[House Report 115-550]
[From the U.S. Government Publishing Office]


115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 115-550

======================================================================
                           
                                 
                  PROMOTING REAL OPPORTUNITY, SUCCESS,
                    AND PROSPERITY THROUGH EDUCATION
                               REFORM ACT

                               ----------                              

                              R E P O R T

                                 OF THE

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              TO ACCOMPANY
                              
                               H.R. 4508

                             together with

                             MINORITY VIEWS

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]


February 8, 2018.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed
              
              
              
              
              
                PROMOTING REAL OPPORTUNITY, SUCCESS, AND 
                PROSPERITY THROUGH EDUCATION REFORM ACT
                
                
                
 
115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 115-550

======================================================================               
 
                 PROMOTING REAL OPPORTUNITY, SUCCESS,

                    AND PROSPERITY THROUGH EDUCATION

                               REFORM ACT

                               __________

                              R E P O R T

                                 of the

                COMMITTEE ON EDUCATION AND THE WORKFORCE

                              to accompany

                               H.R. 4508

                             together with

                             MINORITY VIEWS

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]



        February 8, 2018.--Committed to the Committee of the Whole House 
                   on the State of the Union and ordered to be printed


                                __________
                               

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
28-573                       WASHINGTON : 2018  

----------------------------------------------------------------------------------------

                
 
115th Congress }                                          { REPORT
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 115-550

======================================================================       
 
 PROMOTING REAL OPPORTUNITY, SUCCESS, AND PROSPERITY THROUGH EDUCATION 
                               REFORM ACT

                                _______
                                

   February 8, 2018.--Committed to the Committee of the Whole House on the 
                   State of the Union and ordered to be printed

                                _______
                                

    Ms. Foxx, 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. 4508]

      [Including cost estimate of the Congressional Budget Office]

    The Committee Education and the Workforce, to whom was 
referred the bill (H.R. 4508) to support students in completing 
an affordable postsecondary education that will prepare them to 
enter the workforce with the skills they need for lifelong 
success, having considered the same, reports favorably thereon 
with an amendment and recommends 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 ``Promoting Real 
Opportunity, Success, and Prosperity through Education Reform Act'' or 
the ``PROSPER Act''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

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

                      TITLE I--GENERAL PROVISIONS

                          Part A--Definitions

Sec. 101. Definition of institution of higher education.
Sec. 102. Institutions outside the United States.
Sec. 103. Additional definitions.
Sec. 104. Regulatory relief.

                 Part B--Additional General Provisions

Sec. 111. Free speech protections.
Sec. 112. Sense of Congress on inclusion and respect.
Sec. 113. National Advisory Committee on Institutional Quality and 
Integrity.
Sec. 114. Repeal of certain reporting requirements.
Sec. 115. Programs on drug and alcohol abuse prevention.
Sec. 116. Campus access for religious groups.
Sec. 117. Secretarial prohibitions.
Sec. 118. Ensuring equal treatment by governmental entities.
Sec. 119. Single-sex social student organizations.
Sec. 120. Department staff.
Sec. 120A. Department of Homeland Security Recruiting on Campus.

                    Part C--Cost of Higher Education

Sec. 121. College Dashboard website.
Sec. 122. Net price calculators.
Sec. 123. Text book information.
Sec. 124. Review of current data collection and feasibility study of 
improved data collection.

  Part D--Administrative Provisions for Delivery of Student Financial 
                               Assistance

Sec. 131. Performance-based organization for the delivery of Federal 
student financial assistance.
Sec. 132. Administrative data transparency.
Sec. 133. Report by GAO on transfer of functions of the Office of 
Federal Student Aid to the Department of Treasury.

Part E--Lender and Institution Requirements Relating to Education Loans

Sec. 141. Modification of preferred lender arrangements.

                   Part F--Addressing Sexual Assault

Sec. 151. Addressing sexual assault.

        TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS

Sec. 201. Repeal.
Sec. 202. Grants for access to high-demand careers.

                      TITLE III--INSTITUTIONAL AID

Sec. 301. Strengthening institutions.
Sec. 302. Strengthening historically Black colleges and universities.
Sec. 303. Historically Black college and university capital financing.
Sec. 304. Minority Science and Engineering Improvement Program.
Sec. 305. Strengthening historically Black colleges and universities 
and other minority-serving institutions.
Sec. 306. General provisions.

                      TITLE IV--STUDENT ASSISTANCE

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

Sec. 401. Federal Pell Grants.
Sec. 402. Federal TRIO programs.
Sec. 403. Gaining early awareness and readiness for undergraduate 
programs.
Sec. 404. Special programs for students whose families are engaged in 
migrant and seasonal farmwork.
Sec. 405. Child care access means parents in school.
Sec. 406. Repeals.
Sec. 407. Sunset of TEACH grants.

             Part B--Federal Family Education Loan Program

Sec. 421. Federal Direct Consolidation Loans.
Sec. 422. Loan rehabilitation.
Sec. 423. Loan forgiveness for teachers.
Sec. 424. Loan forgiveness for service in areas of national need.
Sec. 425. Loan repayment for civil legal assistance attorneys.
Sec. 426. Sunset of cohort default rate and other conforming changes.
Sec. 427. Additional disclosures.
Sec. 428. Closed school and other discharges.

                  Part C--Federal Work-Study Programs

Sec. 441. Purpose; authorization of appropriations.
Sec. 442. Allocation formula.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Job location and development programs.
Sec. 446. Community service.
Sec. 447. Work colleges.

              Part D--Federal Direct Student Loan Program

Sec. 451. Termination of Federal Direct Loan Program under part D and 
other conforming amendments.
Sec. 452. Borrower defenses.
Sec. 453. Plain language disclosure form.
Sec. 454. Administrative expenses.
Sec. 455. Loan cancellation for teachers.

                       Part E--Federal ONE Loans

Sec. 461. Wind-down of Federal Perkins Loan Program.
Sec. 462. Federal ONE Loan program.

                         Part F--Need Analysis

Sec. 471. Cost of attendance.
Sec. 472. Simplified needs test.
Sec. 473. Discretion of student financial aid administrators.
Sec. 474. Definitions of total income and assets.

       Part G--General Provisions Relating to Student Assistance

Sec. 481. Definitions of academic year and eligible program.
Sec. 482. Programmatic loan repayment rates.
Sec. 483. Master calendar.
Sec. 484. FAFSA Simplification.
Sec. 485. Student eligibility.
Sec. 486. Statute of limitations.
Sec. 487. Institutional refunds.
Sec. 488. Information disseminated to prospective and enrolled 
students.
Sec. 489. Early awareness of financial aid eligibility.
Sec. 490. Distance education demonstration programs.
Sec. 491. Contents of program participation agreements.
Sec. 492. Regulatory relief and improvement.
Sec. 493. Transfer of allotments.
Sec. 494. Administrative expenses.
Sec. 494A. Repeal of advisory committee.
Sec. 494B. Regional meetings and negotiated rulemaking.
Sec. 494C. Report to Congress.
Sec. 494D. Deferral of loan repayment following active duty.
Sec. 494E. Contracts; matching program.

                       Part H--Program Integrity

Sec. 495. Repeal of and prohibition on State authorization regulations.
Sec. 496. Recognition of accrediting agency or association.
Sec. 497. Eligibility and certification procedures.

                    TITLE V--DEVELOPING INSTITUTIONS

Sec. 501. Hispanic-serving institutions.
Sec. 502. Promoting postbaccalaureate opportunities for Hispanic 
Americans.
Sec. 503. General provisions.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Repeal of assistance program for Institute for International 
Public Policy.
Sec. 604. General provisions.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Sec. 701. Graduate education programs.
Sec. 702. Repeal of Fund for the Improvement of Postsecondary 
Education.
Sec. 703. Programs for students with disabilities.
Sec. 704. Repeal of college access challenge grant program.

                       TITLE VIII--OTHER REPEALS

Sec. 801. Repeal of additional programs.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986

Sec. 901. Education of the Deaf Act of 1986.

Part B--Tribally Controlled Colleges and Universities Assistance Act of 
                        1978; Dine' College Act

Sec. 911. Tribally Controlled Colleges and Universities Assistance Act 
of 1978.
Sec. 912. Dine' College Act.

                Part C--General Education Provisions Act

Sec. 921. Release of education records to facilitate the award of a 
recognized postsecondary credential.

SEC. 2. REFERENCES.

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

SEC. 3. GENERAL EFFECTIVE DATE.

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

                      TITLE I--GENERAL PROVISIONS

                          PART A--DEFINITIONS

SEC. 101. DEFINITION OF INSTITUTION OF HIGHER EDUCATION.

  Part A of title I (20 U.S.C. 1001 et seq.) is amended by striking 
section 101 (20 U.S.C. 1001) 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 persons who--
                  ``(A) have a certificate of graduation from a school 
                providing secondary education, or the recognized 
                equivalent of such a certificate, or who meet the 
                requirements of section 484(d);
                  ``(B) are beyond the age of compulsory school 
                attendance in the State in which the institution is 
                located; or
                  ``(C) will be dually or concurrently enrolled in the 
                institution and a secondary school;
          ``(2) is legally authorized by the State in which it 
        maintains a physical location 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 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; and
          ``(4) provides--
                  ``(A) an educational program for which the 
                institution awards a bachelor's degree, graduate 
                degree, or professional degree;
                  ``(B) not less than a 2-year educational program 
                which is acceptable for full credit towards a 
                bachelor's degree; or
                  ``(C) a non-degree program leading to a recognized 
                educational credential that meets the definition of an 
                eligible program under section 481(b).
  ``(b) Additional Limitations.--
          ``(1) Proprietary institutions of higher education.--
                  ``(A) Length of existence.--A proprietary institution 
                shall not be considered an institution of higher 
                education unless such institution has been in existence 
                for at least 2 years.
                  ``(B) Institutional ineligibility for minority 
                serving institution programs.--A proprietary 
                institution shall not be considered an institution of 
                higher education for the purposes of any program under 
                title III or V.
          ``(2) Postsecondary vocational institutions.--A nonprofit or 
        public institution that offers only non-degree programs 
        described in subsection (a)(4)(C) shall not be considered 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 an institution of higher education 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; 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 funds, or has been judicially determined to 
                have committed a crime involving the acquisition, use, 
                or expenditure involving Federal funds.
          ``(4) Limitation on course of study or enrollment.--An 
        institution shall not be considered an institution of higher 
        education if such institution--
                  ``(A) offers more than 50 percent of such 
                institution's courses by correspondence education, 
                unless the institution is an institution that meets the 
                definition in section 3(3)(C) of the Carl D. Perkins 
                Career and Technical Education Act of 2006;
                  ``(B) enrolls 50 percent or more of the institution's 
                students in correspondence education courses, unless 
                the institution is an institution that meets the 
                definition in section 3(3)(C) of such Act;
                  ``(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 an associate's degree or a 
                postsecondary certificate, or a bachelor's degree, 
                respectively; or
                  ``(D) has a student enrollment in which more than 50 
                percent of the students either do not have a secondary 
                school diploma or its recognized equivalent, or do not 
                meet the requirements of section 484(d), 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 have a secondary school diploma or its 
                recognized equivalent or do not meet the requirements 
                of section 484(d).
  ``(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 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 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.
  ``(f) Rule of Construction.--Nothing in subsection (a)(2) relating to 
State authorization shall be construed to--
          ``(1) impede or preempt State laws, regulations, or 
        requirements on how States authorize out-of-state institutions 
        of higher education; or
          ``(2) limit, impede, or preclude a State's ability to 
        collaborate or participate in a reciprocity agreement to permit 
        an institution within such State to meet any other State's 
        authorization requirements for out-of-state institutions.''.

SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

  Part A of title I (20 U.S.C. 1001 et seq.) is further amended by 
striking section 102 (20 U.S.C. 1002) and inserting the following:

``SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

  ``(a) Institutions Outside the United States.--
          ``(1) In general.--Only for purposes of part D or E of title 
        IV, the term `institution of higher education' includes an 
        institution outside the United States (referred to in this part 
        as a `foreign institution') that is comparable to an 
        institution of higher education as defined in section 101 and 
        has been approved by the Secretary for purposes of part D or E 
        of title IV, consistent with the requirements of section 
        452(d).
          ``(2) Qualifications.--Only for the purposes of students 
        receiving aid under title IV, an institution of higher 
        education may not qualify as a foreign institution under 
        paragraph (1), unless such institution--
                  ``(A) is legally authorized to provide an educational 
                program beyond secondary education by the education 
                ministry (or comparable agency) of the country in which 
                the institution is located;
                  ``(B) is not located in a State;
                  ``(C) except as provided with respect to clinical 
                training offered by the institution under 600.55(h)(1), 
                section 600.56(b), or section 600.57(a)(2) of title 34, 
                Code of Federal Regulations (as in effect pursuant to 
                subsection (b))--
                          ``(i) does not offer any portion of an 
                        educational program in the United States to 
                        students who are citizens of the United States;
                          ``(ii) has no written arrangements with an 
                        institution or organization located in the 
                        United States under which students enrolling at 
                        the foreign institution would take courses from 
                        an institution located in the United States; 
                        and
                          ``(iii) does not allow students to enroll in 
                        any course offered by the foreign institution 
                        in the United States, including research, work, 
                        internship, externship, or special studies 
                        within the United States, except that 
                        independent research done by an individual 
                        student in the United States for not more than 
                        one academic year is permitted, if the research 
                        is conducted during the dissertation phase of a 
                        doctoral program under the guidance of faculty 
                        and the research is performed at a facility in 
                        the United States;
                  ``(D) awards degrees, certificates, or other 
                recognized educational credentials in accordance with 
                section 600.54(e) of title 34, Code of Federal 
                Regulations (as in effect pursuant to subsection (b)) 
                that are officially recognized by the country in which 
                the institution is located; and
                  ``(E) meets the applicable requirements of subsection 
                (b).
          ``(3) Institutions with locations in and outside the united 
        states.--In a case of an institution of higher education 
        consisting of two or more locations offering all or part of an 
        educational program that are directly or indirectly under 
        common ownership and that enrolls students both within a State 
        and outside the United States, and the number of students who 
        would be eligible to receive funds under title IV attending 
        locations of such institution outside the United States, is at 
        least twice the number of students enrolled within a State--
                  ``(A) the locations outside the United States shall 
                apply to participate as one or more foreign 
                institutions and shall meet the requirements of 
                paragraph (1) of this definition, and the other 
                requirements of this part; and
                  ``(B) the locations within a State shall be treated 
                as an institution of higher education under section 
                101.
  ``(b) Treatment of Certain Regulations.--
          ``(1) Force and effect.--
                  ``(A) In general.--The provisions of title 34, Code 
                of Federal Regulations, referred to in subparagraph 
                (B), as such provisions were in effect on the day 
                before the date of the enactment of the PROSPER Act, 
                shall have the force and effect of enacted law until 
                changed by such law and are deemed to be incorporated 
                in this subsection as though set forth fully in this 
                subsection.
                  ``(B) Applicable provisions.--The provisions of title 
                34, Code of Federal Regulations, referred to in this 
                subparagraph are the following:
                          ``(i) Subject to paragraph (2)(A), section 
                        600.41(e)(3).
                          ``(ii) Subject to paragraph (2)(B), section 
                        600.52.
                          ``(iii) Subject to paragraph (2)(C), section 
                        600.54.
                          ``(iv) Subject to subparagraphs (D) and (E) 
                        of paragraph (2), section 600.55, except that 
                        paragraph (4) of subsection (f) of such section 
                        shall have no force or effect.
                          ``(v) Section 600.56.
                          ``(vi) Subject to paragraph (2)(F), section 
                        600.57.
                          ``(vii) Subject to subparagraphs (G) and (H) 
                        of paragraph (2), section 668.23(h), except 
                        that clause (iii) of paragraph (1) of such 
                        section shall have no force or effect.
                          ``(viii) Section 668.5.
                  ``(C) Application to federal one loans.--With respect 
                to the provisions of title 34, Code of Federal 
                Regulations, referred to subparagraph (B), as modified 
                by paragraph (2) any reference to a loan made under 
                part D of title IV shall also be treated as a reference 
                to a loan made under part E of title IV.
          ``(2) Modifications.--The following shall apply to the 
        provisions of title 34, Code of Federal Regulations, referred 
        to in paragraph (1)(B):
                  ``(A) Notwithstanding section 600.41(e)(3) of title 
                34, Code of Federal Regulations (as in effect pursuant 
                to paragraph (1)), if the basis for the loss of 
                eligibility of a foreign graduate medical school to 
                participate in programs under title IV is one or more 
                annual pass rates on the United States Medical 
                Licensing Examination below the threshold required in 
                subparagraph (D) the sole issue is whether the 
                aggregate pass rate for the preceding calendar year 
                fell below that threshold. For purposes of the 
                preceding sentence, in the case of a foreign graduate 
                medical school that opted to have the Educational 
                Commission for Foreign Medical Graduates calculate and 
                provide the pass rates directly to the Secretary for 
                the preceding calendar year as permitted under section 
                600.55(d)(2) of title 34, Code of Federal Regulations 
                (as in effect pursuant to paragraph (1)), in lieu of 
                the foreign graduate medical school providing pass rate 
                data to the Secretary under section 600.55(d)(1)(iii) 
                of title 34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), the Educational Commission 
                for Foreign Medical Graduates' calculations of the 
                school's rates are conclusive; and the presiding 
                official has no authority to consider challenges to the 
                computation of the rate or rates by the Educational 
                Commission for Foreign Medical Graduates.
                  ``(B) Notwithstanding section 600.52 of title 34, 
                Code of Federal Regulations (as in effect pursuant to 
                paragraph (1)), in this Act, the term `foreign 
                institution' means an institution described in 
                subsection (a).
                  ``(C) Notwithstanding section 600.54(c) of title 34, 
                Code of Federal Regulations (as in effect pursuant to 
                paragraph (1)), to be eligible to participate in 
                programs under title IV, foreign institution may not 
                enter into a written arrangement under which an 
                institution or organizations that is not eligible to 
                participate in programs under title IV provides more 
                than 25 percent of the program of study for one or more 
                of the eligible foreign institution's programs.
                  ``(D) Notwithstanding section 600.55(f)(1)(ii) of 
                title 34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), for a foreign graduate 
                medical school outside of Canada, for Step 1, Step 2-
                CS, and Step 2-CK, or the successor examinations, of 
                the United States Medical Licensing Examination 
                administered by the Educational Commission for Foreign 
                Medical Graduate, at least 75 percent of the school's 
                students and graduates who receive or have received 
                title IV funds in order to attend that school, and who 
                completed the final of these three steps of the 
                examination in the year preceding the year for which 
                any of the school's students seeks a loan under title 
                IV shall have received an aggregate passing score on 
                the exam as a whole; or except as provided in section 
                600.55(f)(2) of title 34, Code of Federal Regulations 
                (as in effect pursuant to paragraph (1)), for no more 
                than two consecutive years, at least 70 percent of the 
                individuals who were students or graduates of the 
                graduate medical school outside the United States or 
                Canada (who receive or have received title IV funds in 
                order to attend that school) taking the United States 
                Medical Licensing Examination exams in the year 
                preceding the year for which any of the school's 
                students seeks a loan under title IV shall have 
                received an aggregate passing score on the exam as a 
                whole.
                  ``(E) Notwithstanding 600.55(h)(2) of title 34, Code 
                of Federal Regulations (as in effect pursuant to 
                paragraph (1)), not more than 25 percent of the 
                graduate medical educational program offered to United 
                States students, other than the clinical training 
                portion of the program, may be located outside of the 
                country in which the main campus of the foreign 
                graduate medical school is located.
                  ``(F) Notwithstanding section 600.57(a)(5) of title 
                34, Code of Federal Regulations (as in effect pursuant 
                to paragraph (1)), a nursing school shall reimburse the 
                Secretary for the cost of any loan defaults for current 
                and former students during the previous fiscal year.
                  ``(G) Notwithstanding section 668.23(h)(1)(ii), of 
                title 34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), a foreign institution that 
                received $500,000 or more in funds under title IV 
                during its most recently completed fiscal year shall 
                submit, in English, for each most recently completed 
                fiscal year in which it received such funds, audited 
                financial statements prepared in accordance with 
                generally accepted accounting principles of the 
                institution's home country provided that such 
                accounting principles are comparable to the 
                International Financial Reporting Standards.
                  ``(H) Notwithstanding section 668.23(h)(1)(ii), of 
                title 34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), only in a case in which the 
                accounting principles of an institution's home country 
                are not comparable to International Financial Reporting 
                Standards shall the institution be required to submit 
                corresponding audited financial statements that meet 
                the requirements of section 668.23(d) of title 34, Code 
                of Federal Regulations (as in effect pursuant to 
                paragraph (1)).
  ``(c) Special Rules.--
          ``(1) In general.--A foreign graduate medical school at which 
        student test passage rates are below the minimum requirements 
        set forth in subsection (b)(2)(D) for each of the two most 
        recent calendar years for which data are available shall not be 
        eligible to participate in programs under part D or E of title 
        IV in the fiscal year subsequent to that consecutive two year 
        period and such institution shall regain eligibility to 
        participate in programs under such part only after 
        demonstrating compliance with requirements under section 600.55 
        of title 34, Code of Federal Regulations (as in effect pursuant 
        to subsection (b)) for one full calendar year subsequent to the 
        fiscal year the institution became ineligible unless, within 30 
        days of receiving notification from the Secretary of the loss 
        of eligibility under this paragraph, the institution appeals 
        the loss of its eligibility to the Secretary. The Secretary 
        shall issue a decision on any such appeal within 45 days after 
        its submission. Such decision may permit the institution to 
        continue to participate in programs under part D or E of title 
        IV, if--
                  ``(A) the institution demonstrates to the 
                satisfaction of the Secretary that the test passage 
                rates on which the Secretary has relied are not 
                accurate, and that the recalculation of such rates 
                would result in rates that exceed the required minimum 
                for any of these two calendar years; or
                  ``(B) there are, in the judgement of the Secretary, 
                mitigating circumstances that would make the 
                application of this paragraph inequitable.
          ``(2) Student eligibility.--If, pursuant to this subsection, 
        a foreign graduate medical school loses eligibility to 
        participate in the programs under part D or E of title IV, then 
        a student at such institution may, notwithstanding such loss of 
        eligibility, continue to be eligible to receive a loan under 
        such part while attending such institution for the academic 
        year succeeding the academic year in which such loss of 
        eligibility occurred.
          ``(3) Treatment of clinical training programs.--
                  ``(A) In general.--Clinical training programs 
                operated by a foreign graduate medical school with an 
                accredited hospital or clinic in the United States or 
                at an institution in Canada accredited by the Liaison 
                Committee on Medical Education shall be deemed to be 
                approved and shall not require the prior approval of 
                the Secretary.
                  ``(B) On-site evaluations.--Any part of a clinical 
                training program operated by a foreign graduate medical 
                school located in a foreign country other than the 
                country in which the main campus is located, in the 
                United States, or at an institution in Canada 
                accredited by the Liaison Committee on Medical 
                Education, shall not require an on-site evaluation or 
                specific approval by the institution's medical 
                accrediting agency if the location is a teaching 
                hospital accredited by and located within a foreign 
                country approved by the National Committee on Foreign 
                Medical Education and Accreditation.
  ``(d) Failure to Release Information.--An institution outside the 
United States that does not provide to the Secretary such information 
as may be required by this section shall be ineligible to participate 
in the loan program under part D or E of title IV.
  ``(e) Online Education.--Notwithstanding section 481(b)(2), an 
eligible program described in section 600.54 of title 34, Code of 
Federal Regulations (as in effect pursuant to subsection (b)) may not 
offer more than 50 percent of courses through telecommunications.''.

SEC. 103. ADDITIONAL DEFINITIONS.

  (a) Diploma Mill.--Section 103(5)(B) (20 U.S.C. 1003(5)(B)) is 
amended by striking ``section 102'' and inserting ``section 101 or 
102''.
  (b) Correspondence Education.--Section 103(7) (20 U.S.C. 1003(7)) is 
amended to read as follows:
          ``(7) Correspondence education.--The term `correspondence 
        education' means education that is provided by an institution 
        of higher education under which--
                  ``(A) the institution provides instructional 
                materials (including examinations on the materials) by 
                mail or electronic transmission to students who are 
                separated from the instructor; and
                  ``(B) interaction between the institution and the 
                student is limited and the academic instruction by 
                faculty is not regular and substantive, as assessed by 
                the institution's accrediting agency or association 
                under section 496.''.
  (c) Early Childhood Education Program.--Section 103(8) (20 U.S.C. 
1003(8)) is amended to read as follows:
          ``(8) Early childhood education program.--The term `early 
        childhood education program' means a program--
                  ``(A) that serves children of a range of ages from 
                birth through age five that addresses the children's 
                cognitive (including language, early literacy, and 
                early mathematics), social, emotional, and physical 
                development; and
                  ``(B) that is--
                          ``(i) a Head Start program or an Early Head 
                        Start program carried out under the Head Start 
                        Act (42 U.S.C. 9831 et seq.), including a 
                        migrant or seasonal Head Start program, an 
                        Indian Head Start program, or a Head Start 
                        program or an Early Head Start program that 
                        also receives State funding;
                          ``(ii) a State licensed or regulated child 
                        care program;
                          ``(iii) a State-funded prekindergarten or 
                        child care program;
                          ``(iv) a program authorized under section 619 
                        of the Individuals with Disabilities Education 
                        Act or part C of such Act; or
                          ``(v) a program operated by a local 
                        educational agency.''.
  (d) Nonprofit.--Section 103(13) (20 U.S.C. 1003(13)) is amended to 
read as follows:
          ``(13) Nonprofit.--
                  ``(A) The term `nonprofit', when used with respect 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.
                  ``(B) The term `nonprofit', when used with respect to 
                foreign institution means--
                          ``(i) an institution that is owned and 
                        operated only by one or more nonprofit 
                        corporations or associations; and
                          ``(ii)(I) if a recognized tax authority of 
                        the institution's home country is recognized by 
                        the Secretary for purposes of making 
                        determinations of an institution's nonprofit 
                        status for purposes of title IV, the 
                        institution is determined by that tax authority 
                        to be a nonprofit educational institution; or
                          ``(II) if no recognized tax authority of the 
                        institution's home country is recognized by the 
                        Secretary for purposes of making determinations 
                        of an institution's nonprofit status for 
                        purposes of title IV, the foreign institution 
                        demonstrates to the satisfaction of the 
                        Secretary that it is a nonprofit educational 
                        institution.''.
  (e) Competency-based Education; Competency-based Education Program.--
Section 103 (20 U.S.C. 1003) is amended by adding at the end the 
following:
          ``(25) Competency-based education; competency-based education 
        program.--
                  ``(A) Competency-based education.--Except as 
                otherwise provided, the term `competency-based 
                education' means education that--
                          ``(i) measures academic progress and 
                        attainment--
                                  ``(I) by direct assessment of a 
                                student's level of mastery of 
                                competencies;
                                  ``(II) by expressing a student's 
                                level of mastery of competencies in 
                                terms of equivalent credit or clock 
                                hours; or
                                  ``(III) by a combination of the 
                                methods described in subclauses (I) or 
                                (II) and credit or clock hours; and
                          ``(ii) provides the educational content, 
                        activities, and resources, including 
                        substantive instructional interaction, 
                        including by faculty, and regular support by 
                        the institution, necessary to enable students 
                        to learn or develop what is required to 
                        demonstrate and attain mastery of such 
                        competencies, as assessed by the accrediting 
                        agency or association of the institution of 
                        higher education.
                  ``(B) Competency-based education program.--Except as 
                otherwise provided, the term `competency-based 
                education program' means a postsecondary program 
                offered by an institution of higher education that--
                          ``(i) provides competency-based education, 
                        which upon a student's demonstration or mastery 
                        of a set of competencies identified and 
                        required by the institution, leads to or 
                        results in the award of a certificate, degree, 
                        or other recognized educational credential;
                          ``(ii) ensures title IV funds may be used 
                        only for learning that results from instruction 
                        provided, or overseen, by the institution, not 
                        for the portion of the program of which the 
                        student has demonstrated mastery prior to 
                        enrollment in the program or tests of learning 
                        that are not associated with educational 
                        activities overseen by the institution; and
                          ``(iii) is organized in such a manner that an 
                        institution can determine, based on the method 
                        of measurement selected by the institution 
                        under subparagraph (A)(i), what constitutes a 
                        full-time, three-quarter time, half-time, and 
                        less than half-time workload for the purposes 
                        of awarding and administering assistance under 
                        title IV of this Act, or assistance provided 
                        under another provision of Federal law to 
                        attend an institution of higher education.
                  ``(C) Competency defined.--In this paragraph, the 
                term `competency' means the knowledge, skill, or 
                ability demonstrated by a student in a subject area.''.
  (f) Pay for Success Initiative.--Section 103 (20 U.S.C. 1003) is 
amended by adding at the end the following:
          ``(26) Pay for success initiative.--The term `pay for success 
        initiative' has the meaning given the term in section 8101 of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).''.
  (g) Evidence-based.--Section 103 (20 U.S.C. 1003) is amended by 
adding at the end the following:
          ``(27) Evidence-based.--The term `evidence-based' has the 
        meaning given the term in section 8101(21)(A) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801(21)(A)), 
        except that such term shall also apply to institutions of 
        higher education.''.

SEC. 104. REGULATORY RELIEF.

  (a) Regulations Repealed.--
          (1) Repeal.--The following regulations (including any 
        supplement or revision to such regulations) are repealed and 
        shall have no legal effect:
                  (A) Definition of credit hour.--The definition of the 
                term ``credit hour'' in section 600.2 of title 34, Code 
                of Federal Regulations, as added by the final 
                regulations published by the Department of Education in 
                the Federal Register on October 29, 2010 (75 Fed. Reg. 
                66946).
                  (B) Gainful employment.--Sections 600.10(c), 
                600.20(d), 668.401 through 668.415, 668.6, and 668.7, 
                of title 34, Code of Federal Regulations, as added or 
                amended by the final regulations published by the 
                Department of Education in the Federal Register on 
                October 31, 2014 (79 Fed. Reg. 64889 et seq.).
                  (C) Borrower defense.--Sections 668.41, 668.90, 
                668.93, 668.171, 668.175, 674.33, 682.211, 682.402(d), 
                682.405, 682.410, 685.200, 685.205, 685.206, 
                685.212(k), 685.214, 685.215, 685.222, appendix A to 
                subpart B of part 685, 685.300, 685.308, of title 34, 
                Code of Federal Regulations, as added or amended by the 
                final regulations published by the Department of 
                Education in the Federal Register on November 1, 2016 
                (81 Fed. Reg. 75926 et seq.).
          (2) Effect of repeal.--To the extent that regulations 
        repealed--
                  (A) by subparagraph (A) or subparagraph (B) of 
                paragraph (1) amended regulations that were in effect 
                on June 30, 2011, the provisions of the regulations 
                that were in effect on June 30, 2011, and were so 
                amended are restored and revived as if the regulations 
                repealed by such subparagraph had not taken effect; and
                  (B) by paragraph (1)(C) amended regulations that were 
                in effect on October 31, 2016, the provisions of the 
                regulations that were in effect on October 31, 2016, 
                and were so amended are restored and revived as if the 
                regulations repealed by paragraph (1)(C) had not taken 
                effect.
  (b) Certain Regulations and Other Actions Prohibited.--
          (1) Gainful employment.--The Secretary of Education shall 
        not, on or after the date of enactment of this Act, promulgate 
        or enforce any regulation or rule with respect to the 
        definition or application of the term ``gainful employment'' 
        for any purpose under the Higher Education Act of 1965 (20 
        U.S.C. 1001 et seq.).
          (2) Credit hour.--The Secretary of Education shall not, on or 
        after the date of enactment of this Act, promulgate or enforce 
        any regulation or rule with respect to the definition of the 
        term ``credit hour'' for any purpose under the Higher Education 
        Act of 1965 (20 U.S.C. 1001 et seq.).
          (3) Postsecondary institution ratings system.--The Secretary 
        of Education shall not carry out, develop, refine, promulgate, 
        publish, implement, administer, or enforce a postsecondary 
        institution ratings system or any other performance system to 
        rate institutions of higher education (as defined in section 
        101 or 102 of the Higher Education Act of 1965 (20 U.S.C. 1001; 
        1002)).

                 PART B--ADDITIONAL GENERAL PROVISIONS

SEC. 111. FREE SPEECH PROTECTIONS.

  Part B of title I (20 U.S.C. 1011 et seq.) is amended by 
redesignating section 112 as section 112A and section 112A, as so 
redesignated, is amended--
          (1) in subsection (a)--
                  (A) by redesignating paragraph (2) as paragraph (4); 
                and
                  (B) by inserting after paragraph (1) the following:
  ``(2) It is the sense of Congress that--
          ``(A) every individual should be free to profess, and to 
        maintain, the opinion of such individual in matters of 
        religion, and that professing or maintaining such opinion 
        should in no way diminish, enlarge, or affect the civil 
        liberties or rights of such individual on the campus of an 
        institution of higher education; and
          ``(B) no public institution of higher education directly or 
        indirectly receiving financial assistance under this Act should 
        limit religious expression, free expression, or any other 
        rights provided under the First Amendment.
  ``(3) It is the sense of Congress that--
          ``(A) free speech zones and restrictive speech codes are 
        inherently at odds with the freedom of speech guaranteed by the 
        First Amendment of the Constitution; and
          ``(B) no public institution of higher education directly or 
        indirectly receiving financial assistance under this Act should 
        restrict the speech of such institution's students through such 
        zones or codes.'';
          (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively;
          (3) by inserting after subsection (a), the following:
  ``(b) Disclosure of Free Speech Policies.--
          ``(1) In general.--No institution of higher education shall 
        be eligible to receive funds under this Act, including 
        participation in any program under title IV, unless the 
        institution certifies to the Secretary that the institution has 
        annually disclosed to current and prospective students any 
        policies held by the institutions related to protected speech 
        on campus, including policies limiting where and when such 
        speech may occur, and the right to submit a complaint under 
        paragraph (2) if the institution is not in compliance with any 
        policy disclosed under this paragraph or is enforcing a policy 
        related to protected speech that has not been disclosed by the 
        institution under this paragraph.
          ``(2) Complaint on speech policies.--
                  ``(A) Designation of an employee.--The Secretary 
                shall designate an employee in the Office of 
                Postsecondary Education of the Department to receive 
                complaints from students or student organizations that 
                believe an institution is not in compliance with any 
                policy disclosed under paragraph (1) or is enforcing a 
                policy related to protected speech that has not been 
                disclosed by the institution under such paragraph.
                  ``(B) Complaint.--A complaint submitted under 
                subparagraph (A)--
                          ``(i) shall--
                                  ``(I) include the provision of the 
                                institution's policy the complainant 
                                believes the institution is not in 
                                compliance with or how the institution 
                                is enforcing a policy related to 
                                protected speech that has not been 
                                disclosed under paragraph (1); and
                                  ``(II) be filed not later than 7 days 
                                of the complainant's denial of a right 
                                to speak; and
                          ``(ii) may affirmatively assert that the 
                        violation described in clause (i)(I) is a 
                        violation of the complainant's constitutional 
                        rights.
                  ``(C) Secretarial requirements.--
                          ``(i) Review.--
                                  ``(I) In general.--Not later than 7 
                                days after the receipt of the 
                                complaint, the Secretary shall review 
                                the complaint and request a response to 
                                the complaint from the institution.
                                  ``(II) Response of secretary.--Not 
                                later than 10 days after the receipt of 
                                the complaint, the Secretary shall make 
                                a decision with respect to such 
                                complaint, without regard to whether 
                                the institution provides a response to 
                                such complaint.
                          ``(ii) Determination that institution failed 
                        to comply.--If, upon the review required under 
                        clause (i), the Secretary determines that the 
                        institution is not in compliance with the 
                        institution's policy disclosed under paragraph 
                        (1), or the institution is enforcing a policy 
                        that was not disclosed under paragraph (1), the 
                        Secretary shall--
                                  ``(I)(aa) if the Secretary determines 
                                that the institution was not in 
                                compliance with a disclosed policy, 
                                require the institution to comply with 
                                the disclosed policy and provide the 
                                complainant an opportunity to speak as 
                                any other speaker would be permitted to 
                                speak; or
                                  ``(bb) if the Secretary determines 
                                that the institution was enforcing an 
                                undisclosed policy, require the 
                                institution to immediately comply with 
                                disclosure requirement under paragraph 
                                (1) and to allow the complainant to 
                                speak as if such policy were not held 
                                by the institution; and
                                  ``(II) require the institution to 
                                post the decision of the Secretary on 
                                the website of the institution, except 
                                in the case in which the complainant 
                                requests that the decision not be 
                                shared.
                          ``(iii) Referral.--If the Secretary believes 
                        the denial of the right to speak may be a 
                        violation of the Constitutional rights of the 
                        complainant, the Secretary shall refer the 
                        complaint to the Department of Justice.
                  ``(D) Limitations.--
                          ``(i) Institution's religious beliefs or 
                        mission.--The Secretary shall defer to the 
                        institution's religious beliefs or mission that 
                        the institution describes in its response to 
                        the complaint as applicable to the complaint.
                          ``(ii) Prohibition on regulations or 
                        guidance.--The Secretary--
                                  ``(I) shall not promulgate any 
                                regulations with respect to this 
                                paragraph; and
                                  ``(II) may only issue guidance that 
                                explains or clarifies the process for 
                                filing or reviewing a complaint under 
                                this paragraph.''; and
          (4) in subsection (d), as redesignated by paragraph (2)--
                  (A) in paragraph (2), by inserting ``(including such 
                joining, assembling, and residing for religious 
                purposes)'' after ``Constitution''; and
                  (B) in paragraph (3), by inserting ``(including 
                speech relating to religion)'' after ``Constitution''.

SEC. 112. SENSE OF CONGRESS ON INCLUSION AND RESPECT.

  Part B of title I (20 U.S.C. 1011 et seq.) is further amended by 
inserting after section 112A (as redesignated by section 111) the 
following:

``SEC. 112B. SENSE OF CONGRESS ON INCLUSION AND RESPECT.

  ``It is the sense of Congress that--
          ``(1) harassment and violence targeted at students because of 
        their race, color, religion, sex, or national origin as listed 
        in section 703 of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e-2) should be condemned;
          ``(2) institutions of higher education and law-enforcement 
        personnel should be commended for their efforts to combat 
        violence, extremism, and racism, and to protect all members of 
        the community from harm; and
          ``(3) Congress is committed to supporting institutions of 
        higher education in creating safe, inclusive, and respectful 
        learning environments that fully respect community members from 
        all backgrounds.''.

SEC. 113. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND 
                    INTEGRITY.

  Section 114 (20 U.S.C. 1011c) is amended--
          (1) by striking ``section 102'' each place it appears and 
        inserting ``section 101'';
          (2) in subsection (b)--
                  (A) in paragraph (3), by striking ``Except as 
                provided in paragraph (5), the term'' and inserting 
                ``The term'';
                  (B) by striking paragraph (5) and inserting the 
                following:
          ``(5) Secretarial appointees.--The Secretary may remove any 
        member who was appointed under paragraph (1)(A) by a 
        predecessor of the Secretary and may fill the vacancy created 
        by such removal in accordance with paragraphs (3) and (4).''.
          (3) in subsection (c)--
                  (A) in paragraph (2), by adding ``and'' at the end;
                  (B) in paragraph (3), by striking the semicolon at 
                the end and inserting a period; and
                  (C) by striking paragraphs (4) through (6);
          (4) in subsection (e)(2)(D) by striking ``, including any 
        additional functions established by the Secretary through 
        regulation''; and
          (5) in subsection (f), by striking ``September 30, 2017'' and 
        inserting ``September 30, 2024''.

SEC. 114. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

  (a) Repeals.--The following provisions of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.) are repealed:
          (1) Section 117 (20 U.S.C. 1011f).
          (2) Section 119 (20 U.S.C. 1011h).
  (b) Conforming Amendments.--
          (1) Section 118 is redesignated as section 117.
          (2) Sections 120, 121, 122, and 123 are redesignated as 
        sections 118, 119, 120, and 121, respectively.
          (3) Section 485(f)(1)(H) (20 U.S.C. 1092(f)(1)(H)) is amended 
        by striking ``section 120'' and inserting ``section 118''.

SEC. 115. PROGRAMS ON DRUG AND ALCOHOL ABUSE PREVENTION.

  Section 118 (as so redesignated) is amended to read as follows:

``SEC. 118. OPIOID MISUSE AND SUBSTANCE ABUSE PREVENTION PROGRAM.

  ``(a) Required Programs.--Each institution of higher education 
participating in any program under this Act shall adopt and implement 
an evidence-based program to prevent substance abuse by students and 
employees that, at a minimum, includes the annual distribution to each 
student and employee of--
          ``(1) institutional standards of conduct and sanctions that 
        clearly prohibit and address the unlawful possession, use, or 
        distribution of illicit drugs and alcohol by students and 
        employees; and
          ``(2) the description of any drug or alcohol counseling, 
        treatment, rehabilitation, or re-entry programs that are 
        available to students or employees, including information on 
        opioid abuse prevention, harm reduction, and recovery.
  ``(b) Information Availability.--Each institution of higher education 
described in subsection (a) shall, upon request, make available to the 
Secretary and to the public a copy of the institutional standards 
described under subsection (a)(1) and information regarding any 
programs described in subsection (a)(2).
  ``(c) Best Practices.--The Secretary, in consultation with the 
Secretary of Health and Human Services and outside experts in the field 
of substance use prevention and recovery support, shall--
          ``(1) share best practices for institutions of higher 
        education to--
                  ``(A) address and prevent substance use; and
                  ``(B) support students in substance use recovery; and
          ``(2) if requested by an institution of higher education, 
        provide technical assistance to such institution to implement a 
        practice under paragraph (1).''.

SEC. 116. CAMPUS ACCESS FOR RELIGIOUS GROUPS.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 115 of this part) is amended by adding at the end the 
following:

``SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS.

  ``None of the funds made available under this Act may be provided to 
any public institution of higher education that denies to a religious 
student organization any right, benefit, or privilege that is generally 
afforded to other student organizations at the institution (including 
full access to the facilities of the institution and official 
recognition of the organization by the institution) because of the 
religious beliefs, practices, speech, leadership and membership 
standards, or standards of conduct of the religious student 
organization.''.

SEC. 117. SECRETARIAL PROHIBITIONS.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 116 of this part) is amended by adding at the end the 
following:

``SEC. 123. SECRETARIAL PROHIBITIONS.

  ``(a) In General.--Nothing in this Act shall be construed to 
authorize or permit the Secretary to promulgate any rule or regulation 
that exceeds the scope of the explicit authority granted to the 
Secretary under this Act.
  ``(b) Definitions.--The Secretary shall not define any term that is 
used in this Act in a manner that is inconsistent with the scope of 
this Act, including through regulation or guidance.
  ``(c) Requirements.--The Secretary shall not impose, on an 
institution or State as a condition of participation in any program 
under this Act, any requirement that exceeds the scope of the 
requirements explicitly set forth in this Act for such program.''.

SEC. 118. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 117 of this part) is further amended by adding at the end 
the following:

``SEC. 124. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.

  ``(a) In General.--Notwithstanding any other provision of law, no 
government entity shall take any adverse action against an institution 
of higher education that receives funding under title IV, if such 
adverse action--
          ``(1)(A) is being taken by a government entity that--
                  ``(i) is a department, agency, or instrumentality of 
                the Federal Government; or
                  ``(ii) receives Federal funds; or
          ``(B) would affect commerce with foreign nations, among the 
        several States, or with Indian Tribes; and
          ``(2) has the effect of prohibiting or penalizing the 
        institution for acts or omissions by the institution that are 
        in furtherance of its religious mission or are related to the 
        religious affiliation of the institution.
  ``(b) Assertion by Institution.--An actual or threatened violation of 
subsection (a) may be asserted by an institution of higher education 
that receives funding under title IV as a claim or defense in a 
proceeding before any court. The court shall grant any appropriate 
equitable relief, including injunctive or declaratory relief.
  ``(c) Rule of Construction.--Nothing in this section shall be 
construed to alter or amend--
          ``(1) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000d et seq.);
          ``(2) section 182 of the Elementary and Secondary Education 
        Amendments Act of 1966 (42 U.S.C. 2000d-5); or
          ``(3) section 2 of the Elementary and Secondary Education 
        Amendments Act of 1969 (42 U.S.C. 2000d-6)
  ``(d) Definitions.--In this section:
          ``(1) Adverse action.--The term `adverse action' includes, 
        with respect to an institution of higher education or the past, 
        current, or prospective students of such institution--
                  ``(A) the denial or threat of denial of funding, 
                including grants, scholarships, or loans;
                  ``(B) the denial or threat of denial of access to 
                facilities or programs;
                  ``(C) the withholding or threat of withholding of any 
                licenses, permits, certifications, accreditations, 
                contracts, cooperative agreements, grants, guarantees, 
                tax-exempt status, or exemptions; or
                  ``(D) any other penalty or denial, or threat of such 
                other penalty or denial, of an otherwise available 
                benefit.
          ``(2) Government entity.--The term `government entity' 
        means--
                  ``(A) any department, agency, or instrumentality of 
                the Federal Government;
                  ``(B) a State or political subdivision of a State, or 
                any agency or instrumentality thereof; and
                  ``(C) any interstate or other inter-governmental 
                entity.
          ``(3) Institution of higher education.--The term `institution 
        of higher education' has the meaning given the term in section 
        101 or 102.
          ``(4) Religious mission.--The term `religious mission' 
        includes an institution of higher education's religious tenets, 
        beliefs, or teachings, and any policies or decisions related to 
        such tenets, beliefs, or teachings (including any policies or 
        decisions concerning housing, employment, curriculum, self-
        governance, or student admission, continuing enrollment, or 
        graduation).''.

SEC. 119. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 118 of this part) is further amended by adding at the end 
the following:

``SEC. 125. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.

  ``(a) Non-retaliation Against Single-sex Student Organizations.--An 
institution of higher education that has a policy allowing for the 
official recognition of a single-sex social student organization may 
not--
          ``(1) require or coerce such a recognized organization to 
        admit as a member an individual who does not meet the 
        organization's criteria for single-sex status;
          ``(2) require or coerce such a recognized organization to 
        permit an individual described in paragraph (1) to participate 
        in the activities of the organization;
          ``(3) take any adverse action against a student on the basis 
        of the student's membership in such recognized organization; or
          ``(4) impose any requirement or restriction, including on 
        timing for accepting new members or membership recruitment, on 
        such a recognized organization (or its current or prospective 
        members) based on the organization's single-sex status or its 
        criteria for defining its single-sex status.
  ``(b) Construction.--Nothing in this Act shall be construed--
          ``(1) to create any enforceable right--
                  ``(A) by a local, college, or university student 
                organization against a national student organization; 
                or
                  ``(B) by a national student organization against any 
                local, college, or university student organization;
          ``(2) to require an institution of higher education to have a 
        policy allowing for the official recognition of a single-sex 
        social student organization; or
          ``(3) to prohibit an institution of higher education from 
        taking an adverse action against a member of a single-sex 
        social student organization for reasons other than on the basis 
        of such student's membership in such organization, such as 
        academic or non-academic misconduct.
  ``(c) Adverse Action.--For the purposes of this section, the term 
`adverse action' includes the following:
          ``(1) Expulsion, suspension, probation, censure, 
        condemnation, reprimand, or any other disciplinary, coercive, 
        or adverse action taken by an institution of higher education 
        or administrative unit of such an institution.
          ``(2) An oral or written warning made by an official of an 
        institution of higher education acting in the official's 
        official capacity.
          ``(3) Denying participation in any education program or 
        activity.
          ``(4) Withholding, in whole or in part, any financial 
        assistance (including scholarships and on-campus employment), 
        or denying the opportunity to apply for financial assistance, a 
        scholarship, or on-campus employment.
          ``(5) Denying or restricting access to on-campus housing.
          ``(6) Denying any certification or letter of recommendation 
        that may be required by a student's current or future employer, 
        a government agency, a licensing board, or an educational 
        institution or scholarship program to which the student seeks 
        to apply.
          ``(7) Denying participation in any sports team, club, or 
        other student organization, or denying any leadership position 
        in any sports team, club, or other student organization.''.

SEC. 120. DEPARTMENT STAFF.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 119 of this part) is further amended by adding at the end 
the following:

``SEC. 126. DEPARTMENT STAFF.

  ``The Secretary shall--
          ``(1) not later than 60 days after the date of enactment of 
        the PROSPER Act, identify the number of Department full-time 
        equivalent employees who worked on or administered each 
        education program or project authorized under this Act, as such 
        program or project was in effect on the day before such date, 
        and publish such information on the Department's website;
          ``(2) not later than 60 days after such date, identify the 
        number of full-time equivalent employees who worked on or 
        administered each program or project authorized under this Act, 
        as such program or project was in effect on the day before such 
        date, that has been eliminated or consolidated since such date;
          ``(3) not later than 1 year after such date, reduce the 
        workforce of the Department by the number of full-time 
        equivalent employees the Department identified under paragraph 
        (2); and
          ``(4) not later than 1 year after such date, report to the 
        Congress on--
                  ``(A) the number of full-time equivalent employees 
                associated with each program or project authorized 
                under this Act and administered by the Department;
                  ``(B) the number of full-time equivalent employees 
                who were determined to be associated with eliminated or 
                consolidated programs or projects described in 
                paragraph (2);
                  ``(C) how the Secretary has reduced the number of 
                full-time equivalent employees as described in 
                paragraph (3);
                  ``(D) the average salary of the full-time equivalent 
                employees described in subparagraph (B) whose positions 
                were eliminated; and
                  ``(E) the average salary of the full-time equivalent 
                employees who work on or administer a program or 
                project authorized by the Department under this Act, 
                disaggregated by employee function within each such 
                program or project.''.

SEC. 120A. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.

  Part B of title I (20 U.S.C. 1011 et seq.) (as amended by sections 
111 through 120 of this part) is further amended by adding at the end 
the following:

``SEC. 127. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.

  ``None of the funds made available under this Act may be provided to 
any institution of higher education that has in effect a policy or 
practice that either prohibits, or in effect prevents, the Secretary of 
Homeland Security from gaining access to campuses or access to students 
(who are 17 years of age or older) on campuses, for purposes of 
Department of Homeland Security recruiting in a manner that is at least 
equal in quality and scope to the access to campuses and to students 
that is provided to any other employer.''.

                    PART C--COST OF HIGHER EDUCATION

SEC. 121. COLLEGE DASHBOARD WEBSITE.

  (a) Establishment.--Section 132 (20 U.S.C. 1015a) is amended--
          (1) in subsection (a)--
                  (A) by striking paragraph (1) and inserting the 
                following new paragraph:
          ``(1) College dashboard website.--The term `College Dashboard 
        website' means the College Dashboard website required under 
        subsection (d).''.
                  (B) in paragraph (2), by striking ``first-time,'';
                  (C) in paragraph (3), in the matter preceding 
                subparagraph (A), by striking ``first-time,''; and
                  (D) in paragraph (4), by striking ``first-time,'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by striking ``first-time,''; 
                and
                  (B) in paragraph (2), by striking ``first-time,'';
          (3) by striking subsections (c) through (g), (j), and (l);
          (4) by redesignating subsections (h), (i), and (k) as 
        subsections (c), (d), and (e), respectively; and
          (5) by striking subsection (d) (as so redesignated) and 
        inserting the following new subsection:
  ``(d) Consumer Information.--
          ``(1) Availability of title iv institution information.--The 
        Secretary shall develop and make publicly available a website 
        to be known as the `College Dashboard website' in accordance 
        with this section and prominently display on such website, in 
        simple, understandable, and unbiased terms for the most recent 
        academic year for which satisfactory data are available, the 
        following information with respect to each institution of 
        higher education that participates in a program under title IV:
                  ``(A) A link to the website of the institution.
                  ``(B) An identification of the type of institution as 
                one of the following:
                          ``(i) A four-year public institution of 
                        higher education.
                          ``(ii) A four-year private, nonprofit 
                        institution of higher education.
                          ``(iii) A four-year private, proprietary 
                        institution of higher education.
                          ``(iv) A two-year public institution of 
                        higher education.
                          ``(v) A two-year private, nonprofit 
                        institution of higher education.
                          ``(vi) A two-year private, proprietary 
                        institution of higher education.
                          ``(vii) A less than two-year public 
                        institution of higher education.
                          ``(viii) A less than two-year private, 
                        nonprofit institution of higher education.
                          ``(ix) A less than two-year private, 
                        proprietary institution of higher education.
                  ``(C) The number of students enrolled at the 
                institution--
                          ``(i) as undergraduate students, if 
                        applicable; and
                          ``(ii) as graduate students, if applicable.
                  ``(D) The student-faculty ratio.
                  ``(E) The percentage of degree-seeking or 
                certificate-seeking undergraduate students enrolled at 
                the institution who obtain a degree or certificate 
                within--
                          ``(i) 100 percent of the normal time for 
                        completion of, or graduation from, the program 
                        in which the student is enrolled;
                          ``(ii) 150 percent of the normal time for 
                        completion of, or graduation from, the program 
                        in which the student is enrolled;
                          ``(iii) 200 percent of the normal time for 
                        completion of, or graduation from, the program 
                        in which the student is enrolled; and
                          ``(iv) 300 percent of the normal time for 
                        completion of, or graduation from, the program 
                        in which the student is enrolled, for 
                        institutions at which the highest degree 
                        offered is predominantly an associate's degree.
                  ``(F)(i) The average net price per year for 
                undergraduate students enrolled at the institution who 
                received Federal student financial aid under title IV 
                based on dependency status and an income category 
                selected by the user of the College Dashboard website 
                from a list containing the following income categories:
                          ``(I) $0 to $30,000.
                          ``(II) $30,001 to $48,000.
                          ``(III) $48,001 to $75,000.
                          ``(IV) $75,001 to $110,000.
                          ``(V) $110, 001 to $150,000.
                          ``(VI) Over $150,000.
                  ``(ii) A link to the net price calculator for such 
                institution.
                  ``(G) The percentage of undergraduate and graduate 
                students who obtained a certificate or degree from the 
                institution who borrowed Federal student loans--
                          ``(i) set forth separately for each 
                        educational program offered by the institution; 
                        and
                          ``(ii) made available in a format that allows 
                        a user of the College Dashboard website to view 
                        such percentage by selecting from a list of 
                        such educational programs.
                  ``(H) The average Federal student loan debt incurred 
                by a student who obtained a certificate or degree in an 
                educational program from the institution and who 
                borrowed Federal student loans in the course of 
                obtaining such certificate or degree--
                          ``(i) set forth separately for each 
                        educational program offered by the institution; 
                        and
                          ``(ii) made available in a format that allows 
                        a user of the College Dashboard website to view 
                        such student loan debt information by selecting 
                        from a list of such educational programs.
                  ``(I) The median earnings of students who obtained a 
                certificate or degree in an educational program from 
                the institution and who received Federal student 
                financial aid under title IV in the course of obtaining 
                such certificate or degree--
                          ``(i) in the fifth and tenth years following 
                        the year in which the students obtained such 
                        certificate or degree;
                          ``(ii) set forth separately by educational 
                        program; and
                          ``(iii) made available in a format that 
                        allows a user of the College Dashboard website 
                        to view such median earnings information by 
                        selecting from a list of such educational 
                        programs.
                  ``(J) A link to the webpage of the institution 
                containing campus safety data with respect to such 
                institution.
          ``(2) Additional information.--The Secretary shall publish on 
        websites that are linked to through the College Dashboard 
        website, for the most recent academic year for which 
        satisfactory data is available, the following information with 
        respect to each institution of higher education that 
        participates in a program under title IV:
                  ``(A) Enrollment.--The following enrollment 
                information:
                          ``(i) The percentages of male and female 
                        undergraduate students enrolled at the 
                        institution.
                          ``(ii) The percentages of undergraduate 
                        students enrolled at the institution--
                                  ``(I) full-time; and
                                  ``(II) less than full-time.
                          ``(iii) In the case of an institution other 
                        than an institution that provides all courses 
                        and programs through online education, of the 
                        undergraduate students enrolled at the 
                        institution--
                                  ``(I) the percentage of such students 
                                who are residents of the State in which 
                                the institution is located;
                                  ``(II) the percentage of such 
                                students who are not residents of such 
                                State; and
                                  ``(III) the percentage of such 
                                students who are international 
                                students.
                          ``(iv) The percentages of undergraduate 
                        students enrolled at the institution, 
                        disaggregated by--
                                  ``(I) race and ethnic background;
                                  ``(II) classification as a student 
                                with a disability;
                                  ``(III) recipients of a Federal Pell 
                                Grant;
                                  ``(IV) recipients of assistance under 
                                a tuition assistance program conducted 
                                by the Department of Defense under 
                                section 1784a or 2007 of title 10, 
                                United States Code, or other 
                                authorities available to the Department 
                                of Defense or veterans' education 
                                benefits (as defined in section 480); 
                                and
                                  ``(V) recipients of a Federal student 
                                loan.
                  ``(B) Completion.--The information required under 
                paragraph (1)(E), disaggregated by--
                          ``(i) recipients of a Federal Pell Grant;
                          ``(ii) race and ethnic background;
                          ``(iii) classification as a student with a 
                        disability;
                          ``(iv) recipients of assistance under a 
                        tuition assistance program conducted by the 
                        Department of Defense under section 1784a or 
                        2007 of title 10, United States Code, or other 
                        authorities available to the Department of 
                        Defense or veterans' education benefits (as 
                        defined in section 480); and
                          ``(v) recipients of a Federal student loan.
                  ``(C) Costs.--The following cost information:
                          ``(i) The cost of attendance for full-time 
                        undergraduate students enrolled in the 
                        institution who live on campus.
                          ``(ii) The cost of attendance for full-time 
                        undergraduate students enrolled in the 
                        institution who live off campus.
                          ``(iii) The cost of tuition and fees for 
                        full-time undergraduate students enrolled in 
                        the institution.
                          ``(iv) The cost of tuition and fees per 
                        credit hour or credit hour equivalency for 
                        undergraduate students enrolled in the 
                        institution less than full time.
                          ``(v) In the case of a public institution of 
                        higher education (other than an institution 
                        described in clause (vi)) and notwithstanding 
                        subsection (b)(1), the costs described in 
                        clauses (i) and (ii) for--
                                  ``(I) full-time students enrolled in 
                                the institution who are residents of 
                                the State in which the institution is 
                                located; and
                                  ``(II) full-time students enrolled in 
                                the institution who are not residents 
                                of such State.
                          ``(vi) In the case of a public institution of 
                        higher education that offers different tuition 
                        rates for students who are residents of a 
                        geographic subdivision smaller than a State and 
                        students not located in such geographic 
                        subdivision and notwithstanding subsection 
                        (b)(1), the costs described in clauses (i) and 
                        (ii) for--
                                  ``(I) full-time students enrolled at 
                                the institution who are residents of 
                                such geographic subdivision;
                                  ``(II) full-time students enrolled at 
                                the institution who are residents of 
                                the State in which the institution is 
                                located but not residents of such 
                                geographic subdivision; and
                                  ``(III) full-time students enrolled 
                                at the institution who are not 
                                residents of such State.
                  ``(D) Financial aid.--The following information with 
                respect to financial aid:
                          ``(i) The average annual grant amount 
                        (including Federal, State, and institutional 
                        aid) awarded to an undergraduate student 
                        enrolled at the institution who receives grant 
                        aid, and the percentage of undergraduate 
                        students receiving such aid.
                          ``(ii) The percentage of undergraduate 
                        students enrolled at the institution receiving 
                        Federal, State, and institutional grants, 
                        student loans, and any other type of student 
                        financial assistance known by the institution, 
                        provided publicly or through the institution, 
                        such as Federal work-study funds.
                          ``(iii) The loan repayment rate (as defined 
                        in section 481B) for each educational program 
                        at such institution.
          ``(3) Other data matters.--
                  ``(A) Completion data.--The Commissioner of Education 
                Statistics shall ensure that the information required 
                under paragraph (1)(E) includes information with 
                respect to all students at an institution, in a manner 
                that accurately reflects the actual length of the 
                program, including students other than first-time, 
                full-time students and students who transfer to another 
                institution, in a manner that the Commissioner 
                considers appropriate.
                  ``(B) Adjustment of income categories.--The Secretary 
                may annually adjust the range of each of the income 
                categories described in paragraph (1)(F) to account for 
                a change in the Consumer Price Index for All Urban 
                Consumers as determined by the Bureau of Labor 
                Statistics if the Secretary determines an adjustment is 
                necessary.
          ``(4) Institutional comparison.--The Secretary shall include 
        on the College Dashboard website a method for users to easily 
        compare the information required under paragraphs (1) and (2) 
        between institutions.
          ``(5) Updates.--
                  ``(A) Data.--The Secretary shall update the College 
                Dashboard website not less than annually.
                  ``(B) Technology and format.--The Secretary shall 
                regularly assess the format and technology of the 
                College Dashboard website and make any changes or 
                updates that the Secretary considers appropriate.
          ``(6) Consumer testing.--
                  ``(A) In general.--In developing and maintaining the 
                College Dashboard website, the Secretary, in 
                consultation with appropriate departments and agencies 
                of the Federal Government, shall conduct consumer 
                testing with appropriate persons, including current and 
                prospective college students, family members of such 
                students, institutions of higher education, and 
                experts, to ensure that the College Dashboard website 
                is usable and easily understandable and provides useful 
                and relevant information to students and families.
                  ``(B) Recommendations for changes.--The Secretary 
                shall submit to the authorizing committees any 
                recommendations that the Secretary considers 
                appropriate for changing the information required to be 
                provided on the College Dashboard website under 
                paragraphs (1) and (2) based on the results of the 
                consumer testing conducted under subparagraph (A).
          ``(7) Provision of appropriate links to prospective students 
        after submission of FAFSA.--The Secretary shall provide to each 
        student who submits a Free Application for Federal Student Aid 
        described in section 483 a link to the webpage of the College 
        Dashboard website that contains the information required under 
        paragraph (1) for each institution of higher education such 
        student includes on such Application.
          ``(8) Interagency coordination.--The Secretary, in 
        consultation with each appropriate head of a department or 
        agency of the Federal Government, shall ensure to the greatest 
        extent practicable that any information related to higher 
        education that is published by such department or agency is 
        consistent with the information published on the College 
        Dashboard website.
          ``(9) Data collection.--The Commissioner for Education 
        Statistics shall continue to update and improve the Integrated 
        Postsecondary Education Data System, including by reducing 
        institutional reporting burden and improving the timeliness of 
        the data collected.
          ``(10) Data privacy.--The Secretary shall ensure any 
        information made available under this section is made available 
        in accordance with section 444 of the General Education 
        Provisions Act (commonly known as the `Family Educational 
        Rights and Privacy Act of 1974').''.
  (b) Conforming Amendments.--The Higher Education Act of 1965 (20 
U.S.C. 1001 et seq.), as amended by subsection (a) of this section, is 
further amended, by striking ``College Navigator'' each place it 
appears and inserting ``College Dashboard''.
  (c) References.--Any reference in any law (other than this Act), 
regulation, document, record, or other paper of the United States to 
the College Navigator website shall be considered to be a reference to 
the College Dashboard website.
  (d) Development.--The Secretary of Education shall develop and 
publish the College Dashboard website required under section 132 (20 
U.S.C. 1015a), as amended by this section, not later than one year 
after the date of the enactment of this Act.
  (e) College Navigator Website Maintenance.--The Secretary shall 
maintain the College Navigator website required under section 132 (20 
U.S.C. 1015a), as in effect the day before the date of the enactment of 
this Act, in the manner required under the Higher Education Act of 
1965, as in effect on such day, until the College Dashboard website 
referred to in subsection (d) is complete and publicly available on the 
Internet.

SEC. 122. NET PRICE CALCULATORS.

  Subsection (c) of section 132 (20 U.S.C. 1015a), as so redesignated 
by section 121(a)(4) of this Act, is amended--
          (1) by redesignating paragraph (4) as paragraph (6); and
          (2) by inserting after paragraph (3) the following new 
        paragraphs:
          ``(4) Minimum requirements for net price calculators.--Not 
        later than 1 year after the date of the enactment of the 
        PROSPER Act, a net price calculator for an institution of 
        higher education shall meet the following requirements:
                  ``(A) The link for the calculator shall--
                          ``(i) be clearly labeled as a net price 
                        calculator and prominently, clearly, and 
                        conspicuously posted in locations on the 
                        website of such institution where information 
                        on costs and aid is provided and any other 
                        location that the institution considers 
                        appropriate; and
                          ``(ii) match in size and font to the other 
                        prominent links on the webpage where the link 
                        for the calculator is displayed.
                  ``(B) The webpage displaying the results for the 
                calculator shall specify at least the following 
                information:
                          ``(i) The net price (as calculated under 
                        subsection (a)(3)) for such institution, which 
                        shall be the most visually prominent figure on 
                        the results screen.
                          ``(ii) Cost of attendance, including--
                                  ``(I) tuition and fees;
                                  ``(II) average annual cost of room 
                                and board for the institution for a 
                                full-time undergraduate student 
                                enrolled in the institution;
                                  ``(III) average annual cost of books 
                                and supplies for a full-time 
                                undergraduate student enrolled in the 
                                institution; and
                                  ``(IV) estimated cost of other 
                                expenses (including personal expenses 
                                and transportation) for a full-time 
                                undergraduate student enrolled in the 
                                institution.
                          ``(iii) Estimated total need-based grant aid 
                        and merit-based grant aid from Federal, State, 
                        and institutional sources that may be available 
                        to a full-time undergraduate student.
                          ``(iv) Percentage of the full-time 
                        undergraduate students enrolled in the 
                        institution that received any type of grant aid 
                        described in clause (iii).
                          ``(v) The disclaimer described in paragraph 
                        (6).
                          ``(vi) In the case of a calculator that--
                                  ``(I) includes questions to estimate 
                                the eligibility of a student or 
                                prospective student for veterans' 
                                education benefits (as defined in 
                                section 480) or educational benefits 
                                for active duty service members, such 
                                benefits are displayed on the results 
                                screen in a manner that clearly 
                                distinguishes such benefits from the 
                                grant aid described in clause (iii); or
                                  ``(II) does not include questions to 
                                estimate eligibility for the benefits 
                                described in subclause (I), the results 
                                screen indicates that certain students 
                                (or prospective students) may qualify 
                                for such benefits and includes a link 
                                to information about such benefits.
                  ``(C) The institution shall populate the calculator 
                with data from an academic year that is not more than 2 
                academic years prior to the most recent academic year.
          ``(5) Prohibition on use of data collected by the net price 
        calculator.--A net price calculator for an institution of 
        higher education shall--
                  ``(A) clearly indicate which questions are required 
                to be completed for an estimate of the net price from 
                the calculator;
                  ``(B) in the case of a calculator that requests 
                contact information from users, clearly mark such 
                requests as optional and provide for an estimate of the 
                net price from the calculator without requiring users 
                to enter such information; and
                  ``(C) prohibit any personally identifiable 
                information provided by users from being sold or made 
                available to third parties.''.

SEC. 123. TEXT BOOK INFORMATION.

   Section 133(b)(5) (20 U.S.C. 1015b(b)(5)) is amended by striking 
``section 102'' and inserting ``section 101 or 102''.

SEC. 124. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF 
                    IMPROVED DATA COLLECTION.

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

``SEC. 138. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF 
                    IMPROVED DATA COLLECTION.

  ``(a) In General.--Not later than 2 years after the date of the 
enactment of the PROSPER Act, the Secretary shall, in order to help 
improve the information available to students and families and to 
eliminate significant and burdensome data collection requirements 
placed on institutions under this Act--
          ``(1) complete a review of all data reporting requirements on 
        institutions under this Act;
          ``(2) determine which requirements are duplicative or no 
        longer necessary to provide meaningful information for 
        compliance, accountability, or transparency in decision making; 
        and
          ``(3) examine the best way to collect data that includes all 
        students from institutions that will--
                  ``(A) eliminate or reduce the burden and duplication 
                of data reporting; and
                  ``(B) capture the data necessary to ensure 
                compliance, accountability, and transparency in 
                decision making which shall include, at a minimum--
                          ``(i) enrollment;
                          ``(ii) retention;
                          ``(iii) transfer;
                          ``(iv) completion; and
                          ``(v) post-collegiate earnings; and
          ``(4) implement the changes necessary to improve the data 
        reporting process for institutions, and submit a report to the 
        authorizing committees on any legislative changes necessary to 
        make such improvements.
  ``(b) Consultation.--In conducting the review under subsection 
(a)(1), the Secretary shall consult with--
          ``(1) all applicable offices within the Department to ensure 
        the review captures all data reporting requirements under this 
        Act; and
          ``(2) relevant stakeholders, including students, parents, 
        institutions of higher education, and privacy experts.
  ``(c) Data Collection and Reporting.--In examining the best way to 
collect data under subsection (a)(3), the Secretary shall explore the 
feasibility of working with the National Student Clearinghouse to 
establish a third-party method to collect and produce institution and 
program-level analysis of the data determined necessary to report, and 
how such data reported to the clearinghouse could be secured, while 
considering the following:
          ``(1) Whether data reported to the clearinghouse can 
        accurately reflect institutional and program-level enrollment, 
        retention, transfer, and completion rates.
          ``(2) How much duplication of reporting can be eliminated and 
        if such reporting can replace the reporting to the Integrated 
        Postsecondary Education Data System (IPEDS), including whether 
        the data quality will be maintained or improved from the 
        current data provided to the Department through IPEDS.
          ``(3) Whether such reporting to the clearinghouse can protect 
        the confidentiality of the reported data, while providing more 
        accurate institutional performance measures.
          ``(4) Whether such reporting can be made compatible with 
        systems that include post-graduation outcomes including 
        employment and earnings data.
          ``(5) Whether the use of the clearinghouse for such data 
        reporting will change the current interaction between 
        institutions and the clearinghouse.
          ``(6) Whether the clearinghouse can meet the requirements of 
        such reporting without transferring any disaggregated data that 
        would be personally identifiable to the Department of 
        Education.
          ``(7) Whether the clearinghouse can ensure the Department of 
        Education would never have access to any health data, student 
        discipline records or data, elementary and secondary education 
        data, or information relating to citizenship or national origin 
        status, course grades, individual postsecondary entrance 
        examination results, political affiliation, or religion, as a 
        result of producing information for program level analysis of 
        the data received from institutions of higher education.
          ``(8) Whether the clearinghouse can provide the analysis 
        under this subsection without maintaining or transferring, 
        publishing, or submitting any data containing the information 
        described in paragraph (7) to any entity, including any Federal 
        or State agency.
  ``(d) Interim Report.--Not later than 1 year after the date of the 
enactment of the PROSPER Act, the Secretary shall submit to the 
authorizing committees a report on the Secretary's progress in carrying 
out this section.
  ``(e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the development of a nationwide database of 
personally identifiable information on individuals involved in studies 
or other collections of data under this Act.''.

  PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL 
                               ASSISTANCE

SEC. 131. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL 
                    STUDENT FINANCIAL ASSISTANCE.

  Section 141 (20 U.S.C. 1018) is amended--
          (1) in subsection (a)(2)--
                  (A) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (H) and (I), respectively; and
                  (B) by inserting after subparagraph (E) the 
                following:
                  ``(F) to maximize transparency in the operation of 
                Federal student financial assistance programs;
                  ``(G) to maximize stakeholder engagement in the 
                operation of and accountability for such programs;'';
          (2) in subsection (b)--
                  (A) in paragraph (1)(C)--
                          (i) in clause (i), by striking ``and'' at the 
                        end;
                          (ii) in clause (ii), by striking the period 
                        at the end and inserting ``; and''; and
                          (iii) by adding at the end the following:
                          ``(iii) acquiring senior managers and other 
                        personnel with demonstrated management ability 
                        and expertise in consumer lending.'';
                  (B) in paragraph (2) by adding at the end the 
                following:
                  ``(C) Collecting input from stakeholders on the 
                operation of all Federal student assistance programs 
                and accountability practices relating to such programs, 
                and ensuring that such input informs operation of the 
                PBO and is provided to the Secretary to inform policy 
                creation related to Federal student financial 
                assistance programs.''; and
                  (C) in paragraph (6)--
                          (i) in subparagraph (A), by striking ``The 
                        Secretary'' and inserting ``Not less frequently 
                        than once annually, the Secretary'';
                          (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                          (iii) by inserting after subparagraph (A) the 
                        following: :
                  ``(B) Report.--On an annual basis, after carrying out 
                the consultation required under subparagraph (A), the 
                Secretary and the Chief Operating Officer shall jointly 
                submit to the authorizing committees a report that 
                includes--
                          ``(i) a summary of the consultation; and
                          ``(ii) a description of any actions taken as 
                        a result of the consultation.''.
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``Each year,'' and 
                                inserting ``Not less frequently than 
                                once every three years,''; and
                                  (II) by striking ``succeeding 5'' and 
                                inserting ``succeeding 3'';
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) Consultation.--
                          ``(i) Plan development.--Beginning not later 
                        than 12 months before issuing each 3-year 
                        performance plan under subparagraph (A), the 
                        Secretary and the Chief Operating Officer shall 
                        consult with students, institutions of higher 
                        education, Congress, lenders, and other 
                        interested parties regarding the development of 
                        the plan. In carrying out such consultation, 
                        the Secretary shall seek public comment 
                        consistent with the requirements of subchapter 
                        II of chapter 5 of title 5, United States Code 
                        (commonly known as the `Administrative 
                        Procedure Act').
                          ``(ii) Revision.--Not later than 90 days 
                        before implementing any revision to the 
                        performance plan described in subparagraph (A), 
                        the Secretary shall consult with students, 
                        institutions of higher education, Congress, 
                        lenders, and other interested parties regarding 
                        such revision.'';
                          (iii) in subparagraph (C)--
                                  (I) in the matter preceding clause 
                                (i), by inserting ``and target dates 
                                upon which such action steps will be 
                                taken and such goals will be achieved'' 
                                after ``achieve such goals'';
                                  (II) by redesignating clause (v) as 
                                clause (vi);
                                  (III) by inserting after clause (iv) 
                                the following:
                          ``(v) Ensuring transparency.--Maximizing the 
                        transparency in the operations of the PBO, 
                        including complying with the data reporting 
                        requirements under section 144.'';
                  (B) in paragraph (2)--
                          (i) by striking ``5-year'' and inserting ``3-
                        year'';
                          (ii) in subparagraph (C), by inserting ``, 
                        including an explanation of the specific steps 
                        the Secretary and the Chief Operating Officer 
                        will take to address any such goals that were 
                        not achieved'' before the period;
                          (iii) in subparagraph (D), by inserting ``, 
                        in the aggregate and per individual'' before 
                        the period;
                          (iv) in subparagraph (E), by striking 
                        ``Recommendations'' and inserting ``Specific 
                        recommendations'';
                          (v) by redesignating subparagraph (F) as 
                        subparagraph (G); and
                          (vi) by inserting after subparagraph (E), the 
                        following:
                  ``(F) A description of the performance evaluation 
                system developed under subsection (d)(6).''.
                  (C) in paragraph (3)--
                          (i) in the matter preceding subparagraph (A), 
                        by striking ``establish appropriate means to'';
                          (ii) in subparagraph (A), by striking ``; 
                        and'' and inserting ``and the PBO;'';
                          (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``and the PBO; 
                        and''; and
                          (iv) by adding at the end the following:
                  ``(C) through a nationally-representative survey, 
                that at a minimum shall evaluate the degree of 
                satisfaction with the delivery system and the PBO.'';
          (4) in subsection (d)--
                  (A) in paragraph (2), by striking ``The Secretary may 
                reappoint'' and inserting ``Except as provided in 
                paragraph (4)(C),''
                  (B) in paragraph (4)--
                          (i) in subparagraph (A)--
                                  (I) by inserting ``specific,'' after 
                                ``set forth''; and
                                  (II) by inserting ``and metrics used 
                                to measure progress toward such goals'' 
                                before the period;
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) Transmittal and public availability.--The 
                Secretary shall--
                          ``(i) transmit to the authorizing committees 
                        the final version of, and any subsequent 
                        revisions to, the agreement entered into under 
                        subparagraph (A); and
                          ``(ii) before the expiration of the period of 
                        5 business days beginning after the date on 
                        which the agreement is transmitted under clause 
                        (i), make such agreement publicly available on 
                        a publicly accessible website of the Department 
                        of Education.''.
                          (iii) by adding at the end the following:
                  ``(C) Loss of eligibility.--If the agreement under 
                subparagraph (A) is not made publicly available before 
                the expiration of the period described in subparagraph 
                (B)(ii), the Chief Operating Officer shall not be 
                eligible for reappointment under paragraph (2).''; and
                  (C) in paragraph (5), by amending subparagraph (B) to 
                read as follows:
                  ``(B) Bonus.--In addition, the Chief Operating 
                Officer may receive a bonus in the following amounts:
                          ``(i) For a period covered by a performance 
                        agreement entered into under paragraph (4) 
                        before the date of the enactment of the PROSPER 
                        Act, an amount that does not exceed 50 percent 
                        of the annual rate basic pay of the Chief 
                        Operating Officer, based upon the Secretary's 
                        evaluation of the Chief Operating Officer's 
                        performance in relation to the goals set forth 
                        in the performance agreement.
                          ``(ii) For a period covered by a performance 
                        agreement entered into under paragraph (4) on 
                        or after the date of the enactment of the 
                        PROSPER Act, an amount that does not exceed 40 
                        percent of the annual rate basic pay of the 
                        Chief Operating Officer, based upon the 
                        Secretary's evaluation of the Chief Operating 
                        Officer's performance in relation to the goals 
                        set forth in the performance agreement.''.
                  (D) by adding at the end the following:
          ``(6) Performance evaluation system.--The Secretary shall 
        develop a system to evaluate the performance of the Chief 
        Operating Officer and any senior managers appointed by such 
        Officer under subsection (e). Such system shall--
                  ``(A) take into account the extent to which each 
                individual attains the specific, measurable 
                organizational and individual goals set forth in the 
                performance agreement described in paragraph (4)(A) and 
                subsection (e)(2) (as the case may be); and
                  ``(B) evaluate each individual using a rating system 
                that accounts for the full spectrum of performance 
                levels, from the failure of an individual to meet the 
                goals described in clause (i) to an individual's 
                success in meeting or exceeding such goals.'';
          (5) in subsection (e)--
                  (A) in paragraph (2), by striking ``organization and 
                individual goals'' and inserting ``specific, measurable 
                organization and individual goals and the metrics used 
                to measure progress toward such goals'';
                  (B) in paragraph (3), by amending subparagraph (B) to 
                read as follows:
                  ``(B) Bonus.--In addition, a senior manager may 
                receive a bonus in the following amounts:
                          ``(i) For a period covered by a performance 
                        agreement entered into under paragraph (2) 
                        before the date of the enactment of the PROSPER 
                        Act, an amount such that the manager's total 
                        annual compensation does not exceed 125 percent 
                        of the maximum rate of basic pay for the Senior 
                        Executive Service, including any applicable 
                        locality-based comparability payment, based 
                        upon the Chief Operating Officer's evaluation 
                        of the manager's performance in relation to the 
                        goals set forth in the performance agreement.
                          ``(ii) For a period covered by a performance 
                        agreement entered into under paragraph (2) on 
                        or after the date of the enactment of the 
                        PROSPER Act, an amount such that the manager's 
                        total annual compensation does not exceed 120 
                        percent of the maximum rate of basic pay for 
                        the Senior Executive Service, including any 
                        applicable locality-based comparability 
                        payment, based upon the Chief Operating 
                        Officer's evaluation of the manager's 
                        performance in relation to the goals set forth 
                        in the performance agreement.''.
          (6) by redesignating subsections (f), (g), (h), and (i) as 
        subsections (g), (h), (i), (j); and
          (7) by inserting after subsection (e) the following:
  ``(f) Advisory Board.--
          ``(1) Establishment and purpose.--Not later than one year 
        after the date of the enactment of the PROSPER Act, the 
        Secretary shall establish an Advisory Board (referred to in 
        this subsection as the `Board') for the PBO. The purpose of 
        such Board shall be to conduct oversight over the PBO and the 
        Chief Operating Officer and senior managers described under 
        subsection (e) to ensure that the PBO is meeting the purposes 
        described in this section and the goals in the performance plan 
        described under such section.
          ``(2) Membership.--
                  ``(A) Board members.--The Board shall consist of 7 
                members, one of whom shall be the Secretary.
                  ``(B) Chairman.--A Chairman of the Board shall be 
                elected by the Board from among its members for a 2-
                year term.
                  ``(C) Secretary as an ex officio member.--The 
                Secretary, ex officio--
                          ``(i) shall--
                                  ``(I) serve as a member of the Board;
                                  ``(II) be a voting member of the 
                                Board; and
                                  ``(III) be eligible to be elected by 
                                the Board to serve as chairman or vice 
                                chairman of the Board; and
                          ``(ii) shall not be subject to the terms or 
                        compensation requirements described in this 
                        paragraph that are applicable to the other 
                        members of the Board.
                  ``(D) Additional board members.--Each member of the 
                Board (excluding the Secretary) shall be appointed by 
                the Secretary.
                  ``(E) Terms.--
                          ``(i) In general.--Each Board member, except 
                        for the Secretary and the Board members 
                        described in clause (ii)(II), shall serve 5-
                        year terms.
                          ``(ii) Initial members.--
                                  ``(I) First 3 members.--The first 3 
                                members confirmed to serve on the Board 
                                after the date of enactment of the 
                                PROSPER Act shall serve for 5-year 
                                terms.
                                  ``(II) Other members.--The fourth, 
                                fifth, and sixth members confirmed to 
                                serve on the Board after such date of 
                                enactment shall serve for 3-year terms.
                          ``(iii) Reappointment.--The Secretary may 
                        reappoint a Board member for one additional 5-
                        year term.
                          ``(iv) Vacancies.--
                                  ``(I) In general.--Not later than 30 
                                days after a vacancy of the Board 
                                occurs, the Secretary shall publish a 
                                Federal Register notice soliciting 
                                nominations for the position.
                                  ``(II) Filling vacancy.--Not later 
                                than 90 days after such vacancy occurs, 
                                such vacancy shall be filled in the 
                                same manner as the original appointment 
                                was made, except that--
                                          ``(aa) the appointment shall 
                                        be for the remainder of the 
                                        uncompleted term; and
                                          ``(bb) such member may be 
                                        reappointed under clause (iii).
                  ``(F) Membership qualifications and prohibitions.--
                          ``(i) Qualifications.--The members of the 
                        board, other than the Secretary, shall be 
                        appointed without regard to political 
                        affiliation and solely on the basis of their 
                        professional experience and expertise in--
                                  ``(I) the management of large and 
                                financially significant organizations, 
                                including banks and commercial lending 
                                companies; or
                                  ``(II) Federal student financial 
                                assistance programs.
                          ``(ii) Conflicts of interest among board 
                        members.--Before appointing members of the 
                        Board, the Secretary shall establish rules and 
                        procedures to address any potential conflict of 
                        interest between a member of the Board and 
                        responsibilities of the Board, including 
                        prohibiting membership for individuals with a 
                        pecuniary interest in the activities of the 
                        PBO.
                  ``(G) No compensation.--Board members shall serve 
                without pay.
                  ``(H) Expenses of board members.--Each member of the 
                Board shall receive travel expenses and other 
                permissible expenses, including per diem in lieu of 
                subsistence, in accordance with applicable provisions 
                under title 5, United States Code.
          ``(3) Board responsibilities.--The Board shall have the 
        following responsibilities:
                  ``(A) Conducting general oversight over the 
                functioning and operation of the PBO, including--
                          ``(i) ensuring that the reporting and 
                        planning requirements of this section are 
                        fulfilled by the PBO; and
                          ``(ii) ensuring that the Chief Operating 
                        Officer acquires senior managers with 
                        demonstrated management ability and expertise 
                        in consumer lending (as described in subsection 
                        (b)(1)(C)(iii)).
                  ``(B) Approving the appointment or reappointment of a 
                Chief Operating Officer, except that the board shall 
                have no authority to approve or disapprove the 
                reappointment of the Chief Operating Officer who holds 
                such position on the date of enactment of the PROSPER 
                Act.
                  ``(C) Making recommendations with respect to the 
                suitability of any bonuses proposed to be provided to 
                the Chief Operating Officer or senior managers 
                described under subsections (d) and (e), to ensure that 
                a bonus is not awarded to the Officer or a senior 
                manager in a case in which such Officer or manager has 
                failed to meet goals set for them under the relevant 
                performance plan under subsections (d)(4) and (e)(2), 
                respectively.
                  ``(D) Approving any performance plan established for 
                the PBO.
          ``(4) Board operations.--
                  ``(A) Meetings.--The Board shall meet at least twice 
                per year and at such other times as the chairperson 
                determines appropriate.
                  ``(B) Powers of chairperson.--Except as otherwise 
                provided by a majority vote of the Board, the powers of 
                the chairperson shall include--
                          ``(i) establishing committees;
                          ``(ii) setting meeting places and times;
                          ``(iii) establishing meeting agendas; and
                          ``(iv) developing rules for the conduct of 
                        business.
                  ``(C) Quorum.--Four members of the Board shall 
                constitute a quorum. A majority of members present and 
                voting shall be required for the Board to take action.
                  ``(D) Administration.--The Federal Advisory Committee 
                Act shall not apply with respect to the Board, other 
                than sections 10, 11 and 12 of such Act.
          ``(5) Annual report.--
                  ``(A) In general.--Not less frequently than once 
                annually, the Board shall submit to the authorizing 
                committees a report on the results of the work 
                conducted by the PBO.
                  ``(B) Contents.--Each report under clause (i) shall 
                include--
                          ``(i) a description of the oversight work of 
                        the Board and the results of such work;
                          ``(ii) a description of statutory 
                        requirements of this section and section 144 
                        where the PBO is not in compliance;
                          ``(iii) recommendations on the appointment or 
                        reappointment of a Chief Operating Officer;
                          ``(iv) recommendations regarding bonus 
                        payments for the Chief Operating Officer and 
                        senior managers; and
                          ``(v) recommendations for the authorizing 
                        Committees and the Appropriations Committees 
                        on--
                                  ``(I) any statutory changes needed 
                                that would enhance the ability of the 
                                PBO to meet the purposes of this 
                                section; and
                                  ``(II) any recommendations for the 
                                Secretary or the Chief Operating 
                                Officer that will improve the 
                                operations of the PBO.
                          ``(vi) Issuance and public release.--Each 
                        report under clause (i) shall be posted on the 
                        publicly accessible website of the Department 
                        of Education.
                          ``(vii) PBO recommendations.--Not later than 
                        180 days after the submission of each report 
                        under clause (i), the Chief Operating Officer 
                        shall respond to each recommendation 
                        individually, which shall include a description 
                        of such actions that the Officer is undertaking 
                        to address such recommendation.
                  ``(C) Staff.--
                          ``(i) In general.--The Secretary may appoint 
                        to the Board not more than 7 employees to 
                        assist in carrying out the duties of the Board 
                        under this section.
                          ``(ii) Technical employees.--Such 
                        appointments may include, for terms not to 
                        exceed 3 years and without regard to the 
                        provisions of title 5, United States Code, 
                        governing appointments in the competitive 
                        service, not more than 3 technical employees 
                        who 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.
                          ``(iii) Detailees.--The Secretary may detail, 
                        on a reimbursable basis, any of the personnel 
                        of the Department for the purposes described in 
                        clause (i). Such employees shall serve without 
                        additional pay, allowances, or benefits.
                          ``(iv) Statutory construction.--Nothing in 
                        this subparagraph shall be construed to provide 
                        for an increase in the total number of 
                        permanent full-time equivalent positions in the 
                        Department or any other department or agency of 
                        the Federal Government.
          ``(6) Briefing on activities of the oversight board.--The 
        Secretary shall, upon request, provide a briefing to the 
        authorizing committees on the steps the Board has taken to 
        carry out its responsibilities under this subsection.''.

SEC. 132. ADMINISTRATIVE DATA TRANSPARENCY.

  Part D of title I (20 U.S.C. 1018 et seq.) is amended by adding at 
the end the following:

``SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY.

  ``(a) In General.--To improve the transparency of the student aid 
delivery system, the Secretary and the Chief Operating Officer shall 
collect and publish information on the performance of student loan 
programs under title IV in accordance with this section.
  ``(b) Disclosures.--
          ``(1) In general.--The Secretary and the Chief Operating 
        Officer shall publish on a publicly accessible website of the 
        Department of Education the following aggregate statistics with 
        respect to the performance of student loans under title IV:
                  ``(A) The number of borrowers who paid off the total 
                outstanding balance of principal and interest on their 
                loans before the end of the 10-year or consolidated 
                loan repayment schedule.
                  ``(B) The number of loans under each type of 
                deferment and forbearance.
                  ``(C) The average length of time a loan stays in 
                default.
                  ``(D) The percentage of loans in default among 
                borrowers who completed the program of study for which 
                the loans were made.
                  ``(E) The number of borrowers enrolled in an income-
                based repayment plan who make monthly payments of $0 
                and the average student loan debt of such borrowers.
                  ``(F) The number of students whose loan balances are 
                growing because such students are not paying the full 
                amount of interest accruing on the loans.
                  ``(G) The number of borrowers entering income-based 
                repayment plans to get out of default.
                  ``(H) The number of borrowers in income-based 
                repayment plans who have outstanding student loans from 
                graduate school, and the average balance of such loans.
                  ``(I) With respect to the public service loan 
                forgiveness program under section 455(m)--
                          ``(i) the number of applications submitted 
                        and processed;
                          ``(ii) the number of borrowers granted loan 
                        forgiveness;
                          ``(iii) the amount of loan debt forgiven; and
                          ``(iv) the number of borrowers granted loan 
                        forgiveness, and the amount of the loan debt 
                        forgiven, disaggregated by each category of 
                        employer that employs individuals in public 
                        service jobs (as defined in section 
                        455(m)(3)(B), including--
                                  ``(I) the Federal Government, or a 
                                State or local government;
                                  ``(II) 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; and
                                  ``(III) a non-profit organization not 
                                described in subclause (II).
                  ``(J) Any other aggregate statistics the Secretary 
                and the Chief Operating Officer determine to be 
                necessary to adequately inform the public of the 
                performance of the student loan programs under title 
                IV.
          ``(2) Disaggregation.--The statistics described in clauses 
        (i) through (iii) of paragraph (1)(I) shall be disaggregated--
                  ``(A) by the number or amount for most recent 
                quarter;
                  ``(B) by the total number or amount as of the date of 
                publication;
                  ``(C) by repayment plan;
                  ``(D) by borrowers seeking loan forgiveness for loans 
                made for an undergraduate course of study; and
                  ``(E) by borrowers seeking loan forgiveness for loans 
                made for a graduate course of study.
          ``(3) Quarterly updates.--The statistics published under 
        paragraph (1) shall be updated not less frequently than once 
        each fiscal quarter.
  ``(c) Information Collection.--
          ``(1) In general.--The Secretary and the Chief Operating 
        Officer shall collect information on the performance of student 
        loans under title IV over time, including--
                  ``(A) measurement of the cash flow generated by such 
                loans as determined by assessing monthly payments on 
                the loans over time;
                  ``(B) the income level and employment status of 
                borrowers during repayment;
                  ``(C) the loan repayment history of borrowers prior 
                to default;
                  ``(D) the progress of borrowers in making monthly 
                payments on loans after defaulting on the loans; and
                  ``(E) such other information as the Secretary and the 
                Chief Operating Officer determine to be appropriate.
          ``(2) Availability.--
                  ``(A) In general.--The information collected under 
                paragraph (1) shall be made available biannually to 
                organizations and researchers that--
                          ``(i) submit to the Secretary and the Chief 
                        Operating officer a request for such 
                        information; and
                          ``(ii) enter into an agreement with the 
                        National Center for Education Statistics under 
                        which the organization or researcher (as the 
                        case may be) agrees to use the information in 
                        accordance with the privacy laws described in 
                        subparagraph (B).
                  ``(B) Privacy protections.--The privacy laws 
                described in this subparagraph are the following:
                          ``(i) Section 183 of the Education Sciences 
                        Reform Act of 2002 (20 U.S.C. 9573).
                          ``(ii) The Privacy Act of 1974 (5 U.S.C. 
                        552a).
                          ``(iii) Section 444 of the General Education 
                        Provisions Act (commonly known as the `Family 
                        Educational Rights and Privacy Act of 1974') 
                        (20 U.S.C. 1232g).
                          ``(iv) Subtitle A of title V of the E-
                        Government Act of 2002 (44 U.S.C. 3501 note).
                  ``(C) Format.--The information described in 
                subparagraph (A) shall be made available in the format 
                of a data file that contains an statistically accurate, 
                representative sample of all borrowers of loans under 
                title IV.
  ``(d) Data Sharing.--The Secretary and the Chief Operating Officer 
may enter into cooperative data sharing agreements with other Federal 
or State agencies to ensure the accuracy of information collected and 
published under this section.
  ``(e) Privacy.--The Secretary and the Chief Operating Officer shall 
ensure that any information collected, published, or otherwise made 
available under this section does not reveal personally identifiable 
information.''.

SEC. 133. REPORT BY GAO ON TRANSFER OF FUNCTIONS OF THE OFFICE OF 
                    FEDERAL STUDENT AID TO THE DEPARTMENT OF TREASURY.

  (a) Study.--The Comptroller General of the United States shall 
conduct a study on the impact of transferring the functions, in whole 
or in part, of the Office of Federal Student Aid from the Department of 
Education to the Department of the Treasury, which shall include--
          (1) the potential impact of such transfer on the Federal 
        government, including--
                  (A) any change in cost of administering the program; 
                and
                  (B) the duplication of duties by Federal agencies;
          (2) an analysis of how the responsibilities and operations of 
        the Office of Federal Student Aid of the Department of 
        Education overlaps with relevant responsibilities and 
        operations at the Department of Treasury;
          (3) an analysis of whether the employees of the Department of 
        Treasury possess the necessary expertise and experience to 
        manage and oversee the functions of the Office of Federal 
        Student Aid of the Department of Education; and
          (4) the potential impact of such transfer on administrative 
        costs and staff necessary for carrying out such functions.
  (b) Consultation.--In conducting the study under subsection (a), the 
Comptroller General of the United States shall consult with 
stakeholders, including institutions of higher education, financial aid 
administrators, and existing entities that contract with the Office of 
Federal Student Aid of the Department of Education, that may be 
impacted by the transfer studied under such subsection.
  (c) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General of the United States shall 
complete the study under subsection (a) and submit a report to the 
House Committee on Education and the Workforce and the Senate Committee 
on Health, Education, Labor, and Pensions that includes the results of 
such study.

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

SEC. 141. MODIFICATION OF PREFERRED LENDER ARRANGEMENTS.

  (a) In General.--Part E of title I (20 U.S.C. 1019 et seq.) is 
amended--
          (1) in section 151 (20 U.S.C. 1019(2))--
                  (A) in paragraph (2), by striking ``section 102'' and 
                inserting ``section 101 or 102'';
                  (B) in paragraph (3)--
                          (i) by striking ``or'' at the end of 
                        subparagraph (B);
                          (ii) by redesignating subparagraph (C) as 
                        subparagraph (D); and
                          (iii) by inserting after subparagraph (B), 
                        the following:
                  ``(C) any loan made under part E of title IV after 
                the date of enactment of the PROSPER Act; or'';
                  (C) in paragraph (6)(A)--
                          (i) by striking ``and'' at the end of clause 
                        (ii);
                          (ii) by redesignating clause (iii) as clause 
                        (iv); and
                          (iii) by inserting after clause (ii), the 
                        following:
                          ``(iii) in the case of a loan issued or 
                        provided to a student under part E of title IV 
                        on or after the date of enactment of the 
                        PROSPER Act;'';
                  (D) in paragraph (8)(B)--
                          (i) by striking ``or'' at the end of clause 
                        (i);
                          (ii) by redesignating clause (ii) as clause 
                        (iii); and
                          (iii) by inserting after clause (i), the 
                        following:
                          ``(ii) arrangements or agreements with 
                        respect to loans under part E of title IV; 
                        or'';
          (2) in section 152 (20 U.S.C. 1019)--
                  (A) in subsection (a)(1)--
                          (i) in subparagraph (B), by amending clause 
                        (i) to read as follows:
                          ``(i) make available to the prospective 
                        borrower on a website or with informational 
                        material, the information the Board of 
                        Governors of the Federal Reserve System 
                        requires the lender to provide to the covered 
                        institution under section 128(e)(11) of the 
                        Truth in Lending Act (15 U.S.C. 1638(e)(11)) 
                        for such loan;''; and
                          (ii) by adding at the end the following:
                  ``(D) Special rule.--Notwithstanding any other 
                provision of law, a covered institution, or an 
                institution-affiliated organization of such covered 
                institution, shall not be required to provide any 
                information regarding private education loans to 
                prospective borrowers except for the information 
                described in subparagraph (B).''; and
                  (B) in subsection (b)(1)(A)(i), by striking ``part B 
                or D'' and inserting ``part B, D, or E'';
          (3) in section 153 (20 U.S.C. 1019b)--
                  (A) in subsection (a)--
                          (i) in paragraph (1)(B)--
                                  (I) in clause (i), by adding ``and'' 
                                at the end;
                                  (II) in clause (ii), by striking ``; 
                                and'' at the end and inserting a 
                                period; and
                                  (III) by striking clause (iii); and
                          (ii) in paragraph (2), by amending 
                        subparagraph (C) to read as follows:
                  ``(C) update such model disclosure form not later 
                than 180 after the date of enactment of the PROSPER 
                Act, and periodically thereafter, as necessary.''; and
                  (B) by amending subsection (c) to read as follows:
  ``(c) Duties of Covered Institutions and Institution-affiliated 
Organizations.--
          ``(1) Code of conduct.--Each covered institution, and each 
        institution-affiliated organization of such covered 
        institution, that has a preferred lender arrangement, shall 
        comply with the code of conduct requirements of subparagraphs 
        (A) through (C) of section 487(a)(23).
          ``(2) Applicable code of conduct.--For purposes of 
        subparagraph (A), an institution-affiliated organization of a 
        covered institution shall--
                  ``(A) comply with the code of conduct developed and 
                published by such covered institution under 
                subparagraphs (A) and (B) of section 487(a)(23);
                  ``(B) if such institution-affiliated organization has 
                a website, publish such code of conduct prominently on 
                the website; and
                  ``(C) administer and enforce such code of conduct by, 
                at a minimum, requiring that all of such organization's 
                agents with responsibilities with respect to education 
                loans be annually informed of the provisions of such 
                code of conduct.''; and
          (4) in section 154 (20 U.S.C. 1019c)--
                  (A) in the section heading, by inserting before the 
                period at the end the following: ``or the federal one 
                loan program'';
                  (B) by striking ``William D. Ford Direct Loan 
                Program'' each place it appears and inserting ``William 
                D. Ford Direct Loan Program or the Federal ONE Loan 
                Program''
                  (C) by striking ``part D'' each place it appears and 
                inserting ``part D or E''; and
                  (D) in subsection (a)--
                          (i) by striking ``the development'' and 
                        inserting ``the first update'';
                          (ii) by striking ``section 153(a)(2)(B)'' and 
                        inserting ``section 153(a)(2)(C)''; and
                          (iii) by striking ``Federal Direct Stafford 
                        Loans, Federal Direct Unsubsidized Stafford 
                        Loans, and Federal Direct PLUS'' and inserting 
                        ``undergraduate, graduate, and parent''.
  (b) Limitation.--The Secretary of Education shall not impose, 
administer, or enforce any requirements on a covered institution or an 
institution-affiliated organization of a covered institution relating 
to preferred lender lists or arrangements unless explicitly authorized 
by sections 152(a)(1)(B), 153(c), or 487(h)(1) of the Higher Education 
Act of 1965 (20 U.S.C. 1019a(a)(1)(B), 1019b(c), or 1094(h), 
respectively) as amended by this Act.

                   PART F--ADDRESSING SEXUAL ASSAULT

SEC. 151. ADDRESSING SEXUAL ASSAULT.

  Title I (20 U.S.C. 1001 et seq.) is amended by adding at the end the 
following new part:

                  ``PART F--ADDRESSING SEXUAL ASSAULT

``SEC. 161. APPLICATION.

  ``The requirements of this part shall apply to any institution of 
higher education receiving Federal financial assistance under this Act, 
including financial assistance provided to students under title IV, 
other than--
          ``(1) an institution outside the United States; or
          ``(2) an institution that provides instruction primarily 
        through online courses.

``SEC. 162. CAMPUS CLIMATE SURVEYS.

  ``(a) Surveys to Measure Campus Attitudes and Climate Regarding 
Sexual Assault and Misconduct on Campus.--Each institution of higher 
education that is subject to this part shall conduct surveys of its 
students to measure campus attitudes towards sexual assault and the 
general climate of the campus regarding the institution's treatment of 
sexual assault on campus, and shall use the results of the survey to 
improve the institution's ability to prevent and respond appropriately 
to incidents of sexual assault.
  ``(b) Contents.--The institution's survey under this section shall 
consist of such questions as the institution considers appropriate, 
which may (at the option of the institution) include any of the 
following:
          ``(1) Questions on the incidence and prevalence of sexual 
        assault experienced by students.
          ``(2) Questions on whether students who experience sexual 
        assault report such incidents to campus officials or law 
        enforcement agencies.
          ``(3) Questions on whether the alleged perpetrators are 
        students of the institution.
          ``(4) Questions to test the students' knowledge and 
        understanding of institutional policies regarding sexual 
        assault and available campus support services for victims of 
        sexual assault.
          ``(5) Questions to test the students' knowledge, 
        understanding, and retention of campus sexual assault 
        prevention and awareness programming.
          ``(6) Questions related to dating violence, domestic 
        violence, and stalking.
  ``(c) Other Issues Relating to the Administration of Surveys.--
          ``(1) Mandatory confidentiality of responses.--The 
        institution shall ensure that all responses to surveys under 
        this section are kept confidential and do not require the 
        respondents to provide personally identifiable information.
          ``(2) Encouraging use of best practices and appropriate 
        language.--The institution is encouraged to administer the 
        surveys under this section in accordance with best practices 
        derived from peer-reviewed research, and to use language that 
        is sensitive to potential respondents who may have been victims 
        of sexual assault.
          ``(3) Encouraging responses.--The institution shall make a 
        good faith effort to encourage students to respond to the 
        surveys.
  ``(d) Role of Secretary.--
          ``(1) Development of sample surveys.--The Secretary, in 
        consultation with relevant stakeholders, shall develop sample 
        surveys that an institution may elect to use under this 
        section, and shall post such surveys on a publicly accessible 
        website of the Department of Education. The Secretary shall 
        develop sample surveys that are suitable for the various 
        populations who will participate in the surveys.
          ``(2) Limit on other activities.--In carrying out this 
        section, the Secretary--
                  ``(A) may not regulate or otherwise impose conditions 
                on the contents of an institution's surveys under this 
                section, except as may be necessary to ensure that the 
                institution meets the confidentiality requirements of 
                subsection (c)(1); and
                  ``(B) may not use the results of the surveys to make 
                comparisons between institutions of higher education.
  ``(e) Frequency.--An institution of higher education that is subject 
to this part shall conduct a survey under this section not less 
frequently than once every 3 academic years.

``SEC. 163. SURVIVORS' COUNSELORS.

  ``(a) Requiring Institutions to Make Counselor Available.--
          ``(1) In general.--Each institution of higher education that 
        is subject to this part shall retain the services of qualified 
        sexual assault survivors' counselors to counsel and support 
        students who are victims of sexual assault.
          ``(2) Use of contractors permitted.--At the option of the 
        institution, the institution may retain the services of 
        counselors who are employees of the institution or may enter 
        into agreements with other institutions of higher education, 
        victim advocacy organizations, or other appropriate sources to 
        provide counselors for purposes of this section.
          ``(3) Number.--The institution shall retain such number of 
        counselors under this section as the institution considers 
        appropriate based on a reasonable determination of the 
        anticipated demand for such counselors' services, so long as 
        the institution retains the services of at least one such 
        counselor at all times.
  ``(b) Qualifications.--A counselor is qualified for purposes of this 
section if the counselor has completed education specifically designed 
to enable the counselor to provide support to victims of sexual 
assault, and is familiar with relevant laws on sexual assault as well 
as the institution's own policies regarding sexual assault.
  ``(c) Informing Victims of Available Options and Services.--In 
providing services pursuant to this section, a counselor shall--
          ``(1) inform the victim of sexual assault of options 
        available to victims, including the procedures the victim may 
        follow to report the assault to the institution or to a law 
        enforcement agency; and
          ``(2) inform the victim of interim measures that may be taken 
        pending the resolution of institutional disciplinary 
        proceedings or the conclusion of criminal justice proceedings.
  ``(d) Confidentiality.--
          ``(1) Maintaining confidentiality of information.--In 
        providing services pursuant to this section, a counselor 
        shall--
                  ``(A) maintain confidentiality with respect to any 
                information provided by a victim of sexual assault to 
                the greatest extent permitted under applicable law; and
                  ``(B) notify the victim of any circumstances under 
                which the counselor is required to report information 
                to others (including a law enforcement agency) 
                notwithstanding the general requirement to maintain 
                confidentiality under subparagraph (A).
          ``(2) Maintaining privacy of records.--A counselor providing 
        services pursuant to this section shall be considered a 
        recognized professional for purposes of section 
        444(a)(4)(B)(iv) of the General Education Provisions Act 
        (commonly known as the `Family Educational Rights and Privacy 
        Act of 1974') (20 U.S.C. 1232g(a)(4)(B)(iv)).
  ``(e) Limitations.--
          ``(1) No reporting of incidents under clery act or other 
        authority.--A counselor providing services pursuant to this 
        section is not required to report incidents of sexual assault 
        that are reported to the counselor for inclusion in any report 
        on campus crime statistics, and shall not be considered part of 
        a campus police or security department for purposes of section 
        485(f).
          ``(2) No coverage of counselors as responsible employees 
        under title ix.--A counselor providing services pursuant to 
        this section on behalf of an institution of higher education 
        shall not be considered a responsible employee of the 
        institution for purposes of title IX of the Education 
        Amendments of 1972 (20 U.S.C. 1681 et seq.) or the regulations 
        promulgated pursuant to such title.
  ``(f) Notifications to Students.--Each institution of higher 
education that is subject to this part shall make a good faith effort 
to notify its students of the availability of the services of 
counselors pursuant to this section through the statement of policy 
described in section 485(f)(8)(B)(vi) and any other methods as the 
institution considers appropriate, including disseminating information 
through the institution's website, posting notices throughout the 
campus, and including information as part of programs to educate 
students on sexual assault prevention and awareness.

``SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL ASSAULT.

  ``(a) Requirement to Develop and Distribute Form.--Each institution 
of higher education that is subject to this part shall develop a one-
page form containing information to provide guidance and assistance to 
students who may be victims of sexual assault, and shall make the form 
widely available to students.
  ``(b) Contents of Form.--The form developed under this section shall 
contain such information as the institution considers appropriate, and 
may include the following:
          ``(1) Information about the services of counselors which are 
        available pursuant to section 163, including a statement that 
        the counselor will provide the maximum degree of 
        confidentiality permitted under law, and a brief description of 
        the circumstances under which the counselor may be required to 
        report information notwithstanding the victim's desire to keep 
        the information confidential.
          ``(2) Information about other appropriate campus resources 
        and resources in the local community, including contact 
        information.
          ``(3) Information about where to obtain medical treatment, 
        and information about transportation services to such medical 
        treatment facilities, if available.
          ``(4) Information about the importance of preserving evidence 
        after a sexual assault.
          ``(5) Information about how to file a report with local law 
        enforcement agencies.
          ``(6) Information about the victim's right to request 
        accommodations, and examples of accommodations that may be 
        provided.
          ``(7) Information about the victim's right to request that 
        the institution begin an investigation of an allegation of 
        sexual assault and initiate an institutional disciplinary 
        proceeding if the alleged perpetrator of the assault is another 
        student or a member of the faculty or staff of the institution.
          ``(8) A statement that an institutional disciplinary 
        proceeding is not a substitute for a criminal justice 
        proceeding.
          ``(9) Information about how to report a sexual assault to the 
        institution, including the designated official or office 
        responsible for receiving these reports.
  ``(c) Development of Model Forms.--The Secretary, in consultation 
with relevant stakeholders, shall develop model forms that an 
institution may use to meet the requirements of this section, and shall 
include in such model forms language which may accommodate a variety of 
State and local laws and institutional policies. Nothing in this 
subsection may be construed to require an institution to use any of the 
model forms developed under this subsection.

``SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL LAW ENFORCEMENT 
                    AGENCIES.

  ``(a) Findings; Purpose.--
          ``(1) Findings.--Because sexual assault is a serious crime, 
        coordination and cooperation between institutions of higher 
        education and law enforcement agencies are critical in ensuring 
        that reports of sexual assaults on campus are handled in an 
        appropriate and effective manner. A memorandum of understanding 
        entered into between an institution and the law enforcement 
        agency with primary jurisdiction for responding to reports of 
        sexual assault on the institution's campus is a useful tool to 
        promote this coordination and cooperation.
          ``(2) Purpose.--It is the purpose of this section to 
        encourage each institution of higher education that is subject 
        to this part to enter into a memorandum of understanding with 
        the law enforcement agency with primary jurisdiction for 
        responding to reports of sexual assault on the institution's 
        campus so that reports of sexual assault on the institution's 
        campus may be handled in an appropriate and effective manner.
  ``(b) Contents of Memorandum.--An institution of higher education and 
a law enforcement agency entering into a memorandum of understanding 
described in this section are encouraged to include in the memorandum 
provisions addressing the following:
          ``(1) An outline of the protocols and a delineation of 
        responsibilities for responding to a report of sexual assault 
        occurring on campus.
          ``(2) A clarification of each party's responsibilities under 
        existing Federal, State, and local law or policies.
          ``(3) The need for the law enforcement agency to know about 
        institutional policies and resources so that the agency can 
        direct student-victims of sexual assault to such resources.
          ``(4) The need for the institution to know about resources 
        available within the criminal justice system to assist 
        survivors, including the presence of special prosecutor or 
        police units specifically designated to handle sexual assault 
        cases.
          ``(5) If the institution has a campus police or security 
        department with law enforcement authority, the need to clarify 
        the relationship and delineate the responsibilities between 
        such department and the law enforcement agency with respect to 
        handling incidents of sexual assaults occurring on campus.
  ``(c) Role of Secretary.--The Secretary, in consultation with the 
Attorney General, shall develop best practices for memoranda of 
understanding described in this section, and shall disseminate such 
best practices on a publicly accessible website of the Department of 
Education.

``SEC. 166. DEFINITIONS.

  ``In this part:
          ``(1) The term `sexual assault' has the meaning given such 
        term in section 485(f)(6)(A)(v).
          ``(2) The terms `dating violence', `domestic violence', and 
        `stalking', have the meaning given such terms in section 
        485(f)(6)(A)(i).''.

        TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS

SEC. 201. REPEAL.

  (a) Repeal.--Title II (20 U.S.C. 1021 et seq.) is repealed.
  (b) Part A Transition.--Part A of title II (20 U.S.C. 1022 et seq.), 
as in effect on the day before the date of the enactment of this Act, 
may be carried out using funds that have been appropriated for such 
part until September 30, 2018.

SEC. 202. GRANTS FOR ACCESS TO HIGH-DEMAND CAREERS.

  The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended 
by inserting after title I the following:

       ``TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS

``SEC. 201. APPRENTICESHIP GRANT PROGRAM.

  ``(a) Purpose.--The purpose of this section is to expand student 
access to, and participation in, new industry-led earn-and-learn 
programs leading to high-wage, high-skill, and high-demand careers.
  ``(b) Authorization of Apprenticeship Grant Program.--
          ``(1) In general.--From the amounts authorized under 
        subsection (j), the Secretary shall award grants, on a 
        competitive basis, to eligible partnerships for the purpose 
        described in subsection (a).
          ``(2) Duration.--The Secretary shall award grants under this 
        section for a period of--
                  ``(A) not less than 1 year; and
                  ``(B) not more than 4 years.
          ``(3) Limitations.--
                  ``(A) Amount.--A grant awarded under this section may 
                not be in an amount greater than $1,500,000.
                  ``(B) Number of awards.--An eligible partnership or 
                member of such partnership may not be awarded more than 
                one grant under this section.
                  ``(C) Administration costs.--An eligible partnership 
                awarded a grant under this section may not use more 
                than 5 percent of the grant funds to pay administrative 
                costs associated with activities funded by the grant.
  ``(c) Matching Funds.--To receive a grant under this section, an 
eligible partnership shall, through cash or in-kind contributions, 
provide matching funds from non-Federal sources in an amount equal to 
or greater than 50 percent of the amount of such grant.
  ``(d) Applications.--
          ``(1) In general.--To receive a grant under this section, an 
        eligible partnership shall submit to the Secretary at such a 
        time as the Secretary may require, an application that--
                  ``(A) identifies and designates the business or 
                institution of higher education responsible for the 
                administration and supervision of the earn-and-learn 
                program for which such grant funds would be used;
                  ``(B) identifies the businesses and institutions of 
                higher education that comprise the eligible 
                partnership;
                  ``(C) identifies the source and amount of the 
                matching funds required under subsection (c);
                  ``(D) identifies the number of students who will 
                participate and complete the relevant earn-and-learn 
                program within 1 year of the expiration of the grant;
                  ``(E) identifies the amount of time, not to exceed 2 
                years, required for students to complete the program;
                  ``(F) identifies the relevant recognized 
                postsecondary credential to be awarded to students who 
                complete the program;
                  ``(G) identifies the anticipated earnings of 
                students--
                          ``(i) 1 year after program completion; and
                          ``(ii) 3 years after program completion;
                  ``(H) describes the specific project for which the 
                application is submitted, including a summary of the 
                relevant classroom and paid structured on-the-job 
                training students will receive;
                  ``(I) describes how the eligible partnership will 
                finance the program after the end of the grant period;
                  ``(J) describes how the eligible partnership will 
                support the collection of information and data for 
                purposes of the program evaluation required under 
                subsection (h); and
                  ``(K) describes the alignment of the program with 
                State identified in-demand industry sectors.
          ``(2) Application review process.--
                  ``(A) Review panel.--Applications submitted under 
                paragraph (1) shall be read by a panel of readers 
                composed of individuals selected by the Secretary. The 
                Secretary shall assure that an individual assigned 
                under this paragraph does not have a conflict of 
                interest with respect to the applications reviewed by 
                such individual.
                  ``(B) Composition of review panel.--The panel of 
                reviewers selected by the Secretary under subparagraph 
                (A) shall be comprised as follows:
                          ``(i) A majority of the panel shall be 
                        individuals who are representative of 
                        businesses, which may include owners, 
                        executives with optimum hiring authority, or 
                        individuals representing business organizations 
                        or business trade associations.
                          ``(ii) The remainder of the panel shall be 
                        equally divided between individuals who are--
                                  ``(I) representatives of institutions 
                                of higher education that offer programs 
                                of two years or less; and
                                  ``(II) representatives of State 
                                workforce development boards 
                                established under section 101 of the 
                                Workforce Innovation and Opportunity 
                                Act (29 U.S.C. 3111).
                  ``(C) Review of applications.--The Secretary shall 
                instruct the review panel selected by the Secretary 
                under paragraph (2)(A) to evaluate applications using 
                only the criteria specified in paragraph (1) and make 
                recommendations with respect to--
                          ``(i) the quality of the applications;
                          ``(ii) whether a grant should be awarded for 
                        a project under this title; and
                          ``(iii) the amount and duration of such 
                        grant.
                  ``(D) Notification.--Not later than June 30 of each 
                year, the Secretary shall notify each eligible 
                partnership submitting an application under this 
                section of--
                          ``(i) the scores given the applicant by the 
                        panel pursuant to this section;
                          ``(ii) the recommendations of the panel with 
                        respect to such application; and
                          ``(iii) the reasons for the decision of the 
                        Secretary in awarding or refusing to award a 
                        grant under this section; and
                          ``(iv) modifications, if any, in the 
                        recommendations of the panel made to the 
                        Secretary.
  ``(e) Award Basis.--The Secretary shall award grants under this 
section on the following basis--
          ``(1) the number of participants to be served by the grant;
          ``(2) the anticipated income of program participants in 
        relation to the regional median income;
          ``(3) the alignment of the program with State-identified in-
        demand industry sectors; and
          ``(4) the recommendations of the readers under subsection 
        (d)(2)(C).
  ``(f) Use of Funds.--Grant funds provided under this section may be 
used for--
          ``(1) the purchase of appropriate equipment, technology, or 
        instructional material, aligned with business and industry 
        needs, including machinery, testing equipment, hardware and 
        software;
          ``(2) student books, supplies, and equipment required for 
        enrollment;
          ``(3) the reimbursement of up to 50 percent of the wages of a 
        student participating in an earn-and-learn program receiving a 
        grant under this section;
          ``(4) the development of industry-specific programing;
          ``(5) supporting the transition of industry-based 
        professionals from an industry setting to an academic setting;
          ``(6) industry-recognized certification exams or other 
        assessments leading to a recognized postsecondary credential 
        associated with the earn-and-learn program; and
          ``(7) any fees associated with the certifications or 
        assessments described in paragraph (6).
  ``(g) Technical Assistance.--The Secretary may provide technical 
assistance to eligible partnerships awarded under this section 
throughout the grant period for purposes of grant management.
  ``(h) Evaluation.--
          ``(1) In general.--From the amounts made available under 
        subsection (j), the Secretary, acting through the Director of 
        the Institute for Education Sciences, shall provide for the 
        independent evaluation of the grant program established under 
        this section that includes the following:
                  ``(A) An assessment of the effectiveness of the grant 
                program in expanding earn-and-learn program 
                opportunities offered by employers in conjunction with 
                institutions of higher education.
                  ``(B) The number of students who participated in 
                programs assisted under this section.
                  ``(C) The percentage of students participating in 
                programs assisted under this section who successfully 
                completed the program in the time described in 
                subsection (d)(1)(E).
                  ``(D) The median earnings of program participants--
                          ``(i) 1 year after exiting the program; and
                          ``(ii) 3 years after exiting the program.
                  ``(E) The percentage of students participating in 
                programs assisted under this section who successfully 
                receive a recognized postsecondary credential.
                  ``(F) The number of students served by programs 
                receiving funding under this section--
                          ``(i) 2 years after the end of the grant 
                        period;
                          ``(ii) 4 years after the end of the grant 
                        period.
          ``(2) Prohibition.--Notwithstanding any other provision of 
        law, the evaluation required by this subsection shall not be 
        subject to any review outside the Institute for Education 
        Sciences before such reports are submitted to Congress and the 
        Secretary.
          ``(3) Publication.--The evaluation required by this 
        subsection shall be made publicly available on the website of 
        the Department.
  ``(i) Definitions.--In this section:
          ``(1) Earn-and-learn program.--The term `earn-and-learn 
        program' means an education program, including an 
        apprenticeship program, that provides students with structured, 
        sustained, and paid on-the-job training and accompanying, for 
        credit, classroom instruction that--
                  ``(A) is for a period of between 3 months and 2 
                years; and
                  ``(B) leads to, on completion of the program, a 
                recognized postsecondary credential.
          ``(2) Eligible partnership.--The term `eligible partnership' 
        shall mean a consortium that includes--
                  ``(A) 1 or more businesses; and
                  ``(B) 1 or more institutions of higher education.
          ``(3) In-demand industry sector or occupation.--The term `in-
        demand industry sector or occupation' has the meaning given the 
        term in section 3 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3102).
          ``(4) On-the-job training.--The term `on-the-job training' 
        has the meaning given the term in section 3 of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3102).
          ``(5) Recognized postsecondary credential.--The term 
        `recognized postsecondary credential' has the meaning given the 
        term in section 3 of the Workforce Innovation and Opportunity 
        Act (29 U.S.C. 3102).
  ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $183,204,000 for fiscal year 
2019 and each of the 5 succeeding fiscal years.''.

                      TITLE III--INSTITUTIONAL AID

SEC. 301. STRENGTHENING INSTITUTIONS.

