that increases its sticker 
        price at a percentage rate for any 3-year interval 
        ending on or after that date that exceeds two times the 
        rate of change in the CPI over the same time period 
        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 be 
        published by the Secretary on the COOL website, and 
        shall include--
                  ``(A) a description of the factors 
                contributing to the increase in the 
                institution's costs and in the tuition and fees 
                charged to students; and
                  ``(B) 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) Quality-efficiency task forces.--
                  ``(A) Required.--Each institution subject to 
                paragraph (1) that has a percentage change in 
                its sticker price that is in the highest 5 
                percent 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, business and civic 
                leaders, and faculty, and may include 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 made available to the public 
                on the COOL website.
          ``(3) Consequences for 2-year continuation of 
        failure.--If the Secretary determines that an 
        institution that is subject to paragraph (1)) has 
        failed to reduce the subsequent increase in sticker 
        price below two times the rate of change in the CPI for 
        2 consecutive academic years subsequent to the 3-year 
        interval used under paragraph (1), the Secretary shall 
        place the institution on affordability alert status.
          ``(4) Exemptions.--Notwithstanding paragraph (3), an 
        institution shall not be placed on affordability alert 
        status if, for any 3-year interval for which sticker 
        prices are computed under paragraph (1)--
                  ``(A) with respect the the class of 
                institutions described in paragraph (6) to 
                which the institution belongs, the sticker 
                price of the institution is in the lowest 
                quartile of institutions within such class, as 
                determined by the Secretary, during the last 
                year of such 3-year interval; or
                  ``(B) the institution has a percentage change 
                in its sticker price computed under paragraph 
                (1) that exceeds two times the rate of change 
                in the CPI over the same time period, but the 
                dollar amount of the sticker price increase is 
                less than $500.
          ``(5) Information to state agencies.--Any institution 
        that reports under paragraph (1)(B) 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) 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.
          ``(7) Data rejection.--Nothing in this subsection 
        shall be construed as allowing the Secretary to reject 
        the data submitted by an individual institution of 
        higher education.
  ``(f) Information to the Public.--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 means-tested federally 
funded education programs and other Federal programs determined 
by the Secretary.
  ``(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 required by 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 under subsections (c) and (j) 
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 sticker 
                        prices; or
                          ``(ii) are within the least costly 
                        quartile of institutions within each 
                        class described in subsection (e)(6);
                  ``(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) if the institution is a public 
                institution, the relationship between State and 
                local appropriations and the institution's 
                tuition and fees;
                  ``(I) the extent to which policies and 
                practices reducing costs and prices may be 
                replicated from one institution to another; and
                  ``(J) 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 Commissioner of Education 
        Statistics 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.
  ``(k) Definitions.--For the purposes of this section:
          ``(1) Net tuition price.--The term `net tuition 
        price' means the average tuition and fees charged to a 
        first-time, full-time, full-year undergraduate student, 
        minus the average grants provided to such students, for 
        any academic year.
          ``(2) Sticker price.--The term `sticker price' means 
        the average tuition and fees charged to a first-time, 
        full-time, full-year undergraduate student by an 
        institution of higher education for any academic year.
          ``(3) CPI.--The term `CPI' means the Consumer Price 
        Index-All Urban Consumers (Current Series).''.

SEC. 11. COLLEGE AFFORDABILITY DEMONSTRATION PROJECT.

  (a) .--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 PROJECT.

  ``(a) Purpose.--It is the purpose of this section--
          ``(1) to provide, through a college affordability 
        demonstration project, 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 Project 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 Project 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 Project, 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 project authorized under this 
                section.
                  ``(B) Prohibition.--An institution of higher 
                education described in section 102(a)(1)(C) 
                shall not be eligible to participate in the 
                demonstration project authorized under this 
                section.
  ``(c) Application.--
          ``(1) In general.--Each institution or system of 
        institutions desiring to participate in the 
        demonstration project 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 project 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 
                ensure 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 
                        project 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) an assurance from each institution in a 
                system or consortium of a commitment to fulfill 
                its role as described in the application;
                  ``(F) an assurance that the participating 
                institution or system of institutions will 
                offer full cooperation with the ongoing 
                evaluations of the demonstration project 
                provided for in this section; and
                  ``(G) any other information or assurances the 
                Secretary may require.
  ``(d) Selection.--In selecting institutions to participate in 
the demonstration project 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 
project 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 project 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 resulting from the waivers provided, 
                and an estimate as to future cost savings for 
                the duration of the demonstration project;
                  ``(F) the extent to which students saved 
                money by completing their postsecondary 
                education sooner;
                  ``(G) the extent to which the institution 
                reduced its tuition and fees and its costs by 
                participating in the demonstration project
                  ``(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 project 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 project 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 project 
                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 project 
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 project;
          ``(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, 2012.''.

SEC. 12. MULTIPLE GRANTS.

  (a) Amendment.--Paragraph (5) of section 401(b) (as 
redesignated by section 7(a)(2) of this Act) is amended to read 
as follows:
          ``(5) Year-round pell grants.--The Secretary is 
        authorized, for students enrolled in a baccalaureate 
        degree, associate's degree, or certificate program of 
        study at an eligible institution, to award such 
        students not more than two Pell grants during an award 
        year to permit such students to accelerate progress 
        toward their degree or certificate objectives by 
        enrolling in courses for more than 2 semesters, or 3 
        quarters, or the equivalent, in a given academic 
        year.''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall be effective July 1, 2009.

SEC. 13. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.

  Part G of title IV is amended by inserting after section 484B 
(20 U.S.C. 1091b) the following new section:

``SEC. 484C. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.

  ``(a) Deferral of Loan Repayment Following Active Duty.--In 
addition to any deferral of repayment of a loan made under this 
title pursuant to section 428(b)(1)(M)(iii), 455(f)(2)(C), or 
464(c)(2)(A)(ii), a borrower of a loan under this title who is 
a member of the National Guard or other reserve component of 
the Armed Forces of the United States, or a member of such 
Armed Forces in a retired status, is called or ordered to 
active duty, and is currently enrolled, or was enrolled within 
six months prior to the activation, in a program of instruction 
at an eligible institution, shall be eligible for a deferment 
during the 13 months following the conclusion of such service, 
except that a deferment under this subsection shall expire upon 
the borrower's return to enrolled student status.
  ``(b) Active Duty.--Notwithstanding section 481(d), in this 
section, 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--
          ``(1) does not include active duty for training or 
        attendance at a service school; but
          ``(2) includes, in the case of members of the 
        National Guard, active State duty.''.

                                  
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