  Part A of title III (20 U.S.C. 1057 et seq.) is amended--
          (1) in the part heading for part A, by inserting ``Minority-
        serving'' after ``Strengthening'';
          (2) in section 311--
                  (A) by striking subsection (b) and redesignating 
                subsections (c) and (d) as subsections (b) and (c), 
                respectively;
                  (B) in subsection (b) (as so redesignated)--
                          (i) by striking paragraph (6) and inserting 
                        the following:
          ``(6) Tutoring, counseling, advising, and student service 
        programs designed to improve academic success, including 
        innovative and customized instructional courses (which may 
        include remedial education and English language instruction) 
        designed to help retain students and move the students rapidly 
        into core courses and through program completion.'';
                          (ii) in paragraph (8), by striking 
                        ``acquisition of equipment for use in 
                        strengthening funds management'' and inserting 
                        ``acquisition of technology, services, and 
                        equipment for use in strengthening funds and 
                        administrative management'';
                          (iii) in paragraph (12), by striking 
                        ``Creating'' and all that follows through 
                        ``technologies,'' and inserting ``Innovative 
                        learning models and creating or improving 
                        facilities for Internet or other innovative 
                        technologies,'';
                          (iv) by redesignating paragraph (13) as 
                        paragraph (18); and
                          (v) by inserting after paragraph (12) the 
                        following:
          ``(13) 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.
          ``(14) The development, coordination, implementation, or 
        improvement of career and technical education programs as 
        defined in section 135 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2355).
          ``(15) Alignment and integration of career and technical 
        education programs with programs of study leading to a 
        bachelor's degree, graduate degree, or professional degree.
          ``(16) Developing or expanding access to dual or concurrent 
        enrollment programs and early college high school programs.
          ``(17) Pay for success initiatives that improve time to 
        completion and increase graduation rates.''; and
                  (C) in subsection (c) (as so redesignated), by adding 
                at the end the following:
          ``(4) Scholarship.--An institution that uses grant funds 
        provided under this part to establish or increase an endowment 
        fund may use the income from such endowment fund to provide 
        scholarships to students for the purposes of attending such 
        institution, subject to the limitation in section 
        331(c)(3)(B)(i).'';
          (3) in section 312--
                  (A) in subsection (a), by striking ``transfers which 
                the institution'' and inserting ``transfers that the 
                institution'';
                  (B) in subsection (b)(1)--
                          (i) by redesignating subparagraphs (E) and 
                        (F) as subparagraphs (F) and (E), respectively 
                        (and by reordering such subparagraphs 
                        accordingly);
                          (ii) in subparagraph (E) (as so 
                        redesignated), by inserting ``(as defined in 
                        section 103(20)(A))'' after ``State''; and
                          (iii) in subparagraph (F) (as so 
                        redesignated), by striking ``and'' at the end; 
                        and
                  (C) in subsection (b)--
                          (i) by striking the period at the end of 
                        paragraph (2) and inserting ``; and''; and
                          (ii) by inserting after paragraph (2) the 
                        following:
          ``(3) except as provided in section 392(b), an institution 
        that has a completion rate of at least 25 percent that is 
        calculated by counting a student as completed if that student--
                  ``(A) graduates within 150 percent of the normal time 
                for completion; or
                  ``(B) enrolled into another program at an institution 
                for which the previous program provided substantial 
                preparation within 150 percent of the normal time for 
                completion.'';
          (4) in section 313--
                  (A) in subsection (a)--
                          (i) by striking ``for 5 years'' and inserting 
                        ``for a period of 5 years''; and
                          (ii) by adding at the end the following: 
                        ``Any funds awarded under this section that are 
                        not expended or used for the purposes for which 
                        the funds were paid within 10 years following 
                        the date on which the grant was awarded, shall 
                        be repaid to the Treasury.''; and
                  (B) by striking subsection (d);
          (5) in section 316--
                  (A) in subsection (c)--
                          (i) in paragraph (2)--
                                  (I) by striking subparagraph (A) and 
                                inserting the following:
                  ``(A) the activities described in paragraphs (1) 
                through (12) and (14) through (17) of section 
                311(b);'';
                                  (II) by striking subparagraphs (E) 
                                through (J);
                                  (III) by redesignating subparagraphs 
                                (K) and (L) as subparagraphs (E) and 
                                (F), respectively;
                                  (IV) by striking subparagraph (M); 
                                and
                                  (V) by redesignating subparagraph (N) 
                                as subparagraph (G); and
                                  (VI) in subparagraph (G) (as so 
                                redesignated), by striking ``(M)'' and 
                                inserting ``(F)''; and
                          (ii) by striking paragraph (3) and inserting 
                        the following:
          ``(3) Endowment fund.--A Tribal College or University seeking 
        to establish or increase an endowment fund shall abide by the 
        requirements in section 311(c).''; and
                  (B) in subsection (d)--
                          (i) by striking paragraph (2) and inserting 
                        the following:
          ``(2) Application.--A Tribal College or University desiring 
        to receive assistance under this section shall submit an 
        application to the Secretary pursuant to section 391.''; and
                          (ii) in paragraph (4)--
                                  (I) in subparagraph (A), by striking 
                                ``part A of''; and
                                  (II) in subparagraph (B), by striking 
                                ``313(d)'' and inserting ``312(b)(3)'';
          (6) in section 317--
                  (A) in subsection (c)--
                          (i) by striking paragraph (2) and inserting 
                        the following:
          ``(2) Examples of authorized activities.--Such programs may 
        include--
                  ``(A) the activities described in paragraphs (1) 
                through (17) of section 311(b); and
                  ``(B) other activities proposed in the application 
                submitted pursuant to subsection (d) that--
                          ``(i) contribute to carrying out the purpose 
                        of this section; and
                          ``(ii) are approved by the Secretary as part 
                        of the review and approval of an application 
                        submitted under subsection (d).''; and
                          (ii) by adding at the end the following:
          ``(3) Endowment fund.--An Alaska Native-serving institution 
        and Native Hawaiian-serving institution seeking to establish or 
        increase an endowment fund shall abide by the requirements in 
        section 311(c).''; and
                  (B) in subsection (d)--
                          (i) by striking paragraph (1) and 
                        redesignating paragraphs (2) and (3) as 
                        paragraphs (1) and (2), respectively;
                          (ii) in paragraph (1) (as so redesignated)--
                                  (I) in the first sentence, by 
                                inserting ``pursuant to section 391'' 
                                after ``to the Secretary''; and
                                  (II) by striking the remaining 
                                sentences; and
                          (iii) in paragraph (2) (as so redesignated)--
                                  (I) in subparagraph (A), by striking 
                                ``this part or part B.'' and inserting 
                                ``this part, part B, or title V.''; and
                                  (II) by striking subparagraph (B) and 
                                redesignating subparagraph (C) as 
                                subparagraph (B);
          (7) in section 318--
                  (A) in subsection (b)--
                          (i) in paragraph (1)--
                                  (I) in subparagraph (E), by striking 
                                ``and'' at the end;
                                  (II) in subparagraph (F)(ii), by 
                                striking ``part A of'';
                                  (III) in subparagraph (F)(iii), by 
                                striking the period at the end and 
                                inserting ``; and''; and
                                  (IV) by adding at the end the 
                                following;
                  ``(G) is an eligible institution under section 
                312(b).''; and
                          (ii) by striking paragraph (7);
                  (B) in subsection (d)--
                          (i) in paragraph (2)--
                                  (I) in subparagraph (A), by striking 
                                ``through (12) of section 311(c)'' and 
                                inserting ``through (17) of section 
                                311(b)'';
                                  (II) by striking subparagraph (D); 
                                and
                                  (III) by redesignating subparagraph 
                                (E) as subparagraph (D); and
                          (ii) by striking paragraph (3) and inserting 
                        the following:
          ``(3) Endowment fund.--A Predominantly Black Institution 
        seeking to establish or increase an endowment fund shall abide 
        by the requirements in section 311(c).'';
                  (C) in subsection (f), by striking all after 
                ``Secretary'' the first place such term appears and 
                inserting ``pursuant to section 391.'';
                  (D) by striking subsections (g) and (h);
                  (E) by redesignating subsection (i) as subsection 
                (g); and
                  (F) in subsection (g) (as so redesignated), by 
                striking ``part A of'';
          (8) in section 319--
                  (A) in subsection (c)--
                          (i) by striking paragraph (2) and inserting 
                        the following:
          ``(2) Examples of authorized activities.--Such programs may 
        include--
                  ``(A) the activities described in paragraphs (1) 
                through (17) of section 311(b); and
                  ``(B) other activities proposed in the application 
                submitted pursuant to subsection (d) that--
                          ``(i) contribute to carrying out the purpose 
                        of this section; and
                          ``(ii) are approved by the Secretary as part 
                        of the review and approval of an application 
                        submitted under subsection (d).''; and
                          (ii) by adding at the end the following:
          ``(3) Endowment fund.--A Native American-serving, nontribal 
        institution seeking to establish or increase an endowment fund 
        shall abide by the requirements in section 311(c).''; and
                  (B) in subsection (d)--
                          (i) by striking paragraph (1) and inserting 
                        the following:
          ``(1) Application.--A Native American-serving, nontribal 
        institution desiring to receive assistance under this section 
        shall submit an application to the Secretary pursuant to 
        section 391.'';
                          (ii) by striking paragraph (2) and 
                        redesignating paragraph (3) as paragraph (2); 
                        and
                          (iii) in paragraph (2) (as so redesignated)--
                                  (I) in subparagraph (A), by striking 
                                ``part A of'';
                                  (II) by striking subparagraph (B); 
                                and
                                  (III) by redesignating subparagraphs 
                                (C) and (D) as subparagraphs (B) and 
                                (C), respectively; and
          (9) in section 320--
                  (A) in subsection (c)--
                          (i) by striking paragraph (2) and inserting 
                        the following:
          ``(2) Examples of authorized activities.--Such programs may 
        include--
                  ``(A) the activities described in paragraphs (1) 
                through (17) of section 311(b);
                  ``(B) academic instruction in disciplines in which 
                Asian Americans and Native American Pacific Islanders 
                are underrepresented;
                  ``(C) conducting research and data collection for 
                Asian American and Native American Pacific Islander 
                populations and subpopulations;
                  ``(D) establishing partnerships with community-based 
                organizations serving Asian Americans and Native 
                American Pacific Islanders; and
                  ``(E) other activities proposed in the application 
                submitted pursuant to subsection (d) that--
                          ``(i) contribute to carrying out the purpose 
                        of this section; and
                          ``(ii) are approved by the Secretary as part 
                        of the review and approval of an application 
                        submitted under subsection (d).''; and
                          (ii) by adding at the end the following:
          ``(3) Endowment fund.--An Asian American and Native American 
        Pacific Islander-serving institution seeking to establish or 
        increase an endowment fund shall abide by the requirements in 
        section 311(c).''; and
                  (B) in subsection (d)--
                          (i) by striking paragraph (1) and inserting 
                        the following:
          ``(1) Application.--Each Asian American and Native American 
        Pacific Islander-serving institution desiring to receive 
        assistance under this section shall submit an application to 
        the Secretary pursuant to section 391.'';
                          (ii) by striking paragraph (2) and 
                        redesignating paragraph (3) as paragraph (2); 
                        and
                          (iii) in paragraph (2) (as so redesignated), 
                        by striking subparagraph (B) and redesignating 
                        subparagraph (C) as subparagraph (B).

SEC. 302. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES.

  Part B of title III (20 U.S.C. 1060 et seq.) is amended--
          (1) in section 323--
                  (A) by striking subsection (a) and inserting the 
                following :
  ``(a) Authorized Activities.--From amounts available under section 
399(a)(2) for 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) The activities described in paragraphs (1) through (17) 
        of section 311(b).
          ``(2) Academic instruction in disciplines in which Black 
        Americans are underrepresented.
          ``(3) Initiatives to improve the educational outcomes of 
        African American males.
          ``(4) 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.
          ``(5) Acquisition of real property in connection with the 
        construction, renovation, or addition to or improvement of 
        campus facilities.
          ``(6) Services necessary for the implementation of projects 
        or activities that are described in the grant application and 
        that are approved, in advance, by the Secretary, except that 
        not more than two percent of the grant amount may be used for 
        this purpose.
          ``(7) Other activities proposed in the application submitted 
        pursuant to section 325 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.''; and
                  (B) by striking subsection (b) and inserting the 
                following:
  ``(b) Endowment Fund.--An institution seeking to establish or 
increase an endowment shall abide by the requirements in section 
311(c).'';
          (2) in section 325(a), by striking ``(C), (D), and (E)'' and 
        inserting ``(C) through (F)'';
          (3) in section 326--
                  (A) by striking subsection (b) and inserting the 
                following:
  ``(b) Duration.--The Secretary may award a grant to an eligible 
institution under this part for a period of 5 years. Any funds awarded 
under this section that are not expended or used for the purposes for 
which the funds were paid within 10 years following the date on which 
the grant was awarded, shall be repaid to the Treasury.'';
                  (B) by striking subsection (c) and inserting the 
                following:
  ``(c) Authorized Activities.--A grant under this section may be used 
for--
          ``(1) the activities described in paragraphs (1) through 
        (12), (14) through (15), and (17) of section 311(b);
          ``(2) scholarships, fellowships, and other financial 
        assistance for needy graduate and professional students to 
        permit the enrollment of the students in and completion of the 
        doctoral degree in medicine, dentistry, pharmacy, veterinary 
        medicine, law, and the doctorate degree in the physical or 
        natural sciences, engineering, mathematics, or other scientific 
        disciplines in which African Americans are underrepresented;
          ``(3) acquisition of real property that is adjacent to the 
        campus in connection with the construction, renovation, or 
        addition to or improvement of campus facilities;
          ``(4) services necessary for the implementation of projects 
        or activities that are described in the grant application and 
        that are approved, in advance, by the Secretary, except that 
        not more than two percent of the grant amount may be used for 
        this purpose; and
          ``(5) other activities proposed in the application submitted 
        under subsection (d) that--
                  ``(A) contribute to carrying out the purposes of this 
                part; and
                  ``(B) are approved by the Secretary as part of the 
                review and acceptance of such application.'';
                  (C) in subsection (e)(1)--
                          (i) in subparagraph (W), by striking ``and'' 
                        at the end;
                          (ii) in subparagraph (X), by striking the 
                        period at the end and inserting ``; and'';
                          (iii) by adding at the end the following:
                  ``(Y) University of the Virgin Islands School of 
                Medicine.'';
                          (iv) in each of paragraphs (2) and (3) of 
                        subsection (f), by striking ``(X)'' and 
                        inserting ``(Y)''; and
                          (v) in subsection (g), by striking ``2008'' 
                        each place such term appears and inserting 
                        ``2018''; and
          (4) in section 327--
                  (A) by striking the designation and heading for 
                subsection (a); and
                  (B) by striking subsection (b).

SEC. 303. HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING.

  Part D of title III (20 U.S.C. 1066 et seq.) is amended--
          (1) in section 343--
                  (A) in subsection (b)--
                          (i) in paragraph (1), by striking ``an escrow 
                        account'' and inserting ``a bond insurance 
                        fund''; and
                          (ii) in paragraph (8)--
                                  (I) in the matter preceding 
                                subparagraph (A), by striking 
                                ``establish an escrow account'' and 
                                inserting ``subject to subsection (f), 
                                establish a bond insurance fund''; and
                                  (II) in subparagraph (A), by striking 
                                ``the escrow account'' and inserting 
                                ``the bond insurance fund''; and
                          (iii) in paragraph (9)--
                                  (I) by striking ``the escrow 
                                account'' and inserting ``the bond 
                                insurance fund or the escrow account 
                                described in subsection (f)(1)(B)'' and
                                  (II) by striking ``such escrow 
                                account'' and inserting ``such bond 
                                insurance fund or escrow account'';
                          (iv) in subsection (c)--
                                  (I) in paragraph (2), by striking 
                                ``the escrow account described in 
                                subsection (b)(8)'' and inserting ``the 
                                bond insurance fund described in 
                                subsection (b)(8) and the escrow 
                                account described in subsection 
                                (f)(1)(B)'';
                                  (II) in paragraph (4), by striking 
                                ``and the escrow account'' and 
                                inserting ``, the bond insurance fund, 
                                and the escrow account described in 
                                subsection (f)(1)(B)''; and
                                  (III) in paragraph (5)(B), by 
                                striking ``and the escrow account'' and 
                                inserting ``, the bond insurance fund, 
                                and the escrow account described in 
                                subsection (f)(1)(B)''; and
                          (v) by adding at the end the following:
  ``(f) Applicability of Bond Insurance Fund and Escrow Account and 
Special Rules.--
          ``(1) Applicability of bond insurance fund and escrow 
        account.--Except as provided in paragraph (2)--
                  ``(A) the bond insurance fund established under 
                subsection (b)(8) on the date of enactment of the 
                PROSPER Act shall be made available with respect to 
                loans made under this part on or after such date; and
                  ``(B) the escrow account established under subsection 
                (b)(8) before the date of enactment of the PROSPER Act 
                and as in effect on the day before such date of 
                enactment shall be made available with respect to loans 
                made under this part before the date of enactment of 
                the PROSPER Act.
          ``(2) Special rules.--Notwithstanding paragraph (1)--
                  ``(A) in a case in which the amount in the bond 
                insurance fund described in paragraph (1)(A) is 
                insufficient to make payments of principal and interest 
                on bonds under subsection (b)(8)(B)(i) in the event of 
                delinquency in loan repayment on loans made under this 
                part on or after the date of enactment of the PROSPER 
                Act, amounts in the escrow fund described in paragraph 
                (1)(B) shall be made available to the Secretary to make 
                such payments;
                  ``(B) in a case in which the amount in the escrow 
                account described in paragraph (1)(B) is insufficient 
                to make payments of principal and interest on bonds 
                under subsection (b)(8)(B)(i) in the event of 
                delinquency in loan repayment on loans made under this 
                part before the date of enactment of the PROSPER Act, 
                amounts in the bond insurance fund described in 
                paragraph (1)(A) shall be made available to the 
                Secretary to make such payments; and
                  ``(C) in a case in which an institution is required 
                to return an amount equal to any remaining portion of 
                such institution's 5 percent deposit of loan proceeds 
                under subsection (b)(8)(B)(ii), the institution shall 
                return to the escrow account and the bond insurance 
                fund an amount that is proportionate to the amount that 
                was withdrawn from the escrow account and the bond 
                insurance fund, respectively, by such institution.'';
          (2) in section 345, by striking paragraph (9) and inserting 
        the following:
          ``(9) may, directly or by grant or contract, provide 
        financial counseling and technical assistance to eligible 
        institutions to prepare the institutions to qualify, apply for, 
        and maintain a capital improvement loan, including a loan under 
        this part; and''; and
          (3) in section 347(c), by striking paragraph (2) and 
        inserting the following:
          ``(2) Report.--On an annual basis, the Advisory Board shall 
        prepare and submit to the authorizing committees a report on 
        the status of the historically Black colleges and universities 
        described in paragraph (1)(A) and an overview of all loans in 
        the capital financing program, including the most recent loans 
        awarded in the fiscal year in which the report is submitted. 
        The report shall include administrative and legislative 
        recommendations, as needed, for addressing the issues related 
        to construction financing facing historically Black colleges 
        and universities.''.

SEC. 304. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.

  Part E of title III (20 U.S.C. 1067 et seq.) is amended--
          (1) in section 353(a)--
                  (A) in paragraph (1), by striking ``365(6)'' and 
                inserting ``359(6)'';
                  (B) in paragraph (2), by striking ``365(7)'' and 
                inserting ``359(7)'';
                  (C) in paragraph (3), by striking ``365(8)'' and 
                inserting ``359(8)''; and
                  (D) in paragraph (4), by striking ``365(9)'' and 
                inserting ``359(9)'';
          (2) by striking subpart 2;
          (3) by redesignating subpart 3 as subpart 2 and redesignating 
        sections 361 through 365 as sections 355 through 359, 
        respectively;
          (4) in section 355 (as so redesignated), by striking 
        paragraph (5);
          (5) in section 356(a) (as so redesignated), by striking 
        ``determined under section 361)'' and inserting ``determined 
        under section 355)''; and
          (6) in section 359(2) (as so redesignated)--
                  (A) by inserting ``American'' after ``Black''; and
                  (B) by striking ``Hispanic (including'' and inserting 
                ``Hispanic American (including''.

SEC. 305. STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 
                    AND OTHER MINORITY-SERVING INSTITUTIONS.

   Section 371 (20 U.S.C. 1067q) is amended--
          (1) in subsection (b)(2)(D)(iii), by striking ``section 
        311(c)'' and inserting ``section 311(b)''; and
          (2) in subsection (c)(9)(F)(ii), by striking ``part A of''.

SEC. 306. GENERAL PROVISIONS.

  Part G of title III (20 U.S.C. 1068 et seq.) is amended--
          (1) in section 391(b)--
                  (A) in paragraph (1), by striking ``institutional 
                management'' and all that follows through the semicolon 
                at the end and inserting ``institutional management, 
                and use the grant to provide for, and lead to, 
                institutional self-sustainability and growth (including 
                measurable objectives for the institution and the 
                Secretary to use in monitoring the effectiveness of 
                activities under this title);'';
                  (B) in paragraph (7)--
                          (i) by striking subparagraph (C) and 
                        redesignating subparagraphs (D) and (E) as 
                        subparagraphs (C) and (D), respectively; and
                          (ii) in subparagraph (D) (as so 
                        redesignated), strike ``and'' at the end;
                  (C) by striking paragraph (8) and inserting the 
                following:
          ``(8) set forth a 5-year plan for improving the assistance 
        provided by the institution; and''; and
                  (D) by adding at the end the following:
          ``(9) submit such enrollment data as may be necessary to 
        demonstrate that the institution is a minority-serving 
        institution.'';
          (2) in section 392--
                  (A) in subsection (b)--
                          (i) in the subsection heading, after 
                        ``Expenditures'' insert ``; Completion Rates'';
                          (ii) in paragraph (1), insert ``or 
                        312(b)(3)'' after ``312(b)(1)(B)''; and
                          (iii) in paragraph (2)--
                                  (I) in the matter preceding 
                                subparagraph (A)--
                                          (aa) by inserting ``or 
                                        312(b)(3)'' after 
                                        ``312(b)(1)(B)''; and
                                          (bb) by inserting 
                                        ``American'' after 
                                        ``Hispanic''; and
                                  (II) in subparagraph (A), by 
                                inserting ``or section 312(b)(3)'' 
                                after ``312(b)(1)''; and
                  (B) by striking subsection (c) and inserting the 
                following:
  ``(c) Waiver Authority With Respect to Institutions Located in an 
Area Affected by a Major Disaster.--
          ``(1) Waiver authority.--Notwithstanding any other provision 
        of law, unless enacted with specific reference to this section, 
        in the case of a major disaster, the Secretary may waive for 
        affected institutions--
                  ``(A) the eligibility data requirements set forth in 
                section 391(d) and section 521(e);
                  ``(B) the allotment requirements under section 324; 
                and
                  ``(C) the use of the funding formula developed 
                pursuant to section 326(f)(3);
          ``(2) Definitions.--In this subsection:
                  ``(A) Affected institution.--The term `affected 
                institution' means an institution of higher education 
                that--
                          ``(i) is--
                                  ``(I) a part A institution (which 
                                term shall have the meaning given the 
                                term `eligible institution' under 
                                section 312(b) or section 502(a)(6)); 
                                or
                                  ``(II) a part B institution, as such 
                                term is defined in section 322(2), or 
                                as identified in section 326(e);
                          ``(ii) is located in an area affected by a 
                        major disaster; and
                          ``(iii) is able to demonstrate that, as a 
                        result of the impact of a major disaster, the 
                        institution--
                                  ``(I) incurred physical damage;
                                  ``(II) has pursued collateral source 
                                compensation from insurance, the 
                                Federal Emergency Management Agency, 
                                and the Small Business Administration, 
                                as appropriate; and
                                  ``(III) was not able to fully reopen 
                                in existing facilities or to fully 
                                reopen to the pre-disaster enrollment 
                                levels.
                  ``(B) Major disaster.--The term `major disaster' has 
                the meaning given such term in section 102(2) of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5122(2)).''; and
          (3) in section 399, by striking subsection (a) and inserting 
        the following:
  ``(a) Authorizations.--
          ``(1) Part a.--(A) There are authorized to be appropriated to 
        carry out section 316, $27,599,000 for each of fiscal years 
        2019 through 2024.
          ``(B) There are authorized to be appropriated to carry out 
        section 317, $13,802,000 for each of fiscal years 2019 through 
        2024.
          ``(C) There are authorized to be appropriated to carry out 
        section 318, $9,942,000 for each of fiscal years 2019 through 
        2024.
          ``(D) There are authorized to be appropriated to carry out 
        section 319, $3,348,000 for each of fiscal years 2019 through 
        2024.
          ``(E) There are authorized to be appropriated to carry out 
        section 320, $3,348,000 for each of fiscal years 2019 through 
        2024.
          ``(2) Part b.--(A) There are authorized to be appropriated to 
        carry out part B (other than section 326), $244,694,000 for 
        each of fiscal years 2019 through 2024.
          ``(B) There are authorized to be appropriated to carry out 
        section 326, $63,281,000 for each of fiscal years 2019 through 
        2024.
          ``(3) Part d.--There are authorized to be appropriated to 
        carry out part D, $20,484,000 for each of fiscal years 2019 
        through 2024. Of the amount authorized, 1.63 percent shall be 
        reserved for administrative expenses.
          ``(4) Part e.--There are authorized to be appropriated to 
        carry out subpart 1 of part E, $9,648,000 for each of fiscal 
        years 2019 through 2024.''.

                      TITLE IV--STUDENT ASSISTANCE

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

SEC. 401. FEDERAL PELL GRANTS.

  (a) Reauthorization.--Section 401(a)(1) (20 U.S.C. 1070a(a)(1)) is 
amended--
          (1) by striking ``fiscal year 2017'' and inserting ``fiscal 
        year 2024''; and
          (2) by inserting ``an eligible program at'' after 
        ``attendance at''.
  (b) Federal Pell Grant Bonus.--
          (1) Amendments.--Section 401(b) (20 U.S.C. 1070a(b)) is 
        amended--
                  (A) in paragraph (7)(A)(iii)--
                          (i) by inserting ``and paragraph (9)'' after 
                        ``this paragraph''; and
                          (ii) by inserting before the semicolon at the 
                        end the following: ``and to provide the 
                        additional amount required by paragraph (9)''; 
                        and
                  (B) by adding at the end the following:
          ``(9) Federal pell grant bonus.--
                  ``(A) In general.--Notwithstanding any other 
                provision of this subsection and from the amounts made 
                available pursuant to paragraph (7)(A)(iii) for the 
                purposes of this paragraph, an eligible student who is 
                receiving a Federal Pell Grant for an award year shall 
                receive an amount in addition to such Federal Pell 
                Grant for each payment period of such award year for 
                which the student--
                          ``(i) is receiving such Federal Pell Grant as 
                        long as the amount of such Federal Pell Grant 
                        does not exceed the maximum amount of a Federal 
                        Pell Grant award determined under paragraph 
                        (2)(A) for such award year; and
                          ``(ii) is carrying a work load that--
                                  ``(I) is greater than the normal 
                                full-time work load for the course of 
                                study the student is pursuing, as 
                                determined by the institution of higher 
                                education; and
                                  ``(II) will lead to the completion of 
                                not less than 30 credit hours (or the 
                                equivalent coursework) upon the 
                                completion of the final payment period 
                                for which the student is receiving the 
                                Federal Pell Grant described in clause 
                                (i).
                  ``(B) Amount of bonus.--The amount provided to an 
                eligible student under subparagraph (A) for an award 
                year may not exceed $300, which shall be equally 
                divided among each payment period of such award year 
                described in clauses (i) and (ii) of subparagraph 
                (A).''.
          (2) Effective date.--The amendments made by paragraph (1) 
        shall take effect with respect to award year 2018-2019 and each 
        succeeding award year.
  (c) Period of Eligibility for Grants.--Section 401(c) (20 U.S.C. 
1070a(c)) is amended by adding at the end the following:
  ``(6)(A) The Secretary shall issue to each student receiving a 
Federal Pell Grant, an annual status report which shall--
          ``(i) inform the student of the remaining period during which 
        the student may receive Federal Pell Grants in accordance with 
        paragraph (5), and provide access to a calculator to assist the 
        student in making such determination;
          ``(ii) include an estimate of the Federal Pell Grant amounts 
        which may be awarded for such remaining period based on the 
        student's award amount determined under subsection (b)(2)(A) 
        for the most recent award year;
          ``(iii) explain how the estimate was calculated and any 
        assumptions underlying the estimate;
          ``(iv) explain that the estimate may be affected if there is 
        a change--
                  ``(I) in the student's financial circumstances; or
                  ``(II) the availability of Federal funding; and
          ``(v) describe how the remaining period during which the 
        student may receive Federal Pell Grants will be affected by 
        whether the student is enrolled as a full-time student.
  ``(B) Nothing in this paragraph shall be construed to prohibit an 
institution from offering additional counseling to a student with 
respect to Federal Pell Grants, but such counseling shall not delay or 
impede disbursement of a Federal Pell Grant award to the student.''.
  (d) Distribution of Grants to Students.--Section 401(e) (20 U.S.C. 
1070a(e)) is amended by striking the first sentence and inserting 
``Payments under this section shall be made in the same manner as 
disbursements under section 465(a).''.
  (e) Institutional Ineligibility Based on Default Rates.--Section 
401(j) of such Act (20 U.S.C. 1070a(j)) is amended by adding at the end 
the following:
          ``(3) Sunset.--The provisions of this subsection shall not 
        apply after the transition period described in section 
        481B(e)(3).''.
  (f) Prevention of Fraud.--Section 401 (20 U.S.C. 1070a) is amended by 
adding at the end the following:
  ``(k) Prevention of Fraud.--
          ``(1) Prohibition of awards.--
                  ``(A) In general.--No Federal Pell Grant shall be 
                awarded under this subpart to any student who--
                          ``(i) received a Federal Pell Grant for 3 
                        award years; and
                          ``(ii) for each such award year, was enrolled 
                        in an institution of higher education and did 
                        not earn any academic credit for which the 
                        Federal Pell Grant was provided.
                  ``(B) Waiver.--The student financial aid 
                administrator at an institution of higher education may 
                waive the requirement of subparagraph (A) for a 
                student, if the financial aid administrator--
                          ``(i) determines that the student was unable 
                        to earn any academic credit as described in 
                        subparagraph (A)(ii) due to circumstances 
                        beyond the student's control; and
                          ``(ii) makes and documents such a 
                        determination on an individual student basis.
                  ``(C) Definition of circumstances beyond a student's 
                control.--For purposes of this paragraph, the term 
                `circumstances beyond the student's control', when used 
                with respect to an individual student--
                          ``(i) may include the student withdrawing 
                        from an institution of higher education due to 
                        illness; and
                          ``(ii) shall not include the student 
                        withdrawing from an institution of higher 
                        education to avoid a particular grade.
          ``(2) Secretarial discretion to stop awards.--With respect to 
        a student who receives a disbursement of a Federal Pell Grant 
        for a payment period of an award year and whom the Secretary 
        determines has had an unusual enrollment history, the Secretary 
        may prevent such student from receiving any additional 
        disbursements of such Federal Pell Grant for such award year 
        until the student financial aid administrator at the student's 
        institution of higher education determines that the student's 
        enrollment history should not be considered an unusual 
        enrollment history.''.
  (g) Report on Costs of Federal Pell Grant Program.--Section 401 (20 
U.S.C. 1070a), as amended by subsections (a) through (f), is further 
amended by adding at the end the following:
  ``(l) Report on Costs of Federal Pell Grant Program.--Not later than 
October 31 of each year, the Secretary shall prepare and submit a 
report to the authorizing committees that includes the following 
information with respect to spending for the Federal Pell Grant program 
for the preceding fiscal year:
          ``(1) The total obligations and expenditures for the program 
        for such fiscal year.
          ``(2) A comparison of the total obligations and expenditures 
        for the program for such fiscal year--
                  ``(A) to the most recently available Congressional 
                Budget Office baseline for the program; and
                  ``(B) in the case in which such fiscal year is fiscal 
                year 2019, 2020, 2021, 2022, 2023, or 2024, to the 
                Congressional Budget Office cost estimate for the 
                program included in the report of the Committee on 
                Education and the Workforce of the House of 
                Representatives accompanying the PROSPER Act, as 
                approved by the Committee.
          ``(3) The total obligations and expenditures for the maximum 
        Federal Pell Grant for which a student is eligible, as 
        specified in the last enacted appropriation Act applicable to 
        such fiscal year.
          ``(4) A comparison of the total obligations and expenditures 
        for the maximum Federal Pell Grant for which a student is 
        eligible, as specified in the last enacted appropriation Act 
        applicable to such fiscal year--
                  ``(A) to the most recently available Congressional 
                Budget Office baseline for such maximum Federal Pell 
                Grant; and
                  ``(B) in the case in which such fiscal year is fiscal 
                year 2019, 2020, 2021, 2022, 2023, or 2024, to the 
                Congressional Budget Office cost estimate for such 
                maximum Federal Pell Grant included in the report of 
                the Committee on Education and the Workforce of the 
                House of Representatives accompanying the PROSPER Act, 
                as approved by the Committee.
          ``(5) The total mandatory obligations and expenditures for 
        the amount of the increase in such maximum Federal Pell Grant 
        required by subsection (b)(7)(B) for such fiscal year.
          ``(6) A comparison of the total mandatory obligations and 
        expenditures for the amount of the increase in such maximum 
        Federal Pell Grant required by subsection (b)(7)(B)--
                  ``(A) to the most recently available Congressional 
                Budget Office baseline for the increase; and
                  ``(B) in the case in which such fiscal year is fiscal 
                year 2019, 2020, 2021, 2022, 2023, or 2024, to the 
                Congressional Budget Office cost estimate for the 
                increase included in the report of the Committee on 
                Education and the Workforce of the House of 
                Representatives accompanying the PROSPER Act, as 
                approved by the Committee.
          ``(7) The total mandatory obligations and expenditures for 
        the Federal Pell Grant Bonus required by subsection (b)(9) for 
        such fiscal year.
          ``(8) A comparison of the total mandatory obligations and 
        expenditures for the Federal Pell Grant Bonus required by 
        subsection (b)(9) for such fiscal year--
                  ``(A) to the most recently available Congressional 
                Budget Office baseline for such bonus; and
                  ``(B) in the case in which such fiscal year is fiscal 
                year 2019, 2020, 2021, 2022, 2023, or 2024, to the 
                Congressional Budget Office cost estimate for such 
                bonus included in the report of the Committee on 
                Education and the Workforce of the House of 
                Representatives accompanying the PROSPER Act, as 
                approved by the Committee.''.
  (h) Study on Federal Pell Grant Bonus.--Section 401 (20 U.S.C. 
1070a), as amended by subsections (a) through (g), is further amended 
by adding at the end the following:
  ``(m) Report and Study on Federal Pell Grant Bonus.--
          ``(1) Report.--
                  ``(A) In general.--The Secretary shall report 
                annually, in accordance with subparagraph (C), on the 
                Federal Pell Grant Bonus required by subsection (b)(9).
                  ``(B) Elements.--Each report required under 
                subparagraph (A) shall include an assessment of the 
                following:
                          ``(i) The number of students who received the 
                        Federal Pell Grant Bonus under subsection 
                        (b)(9).
                          ``(ii) Of the students counted under clause 
                        (i)--
                                  ``(I) the number of such students who 
                                obtained a degree or certificate within 
                                the normal time to completion for the 
                                program for which the Federal Pell 
                                Grant Bonus was awarded; and
                                  ``(II) the number of such students 
                                who obtained a degree or certificate--
                                          ``(aa) within 4 years of 
                                        beginning the program of study 
                                        for which the Federal Pell 
                                        Grant Bonus was awarded;
                                          ``(bb) within 5 years of 
                                        beginning such program of 
                                        study; and
                                          ``(cc) within 6 years of 
                                        beginning such program of 
                                        study.
                  ``(C) Submission of reports.--
                          ``(i) Initial report.--Not later than one 
                        year after the first cohort of students 
                        described in subparagraph (B)(i) is expected to 
                        complete their program of study, the Secretary 
                        shall submit to the authorizing committees an 
                        initial report under subparagraph (A).
                          ``(ii) Annual updates.--On an annual basis, 
                        the Secretary shall update the report under 
                        subparagraph (A) and submit the updated report 
                        to the authorizing committees.
          ``(2) Study.--Not later than 18 months after the date of the 
        submission of the initial report under paragraph (1)(C)(i), the 
        Comptroller General of the United States shall complete a study 
        on the impact of the Federal Pell Grant Bonus required under 
        subsection (b)(9). The study shall include an assessment of the 
        following:
                  ``(A) Of the students who received the Federal Pell 
                Grant Bonus, the number of such students who had a 
                lower volume of student loans upon completion of their 
                program of study compared to students who received a 
                Federal Pell Grant but did not receive the Federal Pell 
                Grant Bonus.
                  ``(B) Whether students who received the Federal Pell 
                Grant Bonus took an increased courseload as a result of 
                the availability of the Federal Pell Grant Bonus.
                  ``(C) The completion rate of students who received 
                the Federal Pell Grant Bonus compared to the completion 
                rate of students who did not receive the bonus.''.

SEC. 402. FEDERAL TRIO PROGRAMS.

  (a) Program Authority; Authorization of Appropriations.--Section 402A 
(20 U.S.C. 1070a-11) is amended--
          (1) in subsection (c)--
                  (A) by amending subparagraph (A) of paragraph (2) to 
                read as follows:
                  ``(A) Accountability for outcomes.--In making grants 
                under this chapter, the Secretary shall comply with the 
                following requirements:
                          ``(i) The Secretary shall consider each 
                        applicant's prior success in achieving high 
                        quality service delivery, as determined under 
                        subsection (f), under the particular program 
                        for which funds are sought. The level of 
                        consideration given the factor of prior success 
                        in achieving high quality service delivery 
                        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 such 
                        consideration.
                          ``(ii) The Secretary shall not give points 
                        for prior success in achieving high quality 
                        service delivery to any current grantee that, 
                        during the then most recent period for which 
                        funds were provided, did not meet or exceed two 
                        or more objectives established in the eligible 
                        entity's application based on the performance 
                        measures described in subsection (f).
                          ``(iii) From the amounts awarded under 
                        subsection (g) for a program under this chapter 
                        (other than a program under sections 402G and 
                        402H) for any fiscal year in which the 
                        Secretary conducts a competition for the award 
                        of grants or contracts under such programs, the 
                        Secretary shall reserve not less than 10 
                        percent of such available amount to award 
                        grants or contracts to applicants who have not 
                        previously received a grant or contract under 
                        this chapter. If the Secretary determines that 
                        there are an insufficient number of qualified 
                        applicants to use the full amount reserved 
                        under the preceding sentence, the Secretary 
                        shall use the remainder of such amount to award 
                        grants or contracts to applicants who have 
                        previously received a grant or contract under 
                        this chapter.'';
                  (B) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``as provided in 
                                subparagraph (B)'' and inserting ``as 
                                provided in subparagraph (C)'';
                                  (II) by striking ``experience'' and 
                                inserting ``success in achieving high 
                                quality service delivery'';
                          (ii) by redesignating subparagraph (B) as 
                        subparagraph (C); and
                          (iii) by inserting after subparagraph (A) the 
                        following new subparagraph:
          ``(B) To ensure that congressional priorities in conducting 
        competitions for grants and contracts under this chapter are 
        implemented, the Secretary shall not impose additional criteria 
        for the prioritization of applications for such grants or 
        contracts (including additional competitive, absolute, or other 
        criteria) beyond the criteria described in this chapter.'';
                  (C) in paragraph (6)--
                          (i) by striking the period at the end of the 
                        second sentence and inserting ``, as long as 
                        the program is serving a different population 
                        or a different campus.'';
                          (ii) by striking ``the programs authorized 
                        by'' and inserting ``sections 402B, 402C, 402D, 
                        and 402F of'';
                          (iii) by striking ``The Secretary shall 
                        encourage'' and inserting the following:
                  ``(A) The Secretary shall encourage'';
                          (iv) by striking ``The Secretary shall 
                        permit'' and inserting the following:
                  ``(B) The Secretary shall permit'';
                  (D) in paragraph (7), by striking ``8 months'' each 
                place it appears and inserting ``90 days'';
                  (E) in paragraph (8)--
                          (i) in subparagraph (A)--
                                  (I) in the matter preceding clause 
                                (i), by striking ``Not later than 180 
                                days after the date of enactment of the 
                                Higher Education Opportunity Act,'' and 
                                inserting ``Not later than 90 days 
                                before the commencement of each 
                                competition for a grant under this 
                                chapter,'';
                                  (II) in clause (iii), by striking 
                                ``prior experience points for high 
                                quality service delivery are awarded'' 
                                and inserting ``application scores are 
                                adjusted for prior success in achieving 
                                high quality service delivery''; and
                                  (III) in clause (v), by striking 
                                ``prior experience points for'' and 
                                inserting ``the adjustment in scores 
                                for prior success in achieving'';
                          (ii) by striking subparagraph (B) and 
                        redesignating subparagraph (C) as subparagraph 
                        (B); and
                          (iii) in subparagraph (B), as so 
                        redesignated--
                                  (I) in clause (iii)--
                                          (aa) in the matter preceding 
                                        subclause (I), by striking 
                                        ``prior experience points for'' 
                                        and inserting ``points for 
                                        prior success in achieving''; 
                                        and
                                          (bb) in subclause (II), by 
                                        striking ``prior experience 
                                        points'' and inserting ``points 
                                        for prior success in achieving 
                                        high quality service 
                                        delivery''; and
                                  (II) in clause (vi), by inserting 
                                before the period at the end the 
                                following: ``from funds reserved under 
                                subsection (g)''; and
                  (F) by adding at the end the following:
          ``(9) Matching requirement.--
                  ``(A) In general.--The Secretary shall not approve an 
                application submitted under section 402B, 402C, 402D, 
                402E, or 402F unless such application--
                          ``(i) provides that the eligible entity will 
                        provide, from State, local, institutional, or 
                        private funds, not less than 20 percent of the 
                        cost of the program, which matching funds may 
                        be provided in cash or in kind and may be 
                        accrued over the full duration of the grant 
                        award period, except that the eligible entity 
                        shall make substantial progress towards meeting 
                        the matching requirement in each year of the 
                        grant award period;
                          ``(ii) specifies the methods by which 
                        matching funds will be paid; and
                          ``(iii) includes provisions designed to 
                        ensure that funds provided under this chapter 
                        shall supplement and not supplant funds 
                        expended for existing programs.
                  ``(B) Special rule.--Notwithstanding the matching 
                requirement described in subparagraph (A), the 
                Secretary may by regulation modify the percentage 
                requirement described in subparagraph (A). The 
                Secretary may approve an eligible entity's request for 
                a reduced match percentage--
                          ``(i) at the time of application if the 
                        eligible entity demonstrates significant 
                        economic hardship that precludes the eligible 
                        entity from meeting the matching requirement; 
                        or
                          ``(ii) in response to a petition by an 
                        eligible entity subsequent to a grant award 
                        under section 402B, 402C, 402D, 402E, or 402F 
                        if the eligible entity demonstrates that the 
                        matching funds described in its application are 
                        no longer available and the eligible entity has 
                        exhausted all revenues for replacing such 
                        matching funds.''.
          (2) in subsection (d)(3), by adding at the end the following 
        new sentence: ``In addition, the Secretary shall host at least 
        one virtual, interactive education session using 
        telecommunications technology to ensure that any interested 
        applicants have access to technical assistance.'';
          (3) in subsection (e)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (C), by striking ``or'' 
                        at the end;
                          (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
          ``(E) documentation that the student has been determined to 
        be eligible for a Federal Pell Grant under section 401.''; and
                  (B) in paragraph (2)--
                          (i) in subparagraph (C), by striking ``or'' 
                        at the end;
                          (ii) in subparagraph (D), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
          ``(E) documentation that the student has been determined to 
        be eligible for a Federal Pell Grant under section 401.'';
          (4) in subsection (f)--
                  (A) in the heading of paragraph (1), by striking 
                ``prior experience'' and inserting ``accountability for 
                outcomes'';
                  (B) in paragraph (1) by striking ``experience of'' 
                and inserting ``success in achieving'';
                  (C) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) in clause (iv) by striking 
                                ``rigorous secondary school program of 
                                study that will make such students 
                                eligible for programs such as the 
                                Academic Competitiveness Grants 
                                Program'' and inserting ``secondary 
                                school program of study that will 
                                prepare such students to enter 
                                postsecondary education without the 
                                need for remedial education'';
                                  (II) by redesignating clauses (v) and 
                                (vi) as clauses (vi) and (vii), 
                                respectively; and
                                  (III) by inserting after clause (iv) 
                                the following new clause:
                          ``(v) the completion of financial aid 
                        applications, including the Free Application 
                        for Federal Student Aid described in section 
                        483(a) and college admission applications;'';
                          (ii) in subparagraph (B)--
                                  (I) by redesignating clauses (i), 
                                (ii), (iii), (iv), (v), (vi), and (vii) 
                                as subclauses (I), (II), (III), (IV), 
                                (VI), (VIII), and (IX), respectively;
                                  (II) by inserting after subclause 
                                (IV), as so redesignated, the 
                                following:
                                  ``(V) the enrollment of such students 
                                into a general educational development 
                                (commonly known as a `GED') program;''.
                                  (III) in subclause (VI), as so 
                                redesignated, by striking ``rigorous 
                                secondary school program of study that 
                                will make such students eligible for 
                                programs such as the Academic 
                                Competitiveness Grants Program'' and 
                                inserting ``secondary school program of 
                                study that will prepare such students 
                                to enter postsecondary education 
                                without the need for remedial 
                                education'';
                                  (IV) by inserting after subclause 
                                (VI), as so redesignated, the following 
                                new subclause:
                          ``(VII) the completion of financial aid 
                        applications, including the Free Application 
                        for Federal Student Aid described in section 
                        483(a) and college admission applications;'';
                                  (V) by striking ``(B) For programs 
                                authorized under section 402C,'' and 
                                inserting ``(B)(i) For programs 
                                authorized under section 402C, except 
                                in the case of projects that 
                                specifically target veterans,''; and
                                  (VI) by adding at the end the 
                                following new clause:
                  ``(ii) For programs authorized under section 402C 
                that specifically target veterans, the extent to which 
                the eligible entity met or exceeded the entity's 
                objectives for such program with respect to--
                          ``(I) the delivery of service to a total 
                        number of students served by the program, as 
                        agreed upon by the entity and the Secretary for 
                        the period;
                          ``(II) such students' academic performance, 
                        as measured by standardized tests;
                          ``(III) the retention and completion of 
                        participants in the project;
                          ``(IV) the provision of assistance to 
                        students served by the program in completing 
                        financial aid applications, including the Free 
                        Application for Federal Student Aid described 
                        in section 483(a) and college admission 
                        applications;
                          ``(V) the enrollment of such students in an 
                        institution of higher education; and
                          ``(VI) to the extent practicable, the 
                        postsecondary education completion rate of such 
                        students.'';
                          (iii) in subparagraph (C)(ii)--
                                  (I) in subclause (I), by striking 
                                ``in which such students were 
                                enrolled'' and inserting ``within six 
                                years of the initial enrollment of such 
                                students in the program'';
                                  (II) in subclause (II);
                                          (aa) in the matter preceding 
                                        item (aa), by striking ``offer 
                                        a baccalaureate degree'' and 
                                        inserting ``primarily offer 
                                        baccalaureate degrees''; and
                                          (bb) in item (aa), by 
                                        striking ``students; and'' and 
                                        inserting ``students within 4 
                                        years of the initial enrollment 
                                        of such students in the 
                                        program; or'';
                          (iv) in subparagraph (D)--
                                  (I) in clause (iii), by striking ``; 
                                and'' and inserting ``within two years 
                                of receiving a baccalaureate degree;'';
                                  (II) in clause (iv), by striking 
                                ``study and'' and all that follows 
                                through the period and inserting 
                                ``study; and''; and
                                  (III) by adding at the end the 
                                following new clause:
                          ``(v) the attainment of doctoral degrees by 
                        former program participants within 10 years of 
                        receiving a baccalaureate degree.''; and
                          (v) in subparagraph (E)(ii), by inserting ``, 
                        or re-enrollment,'' after ``enrollment'';
          (5) in subsection (g)--
                  (A) in the first sentence, by striking ``$900,000,000 
                for fiscal year 2009 and such sums as may be necessary 
                for'' and inserting ``$900,000,000 for fiscal year 2019 
                and'';
                  (B) in the second sentence--
                          (i) by striking ``no more than \1/2\ of 1'' 
                        and inserting ``not more than 1'';
                          (ii) by striking ``and to provide technical'' 
                        and inserting ``to provide technical''; and
                          (iii) by inserting before the period at the 
                        end the following: ``, and to support 
                        applications funded under the process outlined 
                        in subsection (c)(8)(B)''; and
                  (C) by striking the last sentence; and
          (6) in subsection (h)--
                  (A) by striking ``(5) Veteran eligibility.--No 
                veteran'' and inserting the following:
  ``(i) Veteran Eligibility.--(1) No Veteran'';
                  (B) in paragraph (6), by striking ``of paragraph 
                (5)'' and inserting ``of paragraph (1)'';
                  (C) by striking ``(6) Waiver.--The Secretary'' and 
                inserting the following:
  ``(2) The Secretary''.
  (b) Talent Search.--Section 402B (20 U.S.C. 1070a-12) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2), by striking ``and'' at the end;
                  (B) by redesignating paragraph (3) as paragraph (4); 
                and
                  (C) by inserting after paragraph (2) the following 
                new paragraph:
          ``(3) to advise such youths on the postsecondary institution 
        selection process, including consideration of the financial aid 
        awards offered and the potential loan burden required; and'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by inserting ``and, where 
                necessary, remedial education services'' after 
                ``academic tutoring services''; and
                  (B) by striking paragraph (6) and inserting the 
                following:
          ``(6) connections to education or counseling services 
        designed to--
                  ``(A) improve the financial literacy and economic 
                literacy of students or the students' parents in order 
                to aid them in making informed decisions about how to 
                best finance their postsecondary education; and
                  ``(B) assist students and families regarding career 
                choice.'';
          (3) in subsection (c)(2), by striking ``career'' and 
        inserting ``academic''; and
          (4) in subsection (d)--
                  (A) by redesignating paragraphs (2), (3), and (4) as 
                paragraphs (3), (4), and (5), respectively;
                  (B) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) require an assurance that the remaining youths 
        participating in the project proposed to be carried out in any 
        application be low-income individuals, first generation college 
        students, or students who have a high risk for academic 
        failure;'';
                  (C) in paragraph (4), as so redesignated--
                          (i) by inserting ``, section 402C,'' after 
                        ``under this section''; and
                          (ii) by striking ``and'' at the end;
                  (D) in paragraph (5), as so redesignated, by striking 
                the period at the end and inserting ``; and''; and
                  (E) by adding at the end the following:
          ``(6) require the grantee to maintain, to the extent 
        practicable, a record of any services participants receive 
        during the project year from another program under this chapter 
        or other federally funded programs serving similar populations 
        to minimize the duplication of services.''.
  (c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
          (1) in subsection (b)--
                  (A) by striking paragraph (1) and inserting:
          ``(1) academic tutoring, which may include instruction in 
        reading, writing, study skills, mathematics, science, and other 
        subjects and, where necessary, remedial education services, to 
        enable students to complete secondary or postsecondary 
        courses;''.
                  (B) in paragraph (4), by adding ``and'' at the end; 
                and
                  (C) by striking paragraphs (5) and (6) and inserting 
                the following:
          ``(5) education or counseling services designed to--
                  ``(A) improve the financial literacy and economic 
                literacy of students or the students' parents in order 
                to aid them in making informed decisions about how to 
                best finance their postsecondary education; and
                  ``(B) assist students and their families regarding 
                career choice.'';
          (2) in subsection (d)--
                  (A) in paragraph (1), by striking ``youth'' and 
                inserting ``participants'';
                  (B) in paragraph (2), by striking ``youth 
                participating in the project'' and inserting ``project 
                participants''; and
                  (C) in paragraph (5), by striking ``youth 
                participating in the project'' and inserting ``project 
                participants'';
          (3) in subsection (e)--
                  (A) in paragraph (4), by striking ``and'' at the end;
                  (B) by redesignating paragraph (5) as paragraph (6); 
                and
                  (C) by inserting after paragraph (4) the following:
          ``(5) require an assurance that individuals participating in 
        the project proposed in any application do not have access to 
        services from another project funded under this section, 
        section 402B, or section 402F;'';
                  (D) in paragraph (6), as so redesignated, by striking 
                the period at the end and inserting ``; and''; and
                  (E) by adding at the end the following:
          ``(7) for purposes of minimizing the duplication of services, 
        require that the grantee maintain, to the extent practicable, a 
        record of any services received by participants during the 
        program year from another program funded under this chapter, or 
        any other Federally funded program that serves populations 
        similar to the populations served by programs under this 
        chapter.''.
          (4) by striking subsection (g) and redesignating subsection 
        (h) as subsection (g).
  (d) Student Support Services.--Section 402D (20 U.S.C. 1070a-14) is 
amended--
          (1) in subsection (a)(3), by inserting ``low-income and first 
        generation college students, including'' after ``success of'';
          (2) in subsection (b)(4)--
                  (A) by striking ``, including financial'' and 
                inserting ``, including--
                  ``(A) financial''; and
                  (B) by adding at the end the following:
                  ``(B) basic personal income, household money 
                management, and financial planning skills; and
                  ``(C) basic economic decisionmaking skills;''; and
          (3) in subsection (e)--
                  (A) in paragraph (5), by striking ``and'' at the end;
                  (B) by redesignating paragraph (6) as paragraph (7);
                  (C) by inserting after paragraph (5) the following:
          ``(6) require the grantee to maintain, to the extent 
        practicable, a record of any services participants receive 
        during the project year from another program under this chapter 
        or other federally funded programs serving similar populations 
        to minimize the duplication of services; and''.
  (e) Postbaccalaureate Achievement Program Authority.--Section 402E 
(20 U.S.C. 1070a-15) is amended--
          (1) in subsection (b)(2), by striking ``summer internships'' 
        and inserting ``internships and faculty-led research 
        experiences''; and
          (2) in subsection (d)--
                  (A) in paragraph (3), by striking ``and'' at the end;
                  (B) in paragraph (4)--
                          (i) by striking ``summer'';
                          (ii) by striking the period at the end and 
                        inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(5) the grantee to maintain, to the extent practicable, a 
        record of any services participants receive during the project 
        year from another program under this chapter or other federally 
        funded program serving similar populations to minimize the 
        duplication of services.''; and
          (3) in subsection (g), by striking ``2009 through 2014'' and 
        inserting ``2019 through 2024''.
  (f) Educational Opportunity Centers.--Section 402F (20 U.S.C. 1070a-
16) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by inserting ``or re-enter'' 
                after ``pursue''; and
                  (B) in paragraph (3), by striking ``of students'' and 
                inserting ``of such persons'';
          (2) in subsection (b)(5), by striking ``students;'' and 
        inserting the following: ``students, including--
                  ``(A) financial planning for postsecondary education;
                  ``(B) basic personal income, household money 
                management, and financial planning skills; and
                  ``(C) basic economic decisionmaking skills;''; and
          (3) in subsection (c)--
                  (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively; and
                  (B) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) require an assurance that the remaining persons 
        participating in the project proposed to be carried out under 
        any application be low-income individuals or first generation 
        college students;'';
                  (C) in paragraph (3), as so redesignated, by striking 
                ``and'' at the end;
                  (D) in paragraph (4), as so redesignated, by striking 
                the period at the end and inserting ``; and''; and
                  (E) by adding at the end the following:
          ``(5) require the grantee to maintain, to the extent 
        practicable, a record of any services participants receive 
        during the project year from another program under this chapter 
        or other federally funded program serving similar populations 
        to minimize the duplication of services.''.
  (g) Staff Development Activities.--Section 402G(b) (20 U.S.C. 1070a-
17(b)) is amended--
          (1) in the matter preceding paragraph (1)--
                  (A) by inserting ``webinars and online classes,'' 
                after ``seminars, workshops,''; and
                  (B) by striking ``directors'' and inserting 
                ``staff''; and
          (2) in paragraph (3), by inserting ``and innovative'' after 
        ``model''.
  (h) Reports, Evaluations, and Grants for Project Improvement and 
Dissemination.--Subsection (b) of section 402H (20 U.S.C. 1070a-18) is 
amended to read as follows:
  ``(b) Evaluations.--
          ``(1) In general.--For the purpose of improving the 
        effectiveness of the programs 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 
                assisted under this chapter; and
                  ``(B) disseminate information on the impact of the 
                programs in increasing the education level of 
                participants, as well as other appropriate measures.
          ``(2) Issues to be evaluated.--The evaluations described in 
        paragraph (1) shall measure the effectiveness of programs 
        funded under this chapter in--
                  ``(A) meeting or exceeding the stated objectives 
                regarding the outcome criteria under subsection (f) of 
                section 402A;
                  ``(B) enhancing the access of low-income individuals 
                and first-generation college students to postsecondary 
                education;
                  ``(C) preparing individuals 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 programs funded under this chapter of increasing 
        access to, and retention of, students in postsecondary 
        education.
          ``(4) Results.--The Secretary shall submit to the authorizing 
        committees--
                  ``(A) an interim report on the progress and 
                preliminary results of the evaluation of each program 
                funded under this chapter not later than 2 years 
                following the date of enactment of the PROSPER Act; and
                  ``(B) a final report not later than 3 years following 
                the date of enactment of such Act.
          ``(5) Public availability.--All reports and underlying data 
        gathered pursuant to this subsection shall be made available to 
        the public upon request, in a timely manner following 
        submission of the applicable reports under this subsection, 
        except that any personally identifiable information with 
        respect to a student participating in a program or project 
        assisted under this chapter shall not be disclosed or made 
        available to the public.''.
  (i) IMPACT Grants.--Part A of title IV (20 U.S.C. 1070 et seq.) is 
amended by inserting after section 402H (20 U.S.C. 1070a-28) the 
following:

``SEC. 402I. IMPACT GRANTS.

  ``(a) In General.--From funds reserved under subsection (e), the 
Secretary shall make grants to improve postsecondary access and 
completion rates for qualified individuals from disadvantaged 
backgrounds. These grants shall be known as innovative measures 
promoting postsecondary access and completion grants or `IMPACT Grants' 
and allow eligible entities to--
          ``(1) create, develop, implement, replicate, or take to scale 
        evidence-based, field-initiated innovations, including through 
        pay-for-success initiatives, to serve qualified individuals 
        from disadvantaged backgrounds and improve student outcomes; 
        and
          ``(2) rigorously evaluate such innovations, in accordance 
        with subsection (d).
  ``(b) Description of Grants.--The grants described in subsection (a) 
shall include--
          ``(1) early-phase grants to fund the development, 
        implementation, and feasibility testing of a program, which 
        prior research suggests has a promise, for the purpose of 
        determining whether the program can successfully improve 
        postsecondary access and completion rates;
          ``(2) mid-phase grants to fund implementation and a rigorous 
        evaluation of a program that has been successfully implemented 
        under an early-phase grant described in paragraph (1); and
          ``(3) expansion grants to fund implementation and a rigorous 
        replication evaluation of a program that has been found to 
        produce sizable, important impacts under a mid-phase grant 
        described in paragraph (2) for the purposes of--
                  ``(A) determining whether such outcomes can be 
                successfully reproduced and sustained over time; and
                  ``(B) identifying the conditions in which the project 
                is most effective.
  ``(c) Requirements for Approval of Applications.--To receive a grant 
under this section, an eligible entity shall submit an application to 
the Secretary at such time, and in such manner as the Secretary may 
require, which shall include--
          ``(1) an assurance that not less than two-thirds of the 
        individuals who will participate in the program proposed to be 
        carried out with the grant will be--
                  ``(A) low-income individuals who are first generation 
                college students; or
                  ``(B) individuals with disabilities;
          ``(2) an assurance that any other individuals (not described 
        in paragraph (1)) who will participate in such proposed program 
        will be--
                  ``(A) low-income individuals;
                  ``(B) first generation college students; or
                  ``(C) individuals with disabilities;
          ``(3) a detailed description of the proposed program, 
        including how such program will directly benefit students;
          ``(4) the number of projected students to be served by the 
        program;
          ``(5) how the program will be evaluated; and
          ``(6) an assurance that the individuals participating in the 
        project proposed are individuals who do not have access to 
        services from another programs funded under this section.
  ``(d) Evaluation.--Each eligible entity receiving a grant under this 
section shall conduct an independent evaluation of the effectiveness of 
the program carried out with such grant and shall submit to the 
Secretary, on an annual basis, a report that includes--
          ``(1) a description of how funds received under this section 
        were used;
          ``(2) the number of students served by the project carried 
        out under this section; and
          ``(3) a quantitative analysis of the effectiveness of the 
        project.
  ``(e) Funding.--From amounts appropriated under section 402A(g), the 
Secretary shall reserve not less than 10 percent of such funds to carry 
out this section.''.

SEC. 403. GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
                    PROGRAMS.

  (a) Early Intervention and College Awareness Program.--Section 404A 
(20 U.S.C. 1070a-21) is amended--
          (1) in subsection (a)(1), by striking ``academic support'' 
        and inserting ``academic support for college readiness'';
          (2) in subsection (b)--
                  (A) in paragraph (1), by inserting ``new'' before 
                ``awards''; and
                  (B) in paragraph (3)--
                          (i) by amending subparagraph (A) to read as 
                        follows:
                  ``(A) give priority to eligible entities that have a 
                prior, demonstrated commitment to early intervention 
                leading to college access and readiness through 
                collaboration and replication of successful strategies; 
                and''; and
                          (ii) in subparagraph (B), by striking ``the 
                        Higher Education Opportunity Act'' and 
                        inserting ``the PROSPER Act''; and
                  (C) by adding at the end the following:
          ``(4) Multiple award prohibition.--Eligible entities 
        described in subsection (c)(1) that receive a grant under this 
        chapter shall not be eligible to receive an additional grant 
        under this chapter until after the date on which the initial 
        grant period expires.''.
          (3) in subsection (c)(2)(B), by striking ``institutions or 
        agencies sponsoring programs authorized under subpart 4,''.
  (b) Applications.--Section 404C (20 U.S.C. 1070a-23) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)--
                          (i) in the matter preceding subparagraph 
                        (A)--
                                  (I) by striking ``, contain or be 
                                accompanied by such information or 
                                assurances,''; and
                                  (II) by striking ``, at a minimum'';
                          (ii) by amending subparagraph (B) to read as 
                        follows:
                  ``(B) describe, in the case of an eligible entity 
                described in section 404A(c)(2) that chooses to provide 
                scholarships, or an eligible entity described in 
                section 404A(c)(1)--
                          ``(i) the eligible entity's plan to establish 
                        or maintain a financial assistance program in 
                        accordance with the requirements of section 
                        404E, including any eligibility criteria other 
                        than the criteria described in section 404E(g), 
                        such as--
                                  ``(I) demonstrating financial need;
                                  ``(II) meeting and maintaining 
                                satisfactory academic progress; and
                                  ``(III) other criteria aligned with 
                                State and local goals to increase 
                                postsecondary readiness, access, and 
                                completion; and
                          ``(ii) how the eligible entity will meet the 
                        other requirements of section 404E;'';
                          (iii) by striking subparagraph (H); and
                          (iv) by redesignating subparagraphs (I) and 
                        (J) as subparagraphs (H) and (I), respectively; 
                        and
          (2) in subsection (b), by striking paragraph (2) and 
        inserting the following:
          ``(2) Special rule.--Notwithstanding the matching requirement 
        described in paragraph (1)(A), the Secretary may--
                  ``(A) at the time of application--
                          ``(i) approve a Partnership applicant's 
                        request for a waiver of up to 75 percent of the 
                        matching requirement for up to two years if the 
                        applicant demonstrates in its application a 
                        significant economic hardship that stems from a 
                        specific, exceptional, or uncontrollable event, 
                        such as a natural disaster, that has a 
                        devastating effect on the members of the 
                        Partnership and the community in which the 
                        project would operate;
                          ``(ii)(I) approve a Partnership applicant's 
                        request to waive up to 50 percent of the 
                        matching requirement for up to two years if the 
                        applicant demonstrates in its application a 
                        pre-existing and an on-going significant 
                        economic hardship that precludes the applicant 
                        from meeting its matching requirement; and
                          ``(II) provide tentative approval of an 
                        applicant's request for a waiver under 
                        subclause (I) for all remaining years of the 
                        project period;
                          ``(iii) approve a Partnership applicant's 
                        request in its application to match its 
                        contributions to its scholarship fund, 
                        established under section 404E, on the basis of 
                        two non-Federal dollars for every one dollar of 
                        Federal funds provided under this chapter; or
                          ``(iv) approve a request by a Partnership 
                        applicant that has three or fewer institutions 
                        of higher education as members to waive up to 
                        70 percent of the matching requirement if the 
                        Partnership applicant includes--
                                  ``(I) a fiscal agent that is eligible 
                                to receive funds under title V, or part 
                                B of title III, or section 316 or 317, 
                                or a local educational agency;
                                  ``(II) only participating schools 
                                with a 7th grade cohort in which at 
                                least 75 percent of the students are 
                                eligible for free or reduced-price 
                                lunch under the Richard B. Russell 
                                National School Lunch Act; and
                                  ``(III) only local educational 
                                agencies in which at least 50 percent 
                                of the students enrolled are eligible 
                                for free or reduced-price lunch under 
                                the Richard B. Russell National School 
                                Lunch Act; and
                  ``(B) after a grant is awarded, approve a Partnership 
                grantee's written request for a waiver of up to--
                          ``(i) 50 percent of the matching requirement 
                        for up to two years if the grantee demonstrates 
                        that--
                                  ``(I) the matching contributions 
                                described for those two years in the 
                                grantee's approved application are no 
                                longer available; and
                                  ``(II) the grantee has exhausted all 
                                funds and sources of potential 
                                contributions for replacing the 
                                matching funds; or
                          ``(ii) 75 percent of the matching requirement 
                        for up to two years if the grantee demonstrates 
                        that matching contributions from the original 
                        application are no longer available due to an 
                        uncontrollable event, such as a natural 
                        disaster, that has a devastating economic 
                        effect on members of the Partnership and the 
                        community in which the project would operate.
          ``(3) Additional terms.--
                  ``(A) On-going economic hardship.--In determining 
                whether a Partnership applicant is experiencing an on-
                going economic hardship that is significant enough to 
                justify a waiver under subparagraphs (A)(i) and 
                (A)(ii)(I) of paragraph (2), the Secretary may consider 
                documentation of the following:
                          ``(i) Severe distress in the local economy of 
                        the community to be served by the grant (e.g., 
                        there are few employers in the local area, 
                        large employers have left the local area, or 
                        significant reductions in employment in the 
                        local area).
                          ``(ii) Local unemployment rates that are 
                        higher than the national average.
                          ``(iii) Low or decreasing revenues for State 
                        and County governments in the area to be served 
                        by the grant.
                          ``(iv) Significant reductions in the budgets 
                        of institutions of higher education that are 
                        participating in the grant.
                          ``(v) Other data that reflect a significant 
                        economic hardship for the geographical area 
                        served by the applicant.
                  ``(B) Exhaustion of funds.--In determining whether a 
                Partnership grantee has exhausted all funds and sources 
                of potential contributions for replacing matching funds 
                under paragraph (2)(B), the secretary may consider the 
                grantee's documentation of key factors that have had a 
                direct impact on the grantee such as the following:
                          ``(i) A reduction of revenues from State 
                        government, County government, or the local 
                        educational agency.
                          ``(ii) An increase in local unemployment 
                        rates.
                          ``(iii) Significant reductions in the 
                        operating budgets of institutions of higher 
                        education that are participating in the grant.
                          ``(iv) A reduction of business activity in 
                        the local area (e.g., large employers have left 
                        the local area).
                          ``(v) Other data that reflect a significant 
                        decrease in resources available to the grantee 
                        in the local geographical area served by the 
                        grantee.
                  ``(C) Renewal of waiver.--A Partnership applicant 
                that receives a tentative approval of a waiver under 
                subparagraph (A)(ii)(II) of paragraph (2) for more than 
                two years under this paragraph must submit to the 
                Secretary every two years by such time as the Secretary 
                may direct documentation that demonstrates that--
                          ``(i) the significant economic hardship upon 
                        which the waiver was granted still exists; and
                          ``(ii) the grantee tried diligently, but 
                        unsuccessfully, to obtain contributions needed 
                        to meet the matching requirement.
                  ``(D) Multiple waivers.--If a grantee has received 
                one or more waivers under paragraph (2), the grantee 
                may request an additional waiver of the matching 
                requirement under this subsection not earlier than 60 
                days before the expiration of the grantee's existing 
                waiver.''.
  (c) Activities.--Section 404D (20 U.S.C. 1070a-24) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``financial aid 
                for'' and inserting ``financial aid, including loans, 
                grants, scholarships, and institutional aid for'';
                  (B) in paragraph (2) by striking ``rigorous and 
                challenging curricula and coursework, in order to'' and 
                inserting ``curricula and coursework designed to'';
                  (C) by redesignating paragraphs (3) and (4) as 
                paragraphs (5) and (6), respectively;
                  (D) by inserting after paragraph (2) the following:
          ``(3) Providing information to students and families about 
        the advantages of obtaining a postsecondary education.
          ``(4) Providing tutors and mentors, who may include adults or 
        former participants of a program under this chapter, for use by 
        eligible students in need.'';
                  (E) in paragraph (5), as so redesignated, by striking 
                ``Improving'' and inserting ``Providing supportive 
                services to improve''; and
          (2) in subsection (b)--
                  (A) by striking paragraph (1); and
                  (B) by redesignating paragraphs (2) through (15) as 
                paragraphs (1) through (14), respectively;
                  (C) in paragraph (3), as so redesignated, by striking 
                ``rigorous'' each place it appears;
                  (D) in paragraph (9), as so redesignated--
                          (i) by redesignating subparagraphs (E) 
                        through (K) as subparagraphs (F) through (L), 
                        respectively;
                          (ii) by inserting after subparagraph (D) the 
                        following:
                  ``(E) providing counseling or referral services to 
                address the behavioral, social-emotional, and mental 
                health needs of at-risk students;'';
                          (iii) in subparagraph (I), as so 
                        redesignated, by striking ``skills 
                        assessments'' and inserting ``skills, 
                        cognitive, non-cognitive, and credit-by-
                        examination assessments'';
                          (iv) in subparagraph (K), as so redesignated, 
                        by striking ``and'' at the end;
                          (v) in subparagraph (L), as so redesignated, 
                        by striking the period at the end and inserting 
                        ``; and''; and
                          (vi) by adding at the end the following:
                  ``(M) capacity building activities that create 
                college-going cultures in participating schools and 
                local education agencies.''; and
                  (E) by adding at the end the following:
          ``(15) Creating or expanding drop-out recovery programs that 
        allow individuals who drop out of school to complete a regular 
        secondary school diploma and begin college-level work.'';
          (3) in subsection (c)--
                  (A) in paragraph (3), by inserting ``and technical 
                assistance'' after ``administrative support''; and
                  (B) by striking paragraph (9); and
          (4) in subsection (e), by striking ``institutions and 
        agencies sponsoring programs authorized under subpart 4,''.
  (d) Scholarship Requirements.--Section 404E (20 U.S.C. 1070a-25) is 
amended--
          (1) in subsection (a)(1), by inserting ``described in section 
        404C(a)(2)(B)(i)'' after ``financial assistance program''; and
          (2) in subsection (e)(1), by striking ``an amount'' and all 
        that follows through the period at the end and inserting the 
        following: ``an estimated amount that is based on the 
        requirements of the financial assistance program of the 
        eligible entity described in section 404C(a)(2)(B)(i).''
  (e) Evaluation and Report.--Section 404G(b) (20 U.S.C. 1070a-27(b)) 
is amended--
          (1) in paragraph (1), by striking ``and'' at the end;
          (2) in paragraph (2), by striking the period at the end and 
        inserting ``; and''
          (3) by adding after paragraph (2) the following:
          ``(3) include the following metrics:
                  ``(A) the number of students completing the Free 
                Application for Federal Student Aid;
                  ``(B) the enrollment of participating students in 
                curricula and coursework designed to reduce the need 
                for remedial coursework at the postsecondary level;
                  ``(C) if applicable, the number of students receiving 
                a scholarship;
                  ``(D) the graduation rate of participating students 
                from high school;
                  ``(E) the enrollment of participating students into 
                postsecondary education; and
                  ``(F) such other information as the Secretary may 
                require.''.
  (f) Authorization of Appropriations.--Section 404H (20 U.S.C. 1070a-
28) is amended by striking ``$400,000,000 for fiscal year 2009 and such 
sums as may be necessary for each of the five succeeding fiscal years'' 
and inserting ``$339,754,000 for fiscal year 2019 and each of the five 
succeeding fiscal years''.

SEC. 404. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN 
                    MIGRANT AND SEASONAL FARMWORK.

  Section 418A(i) (20 U.S.C. 1070d--2(i)) is amended by striking 
``$75,000,000'' and all that follows through the period at the end and 
inserting ``$44,623,000 for each of fiscal years 2019 through 2024.''.

SEC. 405. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

  Section 419N (20 U.S.C. 1070e) is amended--
          (1) in the heading of paragraph (6) of subsection (b), by 
        striking ``Construction'' and inserting ``Rule of 
        construction''; and
          (2) in subsection (c)--
                  (A) in paragraph (4), by striking ``assisted'' and 
                inserting ``funded'';
                  (B) in paragraph (5)--
                          (i) by striking ``resources, including 
                        technical expertise'' and inserting 
                        ``resources, including non-Federal resources, 
                        technical expertise,'';
                          (ii) by striking ``the use of the'' and 
                        inserting ``these''; and
                  (C) in paragraph (9)--
                          (i) by inserting ``provisional status,'' 
                        after ``approval,''; and
                          (ii) by striking ``; and'' and inserting 
                        ``prior to serving children and families; 
                        and'';
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``local'' and inserting 
                        ``non-Federal, local,''; and
                          (ii) by striking ``and'' at the end;
                  (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(3) coordinate with other community programs where 
        appropriate to improve the quality and limit cost of the 
        campus-based program.'';
          (4) by amending subsection (e) to read as follows:
  ``(e) Reporting Requirements; Continuing Eligibility.--
          ``(1) Reporting requirements.--
                  ``(A) Reports.--Each institution of higher education 
                receiving a grant under this section shall report to 
                the Secretary annually. The Secretary shall annually 
                publish such reports on a publicly accessible website 
                of the Department of Education.
                  ``(B) Contents.--Each report shall include--
                          ``(i) data on the population served under 
                        this section, including the total number of 
                        children and families served;
                          ``(ii) information on sources of campus and 
                        community resources and the amount of non-
                        Federal funding used to help low-income 
                        students access child care services on campus;
                          ``(iii) documentation that the program meets 
                        applicable licensing, certification, approval, 
                        or registration requirements; and
                          ``(iv) a description of how funding was used 
                        to pursue the goals of this section determined 
                        by the institution under subsection (c).
          ``(2) Continuing eligibility.--The Secretary shall make 
        continuation awards under this section to an institution of 
        higher education only if the Secretary determines, on the basis 
        of the reports submitted under paragraph (1) and the 
        application from the institution, that the institution is--
                  ``(A) using funds only for authorized purposes;
                  ``(B) providing low-income students at the 
                institution with priority access to affordable, quality 
                child care services as provided under this section; and
                  ``(C) documenting a continued need for Federal 
                funding under this section, while demonstrating how 
                non-federal sources will be leveraged to support a 
                continuation award.''; and
          (5) in subsection (g), by striking ``such sums as may be 
        necessary for fiscal year 2009 and each of the five succeeding 
        fiscal years'' and inserting ``$15,134,000 for each of fiscal 
        years 2019 through 2024''.

SEC. 406. REPEALS.

  (a) Academic Competitiveness Grants.--Section 401A (20 U.S.C. 1070a-
1) is repealed.
  (b) Federal Supplemental Educational Opportunity Grants.--
          (1) Repeal.--Subpart 3 of part A of title IV (20 U.S.C. 1070b 
        et seq.) is repealed.
          (2) Effective date.--The repeal made by paragraph (1) shall 
        take effect on June 30, 2018.
          (3) Appropriations.--Notwithstanding paragraphs (1) and (2), 
        sums appropriated under section 413A for fiscal year 2018 shall 
        be available for payments to institutions of higher education 
        under such section (as in effect on June 29, 2018) until the 
        end of fiscal year 2019.
  (c) Leveraging Educational Assistance Partnership Program.--Subpart 4 
of part A of title IV (20 U.S.C. 1070c et seq.) is repealed.
  (d) Robert C. Byrd Honors Scholarship Program.--Subpart 6 of part A 
of title IV (20 U.S.C. 1070d-31 et seq.) is repealed.

SEC. 407. SUNSET OF TEACH GRANTS.

  Subpart 9 of part A of title IV (20 U.S.C. 1070g) is amended--
          (1) in section 420L(1) (20 U.S.C. 1070g(1), by striking 
        ``section 102'' and inserting ``section 102 (as in effect on 
        the day before the date of enactment of the PROSPER Act)'';
          (2) in section 420N (20 U.S.C. 1070g-2)--
                  (A) by amending subparagraph (B) of subsection (b)(1) 
                to read as follows:
                  ``(B) teach--
                          ``(i) in a public or other nonprofit private 
                        elementary school or secondary school, which, 
                        for the purpose of this paragraph and for that 
                        year--
                                  ``(I) has been determined by the 
                                Secretary (pursuant to regulations of 
                                the Secretary and after consultation 
                                with the State educational agency of 
                                the State in which the school is 
                                located) to be a school in which the 
                                number of children meeting a measure of 
                                poverty under section 1113(a)(5) of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6313(a)(5)), exceeds 
                                30 percent of the total number of 
                                children enrolled in such school; and
                                  ``(II) is in the school district of a 
                                local educational agency which is 
                                eligible in such year for assistance 
                                pursuant to part A of title I of the 
                                Elementary and Secondary Education Act 
                                of 1965 (20 U.S.C. 6311 et seq.); or
                          ``(ii) in one or more public, or nonprofit 
                        private, elementary schools or secondary 
                        schools or locations operated by an educational 
                        service agency that have been determined by the 
                        Secretary (pursuant to regulations of the 
                        Secretary and after consultation with the State 
                        educational agency of the State in which the 
                        educational service agency operates) to be a 
                        school or location at which the number of 
                        children taught who meet a measure of poverty 
                        under section 1113(a)(5) of the Elementary and 
                        Secondary Education Act of 1965 (20 U.S.C. 
                        6313(a)(5)), exceeds 30 percent of the total 
                        number of children taught at such school or 
                        location;''; and
                  (B) in subsection (c), by inserting ``(as in effect 
                on the day before the date of the enactment of the 
                PROSPER Act)'' after ``part D of title IV'';
          (3) in section 420M(a) (20 U.S.C. 1070g-1), by adding at the 
        end the following:
          ``(3) Termination.--
                  ``(A) Termination of program authority.--Except as 
                provided in paragraph (4), no new grants may be made 
                under this subpart after June 30, 2018.
                  ``(B) Limitation on funds.--
                          ``(i) In general.--No funds are authorized to 
                        be appropriated, and no funds may be obligated 
                        or expended under this Act or any other Act, to 
                        make a grant to a new recipient under this 
                        subpart.
                          ``(ii) New recipient defined.--For purposes 
                        of this subparagraph, the term `new recipient' 
                        means a teacher candidate who has not received 
                        a grant under this subpart for which the first 
                        disbursement was on or before June 30, 2018.
          ``(4) Student eligibility beginning with award year 2018.--
        With respect to a recipient of a grant under this subpart for 
        which the first disbursement was made on or before June 30, 
        2018, such recipient may receive additional grants under this 
        subpart until the earlier of--
                  ``(A) the date on which the recipient completes the 
                course of study for which the recipient received the 
                grant for which the first disbursement was made on or 
                before June 30, 2018; or
                  ``(B) the date on which the recipient receives the 
                total amount that the recipient may receive under this 
                subpart in accordance with subsection (d).''; and
          (4) in section 420O (20 U.S.C. 1070g-3)--
                  (A) by striking ``2008'' and inserting ``2008, and 
                ending on June 30, 2018''; and
                  (B) by adding at the end the following: ``Except as 
                provided in section 420M(a)(4), no funds shall be 
                available to the Secretary to carry out this subpart 
                after June 30, 2018.''.

             PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM

SEC. 421. FEDERAL DIRECT CONSOLIDATION LOANS.

  Section 428C (20 U.S.C. 1078-3) is amended--
          (1) in subsection (a)(4)(B), by inserting before the 
        semicolon at the end ``, as in effect on the day before the 
        date of enactment of the PROSPER Act and pursuant to section 
        461(a) of such Act''; and
          (2) in subsection (b)(1)(F)(ii)--
                  (A) in the matter preceding subclause (I), by 
                inserting ``, as in effect on the day before the date 
                of enactment of the PROSPER Act and pursuant to section 
                461(a) of such Act'' after ``part E'';
                  (B) in subclause (I), in the matter preceding item 
                (aa), by inserting ``, as so in effect,'' after ``part 
                E'';
                  (C) in subclause (I)(bb), by inserting ``, as so in 
                effect'' after ``section 464(c)(1)(A)'';
                  (D) in subclause (II), by inserting ``, as so in 
                effect'' after ``section 465(a)''; and
                  (E) in subclause (III)--
                          (i) by inserting ``, as so in effect'' after 
                        ``section 465''; and
                          (ii) by inserting ``, as so in effect'' after 
                        ``465(a)''.

SEC. 422. LOAN REHABILITATION.

  Section 428F(a)(5) (20 U.S.C. 1078-6) is amended by striking ``one 
time'' and inserting ``two times''.

SEC. 423. LOAN FORGIVENESS FOR TEACHERS.

  Section 428J(b)(1)(A) (20 U.S.C. 1078-10(b)(1)(A)) is amended by 
striking ``that qualifies under section 465(a)(2)(A) for loan 
cancellation for Perkins loan recipients who teach in such schools or 
locations'' and inserting ``described in section 420N(b)(1)(B)''.

SEC. 424. LOAN FORGIVENESS FOR SERVICE IN AREAS OF NATIONAL NEED.

  Section 428K (20 U.S.C. 1078-11) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (4)(B), by striking ``that qualifies 
                under section 465(a)(2)(A) for loan cancellation for 
                Perkins loan recipients who teach in such a school'' 
                and inserting ``described in section 420N(b)(1)(B)'';
                  (B) in paragraph (5)(B)(ii), by striking ``that 
                qualifies under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who teach in 
                such a school'' and inserting ``described in section 
                420N(b)(1)(B)'';
                  (C) in paragraph (7)(A), by striking ``that qualifies 
                under section 465(a)(2)(A) for loan cancellation for 
                Perkins loan recipients who teach in such a school'' 
                and inserting ``described in section 420N(b)(1)(B)'';
                  (D) in paragraph (8)(B), by striking ``that qualifies 
                under section 465(a)(2)(A) for loan cancellation for 
                Perkins loan recipients who teach in such a school'' 
                and inserting ``described in section 420N(b)(1)(B)'' ; 
                and
                  (E) in paragraph (16), by striking ``that qualify 
                under section 465(a)(2)(A) for loan cancellation for 
                Perkins loan recipients who teach in such a school'' 
                and inserting ``described in section 420N(b)(1)(B)''; 
                and
          (2) in subsection (g)(6)(B), by striking ``that qualifies 
        under section 465(a)(2)(A) for loan cancellation for Perkins 
        loan recipients who teach in such a school'' and inserting 
        ``described in section 420N(b)(1)(B)''.

SEC. 425. LOAN REPAYMENT FOR CIVIL LEGAL ASSISTANCE ATTORNEYS.

  Section 428L(b)(2)(A) (20 U.S.C. 1078-12(b)(2)(A)) is amended--
          (1) in clause (i), by inserting before the semicolon at the 
        end ``, as in effect on the day before the date of enactment of 
        the PROSPER Act and pursuant to section 461(a) of such Act''; 
        and
          (2) in clause (ii)(III), by inserting ``, as in effect on the 
        day before the date of enactment of the PROSPER Act and 
        pursuant to section 461(a) of such Act'' after ``part E'';

SEC. 426. SUNSET OF COHORT DEFAULT RATE AND OTHER CONFORMING CHANGES.

  (a) Requirements for the Secretary.--Section 430(e) (20 U.S.C. 
1080(e)) is amended by adding at the end the following:
          ``(4) Sunset.--The Secretary shall not be subject to the 
        requirements of this subsection after the transition period 
        described in section 481B(e)(3).''.
  (b) Eligible Institution Defined.--Section 435 (20 U.S.C. 1085) is 
amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``section 102'' and 
                inserting ``sections 101 and 102''; and
                  (B) by adding at the end the following:
          ``(9) Sunset.--No institution shall be subject to paragraph 
        (2) after the transition period described in section 
        481B(e)(3).'';
          (2) in subsection (m), by adding at the end the following:
          ``(5) Transition period; sunset.--
                  ``(A) Transition period.--During the transition 
                period, the cohort default rate for an institution 
                shall be calculated in the manner described in section 
                481B(e)(1).
                  ``(B) Sunset.--The Secretary shall not be subject, 
                and no institution shall be subject, to the 
                requirements of this subsection after the transition 
                period.
                  ``(C) Definition.--In this paragraph, the term 
                `transition period' has the meaning given the term in 
                section 481B(e)(3).''; and
          (3) in subsection (o)(1), by inserting ``, as in effect on 
        the day before the date of enactment of the PROSPER Act and 
        pursuant to section 461(a) of such Act'' after ``part E''.

SEC. 427. ADDITIONAL DISCLOSURES.

  Section 433(a) (20 U.S.C. 1083(a)) is amended--
          (1) in the matter preceding paragraph (1), by striking the 
        second sentence and inserting ``Any disclosure required by this 
        subsection shall be made on the Plain Language Disclosure Form 
        developed by the Secretary under section 455(p).'';
          (2) in paragraph (4), by striking ``the origination fee and'' 
        and inserting ``finance charges, the origination fee, and'';
          (3) by redesignating paragraphs (6) through (19) as 
        paragraphs (7) through (20), respectively; and
          (4) by inserting after paragraph (5), the following:
          ``(6) the annual percentage rate of the loan, as calculated 
        using the standard 10-year repayment term, and how interest 
        accrues and is capitalized during periods when the interest is 
        not paid by the borrower;''.

SEC. 428. CLOSED SCHOOL AND OTHER DISCHARGES.

  Section 437(c) (20 U.S.C. 1087) is amended--
          (1) in paragraph (1), by inserting ``and the borrower meets 
        the applicable requirements of paragraphs (6) through (8),'' 
        after ``such student's lender,'';
          (2) in paragraph (4), by inserting before the period at the 
        end ``, as in effect on the day before the date of enactment of 
        the PROSPER Act and pursuant to section 461(a) of such Act''; 
        and
          (3) by adding at the end the following:
          ``(6) Borrower qualifications for a closed school 
        discharge.--
                  ``(A) In general.--In order to qualify for the 
                discharge of a loan under this subsection due to the 
                closure of the institution in which the borrower was 
                enrolled, a borrower shall submit to the Secretary a 
                written request and sworn statement--
                          ``(i) that contains true factual assertions;
                          ``(ii) that is made by the borrower under 
                        penalty of perjury, and that may or may not be 
                        notarized;
                          ``(iii) under which the borrower (or the 
                        student on whose behalf a parent borrowed) 
                        states--
                                  ``(I) that the borrower or the 
                                student--
                                          ``(aa) received, on or after 
                                        January 1, 1986, the proceeds 
                                        of a loan made, insured, or 
                                        guaranteed under this title to 
                                        attend a program of study at an 
                                        institution of higher 
                                        education;
                                          ``(bb)(AA) did not complete 
                                        the program of study because 
                                        the institution closed while 
                                        the student was enrolled; or
                                          ``(BB) the student withdrew 
                                        from the institution not more 
                                        than 120 days before the 
                                        institution closed, or in the 
                                        case of exceptional 
                                        circumstances described in 
                                        subparagraph (B), not more than 
                                        the period by which such 120-
                                        day period is extended under 
                                        such subparagraph; and
                                          ``(cc) attempted but was 
                                        unable to complete the program 
                                        of study through a teach-out at 
                                        another institution or by 
                                        transferring academic credits 
                                        or hours earned at the closed 
                                        institution to another 
                                        institution;
                                  ``(II) whether the borrower (or the 
                                student) has made a claim with respect 
                                to the institutions's closing with any 
                                third party, such as the holder of a 
                                performance bond or a tuition recovery 
                                program, and, if so, the amount of any 
                                payment received by the borrower (or 
                                the student) or credited to the 
                                borrower's loan obligation; and
                                  ``(III) that the borrower (or the 
                                student)--
                                          ``(aa) agrees to provide to 
                                        the Secretary or the holder of 
                                        the loan upon request other 
                                        documentation reasonably 
                                        available to the borrower that 
                                        demonstrates that the borrower 
                                        meets the qualifications for 
                                        discharge under this 
                                        subsection; and
                                          ``(bb) agrees to cooperate 
                                        with the Secretary in 
                                        enforcement actions in 
                                        accordance with subparagraph 
                                        (C) and to transfer any right 
                                        to recovery against a third 
                                        party to the Secretary in 
                                        accordance with subparagraph 
                                        (D).
                  ``(B) Exceptional circumstances.--
                          ``(i) In general.--The Secretary may extend 
                        the 120-day period described in subparagraph 
                        (A)(iii)(I)(bb)(BB) if the Secretary determines 
                        that exceptional circumstances related to an 
                        institution's closing justify an extension.
                          ``(ii) Definition.--For purposes of this 
                        subsection, the term `exceptional 
                        circumstances', when used with respect to an 
                        institution that closed, includes the loss of 
                        accreditation of institution, the 
                        institutions's discontinuation of the majority 
                        of its academic programs, action by the State 
                        to revoke the institution's license to operate 
                        or award academic credentials in the State, or 
                        a finding by a State or Federal Government 
                        agency that the institution violated State or 
                        Federal law.
                  ``(C)  Cooperation by borrower in enforcement 
                actions.--
                          ``(i) In general.--In order to obtain a 
                        discharge described in subparagraph (A), a 
                        borrower shall cooperate with the Secretary in 
                        any judicial or administrative proceeding 
                        brought by the Secretary to recover amounts 
                        discharged or to take other enforcement action 
                        with respect to the conduct on which the 
                        discharge was based. At the request of the 
                        Secretary and upon the Secretary's tendering to 
                        the borrower the fees and costs that are 
                        customarily provided in litigation to reimburse 
                        witnesses, the borrower shall--
                                  ``(I) provide testimony regarding any 
                                representation made by the borrower to 
                                support a request for discharge;
                                  ``(II) produce any documents 
                                reasonably available to the borrower 
                                with respect to those representations; 
                                and
                                  ``(III) if required by the Secretary, 
                                provide a sworn statement regarding 
                                those documents and representations.
                          ``(ii) Denial of request for discharge.--The 
                        Secretary shall deny the request for such a 
                        discharge or revoke the discharge of a borrower 
                        who--
                                  ``(I) fails to provide the testimony, 
                                documents, or a sworn statement 
                                required under clause (i); or
                                  ``(II) provides testimony, documents, 
                                or a sworn statement that does not 
                                support the material representations 
                                made by the borrower to obtain the 
                                discharge.
                  ``(D) Transfer to the secretary of borrower's right 
                of recovery against third parties.--
                          ``(i) In general.--Upon receiving a discharge 
                        described in subparagraph (A) of a loan, the 
                        borrower shall be deemed to have assigned to 
                        and relinquished in favor of the Secretary any 
                        right to a loan refund for such loan (up to the 
                        amount discharged) that the borrower (or 
                        student) may have by contract or applicable law 
                        with respect to the loan or the enrollment 
                        agreement for the program for which the loan 
                        was received, against the institution, its 
                        principals, its affiliates and their 
                        successors, its sureties, and any private fund, 
                        including the portion of a public fund that 
                        represents funds received from a private party.
                          ``(ii) Application.--The provisions of this 
                        subsection apply notwithstanding any provision 
                        of State law that would otherwise restrict 
                        transfer of such rights by the borrower (or 
                        student), limit, or prevent a transferee from 
                        exercising such rights, or establish procedures 
                        or a scheme of distribution that would 
                        prejudice the Secretary's ability to recover on 
                        such rights.
                          ``(iii) Rule of construction.--Nothing in 
                        this subsection shall limit or foreclose the 
                        borrower's (or student's) right to pursue legal 
                        and equitable relief regarding disputes arising 
                        from matters unrelated to the discharged loan.
                  ``(E) Discharge procedures.--
                          ``(i) In general.--After confirming the date 
                        of an institution's closure, the Secretary 
                        shall identify any borrower (or student on 
                        whose behalf a parent borrowed) who appears to 
                        have been enrolled at the institution on the 
                        closure date of the institution or to have 
                        withdrawn not more than 120 days prior to the 
                        closure date (or in the case of exceptional 
                        circumstances described in subparagraph (B), 
                        not more than the period by which such 120-day 
                        period is extended under such subparagraph. In 
                        the case of a loan made, insured, or guaranteed 
                        under this part, a guaranty agency shall notify 
                        the Secretary immediately whenever it becomes 
                        aware of reliable information indicating an 
                        institution may have closed.
                          ``(ii) Borrower address.--
                                  ``(I) Known.--If the borrower's 
                                current address is known, the Secretary 
                                shall mail the borrower a discharge 
                                application and an explanation of the 
                                qualifications and procedures for 
                                obtaining a discharge. The Secretary or 
                                the guaranty agency shall promptly 
                                suspend any efforts to collect from the 
                                borrower on any affected loan. The 
                                Secretary may continue to receive 
                                borrower payments of the loan for which 
                                the discharge application has been 
                                filed.
                                  ``(II) Unknown.--If the borrower's 
                                current address is unknown, the 
                                Secretary shall attempt to locate the 
                                borrower and determine the borrower's 
                                potential eligibility for a discharge 
                                described in subparagraph (A) by 
                                consulting with representatives of the 
                                closed institution, the institution's 
                                licensing agency, the institution's 
                                accrediting agency, and other 
                                appropriate parties. If the Secretary 
                                learns the new address of a borrower, 
                                the Secretary shall mail to the 
                                borrower a discharge application and 
                                explanation, and shall suspend 
                                collection on the loan, as described in 
                                subclause (I).
                          ``(iii) Sworn statement.--If a borrower fails 
                        to submit the written request and sworn 
                        statement described subparagraph (A) not later 
                        than 60 days after date on which the Secretary 
                        mails the discharge application under clause 
                        (ii), the Secretary--
                                  ``(I) shall resume collection on the 
                                loan and grant forbearance of principal 
                                and interest for the period in which 
                                collection activity was suspended; and
                                  ``(II) may capitalize any interest 
                                accrued and not paid during such 
                                period.
                          ``(iv) Notification.--
                                  ``(I) Qualifications met.--If the 
                                Secretary determines that a borrower 
                                who requests a discharge described in 
                                subparagraph (A) meets the 
                                qualifications for such a discharge, 
                                the Secretary shall--
                                          ``(aa) notify the borrower in 
                                        writing of that determination; 
                                        and
                                          ``(bb) not regard a borrower 
                                        who has defaulted on a loan 
                                        that has been so discharged as 
                                        in default on the loan after 
                                        such discharge, and such a 
                                        borrower shall be eligible to 
                                        receive assistance under this 
                                        title.
                                  ``(II) Qualifications not met.--If 
                                the Secretary determines that a 
                                borrower who requests a discharge 
                                described in subparagraph (A) does not 
                                meet the qualifications for such a 
                                discharge, the Secretary or guaranty 
                                agency shall resume collection on the 
                                loan and notify the borrower in writing 
                                of that determination and the reasons 
                                for the determination.
          ``(7) Borrower qualifications for a false certification 
        discharge.--
                  ``(A) Application.--
                          ``(i) In general.--In order to qualify for 
                        false certification discharge under this 
                        subsection, the borrower shall submit to the 
                        Secretary, on a form approved by the Secretary, 
                        an application for discharge that--
                                  ``(I) does not need not be notarized, 
                                but shall be made by the borrower under 
                                penalty of perjury; and
                                  ``(II) demonstrates to the 
                                satisfaction of the Secretary that the 
                                requirements in subparagraphs (B) 
                                through (G) have been met.
                          ``(ii) Notification.--If the Secretary 
                        determines the application does not meet the 
                        requirements of clause (i), the Secretary shall 
                        notify the applicant and explain why the 
                        application does not meet the requirements.
                  ``(B) High school diploma or equivalent.--In the case 
                of a borrower requesting a false certification 
                discharge based on not having had a high school diploma 
                and not having met the alternative to graduation from 
                high school eligibility requirements under section 
                484(d) applicable at the time the loan was originated, 
                and the institution or a third party to which the 
                institution referred the borrower falsified the 
                student's high school diploma, the borrower shall state 
                in the application that the borrower (or the student on 
                whose behalf a parent borrowed)--
                          ``(i) reported not having a valid high school 
                        diploma or its equivalent at the time the loan 
                        was certified; and
                          ``(ii) did not satisfy the alternative to 
                        graduation from high school statutory or 
                        regulatory eligibility requirements identified 
                        on the application form and applicable at the 
                        time the institution certified the loan.
                  ``(C) Disqualifying condition.--In the case of a 
                borrower requesting a false certification discharge 
                based on a condition that would disqualify the borrower 
                from employment in the occupation that the program for 
                which the borrower received the loan was intended, the 
                borrower shall state in the application that the 
                borrower (or student on whose behalf the parent 
                borrowed) did not meet State requirements for 
                employment (in the student's State of residence) in the 
                occupation that the program for which the borrower 
                received the loan was intended because of a physical or 
                mental condition, age, criminal record, or other reason 
                accepted by the Secretary.
                  ``(D) Unauthorized loan.--In the case of a borrower 
                requesting a discharge under this subsection because 
                the institution signed the borrower's name on the loan 
                application or promissory note without the borrower's 
                authorization, the borrower shall--
                          ``(i) state that the borrower did not sign 
                        the document in question or authorize the 
                        institution to do so; and
                          ``(ii) provide 5 different specimens of the 
                        borrower's signature, 2 of which must be within 
                        one year before or after the date of the 
                        contested signature.
                  ``(E) Unauthorized payment.--In the case of a 
                borrower requesting a false certification discharge 
                because the institution, without the borrower's 
                authorization, endorsed the borrower's loan check or 
                signed the borrower's authorization for electronic 
                funds transfer, the borrower shall--
                          ``(i) state that the borrower did not endorse 
                        the loan check or sign the authorization for 
                        electronic funds transfer or authorize the 
                        institution to do so;
                          ``(ii) provide 5 different specimens of the 
                        borrower's signature, 2 of which must be within 
                        one year before or after the date of the 
                        contested signature; and
                          ``(iii) state that the proceeds of the 
                        contested disbursement were not delivered to 
                        the borrower or applied to charges owed by the 
                        borrower to the institution.
                  ``(F) Identity theft.--
                          ``(i) In general.--In the case of an 
                        individual whose eligibility to borrow was 
                        falsely certified because the individual was a 
                        victim of the crime of identity theft and is 
                        requesting a discharge, the individual shall--
                                  ``(I) certify that the individual did 
                                not sign the promissory note, or that 
                                any other means of identification used 
                                to obtain the loan was used without the 
                                authorization of the individual 
                                claiming relief;
                                  ``(II) certify that the individual 
                                did not receive or benefit from the 
                                proceeds of the loan with knowledge 
                                that the loan had been made without the 
                                authorization of the individual;
                                  ``(III) provide a copy of a local, 
                                State, or Federal court verdict or 
                                judgment that conclusively determines 
                                that the individual who is named as the 
                                borrower of the loan was the victim of 
                                a crime of identity theft; and
                                  ``(IV) if the judicial determination 
                                of the crime does not expressly state 
                                that the loan was obtained as a result 
                                of the crime of identity theft, 
                                provide--
                                          ``(aa) authentic specimens of 
                                        the signature of the 
                                        individual, as described in 
                                        subparagraph (D)(ii), or of 
                                        other means of identification 
                                        of the individual, as 
                                        applicable, corresponding to 
                                        the means of identification 
                                        falsely used to obtain the 
                                        loan; and
                                          ``(bb) statement of facts 
                                        that demonstrate, to the 
                                        satisfaction of the Secretary, 
                                        that eligibility for the loan 
                                        in question was falsely 
                                        certified as a result of the 
                                        crime of identity theft 
                                        committed against that 
                                        individual.
                          ``(ii) Definitions.--For purposes of this 
                        subparagraph:
                                  ``(I) Identity theft.--The term 
                                `identity theft' means the unauthorized 
                                use of the identifying information of 
                                another individual that is punishable 
                                under section 1028, 1028A, 1029, or 
                                1030 of title 18, United States Code, 
                                or substantially comparable State or 
                                local law.
                                  ``(II) Identifying information.--The 
                                term `identifying information' 
                                includes--
                                          ``(aa) name, Social Security 
                                        number, date of birth, official 
                                        State or government issued 
                                        driver's license or 
                                        identification number, alien 
                                        registration number, government 
                                        passport number, and employer 
                                        or taxpayer identification 
                                        number;
                                          ``(bb) unique biometric data, 
                                        such as fingerprints, 
                                        voiceprint, retina or iris 
                                        image, or unique physical 
                                        representation;
                                          ``(cc) unique electronic 
                                        identification number, address, 
                                        or routing code; or
                                          ``(dd) telecommunication 
                                        identifying information or 
                                        access device (as defined in 18 
                                        U.S.C. 1029(e)) borrower 
                                        qualifications for a false 
                                        certification discharge
                  ``(G) Claim to third party.--The borrower shall state 
                whether the borrower has made a claim with respect to 
                the institutions's false certification or unauthorized 
                payment with any third party, such as the holder of a 
                performance bond or a tuition recovery program, and, if 
                so, the amount of any payment received by the borrower 
                or credited to the borrower's loan obligation.
                  ``(H) Cooperation with the secretary.--The borrower 
                shall state that the borrower--
                          ``(i) agrees to provide to the Secretary upon 
                        request other documentation reasonably 
                        available to the borrower that demonstrates 
                        that the borrower meets the qualifications for 
                        discharge under this subsection; and
                          ``(ii) agrees to cooperate with the Secretary 
                        in enforcement actions and to transfer any 
                        right to recovery against a third party to the 
                        Secretary.
          ``(8) Borrower qualifications for an unpaid refund 
        discharge.--To receive an unpaid refund discharge of a portion 
        of a loan under this subsection, a borrower shall submit to the 
        holder or guaranty agency a written application--
                  ``(A) that requests the information required to 
                calculate the amount of the discharge;
                  ``(B) that the borrower signs for the purpose of 
                swearing to the accuracy of the information;
                  ``(C) that is made by the borrower under penalty of 
                perjury, and that may or may not be notarized;
                  ``(D) under which the borrower states--
                          ``(i) that the borrower--
                                  ``(I) received, on or after January 
                                1, 1986, the proceeds of a loan, in 
                                whole or in part, made, insured, or 
                                guaranteed under this title to attend 
                                an institution of higher education;
                                  ``(II) did not attend, withdrew, or 
                                was terminated from the institution 
                                within a timeframe that entitled the 
                                borrower to a refund; and
                                  ``(III) did not receive the benefit 
                                of a refund to which the borrower was 
                                entitled either from the institution or 
                                from a third party, such as the holder 
                                of a performance bond or a tuition 
                                recovery program;
                          ``(ii) whether the borrower has any other 
                        application for discharge pending for this 
                        loan; and
                          ``(iii) that the borrower--
                                  ``(I) agrees to provide to the 
                                Secretary upon request other 
                                documentation reasonably available to 
                                the borrower that demonstrates that the 
                                borrower meets the qualifications for 
                                discharge under this subsection; and
                                  ``(II) agrees to cooperate with the 
                                Secretary in enforcement actions and to 
                                transfer any right to recovery against 
                                a third party to the Secretary.''.

                  PART C--FEDERAL WORK-STUDY PROGRAMS

SECTION 441. PURPOSE; AUTHORIZATION OF APPROPRIATIONS.

  Section 441 (20 U.S.C. 1087-51) is amended--
          (1) in subsection (a)--
                  (A) by striking ``part-time'' and inserting ``paid'';
                  (B) by striking ``, graduate, or professional''; and
                  (C) by striking ``community service'' and inserting 
                ``work-based learning'';
          (2) in subsection (b), by striking ``part, such sums as may 
        be necessary for fiscal year 2009 and each of the five 
        succeeding fiscal years.'' and inserting ``part, $1,722,858,000 
        for fiscal year 2019 and each of the 5 succeeding fiscal 
        years.''; and
          (3) by amending subsection (c) to read as follows:
  ``(c) Work-Based Learning.--For purposes of this part, the term 
`work-based learning' means paid interactions with industry or 
community professionals in real workplace settings that foster in-
depth, first-hand engagement with the tasks required of a given career 
field, that are aligned to a student's field of study.''.

SEC. 442. ALLOCATION FORMULA.

  Section 442 (20 U.S.C. 1087-52) is amended to read as follows:

``SEC. 442. ALLOCATION OF FUNDS.

  ``(a) Reservations.--
          ``(1) Reservation for improved institutions.--
                  ``(A) Amount of reservation for improved 
                institutions.--For a fiscal year in which the amount 
                appropriated under section 441(b) exceeds $700,000,000, 
                the Secretary shall--
                          ``(i) reserve the lesser of--
                                  ``(I) an amount equal to 20 percent 
                                of the amount by which the amount 
                                appropriated under section 441(b) 
                                exceeds $700,000,000; or
                                  ``(II) $150,000,000; and
                          ``(ii) allocate the amount reserved under 
                        clause (i) to each improved institution in an 
                        amount--
                                  ``(I) that bears the same proportion 
                                to the amount reserved under clause (i) 
                                as the total amount of all Federal Pell 
                                Grant funds awarded at the improved 
                                institution for the second preceding 
                                fiscal year bears to the total amount 
                                of Federal Pell Grant funds awarded at 
                                improved institutions participating 
                                under this part for the second 
                                preceding fiscal year; and
                                  ``(II) is not--
                                          ``(aa) less than $10,000; or
                                          ``(bb) greater than 
                                        $1,500,000.
                  ``(B) Improved institution described.--For purposes 
                of this paragraph, an improved institution is an 
                institution that, on the date the Secretary makes an 
                allocation under subparagraph (A)(ii) is, with respect 
                to--
                          ``(i) the completion rate or graduation rate 
                        of Federal Pell Grant recipients at the 
                        institution, in the top 10 percent of--
                                  ``(I) if the institution is an 
                                institution described in any of clauses 
                                (iv) through (ix) of section 
                                132(d)(1)(B), all such institutions 
                                participating under this part for the 
                                preceding fiscal year; or
                                  ``(II) if the institution is an 
                                institution described in any of clauses 
                                (i) through (iii) of section 
                                132(d)(1)(B), all such institutions 
                                participating under this part for the 
                                preceding fiscal year; or
                          ``(ii) the improvement of the completion rate 
                        or graduation rate between the preceding fiscal 
                        year and such date, in the top 10 percent of 
                        the institutions described in clause (i).
                  ``(C) Completion rate or graduation rate.--For 
                purposes of determining the completion rate or 
                graduation rate under this section, a Federal Pell 
                Grant recipient shall be counted as a completor or 
                graduate if, within the normal time for completion of 
                or graduation from the program, the student has 
                completed or graduated from the program, or enrolled in 
                any program of an institution participating in any 
                program under this title for which the prior program 
                provides substantial preparation.
                  ``(D) Reallocation of returned amount.--If an 
                institution returns to the Secretary any portion of the 
                sums allocated to such institution under this paragraph 
                for any fiscal year, the Secretary shall reallot such 
                excess to improved institutions on the same basis as 
                under subparagraph (A)(ii)(I).
          ``(2) Reservation for work colleges.--From the amounts 
        appropriated under section 441(b), the Secretary shall reserve 
        to carry out section 448 such amounts as may be necessary for 
        fiscal year 2019 and each of the 5 succeeding fiscal years.
  ``(b) Allocation Formula for Fiscal Years 2019 Through 2023.--
          ``(1) In general.--From the amount appropriated under section 
        441(b) for a fiscal year and remaining after the Secretary 
        reserves funds under subsection (a), the Secretary shall 
        allocate to each institution--
                  ``(A) for fiscal year 2019, an amount equal to the 
                greater of--
                          ``(i) 90 percent of the amount the 
                        institution received under this subsection and 
                        subsection (a) for fiscal year 2018, as such 
                        subsections were in effect with respect to such 
                        fiscal year (in this subparagraph referred to 
                        as the `2018 amount for the institution'); or
                          ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                  ``(B) for fiscal year 2020, an amount equal to the 
                greater of--
                          ``(i) 80 percent of the 2018 amount for the 
                        institution; or
                          ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                  ``(C) for fiscal year 2021, an amount equal to the 
                greater of--
                          ``(i) 60 percent of the 2018 amount for the 
                        institution; or
                          ``(ii) the fair share amount for the 
                        institution determined under subsection (d);
                  ``(D) for fiscal year 2022, an amount equal to the 
                greater of--
                          ``(i) 40 percent of the 2018 amount for the 
                        institution; or
                          ``(ii) the fair share amount for the 
                        institution determined under subsection (d); 
                        and
                  ``(E) for fiscal year 2023, an amount equal to the 
                greater of--
                          ``(i) 20 percent of the 2018 amount for the 
                        institution; or
                          ``(ii) the fair share amount for the 
                        institution determined under subsection (d).
          ``(2) Ratable reduction.--
                  ``(A) In general.--If the amount appropriated under 
                section 441(b) for a fiscal year and remaining after 
                the Secretary reserves funds under subsection (a) is 
                less than the amount required to be allocated to the 
                institutions under this subsection, then the amount of 
                the allocation to each institution shall be ratably 
                reduced.
                  ``(B) Additional appropriations.--If the amounts 
                allocated to each institution are ratably reduced under 
                subparagraph (A) for a fiscal year and additional 
                amounts are appropriated for such fiscal year, the 
                amount allocated to each institution from the 
                additional amounts shall be increased on the same basis 
                as the amounts under subparagraph (A) were reduced 
                (until each institution receives the amount required to 
                be allocated under this subsection).
  ``(c) Allocation Formula for Fiscal Year 2024 and Each Succeeding 
Fiscal Year.--From the amount appropriated under section 441(b) for 
fiscal year 2024 and each succeeding fiscal year and remaining after 
the Secretary reserves funds under subsection (a), the Secretary shall 
allocate to each institution the fair share amount for the institution 
determined under subsection (d).
  ``(d) Determination of Fair Share Amount.--
          ``(1) In general.--The fair share amount for an institution 
        for a fiscal year shall be equal to the sum of the following:
                  ``(A) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of Federal Pell Grant funds disbursed at the 
                institution for the preceding fiscal year bears to the 
                total amount of Federal Pell Grant funds awarded at all 
                institutions participating under this part for the 
                preceding fiscal year.
                  ``(B) An amount equal to 50 percent of the amount 
                that bears the same proportion to the available 
                appropriated amount for such fiscal year as the total 
                amount of the undergraduate student need at the 
                institution for the preceding fiscal year bears to the 
                total amount of undergraduate student need at all 
                institutions participating under this part for the 
                preceding fiscal year.
          ``(2) Definitions.--In this subsection:
                  ``(A) Available appropriated amount.--The term 
                `available appropriated amount' means--
                          ``(i) the amount appropriated under section 
                        441(b) for a fiscal year, minus
                          ``(ii) the amounts reserved under subsection 
                        (a) for such fiscal year.
                  ``(B) Average cost of attendance.--The term `average 
                cost of attendance' means, with respect to an 
                institution, the average of the attendance costs for a 
                fiscal year for students which shall include--
                          ``(i) tuition and fees, computed on the basis 
                        of information reported by the institution to 
                        the Secretary, which shall include--
                                  ``(I) total revenue received by the 
                                institution from undergraduate tuition 
                                and fees for the second year preceding 
                                the year for which it is applying for 
                                an allocation; and
                                  ``(II) the institution's enrollment 
                                for such second preceding year;
                          ``(ii) standard living expenses equal to 150 
                        percent of the difference between the income 
                        protection allowance for a family of 5 with 1 
                        in college and the income protection allowance 
                        for a family of 6 with 1 in college for a 
                        single independent student; and
                          ``(iii) books and supplies, in an amount not 
                        exceeding $800.
                  ``(C) Undergraduate student need.--The term 
                `undergraduate student need' means, with respect to an 
                undergraduate student for a fiscal year, the lesser of 
                the following:
                          ``(i) The total of the amount equal to 
                        (except the amount computed by this clause 
                        shall not be less than zero)--
                                  ``(I) the average cost of attendance 
                                for the fiscal year, minus
                                  ``(II) the total amount of each such 
                                undergraduate student's expected family 
                                contribution (computed in accordance 
                                with part F of this title) for the 
                                preceding fiscal year.
                          ``(ii) $12,500.
  ``(e) Return of Surplus Allocated Funds.--
          ``(1) Amount returned.--If an institution returns more than 
        10 percent of its allocation under subsection (d), the 
        institution's allocation for the next fiscal year shall be 
        reduced by the amount returned.
          ``(2) Waiver.--The Secretary may waive this paragraph for a 
        specific institution if the Secretary finds that enforcing this 
        paragraph would be contrary to the interest of the program.
  ``(f) Filing Deadlines.--The Secretary shall, from time to time, set 
dates before which institutions must file applications for allocations 
under this part.''.

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

  Section 443 (20 U.S.C. 1087-53) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``part-time'';
                  (B) in paragraph (2), by striking ``except that--'' 
                and all that follows through ``an institution may use a 
                portion'' and inserting ``except that an institution 
                may use a portion'';
                  (C) in paragraph (3), by inserting ``undergraduate'' 
                after ``only'';
                  (D) in paragraph (4), by striking ``300'' and 
                inserting ``500'';
                  (E) in paragraph (5)--
                          (i) by striking ``shall not exceed 75 
                        percent'' and inserting ``shall not exceed 75 
                        percent in the first year after the date of the 
                        enactment of PROSPER Act, 65 percent in the 
                        first succeeding fiscal year, 60 percent in the 
                        second succeeding fiscal year, 55 percent in 
                        the third succeeding fiscal year, and 50 
                        percent each succeeding fiscal year'';
                          (ii) by striking subparagraph (A);
                          (iii) in subparagraph (B)--
                                  (I) by striking ``75'' and inserting 
                                ``50''; and
                                  (II) by striking the semicolon and 
                                inserting ``; and'';
                          (iv) by redesignating subparagraph (B) as 
                        subparagraph (A); and
                          (v) by adding at the end the following:
                  ``(B) the Federal share may equal 100 percent with 
                respect to funds received under section 
                442(a)(1)(A);'';
                  (F) in paragraph (8)--
                          (i) in subparagraph (A)(i), by striking 
                        ``vocational'' and inserting ``career''; and
                          (ii) in subparagraph (B), by striking 
                        ``community service'' and inserting ``work-
                        based learning'';
                  (G) in paragraph (10), by striking ``; and'' and 
                inserting a semicolon;
                  (H) in paragraph (11), by striking the period at the 
                end and inserting a semicolon; and
                  (I) by adding at the end the following:
          ``(12) provide assurances that the institution will collect 
        data from students and employers such that the employment made 
        available from funds under this part will, to the maximum 
        extent practicable, complement and reinforce the educational 
        goals or career goals of each student receiving assistance 
        under this part; and
          ``(13) provide assurances that if the institution receives 
        funds under section 442(a)(1)(A), such institution shall--
                  ``(A) use such funds to compensate students 
                participating in the work-study program; and
                  ``(B) prioritize the awarding of such funds to 
                students--
                          ``(i) who demonstrate exceptional need; or
                          ``(ii) who are employed in work-based 
                        learning opportunities through the work-study 
                        program.'';
          (2) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by striking ``program of part-time 
                        employment'' and inserting the following: 
                        ``program--
                  ``(A) of employment''; and
                          (ii) by inserting ``or'' after ``subsection 
                        (b)(3);''; and
                          (iii) by adding at the end the following:
                  ``(B) of full-time employment of its cooperative 
                education students in work for a private for-profit 
                organization under an arrangement between the 
                institution and such organization that complies with 
                the requirements of subparagraphs (A) through (D) of 
                subsection (b)(1) of this section and subsection (b)(4) 
                of this section;'';
                  (B) by striking paragraph (2);
                  (C) in paragraph (4), by inserting ``and complement 
                and reinforce the educational goals or career goals of 
                each student receiving assistance under this part'' 
                after ``relevant''; and
                  (D) by redesignating paragraphs (3), (4), and (5) as 
                paragraphs (2), (3), and (4), respectively; and
          (3) in subsection (d)--
                  (A) in paragraph (1)--
                          (i) by striking ``In any academic year to 
                        which subsection (b)(2)(A) applies, an 
                        institution shall ensure that'' and inserting 
                        ``An institution may use the'' ; and
                          (ii) by striking ``are used''; and
                  (B) in paragraph (3), by striking ``may exceed 75 
                percent'' and inserting ``shall not exceed 50 
                percent''.

SEC. 444. FLEXIBLE USE OF FUNDS.

  Section 445(a) (20 U.S.C. 1087-55(a)) is amended--
          (1) in paragraph (2), by striking ``in the same State'' and 
        inserting ``described under section 442(a)(1)(B)''; and
          (2) by adding at the end the following new paragraph:
  ``(3) In addition to the carry-over sums authorized under paragraph 
(1) of this section, an institution may permit a student who completed 
the previous award period to continue to earn unearned portions of the 
student's work-study award from that previous year if--
          ``(A) any reduction in the student's need upon which the 
        award was based is accounted for in the remaining portion; and
          ``(B) the student is currently employed in a work-based 
        learning position.''.

SEC. 445. JOB LOCATION AND DEVELOPMENT PROGRAMS.

  Section 446 (20 U.S.C. 1087-56) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``10 percent or $75,000'' and 
                        inserting ``20 percent or $150,000''; and
                          (ii) by striking ``, including community 
                        service jobs,'';
                  (B) in paragraph (2), by striking ``vocational'' and 
                inserting ``career''; and
                  (C) by adding at the end the following:
  ``(3) An institution may use a portion of the funds expended under 
this section to identify and expand opportunities for apprenticeships 
for students and to assist employers in developing jobs that are part 
of apprenticeship programs.''; and
          (2) in subsection (b)--
                  (A) by striking paragraph (2);
                  (B) by redesignating paragraphs (3) through (6) as 
                paragraphs (4) through (7), respectively; and
                  (C) by inserting before paragraph (4), as so 
                redesignated, the following:
          ``(2) provide satisfactory assurance that the institution 
        will prioritize placing students with the lowest expected 
        family contribution and Federal work-study recipients in jobs 
        located and developed under this section;
          ``(3) provide a satisfactory assurance that the institution 
        will locate and develop work-based learning opportunities 
        through the job location development programs;''; and
                  (D) in paragraph (7), as so redesignated, by striking 
                the period and inserting ``, including--
                  ``(A) the number of students employed in work-based 
                learning opportunities through such program;
                  ``(B) the number of students demonstrating 
                exceptional need and employed in a work-study program 
                through such program; and
                  ``(C) the number of students demonstrating 
                exceptional need and employed in work-based learning 
                opportunities through such program.''.

SEC. 446. COMMUNITY SERVICE.

  Section 447 (20 U.S.C. 1087-57) is repealed.

SEC. 447. WORK COLLEGES.

  Section 448 (20 U.S.C. 1087-58) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (1)--
                          (i) by striking ``and part E''; and
                          (ii) by striking ``appropriated'' and 
                        inserting ``allocated'';
                  (B) in paragraph (2), by striking ``appropriated 
                pursuant to'' and inserting ``allocated under''; and
          (2) in subsection (c), by striking ``authorized by'' and 
        inserting ``allocated under'';
          (3) in subsection (e)(1)--
                  (A) in subparagraph (C), by striking ``; and'' and 
                inserting a semicolon; and
                  (B) by adding at the end the following:
                  ``(E) has administered Federal work-study for at 
                least 2 years; and''; and
          (4) by amending subsection (f) to read as follows:
  ``(f) Allocation of Reserved Funds.--
          ``(1) In general.--Subject to paragraph (2), from the amount 
        reserved under section 442(a)(2) for a fiscal year to carry out 
        this section, the Secretary shall allocate to each work college 
        that submits an application under subsection (c) an amount 
        equal to the amount that bears the same proportion to the 
        amount appropriated for such fiscal year as the number of 
        students eligible for employment under a work-study program 
        under this part who are enrolled at the work college bears to 
        the total number of students eligible for employment under a 
        work-study program under this part who are enrolled at all work 
        colleges.
          ``(2) Reallotment of unmatched funds.--If a work college is 
        unable to match funds received under paragraph (1) in 
        accordance with subsection (d), any unmatched funds shall be 
        returned to the Secretary and the Secretary shall reallot such 
        funds on the same basis as funds are allocated under paragraph 
        (1).''.

              PART D--FEDERAL DIRECT STUDENT LOAN PROGRAM

SEC. 451. TERMINATION OF FEDERAL DIRECT LOAN PROGRAM UNDER PART D AND 
                    OTHER CONFORMING AMENDMENTS.

  (a) Appropriations.--Section 451 (20 U.S.C. 1087a) is amended--
          (1) in subsection (a), by adding at the end the following: 
        ``No sums may be expended after September 30, 2024, with 
        respect to loans under this part for which the first 
        disbursement is after such date.''; and
          (2) by adding at the end, the following:
  ``(c) Termination of Authority to Make New Loans.--Notwithstanding 
subsection (a) or any other provision of law--
          ``(1) no new loans may be made under this part after 
        September 30, 2024; and
          ``(2) no funds are authorized to be appropriated, or may be 
        expended, under this Act, or any other Act to make loans under 
        this part for which the first disbursement is after September 
        30, 2024,
except as expressly authorized by an Act of Congress enacted after the 
date of enactment of the PROSPER Act.
  ``(d) Student Eligibility Beginning With Award Year 2019.--
          ``(1) New borrowers.--No loan may be made under this part to 
        a new borrower for which the first disbursement is after June 
        30, 2019.
          ``(2) Borrowers with outstanding balances.--Subject to 
        paragraph (3), with respect to a borrower who, as of July 1, 
        2019, has an outstanding balance of principal or interest owing 
        on a loan made under this part, such borrower may--
                  ``(A) in the case of such a loan made to the borrower 
                for enrollment in a program of undergraduate education, 
                borrow loans made under this part for any program of 
                undergraduate education through the close of September 
                30, 2024;
                  ``(B) in the case of such a loan made to the borrower 
                for enrollment in a program of graduate or professional 
                education, borrow loans made under this part for any 
                program of graduate or professional education through 
                the close of September 30, 2024; and
                  ``(C) in the case of such a loan made to the borrower 
                on behalf of a dependent student for the student's 
                enrollment in a program of undergraduate education, 
                borrow loans made under this part on behalf of such 
                student through the close of September 30, 2024.
          ``(3) Loss of eligibility.--A borrower described in paragraph 
        (2) who borrows a loan made under part E for which the first 
        disbursement is made on or after July 1, 2019, shall lose the 
        borrower's eligibility to borrow loans made under this part in 
        accordance with paragraph (2).''.
  (b) Perkins Loan Conforming Amendment.--Section 453(c)(2)(A) (20 
U.S.C. 1087c(c)(2)(A)) is amended by inserting ``, as in effect on the 
day before the date of enactment of the PROSPER Act and pursuant to 
section 461(a),'' after ``part E'';
  (c) Applicable Interest Rates and Other Terms and Conditions.--
Section 455 (20 U.S.C. 1087e) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by inserting ``, and first 
                disbursed before October 1, 2024,'' after ``under this 
                part'';
                  (B) in paragraph (2), by inserting ``, and first 
                disbursed before October 1, 2024,'' after ``under this 
                part'';
          (2) in subsection (b)(8)--
                  (A) in the paragraph heading, by inserting ``and 
                before october 1, 2024'' after ``2013'';
                  (B) in subparagraph (A), by inserting ``and before 
                October 1, 2024,'' after ``July 1, 2013,'';
                  (C) in subparagraph (B), by inserting ``and before 
                October 1, 2024,'' after ``July 1, 2013,'';
                  (D) in subparagraph (C), by inserting ``and before 
                October 1, 2024,'' after ``July 1, 2013,''; and
                  (E) in subparagraph (D), by inserting ``and before 
                October 1, 2024,'' after ``July 1, 2013,'';
          (3) in subsection (c)(2)(E), by inserting ``, and before 
        October 1, 2024'' after ``July 1, 2010'';
          (4) in subsection (e)(7), in the matter preceding 
        subparagraph (A), by inserting ``, as in effect on the day 
        before the date of enactment of the PROSPER Act and pursuant to 
        section 461(a)'' after ``part E''; and
          (5) in subsection (g)--
                  (A) by inserting ``, and first disbursed before 
                October 1, 2024,'' after ``under this part'' the first 
                place it appears; and
                  (B) by adding at the end the following: ``The 
                authority to make consolidation loans under this 
                subsection expires at the close of September 30, 2024. 
                No loan may be made under this subsection for which the 
                disbursement is on or after October 1, 2024.''; and
          (6) in subsection (o)--
                  (A) in paragraph (1), by inserting ``, and before 
                October 1, 2024'' after ``October 1, 2008''; and
                  (B) in paragraph (2)--
                          (i) by inserting ``and before October 1, 
                        2024,'' after ``October 1, 2008,''; and
                          (ii) by inserting ``, and before October 1, 
                        2024'' before the period at the end.

SEC. 452. BORROWER DEFENSES.

  Section 455(h) (20 U.S.C. 1087e(h)) is amended to read as follows:
  ``(h) Borrower Defenses.--
          ``(1) In general.--In any proceeding to collect on a loan 
        made under this part on or after July 1, 2018 to a borrower, 
        the Secretary shall abide by the following:
                  ``(A) In no event may the borrower recover any amount 
                previously collected or be freed of amounts owed to the 
                Secretary without submitting an individually-filed 
                application for approval.
                  ``(B) In no event may the borrower recover amounts 
                previously collected by the Secretary, in any action 
                arising from or relating to a loan made under this 
                part, in an amount in excess of the amount that has 
                been paid by the borrower on such loan.
                  ``(C) In no event may the borrower submit an 
                application to recover amounts previously collected by 
                the Secretary later than 3 years after the misconduct 
                or breach of contract on behalf of the institution 
                takes place that gives rise to the borrower to assert a 
                defense to repayment of the loan.
                  ``(D) In no event may anyone other than an 
                administrative law judge or its equivalent preside over 
                hearings of any kind related to applications submitted 
                under this subsection.
                  ``(E) In no event may the Secretary approve or 
                disapprove the borrower's application under this 
                subsection without allowing for the equal consideration 
                of evidence and arguments presented by a representative 
                on behalf of the student or students and a 
                representative on behalf of the institution, if either 
                such party makes a request.
                  ``(F) In no event may the Secretary withhold from an 
                institution any materials, facts, or evidence used when 
                processing an application submitted by the borrower.
                  ``(G) In no event may the borrower of a loan made, 
                insured or guaranteed under this title (other than a 
                loan made under this part or a Federal ONE Loan) submit 
                an application under this subsection without 
                consolidating the loans of the borrower into a Federal 
                ONE Consolidation Loan.
          ``(2) Borrower application requirements.--
                  ``(A) In general.--An application submitted by a 
                borrower under this subsection to the Secretary shall--
                          ``(i) certify the borrower's receipt of loan 
                        proceeds, in whole or in part, to attend the 
                        named institution of higher education;
                          ``(ii) provide evidence described in 
                        subparagraph (B) that supports a borrower 
                        defense to repayment of the loan; and
                          ``(iii) indicate whether the borrower has 
                        made a claim with respect to the information 
                        underlying the borrower defense with any third 
                        party and, if so, the amount of any payment 
                        received by the borrower or credited to the 
                        borrower's loan obligation.
                  ``(B) Evidence.--The borrower has a borrower defense 
                if--
                          ``(i) the borrower, whether as an individual 
                        or as a member of a class, or a governmental 
                        agency, has obtained against the institution of 
                        higher education a nondefault, favorable 
                        contested judgment based on State or Federal 
                        law in a court or administrative tribunal of 
                        competent jurisdiction;
                          ``(ii) the institution of higher education 
                        for which the borrower received the loan made 
                        under this part failed to perform its 
                        obligations under the terms of a contract with 
                        the student; or
                          ``(iii) the institution of higher education 
                        described in clause (ii) or any of its 
                        representatives engaged directly in marketing, 
                        recruitment or admissions activities, or any 
                        other institution of higher education, 
                        organization, or person with whom such 
                        institution has an agreement to provide 
                        educational programs, or to provide marketing, 
                        advertising, recruiting, or admissions 
                        services, made a substantial misrepresentation 
                        within the meaning of section 
                        487(c)(3)(B)(i)(II) that the borrower 
                        reasonably relied on when the borrower decided 
                        to attend, or to continue attending, such 
                        institution.
          ``(3) Secretarial notification requirements.--
                  ``(A)  Receipt of application.--Upon receipt of a 
                borrower's application, the Secretary--
                          ``(i) if the borrower is not in default on 
                        the loan for which a borrower defense has been 
                        asserted, shall grant a forbearance and notify 
                        the borrower of the option to decline the 
                        forbearance and to continue making payments on 
                        the loan;
                          ``(ii) if the borrower is in default on the 
                        loan for which a borrower defense has been 
                        asserted--
                                  ``(I) shall suspend collection 
                                activity on the loan until the 
                                Secretary issues a decision on the 
                                borrower's claim;
                                  ``(II) shall notify the borrower of 
                                the suspension of collection activity 
                                and explain that collection activity 
                                will resume if the Secretary determines 
                                that the borrower does not qualify for 
                                a full discharge; and
                                  ``(III) shall notify the borrower of 
                                the option to continue making payments 
                                under a rehabilitation agreement or 
                                other repayment agreement on the 
                                defaulted loan; and
                          ``(iii) shall to the extent possible, notify 
                        the institutions against which the application 
                        is filed, which notification shall include--
                                  ``(I) the reasons that the 
                                application has been filed; and
                                  ``(II) the amount of relief 
                                requested.
                  ``(B) Approved application.--If a borrower's 
                application is approved in full or in part, the 
                Secretary shall--
                          ``(i) notify the borrower and the institution 
                        in writing of that determination and of the 
                        relief provided; and
                          ``(ii) inform the institution of the 
                        opportunity to request a one-time 
                        reconsideration of the claim in the application 
                        if new evidence that was not previously 
                        provided can be identified.
                  ``(C) Application not approved.--If a borrower's 
                application is not approved in full or in part, the 
                Secretary--
                          ``(i) shall notify the borrower and the 
                        institution of the reasons for the denial, the 
                        evidence that was relied upon, any portion of 
                        the loan that is due and payable to the 
                        Secretary, whether the Secretary will reimburse 
                        any amounts previously collected, and inform 
                        the borrower that the loan will return to its 
                        status prior to the borrower's submission of 
                        the application; and
                          ``(ii) shall inform the borrower of the 
                        opportunity to request a one-time 
                        reconsideration of the claim in the application 
                        if new evidence that was not previously 
                        provided can be identified.
                  ``(D) Consolidation.--During a proceeding for an 
                individual borrower, the Secretary may consolidate 
                individually-filed applications that have common facts 
                and claims and resolve the borrowers' borrower defense 
                claims for faster processing.
                  ``(E) New evidence defined.--For purposes of this 
                paragraph, the term `new evidence' means relevant 
                evidence that the borrower or the institution did not 
                previously provide and that was not identified in the 
                final decision as evidence that was relied upon for the 
                final decision. If accepted for reconsideration by the 
                Secretary, the Secretary shall follow the procedure 
                under this paragraph.
                  ``(F) Notification.--After a borrower submits an 
                application, the Secretary shall include in the 
                notification to the borrower--
                          ``(i) the actions, including deadlines and 
                        document requests, that will be taken by the 
                        Secretary when processing an application by the 
                        borrower; and
                          ``(ii) that the final action by the Secretary 
                        shall be available for review under subchapter 
                        II of chapter 5, and chapter 7, of title 5, 
                        United States Code (commonly known as the 
                        `Administrative Procedure Act').
                  ``(G) Timely approval process.--During a proceeding 
                for an individual borrower, the Secretary shall process 
                a submitted application and notify the borrower of the 
                final determination in a manner that is timely and 
                efficient.
                  ``(H) Report.--Not later than two years after the 
                date of enactment of the PROSPER Act, the Secretary 
                shall submit to the authorizing committees a report 
                that includes--
                          ``(i) the established policies and procedures 
                        for processing applications;
                          ``(ii) the established policies and 
                        procedures for approving an application;
                          ``(iii) the established policies and 
                        procedures for denying an application;
                          ``(iv) the method used to calculate the 
                        amount and type of relief to be awarded to 
                        borrowers who submit an application; and
                          ``(v) the established timeframes for the 
                        policies and procedures identified in clauses 
                        (i) through (iii).
          ``(4) Calculation of relief.--The Secretary shall determine 
        the appropriate method for calculating the amount of relief to 
        be awarded to a borrower as a result of a proceeding described 
        in this subsection based on the materials, facts, and evidence 
        presented during the proceeding.
          ``(5) Further relief.--The Secretary may afford the borrower 
        such further relief as the Secretary determines is appropriate 
        under the circumstances, but which shall not exceed the 
        following:
                  ``(A) Reimbursing the borrower for amounts paid 
                toward the loan voluntarily or through enforced 
                collection.
                  ``(B) Restoring eligibility for assistance under this 
                title after determining that the borrower is not in 
                default on the loan.
                  ``(C) Updating reports to consumer reporting agencies 
                to which the Secretary previously made adverse credit 
                reports with regard to a loan made under this part 
                after July 1, 2018.
          ``(6) Recovery.--
                  ``(A) In general.--The Secretary may initiate an 
                appropriate proceeding to require the institution of 
                higher education whose act or omission resulted in the 
                borrower's successful defense against repayment of a 
                loan made under this part to pay to the Secretary the 
                amount of the loan to which the defense applies not 
                later than 3 years from the end of the last award year 
                in which the student attended the institution.
                  ``(B) Notice.--The Secretary may initiate a 
                proceeding to collect at any time if the institution 
                received notice of the claim before the end of the 
                later of the periods described in subparagraph (A). For 
                purposes of this subparagraph, notice includes receipt 
                of--
                          ``(i) actual notice from the borrower, from a 
                        representative of the borrower, or from the 
                        Department;
                          ``(ii) a class action complaint asserting 
                        relief for a class that may include the 
                        borrower; or
                          ``(iii) written notice, including a civil 
                        investigative demand or other written demand 
                        for information, from a Federal or State agency 
                        that has power to initiate an investigation 
                        into conduct of the institution of higher 
                        education relating to specific programs, 
                        periods, or practices that may have affected 
                        the borrower.''.

SEC. 453. PLAIN LANGUAGE DISCLOSURE FORM.

  (a) Plain Language Disclosure Form.--Section 455(p) (20 U.S.C. 
1087e(p)) is amended to read as follows:
  ``(p) Disclosures.--
          ``(1) In general.--The Secretary shall, with respect to loans 
        under this part and in accordance with such regulations as the 
        Secretary shall prescribe, comply with each of the requirements 
        under section 433 that apply to a lender with respect to a loan 
        under part B.
          ``(2) Plain language disclosure form.--
                  ``(A) Development and issuance of form.--Not later 
                than 24 months after the date of the enactment of this 
                paragraph, the Secretary shall, based on consumer 
                testing, develop and issue a model form to be known as 
                the `Plain Language Disclosure Form' that shall be used 
                by the Secretary to comply with paragraph (1).
                  ``(B) Format.--The Secretary shall ensure that the 
                Plain Language Disclosure Form--
                          ``(i) enables borrowers to easily identify 
                        the information required to be disclosed under 
                        section 433(a) with respect to a loan, with 
                        emphasis on the loan terms determined by the 
                        Secretary, based on consumer testing, to be 
                        critical to understanding the total costs of 
                        the loan and the estimated monthly repayment;
                          ``(ii) has a clear format and design, 
                        including easily readable font; and
                          ``(iii) is as succinct as practicable.
                  ``(C) Consultation.--In developing Plain Language 
                Disclosure Form, the Secretary shall, as appropriate, 
                consult with--
                          ``(i) the Federal Reserve Board;
                          ``(ii) borrowers of loans under this part; 
                        and
                          ``(iii) other organizations involved in the 
                        provision of financial assistance to students, 
                        as identified by the Secretary.
          ``(3) Electronic system for compliance.--In carrying out 
        paragraph (2), Secretary shall develop and implement an 
        electronic system to generate a Plain Language Disclosure Form 
        for each borrower that includes personalized information about 
        the borrower and the borrower's loans.
          ``(4) Limit on liability.--Nothing in this subsection shall 
        be construed to create a private right of action against the 
        Secretary with respect to the form or electronic system 
        developed under this paragraph.
          ``(5) Borrower signature required.--Beginning after the 
        issuance of the Plain Language Disclosure Form by the Secretary 
        under paragraph (2), a loan may not be issued to a borrower 
        under this part unless the borrower acknowledges to the 
        Secretary, in writing (which may include an electronic 
        signature), that the borrower has read the Plain Language 
        Disclosure Form for the loan concerned.
          ``(6) Consumer testing defined.--In this subsection, the term 
        `consumer testing' means the solicitation of feedback from 
        individuals, including borrowers and prospective borrowers of 
        loans under this part (as determined by the Secretary), about 
        the usefulness of different methods of disclosing material 
        terms of loans on the Plain Language Disclosure Form to 
        maximize borrowers' understanding of the terms and conditions 
        of such loans.''.
  (b) Report to Congress.--Not later than 3 years after the date of the 
enactment of this Act, the Secretary of Education shall submit to 
Congress a report that includes a description of the methods and 
procedures used to develop the Plain Language Disclosure Form required 
under section 455(p)(2) of the Higher Education Act of 1965 (as added 
by subsection (a) of this section).

SEC. 454. ADMINISTRATIVE EXPENSES.

  Section 458(a) (20 U.S.C. 1087h)--
          (1) in paragraph (3)--
                  (A) by striking ``2007'' each place it appears, 
                including in any headings, and inserting ``2019'';
                  (B) by striking ``2014'' each place it appears, 
                including in any headings, and inserting ``2024''; and
                  (C) by striking ``part and part B, including the 
                costs of the direct student loan programs under this 
                part'' and inserting ``title'';
          (2) in paragraph (4), by striking ``2017'' and inserting 
        ``2024'';
          (3) in paragraph (6)--
                  (A) in subparagraph (B), by striking ``2010'' and 
                inserting ``2019''; and
                  (B) in subparagraph (C), by striking ``training'' and 
                inserting ``education'';
          (4) by striking paragraph (7); and
          (5) by redesignating paragraph (8) as paragraph (7).

SEC. 455. LOAN CANCELLATION FOR TEACHERS.

  Section 460(b)(1)(A) (20 U.S.C. 1087j(b)(1)(A)) is amended by 
striking ``that qualifies under section 465(a)(2)(A) for loan 
cancellation for Perkins loan recipients who teach in such schools or 
locations'' and inserting ``described in section 420N(b)(1)(B)''.

                       PART E--FEDERAL ONE LOANS

SEC. 461. WIND-DOWN OF FEDERAL PERKINS LOAN PROGRAM.

  (a) In General.--Except as otherwise provided in this section and 
notwithstanding section 462, the provisions of part E of title IV of 
the Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in 
effect on the day before the date of enactment of this Act, are deemed 
to be incorporated in this subsection as though set forth fully in this 
subsection, and shall have the same force and effect as on such day.
  (b) Close-out Audits.--
          (1) In general.--In the case of an institution of higher 
        education that desires to have a final audit of its 
        participation under the program under part E of title IV of the 
        Higher Education Act of 1965 (20 U.S.C. 1087aa et seq.), as in 
        effect pursuant to subsection (a), at the same time as its 
        annual financial and compliance audit under section 487(c) of 
        such Act (20 U.S.C. 1094(c)), such institution shall submit to 
        the Secretary a request, in writing, for such an arrangement 
        not later than 60 days after the institution terminates its 
        participation under such program.
          (2) Termination of participation.--For purposes of this 
        subsection, an institution shall be considered to have 
        terminated its participation under the program described in 
        paragraph (1), if the institution--
                  (A)(i) has made a determination not to service and 
                collect student loans made available from funds under 
                part E of title IV of the Higher Education Act of 1965 
                (20 U.S.C. 1087aa et seq.), as in effect pursuant to 
                subsection (a); or
                  (ii) has completed the servicing and collection of 
                such student loans; and
                  (B) has completed the asset distribution required 
                under section 466(b) of the Higher Education Act of 
                1965 (20 U.S.C. 1087ff(b)), as in effect pursuant to 
                subsection (a).
  (c) Collection of Interest on Certain Student Loans.--In the case of 
an institution of higher education that, on or after October 1, 2006, 
loaned an amount to its student loan fund established under part E of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et 
seq.), as in effect pursuant to subsection (a), for the purpose of 
making student loans from such fund, and that, before the date of 
enactment of this Act, has repaid to itself the amount loaned to such 
student loan fund, the institution shall collect any interest earned on 
such student loans.
  (d) Assignment of Loans to Secretary.--Notwithstanding the 
requirements of section 463(a)(5) of the Higher Education Act of 1965 
(20 U.S.C. 1087cc(a)(5)), as in effect pursuant to subsection (a), if 
an institution of higher education determines not to service and 
collect student loans made available from funds under part E of such 
Act (20 U.S.C. 1087aa et seq.), as so in effect--
          (1) the institution shall assign, during the repayment 
        period, any notes or evidence of obligations of student loans 
        made from such funds to the Secretary; and
          (2) the Secretary shall deposit any sums collected on such 
        notes or obligations (less an amount not to exceed 30 percent 
        of any such sums collected to cover that Secretary's collection 
        costs) into the Treasury of the United States.
  (e) Closed School Discharge.--The amendments made by section 428 to 
section 437(c) of the Higher Education Act of 1965 (20 U.S.C. 1087), 
relating to closed school discharge, shall apply with respect to any 
loans discharged on or after the date of enactment of this Act under 
section 464(g) of such Act (20 U.S.C. 10877dd(g)), as in effect 
pursuant to subsection (a)).

SEC. 462. FEDERAL ONE LOAN PROGRAM.

  Part E of title IV (20 U.S.C. 1087aa et seq.) is amended to read as 
follows:

                   ``PART E--FEDERAL ONE LOAN PROGRAM

``SEC. 461. PROGRAM AUTHORITY.

  ``(a) In General.--There are hereby made available, in accordance 
with the provisions of this part, such sums as may be necessary to make 
loans to all eligible students (and the eligible parents of such 
students) in attendance at participating institutions of higher 
education selected by the Secretary to enable such students to pursue 
their courses of study at such institutions during the period beginning 
July 1, 2019. Loans made under this part shall be made by participating 
institutions that have agreements with the Secretary to originate 
loans.
  ``(b) Designation.--The program established under this part shall be 
referred to as the `Federal ONE Loan Program'.
  ``(c) ONE Loans.--Except as otherwise specified in this part, loans 
made to borrowers under this part shall be known as `Federal ONE 
Loans'.

``SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS.

  ``(a) In General.--The Secretary shall provide, on the basis of 
eligibility of students at each participating institution, and parents 
of such students, for such loans, funds for student and Parent Loans 
under this part directly to an institution of higher education that has 
an agreement with the Secretary under section 464(a) to participate in 
the Federal ONE Loan Program under this part and that also has an 
agreement with the Secretary under section 464(b) to originate loans 
under this part.
  ``(b) Parallel Terms.--Subsections (b), (c), and (d) of section 452 
shall apply to the loan program under this part in the same manner that 
such subsections apply to the loan program under part D.

``SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND 
                    ORIGINATION.

  ``(a) General Authority.--The Secretary shall enter into agreements 
pursuant to section 464(a) with institutions of higher education to 
participate in the Federal ONE Loan Program under this part, and 
agreements pursuant to section 464(b) with institutions of higher 
education, to originate loans in such program, for academic years 
beginning on or after July 1, 2019. Such agreements for the academic 
year 2019-2020 shall, to the extent feasible, be entered into not later 
than January 1, 2019.
  ``(b) Selection Criteria and Procedure.--The application and 
selection procedure for an institution of higher education desiring to 
participate in the loan program under this part shall be the 
application and selection procedure described in section 453(b) for an 
institution of higher education desiring to participate in the loan 
program under part D.
  ``(c) Eligible Institutions.--The Secretary may not select an 
institution of higher education for participation under this part 
unless such institution is an eligible institution under section 
487(a).

``SEC. 464. AGREEMENTS WITH INSTITUTIONS.

  ``(a) Participation Agreements.--An agreement with any institution of 
higher education for participation in the Federal ONE Loan Program 
under this part shall--
          ``(1) provide for the establishment and maintenance of a 
        direct student loan program at the institution under which the 
        institution will--
                  ``(A) identify eligible students who seek student 
                financial assistance at such institution in accordance 
                with section 484;
                  ``(B) provide a statement that certifies the 
                eligibility of any student to receive a loan under this 
                part that is not in excess of the annual or aggregate 
                limit applicable to such loan, except that the 
                institution may, in exceptional circumstances 
                identified by the Secretary pursuant to section 
                454(a)(1)(C), refuse to certify a statement that 
                permits a student to receive a loan under this part, if 
                the reason for such action is documented and provided 
                in written form to such student;
                  ``(C) set forth a schedule for disbursement of the 
                proceeds of the loan in installments, consistent with 
                the requirements of section 465(a); and
                  ``(D) provide timely and accurate information, 
                concerning the status of student borrowers (and 
                students on whose behalf parents borrow under this 
                part) while such students are in attendance at the 
                institution and concerning any new information of which 
                the institution becomes aware for such students (or 
                their parents) after such borrowers leave the 
                institution, to the Secretary for the servicing and 
                collecting of loans made under this part;
          ``(2) provide assurances that the institution will comply 
        with requirements established by the Secretary relating to 
        student loan information with respect to loans made under this 
        part;
          ``(3) provide that the institution accepts responsibility and 
        financial liability stemming from its failure to perform its 
        functions pursuant to the agreement;
          ``(4) provide for the implementation of a quality assurance 
        system, as established by the Secretary and developed in 
        consultation with institutions of higher education, to ensure 
        that the institution is complying with program requirements and 
        meeting program objectives; and
          ``(5) provide that the institution will not charge any fees 
        of any kind, however described, to student or parent borrowers 
        for origination activities or the provision of any information 
        necessary for a student or parent to receive a loan under this 
        part, or any benefits associated with such loan.
  ``(b) Origination.--An agreement with any institution of higher 
education for the origination of loans under this part shall--
          ``(1) supplement the agreement entered into in accordance 
        with subsection (a);
          ``(2) include provisions established by the Secretary that 
        are similar to the participation agreement provisions described 
        in paragraphs (2), (3), (4), and (5) of subsection (a), as 
        modified to relate to the origination of loans by the 
        institution;
          ``(3) provide that the institution will originate loans to 
        eligible students and parents in accordance with this part; and
          ``(4) provide that the note or evidence of obligation on the 
        loan shall be the property of the Secretary.
  ``(c) Withdrawal Procedures.--
          ``(1) In general.--An institution of higher education 
        participating in the Federal ONE Loan Program under this part 
        may withdraw from the program by providing written notice to 
        the Secretary of the intent to withdraw not less than 60 days 
        before the intended date of withdrawal.
          ``(2) Date of withdrawal.--Except in cases in which the 
        Secretary and an institution of higher education agree to an 
        earlier date, the date of withdrawal from the Federal ONE Loan 
        Program under this part of an institution of higher education 
        shall be the later of--
                  ``(A) 60 days after the institution submits the 
                notice required under paragraph (1); or
                  ``(B) a date designated by the institution.

``SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIMITS, INTEREST RATES, 
                    AND LOAN FEES.

  ``(a) Requirements for Disbursement of Student Loans.--
          ``(1) Multiple disbursement required.--
                  ``(A) Required disbursements.--The proceeds of any 
                loan made under this part that is made for any period 
                of enrollment shall be disbursed as follows:
                          ``(i) The disbursement of the first 
                        installment of proceeds shall, with respect to 
                        any student other than a student described in 
                        subparagraph (B)(i), be made not more than 30 
                        days prior to the beginning of the period of 
                        enrollment, and not later than 30 days after 
                        the beginning of such period of enrollment.
                          ``(ii) The disbursement of an installment of 
                        proceeds shall be made in substantially equal 
                        monthly or weekly installments over the period 
                        of enrollment for which the loan was made, 
                        except that installments may be unequal as 
                        necessary to permit the institution to adjust 
                        for unequal costs (which may include upfront 
                        costs such as tuition and fees) incurred or 
                        estimated financial assistance received by the 
                        student, or based on the academic progress of 
                        the student.
                  ``(B) Disbursement of credit balances.--
                          ``(i) Type of disbursement.--The credit 
                        balances of any loan made under this part that 
                        is made for any period of enrollment shall be 
                        disbursed by--
                                  ``(I) an electronic transfer of funds 
                                to the borrower's financial account;
                                  ``(II) a check for the amount payable 
                                to, and requiring the endorsement of, 
                                the borrower;
                                  ``(III) an access device in 
                                accordance with clause (ii); or
                                  ``(IV) a cash payment for which the 
                                institution obtains a receipt signed by 
                                the borrower.
                          ``(ii) Usage of access device.--An 
                        institution may enter into an agreement with a 
                        third-party servicer for the delivery of funds 
                        awarded under this part in which the third-
                        party servicer provides the borrower with an 
                        unvalidated access device for accessing credit 
                        balances of any loan if--
                                  ``(I) the agreement provides that the 
                                access device must bear a prominent 
                                disclosure informing the borrower that 
                                the borrower is not required to use 
                                such access device and open such an 
                                account in order to access the 
                                student's funds under this part;
                                  ``(II) the agreement provides that 
                                the consent of the borrower is obtained 
                                before the access device is validated 
                                to enable the student to access the 
                                account;
                                  ``(III) the agreement provides for 
                                the protection of the borrower against 
                                fraud; and
                                  ``(IV) the institution documents that 
                                it has conducted a reasonable due 
                                diligence review before entering into 
                                the agreement, and will conduct such a 
                                review at least every two years to 
                                ensure that--
                                          ``(aa) the fees applicable to 
                                        such account are, considered as 
                                        a whole, below prevailing 
                                        market rates; and
                                          ``(bb) the terms and 
                                        conditions of such account are 
                                        otherwise consistent with 
                                        prevailing market terms and 
                                        conditions.
                  ``(C) First year students.--
                          ``(i) In general.--The first installment of 
                        the proceeds of any loan made under this part 
                        that is made to a student borrower who is 
                        entering the first year of a program of 
                        undergraduate education, and who has not 
                        previously obtained a loan under this part, 
                        shall not (regardless of the amount of such 
                        loan or the duration of the period of 
                        enrollment) be presented by the institution of 
                        higher education to the student for endorsement 
                        until 30 days after the borrower begins a 
                        course of study, but may be delivered to the 
                        eligible institution prior to the end of that 
                        30-day period.
                          ``(ii) Exemption.--An institution of higher 
                        education in which each educational program has 
                        a loan repayment rate (as determined under 
                        section 481B(c)) for the most recent fiscal 
                        year for which data are available that is 
                        greater than 60 percent shall be exempt from 
                        the requirements of clause (i).
          ``(2) Withdrawing of succeeding disbursements.--
                  ``(A) Withdrawing students.--In the case in which the 
                Secretary is informed by the borrower or the 
                institution that the borrower has ceased to be enrolled 
                before the disbursement of the second or any succeeding 
                installment, the Secretary shall withhold such 
                disbursement. Any disbursement which is so withheld 
                shall be credited to the borrower's loan and treated as 
                a prepayment on the principal of the loan.
                  ``(B) Students receiving over-awards.--If the sum of 
                a disbursement for any borrower and the other financial 
                aid obtained by borrower exceeds the amount of 
                assistance for which the borrower is eligible under 
                this title, the institution the borrower, or dependent 
                student, in the case of a parent borrower, is attending 
                shall withhold and return to the Secretary the portion 
                (or all) of such installment that exceeds such eligible 
                amount, except that overawards permitted pursuant to 
                section 443(b)(4) shall not be construed to be 
                overawards for purposes of this subparagraph. Any 
                portion (or all) of a disbursement installment which is 
                so returned shall be credited to the borrower's loan 
                and treated as a prepayment on the principal of the 
                loan.
          ``(3) Exclusion of consolidation and foreign study loans.--
        The provisions of this subsection shall not apply in the case 
        of a Federal ONE Consolidation Loan, or a loan made to a 
        student to cover the cost of attendance in a program of study 
        abroad approved by the home eligible institution if each of the 
        educational programs of such home eligible institution has a 
        loan repayment rate (as calculated under section 481B(c)) for 
        the most recent fiscal year for which data are available of 
        greater than 70 percent.
          ``(4) Beginning of period of enrollment.--For purposes of 
        this subsection, a period of enrollment begins on the first day 
        that classes begin for the applicable period of enrollment.
  ``(b) Amount of Loan.--
          ``(1) In general.--The determination of the amount of a loan 
        disbursed by an eligible institution under this section shall 
        be the lesser of--
                  ``(A) an amount that is equal to the estimated loan 
                amount, as determined by the institution by 
                calculating--
                          ``(i) the estimated cost of attendance at the 
                        institution; minus
                          ``(ii)(I) any estimated financial assistance 
                        reasonably available to such student, including 
                        assistance that the student will receive from a 
                        Federal grant, including a Federal Pell Grant, 
                        a State grant, an institutional grant, or a 
                        scholarship or grant from another source, that 
                        is known to the institution at the time the 
                        student's determination of need is made; and
                          ``(II) in the case of a loan to a parent, the 
                        amount of a loan awarded under this part to the 
                        parent's child; or
                  ``(B) the maximum Federal loan amount for which such 
                borrower is eligible in accordance with paragraph (2).
          ``(2) Loan limits.--
                  ``(A) Annual limits.--Except as provided under 
                subparagraph (B), (C), or (D), the amount of loans made 
                under this part that an eligible student or parent 
                borrower may borrow for an academic year shall be as 
                follows:
                          ``(i) Undergraduate students.--With respect 
                        to enrollment in a program of undergraduate 
                        education at an eligible institution--
                                  ``(I) in the case of a dependent 
                                student--
                                          ``(aa) who has not 
                                        successfully completed the 
                                        first year of a program of 
                                        undergraduate education, 
                                        $7,500;
                                          ``(bb) who has successfully 
                                        completed such first year but 
                                        has not successfully completed 
                                        the remainder of a program of 
                                        undergraduate education, 
                                        $8,500; and
                                          ``(cc) who has successfully 
                                        completed the first and second 
                                        years of a program of 
                                        undergraduate education but has 
                                        not successfully completed the 
                                        remainder of such program, 
                                        $9,500;
                                  ``(II) in the case of an independent 
                                student, or a dependent student whose 
                                parents are unable to borrow a loan 
                                under this part on behalf of such 
                                student--
                                          ``(aa) who has not 
                                        successfully completed the 
                                        first year of a program of 
                                        undergraduate education, 
                                        $11,500;
                                          ``(bb) who has successfully 
                                        completed such first year but 
                                        has not successfully completed 
                                        the remainder of a program of 
                                        undergraduate education, 
                                        $12,500; and
                                          ``(cc) who has successfully 
                                        completed the first and second 
                                        years of a program of 
                                        undergraduate education but has 
                                        not successfully completed the 
                                        remainder of such program, 
                                        $14,500; and
                                  ``(III) in the case of a student who 
                                is enrolled in a program of 
                                undergraduate education that is less 
                                than one academic year, the maximum 
                                annual loan amount that such student 
                                may receive may not exceed the amount 
                                that bears the same ratio to the amount 
                                specified in subclause (I) or (II), as 
                                applicable, as the length of such 
                                program measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year.
                          ``(ii) Graduate or professional students.--In 
                        the case of a graduate or professional student 
                        for enrollment in a program of graduate or 
                        professional education at an eligible 
                        institution, $28,500.
                          ``(iii) Parent borrowers.--In the case of a 
                        parent borrowing a loan under this part on 
                        behalf of a dependent student for the student's 
                        enrollment in a program of undergraduate 
                        education at an eligible institution, $12,500 
                        per each such student.
                          ``(iv) Coursework for undergraduate 
                        enrollment.--With respect to enrollment in 
                        coursework specified in section 484(b)(3)(B) 
                        necessary for enrollment in an undergraduate 
                        degree or certificate program--
                                  ``(I) in the case of a dependent 
                                student, $2,625;
                                  ``(II) in the case of a parent 
                                borrowing a loan under this part on 
                                behalf of a dependent student for the 
                                student's enrollment in such 
                                coursework, $6,000; and
                                  ``(III) in the case an independent 
                                student, or a dependent student whose 
                                parents are unable to borrow a loan 
                                under this part on behalf of such 
                                student, $8,625.
                          ``(v) Coursework for graduate or professional 
                        enrollment or teacher employment.--With respect 
                        to the enrollment of a student who has obtained 
                        a baccalaureate degree in coursework specified 
                        in section 484(b)(3)(B) necessary for 
                        enrollment in a graduate or professional degree 
                        or certificate program, or coursework specified 
                        in section 484(b)(4)(B) necessary for a 
                        professional credential or certification from a 
                        State required for employment as a teacher in 
                        an elementary or secondary school, in the case 
                        of a student (without regard to whether the 
                        student is a dependent student or dependent 
                        student), $12,500.
                  ``(B) Aggregate limits.--Except as provided under 
                subparagraph (C), (D), or (E), the maximum aggregate 
                amount of loans under this part and parts B and D that 
                an eligible student or parent borrower may borrow shall 
                be--
                          ``(i) for enrollment in a program of 
                        undergraduate education at an eligible 
                        institution, including for enrollment in 
                        coursework described in clause (iv) or (v) of 
                        subparagraph (A)--
                                  ``(I) in the case of a dependent 
                                student, $39,000;
                                  ``(II) in the case of an independent 
                                student, or an dependent student whose 
                                parents are unable to receive a loan 
                                under this part on behalf of such 
                                student, $60,250; and
                                  ``(III) in the case of a parent 
                                borrowing a loan under this part on 
                                behalf of a dependent student for the 
                                student's enrollment in such a program, 
                                $56,250 per each such student.
                          ``(ii) in the case of a graduate or 
                        professional student for enrollment in a 
                        program of graduate or professional education 
                        at an eligible institution, $150,000.
                  ``(C) Application of limits to borrowers with part b 
                or d loans.--
                          ``(i) Graduate or professional students.--In 
                        the case of a graduate or professional student 
                        who is not described in subparagraph (E) and 
                        who has received loans made under part B or D 
                        for enrollment in a graduate or professional 
                        program at an eligible institution, the total 
                        amount of which equal or exceed $28,500 as of 
                        the time of disbursement, the student may 
                        continue to borrow the amount of loans under 
                        this part necessary to complete such program 
                        without regard to the aggregate limit under 
                        subparagraph (B)(ii), except that the--
                                  ``(I) amount of such loans shall not 
                                exceed the annual limits under 
                                subparagraph (A)(ii) for any academic 
                                year beginning after June 30, 2019; and
                                  ``(II) authority to borrow loans in 
                                accordance with this subclause shall 
                                terminate at the end of the academic 
                                year ending before September 30, 2024.
                          ``(ii) Parent borrowers.--In the case of a 
                        parent borrower who has received loans made 
                        under part B or D on behalf of a dependent 
                        student for the student's enrollment in a 
                        program of undergraduate education at an 
                        eligible institution, the total amount of which 
                        equal or exceed $12,500 for such student as of 
                        the time of disbursement, the parent borrower 
                        may continue to borrow the amount of loans 
                        under this part necessary for such student to 
                        complete such program without regard to the 
                        aggregate limit under subparagraph (B)(i)(III), 
                        except that the--
                                  ``(I) amount of such loans shall not 
                                exceed the annual limits under 
                                subparagraph (A)(iii) for any academic 
                                year beginning after June 30, 2019; and
                                  ``(II) the authority to borrow loans 
                                in accordance with this subclause shall 
                                terminate at the end of the academic 
                                year ending before September 30, 2024.
                  ``(D) Institutional determined limits.--
                          ``(i) In general.--Notwithstanding any other 
                        provision of this subsection, an eligible 
                        institution (at the discretion of a financial 
                        aid administrator at the institution) may 
                        prorate or limit the amount of a loan any 
                        student enrolled in a program of study at that 
                        institution may borrow under this part for an 
                        academic year--
                                  ``(I) if the institution, using the 
                                most recently available data from the 
                                Bureau of Labor Statistics for the 
                                average starting salary in the region 
                                in which the institution is located for 
                                typical occupations pursued by 
                                graduates of such program, can 
                                reasonably demonstrate that student 
                                debt levels are or would be excessive 
                                for such program;
                                  ``(II) in a case in which the student 
                                is enrolled on a less than full-time 
                                basis or the student is enrolled for 
                                less than the period of enrollment to 
                                which the annual loan limit applies 
                                under this subsection, based on the 
                                student's enrollment status;
                                  ``(III) based on the credential level 
                                (such as a degree, certificate, or 
                                other recognized educational 
                                credential) that the student would 
                                attain upon completion of such program; 
                                or
                                  ``(IV) based on the year of the 
                                program for which the student is 
                                seeking such loan.
                          ``(ii) Application to all students.--Any 
                        proration or limiting of loan amounts under 
                        clause (i) shall be applied in the same manner 
                        to all students enrolled in the institution or 
                        program of study.
                          ``(iii) Increases for individual students.--
                        Upon the request of a student whose loan amount 
                        for an academic year has been prorated or 
                        limited under clause (i), an eligible 
                        institution (at the discretion of the financial 
                        aid administrator at the institution) may 
                        increase such loan amount to an amount not 
                        exceeding the annual loan amount applicable to 
                        such student under this subparagraph for such 
                        academic year if such student demonstrates 
                        special circumstances or exceptional need.
                  ``(E) Increases for certain graduate or professional 
                students.--
                          ``(i) Additional annual amounts.--Subject to 
                        clause (iii) of this subparagraph, in addition 
                        to the loan amount for an academic year 
                        described in subparagraph (A)(ii)--
                                  ``(I) a graduate or professional 
                                student who is enrolled in a program of 
                                study to become a doctor of allopathic 
                                medicine, doctor of osteopathic 
                                medicine, doctor of dentistry, doctor 
                                of veterinary medicine, doctor of 
                                optometry, doctor of podiatric 
                                medicine, doctor of naturopathic 
                                medicine, or doctor of naturopathy may 
                                borrow an additional--
                                          ``(aa) in the case of a 
                                        program with a 9-month academic 
                                        year, $20,000 for an academic 
                                        year; or
                                          ``(bb) in the case of a 
                                        program with a 12-month 
                                        academic year, $26,667 for an 
                                        academic year; and
                                  ``(II) a graduate or professional 
                                student who is enrolled in a program of 
                                study to become a doctor of pharmacy, 
                                doctor of chiropractic medicine, or a 
                                physician's assistant, or receive a 
                                graduate degree in public health, 
                                doctoral degree in clinical psychology, 
                                or a masters or doctoral degree in 
                                health administration may borrow an 
                                additional--
                                          ``(aa) in the case of a 
                                        program with a 9-month academic 
                                        year, $12,500 for an academic 
                                        year; or
                                          ``(bb) in the case of a 
                                        program with a 12-month 
                                        academic year, $16,667 for an 
                                        academic year.
                          ``(ii) Aggregate limit.--Subject to clause 
                        (iii) of this subparagraph, the maximum 
                        aggregate amount of loans under this part and 
                        parts B and D that a student described in 
                        clause (i) may borrow shall be $235,500.
                          ``(iii) Limitation.--In the case of a 
                        graduate or professional student described in 
                        clause (i) of this subparagraph who has 
                        received loans made under part B or D for 
                        enrollment in a graduate or professional 
                        program at an eligible institution, the total 
                        amount of which equal or exceed $28,500 as of 
                        the time of disbursement, the student may 
                        continue to borrow the amount of loans under 
                        this part necessary to complete such program 
                        without regard to the aggregate limit under 
                        clause (ii) of this subparagraph, except that 
                        the--
                                  ``(I) amount of such loans shall not 
                                exceed the annual limits under clause 
                                (i) of this subparagraph for any 
                                academic year beginning after June 30, 
                                2019; and
                                  ``(II) authority to borrow loans in 
                                accordance with this subclause shall 
                                terminate at the end of the academic 
                                year ending before September 30, 2024.
  ``(c) Interest Rate Provisions for Federal ONE Loans.--
          ``(1) Undergraduate one loans.--For Federal ONE Loans issued 
        to undergraduate students, the applicable rate of interest 
        shall, for loans disbursed 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 the lesser of--
                  ``(A) a rate equal to the high yield of the 10-year 
                Treasury note auctioned at the final auction held prior 
                to such June 1 plus 2.05 percent; or
                  ``(B) 8.25 percent.
          ``(2) Graduate and professional one loans.--For Federal ONE 
        Loans issued to graduate or professional students, the 
        applicable rate of interest shall, for loans disbursed 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 the 
        lesser of--
                  ``(A) a rate equal to the high yield of the 10-year 
                Treasury note auctioned at the final auction held prior 
                to such June 1 plus 3.6 percent; or
                  ``(B) 9.5 percent.
          ``(3) Parent one loans.--For Federal ONE Parent Loans, the 
        applicable rate of interest shall, for loans disbursed 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 the 
        lesser of--
                  ``(A) a rate equal to the high yield of the 10-year 
                Treasury note auctioned at the final auction held prior 
                to such June 1 plus 4.6 percent; or
                  ``(B) 10.5 percent.
          ``(4) Consolidation loans.--Any Federal ONE Consolidation 
        Loan for which the application is received on or after July 1, 
        2019, shall bear interest at an annual rate on the unpaid 
        principal balance of the loan that is equal to the weighted 
        average of the interest rates on the loans consolidated, 
        rounded to the nearest higher one-eighth of one percent.
          ``(5) 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.
          ``(6) Rate.--The applicable rate of interest determined under 
        this subsection for a loan under this part shall be fixed for 
        the period of the loan.
  ``(d) Prohibition on Certain Repayment Incentives.--Notwithstanding 
any other provision of this part, the Secretary is prohibited from 
authorizing or providing any repayment incentive or subsidy not 
otherwise authorized under this part to encourage on-time repayment of 
a loan under this part, including any reduction in the interest paid by 
a borrower of such a loan, except that the Secretary may provide for an 
interest rate reduction of not more than 0.25 percentage points for a 
borrower who agrees to have payments on such a loan automatically 
debited from a bank account.
  ``(e) Loan Fee.--The Secretary shall not charge the borrower of a 
loan made under this part an origination fee.
  ``(f) Armed Forces Student Loan Interest Payment Program.--
          ``(1) Authority.--Using funds received by transfer to the 
        Secretary under section 2174 of title 10, United States Code, 
        for the payment of interest on a loan made under this part to a 
        member of the Armed Forces, the Secretary shall pay the 
        interest on the loan as due for a period not in excess of 36 
        consecutive months. The Secretary may not pay interest on such 
        a loan out of any funds other than funds that have been so 
        transferred.
          ``(2) Deferment.--During the period in which the Secretary is 
        making payments on a loan under paragraph (1), the Secretary 
        shall grant the borrower administrative deferment, in the form 
        of a temporary cessation of all payments on the loan other than 
        the payments of interest on the loan that are made under that 
        paragraph.
  ``(g) No Accrual of Interest for Active Duty Service Members.--
          ``(1) In general .--Notwithstanding any other provision of 
        this part and in accordance with paragraphs (2) and (4), 
        interest shall not accrue for an eligible military borrower on 
        a loan made under this part.
          ``(2) Consolidation loans.--In the case of any consolidation 
        loan made under this part, interest shall not accrue pursuant 
        to this subsection only on such portion of such loan as was 
        used to repay a loan made under this part or a loan made under 
        part D for which the first disbursement was made on or after 
        October 1, 2008, and before July 1, 2019.
          ``(3) Eligible military borrower.--In this subsection, the 
        term `eligible military borrower' means an individual who--
                  ``(A)(i) is serving on active duty during a war or 
                other military operation or national emergency; or
                  ``(ii) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency; and
                  ``(B) is serving in an area of hostilities in which 
                service qualifies for special pay under section 310 of 
                title 37, United States Code.
          ``(4) Limitation.--An individual who qualifies as an eligible 
        military borrower under this subsection may receive the benefit 
        of this subsection for not more than 60 months.

``SEC. 466. REPAYMENT.

  ``(a) Repayment Period; Commencement of Repayment.--
          ``(1) Repayment period.--
                  ``(A) In general.--In the case of a Federal ONE Loan 
                (other than a Federal ONE Consolidation Loan or a 
                Federal ONE Parent Loan)--
                          ``(i) subject to clause (ii), the repayment 
                        period shall--
                                  ``(I) exclude any period of 
                                authorized deferment under section 
                                469A; and
                                  ``(II) 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); and
                          ``(ii) interest shall begin to accrue or be 
                        paid by the borrower on the day the loan is 
                        disbursed.
                  ``(B) Consolidation and parent loans.--In the case of 
                a Federal ONE Consolidation Loan or a Federal ONE 
                Parent Loan, the repayment period shall--
                          ``(i) exclude any period of authorized 
                        deferment; and
                          ``(ii) begin--
                                  ``(I) on the day the loan is 
                                disbursed; or
                                  ``(II) if the loan is disbursed in 
                                multiple installments, on the day of 
                                the last such disbursement.
                  ``(C) Active duty exclusion.--There shall be excluded 
                from the 6-month period that begins on the date on 
                which a student ceases to carry at least one-half the 
                normal full-time academic workload as described in 
                subparagraph (A) any period not to exceed 3 years 
                during which a borrower who is a member of a reserve 
                component of the Armed Forces named in section 10101 of 
                title 10, United States Code, is called or ordered to 
                active duty for a period of more than 30 days (as 
                defined in section 101(d)(2) of such title). Such 
                period of exclusion shall include the period necessary 
                to resume enrollment at the borrower's next available 
                regular enrollment period.
          ``(2) Payment of principal and interest.--
                  ``(A) Commencement of repayment.--Repayment of 
                principal on loans made under this part shall begin at 
                the beginning of the repayment period described in 
                paragraph (1).
                  ``(B) Capitalization of interest.--
                          ``(i) In general.--Interest on loans made 
                        under this part for which payments of principal 
                        are not required during the 6-month period 
                        described in paragraph (1)(A)(i)(II) or for 
                        which payments are deferred under section 469A 
                        shall--
                                  ``(I) be paid monthly or quarterly; 
                                or
                                  ``(II) be added to the principal 
                                amount of the loan only--
                                          ``(aa) when the loan enters 
                                        repayment;
                                          ``(bb) at the expiration of a 
                                        the 6-month period described in 
                                        paragraph (1)(A)(i)(II);
                                          ``(cc) at the expiration of a 
                                        period of deferment, unless 
                                        otherwise exempted; or
                                          ``(dd) when the borrower 
                                        defaults.
                          ``(ii) Maximum aggregate limit.--Interest 
                        capitalized shall not be deemed to exceed the 
                        amount equal to the maximum aggregate limit of 
                        the loan under section 465(b).
                  ``(C) Notice.--Not less than 60 days, and again not 
                less than 30 days, prior to the anticipated 
                commencement of the repayment period for a Federal ONE 
                Loan, the Secretary shall provide notice to the 
                borrower--
                          ``(i) that interest will accrue before 
                        repayment begins;
                          ``(ii) that interest will be added to the 
                        principal amount of the loan in the cases 
                        described in subparagraph (B)(i)(II); and
                          ``(iii) of the borrower's option to begin 
                        loan repayment prior to such repayment period.
  ``(b) Repayment Amount.--
          ``(1) In general.--The total of the payments by a borrower, 
        except as otherwise provided by an income-based repayment plan 
        under subsection (d), during any year of any repayment period 
        with respect to the aggregate amount of all loans made under 
        this part to the borrower shall not (unless the borrower and 
        the Secretary otherwise agree), be less than $600 or the 
        balance of all such loans (together with interest thereon), 
        whichever amount is less (but in no instance less than the 
        amount of interest due and payable, notwithstanding any 
        repayment plan described in subsection (c)).
          ``(2) Amortization.--
                  ``(A) Interest rate.--The amount of the periodic 
                payment and the repayment schedule for a loan made 
                under this part shall be established by assuming an 
                interest rate equal to the applicable rate of interest 
                at the time of the first disbursement of the loan.
                  ``(B) Adjustment to repayment amount.--The note or 
                other written evidence of a loan under this part shall 
                require that the amount of the periodic payment will be 
                adjusted annually in order to reflect adjustments in--
                          ``(i) interest rates occurring as a 
                        consequence of variable rate loans under parts 
                        B or D paid in conjunction with Federal ONE 
                        Loans under subsection (d)(1)(B)(i); or
                          ``(ii) principal occurring as a consequence 
                        of interest capitalization under subsection 
                        (a)(2)(B).
  ``(c) Repayment Plans.--
          ``(1) Design and selection.--Not more than 6 months prior to 
        the date on which a borrower's first payment on a loan made 
        under this part is due, the Secretary shall offer the borrower 
        two 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 monthly 
                repayment amount paid over a fixed period of time, not 
                to exceed 10 years; or
                  ``(B) an income-based repayment plan under subsection 
                (d).
          ``(2) Selection by secretary.--If a borrower of a loan made 
        under this part does not select a repayment plan described in 
        paragraph (1), the Secretary shall provide the borrower with 
        the repayment plan described in paragraph (1)(A).
          ``(3) Changes in selections.--
                  ``(A) In general.--Subject to subparagraph (B), the 
                borrower of a loan made under this part may change the 
                borrower's selection of a repayment plan under 
                paragraph (1), or the Secretary's selection of a plan 
                for the borrower under paragraph (2), as the case may 
                be, under such terms and conditions as may be 
                established by the Secretary, except that the Secretary 
                may not establish any terms or conditions with respect 
                to whether a borrower may change the borrower's 
                repayment plan. Nothing in this subsection shall 
                prohibit the Secretary from encouraging struggling 
                borrowers from enrolling in the income-driven repayment 
                plan described in section 466(d).
                  ``(B) Same repayment plan required.--All loans made 
                under this part to a borrower shall be repaid under the 
                same repayment plan under paragraph (1), except that 
                the borrower may repay a Federal ONE Parent Loan or an 
                Excepted Federal ONE Consolidation Loan (as defined in 
                subsection (d)(5)) separately from other loans made 
                under this part to the borrower.
          ``(4) Repayment after default.--The Secretary may require any 
        borrower who has defaulted on a loan made under this part to--
                  ``(A) pay all reasonable collection costs associated 
                with such loan; and
                  ``(B) repay the loan pursuant to the income-based 
                repayment plan under subsection (d).
          ``(5) Repayment period.--For purposes of calculating the 
        repayment period under this subsection, such period shall 
        commence at the time the first payment of principal is due from 
        the borrower.
          ``(6) Installments.-- Repayment of loans under this part 
        shall be in installments in accordance with the repayment plan 
        selected under paragraph (1) and commencing at the beginning of 
        the repayment period determined under paragraph (5).
  ``(d) Income-based Repayment Program.--
          ``(1) In general.--Notwithstanding any other provision of 
        this Act, the Secretary shall carry out a program under which--
                  ``(A) a borrower of any loan made under this part 
                (other than a Federal ONE Parent Loan or an Excepted 
                Federal ONE Consolidation Loan) may elect to have the 
                borrower's aggregate monthly payment for all such 
                loans--
                          ``(i) not to exceed the result obtained by 
                        dividing by 12, 15 percent of the result 
                        obtained by calculating, on at least an annual 
                        basis, the amount by which--
                                  ``(I) the adjusted gross income of 
                                the borrower or, if the borrower is 
                                married and files a Federal income tax 
                                return jointly with or separately from 
                                the borrower's spouse, the adjusted 
                                gross income of the borrower and the 
                                borrower's spouse; exceeds
                                  ``(II) 150 percent of the poverty 
                                line applicable to the borrower's 
                                family size as determined under section 
                                673(2) of the Community Services Block 
                                Grant Act (42 U.S.C. 9902(2)); and
                          ``(ii) not to be less than $25;
                  ``(B) the Secretary adjusts the calculated monthly 
                payment under subparagraph (A), if--
                          ``(i) in addition to the loans described in 
                        subparagraph (A), the borrower has an 
                        outstanding loan made under part B or D (other 
                        than an excepted parent loan or an excepted 
                        consolidation loan, as such terms are defined 
                        in section 493C(a)), by determining the 
                        borrower's adjusted monthly payment by 
                        multiplying--
                                  ``(I) the calculated monthly payment, 
                                by
                                  ``(II) the percentage of the total 
                                outstanding principal amount of the 
                                borrower's loans described in the 
                                matter preceding subclause (I), which 
                                are described in subparagraph (A);
                          ``(ii) the borrower and borrower's spouse 
                        have loans described in subparagraph (A) and 
                        outstanding loans under part B or D (other than 
                        an excepted parent loan or an excepted 
                        consolidation loan, as such terms are defined 
                        in section 493C(a)) and have filed a joint or 
                        separate Federal income tax return, in which 
                        case the Secretary determines--
                                  ``(I) each borrower's percentage of 
                                the couple's total outstanding amount 
                                of principal on such loans;
                                  ``(II) the adjusted monthly payment 
                                for each borrower by multiplying the 
                                borrower's calculated monthly payment 
                                by the percentage determined under 
                                subclause (I) applicable to the 
                                borrower; and
                                  ``(III) if the borrower's loans are 
                                held by multiple holders, the 
                                borrower's adjusted monthly payment for 
                                loans described in subparagraph (A) by 
                                multiplying the adjusted monthly 
                                payment determined under subclause (II) 
                                by the percentage of the total 
                                outstanding principal amount of the 
                                borrower's loans described in the 
                                matter preceding subclause (I), which 
                                are described in subparagraph (A);
                  ``(C) the holder of such a loan shall apply the 
                borrower's monthly payment under this subsection first 
                toward interest due on the loan, next toward any fees 
                due on the loan, and then toward the principal of the 
                loan;
                  ``(D) any principal due and not paid under 
                subparagraph (C) shall be deferred;
                  ``(E) any interest due and not paid under 
                subparagraph (C) shall be capitalized, at the time the 
                borrower--
                          ``(i) ends the election to make income-based 
                        repayment under this subsection; or
                          ``(ii) begins making payments of not less 
                        than the amount specified in subparagraph 
                        (G)(i);
                  ``(F) the amount of time the borrower makes monthly 
                payments under subparagraph (A) may exceed 10 years;
                  ``(G) if the borrower no longer wishes to continue 
                the election under this subsection, then--
                          ``(i) the maximum monthly payment required to 
                        be paid for all loans made to the borrower 
                        under this part (other than a Federal ONE 
                        Parent Loan or an Excepted Federal ONE 
                        Consolidation Loan) shall not exceed the 
                        monthly amount calculated under subsection 
                        (c)(1)(A), based on a 10-year repayment period, 
                        when the borrower first made the election 
                        described in this subsection; and
                          ``(ii) the amount of time the borrower is 
                        permitted to repay such loans may exceed 10 
                        years;
                  ``(H) the Secretary shall cancel any outstanding 
                balance (other than an amount equal to the interest 
                accrued during any period of in-school deferment under 
                subparagraph (A), (B), or (F) of section 469A(b)(1)) 
                due on all loans made under this part (other than a 
                Federal ONE Parent Loan or an Excepted Federal ONE 
                Consolidation Loan) to a borrower--
                          ``(i) who, at any time, elected to 
                        participate in income-based repayment under 
                        subparagraph (A);
                          ``(ii) whose final monthly payment for such 
                        loans prior to the loan cancellation under this 
                        subparagraph was made under such income-based 
                        repayment; and
                          ``(iii) who has repaid, pursuant to income-
                        based repayment under subparagraph (A), a 
                        standard repayment plan under subsection 
                        (c)(1)(A), or a combination--
                                  ``(I) an amount on such loans that is 
                                equal to the total amount of principal 
                                and interest that the borrower would 
                                have repaid under a standard repayment 
                                plan under subsection (c)(1)(A), based 
                                on a 10-year repayment period, when the 
                                borrower entered repayment on such 
                                loans; and
                                  ``(II) the amount of interest that 
                                accrues during a period of deferment 
                                described in section 469A prior to the 
                                completion of the repayment period 
                                described in subclause (I) on the 
                                portion of such loans remaining to be 
                                repaid in accordance with such 
                                subclause; and
                  ``(I) a borrower who is repaying a loan made under 
                this part pursuant to income-based repayment under 
                subparagraph (A) may elect, at any time during the 10-
                year period beginning on the date the borrower entered 
                repayment on the loan, to terminate repayment pursuant 
                to such income-based repayment and repay such loan 
                under the standard repayment plan.
          ``(2) Eligibility determinations.--
                  ``(A) In general.--The Secretary shall establish 
                procedures for annual verification of a borrower's 
                annual income and the annual amount due on the total 
                amount of loans made under this part (other than a 
                Federal ONE Parent Loan or an Excepted Federal ONE 
                Consolidation Loan), and such other procedures as are 
                necessary to implement effectively income-based 
                repayment under this subsection, including the 
                procedures established with respect to section 493C.
                  ``(B) Income information.--The Secretary may obtain 
                such information as is reasonably necessary regarding 
                the income of a borrower (and the borrower's spouse, if 
                applicable) of a loan made under this part that is, or 
                may be, repaid pursuant to income-based repayment under 
                this subsection, for the purpose of determining the 
                annual repayment obligation of the borrower. The 
                Secretary shall establish procedures for determining 
                the borrower's repayment obligation on that loan for 
                such year, and such other procedures as are necessary 
                to implement effectively the income-based repayment 
                under this subsection.
                  ``(C) Borrower requirements.--A borrower who chooses 
                to repay a loan made under this part pursuant to 
                income-based repayment under this subsection, and--
                          ``(i) for whom adjusted gross income is 
                        available and reasonably reflects the 
                        borrower's current income, shall, to the 
                        maximum extent practicable, provide to the 
                        Secretary the Federal tax information of the 
                        borrower; and
                          ``(ii) for whom adjusted gross income is 
                        unavailable or does not reasonably reflect the 
                        borrower's current income, shall provide to the 
                        Secretary other documentation of income 
                        satisfactory to the Secretary, which 
                        documentation the Secretary may use to 
                        determine an appropriate repayment schedule.
          ``(3) Notification to borrowers.--The Secretary shall 
        establish procedures under which a borrower of a loan made 
        under this part who chooses to repay such loan pursuant to 
        income-based repayment under this subsection is notified of the 
        terms and conditions of such plan, including notification that 
        if a borrower considers that special circumstances, such as a 
        loss of employment by the borrower or the borrower's spouse, 
        warrant an adjustment in the borrower's loan repayment as 
        determined using the borrower's Federal tax return information, 
        or the alternative documentation described in paragraph (2)(C), 
        the borrower may contact the Secretary, who shall determine 
        whether such adjustment is appropriate, in accordance with 
        criteria established by the Secretary.
          ``(4) Reduced payment periods.--
                  ``(A) In general.--The Secretary shall authorize 
                borrowers meeting the criteria under subparagraph (B) 
                to make monthly payments of $5 for a period not in 
                excess of 3 years, except that--
                          ``(i) for purposes of subparagraph (B)(i), 
                        the Secretary may authorize reduced payments in 
                        6-month increments, beginning on the date the 
                        borrower provides to the Secretary the evidence 
                        described in subclause (I) or (II) of 
                        subparagraph (B)(i); and
                          ``(ii) for purposes of subparagraph (B)(ii), 
                        the Secretary may authorize reduced payments in 
                        3-month increments, beginning on the date the 
                        borrower provides to the Secretary the evidence 
                        described in subparagraph (B)(ii)(I).
                  ``(B) Eligibility determinations.--The Secretary 
                shall authorize borrowers to make reduced payments 
                under this paragraph in the following circumstances:
                          ``(i) In a case of borrower who is seeking 
                        and unable to find full-time employment, as 
                        demonstrated by providing to the Secretary--
                                  ``(I) evidence of the borrower's 
                                eligibility for unemployment benefits 
                                to the Secretary; or
                                  ``(II) a written certification or an 
                                equivalent that--
                                          ``(aa) the borrower has 
                                        registered with a public or 
                                        private employment agency that 
                                        is available to the borrower 
                                        within a 50-mile radius of the 
                                        borrower's home address; and
                                          ``(bb) in the case of a 
                                        borrower that has been granted 
                                        a request under this 
                                        subparagraph, the borrower has 
                                        made at least six diligent 
                                        attempts during the preceding 
                                        six-month period to secure 
                                        full-time employment.
                          ``(ii) The Secretary determines that, due to 
                        high medical expenses, the $25 monthly payment 
                        the borrower would otherwise make would be an 
                        extreme economic hardship to the borrower, if--
                                  ``(I) the borrower documents the 
                                reason why the $25 minimum payment is 
                                an extreme economic hardship; and
                                  ``(II) the borrower recertifies the 
                                reason for the $5 minimum payment on a 
                                three-month basis.
                  ``(C) Definition.--For purpose of this section, the 
                term `full-time employment' means employment that will 
                provide not less than 30 hours of work a week and is 
                expected to continue for a period of not less than 3 
                months.
          ``(5) Definitions.--In this subsection:
                  ``(A) Adjusted gross income.--The term `adjusted 
                gross income' has the meaning given the term in section 
                62 of the Internal Revenue Code of 1986.
                  ``(B) Excepted federal one consolidation loan.--The 
                term `Excepted Federal ONE Consolidation Loan' means a 
                Federal ONE Consolidation Loan if the proceeds of such 
                loan were used to discharge the liability on--
                          ``(i) a Federal ONE Parent Loan;
                          ``(ii) a Federal Direct PLUS Loan, or a loan 
                        under section 428B, that is made, insured, or 
                        guaranteed on behalf of a dependent student;
                          ``(iii) an excepted consolidation loan 
                        (defined in section 493C); or
                          ``(iv) a Federal ONE Consolidation loan that 
                        was used to discharge the liability on a loan 
                        described in clause (i), (ii), or (iii).
  ``(e) Rules of Construction.--Nothing in this section shall be 
construed to authorize, with respect to loans made under this part--
          ``(1) eligibility for a repayment plan that is not described 
        in subsection (c)(1) or section 468(c); or
          ``(2) the Secretary to--
                  ``(A) carry out a repayment plan, which is not 
                described in subsection (c)(1) or section 468(c); or
                  ``(B) modify a repayment plan that is described in 
                subsection (c)(1) or section 468(c).

``SEC. 467. FEDERAL ONE PARENT LOANS.

  ``(a) Authority To Borrow.--
          ``(1) Authority and eligibility.--The parent of a dependent 
        student shall be eligible to borrow funds under this section in 
        amounts specified in subsection (b), if--
                  ``(A) the parent is borrowing to pay for the 
                educational costs of a dependent student who meets the 
                requirements for an eligible student under section 
                484(a);
                  ``(B) the parent meets the applicable requirements 
                concerning defaults and overpayments that apply to a 
                student borrower;
                  ``(C) the parent complies with the requirements for 
                submission of a statement of educational purpose that 
                apply to a student borrower under section 484(a)(4)(A) 
                (other than the completion of a statement of selective 
                service registration status);
                  ``(D) the parent meets the requirements that apply to 
                a student under section 437(a);
                  ``(E) the parent--
                          ``(i) does not have an adverse credit 
                        history; or
                          ``(ii) has an adverse credit history, but 
                        has--
                                  ``(I) obtained an endorser who does 
                                not have an adverse credit history or 
                                documented to the satisfaction of the 
                                Secretary that extenuating 
                                circumstances exist in accordance with 
                                paragraph (4)(D); and
                                  ``(II) completed Federal ONE Parent 
                                Loan counseling offered by the 
                                Secretary; and
                  ``(F) in the case of a parent who 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.
          ``(2) Terms, conditions, and benefits.--Except as provided in 
        subsections (c), (d), and (e), loans made under this section 
        shall have the same terms, conditions, and benefits as all 
        other loans made under this part.
          ``(3) Parent borrowers.--
                  ``(A) Definition.--For purposes of this section, the 
                term `parent' includes a student's biological or 
                adoptive mother or father or the student's stepparent, 
                if the biological parent or adoptive mother or father 
                has remarried at the time of filing the common 
                financial reporting form under section 483(a), and that 
                spouse's income and assets would have been taken into 
                account when calculating the student's expected family 
                contribution.
                  ``(B) Clarification.--Whenever necessary to carry out 
                the provisions of this section, the terms `student' and 
                `borrower' as used in this part shall include a parent 
                borrower under this section.
          ``(4) Adverse credit history definitions and adjustments.--
                  ``(A) Definitions.--For purposes of this section:
                          ``(i) In general.--The term `adverse credit 
                        history', when used with respect to a borrower, 
                        means that the borrower--
                                  ``(I) has one or more debts with a 
                                total combined outstanding balance 
                                equal to or greater than $2,085, as may 
                                be adjusted by the Secretary in 
                                accordance with subparagraph (B), 
                                that--
                                          ``(aa) are 90 or more days 
                                        delinquent as of the date of 
                                        the credit report; or
                                          ``(bb) have been placed in 
                                        collection or charged off 
                                        during the two years preceding 
                                        the date of the credit report; 
                                        or
                                  ``(II) has been the subject of a 
                                default determination, bankruptcy 
                                discharge, foreclosure, repossession, 
                                tax lien, wage garnishment, or write-
                                off of a debt under this title during 
                                the 5 years preceding the date of the 
                                credit report.
                          ``(ii) Charged off.--The term `charged off' 
                        means a debt that a creditor has written off as 
                        a loss, but that is still subject to collection 
                        action.
                          ``(iii) In collection.-- The term `in 
                        collection' means a debt that has been placed 
                        with a collection agency by a creditor or that 
                        is subject to more intensive efforts by a 
                        creditor to recover amounts owed from a 
                        borrower who has not responded satisfactorily 
                        to the demands routinely made as part of the 
                        creditor's billing procedures.
                  ``(B) Adjustments.--
                          ``(i) In general.--In a case of a borrower 
                        with a debt amount described in subparagraph 
                        (A)(i), the Secretary shall increase such debt 
                        amount, or its inflation-adjusted equivalent, 
                        if the Secretary determines that an inflation 
                        adjustment to such debt amount would result in 
                        an increase of $100 or more to such debt 
                        amount.
                          ``(ii) Inflation adjustment.--In making the 
                        inflation adjustment under clause (i), the 
                        Secretary shall--
                                  ``(I) use the annual average percent 
                                change of the All Items Consumer Price 
                                Index for All Urban Consumers, before 
                                seasonal adjustment, as the measurement 
                                of inflation; and
                                  ``(II) if the adjustment calculated 
                                under subclause (I) is equal to or 
                                greater than $100--
                                          ``(aa) add the adjustment to 
                                        the debt amount, or its 
                                        inflation-adjusted equivalent; 
                                        and
                                          ``(bb) round up to the 
                                        nearest $5.
                          ``(iii) Publication.--The Secretary shall 
                        publish a notice in the Federal Register 
                        announcing any increase to the threshold amount 
                        specified in subparagraph (A)(i)(I).
                  ``(C) Treatment of absence of credit history.--For 
                purposes of this section, the Secretary shall not 
                consider the absence of a credit history as an adverse 
                credit history and shall not deny a Federal ONE Parent 
                loan on that basis.
                  ``(D) Extenuating circumstances.--For purposes of 
                this section, the Secretary may determine that 
                extenuating circumstances exist based on documentation 
                that may include--
                          ``(i) an updated credit report for the 
                        parent; or
                          ``(ii) a statement from the creditor that the 
                        parent has repaid or made satisfactory 
                        arrangements to repay a debt that was 
                        considered in determining that the parent has 
                        an adverse credit history
  ``(b) Limitation Based on Need.--Any loan under this section may be 
counted as part of the expected family contribution in the 
determination of need under this title, but no loan may be made to any 
parent under this section for any academic year in excess of the lesser 
of--
          ``(1) the student's estimated cost of attendance minus the 
        student's estimated financial assistance (as calculated under 
        section 465(b)(1)(A)); or
          ``(2) the established annual loan limits for such loan under 
        section 465(b).
  ``(c) Parent Loan Disbursement.--All loans made under this section 
shall be disbursed in accordance with the requirements of section 
465(a) and shall be disbursed by--
          ``(1) an electronic transfer of funds from the lender to the 
        eligible institution; or
          ``(2) a check copayable to the eligible institution and the 
        parent borrower.
  ``(d) Payment of Principal and Interest.--
          ``(1) Commencement of repayment.--Repayment of principal on 
        loans made under this section shall commence not later than 60 
        days after the date such loan is disbursed by the Secretary, 
        subject to deferral--
                  ``(A) during any period during which the parent 
                borrower meets the conditions required for a deferral 
                under section 469A; and
                  ``(B) upon the request of the parent borrower, during 
                the 6-month period beginning, if the parent borrower is 
                also a student, the day after the date such parent 
                borrower ceases to carry at least one-half such a 
                workload.
          ``(2) Maximum repayment period.--The maximum repayment period 
        for a loan made under this section shall be a 10-year period 
        beginning on the commencement of such period described in 
        paragraph (1).
          ``(3) Capitalization of interest.--Interest on loans made 
        under this section for which payments of principal are deferred 
        pursuant to paragraph (1) shall, if agreed upon by the borrower 
        and the Secretary--
                  ``(A) be paid monthly or quarterly; or
                  ``(B) be added to the principal amount of the loan 
                not more frequently than quarterly by the Secretary.
          ``(4) Applicable rates of interest.--Interest on loans made 
        pursuant to this section shall be at the applicable rate of 
        interest provided in section 465(c)(3) for loans made under 
        this section.
          ``(5) Amortization.--Section 466(b)(2) shall apply to each 
        loan made under this section.
  ``(e) Verification of Immigration Status and Social Security 
Number.--A parent who wishes to borrow funds under this section shall 
be subject to verification of the parent's--
          ``(1) immigration status in the same manner as immigration 
        status is verified for students under section 484(g); and
          ``(2) social security number in the same manner as social 
        security numbers are verified for students under section 
        484(p).
  ``(f) Designation.--For purposes of this Act, the Federal ONE Loans 
described in this section shall be known as `Federal ONE Parent Loans'.

``SEC. 468. FEDERAL ONE CONSOLIDATION LOANS.

  ``(a) Terms and Conditions.--In making consolidation loans under this 
section, the Secretary shall--
          ``(1) not make such a loan to an eligible borrower, unless 
        the Secretary has determined, in accordance with reasonable and 
        prudent business practices, for each loan being consolidated, 
        that the loan--
                  ``(A) is a legal, valid, and binding obligation of 
                the borrower; and
                  ``(B) was made and serviced in compliance with 
                applicable laws and regulations;
          ``(2) ensure that each consolidation loan made under this 
        section will bear interest, and be subject to repayment, in 
        accordance with subsection (c), except as otherwise provided 
        under subsections (f) and (g) of section 465;
          ``(3) ensure that each consolidation loan will be made, 
        notwithstanding any other provision of this part limiting the 
        annual or aggregate principal amount for all loans made to a 
        borrower, in an amount 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;
          ``(4) ensure that the proceeds of each consolidation loan 
        will be paid by the Secretary to the holder or holders of the 
        loans so selected to discharge the liability on such loans;
          ``(5) disclose to a prospective borrower, in simple and 
        understandable terms, at the time the Secretary provides an 
        application for a consolidation loan--
                  ``(A) with respect to a loan made, insured, or 
                guaranteed under this part, part B, or part D, that if 
                a borrower includes such a loan in the consolidation 
                loan--
                          ``(i) that the consolidation would result in 
                        a loss of loan benefits; and
                          ``(ii) which specific loan benefits the 
                        borrower would lose, including the loss of 
                        eligibility for loan forgiveness (including 
                        loss of eligibility for interest rate 
                        forgiveness), cancellation, deferment, 
                        forbearance, interest-free periods, or loan 
                        repayment programs that would have been 
                        available for such a loan; and
                  ``(B) with respect to Federal Perkins Loans under 
                this part (as this part was in effect on the day before 
                the date of enactment of the PROSPER Act)--
                          ``(i) that if a borrower includes such a 
                        Federal Perkins Loan in the consolidation loan, 
                        the borrower will lose all interest-free 
                        periods that would have been available for the 
                        Federal Perkins Loan, such as--
                                  ``(I) the periods during which no 
                                interest accrues on such loan while the 
                                borrower is enrolled in an institution 
                                of higher education at least half-time;
                                  ``(II) the grace period under section 
                                464(c)(1)(A) (as such section was in 
                                effect on the day before the date of 
                                enactment of the PROSPER Act); and
                                  ``(III) the periods during which the 
                                borrower's student loan repayments are 
                                deferred under section 464(c)(2) (as 
                                such section was in effect on the day 
                                before the date of enactment of the 
                                PROSPER Act); and
                          ``(ii) that if a borrower includes such a 
                        Federal Perkins Loan in the consolidation loan, 
                        the borrower will no longer be eligible for 
                        cancellation of part or all of the Federal 
                        Perkins Loan under section 465(a) (as such 
                        section was in effect on the day before the 
                        date of enactment of the PROSPER Act); and
                          ``(iii) the occupations listed in section 465 
                        that qualify for Federal Perkins Loan 
                        cancellation under section 465(a) (as such 
                        section was in effect on the day before the 
                        date of enactment of the PROSPER Act);
                  ``(C) the repayment plans that are available to the 
                borrower under section (c);
                  ``(D) the options of the borrower to prepay the 
                consolidation loan, to pay such loan on a shorter 
                schedule, and to change repayment plans;
                  ``(E) the consequences of default on the 
                consolidation loan; and
                  ``(F) that by applying for a consolidation loan, the 
                borrower is not obligated to agree to take the 
                consolidation loan; and
          ``(6) not make such a loan to an eligible borrower, unless--
                  ``(A) the borrower has agreed to notify the Secretary 
                promptly concerning any change of address; and
                  ``(B) the loan is evidenced by a note or other 
                written agreement which--
                          ``(i) is made without security and without 
                        endorsement, except that if--
                                  ``(I) the borrower is a minor and 
                                such note or other written agreement 
                                executed by him or her would not, under 
                                applicable law, create a binding 
                                obligation, endorsement may be 
                                required; or
                                  ``(II) the borrower desires to 
                                include in the consolidation loan, a 
                                Federal ONE Parent Loan, or a loan 
                                under section 428B, or a Federal Direct 
                                PLUS loan, made on behalf of a 
                                dependent student, endorsement shall be 
                                required;
                          ``(ii) provides for the payment of interest 
                        and the repayment of principal as described in 
                        paragraph (2);
                          ``(iii) provides that during any period for 
                        which the borrower would be eligible for a 
                        deferral under section 469A, which period shall 
                        not be included in determining the repayment 
                        schedule pursuant to subsection (c)--
                                  ``(I) periodic installments of 
                                principal need not be paid, but 
                                interest shall accrue and be paid by 
                                the borrower or be capitalized; and
                                  ``(II) except as otherwise provided 
                                under subsections (f) and (g) of 
                                section 465, the Secretary shall not 
                                pay interest on any portion of the 
                                consolidation loan, without regard to 
                                whether the portion repays Federal 
                                Stafford Loans for which the student 
                                borrower received an interest subsidy 
                                under section 428 or Federal Direct 
                                Stafford Loans for which the borrower 
                                received an interest subsidy under 
                                section 455;
                          ``(iv) entitles the borrower to accelerate 
                        without penalty repayment of the whole or any 
                        part of the loan; and
                          ``(v) contains a notice of the system of 
                        disclosure concerning such loan to consumer 
                        reporting agencies under section 430A, and 
                        provides that the Secretary on request of the 
                        borrower will provide information on the 
                        repayment status of the note to such consumer 
                        reporting agencies.
  ``(b) Nondiscrimination in Loan Consolidation.--The Secretary shall 
not discriminate against any borrower seeking a loan under this 
section--
          ``(1) based on the number or type of eligible student loans 
        the borrower seeks to consolidate;
          ``(2) based on the type or category of institution of higher 
        education that the borrower attended;
          ``(3) based on the interest rate to be charged to the 
        borrower with respect to the consolidation loan; or
          ``(4) with respect to the types of repayment schedules 
        offered to such borrower.
  ``(c) Payment of Principal and Interest.--
          ``(1) Repayment schedules.--
                  ``(A) Establishment.--
                          ``(i) In general.--Notwithstanding any other 
                        provision of this part, the Secretary shall--
                                  ``(I) establish repayment terms as 
                                will promote the objectives of this 
                                section; and
                                  ``(II) provide a borrower with the 
                                option of the standard-repayment plan 
                                or income-based repayment plan under 
                                section 466(d) in lieu of such 
                                repayment terms.
                          ``(ii) Schedule terms.--The repayment terms 
                        established under clause (i)(I) shall require 
                        that if the sum of the consolidation loan and 
                        the amount outstanding on other eligible 
                        student loans to the individual--
                                  ``(I) is less than $7,500, then such 
                                consolidation loan shall be repaid in 
                                not more than 10 years;
                                  ``(II) is equal to or greater than 
                                $7,500 but less than $10,000, then such 
                                consolidation loan shall be repaid in 
                                not more than 12 years;
                                  ``(III) is equal to or greater than 
                                $10,000 but less than $20,000, then 
                                such consolidation loan shall be repaid 
                                in not more than 15 years;
                                  ``(IV) is equal to or greater than 
                                $20,000 but less than $40,000, then 
                                such consolidation loan shall be repaid 
                                in not more than 20 years;
                                  ``(V) is equal to or greater than 
                                $40,000 but less than $60,000, then 
                                such consolidation loan shall be repaid 
                                in not more than 25 years; or
                                  ``(VI) is equal to or greater than 
                                $60,000, then such consolidation loan 
                                shall be repaid in not more than 30 
                                years.
                  ``(B) Limitation.--The amount outstanding on other 
                eligible student loans which may be counted for the 
                purpose of subparagraph (A) may not exceed the amount 
                of the consolidation loan.
          ``(2) Additional repayment requirements.--Notwithstanding 
        paragraph (1)--
                  ``(A) except in the case of an income-based repayment 
                schedule under section 466(d), a repayment schedule 
                established with respect to a consolidation loan shall 
                require that the minimum installment payment be an 
                amount equal to not less than the accrued unpaid 
                interest; and
                  ``(B) an income-based repayment schedule under 
                section 466(d) shall not be available to a 
                consolidation loan borrower who--
                          ``(i) used the proceeds of a Federal ONE 
                        Consolidation loan to discharge the liability--
                                  ``(I) on a loan under section 428B 
                                made on behalf of a dependent student;
                                  ``(II) a Federal Direct PLUS loan 
                                made on behalf of a dependent student;
                                  ``(III) a Federal ONE Parent loan; or
                                  ``(IV) an excepted consolidation loan 
                                (defined in section 493C); or
                          ``(ii) used the proceeds of a subsequent 
                        Federal ONE Consolidation loan to discharge the 
                        liability on a Federal ONE Consolidation loan 
                        described in clause (i).
          ``(3) Commencement of repayment.--Repayment of a 
        consolidation loan shall commence within 60 days after all 
        holders have, pursuant to subsection (a)(4), discharged the 
        liability of the borrower on the loans selected for 
        consolidation.
          ``(4) Interest rate.--A consolidation loan made under this 
        section shall bear interest at an annual rate described in 
        section 465(c)(4).
  ``(d) Insurance Rule.--Any insurance premium paid by the borrower 
under subpart I of part A of title VII of the Public Health Service Act 
with respect to a loan made under that subpart and consolidated under 
this section shall be retained by the student loan insurance account 
established under section 710 of the Public Health Service Act.
  ``(e) Definitions.--For the purpose of this section:
          ``(1) Eligible borrower.--
                  ``(A) In general.--The term `eligible borrower' means 
                a borrower who--
                          ``(i) is not subject to a judgment secured 
                        through litigation with respect to a loan under 
                        this title or to an order for wage garnishment 
                        under section 488A; and
                          ``(ii) at the time of application for a 
                        consolidation loan--
                                  ``(I) is in repayment status as 
                                determined under section 466(a)(1);
                                  ``(II) is in a grace period preceding 
                                repayment; or
                                  ``(III) is a defaulted borrower who 
                                has made arrangements to repay the 
                                obligation on the defaulted loans 
                                satisfactory to the holders of the 
                                defaulted loans.
                  ``(B) Termination of status as an eligible 
                borrower.--An individual's status as an eligible 
                borrower under this section terminates upon receipt of 
                a consolidation loan under this section, except that--
                          ``(i) an individual who receives eligible 
                        student loans after the date of receipt of the 
                        consolidation loan may receive a subsequent 
                        consolidation loan;
                          ``(ii) loans received prior to the date of 
                        the consolidation loan may be added during the 
                        180-day period following the making of the 
                        consolidation loan;
                          ``(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;
                          ``(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 for the purpose--
                                  ``(I) of income-based repayment under 
                                section 466(d) only if the loan has 
                                been submitted for default aversion or 
                                if the loan is already in default;
                                  ``(II) of using the no accrual of 
                                interest for active duty service 
                                members benefit offered under section 
                                465(g); of
                                  ``(III) of submitting an application 
                                under section 469B(d) for a borrower 
                                defense to repayment of a loan made, 
                                insured, or guaranteed under this 
                                title.
          ``(2) Eligible student loans.--For the purpose of paragraph 
        (1), the term `eligible student loans' means loans--
                  ``(A) made, insured, or guaranteed under part B, and 
                first disbursed before July 1, 2010, including loans on 
                which the borrower has defaulted (but has made 
                arrangements to repay the obligation on the defaulted 
                loans satisfactory to the Secretary or guaranty agency, 
                whichever insured the loans);
                  ``(B) made under part D of this title, and first 
                disbursed before July 1, 2019;
                  ``(C) made under this part before September 30, 2017;
                  ``(D) made under this part on or after the date of 
                enactment of the PROSPER Act;
                  ``(E) made under subpart II of part A of title VII of 
                the Public Health Service Act; or
                  ``(F) made under part E of title VIII of the Public 
                Health Service Act.
  ``(f) Designation.--For purposes of this Act, the Federal ONE Loans 
described in this section shall be known as `Federal ONE Consolidation 
Loans'.

``SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY.

  ``(a) In General.--A borrower who has 1 or more loans in 2 or more of 
the categories described in subsection (b), and who has not yet entered 
repayment on 1 or more of those loans in any of the categories, may 
consolidate all of the loans of the borrower that are described in 
subsection (b) into a Federal ONE Consolidation Loan during the period 
described in subsection (c).
  ``(b) Categories of Loans That May Be Consolidated.--The categories 
of loans that may be consolidated under this section are--
          ``(1) loans made under this part before October 1, 2017 and 
        on or after July 1, 2019;
          ``(2) loans purchased by the Secretary pursuant to section 
        459A;
          ``(3) loans made under part B that are held by an eligible 
        lender, as such term is defined in section 435(d); and
          ``(4) loans made under part D.
  ``(c) Time Period in Which Loans May Be Consolidated.--The Secretary 
may make a Federal ONE Consolidation Loan under this section to a 
borrower whose application for such Federal ONE Consolidation Loan is 
received on or after July 1, 2019, and before July 1, 2024.
  ``(d) Terms of Loans.--A Federal ONE Consolidation Loan made under 
this subsection shall have the same terms and conditions as a Federal 
ONE Consolidation Loan made under section 468, except that in 
determining the applicable rate of interest on the Federal ONE 
Consolidation Loan made under this section, section 465(c)(4) shall be 
applied without rounding the weighted average of the interest rate on 
the loans consolidated to the nearest higher one-eighth of one percent 
as in such section.

``SEC. 469A. DEFERMENT.

  ``(a) Effect on Principal and Interest.--A borrower of a loan made 
under this part who meets the requirements described in subsection (b) 
shall be eligible for a deferment during which installments of 
principal need not be paid and, unless otherwise provided in this 
subsection, interest shall accrue and be capitalized or paid by the 
borrower.
  ``(b) Eligibility.--A borrower of a loan made under this part shall 
be eligible for a deferment--
          ``(1) during any period during which the borrower--
                  ``(A) is carrying at least one-half the normal full-
                time work load for the course of study that the 
                borrower is pursuing, as determined by the eligible 
                institution the borrower is attending;
                  ``(B) is pursuing a course of study pursuant to--
                          ``(i) an eligible graduate fellowship program 
                        in accordance with subsection (g); or
                          ``(ii) an eligible rehabilitation training 
                        program for individuals with disabilities in 
                        accordance with subsection (i);
                  ``(C) is serving on active duty during a war or other 
                military operation or national emergency, and for the 
                180-day period following the demobilization date for 
                such service;
                  ``(D) is performing qualifying National Guard duty 
                during a war or other military operation or national 
                emergency, and for the 180-day period following the 
                demobilization date for such service;
                  ``(E) is a member of the National Guard who is not 
                eligible for a post-active duty deferment under section 
                493D and is engaged in active State duty for a period 
                of more than 30 consecutive days beginning--
                          ``(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) the day after the borrower ceases 
                        enrollment on at least a half-time basis, for a 
                        loan in repayment;
                  ``(F) is serving in a medical or dental internship or 
                residency program, the successful completion of which 
                is required to begin professional practice or service, 
                or is serving in a medical or dental internship or 
                residency program leading to a degree or certificate 
                awarded by an institution of higher education, a 
                hospital, or a health care facility that offers 
                postgraduate training; or
                  ``(G) is eligible for interest payments to be made on 
                a loan made under this part for service in the Armed 
                Forces under section 2174 of title 10, United States 
                Code, and pursuant to that eligibility, the interest is 
                being paid on such loan under section 465(f);
          ``(2) during a period sufficient to enable the borrower to 
        resume honoring the agreement to repay the outstanding balance 
        of principal and interest on the loan after default, if--
                  ``(A) the borrower signs a new agreement to repay 
                such outstanding balance;
                  ``(B) the deferment period is limited to 120 days; 
                and
                  ``(C) such deferment is not granted for consecutive 
                periods;
          ``(3) during a period of administrative deferment described 
        in subsection (j); or
          ``(4) in the case of a borrower of a Federal ONE Parent Loan 
        or an Excepted Federal ONE Consolidation Loan, during a period 
        described in subsection (k).
  ``(c) Length of Deferment.--A deferment granted by the Secretary--
          ``(1) under subparagraph (F) or (G) of subsection (b)(1) 
        shall be renewable at 12 month intervals;
          ``(2) under subparagraph (F) of subsection (b)(1) shall equal 
        the length of time remaining in the borrower's medical or 
        dental internship or residency program; and
          ``(3) under subparagraph (G) of subsection (b)(1) shall not 
        exceed 3 years.
  ``(d) Request and Documentation.--The Secretary shall determine the 
eligibility of a borrower for a deferment under paragraphs (1), (2), or 
(4) of subsection (b), or in the case of a loan for which an endorser 
is required, an endorser's eligibility for a deferment under paragraph 
(2) or (4) or eligibility to request a deferment under paragraph (1), 
based on--
          ``(1) the receipt of a request for a deferment from the 
        borrower or the endorser, and documentation of the borrower's 
        or endorser's eligibility for the deferment or eligibility to 
        request the deferment;
          ``(2) receipt of a completed loan application that documents 
        the borrower's eligibility for a deferment;
          ``(3) receipt of a student status information documenting 
        that the borrower is enrolled on at least a half-time basis; or
          ``(4) the Secretary's confirmation of the borrower's half-
        time enrollment status, if the confirmation is requested by the 
        institution of higher education.
  ``(e) Notification.--The Secretary shall--
          ``(1) notify a borrower of a loan made under this part--
                  ``(A) the granting of a deferment under this 
                subsection on such loan; and
                  ``(B) the option of the borrower to continue making 
                payments on the outstanding balance of principal and 
                interest on such loan in accordance with subsection 
                (f);
          ``(2) at the time the Secretary grants a deferment to a 
        borrower of a loan made under this part, and not less 
        frequently than once every 180 days during the period of such 
        deferment, provide information to the borrower to assist the 
        borrower in understanding--
                  ``(A) the effect of granting a deferment on the total 
                amount to be paid under the income-based repayment plan 
                under 466(d);
                  ``(B) the fact that interest will accrue on the loan 
                for the period of deferment, other than for a deferment 
                granted under subsection (b)(1)(G);
                  ``(C) the amount of unpaid principal and the amount 
                of interest that has accrued since the last statement 
                of such amounts provided to the borrower;
                  ``(D) the amount of interest that will be 
                capitalized, and the date on which capitalization will 
                occur;
                  ``(E) the effect of the capitalization of interest on 
                the borrower's loan principal and on the total amount 
                of interest to be paid on the loan;
                  ``(F) the option of the borrower to pay the interest 
                that has accrued before the interest is capitalized; 
                and
                  ``(G) the borrower's option to discontinue the 
                deferment at any time.
  ``(f) Form of Deferment.--The form of a deferment granted under this 
subsection on a loan made under this part shall be temporary cessation 
of all payments on such loan, except that--
          ``(1) in the case of a deferment granted under subsection 
        (b)(1)(G), payments of interest on the loan will be made by the 
        Secretary under section 465(f) during such period of deferment; 
        and
          ``(2) a borrower may make payments on the outstanding balance 
        of principal and interest on such loan during any period of 
        deferment granted under this subsection.
  ``(g) Graduate Fellowship Deferment.--
          ``(1) In general.--A borrower of a loan under this part is 
        eligible for a deferment under subsection (b)(1)(B)(i) during 
        any period for which an authorized official of the borrower's 
        graduate fellowship program certifies that the borrower meets 
        the requirements of paragraph (2) and is pursuing a course of 
        study pursuant to an eligible graduate fellowship program.
          ``(2) Borrower requirements.--A borrower meets the 
        requirements of this subparagraph if the borrower--
                  ``(A) holds at least a baccalaureate degree conferred 
                by an institution of higher education;
                  ``(B) has been accepted or recommended by an 
                institution of higher education for acceptance on a 
                full-time basis into an eligible graduate fellowship 
                program; and
                  ``(C) is not serving in a medical internship or 
                residency program, except for a residency program in 
                dentistry.
  ``(h) Treatment of Study Outside the United States.--
          ``(1) In general.--The Secretary shall treat, in the same 
        manner as required under section 428(b)(4), any course of study 
        at a foreign university that is accepted for the completion of 
        a recognized international fellowship program by the 
        administrator of such a program as an eligible graduate 
        fellowship program.
          ``(2) Requests for deferment.--Requests for deferment of 
        repayment of loans under this subsection by students engaged in 
        graduate or postgraduate fellowship-supported study (such as 
        pursuant to a Fulbright grant) outside the United States shall 
        be approved until completion of the period of the fellowship, 
        in the same manner as required under section 428(b)(4).
  ``(i) Rehabilitation Training Program Deferment.--A borrower of a 
loan under this part is eligible for a deferment under subsection 
(b)(1)(B)(ii) during any period for which an authorized official of the 
borrower's rehabilitation training program certifies that the borrower 
is pursuing an eligible rehabilitation training program for individuals 
with disabilities.
  ``(j) Administrative Deferments.--The Secretary may grant a deferment 
to a borrower or, in the case of a loan for which an endorser is 
required, an endorser, without requiring a request and documentation 
from the borrower or the endorser under subsection (d) for--
          ``(1) a period during which the borrower was delinquent at 
        the time a deferment is granted, including a period for which 
        scheduled payments of principal and interest were overdue at 
        the time such deferment is granted;
          ``(2) a period during which the borrower or the endorser was 
        granted a deferment under this subsection but for which the 
        Secretary determines the borrower or the endorser should not 
        have qualified;
          ``(3) a period necessary for the Secretary to determine the 
        borrower's eligibility for the cancellation of the obligation 
        of the borrower to repay the loan under section 437;
          ``(4) a period during which the Secretary has authorized 
        deferment due to a national military mobilization or other 
        local or national emergency; or
          ``(5) a period not to exceed 60 days, during which interest 
        shall accrue but not be capitalized, if the Secretary 
        reasonably determines that a suspension of collection activity 
        is warranted to enable the Secretary to process supporting 
        documentation relating to a borrower's request--
                  ``(A) for a deferment under this subsection;
                  ``(B) for a change in repayment plan under section 
                466(c); or
                  ``(C) to consolidate loans under section 468.
  ``(k) Deferments for Parent or Excepted Consolidation Loans.--
          ``(1) In general.--A qualified borrower shall be eligible for 
        deferments under paragraphs (3) through (5).
          ``(2) Qualified borrower defined.--In this subsection, the 
        term `qualified borrower' means--
                  ``(A) a borrower of a Federal ONE Parent Loan or an 
                Excepted Federal ONE Consolidation Loan; or
                  ``(B) in the case of such a loan for which an 
                endorser is required, the endorser of such loan.
          ``(3) Economic hardship deferment.--
                  ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods, not to exceed 
                3 years in total, during which the qualified borrower 
                experiences an economic hardship described in 
                subparagraph (B).
                  ``(B) Economic hardship.--An economic hardship 
                described in this clause is a period during which the 
                qualified borrower--
                          ``(i) is receiving payment under a means-
                        tested benefit program;
                          ``(ii) is employed full-time and the monthly 
                        gross income of the qualified borrower does not 
                        exceed the greater of--
                                  ``(I) the minimum wage rate described 
                                in section 6 of the Fair Labor 
                                Standards Act of 1938 (29 U.S.C. 206); 
                                or
                                  ``(II) an amount equal to 150 percent 
                                of the poverty line; or
                          ``(iii) demonstrates that the sum of the 
                        qualified borrower's monthly payments on the 
                        qualified borrower's Federal ONE Parent Loan or 
                        Excepted Federal ONE Consolidation Loan is not 
                        less than 20 percent of the qualified 
                        borrower's monthly gross income.
                  ``(C) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall submit to the Secretary--
                          ``(i) for the first period of deferment under 
                        this subparagraph, evidence showing the monthly 
                        gross income of the qualified borrower; and
                          ``(ii) for a subsequent period of deferment 
                        that begins less than one year after the end of 
                        a period of deferment granted under this 
                        subparagraph--
                                  ``(I) evidence showing the monthly 
                                gross income of the qualified borrower; 
                                or
                                  ``(II) the qualified borrower's most 
                                recently filed Federal income tax 
                                return, if such a return was filed in 
                                either of the two tax years preceding 
                                the year in which the qualified 
                                borrower requests the subsequent period 
                                of deferment.
          ``(4) Unemployment deferment.--
                  ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment for periods during which the 
                qualified borrower is seeking, and is unable to find, 
                full-time employment.
                  ``(B) Eligibility.--
                          ``(i) In general.--To be eligible to receive 
                        an deferment under this subparagraph, a 
                        qualified borrower shall submit to the 
                        Secretary--
                                  ``(I) evidence of the qualified 
                                borrower's eligibility for unemployment 
                                benefits; or
                                  ``(II) written confirmation, or an 
                                equivalent as approved by the 
                                Secretary, that--
                                          ``(aa) the qualified borrower 
                                        has registered with a public or 
                                        private employment agency, if 
                                        one is available to the 
                                        borrower within 50 miles of the 
                                        qualified borrower's address; 
                                        and
                                          ``(bb) for requests submitted 
                                        after the initial request, the 
                                        qualified borrower has made at 
                                        least six diligent attempts 
                                        during the preceding six-month 
                                        period to secure full-time 
                                        employment.
                          ``(ii) Acceptance of employment.--A qualified 
                        borrower shall not be eligible for a deferment 
                        under this subparagraph if the qualified 
                        borrower refuses to seek or accept employment 
                        in types of positions or at salary levels or 
                        responsibility levels for which the qualified 
                        borrower feels overqualified based on the 
                        qualified borrower's education or previous 
                        experience.
                  ``(C) Terms of deferment.--The following terms shall 
                apply to a deferment under this subparagraph:
                          ``(i) Initial period.--The first deferment 
                        granted to a qualified borrower under this 
                        subparagraph may be for a period of 
                        unemployment beginning not more than 6 months 
                        before the date on which the Secretary receives 
                        the qualified borrower's request for deferment 
                        and may be granted for a period of up to 6 
                        months after that date.
                          ``(ii) Renewals.--Deferments under this 
                        subparagraph shall be renewable at 6-month 
                        intervals beginning after the expiration of the 
                        first period of deferment under clause (i). To 
                        be eligible to renew a deferment under this 
                        subparagraph, a qualified borrower shall submit 
                        to the Secretary the information described in 
                        subparagraph (B)(i).
                          ``(iii) Aggregate limit.--The period of all 
                        deferments granted to a borrower under this 
                        subparagraph may not exceed 3 years in 
                        aggregate.
          ``(5) Health deferment.--
                  ``(A) In general.--A qualified borrower shall be 
                eligible for a deferment during periods in which the 
                qualified borrower is unable to make scheduled loan 
                payments due to high medical expenses, as determined by 
                the Secretary.
                  ``(B) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified borrower 
                shall--
                          ``(i) submit to the Secretary documentation 
                        demonstrating that making scheduled loan 
                        payments would be an extreme economic hardship 
                        to the borrower due to high medical expenses, 
                        as determined by the Secretary; and
                          ``(ii) resubmit such documentation to the 
                        Secretary not less frequently than once every 3 
                        months.
  ``(l) Prohibitions.--
          ``(1) Prohibition on fees.--No administrative fee or other 
        fee may be charged to the borrower in connection with the 
        granting of a deferment under this subsection.
          ``(2) Prohibition on adverse credit reporting.--No adverse 
        information relating to a borrower may be reported to a 
        consumer reporting agency solely because of the granting of a 
        deferment under this subsection.
          ``(3) Limitation on authority.--The Secretary shall not, 
        through regulation or otherwise, authorize additional deferment 
        options or periods of deferment other than the deferment 
        options and periods of deferment authorized under this 
        subsection.
  ``(m) Treatment of Endorsers.--With respect to any Federal ONE Parent 
Loan or Federal ONE Consolidation Loan for which an endorser is 
required--
          ``(1) paragraphs (2) through (4) of subsection (b) shall be 
        applied--
                  ``(A) by substituting `An endorser' for `A borrower';
                  ``(B) by substituting `the endorser' for `the 
                borrower'; and
                  ``(C) by substituting `an endorser' for `a borrower'; 
                and
          ``(2) in the case in which the borrower of such a loan is 
        eligible for a deferment described in subparagraph (C), (D), 
        (E), (F), or (G) of subsection (b)(1), but is not making 
        payments on the loan, the endorser of the loan may request a 
        deferment under such subparagraph for the loan.
  ``(n) Definitions.--In this section:
          ``(1) Eligible graduate fellowship program.--The term 
        `eligible graduate fellowship program', when used with respect 
        to a course of study pursued by the borrower of a loan under 
        this part, means a fellowship program that--
                  ``(A) provides sufficient financial support to 
                graduate fellows to allow for full-time study for at 
                least six months;
                  ``(B) requires a written statement from each 
                applicant explaining the applicant's objectives before 
                the award of that financial support;
                  ``(C) requires a graduate fellow to submit periodic 
                reports, projects, or evidence of the fellow's 
                progress; and
                  ``(D) in the case of a course of study at an 
                institution of higher education outside the United 
                States described in section 102, accepts the course of 
                study for completion of the fellowship program.
          ``(2) Eligible rehabilitation training program for 
        individuals with disabilities.--The term `eligible 
        rehabilitation training program for individuals with 
        disabilities', when used with respect a course of study pursued 
        by the borrower of a loan under this part, means a program 
        that--
                  ``(A) is necessary to assist an individual with a 
                disability in preparing for, securing, retaining, or 
                regaining employment;
                  ``(B) is licensed, approved, certified, or otherwise 
                recognized as providing rehabilitation training to 
                disabled individuals by--
                          ``(i) a State agency with responsibility for 
                        vocational rehabilitation programs, drug abuse 
                        treatment programs, mental health services 
                        programs, or alcohol abuse treatment programs; 
                        or
                          ``(ii) the Secretary of the Department of 
                        Veterans Affairs; and
                  ``(C) provides or will provide the borrower with 
                rehabilitation services under a written plan that--
                          ``(i) is individualized to meet the 
                        borrower's needs;
                          ``(ii) specifies the date on which the 
                        services to the borrower are expected to end; 
                        and
                          ``(iii) requires a commitment of time and 
                        effort from the borrower that prevents the 
                        borrower from being employed at least 30 hours 
                        per week, either because of the number of hours 
                        that must be devoted to rehabilitation or 
                        because of the nature of the rehabilitation.
          ``(3) Excepted federal one consolidation loan.--The `Excepted 
        Federal ONE Consolidation Loan' have the meaning given the term 
        in section 466(d)(5).
          ``(4) Family size.--The term `family size' means the number 
        that is determined by counting--
                  ``(A) the borrower;
                  ``(B) the borrower's spouse;
                  ``(C) the borrower's children, including unborn 
                children who are expected to be born during the period 
                covered by the deferment, if the children receive more 
                than half their support from the borrower; and
                  ``(D) another individual if, at the time the borrower 
                requests a deferment under this section, the 
                individual--
                          ``(i) lives with the borrower;
                          ``(ii) receives more than half of the 
                        individual's support (which may include money, 
                        gifts, loans, housing, food, clothes, car, 
                        medical and dental care, and payment of college 
                        costs) from the borrower; and
                          ``(iii) is expected to receive such support 
                        from the borrower during the relevant period of 
                        deferment.
          ``(5) Full-time.--The term `full-time', when used with 
        respect to employment, means employment for not less than 30 
        hours per week that is expected to continue for not less than 
        three months.
          ``(6) Means-tested benefit program.--The term `means-tested 
        benefit program' means--
                  ``(A) a State public assistance program under which 
                eligibility for the program's benefits, or the amount 
                of such benefits, are determined on the basis of income 
                or resources of the individual or family seeking the 
                benefit; or
                  ``(B) a mandatory spending program of the Federal 
                Government, other than a program under this title, 
                under which eligibility for the program's benefits, or 
                the amount of such benefits, are determined on the 
                basis of income or resources of the individual or 
                family seeking the benefit, and may include such 
                programs as
                          ``(i) the supplemental security income 
                        program under title XVI of the Social Security 
                        Act (42 U.S.C. 1381 et seq.);
                          ``(ii) the supplemental nutrition assistance 
                        program under the Food and Nutrition Act of 
                        2008 (7 U.S.C. 2011 et seq.);
                          ``(iii) the free and reduced price school 
                        lunch program established under the Richard B. 
                        Russell National School Lunch Act (42 U.S.C. 
                        1751 et seq.);
                          ``(iv) the program of block grants for States 
                        for temporary assistance for needy families 
                        established under part A of title IV of the 
                        Social Security Act (42 U.S.C. 601 et seq.);
                          ``(v) the special supplemental nutrition 
                        program for women, infants, and children 
                        established by section 17 of the Child 
                        Nutrition Act of 1966 (42 U.S.C. 1786); and
                          ``(vi) other programs identified by the 
                        Secretary.
          ``(7) Monthly gross income.--The term `monthly gross income', 
        when used with respect to a borrower, means--
                  ``(A) the gross amount of income received by the 
                borrower from employment and other sources for the most 
                recent month; or
                  ``(B) one-twelfth of the borrower's adjusted gross 
                income, as recorded on the borrower's most recently 
                filed Federal income tax return.

``SEC. 469B. ADDITIONAL TERMS.

  ``(a) Applicable Part B Provisions.--
          ``(1) Disclosures.--Except as otherwise provided in this 
        part, section 455(p) shall apply with respect to loans under 
        this part in the same manner that such section applies with 
        respect to loans under part D.
          ``(2) Other provisions.--Except as otherwise provided in this 
        part, the following provisions shall apply with respect to 
        loans made under this part in the same manner that such 
        provisions apply with respect to loans made under part D:
                  ``(A) Section 427(a)(2).
                  ``(B) Section 428(d).
                  ``(C) Section 428F
                  ``(D) Section 430A.
                  ``(E) Paragraphs (1), (2), (4), and (6) of section 
                432(a).
                  ``(F) Section 432(i).
                  ``(G) Section 432(l).
                  ``(H) Section 432(m), except that an institution of 
                higher education shall have a separate master 
                promissory note under paragraph (1)(D) of such section 
                for loans made under this part.
                  ``(I) Subsections (a), (c), and (d) of section 437.
          ``(3) Application of provisions.--Any provision listed under 
        paragraph (1) or (2) that applies to--
                  ``(A) Federal Direct PLUS Loans made on behalf of 
                dependent students shall apply to Federal ONE Parent 
                Loans;
                  ``(B) Federal Direct PLUS Loans made to students 
                shall apply to Federal ONE Loans for graduate or 
                professional students;
                  ``(C) Federal Direct Unsubsidized Stafford loans 
                shall apply to Federal ONE Loans (other than Federal 
                ONE Consolidation Loans) for any student borrower;
                  ``(D) Federal Direct Consolidation Loans shall apply 
                to Federal ONE Consolidation Loans; and
                  ``(E) forbearance shall apply to deferment under 
                section 469A.
  ``(b) Eligible Student.--A loan under this part may only be made to a 
student who--
          ``(1) is an eligible student under section 484;
          ``(2) has agreed to notify promptly the Secretary and the 
        applicable contractors with which the Secretary has a contract 
        under section 493E concerning--
                  ``(A) any change of permanent address, telephone 
                number, or email address;
                  ``(B) when the student ceases to be enrolled on at 
                least a half-time basis; and
                  ``(C) any other change in status, when such change in 
                status affects the student's eligibility for the loan; 
                and
          ``(3) is carrying at least one-half the normal full-time 
        academic workload for the course of study the student is 
        pursuing (as determined by the institution).
  ``(c) Loan Application and Promissory Note.--The common financial 
reporting form required in section 483(a)(1) shall constitute the 
application for loans made under this part. The Secretary shall 
develop, print, and distribute to participating institutions a standard 
promissory note and loan disclosure form.
  ``(d) Borrower Defenses.--A borrower of a loan under this part may 
assert a defense to repayment to such loan under the provisions of 
section 455(h) that apply to a borrower of a loan made under part D 
asserting, on or after the date of enactment of the PROSPER Act, a 
defense to repayment to such loan made under part D.
  ``(e) Identity Fraud Protection.--The Secretary shall ensure that 
monthly Federal ONE Loan statements and other publications of the 
Department do not contain more than four digits of the Social Security 
number of any individual.
  ``(f) Authority to Sell Loans.--The Secretary, in consultation with 
the Secretary of the Treasury, is authorized to sell loans made under 
this part on such terms determined to be in the best interest of the 
United States, except that any such sale shall not result in any cost 
to the Federal Government.''.

                         PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

  Section 472 (20 U.S.C. 1087ll) is amended--
          (1) by striking paragraph (10); and
          (2) by redesignating paragraphs (11), (12), and (13) as 
        paragraphs (10), (11), and (12), respectively.

SEC. 472. SIMPLIFIED NEEDS TEST.

  Section 479(b)(1) (20 U.S.C. 1087ss) is amended by striking 
``$50,000'' both places it appears and inserting ``$100,000''.

SEC. 473. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

  Section 479A (20 U.S.C. 1087tt) is amended--
          (1) in subsection (a), by striking ``financial assistance 
        under section 428H or a Federal Direct Unsubsidized Stafford 
        Loan'' and inserting ``a Federal Direct Unsubsidized Stafford 
        Loan or a Federal ONE Loan'';
          (2) in subsection (c), by striking ``part B or D'' and 
        inserting ``part D or E''; and
          (3) by adding at the end the following:
  ``(d) Adjustment Based on Delivery of Instruction.--A student's 
eligibility to receive grants, loans, or work assistance under this 
title shall be reduced if a financial aid officer determines, in 
accordance with the discretionary authority provided under this 
section, that the model or method used to deliver instruction to the 
student results in a substantially reduced cost of attendance to the 
student.''.

SEC. 474. DEFINITIONS OF TOTAL INCOME AND ASSETS.

  Section 480 (20 U.S.C. 1087vv) is amended--
          (1) in subsection (a)(1), by striking subparagraph (B) and 
        inserting the following:
  ``(B) Notwithstanding section 478(a), the Secretary shall provide for 
the use of data from the second preceding tax year to carry out the 
simplification of applications (including simplification for a subset 
of applications) used for the estimation and determination of financial 
aid eligibility. Such simplification shall include the sharing of data 
between the Internal Revenue Service and the Department, pursuant to 
the consent of the taxpayer.''; and
          (2) in subsection (f)--
                  (A) in paragraph (2)--
                          (i) in subparagraph (B), by striking ``or'' 
                        at the end;
                          (ii) in subparagraph (C), by striking the 
                        period at the end and inserting ``; or''; and
                          (iii) by adding at the end the following:
                  ``(D) a qualified tuition program (as defined in 
                section 529(b)(1)(A) of the Internal Revenue Code of 
                1986).''; and
                  (B) in paragraph (5)(A)(i), by striking ``qualified 
                tuition program (as defined in section 529(b)(1)(A) of 
                the Internal Revenue Code of 1986) or other''.

       PART G--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

SEC. 481. DEFINITIONS OF ACADEMIC YEAR AND ELIGIBLE PROGRAM.

  Section 481 (20 U.S.C. 1088) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)(A)--
                          (i) by striking ``For the'' and inserting the 
                        following: ``Except as provided in paragraph 
                        (3), for the''; and
                          (ii) in clause (i), by striking ``require a 
                        minimum of 30 weeks'' and inserting the 
                        following: ``require--
                          ``(I) a minimum of 30 weeks'';
                          (iii) in clause (ii), by striking 
                        ``require'';
                          (iv) by redesignating clause (ii) as 
                        subclause (II) (and by adjusting the margin 
                        accordingly); and
                          (v) by redesignating clause (iii) as clause 
                        (ii); and
                  (B) by adding at the end the following:
          ``(3)(A) For the purpose of a competency-based education 
        program the term `academic year' shall be the published 
        measured period established by the institution of higher 
        education that is necessary for a student with a normal full-
        time workload for the course of study the student is pursuing 
        (as measured using the value of competencies or sets of 
        competencies required by such institution and approved by such 
        institution's accrediting agency or association) to earn--
          ``(i) one-quarter of a bachelor's degree;
          ``(ii) one-half of an associate's degree; or
          ``(iii) with respect to a non-degree or graduate program, the 
        equivalent of a period described in clause (i) or (ii).
                  ``(B)(i) A competency-based education program that is 
                not a term-based program may be treated as a term-based 
                program for purposes of establishing payment periods 
                for disbursement of loans and grants under this title 
                if--
                          ``(I) the institution of higher education 
                        that offers such program charges a flat 
                        subscription fee for access to instruction 
                        during a period determined by the institution; 
                        and
                          ``(II) the institution is able to determine 
                        the competencies a student is expected to 
                        demonstrate for such subscription period.
                  ``(ii) Clause (i) shall apply even in a case in which 
                instruction or other work with respect to a competency 
                that is expected to be attributable to a subscription 
                period begins prior to such subscription period.
                  ``(iii) In a case in which a competency-based 
                education program offered by an institution of higher 
                education is treated as a term-based program under 
                clause (i), the institution shall review the academic 
                progress of each student enrolled in such program in 
                accordance with section 484(c), except that such review 
                shall occur at the end of each payment period.'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Eligible Program.--(1) For purposes of this title, the term 
`eligible program' means--
          ``(A) a program of at least 300 clock hours of instruction, 8 
        semester hours, or 12 quarter hours, offered during a minimum 
        of 10 weeks; or
          ``(B) a competency-based program that--
                  ``(i) has been evaluated and approved by an 
                accrediting agency or association that--
                          ``(I) is recognized by the Secretary under 
                        subpart 2 of part H; and
                          ``(II) has evaluation of competency-based 
                        education programs within the scope of its 
                        recognition in accordance with section 
                        496(a)(4)(C); or
                  ``(ii) as of the day before the date of enactment of 
                the PROSPER Act, met the requirements of a direct 
                assessment program under section 481(b)(4) (as such 
                section was in effect on the day before such date of 
                enactment).
  ``(2) An eligible program described in paragraph (1) may be offered 
in whole or in part through telecommunications.
  ``(3) For purposes of this title, the term `eligible program' does 
not include a program that loses its eligibility under section 481B(a).
  ``(4)(A) If an eligible institution enters into a written arrangement 
with an institution or organization that is not an eligible institution 
under which such ineligible institution or organization provides the 
educational program (in whole or in part) of students enrolled in the 
eligible institution, the educational program provided by such 
ineligible institution shall be considered to be an eligible program 
if--
                  ``(i) the ineligible institution or organization has 
                not--
                          ``(I) had its eligibility to participate in 
                        the programs under this title terminated by the 
                        Secretary;
                          ``(II) voluntarily withdrawn from 
                        participation in the programs under this title 
                        under a proceeding initiated by the Secretary, 
                        accrediting agency or association, guarantor, 
                        or the licensing agency for the State in which 
                        the institution is located, including a 
                        termination, show-cause, or suspension;
                          ``(III) had its certification under subpart 3 
                        of part H to participate in the programs under 
                        this title revoked by the Secretary;
                          ``(IV) had its application for 
                        recertification under subpart 3 of part H to 
                        participate in the programs under this title 
                        denied by the Secretary; or
                          ``(V) had its application for certification 
                        under subpart 3 of part H to participate in the 
                        programs under this title denied by the 
                        Secretary;
                  ``(ii) the educational program offered by the 
                institution that grants the degree or certificate 
                otherwise satisfies the requirements of paragraph (1); 
                and
                  ``(iii)(I) the ineligible institution or organization 
                provides 25 percent or less of the educational program; 
                or
                  ``(II)(aa) the ineligible institution or organization 
                provides more than 25 percent of the educational 
                program; and
                  ``(bb) the eligible institution's accrediting agency 
                or association has determined that the eligible 
                institution's arrangement meets the agency's standards 
                for the contracting out of educational services in 
                accordance with section 496(c)(5)(B)(iv).
  ``(B) For purposes of subparagraph (A), the term `eligible 
institution' means an institution described in section 487(a).''; and
          (3) in subsection (c)(2), by striking ``part B of''.

SEC. 482. PROGRAMMATIC LOAN REPAYMENT RATES.

  Part G of title IV (20 U.S.C. 1088 et seq.) is amended, as amended by 
section 481, is further amended by inserting after section 481A (20 
U.S.C. 1088a) the following:

``SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES.

  ``(a) Ineligibility of an Educational Program Based on Low Repayment 
Rates.--
          ``(1) In general.--With respect to fiscal year 2016 and each 
        succeeding fiscal year, an educational program at an 
        institution of higher education whose loan repayment rate is 
        less than 45 percent for each of the 3 most recent fiscal years 
        for which data are available shall not be considered an 
        eligible program for the fiscal year in which the determination 
        is made and for the 2 succeeding fiscal years, unless, not 
        later than 30 days after receiving notification from the 
        Secretary of the loss of eligibility under this paragraph, the 
        institution appeals the loss of such program's eligibility to 
        the Secretary.
          ``(2) Appeal.--The Secretary shall issue a decision on any 
        such appeal within 45 days after its submission. Such decision 
        may permit a program to be considered an eligible program, if--
                  ``(A) the institution demonstrates to the 
                satisfaction of the Secretary that--
                          ``(i) the Secretary's calculation of such 
                        program's loan repayment rate is not accurate; 
                        and
                          ``(ii) recalculation would increase such 
                        program's loan repayment rate for any of the 3 
                        fiscal years equal to or greater than 45 
                        percent; or
                  ``(B) the program is not subject to paragraph (1) by 
                reason of paragraph (3).
          ``(3) Participation rate index.--
                  ``(A) In general.--An institution that demonstrates 
                to the Secretary that a program's participation rate 
                index is equal to or less than 0.11 for any of the 3 
                most recent fiscal years for which data is available 
                shall not be subject to paragraph (1).
                  ``(B) Index calculation.--The participation rate 
                index for a program shall be determined by 
                multiplying--
                          ``(i) the amount of the difference between--
                                  ``(I) 1.0; and
                                  ``(II) the quotient that results by 
                                dividing--
                                          ``(aa) the program's loan 
                                        repayment rate for a fiscal 
                                        year, or the weighted average 
                                        loan repayment rate for a 
                                        fiscal year, by
                                          ``(bb) 100; and
                          ``(ii) the quotient that results by 
                        dividing--
                                  ``(I) the percentage of the program's 
                                regular students, enrolled on at least 
                                a half-time basis, who received a 
                                covered loan for a 12-month period 
                                ending during the 6 months immediately 
                                preceding the fiscal year for which the 
                                program's loan repayment rate or the 
                                weighted average loan repayment rate is 
                                determined, by
                                  ``(II) 100.
                  ``(C) Data.--An institution shall provide the 
                Secretary with sufficient data to determine the 
                program's participation rate index not later than 30 
                days after receiving an initial notification of the 
                program's draft loan repayment rate under subsection 
                (d)(4)(C).
                  ``(D) Notification.--Prior to publication of a final 
                loan repayment rate under subsection (d)(4)(A) for a 
                program at an institution that provides the data 
                described in subparagraph (C), the Secretary shall 
                notify the institution of the institution's compliance 
                or noncompliance with subparagraph (A).
  ``(b) Repayment Improvement and Assessment of Eligibility Based on 
Low Loan Repayment Rates.--
          ``(1) First year.--
                  ``(A) In general.--An institution with a program 
                whose loan repayment rate is less than 45 percent for 
                any fiscal year shall establish a repayment improvement 
                task force to prepare a plan to--
                          ``(i) identify the factors causing such 
                        program's loan repayment rate to fall below 
                        such percent;
                          ``(ii) establish measurable objectives and 
                        the steps to be taken to improve the program's 
                        loan repayment rate; and
                          ``(iii) specify actions that the institution 
                        can take to improve student loan repayment, 
                        including appropriate counseling regarding loan 
                        repayment options.
                  ``(B) Technical assistance.--Each institution subject 
                to this paragraph shall submit the plan under 
                subparagraph (A) to the Secretary, who shall review the 
                plan and offer technical assistance to the institution 
                to promote improved student loan repayment.
          ``(2) Second consecutive year.--
                  ``(A) In general.--An institution with a program 
                whose loan repayment rate is less than 45 percent for 
                two consecutive fiscal years, shall--
                          ``(i) require the institution's repayment 
                        improvement task force established under 
                        paragraph (1) to review and revise the plan 
                        required under such paragraph; and
                          ``(ii) submit such revised plan to the 
                        Secretary.
                  ``(B) Review by the secretary.--The Secretary--
                          ``(i) shall review each revised plan 
                        submitted in accordance with this paragraph; 
                        and
                          ``(ii) may direct that such plan be amended 
                        to include actions, with measurable objectives, 
                        that the Secretary determines, based on 
                        available data and analyses of student loan 
                        repayment and non-repayment, will promote 
                        student loan repayment.
  ``(c) Programmatic Loan Repayment Rate Defined.--
          ``(1) In general.--Except as provided in subsection (d), for 
        purposes of this section, the term `loan repayment rate' means, 
        when used with respect to an educational program at an 
        institution--
                  ``(A) with respect to any fiscal year in which 30 or 
                more current and former students in such program enter 
                repayment on a covered loan received for attendance in 
                such program, the percentage of such current and former 
                students--
                          ``(i) who enter repayment in such fiscal year 
                        on a covered loan received for attendance in 
                        such program; and
                          ``(ii) who are in a positive repayment status 
                        on each such covered loan at the end of the 
                        second fiscal year following the fiscal year in 
                        which such students entered repayment on such 
                        loan; and
                  ``(B) with respect to any fiscal year in which fewer 
                than 30 of the current and former students in such 
                program enter repayment on a covered loan received for 
                attendance in such program, the percentage of such 
                current and former students--
                          ``(i) who, in any of the three most recent 
                        fiscal years, entered repayment on a covered 
                        loan received for attendance in such program; 
                        and
                          ``(ii) who are in a positive repayment status 
                        on each such covered loan at the end of the 
                        second fiscal year following the fiscal year in 
                        which such students entered repayment on such 
                        loan.
          ``(2) Guaranty agency requirements.--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 loan repayment rate for 
        programs at such institution, prior to the calculation of such 
        rate.
          ``(3) Positive repayment status.--For purposes of this 
        section, the term `positive repayment status', when used with 
        respect to a borrower of a covered loan, means--
                  ``(A) the borrower has entered repayment on such 
                loan, and such loan is less than 90 days delinquent;
                  ``(B) the loan is paid in full (but not through 
                consolidation); or
                  ``(C) with respect to a covered loan that is a 
                Federal ONE Loan, the loan is in a deferment described 
                in 469A(b)(1), and with respect to a covered loan made, 
                insured, or guaranteed under part B or made under part 
                D, the loan is in a deferment or forbearance that is 
                comparable to a deferment described in 469A(b)(1).
          ``(4) Covered loan.--For purposes of this section--
                  ``(A) the term `covered loan' means--
                          ``(i) a loan made, insured, or guaranteed 
                        under section 428 or 428H;
                          ``(ii) a Federal Direct Stafford Loan;
                          ``(iii) a Federal Direct Unsubsidized 
                        Stafford Loan;
                          ``(iv) a Federal Direct PLUS Loan issued to a 
                        graduate or professional student;
                          ``(v) a Federal ONE Loan (other than a 
                        Federal ONE Parent Loan or a Federal ONE 
                        Consolidation Loan not described in clause 
                        (vi)); or
                          ``(vi) the portion of a loan made under 
                        section 428C, a Federal Direct Consolidation 
                        Loan, or a Federal ONE Consolidation Loan that 
                        is used to repay any covered loan described in 
                        clauses (i) through (v); and
                  ``(B) the term `covered loan' does not include a loan 
                described in subparagraph (A) that has been discharged 
                under section 437(a).
  ``(d) Special Rules.--
          ``(1) In general.--In the case of a student who has attended 
        and borrowed at more than one institution of higher education 
        or for more than one educational program at an institution, the 
        student (and such student's subsequent positive repayment 
        status on a covered loan, if applicable)) shall be attributed 
        to each institution of higher education and educational program 
        for attendance at which the student received a loan that 
        entered repayment for the fiscal year for which the loan 
        repayment rate is being calculated.
          ``(2) Delinquent.--A loan on which a payment is made by an 
        institution of higher education, such institutions's owner, 
        agent, contractor, employee, or any other entity or individual 
        affiliated with such institution, in order to prevent the 
        borrower from being more than 90 days delinquent on the loan, 
        shall be considered more than 90 days delinquent for purposes 
        of this subsection.
          ``(3) Regulations to prevent evasions.--The Secretary shall 
        prescribe regulations designed to prevent an institution of 
        higher education from evading the application of a loan 
        repayment rate determination under this section to an 
        educational program at such institution through--
                  ``(A) the use of such measures as branching, 
                consolidation, change of ownership or control, or any 
                similar device; or
                  ``(B) creating a new educational program that is 
                substantially similar to a program determined to be 
                ineligible under subsection (a).
          ``(4) Collection and reporting of loan repayment rates.--
                  ``(A) In general.--The Secretary shall publish not 
                less often than once every fiscal year a report showing 
                final loan repayment data for each program at each 
                institution of higher education for which a loan 
                repayment rate is calculated under this section.
                  ``(B) Publication.--The Secretary shall publish the 
                report described in subparagraph (A) by September 30 of 
                each year.
                  ``(C) Drafts.--
                          ``(i) In general.--The Secretary shall 
                        provide institutions with draft loan repayment 
                        rates for each educational program at the 
                        institution at least 6 months prior to the 
                        release of the final rates under subparagraph 
                        (A).
                          ``(ii) Challenge of draft rates.--An 
                        institution may challenge a program's draft 
                        loan repayment rate provided under clause (i) 
                        for any fiscal year by demonstrating to the 
                        satisfaction of the Secretary that such draft 
                        loan repayment rate is not accurate.
  ``(e) Transition Period.--
          ``(1) During the transition period.--During the transition 
        period, the cohort default rate for each institution of higher 
        education shall be calculated under section 435(m)(1) for each 
        fiscal year for which such rate has not yet been calculated and 
        any requirements with respect to such rates shall continue to 
        apply, except that the loans with respect to which such cohort 
        default rate shall be calculated shall be the covered loans 
        defined in subsection (c)(4).
          ``(2) After the transition period.--After the transition 
        period, no new cohort default rates shall be calculated for an 
        institution of higher education and any requirements with 
        respect to such rates shall cease to apply.
          ``(3) Definitions.--For purposes of this subsection--
                  ``(A) the term `cohort default rate' has the meaning 
                given the term in section 435(m); and
                  ``(B) the term `transition period' means the period--
                          ``(i) beginning on the date of enactment of 
                        the PROSPER Act; and
                          ``(ii) ending on the date on which the 
                        Secretary has published under subsection 
                        (d)(4)(A) the final loan repayment rate for 
                        each program at each institution of higher 
                        education with respect to each of fiscal years 
                        2016, 2017, and 2018.''.

SEC. 483. MASTER CALENDAR.

  Section 482 (20 U.S.C. 1089) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A), by striking 
                        ``February 1'' and inserting ``January 15'';
                          (ii) in subparagraph (B), by striking ``March 
                        1'' and inserting ``February 1'';
                          (iii) in subparagraph (C), by striking ``June 
                        1'' and inserting ``May 1'';
                          (iv) in subparagraph (D), by striking 
                        ``August 15'' and inserting ``July 15'';
                          (v) by striking subparagraph (E), and 
                        redesignating subparagraphs (F) and (G) as 
                        subparagraphs (E) and (F), respectively; and
                          (vi) in subparagraph (E), as so redesignated, 
                        by striking ``October 1'' and inserting 
                        ``September 1''; and
                          (vii) in subparagraph (F), as so 
                        redesignated, by striking ``November 1'' and 
                        inserting ``October 1'';
                  (B) in paragraph (2)--
                          (i) in subparagraph (F), by striking ``and 
                        final Pell Grant payment schedule'';
                          (ii) in subparagraph (J), by striking ``June 
                        1'' and inserting ``May 1'';
                          (iii) by redesignating subparagraphs (C) 
                        through (J) as subparagraphs (D) through (K), 
                        respectively; and
                          (iv) by inserting after subparagraph (B) the 
                        following:
                  ``(C) by November 1: final Pell Grant payment 
                schedule;''; and
          (2) in subsection (b)--
                  (A) by striking ``413D(d), 442(d), or 462(i)'' and 
                inserting ``442(d)''; and
                  (B) by striking ``the programs under subpart 3 of 
                part A, part C, and part E, respectively'' and 
                inserting ``part C''.

SEC. 484. FAFSA SIMPLIFICATION.

  (a) In General.--Section 483 (20 U.S.C. 1090) is amended--
          (1) in subsection (a)(3)--
                  (A) in subparagraph (E), by adding at the end the 
                following: ``Notwithstanding the limitations on sharing 
                data described in this paragraph, an institution of 
                higher education may, with explicit written consent of 
                the applicant, provide such information as is necessary 
                to a scholarship granting organization designated by 
                the applicant to assist the applicant in applying for 
                and receiving financial assistance for the applicant's 
                education at that institution. An organization that 
                receives information pursuant to the preceding sentence 
                shall not maintain, warehouse, sell, or otherwise store 
                or share such information after it has been used to 
                determine the additional aid available for such 
                applicant and the organization shall destroy the 
                information after such determination has been made.''; 
                and
                  (B) by adding at the end the following:
                  ``(I) Format.--Not later than 1 year after the date 
                of the enactment of the PROSPER Act, the Secretary 
                shall make the electronic version of the forms under 
                this paragraph available through a technology tool 
                optimized for use on mobile devices. Such technology 
                tool shall, at minimum, enable applicants to--
                          ``(i) save data; and
                          ``(ii) submit the FAFSA of such applicant to 
                        the Secretary through such tool.
                  ``(J) Consumer testing.--In developing and 
                maintaining the electronic version of the forms under 
                this paragraph and the technology tool for mobile 
                devices under subparagraph (I), the Secretary shall 
                conduct consumer testing with appropriate persons to 
                ensure the forms and technology tool are designed to be 
                easily usable and understandable by students and 
                families. Such consumer testing shall include--
                          ``(i) current and prospective college 
                        students, family members of such students, and 
                        other individuals with expertise in student 
                        financial assistance application processes;
                          ``(ii) dependent students and independent 
                        students who meet the requirements under 
                        subsection (b) or (c) of section 479; and
                          ``(iii) dependent students and independent 
                        students who do not meet the requirements under 
                        subsection (b) or (c) of section 479.''; and
          (2) by amending subsection (f) to read as follows:
  ``(f) Use of Internal Revenue Service Data Retrieval Tool to Populate 
FAFSA.--
          ``(1) Simplification efforts.--The Secretary shall--
                  ``(A) make every effort to allow applicants to 
                utilize the current data retrieval tool to transfer, 
                through a rigorous authentication process, data 
                available from the Internal Revenue Service to reduce 
                the amount of original data entry by applicants and 
                strengthen the reliability of data used to calculate 
                expected family contributions, including through the 
                use of technology to--
                          ``(i) allow an applicant to automatically 
                        populate the electronic version of the forms 
                        under this paragraph with data available from 
                        the Internal Revenue Service; and
                          ``(ii) direct an applicant to appropriate 
                        questions on such forms based on the 
                        applicant's answers to previous questions; and
                  ``(B) allow single taxpayers, married taxpayers 
                filing jointly, and married taxpayers filing separately 
                to utilize the current data retrieval tool to its full 
                capacity.
          ``(2) Use of tax return in application process.--The 
        Secretary shall continue to examine whether data provided by 
        the Internal Revenue Service can be used to generate an 
        expected family contribution without additional action on the 
        part of the student and taxpayer.
          ``(3) Reports on fafsa simplification efforts.--Not less than 
        once every year, the Secretary shall report to the authorizing 
        committees on--
                  ``(A) the progress of the simplification efforts 
                under this subsection; and
                  ``(B) the security of the data retrieval tool.''.
  (b) Technical Amendment.--Section 483(a)(9)(C) (20 U.S.C. 
1090(a)(9)(C)) is amended by inserting ``, including through the tool 
described in section 485E(c)'' before the semicolon.

SEC. 485. STUDENT ELIGIBILITY.

  Section 484 (20 U.S.C. 1091) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``a degree, 
                certificate, or other program (including a program of 
                study abroad approved for credit by the eligible 
                institution at which such student is enrolled) leading 
                to a'' and inserting ``an eligible program (including a 
                program of study abroad approved for credit by the 
                eligible institution at which such student is enrolled) 
                leading to a degree, certificate, or other''; and
                  (B) in paragraph (3), by inserting ``as in effect on 
                the day before the date of enactment of the PROSPER Act 
                and pursuant to section 461(a) of such Act,'' after 
                ``part E,'';
          (2) in subsection (b)--
                  (A) in paragraph (3), by striking ``part B or D'' and 
                inserting ``part B, D, or E''; and
                  (B) by adding at the end the following:
  ``(6) For purposes of competency-based education, in order to be 
eligible to receive any loan under this title for an award year, a 
student may be enrolled in coursework attributable only to 2 academic 
years within the award year.'';
          (3) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) in subparagraph (A)--
                                  (I) by inserting ``least as 
                                frequently as'' before ``the end of 
                                each''; and
                                  (II) by striking ``, and'' at the end 
                                and inserting a semicolon;
                          (ii) in subparagraph (B)--
                                  (I) by striking ``the student has a 
                                cumulative'' and inserting the 
                                following: ``the student has--
                          ``(i) a cumulative'';
                                  (II) by striking ``the second'' and 
                                inserting ``each'';
                                  (III) by striking the period at the 
                                end and inserting ``; or'' ; and
                                  (IV) by adding at the end the 
                                following:
                          ``(ii) for the purposes of competency-based 
                        programs, a non-grade equivalent demonstration 
                        of academic standing consistent with the 
                        requirements for graduation, as determined by 
                        the institution, at the end of each such 
                        academic year; and''; and
                          (iii) by adding at the end the following:
          ``(C) the student maintains a pace in his or her educational 
        program that--
                  ``(i) ensures that the student completes the program 
                within the maximum timeframe; and
                  ``(ii) is measured by a method determined by the 
                institution which may be based on credit hours, clock 
                hours, or competencies completed.'';
                  (B) in paragraph (2), by striking ``grading period'' 
                and inserting ``evaluation period''; and
                  (C) by adding at the end the following:
  ``(4) For purposes of this subsection, the term `maximum timeframe' 
means--
          ``(A) with respect to an undergraduate program measured in 
        credit hours, a period that is no longer than 150 percent of 
        the published length of the educational program, as measured in 
        credit hours;
          ``(B) with respect to an undergraduate program measured in 
        competencies, a period that is no longer than 150 percent of 
        the published length of the educational program, as measured in 
        competencies;
          ``(C) with respect to an undergraduate program measured in 
        clock hours, a period that is no longer than 150 percent of the 
        published length of the educational program, as measured by the 
        cumulative number of clock hours the student is required to 
        complete and expressed in calendar time; and
          ``(D) with respect to a graduate program, a period defined by 
        the institution that is based on the length of the educational 
        program.'';
          (4) by amending subsection (d) to read as follows:
  ``(d) Additional Student Eligibility.--
          ``(1) Ability to benefit students.--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 
        subpart 1 of part A and parts C, D, and E of this title, the 
        student shall be determined by the institution of higher 
        education as having the ability to benefit from the education 
        offered by the institution of higher education upon 
        satisfactory completion of 6 credit hours or the equivalent 
        coursework that are applicable toward a degree or certificate 
        offered by the institution of higher education.
          ``(2) Homeschool students.--A student who has completed a 
        secondary school education in a home school setting that is 
        treated as a home school or private school under State law 
        shall be eligible for assistance under subpart 1 of part A and 
        parts C, D, and E of this title.
          ``(3) Secondary education provided by nonprofit 
        corporations.--A student who has completed a secondary 
        education provided by a school operating as a nonprofit 
        corporation that offers a program of study determined 
        acceptable for admission at an institution of higher education 
        shall be eligible for assistance under subpart 1 of part A and 
        parts C, D, and E of this title.''.
          (5) in subsection (f)(1), by striking ``or part E'' both 
        places it appears and inserting the following: ``, part E (as 
        in effect on the day before the date of enactment of the 
        PROSPER Act and pursuant to section 461(a) of such Act), or 
        part E (as in effect on or after the date of enactment of the 
        PROSPER Act)'';
          (6) by striking subsection (l);
          (7) in subsection (n)--
                  (A) by striking ``(n) Data Base Matching.--To 
                enforce''; and inserting the following:
  ``(n) Selective Service Registration.--
          ``(1) Data base matching.--To enforce''; and
                  (B) by adding at the end the following:
          ``(2) Effect of failure to register for selective service.--A 
        person who is 26 years of age or older shall not be ineligible 
        for assistance or a benefit provided under this title by reason 
        of failure to present himself for, and submit to, registration 
        under section 3 of the Military Selective Service Act (50 
        U.S.C. 3802).''; and
          (8) by redesignating subsections (m) through (t) as 
        subsections (l) through (s).

SEC. 486. STATUTE OF LIMITATIONS.

  Section 484A (20 U.S.C. 1088) is amended--
          (1) in subsection (a)(2)(C)--
                  (A) by striking ``or 463(a)'' and inserting ``, 
                section 463(a) (as in effect on the day before the date 
                of enactment of the PROSPER Act and pursuant to section 
                461(a) of such Act), or section 463 (as in effect on or 
                after the date of enactment of the PROSPER Act)''; and
                  (B) by striking ``or E'' and inserting ``, E (as in 
                effect on the day before the date of enactment of the 
                PROSPER Act and pursuant to section 461(a) of such 
                Act), or E (as in effect on or after the date of 
                enactment of the PROSPER Act)''; and
          (2) in subsection (b)--
                  (A) by striking ``and'' at the end of paragraph (2);
                  (B) in paragraph (3)--
                          (i) by inserting ``(as in effect on the day 
                        before the date of enactment of the PROSPER Act 
                        and pursuant to section 461(a) of such Act)'' 
                        after ``part E'';
                          (ii) by inserting ``(as so in effect)'' after 
                        ``section 463(a)''; and
                          (iii) by striking the period at the end and 
                        inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) in collecting any obligation arising from a loan made 
        under part E (as in effect on or after the date of enactment of 
        the PROSPER Act), an institution of higher education that has 
        an agreement with the Secretary pursuant to section 463(a) (as 
        so in effect) shall not be subject to a defense raised by any 
        borrower based on a claim of infancy.''.

SEC. 487. INSTITUTIONAL REFUNDS.

  Section 484B (20 U.S.C. 1091b) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``If a recipient'' and 
                        inserting the following:
                  ``(A) Consequence of withdrawal.--If a recipient''; 
                and
                          (ii) by adding at the end the following:
                  ``(B) Special rule.--For purposes of subparagraph 
                (A), a student--
                          ``(i) who is enrolled in a program offered in 
                        modules is not considered withdrawn if the 
                        change in the student's attendance constitutes 
                        a change in enrollment status within the 
                        payment period rather than a discontinuance of 
                        attendance within the payment period; and
                          ``(ii) is considered withdrawn if the student 
                        follows the institution's official withdrawal 
                        procedures or leaves without notifying the 
                        institution and has not returned before the end 
                        of the payment period.'';
                  (B) in paragraph (3)--
                          (i) in subparagraph (B), by striking clauses 
                        (i) and (ii) and inserting the following:
                          ``(i) 0 percent, if the day the student 
                        withdrew occurs when the student has completed 
                        (as determined in accordance with subsection 
                        (d)) 0 to 24 percent of the payment period or 
                        period of enrollment;
                          ``(ii) 25 percent, if the day the student 
                        withdrew occurs when the student has completed 
                        (as determined in accordance with subsection 
                        (d)) 25 to 49 percent of the payment period or 
                        period of enrollment;
                          ``(iii) 50 percent, if the day the student 
                        withdrew occurs when the student has completed 
                        (as determined in accordance with subsection 
                        (d)) 50 to 74 percent of the payment period or 
                        period of enrollment; or
                          ``(iv) 75 percent, if the day the student 
                        withdrew occurs when the student has completed 
                        (as determined in accordance with subsection 
                        (d)) 75 to 99 percent of the payment period or 
                        period of enrollment.''.
                          (ii) in subparagraph (C)(i), by striking 
                        ``subparts 1 and 3 of part A, or loan 
                        assistance under parts B, D,'' and inserting 
                        ``subpart 1 of part A or loan assistance under 
                        parts D''; and
                  (C) in paragraph (4)--
                          (i) in subparagraph (A), by striking 
                        ``Secretary), the institution of higher 
                        education shall contact the borrower'' and 
                        inserting ``Secretary), the institution of 
                        higher education shall have discretion to 
                        determine whether all or a portion of the late 
                        or post-withdrawal disbursement should be made, 
                        under a publicized institutional policy. If the 
                        institution of higher education determines that 
                        a disbursement should be made, the institution 
                        shall contact the borrower''; and
                          (ii) in subparagraph (B) by striking 
                        ``institution or the student, or both, as may 
                        be required under paragraphs (1) and (2) of 
                        subsection (b), to the programs under this 
                        title in the order specified in'' and inserting 
                        ``institution, as may be required under 
                        paragraph (1) of subsection (b), to the 
                        programs under this title in accordance with'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Return of Title IV Program Funds.--
          ``(1) Responsibility of the institution.--The institution 
        shall return not later than 60 days from the determination of 
        withdrawal, in accordance with paragraph (3), the amount of 
        grant and loan assistance awarded under this title that has not 
        been earned by the student, as calculated under subsection 
        (a)(3)(C).
          ``(2) Responsibility of the student.--
                  ``(A) In general.--The student is not responsible to 
                return assistance that has not been earned, except that 
                the institution may require the student to pay to the 
                institution up to 10 percent of the amount owed by the 
                institution in paragraph (1).
                  ``(B) Rule of construction.--Nothing in this section 
                shall be construed to prevent an institution from 
                enforcing the published institutional refund policies 
                of such institution.
          ``(3) Order of return of title iv funds.--
                  ``(A) In general.--Excess funds returned by the 
                institution in accordance with paragraph (1) shall be 
                credited to awards under subpart 1 of part A for the 
                payment period or period of enrollment for which a 
                return of funds is required.
                  ``(B) Remaining excesses.--If excess funds remain 
                after repaying all outstanding grant amounts, the 
                remaining excess shall be credited in the following 
                order:
                          ``(i) To outstanding balances on loans made 
                        under this title to the student or on behalf of 
                        the student for the payment period or period of 
                        enrollment for which a return of funds is 
                        required.
                          ``(ii) To other assistance awarded under this 
                        title for which a return of funds is 
                        required.'';
          (3) by amending subsection (c) to read as follows:
  ``(c) Withdrawal Date.--
          ``(1) In general.--In this section, the term `day the student 
        withdrew'--
                  ``(A) for institutions not required to take 
                attendance, is the date as determined by the 
                institution that--
                          ``(i) the student began the withdrawal 
                        process prescribed and publicized by the 
                        institution, or a later date if the student 
                        continued attendance despite beginning the 
                        withdrawal process, but did not then complete 
                        the payment period; or
                          ``(ii) in the case of a student who does not 
                        begin the withdrawal process, the date that is 
                        the mid-point of the payment period for which 
                        assistance under this title was disbursed or 
                        another date documented by the institution; or
                  ``(B) for institutions required to take attendance, 
                is determined by the institution from such attendance 
                records.
          ``(2) Special rule.--Notwithstanding paragraph (1), if the 
        institution determines that a student did not begin the 
        withdrawal process, due to illness, accident, grievous personal 
        loss, or other such circumstances beyond the student's control, 
        the institution may determine the appropriate withdrawal date 
        under its own defined policies.
          ``(3) Attendance.--An institution is required to take 
        attendance if an institution's accrediting agency or State 
        licensing agency has a requirement that the institution take 
        attendance for all students in an academic program throughout 
        the entire payment period.''; and
          (4) by striking subsections (d) and (e).

SEC. 488. INFORMATION DISSEMINATED TO PROSPECTIVE AND ENROLLED 
                    STUDENTS.

  (a) Use of Website to Disseminate Information.--Section 485(a)(1) (20 
U.S.C. 1092(a)(1)) is amended in the matter preceding subparagraph (A) 
by striking the second and third sentences and inserting the following: 
``The information required by this section shall be produced and be 
made readily available to enrolled and prospective students on the 
institution's website (or in other formats upon request).''.
  (b) Information on Prohibiting Copyright Infringement.--Section 
485(a)(1)(P) (20 U.S.C. 1092(a)(1)(P)) is amended by striking ``, 
including--'' and all that follows and inserting a period.
  (c) Elimination of Certain Reporting Requirements.--
          (1) In general.--Section 485(a)(1) (20 U.S.C. 1092(a)(1)) is 
        amended--
                  (A) by striking subparagraph (L);
                  (B) by redesignating subparagraphs (M) through (P) as 
                subparagraphs (L) through (O); and
                  (C) by striking subparagraphs (Q) through (V) and 
                inserting the following:
                  ``(P) the fire safety report prepared by the 
                institution pursuant to subsection (i); and
                  ``(Q) the link to the institution's information on 
                the College Dashboard website operated under section 
                132.''.
          (2) Conforming amendments.--Section 485(a) (20 U.S.C. 
        1092(a)) is amended by striking paragraphs (3) through (7).
  (d) Exit Counseling.--Section 485(b) (20 U.S.C. 1092(b)) is amended--
          (1) in paragraph (1)(A)--
                  (A) in the matter preceding clause (i)--
                          (i) by striking ``through financial aid 
                        offices or otherwise'' and inserting ``through 
                        the use of an interactive program, during an 
                        exit counseling session that is in-person or 
                        online, or through the use of the online 
                        counseling tool described in subsection 
                        (n)(1)(A)''; and
                          (ii) by inserting ``, as in effect on the day 
                        before the date of enactment of the PROSPER Act 
                        and pursuant to section 461(a) of such Act or 
                        made under part E (other than Federal ONE 
                        Parent Loans), as in effect on or after the 
                        date of enactment of the PROSPER Act'' after 
                        ``part E'';
                  (B) by redesignating clauses (i) through (ix) as 
                clauses (iv) through (xii), respectively;
                  (C) by inserting before clause (iv), as so 
                redesignated, the following:
          ``(i) a summary of the outstanding balance of principal and 
        interest due on the loans made to the borrower under this 
        title;
          ``(ii) an explanation of the grace period preceding repayment 
        and the expected date that the borrower will enter repayment;
          ``(iii) an explanation of cases of interest capitalization 
        and that the borrower has the option to pay any interest that 
        has accrued while the borrower was in school or that may accrue 
        during the grace period preceding repayment or during an 
        authorized period of deferment or forbearance, prior to the 
        capitalization of the interest;'';
                  (D) in clause (iv), as so redesignated--
                          (i) by striking ``sample information showing 
                        the average'' and inserting ``information, 
                        based on the borrower's outstanding balance 
                        described in clause (i), showing the 
                        borrower's''; and
                          (ii) by striking ``of each plan'' and 
                        inserting ``of at least the standard repayment 
                        plan and the income-based repayment plan under 
                        section 466(d)'';
                  (E) in clause (ix), as so redesignated--
                          (i) by inserting ``decreased credit score,'' 
                        after ``credit reports,''; and
                          (ii) by inserting ``potential reduced ability 
                        to rent or purchase a home or car, potential 
                        difficulty in securing employment,'' after 
                        ``Federal law,'';
                  (F) in clause (x), as so redesignated, by striking 
                ``consolidation loan under section 428C or a'';
                  (G) in clauses (xi) and (xii), as so redesignated, by 
                striking ``and'' at the end; and
                  (H) by adding at the end the following:
          ``(xiii) for each of the borrower's loans made under this 
        title for which the borrower is receiving counseling under this 
        subsection, the contact information for the servicer of the 
        loan and a link to the Website of such servicer; and
          ``(xiv) an explanation that an individual has a right to 
        annually request a disclosure of information collected by a 
        consumer reporting agency pursuant to section 612(a) of the 
        Fair Credit Reporting Act (15 U.S.C. 1681j(a)).'';
          (2) in paragraph (1)(B)--
                  (A) by inserting ``online or'' before ``in writing''; 
                and
                  (B) by adding before the period at the end the 
                following: ``, except that in the case of an 
                institution using the online counseling tool described 
                in subsection (n)(1)(A), the Secretary shall attempt to 
                provide such information to the student in the manner 
                described in subsection (n)(3)(C)''; and
          (3) in paragraph (2)(C), by inserting ``, such as the online 
        counseling tool described in subsection (n)(1)(A),'' after 
        ``electronic means''.
  (e) Departmental Publication of Descriptions of Assistance 
Programs.--The third sentence of section 485(d)(1) (20 U.S.C. 
1092(d)(1)) is amended by striking ``part D'' and inserting ``part D or 
E''.
  (f) Amendments to Clery Act.--
          (1) Preventing interference with criminal justice 
        proceedings; timely warnings; consistency of institutional 
        crime reporting.--Section 485(f) (20 U.S.C. 1092(f)) is 
        amended--
                  (A) by striking paragraph (3) and inserting the 
                following:
          ``(3) Each institution participating in any program under 
        this title, other than a foreign institution of higher 
        education, shall make timely reports to the campus community on 
        crimes described in paragraph (1)(F) that have been reported to 
        campus security officials and pose a serious and continuing 
        threat to other students and employees' safety. Such reports 
        shall withhold the names of victims as confidential and shall 
        be provided in a timely manner, except that an institution may 
        delay issuing a report if the issuance would compromise ongoing 
        law enforcement efforts, such as efforts to apprehend a 
        suspect. The report shall also include information designed to 
        assist students and employees in staying safe and avoiding 
        similar occurrences to the extent such information is available 
        and appropriate to include. In assessing institutional 
        compliance with this section, the Secretary shall defer to the 
        institution's determination of whether a particular crime poses 
        a serious and continuing threat to the campus community, and 
        the timeliness of such warning, provided that, in making its 
        decision, the institution acted reasonably and based on the 
        considered professional judgement of campus security officials, 
        based on the facts and circumstances known at the time.'';
                  (B) by redesignating paragraph (18) as paragraph 
                (20); and
                  (C) by inserting after paragraph (17) the following:
  ``(18) Nothing in this subsection may be construed to prohibit an 
institution of higher education from delaying the initiation of, or 
suspending, an investigation or institutional disciplinary proceeding 
involving an allegation of sexual assault in response to a request from 
a law enforcement agency or a prosecutor to delay the initiation of, or 
suspend, the investigation or proceeding, and any delay or suspension 
of such an investigation or proceeding in response to such a request 
may not serve as the grounds for any sanction or audit finding against 
the institution or for the suspension or termination of the 
institution's participation in any program under this title.
  ``(19)(A) Reporting carried out under this subsection shall be 
conducted in a manner to ensure maximum consistency with the Uniform 
Crime Reporting Program of the Department of Justice.
  ``(B) The Secretary shall require institutions of higher education to 
report crime statistics under this section using definitions of such 
crimes, when available, from the Uniform Crime Reporting Program of the 
Department of Justice.
  ``(C) The Secretary shall maintain a publicly available and updated 
list of all applicable definitions from the Uniform Crime Reporting 
Program of the Department of Justice.
  ``(D) With respect to a report under this subsection, in the case of 
a crime for which no Uniform Crime Reporting Program of the Department 
of Justice definition exists, the Secretary shall require that 
institutions of higher education report such crime according to a 
definition provided by the Secretary.
  ``(E) An institution of higher education that reports a crime 
described in subparagraph (D) shall not be subject to any penalty or 
fine for reporting inaccuracies or omissions if the institution of 
higher education can demonstrate that it made a reasonable and good 
faith effort to report crimes consistent with the definition provided 
by the Secretary.
  ``(F) With respect to a report under this subsection, the Secretary 
shall require institutions of higher education to follow the Hierarchy 
Rule for reporting crimes under the Uniform Crime Reporting Program of 
the Department of Justice, so as to minimize duplicate reporting and 
ensure greater consistency with national crime reporting systems.''.
          (2) Due process requirements for institutional disciplinary 
        proceedings.--Section 485(f)(8)(B)(iv)(I) (20 U.S.C. 
        1092(f)(8)(B)(iv)(I)) is amended to read as follows:
                          ``(I) the investigation of the allegation and 
                        any institutional disciplinary proceeding in 
                        response to the allegation shall be prompt, 
                        impartial, and fair to both the accuser and the 
                        accused by, at a minimum--
                                  ``(aa) providing all parties to the 
                                proceeding with adequate written notice 
                                of the allegation not later than 2 
                                weeks prior to the start of any formal 
                                hearing or similar adjudicatory 
                                proceeding, and including in such 
                                notice a description of all rights and 
                                responsibilities under the proceeding, 
                                a statement of all relevant details of 
                                the allegation, and a specific 
                                statement of the sanctions which may be 
                                imposed;
                                  ``(bb) providing each person against 
                                whom the allegation is made with a 
                                meaningful opportunity to admit or 
                                contest the allegation;
                                  ``(cc) ensuring that all parties to 
                                the proceeding have access to all 
                                material evidence not later than one 
                                week prior to the start of any formal 
                                hearing or similar adjudicatory 
                                proceeding;
                                  ``(dd) ensuring that the proceeding 
                                is carried out free from conflicts of 
                                interest by ensuring that there is no 
                                commingling of administrative or 
                                adjudicative roles; and
                                  ``(ee) ensuring that the 
                                investigation and proceeding shall be 
                                conducted by officials who receive 
                                annual education on issues related to 
                                domestic violence, dating violence, 
                                sexual assault, and stalking, and on 
                                how to conduct an investigation and an 
                                institutional disciplinary proceeding 
                                that protects the safety of victims, 
                                ensures fairness for both the accuser 
                                and the accused, and promotes 
                                accountability;''.
          (3) Establishment of standard of evidence for institutional 
        disciplinary proceedings.--
                  (A) Inclusion in statement of policy.--Section 
                485(f)(8)(B) (20 U.S.C. 1092(f)(8)(B)) is amended by 
                adding at the end the following new clause:
          ``(viii) The establishment of a standard of evidence that 
        will be used in institutional disciplinary proceedings 
        involving allegations of sexual assault, which may be based on 
        such standards and criteria as the institution considers 
        appropriate (including the institution's culture, history, and 
        mission, the values reflected in its student code of conduct, 
        and the purpose of the institutional disciplinary proceedings) 
        so long as the standard is not arbitrary or capricious and is 
        applied consistently throughout all such proceedings.''.
                  (B) Conforming amendments.--Section 485(f)(8)(B)(iv) 
                (20 U.S.C. 1092(f)(8)(B)(iv)) is amended--
                          (i) by striking ``and'' at the end of 
                        subclause (II);
                          (ii) by striking the period at the end of 
                        subclause (III) and inserting ``; and''; and
                          (iii) by adding at the end the following new 
                        subclause:
                  ``(IV) in the case of a proceeding involving an 
                allegation of sexual assault, such proceedings shall be 
                conducted in accordance with the standard of evidence 
                established by the institution under clause (viii), 
                together with a clear statement describing such 
                standard of evidence.''.
          (4) Education modules for officials conducting investigations 
        and institutional disciplinary proceedings.--Section 485(f)(8) 
        (20 U.S.C. 1092(f)(8)) is amended by adding at the end the 
        following new subparagraph:
  ``(D) In consultation with experts from institutions of higher 
education, law enforcement agencies, advocates for sexual assault 
victims, experts in due process, and other appropriate persons, the 
Secretary shall create and regularly update modules which an 
institution of higher education may use to provide the annual education 
described in subparagraph (B)(iv)(I)(ee) for officials conducting 
investigations and institutional disciplinary proceedings involving 
allegations described in such subparagraph. If the institution uses 
such modules to provide the education described in such subparagraph, 
the institution shall be considered to meet any requirement under such 
subparagraph or any other Federal law regarding the education provided 
to officials conducting such investigations and proceedings.''.
  (g) Modification of Certain Reporting Requirements.--
          (1) Fire safety.--Section 485(i) (20 U.S.C. 1092(i)) is 
        amended to read as follows:
  ``(i) Fire Safety Reports.--
          ``(1) Annual report.--Each eligible institution participating 
        in any program under this title that maintains on-campus 
        student housing facilities shall, on an annual basis, publish a 
        fire safety report, which shall contain information with 
        respect to the campus fire safety practices and standards of 
        that institution, statistics on any fire related incidents or 
        injuries, and any preventative measures or technologies.
          ``(2) Rules of construction.--Nothing in this subsection 
        shall be construed to--
                  ``(A) authorize the Secretary to require particular 
                policies, procedures, programs, or practices by 
                institutions of higher education with respect to fire 
                safety;
                  ``(B) affect section 444 of the General Education 
                Provisions Act (commonly known as the `Family Education 
                Rights and Privacy Act of 1974') or the regulations 
                issued under section 264 of the Health Insurance 
                Portability and Accountability Act of 1996 (42 U.S.C. 
                1320d-2 note);
                  ``(C) create a cause of action against any 
                institution of higher education or any employee of such 
                an institution for any civil liability; or
                  ``(D) establish any standard of care.
          ``(3) Evidence.--Notwithstanding any other provision of law, 
        evidence regarding compliance or noncompliance with this 
        subsection shall not be admissible as evidence in any 
        proceeding of any court, agency, board, or other entity, except 
        with respect to an action to enforce this subsection.''.
          (2) Missing persons procedures.--
                  (A) In general.--Section 485(j)(1) (20 U.S.C. 
                1092(j)(1)) is amended to read as follows:
          ``(1) In general.--Each institution of higher education that 
        provides on-campus housing and participates in any program 
        under this title shall establish a missing student policy for 
        students who reside in on-campus housing that, at a minimum, 
        informs each residing student that the institution will notify 
        such student's designated emergency contact and the appropriate 
        law enforcement agency not later than 24 hours after the time 
        that the student is determined missing, and in the case of a 
        student who is under 18 years of age, the institution will 
        notify a custodial parent or guardian.''.
                  (B) Rule of construction.--Section 485(j)(2) (20 
                U.S.C. 1092(j)(2)) is amended--
                          (i) by striking ``or'' at the end of 
                        subparagraph (A);
                          (ii) by striking the period at the end of 
                        subparagraph (B) and inserting ``; or''; and
                          (iii) by adding at the end the following new 
                        subparagraph:
                  ``(C) to require an institution of higher education 
                to maintain separate missing student emergency contact 
                information, so long as the institution otherwise has 
                an emergency contact for students residing on 
                campus.''.
  (h) Annual Counseling.--Section 485(l) (20 U.S.C. 1092(l)) is amended 
to read as follows:
  ``(l) Annual Financial Aid Counseling.--
          ``(1) Annual disclosure required.--
                  ``(A) In general.--Each eligible institution shall 
                ensure, and annually affirm to the Secretary, that each 
                individual enrolled at such institution who receives a 
                Federal Pell Grant or a loan made under this title 
                (other than a Federal Direct Consolidation Loan or 
                Federal ONE Consolidation Loan) receives comprehensive 
                information on the terms and conditions of such Federal 
                Pell Grant or loan and the responsibilities the 
                individual has with respect to such Federal Pell Grant 
                or loan. Such information shall be provided, for each 
                award year for which the individual receives such 
                Federal Pell Grant or loan, in a simple and 
                understandable manner--
                          ``(i) during a counseling session conducted 
                        in person;
                          ``(ii) online, with the individual 
                        acknowledging receipt of the information; or
                          ``(iii) through the use of the online 
                        counseling tool described in subsection 
                        (n)(1)(B).
                  ``(B) Use of interactive programs.--In the case of 
                institutions not using the online counseling tool 
                described in subsection (n)(1)(B), the Secretary shall 
                require such institutions to carry out the requirements 
                of subparagraph (A)--
                          ``(i) through the use of interactive 
                        programs;
                          ``(ii) during an annual counseling session 
                        that is in-person or online that tests the 
                        individual's understanding of the terms and 
                        conditions of the Federal Pell Grant or loan 
                        awarded to the student; and
                          ``(iii) using simple and understandable 
                        language and clear formatting.
          ``(2) All individuals.--The information to be provided under 
        paragraph (1) to each individual receiving counseling under 
        this subsection shall include the following:
                  ``(A) An explanation of how the student may budget 
                for typical educational expenses and a sample budget 
                based on the cost of attendance for the institution.
                  ``(B) An explanation that an individual has a right 
                to annually request a disclosure of information 
                collected by a consumer reporting agency pursuant to 
                section 612(a) of the Fair Credit Reporting Act (15 
                U.S.C. 1681j(a)).
                  ``(C) Based on the most recent data available from 
                the American Community Survey available from the 
                Department of Commerce, the estimated average income 
                and percentage of employment in the State of domicile 
                of the borrower for persons with--
                          ``(i) a high school diploma or equivalent;
                          ``(ii) some post-secondary education without 
                        completion of a degree or certificate;
                          ``(iii) an associate's degree;
                          ``(iv) a bachelor's degree; and
                          ``(v) a graduate or professional degree.
                  ``(D) An introduction to the financial management 
                resources provided by the Financial Literacy and 
                Education Commission.
          ``(3) Students receiving federal pell grants.--The 
        information to be provided under paragraph (1) to each student 
        receiving a Federal Pell Grant shall include the following:
                  ``(A) An explanation of the terms and conditions of 
                the Federal Pell Grant.
                  ``(B) An explanation of approved educational expenses 
                for which the student may use the Federal Pell Grant.
                  ``(C) An explanation of why the student may have to 
                repay the Federal Pell Grant.
                  ``(D) An explanation of the maximum number of 
                semesters or equivalent for which the student may be 
                eligible to receive a Federal Pell Grant, and a 
                statement of the amount of time remaining for which the 
                student may be eligible to receive a Federal Pell 
                Grant.
                  ``(E) An explanation that if the student transfers to 
                another institution not all of the student's courses 
                may be acceptable to apply toward meeting specific 
                degree or program requirements at such institution, but 
                the amount of time remaining for which a student may be 
                eligible to receive a Federal Pell Grant, as provided 
                under subparagraph (D), will not change.
                  ``(F) An explanation of how the student may seek 
                additional financial assistance from the institution's 
                financial aid office due to a change in the student's 
                financial circumstances, and the contact information 
                for such office.
          ``(4) Borrowers receiving loans made this title (other than 
        federal direct plus loans made on behalf of dependent students 
        or federal one parent loans).--The information to be provided 
        under paragraph (1) to a borrower of a loan made under this 
        title (other than other than a Federal Direct PLUS Loan made on 
        behalf of a dependent student or a Federal ONE Parent Loan) 
        shall include the following:
                  ``(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the eligibility 
                of the borrower for other forms of student financial 
                assistance.
                  ``(B) An explanation of the use of the master 
                promissory note.
                  ``(C) An explanation that the borrower is not 
                required to accept the full amount of the loan offered 
                to the borrower.
                  ``(D) An explanation that the borrower should 
                consider accepting any grant, scholarship, or State or 
                Federal work-study jobs for which the borrower is 
                eligible prior to accepting Federal student loans.
                  ``(E) An explanation of treatment of loans made under 
                this title and private education loans in bankruptcy, 
                and an explanation that if a borrower decides to take 
                out a private education loan--
                          ``(i) the borrower has the ability to select 
                        a private educational lender of the borrower's 
                        choice;
                          ``(ii) the proposed private education loan 
                        may impact the borrower's potential eligibility 
                        for other financial assistance, including 
                        Federal financial assistance under this title; 
                        and
                          ``(iii) the borrower has a right--
                                  ``(I) to accept the terms of the 
                                private education loan within 30 
                                calendar days following the date on 
                                which the application for such loan is 
                                approved and the borrower receives the 
                                required disclosure documents, pursuant 
                                to section 128(e)(6) of the Truth in 
                                Lending Act; and
                                  ``(II) to cancel such loan within 3 
                                business days of the date on which the 
                                loan is consummated, pursuant to 
                                section 128(e)(7) of such Act.
                  ``(F) An explanation of the approved educational 
                expenses for which the borrower may use a loan made 
                under this title.
                  ``(G) Information on the annual and aggregate loan 
                limits for a loan made under this title.
                  ``(H) Information on interest, including the annual 
                percentage rate of such loan, as calculated using the 
                standard 10-year repayment term, and how interest 
                accrues and is capitalized during periods when the 
                interest is not paid by the borrower.
                  ``(I) The option of the borrower to pay the interest 
                while the borrower is in school.
                  ``(J) The definition of half-time enrollment at the 
                institution, during regular terms and summer school, if 
                applicable, and the consequences of not maintaining at 
                least half-time enrollment.
                  ``(K) An explanation of the importance of contacting 
                the appropriate offices at the institution of higher 
                education if the borrower withdraws prior to completing 
                the borrower's program of study so that the institution 
                can provide exit counseling, including information 
                regarding the borrower's repayment options and loan 
                consolidation.
                  ``(L) For a first-time borrower or a borrower of a 
                loan under this title who owes no principal or interest 
                on such loan--
                          ``(i) a statement of the anticipated balance 
                        on the loan for which the borrower is receiving 
                        counseling under this subsection;
                          ``(ii) based on such anticipated balance, the 
                        anticipated monthly payment amount under, at 
                        minimum--
                                  ``(I) the standard repayment plan; 
                                and
                                  ``(II) an income-based repayment plan 
                                under section 466(d) or 493C, as 
                                determined using available percentile 
                                data from the Bureau of Labor 
                                Statistics of the starting salary for 
                                the occupation in which the borrower 
                                has an interest in or intends to be 
                                employed; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under each repayment plan 
                        described in clause (ii), based on the average 
                        cumulative indebtedness at graduation for 
                        borrowers of loans made under this title who 
                        are in the same program of study as the 
                        borrower.
                  ``(M) For a borrower with an outstanding balance of 
                principal or interest due on a loan made under this 
                title--
                          ``(i) a current statement of the amount of 
                        such outstanding balance and interest accrued;
                          ``(ii) based on such outstanding balance, the 
                        anticipated monthly payment amount under the 
                        standard repayment plan, and the income-based 
                        repayment plan under section 466(d) or 493C, as 
                        determined using available percentile data from 
                        the Bureau of Labor Statistics of the starting 
                        salary for the occupation the borrower intends 
                        to be employed; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under each repayment plan 
                        described in clause (ii), based on--
                                  ``(I) the outstanding balance 
                                described in clause (i);
                                  ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                student is receiving counseling under 
                                this subsection; and
                                  ``(III) a projection for any other 
                                loans made under this title that the 
                                borrower is reasonably expected to 
                                accept during the borrower's program of 
                                study based on at least the expected 
                                increase in the cost of attendance of 
                                such program.
                  ``(N) The obligation of the borrower to repay the 
                full amount of the loan, regardless of whether the 
                borrower completes or does not complete the program in 
                which the borrower is enrolled within the regular time 
                for program completion.
                  ``(O) The likely consequences of default on the loan, 
                including adverse credit reports, delinquent debt 
                collection procedures under Federal law, and 
                litigation, and a notice of the institution's most 
                recent loan repayment rate (as defined in section 481B) 
                for the educational program in which the borrower is 
                enrolled, an explanation of the loan repayment rate, 
                and the most recent national average loan repayment 
                rate for an educational program.
                  ``(P) Information on the National Student Loan Data 
                System and how the borrower can access the borrower's 
                records.
                  ``(Q) The contact information for the institution's 
                financial aid office or other appropriate office at the 
                institution the borrower may contact if the borrower 
                has any questions about the borrower's rights and 
                responsibilities or the terms and conditions of the 
                loan.
          ``(5) Borrowers receiving federal direct plus loans for 
        dependent students or federal one parent loans.--The 
        information to be provided under paragraph (1) to a borrower of 
        a Federal Direct PLUS Loan for a dependent student or a Federal 
        ONE Parent Loan shall include the following:
                  ``(A) The information described in subparagraphs (A) 
                through (C) and (N) through (Q) of paragraph (4).
                  ``(B) An explanation of the treatment of the loan and 
                private education loans in bankruptcy.
                  ``(C) Information on the annual and aggregate loan 
                limits.
                  ``(D) Information on the annual percentage rate of 
                the loan.
                  ``(E) The option of the borrower to pay the interest 
                on the loan while the loan is in deferment.
                  ``(F) For a first-time borrower of a loan or a 
                borrower of a loan under this title who owes no 
                principal or interest on such loan--
                          ``(i) a statement of the anticipated balance 
                        on the loan for which the borrower is receiving 
                        counseling under this subsection;
                          ``(ii) based on such anticipated balance, the 
                        anticipated monthly payment amount under the 
                        standard repayment plan; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under the standard repayment 
                        plan, based on the average cumulative 
                        indebtedness of other borrowers of loans made 
                        under this title on behalf of dependent 
                        students who are in the same program of study 
                        as the student on whose behalf the borrower 
                        borrowed the loan.
                  ``(G) For a borrower with an outstanding balance of 
                principal or interest due on such loan--
                          ``(i) a statement of the amount of such 
                        outstanding balance;
                          ``(ii) based on such outstanding balance, the 
                        anticipated monthly payment amount under the 
                        standard repayment plan; and
                          ``(iii) an estimate of the projected monthly 
                        payment amount under the standard repayment 
                        plan, based on--
                                  ``(I) the outstanding balance 
                                described in clause (i);
                                  ``(II) the anticipated outstanding 
                                balance on the loan for which the 
                                borrower is receiving counseling under 
                                this subsection; and
                                  ``(III) a projection for any other 
                                Federal Direct PLUS Loan made on behalf 
                                of the dependent student or Federal ONE 
                                Parent Loan that the borrower is 
                                reasonably expected to accept during 
                                the program of study of such student 
                                based on at least the expected increase 
                                in the cost of attendance of such 
                                program.
                  ``(H) Debt management strategies that are designed to 
                facilitate the repayment of such indebtedness.
                  ``(I) An explanation that the borrower has the 
                options to prepay each loan, pay each loan on a shorter 
                schedule, and change repayment plans.
                  ``(J) For each Federal Direct PLUS Loan and each 
                Federal ONE Parent Loan for which the borrower is 
                receiving counseling under this subsection, the contact 
                information for the loan servicer of the loan and a 
                link to such servicer's Website.
          ``(6) Annual loan acceptance.--Prior to making the first 
        disbursement of a loan made under this title (other than a 
        Federal Direct Consolidation Loan or Federal ONE Consolidation 
        Loan) to a borrower for an award year, an eligible institution, 
        shall, as part of carrying out the counseling requirements of 
        this subsection for the loan, ensure that after receiving the 
        applicable counseling under paragraphs (2), (4), and (5) for 
        the loan the borrower accepts the loan for such award year by--
                  ``(A) signing the master promissory note for the 
                loan;
                  ``(B) signing and returning to the institution a 
                separate written statement that affirmatively states 
                that the borrower accepts the loan; or
                  ``(C) electronically signing an electronic version of 
                the statement described in subparagraph (B).
          ``(7) Prohibition.--An institution of higher education may 
        not counsel a borrower of a loan under this title to divorce or 
        separate and live apart from one another for the purpose of 
        qualifying for, or obtaining an increased amount of, Federal 
        financial assistance under this Act.
          ``(8) Construction.--Nothing in this section shall be 
        construed to prohibit an eligible institution from providing 
        additional information and counseling services to recipients of 
        Federal student aid under this title.''.
  (i) Online Counseling Tools.--Section 485 (20 U.S.C. 1092) is further 
amended by adding at the end the following:
  ``(n) Online Counseling Tools.--
          ``(1) In general.--Beginning not later than 1 year after the 
        date of enactment of the PROSPER Act, the Secretary shall 
        maintain--
                  ``(A) an online counseling tool that provides the 
                exit counseling required under subsection (b) and meets 
                the applicable requirements of this subsection; and
                  ``(B) an online counseling tool that provides the 
                annual counseling required under subsection (l) and 
                meets the applicable requirements of this subsection.
          ``(2) Requirements of tools.--In maintaining the online 
        counseling tools described in paragraph (1), the Secretary 
        shall ensure that each such tool is--
                  ``(A) consumer tested to ensure that the tool is 
                effective in helping individuals understand their 
                rights and obligations with respect to borrowing a loan 
                made this title or receiving a Federal Pell Grant;
                  ``(B) understandable to students receiving Federal 
                Pell Grants and borrowers of loans made this title; and
                  ``(C) freely available to all eligible institutions.
          ``(3) Record of counseling completion.--The Secretary shall--
                  ``(A) use each online counseling tool described in 
                paragraph (1) to keep a record of which individuals 
                have received counseling using the tool, and notify the 
                applicable institutions of the individual's completion 
                of such counseling;
                  ``(B) in the case of a borrower who receives annual 
                counseling for a loan made under this title using the 
                tool described in paragraph (1)(B), notify the borrower 
                by when the borrower should accept, in a manner 
                described in subsection (l)(6), the loan for which the 
                borrower has received such counseling; and
                  ``(C) in the case of a borrower described in 
                subsection (b)(1)(B) at an institution that uses the 
                online counseling tool described in paragraph (1)(A) of 
                this subsection, the Secretary shall attempt to provide 
                the information described in subsection (b)(1)(A) to 
                the borrower through such tool.''.
  (j) Preventing Hazing on Campus.--Section 485 (20 U.S.C. 1092) is 
further amended by adding at the end the following:
  ``(o) Preventing Hazing on Campus.--
          ``(1) Sense of congress.--It is the Sense of Congress that--
                  ``(A) institutions of higher education should have 
                clear policies that prohibit unsafe practices, such as 
                hazing, on campus;
                  ``(B) institutions of higher education should ensure 
                each student organization understands what is 
                considered an unsafe practice;
                  ``(C) student organizations on campus should ensure 
                their policies and activities do not endanger students 
                safety or cause harm to students;
                  ``(D) administrators and faculty should take 
                seriously any threats or acts of harm to students 
                through activities organized by student organizations 
                and act quickly to prevent any potential harm to 
                students by these groups;
                  ``(E) institutions of higher education should ensure 
                law enforcement has access to investigate any crimes 
                committed by student organizations without obstruction 
                from the students, student organization, 
                administrators, or faculty; and
                  ``(F) hazing is a dangerous practice and should not 
                be allowed on any campus.
          ``(2) Disclosure of policies.--Each institution of higher 
        education participating in any program under this title shall 
        ensure that--
                  ``(A) all policies and required procedures related to 
                hazing are clearly posted for students, faculty, and 
                administrators; and
                  ``(B) all student organizations are aware of--
                          ``(i) the policies described in subparagraph 
                        (A), including all prohibited activities; and
                          ``(ii) the dangers of hazing.
          ``(3) Hazing defined.--In this subsection, the term `hazing' 
        means any intentional, knowing, or reckless act committed by a 
        student, or a former student, of an institution of higher 
        education, whether individually or with other persons, against 
        another student, that--
                  ``(A) was committed in connection with an initiation 
                into, an affiliation with, or the maintenance of 
                membership in, any organization that is affiliated with 
                such institution of higher education; and
                  ``(B)(i) contributes to a substantial risk of 
                physical injury, mental harm, or personal degradation; 
                or
                  ``(ii) causes physical injury, mental harm or 
                personal degradation.''.

SEC. 489. EARLY AWARENESS OF FINANCIAL AID ELIGIBILITY.

  Section 485E (20 U.S.C. 1092f) is amended--
          (1) in subsection (b)--
                  (A) in paragraph (2)--
                          (i) strike ``The Secretary,'' and insert ``To 
                        improve the financial and economic literacy of 
                        students and parents of students in order to 
                        make informed decisions with respect to 
                        financing postsecondary education, the 
                        Secretary,'';
                          (ii) by striking ``junior year'' and 
                        inserting ``sophomore year'';
                          (iii) by striking ``The Secretary shall 
                        ensure that'' and inserting ``The Secretary 
                        shall--
                  ``(A) ensure that''; and
                          (iv) by adding at the end the following:
                  ``(B) create an online platform--
                          ``(i) for States, institutions of higher 
                        education, other organizations involved in 
                        college access and student financial aid, 
                        secondary schools, and programs under this 
                        title that serve secondary school students to 
                        share best practices on disseminating 
                        information under this section; and
                          ``(ii) on which the Secretary shall 
                        annually--
                                  ``(I) summarize such best practices; 
                                and
                                  ``(II) describe the notification and 
                                dissemination activities carried out 
                                under this section.''.
                  (B) in paragraph (4)--
                          (i) in the first sentence--
                                  (I) by striking ``Not later than two 
                                years after the date of enactment of 
                                the Higher Education Opportunity Act, 
                                the'' and inserting ``The''; and
                                  (II) by inserting ``continue to'' 
                                before ``implement''; and
                          (ii) in the second sentence, by striking 
                        ``the Internet'' and inserting ``the Internet, 
                        including through social media''; and
          (2) by adding at the end the following:
  `` (c) Online Estimator Tool.--
          ``(1) In general.--Not later than 1 year after the date of 
        enactment of the PROSPER Act, the Secretary, in consultation 
        with States, institutions of higher education, and other 
        individuals with experience or expertise in student financial 
        assistance application processes, shall develop an early 
        estimator tool to be available online and through a mobile 
        application, which--
                  ``(A) allows an individual to--
                          ``(i) enter basic financial and other 
                        relevant information; and
                          ``(ii) on the basis of such information, 
                        receive non-binding estimates of potential 
                        Federal grant, loan, or work study assistance 
                        under this title for which a student may be 
                        eligible upon completion of an application form 
                        under section 483(a);
                  ``(B) with respect to each institution of higher 
                education that participates in a program under this 
                title selected by an individual for purposes of the 
                estimator tool, provides the individual with the net 
                price (as defined in section 132) for the income 
                category described in paragraph (2) that is determined 
                on the basis of the information under subparagraph 
                (A)(i) of this paragraph entered by the individual;
                  ``(C) includes a clear and conspicuous disclaimer 
                that the amounts calculated using the estimator tool 
                are estimates based on limited financial information, 
                and that--
                          ``(i) each such estimate--
                                  ``(I) in the case of an estimate 
                                under subparagraph (A), is only an 
                                estimate and does not represent a final 
                                determination, or actual award, of 
                                financial assistance under this title;
                                  ``(II) in the case of an estimate 
                                under subparagraph (B), is only an 
                                estimate and not a guarantee of the 
                                actual amount that a student may be 
                                charged;
                                  ``(III) shall not be binding on the 
                                Secretary or an institution of higher 
                                education; and
                                  ``(IV) may change; and
                          ``(ii) a student must complete an application 
                        form under section 483(a) in order to be 
                        eligible for, and receive, an actual financial 
                        aid award that includes Federal grant, loan, or 
                        work study assistance under this title; and
                  ``(D) includes a clear and conspicuous explanation of 
                the differences between a grant and a loan, and that an 
                individual will be required to repay any loan borrowed 
                by the individual.
          ``(2) Income categories.--The income categories for purposes 
        of paragraph (1)(B) are as follows:
                  ``(A) $0 to $30,000.
                  ``(B) $30,001 to $48,000.
                  ``(C) $48,001 to $75,000.
                  ``(D) $75,001 to $110,000.
                  ``(E) $110,001 to $150,000.
                  ``(F) Over $150,000.
          ``(3) Consumer testing.--In developing and maintaining the 
        estimator tool described in paragraph (1), the Secretary shall 
        conduct consumer testing with appropriate persons, including 
        current and prospective college students, family members of 
        such students, and other individuals with expertise in student 
        financial assistance application processes and college access, 
        to ensure that such tool is easily understandable by students 
        and families and effective in communicating early aid 
        eligibility.
          ``(4) Data storage prohibited.--In carrying out this 
        subsection, the Secretary shall not keep, store, or warehouse 
        any data inputted by individuals accessing the tool described 
        in paragraph (1).
  ``(d) Pell Table.--
          ``(1) In general.--The Secretary shall develop, and annually 
        update at the beginning of each award year, the following 
        electronic tables to be utilized in carrying out this section 
        and containing the information described in paragraph (2) of 
        this subsection:
                  ``(A) An electronic table for dependent students.
                  ``(B) An electronic table for independent students 
                with dependents other than a spouse.
                  ``(C) An electronic table for independent students 
                without dependents other than a spouse.
          ``(2) Information.--Each electronic table under paragraph 
        (1), with respect to the category of students to which the 
        table applies for the most recently completed award year for 
        which information is available, and disaggregated in accordance 
        with paragraph (3), shall contain the following information:
                  ``(A) The percentage of undergraduate students 
                attending an institution of higher education on a full-
                time, full-academic year basis who file the financial 
                aid form prescribed under section 483 for the award 
                year and received, for their first academic year during 
                such award year (and not for any additional payment 
                periods after such first academic year), the following:
                          ``(i) A Federal Pell Grant equal to the 
                        maximum amount of a Federal Pell Grant award 
                        determined under section 401(b)(2) for such 
                        award year.
                          ``(ii) A Federal Pell Grant in an amount that 
                        is--
                                  ``(I) less than the maximum amount 
                                described in clause (i); and
                                  ``(II) not less than 3/4 of such 
                                maximum amount for such award year.
                          ``(iii) A Federal Pell Grant in an amount 
                        that is--
                                  ``(I) less than 3/4 of such maximum 
                                amount; and
                                  ``(II) not less than \1/2\ of such 
                                maximum amount for such award year.
                          ``(iv) A Federal Pell Grant in an amount that 
                        is--
                                  ``(I) less than \1/2\ of such maximum 
                                amount; and
                                  ``(II) not less than the minimum 
                                Federal Pell Grant amount determined 
                                under section 401(b)(4) for such award 
                                year.
                  ``(B) The dollar amounts equal to--
                          ``(i) the maximum amount of a Federal Pell 
                        Grant award determined under section 401(b)(2) 
                        for an award year;
                          ``(ii) 3/4 of such maximum amount;
                          ``(iii) \1/2\ of such maximum amount; and
                          ``(iv) the minimum Federal Pell Grant amount 
                        determined under section 401(b)(4) for such 
                        award year.
                  ``(C) A clear and conspicuous notice that--
                          ``(i) the Federal Pell Grant amounts listed 
                        in subparagraph (B) are for a previous award 
                        year, and such amounts and the requirements for 
                        awarding such amounts may be different for 
                        succeeding award years; and
                          ``(ii) the Federal Pell Grant amount for 
                        which a student may be eligible will be 
                        determined based on a number of factors, 
                        including enrollment status, once the student 
                        completes an application form under section 
                        483(a).
                  ``(D) A link to the early estimator tool described in 
                subsection (c) of this section, which includes an 
                explanation that an individual may estimate a student's 
                potential Federal aid eligibility under this title by 
                accessing the estimator on the individual's mobile 
                phone or online.
          ``(3) Income categories.--The information provided under 
        paragraph (2)(A) shall be disaggregated by the following income 
        categories:
                  ``(A) Less than $5,000.
                  ``(B) $5,000 to $9,999.
                  ``(C) $10,000 to $19,999.
                  ``(D) $20,000 to $29,999.
                  ``(E) $30,000 to $39,999.
                  ``(F) $40,000 to $49,999.
                  ``(G) $50,000 to $59,999.
                  ``(H) Greater than $59,999.
  ``(e) Limitation.--The Secretary may not require a State to 
participate in the activities or disseminate the materials described in 
this section.''.

SEC. 490. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

  Section 486 (20 U.S.C. 1093(b)) is repealed.

SEC. 491. CONTENTS OF PROGRAM PARTICIPATION AGREEMENTS.

  (a) Program Participation Agreements.--Section 487(a) (20 U.S.C. 
1094(a)) is amended in the matter before paragraph (1) by striking ``, 
except with respect to a program under subpart 4 of part A''.
  (b) Perkins Conforming Changes.--Section 487(a)(5) (20 U.S.C. 
1094(a)(5)) is amended by striking ``and, in the case of an institution 
participating in a program under part B or part E, to holders of loans 
made to the institution's students under such parts''.
  (c) Certifications to Lenders.--Section 487(a) (20 U.S.C. 1094(a)) is 
amended by striking paragraph (6).
  (d) State Grant Assistance.--Section 487(a)(9) (20 U.S.C. 1094(a)(9)) 
is amended by striking ``in a program under part B or D'' and inserting 
``in a loan program under this title''.
  (e) Opioid Misuse and Substance Abuse Prevention Program.--Section 
487(a)(10) (20 U.S.C. 1094(a)(10)) is amended by inserting ``under 
section 118'' after ``drug abuse prevention program''.
  (f) Repayment Success Plan.--Section 487(a)(14) (20 U.S.C. 
1094(a)(14)) is amended--
          (1) by striking ``under part B or D'' both places it appears 
        and inserting ``a loan program under this title'';
          (2) by striking ``Default Management Plan'' both places it 
        appears and inserting ``Repayment Success Plan''; and
          (3) in subparagraph (C), by striking ``a cohort default rate 
        in excess of 10 percent'' both places it appears and inserting 
        ``any program with a loan repayment rate less than 65 
        percent''.
  (g) Commissions to Third-Party Entities.--Section 487(a)(20) (20 
U.S.C. 1094(a)(20)) is amended--
          (1) by striking ``The institution'' and inserting ``(A) 
        Except as provided in subparagraph (B), the institution''; and
          (2) by adding at the end the following new subparagraph:
          ``(B) An institution described in section 101 may provide 
        payment, based on--
                  ``(i) the amount of tuition generated by the 
                institution from student enrollment, to a third-party 
                entity that provides a set of services to the 
                institution that includes student recruitment services, 
                regardless of whether the third-party entity is 
                affiliated with an institution that provides 
                educational services other than the institution 
                providing such payment, if--
                          ``(I) the third-party entity is not 
                        affiliated with the institution providing such 
                        payment;
                          ``(II) the third-party entity does not make 
                        compensation payments to its employees that 
                        would be prohibited under subparagraph (A) if 
                        such payments were made by the institution;
                          ``(III) the set of services provided to the 
                        institution by the third-party entity include 
                        services in addition to student recruitment 
                        services, and the institution does not pay the 
                        third-party entity solely or separately for 
                        student recruitment services provided by the 
                        third-party entity; and
                          ``(IV) any student recruitment information 
                        available to the third-party entity, including 
                        personally identifiable information, will not 
                        be used by, shared with, or sold to any other 
                        person or entity, including any institution 
                        that is affiliated with the third-party entity, 
                        unless written consent is provided by the 
                        student; and
                  ``(ii) students successfully completing their 
                educational programs, to persons who were engaged in 
                recruiting such students, but solely to the extent that 
                such payments--
                          ``(I) are obligated to be paid, and are 
                        actually paid, only after each student upon 
                        whom such payments are based has successfully 
                        completed his or her educational program; and
                          ``(II) are paid only to employees of the 
                        institution or its parent company, and not to 
                        any other person or outside entity.''.
  (h) Clarification of Proof of Authority to Operate Within a State.--
Section 487(a)(21) (20 U.S.C. 1094(a)(21)) is amended by striking 
``within a State'' and inserting ``within a State in which it maintains 
a physical location''.
  (i) Distribution of Voter Registration Forms.--Section 487(a)(23) (20 
U.S.C. 1094(a)(23)) is amended to read as follows:
          ``(23) The institution, if located in a State to which 
        section 4(b) of the National Voter Registration Act of 1993 (42 
        U.S.C. 1973gg-2(b)) does not apply, will make a good faith 
        effort to distribute, including through electronic 
        transmission, voter registration forms to students enrolled and 
        physically in attendance at the institution.''.
  (j) Prohibiting Copyright Infringement.--Section 487(a)(29) (20 
U.S.C. 1094(a)(29)) is amended to read as follows:
          ``(29) The institution will have a policy prohibiting 
        copyright infringement.''.
  (k) Modifications to Preferred Lender List Requirements.--Section 
487(h)(1) (20 U.S.C. 1094(h)(1)) is amended--
          (1) in subparagraph (A)--
                  (A) in clause (i), by inserting ``and'' after the 
                semicolon;
                  (B) by striking clause (ii); and
                  (C) by redesignating clause (iii) as clause (ii);
          (2) in subparagraph (D), by inserting ``and'' after the 
        semicolon;
          (3) in subparagraph (E), by striking ``; and'' and inserting 
        a period; and
          (4) by striking subparagraphs (C) and (F) and redesignating 
        subparagraphs (D) and (E) as subparagraphs (C) and (D), 
        respectively.
  (l) Elimination of Non-title IV Revenue Requirement.--Section 487 (20 
U.S.C. 1094), is further amended--
          (1) in subsection (a), by striking paragraph (24);
          (2) by striking subsection (d); and
          (3) by redesignating subsections (e) through (j) as 
        subsections (d) through (i), respectively.
  (m) Conforming Amendments.--The Higher Education Act of 1965 (20 
U.S.C. 1001 et seq.) is amended--
          (1) in section 487(a) (20 U.S.C. 1094(a)), as amended by this 
        section--
                  (A) by redesignating paragraphs (7) through (23), as 
                paragraphs (6) through (22), respectively; and
                  (C) by redesignating paragraphs (25) through (29) as 
                paragraphs (23) through (27), respectively;
          (2) in section 487(c)(1)(A)(iii) (20 U.S.C. 
        1094(c)(1)(A)(iii)), by striking ``section 102(a)(1)(C)'' and 
        inserting ``section 102(a)(1)''; and
          (3) in section 487(h)(4) (20 U.S.C. 1094(h)(4)), as 
        redesignated by subsection (l)(3), by striking ``section 102'' 
        and inserting ``section 101 or 102''.

SEC. 492. REGULATORY RELIEF AND IMPROVEMENT.

  Section 487A (20 U.S.C. 1094a) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1), by striking ``The Secretary is 
                authorized to'' and inserting ``The Secretary shall''; 
                and
                  (B) in paragraph (5), by inserting ``at least once 
                every two years'' before the period at the end; and
          (2) in subsection (b)--
                  (A) in paragraph (2)--
                          (i) in the paragraph heading, by inserting 
                        ``Annual'' before ``Report''; and
                          (ii) by striking the first sentence and 
                        inserting ``The Secretary shall review the 
                        experience, and rigorously evaluate the 
                        activities, of all institutions participating 
                        as experimental sites and shall, on an annual 
                        basis, submit a report based on the review and 
                        evaluation findings to the authorizing 
                        committees.'';
                  (B) in paragraph (3), by amending subparagraph (A) to 
                read as follows:
                  ``(A) In general.--
                          ``(i) Experimental sites.--The Secretary is 
                        authorized periodically to select a limited 
                        number of institutions for voluntary 
                        participation as experimental sites to provide 
                        recommendations to the Secretary and to the 
                        Congress on the impact and effectiveness of 
                        proposed regulations or new management 
                        initiatives.
                          ``(ii) Congressional notice and comments 
                        required.--
                                  ``(I) Notice.--Prior to announcing a 
                                new experimental site and inviting 
                                institutions to participate, the 
                                Secretary shall provide to the 
                                authorizing committees a notice that 
                                shall include--
                                          ``(aa) a description of the 
                                        proposed experiment and 
                                        rationale for the proposed 
                                        experiment; and
                                          ``(bb) a list of the 
                                        institutional requirements the 
                                        Secretary expects to waive and 
                                        the legal authority for such 
                                        waivers.
                                  ``(II) Congressional comments.--The 
                                Secretary shall not proceed with 
                                announcing a new experimental site and 
                                inviting institutions to participate 
                                until 10 days after the Secretary--
                                          ``(aa) receives and addresses 
                                        all comments from the 
                                        authorizing committees; and
                                          ``(bb) responds to such 
                                        committees in writing with an 
                                        explanation of how such 
                                        comments have been addressed.
                          ``(iii) Prohibition.--The Secretary is not 
                        authorized to carry out clause (i) in any year 
                        in which an annual report described in 
                        paragraph (2) relating to the previous year is 
                        not submitted to the authorizing committees.'';
                  (C) in paragraph (4)(A), by striking ``biennial'' and 
                inserting ``annual''; and
                  (D) by striking paragraph (1) and redesignating 
                paragraphs (2) through (4) as paragraphs (1) through 
                (3), respectively.

SEC. 493. TRANSFER OF ALLOTMENTS.

  Section 488 (20 U.S.C. 1095) is amended--
          (1) by inserting ``, as in effect on the day before the date 
        of enactment of the PROSPER Act,'' after ``section 462''; and
          (2) by inserting ``, as in effect on the day before the date 
        of enactment of the PROSPER Act,'' after ``or 462''.

SEC. 494. ADMINISTRATIVE EXPENSES.

  Section 489(a) (20 U.S.C. 1096(a)) is amended--
          (1) in the second sentence--
                  (A) by striking ``subpart 3 of part A or part C,'' 
                and inserting ``part C'' ; and
                  (B) by striking ``or under part E of this title''; 
                and
          (2) in the third sentence--
                  (A) by striking ``its grants to students under 
                subpart 3 of part A,''; and
                  (B) by striking ``, and the principal amount of loans 
                made during such fiscal year from its student loan fund 
                established under part E, excluding the principal 
                amount of any such loans which the institution has 
                referred under section 463(a)(4)(B)''.

SEC. 494A. REPEAL OF ADVISORY COMMITTEE.

  Section 491 (20 U.S.C. 1098) is repealed.

SEC. 494B. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

  Section 492 (20 U.S.C. 1098a) is amended--
          (1) by redesignating subsections (c) and (d) as subsections 
        (f) and (g), respectively; and
          (2) by striking subsections (a) and (b) and inserting the 
        following:
  ``(a) In General.--The Secretary may, in accordance with this 
section, issue such regulations as are reasonably necessary to ensure 
compliance with this title.
  ``(b) Public Involvement.--The Secretary shall obtain public 
involvement in the development of proposed regulations for this title. 
Before carrying out a negotiated rulemaking process as described in 
subsection (d) or publishing in the Federal Register proposed 
regulations to carry out this title, the Secretary shall obtain advice 
and recommendations from individuals, and representatives of groups, 
involved in student financial assistance programs under this title, 
such as students, institutions of higher education, financial aid 
administrators, accrediting agencies or associations, State student 
grant agencies, guaranty agencies, lenders, secondary markets, loan 
servicers, guaranty agency servicers, and collection agencies.
  ``(c) Meetings and Electronic Exchange.--
          ``(1) In general.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information concerning 
        the implementation of this title through such mechanisms as 
        regional meetings and electronic exchanges of information. Such 
        regional meetings and electronic exchanges of information shall 
        be public and notice of such meetings and exchanges shall be 
        provided to--
                  ``(A) the authorizing committees at least 10 days 
                prior to the notice to interested stakeholders and the 
                public described in subparagraph (B); and
                  ``(B) interested stakeholders and the public at least 
                30 days prior to such meetings and exchanges.
          ``(2) Consideration.--The Secretary shall take into account 
        the information received through such mechanisms in the 
        development of proposed regulations and shall publish a summary 
        of such information in the Federal Register prior to beginning 
        the negotiated rulemaking process described in subsection (d).
  ``(d) Negotiated Rulemaking Process.--
          ``(1) Negotiated rulemaking required.--All regulations 
        pertaining to this title that are promulgated after the date of 
        the enactment of this paragraph shall be subject to the 
        negotiated rulemaking process described in this subsection 
        (including the selection of the issues to be negotiated), 
        unless the Secretary--
                  ``(A) determines that applying such a requirement 
                with respect to given regulations is impracticable, 
                unnecessary, or contrary to the public interest (within 
                the meaning of section 553(b)(3)(B) of title 5, United 
                States Code);
                  ``(B) publishes the basis for such determination in 
                the Federal Register at the same time as the proposed 
                regulations in question are first published; and
                  ``(C) includes the basis for such determination in 
                the congressional notice under subsection (e)(1).
          ``(2) Congressional notice and comments required.--
                  ``(A) Notice.--The Secretary shall provide 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 notice of 
                the intent establish a negotiated rulemaking committee 
                that shall include--
                          ``(i) the need to issue regulations;
                          ``(ii) the statutory and legal authority of 
                        the Secretary to regulate the issue;
                          ``(iii) the summary of public comments 
                        described in paragraph (2) of subsection (c);
                          ``(iv) the anticipated burden, including the 
                        time, cost, and paperwork burden, the 
                        regulations will have on institutions of higher 
                        education and other entities that may be 
                        impacted by the regulations; and
                          ``(v) any regulations that will be repealed 
                        when the new regulations are issued.
                  ``(B) Congressional comments.--The Secretary shall 
                not proceed with the negotiated rulemaking process--
                          ``(i) until 10 days after the Secretary--
                                  ``(I) receives and addresses all 
                                comments from the authorizing 
                                committees; and
                                  ``(II) responds to the authorizing 
                                committees in writing with an 
                                explanation of how such comments have 
                                been addressed; or
                          ``(ii) until 60 days after providing the 
                        notice required under subparagraph (A) if the 
                        Secretary has not received comments under 
                        clause (i).
          ``(3) Process.--After obtaining advice and recommendations 
        under subsections (b) and (c), and before publishing proposed 
        regulations, the Secretary shall--
                  ``(A) establish a negotiated rulemaking process;
                  ``(B) select individuals to participate in such 
                process--
                          ``(i) from among individuals or groups that 
                        provided advice and recommendations under 
                        subsections (b) and (c), including--
                                  ``(I) representatives of such groups 
                                from Washington, D.C.; and
                                  ``(II) other industry participants; 
                                and
                          ``(ii) with demonstrated expertise or 
                        experience in the relevant subjects under 
                        negotiation, reflecting the diversity in the 
                        industry, representing both large and small 
                        participants, as well as individuals serving 
                        local areas and national markets;
                  ``(C) prepare a draft of proposed policy options, 
                which shall take into account comments received from 
                both the public and the authorizing committees, that 
                shall be provided to the individuals selected by the 
                Secretary under subparagraph (B) and such authorizing 
                committees not less than 15 days before the first 
                meeting under such process; and
                  ``(D) ensure that the negotiation process is 
                conducted in a timely manner in order that the final 
                regulations may be issued by the Secretary within the 
                360-day period described in section 437(e) of the 
                General Education Provisions Act (20 U.S.C. 1232(e)).
          ``(4) Agreements and records.--
                  ``(A) Agreements.--All published proposed regulations 
                developed through the negotiation process under this 
                subsection shall conform to all agreements resulting 
                from such process unless the Secretary reopens the 
                negotiated rulemaking process.
                  ``(B) Records.--The Secretary shall ensure that a 
                clear and reliable record is maintained of agreements 
                reached during a negotiation process under this 
                subsection.
  ``(e) Proposed Rulemaking.--If the Secretary determines pursuant to 
subsection (d)(1) that a negotiated rulemaking process is 
impracticable, unnecessary, or contrary to the public interest (within 
the meaning of section 553(b)(3)(B) of title 5, United States Code), or 
the individuals selected to participate in the process under subsection 
(d)(3)(B) fail to reach unanimous agreement on an issue being 
negotiated, the Secretary may propose regulations subject to subsection 
(f).
  ``(f) Requirements for Proposed Regulations.--Regulations proposed 
pursuant to subsection (e) shall meet the following procedural 
requirements:
          ``(1) Congressional notice.--Regardless of whether 
        congressional notice was submitted under subsection (d)(2), the 
        Secretary shall provide 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 notice 
        that shall include--
                  ``(A) a copy of the proposed regulations;
                  ``(B) the need to issue regulations;
                  ``(C) the statutory and legal authority of the 
                Secretary to regulate the issue;
                  ``(D) the anticipated burden, including the time, 
                cost, and paperwork burden, the regulations will have 
                on institutions of higher education and other entities 
                that may be impacted by the regulations; and
                  ``(E) any regulations that will be repealed when the 
                new regulations are issued.
          ``(2) Congressional comments.--The Secretary may not proceed 
        with the rulemaking process--
                  ``(A) until 10 days after the Secretary--
                          ``(i) receives and addresses all comments 
                        from the authorizing committees; and
                          ``(ii) responds to the authorizing committees 
                        in writing with an explanation of how such 
                        comments have been addressed; or
                  ``(B) until 60 days after providing the notice 
                required under paragraph (1) if the Secretary has not 
                received comments under subparagraph (A).
          ``(3) Comment and review period.--The comment and review 
        period for the proposed regulation shall be 90 days unless an 
        emergency requires a shorter period, in which case such period 
        shall be not less than 45 days and the Secretary shall--
                  ``(A) designate the proposed regulation as an 
                emergency, with an explanation of the emergency, in the 
                notice to the Congress under paragraph (1);
                  ``(B) publish the length of the comment and review 
                period in such notice and in the Federal Register; and
                  ``(C) conduct immediately thereafter regional 
                meetings to review such proposed regulation before 
                issuing any final regulation.
          ``(4) Independent assessment.--No regulation shall be made 
        final after the comment and review period until the Secretary 
        has published in the Federal Register an independent assessment 
        (which shall include a representative sampling of institutions 
        of higher education based on sector, enrollment, urban, 
        suburban, or rural character, and other factors impacted by the 
        regulation) of--
                  ``(A) the burden, including the time, cost, and 
                paperwork burden, the final regulation will impose on 
                institutions and other entities that may be impacted by 
                the regulation;
                  ``(B) an explanation of how the entities described in 
                subparagraph (A) may cover the cost of the burden 
                assessed under such subparagraph; and
                  ``(C) the regulation, including a thorough 
                assessment, based on the comments received during the 
                comment and review period under paragraph (3), of 
                whether the rule is financially, operationally, and 
                educationally viable at the institutional level.''.

SEC. 494C. REPORT TO CONGRESS.

  Section 493C (20 U.S.C. 1098e) is amended by adding at the end the 
following:
  ``(f) Report.--
          ``(1) In general.--Not later than 180 days after the date of 
        enactment of the PROSPER Act, the Secretary shall submit to the 
        authorizing committees a report on the efforts of the 
        Department to detect and combat fraud in the income-driven 
        repayment plans described in paragraph (2).
          ``(2) Income driven repayment plans defined.--The income-
        driven repayment plans described in this paragraph are the 
        repayment plans made available under--
                  ``(A) this section;
                  ``(B) subparagraphs (D) and (E) of section 455(d)(1); 
                and
                  ``(C) section 455(e).''.

SEC. 494D. DEFERRAL OF LOAN REPAYMENT FOLLOWING ACTIVE DUTY.

  Section 493D(a) (20 U.S.C. 1098f) is amended, by striking ``or 
464(c)(2)(A)(iii)'' and inserting ``464(c)(2)(A)(iii) (as in effect on 
the day before the date of enactment of the PROSPER Act and pursuant to 
section 461(a)), or 469A(a)(2)(A)(iii)''.

SEC. 494E. CONTRACTS; MATCHING PROGRAM.

  (a) Contracts for Supplies and Services.--
          (1) In general.--Part G of title IV (20 U.S.C. 1088 et seq.), 
        as amended by this part, is further amended by adding at the 
        end the following:

``SEC. 493E. CONTRACTS.

  ``(a) Contracts for Supplies and Services.--
          ``(1) In general.--The Secretary shall, to the extent 
        practicable, award contracts for origination, servicing, and 
        collection described in subsection (b). In awarding such 
        contracts, the Secretary shall ensure that such services and 
        supplies are provided at competitive prices.
          ``(2) Entities.--The entities with which the Secretary may 
        enter into contracts shall include entities qualified to 
        provide such services and supplies and will comply with the 
        procedures applicable to the award of such contracts. In the 
        case of awarding contracts for the origination, servicing, and 
        collection of loans under parts D and E, the Secretary shall 
        enter into contracts with entities that have extensive and 
        relevant experience and demonstrated effectiveness. The 
        entities with which the Secretary may enter into such contracts 
        may include, where practicable, agencies with agreements with 
        the Secretary under sections 428(b) and (c), if such agencies 
        meet the qualifications as determined by the Secretary under 
        this subsection and if those agencies have such experience and 
        demonstrated effectiveness. In awarding contracts to such State 
        agencies, the Secretary shall, to the extent practicable and 
        consistent with the purposes of parts D and E, give 
        consideration to State agencies with a history of high quality 
        performance to perform services for institutions of higher 
        education within their State.
          ``(3) Allocations.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall allocate new borrower loan 
                accounts to entities awarded a contract under this 
                section on the basis of--
                          ``(i) the performance of each such entity 
                        compared to other such entities performing 
                        similar work using common performance metrics 
                        (which may take into account, as appropriate, 
                        portfolio risk factors, including a borrower's 
                        time in repayment, category of institution of 
                        higher education attended, and completion of an 
                        educational program), as determined by the 
                        Secretary; and
                          ``(ii) the capacity of each such entity 
                        compared to other such entities performing 
                        similar work to service new and existing 
                        borrower loan accounts.
                  ``(B) Federal one consolidation loans.--Any borrower 
                who receives a Federal ONE Consolidation Loan may 
                select the entity awarded a contract under this section 
                to service such loan.
          ``(4) Rule of construction.--Nothing in this section shall be 
        construed as a limitation of the authority of any State agency 
        to enter into an agreement for the purposes of this section as 
        a member of a consortium of State agencies.
  ``(b) Contracts for Origination, Servicing, and Data Systems.--The 
Secretary may enter into contracts for--
          ``(1) the servicing and collection of loans made or purchased 
        under part D or E;
          ``(2) the establishment and operation of 1 or more data 
        systems for the maintenance of records on all loans made or 
        purchased under part D or E; and
          ``(3) such other aspects of the direct student loan program 
        under part D or E necessary to ensure the successful operation 
        of the program.
  ``(c) Common Performance Manual.--
          ``(1) Consultation.--Not later than 180 days after the date 
        of enactment of the PROSPER Act and biannually thereafter, the 
        Secretary shall consult (in writing and in person) with 
        entities awarded contracts for loan servicing under section 456 
        (as in effect on the day before the date of enactment of the 
        PROSPER Act) and this section, to the extent practicable, to 
        develop and update as necessary, a guidance manual for entities 
        awarded contracts for loan servicing under this section that 
        provides such entities with best practices to ensure borrowers 
        receive adequate and consistent service from such entities.
          ``(2) Provision of manual.--The Secretary shall provide the 
        most recent guidance manual developed and updated under 
        paragraph (1) to each entity awarded a contract for loan 
        serving under this section.
          ``(3) Annual report.--The Secretary shall provide to the 
        authorizing committees a report, on a annual basis, detailing 
        the consultation required under paragraph (1).
  ``(d) Federal Preemption.--
          ``(1) In general.--Covered activities shall not be subject to 
        any law or other requirement of any State or political 
        subdivision of a State with respect to--
                  ``(A) disclosure requirements;
                  ``(B) requirements or restrictions on the content, 
                time, quantity, or frequency of communications with 
                borrowers, endorsers, or references with respect to 
                such loans; or
                  ``(C) any other requirement relating to the servicing 
                or collection of a loan made under this title.
          ``(2) Servicing and collection.--The requirements of this 
        section with respect to any covered activity shall preempt any 
        law or other requirement of a State or political subdivision of 
        a State to the extent that such law or other requirement would, 
        in the absence of this subsection, apply to such covered 
        activity.
          ``(3) State licenses.--No qualified entity engaged in a 
        covered activity shall be required to obtain a license from, or 
        pay a licensing fee or other assessment to, any State or 
        political subdivision of a State relating to such covered 
        activity.
          ``(4) Definitions.--For purposes of this section:
                  ``(A) The term `covered activity' means any of the 
                following activities, as carried out by a qualified 
                entity:
                          ``(i) Origination of a loan made under this 
                        title.
                          ``(ii) Servicing of a loan made under this 
                        title.
                          ``(iii) Collection of a loan made under this 
                        title.
                          ``(iv) Any other activity related to the 
                        activities described in clauses (i) through 
                        (iii).
                  ``(B) The term `qualified entity' means an 
                organization, other than an institution of higher 
                education--
                          ``(i) that is responsible for the servicing 
                        or collection of a loan made under this title;
                          ``(ii) that has agreement with the Secretary 
                        under subsections (a) and (b) of section 428; 
                        or
                          ``(iii) that is under contract with an entity 
                        described in clause (i) or clause (ii) to 
                        support such entity's responsibilities under 
                        this title.
          ``(5) Limitation.--This subsection shall not have any legal 
        effect on any other preemption provision under Federal law with 
        respect to this title.''.
          (2) Conforming amendment.--Section 456 (20 U.S.C. 1087f) is 
        repealed.
  (b) Matching Program.--Part G of title IV (20 U.S.C. 1088 et seq.), 
as amended by subsection (a), is further amended by adding at the end 
the following:

``SEC. 493F. MATCHING PROGRAM.

  ``(a) In General.--The Secretary of Education and the Secretary of 
Veterans Affairs shall carry out a computer matching program under 
which the Secretary of Education identifies, on at least a quarterly 
basis, borrowers--
          ``(1) who have been assigned a disability rating of 100 
        percent (or a combination of ratings equaling 100 percent or 
        more) by the Secretary of Veterans Affairs for a service-
        connected disability (as defined in section 101 of title 38, 
        United States Code); or
          ``(2) who have been determined by the Secretary of Veterans 
        Affairs to be unemployable due to a service-connected 
        condition, as described in section 437(a)(2).
  ``(b) Borrower Notification.--With respect to each borrower who is 
identified under subsection (a), the Secretary shall, as soon as 
practicable after such identification--
          ``(1) notify the borrower of the borrower's eligibility for 
        loan discharge under section 437(a); and
          ``(2) provide the borrower with simple instructions on how to 
        apply for such loan discharge, including an explanation that 
        the borrower shall not be required to provide any documentation 
        of the borrower's disability rating to receive such discharge.
  ``(c) Data Collection and Report to Congress.--
          ``(1) In general.--The Secretary shall annually collect and 
        submit to the Committees on Education and the Workforce and 
        Veterans' Affairs of the House of Representatives and the 
        Committees on Health, Education, Labor, and Pensions and 
        Veterans Affairs of the Senate, data about borrowers applying 
        for and receiving loan discharges under section 437(a), which 
        shall be disaggregated in the manner described in paragraph (2) 
        and include the following:
                  ``(A) The number of applications received under 
                section 437(a).
                  ``(B) The number of such applications that were 
                approved.
                  ``(C) The number of loan discharges that were 
                completed under section 437(a).
          ``(2) Disaggregation.--The data collected under paragraph (1) 
        shall be disaggregated--
                  ``(A) by borrowers who applied under this section for 
                loan discharges under section 437(a);
                  ``(B) by borrowers who received loan discharges as a 
                result of applying for such discharges under this 
                section;
                  ``(C) by borrowers who applied for loan discharges 
                under section 437(a)(2); and
                  ``(D) by borrowers who received loan discharges as a 
                result of applying for such discharges under section 
                437(a)(2).
  ``(d) Notification to Borrowers.--The Secretary shall notify each 
borrower whose liability on a loan has been discharged under section 
437(a) that the liability on the loan has been so discharged.''.

                       PART H--PROGRAM INTEGRITY

SEC. 495. REPEAL OF AND PROHIBITION ON STATE AUTHORIZATION REGULATIONS.

  (a) Regulations Repealed.--The following regulations relating to 
State authorization (including any supplements or revisions to such 
regulations) are repealed and shall have no force or effect:
          (1) The final regulations published by the Department of 
        Education in the Federal Register on October 29, 2010 (75 Fed. 
        Reg. 66832 et seq.).
          (2) The final regulations published by the Department of 
        Education in the Federal Register on December 19, 2016 (81 Fed. 
        Reg. 92232 et seq).
  (b) Prohibition on State Authorization Regulations.--The Secretary of 
Education shall not, on or after the date of enactment of this Act, 
promulgate or enforce any regulation or rule with respect to the State 
authorization for institutions of higher education to operate within a 
State for any purpose under the Higher Education Act of 1965 (20 U.S.C. 
1001 et seq.).
  (c) Institutional Responsibility; Treatment of Religious 
Institutions.--Section 495 (20 U.S.C. 1099a) is amended by striking 
subsection (b) and inserting the following:
  ``(b) Institutional Responsibility.--Each institution of higher 
education shall provide evidence to the Secretary that the institution 
has authority to operate within each State in which it maintains a 
physical location at the time the institution is certified under 
subpart 3.
  ``(c) Treatment of Religious Institutions.--An institution shall be 
treated as legally authorized to operate educational programs beyond 
secondary education in a State under section 101(a)(2) if the 
institution is--
          ``(1) recognized as a religious institution by the State; and
          ``(2) because of the institution's status as a religious 
        institution, exempt from any provision of State law that 
        requires institutions to be authorized by the State to operate 
        educational programs beyond secondary education.''.

SEC. 496. RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION.

  Section 496 (20 U.S.C. 1099b) is amended--
          (1) in subsection (j), by striking ``section 102'' and 
        inserting ``section 101'';
          (2) in subsection (a)--
                  (A) in paragraph (2), by amending subparagraph (A) to 
                read as follows:
                  ``(A) for the purpose of participation in programs 
                under this Act or other programs administered by the 
                Department of Education or other Federal agencies, has 
                a voluntary membership of institutions of higher 
                education or other entities and has as a principal 
                purpose the accrediting of institutions of higher 
                education or programs;'';
                  (B) in paragraph (3)--
                          (i) in subparagraph (A)--
                                  (I) by striking ``subparagraph 
                                (A)(i)'' and inserting ``subparagraph 
                                (A) or (C)'';
                                  (II) by striking ``separate'' and 
                                inserting ``separately incorporated''; 
                                and
                                  (III) by adding ``or'' at the end;
                          (ii) by striking ``or'' at the end of 
                        subparagraph (B); and
                          (iii) by striking subparagraph (C);
                  (C) in paragraph (4)--
                          (i) in subparagraph (A)--
                                  (I) by inserting ``as defined by the 
                                institution'' after ``stated mission of 
                                the institution of higher education'';
                                  (II) by striking ``, including 
                                distance education or correspondence 
                                courses or programs,''; and
                                  (III) by striking ``and'' at the end;
                          (ii) by striking subparagraph (B) and 
                        inserting the following:
                  ``(B) such agency or association demonstrates the 
                ability to review, evaluate, and assess the quality of 
                any instruction delivery model or method such agency or 
                association has or seeks to include within its scope of 
                recognition, without giving preference to or 
                differentially treating a particular instruction 
                delivery model or method offered by an institution of 
                higher education or program except that, in a case in 
                which the instruction delivery model allows for the 
                separation of the student from the instructor--
                          ``(i) the agency or association requires the 
                        institution to have processes through which the 
                        institution establishes that the student who 
                        registers in a course or program is the same 
                        student who participates in, including, to the 
                        extent practicable, testing or other 
                        assessment, and completes the program and 
                        receives the academic credit; and
                          ``(ii) the agency or association requires 
                        that any process used by an institution to 
                        comply with the requirement under clause (i) 
                        does not infringe upon student privacy and is 
                        implemented in a manner that is minimally 
                        burdensome to the student; and
                  ``(C) if such an agency or association evaluates or 
                assesses the quality of competency-based education 
                programs, the agency's or association's evaluation or 
                assessment --
                          ``(i) shall address effectively the quality 
                        of an institution's competency-based education 
                        programs as set forth in paragraph (5), except 
                        that the agency or association is not required 
                        to have separate standards, procedures, or 
                        policies for the evaluation of competency-based 
                        education;
                          ``(ii) shall establish whether an institution 
                        has demonstrated that its program satisfies the 
                        definitions in section 103(25); and
                          ``(iii) shall establish whether an 
                        institution has demonstrated that it has 
                        defined an academic year for a competency-based 
                        program in accordance with section 
                        481(a)(3).'';
                  (D) by amending paragraph (5) to read as follows:
          ``(5) the standards for accreditation of the agency or 
        association assess the institution's success with respect to 
        student learning and educational outcomes in relation to the 
        institution's mission, which may include different standards 
        for different institutions or programs, except that the 
        standards shall include consideration of student learning and 
        educational outcomes in relation to expected measures of 
        student learning and educational outcomes, which at the 
        agency's or association's discretion are established--
                  ``(A) by the agency or association; or
                  ``(B) by the institution or program, at the 
                institution or program level, as the case may be, if 
                the institution or program--
                          ``(i) defines expected student learning goals 
                        and educational outcomes;
                          ``(ii) measures and evaluates student 
                        learning, educational outcomes, and, if 
                        appropriate, other outcomes of the students who 
                        complete their program of study;
                          ``(iii) uses information about student 
                        learning, educational outcomes, and, if 
                        appropriate, other outcomes, to improve the 
                        institution or program; and
                          ``(iv) makes such information available to 
                        appropriate constituencies;''; and
                  (E) in paragraph (8), by striking ``, upon 
                request,'';
          (3) in subsection (b)--
                  (A) in the subsection heading, by striking 
                ``Separate'' and inserting ``Separately Incorporated'';
                  (B) in the matter preceding paragraph (1), by 
                striking ``separate'' and inserting ``separately 
                incorporated'';
                  (C) in paragraph (2), by inserting ``who shall 
                represent business'' after ``one such public member''; 
                and
                  (D) in paragraph (4), by inserting before the period 
                at the end ``and is maintained separately from any such 
                entity or organization'';
          (4) in subsection (c)--
                  (A) in paragraph (1)--
                          (i) by inserting ``(which may vary based on 
                        institutional risk consistent with policies 
                        promulgated by the agency or association to 
                        determine such risk and interval frequency as 
                        allowed under subsection (p))'' after 
                        ``intervals''; and
                          (ii) by striking ``distance education'' and 
                        inserting ``competency-based education'';
                  (B) by striking paragraph (5) and redesignating 
                paragraphs (2), (3), and (4) as paragraphs (3), (4), 
                and (5), respectively;
                  (C) by inserting after paragraph (1), the following:
          ``(2) develops a mechanism to identify institutions or 
        programs accredited by the agency or association that may be 
        experiencing difficulties accomplishing their missions with 
        respect to the student learning and educational outcome goals 
        established under subsection (a)(5) and--
                  ``(A) as appropriate, uses information such as 
                student loan default or repayment rates, retention or 
                graduation rates, evidence of student learning, 
                financial data, and other indicators to identify such 
                institutions;
                  ``(B) not less than annually, evaluates the extent to 
                which those identified institutions or programs 
                continue to be in compliance with the agency or 
                association's standards; and
                  ``(C) as appropriate, requires the institution or 
                program to address deficiencies and ensure that any 
                plan to address and remedy deficiencies is successfully 
                implemented.'';
                  (D) in paragraph (4)(A), as so redesignated, by 
                striking ``487(f)'' and inserting ``487(e)'';
                  (E) by amending paragraph (5), as so redesignated, to 
                read as follows:
          ``(5) establishes and applies or maintains policies which 
        ensure that any substantive change to the educational mission, 
        program, or programs of an institution after the agency or 
        association has granted the institution accreditation or 
        preaccreditation status does not adversely affect the capacity 
        of the institution to continue to meet the agency's or 
        association's standards for such accreditation or 
        preaccreditation status, which shall include policies that--
                  ``(A) require the institution to obtain the agency's 
                or association's approval of the substantive change 
                before the agency or association includes the change in 
                the scope of the institution's accreditation or 
                preaccreditation status; and
                  ``(B) define substantive change to include, at a 
                minimum--
                          ``(i) any change in the established mission 
                        or objectives of the institution;
                          ``(ii) any change in the legal status, form 
                        of control, or ownership of the institution;
                          ``(iii) the addition of courses, programs of 
                        instruction, training, or study, or credentials 
                        or degrees that represent a significant 
                        departure from the courses, programs, or 
                        credentials or degrees that were offered at 
                        time the agency or association last evaluated 
                        the institution; or
                          ``(iv) the entering into a contract under 
                        which an institution or organization not 
                        certified to participate programs under title 
                        IV provides a portion of an accredited 
                        institution's educational program that is 
                        greater than 25 percent;'';
                  (F) in paragraph (7)--
                          (i) in the matter preceding subparagraph (A), 
                        by inserting ``, on the agency's or 
                        association's website,'' after ``public'';
                          (ii) in subparagraph (C), by inserting before 
                        the semicolon at the end the following: ``, and 
                        a summary of why such action was taken or such 
                        placement was made'';
                  (G) in paragraph (8), by striking ``and'' at the end;
                  (H) in paragraph (9), by striking the period at the 
                end and inserting a semicolon;
                  (I) by adding at the end the following:
          ``(10) makes publicly available, on the agency or 
        association's website, a list of the institutions of higher 
        education accredited by such agency or association, which 
        includes, with respect to each institution on the list---
                  ``(A) the year accreditation was granted;
                  ``(B) the most recent date of a comprehensive 
                evaluation of the institution under paragraph (1); and
                  ``(C) the anticipated date of the next such 
                evaluation; and
          ``(11) confirms, as a part of the agency's or association's 
        review for accreditation or reaccreditation, that the 
        institution's website includes consumer information described 
        section paragraphs (1) and (2) of section 132(d).'';
          (5) in subsection (e)--
                  (A) by striking ``The Secretary'' and inserting the 
                following:
          ``(1) In general.--Subject to paragraph (2), the Secretary''; 
        and
                  (B) by adding at the end the following:
          ``(2) Exception.--Paragraph (1) shall not apply in the case 
        of an institution described in subsection (j).''.
          (6) by striking subsection (h) and inserting the following:
  ``(h) Change of Accrediting Agency or Association.--
          ``(1) In general.--The Secretary shall not recognize the 
        accreditation of any otherwise eligible institution of higher 
        education if the institution is in the process of changing its 
        accrediting agency or association and is subject to one or more 
        of the following actions, unless the eligible institution 
        submits to the Secretary materials demonstrating a reasonable 
        cause for changing the accrediting agency or association:
                  ``(A) A pending or final action brought by a State 
                agency to suspend, revoke, withdraw, or terminate the 
                institution's legal authority to provide postsecondary 
                education in the State.
                  ``(B) A decision by a recognized accrediting agency 
                or association to deny accreditation or 
                preaccreditation to the institution.
                  ``(C) A pending or final action brought by a 
                recognized accrediting agency or association to 
                suspend, revoke, withdraw, or terminate the 
                institution's accreditation or preaccreditation.
                  ``(D) Probation or an equivalent status imposed on 
                the institution by a recognized accrediting agency or 
                association.
          ``(2) Rule of construction.--Nothing in this subsection shall 
        be construed to restrict the ability of an institution of 
        higher education not subject to an action described in 
        paragraph (1) and otherwise in good standing to change 
        accrediting agencies or associations without the approval of 
        the Secretary as long as the institution notifies the Secretary 
        of the change.'';
          (7) by striking subsection (k) and inserting the following:
  ``(k) Religious Institution Rule.--
          ``(1) In general.--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 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 withdrawal, revocation, or 
        termination--
                  ``(A) is related to the religious mission or 
                affiliation of the institution; and
                  ``(B) is not related to the accreditation criteria 
                provided for in this section.
          ``(2) Requirements.--For purposes of this section the 
        following shall apply:
                  ``(A) The religious mission of an institution may be 
                reflected in the institution's religious tenets, 
                beliefs, or teachings, and any policies or decisions 
                related to such tenets, beliefs, or teachings 
                (including any policies or decisions concerning 
                housing, employment, curriculum, self-governance, or 
                student admission, continuing enrollment, or 
                graduation).
                  ``(B) An agency or association's standard fails to 
                respect an institution's religious mission when the 
                institution determines that the standard induces, 
                pressures, or coerces the institution to act contrary 
                to, or to refrain from acting in support of, any aspect 
                of its religious mission.
          ``(3) Administrative complaint for failure to respect 
        religious mission.--
                  ``(A) In general.--
                          ``(i) Institution.--If an institution of 
                        higher education believes that an adverse 
                        action of an accrediting agency or association 
                        fails to respect the institution's religious 
                        mission in violation of subsection (a)(4)(A), 
                        the institution--
                                  ``(I) may file a complaint with the 
                                Secretary to require the agency or 
                                association to withdraw the adverse 
                                action; and
                                  ``(II) prior to filing such 
                                complaint, shall notify the Secretary 
                                and the agency or association of an 
                                intent to file such complaint not later 
                                than 30 days after--
                                          ``(aa) receiving the adverse 
                                        action from the agency or 
                                        association; or
                                          ``(bb) determining that 
                                        discussions with or the 
                                        processes of the agency or 
                                        association to remedy the 
                                        failure to respect the 
                                        religious mission of the 
                                        institution will fail to result 
                                        in the withdrawal of the 
                                        adverse action by the agency or 
                                        association.
                          ``(ii) Accrediting agency or association.--
                        Upon notification of an intent to file a 
                        complaint and through the duration of the 
                        complaint process under this paragraph, the 
                        Secretary and the accrediting agency or 
                        association shall treat the accreditation 
                        status of the institution of higher education 
                        as if the adverse action for which the 
                        institution is filing the complaint had not 
                        been taken.
                  ``(B) Complaint.--Not later than 45 days after 
                providing notice of the intent to file a complaint, the 
                institution shall file the complaint with the Secretary 
                (and provide a copy to the accrediting agency or 
                association), which shall include--
                          ``(i) a description of the adverse action;
                          ``(ii) how the adverse action fails to 
                        respect the institution's religious mission in 
                        violation of subsection (a)(4)(A); and
                          ``(iii) any other information the institution 
                        determines relevant to the complaint.
                  ``(C) Response.--
                          ``(i) In general.--The accrediting agency or 
                        association shall have 30 days from the date 
                        the complaint is filed with the Secretary to 
                        file with the Secretary (and provide a copy to 
                        the institution) a response to the complaint, 
                        which response shall include--
                                  ``(I) how the adverse action is based 
                                on a violation of the agency or 
                                association's standards for 
                                accreditation; and
                                  ``(II) how the adverse action does 
                                not fail to respect the religious 
                                mission of the institution and is in 
                                compliance with subsection (a)(4)(A).
                          ``(ii) Burden of proof.--
                                  ``(I) In general.--The accrediting 
                                agency or association shall bear the 
                                burden of proving that the agency or 
                                association has not taken the adverse 
                                action as a result of the institution's 
                                religious mission, and that the action 
                                does not fail to respect the 
                                institution's religious mission in 
                                violation of subsection (a)(4)(A), by 
                                showing that the adverse action does 
                                not impact the aspect of the religious 
                                claimed to be affected in the 
                                complaint.
                                  ``(II) Insufficient proof.--Any 
                                evidence that the adverse action 
                                results from the application of a 
                                neutral and generally applicable rule 
                                shall be insufficient to prove that the 
                                action does not fail to respect an 
                                institution's religious mission.
                  ``(D) Additional institution response.--The 
                institution shall have 15 days from the date on which 
                the agency or association's response is filed with the 
                Secretary to--
                          ``(i) file with the Secretary (and provide a 
                        copy to the agency or association) a response 
                        to any issues raised in the response of the 
                        agency or association; or
                          ``(ii) inform the Secretary and the agency or 
                        association that the institution elects to 
                        waive the right to respond to the response of 
                        the agency or association.
                  ``(E) Secretarial action.--
                          ``(i) In general.--Not later than 15 days of 
                        receipt of the institution's response under 
                        subparagraph (D) or notification that the 
                        institution elects not to file a response under 
                        such subparagraph--
                                  ``(I) the Secretary shall review the 
                                materials to determine if the 
                                accrediting agency or association has 
                                met its burden of proof under 
                                subparagraph (C)(ii)(I); or
                                  ``(II) in a case in which the 
                                Secretary fails to conduct such 
                                review--
                                          ``(aa) the Secretary shall be 
                                        deemed as determining that the 
                                        adverse action fails to respect 
                                        the religious mission of the 
                                        institution; and
                                          ``(bb) the accrediting agency 
                                        or association shall be 
                                        required to reverse the action 
                                        immediately and take no further 
                                        action with respect to such 
                                        adverse action.
                          ``(ii) Review of complaint.--In reviewing the 
                        complaint under clause (i)(I)--
                                  ``(I) the Secretary shall consider 
                                the institution to be correct in the 
                                assertion that the adverse action fails 
                                to respect the institution's religious 
                                mission and shall apply the burden of 
                                proof described in subparagraph 
                                (C)(ii)(I) with respect to the 
                                accrediting agency or association; and
                                  ``(II) if the Secretary determines 
                                that the accrediting agency or 
                                association fails to meet such burden 
                                of proof--
                                          ``(aa) the Secretary shall 
                                        notify the institution and the 
                                        agency or association that the 
                                        agency or association is not in 
                                        compliance with subsection 
                                        (a)(4)(A), and that such agency 
                                        or association shall carry out 
                                        the requirements of item (bb) 
                                        to be in compliance subsection 
                                        (a)(4)(A); and
                                          ``(bb) the agency or 
                                        association shall reverse the 
                                        adverse action immediately and 
                                        take no further action with 
                                        respect to such adverse action.
                          ``(iii) Final departmental action.--The 
                        Secretary's determination under this 
                        subparagraph shall be the final action of the 
                        Department on the complaint.
                  ``(F) Rule of construction.--Nothing in this 
                paragraph shall prohibit--
                          ``(i) an accrediting agency or association 
                        from taking an adverse action against an 
                        institution of higher education for a failure 
                        to comply with the agency or association's 
                        standards of accreditation as long as such 
                        standards are in compliance with subsection 
                        (a)(4)(A) and any other applicable requirements 
                        of this section; or
                          ``(ii) an institution of higher education 
                        from exercising any other rights to address 
                        concerns with respect to an accrediting agency 
                        or association or the accreditation process of 
                        an accrediting agency or association.
                  ``(G) Guidance.--
                          ``(i) In general.--The Secretary may only 
                        issue guidance under this paragraph that 
                        explains or clarifies the process for providing 
                        notice of an intent to file a complaint or for 
                        filing a complaint under this paragraph.
                          ``(ii) Clarification.--The Secretary may not 
                        issue guidance, or otherwise determine or 
                        suggest, when discussions to remedy the failure 
                        by an accrediting agency or association to 
                        respect the religious mission of an institution 
                        of higher education referred to in subparagraph 
                        (A)(i)(II)(bb) have failed or will fail.'';
          (8) in subsection (n)(3), by striking ``distance education 
        courses or programs'' each place it appears and inserting 
        ``competency-based education programs'' ;
          (9) in subsection (o), by inserting before the period at the 
        end the following: ``, or with respect to the policies and 
        procedures of an accreditation agency or association described 
        in paragraph (2) or (5) of subsection (c) or how the agency or 
        association carries out such policies and procedures'';
          (10) by striking subsections (p) and (q); and
          (11) by adding at the end the following:
  ``(p) Risk-based or Differentiated Review Processes or Procedures.--
          ``(1) In general.--Notwithstanding any other provision of law 
        (including subsection (a)(4)(A)), an accrediting agency or 
        association may establish, with the involvement of its 
        membership, risk-based or differentiated review processes or 
        procedures for assessing compliance with the accrediting agency 
        or association's standards, including policies related to 
        substantive change and award of accreditation statuses, for 
        institutions of higher education or programs that have 
        demonstrated exceptional past performance with respect to 
        meeting the accrediting agency or association's standards.
          ``(2) Prohibition.--Risk-based or differentiated review 
        processes or procedures shall not discriminate against, or 
        otherwise preclude, institutions of higher education based on 
        institutional sector or category, including an institution of 
        higher education's tax status.
          ``(3) Rule of construction.--Nothing in this subsection shall 
        be construed to permit the Secretary to establish any criterion 
        that specifies, defines, or prescribes an accrediting agency or 
        association's risk-based or differentiated review process or 
        procedure.
  ``(q) Waiver.--The Secretary shall establish a process through which 
an agency or association may seek to have a requirement of this subpart 
waived, if such agency or association--
          ``(1) demonstrates that such waiver is necessary to enable an 
        institution of higher education or program accredited by the 
        agency or association to implement innovative practices 
        intended to--
                  ``(A) reduce administrative burdens to the 
                institution or program without creating costs for the 
                taxpayer; or
                  ``(B) improve the delivery of services to students, 
                improve instruction or learning outcomes, or otherwise 
                benefit students; and
          ``(2) describes the terms and conditions that will be placed 
        upon the program or institution to ensure academic integrity 
        and quality.''.

SEC. 497. ELIGIBILITY AND CERTIFICATION PROCEDURES.

  (a) Eligibility and Certification Procedures.--Section 498 (20 U.S.C. 
1099c) is amended--
          (1) in subsection (a)--
                  (A) by striking ``For purposes of'' and inserting the 
                following:
          ``(1) In general.--For purposes of'';
                  (B) by inserting ``, subject to paragraph (2),'' 
                after ``determine''; and
                  (C) by adding at the end the following:
          ``(2) Special rule.--The determination of whether an 
        institution of higher education is legally authorized to 
        operate in a State under section 101(a)(2) shall be based 
        solely on that State's laws.'';
          (2) in subsection (b)(5), by striking ``B or D'' and 
        inserting ``E'';
          (3) in subsection (c)--
                  (A) by redesignating paragraphs (4), (5), and (6) as 
                paragraphs (6), (7), and (8), respectively;
                  (B) by striking the subsection designation and all 
                that follows through the end of paragraph (3) and 
                inserting the following:
  ``(c) Financial Responsibility Standards.--(1) The Secretary shall 
determine whether an institution has the financial responsibility 
required by this title in accordance with paragraph (2).
  ``(2) An institution shall be determined to be financially 
responsible by the Secretary, as required by this title, if the 
institution is able to provide the services described in its official 
publications and statements, is able to provide the administrative 
resources necessary to comply with the requirements of this title, and 
meets one of the following conditions:
          ``(A) Such institution has its liabilities backed by the full 
        faith and credit of a State, or its equivalent.
          ``(B) Such institution has a bond credit quality rating of 
        investment grade or higher from a recognized credit rating 
        agency.
          ``(C) Such institution has expendable net assets equal to not 
        less than one-half of the annual potential liabilities of such 
        institution to the Secretary for funds under this title, 
        including loan obligations discharged pursuant to section 437, 
        and to students for refunds of institutional charges, including 
        funds under this title, as calculated by an independent 
        certified public accountant in accordance with generally 
        accepted auditing standards.
          ``(D) Such institution establishes, with the support of a 
        financial statement audited by an independent certified public 
        accountant in accordance with generally accepted auditing 
        standards, that the institution has sufficient resources to 
        ensure against the precipitous closure of the institution, 
        including the ability to meet all of its financial obligations 
        (including refunds of institutional charges and repayments to 
        the Secretary for liabilities and debts incurred in programs 
        administered by the Secretary).
          ``(E) Such institution has met criteria, prescribed by the 
        Secretary by regulation in accordance with paragraph (3), 
        that--
                  ``(i) establish ratios that demonstrate financial 
                responsibility in accordance with generally accepted 
                auditing standards as described in paragraph (7);
                  ``(ii) incorporate the procedures described in 
                paragraph (4);
                  ``(iii) establish consequences for failure to meet 
                the criteria described in paragraph (5); and
                  ``(iv) take into account any differences in generally 
                accepted accounting principles, and the financial 
                statements required thereunder, that are applicable to 
                for-profit, public, and nonprofit institutions.
  ``(3) The criteria prescribed pursuant to paragraph (2)(E) shall 
provide that the Secretary shall--
          ``(A) not later than 6 months after an institution that is 
        subject to the requirements of paragraph (2)(E) has submitted 
        its annual financial statement, provide to such institution a 
        notification of its preliminary score under such paragraph;
          ``(B) provide to each such institution a description of the 
        method used, and complete copies of all the calculations 
        performed, to determine the institution's score, if such 
        institution makes a request for such information within 45 days 
        after receiving the notice under subparagraph (A);
          ``(C) within 60 days of receipt by an institution of the 
        information described in subparagraph (B)--
                  ``(i) allow the institution to correct or cure an 
                administrative, accounting, or recordkeeping error if 
                the error is not part of a pattern of errors and there 
                is no evidence of fraud or misconduct related to the 
                error;
                  ``(ii) if the institution demonstrates that the 
                Secretary has made errors in its determination of the 
                initial score or has used non-standard accounting 
                practices in reaching its determination, notify the 
                institution that its composite score has been 
                corrected; and
                  ``(iii) take into consideration any subsequent change 
                in the institution's overall fiscal health that would 
                raise the institution's score;
          ``(D) maintain and preserve at all times the confidentiality 
        of any review until such score is determined to be final; and
          ``(E) make a determination regarding whether the institution 
        has met the standards of financial responsibility based on an 
        audited and certified financial statement of the institution as 
        described in paragraph (7).
  ``(4) If the Secretary determines, after conducting an initial 
review, that the institution has not met at least one of the conditions 
described in subparagraphs (A) through (E) of paragraph (2) but has 
otherwise met the requirements of such paragraph--
          ``(A) the Secretary shall request information relating to 
        such conditions for any affiliated or parent organization, 
        company, or foundation owning or owned by the institution; and
          ``(B) if such additional information demonstrates that an 
        affiliated or parent organization, company, or foundation 
        owning or owned by the institution meets at least one of the 
        conditions describe in subparagraphs (A) through (E) of 
        paragraph (2), the institution shall be determined to be 
        financially responsible as required by this title.
  ``(5) The Secretary shall establish policies and procedures to 
address an institution's failure to meet the criteria of paragraph (2) 
which shall include policies and procedures that--
          ``(A) require an institution that fails to meet the criteria 
        for three consecutive years to provide to the Secretary a 
        financial plan;
          ``(B) provide for additional oversight and cash monitoring 
        restrictions, as appropriate;
          ``(C) allow an institution to submit to the Secretary third-
        party financial guarantees that the Secretary determines are 
        reasonable, such as performance bonds or letters of credit 
        payable to the Secretary, except that an institution may not be 
        required to obtain a letter of credit in order to be deemed 
        financially responsible unless--
                  ``(i) the institution has been deemed not to be a 
                going concern, as determined by an independent 
                certified public accountant in accordance with 
                generally accepted auditing standards;
                  ``(ii) the institution is determined by the Secretary 
                to be at risk of precipitous closure when the full 
                financial resources of the institution, including the 
                value of the institution's expendable endowment, are 
                considered; or
                  ``(iii) the institution is determined by the 
                Secretary to be at risk of not meeting all of its 
                financial obligations, including refunds of 
                institutional charges and repayments to the Secretary 
                for liabilities and debts incurred in programs 
                administered by the Secretary; and
          ``(D) provide for the removal of all requirements related to 
        the institution's failure to meet the criteria once the 
        criteria are met.''; and
                  (C) in paragraph (7), as so redesignated, by striking 
                ``paragraphs (2) and (3)(C)'' and inserting ``paragraph 
                (2)'';
          (4) in subsection (g)(3)--
                  (A) by striking ``section 102(a)(1)(C)'' and 
                inserting ``section 102(a)(1)''; and
                  (B) by striking ``part B'' and inserting ``part D or 
                E'';
          (5) in subsection (h)(2), by striking ``18'' and inserting 
        ``36'';
          (6) in subsection (i)(1), by striking ``section 102 (other 
        than the requirements in subsections (b)(5) and (c)(3))'' and 
        inserting ``sections 101 (other than the requirements in 
        subsections (b)(1)(A) and (b)(2)) and 102'';
          (7) in subsection (j)(1), by striking ``meet the requirements 
        of sections 102(b)(1)(E) and 102(c)(1)(C)'' and inserting 
        ``meet the requirements to be considered an institution of 
        higher education under sections 101(b)(1)(A) and 101(b)(2)''; 
        and
          (8) in subsection (k)--
                  (A) in paragraph (1), by striking ``487(f)'' and 
                inserting ``487(e)''; and
                  (B) in paragraph (2)(A), by striking ``meet the 
                requirements of sections 102(b)(1)(E) and 
                102(c)(1)(C)'' and inserting ``meet the requirements to 
                be considered an institution of higher education under 
                sections 101(b)(1)(A) and 101(b)(2)''.
  (b) Program Review and Data.--Section 498A (20 U.S.C. 1099c-1) is 
amended--
          (1) in subsection (a)(2)--
                  (A) by striking ``part B of'' both places it appears;
                  (B) in subparagraph (A), by inserting before the 
                semicolon at the end the following: ``, or after the 
                transition period described in section 481B(e)(3), 
                institutions in which 25 percent or more of the 
                educational programs have a loan repayment rate 
                (defined in section 481B(c)) for the most recent fiscal 
                year of less than 50 percent'';
                  (C) in subparagraph (B), by inserting before the 
                semicolon at the end the following: ``, except that 
                this subparagraph shall not apply after the transition 
                period described in section 481B(e)(3)''; and
                  (D) in subparagraph (C)--
                          (i) by inserting ``, Federal ONE Loan 
                        volume'' after ``Stafford/Ford Loan volume''; 
                        and
                          (ii) by inserting ``, Federal ONE Loan 
                        program'' after ``Stafford/Ford Loan program'';
          (2) in subsection (b)--
                  (A) by redesignating paragraphs (3) through (8) as 
                paragraphs (4) through (9), respectively;
                  (B) by inserting after paragraph (2) the following 
                new paragraph:
          ``(3) as practicable, provide a written explanation to the 
        institution of higher education detailing the Secretary's 
        reasons for initiating the program review which, if applicable, 
        shall include references to specific criteria under subsection 
        (a)(2);''; and
                  (C) in paragraph (9), as so redesignated--
                          (i) by striking ``paragraphs (6) and (7)'' 
                        and inserting ``paragraphs (7) and (8)''; and
                          (ii) by striking ``paragraph (5)'' and 
                        inserting ``paragraph (6)''; and
          (3) by adding at the end the following new subsection:
  ``(f) Time Limit on Program Review Activities.--In conducting, 
responding to, and concluding program review activities, the Secretary 
shall--
          ``(1) provide to the institution the initial report finding 
        not later than 90 days after concluding an initial site visit;
          ``(2) upon each receipt of an institution's response during a 
        program review inquiry, respond in a substantive manner within 
        90 days;
          ``(3) upon each receipt of an institution's written response 
        to a draft final program review report, provide the final 
        program review report and accompanying enforcement actions, if 
        any, within 90 days; and
          ``(4) conclude the entire program review process not later 
        than 2 years after the initiation of a program review, unless 
        the Secretary determines that such a review is sufficiently 
        complex and cannot reasonably be concluded before the 
        expiration of such 2-year period, in which case the Secretary 
        shall promptly notify the institution of the reasons for such 
        delay and provide an anticipated date for conclusion of the 
        review.''.
  (c) Review of Regulations.--Section 498B(b) (20 U.S.C. 1099c-2(b)) is 
amended by striking ``section 102(a)(1)(C)'' and inserting ``section 
102(a)(1)''.

                    TITLE V--DEVELOPING INSTITUTIONS

SEC. 501. HISPANIC-SERVING INSTITUTIONS.

  Part A of title V (20 U.S.C. 1101 et seq.) is amended--
          (1) in section 502(a)--
                  (A) in paragraph (1), by striking ``institution for 
                instruction'' and inserting ``institution of higher 
                education for instruction'';
                  (B) in paragraph (2)(A)--
                          (i) by redesignating clauses (v) and (vi) as 
                        clauses (vi) and (v), respectively;
                          (ii) in clause (v) (as so redesignated), by 
                        inserting ``(as defined in section 
                        103(20)(A))'' after ``State''; and
                          (iii) in clause (vi) (as so redesignated), by 
                        striking ``and'' at the end; and
                  (C) in paragraph (2)--
                          (i) by striking the period at the end of 
                        subparagraph (B) and inserting ``; and''; and
                          (ii) by inserting after subparagraph (B) the 
                        following:
                  ``(C) except as provided in section 522(b), an 
                institution that has a completion rate of at least 25 
                percent that is calculated by--
                          ``(i) counting a student as completed if that 
                        student graduated within 150 percent of the 
                        normal time for completion; or
                          ``(ii) counting a student as completed if 
                        that student enrolled into another program at 
                        an institution for which the previous program 
                        provided substantial preparation within 150 
                        percent of normal time for completion.'';
          (2) in section 503--
                  (A) in subsection (b)--
                          (i) in paragraph (5), by striking 
                        ``counseling, and'' and inserting ``counseling, 
                        advising, and'''
                          (ii) in paragraph (7), by striking ``funds 
                        management'' and inserting ``funds and 
                        administrative management'';
                          (iii) in paragraph (11), by striking 
                        ``Creating'' and all that follows through 
                        ``technologies,'' and inserting ``Innovative 
                        learning models and creating or improving 
                        facilities for Internet or other innovative 
                        technologies,''; and
                          (iv) by redesignating paragraph (16) as 
                        paragraph (20) and inserting after paragraph 
                        (15) the following:
          ``(16) The development, coordination, implementation, or 
        improvement of career and technical education programs (as 
        defined in section 135 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2355)).
          ``(17) Alignment and integration of career and technical 
        education programs with programs of study leading to a 
        bachelor's degree, graduate degree, or professional degree.
          ``(18) Developing or expanding access to dual or concurrent 
        enrollment programs and early college high school programs.
          ``(19) Pay for success initiatives that improve time to 
        completion and increase graduation rates.''; and
                  (B) in subsection (c), by adding at the end the 
                following:
          ``(4) Scholarship.--An institution that uses grant funds 
        provided under this part to establish or increase an endowment 
        fund may use the income from such endowment fund to provide 
        scholarships to students for the purposes of attending such 
        institution, subject to the limitation in section 
        331(c)(3)(B)(i).'';
          (3) in section 504, by striking subsection (a) and inserting 
        the following:
  ``(a) Award Period.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds 
awarded under this part that are not expended or used, before the date 
that is 10 years after the date on which the grant was awarded, for the 
purposes for which the funds were paid shall be repaid to the 
Treasury.''; and
          (4) in section 505, by striking ``this title'' each place 
        such term appears and inserting ``this part''.

SEC. 502. PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
                    AMERICANS.

  Part B of title V (20 U.S.C. 1102 et seq.) is amended--
          (1) in section 513--
                  (A) by striking paragraph (1) and inserting the 
                following:
          ``(1) The activities described in (1) through (4), (11), and 
        (19) of section 503(b).'';
                  (B) by striking paragraphs (2) and (3); and
                  (C) by redesignating paragraphs (4) through (8) as 
                paragraphs (2) through (6), respectively; and
                  (D) in paragraph (4) (as so redesignated), by 
                striking ``Creating'' and all that follows through 
                ``technologies,'' and inserting ``Innovative learning 
                models and creating or improving facilities for 
                Internet or other innovative technologies,''; and
          (2) in section 514--
                  (A) by striking subsection (b) and inserting the 
                following:
  ``(b) Duration.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. Any funds 
awarded under this part that are not expended or used for the purposes 
for which the funds were paid within 10 years following the date on 
which the grant was awarded shall be repaid to the Treasury.''; and
                  (B) by adding at the end the following:
  ``(d) Special Rule.--No Hispanic-serving institution that is eligible 
for and receives funds under this part may receive funds under part A 
or B of title III during the period for which funds under this part are 
awarded.''.

SEC. 503. GENERAL PROVISIONS.

  Part C of title V (20 U.S.C. 1103 et seq.) is amended--
          (1) in section 521(c)(7)--
                  (A) by striking subparagraph (C);
                  (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively; and
                  (C) in subparagraph (D), as so redesignated, by 
                striking ``subparagraph (D)'' and inserting 
                ``subparagraph (C)'';
          (2) in section 522(b)--
                  (A) in the subsection heading, by inserting ``; 
                completion rates'' after ``expenditures'';
                  (B) in paragraph (1), by inserting ``or 
                502(a)(2)(C)'' after ``502(a)(2)(A)(ii)''; and
                  (C) in paragraph (2)--
                          (i) in the paragraph heading, by inserting 
                        ``and completion rates'' after 
                        ``Expenditures'';
                          (ii) in the matter preceding subparagraph 
                        (A), by inserting ``or 502(a)(2)(C)'' after 
                        ``502(a)(2)(A)(ii)''; and
                          (iii) in subparagraph (A), by inserting ``or 
                        section 502(a)(2)(C)'' after ``502(a)(2)(A)'';
          (3) in section 524(c), by striking ``section 505'' and 
        inserting ``section 504''; and
          (4) in section 528--
                  (A) in subsection (a), by striking ``parts A and C'' 
                and all that follows through the period at the end and 
                inserting ``parts A and C, $107,795,000 for each of 
                fiscal years 2019 through 2024.''; and
                  (B) in subsection (b), by striking ``part B'' and all 
                that follows through the period at the end and 
                inserting ``part B, $9,671,000 for each of fiscal years 
                2019 through 2024.''.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.

  (a) Graduate and Undergraduate Language and Area Centers and 
Programs.--Section 602 (20 U.S.C. 1122) is amended--
          (1) in subsection (a)(4)(F), by inserting ``(C),'' after 
        ``(B),''; and
          (2) in subsection (e)--
                  (A) by redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and realigning 
                such subparagraphs so as to be indented 4 ems from the 
                left margin;
                  (B) by striking ``(e) Application.--Each 
                institution'' and inserting the following:
  ``(e) Application.--
          ``(1) Submission; contents.--Each institution''; and
                  (C) by adding at the end the following new paragraph:
          ``(2) Approval.--The Secretary may approve an application for 
        a grant if an institution, in its application, provides 
        adequate assurances that it will comply with paragraph (1)(A). 
        The Secretary shall use the requirement of paragraph (1)(A) as 
        part of the application evaluation, review, and approval 
        process when determining grant recipients for initial funding 
        and continuation awards.''.
  (b) Discontinuation of Certain Programs.--Part A of title VI (20 
U.S.C. 1121 et seq.) is amended--
          (1) by striking section 604;
          (2) by striking section 606;
          (3) by striking section 609; and
          (4) by striking section 610.
  (c) Conforming Amendment.--Part A of title VI (20 U.S.C. 1121 et 
seq.) is further amended by redesignating sections 605, 607, and 608 as 
sections 604, 605, and 606, respectively.

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 (f)(3), by inserting ``and a wide range of 
        views'' after ``diverse perspectives''; and
          (2) by adding at the end the following new subsection:
  ``(g) Approval.--The Secretary may approve an application for a grant 
if an institution, in its application, provides adequate assurances 
that it will comply with subsection (f)(3). The Secretary shall use the 
requirement of subsection (f)(3) as part of the application evaluation, 
review, and approval process when determining grant recipients for 
initial funding and continuation awards.''.
  (b) Discontinuation of Certain Programs.--Part B of title VI (20 
U.S.C. 1130 et seq.) is amended by striking sections 613 and 614.

SEC. 603. REPEAL OF ASSISTANCE PROGRAM FOR INSTITUTE FOR INTERNATIONAL 
                    PUBLIC POLICY.

  Part C of title VI (20 U.S.C. 1131 et seq.) is repealed.

SEC. 604. GENERAL PROVISIONS.

  (a) Definitions.--Section 631(a) (20 U.S.C. 1132(a)) is amended--
          (1) by striking paragraphs (5) and (9);
          (2) in paragraph (8), by inserting ``and'' after the 
        semicolon at the end; and
          (3) by redesignating paragraphs (6), (7), (8), and (10) as 
        paragraphs (5), (6), (7), and (8), respectively.
  (b) Special Rule.--Section 632(2) (20 U.S.C. 1132-1(2)) is amended by 
inserting ``substantial'' before ``need''.
  (c) Reports.--Section 636 (20 U.S.C. 1132-5) is amended--
          (1) by inserting ``(a) Biennial Report on Areas of National 
        Need.--'' before ``The Secretary''; and
          (2) by adding at the end the following new subsection:
  ``(b) Annual Report on Compliance With Diverse Perspectives and a 
Wide Range of Views Requirement.--Not later than 180 days after the 
date of the enactment of this subsection, and annually thereafter, the 
Secretary shall submit to the authorizing committees a report that 
identifies the efforts taken to ensure recipients' compliance with the 
requirements under this title relating to the `diverse perspectives and 
a wide range of views' requirement, including any technical assistance 
the Department has provided, any regulatory guidance the Department has 
issued, and any monitoring the Department has conducted. Such report 
shall be made available to the public.''.
  (d) Repeal of Science and Technology Advanced Foreign Language 
Education Grant Program.--Section 637 (20 U.S.C. 1132-6) is repealed.
  (e) Reporting by Institutions.--Section 638(b) (20 U.S.C. 1132-7(b)) 
is amended to read as follows:
  ``(b) Data Required.--
          ``(1) In general.--Except as provided in paragraph (5), the 
        Secretary shall require an institution of higher education 
        referred to in subsection (a) to file a disclosure report under 
        paragraph (2) with the Secretary on January 31 or July 31, 
        whichever is sooner, with respect to the date on which such 
        institution received a contribution--
                  ``(A) less than 7 months from such date; and
                  ``(B) greater than 30 days from such date.
          ``(2) Contents of report.--Each report to the Secretary 
        required by this section shall contain the following 
        information with respect to the institution of higher education 
        filing the report:
                  ``(A) For gifts received from, or contracts entered 
                into with a foreign source other than a foreign 
                government, the following information:
                          ``(i) The aggregate dollar amount of such 
                        gifts and contracts attributable to each 
                        country, including the fair market value of the 
                        services of staff members, textbooks, and other 
                        in-kind gifts.
                          ``(ii) The legal name of the entity providing 
                        any such gift or contract.
                          ``(iii) The country to which the gift is 
                        attributable.
                  ``(B) For gifts received from, or contracts entered 
                into with, a foreign government, the aggregate dollar 
                amount of such gifts and contracts received from each 
                foreign government and the legal name of the entity 
                providing any such gift or contract.
                  ``(C) In the case of an institution of higher 
                education that is owned or controlled by a foreign 
                source--
                          ``(i) the identity of the foreign source;
                          ``(ii) the date on which the foreign source 
                        assumed ownership or control of the 
                        institution; and
                          ``(iii) any changes in program or structure 
                        resulting from the change in ownership or 
                        control.
          ``(3) Additional disclosures for restricted and conditional 
        gifts.--Notwithstanding paragraph (1), when an institution of 
        higher education receives a restricted or conditional gift or 
        contract from a foreign source, the institution shall disclose 
        the following:
                  ``(A) In the case of gifts received from, or 
                contracts entered into with, a foreign source other 
                than a foreign government, the amount, the date, and a 
                description of such conditions or restrictions.
                  ``(B) The country to which the gift is attributable.
                  ``(C) In the case of gifts received from, or 
                contracts entered into with, a foreign government, the 
                amount, the date, a description of such conditions or 
                restrictions, and the name of the foreign government.
          ``(4) Attribution of gifts.--For purposes of this subsection, 
        the country to which a gift is attributable is--
                  ``(A) the country of citizenship; or
                  ``(B) if the information described in subparagraph 
                (A) is not known--
                          ``(i) the principal residence for a foreign 
                        source who is a natural person; or
                          ``(ii) the principal place of business and 
                        country of incorporation for a foreign source 
                        that is a legal entity.
          ``(5) Relation to other reporting requirements.--
                  ``(A) State requirements.--If an institution 
                described under subsection (a) is located within a 
                State that has enacted requirements for public 
                disclosure of gifts from, or contracts with, a foreign 
                source that are substantially similar to the 
                requirements of this section, as determined by the 
                Secretary, a copy of the disclosure report filed with 
                the State may be filed with the Secretary in lieu of a 
                report required under paragraph (1).
                  ``(B) Assurances.--With respect to an institution 
                that submits a copy of a disclosure report pursuant to 
                subparagraph (A), the State in which such institution 
                is located shall provide to the Secretary such 
                assurances as the Secretary may require to establish 
                that the institution has met the requirements for 
                public disclosure under the laws of such State.
                  ``(C) Use of other federal reports.--If an 
                institution receives a gift from, or enters into a 
                contract with, a foreign source, where any other 
                Federal law or regulation requires a report containing 
                requirements substantially similar to the requirements 
                under this section, as determined by the Secretary, a 
                copy of the report may be filed with the Secretary in 
                lieu of a report required under subsection (b).
          ``(6) Public inspection.--A disclosure report required by 
        this section shall be--
                  ``(A) available as public records open to inspection 
                and copying during business hours;
                  ``(B) available electronically; and
                  ``(C) made available under subparagraphs (A) and (B) 
                not later than 30 days after the Secretary receives 
                such report.
          ``(7) Enforcement.--
                  ``(A) Compel compliance.--Whenever it appears that an 
                institution has failed to comply with the requirements 
                of this section, including any rule or regulation 
                promulgated under this section, a civil action may be 
                brought by the Attorney General, at the request of the 
                Secretary, in an appropriate district court of the 
                United States, or the appropriate United States court 
                of any territory or other place subject to the 
                jurisdiction of the United States, to request such 
                court to compel compliance with the requirements of 
                this section.
                  ``(B) Costs.--For knowing or willful failure to 
                comply with the requirements of this section, including 
                any rule or regulation promulgated thereunder, an 
                institution shall pay to the Treasury of the United 
                States the full costs to the United States of obtaining 
                compliance, including all associated costs of 
                investigation and enforcement.
          ``(8) Definitions.--In this section:
                  ``(A) Contract.--The term `contract' means any 
                agreement for the acquisition by purchase, lease, gift, 
                or barter of property or services by the foreign 
                source, for the direct benefit or use of either of the 
                parties.
                  ``(B) Foreign source.--The term `foreign source' 
                means--
                          ``(i) a foreign government, including an 
                        agency of a foreign government;
                          ``(ii) a legal entity, governmental or 
                        otherwise, created solely under the laws of a 
                        foreign state or states;
                          ``(iii) an individual who is not a citizen or 
                        a national of the United States or a trust 
                        territory or protectorate thereof; and
                          ``(iv) an agent, including a subsidiary or 
                        affiliate of a foreign legal entity, acting on 
                        behalf of a foreign source.
                  ``(C) Gift.--The term `gift' means any gift of money, 
                property, human resources, or payment of any staff.
                  ``(D) Restricted or conditional.--The term 
                `restricted or conditional', with respect to an 
                endowment, gift, grant, contract, award, present, or 
                property of any kind means including as a condition on 
                such endowment, gift, grant, contract, award, present, 
                or property provisions regarding--
                          ``(i) the employment, assignment, or 
                        termination of faculty;
                          ``(ii) the establishment of departments, 
                        centers, research or lecture programs, 
                        institutes, instructional programs, or new 
                        faculty positions;
                          ``(iii) the selection or admission of 
                        students; or
                          ``(iv) the award of grants, loans, 
                        scholarships, fellowships, or other forms of 
                        financial aid restricted to students of a 
                        specified country, religion, sex, ethnic 
                        origin, or political opinion.''.
  (f) Redesignations.--Part D of title VI (20 U.S.C. 1132 et seq.) is 
amended--
          (1) by redesignating such part as part C; and
          (2) by redesignating sections 631, 632, 633, 634, 635, 636, 
        and 638 as sections 621, 622, 623, 624, 625, 626, and 627, 
        respectively.
  (g) Continuation Awards.--Part C of title VI (20 U.S.C. 1131 et 
seq.), as so redesignated by subsection (f)(1) of this section, is 
amended by adding at the end the following new sections:

``SEC. 628. CONTINUATION AWARDS.

  ``The Secretary shall make continuation awards under this title for 
the second and succeeding years of a grant only after determining that 
the recipient is making satisfactory progress in carrying out the 
stated grant objectives approved by the Secretary.

``SEC. 629. COMPLIANCE WITH DIVERSE PERSPECTIVE AND A WIDE RANGE OF 
                    VIEWS.

  ``When complying with the requirement of this title to offer a 
diverse perspective and a wide range of views, a recipient of a grant 
under this title shall not promote any biased views that are 
discriminatory toward any group, religion, or population of people.

``SEC. 630. AUTHORIZATION OF APPROPRIATIONS.

  ``There is authorized to be appropriated to carry out this title 
$61,525,000 for each of fiscal years 2019 through 2024.''.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 701. GRADUATE EDUCATION PROGRAMS.

  (a) Repeal of Jacob K. Javits Fellowship Program.--Subpart 1 of part 
A of title VII (20 U.S.C. 1134 et seq.) is repealed.
  (b) Repeal of Thurgood Marshall Legal Educational Opportunity 
Program.--Subpart 3 of part A of title VII (20 U.S.C. 1136) is 
repealed.
  (c) Authorization of Appropriations for Graduate Assistance in Areas 
of National Need.--Section 716 (20 U.S.C. 1135e) is amended striking 
``$35,000,000'' and all that follows through the period at the end and 
inserting ``$28,047,000 for each of fiscal years 2019 through 2024.''.
  (d) Redesignations.--Part A of title VII (20 U.S.C. 1134 et seq.) is 
amended--
          (1) by redesignating subparts 2, 4, and 5 as subparts 1, 2, 
        and 3 respectively;
          (2) by redesignating sections 711 through 716 as sections 701 
        through 706, respectively;
          (3) by redesignating sections 723 through 725 as sections 711 
        through 713, respectively; and
          (4) by redesignating section 731 as section 721.
  (e) Amendment of Cross References.--Part A of title VII (20 U.S.C. 
1134 et seq.) is amended--
          (1) in section 703(b)(8), as so redesignated, by striking 
        ``section 715'' and inserting ``section 705'';
          (2) in section 704(c)), as so redesignated--
                  (A) by striking ``section 715(a)'' and inserting 
                ``section 705(a)''; and
                  (B) by striking ``section 713(b)(2)'' and inserting 
                ``section 703(b)(2)'';
          (3) in section 711(e), as so redesignated, by striking 
        ``724'' and inserting ``712'';
          (4) in section 712(e), as so redesignated, by striking 
        ``723'' and inserting ``711'';
          (5) in section 713, as so redesignated--
                  (A) in subsection (a), by striking ``section 723'' 
                and all that follows through the period at the end and 
                inserting ``section 711, $7,500,000 for fiscal year 
                2019 and each of the five succeeding fiscal years.''; 
                and
                  (B) in subsection (b), by striking ``section 724'' 
                and inserting ``section 712''; and
          (6) in section 721, as so redesignated--
                  (A) in the section heading, by striking ``through 4'' 
                and inserting ``and 2'';
                  (B) by striking ``subparts 1 through 4'' each place 
                such term appears and inserting ``subparts 1 and 2'';
                  (C) in subsection (c)--
                          (i) by striking ``section 703(b) or 715(a)'' 
                        and inserting ``section 705(a)''; and
                          (ii) by striking ``subpart 1 or 2, 
                        respectively,'' and inserting ``subpart 1''; 
                        and
                  (D) in subsection (d), by striking ``subpart 1, 2, 3, 
                or 4'' and inserting ``subpart 1 or 2''.

SEC. 702. REPEAL OF FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
                    EDUCATION.

  Part B of title VII (20 U.S.C. 1138 et seq.) is repealed.

SEC. 703. PROGRAMS FOR STUDENTS WITH DISABILITIES.

  (a) Redesignations.--
          (1) Subpart.--Part D of title VII (20 U.S.C. 1140 et seq.) is 
        amended by striking subparts 1 and 3 and redesignating subparts 
        2 and 4 as subparts 1 and 2, respectively.
          (2) Part.--Part D of title VII (20 U.S.C. 1140 et seq.), as 
        amended by paragraph (1), is redesignated as part B of such 
        Act.
          (3) Definitions.--Section 760 (20 U.S.C. 1140) is 
        redesignated as section 730 of such Act.
  (b) Model Transition Programs; Coordinating Center.--
          (1) Purpose.--Section 766 (20 U.S.C. 1140f) is redesignated 
        as section 731 of such Act.
          (2) Model comprehensive transition and postsecondary 
        programs.--Section 767 (20 U.S.C. 1140g) is amended--
                  (A) by redesignating such section as section 732 of 
                such Act;
                  (B) in subsection (a)(1)--
                          (i) by striking ``section 769(a)'' and 
                        inserting ``section 736(a)''; and
                          (ii) by striking ``institutions of higher 
                        education (or consortia of institutions of 
                        higher education), to enable the institutions 
                        or consortia'' and inserting ``eligible 
                        applicants, to enable the eligible 
                        applicants'';
                  (C) by striking subsection (b) and inserting the 
                following:
  ``(b) Application.--An eligible applicant desiring a grant under this 
section shall submit to the Secretary, at such time and in such manner 
as the Secretary may require, an application that--
          ``(1) describes how the model program to be operated by the 
        eligible applicant with grant funds received under this section 
        will meet the requirements of subsection (d);
          ``(2) describes how the model program proposed to be operated 
        is based on the demonstrated needs of students with 
        intellectual disabilities served by the eligible applicant and 
        potential employers;
          ``(3) describes how the model program proposed to be operated 
        will coordinate with other Federal, State, and local programs 
        serving students with intellectual disabilities, including 
        programs funded under the Rehabilitation Act of 1973 (29 U.S.C. 
        701 et seq.);
          ``(4) describes how the model program will be sustained once 
        the grant received under this section ends;
          ``(5) if applicable, describes how the eligible applicant 
        will meet the preferences described in subsection (c)(3); and
          ``(6) demonstrates the ability of the eligible applicant to 
        meet the requirement under subsection (e).''.
                  (D) in subsection (c)(3)--
                          (i) in subparagraph (B), by striking 
                        ``institution of higher education'' and 
                        inserting ``eligible applicant''; and
                          (ii) in subparagraph (C), by striking 
                        ``students attending the institution of higher 
                        education'' and inserting ``the eligible 
                        applicant's students'';
                  (E) in subsection (d)--
                          (i) in the matter preceding paragraph (1), by 
                        striking ``An institution of higher education 
                        (or consortium)'' and inserting ``An eligible 
                        applicant'';
                          (ii) in paragraph (2), by striking 
                        ``institution of higher education's'' and 
                        inserting ``eligible applicant's'';
                          (iii) in paragraph (3)(D), by striking ``that 
                        lead to gainful employment'';
                          (iv) in paragraph (5), by striking ``section 
                        777(b)'' and inserting ``section 734'';
                          (v) in paragraph (6), by inserting ``and'' 
                        after the semicolon at the end;
                          (vi) by striking paragraph (7); and
                          (vii) by redesignating paragraph (8) as 
                        paragraph (7);
                  (F) in subsection (e), by striking ``An institution 
                of higher education (or consortium)'' and inserting 
                ``An eligible applicant'';
                  (G) in subsection (f), by striking ``Not later than 
                five years after the date of the first grant awarded 
                under this section'' and inserting ``Not less often 
                than once every 5 years''; and
                  (H) by adding at the end the following new 
                subsection:
  ``(g) Definition.--For purposes of this subpart, the term `eligible 
applicant' means an institution of higher education or a consortium of 
institutions of higher education.''.
          (3) Redesignations.--Sections 768 and 769 (20 U.S.C. 1140i) 
        are redesignated as sections 733 and 736, respectively.
          (4) Coordinating center and commission.--Subpart 1 of part D 
        of title VII, as so redesignated by subsection (a)(1), is 
        amended by inserting after section 733 (as so redesignated by 
        paragraph (3)) the following:

``SEC. 734. COORDINATING CENTER.

  ``(a) Purpose.--It is the purpose of this section to provide 
technical assistance and information on best and promising practices to 
eligible applicants awarded grants under section 732.
  ``(b) Coordinating Center.--
          ``(1) Definition of eligible entity.--In this section, the 
        term `eligible entity' means an entity, or a partnership of 
        entities, that has demonstrated expertise in the fields of--
                  ``(A) higher education;
                  ``(B) the education of students with intellectual 
                disabilities;
                  ``(C) the development of comprehensive transition and 
                postsecondary programs for students with intellectual 
                disabilities; and
                  ``(D) evaluation and technical assistance.
          ``(2) In general.--From amounts appropriated under section 
        736, the Secretary shall enter into a cooperative agreement, on 
        a competitive basis, with an eligible entity for the purpose of 
        establishing a coordinating center for institutions of higher 
        education that offer inclusive comprehensive transition and 
        postsecondary programs for students with intellectual 
        disabilities, including eligible applicants receiving grants 
        under section 732, to provide--
                  ``(A) recommendations related to the development of 
                standards for such programs;
                  ``(B) technical assistance for such programs; and
                  ``(C) evaluations for such programs.
          ``(3) Administration.--The program under this section shall 
        be administered by the office in the Department that 
        administers other postsecondary education programs.
          ``(4) Duration.--A cooperative agreement entered into 
        pursuant to this section shall have a term of 5 years.
          ``(5) Requirements of cooperative agreement.--The cooperative 
        agreement entered into pursuant to this section shall provide 
        that the eligible entity entering into such agreement shall 
        establish and maintain a coordinating center that shall--
                  ``(A) serve as the technical assistance entity for 
                all comprehensive transition and postsecondary programs 
                for students with intellectual disabilities;
                  ``(B) provide technical assistance regarding the 
                development, evaluation, and continuous improvement of 
                such programs;
                  ``(C) develop an evaluation protocol for such 
                programs that includes qualitative and quantitative 
                methodologies for measuring student outcomes and 
                program strengths in the areas of academic enrichment, 
                socialization, independent living, and competitive or 
                supported employment;
                  ``(D) assist recipients of grants under section 732 
                in efforts to award a meaningful credential to students 
                with intellectual disabilities upon the completion of 
                such programs, which credential shall take into 
                consideration unique State factors;
                  ``(E) develop recommendations for the necessary 
                components of such programs, such as--
                          ``(i) academic, vocational, social, and 
                        independent living skills;
                          ``(ii) evaluation of student progress;
                          ``(iii) program administration and 
                        evaluation;
                          ``(iv) student eligibility; and
                          ``(v) issues regarding the equivalency of a 
                        student's participation in such programs to 
                        semester, trimester, quarter, credit, or clock 
                        hours at an institution of higher education, as 
                        the case may be;
                  ``(F) analyze possible funding sources for such 
                programs and provide recommendations to such programs 
                regarding potential funding sources;
                  ``(G) develop model memoranda of agreement for use 
                between or among institutions of higher education and 
                State and local agencies providing funding for such 
                programs;
                  ``(H) develop mechanisms for regular communication, 
                outreach, and dissemination of information about 
                comprehensive transition and postsecondary programs for 
                students with intellectual disabilities under section 
                732 between or among such programs and to families and 
                prospective students;
                  ``(I) host a meeting of all recipients of grants 
                under section 732 not less often than once every 3 
                years; and
                  ``(J) convene a workgroup to develop and recommend 
                model criteria, standards, and components of such 
                programs as described in subparagraph (E) that are 
                appropriate for the development of accreditation 
                standards, which workgroup shall include--
                          ``(i) an expert in higher education;
                          ``(ii) an expert in special education;
                          ``(iii) a representative of a disability 
                        organization that represents students with 
                        intellectual disabilities;
                          ``(iv) a representative from the National 
                        Advisory Committee on Institutional Quality and 
                        Integrity; and
                          ``(v) a representative of a regional or 
                        national accreditation agency or association.
          ``(6) Report.--Not less often than once every 5 years, the 
        coordinating center shall report to the Secretary, the 
        authorizing committees, and the National Advisory Committee on 
        Institutional Quality and Integrity on the recommendations of 
        the workgroup described in paragraph (5)(J).

``SEC. 735. ACCESSIBLE INSTRUCTIONAL MATERIALS IN HIGHER EDUCATION.

  ``(a) Commission Structure.--
          ``(1) Establishment of commission.--
                  ``(A) In general.--The Speaker of the House of 
                Representatives, the President pro tempore of the 
                Senate, and the Secretary of Education shall establish 
                an independent commission, comprised of key 
                stakeholders, to develop voluntary guidelines for 
                accessible postsecondary electronic instructional 
                materials and related technologies in order--
                          ``(i) to ensure students with disabilities 
                        are afforded the same educational benefits 
                        provided to nondisabled students through the 
                        use of electronic instructional materials and 
                        related technologies;
                          ``(ii) to inform better the selection and use 
                        of such materials and technologies at 
                        institutions of higher education; and
                          ``(iii) to encourage entities that produce 
                        such materials and technologies to make 
                        accessible versions more readily available in 
                        the market.
                In fulfilling this duty, the commission shall review 
                applicable national and international information 
                technology accessibility standards, which it will 
                compile and annotate as an additional information 
                resource for institutions of higher education and 
                companies that service the higher education market.
                  ``(B) Membership.--
                          ``(i) Stakeholder groups.--The commission 
                        shall be composed of representatives from the 
                        following categories:
                                  ``(I) Disability.--Communities of 
                                persons with disabilities for whom the 
                                accessibility of postsecondary 
                                electronic instructional materials and 
                                related technologies is a significant 
                                factor in ensuring equal participation 
                                in higher education, and nonprofit 
                                organizations that provide accessible 
                                electronic materials to these 
                                communities.
                                  ``(II) Higher education.--Higher 
                                education leadership, which includes: 
                                university presidents, provosts, deans, 
                                vice presidents, deans of libraries, 
                                chief information officers, and other 
                                senior institutional executives.
                                  ``(III) Industry.--Relevant industry 
                                representatives, meaning--
                                          ``(aa) developers of 
                                        postsecondary electronic 
                                        instructional materials; and
                                          ``(bb) manufacturers of 
                                        related technologies.
                          ``(ii) Appointment of members.--The 
                        commission members shall be appointed as 
                        follows:
                                  ``(I) Six members, 2 from each 
                                category described in clause (i), shall 
                                be appointed by the Speaker of the 
                                House of Representatives, 3 of whom 
                                shall be appointed on the 
                                recommendation of the majority leader 
                                of the House of Representatives and 3 
                                of whom shall be appointed on the 
                                recommendation of the minority leader 
                                of the House of Representatives, with 
                                the Speaker ensuring that 1 developer 
                                of postsecondary electronic 
                                instructional materials and 1 
                                manufacturer of related technologies 
                                are appointed. The Speaker shall also 
                                appoint 2 additional members, 1 student 
                                with a disability and 1 faculty member 
                                from an institution of higher 
                                education.
                                  ``(II) Six members, 2 from each 
                                category described in clause (i), shall 
                                be appointed by the President pro 
                                tempore of the Senate, 3 of whom shall 
                                be appointed on the recommendation of 
                                the majority leader of the Senate and 3 
                                of whom shall be appointed on the 
                                recommendation of the minority leader 
                                of the Senate, with the President pro 
                                tempore ensuring that 1 developer of 
                                postsecondary electronic instructional 
                                materials and 1 manufacturer of related 
                                technologies are appointed. The 
                                President pro tempore shall also 
                                appoint 2 additional members, 1 student 
                                with a disability and 1 faculty member 
                                from an institution of higher 
                                education.
                                  ``(III) Three members, each of whom 
                                must possess extensive, demonstrated 
                                technical expertise in the development 
                                and implementation of accessible 
                                postsecondary electronic instructional 
                                materials, shall be appointed by the 
                                Secretary of Education. One of these 
                                members shall represent postsecondary 
                                students with disabilities, 1 shall 
                                represent higher education leadership, 
                                and 1 shall represent developers of 
                                postsecondary electronic instructional 
                                materials.
                          ``(iii) Eligibility to serve on the 
                        commission.--Federal employees are ineligible 
                        for appointment to the commission. An appointee 
                        to a volunteer or advisory position with a 
                        Federal agency or related advisory body may be 
                        appointed to the commission so long as his or 
                        her primary employment is with a non-Federal 
                        entity and he or she is not otherwise engaged 
                        in financially compensated work on behalf of 
                        the Federal Government, exclusive of any 
                        standard expense reimbursement or grant-funded 
                        activities.
          ``(2) Authority and administration.--
                  ``(A) Authority.--The commission's execution of its 
                duties shall be independent of the Secretary of 
                Education, the Attorney General, and the head of any 
                other agency or department of the Federal Government 
                with regulatory or standard setting authority in the 
                areas addressed by the commission.
                  ``(B) Administration.--
                          ``(i) Staffing.--There shall be no permanent 
                        staffing for the commission.
                          ``(ii) Leadership.--Commission members shall 
                        elect a chairperson from among the 19 
                        appointees to the commission.
                          ``(iii) Administrative support.--The 
                        Commission shall be provided administrative 
                        support, as needed, by the Secretary of 
                        Education through the Office of Postsecondary 
                        Education of the Department of Education.
                  ``(C) Termination.--The Commission shall terminate on 
                the day after the date on which the Commission issues 
                the voluntary guidelines and annotated list of 
                information technology standards described in 
                subsection (b), or two years from the date of enactment 
                of the PROSPER Act, whichever comes first.
  ``(b) Duties of the Commission.--
          ``(1) Produce voluntary guidelines.--Not later than 18 months 
        after the date of enactment of the PROSPER Act, subject to a 6-
        month extension that it may exercise at its discretion, the 
        commission established in subsection (a) shall--
                  ``(A) develop and issue voluntary guidelines for 
                accessible postsecondary electronic instructional 
                materials and related technologies; and
                  ``(B) in developing the voluntary guidelines, the 
                commission shall--
                          ``(i) establish a technical panel pursuant to 
                        paragraph (4) to support the commission in 
                        developing the voluntary guidelines;
                          ``(ii) develop criteria for determining which 
                        materials and technologies constitute 
                        `postsecondary electronic instructional 
                        materials' and `related technologies' as 
                        defined in subparagraphs (D) and (E) of 
                        subsection (f);
                          ``(iii) identify existing national and 
                        international accessibility standards that are 
                        relevant to student use of postsecondary 
                        electronic instructional materials and related 
                        technologies at institutions of higher 
                        education;
                          ``(iv) identify and address any unique 
                        pedagogical and accessibility requirements of 
                        postsecondary electronic instructional 
                        materials and related technologies that are not 
                        addressed, or not adequately addressed, by the 
                        identified, relevant existing accessibility 
                        standards;
                          ``(v) identify those aspects of 
                        accessibility, and types of postsecondary 
                        instructional materials and related 
                        technologies, for which the commission cannot 
                        produce guidelines or which cannot be addressed 
                        by existing accessibility standards due to--
                                  ``(I) inherent limitations of 
                                commercially available technologies; or
                                  ``(II) the challenges posed by a 
                                specific category of disability that 
                                covers a wide spectrum of impairments 
                                and capabilities which makes it 
                                difficult to assess the benefits from 
                                particular guidelines on a categorical 
                                basis;
                          ``(vi) ensure that the voluntary guidelines 
                        are consistent with the requirements of section 
                        504 of the Rehabilitation Act of 1973 (29 
                        U.S.C. 794) and titles II and III of the 
                        Americans with Disabilities Act (42 U.S.C. 
                        12131 et seq.; 42 U.S.C. 12181 et seq.);
                          ``(vii) ensure that the voluntary guidelines 
                        are consistent, to the extent feasible and 
                        appropriate, with the technical and functional 
                        performance criteria included in the national 
                        and international accessibility standards 
                        identified by the commission as relevant to 
                        student use of postsecondary electronic 
                        instructional materials and related 
                        technologies;
                          ``(viii) allow for the use of an alternative 
                        design or technology that results in 
                        substantially equivalent or greater 
                        accessibility and usability by individuals with 
                        disabilities than would be provided by 
                        compliance with the voluntary guidelines; and
                          ``(ix) provide that where electronic 
                        instructional materials or related technologies 
                        that comply fully with the voluntary guidelines 
                        are not commercially available, or where such 
                        compliance is not technically feasible, the 
                        institution may select the product that best 
                        meets the voluntary guidelines consistent with 
                        the institution's business and pedagogical 
                        needs.
          ``(2) Produce annotated list of information technology 
        standards.--Not later than 18 months after the date of the 
        enactment of the PROSPER Act, subject to a 6-month extension 
        that it may exercise at its discretion, the commission 
        established in subsection (a) shall, with the assistance of the 
        technical panel established under paragraph (4), develop and 
        issue an annotated list of information technology standards.
          ``(3) Supermajority approval.--Issuance of the voluntary 
        guidelines and annotated list of information technology 
        standards shall require approval of at least 75 percent (at 
        least 15) of the 19 members of the commission.
          ``(4) Establishment of technical panel.--Not later than 1 
        month after the Commission's first meeting, it shall appoint 
        and convene a panel of 12 technical experts, each of whom shall 
        have extensive, demonstrated technical experience in 
        developing, researching, or implementing accessible 
        postsecondary electronic instructional materials or related 
        technologies. The commission has discretion to determine a 
        process for nominating, vetting, and confirming a panel of 
        experts that fairly represents the stakeholder communities on 
        the commission. The technical panel shall include a 
        representative from the United States Access Board.
  ``(c) Periodic Review and Revision of Voluntary Guidelines.--Not 
later than 5 years after issuance of the voluntary guidelines and 
annotated list of information technology standards described in 
paragraphs (1) and (2) of section (b), and every 5 years thereafter, 
the Secretary of Education shall publish a notice in the Federal 
Register requesting public comment about whether there is a need to 
reconstitute the commission to update the voluntary guidelines and 
annotated list of information technology standards to reflect 
technological advances, changes in postsecondary electronic 
instructional materials and related technologies, or updated national 
and international accessibility standards. The Secretary shall submit a 
report to Congress summarizing the public comments and presenting the 
Secretary's decision on whether to reconstitute the commission based on 
those comments. If the Secretary decides to reconstitute the 
commission, the Secretary may implement that decision 30 days after the 
date on which the report was submitted to Congress. That process shall 
begin with the Secretary requesting the appointment of commission 
members as detailed in subsection (a)(1)(B)(ii). If the Secretary 
reconstitutes the Commission, the Commission shall terminate on the day 
after the date on which the Commission issues updated voluntary 
guidelines and annotated list of information technology standards, or 
two years from the date on which the Secretary reconstitutes the 
Commission, whichever comes first.
  ``(d) Safe Harbor Protections.--The following defenses from liability 
may be asserted with respect to claims regarding the use of 
postsecondary instructional materials and related technologies arising 
under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and 
titles II and III of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12131 et seq. and 12181 et seq.), subject to the judicial review 
afforded under those Acts and without limiting any other defenses 
provided under those Acts:
          ``(1) Safe harbor for conforming postsecondary electronic 
        instructional materials and related technologies.--An 
        institution of higher education that requires, provides, or 
        both recommends and provides, postsecondary electronic 
        instructional materials or related technologies that conform to 
        the voluntary guidelines shall be deemed in compliance with, 
        and qualify for a safe harbor from liability in relation to, 
        its obligations under section 504 of the Rehabilitation Act of 
        1973 (29 U.S.C. 794) and titles II and III of the Americans 
        with Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 12181 
        et seq.) with respect to its selection of such materials or 
        technologies.
          ``(2) Limited safe harbor for nonconforming postsecondary 
        electronic instructional materials or related technologies.--An 
        institution of higher education that requires, provides, or 
        both recommends and provides, postsecondary electronic 
        instructional materials or related technologies that do not 
        fully conform with the voluntary guidelines, but which 
        institution otherwise complies with all requirements set forth 
        in subparagraphs (A), (B), and (C), will qualify for a limited 
        safe harbor from monetary damages under section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II and 
        III of the Americans with Disabilities Act (42 U.S.C. 12131 et 
        seq.; 42 U.S.C. 12181 et seq.), with available remedies under 
        section 505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a), 
        section 103 of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12133), and section 308 of such Act (42 U.S.C. 12188) 
        limited to declaratory and injunctive relief, and for a 
        prevailing party other than the United States, a reasonable 
        attorney's fee, if the institution--
                  ``(A) documented its efforts to incorporate and use 
                the voluntary guidelines in its policies and practices 
                regarding its selection or procurement of postsecondary 
                electronic instructional materials and related 
                technologies. These efforts may include establishment 
                of a written policy regarding the institution's use of 
                the voluntary guidelines, identifying the official(s) 
                authorized to approve the selection of nonconforming 
                postsecondary electronic instructional materials or 
                related technologies, and procedures used by the 
                official(s) when making such authorizations;
                  ``(B) documented instances where nonconforming 
                postsecondary electronic instructional materials or 
                related technologies are selected or procured, 
                including an explanation of--
                          ``(i) the process utilized for identifying 
                        accessible options in the marketplace;
                          ``(ii) the options considered, if any are 
                        available;
                          ``(iii) the choice the institution ultimately 
                        made and why;
                          ``(iv) what auxiliary aid or service, 
                        reasonable modification, or other method the 
                        institution will utilize to ensure that 
                        affected students within categories of 
                        disability are afforded the rights to which 
                        they are entitled under section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 794) and 
                        titles II and III of the Americans with 
                        Disabilities Act (42 U.S.C. 12131 et seq.; 42 
                        U.S.C. 12181 et seq.), including an equally 
                        effective opportunity to receive the same 
                        educational benefit as afforded to nondisabled 
                        students; and
                          ``(v) where a student or students with 
                        disabilities are affected by nonconforming 
                        instructional materials or related 
                        technologies, what auxiliary aid or service, 
                        reasonable modification, or other method the 
                        institution is using to ensure the student or 
                        students are afforded the rights described in 
                        clause (iv); and
                  ``(C) posted a link to an accessible copy of the 
                voluntary guidelines and annotated list of information 
                technology standards on a publicly available page of 
                its website.
  ``(e) Construction.--
          ``(1) Nonconforming postsecondary electronic instructional 
        materials or related technologies.--Nothing in this section 
        shall be construed to require an institution of higher 
        education to require, provide, or both recommend and provide, 
        postsecondary electronic instructional materials or related 
        technologies that conform to the voluntary guidelines. However, 
        an institution that selects or uses nonconforming postsecondary 
        electronic instructional materials or related technologies must 
        otherwise comply with existing obligations under section 504 of 
        the Rehabilitation Act of 1973 (29 U.S.C. 794) and titles II 
        and III of the Americans with Disabilities Act (42 U.S.C. 12131 
        et seq.; 42 U.S.C. 12181 et seq.) to provide access to the 
        educational benefit afforded by such materials and technologies 
        through provision of appropriate and reasonable modification, 
        accommodation, and auxiliary aids or services.
          ``(2) Relationship to existing laws and regulations.--With 
        respect to the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.) and the Rehabilitation Act of 1973 (29 
        U.S.C. 701 et seq.), except as provided in subsection (d), 
        nothing in this section may be construed--
                  ``(A) to authorize or require conduct prohibited 
                under the Americans with Disabilities Act of 1990 and 
                the Rehabilitation Act of 1973, including the 
                regulations issued pursuant to those laws;
                  ``(B) to expand, limit, or alter the remedies or 
                defenses under the Americans with Disabilities Act of 
                1990 and the Rehabilitation Act of 1973;
                  ``(C) to supersede, restrict, or limit the 
                application of the Americans with Disabilities Act of 
                1990 and the Rehabilitation Act of 1973; or
                  ``(D) to limit the authority of Federal agencies to 
                issue regulations pursuant to the Americans with 
                Disabilities Act of 1990 and the Rehabilitation Act of 
                1973.
          ``(3) Voluntary nature of the products of the commission.--
                  ``(A) Voluntary guidelines.--It is the intent of the 
                Congress that use of the voluntary guidelines developed 
                pursuant to this section is and should remain 
                voluntary. The voluntary guidelines shall not confer 
                any rights or impose any obligations on commission 
                participants, institutions of higher education, or 
                other persons, except for the legal protections set 
                forth in subsection (d). Thus, no department or agency 
                of the Federal Government may incorporate the voluntary 
                guidelines, whether produced as a discrete document or 
                electronic resource, into regulations promulgated under 
                the Rehabilitation Act, the Americans with Disabilities 
                Act, or any other Federal law or instrument. This 
                restriction applies only to the voluntary guidelines as 
                a discrete document or resource; it imposes no 
                limitation on Federal use of standards or resources to 
                which the voluntary guidelines may refer.
                  ``(B) Annotated list.--It is the intent of Congress 
                that use of the annotated list of information 
                technology standards developed pursuant to this section 
                is and should remain voluntary. The Annotated List 
                shall not confer any rights or impose any obligations 
                on Commission participants, institutions of higher 
                education, or other persons. Thus, no department or 
                agency of the Federal Government may incorporate the 
                Annotated List, whether produced as a discrete document 
                or electronic resource into regulations promulgated 
                under the Rehabilitation Act, the Americans with 
                Disabilities Act, or any other Federal law or 
                instrument. This provision applies only to the 
                Annotated List as a discrete document or resource; it 
                imposes no limitation on Federal use of standards or 
                resources to which the Annotated List may refer.
  ``(f) Definitions.--In this section, the following definitions apply:
          ``(1) Annotated list of information technology standards.--
        The term `annotated list of information technology standards' 
        means a list of existing national and international 
        accessibility standards relevant to student use of 
        postsecondary electronic instructional materials and related 
        technologies, and to other types of information technology 
        common to institutions of higher education (such as 
        institutional websites and class registration systems), 
        annotated by the commission established pursuant to subsection 
        (a) to provide information about the applicability of such 
        standards in higher education settings. The annotated list of 
        information technology standards is intended to serve solely as 
        a reference tool to inform any consideration of the relevance 
        of such standards in higher education contexts.
          ``(2) Disability.--The term `disability' has the meaning 
        given such term in section 3 of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12102).
          ``(3) Nonconforming postsecondary electronic instructional 
        materials or related technologies.--The term `nonconforming 
        materials or related technologies' means postsecondary 
        electronic instructional materials or related technologies that 
        do not conform to the voluntary guidelines to be developed 
        pursuant to this subpart.
          ``(4) Postsecondary electronic instructional materials.--The 
        term `postsecondary electronic instructional materials' means 
        digital curricular content that is required, provided, or both 
        recommended and provided by an institution of higher education 
        for use in a postsecondary instructional program.
          ``(5) Related technologies.--The term `related technologies' 
        refers to any software, applications, learning management or 
        content management systems, and hardware that an institution of 
        higher education requires, provides, or both recommends and 
        provides for student access to and use of postsecondary 
        electronic instructional materials in a postsecondary 
        instructional program.
          ``(6) Technical panel.--The term `technical panel' means a 
        group of experts with extensive, demonstrated technical 
        experience in the development and implementation of 
        accessibility features for postsecondary electronic 
        instructional materials and related technologies, established 
        by the Commission pursuant to subsection (b)(4), which will 
        assist the commission in the development of the voluntary 
        guidelines and annotated list of information technology 
        standards authorized under this subpart.
          ``(7) Voluntary guidelines.--The term `voluntary guidelines' 
        means a set of technical and functional performance criteria to 
        be developed by the commission established pursuant to 
        subsection (a) that provide specific guidance regarding both 
        the accessibility and pedagogical functionality of 
        postsecondary electronic instructional materials and related 
        technologies not addressed, or not adequately addressed, by 
        existing accessibility standards.''.
          (5) Authorization of appropriations.--Section 736, as so 
        redesignated by paragraph (3), is amended--
                  (A) in subsection (a), by striking ``such sums as may 
                be necessary for fiscal year 2009'' and inserting 
                ``$11,800,000 for fiscal year 2019''; and
                  (B) by striking subsection (b) and inserting the 
                following:
  ``(b) Reservation of Funds.--For any fiscal year for which 
appropriations are made for this subpart, the Secretary--
          ``(1) shall reserve funds to enter into a cooperative 
        agreement to establish the coordinating center under section 
        734, in an amount that is equal to--
                  ``(A) not less than $240,000 for any year in which 
                the amount appropriated to carry out this subpart is 
                $8,000,000 or less; or
                  ``(B) equal to 3 percent of the amount appropriated 
                to carry out this subpart for any year in which such 
                amount appropriated is greater than $8,000,000; and
          ``(2) may reserve funds to award the grant, contract, or 
        cooperative agreement described in section 742.''.
  (c) National Technical Assistance Center.--
          (1) Subpart heading.--The subpart heading for subpart 2 of 
        part B of title VII (20 U.S.C. 1140p et seq.), as redesignated 
        by subsection (a), is amended by striking ``; Coordinating 
        Center''.
          (2) Purpose.--Section 776 (20 U.S.C. 1140p) is amended--
                  (A) by redesignating such section as section 741 of 
                such Act; and
                  (B) by striking ``grants, contracts, or cooperative 
                agreements under subpart 1, 2, or 3'' and inserting 
                ``grants or a cooperative agreement under subpart 1''.
          (3) National technical assistance.--Section 777 (20 U.S.C. 
        1140q) is amended--
                  (A) by redesignating such section as section 742 of 
                such Act;
                  (B) in the section heading, by striking ``; 
                coordinating center'';
                  (C) in subsection (a)(1), by striking ``appropriated 
                under section 778'' and inserting ``reserved under 
                section 736(b)(2)'';
                  (D) by amending subsection (a)(3)(D) to read as 
                follows:
                  ``(D) the subject supported by the grants or 
                cooperative agreement authorized in subpart 1.'';
                  (E) in subsection (a)(4)(A)(ii), by striking 
                ``subparts 2, 4, and 5'' and inserting ``subparts 2 and 
                5''; and
                  (F) in subsection (a)(4)(B), by striking ``grants, 
                contracts, or cooperative agreements authorized under 
                subparts 1, 2, and 3'' each place it appears and 
                inserting ``grants and cooperative agreement authorized 
                under subpart 1''.
          (4) Authorization of appropriations.--Section 778 (20 U.S.C. 
        1140r) is repealed.

SEC. 704. REPEAL OF COLLEGE ACCESS CHALLENGE GRANT PROGRAM.

   Part E of title VII (20 U.S.C. 1141) is repealed.

                       TITLE VIII--OTHER REPEALS

SEC. 801. REPEAL OF ADDITIONAL PROGRAMS.

  (a) Higher Education Act of 1965.--Title VIII of the Higher Education 
Act of 1965 (20 U.S.C. 1161a et seq.) is repealed.
  (b) Higher Education Opportunity Act.--The Higher Education 
Opportunity Act (Public Law 110-315; 122 Stat. 3078 et seq.) is amended 
by repealing sections 802 and 803.
  (c) Higher Education Amendments of 1998.--The Higher Education 
Amendments of 1998 (Public Law 105-244; 112 Stat. 1581 et seq.) is 
amended by repealing parts D and H of title VIII.
  (d) Higher Education Amendments of 1992.--The Higher Education 
Amendments of 1992 (Public Law 102-325; 106 Stat. 448 et seq.) is 
amended by repealing part E of title XV.

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               PART A--EDUCATION OF THE DEAF ACT OF 1986

SEC. 901. EDUCATION OF THE DEAF ACT OF 1986.

  (a) Board of Trustees.--Section 103(a)(1) of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4303(a)(1)) is amended--
          (1) in the matter preceding subparagraph (A), by striking 
        ``twenty-one'' and inserting ``twenty-three'';
          (2) in subparagraph (A)--
                  (A) by striking ``three public'' and inserting ``four 
                public'';
                  (B) by striking ``one shall'' and all that follows 
                through ``, and'' and inserting ``two shall be United 
                States Senators, of whom one shall be appointed by the 
                Majority Leader of the Senate and one shall be 
                appointed by the Minority Leader of the Senate, and''; 
                and
                  (C) by striking ``appointed by the Speaker of the 
                House of Representatives'' and inserting ``, of whom 
                one shall be appointed by the Speaker of the House of 
                Representatives and one shall be appointed by the 
                Minority Leader of the House of Representatives''; and
          (3) in subparagraph (B), by striking ``eighteen'' and 
        inserting ``nineteen''.
  (b) Laurent Clerc National Deaf Education Center.--Section 104(b)(5) 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4304(b)(5)) is 
amended to read as follows:
          ``(5) The University, for purposes of the elementary and 
        secondary education programs carried out by the Clerc Center, 
        shall--
                  ``(A)(i)(I) provide an assurance to the Secretary 
                that it has adopted and is implementing challenging 
                State academic standards that meet the requirements of 
                section 1111(b)(1) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6311(b)(1));
                  ``(II) demonstrate to the Secretary that the 
                University is implementing a set of high-quality 
                student academic assessments in mathematics, reading or 
                language arts, and science, and any other subjects 
                chosen by the University, that meet the requirements of 
                section 1111(b)(2) of such Act (20 U.S.C. 6311(b)(2)); 
                and
                  ``(III) demonstrate to the Secretary that the 
                University is implementing an accountability system 
                consistent with section 1111(c) of such Act (20 U.S.C. 
                6311(c)); or
                  ``(ii)(I) select the challenging State academic 
                standards and State academic assessments of a State, 
                adopted and implemented, as appropriate, pursuant to 
                paragraphs (1) and (2) of section 1111(b) of such Act 
                (20 U.S.C. 6311(b)); and
                  ``(II) adopt the accountability system, consistent 
                with section 1111(c) of such Act (20 U.S.C. 6311(c)), 
                of such State; and
                  ``(B) publicly report, except in a case in which such 
                reporting would not yield statistically reliable 
                information or would reveal personally identifiable 
                information about an individual student--
                          ``(i) the results of the academic assessments 
                        implemented under subparagraph (A); and
                          ``(ii) the results of the annual evaluation 
                        of the programs at the Clerc Center, as 
                        determined using the accountability system 
                        adopted under subparagraph (A).''.
  (c) Repeal of Cultural Experiences Grants Program.--Part C of title I 
of the Education of the Deaf Act of 1986 (20 U.S.C. 4341) is repealed.
  (d) Repeal of Authorization of Appropriations for Monitoring and 
Evaluation.--Subsection (c) of section 205 of the Education of the Deaf 
Act of 1986 (20 U.S.C. 4355(c)) is repealed.
  (e) Federal Endowment Funds.--Section 207 of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4357) is amended--
          (1) in the heading of subsection (b), by striking ``Federal 
        Payments'' and inserting ``Payments'';
          (2) in subsection (b), by striking paragraphs (1) and (2) and 
        inserting the following:
          ``(1) From amounts provided by the Secretary from funds 
        appropriated under subsections (a) and (b) of section 212, 
        respectively, the University and NTID may make payments, in 
        accordance with this section, to the Federal endowment fund of 
        the institution involved.
          ``(2) Subject to paragraph (3), in any fiscal year, the total 
        amount of payments made under paragraph (1) to the Federal 
        endowment fund may not exceed the total amount contributed to 
        the fund from non-Federal sources during such fiscal year.
          ``(3) For purposes of paragraph (2), the transfer of funds by 
        an institution involved to the Federal endowment fund from 
        another endowment fund of such institution shall not be 
        considered a contribution from a non-Federal source.'';
          (3) in subsection (e), by striking ``Federal payment'' and 
        inserting ``payment under subsection (b)'';
          (4) in subsection (f), in the matter preceding paragraph (1), 
        by striking ``Federal payments'' and inserting ``payments'';
          (5) in subsection (g)(1), by striking ``Federal payments to 
        such fund'' and inserting ``payments made under subsection 
        (b)'';
          (6) by repealing subsection (h); and
          (7) by redesignating subsection (i) as subsection (h).
  (f) Repeal of National Study.--Section 211 of the Education of the 
Deaf Act of 1986 (20 U.S.C. 4360) is repealed.
  (g) Authorization of Appropriations.--Section 212 of the Education of 
the Deaf Act of 1986 (20 U.S.C. 4360a) is amended--
          (1) in subsection (a), by striking ``such sums as may be 
        necessary for each of the fiscal years 2009 through 2014'' and 
        inserting ``$121,275,000 for each of the fiscal years 2019 
        through 2024''; and
          (2) in subsection (b), by striking ``such sums as may be 
        necessary for each of the fiscal years 2009 through 2014'' and 
        inserting ``$70,016,000 for each of the fiscal years 2019 
        through 2024''.
  (h) Technical Amendments.--The Education of the Deaf Act of 1986 is 
further amended--
          (1) in section 112(b)(3) (20 U.S.C. 4332(b)(3)), by striking 
        ``Education and Labor'' and inserting ``Education and the 
        Workforce'';
          (2) in section 203 (20 U.S.C. 4353)--
                  (A) in the heading of subsection (a), by striking 
                ``General Accounting'' and inserting ``Government 
                Accountability'';
                  (B) in subsection (a), by striking ``General 
                Accounting'' and inserting ``Government 
                Accountability'';
                  (C) in subsection (b)(3), by striking ``Education and 
                Labor'' and inserting ``Education and the Workforce''; 
                and
                  (D) in subsection (c)(2)(A), by striking ``Education 
                and Labor'' and inserting ``Education and the 
                Workforce'';
          (3) in section 204 (20 U.S.C. 4354), by striking ``Education 
        and Labor'' and inserting ``Education and the Workforce'';
          (4) in section 208(a) (20 U.S.C. 4359(a)), by striking 
        ``Education and Labor'' and inserting ``Education and the 
        Workforce''; and
          (5) in section 210(b) (20 U.S.C. 4359b(b)), by striking 
        ``Education and Labor'' and inserting ``Education and the 
        Workforce''.

PART B--TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF 
                        1978; DINE' COLLEGE ACT

SEC. 911. TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT 
                    OF 1978.

  (a) Definitions.--Section 2 of the Tribally Controlled Colleges and 
Universities Assistance Act of 1978 (25 U.S.C. 1801) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (7), by adding ``and'' at the end;
                  (B) in paragraph (8), by striking ``; and'' and 
                inserting a period; and
                  (C) by striking paragraph (9); and
          (2) in subsection (b)--
                  (A) by amending paragraph (1) to read as follows:
          ``(1) Such number shall be calculated based on the number of 
        Indian students who are enrolled--
                  ``(A) at the conclusion of the third week of each 
                academic term; or
                  ``(B) on the fifth day of a shortened program 
                beginning after the conclusion of the third full week 
                of an academic term.'';
                  (B) in paragraph (3), by striking ``for purposes of 
                obtaining'' and inserting ``solely for the purpose of 
                obtaining''; and
                  (C) by inserting after paragraph (5), the following:
          ``(6) Enrollment data from the prior-prior academic year 
        shall be used.''.
  (b) Authorization of Appropriations.--The Tribally Controlled 
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1801 et 
seq.) is amended by inserting after section 2 (25 U.S.C. 1801), the 
following:

``SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) Titles I and IV.--There are authorized to be appropriated 
$57,412,000 for each of fiscal years 2019 through 2024 to carry out 
titles I and IV.
  ``(b) Title V.--There are authorized to be appropriated $7,414,000 
for each of fiscal years 2019 through 2024 to carry out title V.''.''.
  (c) Repeal of Planning Grants.--Section 104 of the Tribally 
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 
1804a) is repealed.
  (d) Grants to Tribally Controlled Colleges and Universities.--Section 
107 of the Tribally Controlled Colleges and Universities Assistance Act 
of 1978 (25 U.S.C. 1807) is amended--
          (1) by striking subsection (c); and
          (2) by redesignating subsection (d) as subsection (c).
  (e) Amount of Grants.--Section 108(b)(1) of the Tribally Controlled 
Colleges and Universities Assistance Act of 1978 (25 U.S.C. 1808(b)(1)) 
is amended--
          (1) by striking ``of the funds available for allotment by 
        October 15 or no later than 14 days after appropriations become 
        available'' and inserting `` of the amounts appropriated for 
        any fiscal year on or before July 1 of that fiscal year''; and
          (2) by striking ``January 1'' and inserting ``September 30'';
  (f) Authorization of Appropriations.--Section 110(a) of the Tribally 
Controlled Colleges and Universities Assistance Act of 1978 (25 U.S.C. 
1810(a)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``$3,200,000 for fiscal year 2009 
                and'';
                  (B) by striking ``for each of the five succeeding 
                fiscal years''; and
                  (C) by inserting ``from the amount made available 
                under section 3(a) for each fiscal year'' after 
                ``necessary'';
          (2) in paragraph (2), by striking ``for fiscal year 2009'' 
        and all that follows through the period at the end and 
        inserting ``from the amount made available under section 3(a) 
        for each fiscal year.'';
          (3) in paragraph (3), by striking ``for fiscal year 2009'' 
        and all that follows through the period at the end and 
        inserting ``from the amount made available under section 3(a) 
        for each fiscal year.''; and
          (4) in paragraph (4), by striking ``2009'' and inserting 
        ``2019''.
  (g) Rules and Regulations.--The Tribally Controlled Colleges and 
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended 
by striking section 115 (25 U.S.C. 1815).
  (h) Repeal of Endowment Program.--
          (1) Repeal.--Title III of the Tribally Controlled Colleges 
        and Universities Assistance Act of 1978 (25 U.S.C. 1831 et 
        seq.) is repealed.
          (2) Transition.--
                  (A) In general.--Subject to subparagraph (B), title 
                III of the Tribally Controlled Colleges and 
                Universities Assistance Act of 1978 (25 U.S.C. 1831 et 
                seq.), as such title was in effect on the day before 
                the date of the enactment of this Act, shall apply with 
                respect to any endowment fund established or funded 
                under such title before such date of enactment, except 
                that the Secretary of the Interior may not make any 
                grants or Federal capital contributions under such 
                title after such date.
                  (B) Termination.--Subparagraph (A) shall terminate on 
                the date that is 20 years after the date of the 
                enactment of this Act. On or after such date, a 
                tribally controlled college or university may use the 
                corpus (including the Federal and institutional capital 
                contribution) of any endowment fund described in such 
                subparagraph to pay any expenses relating to the 
                operation or academic programs of such college or 
                university.
  (i) Tribal Economic Development; Authorization of Appropriations.--
Section 403 of the Tribally Controlled Colleges and Universities 
Assistance Act of 1978 (25 U.S.C. 1852) is amended by striking ``for 
fiscal year 2009'' and all that follows through the period at the end 
and inserting ``from the amount made available under section 3(a) for 
each fiscal year.''.
  (j) Tribally Controlled Postsecondary Career and Technical 
Institutions.--Section 504 of the Tribally Controlled Colleges and 
Universities Assistance Act of 1978 (25 U.S.C. 1864) is amended by 
striking ``for fiscal year 2009'' and all that follows through the 
period at the end and inserting ``from the amount made available under 
section 3(b) for each fiscal year.''
  (k) Clerical Amendments.--The Tribally Controlled Colleges and 
Universities Assistance Act of 1978 (25 U.S.C. 1801 et seq.), as 
amended by subsections (a) through (j), is further amended--
          (1) by striking ``Bureau of Indian Affairs'' each place it 
        appears and inserting ``Bureau of Indian Education'';
          (2) by striking ``Navajo Community College Act'' each place 
        it appears and inserting ``Dine' College Act'';
          (3) by striking ``colleges or universities'' each place it 
        appears, including in headings, and inserting ``colleges and 
        universities''; and
          (4) in section 109 (25 U.S.C. 1809), by redesignating the 
        second subsection (c) as subsection (d).

SEC. 912. DINE' COLLEGE ACT.

  (a) Short Title.--The first section of Public Law 92-189 is amended 
by striking ``this Act may be cited as the `Navajo Community College 
Act''' and inserting ``this Act may be cited as the `Dine' College 
Act'''.
  (b) References.--Any reference to the Navajo Community College Act in 
any law (other than this Act), regulation, map, document, record, or 
other paper of the United States shall be deemed to be a reference to 
the Dine' College Act.
  (c) Authorization of Appropriations.--Section 5 of Public Law 92-189 
is amended--
          (1) in subsection (a)(1), by striking ``for fiscal years 2009 
        through 2014'' and inserting ``from the amount made available 
        under subsection (b)(1) for each fiscal year''; and
          (2) in subsection (b)(1), by striking ``such sums as are 
        necessary for fiscal years 2009 through 2014'' and inserting 
        ``$13,600,000 for each of fiscal years 2019 through 2024''.

                PART C--GENERAL EDUCATION PROVISIONS ACT

SEC. 921. RELEASE OF EDUCATION RECORDS TO FACILITATE THE AWARD OF A 
                    RECOGNIZED POSTSECONDARY CREDENTIAL.

  Section 444(b) of the General Education Provisions Act (20 U.S.C. 
1232g(b)) is amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (K)(ii), by striking ``; and'' 
                and inserting a semicolon; and
                  (B) in subparagraph (L), by striking the period at 
                the end and inserting ``; and''; and
          (2) by inserting after subparagraph (L) the following:
          ``(M) an institution of postsecondary education in which the 
        student was previously enrolled, to which records of 
        postsecondary coursework and credits are sent for the purpose 
        of applying such coursework and credits toward completion of a 
        recognized postsecondary credential (as that term is defined in 
        section 3 of the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3102)), upon condition that the student provides written 
        consent prior to receiving such credential.''.

                                Purpose

    H.R. 4508, the Promoting Real Opportunity, Success, and 
Prosperity through Education Reform Act (PROSPER Act), amends 
the Higher Education Act of 1965 to support students in 
completing an affordable postsecondary education that will 
prepare them to enter the workforce with the skills they need 
for lifelong success. The PROSPER Act will reform the 
postsecondary education system by promoting innovation, access, 
and completion; simplifying and improving student aid; 
empowering students and families to make informed decisions; 
and ensuring strong accountability and a limited federal role.

                            Committee Action


                             112TH CONGRESS

First Session--Hearings

    On March 1, 2011, the Committee on Education and the 
Workforce (Committee) held a hearing in Washington, D.C., on 
``Education Regulations: Weighing the Burden on Schools and 
Students.'' The hearing was the first in a series examining the 
burden of federal, state, and local regulations on the nation's 
education system. The purpose of the hearing was to uncover the 
damaging effects of federal regulations on schools and 
institutions. These rules increasingly stifle growth and 
innovation, raise operating costs, and limit student access to 
affordable colleges and universities throughout the nation. 
Testifying before the Committee were Dr. Edgar Hatrick, 
Superintendent, Loudon County Public Schools, Ashburn, 
Virginia; Ms. Kati Haycock, President, The Education Trust, 
Washington, D.C.; Mr. Gene Wilhoit, Executive Director, Council 
of Chief State School Officers, Washington, D.C.; and Mr. 
Christopher B. Nelson, President, St. John's College, 
Annapolis, Maryland.
    On March 11, 2011, the Committee's Subcommittee on Higher 
Education and Workforce Training (HEWT) held a hearing in 
Washington, D.C., on ``Education Regulations: Federal Overreach 
into Academic Affairs.'' The purpose of the hearing was to 
discuss the most egregious and intrusive provisions in the 
program integrity regulations issued by the U.S. Department of 
Education (the Department) and to uncover the unintended 
consequences of the regulations to states and institutions of 
higher education. The state authorization and credit hour 
regulations were specifically discussed. Testifying before the 
Subcommittee were Mr. John Ebersole, President, Excelsior 
College, Albany, New York; Dr. G. Blair Dowden, President, 
Huntington University, Huntington, Indiana; the Honorable 
Kathleen Tighe, Inspector General, U.S. Department of 
Education, Washington, D.C.; and Mr. Ralph Wolff, President, 
Western Association of Schools and Colleges, Alameda, 
California.
    On March 17, 2011, the Committee held a hearing in 
Washington, D.C., on ``Education Regulations: Roadblocks to 
Student Choice in Higher Education.'' The purpose of the 
hearing was to explore the harmful consequences of the gainful 
employment regulation issued by the Department. Testifying 
before the Committee were Ms. Catherine Barreto, graduate, 
Monroe College, and Senior Sales Associate, Doubletree Hotels, 
Brooklyn, New York; Mr. Travis Jennings, Electrical Supervisor 
of the Manufacturing Launch Systems Group, Orbital Sciences 
Corporation, Chandler, Arizona; Dr. Arnold Mitchem, President, 
Council for Opportunity in Education, Washington, D.C.; and Ms. 
Jeanne Herrmann, Chief Operating Officer, Globe University/
Minnesota School of Business, Woodbury, Minnesota.
    On March 21, 2011, the Committee held a field hearing in 
Wilkes-Barre, Pennsylvania, on ``Reviving our Economy: The Role 
of Higher Education in Job Growth and Development.'' The 
purpose of the hearing was to highlight work by local colleges 
and universities to respond to local and state economic needs. 
Testifying before the Committee were Mr. James Perry, 
President, Hazelton City Council, Hazelton, Pennsylvania; Mr. 
Jeffrey Alesson, Vice President of Strategic Planning and 
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania; 
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre, 
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna 
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive 
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr. 
Thomas P. Leary, President, Luzerne County Community College, 
Nanticoke, Pennsylvania.
    On March 22, 2011, the Committee held a field hearing in 
Utica, New York, on ``Reviving our Economy: The Role of Higher 
Education in Job Growth and Development.'' The purpose of the 
hearing was to highlight work by local colleges and 
universities to respond to local and state economic needs. 
Testifying before the Committee were Mr. Anthony J. Picente, 
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave 
Mathis, Director, Oneida County Workforce Development, Utica, 
New York; Dr. John Bay, Vice President and Chief Scientist, 
Assured Information Security, Inc., Rome, New York; Dr. Bjong 
Wolf Yeigh, President, State University of New York Institute 
of Technology, Utica, New York; Dr. Ann Marie Murray, 
President, Herkimer County Community College, Herkimer, New 
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica, 
New York; and Mr. Phil Williams, President, Utica School of 
Commerce, The Business College, Utica, New York.
    On April 21, 2011, the Committee held a field hearing in 
Columbia, Tennessee, on ``Reviving our Economy: The Role of 
Higher Education in Job Growth and Development.'' The purpose 
of the hearing was to highlight the work by local colleges and 
universities to respond to local and state economic needs. 
Testifying before the Committee were Dr. Janet Smith, 
President, Columbia State Community College, Columbia, 
Tennessee; Dr. Ted Brown, President, Martin-Methodist College, 
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; the Honorable Dean 
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan 
Marlow, President and Chief Executive Officer, Smart Data 
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive 
Director, South Central Tennessee Workforce Board, Columbia, 
Tennessee; and Ms. Margaret Prater, Executive Director, 
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
    On July 8, 2011, the HEWT Subcommittee, together with the 
Committee on Oversight and Government Reform Subcommittee on 
Regulatory Affairs, Stimulus Oversight, and Government 
Spending, held a hearing in Washington, D.C., on ``The Gainful 
Employment Regulation: Limiting Job Growth and Student 
Choice.'' The purpose of the hearing was to explore the harmful 
consequences of the gainful employment regulation issued by the 
Department. Testifying before the Subcommittees were Dr. Dario 
A. Cortes, President, Berkeley College, New York City, New 
York; Dr. Anthony P. Carnevale, Director, Georgetown University 
Center on Education and the Workforce, Washington, D.C.; Ms. 
Karla Carpenter, graduate, Herzing University and Program 
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C. 
Alford, President and Chief Executive Officer, National Black 
Chamber of Commerce, Washington, D.C.
    On August 16, 2011, the HEWT Subcommittee held a field 
hearing in Greenville, South Carolina, on ``Reviving Our 
Economy: The Role of Higher Education in Job Growth and 
Development.'' The purpose of the hearing was to highlight the 
work by local colleges and universities to respond to local and 
state economic needs. Testifying before the Subcommittee were 
the Honorable Knox White, Mayor, City of Greenville, 
Greenville, South Carolina; Mr. Werner Eikenbusch, Section 
Manager, Associate Development and Training, BMW Manufacturing 
Co., Spartanburg, South Carolina; Ms. Laura Harmon, Project 
Director, Greenville Works, Greenville, South Carolina; Dr. 
Brenda Thames, Vice President of Academic Development, 
Greenville Health System, Greenville, South Carolina; Mr. James 
F. Barker, President, Clemson University, Clemson, South 
Carolina; Dr. Thomas F. Moore, Chancellor, University of South 
Carolina Upstate, Spartanburg, South Carolina; Dr. Keith 
Miller, President, Greenville Technical College, Greenville, 
South Carolina; and Ms. Amy Hickman, Campus President, ECPI 
College of Technology, Greenville, South Carolina.
    On October 25, 2011, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Government-Run Student Loans: 
Ensuring the Direct Loan Program is Accountable to Students and 
Taxpayers.'' The purpose of the hearing was to examine the 
switch to and implementation of the Direct Loan program. 
Testifying before the Subcommittee were Mr. James W. Runcie, 
Chief Operating Officer, Office of Federal Student Aid, U.S. 
Department of Education, Washington, D.C.; Mr. Ron H. Day, 
Director of Financial Aid, Kennesaw State University, Kennesaw, 
Georgia; Ms. Nancy Hoover, Director of Financial Aid, Denison 
University, Granville, Ohio; and Mr. Mark. A. Bandre, Vice 
President for Enrollment Management and Student Affairs, Baker 
University, Baldwin City, Kansas.
    On November 30, 2011, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Keeping College Within Reach: 
Discussing Ways Institutions Can Streamline Costs and Reduce 
Tuition.'' The purpose of the hearing was to highlight 
innovative practices institutions of higher education were 
implementing to reduce their costs and to limit tuition 
increases for students. Testifying before the Subcommittee were 
Ms. Jane V. Wellman, Executive Director, Delta Project on 
Postsecondary Costs, Productivity, and Accountability, 
Washington, D.C.; Dr. Ronald E. Manahan, President, Grace 
College and Seminary, Winona Lake, Indiana; Mr. Jamie P. 
Merisotis, President and Chief Executive Officer, Lumina 
Foundation for Education, Indianapolis, Indiana; and Mr. Tim 
Foster, President, Colorado Mesa University, Grand Junction, 
Colorado.

Second Session--Hearings

    On July 18, 2012, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Exploring 
State Efforts to Curb Costs.'' The purpose of the hearing was 
to highlight innovative practices at the state level to assist 
postsecondary institutions in keeping costs affordable and to 
promote accountability of public funds. Testifying before the 
Subcommittee were Mr. Scott Pattison, Executive Director, 
National Association of State Budget Officers, Washington, 
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education, 
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones, 
President, Complete College America, Zionsville, Indiana; and 
Dr. Joe May, President, Louisiana Community and Technical 
College System, Baton Rouge, Louisiana.
    On September 20, 2012, the Committee's HEWT Subcommittee 
held a hearing in Washington, D.C., on ``Assessing College 
Data: Helping to Provide Valuable Information to Students, 
Institutions, and Taxpayers.'' The purpose of the hearing was 
to examine data collected by the federal government from 
institutions of higher education, including data requirements 
established during the last reauthorization of the Higher 
Education Act (HEA) in 2008, (Higher Education Opportunity 
Act). Testifying before the Subcommittee were Dr. Mark 
Schneider, Vice President, American Institutes for Research, 
Washington, D.C.; Dr. James Hallmark, Vice Chancellor for 
Academic Affairs, Texas A&M System, College Station, Texas; Dr. 
Jose Cruz, Vice President for Higher Education Policy and 
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy 
Fitzsimmons, President, Shenandoah University, Winchester, 
Virginia.

Legislative action

    On February 17, 2011, the House of Representatives 
considered an amendment offered by then-Chairman John Kline (R-
MN); then-HEWT Subcommittee Chairwoman Virginia Foxx (R-NC); 
and Rep. Alcee Hastings (D-FL) to H.R. 1, the Disaster Relief 
Appropriations Act of 2013. The amendment prohibited the use of 
funds by the Department to implement and enforce the gainful 
employment regulation. The amendment was agreed to by a 
bipartisan vote of 289 to 136. On February 19, 2011, the House 
of Representatives passed H.R. 1 by a vote of 235 to 189. This 
bill was not signed into law.
    On June 3, 2011, then-HEWT Subcommittee Chairwoman Foxx and 
then-Chairman Kline introduced H.R. 2117, the Protecting 
Academic Freedom in Higher Education Act. On July 22, 2011, the 
Committee considered H.R. 2117 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a bipartisan vote of 27 to 11. On February 
28, 2012, the House of Representatives passed H.R. 2117 by a 
bipartisan vote of 303 to 114. The bill was sent to the Senate 
and referred to the Senate Committee on Health, Education, 
Labor, and Pensions where no further action was taken. The 
concept of this bill is included in H.R. 4508.

                             113TH CONGRESS

First Session--Hearings

    On March 13, 2013, the Committee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Examining 
Opportunities to Strengthen Federal Student Loan Programs.'' 
The purpose of the hearing was to examine ways to strengthen 
federal student loans, as well as how moving to a market-based 
or variable interest rate on all federal student loans could 
benefit both students and taxpayers. Testifying before the 
Committee were Dr. Deborah J. Lucas, Sloan Distinguished 
Professor of Finance, Massachusetts Institute of Technology, 
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal 
Education Budget Project, The New America Foundation, 
Washington, D.C.; Mr. Justin Draeger, President and Chief 
Executive Officer, National Association of Student Financial 
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer, 
Vice President of Policy, Alliance for Excellent Education, 
Washington, D.C.
    On April 9, 2013, the HEWT Subcommittee held a field 
hearing in Monroe, Michigan, on ``Reviving Our Economy: The 
Role of Higher Education in Job Growth and Development.'' The 
purpose of the hearing was to highlight work being done by 
local colleges and universities to respond to local and state 
economic needs. Testifying before the Subcommittee were Mr. 
Henry Lievens, Commissioner, Monroe County, Monroe, Michigan; 
Ms. Lynette Dowler, Plant Director, Fossil Generation, DTE 
Energy, Detroit, Michigan; Ms. Susan Smith, Executive Director, 
Economic Development Partnership of Hillsdale County, 
Jonesville, Michigan; Mr. Dan Fairbanks, United Auto Workers 
International Representative, UAW-GM Skill Development and 
Training Department, Detroit, Michigan; Dr. David E. Nixon, 
President, Monroe County Community College, Monroe, Michigan; 
Sister Peg Albert, OP, Ph.D., President, Siena Heights 
University, Adrian, Michigan; Dr. Michelle Shields, Career 
Coach and Workforce Development Director, Jackson Community 
College, Jackson, Michigan; and Mr. Douglas A. Levy, Director 
of Financial Aid, Macomb Community College, Warren, Michigan.
    On April 16, 2013, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: The Role 
of Federal Student Aid Programs.'' The purpose of the hearing 
was to examine shifting the focus of federal student aid 
programs from enhancing access to improving student outcomes. 
Testifying before the Subcommittee were Mr. Terry W. Hartle, 
Senior Vice President, Division of Government and Public 
Affairs, American Council on Education, Washington, D.C.; Ms. 
Moriah Miles, State Chair, Minnesota State University Student 
Association, Mankato, Minnesota; Ms. Patricia McGuire, 
President, Trinity Washington University, Washington, D.C.; and 
Mr. Dan Madzelan, former employee (Retired), U.S. Department of 
Education, University Park, Maryland.
    On April 24, 2013, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Enhancing 
Transparency for Students, Families, and Taxpayers.'' The 
purpose of the hearing was to examine ways to improve the 
information provided by the federal government to inform 
students and families about their postsecondary education 
options. Testifying before the Subcommittee were Dr. Donald E. 
Heller, Dean, College of Education, Michigan State University, 
East Lansing, Michigan; Mr. Alex Garrido, Student, Keiser 
University, Miami, Florida; Dr. Nicole Farmer Hurd, Founder and 
Executive Director, National College Advising Corps, Carrboro, 
North Carolina; and Mr. Travis Reindl, Program Director, 
Postsecondary Education, National Governors Association Center 
for Best Practices, Washington, D.C.
    On June 13, 2013, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Discussing 
Program Quality through Accreditation.'' The purpose of the 
hearing was to examine the historical role of accreditation, 
discuss the role of regional and national accreditors in 
measuring institutional quality, and consider possible areas 
for reform. Testifying before the Subcommittee were Dr. 
Elizabeth H. Sibolski, President, Middle States Commission on 
Higher Education, Philadelphia, Pennsylvania; Dr. Michale 
McComis, Executive Director, Accrediting Commission of Career 
Schools and Colleges, Arlington, Virginia; Ms. Anne D. Neal, 
President, American Council of Trustees and Alumni, Washington, 
D.C.; and Mr. Kevin Carey, Director of the Education Policy 
Program, The New America Foundation, Washington, D.C.
    On July 9, 2013, the Committee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Improving 
Higher Education through Innovation.'' The purpose of the 
hearing was to highlight innovation in higher education 
occurring at the state and institutional level and in the 
private sector. Testifying before the Committee were Mr. Scott 
Jenkins, Director of External Relations, Western Governors 
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President 
and Chief Executive Officer, Council for Adult and Experiential 
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice 
Chancellor for Academic Affairs, University System of Maryland, 
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer 
and Founder, StraighterLine, Baltimore, Maryland.
    On September 11, 2013, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Keeping College Within Reach: 
Supporting Higher Education Opportunities for America's 
Servicemembers and Veterans.'' The purpose of the hearing was 
to examine the efforts of higher education institutions to 
improve postsecondary education opportunities for 
servicemembers and veterans. Testifying before the Subcommittee 
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and 
Military Affairs, The University of North Carolina, Chapel 
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint 
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner, 
Vice President for Regulatory and Governmental Relations, 
American Public University System, Charles Town, West Virginia; 
and Dr. Ken Sauer, Senior Associate Commissioner for Research 
and Academic Affairs, Indiana Commission for Higher Education, 
Indianapolis, Indiana.
    On September 18, 2013, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Keeping College Within Reach: 
Improving Access and Affordability through Innovative 
Partnerships.'' The purpose of the hearing was to examine the 
efforts of higher education institutions to expand access and 
reduce costs by partnering with local employers, other 
colleges, or online course providers. Testifying before the 
Subcommittee were Dr. Jeffrey Docking, President, Adrian 
College, Adrian, Michigan; Ms. Paula R. Singer, President and 
Chief Executive Officer, Laureate Global Products and Services, 
Baltimore, Maryland; Dr. Rich Baraniuk, Professor, Rice 
University, and Founder, Connexions, Houston, Texas; and Dr. 
Charles Lee Isbell, Jr., Professor and Senior Associate Dean, 
College of Computing, Georgia Institute of Technology, Atlanta, 
Georgia.
    On November 13, 2013, the Committee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: 
Simplifying Federal Student Aid.'' The purpose of the hearing 
was to examine the need to streamline, consolidate, and 
simplify federal student aid programs. Testifying before the 
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM 
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research 
Professor of Education Policy, George Washington University 
Graduate School of Education and Human Development, and Senior 
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer 
Mishory, J.D., Deputy Director, Young Invincibles, Washington, 
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget 
Project, New America Foundation, Washington, D.C.
    On December 3, 2013, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Keeping College Within Reach: 
Strengthening Pell Grants for Future Generations.'' The purpose 
of the hearing was to examine Pell Grant program reform 
proposals to better target funds to the neediest students and 
put the program on a fiscally responsible and sustainable path. 
Testifying before the Subcommittee were Mr. Justin Draeger, 
President and Chief Executive Officer, National Association of 
Student Financial Aid Administrators, Washington, D.C.; Dr. 
Jenna Ashley Robinson, Director of Outreach, John W. Pope 
Center for Higher Education Policy, Raleigh, North Carolina; 
Mr. Michael Dannenberg, Director of Higher Education and 
Education Finance Policy, The Education Trust, Washington, 
D.C.; and Mr. Richard C. Heath, Director of Student Financial 
Services, Anne Arundel Community College, Arnold, Maryland.

Second Session--Hearings

    On January 28, 2014, the HEWT Subcommittee held a hearing 
in Washington, D.C., on ``Keeping College Within Reach: Sharing 
Best Practices for Serving Low-Income and First Generation 
Students.'' The purpose of the hearing was to highlight best 
practices at institutions of higher education for serving low-
income and first generation students. Testifying before the 
Subcommittee were Dr. James Anderson, Chancellor, Fayetteville 
State University, Fayetteville, North Carolina; Mrs. Mary Beth 
Del Balzo, Senior Executive Vice President and Chief Executive 
Officer, The College of Westchester, White Plains, New York; 
Mr. Josse Alex Garrido, graduate student, University of Texas--
Pan American, Edinburg, Texas; and Rev. Dennis H. 
Holtschneider, President, DePaul University, Chicago, Illinois.
    On February 27, 2014, the Subcommittee on Early Childhood, 
Elementary, and Secondary Education and the HEWT Subcommittee 
held a joint hearing in Washington, D.C., on ``Exploring 
Efforts to Strengthen the Teaching Profession.'' The purpose of 
the hearing was to discuss the state of teacher preparation 
nationwide. Testifying before the Subcommittees were Dr. 
Deborah A. Gist, Commissioner, Rhode Island Department of 
Elementary and Secondary Education, Providence, Rhode Island; 
Dr. Marcy Singer-Gabella, Professor of the Practice of 
Education, Vanderbilt University, Nashville, Tennessee; Dr. 
Heather Peske, Associate Commissioner for Educator Quality, 
Massachusetts Department of Elementary and Secondary Education, 
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and 
Co-Director, Urban Teacher Center, Baltimore, Maryland.
    On March 12, 2014, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Examining the Mismanagement of the 
Student Loan Rehabilitation Process.'' The purpose of the 
hearing was to examine the Department's ability to oversee the 
processing of rehabilitated loans issued in the Direct Loan 
program. Testifying before the Subcommittee were Ms. Melissa 
Emrey-Arras, Director of Education, Workforce, and Income 
Security Issues, U.S. Government Accountability Office, Boston, 
Massachusetts; the Honorable Kathleen Tighe, Inspector General, 
U.S. Department of Education, Washington, D.C.; Mr. James 
Runcie, Chief Operating Officer, Office of Federal Student Aid, 
U.S. Department of Education, Washington, D.C.; and Ms. Peg 
Julius, Executive Director of Enrollment Management, Kirkwood 
Community College, Cedar Rapids, Iowa.
    On March 20, 2014, the Committee held a field hearing in 
Mesa, Arizona, on ``Reviving our Economy: Supporting a 21st 
Century Workforce.'' The purpose of the hearing was to explore 
the role of higher education institutions in fostering job 
creation and growth through innovative partnerships with the 
business community and new modes of teaching delivery. 
Testifying before the Committee were the Honorable Rick 
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms. 
Cathleen Barton, Education Manager, Intel Corporate Affairs, 
Southwestern United States, Intel Corporation, Chandler, 
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community 
College, Tucson, Arizona; Dr. William Pepicello, President, 
University of Phoenix, Tempe, Arizona; Dr. Michael Crow, 
President, Arizona State University, Tempe, Arizona; Dr. Ann 
Weaver Hart, President, The University of Arizona, Tucson, 
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain 
Community College, Avondale, Arizona; and Ms. Christy Farley, 
Vice President of Government Affairs and Business Partnerships, 
Northern Arizona University, Phoenix, Arizona.
    On April 2, 2014, the Committee held a hearing in 
Washington, D.C., on ``Keeping College Within Reach: Meeting 
the Needs of Contemporary Students.'' The purpose of the 
hearing was to examine how institutions, states, and other 
entities assist contemporary college students in accessing and 
completing postsecondary education. Testifying before the 
Committee were Dr. George A. Pruitt, President, Thomas Edison 
State College, Trenton, New Jersey; Dr. Kevin Gilligan, 
Chairman and Chief Executive Officer, Capella Education 
Company, Minneapolis, Minnesota; Mr. David Moldoff, Chief 
Executive Officer and Founder, AcademyOne, Inc., West Chester, 
Pennsylvania; Dr. Joann A. Boughman, Senior Vice Chancellor for 
Academic Affairs, University System of Maryland, Adelphi, 
Maryland; Mr. Stan Jones, President, Complete College America, 
Indianapolis, Indiana; and Dr. Brooks A. Keel, President, 
Georgia Southern University, Statesboro, Georgia.

Legislative action

    On May 9, 2013, then-Chairman Kline and then-HEWT 
Subcommittee Chairwoman Foxx introduced H.R. 1911, the Smarter 
Solutions for Students Act. The bill moved all federal student 
loans (except Perkins loans) to a market-based interest rate. 
On May 16, 2013, the Committee considered H.R. 1911 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a bipartisan vote of 24 to 13. 
On May 23, 2013, the House of Representatives passed H.R. 1911 
by a bipartisan vote of 221 to 198. On July 24, 2013, the 
Senate passed a substitute version of H.R. 1911, the Bipartisan 
Student Loan Certainty Act, by a bipartisan vote of 81 to 18. 
The legislation allowed student loan interest rates to flow 
with the market by resetting them once a year based on a 
formula in the statute, but the rate would become fixed once 
the loan disbursed to the student. On July 31, 2013, the House 
of Representatives agreed to suspend the rules and agree to the 
Senate amendment to H.R. 1911 by a bipartisan vote of 392 to 
31. On August 9, 2013, the President signed H.R. 1911 into law 
(P.L. 113-28).
    On July 10, 2013, then-Chairman Kline, then-HEWT 
Subcommittee Chairwoman Foxx, and Rep. Hastings introduced H.R. 
2637, the Supporting Academic Freedom through Regulatory Relief 
Act. The bill, which included the text of the Protecting 
Academic Freedom in Higher Education Act (H.R. 2117) and the 
Kline/Foxx/Hastings amendment to H.R. 1 from the 112th 
Congress, repealed the credit hour, state authorization, and 
gainful employment regulations, and it amended the statute to 
clarify the incentive compensation regulation. Additionally, 
the bill prohibited the Department from issuing related 
regulations until after Congress reauthorizes the HEA. On July 
24, 2013, the Committee considered H.R. 2637 in legislative 
session and reported it favorably, as amended, to the House of 
Representatives by a bipartisan vote of 22 to 13. This policy 
is included in H.R. 4508.
    On June 26, 2014, then-HEWT Subcommittee Chairwoman Foxx 
and Rep. Luke Messer (R-IN) introduced H.R. 4983, the 
Strengthening Transparency in Higher Education Act. The bill 
simplified and streamlined the information made publicly 
available by the Secretary of Education (the Secretary) 
regarding institutions of higher education. On July 10, 2014, 
the Committee considered H.R. 4983 in legislative session and 
reported it favorably, as amended, to the House of 
Representatives by a voice vote. On July 23, 2014, the House of 
Representatives considered H.R. 4983 under suspension of the 
rules. The bill was agreed to by voice vote, sent to the 
Senate, and referred to the Senate Committee on Health, 
Education, Labor, and Pensions where no further action was 
taken. This policy is included in H.R. 4508.
    On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep. 
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering 
Students through Enhanced Financial Counseling Act. The bill 
amended the loan counseling requirements under the HEA and 
required counseling for Federal Pell Grant recipients. On July 
10, 2014, the Committee considered H.R. 4984 in legislative 
session and reported it favorably, as amended, to the House of 
Representatives by voice vote. On July 24, 2014, the House of 
Representatives considered H.R. 4984 and passed it, as amended, 
by a bipartisan vote of 405 to 11. The bill was sent to the 
Senate and referred to the Senate Committee on Health, 
Education, Labor, and Pensions where no further action was 
taken. This policy is included in H.R. 4508.

                             114TH CONGRESS

First Session--Hearings

    On February 4, 2015, the Committee held a hearing in 
Washington, D.C., on ``Expanding Opportunity in America's 
Schools and Workplaces.'' The purpose of the hearing was to 
learn about efforts made by state leaders to improve K-12 and 
postsecondary education, to ensure students who graduate are 
prepared to pursue a postsecondary education and compete in the 
workforce, and to promote efforts to spur job creation. 
Testifying before the Committee were Dr. Michael Amiridis, 
Provost and Executive Vice President for Academic Affairs, 
University of South Carolina, Columbia, South Carolina; Mr. 
Drew Greenblatt, President and CEO, Marlin Steel Wire Products, 
Baltimore, Maryland; Dr. Lawrence Mishel, President, Economic 
Policy Institute, Washington, D.C.; and the Honorable Mike 
Pence, Governor, State of Indiana, Indianapolis, Indiana.
    On March 17, 2015, the Committee's HEWT Subcommittee held a 
hearing in Washington, D.C., on ``Strengthening America's 
Higher Education System.'' The purpose of the hearing was to 
explore policy proposals that align with the Committee's four 
pillars for reauthorization of the HEA: (1) promoting 
innovation, access, and completion; (2) simplifying and 
improving student aid; (3) empowering students and families to 
make informed decisions; and (4) ensuring strong accountability 
and a limited federal role. Testifying before the Subcommittee 
were Mr. Willis Goldsmith, Partner, Jones Day, New York, New 
York, testifying on behalf of the U.S. Chamber of Commerce; Mr. 
Stan Soloway, President and CEO, Professional Services Council, 
Arlington, Virginia; Ms. Angela Styles, Partner, Crowell & 
Moring LLP, Washington, D.C.; and Ms. Karla Walter, Associate 
Director, American Worker Project, Center for American 
Progress, Washington, D.C.
    On April 30, 2015, the HEWT Subcommittee held a hearing in 
Washington, D.C., on ``Improving College Access and Completion 
for Low-Income and First-Generation Students.'' The purpose of 
the hearing was to explore policy proposals and best practices 
to strengthen programs helping disadvantaged students access 
and complete higher education. Testifying before the 
Subcommittee were Dr. Laura Perna, James S. Riepe Professor, 
Executive Director, Alliance for Higher Education and 
Democracy, University of Pennsylvania, Philadelphia, 
Pennsylvania; Dr. Charles J. Alexander, Associate Vice Provost 
for Student Diversity, Director, Academic Advancement Program, 
Associate Adjunct Professor, University of California, Los 
Angeles, California; Dr. Michelle Asha Cooper, President, 
Institute for Higher Education Policy, Washington, D.C.; and 
Dr. Joe D. May, Chancellor, Dallas County Community College 
District, Dallas, Texas.
    On September 10, 2015, the Committee's HEWT Subcommittee 
held a hearing in Washington, D.C., on ``Preventing and 
Responding to Sexual Assault on College Campuses.'' The purpose 
of the hearing was to explore policy proposals and best 
practices to help institutions address and respond to campus 
sexual assault and violence. Testifying before the Subcommittee 
were Ms. Dana Scaduto, General Counsel, Dickinson College, 
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for 
Campus Life, Wake Forest University, Winston-Salem, North 
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for 
Government Relations, American Association of University Women, 
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy 
Director, Foundation for Individual Rights in Education, 
Philadelphia, Pennsylvania.
    On November 18, 2015, the Committee's HEWT Subcommittee and 
the Committee on Oversight and Government Reform Subcommittee 
on Government Operations held a hearing in Washington, D.C., on 
``Federal Student Aid: Performance-Based Organization Review.'' 
The purpose of the hearing was to review the Office of Federal 
Student Aid's responsibilities as a Performance-Based 
Organization (PBO), evaluate the PBO's performance, and 
identify possible areas of reform. Testifying before the 
Subcommittees were Mr. James Runcie, Chief Operating Officer, 
U.S. Department of Education, Washington, D.C.; Ms. Melissa 
Emrey-Arras, Director, Education Workforce, and Income 
Security, U.S. Government Accountability Office, Washington, 
D.C.; the Honorable Kathleen Tighe, Inspector General, U.S. 
Department of Education, Washington, D.C.; Mr. Ben Miller, 
Senior Director, Postsecondary Education, Center for American 
Progress, Washington, D.C.; and Mr. Justin Draeger, President, 
National Association of Student Financial Aid Administrators, 
Washington, D.C.

Legislative action

    On July 23, 2015, then-HEWT Subcommittee Chairwoman Foxx 
along with then-Chairman Kline, Ranking Member Robert C. 
``Bobby'' Scott (D-VA), and Reps. Messer, Gregorio Sablan (D-
MP), Tim Walberg (R-MI), Joe Heck (R-NV), Buddy Carter (R-GA), 
Elise Stefanik (R-NY), Susan Davis (D-CA), Raul Grijalva (D-
AZ), and Mark DeSaulnier (D-CA) reintroduced H.R. 3178, the 
Strengthening Transparency in Higher Education Act. The bill 
ensured straightforward and useful information is easily 
accessible to students and parents and improved coordination 
between federal agencies to publish information about colleges 
and universities. On June 22, 2016, the Committee considered 
H.R. 3178 in legislative session and reported it favorably, as 
amended, to the House of Representatives by voice vote. On July 
11, 2016, the House of Representatives passed H.R. 3178 by 
voice vote. The bill was sent to the Senate and referred to the 
Senate Committee on Health, Education, Labor, and Pensions 
where no further action was taken. This policy is included in 
H.R. 4508.
    On July 23, 2015, Rep. Brett Guthrie along with then-
Chairman Kline, Ranking Member Scott, and Reps. Rick Allen (R-
GA), Suzanne Bonamici (D-OR), Duncan Hunter (R-CA), Walberg, 
Heck, Messer, Carter , Stefanik, Davis, Grijalva, Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier, and Hudson, reintroduced H.R. 3179, 
Empowering Students Through Enhanced Financial Counseling Act. 
The bill promotes financial literacy through enhanced 
counseling for all recipients of federal financial aid. On June 
22, 2016, the Committee considered H.R. 3179 in legislative 
session and reported it favorably, as amended, to the House of 
Representatives by voice vote. On July 11, 2016, the House of 
Representatives passed H.R. 3179 by voice vote. The bill was 
sent to the Senate and referred to the Senate Committee on 
Health, Education, Labor, and Pensions where no further action 
was taken. This policy is included in H.R. 4508.
    On June 20, 2016, Rep. Heck along with Reps. David ``Phil'' 
Roe (R-TN), Jared Polis (D-CO), and Pocan introduced H.R. 5528, 
the Simplifying the Application for Student Aid Act. The bill 
ensured continued allowance for earlier notification of federal 
student aid, leveraged technology to make the application for 
federal student aid more accessible and easier to fill out, and 
provided more time for financial aid administrators to verify 
and package student aid. On June 22, 2016, the Committee 
considered H.R. 5528 in legislative session and reported it 
favorably, as amended, to the House of Representatives by voice 
vote. On July 11, 2016, the House of Representatives passed 
H.R. 5528 by voice vote. The bill was sent to the Senate and 
referred to the Senate Committee on Health, Education, Labor, 
and Pensions where no further action was taken. This policy is 
included in H.R. 4508.
    On June 20, 2016, Rep. Heck along with Reps. Ruben Hinojosa 
(D-TX) and Raul Ruiz (D-CA) introduced H.R. 5529, the Accessing 
Higher Education Opportunities Act. The bill expanded the 
authorized uses of funds for Hispanic-Serving Institutions 
(HSIs), so they may promote dual enrollment opportunities and 
encourage Hispanic students to pursue doctoral degree programs 
in the healthcare industry. On June 22, 2016, the Committee 
considered H.R. 5529 in legislative session and reported it 
favorably, as amended, to the House of Representatives by voice 
vote. On July 11, 2016, the House of Representatives passed 
H.R. 5529 by voice vote. The bill was sent to the Senate and 
referred to the Senate Committee on Health, Education, Labor, 
and Pensions where no further action was taken. Aspects of this 
policy are included in H.R. 4508.
    On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne 
(R-AL) introduced H.R. 5530, the HBCU Capital Financing 
Improvement Act. The bill improved the program by requiring the 
advisory board to send an annual report to Congress regarding 
the status of the Historically Black College and University 
(HBCU) Capital Financing Program. Additionally, the bill 
renamed the escrow account to ``bond insurance fund.'' The bill 
also allowed for financial counseling to eligible HBCUs to 
assist in their preparation to qualify, apply for, and maintain 
a capital improvement loan. On June 22, 2016, the Committee 
considered H.R. 5530 in legislative session and reported it 
favorably, as amended, to the House of Representatives by voice 
vote. On July 11, 2016, the House of Representatives passed 
H.R. 5530 by voice vote. The bill was sent to the Senate and 
referred to the Senate Committee on Health Education, Labor, 
and Pensions where no further action was taken. This policy is 
included in H.R. 4508.

                             115TH CONGRESS

First Session--Hearings

    On February 7, 2017, the Committee held a hearing in 
Washington, D.C., on ``Challenges and Opportunities in Higher 
Education.'' The purpose of the hearing was to learn more about 
the main challenges and opportunities facing America's higher 
education system and gain a better understanding of some of the 
major policy proposals that align with the Committee's four key 
priorities for HEA reauthorization: (1) promoting innovation, 
access, and completion; (2) simplifying and improving student 
aid; (3) empowering students and families to make informed 
decisions; and (4) ensuring strong accountability and a limited 
federal role. Testifying before the Committee were Dr. Beth 
Akers, Senior Fellow, Manhattan Institute, New York City, New 
York; Dr. William English ``Brit'' Kirwan, Co-Chair, Task Force 
on the Federal Regulation of Higher Education, Rockville, 
Maryland; Dr. Jose Luis Cruz, President, Lehman College, Bronx, 
New York; and Mr. Kevin Gilligan, Chairman and Chief Executive 
Officer, Capella Education Company, Minneapolis, Minnesota.
    On March 21, 2017, the Committee held a hearing in 
Washington, D.C., on ``Improving Federal Student Aid to Better 
Meet the Needs of Students.'' The purpose of the hearing was to 
detail the complex federal patchwork of grants, loans, and 
campus-based aid programs, as well as discuss the need for 
streamlining, consolidating, and simplifying these student aid 
programs. Testifying before the Committee were Ms. JoEllen 
Soucier, Executive Director of Financial Aid, Houston Community 
College System, Houston, Texas; Ms. Kristin Conklin, Partner, 
HCM Strategists, Washington, D.C.; Mrs. Youlonda Copeland-
Morgan, Vice Provost of Enrollment Management, University of 
California, Los Angeles, Los Angeles, California; and Dr. Matt 
Chingos, Senior Fellow, Urban Institute, Washington, D.C.
    On April 27, 2017, the Committee held a hearing in 
Washington, D.C., on ``Strengthening Accreditation to Better 
Protect Students and Taxpayers.'' The purpose of the hearing 
was to provide an overview of the accreditation system, explore 
how the system provides accountability for both students and 
taxpayers and examine ways the current accreditation system 
could be strengthened. Testifying before the Committee were Dr. 
Mary Ellen Petrisko, President, Western Association of Schools 
and Colleges, Senior College and University Commission, 
Alameda, California; Dr. George A. Pruitt, President, Thomas 
Edison State University, Trenton, New Jersey; Mr. Ben Miller, 
Senior Director for Postsecondary Education, Center for 
American Progress, Washington, D.C.; Dr. Michale S. McComis, 
Executive Director, Accrediting Commission of Career Schools 
and Colleges, Arlington, Virginia.
    On May 24, 2017, the Subcommittee on Higher Education and 
Workforce Development (HEWD), formerly the HEWT Subcommittee, 
held a hearing in Washington, D.C., on ``Empowering Students 
and Families to Make Informed Decisions on Higher Education.'' 
The purpose of the hearing was to demonstrate that it is 
possible to improve the higher education data landscape while 
continuing to maintain student privacy, empower students and 
families to make more informed decisions, and ensure 
policymakers have the information needed to determine whether 
taxpayers are getting a return on their significant investment 
in postsecondary education. Testifying before the Subcommittee 
were Dr. Mark Schneider, Vice President, American Institutes 
for Research, Washington, D.C.; Mr. Jason Delisle, Resident 
Fellow, American Enterprise Institute, Washington, D.C.; Ms. 
Mamie Voight, Vice President of Policy Research, Institute for 
Higher Education Policy, Washington, D.C.; and Mr. Andrew 
Benton, President and Chief Executive Officer, Pepperdine 
University, Malibu, California.
    On July 26, 2017, the HEWD Subcommittee held a hearing in 
Washington, D.C., on ``Expanding Options for Employers and 
Workers Through Earn-and-Learn Opportunities.'' The purpose of 
the hearing was to discuss apprenticeship programs and consider 
how changes to the Registered Apprenticeship program may 
improve opportunities for employees and lead to greater 
employer participation. Testifying before the Subcommittee were 
Mr. Mike Bennett, Vice President, Cianbro, Pittsfield, Maine; 
Mr. Robert Peglow, student, Kentucky Federation for Advanced 
Manufacturing Education (KYFAME), Franklin, Kentucky; Mr. Rob 
Hogan, Vice President of Manufacturing and Material 
Distribution, Newport News Shipbuilding, Newport News, 
Virginia; and Ms. Stacey Johnson Hughes, State Chair, Kentucky 
Federation for Advanced Manufacturing Education, Russellville, 
Kentucky.
    On October 24, 2017, the Committee, together with the 
Committee on Homeland Security, held a hearing in Washington, 
D.C., on ``Public-Private Solutions to Educating a Cyber 
Workforce.'' The purpose of the hearing was to discover best 
practices for cybersecurity workforce development. The joint 
hearing provided the opportunity to hear from witnesses who 
have studied the issues of cybersecurity workforce recruitment 
and retention, as well as those who have instituted successful 
recruitment and retention programs for their own workforce. 
Testifying before the Subcommittee were the Honorable Stephen 
A. Cambone, Associate Vice Chancellor, Texas A&M University 
System, College Station, Texas; Mr. Douglas Rapp, President, 
Cyber Leadership Alliance, Zionsville, Indiana; Dr. R. Scott 
Ralls, President, Northern Virginia Community College, 
Annandale, Virginia; and Mr. David Jarvis, Security & CIO Lead, 
IBM Institute for Business Value, Portsmouth, Rhode Island.

Legislative action

    On December 1, 2017, Chairwoman Foxx and HEWD Subcommittee 
Chairman Guthrie introduced H.R. 4508, the Promoting Real 
Opportunity, Success, and Prosperity Through Education Reform 
Act (PROSPER Act).
    On December 12, 2017, the Committee considered H.R. 4508 in 
legislative session and reported it favorably, as amended, to 
the House of Representatives by a vote of 23 to 17. The 
Committee considered and adopted the following amendments to 
H.R. 4508:
    1. Amendment in the Nature of a Substitute--HEWD 
Subcommittee Chairman Guthrie offered an amendment in the 
nature of a substitute. The amendment was adopted by voice 
vote.
    2. Apprenticeships in Federal Work Study--Rep. Ron Estes 
(R-KS) offered an amendment to allow institutions to use a 
portion of their federal work study dollars to identify and 
expand opportunities for apprenticeships for students and to 
assist employers in developing jobs that are part of 
apprenticeship programs. The amendment was adopted by a 22-17 
vote.
    3. Hazing--Rep. Glenn Thompson (R-PA) offered an amendment 
to curb hazing on college campuses. The amendment was adopted 
by a 23-17 vote.
    4. Opioid Addiction Recovery--Rep. Lloyd Smucker (R-PA) 
offered an amendment to require the Secretary to share best 
practices on successful college recovery programs and provide 
support and technical assistance to increase the number and 
capacity of high-quality programs to help students in recovery 
from opioid addiction. The amendment was adopted by voice vote.
    5. Drug and Opioid Prevention--Rep. Carol Shea-Porter (R-
NH) offered an amendment to clarify H.R. 4508 provisions 
relating to required drug and opioid prevention programming 
provided by institutions. The amendment was adopted by voice 
vote.
    6. Early Awareness--Rep. Drew Ferguson (R-GA) offered an 
amendment that requires the Secretary to report on activities 
undertaken to disseminate financial aid information to high 
school students and clarifies that such information should also 
improve the financial and economic literacy of students and 
their parents. The amendment was adopted by voice vote.
    7. Competency-Based Education--Rep. Glenn Grothman (R-WI) 
offered an amendment to amend the definition of a competency, 
clarify the restriction on using student aid for prior 
learning, allow for unequal disbursements of aid based on 
academic progress, and streamline the accreditation review of 
CBE programs. The amendment was adopted by a 22-17 vote.
    8. Assurance of Annual Counseling--Rep. Grothman offered an 
amendment to require financial aid administrators to annually 
affirm to the Secretary that they have provided the required 
counseling to all students receiving Title IV assistance. The 
amendment was adopted by a 21-19 vote.
    9. Early Estimator Tool Disclosure--Rep. Estes offered an 
amendment to add a disclosure to students using the early 
estimator tool to inform them about the difference between a 
loan and a grant. The amendment was adopted by voice vote.
    10. Inclusion and Respect--Rep. Tom Garrett (R-VA) offered 
an amendment to express the Sense of Congress on inclusion and 
respect. The amendment was adopted by voice vote.
    11. Complaint on Speech Policies--Rep. Garrett offered an 
amendment to require the Secretary to designate an employee at 
the Office of Postsecondary Education at the Department to 
receive complaints from students who believe an institution is 
not in compliance with a disclosed policy on speech or is 
enforcing a policy that has not previously been disclosed. The 
amendment was adopted by a 23-17 vote.
    12. Additional Counseling--Rep. Allen offered an amendment 
to clarify that nothing shall prevent institutions from 
providing additional financial aid counseling to recipients of 
aid under Title IV. The amendment was adopted by voice vote.
    13. Reduction of Full Time Department Employees--Rep. Todd 
Rokita (R-IN) offered an amendment that directs the Secretary 
to identify the number of full-time equivalent employees at the 
Department who work on or administer education programs and 
projects eliminated or consolidated under the bill and reduce 
the Department by that number of employees. The amendment was 
adopted by a 23-17 vote.
    14. United States Institute of Peace--Rep. Thompson offered 
an amendment to strike the repeal of the United States 
Institute of Peace. The amendment was adopted by voice vote.
    15. Pell Grant Bonus Study--Rep. Grothman offered an 
amendment to require the Secretary to study the impact of the 
Pell Grant Bonus. The amendment was adopted by voice vote.
    16. DHS Recruiting--Rep. Hunter offered an amendment to 
prohibit access to federal student aid for institutions of 
higher education that prohibit or prevent the Department of 
Homeland Security from recruiting on campus. The amendment was 
adopted by voice vote.
    17. Borrower Defense--Rep. Luke Messer (R-IN) offered an 
amendment to clarify that a borrower can submit an application 
for a defense to repayment no later than three yearsafter the 
misconduct, require the Secretary to submit a report to Congress 
indicating established policies and procedures, and require the 
Secretary to inform the borrower of deadlines, document requests, and 
the ability to seek a review under the Administrative Procedure Act. 
The amendment was adopted by voice vote.
    18. Study on Moving FSA to Treasury--Rep. Messer offered an 
amendment to require the GAO to study the feasibility and 
practicality of moving the Office of Federal Student Aid from 
the Department of Education to the Department of the Treasury. 
The amendment was adopted by voice vote.
    19. Plain Language Disclosure--Rep. Messer offered an 
amendment to direct the Secretary to develop a consumer 
friendly disclosure form for borrowers of federal student 
loans. The amendment was adopted by voice vote.
    20. Reverse Transfer--Rep. Polis offered an amendment to 
amend the General Education Provisions Act to allow for reverse 
transfer of student data. The amendment was adopted by voice 
vote.

                                Summary

    Since 1965, the Higher Education Act (HEA) has provided 
federal support to both individuals pursuing a postsecondary 
education and institutions of higher education. However, 
federal law is no longer working for postsecondary students. 
Since the last reform of the HEA in 2008 (the Higher Education 
Opportunity Act), our country has faced an economic crisis and 
the higher education landscape has significantly changed. Since 
the 2008 recession began, America faces a shortage of 6 million 
skilled workers. Students are facing higher tuition rates and 
student loan borrowers currently have more than a trillion 
dollars in student debt. Reforms must be made to assist 
students in completing an affordable higher education that will 
prepare them to enter the workforce with the skills they need 
to be successful.
    The PROSPER Act will help more Americans earn a lifetime of 
success by doing the following:
           Promoting innovation, access, and 
        completion;
           Simplifying and improving student aid;
           Empowering students and families to make 
        informed decisions; and
           Ensuring strong accountability and a limited 
        federal role.

Promoting innovation, access, and completion

     Strengthens Workforce Development. The bill 
expands opportunities for students to participate in industry-
led earn-and-learn programs that lead to high-wage, high-skill, 
and high-demand careers by supporting partnerships between 
industry and institutions to develop these programs. It also 
allows students to use Pell Grants for shorter-term programs 
that will assist them in entering the workforce more quickly. 
Additionally, the legislation focuses additional resources on 
the Federal Work-Study program, while eliminating the arbitrary 
cap that prevents more than 25 percent of an institution's 
Work-Study funding from flowing to students working at private-
sector companies. The bill also allows institutions to use more 
resources to locate and develop ``work-based'' learning jobs, 
including apprenticeships, for students that align with the 
students' career goals. The bill allows institutions to use 
institutional aid to develop and implement career-specific 
programs. It also requires accrediting agencies to have at 
least one representative from the business community on the 
agency's board.
       Encourages Innovative Learning. The bill repeals 
the outdated and rigid definition of distance education, making 
it possible for institutions to develop more innovative methods 
of delivering postsecondary education. It also encourages 
competency-based education by creating a clear pathway for such 
programs to be eligible for federal student aid to help 
students attain a less costly degree based on their own 
learning schedule. The bill also allows new providers of higher 
education to collaborate with traditional colleges and 
universities to offer educational programs to students that are 
eligible for student aid.
     Emphasizes Access and Completion. The bill 
encourages Pell-eligible students to complete on-time and with 
less debt by offering a $300 Pell Grant bonus to students who 
take 15 credits per semester in an award year. The legislation 
also reforms the TRIO programs to more easily allow first-time 
applicants the opportunity to compete for a grant, increasing 
access to the programs for more students by requiring a 20 
percent non-federal match and encouraging evidence-based 
programs focused on increasing college access and completion by 
setting aside at least 10 percent of grant funds for this 
purpose.

Simplifying and improving student aid

     Further Simplifies the FAFSA. The bill aligns the 
maximum income threshold required to qualify for the simplified 
version of FAFSA, known as the simplified needs test, with the 
simplified tax forms, so more middle class families will be 
able to easily and quickly complete the form. The bill also 
ensures students are allowed to continue to apply for federal 
student aid with income data from two years prior to the date 
of application. It also makes the FAFSA available on a mobile 
app and requires both the app and the online form to be 
consumer-tested so it is clear and easy to use.
     Streamlines Student Aid. The bill streamlines 
student aid programs into one grant program, one loan program, 
and one work-study program to ease confusion for students who 
are deciding the best options available to responsibly pay for 
their college education.
           One Grant. The bill reauthorizes the 
        Pell Grant program through Fiscal Year 2024 and 
        requires institutions to disburse the grants to 
        students on a weekly or monthly basis, similar to a 
        paycheck. It also directs the Secretary of Education 
        (the Secretary) to annually provide an individualized 
        Pell Grant status report to each grant recipient, so 
        students are aware of how much of the grant they have 
        used and how much is left. Further, the bill includes a 
        provision to prevent fraud in the Pell Grant program by 
        prohibiting students from receiving additional Pell 
        Grants if they received a grant for three award years 
        but did not earn any academic credit. The bill also 
        provides the Secretary additional discretion to stop 
        payments to students with unusual enrollment histories.
           One Loan. The bill streamlines the six 
        loans currently available into the new Federal ONE Loan 
        Program with one unsubsidized loan per category of 
        borrower: an undergraduate loan, a graduate loan, and a 
        parent loan. The program offers reasonable annual and 
        aggregate limits on undergraduate, graduate, and parent 
        borrowing and allows financial aid administrators to 
        develop lower loan limits for certain categories of 
        borrowers to ensure responsible lending. Like the 
        reform in the Pell Grant program, institutions are 
        required to disburse loans to students on a weekly or 
        monthly basis, similar to a paycheck. The bill 
        eliminates the origination fees borrowers are currently 
        charged for each loan disbursed and maintains the 
        market-driven interest rates set in current law.
           One Work-Study. The bill reforms the 
        outdated Federal Work-Study program allocation formula 
        by equitably distributing work-study dollars based on 
        Pell Grant dollars and undergraduate student need. It 
        creates a new set aside of up to $150 million for 
        institutions that have strong Pell Grant recipient 
        completion rates or have significant improvement of the 
        rate from the preceding academic year. The bill also 
        focuses the limited funding in this program for 
        students pursuing an undergraduate degree.
     Simplifies Repayment. The bill pares down the maze 
of loan repayment options to one standard 10-year repayment 
plan and one income-based repayment (IBR) plan. Borrowers in 
the IBR plan have affordable monthly payments of no more than 
15 percent of their discretionary income. Borrowers enrolled in 
the IBR plan will make such monthly payments until they repay 
the principal and interest they would have paid under a 
standard 10-year plan, as calculated when they entered 
repayment.

Empowering students and families to make informed decisions

     Improves Early Awareness. The bill requires the 
Secretary, in consultation with states, institutions of higher 
education, secondary schools, and college access programs, to 
notify secondary school students no later than the students' 
sophomore year of the availability of federal financial aid and 
the difference between federal grants and loans. It also 
encourages states, institutions of higher education, and other 
stakeholders to share best practices on disseminating 
information about financial assistance to these students. 
Additionally, the bill directs the Secretary to maintain a 
consumer-tested early estimator tool, available online and 
through a mobile app, that will give students and parents an 
estimate of a student's potential federal aid eligibility.
     Increases Transparency. The bill requires the 
Secretary to create a consumer-tested College Dashboard that 
displays key information about colleges and universities, 
including enrollment, completion, cost, and financial aid. The 
College Dashboard will include aggregated information on the 
average debt of borrowers at graduation and the average salary 
of students who received federal financial aid both five and 10 
years after graduation for each program at an institution of 
higher education that participates in a student aid program 
under Title IV. The Secretary is also required to provide 
students a link to the College Dashboard page of each 
institution listed on the student's FAFSA to make sure students 
know this information is available.
     Enhances Financial Aid Counseling. The bill 
requires all recipients of federal student aid to undergo 
enhanced financial aid counseling, including--for the first 
time--Pell Grant recipients and parent borrowers. The bill 
requires loan counseling to be tailored to a borrower's 
individual situation as well as improves the timing and 
frequency by requiring annual loan counseling before an 
individual signs on the dotted line, so the borrower, both 
students and parents, have the most current information. Exit 
counseling is bolstered to include information on the 
borrower's outstanding loan balance and anticipated monthly 
payments and contact information for the borrower's loan 
servicer. Annual Pell Grant counseling is also required for all 
Pell recipients.

Ensuring strong accountability and a limited federal role

     Strengthens Accountability through Accreditation. 
To streamline federal requirements placed on accreditors and 
focus accreditors on reviewing student outcomes, the bill 
replaces the current 10 statutory accreditation standards with 
a requirement that accreditors have standards that assess the 
institution's success in relation to the institution's mission 
with respect to student learning and educational outcomes. The 
bill also increases institutional accountability, without 
involvement by the Secretary. It does so by requiring 
accreditors have a system in place to annually identify 
accredited institutions or programs experiencing difficulties 
accomplishing their missions with respect to their established 
student learning and educational outcome goals.
     Increases Institutional Risk-Sharing. The bill 
reforms the return to Title IV process, which governs how 
unearned student aid dollars are returned to the federal 
government, to reduce burden and increase institutional risk-
sharing tied to student completion. To push institutions to 
focus on student completion and require institutions to share 
in the risk of non-completion, the burden of repaying unearned 
aid when a student withdraws from an institution is shifted on 
to the institution. Further, the bill replaces the 
institutional-level cohort default rate with a program-level 
loan repayment rate which will target federal student aid to 
only those programs where graduates have the ability to repay 
their student loans.
     Eliminates Burdensome Regulations and Unnecessary 
Reporting Requirements. The bill eliminates burdensome federal 
regulations that put Washington in the middle of issues that 
are the responsibility of institutions or states, limit student 
choice, and stifle innovative practices by institutions. The 
bill also repeals or streamlines reporting requirements that 
fail to provide useful information to students, families, and 
policymakers, and exacerbate rising college costs.
     Reduces the Secretary's Authority. The bill places 
strong prohibitions on the Secretary by explicitly prohibiting 
him/her from exceeding his/her authority, defining any terms 
inconsistent with the HEA, or adding any requirements on 
institutions and states that are not explicitly authorized in 
the law.
     Repeals Unfunded Programs. The bill repeals all 
unfunded programs ensuring congressional priorities are 
maintained in the future.

                            Committee Views


Introduction

    Our nation's higher education system is in need of 
comprehensive reform. We can no longer rubber stamp a law first 
created over fifty years ago. Reforming the Higher Education 
Act (HEA) provides policymakers an opportunity to improve the 
law and strengthen America's postsecondary system for students, 
parents, institutions, and taxpayers.
    Since the last reform of the HEA in 2008, our country has 
faced an economic crisis and the higher education landscape has 
seen significant change. Since the 2007 recession began, the 
American workforce faces a shortage of 6 million skilled 
workers.\1\ At the same time, students are facing higher 
tuition rates and have collectively taken on $1.34 trillion 
dollars in student debt.\2\ The average debt per borrower has 
increased 38 percent since 2008,\3\ and graduation rates remain 
low, with an average six-year completion rate of only 54.8 
percent.\4\ Unprecedented levels of student debt are having an 
impact on students and families, and creating a major drag on 
economic growth. The six different types of federal student 
loans, nine repayment plans, eight forgiveness programs, and 32 
deferment and forbearance options under current law have 
created more burden than opportunity for students. Reforms need 
to be made to assist students in completing an affordable 
higher education that will prepare them to enter the workforce 
with the skills they need to be successful.
---------------------------------------------------------------------------
    \1\Job Openings and Labor Turnover Summary, U.S. Bureau of Labor 
Statistics (2017), https://www.bls.gov/news.release/jolts.nr0.htm.
    \2\Federal Student Loan Portfolio Summary, Federal Student Aid 
(2017), https://studentaid.ed.gov/sa/sites/default/files/fsawg/
datacenter/library/PortfolioSummary.xls.
    \3\Id.
    \4\Completing College: A National View of Student Attainment 
Rates--Fall 2010 Cohort, National Student Clearinghouse Research Center 
(2016), https://nscresearchcenter.org/wp-content/uploads/
SignatureReport12.pdf.
---------------------------------------------------------------------------
    The Promoting Real Opportunity, Success, and Prosperity 
through Education Reform Act (PROSPER Act), H.R. 4508, reforms 
the HEA to help more Americans earn a lifetime of success by 
promoting innovation, access, and completion; simplifying and 
improving student aid; empowering students and families to make 
informed decisions; and ensuring strong accountability and a 
limited federal role.

                      Title I--General Provisions


Single definition

    Over the last few decades, the number and percentage of 
nontraditional, or contemporary, students attending 
postsecondary education institutions has increased. A 2015 
report released by the National Center for Education Statistics 
(NCES) stated:

          While definitions vary, researchers generally 
        consider nontraditional students to have the following 
        characteristics: being independent for financial aid 
        purposes, having one or more dependents, being a single 
        caregiver, not having a traditional high school 
        diploma, delaying postsecondary enrollment, attending 
        school part time, and being employed full time . . . . 
        About 74 percent of all 2011-12 undergraduates had a 
        least one nontraditional characteristic. Moreover, this 
        result is consistent over recent decades: since 1995-
        96, at least 70 percent of undergraduates possessed at 
        least one nontraditional characteristic.\5\
---------------------------------------------------------------------------
    \5\Demographic and Enrollment Characteristics of Nontraditional 
Undergraduates: 2011-12, National Center for Education Statistics 
(2015), https://nces.ed.gov/pubs2015/2015025.pdf.
---------------------------------------------------------------------------
    For most nontraditional students, alternate paths of 
postsecondary education (e.g., career and technical education 
schools, community colleges, or proprietary institutions) best 
serve the needs of these students. In fact, an alternative path 
is often provided by the proprietary college sector. During a 
July 8, 2011, hearing, Dr. Anthony Carnevale, Director of the 
Georgetown University Center on Education and the Workforce, 
stated:

          The for-profit sector has many strengths and is a 
        necessary component of a functional higher education 
        system. It has been wildly successful in enrolling 
        [nontraditional] students, especially older students, 
        minorities, and hard-to-serve students. Moreover, the 
        for-profit sector has proven adept at creating and 
        refining a model of postsecondary education that works 
        for students, offering flexibility not found in other 
        sectors.\6\
---------------------------------------------------------------------------
    \6\Testimony of Dr. Anthony Carnevale Before the Committee on 
Education and the Workforce Subcommittee on Higher Education and 
Workforce Training and the Committee on Oversight and Government Reform 
Subcommittee on Regulatory Affairs, Stimulus Oversight, and Government 
Spending, Hearing on The Gainful Employment Regulation: Limiting Job 
Growth and Student Choice, July 8, 2011, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=249467.
---------------------------------------------------------------------------
    In an effort to not limit the postsecondary options 
available to students, the PROSPER Act updates legal 
definitions within the HEA to ensure all eligible institutions 
are recognized fully as institutions of higher education. The 
current dual definition negatively impacts students because it 
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.
    The Committee strongly believes parity among all 
institutions will lead to greater equality and better position 
all students to be successful. Current law prohibits 
proprietary institutions from receiving institutional aid and 
the Committee believes this prohibition should remain. With 
this said, the PROSPER Act does not allow proprietary 
institutions to receive institutional aid, but does allow for 
centers, programs, and fellowships geared toward education in 
foreign languages and area studies to be created and operated 
at all institutions of higher education.

Foreign institutions

    Students looking to pursue a postsecondary education have 
the option to attend a domestic institution, a foreign 
institution, or a combination of both. Students who attend a 
foreign institution have the option to use federal financial 
aid at institutions that participate in the federal financial 
aid program. According to data released in October 2017, there 
are over 700 foreign institutions participating in the federal 
financial aid program, including foreign graduate medical, 
foreign nursing, and foreign veterinary schools.\7\
---------------------------------------------------------------------------
    \7\International Schools That Participate in the Federal Student 
Loan Programs, Postsecondary Education Participants System (2017), 
https://studentaid.ed.gov/sa/prepare-for-college/choosing-schools/
types/international.
---------------------------------------------------------------------------
    To gain eligibility and remain eligible to participate in 
federal student financial aid, foreign graduate medical, 
nursing, and veterinary schools must meet additional criteria. 
The PROSPER Act amends the additional eligibility criteria for 
foreign graduate medical schools to better meet the needs of 
the students by encouraging these institutions to provide 
higher quality programs and by holding them accountable for the 
performance of students receiving Title IV aid. The Committee 
also believes that foreign institutions should have the 
ability, like domestic institutions, to have written 
arrangements with ineligible institutions offering quality 
courses aligned with the program of study. Not all foreign 
institutions choose to participate in federal student financial 
aid. The Committee believes a decision by a foreign institution 
not to participate in federal student financial aid is not a 
determination of the quality of the programs offered. American 
students at foreign institutions participating in the federal 
student financial aid program should have the opportunity to 
benefit from a variety of quality programs.
    The PROSPER Act allows foreign institutions located in 
countries with auditing standards comparable to the 
International Financial Reporting Standards (IFRS) to submit 
only one audit report. Foreign institutions located in 
countries without comparable IFRS standards are still required 
to submit two audit reports. The requirement on foreign 
institutions to submit two audit reports costs institutions 
anywhere from $50,000 to $400,000 annually, and the Committee 
believes, with the appropriate quality controls, these funds 
could be better spent on students rather than on meeting 
burdensome federal government requirements.

Innovative forms of education

    The higher education sector is often resistant to change 
and innovation. Despite the proliferation of creative learning 
models and dramatically changing demographics of the student 
population, most colleges and universities continue to use the 
same worn tactics to instruct students. Federal rules favor the 
status quo, even as technology has rapidly transformed the way 
students learn and consume information. The law must be more 
flexible for future innovations, and institutions must be 
willing to meet the needs of contemporary students.
    H.R. 4508 repeals the antiquated and rigid definition of 
distance education and instead creates a definition of 
``correspondence education,'' making it possible for 
institutions to develop more creative methods of delivering 
postsecondary education. The PROSPER Act allows for innovative 
methods of providing postsecondary education to be supported, 
so long as the innovation is not correspondence education and 
institutions providing the education meet all other applicable 
requirements under the HEA. The Committee believes removing 
this outdated definition and its related regulatory roadblocks 
will give institutions the needed flexibility to innovate.

Student speech and association protections

    Recent episodes on college and university campuses expose a 
growing trend of intolerance and hostility toward speech deemed 
by some to be disagreeable or offensive. Incidents have 
included violently disrupting speeches and events,\8\ threating 
teachers,\9\ and silencing opposing opinions.\10\ The founders 
of our country believed a free expression of ideas and speech 
was an essential foundation to our nation, and captured its 
importance in the First Amendment. In a 1783 address to the 
officers of the Army, General George Washington highlighted the 
importance of this fundamental freedom:
---------------------------------------------------------------------------
    \8\Eugene Volokh, Protesters at Middlebury College shout down 
speaker, attack him and a professor, The Washington Post (March 4, 
2017), https://www.washingtonpost.com/news/volokh-conspiracy/wp/2017/
03/04/protesters-at-middlebury-college-shout-down-speaker-attack-him-
and-a-professor/?utm_term=.ed299f4d14ab.
    \9\Colleen Flaherty, Old Criticisms, New Threats, FIRE (June 26, 
2017), https://www.insidehighered.com/news/2017/06/26/professors-are-
often-political-lightning-rods-now-are-facing-new-threats-over-their.
    \10\Nationwide: Colleges Across the Country Disinvite Commencement 
Speakers, FIRE (2014), https://www.thefire.org/cases/disinvitation-
season/.

          If men are to be precluded from offering their 
        sentiments on a matter which may involve the most 
        serious and alarming consequences that can invite the 
        consideration of mankind, reason is of no use to us. 
        The freedom of speech may be taken away, and dumb and 
        silent, we may be led like sheep to the slaughter.\11\
---------------------------------------------------------------------------
    \11\Newburgh Address: George Washington to Officers of the Army, 
March 15, 1783, George Washington's Mount Vernon, http://
www.mountvernon.org/education/primary-sources-2/article/newburgh-
address-george-washington-to-officers-of-the-army-march-15-1783/.
---------------------------------------------------------------------------
    The First Amendment prohibits the government from 
infringing on free speech rights. Therefore, all public 
colleges and universities, as state agents, are legally bound 
to respect the constitutional rights of their students, 
including the right to free speech. As the Foundation for 
Individual Rights in Education has noted:

          That the First Amendment applies on the public 
        university campus is settled law. Public universities 
        have long occupied a special niche in the Supreme 
        Court's First Amendment jurisprudence. Indeed, the 
        Court has held that First Amendment protections on 
        campus are necessary for the preservation of our 
        democracy.\12\
---------------------------------------------------------------------------
    \12\State of the Law: Speech Codes, FIRE (2018), www.thefire.org/
in-court/state-of-the-law-speech-codes/.
---------------------------------------------------------------------------
    The Committee believes public institutions of higher 
education should not engage in activities that would stifle any 
constitutionally protected speech of a member or invited guest 
inthe educational community. Therefore, H.R. 4508 amends the 
existing Sense of Congress on Student Speech and Association Rights to 
express that free speech zones and restrictive speech codes are 
inherently at odds with the First Amendment and public institutions 
receiving funds under the HEA should not restrict the speech of their 
students.
    Private universities are not directly bound by the First 
Amendment, which limits only government action, and have the 
right to place a particular set of moral, philosophical, or 
religious teachings above a commitment to free expression. 
While private colleges and universities do not have the same 
constitutional obligations as their public counterparts, the 
Committee believes colleges and universities should be 
marketplaces of ideas and urges those institutions to do what 
they can to ensure their campuses foster robust debate and 
discussions that include all views.
    The Committee also 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 and that students are informed of any 
policies that may limit their ability to do so. Therefore, H.R. 
4508 requires institutions of higher education--in order to be 
eligible to receive funds under the law--to disclose annually 
to current and prospective students any policies held by the 
institution related to protected speech on campus, including 
policies limiting where and when such speech may occur. The 
legislation also requires the Secretary of Education 
(Secretary) to designate an employee within the Office of 
Postsecondary Education to receive complaints from students who 
believe an institution is not in compliance with a disclosed 
policy on speech or is enforcing a policy that has not 
previously been disclosed.
    Further, the Committee believes 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, including participation in a single-
sex social organization, 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 the HEA, whether or not such 
program, activity, or division is sponsored or officially 
sanctioned by the institution.

Higher education transparency

    Selecting a college or university is a personal decision 
for students and their families, with many variables involved 
in the decision-making process. To assist them in this 
decision, the federal government has taken steps in recent 
years to improve data collection and transparency in higher 
education, with better data ideally resulting in more informed 
choices. The Higher Education Opportunity Act, the 2008 
reauthorization of the HEA, required colleges and universities 
to make information about price, financial aid, and basic facts 
and figures--such as student demographics and graduation 
rates--readily available to the public. There are numerous 
other federal transparency initiatives currently available to 
students and their families that are authorized under HEA and 
that are created by various federal entities. However, instead 
of providing clarity, these initiatives add more confusion by 
presenting conflicting or redundant information with limited 
opportunity to compare different education options. Further 
complicating matters, available data does not include a large 
portion of the current college-going population or capture all 
crucial information students and families need to view and 
understand the entire landscape of higher education. Despite 
attempts by the federal government to improve data collection 
and transparency in the higher education system, students and 
families still struggle to access and understand information 
helpful in selecting the right postsecondary institution for 
their unique situations.
    During an April 24, 2013, hearing Mr. Travis Reindl, 
Program Director for the Education Division at the National 
Governors Association, urged Congress to streamline and improve 
higher education data for students:

          Simpler and clearer should be a goal for federal 
        efforts. The upcoming reauthorization of the Higher 
        Education Act provides a prime opportunity for the 
        [sic] Congress to review all of the existing 
        dashboards, report cards, and data tools for 
        postsecondary education to determine whether and how 
        they are being used and if there are opportunities for 
        streamlining or consolidation.\13\
---------------------------------------------------------------------------
    \13\Testimony of Travis Reindl Before the House Committee On 
Education and the Workforce Subcommittee on Higher Education and 
Workforce Training, Hearing on Keeping College Within Reach: Enhancing 
Transparency for Students, Families and Taxpayers, April 24, 2013, 
https://edworkforce.house.gov/calendar/eventsingle.aspx?EventID=330710.

    Additionally, Dr. Michelle Cooper, President of the 
Institute for Higher Education Policy, noted at an April 30, 
2015, hearing that ``[f]or first-generation and low-income 
students, having access to clear and reliable information is 
critical.''\14\
---------------------------------------------------------------------------
    \14\Testimony of Michelle Cooper Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Training, Hearing on Improving College Access and Completion for Low-
Income and First-Generation Students, April 30, 2015, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=398748.

    To streamline the confusing and conflicting information 
currently available, the bill eliminates the requirement that 
the Secretary gather and publish information institutions are 
already making publicly available on their websites. To help 
families make an informed decision, H.R. 4508 requires a 
streamlined and consumer-tested College Dashboard that will 
prominently display important data points on each institution, 
such as the size and type of the institution, the net price to 
attend, program-level debt and earnings information, and the 
completion rates of students who attend the institution. 
Additionally, the legislation ensures the College Dashboard 
allows students to easily compare this information to other 
institutions, disaggregated by key demographic areas, including 
race, socioeconomic level, and disability status. While all 
institutions of higher education participating in the federal 
student aid programs are required to report information to be 
displayed on the College Dashboard, the Committee recognizes 
students may want information on institutions that do not 
participate in the student aid programs. Therefore, the 
Committee urges the Secretary to allow any other institution of 
higher education to be included on the College Dashboard. As 
part of this streamlining, H.R. 4508 repeals the College 
Navigator, the College Affordability and Transparency Lists, 
the State Higher Education Spending Chart, and the Multi-year 
Tuition Calculator.
    H.R. 4508 requires, for the first time, aggregated 
information on the average debt of borrowers at graduation and 
the average salary of students who received federal financial 
aid both five and 10 years after graduation for each program at 
a participating institution of higher education be provided, so 
students can make informed decisions about where they want to 
pursue postsecondary education and what they want to study. 
This information will allow students to see what they could 
potentially earn as graduates from a particular program and 
then decide if those earnings match up to the cost of the 
institution under consideration.
    In a December 2017 op-ed in the Washington Post, Dr. 
Carnevale discussed the importance of the availability of key 
program-level information in college decision-making:

          This institution-based method for sorting higher 
        education speaks very little to the main reason most 
        people go to college: to get a degree that will help 
        them get a job. In the end, college is a black box. We 
        hope for the best and write a big check. A career 
        begins, however, with what a person majored in, not so 
        much by where that person got the degree. What you earn 
        depends much more on what you take in college than 
        where you go. From a career perspective, college is 
        more a market in program majors than a market in 
        institutions.\15\
---------------------------------------------------------------------------
    \15\Anthony P Carnevale, House Republicans got this right: Colleges 
should tell students how much bang their buck will buy, The Washington 
Post (Dec. 8, 2017), www.washingtonpost.com/news/grade-point/wp/2017/
12/08/house-republicans-promise-major-advances-in-college-transparency/
?utm_term=.41a90b305cb0.

    Dr. Carnevale also notes in a separate article in the Wall 
Street Journal that the PROSPER Act ``turns higher education 
into a market for programs and it breaks away the institution 
as the unit of value. . . . [I]t will create transparency and 
give people choices; we're going to have the information 
necessary to make markets work.''\16\
---------------------------------------------------------------------------
    \16\Douglas Belkin & Melissa Korn, Higher Education Act Proposal 
Primes Fight Over Future of Colleges, The Wall Street Journal (Dec. 2, 
2017), www.wsj.com/amp/articles/higher-education-act-proposal-primes-
fight-over-future-of-colleges-1512216000.
---------------------------------------------------------------------------
    Since there are a number of federal agencies in addition to 
the U.S. Department of Education (Department) that collect and 
publicly report information on colleges and universities, 
including the U.S. Department of Veterans Affairs, the U.S. 
Department of Defense, and the Consumer Financial Protection 
Bureau, students often receive duplicative and confusing 
information. To avoid this, H.R. 4508 directs the Secretary to 
coordinate with these other federal agencies to ensure all 
published higher education data is consistent with information 
available on the College Dashboard.
    As discussed above, the number and percentage of 
nontraditional, or contemporary, students has increased and now 
comprise a majority of all students.\17\ This trend is expected 
to continue in the coming years, with NCES estimating students 
older than 25 to increase by 18 percent between 2014 and 
2025.\18\ Despite their growing majority, these contemporary 
students are largely ignored in the current higher education 
data collection efforts. Under current law, the Secretary is 
required to publish only information regarding first-time 
students who attend classes full-time, generally leaving out 
those students who are older, have families or jobs, attend 
school part-time, or have previous college experience. To 
ensure the federal government provides a more complete picture 
of the higher education landscape, the PROSPER Act requires the 
Commissioner of Education Statistics (Commissioner) to ensure 
completion data is reflective of all students, both traditional 
and contemporary. H.R. 4508 also requires the publishing of 
information on the cost per credit hour, or the credit hour 
equivalency, on the College Dashboard, so students who attend 
school less than full-time are able to have a cost estimate 
more relevant to them.
---------------------------------------------------------------------------
    \17\Digest of Education Statistics, 2015, Table 303.40: Total fall 
enrollment in degree-granting postsecondary institutions, by attendance 
status, sex, and age: Selected years, 1970 through 2025, National 
Center for Education Statistics (2016), https://nces.ed.gov/programs/
digest/d15/tables/dt15_303.40.asp.
    \18\National Center for Education Statistics Fast Facts: 
Enrollment, National Center for Education Statistics, nces.ed.gov/
fastfacts/display.asp?id=98.
---------------------------------------------------------------------------
    The Committee appreciates the efforts made by the higher 
education community to create more comprehensive completion 
metrics that include a larger percentage of the current 
college-going population. Particularly, the Committee believes 
the Student Achievement Measure\19\ and the efforts of the 
Committee on Measures for Student Success provide a good 
foundation for the Commissioner's development of more robust 
completion metrics that also include transfer students. The 
Committee expects the Commissioner to consult these entities 
and others during the development of the metrics.
---------------------------------------------------------------------------
    \19\Student Achievement Measure, Student Achievement Measure, 
www.studentachievementmeasure.org/.
---------------------------------------------------------------------------
    H.R. 4508 directs the Secretary, in consultation with 
relevant stakeholders such as parents, students, institutions, 
and privacy experts, to review all data reporting requirements 
on institutions; determine which requirements are duplicative 
or unnecessary; and examine the best way to collect data from 
institutions to reduce burden and capture the data necessary to 
help ensure compliance, accountability, and transparency. As a 
part of the review, the Secretary is required to explore the 
feasibility of working with the National Student Clearinghouse 
to establish a third-party method to collect and produce 
aggregated institution and program-level information without 
compromising student data privacy and data security. The 
Secretary will then be required to implement the changes 
necessary to improve the data reporting process and submit a 
report to the authorizing congressional committees on any 
legislative changes needed to make improvements. The Committee 
believes reviewing institutional data reporting requirements 
and conducting a feasibility study of institutions working with 
the National Student Clearinghouse to improve reporting and 
reduce burden will lead to better information for students and 
families without sacrificing student privacy.

Reform of the Office of Federal Student Aid

    Federal bureaucracies inundated by administrative hurdles 
prevent government from best serving the people. Recognizing 
this trend, Congress designated the Department's Office of 
Federal Student Aid (FSA) as a performance-based organization 
(PBO), with the goal of improving service for students, 
integrating systems, providing greater flexibility in 
management and program delivery, and reducing administrative 
costs.\20\ In exchange for its PBO designation, Congress 
expected FSA to operate with greater efficiency and better 
customer services. These two objectives are even more vital 
with the end of the Federal Family Education Loan (FFEL) 
program, a federal guarantee lending program run in cooperation 
with the private marketplace, and the wholesale shift to direct 
lending. There are over 33 million individuals with Direct 
Loans holding over $1 trillion of debt as of the fourth quarter 
of 2017.\21\ Unfortunately, the Department's Inspector General 
and the Government Accountability Office (GAO) have repeatedly 
shown FSA is unable to deliver results. There are numerous 
management challenges plaguing FSA, including an ineffective 
and inefficient procurement process, insufficient oversight of 
contractors, improper security of sensitive information, and an 
inability to act as an equal partner with stakeholders.\22\
---------------------------------------------------------------------------
    \20\H. Rept. 105-481--HIGHER EDUCATION AMENDMENTS OF 1998, 
Congress.gov, www.congress.gov/congressional-report/105th-congress/
house-report/481/1.
    \21\Federal Student Loan Portfolio, Federal Student Aid, (Dec. 12, 
2017), studentaid.ed.gov/sa/about/data-center/student/portfolio.
    \22\Committee Raises Concerns with FSA Management, Single Servicer 
Proposal, Committee on Education and the Workforce (Aug. 8 2016), 
edworkforce.house.gov/news/documentsingle.aspx?DocumentID=400962.
---------------------------------------------------------------------------
    The Committee recognizes the need to strengthen oversight 
protections at FSA to promote better service and accountability 
for students, institutions, and taxpayers. The PROSPER Act 
improves oversight of FSA by requiring more transparent 
organizational goal-setting and including stakeholders 
throughout the goal-setting process. The bill establishes an 
FSA advisory board to oversee the activities at FSA and guide 
better decision-making. The advisory board will approve FSA's 
performance plan, make recommendations on providing bonuses for 
senior executives, and help adopt best practices for loan 
management employed in the private sector. No longer can FSA 
conduct unnecessarily long program-reviews, as the agency will 
have strict deadlines to meet. Further, FSA must be more 
transparent about the performance of the federal student loan 
system. H.R. 4508 requires FSA to publicly and electronically 
report certain aggregate statistics in order to help Congress, 
researchers, and the public evaluate the health of the federal 
student loan system. Collectively, these provisions will work 
together to reverse FSA's failures in internal operations, 
contract procurement and management, IT security, and customer 
service.

Addressing sexual assault

    Sexual assault on campus must be taken seriously by 
colleges and universities, and they must actively work to 
prevent and respond when incidents occur. The PROSPER Act puts 
students first when it comes to sexual assault. It provides 
institutions with appropriate guidelines and requirements 
necessary to help students when an assault happens and to 
prevent assaults in the first place.
    H.R. 4508 requires institutions to survey students at least 
once every three years to measure campus attitudes towards 
sexual assault and gauge the general climate of the campus 
regarding the institution's treatment of sexual assault on 
campus. The bill directs institutions of higher education to 
use the results of the survey to improve institutions' 
abilities to prevent and respond to incidents of sexual 
assault. The Committee believes campus climate surveys can be a 
helpful tool in assessing a specific campus environment and can 
lead to the development of appropriate awareness and education 
programs for the community. During a September 10, 2015, 
hearing Dr. Penny Rue, Vice President for Campus Life at Wake 
Forest University, noted the importance of climate surveys:

          Campus Climate surveys are another growing practice, 
        and these are used to assess students' perceptions of 
        and experiences with sexual assault or other forms of 
        gender-based violence on campus. Since such a small 
        number of sexual assaults are actually reported, it is 
        important for each campus to understand, through an 
        anonymous survey, the number of students who have 
        experienced a sexual assault, sexual harassment, 
        stalking or other forms of gender-based violence, as 
        well as providing data on attitudes that can be used to 
        shape prevention efforts. Through these campus climate 
        surveys [campuses will] be able to both understand the 
        scope of the problem on their campus and to measure 
        over time the effectiveness of their prevention 
        efforts. These surveys are designed to provide an 
        institution-specific picture that, in turn, enables 
        leaders to coordinate with the campus community to 
        strengthen prevention efforts in strategic and 
        proactive ways.\23\
---------------------------------------------------------------------------
    \23\Testimony of Dr. Penny Rue Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Training, Hearing on Preventing and Responding to Sexual Assault on 
College Campuses, September 10, 2015, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=399274.

    To aid institutions in their responsibility to survey 
students, H.R. 4508 requires the Secretary to develop sample 
surveys an institution may use but prohibits the Secretary from 
regulating on the contents of the survey to ensure institutions 
can design surveys to best meet their needs. The Committee 
believes surveys should be designed with the goal of informing 
and improving campus prevention and response efforts and 
anonymous responses should be guaranteed. These surveys should 
not be designed to serve as a consumer information tool or an 
enforcement mechanism, as this may compromise their ultimate 
usefulness as a tool for institutional improvement by 
discouraging candidness and honest responses. At the same 2015 
hearing, Dr. Rue went on to discuss the importance of 
---------------------------------------------------------------------------
institutional autonomy in survey design:

          What is less helpful is the notion that one 
        standardized survey would be imposed on all 
        institutions by the federal government. This approach 
        does not accommodate the wide array of campus 
        environments or recognize the diligent work of the 
        institutional community to address their own unique 
        needs and challenges. Each institution should have the 
        autonomy to develop the best survey for their campuses 
        and their students. American higher education is 
        fortunate to have a wide range of colleges and 
        universities that range from four-year residential, to 
        community colleges to primarily on-line colleges. One 
        mandatory campus climate survey will not meet the needs 
        of each college or university, and the regulatory 
        burden will siphon resources away from prevention and 
        support initiatives.\24\
---------------------------------------------------------------------------
    \24\Id.

    When victims of sexual assault come forward, they often are 
in distress and traumatized. They may want to officially report 
the incident to a Title IX coordinator or the police, or they 
may merely be looking for counseling, emotional support, or 
other available resources to help them cope. The Committee 
believes access to qualified counselors to support students who 
are victims of sexual assault is critically important. 
Therefore, the PROSPER Act requires colleges and universities 
to provide victims access to an advisor who can provide 
confidential support to the greatest extent allowable by law 
and answers to their questions. Additionally, H.R. 4508 
requires institutions to develop a one-page form to guide and 
assist students who may be victims of sexual assault and to 
make the form widely available to students.
    H.R. 4508 requires the Secretary, in consultation with the 
U.S. Attorney General, to develop best practices for memoranda 
of understanding (MOU) between institutions and local law 
enforcement and to disseminate the best practices on the 
Department's website. The Committee recognizes MOUs between 
institutions and local law enforcement can provide clarity 
regarding coordination and separation of responsibilities 
between the institution and law enforcement, as well as address 
jurisdictional matters. However, while the practice should be 
encouraged, it should not be mandated, as institutions may be 
unable to reach an agreement with the local authorities that is 
in the best interests of their students and the campus 
community.

        Title II--Expanding Access to In-Demand Apprenticeships


Repeal of teacher programs

    H.R. 4508 repeals the Teacher Quality Partnership (TQP) 
Grant program and programs authorized under part B of Title II 
as well as related reporting requirements. The TQP Grant was 
repealed in H.R. 5, the Student Success Act (114th Congress), 
making H.R. 4508 consistent with previous legislation passed by 
the Committee and the House. Additionally, the Obama and the 
Trump administrations' budget requests since FY 2011 have 
proposed consolidating or eliminating the TQP program to 
support additional flexibility for state and local efforts to 
recruit and retain effective teachers through the Elementary 
and Secondary Education Act (ESEA).\25\ The programs authorized 
under part B of Title II have never received funding. 
Therefore, the Committee believes these programs should be 
removed from the statute as no previous Congress--regardless of 
which party controlled the majority--has funded their creation. 
The Committee agrees with the previous and current 
administrations' budget requests to support flexibility and 
believes the flexibility provided to states and school 
districts through the Supporting Effective Instruction program 
authorized under Title II of the ESEA is preferable to the 
existing system of small programs that cater to certain 
constituencies and have very limited benefit for classroom 
instruction. Further, the Committee supports reduced reporting 
burdens for states and institutions of higher education. As 
H.R. 4508 no longer includes teacher-specific program funding, 
it is not appropriate to continue federal reporting 
requirements specific to teacher preparation programs.
---------------------------------------------------------------------------
    \25\Innovation and Instructional Teams Fiscal Year 2011 Budget 
Request, Department of Education (2011), Page F-72. https://
www2.ed.gov/about/overview/budget/budget11/justifications/f-iit.pdf.
---------------------------------------------------------------------------

Apprenticeship grants

    Since the last reauthorization of the HEA, the country has 
faced the worst economic recession in a generation, 
transforming the American workforce and the postsecondary 
education landscape. As previously noted, the American 
workforce faces a shortage of 6 million skilled workers.\26\ 
Colleges and universities need to provide students the 
opportunity to gain the skills necessary to succeed in the 
workforce. The Committee believes an important way these skills 
can be successfully developed is through earn-and-learn 
programs, including apprenticeship programs, created in 
collaboration with business and industry. Apprenticeships are a 
general workforce development strategy to prepare individuals 
in a specific occupation using a combination of structured on-
the-job learning and related, often classroom-based, 
instruction. They provide important earn-and-learn 
opportunities, while also preparing students for good-paying 
careers.
---------------------------------------------------------------------------
    \26\Job Openings and Labor Turnover Summary, U.S. Bureau of Labor 
Statistics (2017), https://www.bls.gov/news.release/jolts.nr0.htm.
---------------------------------------------------------------------------
    Based on the most recent National Household Education 
Survey of adult education, an estimated 2.1 million Americans 
participated in apprenticeships in 2006. Nevertheless, more 
needs to be done to address our nation's critical workforce 
needs. To help address those needs, the bill revamps and moves 
an existing competitive grant program for community colleges 
(previously referred to as the Strengthening Institutions 
Program in Title III) to Title II of the law in order to focus 
on increasing the availability of earn-and-learn programs for 
students.
    H.R. 4508 expands student access to, and participation in, 
industry-led earn-and-learn programs, including 
apprenticeships, that lead to high-wage, high-skill, and high-
demand careers by supporting partnerships between businesses 
and colleges. Under the legislation, grants are made available 
to eligible partnerships consisting of at least one business 
and one institution of higher education to develop or expand 
earn-and-learn programs of not more than two years in length 
that lead to a recognized postsecondary credential and require 
a 50 percent match from non-federal funds.
    At an October 24, 2017, hearing, Dr. Scott Ralls, President 
of Northern Virginia Community College, described the 
importance of work-based learning programs:

          Sometimes we have programs that aren't formal 
        apprenticeship, but they are very much important 
        because of that work-based learning. Because for many 
        students coming out of our colleges and universities 
        now, many of them, unlike when I was a student, they 
        didn't work in high school. . . . So apprenticeship 
        becomes even more important, I believe, for today's 
        students. . . .\27\
---------------------------------------------------------------------------
    \27\Testimony of Scott Ralls Before the Committee on Education and 
the Workforce Subcommittee on Higher Education and Workforce 
Development and the Committee on Homeland Security Subcommittee on 
Cybersecurity and Infrastructure Protection, Joint Hearing on Public-
Private Solutions to Educating a Cyber Workforce, October 25, 2017, 
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=402045.

    The Committee believes federal efforts to promote 
apprenticeships should provide employees and job creators with 
flexibility to innovate and develop high quality earn-and-learn 
programs without overreach from Washington. Mr. Mike Bennett, 
Vice President of Cianbro, echoed this sentiment at a July 26, 
2017, hearing, saying, ``The programs must be industry and 
market driven and flexible in structure, scheduling, and 
duration to address the changes with an industry's means, 
methods, and technology.''\28\ According to analysis by the 
American Action Forum, the PROSPER Act will ``lead to at least 
733 apprenticeship programs and 87,000 new apprentices.''\29\ 
The PROSPER Act provides eligible partnerships the needed 
flexibility to design programs that will meet the needs of 
their students as well as the workforce.
---------------------------------------------------------------------------
    \28\Testimony of Mike Bennett Before the Committee on Education and 
the Workforce Subcommittee on Higher Education and Workforce 
Development., Hearing on Expanding Options for Employers and Workers 
Through Earn-and-Learn Opportunities, July 26, 2017, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=401905.
    \29\Ben Gitis, Chad Miller, Rahee Jung, Earn and Learn: A Review of 
a Proposal to Expand Apprenticeships in High-Growth Industries, 
American Action Forum (Feb. 5, 2018), https://
www.americanactionforum.org/research/earn-learn-review-proposal-expand-
apprenticeships-high-growth-industries.
---------------------------------------------------------------------------

                      Title III--Institutional Aid

    The PROSPER Act reauthorizes all minority-serving 
institution (MSI) programs, the Tribally Controlled Colleges 
and Universities (TCCU) program, and the Historically Black 
Colleges and Universities (HBCUs) program. According to the 
2017 Eligibility Matrix released by the Department, there are 
nearly 700 institutions that are eligible to receive 
institutional aid, including HBCUs and TCCUs.\30\ Of these 
eligible institutions, there are more than 400 institutions 
that are participating in Title III programs.\31\
---------------------------------------------------------------------------
    \30\Eligible Institutions for Title III and Title V Programs, 
Department of Education (2017), https://www2.ed.gov/about/offices/list/
ope/idues/eligibility.html#el-inst.
    \31\Id.
---------------------------------------------------------------------------
    The Committee believes it is important for these 
institutions to have the ability to choose what works best for 
their students and not be limited in the applicable services 
they can provide. The PROSPER Act makes meaningful reforms to 
the institutional aid programs by expanding the allowable uses 
to include activities such as establishment of community 
outreach programs, development of career-specific programs, 
dual or concurrent enrollment, and pay for success initiatives. 
The bill also explicitly allows institutions to award 
scholarships from their endowments and promotes institutional 
self-sustainability by requiring eligible institutions to 
develop a comprehensive plan that will result in institutions 
needing less institutional aid to offer the same services to 
their students. The Committee also believes that while these 
programs are intended to provide support to institutions and 
students, the goal is for these institutions to not be 
dependent on this funding.
    In addition, the PROSPER Act establishes a requirement for 
participating schools to maintain a completion rate of at least 
25 percent in order to be eligible for additional federal 
dollars. The institutional aid program for MSIs was created in 
the Higher Education Amendments of 1986 with the intention to 
bolster institutions with high minority and low-income student 
concentrations. In subsequent reauthorizations, Congress added 
various allowable uses to provide services that increased 
academic success. These institutions have now been getting a 
special subset of money with the goal of helping them serve a 
particular student population. The PROSPER Act's inclusion of a 
minimum graduation threshold signals to institutions that the 
federal government and taxpayers want to ensure the funds are 
helping to further the completion goal. The Committee believes 
this rate should be met by most institutions currently 
receiving funds as the rate will include more than just first-
time, full-time students. A 2017 American Council on Education 
report conducted a study using data from the National Student 
Clearinghouse (NSC)--beyond what is collected by the federal 
government--to examine howstudents who began attending an MSI 
in 2007 progressed through higher education.\32\ The report found that 
completion rates for MSIs were higher than the federal graduation rate 
suggests. In fact, when it comes to students who completed within 150 
percent and 200 percent of normal time for completion, the study found 
the following:
---------------------------------------------------------------------------
    \32\Lorelle L. Espinosa, Jonathan M. Turk, and Morgan Taylor, 
Pulling Back the Curtain: Enrollment and Outcomes at Minority Serving 
Institutions, American Council on Education (2017), http://
www.acenet.edu/news-room/Pages/Pulling-Back-the-Curtain-Enrollment-and-
Outcomes-at-Minority-Serving-Institutions.aspx.
---------------------------------------------------------------------------
     The total completion rate for public four-year 
HBCUs was 43 percent, which increased to nearly 62 percent for 
students who enrolled exclusively full time, compared to a 
federal graduation rate of 34.1 percent.
     The completion rate was 66.7 percent when looking 
at exclusively full-time students at private four-year HBCUs, 
compared to a federal graduation rate of 43.9 percent.
     The completion rate for exclusively full-time 
students at public four-year Predominantly Black Institutions 
was nearly 52 percent compared to a federal graduation rate of 
16.6 percent. The total completion rate for all students was 
34.1 percent.
     The completion rate for exclusively full-time 
students at public two-year Hispanic-Serving Institutions 
(HSIs) was 40.3 percent, compared to the federal graduation 
rate of 25.5 percent. The total completion rate for public 
four-year HSIs was approximately 50 percent and was 74.1 
percent for exclusively full-time students, compared to a 
federal graduation rate of 42.7 percent.
     The completion rate for exclusively full-time 
students at public four-year Asian American and Native American 
Pacific Islander-Serving Institutions was nearly 88 percent 
according to NSC data, compared to a federal graduation rate of 
66.2 percent.
    Under the PROSPER Act, the completion rate is calculated by 
counting a student as completed if the student graduates within 
150 percent normal time for completion or if the student 
transferred from a program that provided substantial 
preparation within 150 percent normal time for completion. 
Because the PROSPER Act proposes to collect student data beyond 
first-time, full-time, the completion rate will include 
students who are full-time and less than full-time. The 
Committee believes it is important to push institutions to 
graduate their students and equip them for the workforce. When 
students complete their education, they are more likely to 
obtain a higher paying job and pay back their loans. A 25 
percent completion rate requirement coupled with the ability to 
develop career specific programs will accomplish this goal 
without negatively impacting institutions or students.

                      Title IV--Student Assistance

    The federal government's decades long pursuit to make 
college affordable for all Americans has given rise to a 
convoluted maze of federal student aid programs, including 
several grant programs, six different types of student loans, 
nine repayment plans, eight forgiveness programs, and 32 
deferment and forbearance options. Ms. JoEllen Soucier, a 
financial aid administrator for the Houston Community College 
System, testified she has ``seen the complexity of the student 
aid process increase greatly over the past 25 years.'' She went 
on to say, ``[T]he entire process from application to repayment 
has become an intricate puzzle that only a seasoned 
professional can navigate and understand.''\33\
---------------------------------------------------------------------------
    \33\Testimony of JoEllen Soucier Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Development, Hearing on Improving Federal Student Aid to Better Meet 
the Needs of Students, March 21, 2017, https://edworkforce.house.gov/
uploadedfiles/soucier_written_testimony.pdf.
---------------------------------------------------------------------------
    Unfortunately, this layered approach to education financing 
has resulted in unprecedented levels of student debt and has 
created more burden than opportunity for students. The proof is 
in the numbers. Average debt per borrower has increased 38 
percent since 2008, and families collectively have taken on 
more than a trillion dollars in federal student loans.\34\ At 
the same time, the federal investment has never been higher. 
Over the last 10 years, the total volume of federal grants has 
risen 102 percent and total volume of federal loans has 
increased 31 percent. In the 2016-17 academic year, the federal 
government spent more than $123 billion in grants and loans 
authorized by the HEA.\35\
---------------------------------------------------------------------------
    \34\Federal Student Loan Portfolio Summary, Federal Student Aid 
(2017), https://studentaid.ed.gov/sites/default/files/fsawg/datacenter/
library/PortfolioSummary.xls (last visited Jan 10, 2018).
    \35\Trends in Student Aid 2017, CollegeBoard (Oct. 2017), available 
at https://trends.collegeboard.org/sites/default/files/2017-trends-
student-aid_0.pdf.
---------------------------------------------------------------------------
    The complicated system of federal aid programs is difficult 
to navigate for many families and has contributed to the rising 
cost of college, making a postsecondary education a risky 
gamble for students. The Teacher Education Assistance for 
College and Higher Education (TEACH) Grants illustrate this 
point. These grants are given to students who agree to teach 
for four years at a school or educational service agency that 
serves students from low-income families. If a graduate who 
received a TEACH grant does not complete the service 
obligation, the grant converts to a loan. Graduates cited the 
lack of transparency and paperwork burden as some of the 
reasons for their grant to loan conversions. The Committee 
believes that the terms of federal financial aid should be 
clear and comprehensible. In its FY 2018 budget, the Department 
estimated that 65 percent of TEACH grants will convert to 
loans.\36\ The program's high grant to loan conversion rate 
leaves too many students worse off, which is why these grants 
are eliminated in H.R. 4508.
---------------------------------------------------------------------------
    \36\U.S. Department of Education TEACH Grants Fiscal Year 2018 
Budget Proposal, Department of Education (2017), https://www2.ed.gov/
about/overview/budget/budget18/justifications/p-teach.pdf.
---------------------------------------------------------------------------
    At a November 13, 2013, hearing, Dr. Sandy Baum, Senior 
Fellow at the Urban Institute, testified about the qualities 
that would encompass an effective student aid system:

          Effective student aid requires more than dollars. The 
        aid program must be designed so that that the students 
        who have the most potential to benefit from the program 
        know about it, understand it, can predict and count on 
        its benefits, and can access it without undue 
        difficulty.\37\
---------------------------------------------------------------------------
    \37\Testimony of Sandy Baum Before the Committee on Education and 
the Workforce Subcommittee on Higher Education and Workforce 
Development, Hearing on Keeping College Within Reach: Simplifying 
Federal Student Aid, November 13, 2013, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=348909.

    The Committee agrees that it should not take a degree to 
figure out how to pay for a degree and that the simplification 
of the federal student aid process will be beneficial to all 
students. The PROSPER Act's federal student aid simplification 
to a one grant, one loan, one work-study framework promotes 
access, affordability, and completion. A simplified federal 
student aid framework is the key to unlocking a thriving future 
for many generations. Ms. Kristin Conklin, a founding partner 
of HCM Strategists, summarized the urgency and importance of 
simplifying federal student aid at a March 21, 2017, hearing, 
saying, ``A simplified federal financial aid system is part of 
the solution for a nation that needs many more skilled 
graduates, a stronger middle class, and more opportunity.''\38\ 
---------------------------------------------------------------------------
Ms. Conklin ended her testimony by saying:

    \38\Testimony of Kristen Conklin, Hearing on Improving Federal 
Student Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
          Federal financial aid is the foundation for college 
        affordability in America. Decisions today to simplify 
        the federal financial aid programs and remove the 
        barriers to on-time completion can pave the way for 
        more states, communities, institutions and employers to 
        build upon this federal foundation and expand 
        affordable pathways for students.\39\

    \39\Id.
---------------------------------------------------------------------------
    The Committee wants to transform this vision into reality. 
Students deserve a streamlined system that is easy to 
understand so they can responsibly finance their college 
careers, and contemporary students need a 21st century student 
aid system that accommodates their lifestyles and chosen 
courses of study. The reforms in H.R. 4508 that create a one 
grant, one loan, one work-study framework improve America's 
postsecondary education system for students, parents, 
institutions, and taxpayers.

Pell Grants

    The Pell Grant program is the cornerstone of federal 
student aid for low-income students and the single largest 
source of postsecondary student aid. In Fiscal Year 2017, the 
program provided approximately $28.5 billion to approximately 
7.5 million students.\40\ The Committee recognizes the 
important role this program plays in providing access to 
postsecondary education for low-income students. However, in 
recent years, the program has experienced tremendous growth in 
cost, almost tripling from $12.8 billion\41\ in 2006 to $35.7 
billion in 2010.\42\ The rapid growth of the program was caused 
by the recent economic downturn that led to increased student 
enrollment, eligibility expansions, and an increase in the 
maximum award. Program costs have since dropped to $28.5 
billion in FY 2017,\43\ leading to a current cumulative surplus 
of $8.6 billion.\44\ But without reforms, that surplus will 
diminish as program costs are projected to rise, leading to a 
projected annual shortfall beginning in FY 2020.\45\ Therefore 
H.R. 4508 reauthorizes the program through Fiscal Year 2024, 
with key reforms to ensure the program remains available to 
future generations.
---------------------------------------------------------------------------
    \40\Pell Grant Program, Discretionary: Cumulative Shortfall/
Surplus--CBO's June 2017 Baseline, Congressional Budget Office (June 
2017), https://www.cbo.gov/sites/default/files/recurringdata/51304-
2017-06-pellgrant.pdf.
    \41\Student Financial Assistance Fiscal Year 2014 Budget Request, 
Department of Education, https://www2.ed.gov/about/overview/budget/
budget14/justifications/q-sfa.pdf.
    \42\Student Financial Assistance Fiscal Year 2018 Budget Request, 
Department of Education, https://www2.ed.gov/about/overview/budget/
budget18/justifications/o-sfa.pdf
    \43\Congressional Budget Office, supra note 40.
    \44\Id.
    \45\Calculation based on CBO June 2017 baseline and current level 
appropriations going forward.
---------------------------------------------------------------------------
    The Committee believes that not extending the annual 
inflationary increases to the mandatory portion of the Pell 
Grant will help put the program on a sustainable path for the 
future. Additionally, H.R. 4508 requires the Secretary to 
report annually to the authorizing committees on the cost of 
the Pell Grant program to better ensure Congress is aware of 
any growth in cost of the program in a timely manner.
    Adding to the cost of the Pell Grant program is the fact 
the majority of full-time students do not graduate on time. 
Today, the traditional ``four-year'' degree is much more often 
a five- or even a six-year degree for a majority of students. 
This means that rather than completing on time using only four 
years' worth of a Pell Grant, these students are also using the 
grant for a fifth and sixth year of undergraduate education, 
which costs the federal government approximately an additional 
$12,000 per student eligible for the maximum award. This not 
only increases the cost of the program, it is also a 
significant cost to the student in terms of additional tuition 
and lost wages. A recent report from Complete College America, 
``Four-Year Myth,''\46\ shows the cost to a typical student 
taking an extra year to complete:
---------------------------------------------------------------------------
    \46\Four-Year Myth: Make College More Affordable. Restoring the 
Promise of Graduating on Time, Complete College America (2014), https:/
/completecollege.org/wp-content/uploads/2017/05/4-Year-Myth.pdf.
---------------------------------------------------------------------------
     At public two-year institutions, five percent of 
full-time students pursuing associate degrees graduate on time. 
An extra year costs $15,933 in tuition and fees, room and 
board, books and supplies, transportation and other expenses. 
In addition, students give up approximately $35,000 in lost 
wages by graduating late. The total cost: $50,933.
     At public four-year institutions, 19 percent (non-
flagship) and 36 percent (flagship/very high research) of full-
time students graduate on time. An extra year costs $22,826 in 
tuition and fees, room and board, books and supplies, 
transportation and other expenses. In addition, students give 
up $45,327 in lost wages by graduating late. The total cost: 
$68,153.\47\
---------------------------------------------------------------------------
    \47\Id.
---------------------------------------------------------------------------
    Current federal student aid policies are also doing little 
to encourage students to complete on time. Typically, in order 
to graduate in two or four years, a student must take at least 
15 credits per semester or 30 credits over the year; however, a 
student is only required to take 12 credits a semester to be 
considered full-time and receive the maximum Pell Grant award 
for which they are eligible. A student taking only 12 credits a 
semester and 24 credits a year will be unable to graduate on 
time. According to Complete College America, ``Each extra 
semester comes with a cost, and the longer it takes, the more 
life gets in the way--decreasing the likelihood students will 
ever earn their degree. . . . The result: students graduate 
late, if at all, and rack up unnecessary time and debt in the 
process.''\48\
---------------------------------------------------------------------------
    \48\15 to Finish, Complete College America, https://
completecollege.org/strategy/15-to-finish/.
---------------------------------------------------------------------------
    H.R. 4508 encourages Pell-eligible students to complete on-
time and with less debt by offering a $300 bonus per award year 
to students enrolling in a greater than full-time workload that 
will lead to the completion of 30 or more credits or the 
equivalent coursework for the award year. For the typical 
student, this will require taking at least 15 credits per 
semester to be eligible to receive the Pell Grant Bonus. The 
bonus amount will be in addition to the student's scheduled 
award, and all students receiving a Pell Grant that are 
enrolled in the required amount of coursework will be eligible 
to receive the bonus. However, a student cannot receive any 
portion of the bonus in payment periods for which the student 
is also receiving Pell Grant funds through the year-round Pell 
Grant authority.
    The Pell Grant Bonus is based on a proposal from the 
National Association of Student Financial Aid Administrators 
(NASFAA) called ``Super Pell.'' NASFAA's report, ``Reimagining 
Financial Aid to Improve Student Access and Outcomes,'' 
discusses the benefits of a bonus amount of Pell Grant dollars 
for on-time enrollment:

          An immediate financial incentive in the form of extra 
        Pell dollars (i.e., Super Pell), on top of a full-time 
        Pell Grant scheduled award for enrollments greater than 
        12 credit hours, would have the effect of encouraging 
        students to complete their academic programs more 
        quickly. Depending on how it is structured, Super Pell 
        could also lead to fewer lifetime Pell dollars being 
        spent on these students because students would receive 
        a small amount of extra Pell funds for each term at 
        greater than 12 hours, rather than an extra term or 
        year of a full scheduled award. Pell-eligible students 
        who complete a baccalaureate degree within four years 
        rather than longer would also likely incur less student 
        loan debt. Even for the minority of schools that charge 
        higher amounts for greater workloads, the marginal 
        higher costs due to enrollment greater than 12 credits 
        are certainly less than the costs of additional terms 
        of enrollment, not to mention the opportunity costs of 
        enrollment in college.\49\
---------------------------------------------------------------------------
    \49\Reimagining Financial Aid to Improve Student Access and 
Outcomes, NASFAA (2013), https://www.nasfaa.org/uploads/documents/
ektron/67439aeb-419d-4e9c-9035-4278d0bbed61/
d19119911e864c39abb555e99f130d122.pdf.

    The Committee believes on-time completion is a key 
component of reducing the cost of college for students and the 
cost of the Pell Grant program for taxpayers. While the PROSPER 
Act makes bold reforms to help improve completion, the 
Committee also urges colleges and universities to take action 
to facilitate on-time completion for their students.

TRIO

    The PROSPER Act reauthorizes the TRIO programs that were 
created to serve students from disadvantaged backgrounds by 
providing services to increase postsecondary access and 
completion. These programs currently serve more than 800,000 
students with more than 2,500 programs operating across every 
state.\50\ While these programs seem to serve a large 
population, in actuality millions of students go unserved by 
these programs. For fall 2017, the National Center for 
Education Statistics reported total enrollment numbers of 50.7 
million students in public elementary and secondary schools and 
20.4 million students in institutions of higher education,\51\ 
meaning approximately only 1 percent of all students are 
currently being served by a TRIO program.
---------------------------------------------------------------------------
    \50\TRIO Projects by State: FY 2016, Council for Opportunity in 
Education (March 13, 2017), http://www.coenet.org/files/bulletin_board-
TRIO Projects_by_State_FY_2016_031317.pdf.
    \51\National Center for Education Statistics Fast Facts: Back to 
School Statistics, National Center for Education Statistics, https://
nces.ed.gov/fastfacts/display.asp?id=372.
---------------------------------------------------------------------------
    The data is clear there are many more students in need of 
support services than are currently being served by TRIO. 
Therefore, the Committee believes there should be a set aside 
of no less than 10 percent of TRIO funds to allow new 
applicants that have not previously received a TRIO grant to 
meet the needs of low-income students currently underserved in 
postsecondary education and to address the needs of low-income 
students in our secondary schools. Setting aside funds will 
ensure new applicants have the opportunity to take advantage of 
the services offered by these programs. If there are not enough 
qualified new applicants to utilize the set aside, the funds 
would be returned to the general TRIO fund for additional 
future awards.
    The Committee also believes entities and partnerships 
seeking to participate in the TRIO programs should provide a 20 
percent match as a condition of participation. Throughout the 
HEA, matching requirements are placed on entities seeking to 
participate in certain grant programs as a way to promote 
institutional accountability and sustainability. This matching 
requirement allows cash or in-kind donations with the ability 
to accrue such matches over the duration of the grant period. 
The value of in-kind donations must be calculated according to 
applicable Office of Management and Budget circulars and 
Department General Administrative Regulations, must be 
verifiable from the records kept by the grantee, and must show 
how the value of such contribution was derived. This match will 
allow the programs to expand their reach to serve more students 
seeking services.
    These programs should also ensure students are prepared to 
complete college-level coursework. Therefore, the PROSPER Act 
amends the required services for the Talent Search and Upward 
Bound program to mandate that grantees offer remedial education 
services where necessary. Addressing remedial education should 
be a priority of the Department, as too many students graduate 
from secondary school unprepared for postsecondary-level work. 
A 2016 NCES report concluded that among students beginning 
postsecondary education in 2003-04, ``68 percent of those 
starting at public 2-year institutions and 40 percent of those 
starting at public 4-year institutions took at least one 
remedial course during their enrollment between 2003 and 
2009.''\52\
---------------------------------------------------------------------------
    \52\Remedial Coursetaking at U.S. Public 2-and 4-Year Institutions: 
Scope, Experience, and Outcomes: Statistical Analysis Report, National 
Center for Education Statistics Institute of Education Sciences, 
Department of Education (2016), https://nces.ed.gov/pubs2016/
2016405.pdf.
---------------------------------------------------------------------------
    In addition, the PROSPER Act requires the Secretary to set 
aside no less than 10 percent of funds for innovative measures 
promoting postsecondary access and completion for low-income 
students. The program requires applicants to use evidence-based 
approaches that increase access to and completion of 
postsecondary education. These grants will be awarded in a 
three-tier approach, and grantees will independently evaluate 
their programs and submit an annual report to the Secretary. 
The Committee believes the ability for any institution to use 
evidence-based approaches to increase access and completion of 
postsecondary education will best serve the student because 
these new methods will be tested and proven to have positive 
outcomes. Instead of restricting institutions on how they can 
meet student needs, this allows for innovative ways to tailor 
services to students who most need assistance.

Gaining Early Awareness and Readiness for Undergraduate Program

    The Gaining Early Awareness and Readiness for Undergraduate 
Program (GEAR UP) program provides six- or seven-year grants to 
assist low-income students in completing secondary school and 
accessing postsecondary education. The PROSPER Act reforms and 
emphasizes the importance of college readiness throughout the 
program.
    The Committee believes any new funding in the program 
should be administered through a new competition to solicit new 
grantees. The PROSPER Act clarifies new competitions should be 
conducted by requiring the Secretary to make new awards to 
eligible entities. The Committee also believes there should be 
one grant per state, which has been the policy for the program 
since 1999. The PROSPER Act codifies the long standing policy 
to prohibit states from receiving multiple awards.
    In addition, the PROSPER Act provides greater flexibility 
to grantees to structure their scholarship programs based on 
certain eligibility criteria. The Committee supports giving 
states the ability to structure a scholarship program, with the 
approval of the Secretary, to award funds to students based on 
criteria such as financial need and satisfactory academic 
progress.

Loan discharges

    The HEA permits student loan borrowers to submit a closed 
school, false certification, or unpaid refund discharge 
application to the Secretary. If a discharge application is 
approved by the Secretary, a borrower's loan is cancelled and 
the borrower is no longer obligated to make payments on the 
loan. A borrower can also receive reimbursement on amounts paid 
voluntarily or through enforced collection on the loan pending 
approval by the Secretary.
    The PROSPER Act seeks to clarify the application process 
for closed school, false certification, or unpaid refund 
discharge situations. The bill requires individual borrowers to 
actively submit an application and does not allow the Secretary 
to approve a discharge application for borrowers who do not 
submit an application. The bill also codifies current 
regulations regarding the discharge process.
    Further, the Committee believes it should be the 
responsibility of the borrower to submit an application for a 
discharge regardless of the type of discharge. Because the 
borrower knowingly enters into a contractual agreement to pay 
back the loan amount, the borrower should knowingly request to 
have the loan terminated.

Federal Work-Study

    Only 13 percent of Americans agree college graduates in 
this country are well prepared for success in the 
workplace.\53\ One of the few successful programs in the HEA is 
the Federal Work-Study (FWS) program, which has been shown to 
increase graduation rates and job placement among participants, 
particularly low-income students.\54\ Building on the success 
of the program, it is time to update and expand the FWS program 
to reflect today's economic needs and the challenges that 
students and workers currently face.
---------------------------------------------------------------------------
    \53\ Brandon Busteed, America's ``No Confidence'' Vote on College 
Grads' Work Readiness, GALLUP News (April 24, 2015), http://
news.gallup.com/opinion/gallup/182867/america-no-confidence-vote-
college-grads-work-readiness.aspx.
    \54\Judith Scott-Clayton & Veronica Minaya, Should student 
employment be subsidized? Conditional counterfactuals and the outcomes 
of work-study participation, 52 Economics of Education Review 1-18 
(2016), http://www.sciencedirect.com/science/article/pii/
S0272775715000825.
---------------------------------------------------------------------------
    Since the last reauthorization of the HEA in 2008, our 
country weathered the worst economic recession in a generation, 
forever transforming the American workforce and the 
postsecondary education landscape. Mr. Kevin Gilligan, Chairman 
and Chief Executive Officer at Capella Education Company, 
explained the gap between the higher education system and the 
workforce at a hearing on February 7, 2017:

          While our current system of higher education is the 
        envy of the world, it is struggling to keep up with the 
        pace of change in our evolving economy. Simply put, it 
        creates too much debt and isn't creating a workforce 
        with the skills required to drive economic growth and 
        lift up the many American's struggling for upward 
        mobility.\55\
---------------------------------------------------------------------------
    \55\Kevin Gilligan Testimony Before the Committee on Education and 
the Workforce, Hearing on Challenges and Opportunities in Higher 
Education, February 7, 2017, https://edworkforce.house.gov/calendar/
eventsingle.aspx?EventID=401221.

    The FWS program has the potential to solve the problem 
highlighted by Mr. Gilligan, but federal requirements in the 
program stifle interaction between industry and college 
campuses and set up a generation of Americans for failure. For 
instance, today's participants in FWS can only work part-time; 
no more than 25 percent of an institution's FWS dollars can 
flow to students working in the private-sector; and the federal 
match for FWS students working in private-sector companies is 
25 to 40 percent lower than other sectors of employment. These 
workforce development restrictions in FWS have real world 
consequences for our nation. At an October 24, 2017, hearing, 
Mr. David Jarvis, Security and Chief Information Officer lead 
at the IBM Institute for Business Value, described how these 
restrictions harm IBM's ability to prepare students for 
---------------------------------------------------------------------------
cybersecurity careers. Mr. Jarvis stated:

          Eliminating the [FWS] restrictions would increase the 
        flexibility of students and institutions of higher 
        education to use their federal work-study allocations 
        for part- and full-time off-campus cooperative 
        education and other work-study purposes. Rather than 
        forcing work-study grants to be used for dining hall 
        jobs, students could get internships that were relevant 
        to their majors and provided critical work experience 
        and skills. IBM urges Congress to return flexibility to 
        students and higher education institutions in their use 
        of work-study funds.\56\
---------------------------------------------------------------------------
    \56\ David Jarvis Testimony, Joint Hearing on Public-Private 
Solutions to Educating a Cyber Workforce, supra note 27.

    This weak link between FWS and careers is not the only 
design downfall of the program. The FWS funding distribution 
formula rewards high-tuition colleges and universities with 
historic participation in the program at the expense of other 
institutions that serve low-income students with high-need. 
Groups as wide-ranging as Achieving the Dream, Business 
Roundtable, Center for Law and Social Policy, National Skills 
Coalition, and the U.S. Chamber of Commerce have called upon 
lawmakers to address these funding and career-orientation 
issues.\57\ The FWS program has the potential to help millions 
of students pay for college while learning employability 
skills, and reinvigorate America's workforce in the 21st 
century.
---------------------------------------------------------------------------
    \57\ Letter from Achieving the Dream, Business Roundtable, Council 
for Adult and Experiential Learning, Center for Law and Social Policy, 
Committee for Economic Development, Jobs for the Future, National 
Association of System Heads, National Skills Coalition, New America, 
Skills for America's Future, State Higher Education Executive, 
Officers' Association, U.S. Chamber of Commerce, & Young Invincible to 
The Honorable Lamar Alexander & The Honorable Patty Murray (April 26, 
2017), https://na-production.s3.amazonaws.com/documents/
FWS_Letter_to_Senate_HELP_FINAL_TJm79TC.pdf.
---------------------------------------------------------------------------
    To refocus the FWS program on career goals of students, 
H.R. 4508 clarifies the purpose of the program and sets a 
definition of ``work-based learning.'' In doing so, the 
Committee recognizes all education is career education. 
Students pursue postsecondary education to develop the 
necessary skills to find a job. This is the objective held in 
common by both the Ivy League student pursuing a psychology 
degree and the student at the local community college learning 
how to repair automobiles. Both individuals provide invaluable 
contributions to society, and both students deserve equal 
support under the FWS program.
    Colleges and universities should provide their students 
both on and off-campus opportunities to develop the skills 
necessary to succeed in the workforce. The PROSPER Act makes 
the FWS program work for students and opens the door for robust 
private sector employment by eliminating the arbitrary 25 
percent cap, applying the same federal share to all types of 
employment, and doubling the authorization for the job location 
and development program. This critical program allows 
institutions to use these resources to locate and develop work-
based learning jobs for students. The Committee considered and 
adopted an amendment offered by Rep. Ron Estes (R-KS) to 
include apprenticeship opportunities as eligible positions 
allowable under the program. Together, these policy changes 
will put students on track to establish successful careers and 
drive upward mobility for all Americans.
    Enhanced funding and a targeted funding distribution 
formula supplement the renewed emphasis on workforce 
development in FWS. The PROSPER Act increases the authorization 
of FWS to more than $1.7 billion to account for not 
reauthorizing the Federal Supplemental Educational Opportunity 
Grant program as part of the PROSPER Act's move to a simplified 
system. The Committee addresses the poorly-targeted funding 
formula by winding down the base-guarantee over five years and 
revising the fair-share formula to include student need and 
Pell Grant dollars. The updated fair share formula no longer 
rewards high-tuition institutions, and instead awards limited 
federal resources to colleges and universities that enroll the 
lowest-income students. To continue with the PROSPER Act's goal 
to improve student completion, the bill further rewards 
``improved institutions'' or schools with strong or improved 
Pell Grant recipient completion rates compared to peer 
institutions. This funding reservation provides a positive 
incentive for schools to improve student completion, and the 
competition to be an improved institution will lead to better 
services for low-income students. These formula changes will 
allocate money to institutions equitably and will allow 
institutions to tailor their FWS program to the unique needs of 
students, the school, and local workforce.
    H.R. 4508 equips institutions with the tools and resources 
needed to engage students and businesses in forging a healthy 
economy. This revitalized FWS program will help low-income 
students gain access to high-quality work opportunities and set 
our students and nation up for long-term success.

Borrower defense

    Borrower defense to repayment is a process that allows a 
student loan borrower to submit a defense to repayment 
application to the Secretary, so they can be relieved of 
further payments on their student loan, reimbursed of payments 
already made, or both. The Secretary reviews the applications 
and has the authority to determine the type and amount of 
relief, if any. A defense to repayment claim differs from a 
closed school, false certification, or unpaid refund discharge 
application by providing an avenue for borrowers to seek relief 
due to institutional misconduct, including acts or omissions by 
an institution. According to a report released by the 
Department's Office of Inspector General before the closure of 
Corinthian Colleges in April 2015, there were five defense to 
repayment applications submitted since the 1995 final 
regulations went into effect.\58\ After Corinthian announced 
the closure of all of its institutions, borrowers submitted 
over 95,000 applications.\59\
---------------------------------------------------------------------------
    \58\Federal Student Aid's Borrower Defense to Repayment Loan 
Discharge Process, U.S. Department of Education Office of Inspector 
General (Dec. 8, 2017).
    \59\Id.
---------------------------------------------------------------------------
    Due to the drastic increase in the number of applications 
submitted, the Secretary established a taskforce with the 
mission to create an efficient internal process for reviewing 
defense to repayment applications. The Secretary also 
established a negotiated rulemaking committee and created a 
final rule in 2016. While this rule was meant to benefit the 
student, it caused significant concerns due to its overreach, 
and it cost the taxpayers an estimated more than $16 billion to 
implement. With these concerns and high expense, as well as a 
change in the administration, the 2016 final rule was delayed, 
and another negotiated rulemaking committee was established.
    The Committee believes borrowers should have clarity about 
their student loan rights and these rights shouldn't be left to 
the whims of different administrations. The Committee believes 
all borrowers should be responsible for articulating why they 
should be granted relief and provide evidence in support of 
such relief. The PROSPER Act clarifies the borrower defense 
process by requiring individual borrowers to submit an 
application for relief. To help borrowers, the bill allows for 
defense to repayment applications to be submitted if there is a 
non-default, favorable contested judgement in a court, breach 
of contract, or substantial misrepresentation by an 
institution. To eliminate confusion, the borrower and the 
institution must be informed at every step of the process. The 
Secretary is required to administer a mandatory administrative 
forbearance once applications are received, and the Secretary 
is required to process all applications in a timely manner and 
submit a report to Congress outlining the internal processes. 
The Committee has concluded borrowers should not be required to 
make payments of any kind on their loan while awaiting a final 
decision from the Secretary on their application, and the 
institution against which the borrower is submitting a claim 
should be informed throughout the process. Both parties should 
have the ability to submit new evidence for a reconsideration, 
but the Committee believes that this process should only happen 
once. If the borrower is dissatisfied with the final result, 
the borrower is able to seek a review under the Administrative 
Procedure Act of 1965.

Student loans

    The federal student loan system consists solely of the 
Direct Loan (DL) program, as the FFEL program expired in 2010 
and the campus-based Perkins Loan program expired in September 
2017. In the DL program, the U.S. Department of the Treasury 
(the Treasury) provides the capital to disburse loans. The 
Department transfers the money from the Treasury to schools on 
behalf of the student, and borrowers repay obligations to the 
Department via contractors. The following programs are included 
under the DL umbrella: subsidized undergraduate Stafford Loan, 
unsubsidized undergraduate Stafford Loan, unsubsidized graduate 
Stafford Loan, graduate PLUS loan, and parent PLUS loan. Each 
program has different eligibility requirements and different 
interest rates. In 2015-16, the federal government disbursed 
over $74.2 billion in loans to undergraduate students and 
almost $21 billion to graduate and parent borrowers.\60\
---------------------------------------------------------------------------
    \60\CollegeBoard, supra note 35.
---------------------------------------------------------------------------
    In addition to the many types of loans offered above, the 
federal government also overwhelms borrowers with nine 
different repayment plans and dozens of deferment and 
forbearance options. The different plans include a standard 
repayment over 10 years, graduated repayment, extended 
repayment, income contingent repayment, original income-based 
repayment (IBR), IBR for New Borrowers, Pay As You Earn (PAYE) 
repayment, Revised Pay As You Earn, and alternative repayment. 
Each option contains complicated terms and conditions. The 
sheer number of plans leads to confusion for borrowers.
    Furthermore, the plans are proving to be ineffective at 
helping borrowers avoid default. This sad truth was confirmed 
by Mr. Jason Delisle, Resident Fellow at the American 
Enterprise Institute (AEI), at a May 24, 2017, hearing. He 
stated:

          Despite the ever-expanding benefits, loan types, and 
        repayment options, delinquency and default rates 
        suggest that the current system is not working. Over 8 
        million people are in default on their federal student 
        loans today, a number that has continued to grow year 
        after year, even though the country is now many years 
        into an economic expansion with low rates of 
        unemployment.\61\

    \61\Testimony of Jason Delisle Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Development, Hearing on Empowering Students and Families to Make 
Informed Decisions on Higher Education, May 24, 2017, https://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=401652.
---------------------------------------------------------------------------
    The income-driven repayment plans offer different terms for 
loan forgiveness for different sets of borrowers, picking 
winners and losers depending on when the student took out the 
loan. For example, original IBR caps monthly payments at 15 
percent of discretionary income, forgives the remaining balance 
after 25 years of repayment, and is available to those who 
borrowed prior to July 1, 2014. New IBR caps monthly payments 
at 10 percent of discretionary income, forgives the remaining 
balance after 20 years of repayment, and is available to new 
borrowers on or after July 1, 2014. PAYE has the same repayment 
and forgiveness terms of new IBR but is available to new 
borrowers on or after October 1, 2007, who also received a loan 
on or after October 1, 2011. The Committee believes all future 
borrowers should receive the same deal from the government, and 
should not be punished or rewarded simply because of when they 
chose to attend college.
    After hearing from students, parents, and other 
stakeholders about the confusion caused by the complex federal 
financial aid system, the Committee entered into this HEA 
reform effort with the goal of simplifying and improving the 
student loan system while continuing to promote student access 
to and completion of postsecondary education. Taxpayers have 
financed over $1 trillion in student loans, and it is critical 
to evaluate why the government treats students differently and 
how the program can be improved to benefit all students.
    The PROSPER Act sets forth a new ONE Loan structure with 
reasonable and easily understandable terms and conditions to 
support future borrowers while continuing to honor the federal 
government's agreement with millions of college graduates 
working to repay their current loans. ONE Loans will eliminate 
borrower confusion, provide an affordable path to repayment, 
and help millions of Americans recognize their dream of earning 
a postsecondary degree and finding a good-paying career.
            A. Direct Loans
    To provide for the orderly transition to the ONE Loan 
program, the PROSPER Act does not terminate the Department's 
authority to make loans under the DL program until the end of 
FY 2024. Beginning July 1, 2019, all new borrowers will borrow 
ONE Loans, but borrowers with outstanding undergraduate debt 
prior to July 1, 2019, may continue undergraduate borrowing 
through the DL program through FY 2024. Likewise, individuals 
with outstanding graduate debt and parents who have already 
borrowed on behalf of a dependent child by July 1, 2019, may 
continue to borrow through the DL program through FY 2024. The 
terms and conditions of these loans, including all the 
repayment plans and forgiveness options, will continue to exist 
for that loan beyond FY 2024. The Committee recognizes that 
consumers entered college with certain assumptions, and by 
grandfathering in existing borrowers, we allow consumers to 
complete their schooling without reneging on our promise.
            B. Perkins Loans
    The Perkins Loan program expired at the end of FY 2017. 
There has been bipartisan support from Congress and the last 
two administrations to let the program end, giving students and 
institutions ample time to make other financial 
arrangements.\62\ Since 2015, all Perkins Loan institutions 
have been required to inform students the program would expire 
in 2017. Perkins Loans account for less than 1 percent of all 
new federal loans disbursed each year.\63\ Despite a low 
participation rate, Perkins Loans create unnecessary confusion 
for borrowers during repayment because the bills are due at a 
different time and are owed to a different entity than other 
federal loans. Moreover, Perkins Loans do not necessarily offer 
better terms for borrowers. Interest rates for Perkins Loans 
have been higher than Direct Loans over the last few years and, 
unlike Direct Loans, Perkins Loans are not eligible for income-
based repayment plans. Perkins Loans benefit only certain 
colleges and universities, and only certain students at those 
schools receive the aid. The end of the Perkins Loan program 
was the first crucial step towards moving to a unified ONE Loan 
structure.
---------------------------------------------------------------------------
    \62\Student Aid Overview: Fiscal Year 2017 Budget Request, 
Department of Education (2016), https://www2.ed.gov/about/overview/
budget/budget17/justifications/n-sao.pdf and Section II. D. Student 
Financial Assistance, Fiscal Year 2008 Budget Summary, Department of 
Education (2007), https://www2.ed.gov/about/overview/budget/budget08/
summary/edlite-section2d.html.
    \63\Fiscal Year 2018 Budget Summary and Background Information, 
Department of Education, https://www2.ed.gov/about/overview/budget/
budget18/summary/18summary.pdf.
---------------------------------------------------------------------------
    The Committee sought to help those institutions operating 
Perkins Loans programs achieve a successful programmatic 
conclusion. The PROSPER Act allows institutions to schedule 
Perkins Loan program close-out audits in conjunction with their 
annual financial and compliance audit. Additionally, the bill 
codifies institutions' option to assign loans to the Treasury 
on an individual basis. Most importantly, H.R. 4508 clarifies 
institutions will receive any interest collected on Perkins 
Loans that exist because the institution made a loan to itself 
that the college has subsequently repaid in full. These policy 
changes reflect the Committee's good-faith effort to provide 
for the orderly wind down of the Perkins Loan program. To 
accommodate the end of the Perkins Loans, the ONE Loan program 
also incorporates a few policy advantages from the Perkins Loan 
program.
            C. ONE Loan structure
    The ONE Loan program operates similar to the DL program. 
Both are direct lending programs where the Treasury provides 
the capital to disburse loans and the Department transfers the 
money from the Treasury to schools on behalf of the student. 
The authority, funding, selection of institutions, and the 
program participation agreements are similar, and in many cases 
identical, to the procedures established in the DL program. It 
is not the Committee's intent to disrupt the current direct 
lending system. The new ONE Loan system offers one unsubsidized 
loan per category of borrower: an undergraduate loan, a 
graduate loan, and a parent loan. The ONE Loan program is 
effective for all new borrowers as of July 1, 2019. The loans 
are all unsubsidized, meaning interest accrues while the 
borrower is in school, to limit the federal government's role 
in contributing to higher college costs. Independent analyses 
have found subsidized loans increase tuition by about 60 cents 
on the dollar.\64\
---------------------------------------------------------------------------
    \64\David O. Lucca, Taylor Nadauld, & Karen Shen, Credit Supply and 
the Rise in College Tuition: Evidence from the Expansion in Federal 
Student Aid Programs, Federal Reserve Bank of New York Staff Reports 
(July 2015, Rev. Feb. 2017), https://www.newyorkfed.org/medialibrary/
media/research/staff_reports/sr733.pdf.
---------------------------------------------------------------------------
    Dramatically simplifying the loan system will assist 
students and families in deciding the best route to financing 
their education. During the March 21, 2017, hearing, Ms. 
Conklin praised the idea of a ONE Loan system, saying ``This 
one loan system would eliminate much borrower confusion, thus 
helping students focus on managing college costs, repaying with 
interest based on actual income, and considering examples of 
average incomes for their careers when making appropriate 
borrowing choices.''\65\
---------------------------------------------------------------------------
    \65\Testimony of Kristen Conklin, Hearing on Improving Federal 
Student Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
    One critical difference between the DL program and ONE 
Loans, which will support borrowers in managing college costs, 
is the disbursement of the loan. Currently, federal student aid 
first covers the recipient's upfront cost of tuition and fees, 
and then the remaining balance is disbursed to the student in 
one or two large payments. The PROSPER Act revolutionizes aid 
disbursal for both grants and loans by mandating aid 
distribution on a monthly or weekly basis, like a paycheck, at 
the discretion of the institution. Large upfront balances 
mislead students and make planning for expenses difficult. 
Disbursing aid in regular installments is cost effective, helps 
students manage their limited dollars while enrolled in school, 
and instills the value of treating college as a job, where 
regular attendance is expected and rewarded. By providing 
institutions with discretion here, the institution, rather than 
the federal government, can ensure the disbursements are made 
in a manner that best meets the needs of a student. For 
example, an institution may provide a bigger disbursement up 
front to accommodate increased costs that students may incur at 
the beginning of the semester, such as textbook costs or course 
fees.
            D. ONE Loan limits
    Aid like a paycheck is not the only way the PROSPER Act 
encourages responsible borrowing habits. Current law provides 
for annual and aggregate loan limits for undergraduate 
students. Congress enacted these limits to prevent excessive 
student loan debt and protect taxpayers against default. As the 
Committee considered the HEA reform package, there was 
significant debate on what loan limits should be for ONE Loans. 
Dr. Matt Chingos, Senior Fellow at the Urban Institute, 
testified at a March 21, 2017, hearing that the ``federal loan 
program should focus on undergraduate students and rein in 
excessive federal borrowing by graduate students.''\66\ College 
costs continue to rise, and as such, students and families rely 
more and more on student loans to assist them in pursuing their 
education. The Committee believes the federal government is 
contributing to unmanageable debt burdens, particularly at the 
parent and graduate level. The federal government has a 
responsibility to balance the competing objectives of access 
and affordability, and the reforms in H.R. 4508 strike this 
balance.
---------------------------------------------------------------------------
    \66\Testimony of Matt Chingos, Hearing on Improving Federal Student 
Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
    The PROSPER Act's ONE Loan program continues the HEA's 
historical mission of encouraging access to postsecondary 
education. H.R. 4508 increases the undergraduate loan annual 
limit for both dependent and independent students by $2,000, an 
amount equal to the average undergraduate Perkins Loan. The 
aggregate undergraduate ONE Loan limit reflects approximately 
four-and-a-half years of undergraduate borrowing to ensure 
timely completion. The Committee believes all institutions 
should be treated equally after the termination of the Perkins 
Loan program, which is why the PROSPER Act raises statutory 
undergraduate loan limits by the average Perkins Loan amount. 
All students will have the financial tools available to 
complete their first and second years and continue through 
graduation.
    At the same time, the PROSPER Act attempts to tackle the 
problem of ballooning graduate school debt. Today, just 12 
percent of borrowers (those graduate students who owe $60,000 
or more in federal loans) account for 50 percent of outstanding 
student loan debt.\67\ In academic year 2013-14 alone, graduate 
students took out 34 percent of federal student loans despite 
making up only 14 percent of students.\68\ Unlike undergraduate 
students who are attending school to earn a credential to 
improve their ability to get their foot in the door of the 
workforce, graduate students already have earned an 
undergraduate degree.
---------------------------------------------------------------------------
    \67\CollegeBoard, supra note 35.
    \68\Beth Akers & Matthew M. Chingos, Game of Loans (2016), p. 16.
---------------------------------------------------------------------------
    The Committee believes the ONE Loan offers generous terms 
that will continue to allow students to access the vast 
majority of programs. Those who may be attending more expensive 
programs have the opportunity to establish earnings and credit 
histories before borrowing. Graduate students attending 
expensive programs will receive a return on investment and will 
be able to fund their education through the private 
marketplace. Evidence shows the Grad PLUS program replaced 
private loan borrowing dollar-for-dollar, suggesting there is 
an existing market the government does not need to fill.\69\ 
Graduate students had limits on their loans prior to 2007, and 
ONE Loan will return to that construct. ONE Loan graduate 
borrowers have statutorily defined annual and aggregate loan 
limits for the first time since 2007 in order to limit over-
borrowing and contain the rising cost of college. The annual 
graduate loan limit for ONE Loans is the sum of the current 
graduate Stafford Loan limit and the maximum graduate Perkins 
Loan, with higher limits for certain health and medicine 
programs. Borrowing through the ONE Loan program is capped at 
$150,000 for most students, an amount still higher than the 
limits prior to 2007.
---------------------------------------------------------------------------
    \69\Monica Bhole, Why do federal loans crowd out the private 
market? Evidence from graduate PLUS loans, Job Market Paper (Oct. 16, 
2016), http://www.economics.illinois.edu/seminars/documents/Monica.Pdf.
---------------------------------------------------------------------------
    Similarly, ONE Parent Loans will limit borrowing at the 
annual level to the average parent PLUS loan.\70\ ONE Parent 
Loans also have an aggregate cap equivalent to four-and-a-half 
times the annual limit. Parents today are able to borrow for 
educational and living expenses for their dependent children up 
to the cost of attendance. While some parents can afford to 
acquire high loan balances, many parents cannot. The PROSPER 
Act makes sure these parents do not become saddled with debt 
and struggle with their repayment burden. Instead, the PROSPER 
Act provides dependent students greater access to aid to 
finance their own postsecondary education pursuits. These 
changes will provide the higher education system enough 
flexibility to encompass the borrowing habits of today's 
borrowers, while restricting institutions from abusing easy 
access to credit and continuing to increase their college costs 
to the detriment of students and taxpayers.
---------------------------------------------------------------------------
    \70\2011-12 National Postsecondary Student Aid Study (NPSAS:12), 
National Center for Education Statistics, U.S. Department of Education, 
Computation by NCES PowerStats on 3/3/2016.
---------------------------------------------------------------------------
    The Committee recognizes current law is inflexible and does 
not provide institutions the authority to set policies in the 
best interest of their students. Yet, the HEA still holds 
institutions accountable for the repayment behavior of their 
students. Mr. Michael Bennett, the Associate Vice President of 
Financial Assistant Services at St. Petersburg College, 
testified at a hearing on March 17, 2015, saying:

          Most are not aware that financial aid administrators 
        are currently prohibited from requiring additional 
        counseling and/or limiting borrowing for federal loans. 
        Loans are considered to be ``entitlement'' dollars and 
        a school is not able to require additional counseling, 
        even if their records show that the student could be in 
        serious financial trouble. . . . We must provide 
        financial literacy, additional counseling, and the 
        availability of personalized, comprehensive financial 
        education services.\71\

    \71\Michael Bennett Testimony Before the Committee on Education and 
the Workforce Subcommittee on Higher Education and Workforce Training, 
Hearing on Strengthening America's Higher Education System, March 17, 
2015, https://edworkforce.house.gov/calendar/
eventsingle.aspx?EventID=398531.
---------------------------------------------------------------------------
    The PROSPER Act addresses the problems identified by Mr. 
Bennett by revamping entrance and exit counseling, sharing the 
responsibility for borrowing habits with institutions, and 
holding individual programs at institutions to a base loan 
repayment rate standard instead of the ineffective 
institutional-level cohort default rate. H.R. 4508 provides 
financial aid administrators the flexibility to lower loan 
limits for categories of borrowers to help students limit their 
borrowing to only the amount needed to finance their education 
expenses. The specific categories of borrowers include by 
academic program, enrollment intensity, credential level, and 
programmatic year. Importantly, the bill retains the authority 
of institutions to increase loan limits up to the statutory cap 
on a case-by-case basis, which will protect those borrowers 
with special circumstances and exceptional need. The Committee 
believes it is the responsibility of institutions to consider 
the best financial interest of their students and strongly 
encourages all colleges and universities to use this new 
flexible loan limit authority to curtail over borrowing. 
Endowed with this new ability, all institutions now have the 
tools needed to set students up for long-term financial 
success.
            E. Interest rates and loan fees
    College affordability for all Americans is the inspiration 
behind the reforms contained in the PROSPER Act. This is why 
the Committee maintained the market-driven interest rate policy 
set by the Bipartisan Student Loan Certainty Act of 2013. The 
law removed Washington politicians from the business of setting 
student loan interest rates, and instead interest rates are 
based on the 10-year Treasury Note plus a certain percentage 
depending on the loan. This responsible solution has served the 
best interests of students, parents, and taxpayers, and the 
bill continues this policy: undergraduate ONE Loan borrowers' 
interest rates are equivalent to the undergraduate Stafford 
rate; graduate ONE Loan borrowers' interest rates are 
equivalent to the graduate Stafford rate; and ONE Parent Loans 
will have an interest rate equivalent to PLUS loans.
    The PROSPER Act reforms also are designed to ensure the 
federal government is clear on its agreement with borrowers who 
are taking out a loan. Under the DL program, borrowers are 
charged hidden fees, known as origination fees, ranging from 1 
percent to 4 percent. In practice, the origination fee means 
borrowers receive less aid than requested and have a higher 
effective interest rate than advertised. The Committee believes 
this costly and hidden fee unnecessarily increases the cost of 
college for millions of students and families. Therefore, the 
PROSPER Act eliminates origination fees for all ONE Loans. 
Removing origination fees will make the process of financing 
education more transparent and put more money into the 
students' account.
            F. ONE Loan repayment and treatment of loan forgiveness
    As noted earlier, DL borrowers have many repayment plans 
available to them, with five of the plans based on a borrower's 
income. Thousands of borrowers struggle to meet their monthly 
payment obligations despite the generous terms available. Dr. 
Beth Akers, Senior Fellow at the Manhattan Institute, who 
testified at a hearing on February 7, 2017, informed the 
Committee why this may be case:

          Many people are surprised to learn that our federal 
        student loan program has a robust system of safety nets 
        that protects borrowers from unaffordable student 
        loans. . . . The lack of knowledge about these safety 
        nets likely stems from the fact that there isn't a 
        single income-driven repayment plan, but rather a set 
        of programs, each with different eligibility 
        requirements and benefits.\72\

    \72\Testimony of Beth Akers, Hearing on Challenges and 
Opportunities in Higher Education, supra note 55.
---------------------------------------------------------------------------
    The Committee, noting the recent uptick of enrollments in 
the various income-based repayment plans, agrees the deluge of 
repayment options needlessly complicates the repayment 
process.\73\ To simplify repayment and make student loan 
payments more affordable while still protecting taxpayers, the 
ONE Loan program offers student borrowers two options to repay 
their loans: a 10-year standard plan and a single IBR plan. The 
PROSPER Act adopts the policy goal and general structure of 
Rep. Drew Ferguson's (R-GA) bill, H.R. 4372, the Help Students 
Repay Act. All ONE Parent Loan borrowers must pay according to 
the 10-year standard plan. The IBR plan requires borrowers to 
pay 15 percent of their discretionary income a month or $25, 
whichever is higher. The mandatory minimum monthly payment 
keeps borrowers engaged and actively in repayment, which helps 
borrowers pay down their balance and avoid default. Individuals 
can seek to lower this minimum payment if they are unemployed 
or have high medical expenses. Borrowers in the IBR plan are 
required to repay an amount to the federal government equal to 
the principal balance of the loan plus 10 years' worth of 
interest as calculated when entering repayment. This financial 
mechanism guarantees borrowers are at least paying back the 
principal and the interest they would have paid had their 
income allowed them to repay in the 10-year standard plan, 
while also safeguarding borrowers from insurmountable accrued 
interest if their monthly payments in the IBR plan are less 
than the interest accruing each month. The ONE Loan IBR 
structure will encourage individuals to make consistent loan 
payments and will provide individuals the payment transparency 
and certainty needed to plan for other life expenses such as 
buying a home or starting a small business.
---------------------------------------------------------------------------
    \73\Facts on Student Loan Borrowers, The Student Loan Servicing 
Alliance (2017), http://www.slsa.net/wp-content/uploads/2017/09/SLSA-
Fact-Sheet-on-Student-Loan-Borrowers-9-18-17.pdf.
---------------------------------------------------------------------------
    Unlike the DL program, which offers loan forgiveness based 
on time or occupation, the ONE Loans subsidy is concentrated in 
the IBR proposal to cap interest rates at 10 years' worth of 
interest. All forgiveness options such as Public Service Loan 
Forgiveness (PSLF) for the DL program will continue to apply to 
those loans, but those forgiveness options are not applicable 
to ONE Loans. The reasons for this policy change are twofold. 
First, the loan cancellations are inefficient and poorly 
targeted. As Dr. Akers explained to the Committee:

          Not only does PSLF deliver subsidies for public 
        service in an inefficient manner, it also does a poor 
        job targeting those funds. Studies have shown that most 
        of the benefits of PSLF will go to workers that have 
        earned graduate and professional degrees and have the 
        potential for very high earnings.\74\
---------------------------------------------------------------------------
    \74\Testimony of Beth Akers, Hearing on Challenges and 
Opportunities in Higher Education, supra note 55.

    This point is underscored by the Urban Institute's analysis 
of the American Community Survey census data, where it found 
most public sector occupations also exist in the private sector 
and that there is minimal difference in pay between the two 
sectors.\75\ The conclusion reached by the Urban Institute is 
that many individuals in the workforce are doing comparable 
work for equal pay, but only some borrowers are eligible for 
PSLF.\76\ The Committee believes all work is valuable and must 
be held in equally high regard. This is why the PROSPER Act 
eliminates picking arbitrary winners and gives the same choice 
of repayment plans to all borrowers.
---------------------------------------------------------------------------
    \75\Erica Blom, Who does the Public Service Loan Forgiveness 
program really benefit?, Urban Institute (Oct. 27, 2017), https://
www.urban.org/urban-wire/who-does-public-service-loan-forgiveness-
program-really-benefit.
    \76\Id.
---------------------------------------------------------------------------
    The second reason why the PROSPER Act does not apply 
current forgiveness plans to ONE Loans is due to the 
overwhelming cost and the exploitation of the forgiveness 
policy by institutions. Dr. Chingos rightfully pointed out that 
``[e]liminating PSLF and reducing the generosity of other 
forgiveness provisions for future borrowers is not only a 
matter of ensuring that subsidies are delivered fairly. It is 
also critical to the fiscal sustainability of the student loan 
programs.''\77\
---------------------------------------------------------------------------
    \77\Testimony of Matt Chingos, Hearing on Improving Federal Student 
Aid to Better Meet the Needs of Students, supra note 33.
---------------------------------------------------------------------------
    The exploding cost of existing income-driven repayment 
plans and forgiveness options cannot be overstated. In fact, a 
recent GAO report found the federal government is on track to 
forgive at least $108 billion in student debt, a far higher 
cost than initially estimated.\78\ Some institutions have 
abused the combination of unlimited Grad PLUS lending and 
unlimited forgiveness options through IBR and PSLF to increase 
costs and have the federal government foot the entire bill of a 
student's education. In the case of one institution, the 
expected average amount a law school graduate from the 
institution will have be forgiven because of current federal 
policies is around $158,888.\79\ Total subsidization of 
graduate education was never the intent or goal of the federal 
loan programs. By designing the ONE Loan IBR plan with an 
interest cap, the Committee is acting in the best interest of 
students and taxpayers and is committed to giving borrowers 
repayment relief so present and future individuals can benefit 
from the federal government-lending program.
---------------------------------------------------------------------------
    \78\Federal Student Loans: Education Needs to Improve Its Income-
Driven Repayment Plan Budget Estimates, U.S. Government Accountability 
Office (November 2016), https://www.gao.gov/assets/690/681064.pdf.
    \79\Alexander Holt and Jason Delisle, Georgetown LRAP: In Their Own 
Words, New America (Aug. 7, 2013), https://www.newamerica.org/
education-policy/federal-education-budget-project/ed-money-watch/
georgetown-lrap-in-their-own-words/.
---------------------------------------------------------------------------
    The Committee believes the PROSPER Act's simplified and 
improved ONE Loan system will benefit students and taxpayers by 
removing layers of confusion, keeping the policies that work 
well, altering the terms that need to work better, and 
promoting access to and completion of postsecondary education. 
Millions of students work hard to earn a degree to find a job 
and provide a successful life for their families. ONE Loans 
will help these individuals finance their goals with affordable 
repayment terms and will deliver the country a skilled 
workforce ready for the challenges of the future.

Credit balances

    The Committee believes each student loan borrower should 
have the ability to choose the best method of obtaining their 
credit balance, and these options should be presented in a 
neutral and fair manner. Regardless of the selection by the 
borrower, credit balances should be delivered in a timely 
fashion, and borrowers should not be subject to a delay in 
receiving their credit balances. The inability of a third-party 
servicer to proactively send an access device to a student may 
penalize the student loan borrower by delaying access to the 
funds.
    The Committee also believes abusive cardholder fees that 
were an element of some student card programs in the past 
should be prevented. Notably in 2012, the Federal Deposit 
Insurance Corporation entered into settlements with industry 
participants based on alleged violations of the Federal Trade 
Commission Act related to charging student account holders fees 
that were unfair or deceptive.\80\ Also in 2013, a major 
industry participant settled a class action lawsuit in which 
student plaintiffs claimed that it charged excessive and 
inadequately disclosed cardholder fees.\81\
---------------------------------------------------------------------------
    \80\FDIC Announces Settlements With Higher One, Inc., New Haven, 
Connecticut, and the Bancorp Bank, Wilmington, Delaware for Unfair and 
Deceptive Practices, Federal Deposit Insurance Corporation (Aug. 8, 
2012), https://www.fdic.gov/news/news/press/2012/pr12092.html.
    \81\Michael Stratford, Higher One Nears Settlement, Inside Higher 
Ed (Nov. 6, 2013), https://www.insidehighered.com/news/2013/11/06/
higher-one-agrees-15-million-settlement-resolve-charges-over-fees.
---------------------------------------------------------------------------

Need analysis

    Historically, the Free Application for Federal Student Aid 
(FAFSA) was available on January 1 for the upcoming year, well 
after many college application deadlines, and it required 
applicants to provide income from the tax return due a few 
months later in April. In order for students to take advantage 
of the ability to easily transfer their Internal Revenue 
Service (IRS) income data onto the FAFSA, they had to wait 
until after they filed their tax returns. These timing 
inconsistencies may have caused delays in the submission of 
FAFSA forms, leaving financial aid administrators little time 
to put together aid packages for incoming students. According 
to a 2013 report published by the National Association of 
Student Financial Aid Administrators:

          Under the current structure, delays can cause an 
        unfavorable chain reaction: a delay in completing the 
        income tax return can mean a delay in submitting the 
        FAFSA, which can result in a delay in financial aid 
        notification--and potentially a reduced amount of 
        financial aid. This occurs because some forms of 
        financial aid have a limited pot of funds, which is 
        distributed on a first-come, first-served basis. Every 
        college student needs to know where they stand sooner 
        rather than later, so the student can adjust and 
        prepare for the costs of college.\82\
---------------------------------------------------------------------------
    \82\A Tale of Two Income Years: Comparing Prior-Prior Year and 
Prior Year Through Pell Grant Awards, NASFAA (2013), https://
www.nasfaa.org/uploads/documents/ppy_report.pdf.

    In order to provide students with earlier aid notifications 
and give administrators more time to package and award aid, 
stakeholders have called for a change to allow borrowers to 
apply for aid using prior-prior year (PPY) data. At a March 17, 
2015, hearing the Honorable Mitch Daniels, President of Purdue 
University and former Governor of Indiana, testified about the 
---------------------------------------------------------------------------
benefits of changing to prior-prior year:

          Basing decisions on a prior-prior year (PPY) basis 
        would enable better alignment of the application 
        process with existing IRS data. The current system, 
        which uses the previous year's financial records, is 
        prone to delays and complications that result from the 
        routine tax process. Switching to PPY would allow time 
        for tax forms to be processed, corrected and analyzed 
        before admissions decisions are made and FAFSA 
        applications are due. It would be advantageous both in 
        terms of financial planning and connecting the 
        application to existing data.\83\
---------------------------------------------------------------------------
    \83\Testimony of The Honorable Mitch Daniels, Hearing on 
Strengthening America's Higher Education System, supra note 71.

    In the 2008 Higher Education Opportunity Act, Congress 
provided the Secretary the authority to allow the use of PPY 
income. However, the Secretary has only recently begun 
utilizing that authority. Starting last year, applicants were 
able to complete the FAFSA using PPY income. The Committee 
recognizes the benefits of using PPY data to students, 
institutions, and taxpayers and is committed to ensuring this 
commonsense policy remains in place in future academic years. 
Therefore, H.R. 4508 ensures continued allowance for earlier 
notification of federal student aid.
    H.R. 4508 also updates the maximum income threshold 
required to qualify for the simplified version of the FAFSA, 
known as the simplified needs test, to be in line with the IRS' 
income requirements to file the 1040EZ or 1040A tax form. The 
Committee believes this important update to the law will 
significantly simplify the application process for more middle-
class families.

Competency-based education

    Federal, state, and local budgetary challenges, as well as 
skyrocketing college costs, have encouraged institutions of 
higher education and students to seek low-cost alternatives to 
the traditional higher education model. Different modes of 
teaching delivery, such as competency-based education, may help 
students learn and graduate more quickly. These innovations in 
higher education could benefit both traditional students as 
well as the growing population of contemporary students.
    Traditionally, regulators and institutions of higher 
education used credit hours to measure student progress. This 
was an understandable metric when technological and physical 
limitations meant ``seat time'' was the best proxy for 
learning. Today, however, many experts question the value of 
measuring time rather than actual learning gains. Competency-
based models of education reverse the traditional learning 
equation, holding learning constant and allowing time to vary. 
Such programs define a collection of competencies or skills for 
a given field of study; create assessments; and provide 
students with course materials, instructional mentors, tutors, 
and assessments aligned with the competencies.
    Additionally, federal student aid programs have not kept 
pace with advances in technology or the latest models of 
education. While some institutions of higher education are 
pursuing competency-based education programs, current statutory 
and regulatory requirements need to be updated to enhance 
innovation, allowing for greater expansion of competency-based 
education. Most notably, federal student aid is disbursed based 
on the traditional ``credit hour'' calculation, which does not 
translate to the competency-based education model. Mr. 
Gilligan, in his testimony before the Committee, noted the 
financial aid challenges this innovative learning model poses:

          In some cases, we do not believe that time-based 
        tools constitute the best measurement of student 
        progress, especially for the adult, contemporary 
        student. Direct assessment measures student knowledge 
        and learning, rather than focusing on seat time and 
        grades. What matters is knowledge gained, not the 
        amount of time it took to gain it. This decoupling 
        allows students to move through their program without 
        any wasted time or money, but poses complicated 
        problems for federal financial aid policy.\84\
---------------------------------------------------------------------------
    \84\Testimony of Kevin Gilligan, Hearing on Challenges and 
Opportunities in Higher Education, supra note 55.

    The federal government now disburses over $123 billion in 
federal student financial assistance each year,\85\ which 
should spur lawmakers to find solutions that encourage 
innovation to lower college costs. During a July 9, 2013, 
hearing, Mr. Burck Smith, Chief Executive Officer and Founder 
of StraighterLine, commenting on what may prevent institutions 
from providing less costly degrees, said:
---------------------------------------------------------------------------
    \85\CollegeBoard, supra note 35.
---------------------------------------------------------------------------
          Despite massive investments in technology, higher 
        education prices are rising and quality is declining. 
        In every other industry, technology investments yield 
        cost savings which translate to lower prices and higher 
        quality--productivity increases. Why not in higher 
        education? My conclusion was, and is, that the problem 
        is an outdated regulatory structure.\86\
---------------------------------------------------------------------------
    \86\Testimony of Burck Smith Before the Committee on Education and 
the Workforce, Hearing on Keeping College Within Reach: Improving 
Higher Education Through Innovation, July 9, 2013, http://
edworkforce.house.gov/calendar/eventsingle.aspx?EventID=341174.

    Recognizing the challenges the current credit hour system 
poses for competency-based education programs, H.R. 4508 
creates a new academic year definition for the purposes of 
competency-based education programs based on competencies 
rather than credit hours or time. The legislation also allows 
for competency-based education programs that use a subscription 
model to be treated as term-based for the purpose of 
establishing payment periods. Furthermore, the PROSPER Act 
expands the definition of an eligible program under Title IV to 
include competency-based education programs that have been 
evaluated and approved by a recognized accrediting agency. The 
Committee believes that updating the current statutory and 
regulatory system will help to ensure colleges can pursue low-
cost delivery models.

Short-term programs

    H.R. 4508 permits student aid, including Pell Grants, to be 
disbursed to students enrolled in short-term programs by 
decreasing the minimum length of an eligible program under 
Title IV to at least 300 clock hours of instruction, eight 
semester hours, or 12 quarter hours, offered during a minimum 
of 10 weeks. Allowing for the eligibility of short-term 
workforce development programs will help address the workforce 
shortage by helping workers afford the crucial skills-based 
education and credentials that are in high-demand in today's 
job market. Ms. Tamar Jacoby, President and CEO of Opportunity 
America, commented on the impact this policy could have, in a 
January 2018 report:

          There's no silver bullet--no simple legislative fix--
        for the skills gaps plaguing industry after industry 
        and constricting opportunity for workers. But 
        Washington could make a big dent in the problem by 
        taking steps to level the financial playing field 
        between traditional academic higher education and 
        career-focused technical instruction. . . . [M]ore 
        balanced federal funding--even a small next step down 
        the road to more balance--could spur dramatic change 
        for students and employers, a much-needed, double-
        barreled boost for opportunity and economic 
        competitiveness.\87\
---------------------------------------------------------------------------
    \87\Tamar Jacoby, Leveling the Playing Field: Pell Grants for 
Workforce Training, This Way Up: New Thinking About Poverty and 
Economic Mobility, Opportunity America & AEI (2017), http://
www.aei.org/wp-content/uploads/2018/01/This-Way-Up.pdf.

    Dr. Ralls also highlighted short-term programs and 
---------------------------------------------------------------------------
expanding apprenticeship opportunities in his testimony:

          One of the things that Congress can do is look at . . 
        . opening up the notion of what certifications mean in 
        the workplace as a workplace credential, areas like 
        Pell Grants for short-term certifications that are 
        meaningful and have rigor--I think can open up more 
        opportunities for apprenticeship opportunities and for 
        those kinds of certification programs that we find are 
        important with apprenticeship.\88\
---------------------------------------------------------------------------
    \88\Testimony of Scott Ralls, Joint Hearing on Public-Private 
Solutions to Educating a Cyber Workforce, supra note 27.

    The Committee believes access to short-term programs will 
help students get into the workforce more quickly and with the 
skills necessary to meet local economic demands.

New providers of higher education

    To continue with the PROSPER Act's goal of ensuring the HEA 
is flexible enough for tomorrow's students, H.R. 4508 allows 
new providers of higher education, called an ``ineligible 
institution or organization,'' to partner with traditional 
colleges and universities on a greater scale by relaxing the 
current 50 percent limit on institutional partnerships with 
ineligible organizations and allowing those organizations to 
provide up to 100 percent of a student's educational program in 
order to foster innovation and help colleges reduce costs. 
Through these partnerships, students will be able to use their 
federal student aid to access nontraditional providers of 
higher education such as coding bootcamps or education programs 
designed by employers. In describing the Educational Quality 
through Innovative Partnerships (EQUIP) experimental sites 
initiative upon which the provision is partially based, Ms. 
Jacoby notes that while the experiment has a ``multitiered 
quality control [that] is cumbersome . . . it's a critical 
breakthrough--a first crack in the edifice of accreditation 
that could lead to more dramatic, far-reaching change in years 
ahead.''\89\ The Committee agrees the quality control process 
outlined in the EQUIP experimental site is cumbersome as well 
as duplicative of the quality assurance process outlined in the 
law through accreditation. Therefore, rather than creating a 
separate duplicative process for these partnerships, the 
PROSPER Act requires accreditors to approve partnerships where 
the ineligible institution or organization provides more than 
25 percent of the educational program.
---------------------------------------------------------------------------
    \89\Tamar Jacoby, supra note 87.
---------------------------------------------------------------------------

Loan repayment rates

    Billions of hard-working taxpayer dollars finance 
postsecondary education every year. Yet, the accountability 
process in effect today is ineffective and outdated. Easy 
access to taxpayer-funded student loans has driven up college's 
price tag, and institutions are immune to the consequences as 
long as enough of their students do not default in massive 
numbers. Incentives between students, institutions, and the 
federal government should promote educational quality and a 
return on investment for all stakeholders. Currently, 
eligibility to participate in the federal student aid programs 
is conditioned partially on an institution's cohort default 
rate.
    The Committee believes the current cohort default rate 
metric is ineffective and fails to provide real accountability 
for federal student aid dollars. Entire institutions rarely 
lose eligibility due to low default rates as poorly performing 
programs are propped up by better performing programs at the 
institution. H.R. 4508 creates a program-level loan repayment 
rate (LRR) tied to program eligibility that replaces the 
institutional-level cohort default rate. The LRR will move the 
eligibility condition to the program-level, so particular 
programs that are enabling borrowers to repay their loans will 
be allowed to continue participating in the student aid 
programs, and those that are not enabling borrowers to repay 
would not be eligible. Switching this eligibility mechanism to 
a program-level LRR will force institutions to have more skin 
in the game in lending because individual programs could lose 
eligibility for federal student aid if the program does not 
adequately prepare students for a career that will enable them 
to repay their federal student loans. It will also require 
institutions to be more price-sensitive when setting tuition 
for particular programs.

FAFSA simplification

    Questions on the FAFSA form range from the net worth of 
investments to complicated tax questions, and they are often 
difficult for students and families to understand. This 
confusion can deter applicants from completing the form, 
preventing students from receiving financial aidfor which they 
may otherwise have been eligible. While steps have been taken to 
simplify the FAFSA through the use of skip logic and reducing the 
number of questions families must answer, the Committee believes more 
can be done to simplify the user experience.
    The move to PPY and the use of the IRS data retrieval tool 
(DRT) will strengthen the integrity of federal financial aid 
and reduce verification burdens on institutions of higher 
education. Before PPY, student aid administrators had limited 
time to verify the accuracy of students' income data. As 
Michael Bennett discussed in his testimony:

          With more completed, and therefore accurate, tax 
        information, verification burden for both students and 
        institutions would be dramatically reduced through an 
        increased use of the IRS Data Retrieval Tool. This 
        reduced burden will free up more time for financial aid 
        administrators to spend on counseling students.\90\

    \90\Testimony of Michael Bennett, Hearing on Strengthening 
America's Higher Education System, supra note 71.
---------------------------------------------------------------------------
    The Committee believes the DRT has significantly reduced 
the burden of filling out the FAFSA by allowing families to 
import their tax information from the IRS, which eliminates 
many of the questions students and families struggle to answer. 
The implementation of PPY allows more families to immediately 
utilize the DRT by eliminating the delay between filing taxes 
and the DRT becoming available. The PROSPER Act directs the 
Secretary to allow married taxpayers filing separately to use 
the DRT as single taxpayers and married taxpayers filing 
jointly can currently. The legislation also directs the 
Secretary to make every effort to utilize technology to 
strengthen the DRT and eliminate the need for students and 
families to answer irrelevant questions.
    H.R. 4508 requires the Secretary to continue examining ways 
to simplify the FAFSA through the DRT and report to Congress 
annually on that effort. The Committee encourages the Secretary 
to consider redistribution of federal, state, and institutional 
aid that may occur through such simplification efforts as well 
as any potential limitations of using IRS data sufficient to 
calculate need for the determination of state aid. The 
Committee additionally encourages the Secretary to consider any 
other means of simplification made possible through the use of 
PPY data.
    The Committee also believes protecting taxpayer and student 
privacy is vitally important, and any attempts to misuse 
sensitive information through the DRT is concerning. As a 
result of previous security breaches first revealed by the IRS 
and the Department in March 2017,\91\ the legislation requires 
the Secretary to report on the security of the DRT to ensure 
the Department protects the personally identifiable information 
families entrusts it with each day.
---------------------------------------------------------------------------
    \91\Privacy Concerns Force Tool to Remain Offline; Students, 
Parents and Borrowers Should Use Other Options to Provide Financial 
Data on Applications, Department of Education (March 30, 2017), https:/
/www.ed.gov/news/press-releases/update-internal-revenue-service-irs-
and-federal-student-aid-fsa-statement-irs-data-retrieval-tool-drt.
---------------------------------------------------------------------------
    The PROSPER Act requires the Secretary to conduct consumer 
testing to ensure the electronic versions of the FAFSA are 
easily understandable by students and families. The Committee 
appreciates the work done to make the FAFSA more user-friendly 
but believes more can be done to ensure the FAFSA is as 
understandable as possible. By requiring the Secretary to 
conduct consumer testing with current and prospective college 
students, family members of such students, and financial aid 
application experts, the electronic versions of the FAFSA can 
be strengthened for efficiency and design.
    One of the main purposes of FAFSA simplification is to make 
the form more accessible to students, thereby making a higher 
education more attainable. Since the creation of the online 
FAFSA in 1997, FAFSA completion time has decreased.\92\ 
However, this online application is not always easily 
accessible. A recent report found 2 million students who would 
have been eligible for the Pell Grant did not fill out the 
FAFSA in award year 2011-2012. Roughly 23 percent of these 
students cited the difficulty of the financial aid form or lack 
of information about how to apply as a reason for not 
completing the FAFSA.\93\ Another report found 40 percent of 
all families with incomes below $25,000 and with school-age 
children lack a high speed internet connection at home.\94\ 
Students with families in this income bracket are likely 
eligible for a Pell Grant and the most likely to receive state 
and institutional aid, both of which often rely on FAFSA data.
---------------------------------------------------------------------------
    \92\The average time it takes to complete a FAFSA was reduced to 33 
minutes and 13 seconds for the 2015-16 application cycle. See Free 
Application for Federal Student Aid (FAFSA) Overview, PowerPoint 
Presentation, General Dynamics Information Technology (2017), p. 4.
    \93\Mark Kantrowitz, Leaving Money on the Table, Edvisors Student 
Aid Policy Analysis (Jan. 12, 2015), p. 3. https://www.edvisors.com/
media/files/student-aid-policy/20150112-leaving-money-on-the-table.pdf.
    \94\http://www.pewresearch.org/fact-tank/2015/04/20/the-numbers-
behind-the-broadband-homework-gap/.
---------------------------------------------------------------------------
    The Committee believes barriers to access should be removed 
and students should not be precluded from applying for aid 
because their families do not have ready access to computers or 
Internet. For this reason, H.R. 4508 requires the Secretary to 
make the FAFSA available on mobile phones, through a mobile 
application, or another technology tool.

Student eligibility

    Prior to 2012, student aid eligibility was limited to 
students with a high school diploma or equivalent, students who 
passed an ability to benefit (ATB) test, or students who had 
completed six credit hours or its clock hour equivalent of 
postsecondary coursework. To mitigate a funding shortfall in 
the Pell Grant program, all eligibility for students without a 
high school diploma or equivalent was revoked in 2012. The 
Consolidated and Further Continuing Appropriations Act of 2015 
partly restored ATB for students who met the previous ATB 
requirements and who are enrolled in an eligible career 
pathways program. H.R. 4508 eliminates the career pathways 
requirement and restores federal student aid eligibility for 
students without a high school credential who have been 
determined by their institution as having the ability to 
benefit from the education provided by the institution upon 
satisfactory completion of six credit hours or the equivalent 
of postsecondary education.
    Removing the current eligible career pathways requirement 
will allow more students without high school credentials to 
participate in the federal financial aid programs if they have 
demonstrated they can handle the rigor of higher education. 
Additionally, ATB students made eligible through completing six 
credit hours have been shown to be just as successful as high 
school graduates. An analysis of the Department's 2006-2007 
Experimental Sites Initiative, which allowed students without a 
high school diploma who successfully completed six credit hours 
to gain access to student aid, found:

          The subset of students made eligible by this 
        experiment even compared favorably to financial aid 
        recipients with high school diplomas. While the 
        experimental group of students attempted and completed 
        slightly fewer credit hours than high school graduates, 
        they completed a nearly identical percentage of units 
        attempted and earned a slightly higher grade point 
        average than aid recipients who had completed high 
        school.\95\

    \95\John B. Horrigan, The numbers behind the broadband `homework 
gap', Pew Research Center (April 20, 2015), https://
experimentalsites.ed.gov/exp/archives.html; Analysis of the 
Experimental Sites Initiative 2006-07 Award Year.
---------------------------------------------------------------------------
    H.R. 4508 also clarifies that students who have completed a 
secondary school education in a home school setting (one 
treated as a home school or private school under state law or 
provided by a school operating as a nonprofit corporation that 
offers a program of study determined acceptable for admission 
at an institution of higher education) are eligible for federal 
student aid under Title IV. With respect to secondary education 
provided by a nonprofit corporation, the Committee intends that 
accrediting agencies recognized by the Department, not state 
higher education agencies or the Secretary, shall make the 
determination about which programs of study are deemed 
acceptable for admission to postsecondary institutions.

Return to Title IV

    Unfortunately, many students never complete their 
postsecondary degree. Additionally, borrowers who do not earn a 
degree are more likely to default on their loans, leaving 
taxpayers to pick up the tab. Dr. Chingos and his colleague at 
the Urban Institute, Ms. Kristin Blagg, highlight this problem 
in their report, ``Getting Risk Sharing Right,'' noting:

          Borrowers who drop out before the end of the term are 
        less likely to ever earn a degree or credential and 
        more at risk of defaulting on their loans. The 
        [Beginning Postsecondary Students Longitudinal Study]: 
        04/09 data show that, among borrowers who dropped out 
        before the end of a term, just 14 percent went on to 
        attain any degree within the following six years. Of 
        borrowers who dropped out before the end of the term 
        and who did not earn a degree, 38 percent experienced 
        federal student loan default by 2009, and just 31 
        percent of these borrowers either repaid their loans or 
        were in repayment. In contrast, among those who stopped 
        out at the end of the term and did not receive a degree 
        within six years, 22 percent had a default and 50 
        percent were either in repayment or repaid.\96\
---------------------------------------------------------------------------
    \96\Kristin Blagg & Matthew M. Chingos, Getting Risk Sharing Right, 
Urban Institute (Dec. 2016), https://www.urban.org/sites/default/files/
publication/86556/getting_risk_sharing_ right_3.pdf.

    Currently, through the return to Title IV (R2T4) process, 
institutions of higher education are required to return a 
portion of federal aid awarded to a student if the student 
withdraws before completing 60 percent of a semester or other 
payment period. The institution is then able to bill the 
student for the returned portion of federal aid. This creates 
barriers for the most at-risk students to access future aid and 
complete their education. According to Dr. Chingos and Ms. 
Blagg, ``This system places a disproportionate burden on low-
income students, who may be unable to clear their debts at the 
college and are therefore unable to access their academic 
record or reapply for federal aid until all federal debts are 
also repaid.''\97\ If a student withdraws after the 60 percent 
mark, institutions are allowed to keep the entire semester 
worth of federal aid even though the student did not complete 
the semester. Furthermore, colleges have acknowledged that the 
current R2T4 process is incredibly complex and burdensome, 
warranting over 200 pages of federal regulations.\98\
---------------------------------------------------------------------------
    \97\Id.
    \98\Recalibrating Regulation of Colleges and Universities, Task 
Force on Federal Regulation of Higher Education (2015), p. 19, http://
www.acenet.edu/news-room/Documents/Higher-Education-Regulations-Task-
Force-Report.pdf.

    H.R 4508, which incorporates the provisions of H.R. 4336, 
the College Completion and Success Act, introduced by Rep. 
Jason Lewis (R-MN), reforms the R2T4 process, so students do 
not earn all of their aid until they actually complete the 
semester. When students enroll in a semester but do not 
complete, the college will not be able to keep a full semester 
worth of taxpayer-supported student aid. Additionally, by 
streamlining how colleges calculate the amount of aid earned as 
is done in the PROSPER Act, schools will be able to spend less 
time and resources on compliance. The legislation also shifts 
the burden of repaying unearned aid onto the colleges, giving 
them strong incentive to promote student persistence and 
success. According to Dr. Chingos and Ms. Blagg, under a system 
like this, ``[i]nstitutions are unlikely to recoup all tuition 
that was previously paid by federal aid and thus have 
strengthened incentives to encourage students to complete each 
term for which they are enrolled.''\99\ The PROSPER Act also 
credits returned aid to Pell Grants first and then loans, so 
the taxpayer investment in higher education is protected when 
student completion is not achieved. Students then regain Pell 
eligibility for the returned aid, increasing their ability to 
return to school and complete a degree. The Committee strongly 
believes that colleges must place greater focus on student 
completion and have skin in the game when students do not 
progress towards a degree. This policy combined with the loan 
repayment rate policy offer skin-in-the-game policies that 
create incentives for colleges to lower costs and help with 
completion. The Committee believes this policy will deter 
institutions from passing costs to students in the form of 
increased tuition.
---------------------------------------------------------------------------
    \99\Kristin Blagg & Matthew M. Chingos, supra note 96.
---------------------------------------------------------------------------

Disclosures and reporting requirements

            A. Reporting relief
    Reporting requirements can serve as an important tool in 
ensuring institutional accountability. However, voluminous and 
frequently ambiguous federal requirements have expanded the 
cost of compliance and exacerbated the rising costs of 
attending postsecondary education.\100\ These requirements have 
become excessive, duplicative, costly, and often difficult to 
implement. H.R. 4508 repeals or reforms federal requirements 
that provide limited usefulness to students, families, 
institutions, and policymakers and that lead to increased costs 
for students.
---------------------------------------------------------------------------
    \100\Every dollar spent on compliance is a dollar not being spent 
keeping costs low for students. As far back as 1997, Stanford 
University estimated the school spent $29 million on compliance costs. 
In 2012, Hartwick College released a report finding the small 
institution spent 7 percent of its non-compensation operating budget, 
or almost $300,000 annually and 7,200 labor hours, on federal reports 
and forms. In 2014, Vanderbilt estimated 11 percent, or $150 million, 
of its expenditures went to fulfilling federal mandates. See 
Recalibrating Regulation of Colleges and Universities, supra note 98.
---------------------------------------------------------------------------
    In the fall of 2013, a bipartisan group of Senators 
established a task force of college and university presidents 
and chancellors to study federal regulations. In February 2015, 
the Task Force on the Federal Regulation of Higher Education 
released a report.\101\ The report highlighted the problem with 
current reporting requirements:

    \101\Task Force on Federal Regulation of Higher Education, supra 
note 98.
---------------------------------------------------------------------------
          Over time, oversight of higher education by the 
        Department of Education has expanded and evolved in 
        ways that undermine the ability of colleges and 
        universities to serve students and accomplish their 
        missions. The compliance problem is exacerbated by the 
        sheer volume of mandates--approximately 2,000 pages of 
        text--and the reality that the Department of Education 
        issues official guidance to amend or clarify its rules 
        at a rate of more than one document per work day. As a 
        result, colleges and universities find themselves 
        enmeshed in a jungle of red tape, facing rules that are 
        often confusing and difficult to comply with. They must 
        allocate resources to compliance that would be better 
        applied to student education, safety, and innovation in 
        instructional delivery. Clearly, a better approach is 
        needed.\102\
---------------------------------------------------------------------------
    \102\Id.

    The task force recommended consolidating, streamlining, or 
eliminating burdensome and costly regulations, legislation, and 
reporting requirements. The report also reviewed and quantified 
the impact of the regulations with estimates of the time and 
costs associated with each requirement. The group of presidents 
and chancellors recommended significant reforms so that current 
and future rules are promulgated in a way that considers the 
costs and benefits to taxpayers, institutions, and students. 
The PROSPER Act includes many of the findings outlined in the 
report, including streamlining or eliminating requirements 
around copyright infringement policies, fire reports, policies 
on missing students, vaccination policies, and voter 
registration.
            B. Campus sexual assault policies
    As stated previously, sexual assault on college campuses is 
an important and serious issue. Federal law should achieve the 
appropriate balance of supporting victims while ensuring the 
accused are treated fairly--all the while remembering campuses 
aren't courts of law and are not equipped to be courts.
    When an incident of sexual violence leads to an 
investigation or a disciplinary process in which a student 
could be expelled or otherwise sanctioned for violating 
institutional rules, it is particularly important those 
involved in the disciplinary process apply fundamental 
principles of fairness and equality. In 2011, the Department 
imposed a one-size-fits-all standard when it issued a Dear 
Colleague Letter providing institutions guidance on their 
responsibilities under Title IX.\103\ The guidance instructed 
institutions to use a preponderance of the evidence standard 
rather than the higher clear and convincing evidence standard 
to evaluate sexual harassment or violence complaints in order 
to be in compliance with Title IX requirements.\104\ The lower 
standard of evidence is seen as unfair and unjust for the 
accused by individual rights organization and is inconsistent 
with the evidentiary standard that many colleges and 
universities have found works best for their campus.
---------------------------------------------------------------------------
    \103\Dear Colleague Letter from Russlynn Ali, Assistant Secretary 
for Civil Rights, U.S. Department of Education (Apr. 4, 2011), https://
www2.ed.gov/about/offices/list/ocr/letters/colleague-201104.pdf.
    \104\Id.
---------------------------------------------------------------------------
    At a September 10, 2015, hearing, Mr. Joseph Cohn, 
Legislative and Policy Director for the Foundation for 
Individual Rights in Education, discussed the importance of a 
fair process:

          Institutions adjudicating guilt or innocence in 
        sexual assault cases must do so in a fair and impartial 
        manner that is reasonably calculated to reach the 
        truth. This should be self- evident. Indeed, in the 
        April 4, 2011, ``Dear Colleague'' letter issued by the 
        Department of Education's Office for Civil Rights 
        (OCR), the agency acknowledged that ``a school's 
        investigation and hearing processes cannot be equitable 
        unless they are impartial.'' Disappointingly, however, 
        OCR's own rhetoric and actions have been decidedly one-
        sided, emphasizing the rights of the complainant while 
        paying insufficient attention to the rights of the 
        accused. For example, OCR has mandated that 
        institutions utilize our judiciary's lowest burden of 
        proof, the ``preponderance of the evidence'' standard, 
        despite the absence of any of the fundamental 
        procedural safeguards found in the civil courts of law 
        from which that standard comes. Without the basic 
        procedural protections that courts use (like rules of 
        evidence, discovery, trained legal advocates, the right 
        to cross-examine witnesses, and so forth), campus 
        tribunals are making life-altering findings using a low 
        evidentiary threshold that amounts to little more than 
        a hunch that one side is right. This mandate is not 
        just unfair to the accused--it reduces the accuracy and 
        reliability of the findings and compromises the 
        integrity of the system as a whole.\105\
---------------------------------------------------------------------------
    \105\Testimony of Joseph Cohn, Hearing on Preventing and Responding 
to Sexual Assault on College Campuses, supra note 23.

    The Committee recognizes the need for fairness and due 
process in campus disciplinary proceedings. Therefore, H.R. 
4508 requires all institutional investigations or disciplinary 
processes regarding sexual violence to be prompt, impartial, 
and fair to both the accuser and the accused. The legislation 
also allows an institution to determine the standard of 
evidence it deems most appropriate for institutional 
disciplinary proceedings involving sexual assault, as long as 
it is not arbitrary or capricious and is applied consistently 
for all proceedings, and the standard chosen by the institution 
must be clearly communicated to students.
    In addition, after a sexual assault has occurred, 
institutions may receive requests from law enforcement and 
prosecutors to delay campus investigations, disciplinary 
proceedings, or even issuing a timely warning in order to allow 
the local authorities to pursue a criminal investigation or 
prosecution relating to a sexual assault. H.R. 4508 gives 
institutions clear authority to respect requests from a law 
enforcement agency or a prosecutor to delay or suspend 
investigations or institutional disciplinary proceedings 
regarding campus sexual assault without being penalized for 
doing so in order to allow the local authorities to pursue a 
criminal investigation or prosecution.
    Institutions also face an increasing array of 
responsibilities related to education about sexual assault 
policies, both for students and employees. For example, Title 
IX coordinators, campus police, campus security authorities, 
and other groups must be educated on a variety of topics, 
including but not limited to prevention and awareness programs 
and disciplinary processes. Without clear standards for 
evaluating education policies, institutions may be uncertain 
about the adequacy of their programs. H.R. 4508 requires the 
Secretary to create modules, developed in consultation with 
campus experts, local law enforcement, victim advocates, due 
process experts, and other experts, to educate officials 
conducting sexual assault investigations and disciplinary 
proceedings, including how to conduct fair investigations and 
proceedings. Under the legislation, the modules will be made 
available to colleges and universities and any institution that 
chooses to use the modules will be deemed in compliance with 
its education obligations.
    Rather than rigid federal mandates, the Committee believes 
institutions need the flexibility to respond to incidents of 
sexual assault in a way that meets the needs of students and 
the individual campus when these tragic incidents unfortunately 
do occur. A one-size-fits-all approach is simply unfair to 
victims, to the accused, and to campus communities. The PROSPER 
Act provides strong supports to victims of sexual assault and 
protects due process rights while giving institutions the 
flexibility they need to help fight sexual assault on campus.
            C. Loan Counseling
    Current counseling policies for federal student aid 
recipients are inadequate. Counseling occurs too late in the 
process to guide responsible decisions and too often does not 
make a lasting impression about the implications of student 
debt. A Young Invincibles survey found over 40 percent of 
student aid recipients either did not receive, or at the least 
did not remember receiving, federally mandated student loan 
counseling.\106\ Furthermore, counseling and financial literacy 
requirements exclude parent borrowers and students who receive 
only Pell Grants. With default rates on the rise, it is 
critical to empower students and families with the data 
necessary to make informed decisions about the best way to 
finance postsecondary education.
---------------------------------------------------------------------------
    \106\Major New Student Borrower Survey Shows Startling Lack of 
Consumer Information on Financial Aid, Young Invincibles (Oct. 11, 
2012), http://younginvincibles.org/press-releases/major-new-student-
borrower-survey-shows-startling-lack-of-consumer-information-on-
financial-aid/.
---------------------------------------------------------------------------
    H.R. 4508 requires timely, consumer-friendly, and 
comprehensive information be delivered to all recipients of 
Title IV student aid by incorporating many provisions included 
in Rep. Brett Guthrie's (R-KY) bill, H.R. 1635, the Empowering 
Students Through Enhanced Financial Counseling Act. Under the 
PROSPER Act, individuals, including parent borrowers and Pell 
Grant recipients, must complete a personalized counseling 
session before receiving federal financial assistance each 
year. Updated disclosure policies will present students 
important information about grants and loans including the 
annual percentage rate, total debt balance, repayment plans, 
loan forgiveness options, and treatment of the loan while in 
deferment or forbearance. Strengthened exit counseling will 
inform borrowers of projected monthly payments under standard 
and income-based repayment plans based on the borrower's 
anticipated salary. Institutions may provide counseling 
services directly during an in-person session or through an 
online tool created for or by the institution. The institution 
may choose to have the students use the consumer-tested online 
tool administered by the Department.
    The Committee knows providing better information about 
loans and the post-college obligations and responsibilities 
that come with those loans will help students make wise 
borrowing decisions. Student loan debt continues to rise, but 
Congress can help curtail instances of harmful over borrowing 
with proven counseling interventions. Under the PROSPER Act, 
counseling shall include information on any outstanding federal 
student loan balance the borrower may have and a notice that 
students are not required to accept the full amount of the 
federal student loan offered.
    Institutions across the country are adopting their own 
unique strategies to combat over borrowing. Indiana University 
demonstrates how effective counseling policies can be in 
reducing loan disbursements. The university was able to cut 
student debt by $31 million simply by telling students what 
their monthly payment would be after graduation before such 
students took out loans for the next year.\107\ This was more 
than five times the decrease in outlays at four-year public 
institutions nationally. By also incorporating this idea into 
the PROSPER Act, the Committee is taking steps to limit 
needlessly high loan balances which can help borrowers avoid 
harmful defaults.
---------------------------------------------------------------------------
    \107\Janet Lorin, How Students at a U.S. University Borrowed $31 
Million Less, Bloomberg (July 5, 2014) http://www.bloomberg.com/news/
2014-07-03/here-s-how-indiana-university-students-borrowed-31-million-
less.html.
---------------------------------------------------------------------------
    Recipients of federal financial aid do not receive critical 
information about loans and grants in an easily accessible way. 
The Committee addresses this information gap by requiring a 
consumer-friendly tool designed to educate individuals about 
the critical terms and conditions of the federal aid programs. 
Borrowers, presented with better information, will be able to 
manage financial obligations and responsibly pay for 
postsecondary education. The PROSPER Act provides students and 
parents the tools needed to pursue successful educational 
pathways that will lead to lifelong prosperity.
            D. 90/10 Rule
    The 90/10 rule was put into effect by the Higher Education 
Act Amendments of 1998. It prohibits proprietary institutions 
from receiving more than 90 percent of their revenues from 
Title IV sources and mandates that 10 percent of their revenues 
must be from non-Title IV sources. The rule replaced its 
predecessor, the 85/15 rule, which was created in Higher 
Education Amendments of 1992. The regulations outlining the 
payments that count in the numerator and in the denominator 
were codified in the Higher Education Opportunity Act.
    Because the 90/10 rule does not serve as an appropriate 
proxy of institutional integrity and educational quality and 
leads to higher costs for institutions that serve low-income 
students, the PROSPER Act repeals the 90/10 rule A publication 
written by Mr. Anthony J. Guida Jr. and Mr. David Figuli of the 
University of Chicago Law Review, states:

          [T]he 90/10 rule--through complex regulatory metrics 
        with contradictory implications, penalize proprietary 
        institutions that serve high minority populations and 
        discourage them from providing the type of access that 
        federal student funding initiatives were intended to 
        enable. If, as the data and analysis suggest, it is the 
        type of student enrolled, as opposed to the quality of 
        the program offered or the institution offering it, 
        that is the primary cause of low graduation rates, 
        excessive debt, and student defaults, then it is 
        pointless to shift these students from proprietary 
        institutions to nonprofit and public colleges. Both 
        rules should be eliminated in favor of policies that 
        apply to all types of institutions, that are designed 
        to ensure student access and success, that require 
        transparency and comparability, that consider 
        institutional mission where appropriate, that measure 
        student outcomes normalized against populations served, 
        and that treat at-risk students equitably no matter 
        what institution they choose to attend.\108\
---------------------------------------------------------------------------
    \108\Anthony J. Guida Jr. and David Figuli, Higher Education's 
Gainful Employment and 90/10 Rules: Unintended ``Scarlet Letters'' for 
Minority, Low-Income, and Other At-Risk Students, The University of 
Chicago Law Review (2011), https://chicagounbound.uchicago.edu/cgi/
viewcontent.cgi?article=5563&context=uclrev.

    The Committee believes this metric is largely arbitrary and 
placed unfairly on proprietary institutions. The Committee 
believes that all institutions should be held to the same 
accountability metrics, and the PROSPER Act accomplishes this 
goal by applying a programmatic loan repayment rate to all 
programs at institutions to determine their eligibility to 
participate in Title IV aid, allowing accreditors to asses 
institutional success based on student learning and educational 
outcomes in relation to the institution's mission, and 
requiring all institutions to provide students aggregated data 
regarding the average debt and earnings of graduates.

Negotiated rulemaking

    The negotiated rulemaking process can be a valuable tool to 
ensure stakeholder input is considered as federal regulations 
are developed and finalized. This is why the HEA requires the 
use of the negotiated rulemaking process when regulating on 
provisions under Title IV, and the PROSPER Act maintains this 
important requirement. However, the Obama administration 
distorted the purpose of the negotiated rulemaking process in 
order to use it to achieve its own policy goals rather than 
work productively with key stakeholders to develop appropriate 
and workable regulations. H.R. 4508 improves the negotiated 
rulemaking process by establishing specific procedures the 
Secretary must follow when issuing federal regulations under 
Title IV and providing stakeholders and the authorizing 
committees adequate time to review regulations. Dr. Brit 
Kirwan, Chancellor Emeritus of the University System of 
Maryland and Co-Chair of the Senate Task Force on Federal 
Regulation of Higher Education, called for reform to the 
process at a February 7, 2017, hearing saying ``the negotiated 
rulemaking process used by the Department should be improved to 
ensure it achieves its intended goals.''\109\ The Committee 
believes the reforms in the PROSPER Act help reduce excessive 
federal regulation on campuses; prevent the Secretary from 
compounding the burden of federal regulations already on the 
books; and ensure stakeholders have ample time to raise 
concerns with proposed regulations and to request they be 
addressed accordingly before the regulations are finalized.
---------------------------------------------------------------------------
    \109\Testimony of Brit Kirwan, Hearing on Challenges and 
Opportunities in Higher Education, supra note 55.
---------------------------------------------------------------------------

Loan servicing

    Loan servicers are federal contractors that handle billing, 
repayment plan enrollment, loan consolidations, and other 
related tasks. These servicing entities help borrowers manage 
their student loans and are subject to comprehensive and 
vigorous federal requirements. In the HEA, Congress gives the 
Department the authority to contract with companies in order to 
fulfill the requirements of the law. A unified federal 
regulatory framework promotes consistent, high-quality customer 
service at a low-cost to the taxpayer. Congress has given the 
Department sole regulatory and procurement authority when it 
comes to contracting with companies for origination, servicing, 
and collection of federal student loans. The Ninth Circuit, in 
the case of Chae v. SLM Corp, adjudicated this congressional 
intent when it found that ``permitting varying state law 
challenges across the country, with state law standards that 
may differ and impede uniformity, will almost certainly be 
harmful . . . .''\110\
---------------------------------------------------------------------------
    \110\Ann Chae, et al v. SLM Corporation, et al, No. 08-56154 (9th 
Cir. 2010).
---------------------------------------------------------------------------
    The PROSPER Act maintains the federal preemption and 
further clarifies entities under contract are exempt from state 
and local rules seeking to impose requirements when such 
entities are carrying out federal student loan activities. A 
number of states have proposed or passed a series of well-
intentioned requirements in an effort to improve servicing for 
students. Unfortunately, these rules and laws are often 
contradictory or duplicative of federal requirements. They 
threaten to undo the unified regulatory framework and further 
complicate borrowers' efforts to repay student loans. The 
majority of borrowers' negative experiences arise from a 
misunderstanding of the terms of their loans, which are 
determined by statute or regulation, and cannot be changed by a 
loan servicer. Guaranteeing federal student loans are treated 
the same for borrowers across the country will help borrowers 
have a better understanding of their opportunities to succeed 
in repayment and develop a solid financial history. State 
attempts to add servicing rules will not ensure the long-term 
financial safety of federal student loan borrowers and will 
instead make it difficult, to the detriment of borrowers, for 
the Department to implement its student loan programs. These 
state regulations will also have a harmful effect on the cost 
of operating the federal loan program. The Committee is 
committed to providing all federal student loan borrowers a 
high-quality borrowing experience and looks forward to working 
with the Department to modernize and update federal student 
loan servicing.

State authorization

    For more than 50 years, the HEA has required an institution 
of higher education participating in federal student aid 
programs be authorized to provide a postsecondary educational 
program within a state.\111\ The state authorization regulation 
promulgated by the Obama administration has been plagued by 
numerous implementation issues and delays\112\ and micromanages 
how states comply with this long-standing requirement. The 
Committee believes the state authorization regulation imposes a 
one-size-fits-all requirement that will harm students and 
public and private colleges. In issuing the regulation, the 
federal government overstepped its traditional role in the 
higher education accountability triad of utilizing the 
knowledge and expertise of states and accrediting agencies to 
measure and ensure institutional quality. The rule also 
infringes on the right of states to regulate their higher 
education institutions. Therefore, H.R. 4508 repeals the state 
authorization regulation and returns to states the authority 
for authorizing institutions to operate, and it prohibits the 
Secretary from further regulating in the area.
---------------------------------------------------------------------------
    \111\20 U.S.C. Sec. 1001(a)(2) (1965).
    \112\Russell Poulin and Marianne Boeke, History of State 
Authorization, wcet, http://wcet.wiche.edu/focus-areas/policy-and-
regulation/state-authorization/history.
---------------------------------------------------------------------------
    One of the more troubling aspects of the state 
authorization regulation is its impact on distance education 
programs. Under the regulation, institutions of higher 
education that offer distance education programs are forced to 
seek authorization in each state in which the students it 
serves live, no matter how few students from a state might be 
served, leading to increased costs and decreased access for 
students. During a March 11, 2011, hearing Mr. John Ebersole, 
President of Excelsior College, an online institution of higher 
education, discussed the burden the state authorization 
regulation will impose on his institution:

          We do know we have put money in our budget for 
        compliance and we estimate that at our institution by 
        the time we hire the additional staff that will be 
        necessary to coordinate this and we pay the fees which 
        each of these states requires we are going to have an 
        annual recurring cost of somewhere between $150,000 and 
        $200,000 which when multiplied by the number of 
        institutions that offer online programs today, we are 
        talking about an additional cost which will eventually 
        be passed to students of $500 million.\113\
---------------------------------------------------------------------------
    \113\Testimony of John Ebersole Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Training, Hearing on Education Regulations: Federal Overreach into 
Academic Affairs, March 11, 2011, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=227134.

    The Association of Public and Land-grant Universities also 
undertook an analysis of the cost of seeking authorization in 
---------------------------------------------------------------------------
each state where a distance education student resides, finding:

          Cost estimates for institutions to achieve full 
        compliance range from $76,100 for a public community 
        college to comply with requirements in five states for 
        257 students to $5.5 million for a public university 
        system to comply with 49 states. These estimates do not 
        include the additional expense of staff time, which may 
        cost some institutions as much as $195,000. State 
        authorization procedures often duplicate those of 
        accrediting agencies, creating unnecessary and 
        redundant costs for institutions. For those states 
        where an institution has very few students, the cost of 
        compliance may exceed tuition revenue.\114\
---------------------------------------------------------------------------
    \114\State Authorization Reciprocity Agreement, Association of 
Public and Land-Grant Universities, http://www.aplu.org/projects-and-
initiatives/project-degree-completion/sara/index.html.

    H.R. 4508 further clarifies institutions must demonstrate 
authority to operate only in those states in which the 
institution maintains a physical location.

Accreditation

    Accreditation is often a costly, burdensome, and rigidly 
bureaucratic endeavor. The Committee is concerned the role of 
accreditation has shifted from its historical purpose--assuring 
the quality of educational delivery--to a more compliance-
focused role where accreditors are required to perform duties 
for which they are not necessarily well suited and that are 
unrelated to academic quality, such as reviewing facilities and 
equipment, fiscal capacity, and evidence of compliance with 
Title IV responsibilities. The Committee believes refocusing 
accreditation standards on educational quality and student 
learning as well as reducing the federal government's 
burdensome and duplicative regulations may provide accreditors 
the capacity to restore their focus on academic quality and 
improvement of institutions.
    Currently, accreditors are required to evaluate 
institutions based on 10 different areas, most of which are 
unrelated to academic quality, including on facilities and 
equipment, fiscal capacity, and evidence of compliance with 
Title IV responsibilities. H.R. 4508 replaces the 10 standards 
with a requirement that accreditors have standards to assess 
the institution's success in relation to the institution's 
mission with respect to student learning and educational 
outcomes. Under the legislation, accreditors are required to 
define expected student learning goals and educational outcomes 
for institutions or to require their institutions to do so 
themselves. Institutions must then demonstrate performance 
against those expected measures as part of their review. The 
Committee notes that nothing in the legislation would prevent 
accreditors from continuing to have other standards in place 
that assess institutional quality.
    Dr. Michale McComis, Executive Director of the Accrediting 
Commission of Career Schools and Colleges, testifying at an 
April 25, 2017, hearing noted:

          [A]ccreditors must do better at defining student 
        achievement outcomes with greater transparency to show 
        how these measures are applied so that the public and 
        policy makers can rely on the results of those 
        evaluation processes. Accreditation, as the sector with 
        the principle responsibility for quality assurance in 
        higher education, needs to work earnestly toward moving 
        the discussion of accreditation's effectiveness from 
        that of skepticism to confidence.\115\
---------------------------------------------------------------------------
    \115\Testimony of Michale McComis Before the Committee on Education 
and the Workforce Subcommittee on Higher Education and Workforce 
Development, Hearing on Strengthening Accreditation to Better Protect 
Students and Taxpayers, April 27, 2017, https://edworkforce.house.gov/
calendar/eventsingle.aspx?EventID=401569.

    In an effort to increase institutional accountability 
without involvement by the federal government, H.R. 4508 
requires accreditors to have a system in place in which they 
annually identify institutions or programs accredited by the 
agency that may be experiencing difficulties accomplishing 
their missions with respect to their established student 
learning and educational outcome goals. Under the legislation, 
accreditors are directed to, as appropriate, use information 
such as student loan default or repayment rates, retention or 
graduation rates, evidence of student learning, financial data, 
and other indicators to identify at-risk institutions and 
require those institutions or programs to address deficiencies 
and ensure that any plan to address and remedy deficiencies is 
successfully implemented. The Committee believes this provision 
increases transparency and accountability without tying 
performance to an automatic sanction. Accreditors will be able 
to consider institutional mission and other factors impacting 
performance, such as students served, when reviewing the 
institution.
    H.R. 4508 requires all accrediting agencies wishing to be 
recognized by the Secretary to meet the same criteria, 
including being separate and independent from any related, 
associated, or affiliated trade association or membership 
organization. This guarantees the recognition of an 
accreditation agency by the Secretary means the same thing 
across all types of accreditors. The Committee believes 
requiring accrediting agencies to be independent of affiliated 
trade associations will mitigate any potential conflicts of 
interest that accreditors may have in accrediting their own 
members. Under the PROSPER Act, any agency or association with 
a voluntary membership and the principal purpose of accrediting 
institutions will also be allowed to apply for recognition by 
the Secretary, breaking up the accreditation monopoly and 
expanding which types of entities can be accreditors.
    H.R. 4508 strikes provisions that single out institutions 
offering distance education and require accreditors to 
demonstrate the ability to review, evaluate, and assess the 
quality of any instruction delivery model or method the agency 
seeks to include within its scope of recognition. However, as 
distance education has become a norm, the Committee expects 
institutions that offer distance education to have security 
mechanisms in place to ensure the student who registers for the 
course or program is the same student who participates in the 
course and completes the program to receive academic credit. 
The security mechanisms utilized should ensure that a log-in to 
the institution is not easily transferable from one individual 
to another individual. Authentication technology continues to 
evolve at a fast pace, offering a range of solutions to address 
financial and academic fraud that would otherwise undermine the 
public confidence of the distance education sector. The 
Committee strongly believes the security mechanisms put in 
place should not infringe on any student's privacy and should 
be implemented in a less burdensome and intrusive way.
    The Committee believes increasing flexibility in how often 
accreditors need to review institutions and in what they 
require of institutions during review cycles will improve 
efficiencies and flexibility. H.R. 4508 provides accreditors 
with clear authority to undertake differentiated reviews that 
reflect the institution's history of meeting accreditation 
standards and record of performance on key metrics. 
Additionally, the PROSPER Act requires accreditors review only 
substantive changes that significantly impact the educational 
mission or programs offered at an institution and prohibits the 
Secretary from further regulating in this area. Furthermore, 
under current law, institutions not under any sanction from 
their accreditor are not permitted to change accreditors 
without first getting approval from the Secretary. The 
Committee believes this is an unnecessary requirement for 
institutions in good standing with their accreditor. H.R. 4508 
allows institutions not under sanction by their accreditor or a 
state agency to change accreditors without the approval of the 
Secretary, provided the institution notifies the Secretary of 
the change.
    Federal requirements on accreditors often prohibit them 
from approving innovative programs. Mr. McComis highlighted the 
need for flexibility to allow for innovation in his testimony 
before the Committee, saying ``for the sake of higher 
education's advancement, the higher education community--
including accrediting agencies--must be allowed to adapt and 
innovate in order to accommodate the diversity of students, 
student preferences, and learning styles.''\116\ The Committee 
agrees with Mr. McComis and included a wavier process in the 
PROSPER Act, based on H.R. 3869, the Innovation in 
Accreditation Act, introduced by Rep. Bradley Byrne (R-AL), 
through which an accreditor can apply to have a requirement 
waived if the accreditor can demonstrate such waiver is 
necessary to enable an institution of higher education or 
program to implement innovative practices.
---------------------------------------------------------------------------
    \116\Id.
---------------------------------------------------------------------------
    H.R. 4508 requires accreditors to post on their websites 
for public inspection a list of all institutions accredited by 
the agency, the year the accreditation was granted, the date of 
the most recent comprehensive evaluation, and the anticipated 
date of the next evaluation. Accreditors are also required to 
post all actions taken and a summary of why any adverse actions 
were taken. The Committee believes providing the public with 
access to summary information on individual institutions' 
accreditation reviews will help increase transparency and 
public accountability while still maintaining the usefulness of 
the accreditation process to institutions.
    Additionally, the Committee believes federal intrusion in 
transfer of credit decisions is an inappropriate federal 
overreach into issues of academic freedom. However, the 
Committee is concerned over reports that some students are 
unable to easily transfer credit and continue their education 
when going from a nationally to regionally accredited 
institution. The Committee agrees with the sentiments regarding 
balance in the use of accreditation status in transfer 
decisions expressed in the ``Joint Statement on the Transfer 
and Award of Credit'' by the American Association of Collegiate 
Registrars and Admissions Officers, the Council for Higher 
Education Accreditation, and the American Council on Education:

          Institutions and accreditors should ensure that 
        decisions about awarding transfer credit are not made 
        solely on the source of accreditation of the sending 
        program or institution. While acknowledging that 
        accreditation is an important factor, receiving 
        institutions ought to make clear their institutional 
        reasons for accepting or not accepting credits that 
        students seek to transfer. Students should have 
        reasonable explanations about how work for which 
        students seek transfer credit is or is not of 
        sufficient quality when compared with the receiving 
        institution and how work is or is not comparable with 
        curricula and standards to meet degree requirements of 
        the receiving institution.\117\
---------------------------------------------------------------------------
    \117\Joint Statement on the Transfer and Award of Credit, AACRAO, 
CHEA, & ACE (Oct. 2, 2017), https://www.chea.org/userfiles/uploads/
Joint-Statement-Transfer-Award-Credit-2017.pdf.

    Accreditors are currently required to consistently apply 
and enforce standards that respect the stated mission of the 
institutions they accredit, including religious missions. 
However, accreditation actions in the past have raised concerns 
that accreditors may be acting inconsistently with this 
requirement. H.R. 4508 clarifies the religious mission of an 
institution may be reflected in the institution's beliefs, 
speech, standards of conduct, and policies, including any 
policies regarding admission, retention, employment, housing, 
or student conduct. The legislation also makes clear an 
accreditor's standard fails to respect an institution's 
religious mission when the standard induces or pressures an 
institution to act contrary to, or to refrain from acting in 
support of, any aspect of its religious mission. The PROSPER 
Act provides institutions the option to file a complaint with 
the Secretary if the institution believes an adverse action of 
an accrediting agency fails to respect the institution's 
religious mission. The Committee believes that to maintain the 
important diversity of the American higher education system 
accreditors must continue to respect institutional missions in 
their review process.

Eligibility and certification procedures

    The Secretary is required under the law to ensure federal 
student aid funds only flow to institutions of higher education 
that are financially healthy. The report from the Task Force on 
the Federal Regulation of Higher Education evaluated the 
current financial responsibility standards and the process used 
by the Secretary to determine financial responsibility. The 
task force found that the Department is not living up to this 
responsibility:

          [T]he agency has incorrectly interpreted and 
        implemented the accounting definitions and standards 
        used to calculate the financial responsibility 
        composite scores for private nonprofit, and for-profit 
        institutions. It has also failed to follow the 
        statutory requirement to consider the overall financial 
        health of an institution and has deemed institutions as 
        failing based solely on these composite scores. These 
        policies need to be revised to promote greater 
        transparency about the method by which the Department 
        reaches its determinations and a process that allows 
        institutions to challenge them. This would include 
        allowing schools to submit additional evidence of their 
        overall financial health.\118\
---------------------------------------------------------------------------
    \118\Task Force on Federal Regulation of Higher Education, supra 
note 98.

    H.R. 4508 reforms the process by which the Secretary 
determines if an institution is financially responsible to 
ensure a more accurate determination. The legislation also 
provides for alternative ways of determining an institution's 
financial responsibility beyond the federally calculated 
composite score by relying more extensively on already existing 
industry and professional standards. The legislation provides 
for an official review, appeal, and transparency process for 
institutions continuing to use the federal composite score that 
allows for the current financial situation at an institution to 
be considered and establishes a timeline for institutions to 
correct financial weaknesses. The Committee expects the 
Secretary to follow statutory requirements under this section 
as well as ensure the use of current accounting practices when 
carrying out these provisions.
    Additionally, the Committee believes the program review 
process should be improved. At a February 7, 2017, hearing, Dr. 
Kirwan underscored the Committee's concerns and called for 
reforms to the program review process, noting:

          [T]he Department should be required to act in a 
        timely manner when conducting program reviews and 
        investigating and resolving complaints.
          Under the HEA, colleges and universities are required 
        to submit documents and other records requested by the 
        Department within a prescribed amount of time. While 
        institutions are required to adhere to strict time 
        lines in terms of responding to the agency's requests, 
        there are no time limits imposed on the Department in 
        terms of issuing a final determination after a program 
        review.
          By way of example, in May 2013, Yale University was 
        ordered to repay financial aid funds based on a 
        Department of Education audit undertaken in 1996. The 
        University of Colorado received a similar demand based 
        on a 1997 audit. Even though the universities appealed 
        in a timely fashion, it took 17 and 16 years, 
        respectively, for the Department to take action. Taking 
        over 10 years to complete a program review and issue 
        fines should not be considered acceptable.\119\
---------------------------------------------------------------------------
    \119\Testimony of Brit Kirwan, Hearing on Challenges and 
Opportunities in Higher Education, supra note 55.

    H.R. 4508 addresses these lapses by requiring the Secretary 
to conduct, respond to, and conclude program reviews within 
specified timeframes. The legislation also requires the 
Secretary to provide a written explanation to an institution 
upon the initiation of a program review detailing the reasons 
for the review when practicable. The Committee urges the 
Secretary to make every effort to complete program reviews as 
quickly as possible but in no longer than the timelines 
outlined in the legislation.

                    Title V--Developing Institutions

    Title V of the HEA authorizes institutional aid to 
Hispanic-Serving Institutions (HSIs). To be designated as an 
HSI, an institution must have at least 25 percent of enrolled 
students who are Hispanic-American. Of the 700 institutions 
that are eligible to receive institutional aid according to the 
2017 Eligibility Matrix released by the Department, more than 
300 institutions are HSIs.\120\ Also, Hispanic enrollment has 
increased more than 10 percent from 2005 to 2015.\121\
---------------------------------------------------------------------------
    \120\Eligible Institutions for Title III and Title V Programs, 
supra note 31.
    \121\Digest of Education Statistics, Table 302.60: Percentage of 
18- to 24-year-olds enrolled in degree-granting postsecondary 
institutions, by level of institution and sex and race/ethnicity of 
student: 1970 through 2015, National Center for Education Statistics 
(2016), https://nces.ed.gov/programs/digest/d16/tables/dt16_302.60.asp.
---------------------------------------------------------------------------
    The PROSPER Act reauthorizes the Developing Institutions 
program in Title V, making similar reforms to the program as 
were made for institutions participating in the institutional 
aid programs in Title III. Like programs in Title III, the bill 
expands the allowable uses to include activities such as 
establishing community outreach programs, developing career-
specific programs, establishing dual or concurrent enrollment 
programs, and establishing pay for success initiatives. The 
bill also explicitly allows institutions to award scholarships 
from their endowments and promotes institutional self-
sustainability by requiring eligible institutions develop a 
comprehensive plan to maximize resources that will result in 
institutions needing less institutional aid to offer the same 
services to their students. Furthermore, a completion rate of 
at least 25 percent also applies to HSIs.

               Title VI--International education programs

    The international education programs in the HEA authorize 
the Secretary to award grants to institutions to enhance 
instruction in foreign language and area studies and to support 
research, faculty exchanges, and student fellowships.
    The PROSPER Act repeals all unfunded programs and 
reauthorizes all currently-funded programs under Title VI, 
except the Undergraduate International Studies and Foreign 
Language program (UISFL) and the American Overseas Research 
Centers (AORC) program. Services found in the AORC program and 
the UISFL program closely mirror services found in the National 
Resource Centers program, such as the linkages maintained 
between overseas institutions or organizations that may 
contribute to the teaching and research of the center or 
program; basic functionalities to include teaching, research, 
and curriculum development; and the support for faculty, staff, 
and student travel. The Committee believes students can benefit 
from the services and opportunities in the National Resource 
Centers programs and, therefore, H.R. 4508 streamlines this 
title and repeals the duplicative AORC and UISFL programs.
    The PROSPER Act requires an institution to assure the 
Secretary it will support a diverse perspective and wide range 
of views to generate debate on world regions and international 
affairs. The Secretary is required to submit an annual report 
to Congress on how institutions are complying with this 
requirement, and H.R. 4508 clarifies institutions receiving 
these funds shall not promote any biased views that are 
discriminatory toward any group, religion, or population of 
people, such as anti-Semitic views. The Committee believes 
institutions should present views that are unbiased and non-
discriminatory.

       Title VII--Graduate and postsecondary improvement programs


Graduate education programs

    Title VII of the HEA allows entities to apply for a 
competitive grant to assist students pursing a degree beyond 
undergraduate education. In an effort to streamline this title, 
H.R. 4508 repeals unfunded programs and maintains those 
programs that received funding in FY 2017. The eliminated 
programs include the Fund for the Improvement of Postsecondary 
Education and the College Access Challenge Grant program.

Programs for students with disabilities

    H.R. 4508 reauthorizes key programs to support students 
with disabilities, while repealing programs and activities that 
have already been carried out or that have not received 
funding. The bill also restructures funding for the 
Coordinating Center and the National Technical Assistance 
Center to bring these provisions in line with their current 
funding arrangements. The Committee believes this approach 
reflects the bipartisan, bicameral priorities that have been 
established by multiple Congresses. In particular, the 
Committee believes reauthorizing the Model Transition Programs 
and maintaining language that offers participating students 
access to certain federal financial aid will encourage colleges 
and universities to expand critical postsecondary education 
opportunities for students with intellectual disabilities.

                       Title VIII--Other repeals

    H.R. 4508 repeals all programs in Title VIII, most of which 
have never received funding. While the majority of Title VIII 
programs have never been funded, programs in other titles serve 
the populations Title VIII programs are designed to serve and 
are reauthorized under the PROSPER Act. Repealing the Title 
VIII programs will ensure any future funding to assist these 
populations is directed toward programs authorized under H.R. 
4508, thereby maximizing funding, streamlining programs that 
serve these populations, and protecting congressional 
priorities.

                   Title IX--Amendments to other laws


Education of the Deaf Act

    H.R. 4508 reauthorizes the Education of the Deaf Act (EDA), 
which authorizes the operation of Gallaudet University and the 
National Technical Institute for the Deaf. The bill repeals 
unfunded programs within EDA, while maintaining support for 
these two institutions that offer critical elementary, 
secondary, and postsecondary education opportunities to 
students who are deaf and hard of hearing. The bill maintains 
bipartisan language related to Gallaudet University's 
compliance with the Every Student Succeeds Act, while providing 
the university increased flexibility in how to meet those 
requirements. This change will ensure the Laurent Clerc 
National Deaf Education Center programs are held accountable 
for delivering an excellent education, freeing the university 
from the obligation to partner with another state for use of 
that state's academic standards, assessments, and 
accountability system. The bill also makes changes to the 
Gallaudet University Board of Directors. H.R. 4508 increases 
the total number of board members from 21 to 23, equalizes the 
number of Senators and Members of the House of Representatives 
on the board, and ensures bipartisan representation. These 
changes will increase the accountability of the university to 
Congress and taxpayers and maintain the balance of board 
members from the public and private sectors.

Tribally Controlled Colleges and Universities

    H.R. 4508 reauthorizes the Tribally Controlled Colleges and 
Universities Assistance Act to continue funding for 
institutions created and chartered by tribal governments or the 
federal government to provide higher education to American 
Indian students through local, culturally based programs. The 
Committee believes students should have a variety of options to 
choose from when pursuing higher education, including programs 
that support cultural traditions and heritage.

General Education Provisions Act

    H.R. 4508 amends the student privacy section of the General 
Education Provisions Act known as the Family Educational Rights 
and Privacy Act (FERPA). Under FERPA, student records are 
prohibited from being shared without consent unless one of the 
exceptions is met. The amendment adopted adds the authority for 
an institution of postsecondary education to share a student 
record with the student's previous institution to apply the 
coursework from one institution to the other for the purposes 
of awarding a recognized credential, a process known as 
``reverse transfer.'' Importantly, the amendment includes a 
requirement to get consent from the student prior to the 
awarding of the credential. Student records contain personal 
information that exceeds the student's educational information, 
and the records should be shared in very limited circumstances 
and only for the benefit of students. When sharing a record, 
schools must weigh the balance of protecting the student's 
privacy and improving the student's education. Through the 
reverse transfer process, students may benefit from receiving a 
credential they had not realized they had earned, but ensuring 
students consent before conferring such credential is a 
critical recognition of the importance of student privacy.

                               Conclusion

    Americans have invested billions of dollars and countless 
hours of hard work into higher education in an effort to earn a 
better job and live a fulfilling life. But the promise of 
postsecondary education in this country is broken. 
Unfortunately, today's chaotic maze of federal aid programs, 
requirements, and red tape has driven up college costs and made 
pursuing and finishing a postsecondary education unworkable for 
far too many individuals at a time when more businesses are 
demanding their employees attain postsecondary credentials to 
fill technical, high-skill, good-paying jobs. Americans deserve 
better.
    It is time to put the postsecondary system on track to meet 
the needs of students. The reforms in the PROSPER Act reimagine 
the outdated concepts of higher education and support students 
in completing an affordable postsecondary education that will 
prepare them to enter the workforce with the skills they need 
for lifelong success.

                           Section-by-Section


Section 1. Short title and table of contents

    Designates the bill as the ``Promoting Real Opportunity, 
Success, and Prosperity Through Education Reform Act (PROSPER 
Act)'' and lists the sections of the bill. The legislation is 
organized into nine titles: (1) General Provisions; (2) 
Expanding Access to In-Demand Apprenticeships; (3) 
Institutional Aid; (4) Student Assistance; (5) Developing 
Institutions; (6) International Education Programs; (7) 
Graduate and Postsecondary Improvement Programs; (8) Other 
Repeals; and (9) Amendments to Other Laws.

Section 2. References

    Clarifies the following amendments and repeals are, unless 
otherwise stated, being made to the Higher Education Act of 
1965 (HEA).

Section 3. General effective date

    Sets the effective date at the date of enactment of the 
PROSPER Act.

                      TITLE I--GENERAL PROVISIONS

                          Part A--Definitions


Section 101. Definition of institution of higher education

    Collapses the two definitions of ``institution of higher 
education'' into one, but maintains the eligibility exclusion 
of proprietary institutions for grant programs in Titles III 
and V.

Section 102. Institutions outside the United States

    Outlines qualifications for institutions outside of the 
United States to be eligible to participate in Title IV aid.
    Authorizes American students with Title IV aid to attend 
foreign medical schools by counting all students in the passage 
rate on the United States Medical Licensing Examination 
(USMLE), changes the USMLE passage rate to an aggregate rate of 
75 percent, and creates a grace period of two years for foreign 
institutions to have a passage rate of no lower than 70 percent 
before losing Title IV eligibility.
    Authorizes institutions to partner with non-Title IV 
institutions to offer courses to students in certain programs. 
Allows institutions to submit audited financial statements 
prepared in accordance with their home country regardless of 
the amount of Title IV funds received as long as the statements 
are comparable to the International Financial Reporting 
Standards.
    Removes the requirement that the Secretary of Education 
(the Secretary) pre-approve a clinical education program as 
long as it is operated by an accredited hospital or clinic in 
the United States or at a Liaison Committee on Medical 
Education accredited institution in Canada.

Section 103. Additional definitions

    Amends the definitions of the terms ``early childhood 
education'' and ``nonprofit.'' Repeals the definition of the 
term ``distance education.'' Adds definitions for the terms 
``correspondence education,'' ``competency-based education,'' 
``competency-based education program,'' ``competency,'' ``pay 
for success initiative,'' and ``evidence-based.''

Section 104. Regulatory relief

    Repeals the following regulations: definitions of ``credit 
hour,'' ``gainful employment,'' and ``borrower defense.'' 
Prohibits the Secretary from promulgating or enforcing any 
regulation or rule with respect to the definition or 
application of the terms ``gainful employment'' or ``credit 
hour'' for any purpose under the Higher Education Act of 1965. 
Prohibits the Secretary from carrying out, developing, 
refining, promulgating, publishing, implementing, 
administering, or enforcing a postsecondary institution rating 
system or any other performance system to rate institutions of 
higher education.

                 Part B--Additional General Provisions


Section 111. Free speech protections

    Inserts a sense of Congress that individuals should be free 
to profess their opinions in matters of religion and that no 
public institution of higher education receiving funding under 
the HEA should limit religious expression. Strengthens a sense 
of Congress that free speech zones and restrictive speech codes 
are inherently at odds with the First Amendment and that public 
institutions of higher education receiving funds under the HEA 
should not restrict the speech of their students. Requires 
institutions of higher education to annually disclose to 
current and prospective students any policies held by the 
institution related to protected speech on campus, including 
policies limiting where and when such speech may occur. 
Requires the Secretary to designate an employee at the Office 
of Postsecondary Education to receive complaints from students 
who believe an institution is not in compliance with a publicly 
disclosed policy on speech or is enforcing a policy that has 
not been previously disclosed.

Section 112. Sense of Congress on inclusion and respect

    Expresses a sense of Congress that harassment and violence 
targeted at students because of their race, color, religion, 
sex, or national origin should be condemned and that Congress 
is committed to supporting institutions in creating safe and 
respectful learning environments that respect people from all 
backgrounds.

Section 113. National Advisory Committee on Institutional Quality and 
        Integrity

    Extends the authorization of the National Advisory 
Committee on Institutional Quality and Integrity (NACIQI), 
which was established to advise the Secretary on the federal 
recognition of accrediting agencies, until September 30, 2024. 
Allows the Secretary to remove any NACIQI member who was 
appointed by a previous secretary and fill the vacancy, and 
narrows the scope and functions of the committee to advising 
the Secretary solely on matters related to accreditation.

Section 114. Repeal of certain reporting requirements

    Repeals a provision requiring institutions to submit a 
detailed report of all foreign gifts or contracts over 
$250,000, as well as any restricted gifts from foreign sources.
    Repeals a sense of Congress that gives recommendations to 
institutions on how to address binge drinking on college 
campuses.

Section 115. Programs on drug and alcohol abuse prevention

    Replaces an ineffective requirement that an institution 
adopt a drug and alcohol abuse prevention program meeting a 
number of detailed requirements with a clear and 
straightforward requirement that institutions adopt and 
implement an evidenced-based program designed to discourage the 
use of illicit drugs and abuse of alcohol by students and 
employees. Requires the Secretary, in consultation with the 
Secretary of Health and Human Services and outside experts, to 
share best practices for addressing and preventing substance 
abuse as well as supporting students in substance abuse 
recovery and provide technical assistance to institutions to 
implement best practices.

Section 116. Campus access for religious groups

    Prohibits any public institution of higher education that 
denies a religious student organization any right, benefit, or 
privilege generally afforded to other student organizations on 
the basis of the organization's religious beliefs, practices, 
speech, leadership or membership standards, or standards of 
conduct from receiving funding under the HEA.

Section 117. Secretarial prohibitions

    Explicitly prohibits the Secretary from exceeding his/her 
authority, defining any terms inconsistent with the HEA, or 
adding any requirements on institutions and states that are not 
explicitly authorized in the law.

Section 118. Ensuring equal treatment by governmental entities

    Prohibits the federal government and other governmental 
entities receiving federal funding from taking an adverse 
action against an institution of higher education because of 
the religious mission of the institution.

Section 119. Single-sex social student organizations

    Prohibits institutions from retaliating against single-sex 
student organizations or members of such organizations on the 
basis of the organization's single-sex status.

Section 120. Department staff

    Directs the Secretary to identify the number of Department 
of Education (Department) full-time equivalent employees who 
worked on or administered education programs and projects 
eliminated or consolidated under the PROSPER Act and reduce the 
Department staff by that number of employees.

Section 120A. Department of Homeland Security recruiting on campus

    Prohibits from receiving funds under the HEA those 
institutions of higher education with a policy of prohibiting 
or preventing the Department of Homeland Security from 
recruiting on campus.

                    Part C--Cost of Higher Education


Section 121. College dashboard website

    Requires the Secretary to create a consumer-tested College 
Dashboard website that displays key information about colleges 
and universities, including aggregated information on 
enrollment, completion rate, cost, and financial aid listed in 
simple and understandable terms for each institution of higher 
education that participates in a student aid program under 
Title IV. Requires the Secretary to include aggregated 
information on the average debt of borrowers at graduation and 
the average salary of students who received federal financial 
aid at both five and 10 years after graduation for each program 
at a listed institution of higher education. Requires the 
Commissioner of Education Statistics to ensure completion rates 
are reflective of all students, including contemporary students 
and Pell Grant recipients, and the actual length of the 
program. Instructs the Secretary to provide a link to the 
College Dashboard page of each institution listed on a 
student's Free Application for Federal Student Aid (FAFSA) to 
ensure students know this information is available. Directs the 
Secretary to coordinate with other federal agencies to ensure 
published higher education data is consistent with the 
information available on the College Dashboard.

Section 122. Net price calculators

    Requires net price calculators be easily identifiable and 
prominently posted on institutions' websites where other cost 
and student aid information is available. Calculators must 
include information on cost of attendance, available grant aid, 
and veterans' educational benefits.
    Prohibits any personally identifiable information provided 
by users to institutional net price calculators from being sold 
or made available to third parties.

Section 123. Text book information

    Makes a conforming change related to the definition of an 
institution of higher education.

Section 124. Review of current data collection and feasibility study of 
        improved data collection

    Requires the Secretary to review all current institutional 
data reporting requirements. Requires the Secretary to explore 
the feasibility of working with the National Student 
Clearinghouse to establish a third-party method of producing 
institution and program-level analysis of the necessary data 
reported.

  Part D--Administrative Provisions for Delivery of Student Financial 
                               Assistance


Section 131. Performance-Based Organization for the delivery of federal 
        student financial assistance

    Expands the purpose of the Performance-Based Organization 
(PBO) to include improving the Office of Federal Student Aid's 
(FSA) consultation with student aid stakeholders and increasing 
the transparency of FSA operations. Requires the Secretary and 
chief operating officer (COO) jointly to submit an annual 
report to the authorizing committees that includes a summary of 
this consultation and a description of any actions taken as a 
result of it. Creates an advisory board at FSA to approve FSA's 
performance plan, make recommendations on providing bonuses for 
senior executives, and help FSA adopt best practices for loan 
management employed in the private sector. Requires FSA to set 
specific, measurable, and transparent goals for increasing 
performance.

Section 132. Administrative data transparency

    Requires the COO of FSA to be more transparent about the 
performance of the federal student loan system, including to 
publicly and electronically report to the public information 
related to the repayment of loans throughout the lifecycle, 
public service loan forgiveness, and borrower default. Requires 
the Secretary and COO to provide researchers a de-identified 
data file of student loans. Authorizes the Secretary to enter 
into cooperative intergovernmental data sharing agreements to 
ensure accuracy of the data provided. Requires the Secretary 
and COO to ensure any information published or otherwise made 
available under this section does not reveal personally 
identifiable information.

Section 133. Report by GAO on transfer of functions of FSA to the 
        Department of Treasury

    Requires the Comptroller General to study the feasibility 
and practicality of moving FSA from the Department to the 
Department of the Treasury.

Part E--Lender and Institution Requirements Relating to Education Loans


Section 141. Modification of preferred lender arrangements

    Expands the term ``covered institution'' to include 
institutions outside the United States. Allows schools to more 
easily provide information to borrowers on private and state-
based loan options. Removes the most burdensome of the 
preferred lender list requirements, including a report to the 
Secretary detailing why an institution selected a lender for 
the preferred lender list, while maintaining certain 
parameters. Prohibits the Secretary from imposing any preferred 
lender list requirements beyond those explicitly authorized.

                   Part F--Addressing Sexual Assault


Section 151. Addressing sexual assault

    Requires institutions to survey students at least once 
every three years to measure campus attitudes towards sexual 
assault and the general climate of the campus regarding the 
institution's treatment of sexual assault on campus. Requires 
institutions to use the results of the survey to improve the 
institution's ability to prevent and respond to incidents of 
sexual assault. Requires institutions maintain confidentiality. 
Requires the Secretary to develop sample surveys that an 
institution may elect to use but prohibits the Secretary from 
regulating on the contents of the required survey.
    Requires institutions to retain the services of qualified 
counselors to counsel and support students who are victims of 
sexual assault and notify students of the availability of the 
counselor. Requires the counselor to maintain confidentiality 
to the greatest extent provided by law and notify the victim of 
any circumstance under which the counselor is required to 
report information to others. Requires the counselor be 
considered a recognized professional for purposes of the 
Federal Educational Rights and Privacy Act and not a 
``responsible employee'' under Title IX of the Education 
Amendments of 1972 nor a campus security authority under the 
Clery Act.
    Requires institutions to develop a one-page form of 
information for students who may be victims of sexual assault 
and make the form widely available to students. Requires the 
Secretary to create a model form for institutions' use.
    Requires the Secretary, in consultation with the Attorney 
General, to develop best practices for memoranda of 
understanding (MOU) between institutions and local law 
enforcement and disseminate the best practices on the 
Department's website.

        TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS

Section 201. Repeal

    Repeals all programs under Title II and allows funds 
appropriated for Part A of Title II--in effect on the day 
before enactment of the PROSPER Act--to be used to carry out 
that part of the HEA through the end of fiscal year 2018.

Section 202. Grants for access to high-demand careers

    Moves an existing competitive grant program for community 
colleges (referred to as the Strengthening Institutions Program 
in Title III) to Title II and changes the program's focus to 
student access to, and participation in, industry-led earn-and-
learn programs that lead to high-wage, high-skill, and high-
demand careers.
    Makes grants available to eligible partnerships consisting 
of at least one business and one institution of higher 
education to develop or expand earn-and-learn programs of not 
more than two years in length that lead to a recognized 
postsecondary credential and requires a 50 percent match from 
non-federal funds for those grants.
    Authorizes the purchase of appropriate equipment, 
technology, or instructional materials aligned with industry 
needs; the purchase of student books, supplies, and equipment 
required for enrollment; the reimbursement of up to 50 percent 
of wages of students participating in an earn-and-learn 
program; the development of industry specific programming; 
support of industry-based professionals in the classroom; and 
payment of fees for certification exams or other assessments 
associated with a recognized postsecondary credential.
    Requires applications for grants under this title be 
reviewed by a panel of readers consisting of a majority of 
business representation, with the remainder of the panel 
equally divided between representatives from institutions with 
programs of two years or less and state workforce boards.
    Requires grants to be awarded based on the number of 
participants expected to be served by the grant, the 
anticipated income of program participants, and alignment of 
the program to be funded with state identified in-demand 
industry sectors.
    Requires the Secretary, acting through the Director of the 
Institute for Education Sciences, to provide for the 
independent evaluation of the program. Requires the evaluation 
include an assessment of the effectiveness of the program in 
expanding earn-and-learn program opportunities, the completion 
rates of participants, the median earnings of participants one 
and three years after exiting the program funded by the grant, 
the credential attainment rate of program participants, and the 
sustainability of the program funded by the grant after the end 
of the grant period.
    Authorizes appropriations for each of Fiscal Years 2019 
through 2024.

                      TITLE III--INSTITUTIONAL AID

Section 301. Strengthening Minority-Serving Institutions

    Repeals the Strengthening Institutions program. Authorizes, 
in the Minority-Serving Institution program, pay for success 
initiatives, dual enrollment, the development of career-
specific programs, and community outreach programs.
    Allows grants to be used to establish or increase an 
endowment, with the income from such endowment being used to 
provide scholarships to students.
    Requires a completion rate of at least 25 percent in order 
to be eligible for funding, with the completion rate calculated 
by (1) counting a student as completed if that student 
graduates within 150 percent of the normal time for completion 
and (2) if a student transferred from a program that provided 
substantial preparation within 150 percent normal time for 
completion.
    Requires institutions to return any grant funds not 
expended after 10 years back to the Treasury. Authorizes Alaska 
Native and Native Hawaiian-Serving Institutions and Native 
American, Nontribal Institutions to establish an endowment and 
award scholarships from that endowment.

Section 302. Strengthening Historically Black Colleges and Universities

    Aligns allowable uses of funds for HBCUs with the Minority 
Serving Institution programs and allows HBCUs to use grant 
funds for initiatives to improve the educational outcomes of 
African American males.
    Adds the University of the Virgin Islands School of 
Medicine to the list of eligible graduate institutions that 
have access to funding allotted for HBCU postgraduate 
institutions.

Section 303. Historically Black College and University capital 
        financing

    Creates a bond insurance fund for new accounts and 
authorizes existing loans to continue under the existing escrow 
authority, requires the Advisory Board to report annually to 
Congress on loans in the program, and requires financial 
counseling to eligible HBCUs before their participation in the 
program.

Section 304. Minority Science and Engineering Improvement Program

    Makes minor technical changes.

Section 305. Strengthening Historically Black Colleges and Universities 
        and Other Minority-Serving Institutions

    Makes minor technical corrections.

Section 306. General provisions

    Encourages institutional self-sustainability by requiring 
eligible institutions to develop a comprehensive plan that 
strengthens the institution's academic quality and 
institutional management to improve institutional self-
sustainability. Allows the Secretary to waive certain 
requirements for institutions participating in the program in 
the event of a major disaster. Authorizes appropriations for 
all currently funded programs for each of Fiscal Years 2019 
through 2024 and repeals unfunded programs.

                      TITLE IV--STUDENT ASSISTANCE

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


Section 401. Federal Pell Grants

    Reauthorizes the Pell Grant program until Fiscal Year 2024.
    Creates a Pell Grant bonus that provides an additional $300 
bonus to students who are taking 15 credit hours, or the 
equivalent, per semester over the award year, with an effective 
date of award year 2018-2019.
    Directs the Secretary to provide annually an individualized 
Pell Grant status report to each grant recipient.
    Requires institutions to disburse grants to students on a 
weekly or monthly basis. Sunsets the provision establishing 
institutional ineligibility based on default rates to 
correspond with the end of the transition period to the loan 
repayment rate.
    Prohibits students who have received a grant for three 
award years but did not earn any academic credit from receiving 
additional Pell Grants. Provides the Secretary additional 
discretion to stop payments to students with unusual enrollment 
histories.
    Directs the Secretary to prepare and submit a report to 
authorizing committees on Federal Pell Grant spending for the 
preceding fiscal year.
    Directs the Secretary to report annually on the Pell Grant 
bonus and the Comptroller General to complete a study on the 
impact of the Pell Grant bonus.

Section 402. Federal TRIO programs

    Changes ``prior experience'' to ``accountability for 
outcomes'' to focus on high quality service delivery.
    Prohibits the Secretary from awarding evaluation points to 
previous grantees if two or more objectives established in the 
grant application were not met.
    Requires the Secretary to reserve not less than 10 percent 
of funds to award grants or contracts to new grantees and 
reduces the grant notification period from eight months to 90 
days.
    Adds a 20 percent matching requirement for all grantees and 
authorizes the Secretary to reduce or waive this matching 
requirement due to economic hardship or in response to a 
petition demonstrating an exhaustion of all revenues.
    Mandates the Secretary host at least one virtual, 
interactive education session using telecommunications 
technology. Removes the language ``rigorous secondary school 
program of study that will make such students eligible for 
programs such as the Academic Competitive Grants Program'' and 
replaces it with ``secondary school program of study that will 
prepare such students to enter postsecondary education without 
the need for remedial education.''
    Requires Talent Search and Upward Bound grantees to provide 
remedial education services to participants where necessary. 
Adds additional criteria grantees must meet for the Talent 
Search, Upward Bound, and Veterans Upward Bound.
    Requires grantees to maintain, to the extent practicable, a 
record of any services participants receive during the project 
year from other TRIO programs or other programs serving similar 
populations. Requires the Secretary to make program evaluation 
grants in the TRIO programs and submit a final report not later 
than three years after the enactment of the PROSPER Act.
    Sets aside not less than 10 percent of funds for a grant to 
be known as the Innovative Measures Promoting Postsecondary 
Access and Completion grant (IMPACT) to allow any institution 
to create, develop, implement, or replicate evidence-based 
initiatives, including pay for success initiatives. Authorizes 
grants to be awarded in three phases and requires grantees to 
conduct an independent evaluation of the effectiveness of the 
project.
    Authorizes appropriations for the programs for each of 
Fiscal Years 2019 through 2024

Section 403. Gaining Early Awareness and Readiness for Undergraduate 
        Programs

    Refines the mandatory and allowable activities language to 
better align to the research on college and career readiness.
    Requires the Secretary to host new grant competitions from 
funds appropriated for the program, and prohibits states from 
receiving multiple grant awards.
    Allows grantees to create their own scholarship program 
based on criteria such as financial need and satisfactory 
academic progress and additional criteria aligned with state 
and local goals to increase postsecondary readiness, access, 
and completion.
    Clarifies the requirements for obtaining a waiver if a 
partnership is experiencing a significant economic hardship.
    Requires the Secretary to add additional metrics to the 
evaluation of the grants to include the number of students 
completing the FASFA, the graduation rate of participating 
students from high school, and the enrollment of students into 
postsecondary education.
    Authorizes appropriations for the program for each of 
Fiscal Years 2019 through 2024.

Section 404. Special programs for students whose families are engaged 
        in migrant and seasonal farmwork

    Authorizes appropriations for the programs for each of 
Fiscal Years 2019 through 2024.

Section 405. Child care access means parents in school

    Requires institutions to leverage non-federal resources and 
to coordinate with other community-based programs to improve 
quality and limit costs. Strengthens language to require that 
low-income students are given priority for services. Allows 
continuation awards only after documentation of continued need. 
Requires child care programs to meet applicable licensing 
standards prior to serving children.
    Authorizes appropriations for the program for each of 
Fiscal Years 2019 through 2024.

Section 406. Repeals

    Repeals the Academic Competitiveness Grant program, the 
Federal Supplemental Educational Opportunity Grants program 
(FSEOG), the Leveraging Educational Assistance Partnership 
program, and the Robert C. Byrd Honors Scholarship program. 
Sets the FSEOG repeal to take effect on June 30, 2018, but 
allows institutions to use already appropriated funds through 
the end of the next fiscal year.

Section 407. Sunset of TEACH grants

    Sunsets the Teacher Education Assistance for College and 
Higher Education (TEACH) Grant program, effective June 30, 
2018. Allows current TEACH Grant recipients to continue to 
receive grants through the conclusion of their program. Moves 
the definition of a borrower eligible for loan cancellation for 
serving as a teacher from the Perkins Loan section to this 
section.

             Part B--Federal Family Education Loan Program


Section 421. Federal direct consolidation loans

    Makes technical changes to account for the expiration of 
the Perkins Loan program.

Section 422. Loan rehabilitation

    Changes the number of times a borrower may obtain the 
benefits available with respect to rehabilitating a loan from 
one time per loan to two times per loan.

Section 423. Loan forgiveness for teachers

    Makes technical changes to account for the expiration of 
the Perkins Loan program.

Section 424. Loan forgiveness for service in areas of national need

    Makes technical changes to account for the expiration of 
the Perkins Loan program

Section 425. Loan repayment for civil legal assistance attorneys

    Makes technical changes to account for the expiration of 
the Perkins Loan program.

Section 426. Sunset of cohort default rate and other conforming changes

    Sunsets the current cohort default rate (CDR) at the 
conclusion of the transition period to the new program loan 
repayment rate. During the transition period, ONE loans that go 
into repayment are included in the CDR.

Section 427. Additional disclosures

    Amends the student loan information provided to borrowers 
to include the annual percentage rate of the loan as calculated 
using the standard 10-year repayment plan.

Section 428. Closed school and other discharges

    Clarifies the loan discharge procedures for borrowers. 
Codifies parts of the current regulations and requires all loan 
borrowers seeking a discharge to submit an application.

                  Part C--Federal Work-Study Programs


Section 441. Purpose; authorization of appropriations

    Allows for the full-time employment of individuals through 
the work-study program. Removes graduate and professional 
students from program eligibility.
    Defines the term ``work-based learning'' in Part C to mean 
paid interactions with industry or community professionals in 
real workplace settings that foster in-depth, first-hand 
engagement with the tasks required of a given career field that 
are aligned to a student's field of study.
    Reallocates FSEOG program funds.
    Authorizes appropriations for the work-study program for 
each of fiscal years 2019 through 2024.

Section 442. Allocation formula

    Reserves the lesser of 20 percent of the appropriated 
amount or $150 million for schools with Pell Grant recipient 
completion rates in the top 10 percent as compared to peer 
institutions, or schools with large increases in such 
completion rates. Permits the Secretary to reserve out of the 
work-study appropriation an amount necessary to fund work 
colleges.
    Reforms the allocation formula by distributing the funding 
via a revised fair share formula based on Pell Grant recipients 
and undergraduate student need. The base guarantee will phase 
out over five fiscal years as the formula moves entirely to the 
fair share model. An institution's fair share is determined 
using a two-part calculation. Institutional fair share is the 
sum of Pell Grant funds distributed at each college compared to 
other similar work-study institutions plus the total amount of 
undergraduate student need at the college proportional to other 
similar work-study institutions.

Section 443. Grants for federal work-study programs

    Increases the dollar amount by which a student can continue 
employment in a work-study program in excess of such student's 
need. Reduces the federal share of funds to 50 percent for all 
types of student employment.
    Requires work-study programs prioritize awarding of funds 
to students with exceptional need or who are employed in work-
based learning opportunities.
    Eliminates the arbitrary cap preventing more than 25 
percent of an institution's work-study dollars to flow to 
students working at private-sector companies.

Section 444. Flexible use of funds

    Allows institutions to permit students who completed the 
previous award period to continue to use unearned portions of 
their work-study award from that previous year if any reduction 
in the student's need upon which the award was based is 
accounted for in the remaining portion and the student is 
currently employed in a work-based learning position.

Section 445. Job location and development programs

    Increases the percentage of funds an institution is 
permitted to use from its allotment under section 442 to 
establish or expand a program that locates and develops jobs, 
including apprenticeships, for currently enrolled students.
    Strikes a requirement that institutions provide 
satisfactory assurance funds available under this section will 
not be used to locate or develop jobs at an eligible 
institution. Requires institutions to prioritize placing 
students with the lowest expected family contribution and work-
study recipients in jobs located and developed under the 
section and provide a satisfactory assurance that the 
institution will locate and develop work-based learning 
opportunities. Requires institutions submit to the Secretary a 
report including information on the number of students employed 
in work-based learning opportunities through such programs, the 
number of students employed in a work-study program who 
demonstrate exceptional need, and the number of students who 
are employed in work-based learning opportunities through such 
a program who demonstrate exceptional need.

Section 446. Community service

    Repeals authority to provide additional funds to conduct 
community service work-study programs.

Section 447. Work colleges

    Reauthorizes the Work Colleges program. Codifies the 
operational funding formula to ensure funding for Work Colleges 
is allocated based on the number of participating students 
proportional to other Work Colleges.

              Part D--Federal Direct Student Loan Program


Section 451. Termination of Federal Direct Loan Program under Part D 
        and other conforming amendments

    Terminates the Department's authority to make new William 
D. Ford Direct Loans under Part D after September 30, 2024.
    Requires all new borrowers as of July 1, 2019 to borrow 
under the ONE Loan program under Part E.
    Authorizes borrowers with an outstanding undergraduate loan 
balance as of July 1, 2019, to continue to borrow undergraduate 
loans under Part D until September 30, 2024. Requires the use 
of ONE Loans for such borrowers seeking a federal loan for 
graduate school.
    Authorizes parent borrowers of a current dependent student 
and borrowers with an outstanding graduate loan balance as of 
July 1, 2019, to continue to borrow graduate loans under Part D 
until September 30, 2024.
    Requires Part D grandfathered borrowers that take out a ONE 
Loan to forfeit eligibility for Part D Loans.
    Makes technical changes to account for the expiration of 
the Perkins Loan program.

Section 452. Borrower defenses

    Repeals the current borrower defense regulation. Adds 
additional language to require the borrower submit an 
application in all instances and prohibit student loan 
discharges without an application. Requires a mandatory 
administrative forbearance when an application is submitted, 
and requires the Secretary to inform the borrower of the 
actions to be taken during the processing of an application. 
Allows a one-time borrower challenge of the Secretary's 
decision. Encourages the Secretary to process all applications 
in a timely manner, and requires submission of a report to 
Congress explaining the internal rules and procedures regarding 
the processing of applications. Applies requirements to Direct 
Loans made under Part D and ONE loans made under Part E, 
effective July 1, 2018.

Section 453. Plain language disclosure form

    Directs the Secretary to develop a consumer-friendly 
disclosure form for borrowers of federal student loans and 
report to Congress the methods and procedures followed when 
developing the plain language disclosure form.

Section 454. Administrative expenses

    Authorizes administrative expenses through Fiscal Year 
2024, including account maintenance fees for guarantee 
agencies.

Section 455. Loan cancellation for teachers

    Makes technical changes to account for the expiration of 
the Perkins Loan program.

                       Part E--Federal ONE Loans


Section 461. Wind-down of federal Perkins Loan program

    Repeals the Perkins Loan program. Requires institutions to 
submit a written request to the Secretary for a final program 
audit no later than 60 days after the institution terminates 
its participation in the program.
    Clarifies institutions have terminated their participation 
under the program if they stop servicing and collecting Perkins 
Loans or if they have completed the servicing and collection of 
Perkins Loans and have completed the asset distribution 
requirement. Clarifies that any institution that has made 
short-term loans to itself in order to disburse additional 
Perkins Loans, and subsequently repaid itself the loan, shall 
retain any interest earned on those Perkins Loans. Clarifies 
the federal share of the Perkins Loan revolving fund will 
return to the Treasury.

Section 462. Federal ONE Loan program

    Establishes the Federal ONE Loan program, an unsubsidized 
loan program effective for all new borrowers as of July 1, 
2019.
    Retains current requirements for existing and previous 
Federal Family Education Loan (FFEL) and Direct Loan borrowers.
    Requires ONE Loans disbursal to students on a weekly or 
monthly basis, with the exception of upfront costs.
    Allows third-party servicers to send an ``unvalidated'' 
access device to a borrower and requires the borrower's consent 
to use the device before the third-party servicer is allowed to 
validate the device.
    Establishes annual and aggregate borrowing limits. Provides 
increased limits through September 30, 2024, for current 
graduate and parent PLUS loan borrowers who make the switch to 
Part E borrowing and have already neared or exceeded the new 
limits in order to complete their or their dependent's course 
of study. Allows financial aid administrators to lower limits 
for certain categories of borrowers, including those attending 
less than full-time. Gives financial aid administrators 
discretion to raise limits back up to the statutory caps for 
certain borrowers demonstrating special circumstances or 
exceptional need. Maintains the allowance to raise borrowing 
limits for certain graduate health programs.
    Maintains current law, using market-driven interest rates 
for undergraduate and parent loans. Establishes that the 
graduate interest rate is set at the graduate Stafford loan 
market-driven interest rate. Eliminates the origination fee on 
all Federal ONE loans. Maintains no accrual of interest for 
Active Duty Service Members benefit in current law.
    Pares down the number of repayment options to one standard 
10-year repayment plan and one income-based repayment (IBR) 
plan. Requires borrowers in IBR to pay 15 percent of their 
discretionary income, without an income cap or financial 
hardship eligibility standard. Prohibits the Secretary from 
creating a new repayment plan or modifying an existing 
repayment plan.
    Establishes Federal ONE Consolidation Loans that operate 
similar to Direct Consolidation Loans. Sets the interest rate 
for the consolidated loan to the nearest one-eighth of 1 
percent of the weighted average interest rate of the loans 
being consolidated. Allows borrowers to pay according to the 
ONE Consolidation Loan schedule. Authorizes a temporary loan 
consolidation program through July 1, 2024.
    Consolidates existing forbearances and labels all such 
options as deferments. Deferments are defined as temporary 
cessation of payment. Authorizes interest to accrue and 
capitalize under all deferments except for administrative 
deferments. Authorizes eight deferment options for ONE Loan 
borrowers: (1) in-school; (2) grace period; (3) periods when 
borrower is pursuing graduate fellowship or rehabilitation 
education program; (4) active duty; (5) National Guard duty; 
(6) medical or dental internship or residency program; (7) 120-
day deferment for defaulted borrowers who sign a new agreement 
to repay their outstanding balance; and (8) administrative 
deferments. Gives parent borrowers and any ONE Parent Loan 
endorsers additional deferment options, including when (1) 
receiving public assistance; (2) working full-time but are near 
or under the poverty line; (3) experiencing economic hardship; 
(4) accruing high medical expenses; and (5) seeking but unable 
to find full-time employment. Prohibits the Secretary from 
authorizing additional deferment options or periods of 
deferment besides those authorized in statute.
    Requires a plain language disclosure form.
    Applies a number of current law Part B provisions to ONE 
Loans, including with respect to (1) usury laws, (2) the sale 
or assignment of a loan as part of a default reduction program, 
(3) reports to consumer reporting agencies and institutions of 
higher education, (4) legal powers and responsibilities of the 
Secretary, (5) uniform administrative and claims procedures, 
(6) common forms, (7) loan cancellation for deceased or 
disabled borrowers, and (8) the treatment of loans in 
bankruptcy proceedings. Permits loans to go through 
rehabilitation twice.

                         Part F--Need Analysis


Section 471. Cost of attendance

    Strikes the prohibition on institutions from setting a 
lower cost of attendance for students receiving all or part of 
their instruction through telecommunications technology.

Section 472. Simplified needs test

    Updates the maximum income threshold required to qualify 
for the simplified version of the FAFSA to be in line with the 
Internal Revenue Service's income requirements to file the 
1040EZ or 1040A tax form.

Section 473. Discretion of student financial aid administrators

    Provides financial aid administrators the discretionary 
authority to reduce a student's eligibility to receive 
financial aid if the student's instructional delivery model 
results in a substantially reduced cost of attendance to the 
student.

Section 474. Definitions of total income and assets

    Requires the Secretary to use data from the second 
preceding tax year when determining financial aid eligibility.
    Excludes 529 college savings plans from counting as assets 
when calculating student need.

       Part G--General Provisions Relating to Student Assistance


Section 481. Definitions of academic year and eligible program

    Creates a new academic year definition for the purposes of 
competency-based education programs.
    Allows for competency-based education programs that use a 
subscription model to be treated as term-based for the purpose 
of establishing payment periods.
    Decreases the minimum length of an eligible program under 
Title IV to at least 300 clock hours of instruction, eight 
semester hours, or 12 quarter hours, offered during a minimum 
of 10 weeks.
    Expands the definition of an ``eligible program'' under 
Title IV to include competency-based education programs that 
have been evaluated and approved by a recognized accrediting 
agency.
    Allows new providers of higher education, called an 
``ineligible institution or organization,'' to partner with 
traditional colleges and universities to provide up to 100 
percent of a student's educational program. Requires accreditor 
approval for partnerships where the ineligible institution or 
organization provides more than 25 percent of the educational 
program.

Section 482. Programmatic loan repayment rates

    Creates a program-level loan repayment rate that replaces 
the institutional-level CDR.
    Establishes a programmatic loan repayment rate.
    Provides borrowers are in positive repayment status if (1) 
the borrower's loans are in repayment and less than 90 days 
delinquent; (2) the borrower's loans are paid in full (but not 
through consolidation); or (3) the borrower's loans are in an 
in-school or military-related deferment or forbearance.
    Requires those programs with three most recent official 
loan repayment rates lower than 45 percent to not be considered 
an eligible program for the purposes of Title IV for the 
remainder of the fiscal year in which the institution is 
notified of a program's sanction and for the following two 
fiscal years, except in the event of a successful appeal.
    Allows appeal of loan repayment rate determinations for any 
program in which the institution can prove the Department erred 
in calculating the rate or the participation rate of federal 
student loan borrowers in the program is sufficiently low.
    Requires the Secretary to report official loan repayment 
rates for each program at an institution for which a loan 
repayment rate is calculated each fiscal year. Requires the 
Secretary provide institutions with draft loan repayment rates 
for every program at least six months prior to the release of 
the official rates.
    Establishes a transition period from CDR calculations to 
the loan repayment rate calculations.

Section 483. Master calendar

    Updates the master calendar to ensure the Secretary 
provides adequate notification and timely delivery of student 
aid funds to institutions.

Section 484. FAFSA simplification

    Allows students to provide written consent to share their 
financial aid information with student-designated scholarship 
granting organizations. Prohibits maintaining, selling, or 
using the information for any purpose other than to award a 
scholarship to the student.
    Requires the Secretary to make the FAFSA available on a 
mobile application no later than one year after the enactment 
of the PROSPER Act and requires the online and mobile 
applications to be consumer-tested. Requires the Secretary to 
allow applicants to more easily import their available income 
data through the Internal Revenue Service data retrieval tool. 
Requires the Secretary to continue to examine whether data 
provided by the Internal Revenue Service can be used to 
generate an expected family contribution without additional 
action on the part of the student and taxpayer. Requires the 
Secretary to report to the authorizing committees annually on 
the progress of FAFSA simplification efforts and the security 
of the data retrieval tool.

Section 485. Student eligibility

    Codifies the current regulation to require institutional 
satisfactory academic progress policies include a quantitative 
standard that requires students to be on pace to graduate 
within the maximum timeframe for completion in order to 
continue federal student aid eligibility.
    Restores federal student aid eligibility for students 
without a high school credential who have been determined by 
their institution as having the ability to benefit from the 
education or skills development provided by the institution 
upon satisfactory completion of six credit hours or the 
equivalent of postsecondary education. Removes the current 
eligible career pathways requirement to allow more students 
without high school credentials who have demonstrated they can 
handle the rigor of higher education to participate in federal 
financial aid programs.
    Clarifies students who have completed a secondary school 
education in a home school setting that is treated as a home 
school or private school under state law or provided by a 
school operating as a nonprofit corporation that offers a 
program of study determined acceptable for admission at an 
institution of higher education are eligible for federal 
student aid under Title IV.
    Removes the current eligibility link between the federal 
student aid system and Selective Service registration for 
students who are 26 years of age or older and no longer able to 
register for the Selective Service.

Section 486. Statute of limitations

    Makes technical changes.

Section 487. Institutional refunds

    Streamlines aid calculations to ensure students do not earn 
all of their aid until they actually complete the payment 
period for which they are enrolled.
    Shifts the burden of repaying unearned aid to the 
institution when a student withdraws from an institution, and 
allows institutions to require a student to pay up to 10 
percent of the institution's obligation.
    Requires institutions to return unearned aid, first to Pell 
Grants and then to loans, no later than 60 days from the 
withdrawal determination.
    Clarifies which institutions are required to take 
attendance and how withdrawal dates are determined by the 
institution.

Section 488. Information disseminated to prospective and enrolled 
        students

    Requires disclosures to students and prospective students 
be published on the institution's website. Streamlines 
disclosure requirements.
    Requires institutions to have a policy prohibiting 
copyright infringement and to publish such policies and related 
sanctions on the institution's website.
    Requires exit counseling include information on the 
borrower's outstanding loan balance, anticipated monthly 
payments under various repayment plans, the grace period 
preceding repayment, and organizations servicing the borrower's 
loans.
    Clarifies that institutions are required to make timely 
warnings to the campus community about crimes that pose a 
serious and continuing threat to safety and gives institutions 
the discretion to make such determinations.
    Provides institutions clear authority to respect requests 
from a law enforcement agency or a prosecutor to delay or 
suspend investigations or institutional disciplinary 
proceedings regarding campus sexual assault without being 
penalized.
    Requires crime reporting under the Clery Act be consistent 
with the definitions used by the Department of Justice's 
Uniform Crime Reporting (UCR) Program where possible. Provides 
a safe harbor for institutions that make a reasonable and good 
faith effort to report crimes according to a definition 
provided by the Secretary when there is no UCR Program 
definition available. Requires institutions to report crimes 
according to the UCR Program's Hierarchy Rule.
    Requires all institutional investigations or disciplinary 
processes invoked to address incidents of sexual violence to be 
prompt, impartial, and fair to both the accuser and the 
accused.
    Allows an institution to determine the standard of evidence 
it deems most appropriate for institutional disciplinary 
proceedings involving sexual assault, as long as it is not 
arbitrary or capricious and is applied consistently for all 
proceedings and requires the standard chosen by the institution 
be clearly communicated to students.
    Requires the Secretary to create modules to educate 
officials conducting investigations and disciplinary 
proceedings on issues related to sexual assault and how to 
conduct fair investigations and proceedings. Requires the 
modules be developed in consultation with campus experts, local 
law enforcement, victim advocates, due process experts, and 
other experts. Requires modules be available to colleges and 
universities and deems any institution that chooses to use them 
in compliance with its education obligations.
    Streamlines fire safety-related reporting requirements by 
requiring institutions to publish an annual fire safety report 
that includes fire safety practices and standards, statistics 
on fire related incidents or injuries, and preventative 
measures or technologies.
    Streamlines missing person procedures by requiring 
institutions to notify the student's designated emergency 
contact and law enforcement and, if the student is under 18, 
the students' parent if the student goes missing. Allows 
institutions to use existing general emergency contact 
information.
    Requires interactive, online or in-person, student loan 
counseling provided by the institution's financial aid office 
that is tailored to a borrower's individual situation. Requires 
annual counseling before an individual takes out a loan so the 
borrower has the most up-to-date information about their 
present and future loan balance and likely payment schedule. 
Requires the annual counseling to include recommendations for 
students to exhaust available grant, work-study, and 
scholarship assistance before taking out loans. Requires 
information to be shared regarding the treatment of federal and 
private loans in bankruptcy. Requires the counseling to include 
a notice that students and parents are not required to accept 
the full amount of the loan they are offered and to include 
information on any outstanding federal loan balance the 
borrower may have. Requires borrowers receive state-specific 
information on the average income and employment status of 
individuals based on various levels of educational attainment, 
as well as an introduction to the Financial Literacy and 
Education Commission's financial management resources.
    Requires Pell Grant recipients to receive annual counseling 
that includes the following: the terms and conditions of their 
grant; the approved educational expenses the grant can be 
applied to; the maximum length of time a student is eligible to 
receive Pell Grants; the level of assistance a student is 
eligible to receive; why a student may need to repay a Pell 
Grant; and how a student may seek additional assistance due to 
a change in his or her financial circumstances.
    Requires the Secretary to maintain a consumer-tested, 
online counseling tool that institutions can use to provide the 
required counseling to their students. Requires the Secretary 
keep a record of the individuals who have received counseling 
using the tool administered by the Department and notify 
applicable institutions when an individual has completed the 
counseling.
    Adds a sense of Congress that hazing is dangerous, should 
not be allowed on any campus, and institutions should have 
clear policies prohibiting hazing, take seriously any threats 
or acts of harm, and ensure law enforcement has access to 
investigate any crimes. Requires all policies and procedures 
related to hazing on campus be available and clearly posted for 
students, faculty, and administrators.

Section 489. Early awareness of financial aid eligibility

    Requires the Secretary, in consultation with states, 
institutions of higher education, secondary schools, and 
college access programs, to notify secondary school students no 
later than the students' sophomore year of the availability of 
federal financial aid, including estimates of the amounts of 
grant and loan aid an individual may be eligible to receive.
    Encourages states, institutions of higher education, and 
other stakeholders to share best practices on disseminating 
information about financial assistance and requires the 
Secretary to create an online platform to share such best 
practices.
    Directs the Secretary to maintain a consumer-tested early 
estimator tool--available online and through a mobile 
application--that will give students and parents an estimate of 
a student's potential federal aid eligibility. Prohibits the 
Secretary from storing any data provided by individuals 
accessing the tool.
    Instructs the Secretary to develop and annually update an 
electronic Pell Grant table containing information on the 
percentage of students at a college who received a Pell Grant. 
Requires the Pell Grant table to link to the early estimator 
tool. Prohibits the Secretary from requiring a state to 
participate in the activities or disseminate the materials 
described in this section.

Section 490. Distance Education Demonstration Programs

    Repeals the Distance Education Demonstration Programs.

Section 491. Contents of program participation agreements

    Makes several conforming changes.
    Permits compensation to a third-party entity that provides 
a set of services to the institution that includes student 
recruitment services. Allows compensation to employees of an 
institution or parent company when students successfully 
complete their educational programs.
    Streamlines requirements for the distribution of voter 
registration forms.
    Repeals the requirement that proprietary institutions 
receive at least 10 percent of their revenue from sources other 
than federal student aid programs.

Section 492. Regulatory relief and improvement

    Requires the Secretary to select institutions for voluntary 
participation in the Quality Assurance Program and to review 
and evaluate the program conducted by each participating 
institution at least once every two years.
    Requires the Secretary to notify the authorizing committees 
prior to announcing a new experimental site and inviting 
institutions to participate with a description of the proposed 
experiment, the rationale for the experiment, a list of 
institutional requirements expected to be waived, and the legal 
authority for such waivers. Requires the Secretary to address 
all congressional comments in writing before proceeding with 
the proposed experimental site. Requires the Secretary to 
report annually on all ongoing experimental sites and prohibits 
the Secretary from conducting any experimental sites in any 
year in which an annual report for the previous year is not 
submitted to the authorizing committees.

Section 493. Transfer of Allotments

    Makes conforming changes.

Section 494. Administrative Expenses

    Makes conforming changes.

Section 494A. Repeal of Advisory Committee

    Repeals the Advisory Committee on Student Financial 
Assistance.

Section 494B. Regional meetings and negotiated rulemaking

    Outlines specific procedures the Secretary must follow when 
issuing federal regulations under Title IV and provides 
stakeholders and the authorizing committees adequate time to 
review regulations.

Section 494C. Report to Congress

    Requires the Secretary to submit a report to the 
authorizing committees no later than 180 days after the 
enactment of the PROSPER Act detailing how the Department is 
detecting and combatting fraud in all income-driven repayment 
plans under Title IV.

Section 494D. Deferral of loan repayment following active duty

    Makes conforming changes.

Section 494E. Contracts; matching program

    Clarifies that originating, servicing, and collecting of 
federal student loans are not subject to state or local 
government requirements.
    Requires the Secretary to work with servicing entities and 
provide a common performance manual.
    Allows the Secretaries of Education and Veterans Affairs to 
carry out a computer matching program to identify those 
veterans eligible for death or permanent disability student 
loan discharges.
    Makes technical changes.

                       Part H--Program Integrity


Section 495. Repeal of and Prohibition on State Authorization 
        Regulations

    Repeals the state authorization regulation and prohibits 
the Secretary from further regulating in this area.
    Clarifies institutions must demonstrate authority to 
operate only in those states in which the institution maintains 
a physical location.
    Clarifies religious institutions shall be treated as 
legally authorized to operate if the institution is recognized 
as a religious institution by the state and is exempt from 
state requirements to be authorized.

Section 496. Recognition of Accrediting Agency or Association

    Allows any agency or association with a voluntary 
membership and having the principal purpose of accrediting 
institutions to apply for recognition by the Secretary. 
Requires all accrediting agencies wishing to be recognized by 
the Secretary to meet the same criteria, including being 
separate and independent from any related/associated/affiliated 
trade association or membership organization.
    Strikes provisions that single out institutions offering 
distance education, and requires accreditors to demonstrate the 
ability to review, evaluate, and assess the quality of any 
instruction delivery model or method the agency seeks to 
include within its scope of recognition. Requires accrediting 
agencies to ensure distance education institutions have 
processes in place to ensure the student who registers in a 
course or program is the same student who completes the program 
and receives the academic credit.
    Requires any accreditation agency that accredits 
competency-based education have policies in place that will 
effectively address the quality of competency-based education 
programs. Requires accreditors have standards that assess the 
institution's success in relation to the institution's mission 
with respect to student learning and educational outcomes. 
Requires accreditors have a system in place where they annually 
identify institutions or programs accredited by the agency that 
may be experiencing difficulties accomplishing their missions 
with respect to their established student learning and 
educational outcome goals. Requires accrediting agencies have 
at least one representative from the business community on the 
agency's board. Requires accreditors to review only substantive 
changes that significantly impact the educational mission or 
programs offered at an institution and prohibits the Secretary 
from further regulation in this area. Requires accreditors to 
post all actions taken by the agency and a summary of why any 
adverse actions were taken. Requires accreditors to post on 
their websites for public inspection a list of all institutions 
accredited by the agency, the year the accreditation was 
granted, the date of the most recent comprehensive evaluation, 
and the anticipated date of the next evaluation.
    Allows institutions not under sanction by their accreditor 
or a state agency to change accreditors without the approval of 
the Secretary, provided the institution notifies the Secretary 
of the change.
    Clarifies the religious mission of an institution may be 
reflected in the institution's beliefs, speech, standards of 
conduct, and policies, including any policies regarding 
admission, retention, employment, housing, or student conduct. 
Clarifies an accreditor's standard fails to respect an 
institution's religious mission when the institution determines 
that the standard induces, pressures, or coerces the 
institution to act contrary to, or to refrain from acting in 
support of, any aspect of its religious mission. Provides 
institutions the option to file a complaint with the Secretary 
if the institution believes an adverse action of an accrediting 
agency fails to respect the institution's religious mission.
    Provides accreditors with clear authority to undertake 
differentiated reviews that reflect the institution's history 
of meeting accreditation standards and record of performance on 
key metrics.
    Allows waivers of accreditor requirements if the accreditor 
can demonstrate that such waiver is necessary to enable an 
institution of higher education or program accredited by the 
agency or association to implement innovative practices while 
still ensuring academic integrity and quality.

Section 497. Eligibility and certification procedures

    Reforms the process by which the Secretary determines if an 
institution is financially responsible. Provides for 
alternative ways of determining an institution's financial 
responsibility beyond the federally calculated composite score 
by relying more extensively on existing industry and 
professional standards. Ensures composite scores are calculated 
in accordance with generally accepted auditing standards. 
Provides official review, appeal, and transparency processes 
for institutions that continue to use the federal composite 
score. Establishes a timeline for institutions to correct 
financial weaknesses. Limits the Secretary's authority to 
require letters of credit from institutions.
    Increases to 36 months the amount of time an institution 
can be provisionally certified when its accreditor loses 
federal recognition.
    Requires the Secretary provide a detailed written 
justification for a program review, when practicable. Requires 
the Secretary to conduct, respond to, and conclude program 
reviews within specified timeframes.

                    TITLE V--DEVELOPING INSTITUTIONS

Section 501. Hispanic-serving institutions

    Adds additional allowable uses of funds to include pay for 
success initiatives, dual enrollment, the development of 
career-specific programs, and community outreach programs.
    Allows institutions that use grant funds to establish or 
increase an endowment to use the income from such endowment to 
provide scholarships to students.
    Requires a student completion rate of at least 25 percent 
in order to be eligible for grant funding, calculated by 
counting a student as completed if that student (1) graduates 
within 150 percent of the normal time for completion or (2) 
transfers from a program that provided substantial preparation 
within 150 percent normal time for completion.
    Requires institutions to return to the Treasury any grant 
funds not expended after 10 years.

Section 502. Promoting postbaccalaureate opportunities for Hispanic 
        Americans

    Incorporates section 501 allowable uses of funds and adds 
an additional allowable use for institutions to create 
innovative learning models and create or improve facilities for 
Internet or other innovative technologies.
    Requires institutions to return to the Treasury any grant 
funds not expended after 10 years.
    Clarifies no institution eligible for funds under this 
title can receive funds under Part A or Part B of Title III.

Section 503. General provisions

    Makes technical and conforming changes and authorizes 
appropriations for all programs for each of Fiscal Years 2019 
through 2024.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

Section 601. International and foreign language studies

    Allows state and local education agencies along with 
postsecondary programs or departments in foreign language, area 
studies, or other international fields to participate in summer 
institutes.
    Requires institutions provide adequate assurances to the 
Secretary they will comply with the requirement to explain how 
the activities funded by the grant will reflect a diverse 
perspective and a wide range of views to generate debate on 
world regions and international affairs.
    Repeals the Undergraduate International Studies and Foreign 
Language Program.
    Repeals the American Overseas Research Centers program.

Section 602. Business and international education programs

    Requires institutions to provide adequate assurances to the 
Secretary that it will comply with the requirement to explain 
how the activities funded by the grant will reflect a diverse 
perspective and a wide range of views to generate debate on 
world regions and international affairs. This requirement would 
be included in the evaluation, review, and approval process for 
initial funding and continuation awards.

Section 603. Repeal of Assistance Program for Institute for 
        International Public Policy

    Repeals Part C of Title VI, the Assistance Program for the 
Institute for International Public Policy.

Section 604. General provisions

    Mandates the Secretary submit to Congress, and make 
publicly available, an annual report identifying the efforts 
grantees took to comply with the requirement to present a 
diverse perspective and a wide range of views when generating 
debate on world regions and international affairs. Requires the 
report include any technical assistance, regulatory guidance, 
or monitoring conducted by the Secretary.
    Requires disclosures of foreign gifts including the name of 
the person, institution, or agency giving the gift and the 
inclusion of the fair market value of services provided by 
staff, textbooks, and other in-kind gifts in the aggregate 
dollar amount. Requires the Secretary to make disclosure 
reports electronically available for public viewing.
    Requires the Secretary make continuation awards only after 
determining that the grantee is making satisfactory progress in 
carrying out the grant.
    Requires grantees not promote any biased views that are 
discriminatory toward any group, religion, or population of 
people.
    Authorizes the title for each of Fiscal Years 2019 through 
2024 and repeals all unfunded programs.

       TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

Section 701. Graduate education programs

    Repeals unfunded programs.
    Authorizes appropriations for the Graduate Assistance in 
Areas of National Need program for each of Fiscal Years 2019 
through 2024.
    Authorizes appropriations for the HBCU Master's degree 
programs for each of Fiscal Years 2019 through 2024.
    Makes a number of conforming changes.

Section 702. Repeal of Fund for the Improvement of Postsecondary 
        Education

    Repeals Part B of Title VII, the Fund for the Improvement 
of Postsecondary Education.

Section 703. Programs for students with disabilities

    Repeals unfunded programs and authorizes appropriations for 
currently funded programs for each of Fiscal Years 2019 through 
2024. Authorizes an independent commission to develop voluntary 
guidelines for accessible postsecondary electronic 
instructional materials and related technologies.

Section 704. Repeal of College Access Challenge Grant Program

    Repeals Part E of Title VII, the College Access Challenge 
Grant Program.

                       TITLE VIII--OTHER REPEALS

Section 801. Repeal of additional programs

    Repeals all Title VIII programs.
    Repeals Section 802 of the Higher Education Opportunity Act 
(National Center for Research in Advanced Information and 
Digital Technologies) and Section 803 of the Higher Education 
Opportunity Act (pilot program for course material rental).
    Repeals Section 821 of the Higher Education Amendments of 
1998 (Grants to States for Workplace and Community Transition 
Training for Incarcerated Youth Offenders) and Section 841 of 
the Higher Education Amendments of 1998 (Underground Railroad 
educational and cultural program).
    Repeals Section 1543 of the Higher Education Amendments of 
1992 (Olympic Scholarships).

                   TITLE IX--AMENDMENTS TO OTHER LAWS

               Part A--Education of the Deaf Act of 1986


Section 901. Education of the Deaf Act of 1986

    Makes the following changes to the Board of Directors for 
Gallaudet University: increases the total number of members 
from 21 to 23; equalizes the number of Senators and Members of 
the House of Representatives on the Board; increases the number 
of additional Board members from 18 to 19; and changes the 
appointment process for the Board members from the House and 
Senate to ensure bipartisan representation.
    Allows Gallaudet University to meet the relevant 
requirements of the Elementary and Secondary Education Act  for 
the Laurent Clerc National Deaf Education Center on its own or 
in cooperation with a state.
    Repeals the Cultural Experiences Grants program. Repeals 
the separate authorization for federal monitoring and 
reporting. Repeals the separate authorization for federal 
endowment payments and permits Gallaudet University and the 
National Technical Institute for the Deaf (NTID) to reserve 
appropriated funds for the institutions' endowments. Repeals 
the National Study on the Education of the Deaf.
    Authorizes appropriations for Gallaudet University and NTID 
for each of Fiscal Years 2019 through 2024.
    Makes technical amendments.

Part B--Tribally Controlled Colleges and Universities Assistance Act of 
                                  1978


Section 911. The Tribally Controlled Colleges and Universities 
        Assistance Act of 1978

    Reauthorizes the Tribally Controlled Colleges and 
Universities programs and makes technical changes to update 
terminology.
    Strikes the definition of ``satisfactory progress toward a 
degree or certificate'' to align with the removal of this 
requirement in the 2008 reauthorization.
    Updates the process for conducting a student count to 
accurately reflect students in short-term programs and include 
students who are dually-enrolled in high school and college.
    Repeals the endowment program for Tribal Colleges and 
Universities.
    Changes the name of Title II to the Dine College Act.
    Authorizes appropriations for the Tribally Controlled 
Colleges and Universities Assistance Act of 1978 for each of 
Fiscal Years 2019 through 2024.

                Part C--General Education Provisions Act


Section 921. Release of education records to facilitate the award of a 
        recognized postsecondary credential

    Amends section 444(b) of the General Education Provisions 
Act to allow for the release of education records of a student 
to an institution of postsecondary education in which the 
student was previously enrolled to facilitate the award of a 
recognized postsecondary credential upon the condition that the 
student provides written consent prior to receiving such 
credential.

                       Explanation of Amendments

    The amendments, including the amendment in the nature of a 
substitute, are explained in the body of this report.

              Application 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. H.R. 4508 reforms the postsecondary education system by 
promoting innovation, access, and completion; simplifying and 
improving student aid; empowering students and families to make 
informed decisions; and ensuring strong accountability and a 
limited federal role.

                       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. This issue is addressed in the CBO letter.

                           Earmark Statement

    H.R. 4508 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of House Rule XXI.

                            Roll Call Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee Report to include for 
each record vote on a motion to report the measure or matter 
and on any amendments offered to the measure or matter the 
total number of votes for and against and the names of the 
Members voting for and against.


         Statement of General Performance Goals and Objectives

    In accordance with clause (3)(c) of House Rule XIII, the 
goals of H.R. 4508 are to reform the postsecondary education 
system by promoting innovation, access, and completion; 
simplifying and improving student aid; empowering students and 
families to make informed decisions; and ensuring strong 
accountability and a limited federal role.

                    Duplication of Federal Programs

    No provision of H.R. 4508 establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The committee estimates enacting H.R. 4508 does not 
specifically direct the completion of any specific rule makings 
within the meaning of 5 U.S.C. 551.

  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.

               New Budget Authority and CBO Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause 3(c)(3) of rule XIII of the Rules of 
the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the committee has received 
the following estimate for H.R. 4508 from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, February 6, 2018.
Hon. Virginia Foxx,
Chairwoman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4508, the 
Promoting Real Opportunity, Success, and Prosperity through 
Education Reform Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Justin 
Humphrey or Leah Koestner.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 4508--Promoting Real Opportunity, Success, and Prosperity through 
        Education Reform Act

    Summary: H.R. 4508 would reauthorize the Higher Education 
Act of 1965 (HEA) and amend institutional and student 
eligibility for several major student aid programs, including 
the William D. Ford Federal Direct Loan Program and the Federal 
Pell Grant Program. It also would reauthorize funding for most 
other federal higher education programs. Major provisions of 
the bill would:
           Amend repayment options for borrowers in the 
        federal student loan program and eliminate loan 
        forgiveness for certain borrowers who are employed in 
        the public sector (direct spending savings of $40.0 
        billion over the 2019-2027 period);
           Amend federal loan programs for 
        undergraduate borrowers, in particular by eliminating 
        the subsidized loan program and increasing loan limits 
        in the unsubsidized loan program (direct spending 
        savings of $18.5 billion over the 2019-2027 period);
           Eliminate origination fees paid by student 
        loan borrowers (direct spending costs of $14.5 billion 
        over the 2019-2027 period);
           Provide an additional $300 to Pell grant 
        recipients who enroll in at least 15 academic credits 
        per semester (direct spending costs of $7.3 billion 
        over the 2018-2027 period); and
           Amend or repeal restrictions on 
        institutional eligibility for federal student aid for 
        certain types of schools, the largest of which would 
        repeal the definition of distance education and 
        eliminate the cap on the percentage of revenues that 
        proprietary schools can receive from the Department of 
        Education (direct spending costs of $1.9 billion and 
        $2.0 billion, respectively).

Effects on the federal budget

    Because enacting the bill would affect direct spending, 
pay-as-you-go procedures apply. Enacting H.R. 4508 would not 
affect revenues. CBO estimates that enacting H.R. 4508 would 
not increase net direct spending or on-budget deficits in any 
of the four consecutive 10-year periods beginning in 2028.
    Direct Spending. CBO estimates that enacting the bill would 
increase direct spending by an estimated $0.6 billion in 2018, 
but would reduce direct spending by $2.2 billion over the 2018-
2022 period and $14.6 billion over the 2018-2027 period. Almost 
all of the effect on direct spending would result from changes 
to student loans and Pell grants. CBO estimates that changes to 
student lending would reduce direct spending by $26.3 billion 
over the 2018-2027 period and changes to the mandatory portion 
of the Pell grant program would increase direct spending by 
$12.2 billion over the same period (the bulk of funding for 
Pell grants is discretionary and is not included in that 
total).
    The estimates of changes to federal student loans are based 
on procedures outlined in the Federal Credit Reform Act of 1990 
(FCRA). On a fair-value basis, which more fully accounts for 
the cost of the risk the government takes on in its student 
loan programs, CBO estimates that changes to student loans 
would instead reduce direct spending by $16.9 billion over the 
2018-2027 period. More details about Federal Credit Reform Act 
and fair-value estimates are discussed under ``Background'' and 
``Fair-Value Estimating.''
    Spending Subject to Appropriation. H.R. 4508 would 
reauthorize many discretionary programs for higher education 
through fiscal year 2024. Although almost all of the underlying 
authorizations have expired, many of the programs have 
continued to receive appropriations. Most of the authorizations 
would automatically be extended through 2025 under the General 
Education Provisions Act (GEPA). The bill also would amend 
several other laws, including the Education for the Deaf Act 
and the Tribally Controlled Colleges and Universities 
Assistance Act.
    CBO estimates that H.R. 4508 would authorize the 
appropriation of $112.0 billion over the 2018-2022 period and 
$210.4 billion over the 2018-2027 period. Assuming 
appropriation of the estimated amounts, CBO projects that 
enacting the bill would increase discretionary spending by 
$87.5 billion and $210.1 billion, respectively, over the two 
periods. The bulk of that amount ($169.6 billion over the 2018-
2027 period) would result from reauthorizing and amending the 
discretionary portion of the Pell grant program.

Mandates

    Section 4 of the Unfunded Mandates Reform Act (UMRA) 
excludes from the application of that act any legislative 
provisions that would enforce constitutional rights of 
individuals. CBO has determined that sections 111, 115, and 117 
of H.R. 4508 fall within that exclusion because they would 
enforce the rights of free speech and religion. None of the 
remaining provisions of H.R. 4508 would impose 
intergovernmental or private-sector mandates as defined in 
UMRA.
    Estimated Cost to the Federal Government: The estimated 
budgetary effects of H.R. 4508 are shown in Table 1. The costs 
of the legislation fall within budget function 500 (education, 
training, employment, and social services).

              TABLE 1--BUDGETARY EFFECTS OF H.R. 4508, THE PROMOTING REAL OPPORTUNITY, SUCCESS, AND PROSPERITY THROUGH EDUCATION REFORM ACT
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   By fiscal year, in billions of dollars--
                                                    ----------------------------------------------------------------------------------------------------
                                                      2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-207
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Estimated Budget Authority.........................     1.2     0.2    -1.2    -1.7    -2.0    -2.4    -2.9    -3.4    -3.6    -3.8       -3.4     -19.5
Estimated Outlays..................................     0.6     0.7    -0.8    -1.2    -1.5    -1.8    -2.2    -2.6    -2.8    -3.0       -2.2     -14.6
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level......................     0.3    19.7    29.7    30.8    31.5    32.1    32.8    33.4     0.0     0.0      112.0     210.4
Estimated Outlays..................................     0.1     5.4    21.4    29.6    31.0    31.7    32.3    32.9    24.5    1.28       87.5     210.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.

    Background: Most of the assistance the federal government 
provides to students comes from student loans and Pell grants.

Federal student loan programs

    Under the William D. Ford Direct Loan Program, created in 
1994, the federal government provides loans to undergraduate 
and graduate students and to the parents of undergraduate 
students. The government serves as the lender for all borrowers 
but contracts with private entities to service the loans.\1\ 
CBO estimates that in fiscal year 2018, the federal government 
will make more than 17 million new loans to students and 
parents, totaling about $100 billion.
---------------------------------------------------------------------------
    \1\Before July 1, 2010, the federal government also provided loan 
guarantees to financial institutions to provide federal student loans 
through the Federal Family Education Loan Program. The Health Care and 
Education Reconciliation Act of 2010, which was signed into law on 
March 30, 2010, required all new loans originated after July 1, 2010, 
to be in the direct loan program.
---------------------------------------------------------------------------
    Federal Credit Reform Act Estimate. As required under FCRA, 
most of the costs of the federal student loan programs are 
estimated on a net-present-value basis. A present value is a 
single number that expresses a flow of current and future 
payments in terms of an equivalent lump sum received or paid 
today. Under credit reform, the present value of all loan-
related cash flows is calculated by discounting those expected 
cash flows to the year of disbursement, using the rates for 
comparable maturities on Treasury borrowing. (For example, the 
cash flow for a one-year loan is discounted using the Treasury 
rate for a one-year, zero-coupon note.) The costs for the 
federal administration of student loans are estimated on a cash 
basis. Unless otherwise noted, all estimated costs related to 
the federal student loan programs are shown using FCRA-
estimating procedures.
    Fair-Value Estimate. Section 5106 of the Conference Report 
of the Concurrent Resolution on the Budget for Fiscal Year 2017 
requires any CBO cost estimate of a student loan provision 
under FCRA procedures to also include a fair-value estimate of 
the provision's costs.
    Fair value estimates are based on market values--market 
prices when those prices are available or approximations of 
market prices when directly comparable figures are 
unavailable--which more fully account for the cost of the risk 
the government takes on in its student loan programs. To 
account for that risk, CBO discounts the same projected cash 
flows as under FCRA but uses a market-based discount rate.\2\ 
The differences between fair-value and FCRA estimating 
procedures for the student loan program are discussed under 
``Fair-Value Estimating.''
---------------------------------------------------------------------------
    \2\For more details on fair-value accounting, see Congressional 
Budget Office, Fair-Value Estimates of the Cost of Selected Federal 
Credit Programs for 2015 to 2024 (May 2014) www.cbo.govipublication/
45383, and Fair-Value Accounting for Federal Credit Programs (March 
2012) www.cbo.gov/publication/43027.
---------------------------------------------------------------------------

Federal Pell Grant Program

    The Federal Pell Grant Program, created in 1972, provides 
need-based grants to undergraduate postsecondary students. It 
is the largest source of federal grant aid for postsecondary 
education. Unlike federal student loans, the grants are not 
repaid. Under current law, CBO projects that in academic year 
2018-2019, 7.5 million students will receive grants that 
average $3,900 for a total federal cost of $29.3 billion.
    Funding Sources. Although Pell grants are funded with both 
discretionary and mandatory appropriations, the main source of 
funds is an annual discretionary appropriation. Additional 
mandatory funds, which are provided automatically on the basis 
of a founula, support a ``mandatory add-on,'' which increases 
the award amount above the maximum set in the annual 
appropriation act.
    Current Awards. For the 2018-2019 academic year, which 
begins on July 1, 2018, the maximum Pell grant will be $5,920. 
Of that, $4,860 will be supported with discretionary funds and 
$1,060 will be supported with mandatory funds.\3\
---------------------------------------------------------------------------
    \3\ Additional mandatory funding is provided in section 
401(b)7(A)(iv) of the Higher Education Act of 1965. That budget 
authority is used to augment the funding provided in annual 
appropriations for the discretionary Pell grant program.
---------------------------------------------------------------------------
    Basis of Estimate for Direct Spending: For this estimate, 
CBO assumes that H.R. 4508 will be enacted by July 1, 2018. CBO 
estimates that enacting the bill, which (among other changes) 
would amend the William D. Ford Federal Direct Loan Program and 
the Federal Pell Grant Program and eliminate the Teacher 
Education Assistance for College and Higher Education (TEACH) 
Grant Program, would increase direct spending by $0.6 billion 
in 2018, but would reduce direct spending by $2.2 billion over 
the 2018-2022 period and $14.6 billion over the 2018-2027 
period (see Table 2).
    Over the 2018-2027 period, the bill would decrease direct 
spending in the student loan program by $26.3 billion, increase 
direct spending in the Pell grant program by $12.2 billion, and 
decrease direct spending in the TEACH Grant Program by $0.4 
billion, CBO estimates. Each provision (or set of provisions as 
listed in Table 3) is estimated separately relative to current 
law. The estimated budgetary effects of each provision are also 
shown in that table.
    Because funding for Pell grants comes from mandatory and 
discretionary sources, the budgetary effects of changes made to 
Pell grants in H.R. 4508 are discussed in two sections. Changes 
to the mandatory add-on are discussed in this section and 
discretionary-funding effects are discussed under ``Basis of 
Estimate for Spending Subject to Appropriation.'' Details for 
each policy provision are described in this section including 
the total effect on Pell grant recipients.

Federal One Loan Policies

    Most of the bill's effects on direct spending would arise 
from the creation of the new Federal One Loan Program and other 
changes to the student loan programs or from changes in 
institutional or student eligibility for Pell grants and direct 
student loans.

                                                             TABLE 2.--ESTIMATED EFFECTS OF H.R. 4508 ON DIRECT SPENDING, BY PROGRAM
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                               By fiscal year, in millions of dollars
                                                                  ------------------------------------------------------------------------------------------------------------------------------
                                                                     2018      2019      2020      2021      2022      2023      2024      2025      2026      2027    2018-2022     2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                          INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Federal Student Loan Program:
    Estimated Budget Authority...................................       385      -690    -2,220    -2,875    -3,300    -3,785    -4,390    -4,945    -5,170    -5,400     -8,700         -32,390
    Estimated Outlays............................................       250      -300    -1,565    -2,270    -2,700    -3,115    -3,605    -4,090    -4,355    -4,545     -6,585         -26,295
Federal Pell Grant Program:
    Estimated Budget Authority...................................       822       999     1,144     1,278     1,391     1,454     1,513     1,558     1,590     1,646      5,634          13,394
    Estimated Outlays............................................       309     1,007       807     1,175     1,307     1,407     1,469     1,525     1,566     1,604      4,605          12,176
TEACH Grants:
    Estimated Budget Authority...................................       -29       -62       -75       -71       -57       -36       -35       -35       -35       -35       -294            -470
    Estimated Outlays............................................        -8       -38       -65       -74       -67       -51       -36       -35       -35       -35       -252            -444
    Total Changes:
        Estimated Budget Authority...............................     1,178       247    -1,151    -1,668    -1,966    -2,367    -2,912    -3,422    -3,615    -3,789     -3,360         -19,466
        Estimated Outlays........................................       551       669      -823    -1,169    -1,460    -1,759    -2,172    -2,600    -2,824    -2,976     -2,232         -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                  Memorandum: Estimated changes in direct spending with changes to the Federal Student Loan Program estimated under fair value.
 
                                                                          INCREASES OR DECREASES (-) IN DIRECT SPENDING
Federal Student Loan Program Under Fair Value:
    Estimated Budget Authority...................................       550      -460    -1,600    -2,000    -2,260    -2,590    -3,015    -3,390    -3,485    -3,495     -5,770         -21,745
    Estimated Outlays............................................       475        25      -975    -1,495    -1,825    -2,080    -2,405    -2,760    -2,910    -2,905     -3,795         -16,855
    Total Changesa:
        Estimated Budget Authority...............................     1,343       477      -531      -793      -926    -1,172    -1,537    -1,867    -1,930    -1,884       -430          -8,821
        Estimated Outlays........................................       776       994      -233      -394      -585      -724      -972    -1,270    -1,379    -1,336        558          -5,123
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CEO's June 2017 baseline, Components may not sum to totals because of rounding. TEACH = Teacher Education Assistance for College and Higher Education Grant Program.
aTotal changes equal the effects on the Federal Pell Grant Program, the TEACH Grants, and the fair value estimate of the Federal Student Loan Program.


                                                            TABLE 3.--ESTIMATED EFFECTS OF H.R. 4508 ON DIRECT SPENDING, BY PROVISION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Outlays by fiscal year, in millions of dollars
                                                             -----------------------------------------------------------------------------------------------------------------------------------
                                                                2018      2019      2020      2021      2022      2023      2024      2025      2026      2027       2018-2022       2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING OUTLAYS
 
One Loan Program:
    Undergraduate Student Borrowing.........................         0      -395    -1,090    -1,580    -1,870    -2,140    -2,480    -2,830    -3,005    -3,115          -4,935         -18,505
    Graduate Student Borrowing..............................         0       115       260       320       340       370       410       465       500       525           1,035           3,305
    Parent Borrowing........................................         0       135       370       540       625       700       785       875       910       925           1,670           5,865
    Repayment Options.......................................         0    -1,095    -2,610    -3,575    -4,145    -4,665    -5,260    -5,855    -6,235    -6,520         -11,425         -39,960
    Origination Fees........................................         0       400       940     1,295     1,510     1,700     1,920     2,130     2,260     2,350           4,145          14,505
Other Student Loan Changes:
    Borrower Defense to Repayment...........................       215       415       380       305       290       300       310       320       335       350           1,605           3,220
    Closed School Discharges................................       -40       -80       -90       -90       -95      -100      -100      -105      -110      -115            -395            -925
    Rehabilitation Loans....................................        50        50        50        50        50        50        50        50        50        50             250             500
    Funds to Administer Loan Program........................         0        27        16         5         2         0         0         0         0         0              50              50
    Foreign Schools.........................................         *        -3        -3        -3        -3        -5        -5        -5       -10       -10             -12             -47
    Parent Loans and IDR....................................       -10        -4        -4        -4        -4        -4        -4        -4        -4        -4             -26             -46
    Data Match to Determine Disability Discharges...........        10         1         1         1         1         1         1         1         1         1              14              19
Institutional Eligibility for Federal Aid:
    Distance Education:
        Federal Student Loans...............................         *        10        20        45        75       105       130       150       160       165             150             860
        Pell Grants.........................................         1        10        29        54        88       122       150       176       191       196             182           1,017
            Total...........................................         1        20        49        99       163       227       280       326       351       361             332           1,877
    90/10 Rule:
        Federal Student Loans...............................        10        45        80       100       110       105       120       130       130       135             345             965
        Pell Grants.........................................        10        46        82       108       119       121       123       125       127       129             366             990
            Total...........................................        20        91       162       208       229       226       243       255       257       264             711           1,955
    Short-Term Programs:
        Federal Student Loans...............................         3         5        10        10        10        10        15        15        15        15              38             108
        Pell Grants.........................................         6        24        28        33        37        40        41        42        44        46             129             343
            Total...........................................         9        29        38        43        47        50        56        57        59        61             167             451
    Gainful Employment:
        Federal Student Loans...............................         3        10        20        20        25        25        25        30        30        30              78             218
        Pell Grants.........................................         3        13        22        29        32        32        33        34        34        35              99             267
            Total...........................................         6        23        42        49        57        57        58        64        64        65             177             485
    Loan Repayment Rate:
        Federal Student Loans...............................        -5       -10       -10       -20       -20       -15       -15       -15       -20       -20             -65            -150
        Pell Grants.........................................         0         0         0       -10       -31       -15       -15       -15       -16       -16             -41            -117
            Total...........................................        -5       -10       -10       -30       -51       -30       -30       -30       -36       -36            -106            -267
    Competency Based Education:
        Federal Student Loans...............................         *         3         3         5         5        10        10        10        10        15              16              71
        Pell Grants.........................................         1         5         7         9        10        13        15        18        21        24              32             123
            Total...........................................         1         8        10        14        15        23        25        28        31        39              48             194
    Liberal Arts:
        Federal Student Loans...............................         *         5         5        10        10        10        15        15        15        15              30             100
        Pell Grants.........................................         *         2         6        10        12        12        12        13        13        13              29              92
            Total...........................................         *         7        11        20        22        22        27        28        28        28              59             192
    Ineligible Program Partnerships:
        Federal Student Loans...............................         *         3         3         3         5         5        10        15        20        25              14              89
        Pell Grants.........................................         *         1         1         3         4         6         9        12        18        25               9              78
            Total...........................................         *         4         4         6         9        11        19        27        38        50              23             167
    Accrediting Agencies:
        Federal Student Loans...............................       -25        15        10         5         5         5         5         5         5        10              10              40
        Pell Grants.........................................         7        27        20        14        11         8         8         8         8         9              80             121
            Total...........................................       -18        42        30        19        16        13        13        13        13        19              90             161
Grant Amounts and Student Eligibility for Federal Aid:
    Pell Grant Bonus:
        Pell Grants.........................................       201       745       779       785       809       818       818       810       796       784           3,319           7,345
    Return of Title IV Aid:
        Federal Student Loans...............................         3        10        10        10        10        10        10        10        15        15              43             103
        Pell Grants.........................................       -17       -59       -55       -53       -54       -55       -56       -56       -58       -60            -238            -522
            Total...........................................       -14       -49       -45       -43       -44       -45       -46       -46       -43       -45            -195            -419
    Ability to Benefit:
        Federal Student Loans...............................         3         5        10        10        10        10        10        15        15        15              38             103
        Pell Grants.........................................         3        11        17        21        21        22        22        22        23        23              73             184
            Total...........................................         6        16        27        31        31        32        32        37        38        38             111             287
    Selective Service:
        Federal Student Loans...............................         *         3         3         3         5         3         5         5         5         5              14              37
        Pell Grants.........................................         1         4         8         9         9         9         9         9         9         9              30              76
            Total...........................................         1         7        11        12        14        12        14        14        14        14              44             113
    Cost of Attendance:
        Federal Student Loans...............................         5         5         5         5         3         3         3         3         3         3              23              38
        Pell Grants.........................................         *         *         *         *         *         *         *         *         *         *               *               *
            Total...........................................         5         5         5         5         3         3         3         3         3         3              23              38
    Simplified Needs Test:
        Federal Student Loans...............................         *         *         *         *         *         *         *         *         *         *               *               *
        Pell Grants.........................................         1         2         3         4         4         4         4         4         4         4              13              35
            Total...........................................         1         2         3         4         4         4         4         4         4         4              13              35
    529 Plans:
        Federal Student Loans...............................         1         1         1         1         1         1         1         1         1         1               5              10
        Pell Grants.........................................         *         *         *         *         *         *         *         *         *         *               1               2
            Total...........................................         1         1         1         1         1         1         1         1         1         1               6              12
    Prevention of Fraud:
        Pell Grants.........................................        -1        -4        -5        -5        -5        -5        -5        -5        -5        -5             -20             -45
Outlay Effects on Previous Appropriations for Pell Grants...        87       145      -229        -3         0         0         0         0         0         0               0               0
Interactions:
        Federal Student Loans...............................        27        24        45       259       345       391       424       479       549       589             700           3,132
        Pell Grants.........................................         7        35        93       169       239       275       301       327       356       388             544           2,191
            Total...........................................        34        59       138       428       584       666       725       806       905       977           1,244           5,323
Other Program Changes:
        Eliminate the TEACH Grant Program...................        -8       -38       -65       -74       -67       -51       -36       -35       -35       -35            -252            -444
Total Outlays:
        Federal Student Loans...............................       250      -300    -1,565    -2,270    -2,700    -3,115    -3,605    -4,090    -4,355    -4,545          -6,585         -26,295
        Pell Grants.........................................       309     1,007       807     1,175     1,307     1,407     1,469     1,525     1,566     1,604           4,605          12,176
        TEACH Grants........................................        -8       -38       -65       -74       -67       -51       -36       -35       -35       -35            -252            -444
            Total...........................................       551       669      -823    -1,169    -1,460    -1,759    -2,172    -2,600    -2,824    -2,976          -2,232         -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CEO's June 2017 baseline. * = between -$500,000 and $500,000. Components may not sum to totals because of rounding. Provisions with a negligible impact on direct
  spending are not included in this table. IDR = Income-Driven Repayment; TEACH = Teacher Education Assistance for College and Higher Education Grant Program.

    Effective on July 1, 2019, H.R. 4508 would create the 
Federal One Loan Program, a new direct loan program to replace 
the current Federal Direct Student Loan Program and would 
change the way the federal government lends money to and 
accepts repayments from undergraduate, postgraduate, and parent 
borrowers. Students and parents with no outstanding direct 
loans as of that date would be required to borrow under the new 
program.
    Undergraduate students with outstanding undergraduate loans 
as of that date could continue to borrow in the direct loan 
program for their undergraduate education through fiscal year 
2024. Graduate students with outstanding graduate loans also 
could continue to borrow for their graduate education for the 
same period. The effect of the new program's changes on direct 
spending would increase over time as more students took out 
loans under the Federal One Loan Program and fewer students 
borrowed under the old program.
    Undergraduate Student Borrowing. Currently, undergraduate 
students are eligible for two types of federal direct loans: 
subsidized loans, which are available only to borrowers who 
demonstrate financial need, and unsubsidized loans, which are 
available regardless of need.
    The interest rates are the same, but interest accrues on 
different schedules for the two types of loans. Subsidized 
loans accrue no interest while a student is enrolled at least 
half-time, for six months after either leaving school or 
dropping below half-time status, and during certain other 
periods when repayments may be deferred. Unsubsidized loans 
accrue interest from the date of disbursement. The amount that 
students may borrow each year depends on their class level and 
whether they are dependent or independent students. (Dependent 
students are generally undergraduate students under the age of 
24, not married, and have no dependents of their own.) H.R. 
4508 would make several changes to those programs.
    Eliminate Subsidized Loans. The bill would eliminate the 
subsidized loan program and increase the amount that students 
may borrow in the unsubsidized program by the amount previously 
allowed in the subsidized loan program. CBO projects that, 
under current law, borrowing by undergraduate students in 
direct student loans will be about $64 billion in 2027--about 
$31 billion in subsidized loans and about $32 billion in 
unsubsidized loans. Under the bill, CBO expects that most 
borrowers in the subsidized loan program would continue to 
borrow in the unsubsidized loan program. In addition CBO 
projects that the federal government saves about $0.11 for 
every $1 in unsubsidized loan volume relative to $1 in 
subsidized loan volume. Finally, CBO expects that not all 
students would borrow as much in the unsubsidized loan program 
as they would in the subsidized loan program because of the 
higher expected cost for the students. On that basis, and 
adjusting for differences in borrow characteristics between the 
two loan types, CBO projects that eliminating subsidized loans 
would save $3.4 billion in 2027.
    Increase Loan Limits. H.R. 4508 also would increase the 
amount that an undergraduate student could borrow by $2,000 
each academic year. Using data from the National Postsecondary 
Student Aid Study (NPSAS), CBO projects this provision would 
increase volume in the unsubsidized loan program by about $6 
billion in 2027, which CBO estimates saves the government $0.01 
for every $1 in lending in that year. That increase in 
unsubsidized loan volume would be accompanied by a decrease of 
less than $500 million in parent loan volume, which CBO 
estimates saves $0.28 for every $1 loaned. The bill also would 
allow financial aid officers to cap loan amounts for all or 
certain categories of students at an institution, which CBO 
projects would reduce lending by about $1 billion in 2027. On 
net, those changes in loan volume would increase direct 
spending by less than $0.1 billion in that same year.
    Change or Eliminate Categories of Deferment and 
Forbearance. Finally, the bill would change or eliminate 
certain categories of deferment and forbearance that allow 
borrowers to temporarily cease paying on their student loans. 
(During deferment interest continues to accrue on the 
outstanding balance.). In some situations--for example, while 
enrolled at least half-time--student borrowers could continue 
to defer loan payments. If they were unemployed or experiencing 
economic hardship, however, they would not be able to defer 
payments, as they can under current law. Reducing the options 
for deferred repayment would increase direct spending by $0.3 
billion in 2027, mainly because of the loss of accrued interest 
during deferment.
    In total, CBO projects that those provisions for 
undergraduate borrowing together would increase total lending 
to undergraduates from $64 billion under current law to $68 
billion in 2027. On net, the changes would decrease direct 
spending by $18.5 billion over the 2019-2027 period, CB0 
estimates.
    Graduate Student Borrowing. H.R. 4508 would make certain 
changes in federal lending to graduate students who now are 
eligible for two types of federal loans: unsubsidized loans and 
GradPLUS loans. Under current law, most of those students may 
borrow as much as $20,500 per year in the unsubsidized loan 
program, although students in certain medical fields can borrow 
more. In addition, graduate borrowers can borrow up to their 
costs of attendance (minus all other aid received) under the 
GradPLUS program, which has a higher interest rate and 
origination fee than the unsubsidized loan program.
    H.R. 4508 would eliminate the GradPLUS program and raise 
the annual limit in the unsubsidized loan program for most 
students to $28,500 per academic year (not to exceed their cost 
of attendance minus all other aid received), with an aggregate 
limit of $150,000. The bill would maintain the higher limits 
for borrowers in certain medical fields. As with undergraduate 
loans, the bill would allow financial aid officers to cap 
lending for certain types of students and reduce the list of 
circumstances in which students can defer repayment.
    Under current law, CBO projects that in 2027 graduate 
students will borrow about $40 billion in the unsubsidized loan 
program and another $17 billion in the GradPLUS program. Using 
data from NPSAS, CBO estimates that under H.R. 4508, about $9 
billion in lending currently in the GradPLUS program would move 
into unsubsidized loans, and the remaining $8 billion would be 
eliminated.
    In addition, CBO expects that under H.R. 4508, some 
borrowers who currently borrow the maximum for which they are 
eligible in the unsubsidized loan program, but who do not 
borrow in the GradPLUS program would increase their 
unsubsidized borrowing. This would result in part because 
interest rates and fees are lower in the unsubsidized loan 
program than in the GradPLUS program and because, unlike the 
GradPLUS program, the unsubsidized loan program has no credit 
requirement. For this reason, CBO projects a resulting 
additional increase of about $3 billion in volume in the 
unsubsidized loan program in 2027.
    In total, CBO estimates that the provisions would increase 
volume in the unsubsidized loan program for graduate students 
by about $11 billion in 2027 and increase direct spending by 
$3.3 billion over the 2019-2027 period. That increase in direct 
spending stems from the elimination of the current GradPLUS 
program, which CBO projects will earn $0.08 for every $1 in 
lending in 2027. Some of that cost would be offset, in part, by 
the increase in volume in the unsubsidized loan program for 
graduate students--which CBO projects will earn $0.06 for every 
$1 in lending in that same year--and by a small decline in 
eligibility for participation in income-driven repayment (IDR) 
because borrowers would have lower outstanding balances.
    Parent Borrowing. The bill also would amend the federal 
loan program for parents. Under current law, in the parent 
(PLUS) loan program, parents of dependent students may borrow 
up to the cost of attendance (minus all other aid) each 
academic year, with no aggregate limit. The Federal One Loan 
Program would cap parent borrowing at $12,500 per academic year 
and set an aggregate limit of $56,250.
    CBO estimates that under current law, parents will borrow 
about $18 billion in 2027 and that the federal government will 
receive about $0.28 for each $1 lent to those borrowers. Using 
data from NPSAS, CBO projects that H.R. 4508 would reduce the 
amount loaned by about $3.5 billion in 2027, thus increasing 
direct spending by $0.9 billion in that year and by $5.9 
billion over the 2019-2027 period.
    Repayment Options. H.R. 4508 also would amend the ways in 
which federal education loans are repaid. Under current law, 
the following options are available to borrowers:
      The standard (or default) repayment plan allows 
borrowers to make fixed monthly payments for 10 years.
      Consolidation allows a borrower to combine all 
loans into a single debt with a fixed interest rate. Depending 
on the size of the outstanding balance, the borrower may extend 
repayment beyond 10 years.
      Income-driven repayment plans, such as the 
Income-Based Repayment plan, the PAYE (Pay as You Earn) 
Repayment Plan, and the REPAYE (Revised Pay as You Earn) 
Repayment Plan, allow borrowers to make monthly payments (which 
are calculated as a percentage of income), usually for 20 or 25 
years, with total forgiveness of outstanding balances at the 
end of that term. Payments for most new borrowers are set at 10 
percent of discretionary income, and there is no limit on the 
amount that may be forgiven. In addition, borrowers in an IDR 
plan who are employed full time in public service are eligible 
for the Public Service Loan Forgiveness (PSLF) program, which 
provides debt forgiveness after 10 years of monthly payments.
      Graduated repayment allows borrowers to make 
smaller payments early in the period and larger payments in 
later years.
      Extended repayment gives borrowers with balances 
over $30,000 more than 10 years in which to repay their loans.
    H.R. 4508 would consolidate repayment options into three 
plans: a standard 10-year repayment plan, which would still be 
the default; consolidation, which would still include the 
option to extend repayment beyond 10 years; and a single IDR 
plan.
    That new IDR plan would set monthly payments at 15 percent 
of a borrower's discretionary income. Borrowers also would be 
required to make total interest and principal payments equal to 
the amount they would have paid under a standard 10-year plan 
before the outstanding balance could be forgiven. Only payments 
made under an IDR or a 10-year plan would count toward that 
total. H.R. 4508 would eliminate the PSLF program for loans in 
the One Loan Program.
    CBO estimates that the changes to repayment options under 
H.R. 4508 would reduce direct spending by about $40 billion 
over the 2019-2027 period. The majority of the savings, roughly 
$25 billion, would result from the elimination of the PSLF 
program. An additional roughly $15 billion in savings would 
come from reducing forgiveness and requiring higher payments 
under the new IDR plan (which reduces costs to the government) 
and from eliminating extended and graduated repayment terms 
(which increases costs to the government because some borrowers 
who choose those plans under current law would move to IDR 
plans and pay less interest).
    Origination Fees. Under current law, borrowers in the 
subsidized and unsubsidized loan programs pay an origination 
fee of 1 percent of the loan amount. The fee for parent and 
GradPLUS loans is 4 percent.\4\ H.R. 4508 would eliminate 
origination fees for all Federal One loans, resulting in an 
increase in direct spending of $14.5 billion over the 2019-2027 
period, CBO estimates.
---------------------------------------------------------------------------
    \4\The Budget Control Act of 2011 requires automatic reductions in 
the cost of certain mandatory programs. For student loans, the savings 
are achieved by increasing origination fees above the percentages 
specified in the Higher Education Act. The origination fees described 
in the text do not include this additional amount.
---------------------------------------------------------------------------

Other Student Loan Changes

    In addition to creating the Federal One Loan Program, H.R. 
4508 would make other changes to federal student lending.
    Background. Under current law, borrowers may be eligible 
for forgiveness of their loans if the educational institution 
they attended has violated certain laws or if the institution 
closes while the students are enrolled and they do not re-
enroll elsewhere.
    In November 2016, the Department of Education published 
final rules expanding eligibility for borrower defense to 
repayment and streamlining and automating the process of 
discharging loans for students enrolled in schools that close. 
In June 2017, before the new rules took effect, the department 
announced that it would delay implementation and begin a new 
negotiated rulemaking process to revise the rules, As a result, 
CBO' s June 2017 baseline accounts for only 50 percent of the 
impact of the final rules for borrower defense to repayment and 
closed-school discharges, as published in November 2016. Thus, 
CBO's estimates of proposals that repeal or enact changes to 
the final rules are based on only 50 percent of the proposals' 
full estimated costs.
    Borrower Defense to Repayment. H.R. 4508 would repeal the 
final rule for borrower defense to repayment and amend the 
current provisions. Those changes, on net, would increase the 
number of loans eligible for borrower defense to repayment, 
relative to projections in CBO's June 2017 baseline. The 
provision with the largest budgetary effect would substantially 
incorporate part of the final rule by allowing for borrower 
defense to repayment in situations in which institutions made a 
substantial misrepresentation, breached a contract with 
students, or broke a federal or state law.
    On the basis of its analysis of loan volume at schools that 
are under investigation for issues that could fall under 
borrower defense to repayment, CBO estimates that those 
provisions would increase direct spending by $3.2 billion, 
relative to the June 2017 baseline, over the 2018-2027 period.
    Closed School Discharges. H.R. 4508 would change the 
provisions that allow loans to be discharged when schools close 
by amending the HEA to include most of the regulations related 
to those provisions as they were in effect before November 
2016. Among those provisions is one that would require 
borrowers to apply for a loan discharge rather than receive it 
automatically three years after a school has closed.
    Using data that the Department of Education published in 
the final rule, CBO estimates that approximately 40 percent of 
borrowers from closed schools would not apply for a discharge 
or re-enroll elsewhere within three years. CBO projects that 
such changes would reduce direct spending, by $0.9 billion over 
the 2018-2027 period.
    Other Changes. H.R. 4508 also would make several changes to 
the student loan programs that would have relatively smaller 
effects. Those provisions and CBO' s estimated costs are shown 
below:
           Rehabilitation Loans. Allow borrowers who 
        default to rehabilitate their loans for a second time 
        (increased spending of $500 million over the 2018-2027 
        period);
           Funds to Administer Loan Program. 
        Appropriate $50 million for fiscal year 2019 to help 
        the Department of Education administer student loan 
        programs (increased spending of $50 million over the 
        2019-2027 period);
           Foreign Schools. Amend the eligibility of 
        foreign schools to participate in the federal student 
        loan programs, including changing the requirements for 
        passing the United States Medical Licensing 
        Examination, allowing foreign institutions to partner 
        with non-eligible institutions to offer certain 
        coursework, and changing the requirements for audited 
        financial statements that foreign schools must provide 
        (decreased spending of $47 million over the 2018-2027 
        period);
           Parent Loans and IDR. Prohibit parent 
        borrowers from participating in income-driven repayment 
        plans (decreased spending of $46 million over the 2018-
        2027 period); and
           Data Match to Determine Disability 
        Discharges. Require the Department of Veterans Affairs 
        to match its data on borrowers with disabilities with 
        data from the Department of Education to determine 
        which borrowers may be eligible for a disability 
        discharge of their loans (increased spending of $19 
        million over the 2018-2027 period).
    CBO estimates that, on net, those changes would increase 
direct spending by $476 million over the 2018-2027 period.

Institutional eligibility for federal aid

    H.R. 4508 would alter or repeal various regulations 
concerning institutional eligibility, including some that are 
specific to proprietary, or for-profit, institutions. CBO 
expects that it would take several years for institutions to 
adjust to the new rules, so the effects of the changes would 
increase over the next decade.
    Distance Education. H.R. 4508 would repeal the current-law 
requirement that online programs provide students with regular, 
substantive interaction with faculty. CBO expects that if 
programs do not need to meet that criterion they could more 
easily expand and scale up, resulting in higher enrollment.
    Based on an analysis of the patterns of growth in online 
education, CBO projects that by 2027, under this provision, the 
number of Pell grant recipients would increase by about 240,000 
(or about 3 percent) and federal student lending to 
undergraduate and graduate students would increase by about $4 
billion.
    CBO estimates that this provision would increase direct 
spending by $1.9 billion over the 2018-2027 period--$0.9 
billion for student loans and $1.0 billion for Pell grants.
    90/10 Rule. The ``90/10 rule'' prohibits proprietary 
institutions from receiving more than 90 percent of their 
overall revenue from student aid programs authorized under 
title IV of the HEA, including federal student loans and Pell 
grants. Institutions that do not meet that requirement may be 
ineligible to receive aid.
    CBO's analysis of data from the Department of Education 
shows that more than half of all proprietary schools receive at 
least 70 percent of their revenue from title IV aid. CBO 
anticipates that repealing the 90/10 rule would allow those 
schools to expand enrollment and that the schools closest to 
the 90 percent threshold would be the most likely to do so. As 
a result, CBO estimates, by 2027, the number of Pell grant 
recipients would increase by 160,000 (or about 2 percent) and 
the total amount of student loans, mostly subsidized and 
unsubsidized loans to undergraduate students, would increase by 
$1.3 billion.
    CBO estimates that repealing the 90/10 rule would increase 
direct spending by $2.0 billion over the 2018-2027 period--$1.0 
billion for student loans and $1.0 billion for Pell grants.
    Short-Term Programs. Current law requires programs to offer 
at least 600 clock hours of instruction for students to be 
eligible for Pell grants. To be eligible for student loans, a 
program must offer at least 300 hours and have a student 
completion and placement rate of at least 70 percent. However, 
short-term programs that are integrated into longer programs 
that are eligible for federal aid are eligible for aid under 
current law. H.R. 4508 would extend aid eligibility to students 
in short-term programs that offer at least 300 clock hours of 
instruction over a minimum of 10 weeks (there would no longer 
be any requirements about placement rates).
    On the basis of enrollment data for short-term programs 
from the Integrated Postsecondary Education Data System and 
discussions with accreditors and institutional officials, CBO 
estimates that by 2027, expanding the eligibility of short-term 
programs would increase the number of Pell grant recipients by 
about 100,000 students (or 1 percent) and student lending by 
about $160 million. Students enrolled in short-term programs 
eligible under this provision would generally receive about 
half of the average Pell grant award and a smaller percentage 
would take out student loans than those in longer programs.
    CBO estimates that allowing short-term programs to 
participate in federal aid would increase direct spending by 
$451 million over the 2018-2027 period--$108 million for 
student loans and $343 million for Pell grants.
    Gainful Employment. In October 2014, the Department of 
Education published final rules related to gainful employment, 
setting benchmarks related to student income and federal loan 
debt that had to be met by programs at proprietary institutions 
and by non-degree-granting programs at public and nonprofit 
institutions if they were to remain eligible for federal 
student aid. In June 2017, before any schools lost eligibility, 
the department announced that it would delay implementation and 
begin a new negotiated rulemaking process to revise the final 
rules. As a result, CBO's June 2017 baseline accounts for only 
50 percent of the impact of the final rules for gainful 
employment, as published in October 2014. Thus, CBO's estimates 
of proposals to repeal the final rule are based on 50 percent 
of the full estimated costs of that repeal.
    H.R. 4508 would repeal the final rulemaking related to 
gainful employment and prohibit future rulemaking related to 
this issue. Based on CBO's analysis of data from the Department 
of Education on student income and student loan debt at 
institutions subject to the rule, CBO estimates that by 2027, 
that policy would increase the number of Pell grant recipients 
by about 45,000 (or 0.5 percent) and student loan volume in the 
subsidized and unsubsidized loan programs by about $300 
million.
    CBO estimates that, relative to its June 2017 baseline 
projections, repealing the gainful employment rule would 
increase direct spending by $485 million over the 2018-2027 
period--$218 million for student loans and $267 million for 
Pell grants.
    Loan Repayment Rate. Under current law, a school may become 
ineligible to participate in the federal student aid programs 
if the number of students who default on their student loans is 
above certain thresholds. H.R. 4508 would replace that metric, 
the cohort default rate, with a new metric--the loan repayment 
rate. The loan repayment rate would measure the number of 
student borrowers in each program at an institution that are 
making the payments required by their repayment plan (rather 
than in deferment, forbearance, or default), by the end of 
their second year in repayment. Individual programs that fell 
below 45 percent, the threshold set in the bill for multiple 
cohorts of students, could become ineligible to receive federal 
student aid.
    Using data from the Department of Education, CBO expects 
that this provision would cause some additional programs to 
lose eligibility and that some students attending those schools 
would not continue their education at other institutions. CBO 
estimates that this provision would decrease direct spending by 
$267 million over the 2018-2027 period--$150 million for 
student loans and $117 million for Pell grants.
    Other Changes to Institutional Eligibility. In addition to 
the above provisions, H.R. 4508 would make the following 
changes. Those provisions and CBO's estimated effects on 
spending are shown below:
           Competency Based Education. Explicitly make 
        students enrolled in certain competency based education 
        programs (programs focused on mastery of a skill 
        instead of time in a classroom) eligible for aid 
        (increased spending of $194 million over the 2018-2027 
        period);\5\
---------------------------------------------------------------------------
    \5\Under current law, competency-based programs must express a 
student's mastery of competencies in terms of clock hours of 
instruction or credit hours to participate in federal student aid.
---------------------------------------------------------------------------
           Liberal Arts. Allow proprietary schools to 
        offer new programs in liberal arts (increased spending 
        of $192 million over the 2018-2027 period);
           Ineligible Program Partnerships. Permit 
        institutions that are ineligible for title IV student 
        aid to provide 100 percent of the educational content 
        when those institutions partner with institutions that 
        are eligible for federal student aid (increased 
        spending of $167 million over the 2018-2027 period);\6\ 
        and
---------------------------------------------------------------------------
    \6\Any partnership in which the ineligible institution provides at 
least 25 percent of the educational content would need approval from 
the eligible institution's accreditor. Under current law, ineligible 
institutions are permitted to provide only 50 percent of educational 
content.
---------------------------------------------------------------------------
           Accrediting Agencies. Amend rules related to 
        accrediting agencies, including expanding the types of 
        organizations that are eligible to be accreditors, 
        replacing the standards accreditors use to assess an 
        institution's success, and extending the period from 18 
        months to 36 months that an institution may remain in 
        provisional accreditation status in the case where the 
        institution's accreditor loses federal recognition 
        (increased spending of $161 million over the 2018-2027 
        period).
    On the basis of research, discussions with accreditors and 
institutional officials, and data from the Department of 
Education, CBO estimates that by 2027, those policies in total 
would increase the number of Pell grant recipients by about 
90,000 (or about 1 percent) and increase student loan volume by 
$0.9 billion, not accounting for any interactions among the 
provisions.
    CBO estimates that those policies would increase direct 
spending by $714 million over the 2018-2027 period--$300 
million for student loans and $414 million for the Pell grants.

Grant amounts and student eligibility for federal aid

    H.R. 4508 would change some grant amounts that students 
could receive and alter some of the rules that govern student 
eligibility for grants and loans.
    Pell Grant Bonus. The bill would appropriate mandatory 
funds to provide up to $300 per academic year (or $150 per 
semester) to Pell grant recipients taking at least 15 credit 
hours, or the equivalent, per semester. Using data on 
applications for federal financial aid from the Department of 
Education and enrollment data from NPSAS, CBO estimates that 
about 40 percent of full-time Pell grant recipients are 
enrolled in 15 credits (about 2.6 million students in 2027) in 
any given semester and would be eligible for a $150 bonus. CBO 
expects that students would receive a smaller bonus if they 
were enrolled more than full time (typically 12 credit hours 
per semester) but for fewer than 15 credits, so long as they 
met other requirements. CBO estimates that in 2027 an 
additional 1.6 million Pell grant recipients would receive some 
portion of the bonus and that an additional 375,000 students 
would increase their credit hours to receive at least a partial 
bonus. By 2027, CBO estimates, approximately 10 percent of 
students who increased their hours would graduate one semester 
earlier than they would under current law, which would reduce 
spending for those students.
    On net, CBO estimates that providing the bonus would 
increase direct spending by $7.3 billion for Pell grants over 
the 2018-2027 period.
    Return of Title IV Aid. Under current law, aid recipients 
who finish 60 percent of a term, but then withdraw completely, 
are not required to repay any federal financial aid they have 
received for that term. If a student withdraws earlier, the 
student, the institution, or both must return a prorated 
portion of the aid. Students and schools are required to return 
student loan funds before returning Pell grant funds.
    H.R. 4508 would amend the rules for determining what 
federal student aid must be returned to the government. The 
schools, rather than schools and students, would be required to 
return federal aid for a student who failed to complete 100 
percent of an academic term. The bill also would increase the 
proportion of aid that must be returned in most cases, and 
would require unearned Pell grant funds to be returned before 
student loan funds.
    Using enrollment data from NPSAS, CBO estimates that 
enacting those provisions would decrease direct spending by 
$419 million over the 2018-2027 period. It would decrease the 
cost of the Pell grant mandatory add-on by $522 million (as 
more schools returned unearned Pell grant funds to the federal 
government) and increase direct spending for student loans by 
$103 million (as fewer schools returned unearned federal 
student loans to the government) over the same period, CBO 
expects.
    Ability to Benefit. Under current law, to be eligible for 
federal student aid, a student must have a high school diploma 
or its equivalent (typically a General Education Development 
certificate) or have successfully completed a homeschool 
program. H.R. 4508 would confer eligibility to students who 
have not met those criteria but who have successfully completed 
at least 6 credits of postsecondary education.
    Before 2011, students who did not meet the current criteria 
but who had successfully completed 6 postsecondary credits, 
passed an ability-to-benefit test, or completed a state-
administered process were eligible for federal student aid. 
Using data from federal financial aid applications for those 
students, CBO estimates that by 2027, enacting this provision 
would increase the number of Pell grant recipients by about 
30,000 students (or about 0.4 percent). Total student loans 
would increase by about $220 million in that same year, CBO 
projects. CBO estimates that enacting the provision would 
increase direct spending by $287 million over the 2018-2027 
period--$103 million for student loans and $184 million for 
Pell grants.
    Other Student Eligibility Changes. In addition to the above 
provisions, H.R. 4508 would make the following changes. Those 
provisions and CBO's estimated effects on spending are shown 
below:
           Selective Service. Eliminate the requirement 
        that all male students over 26 years old be registered 
        for the Selective Service (increased spending of $113 
        million over the 2018-2027 period);
           Cost of Attendance. Allow institutions to 
        set different costs of attendance for programs of study 
        with different modes of instruction (increased spending 
        of $38 million over the 2018-2027 period);
           Simplified Needs Test. Raise the maximum 
        level of adjusted gross income to qualify for a 
        ``simplified needs test'' to $100,000 (increased 
        spending of $35 million over the 2018-2027 period)\7\;
---------------------------------------------------------------------------
    \7\A ``simplified needs test'' means the student does not have to 
provide any asset information.
---------------------------------------------------------------------------
           529 Plans. Remove the value of 529 education 
        plans as assets for all applicants (increased spending 
        of $12 million over the 2018-2027 period); and
           Prevention of Fraud. Prohibit a student who 
        has received three Pell grants without earning any 
        credits from receiving any future Pell grants 
        (decreased spending of $45 million over the 2018-2027 
        period).
    On the basis of data from the Department of Education, 
research, and discussions with institutional officials, CBO 
estimates that those policies would increase direct spending by 
$153 million over the 2018-2027 period--$85 million for student 
loans and $68 million for Pell grants.
    Outlay Effects on Previous Appropriations for Pell Grants. 
The changes made in H.R. 4508 would increase the cost of the 
discretionary portion of the Pell grant program in award year 
2018-2019. Those changes would cause funding to spend more 
quickly than it would under current law. Because the Congress 
has already appropriated discretionary funds for that award 
year, that shift in spending would occur without additional 
Congressional action. CBO estimates that these changes would 
increase direct spending in 2018 by $87 million, but, on net, 
would not increase direct spending over the 2018-2027 period.

Interactions among provisions

    Each provision above was estimated separately relative to 
current law. However, there are interactions among the numerous 
provisions related to student loans and Pell grants included in 
H.R. 4508. For example, CBO expects that eliminating both the 
90/10 rule and the gainful-employment rule would result in a 
greater expansion in the proprietary sector than would 
eliminating each provision individually. That additional cost 
is included in the total increase in direct spending for 
programmatic interactions.
    The combined interaction among all the provisions related 
to student loans would increase direct spending for federal 
loans by $3.1 billion; among the provisions related to Pell 
grants, it would increase direct spending for Pell grants by 
$2.2 billion, CBO estimates.

TEACH grants

    H.R. 4508 would eliminate the TEACH Grant Program, which 
provides grants to students who plan on becoming teachers and 
meet certain criteria. About 30,000 students receive TEACH 
grants each academic year. On the basis of data from the 
Department of Education, CBO estimates that a majority of those 
students will fail to meet the requirements of the program and 
will thus have their grants converted to loans as the program 
requires. As a result, some savings from eliminating the 
disbursement of grants would be offset by reduced receipts from 
students repaying their grants to the federal government. CBO 
estimates that eliminating the TEACH Grant Program would 
decrease direct spending by $444 million over the 2018-2027 
period.

Fair-value estimating

    CBO's cost estimates of student loan provisions use the 
methodology specified in FCRA, but the Budget Resolution also 
requires CBO to include estimates on a fair-value basis using 
market-based discount rates. The value of borrowers' future 
repayments of loan principal and interest are worth less to the 
government under fair value than under FCRA, which makes the 
cost of the loan program look higher under fair value.
    Under fair-value estimating, enacting the federal student 
loan provisions in H.R. 4508 would increase direct spending by 
$0.5 billion in fiscal year 2018 but reduce direct spending by 
$3.8 billion over the 2018-2022 period and by $16.9 billion 
over the 2018-2027 period (see Table 4).
    When the provisions that affect direct spending for Pell 
and TEACH grants are included, under fair-value estimating, the 
bill would increase direct spending by $0.8 billion in 2018 and 
$0.6 billion over the 2018-2022 period but reduce direct 
spending by $5.1 billion over the 2018-2027 period.
    Federal One Loan Policies. The greatest differences between 
FCRA and fair-value estimates for the bill stem from the 
Federal One Loan Program. CBO projects that the changes to 
undergraduate student borrowing would save $18.5 billion over 
the 2019-2027 period under FCRA but only $10.6 billion using 
fair-value procedures. Most of that difference results from the 
difference in the costs of the unsubsidized loan program for 
undergraduate students under FCRA and fair value. CBO estimates 
that each $1 of unsubsidized loan volume in 2027 saves the 
federal government $0.01 under FCRA but costs $0.16 under fair 
value. As a result, the $5 billion increase in volume in the 
unsubsidized loan program in 2027 would save less than $0.1 
billion under FCRA but cost about $0.8 billion under fair value 
(not including changes in parent loan volume).

                                                    TABLE 4--ESTIMATED EFFECTS OF LOAN PROVISIONS IN H.R. 4508 USING FAIR VALUE, BY PROVISION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                          Outlays by fiscal year, in millions of dollars--
                                                                   -----------------------------------------------------------------------------------------------------------------------------
                                                                      2018      2019      2020      2021      2022      2023      2024      2025      2026      2027     2018-2022    2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING OUTLAYS
 
One Loan Program:
    Undergraduate Student Borrowing...............................         0      -160      -560      -860    -1,055    -1,225    -1,435    -1,660    -1,795    -1,855       -2,635      -10,605
    Graduate Student Borrowing....................................         0      -110      -240      -340      -400      -450      -505      -560      -590      -610       -1,090       -3,805
    Parent Borrowing..............................................         0        40       140       205       245       275       310       345       365       370          630        2,295
    Repayment Options.............................................         0    -1,050    -2,525    -3,465    -4,020    -4,525    -5,110    -5,680    -6,050    -6,315      -11,060      -38,740
    Origination Fees..............................................         0       355       905     1,285     1,510     1,710     1,940     2,160     2,300     2,395        4,055       14,560
Other Student Loan Changes:
    Borrower Defense to Repayment.................................       175       345       325       255       245       255       260       270       280       295        1,345        2,705
    Closed School Discharges......................................       -30       -70       -80       -80       -80       -85       -85       -90       -95      -100         -340         -795
    Rehabilitation Loans..........................................        50        50        50        50        50        50        50        50        50        50          250          500
    Funds to Administer Loan Program..............................         0        27        16         5         2         0         0         0         0         0           50           50
    Foreign Schools...............................................         1         3         5        10        10        15        20        20        20        25           29          129
    Parent Loans and IDR..........................................        -8        -4        -4        -4        -4        -4        -3        -3        -3        -3          -24          -40
    Data Match to Determine Disability Discharges.................        10         1         1         1         1         1         1         1         1         1           14           19
Institutional Eligibility for Federal Aid:
    Distance Education............................................         5        55       135       240       375       505       630       735       800       845          810        4,325
    90/10 Rule....................................................        35       145       240       290       305       310       320       330       340       350        1,015        2,665
    Short-Term Programs...........................................         5        20        25        30        30        35        35        40        40        40          110          300
    Gainful Employment............................................        10        40        65        75        75        75        80        80        80        85          265          665
    Loan Repayment Rate...........................................        -5       -10       -10       -35       -45       -35       -35       -40       -40       -40         -105         -295
    Competency Based Education....................................         5        15        20        25        30        40        50        60        65        75           95          385
    Liberal Arts..................................................         *        10        15        30        30        35        35        35        35        40           85          265
    Ineligible Program Partnerships...............................         *         3         5         5        10        20        25        35        50        80           23          233
    Accrediting Agencies..........................................       -15        20        20        15        15        15        15        15        20        20           55          140
Student Eligibility for Federal Aid:
    Return of Title IV Aid........................................        10        25        25        25        25        30        30        30        30        30          110          260
    Ability to Benefit............................................        20        35        40        40        40        45        45        45        50        50          175          410
    Selective Service.............................................         5        15        15        15        15        15        15        20        20        20           65          155
    Cost of Attendance............................................       -15       -30       -30       -30       -35       -35       -35       -35       -35       -35         -140         -315
    Simplified Needs Test.........................................         *         *         *         *         *         *         *         *         *         *            *            *
    529 Plans.....................................................         1         1         1         1         1         1         1         1         1         1            5           10
Interactions:
    Interactions..................................................       216       254       426       717       800       847       941     1,036     1,151     1,281        2,413        7,669
Federal Student Loans, Total......................................       475        25      -975    -1,495    -1,825    -2,080    -2,405    -2,760    -2,910    -2,905       -3,795      -16,855
Pell Grants, Totala...............................................       309     1,007       807     1,175     1,307     1,407     1,469     1,525     1,566     1,604        4,605       12,176
TEACH Grants, Totala..............................................        -8       -38       -65       -74       -67       -51       -36       -35       -35       -35         -252         -444
    Total, Direct Spending........................................       776       994      -233      -394      -585      -724      -972    -1,270    -1,379    -1,336          558       -5,123
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Estimates are relative to CBO's June 2017 baseline. Components may not sum to totals because of rounding. Provisions with a negligible impact on direct spending are not included in this table.
  * = between -$500,000 and $500,000; IDR = Income-Driven Repayment; TEACH Teacher Education Assistance for College and Higher Education Grant Program.
aFor details on these budgetary effects see Table 3.

    In 2027, CBO estimates that $1 of loan volume in the 
GradPLUS program saves the federal government $0.08 under FCRA 
but costs $0.10 under fair value. As a result, the proposal to 
eliminate borrowing in the GradPLUS program and replace only 
some of that borrowing with lending in the unsubsidized loan 
program would increase direct spendingby $3.3 billion under 
FCRA but would save $3.8 billion over the 2019-2027 period under fair 
value-estimating procedures, CBO estimates.
    In addition, in 2027, CBO estimates, $1 of loan volume in 
the parent loan program will save the federal government $0.28 
under FCRA but only $0.14 under fair value. As a result, the 
provisions to cap borrowing for parents would increase direct 
spending by $5.9 billion over the 2019-2027 period under FCRA 
and by $2.3 billion under fair value, CBO estimates.
    Institutional Eligibility for Federal Aid. CBO expects that 
all of the policies that affect institutional eligibility, 
other than the loan repayment rate, would increase the annual 
volume of federal student loans. Because the cost of additional 
lending in the student loan programs is higher under fair-value 
accounting than under FCRA, the policies that expand 
institutional eligibility increase direct spending more under 
fair value. For example, CBO estimates that the provision to 
repeal the definition of distance education would increase 
direct spending by $0.9 billion under FCRA and by $4.3 billion 
under fair-value estimating.
    Basis of Estimate for Spending Subject to Appropriation: 
For this estimate, CBO assumes that the bill will be enacted by 
July 1, 2018, and that the necessary funds will be appropriated 
each year. As shown in Table 5, CBO estimates that implementing 
H.R. 4508 would authorize the appropriation of $112.0 billion 
over 2018-2022 period. On the basis of historical spending 
patterns, CBO estimates that implementing H.R. 4508 would cost 
$87.5 billion over the same period.

Title IV, Pell Grants

    The Federal Pell Grant Program is by far the largest 
discretionary grant program authorized by the HEA. (The program 
also receives mandatory funding.) This section discusses only 
the discretionary part of the program.
    Although the maximum student award under the discretionary 
program is set each year in the appropriation act, for this 
estimate, CBO assumes that the maximum award that is funded 
with discretionary spending would be $4,860 in each year over 
the 2018-2027 period. CBO estimates that the authorization for 
the Pell program would total $88.9 billion over the 2018-2022 
period and that outlays would total $69.9 billion.

                              TABLE 5--SPENDING SUBJECT TO APPROPRIATION, BY TITLE
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2018      2019      2020      2021      2022    2018-2022
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Title IV, Pell Grantsa:
    Estimated Authorization Level..................       322    14,017    23,910    24,962    25,679     88,891
    Estimated Outlays..............................        87     4,016    16,551    24,095    25,145     69,895
Other Grant Programs:
Title IV, Federal Student Aid and Support:
    Estimated Authorization Level..................         0     4,642     4,678     4,716     4,753     18,789
    Estimated Outlays..............................         0     1,115     4,032     4,512     4,729     14,388
Title II, Apprenticeship Grant Program:
    Authorization Level............................         0       183       183       183       183        733
    Estimated Outlays..............................         0        10       134       167       183        493
Title III, Minority-Serving Institutions and HBCUS:
    Authorization Level............................         0       396       396       396       396      1,585
    Estimated Outlays..............................         0        21       289       360       396      1,066
Title V, Hispanic-Serving Institutions:
    Authorization Level............................         0       117       117       117       117        470
    Estimated Outlays..............................         0         6        86       107       117        316
Title VI, International Education and Foreign
 Languages:
    Authorization Level............................         0        62        62        62        62        246
    Estimated Outlays..............................         0         3        45        56        62        166
Title VII, Graduate and Postsecondary Studies:
    Authorization Level............................         0        47        47        47        47        189
    Estimated Outlays..............................         0         2        35        43        47        127
Education for the Deaf Act:
    Authorization Level............................         0       191       191       191       191        765
    Estimated Outlays..............................         0       180       191       191       191        754
Tribally Controlled Colleges and Universities
 Assistance Act:
    Authorization Level............................         0        78        78        78        78        314
    Estimated Outlays..............................         0        59        77        78        78        292
    Total Changes:
        Estimated Authorization Level..............       322    19,734    29,663    30,754    31,508    111,982
        Estimated Outlays..........................        87     5,412    21,439    29,610    30,950     87,498
----------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
aFor more detail, see Table 6.

    Reauthorization. H.R. 4508 would authorize the 
appropriation of such sums as may be necessary for the Pell 
grant program for fiscal years 2019 through 2024. That 
authorization would be extended automatically through 2025 
under GEPA. As shown in Table 6, CBO estimates that 
reauthorizing the program with no other changes would authorize 
the appropriation of $83 billion over the 2018-2022 period and 
that implementing the bill would cost $65 billion over the same 
period. (The estimated cost of this reauthorization represents 
the cost of the discretionary program, assuming a maximum award 
of $4,860, less previously appropriated funds and mandatory 
funds that support the discretionary portion of the Pell grant 
program provided in section 401(b)7(A)(iv) of the Higher 
Education Act of 1965.)
    Policy Changes. H.R. 4508 would make several changes to 
student and institutional eligibility for the Pell grant 
program. Detailed descriptions of the major provisions and 
CBO's methodology for estimating the costs are discussed in the 
``Basis of Estimate for Direct Spending'' section.
    CBO estimates that the total cost of implementing those 
policies would be $4.6 billion over the 2018-2022 period, as 
shown in Table 6.

Other grant programs

    H.R. 4508 would amend and authorize several other 
discretionary grant programs under several titles of the HEA 
and amend provisions in other education laws. Unless otherwise 
noted, the bill would authorize the appropriation of the same 
funding level for each fiscal year from 2019 through 2024, and 
that authorization would automatically be extended through 2025 
under the General Education Provisions Act.
    Title IV, Federal Student Aid and Student Support. In 
addition to the changes in the Pell grant program, the bill 
would amend and authorize the appropriation of $18.8 billion 
over the 2019-2022 period for the following federal student aid 
and student support programs:
    Campus-Based Aid Programs--H.R. 4508 would authorize the 
appropriation of $1.7 billion for Federal Work-Study, which 
funds part-time jobs for students, and repeal the Federal 
Supplemental Education Opportunity Grant Program (FSEOG). The 
Congress appropriated $1.0 billion for work-study and about 
$0.7 billion for FSEOG in 2017.
    TRIO Programs--The bill would authorize the appropriation 
of $900 million for the TRIO programs (including, for example, 
Upward Bound), which provide counseling and other outreach 
services to students from disadvantaged backgrounds. The 
Congress appropriated $950 million for TRIO in 2017.

                      TABLE 6--ESTIMATED EFFECTS OF H.R. 4508 ON DISCRETIONARY PELL GRANTS
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2018      2019      2020      2021      2022    2018-2022
----------------------------------------------------------------------------------------------------------------
                         INCREASES OR DECREASES (-) IN SPENDING SUBJECT TO APPROPRIATION
 
Reauthorizationa:
    Reauthorization:
        Estimated Authorization Level..............         0    13,217    22,625    23,325    23,698     82,865
        Estimated Outlays..........................         0     3,569    15,625    22,720    23,419     65,333
Policy Changes:
    Institutional Eligibility for Federal Aid:
        Distance Education:
            Estimated Authorization Level..........        17        90       168       292       426        994
            Estimated Outlays......................         5        37       110       201       327        680
        90/10 Rule:
            Estimated Authorization Level..........       141       286       397       448       455      1,726
            Estimated Outlays......................        38       178       314       410       449      1,390
        Short-Term Programs:
            Estimated Authorization Level..........        90       105       119       138       151        603
            Estimated Outlays......................        24        93       108       124       141        491
        Gainful Employment:
            Estimated Authorization Level..........        52        93       127       146       148        565
            Estimated Outlays......................        14        62       101       131       146        455
        Loan Repayment Rate:
            Estimated Authorization Level..........         0         0         0      -139       -55       -194
            Estimated Outlays......................         0         0         0       -37      -115       -152
        Competency Based Education:
            Estimated Authorization Level..........        20        33        39        47        57        196
            Estimated Outlays......................         5        23        35        41        50        154
        Liberal Arts:
            Estimated Authorization Level..........         2        17        35        46        47        148
            Estimated Outlays......................         1         6        22        38        46        113
        Ineligible Program Partnerships:
            Estimated Authorization Level..........         2         5         8        14        20         49
            Estimated Outlays......................         *         2         5        10        16         33
        Accrediting Agencies:
            Estimated Authorization Level..........       138       101        68        48        31        387
            Estimated Outlays......................        37       127        93        63        44        363
Student Eligibility for Federal Aid:
    Return of Title IV:
        Estimated Authorization Level..............      -228      -203      -192      -195      -199     -1,016
        Estimated Outlays..........................       -62      -219      -200      -193      -196       -869
    Ability to Benefit:
        Estimated Authorization Level..............        37        56        76        78        79        327
        Estimated Outlays..........................        10        42        62        77        78        268
    Selective Service:
        Estimated Authorization Level..............         8        32        33        33        34        139
        Estimated Outlays..........................         2        14        32        33        33        114
    Cost of Attendance:
        Estimated Authorization Level..............         *         *         *         *         *          *
        Estimated Outlays..........................         *         *         *         *         *          *
    Simplified Needs Test:
        Estimated Authorization Level..............         9        12        13        16        16         66
        Estimated Outlays..........................         2         9        12        14        16         54
    529 Plans:
        Estimated Authorization Level..............         1         1         1         1         1          6
        Estimated Outlays..........................         *         1         1         1         1          5
    Prevention of Fraud:
        Estimated Authorization Level..............       -17       -17       -17       -18       -18        -86
        Estimated Outlays..........................        -5       -17       -17       -17       -18        -73
Interactions:
    Interactions:
        Estimated Authorization Level..............        50       188       409       682       788      2,117
        Estimated Outlays..........................        14        87       247       480       708      1,536
Subtotal Costs of Policy Changes:
    Estimated Authorization Level..................       322       800     1,285     1,637     1,982      6,026
    Estimated Outlays..............................        87       448       926     1,375     1,727      4,563
Total Costs of Reauthorization and Policy Changes:
    Estimated Authorization Level..................       322    14,017    23,910    24,962    25,679     88,891
    Estimated Outlays..............................        87     4,016    16,551    24,095    25,145     69,895
----------------------------------------------------------------------------------------------------------------
* = Between zero and $500,000. Components may not sum to totals because of rounding. Provisions with a
  negligible effect on spending subject to appropriation are not included in this table.
aRepresents the cost of the discretionary program, assuming a maximum award of $4,860, less previously
  appropriated funds and mandatory funds that support the discretionary portion of the Pell grant program
  provided in section 401(b)7(A)(iv) of the Higher Education Act of 1965.

    Student Aid Administration--The bill also would authorize 
the appropriation of such sums as may be necessary for fiscal 
years 2019 through 2024 to help administer the federal student 
aid programs. Based on funding for student aid administration 
in 2017, and accounting for future inflation, CBO estimates 
that this provision would authorize the appropriation of $1.6 
billion in 2019. That authorization would increase annually 
through 2022 because of expected inflation and CBO estimates 
that implementing it would cost $5.6 billion over the 2019-2022 
period.
    Other Title IV Programs--Title IV also would authorize the 
appropriation of $400 million for grant programs to help low-
income students in middle and high school prepare for college, 
provide campus-based child care for low-income college 
students, and assist migrant students. That funding level is 
unchanged from fiscal year 2017.
    Title II, Apprenticeship Grant Program. The bill would 
authorize the appropriation of $183 million for a new 
initiative to fund apprenticeship programs run jointly by 
postsecondary institutions and private industry. CBO estimates 
that implementing this title would cost about $500 million over 
the 2019-2022 period. The bill would repeal Teacher Quality 
Partnership grants. The underlying authorization for that 
program has expired, but it received $43 million in fiscal year 
2017.
    Title III, Minority-Serving Institutions and Historically 
Black Colleges and Universities. H.R. 4508 would amend grant 
programs for those institutions and for science, technology, 
education, and mathematics (or STEM) programs. Title III would 
authorize the appropriation of $396 million, the same amount 
that the Congress appropriated for such programs in 2017. CBO 
estimates that implementing this title would cost $1.1 billion 
over the 2019-2022 period. The bill would not authorize funding 
for grants for the Strengthening Institutions Program. The 
underlying authorization for that program has expired, but it 
received $87 million in 2017.
    Title V, Hispanic-Serving Institutions. H.R. 4508 would 
amend two grant programs for Hispanic-Serving Institutions and 
authorize the appropriation of $117 million, the same amount 
appropriated for those programs in 2017. CBO estimates that 
implementing this title would cost about $320 million over the 
2019-2022 period.
    Title VI, International Education and Foreign Languages. 
The bill would amend grant programs for international education 
and foreign language studies and authorize the appropriation of 
$62 million a year. CBO estimates that implementing this 
provision would cost about $170 million over the 2019-2022 
period. The Congress appropriated $65 million for those 
programs in 2017.
    Title VII, Graduate and Postsecondary Studies. The bill 
would amend grant programs for graduate students and for 
postsecondary students with intellectual disabilities and would 
authorize the appropriation of $47 million a year, the same 
amount as in fiscal year 2017. CBO estimates that implementing 
those provisions would cost about $130 million over the 2019-
2022 period.
    Education for the Deaf Act. H.R. 4508 would amend the 
Education for the Deaf Act and authorize the appropriation of 
$121 million for Gallaudet University and $70 million for the 
National Technical Institute for the Deaf, the same amounts as 
in 2017. CBO estimates that implementing those provisions would 
cost about $750 million over the 2019-2022 period.
    Tribally Controlled Colleges and Universities Assistance 
Act. The bill would amend this act and authorize the 
appropriation of $78 million each year for 2019 through 2024 
for grant programs at the Bureau of Indian Education at the 
Department of the Interior (DOI). (The automatic extension 
under GEPA does not apply to programs at DOI.) The Congress 
appropriated the same amount for those programs in 2017. CBO 
estimates that implementing those provisions would cost about 
$290 million over the 2019-2022 period.
    Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 7.

                  TABLE 7--CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 4508, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON EDUCATION AND THE WORKFORCE ON DECEMBER 13, 2017
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      By fiscal year, in millions of dollars
                                                 -----------------------------------------------------------------------------------------------------------------------------------------------
                                                     2018        2019        2020        2021        2022        2023        2024        2025        2026        2027      2018-2022   2018-2027
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           NET INCREASE OR DECREASE (-) IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact                          551         669        -823      -1,169      -1,460      -1,759      -2,172      -2,600      -2,824      -2,976      -2,232     -14,563
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase In Long-term Direct Spending and Deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2028.
    Uncertainty Surrounding the Estimates: CBO has endeavored 
to develop budgetary estimates that are in the middle of the 
distribution of potential outcomes. Such estimates are inexact 
for various reasons. For example, the ways in which 
institutions of higher education, federal agencies, and states 
would respond to the changes made by this legislation are all 
difficult to predict. In particular, predicting the overall 
effects of changes to institutional eligibility, such as the 
repeal of the 90/10 rule and the definition of distance 
education, is especially difficult.
    CBO projections under current law itself also are 
uncertain. For example, the first cohort of student loan 
borrowers only became eligible for Public Sector Loan 
Forgiveness in 2017 and data about future participants is 
limited. Thus, CBO's estimates of future participation, and the 
resulting savings for eliminating that program, may be too high 
or too low.
    In addition, changes to the underlying economy could have a 
dramatic effect on the estimated costs of this legislation. 
Fluctuations in interest rates would change CBO's projections 
of the cost of the student loan program and a sudden rise in 
unemployment could have a dramatic effect on postsecondary 
enrollment, which would increase the cost of all federal 
student aid.
    Despite the uncertainty, CBO believes the direction of the 
budgetary effects of most proposals in the bill is clear. For 
example, the changes to the federal student loan program would, 
on net, almost surely reduce the costs of this program to the 
federal government. Changes to student and institutional 
eligibility would almost certainly increase overall enrollment 
in higher education, which CBO expects would increase costs in 
the Pell grant program.
    Mandates: Section 4 of the Unfunded Mandates Reform Act 
excludes from the application of that act any legislative 
provisions that would enforce constitutional rights of 
individuals. CBO has determined that sections 111, 115, and 117 
fall within that exclusion because they would enforce the 
rights of free speech and religion. None of the remaining 
provisions of the bill would impose intergovernmental or 
private-sector mandates as defined in UMRA. The bill would 
benefit public and private educational institutions by granting 
them more flexibility to design curricula and oversee students' 
educational and financial welfare. The bill would amend or 
impose a number of requirements on educational institutions and 
governments that receive federal funds; however, those 
requirements and any resulting costs would be conditions of 
assistance, which are not considered mandates as defined in 
UMRA.
    Additional Information by Program:

Changes in program costs and participation in the Pell Grant Program

    Table 8 summarizes CBO's estimated changes to the overall 
cost of the Pell grant program, given all the policies in H.R. 
4508, as well as CBO's expected changes in the number of Pell 
grant recipients. (CBO assumes a discretionary award of $4,860 
for all future years and a mandatory add-on of $1,060.)

                                         TABLE 8--PELL GRANT PROGRAM COSTS; CBO JUNE 2017 BASELINE VS. H.R. 4508
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By award year, in billions of dollars
                                                   -----------------------------------------------------------------------------------------------------
                                                     2018    2019    2020    2021    2022    2023    2024    2025    2026    2027   2018-2022  2018-2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  INCREASES IN PELL GRANT PROGRAM COSTS AND RECIPIENTS
 
Estimated Program Costs Under CBO June Baseline:
    Discretionary.................................    23.2    23.6    24.1    24.5    24.8    25.2    25.6    26.1    26.5    27.1     120.2      250.8
    Mandatory Add-On..............................     6.1     6.2     6.4     6.5     6.6     6.7     6.8     6.9     7.0     7.2      31.7       66.3
        Total Program Costs.......................    29.3    29.8    30.4    31.0    31.4    31.9    32.4    33.0    33.6    34.2     152.0      317.1
Estimated Costs of H.R. 4508:
    Discretionary.................................     0.3     0.8     1.3     1.6     2.0     2.2     2.4     2.6     2.8     3.0       6.0       19.1
    Mandatory Add-On..............................     0.8     1.0     1.1     1.3     1.4     1.5     1.5     1.6     1.6     1.6       5.6       13.4
        Total Program Costs.......................     1.1     1.8     2.4     2.9     3.4     3.6     3.9     4.2     4.4     4.7      11.7       32.5
Estimated Program Costs Under H.R. 4508:
    Discretionary.................................    23.6    24.4    25.3    26.1    26.8    27.4    28.1    28.7    29.3    30.1     126.3      269.9
    Mandatory Add-On..............................     6.9     7.2     7.5     7.8     8.0     8.1     8.3     8.4     8.6     8.8      37.4       79.7
        Total Program Costs.......................    30.5    31.6    32.9    33.9    34.8    35.5    36.3    37.1    37.9    38.9     163.6      349.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
                          Memorandum: Changes in the Number of Pell Grant Recipients, by Award Year, in Thousands of Recipients
 
                                                        Estimated Number of Pell Grant Recipients
 
    CBO June 2017 Baseline........................   7,500   7,700   7,800   7,900   8,100   8,200   8,300   8,500   8,600   8,800
    Increases from H.R. 4508......................     200     300     500     600     700     800     900     900   1,000   1,100
        Total under H.R. 4508.....................   7,700   8,000   8,300   8,500   8,800   9,000   9,200   9,400   9,600   9,900
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO assumes the maximum discretionary award will be $4,860 and that the mandatory add-on will be $1,060 for all years, Components may not sum to totals
  because of rounding, Award year means July 1 of the first year to June 30 of the following year.

    In total, H.R. 4508 would increase costs to the Pell 
program by $12 billion over five years, and by $32 billion over 
10 years. About 60 percent of that cost can be attributed to 
the discretionary award. CBO expects the number of recipients 
to increase over the 10 year period, and by 2027, CBO estimates 
an additional 1.1 million new Pell recipients (or a 13 percent 
increase) because of changes to institutional and student 
eligibility in H.R. 4508.

Changes in costs and lending in the federal student loan program

    Table 9 summarizes CBO's estimated changes to the overall 
cost of and volume in the federal student loan program for 
fiscal year 2027, given all the policies in H.R. 4508. CBO 
estimates that those changes would increase total lending by 
almost $4 billion and decrease the cost of each dollar loaned 
by about $0.03 in 2027.

                              TABLE 9--FEDERAL STUDENT LOAN PROGRAM: CBO JUNE 2017 BASELINE VS. H.R. 4508, FISCAL YEAR 2027
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       Unsubsidized    Unsubsidized                            All Loans
                                                                   Subsidized Loans        Loans           Loans       GradPLUS   PLUS Loans     (All
                                                                   (Undergraduates)  (Undergraduates)   (Graduates)  (Graduates)   (Parents)  Borrowers)
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO June Baseline Estimated Loan Volume and Costs, 2027
    Volumea......................................................         31,186            32,403          40,314        17,091      17,960     138,953
    Subsidy Rateb................................................          $0.10            -$0.01          -$0.06        -$0.08      -$0.28      -$0.04
Changes in H.R. 4508
    Volumea......................................................        -31,186            43,158          12,460       -17,091      -3,484       3,858
    Subsidy Rateb................................................         -$0.10             $0.00          -$0.06         $0.08       $0.05      -$0.03
Estimated Loan Volume and Costs Under H.R. 4508, 2027
    Volumea......................................................              0            75,561          52,774             0      14,476     142,811
    Subsidy Rateb................................................          $0.00            -$0.01          -$0.13        -$0.00      -$0.23      -$0.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
Components may not sum to totals because of rounding.
a Volume in millions of dollars.
b The subsidy rate is the cost or savings to the federal government for each dollar lent.

    CBO expects that lending to undergraduate students would 
increase, on net, by $12 billion, mostly because of increases 
in loan limits for unsubsidized loans and because of increased 
enrollment due to changes to institutional eligibility. Loans 
to undergraduates would be less expensive to the federal 
government, mostly because of the elimination of the subsidized 
loan program.
    CBO projects that lending to graduate students would 
decrease, on net, by about $5 billion, mostly because of the 
elimination of the GradPLUS program. Loans to graduate students 
would also be less expensive to the federal government, 
primarily because of the elimination of PSLF and changes to 
IDR.
    Finally, CBO expects that lending to parents would drop by 
about $3 billion in 2027 because of the new caps on borrowing 
for parents. Those loans would be more expensive to the federal 
government, mainly because of the elimination of the 
origination fee parents currently pay on loans.
    Estimate Prepared By: Federal Costs: Justin Humphrey and 
Leah Koestner; Mandates: Zachary Byrum.
    Estimate Approved By: H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 4508. 
However, clause 3(d)(2)(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 (new matter is 
printed in italic and 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, and existing law in which no 
change is proposed is shown in roman):

                      HIGHER EDUCATION ACT OF 1965


   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 ``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, or persons who meet the 
        requirements of section 484(d);
          [(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, or awards a degree that is 
        acceptable for admission to a graduate or professional 
        degree program, subject to review and approval by the 
        Secretary;
          [(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 individuals--
                  [(A) who are beyond the age of compulsory 
                school attendance in the State in which the 
                institution is located; or
                  [(B) who will be dually or concurrently 
                enrolled in the institution and a secondary 
                school.
  [(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 D 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 D of title IV, consistent with 
                the requirements of section 452(d).
          [(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, nursing 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 
                under part D of title IV unless--
                          [(i) except as provided in 
                        subparagraph (B)(iii)(IV), 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 D of title 
                                IV; and
                                  [(bb) at least 75 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 D of title IV; 
                                or
                                  [(II) the institution--
                                          [(aa) has or had a 
                                        clinical training 
                                        program that was 
                                        approved by a State as 
                                        of January 1, 1992; and
                                          [(bb) continues to 
                                        operate a clinical 
                                        training program in at 
                                        least one State that is 
                                        approved by that State;
                          [(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; or
                          [(iii) in the case of a nursing 
                        school located outside of the United 
                        States--
                                  [(I) the nursing school has 
                                an agreement with a hospital, 
                                or accredited school of nursing 
                                (as such terms are defined in 
                                section 801 of the Public 
                                Health Service Act (42 U.S.C. 
                                296)), located in the United 
                                States that requires the 
                                students of the nursing school 
                                to complete the students' 
                                clinical training at such 
                                hospital or accredited school 
                                of nursing;
                                  [(II) the nursing school has 
                                an agreement with an accredited 
                                school of nursing located in 
                                the United States providing 
                                that the students graduating 
                                from the nursing school located 
                                outside of the United States 
                                also receive a degree from the 
                                accredited school of nursing 
                                located in the United States;
                                  [(III) the nursing school 
                                certifies only Federal Direct 
                                Stafford Loans under section 
                                455(a)(2)(A), Federal Direct 
                                Unsubsidized Stafford Loans 
                                under section 455(a)(2)(D), or 
                                Federal Direct PLUS Loans under 
                                section 455(a)(2)(B) for 
                                students attending the 
                                institution;
                                  [(IV) the nursing school 
                                reimburses the Secretary for 
                                the cost of any loan defaults 
                                for current and former students 
                                included in the calculation of 
                                the institution's cohort 
                                default rate during the 
                                previous fiscal year; and
                                  [(V) not less than 75 percent 
                                of the individuals who were 
                                students or graduates of the 
                                nursing school, and who took 
                                the National Council Licensure 
                                Examination for Registered 
                                Nurses in the year preceding 
                                the year for which the 
                                institution is certifying a 
                                Federal Direct Stafford Loan 
                                under section 455(a)(2)(A), a 
                                Federal Direct Unsubsidized 
                                Stafford Loan under section 
                                455(a)(2)(D), or a Federal 
                                Direct PLUS Loan under section 
                                455(a)(2)(B), received a 
                                passing score on such 
                                examination.
                  [(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.
                          [(iii) Report.--
                                  [(I) In general.--Not later 
                                than 1 year after the date of 
                                enactment of the Higher 
                                Education Opportunity Act, the 
                                advisory panel described in 
                                clause (i) shall submit a 
                                report to the Secretary and to 
                                the authorizing committees 
                                recommending eligibility 
                                criteria for participation in 
                                the loan programs under part D 
                                of title IV for graduate 
                                medical schools that--
                                          [(aa) are located 
                                        outside of the United 
                                        States;
                                          [(bb) do not meet the 
                                        requirements of 
                                        subparagraph (A)(i); 
                                        and
                                          [(cc) have a clinical 
                                        training program 
                                        approved by a State 
                                        prior to January 1, 
                                        2008.
                                  [(II) Recommendations.--In 
                                the report described in 
                                subclause (I), the advisory 
                                panel's eligibility criteria 
                                shall include recommendations 
                                regarding the appropriate 
                                levels of performance for 
                                graduate medical schools 
                                described in such subclause in 
                                the following areas:
                                          [(aa) Entrance 
                                        requirements.
                                          [(bb) Retention and 
                                        graduation rates.
                                          [(cc) Successful 
                                        placement of students 
                                        in United States 
                                        medical residency 
                                        programs.
                                          [(dd) Passage rate of 
                                        students on the United 
                                        States Medical 
                                        Licensing Examination.
                                          [(ee) The extent to 
                                        which State medical 
                                        boards have assessed 
                                        the quality of such 
                                        school's program of 
                                        instruction, including 
                                        through on-site 
                                        reviews.
                                          [(ff) The extent to 
                                        which graduates of such 
                                        schools would be unable 
                                        to practice medicine in 
                                        1 or more States, based 
                                        on the judgment of a 
                                        State medical board.
                                          [(gg) Any areas 
                                        recommended by the 
                                        Comptroller General of 
                                        the United States under 
                                        section 1101 of the 
                                        Higher Education 
                                        Opportunity Act.
                                          [(hh) Any additional 
                                        areas the Secretary may 
                                        require.
                                  [(III) Minimum eligibility 
                                requirement.--In the 
                                recommendations described in 
                                subclause (II), the criteria 
                                described in subparagraph 
                                (A)(i)(I)(bb), as amended by 
                                section 102(b) of the Higher 
                                Education Opportunity Act, 
                                shall be a minimum eligibility 
                                requirement for a graduate 
                                medical school described in 
                                subclause (I) to participate in 
                                the loan programs under part D 
                                of title IV.
                                  [(IV) Authority.--The 
                                Secretary may--
                                          [(aa) not earlier 
                                        than 180 days after the 
                                        submission of the 
                                        report described in 
                                        subclause (I), issue 
                                        proposed regulations 
                                        establishing criteria 
                                        for the eligibility of 
                                        graduate medical 
                                        schools described in 
                                        such subclause to 
                                        participate in the loan 
                                        programs under part D 
                                        of title IV based on 
                                        the recommendations of 
                                        such report; and
                                          [(bb) not earlier 
                                        than one year after the 
                                        issuance of proposed 
                                        regulations under item 
                                        (aa), issue final 
                                        regulations 
                                        establishing such 
                                        criteria for 
                                        eligibility.
                  [(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 D 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 D of title IV 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 
                (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 Career 
                and Technical Education Act of 2006;
                  [(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 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)(i) provides an eligible program of 
                training to prepare students for gainful 
                employment in a recognized occupation; or
                  [(ii)(I) provides a program leading to a 
                baccalaureate degree in liberal arts, and has 
                provided such a program since January 1, 2009; 
                and
                  [(II) is accredited by a recognized regional 
                accrediting agency or association, and has 
                continuously held such accreditation since 
                October 1, 2007, or earlier;
                  [(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; 
                and
                  [(E) has been in existence for at least 2 
                years.
          [(2) Additional institutions.--The term ``proprietary 
        institution of higher education'' also includes a 
        proprietary educational institution in any State that, 
        in lieu of the requirement in section 101(a)(1), admits 
        as regular students individuals--
                  [(A) who are beyond the age of compulsory 
                school attendance in the State in which the 
                institution is located; or
                  [(B) who will be dually or concurrently 
                enrolled in the institution and a secondary 
                school.
  [(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 section 101(a)(1), admits as 
        regular students individuals--
                  [(A) who are beyond the age of compulsory 
                school attendance in the State in which the 
                institution is located; or (B) who will be 
                dually or concurrently enrolled in the 
                institution and a secondary school.]

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 persons who--
                  (A) have a certificate of graduation from a 
                school providing secondary education, or the 
                recognized equivalent of such a certificate, or 
                who meet the requirements of section 484(d);
                  (B) are beyond the age of compulsory school 
                attendance in the State in which the 
                institution is located; or
                  (C) will be dually or concurrently enrolled 
                in the institution and a secondary school;
          (2) is legally authorized by the State in which it 
        maintains a physical location 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 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; and
          (4) provides--
                  (A) an educational program for which the 
                institution awards a bachelor's degree, 
                graduate degree, or professional degree;
                  (B) not less than a 2-year educational 
                program which is acceptable for full credit 
                towards a bachelor's degree; or
                  (C) a non-degree program leading to a 
                recognized educational credential that meets 
                the definition of an eligible program under 
                section 481(b).
  (b) Additional Limitations.--
          (1) Proprietary institutions of higher education.--
                  (A) Length of existence.--A proprietary 
                institution shall not be considered an 
                institution of higher education unless such 
                institution has been in existence for at least 
                2 years.
                  (B) Institutional ineligibility for minority 
                serving institution programs.--A proprietary 
                institution shall not be considered an 
                institution of higher education for the 
                purposes of any program under title III or V.
          (2) Postsecondary vocational institutions.--A 
        nonprofit or public institution that offers only non-
        degree programs described in subsection (a)(4)(C) shall 
        not be considered 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 an institution of higher 
        education 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; 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 
                funds, or has been judicially determined to 
                have committed a crime involving the 
                acquisition, use, or expenditure involving 
                Federal funds.
          (4) Limitation on course of study or enrollment.--An 
        institution shall not be considered an institution of 
        higher education if such institution--
                  (A) offers more than 50 percent of such 
                institution's courses by correspondence 
                education, unless the institution is an 
                institution that meets the definition in 
                section 3(3)(C) of the Carl D. Perkins Career 
                and Technical Education Act of 2006;
                  (B) enrolls 50 percent or more of the 
                institution's students in correspondence 
                education courses, unless the institution is an 
                institution that meets the definition in 
                section 3(3)(C) of such Act;
                  (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 an associate's 
                degree or a postsecondary certificate, or a 
                bachelor's degree, respectively; or
                  (D) has a student enrollment in which more 
                than 50 percent of the students either do not 
                have a secondary school diploma or its 
                recognized equivalent, or do not meet the 
                requirements of section 484(d), 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 have 
                a secondary school diploma or its recognized 
                equivalent or do not meet the requirements of 
                section 484(d).
  (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 
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 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.
  (f) Rule of Construction.--Nothing in subsection (a)(2) 
relating to State authorization shall be construed to--
          (1) impede or preempt State laws, regulations, or 
        requirements on how States authorize out-of-state 
        institutions of higher education; or
          (2) limit, impede, or preclude a State's ability to 
        collaborate or participate in a reciprocity agreement 
        to permit an institution within such State to meet any 
        other State's authorization requirements for out-of-
        state institutions.

SEC. 102. INSTITUTIONS OUTSIDE THE UNITED STATES.

  (a) Institutions Outside the United States.--
          (1) In general.--Only for purposes of part D or E of 
        title IV, the term ``institution of higher education'' 
        includes an institution outside the United States 
        (referred to in this part as a ``foreign institution'') 
        that is comparable to an institution of higher 
        education as defined in section 101 and has been 
        approved by the Secretary for purposes of part D or E 
        of title IV, consistent with the requirements of 
        section 452(d).
          (2) Qualifications.--Only for the purposes of 
        students receiving aid under title IV, an institution 
        of higher education may not qualify as a foreign 
        institution under paragraph (1), unless such 
        institution--
                  (A) is legally authorized to provide an 
                educational program beyond secondary education 
                by the education ministry (or comparable 
                agency) of the country in which the institution 
                is located;
                  (B) is not located in a State;
                  (C) except as provided with respect to 
                clinical training offered by the institution 
                under 600.55(h)(1), section 600.56(b), or 
                section 600.57(a)(2) of title 34, Code of 
                Federal Regulations (as in effect pursuant to 
                subsection (b))--
                          (i) does not offer any portion of an 
                        educational program in the United 
                        States to students who are citizens of 
                        the United States;
                          (ii) has no written arrangements with 
                        an institution or organization located 
                        in the United States under which 
                        students enrolling at the foreign 
                        institution would take courses from an 
                        institution located in the United 
                        States; and
                          (iii) does not allow students to 
                        enroll in any course offered by the 
                        foreign institution in the United 
                        States, including research, work, 
                        internship, externship, or special 
                        studies within the United States, 
                        except that independent research done 
                        by an individual student in the United 
                        States for not more than one academic 
                        year is permitted, if the research is 
                        conducted during the dissertation phase 
                        of a doctoral program under the 
                        guidance of faculty and the research is 
                        performed at a facility in the United 
                        States;
                  (D) awards degrees, certificates, or other 
                recognized educational credentials in 
                accordance with section 600.54(e) of title 34, 
                Code of Federal Regulations (as in effect 
                pursuant to subsection (b)) that are officially 
                recognized by the country in which the 
                institution is located; and
                  (E) meets the applicable requirements of 
                subsection (b).
          (3) Institutions with locations in and outside the 
        united states.--In a case of an institution of higher 
        education consisting of two or more locations offering 
        all or part of an educational program that are directly 
        or indirectly under common ownership and that enrolls 
        students both within a State and outside the United 
        States, and the number of students who would be 
        eligible to receive funds under title IV attending 
        locations of such institution outside the United 
        States, is at least twice the number of students 
        enrolled within a State--
                  (A) the locations outside the United States 
                shall apply to participate as one or more 
                foreign institutions and shall meet the 
                requirements of paragraph (1) of this 
                definition, and the other requirements of this 
                part; and
                  (B) the locations within a State shall be 
                treated as an institution of higher education 
                under section 101.
  (b) Treatment of Certain Regulations.--
          (1) Force and effect.--
                  (A) In general.--The provisions of title 34, 
                Code of Federal Regulations, referred to in 
                subparagraph (B), as such provisions were in 
                effect on the day before the date of the 
                enactment of the PROSPER Act, shall have the 
                force and effect of enacted law until changed 
                by such law and are deemed to be incorporated 
                in this subsection as though set forth fully in 
                this subsection.
                  (B) Applicable provisions.--The provisions of 
                title 34, Code of Federal Regulations, referred 
                to in this subparagraph are the following:
                          (i) Subject to paragraph (2)(A), 
                        section 600.41(e)(3).
                          (ii) Subject to paragraph (2)(B), 
                        section 600.52.
                          (iii) Subject to paragraph (2)(C), 
                        section 600.54.
                          (iv) Subject to subparagraphs (D) and 
                        (E) of paragraph (2), section 600.55, 
                        except that paragraph (4) of subsection 
                        (f) of such section shall have no force 
                        or effect.
                          (v) Section 600.56.
                          (vi) Subject to paragraph (2)(F), 
                        section 600.57.
                          (vii) Subject to subparagraphs (G) 
                        and (H) of paragraph (2), section 
                        668.23(h), except that clause (iii) of 
                        paragraph (1) of such section shall 
                        have no force or effect.
                          (viii) Section 668.5.
                  (C) Application to federal one loans.--With 
                respect to the provisions of title 34, Code of 
                Federal Regulations, referred to subparagraph 
                (B), as modified by paragraph (2) any reference 
                to a loan made under part D of title IV shall 
                also be treated as a reference to a loan made 
                under part E of title IV.
          (2) Modifications.--The following shall apply to the 
        provisions of title 34, Code of Federal Regulations, 
        referred to in paragraph (1)(B):
                  (A) Notwithstanding section 600.41(e)(3) of 
                title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), if the basis 
                for the loss of eligibility of a foreign 
                graduate medical school to participate in 
                programs under title IV is one or more annual 
                pass rates on the United States Medical 
                Licensing Examination below the threshold 
                required in subparagraph (D) the sole issue is 
                whether the aggregate pass rate for the 
                preceding calendar year fell below that 
                threshold. For purposes of the preceding 
                sentence, in the case of a foreign graduate 
                medical school that opted to have the 
                Educational Commission for Foreign Medical 
                Graduates calculate and provide the pass rates 
                directly to the Secretary for the preceding 
                calendar year as permitted under section 
                600.55(d)(2) of title 34, Code of Federal 
                Regulations (as in effect pursuant to paragraph 
                (1)), in lieu of the foreign graduate medical 
                school providing pass rate data to the 
                Secretary under section 600.55(d)(1)(iii) of 
                title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), the 
                Educational Commission for Foreign Medical 
                Graduates' calculations of the school's rates 
                are conclusive; and the presiding official has 
                no authority to consider challenges to the 
                computation of the rate or rates by the 
                Educational Commission for Foreign Medical 
                Graduates.
                  (B) Notwithstanding section 600.52 of title 
                34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), in this Act, the 
                term ``foreign institution'' means an 
                institution described in subsection (a).
                  (C) Notwithstanding section 600.54(c) of 
                title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), to be 
                eligible to participate in programs under title 
                IV, foreign institution may not enter into a 
                written arrangement under which an institution 
                or organizations that is not eligible to 
                participate in programs under title IV provides 
                more than 25 percent of the program of study 
                for one or more of the eligible foreign 
                institution's programs.
                  (D) Notwithstanding section 600.55(f)(1)(ii) 
                of title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), for a 
                foreign graduate medical school outside of 
                Canada, for Step 1, Step 2-CS, and Step 2-CK, 
                or the successor examinations, of the United 
                States Medical Licensing Examination 
                administered by the Educational Commission for 
                Foreign Medical Graduate, at least 75 percent 
                of the school's students and graduates who 
                receive or have received title IV funds in 
                order to attend that school, and who completed 
                the final of these three steps of the 
                examination in the year preceding the year for 
                which any of the school's students seeks a loan 
                under title IV shall have received an aggregate 
                passing score on the exam as a whole; or except 
                as provided in section 600.55(f)(2) of title 
                34, Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), for no more than 
                two consecutive years, at least 70 percent of 
                the individuals who were students or graduates 
                of the graduate medical school outside the 
                United States or Canada (who receive or have 
                received title IV funds in order to attend that 
                school) taking the United States Medical 
                Licensing Examination exams in the year 
                preceding the year for which any of the 
                school's students seeks a loan under title IV 
                shall have received an aggregate passing score 
                on the exam as a whole.
                  (E) Notwithstanding 600.55(h)(2) of title 34, 
                Code of Federal Regulations (as in effect 
                pursuant to paragraph (1)), not more than 25 
                percent of the graduate medical educational 
                program offered to United States students, 
                other than the clinical training portion of the 
                program, may be located outside of the country 
                in which the main campus of the foreign 
                graduate medical school is located.
                  (F) Notwithstanding section 600.57(a)(5) of 
                title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), a nursing 
                school shall reimburse the Secretary for the 
                cost of any loan defaults for current and 
                former students during the previous fiscal 
                year.
                  (G) Notwithstanding section 668.23(h)(1)(ii), 
                of title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), a foreign 
                institution that received $500,000 or more in 
                funds under title IV during its most recently 
                completed fiscal year shall submit, in English, 
                for each most recently completed fiscal year in 
                which it received such funds, audited financial 
                statements prepared in accordance with 
                generally accepted accounting principles of the 
                institution's home country provided that such 
                accounting principles are comparable to the 
                International Financial Reporting Standards.
                  (H) Notwithstanding section 668.23(h)(1)(ii), 
                of title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)), only in a 
                case in which the accounting principles of an 
                institution's home country are not comparable 
                to International Financial Reporting Standards 
                shall the institution be required to submit 
                corresponding audited financial statements that 
                meet the requirements of section 668.23(d) of 
                title 34, Code of Federal Regulations (as in 
                effect pursuant to paragraph (1)).
  (c) Special Rules.--
          (1) In general.--A foreign graduate medical school at 
        which student test passage rates are below the minimum 
        requirements set forth in subsection (b)(2)(D) for each 
        of the two most recent calendar years for which data 
        are available shall not be eligible to participate in 
        programs under part D or E of title IV in the fiscal 
        year subsequent to that consecutive two year period and 
        such institution shall regain eligibility to 
        participate in programs under such part only after 
        demonstrating compliance with requirements under 
        section 600.55 of title 34, Code of Federal Regulations 
        (as in effect pursuant to subsection (b)) for one full 
        calendar year subsequent to the fiscal year the 
        institution became ineligible unless, within 30 days of 
        receiving notification from the Secretary of the loss 
        of eligibility under this paragraph, the institution 
        appeals the loss of its eligibility to the Secretary. 
        The Secretary shall issue a decision on any such appeal 
        within 45 days after its submission. Such decision may 
        permit the institution to continue to participate in 
        programs under part D or E of title IV, if--
                  (A) the institution demonstrates to the 
                satisfaction of the Secretary that the test 
                passage rates on which the Secretary has relied 
                are not accurate, and that the recalculation of 
                such rates would result in rates that exceed 
                the required minimum for any of these two 
                calendar years; or
                  (B) there are, in the judgement of the 
                Secretary, mitigating circumstances that would 
                make the application of this paragraph 
                inequitable.
          (2) Student eligibility.--If, pursuant to this 
        subsection, a foreign graduate medical school loses 
        eligibility to participate in the programs under part D 
        or E of title IV, then a student at such institution 
        may, notwithstanding such loss of eligibility, continue 
        to be eligible to receive a loan under such part while 
        attending such institution for the academic year 
        succeeding the academic year in which such loss of 
        eligibility occurred.
          (3) Treatment of clinical training programs.--
                  (A) In general.--Clinical training programs 
                operated by a foreign graduate medical school 
                with an accredited hospital or clinic in the 
                United States or at an institution in Canada 
                accredited by the Liaison Committee on Medical 
                Education shall be deemed to be approved and 
                shall not require the prior approval of the 
                Secretary.
                  (B) On-site evaluations.--Any part of a 
                clinical training program operated by a foreign 
                graduate medical school located in a foreign 
                country other than the country in which the 
                main campus is located, in the United States, 
                or at an institution in Canada accredited by 
                the Liaison Committee on Medical Education, 
                shall not require an on-site evaluation or 
                specific approval by the institution's medical 
                accrediting agency if the location is a 
                teaching hospital accredited by and located 
                within a foreign country approved by the 
                National Committee on Foreign Medical Education 
                and Accreditation.
  (d) Failure to Release Information.--An institution outside 
the United States that does not provide to the Secretary such 
information as may be required by this section shall be 
ineligible to participate in the loan program under part D or E 
of title IV.
  (e) Online Education.--Notwithstanding section 481(b)(2), an 
eligible program described in section 600.54 of title 34, Code 
of Federal Regulations (as in effect pursuant to subsection 
(b)) may not offer more than 50 percent of courses through 
telecommunications.

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 Labor of the House of Representatives.
          (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.
          (3) Critical foreign language.--Except as otherwise 
        provided, the term ``critical foreign language'' means 
        each of the languages contained in the list of critical 
        languages designated by the Secretary in the Federal 
        Register on August 2, 1985 (50 Fed. Reg. 31412; 
        promulgated under the authority of section 212(d) of 
        the Education for Economic Security Act (repealed by 
        section 2303 of the Augustus F. Hawkins-Robert T. 
        Stafford Elementary and Secondary School Improvement 
        Amendments of 1988)), as updated by the Secretary from 
        time to time and published in the Federal Register, 
        except that in the implementation of this definition 
        with respect to a specific title, the Secretary may set 
        priorities according to the purposes of such title and 
        the national security, economic competitiveness, and 
        educational needs of the United States.
          (4) Department.--The term ``Department'' means the 
        Department of Education.
          (5) Diploma mill.--The term ``diploma mill'' means an 
        entity that--
                  (A)(i) offers, for a fee, degrees, diplomas, 
                or certificates, that may be used to represent 
                to the general public that the individual 
                possessing such a degree, diploma, or 
                certificate has completed a program of 
                postsecondary education or training; and
                  (ii) requires such individual to complete 
                little or no education or coursework to obtain 
                such degree, diploma, or certificate; and
                  (B) lacks accreditation by an accrediting 
                agency or association that is recognized as an 
                accrediting agency or association of 
                institutions of higher education (as such term 
                is defined in [section 102] section 101 or 102) 
                by--
                          (i) the Secretary pursuant to subpart 
                        2 of part H of title IV; or
                          (ii) a Federal agency, State 
                        government, or other organization or 
                        association that recognizes accrediting 
                        agencies or associations.
          (6) Disability.--The term ``disability'' has the same 
        meaning given that term under section 3(2) of the 
        Americans With Disabilities Act of 1990.
          [(7) Distance education.--
                  [(A) In general.--Except as otherwise 
                provided, the term``distance education''means 
                education that uses one or more of the 
                technologies described in subparagraph (B)--
                          [(i) to deliver instruction to 
                        students who are separated from the 
                        instructor; and
                          [(ii) to support regular and 
                        substantive interaction between the 
                        students and the instructor, 
                        synchronously or asynchronously.
                  [(B) Inclusions.--For the purposes of 
                subparagraph (A), the technologies used may 
                include--
                          [(i) the Internet;
                          [(ii) one-way and two-way 
                        transmissions through open broadcast, 
                        closed circuit, cable, microwave, 
                        broadband lines, fiber optics, 
                        satellite, or wireless communications 
                        devices;
                          [(iii) audio conferencing; or
                          [(iv) video cassettes, DVDs, and CD-
                        ROMs, if the cassettes, DVDs, or CD-
                        ROMs are used in a course in 
                        conjunction with any of the 
                        technologies listed in clauses (i) 
                        through (iii).
          [(8) Early childhood education program.--The term 
        ``early childhood education program'' means--
                  [(A) a Head Start program or an Early Head 
                Start program carried out under the Head Start 
                Act (42 U.S.C. 9831 et seq.), including a 
                migrant or seasonal Head Start program, an 
                Indian Head Start program, or a Head Start 
                program or an Early Head Start program that 
                also receives State funding;
                  [(B) a State licensed or regulated child care 
                program; or
                  [(C) a program that--
                          [(i) serves children from birth 
                        through age six that addresses the 
                        children's cognitive (including 
                        language, early literacy, and early 
                        mathematics), social, emotional, and 
                        physical development; and
                          [(ii) is--
                                  [(I) a State prekindergarten 
                                program;
                                  [(II) a program authorized 
                                under section 619 or part C of 
                                the Individuals with 
                                Disabilities Education Act; or
                                  [(III) a program operated by 
                                a local educational agency.]
          (7) Correspondence education.--The term 
        ``correspondence education'' means education that is 
        provided by an institution of higher education under 
        which--
                  (A) the institution provides instructional 
                materials (including examinations on the 
                materials) by mail or electronic transmission 
                to students who are separated from the 
                instructor; and
                  (B) interaction between the institution and 
                the student is limited and the academic 
                instruction by faculty is not regular and 
                substantive, as assessed by the institution's 
                accrediting agency or association under section 
                496.
          (8) Early childhood education program.--The term 
        ``early childhood education program'' means a program--
                  (A) that serves children of a range of ages 
                from birth through age five that addresses the 
                children's cognitive (including language, early 
                literacy, and early mathematics), social, 
                emotional, and physical development; and
                  (B) that is--
                          (i) a Head Start program or an Early 
                        Head Start program carried out under 
                        the Head Start Act (42 U.S.C. 9831 et 
                        seq.), including a migrant or seasonal 
                        Head Start program, an Indian Head 
                        Start program, or a Head Start program 
                        or an Early Head Start program that 
                        also receives State funding;
                          (ii) a State licensed or regulated 
                        child care program;
                          (iii) a State-funded prekindergarten 
                        or child care program;
                          (iv) a program authorized under 
                        section 619 of the Individuals with 
                        Disabilities Education Act or part C of 
                        such Act; or
                          (v) a program operated by a local 
                        educational agency.
          (9) Elementary school.--The term ``elementary 
        school'' has the same meaning given that term under 
        section 8101 of the Elementary and Secondary Education 
        Act of 1965.
          (10) Gifted and talented.--The term ``gifted and 
        talented'' has the same meaning given that term under 
        section 8101 of the Elementary and Secondary Education 
        Act of 1965.
          (11) Local educational agency.--The term ``local 
        educational agency'' has the same meaning given that 
        term under section 8101 of the Elementary and Secondary 
        Education Act of 1965.
          (12) 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.
          [(13) 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.]
          (13) Nonprofit.--
                  (A) The term ``nonprofit'', when used with 
                respect 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.
                  (B) The term ``nonprofit'', when used with 
                respect to foreign institution means--
                          (i) an institution that is owned and 
                        operated only by one or more nonprofit 
                        corporations or associations; and
                          (ii)(I) if a recognized tax authority 
                        of the institution's home country is 
                        recognized by the Secretary for 
                        purposes of making determinations of an 
                        institution's nonprofit status for 
                        purposes of title IV, the institution 
                        is determined by that tax authority to 
                        be a nonprofit educational institution; 
                        or
                          (II) if no recognized tax authority 
                        of the institution's home country is 
                        recognized by the Secretary for 
                        purposes of making determinations of an 
                        institution's nonprofit status for 
                        purposes of title IV, the foreign 
                        institution demonstrates to the 
                        satisfaction of the Secretary that it 
                        is a nonprofit educational institution.
          (14) Poverty line.--The term ``poverty line'' means 
        the poverty line (as defined in section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2)) 
        applicable to a family of the size involved.
          (15) 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) to prepare the students to become 
                ministers of religion or to enter upon some 
                other religious vocation (or to provide 
                continuing training for any such vocation); or
                  (B) to prepare the students to teach 
                theological subjects.
          (16) Secondary school.--The term ``secondary school'' 
        has the same meaning given that term under section 8101 
        of the Elementary and Secondary Education Act of 1965.
          (17) Secretary.--The term ``Secretary'' means the 
        Secretary of Education.
          (18) 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.
          (19) 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.
          (20) State; freely associated states.--
                  (A) State.--The term ``State'' includes, in 
                addition to the several States of the United 
                States, the Commonwealth of Puerto Rico, the 
                District of Columbia, Guam, American Samoa, the 
                United States Virgin Islands, the Commonwealth 
                of the Northern Mariana Islands, and the Freely 
                Associated States.
                  (B) Freely associated states.--The term 
                ``Freely Associated States'' means the Republic 
                of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
          (21) State educational agency.--The term ``State 
        educational agency'' has the same meaning given that 
        term under section 8101 of the Elementary and Secondary 
        Education Act of 1965.
          (22) State higher education agency.--The term ``State 
        higher education agency'' means the officer or agency 
        primarily responsible for the State supervision of 
        higher education.
          (23) Universal design.--The term``universal 
        design''has the meaning given the term in section 3 of 
        the Assistive Technology Act of 1998 (29 U.S.C. 3002).
          (24) Universal design for learning.--The term 
        ``universal design for learning'' means a 
        scientifically valid framework for guiding educational 
        practice that--
                  (A) provides flexibility in the ways 
                information is presented, in the ways students 
                respond or demonstrate knowledge and skills, 
                and in the ways students are engaged; and
                  (B) reduces barriers in instruction, provides 
                appropriate accommodations, supports, and 
                challenges, and maintains high achievement 
                expectations for all students, including 
                students with disabilities and students who are 
                limited English proficient.
          (25) Competency-based education; competency-based 
        education program.--
                  (A) Competency-based education.--Except as 
                otherwise provided, the term ``competency-based 
                education'' means education that--
                          (i) measures academic progress and 
                        attainment--
                                  (I) by direct assessment of a 
                                student's level of mastery of 
                                competencies;
                                  (II) by expressing a 
                                student's level of mastery of 
                                competencies in terms of 
                                equivalent credit or clock 
                                hours; or
                                  (III) by a combination of the 
                                methods described in subclauses 
                                (I) or (II) and credit or clock 
                                hours; and
                          (ii) provides the educational 
                        content, activities, and resources, 
                        including substantive instructional 
                        interaction, including by faculty, and 
                        regular support by the institution, 
                        necessary to enable students to learn 
                        or develop what is required to 
                        demonstrate and attain mastery of such 
                        competencies, as assessed by the 
                        accrediting agency or association of 
                        the institution of higher education.
                  (B) Competency-based education program.--
                Except as otherwise provided, the term 
                ``competency-based education program'' means a 
                postsecondary program offered by an institution 
                of higher education that--
                          (i) provides competency-based 
                        education, which upon a student's 
                        demonstration or mastery of a set of 
                        competencies identified and required by 
                        the institution, leads to or results in 
                        the award of a certificate, degree, or 
                        other recognized educational 
                        credential;
                          (ii) ensures title IV funds may be 
                        used only for learning that results 
                        from instruction provided, or overseen, 
                        by the institution, not for the portion 
                        of the program of which the student has 
                        demonstrated mastery prior to 
                        enrollment in the program or tests of 
                        learning that are not associated with 
                        educational activities overseen by the 
                        institution; and
                          (iii) is organized in such a manner 
                        that an institution can determine, 
                        based on the method of measurement 
                        selected by the institution under 
                        subparagraph (A)(i), what constitutes a 
                        full-time, three-quarter time, half-
                        time, and less than half-time workload 
                        for the purposes of awarding and 
                        administering assistance under title IV 
                        of this Act, or assistance provided 
                        under another provision of Federal law 
                        to attend an institution of higher 
                        education.
                  (C) Competency defined.--In this paragraph, 
                the term ``competency'' means the knowledge, 
                skill, or ability demonstrated by a student in 
                a subject area.
          (26) Pay for success initiative.--The term ``pay for 
        success initiative'' has the meaning given the term in 
        section 8101 of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7801).
          (27) Evidence-based.--The term ``evidence-based'' has 
        the meaning given the term in section 8101(21)(A) of 
        the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7801(21)(A)), except that such term shall also 
        apply to institutions of higher education.

PART B--ADDITIONAL GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. [112.]  112A. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.

  (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.
  (2) It is the sense of Congress that--
          (A) every individual should be free to profess, and 
        to maintain, the opinion of such individual in matters 
        of religion, and that professing or maintaining such 
        opinion should in no way diminish, enlarge, or affect 
        the civil liberties or rights of such individual on the 
        campus of an institution of higher education; and
          (B) no public institution of higher education 
        directly or indirectly receiving financial assistance 
        under this Act should limit religious expression, free 
        expression, or any other rights provided under the 
        First Amendment.
  (3) It is the sense of Congress that--
          (A) free speech zones and restrictive speech codes 
        are inherently at odds with the freedom of speech 
        guaranteed by the First Amendment of the Constitution; 
        and
          (B) no public institution of higher education 
        directly or indirectly receiving financial assistance 
        under this Act should restrict the speech of such 
        institution's students through such zones or codes.
  [(2)] (4) It is the sense of Congress that--
          (A) the diversity of institutions and educational 
        missions is one of the key strengths of American higher 
        education;
          (B) individual institutions of higher education have 
        different missions and each institution should design 
        its academic program in accordance with its educational 
        goals;
          (C) an institution of higher education should 
        facilitate the free and open exchange of ideas;
          (D) students should not be intimidated, harassed, 
        discouraged from speaking out, or discriminated 
        against;
          (E) students should be treated equally and fairly; 
        and
          (F) nothing in this paragraph shall be construed to 
        modify, change, or infringe upon any constitutionally 
        protected religious liberty, freedom, expression, or 
        association.
  (b) Disclosure of Free Speech Policies.--
          (1) In general.--No institution of higher education 
        shall be eligible to receive funds under this Act, 
        including participation in any program under title IV, 
        unless the institution certifies to the Secretary that 
        the institution has annually disclosed to current and 
        prospective students any policies held by the 
        institutions related to protected speech on campus, 
        including policies limiting where and when such speech 
        may occur, and the right to submit a complaint under 
        paragraph (2) if the institution is not in compliance 
        with any policy disclosed under this paragraph or is 
        enforcing a policy related to protected speech that has 
        not been disclosed by the institution under this 
        paragraph.
          (2) Complaint on speech policies.--
                  (A) Designation of an employee.--The 
                Secretary shall designate an employee in the 
                Office of Postsecondary Education of the 
                Department to receive complaints from students 
                or student organizations that believe an 
                institution is not in compliance with any 
                policy disclosed under paragraph (1) or is 
                enforcing a policy related to protected speech 
                that has not been disclosed by the institution 
                under such paragraph.
                  (B) Complaint.--A complaint submitted under 
                subparagraph (A)--
                          (i) shall--
                                  (I) include the provision of 
                                the institution's policy the 
                                complainant believes the 
                                institution is not in 
                                compliance with or how the 
                                institution is enforcing a 
                                policy related to protected 
                                speech that has not been 
                                disclosed under paragraph (1); 
                                and
                                  (II) be filed not later than 
                                7 days of the complainant's 
                                denial of a right to speak; and
                          (ii) may affirmatively assert that 
                        the violation described in clause 
                        (i)(I) is a violation of the 
                        complainant's constitutional rights.
                  (C) Secretarial requirements.--
                          (i) Review.--
                                  (I) In general.--Not later 
                                than 7 days after the receipt 
                                of the complaint, the Secretary 
                                shall review the complaint and 
                                request a response to the 
                                complaint from the institution.
                                  (II) Response of secretary.--
                                Not later than 10 days after 
                                the receipt of the complaint, 
                                the Secretary shall make a 
                                decision with respect to such 
                                complaint, without regard to 
                                whether the institution 
                                provides a response to such 
                                complaint.
                          (ii) Determination that institution 
                        failed to comply.--If, upon the review 
                        required under clause (i), the 
                        Secretary determines that the 
                        institution is not in compliance with 
                        the institution's policy disclosed 
                        under paragraph (1), or the institution 
                        is enforcing a policy that was not 
                        disclosed under paragraph (1), the 
                        Secretary shall--
                                  (I)(aa) if the Secretary 
                                determines that the institution 
                                was not in compliance with a 
                                disclosed policy, require the 
                                institution to comply with the 
                                disclosed policy and provide 
                                the complainant an opportunity 
                                to speak as any other speaker 
                                would be permitted to speak; or
                                  (bb) if the Secretary 
                                determines that the institution 
                                was enforcing an undisclosed 
                                policy, require the institution 
                                to immediately comply with 
                                disclosure requirement under 
                                paragraph (1) and to allow the 
                                complainant to speak as if such 
                                policy were not held by the 
                                institution; and
                                  (II) require the institution 
                                to post the decision of the 
                                Secretary on the website of the 
                                institution, except in the case 
                                in which the complainant 
                                requests that the decision not 
                                be shared.
                          (iii) Referral.--If the Secretary 
                        believes the denial of the right to 
                        speak may be a violation of the 
                        Constitutional rights of the 
                        complainant, the Secretary shall refer 
                        the complaint to the Department of 
                        Justice.
                  (D) Limitations.--
                          (i) Institution's religious beliefs 
                        or mission.--The Secretary shall defer 
                        to the institution's religious beliefs 
                        or mission that the institution 
                        describes in its response to the 
                        complaint as applicable to the 
                        complaint.
                          (ii) Prohibition on regulations or 
                        guidance.--The Secretary--
                                  (I) shall not promulgate any 
                                regulations with respect to 
                                this paragraph; and
                                  (II) may only issue guidance 
                                that explains or clarifies the 
                                process for filing or reviewing 
                                a complaint under this 
                                paragraph.
  [(b)] (c) 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, provided that the 
        imposition of such sanction is done objectively and 
        fairly; or
          (2) to prevent an institution of higher education 
        from taking appropriate and effective action to prevent 
        violations of State liquor laws, to discourage binge 
        drinking and other alcohol abuse, to protect students 
        from sexual harassment including assault and date rape, 
        to prevent hazing, or to regulate unsanitary or unsafe 
        conditions in any student residence.
  [(c)] (d) Definitions.--For the purposes of this section:
          (1) Official sanction.--The term ``official 
        sanction''--
                  (A) means expulsion, suspension, probation, 
                censure, condemnation, reprimand, or any other 
                disciplinary, coercive, or adverse action taken 
                by an institution of higher education or 
                administrative unit of the institution; and
                  (B) includes an oral or written warning made 
                by an official of an institution of higher 
                education acting in the official capacity of 
                the official.
          (2) Protected association.--The term ``protected 
        association'' means the joining, assembling, and 
        residing with others that is protected under the first 
        and 14th amendments to the Constitution (including such 
        joining, assembling, and residing for religious 
        purposes), or would be protected if the institution of 
        higher education involved were subject to those 
        amendments.
          (3) Protected speech.--The term ``protected speech'' 
        means speech that is protected under the first and 14th 
        amendments to the Constitution (including speech 
        relating to religion), or would be protected if the 
        institution of higher education involved were subject 
        to those amendments.

SEC. 112B. SENSE OF CONGRESS ON INCLUSION AND RESPECT.

  It is the sense of Congress that--
          (1) harassment and violence targeted at students 
        because of their race, color, religion, sex, or 
        national origin as listed in section 703 of the Civil 
        Rights Act of 1964 (42 U.S.C. 2000e-2) should be 
        condemned;
          (2) institutions of higher education and law-
        enforcement personnel should be commended for their 
        efforts to combat violence, extremism, and racism, and 
        to protect all members of the community from harm; and
          (3) Congress is committed to supporting institutions 
        of higher education in creating safe, inclusive, and 
        respectful learning environments that fully respect 
        community members from all backgrounds.

           *       *       *       *       *       *       *


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

  (a) Establishment.--There is established in the Department a 
National Advisory Committee on Institutional Quality and 
Integrity (in this section referred to as the ``Committee'') to 
assess the process of accreditation and the institutional 
eligibility and certification of institutions of higher 
education (as defined in [section 102] section 101) under title 
IV.
  (b) Membership.--
          (1) In general.--The Committee shall have 18 members, 
        of which--
                  (A) six members shall be appointed by the 
                Secretary;
                  (B) six members shall be appointed by the 
                Speaker of the House of Representatives, three 
                of whom shall be appointed on the 
                recommendation of the majority leader of the 
                House of Representatives, and three of whom 
                shall be appointed on the recommendation of the 
                minority leader of the House of 
                Representatives; and
                  (C) six members shall be appointed by the 
                President pro tempore of the Senate, three of 
                whom shall be appointed on the recommendation 
                of the majority leader of the Senate, and three 
                of whom shall be appointed on the 
                recommendation of the minority leader of the 
                Senate.
          (2) Qualifications.--Individuals shall be appointed 
        as members of the Committee--
                  (A) on the basis of the individuals' 
                experience, integrity, impartiality, and good 
                judgment;
                  (B) from among individuals who are 
                representatives of, or knowledgeable 
                concerning, education and training beyond 
                secondary education, representing all sectors 
                and types of institutions of higher education 
                (as defined in [section 102] section 101); and
                  (C) on the basis of the individuals' 
                technical qualifications, professional 
                standing, and demonstrated knowledge in the 
                fields of accreditation and administration in 
                higher education.
          (3) Terms of members.--[Except as provided in 
        paragraph (5), the term] The term of office of each 
        member of the Committee shall be for six years, except 
        that any member appointed to fill a vacancy occurring 
        prior to the expiration of the term for which the 
        member's predecessor was appointed shall be appointed 
        for the remainder of such term.
          (4) Vacancy.--A vacancy on the Committee shall be 
        filled in the same manner as the original appointment 
        was made not later than 90 days after the vacancy 
        occurs. If a vacancy occurs in a position to be filled 
        by the Secretary, the Secretary shall publish a Federal 
        Register notice soliciting nominations for the position 
        not later than 30 days after being notified of the 
        vacancy.
          [(5) Initial terms.--The terms of office for the 
        initial members of the Committee shall be--
                  [(A) three years for members appointed under 
                paragraph (1)(A);
                  [(B) four years for members appointed under 
                paragraph (1)(B); and
                  [(C) six years for members appointed under 
                paragraph (1)(C).]
          (5) Secretarial appointees.--The Secretary may remove 
        any member who was appointed under paragraph (1)(A) by 
        a predecessor of the Secretary and may fill the vacancy 
        created by such removal in accordance with paragraphs 
        (3) and (4).
          (6) Chairperson.--The members of the Committee shall 
        select a chairperson from among the members.
  (c) Functions.--The Committee shall--
          (1) advise the Secretary with respect to 
        establishment and enforcement of the standards of 
        accrediting agencies or associations under subpart 2 of 
        part H of title IV;
          (2) advise the Secretary with respect to the 
        recognition of a specific accrediting agency or 
        association; and
          (3) advise the Secretary with respect to the 
        preparation and publication of the list of nationally 
        recognized accrediting agencies and associations[;].
          [(4) advise the Secretary with respect to the 
        eligibility and certification process for institutions 
        of higher education under title IV, together with 
        recommendations for improvements in such process;
          [(5) advise the Secretary with respect to the 
        relationship between--
                  [(A) accreditation of institutions of higher 
                education and the certification and eligibility 
                of such institutions; and
                  [(B) State licensing responsibilities with 
                respect to such institutions; and
          [(6) carry out such other advisory functions relating 
        to accreditation and institutional eligibility as the 
        Secretary may prescribe by regulation.]
  (d) Meeting Procedures.--
          (1) Schedule.--
                  (A) Biannual meetings.--The Committee shall 
                meet not less often than twice each year, at 
                the call of the Chairperson.
                  (B) Publication of date.--The Committee shall 
                submit the date and location of each meeting in 
                advance to the Secretary, and the Secretary 
                shall publish such information in the Federal 
                Register not later than 30 days before the 
                meeting.
          (2) Agenda.--
                  (A) Establishment.--The agenda for a meeting 
                of the Committee shall be established by the 
                Chairperson and shall be submitted to the 
                members of the Committee upon notification of 
                the meeting.
                  (B) Opportunity for public comment.--The 
                agenda shall include, at a minimum, opportunity 
                for public comment during the Committee's 
                deliberations.
          (3) Secretary's designee.--The Secretary shall 
        designate an employee of the Department to serve as the 
        Secretary's designee to the Committee, and the 
        Chairperson shall invite the Secretary's designee to 
        attend all meetings of the Committee.
          (4) Federal advisory committee act.--The Federal 
        Advisory Committee Act (5 U.S.C. App.) shall apply to 
        the Committee, except that section 14 of such Act shall 
        not apply.
  (e) Report and Notice.--
          (1) Notice.--The Secretary shall annually publish in 
        the Federal Register--
                  (A) a list containing, for each member of the 
                Committee--
                          (i) the member's name;
                          (ii) the date of the expiration of 
                        the member's term of office; and
                          (iii) the name of the individual 
                        described in subsection (b)(1) who 
                        appointed the member; and
                  (B) a solicitation of nominations for each 
                expiring term of office on the Committee of a 
                member appointed by the Secretary.
          (2) Report.--Not later than the last day of each 
        fiscal year, the Committee shall make available an 
        annual report to the Secretary, the authorizing 
        committees, and the public. The annual report shall 
        contain--
                  (A) a detailed summary of the agenda and 
                activities of, and the findings and 
                recommendations made by, the Committee during 
                the fiscal year preceding the fiscal year in 
                which the report is made;
                  (B) a list of the date and location of each 
                meeting during the fiscal year preceding the 
                fiscal year in which the report is made;
                  (C) a list of the members of the Committee; 
                and
                  (D) a list of the functions of the 
                Committee[, including any additional functions 
                established by the Secretary through 
                regulation].
  (f) Termination.--The Committee shall terminate on [September 
30, 2017] September 30, 2024.

           *       *       *       *       *       *       *


[SEC. 117. DISCLOSURES OF FOREIGN GIFTS.

  [(a) Disclosure Report.--Whenever any institution is owned or 
controlled by a foreign source or receives a gift from or 
enters into a contract with a foreign source, the value of 
which is $250,000 or more, considered alone or in combination 
with all other gifts from or contracts with that foreign source 
within a calendar year, the institution shall file a disclosure 
report with the Secretary on January 31 or July 31, whichever 
is sooner.
  [(b) Contents of Report.--Each report to the Secretary 
required by this section shall contain the following:
          [(1) For gifts received from or contracts entered 
        into with a foreign source other than a foreign 
        government, the aggregate dollar amount of such gifts 
        and contracts attributable to a particular country. The 
        country to which a gift is attributable is the country 
        of citizenship, or if unknown, the principal residence 
        for a foreign source who is a natural person, and the 
        country of incorporation, or if unknown, the principal 
        place of business, for a foreign source which is a 
        legal entity.
          [(2) For gifts received from or contracts entered 
        into with a foreign government, the aggregate amount of 
        such gifts and contracts received from each foreign 
        government.
          [(3) In the case of an institution which is owned or 
        controlled by a foreign source, the identity of the 
        foreign source, the date on which the foreign source 
        assumed ownership or control, and any changes in 
        program or structure resulting from the change in 
        ownership or control.
  [(c) Additional Disclosures for Restricted and Conditional 
Gifts.--Notwithstanding the provisions of subsection (b), 
whenever any institution receives a restricted or conditional 
gift or contract from a foreign source, the institution shall 
disclose the following:
          [(1) For such gifts received from or contracts 
        entered into with a foreign source other than a foreign 
        government, the amount, the date, and a description of 
        such conditions or restrictions. The report shall also 
        disclose the country of citizenship, or if unknown, the 
        principal residence for a foreign source which is a 
        natural person, and the country of incorporation, or if 
        unknown, the principal place of business for a foreign 
        source which is a legal entity.
          [(2) For gifts received from or contracts entered 
        into with a foreign government, the amount, the date, a 
        description of such conditions or restrictions, and the 
        name of the foreign government.
  [(d) Relation to Other Reporting Requirements.--
          [(1) State requirements.--If an institution described 
        under subsection (a) is within a State which has 
        enacted requirements for public disclosure of gifts 
        from or contracts with a foreign source that are 
        substantially similar to the requirements of this 
        section, a copy of the disclosure report filed with the 
        State may be filed with the Secretary in lieu of a 
        report required under subsection (a). The State in 
        which the institution is located shall provide to the 
        Secretary such assurances as the Secretary may require 
        to establish that the institution has met the 
        requirements for public disclosure under State law if 
        the State report is filed.
          [(2) Use of other federal reports.--If an institution 
        receives a gift from, or enters into a contract with, a 
        foreign source, where any other department, agency, or 
        bureau of the executive branch requires a report 
        containing requirements substantially similar to those 
        required under this section, a copy of the report may 
        be filed with the Secretary in lieu of a report 
        required under subsection (a).
  [(e) Public Inspection.--All disclosure reports required by 
this section shall be public records open to inspection and 
copying during business hours.
  [(f) Enforcement.--
          [(1) Court orders.--Whenever it appears that an 
        institution has failed to comply with the requirements 
        of this section, including any rule or regulation 
        promulgated under this section, a civil action may be 
        brought by the Attorney General, at the request of the 
        Secretary, in an appropriate district court of the 
        United States, or the appropriate United States court 
        of any territory or other place subject to the 
        jurisdiction of the United States, to request such 
        court to compel compliance with the requirements of 
        this section.
          [(2) Costs.--For knowing or willful failure to comply 
        with the requirements of this section, including any 
        rule or regulation promulgated thereunder, an 
        institution shall pay to the Treasury of the United 
        States the full costs to the United States of obtaining 
        compliance, including all associated costs of 
        investigation and enforcement.
  [(g) Regulations.--The Secretary may promulgate regulations 
to carry out this section.
  [(h) Definitions.--For the purpose of this section--
          [(1) the term ``contract'' means any agreement for 
        the acquisition by purchase, lease, or barter of 
        property or services by the foreign source, for the 
        direct benefit or use of either of the parties;
          [(2) the term ``foreign source'' means--
                  [(A) a foreign government, including an 
                agency of a foreign government;
                  [(B) a legal entity, governmental or 
                otherwise, created solely under the laws of a 
                foreign state or states;
                  [(C) an individual who is not a citizen or a 
                national of the United States or a trust 
                territory or protectorate thereof; and
                  [(D) an agent, including a subsidiary or 
                affiliate of a foreign legal entity, acting on 
                behalf of a foreign source;
          [(3) the term ``gift'' means any gift of money or 
        property;
          [(4) the term ``institution'' means any institution, 
        public or private, or, if a multicampus institution, 
        any single campus of such institution, in any State, 
        that--
                  [(A) is legally authorized within such State 
                to provide a program of education beyond 
                secondary school;
                  [(B) provides a program for which the 
                institution awards a bachelor's degree (or 
                provides not less than a 2-year program which 
                is acceptable for full credit toward such a 
                degree) or more advanced degrees; and
                  [(C) is accredited by a nationally recognized 
                accrediting agency or association and to which 
                institution Federal financial assistance is 
                extended (directly or indirectly through 
                another entity or person), or which institution 
                receives support from the extension of Federal 
                financial assistance to any of the 
                institution's subunits; and
          [(5) the term ``restricted or conditional gift or 
        contract'' means any endowment, gift, grant, contract, 
        award, present, or property of any kind which includes 
        provisions regarding--
                  [(A) the employment, assignment, or 
                termination of faculty;
                  [(B) the establishment of departments, 
                centers, research or lecture programs, or new 
                faculty positions;
                  [(C) the selection or admission of students; 
                or
                  [(D) the award of grants, loans, 
                scholarships, fellowships, or other forms of 
                financial aid restricted to students of a 
                specified country, religion, sex, ethnic 
                origin, or political opinion.]

SEC. [118.]  117. APPLICATION OF PEER REVIEW PROCESS.

  All applications submitted under the provisions of this Act 
which require peer review shall be read by a panel of readers 
composed of individuals selected by the Secretary, which shall 
include outside readers who are not employees of the Federal 
Government. The Secretary shall ensure that no individual 
assigned under this section to review any application has any 
conflict of interest with regard to that application which 
might impair the impartiality with which that individual 
conducts the review under this section.

[SEC. 119. BINGE DRINKING ON COLLEGE CAMPUSES.

  [(a) Short Title.--This section may be cited as the 
``Collegiate Initiative To Reduce Binge Drinking and Illegal 
Alcohol Consumption''.
  [(b) Sense of Congress.--It is the sense of Congress that, in 
an effort to change the culture of alcohol consumption on 
college campuses, all institutions of higher education should 
carry out the following:
          [(1) The president of the institution should appoint 
        a task force consisting of school administrators, 
        faculty, students, Greek system representatives, and 
        others to conduct a full examination of student and 
        academic life at the institution. The task force should 
        make recommendations for a broad range of policy and 
        program changes that would serve to reduce alcohol and 
        other drug-related problems. The institution should 
        provide resources to assist the task force in promoting 
        the campus policies and proposed environmental changes 
        that have been identified.
          [(2) The institution should provide maximum 
        opportunities for students to live in an alcohol-free 
        environment and to engage in stimulating, alcohol-free 
        recreational and leisure activities.
          [(3) The institution should enforce a ``zero 
        tolerance'' policy on the illegal consumption of 
        alcohol by students at the institution.
          [(4) The institution should vigorously enforce the 
        institution's code of disciplinary sanctions for those 
        who violate campus alcohol policies. Students with 
        alcohol or other drug-related problems should be 
        referred for assistance, including on-campus counseling 
        programs if appropriate.
          [(5) The institution should adopt a policy to 
        discourage alcoholic beverage-related sponsorship of 
        on-campus activities. It should adopt policies limiting 
        the advertisement and promotion of alcoholic beverages 
        on campus.
          [(6) The institution should work with the local 
        community, including local businesses, in a ``Town/
        Gown'' alliance to encourage responsible policies 
        toward alcohol consumption and to address illegal 
        alcohol use by students.

[SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.

  [(a) Restriction on Eligibility.--Notwithstanding any other 
provision of law, no institution of higher education shall be 
eligible to receive funds or any other form of financial 
assistance under any Federal program, including participation 
in any federally funded or guaranteed student loan program, 
unless the institution certifies to the Secretary that the 
institution has adopted and has implemented a program to 
prevent the use of illicit drugs and the abuse of alcohol by 
students and employees that, at a minimum, includes--
          [(1) the annual distribution to each student and 
        employee of--
                  [(A) standards of conduct that clearly 
                prohibit, at a minimum, the unlawful 
                possession, use, or distribution of illicit 
                drugs and alcohol by students and employees on 
                the institution's property or as part of any of 
                the institution's activities;
                  [(B) a description of the applicable legal 
                sanctions under local, State, or Federal law 
                for the unlawful possession or distribution of 
                illicit drugs and alcohol;
                  [(C) a description of the health-risks 
                associated with the use of illicit drugs and 
                the abuse of alcohol;
                  [(D) a description of any drug or alcohol 
                counseling, treatment, or rehabilitation or re-
                entry programs that are available to employees 
                or students; and
                  [(E) a clear statement that the institution 
                will impose sanctions on students and employees 
                (consistent with local, State, and Federal 
                law), and a description of those sanctions, up 
                to and including expulsion or termination of 
                employment and referral for prosecution, for 
                violations of the standards of conduct required 
                by subparagraph (A); and
          [(2) a biennial review by the institution of the 
        institution's program to--
                  [(A) determine the program's effectiveness 
                and implement changes to the program if the 
                changes are needed;
                  [(B) determine the number of drug and 
                alcohol-related violations and fatalities 
                that--
                          [(i) occur on the institution's 
                        campus (as defined in section 
                        485(f)(6)), or as part of any of the 
                        institution's activities; and
                          [(ii) are reported to campus 
                        officials;
                  [(C) determine the number and type of 
                sanctions described in paragraph (1)(E) that 
                are imposed by the institution as a result of 
                drug and alcohol-related violations and 
                fatalities on the institution's campus or as 
                part of any of the institution's activities; 
                and
                  [(D) ensure that the sanctions required by 
                paragraph (1)(E) are consistently enforced.
  [(b) Information Availability.--Each institution of higher 
education that provides the certification required by 
subsection (a) shall, upon request, make available to the 
Secretary and to the public a copy of each item required by 
subsection (a)(1) as well as the results of the biennial review 
required by subsection (a)(2).
  [(c) Regulations.--
          [(1) In general.--The Secretary shall publish 
        regulations to implement and enforce the provisions of 
        this section, including regulations that provide for--
                  [(A) the periodic review of a representative 
                sample of programs required by subsection (a); 
                and
                  [(B) a range of responses and sanctions for 
                institutions of higher education that fail to 
                implement their programs or to consistently 
                enforce their sanctions, including information 
                and technical assistance, the development of a 
                compliance agreement, and the termination of 
                any form of Federal financial assistance.
          [(2) Rehabilitation program.--The sanctions required 
        by subsection (a)(1)(E) may include the completion of 
        an appropriate rehabilitation program.
  [(d) Appeals.--Upon determination by the Secretary to 
terminate financial assistance to any institution of higher 
education under this section, the institution may file an 
appeal with an administrative law judge before the expiration 
of the 30-day period beginning on the date such institution is 
notified of the decision to terminate financial assistance 
under this section. Such judge shall hold a hearing with 
respect to such termination of assistance before the expiration 
of the 45-day period beginning on the date that such appeal is 
filed. Such judge may extend such 45-day period upon a motion 
by the institution concerned. The decision of the judge with 
respect to such termination shall be considered to be a final 
agency action.
  [(e) Alcohol and Drug Abuse Prevention Grants.--
          [(1) Program authority.--The Secretary may make 
        grants to institutions of higher education or consortia 
        of such institutions, and enter into contracts with 
        such institutions, consortia, and other organizations, 
        to develop, implement, operate, improve, and 
        disseminate programs of prevention, and education 
        (including treatment-referral) to reduce and eliminate 
        the illegal use of drugs and alcohol and the violence 
        associated with such use. Such grants or contracts may 
        also be used for the support of a higher education 
        center for alcohol and drug abuse prevention that will 
        provide training, technical assistance, evaluation, 
        dissemination, and associated services and assistance 
        to the higher education community as determined by the 
        Secretary and institutions of higher education.
          [(2) Awards.--Grants and contracts shall be awarded 
        under paragraph (1) on a competitive basis.
          [(3) Applications.--An institution of higher 
        education, a consortium of such institutions, or 
        another organization that desires to receive a grant or 
        contract under paragraph (1) shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing or accompanied by such 
        information as the Secretary may reasonably require by 
        regulation.
          [(4) Additional requirements.--
                  [(A) Participation.--In awarding grants and 
                contracts under this subsection the Secretary 
                shall make every effort to ensure--
                          [(i) the equitable participation of 
                        private and public institutions of 
                        higher education (including community 
                        and junior colleges); and
                          [(ii) the equitable geographic 
                        participation of such institutions.
                  [(B) Consideration.--In awarding grants and 
                contracts under this subsection the Secretary 
                shall give appropriate consideration to 
                institutions of higher education with limited 
                enrollment.
          [(5) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection such sums as may be necessary for fiscal 
        year 2009 and each of the five succeeding fiscal 
        years.]

SEC. 118. OPIOID MISUSE AND SUBSTANCE ABUSE PREVENTION PROGRAM.

  (a) Required Programs.--Each institution of higher education 
participating in any program under this Act shall adopt and 
implement an evidence-based program to prevent substance abuse 
by students and employees that, at a minimum, includes the 
annual distribution to each student and employee of--
          (1) institutional standards of conduct and sanctions 
        that clearly prohibit and address the unlawful 
        possession, use, or distribution of illicit drugs and 
        alcohol by students and employees; and
          (2) the description of any drug or alcohol 
        counseling, treatment, rehabilitation, or re-entry 
        programs that are available to students or employees, 
        including information on opioid abuse prevention, harm 
        reduction, and recovery.
  (b) Information Availability.--Each institution of higher 
education described in subsection (a) shall, upon request, make 
available to the Secretary and to the public a copy of the 
institutional standards described under subsection (a)(1) and 
information regarding any programs described in subsection 
(a)(2).
  (c) Best Practices.--The Secretary, in consultation with the 
Secretary of Health and Human Services and outside experts in 
the field of substance use prevention and recovery support, 
shall--
          (1) share best practices for institutions of higher 
        education to--
                  (A) address and prevent substance use; and
                  (B) support students in substance use 
                recovery; and
          (2) if requested by an institution of higher 
        education, provide technical assistance to such 
        institution to implement a practice under paragraph 
        (1).

SEC. [121.]  119. 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 2009 and for each succeeding 
        fiscal year 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 2009 and for each 
        succeeding fiscal year 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) after the effective date of the Higher 
                Education Amendments of 1992; and
                  (B) prior to the date of enactment of the 
                Higher Education Amendments of 1998.
  (b) Legal Responsibilities.--
          (1) Pre-1987 title vii.--All entities with continuing 
        obligations incurred under parts A, B, C, and D of 
        title VII, as such parts were in effect before the 
        effective date of the Higher Education Amendments of 
        1992, shall be subject to the requirements of such part 
        as in effect before the effective date of the Higher 
        Education Amendments of 1992.
          (2) Post-1992 and pre-1998 part c of title vii.--All 
        entities with continuing obligations incurred under 
        part C of title VII, as such part was in effect during 
        the period--
                  (A) after the effective date of the Higher 
                Education Amendments of 1992; and
                  (B) prior to the date of enactment of the 
                Higher Education Amendments of 1998,
        shall be subject to the requirements of such part as 
        such part was in effect during such period.

SEC. [122.]  120. RECOVERY OF PAYMENTS.

  (a) Public Benefit.--Congress declares that, if a facility 
constructed with the aid of a grant under part A of title VII 
as such part A was in effect prior to the date of enactment of 
the Higher Education Amendments of 1998, or part B of such 
title as part B was in effect prior to the date of enactment of 
the Higher Education Amendments of 1992, is used as an academic 
facility for 20 years following completion of such 
construction, the public benefit accruing to the United States 
will equal in value the amount of the grant. The period of 20 
years after completion of such construction shall therefore be 
deemed to be the period of Federal interest in such facility 
for the purposes of such title as so in effect.
  (b) Recovery Upon Cessation of Public Benefit.--If, within 20 
years after completion of construction of an academic facility 
which has been constructed, in part with a grant under part A 
of title VII as such part A was in effect prior to the date of 
enactment of the Higher Education Amendments of 1998, or part B 
of title VII as such part B was in effect prior to the date of 
enactment of the Higher Education Amendments of 1992--
          (1) the applicant under such parts as so in effect 
        (or the applicant's successor in title or possession) 
        ceases or fails to be a public or nonprofit 
        institution; or
          (2) the facility ceases to be used as an academic 
        facility, or the facility is used as a facility 
        excluded from the term ``academic facility'' (as such 
        term was defined under title VII, as so in effect), 
        unless the Secretary determines that there is good 
        cause for releasing the institution from its 
        obligation,
the United States shall be entitled to recover from such 
applicant (or successor) an amount which bears to the value of 
the facility at that time (or so much thereof as constituted an 
approved project or projects) the same ratio as the amount of 
Federal grant bore to the cost of the facility financed with 
the aid of such grant. The value shall be determined by 
agreement of the parties or by action brought in the United 
States district court for the district in which such facility 
is situated.
  (c) Prohibition on Use for Religion.--Notwithstanding the 
provisions of subsections (a) and (b), no project assisted with 
funds under title VII (as in effect prior to the date of 
enactment of the Higher Education Amendments of 1998) shall 
ever be used for religious worship or a sectarian activity or 
for a school or department of divinity.

SEC. [123.]  121. DIPLOMA MILLS.

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

SEC. 122. CAMPUS ACCESS FOR RELIGIOUS GROUPS.

  None of the funds made available under this Act may be 
provided to any public institution of higher education that 
denies to a religious student organization any right, benefit, 
or privilege that is generally afforded to other student 
organizations at the institution (including full access to the 
facilities of the institution and official recognition of the 
organization by the institution) because of the religious 
beliefs, practices, speech, leadership and membership 
standards, or standards of conduct of the religious student 
organization.

SEC. 123. SECRETARIAL PROHIBITIONS.

  (a) In General.--Nothing in this Act shall be construed to 
authorize or permit the Secretary to promulgate any rule or 
regulation that exceeds the scope of the explicit authority 
granted to the Secretary under this Act.
  (b) Definitions.--The Secretary shall not define any term 
that is used in this Act in a manner that is inconsistent with 
the scope of this Act, including through regulation or 
guidance.
  (c) Requirements.--The Secretary shall not impose, on an 
institution or State as a condition of participation in any 
program under this Act, any requirement that exceeds the scope 
of the requirements explicitly set forth in this Act for such 
program.

SEC. 124. ENSURING EQUAL TREATMENT BY GOVERNMENTAL ENTITIES.

  (a) In General.--Notwithstanding any other provision of law, 
no government entity shall take any adverse action against an 
institution of higher education that receives funding under 
title IV, if such adverse action--
          (1)(A) is being taken by a government entity that--
                  (i) is a department, agency, or 
                instrumentality of the Federal Government; or
                  (ii) receives Federal funds; or
          (B) would affect commerce with foreign nations, among 
        the several States, or with Indian Tribes; and
          (2) has the effect of prohibiting or penalizing the 
        institution for acts or omissions by the institution 
        that are in furtherance of its religious mission or are 
        related to the religious affiliation of the 
        institution.
  (b) Assertion by Institution.--An actual or threatened 
violation of subsection (a) may be asserted by an institution 
of higher education that receives funding under title IV as a 
claim or defense in a proceeding before any court. The court 
shall grant any appropriate equitable relief, including 
injunctive or declaratory relief.
  (c) Rule of Construction.--Nothing in this section shall be 
construed to alter or amend--
          (1) title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000d et seq.);
          (2) section 182 of the Elementary and Secondary 
        Education Amendments Act of 1966 (42 U.S.C. 2000d-5); 
        or
          (3) section 2 of the Elementary and Secondary 
        Education Amendments Act of 1969 (42 U.S.C. 2000d-6)
  (d) Definitions.--In this section:
          (1) Adverse action.--The term ``adverse action'' 
        includes, with respect to an institution of higher 
        education or the past, current, or prospective students 
        of such institution--
                  (A) the denial or threat of denial of 
                funding, including grants, scholarships, or 
                loans;
                  (B) the denial or threat of denial of access 
                to facilities or programs;
                  (C) the withholding or threat of withholding 
                of any licenses, permits, certifications, 
                accreditations, contracts, cooperative 
                agreements, grants, guarantees, tax-exempt 
                status, or exemptions; or
                  (D) any other penalty or denial, or threat of 
                such other penalty or denial, of an otherwise 
                available benefit.
          (2) Government entity.--The term ``government 
        entity'' means--
                  (A) any department, agency, or 
                instrumentality of the Federal Government;
                  (B) a State or political subdivision of a 
                State, or any agency or instrumentality 
                thereof; and
                  (C) any interstate or other inter-
                governmental entity.
          (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in section 101 or 102.
          (4) Religious mission.--The term ``religious 
        mission'' includes an institution of higher education's 
        religious tenets, beliefs, or teachings, and any 
        policies or decisions related to such tenets, beliefs, 
        or teachings (including any policies or decisions 
        concerning housing, employment, curriculum, self-
        governance, or student admission, continuing 
        enrollment, or graduation).

SEC. 125. SINGLE-SEX SOCIAL STUDENT ORGANIZATIONS.

  (a) Non-retaliation Against Single-sex Student 
Organizations.--An institution of higher education that has a 
policy allowing for the official recognition of a single-sex 
social student organization may not--
          (1) require or coerce such a recognized organization 
        to admit as a member an individual who does not meet 
        the organization's criteria for single-sex status;
          (2) require or coerce such a recognized organization 
        to permit an individual described in paragraph (1) to 
        participate in the activities of the organization;
          (3) take any adverse action against a student on the 
        basis of the student's membership in such recognized 
        organization; or
          (4) impose any requirement or restriction, including 
        on timing for accepting new members or membership 
        recruitment, on such a recognized organization (or its 
        current or prospective members) based on the 
        organization's single-sex status or its criteria for 
        defining its single-sex status.
  (b) Construction.--Nothing in this Act shall be construed--
          (1) to create any enforceable right--
                  (A) by a local, college, or university 
                student organization against a national student 
                organization; or
                  (B) by a national student organization 
                against any local, college, or university 
                student organization;
          (2) to require an institution of higher education to 
        have a policy allowing for the official recognition of 
        a single-sex social student organization; or
          (3) to prohibit an institution of higher education 
        from taking an adverse action against a member of a 
        single-sex social student organization for reasons 
        other than on the basis of such student's membership in 
        such organization, such as academic or non-academic 
        misconduct.
  (c) Adverse Action.--For the purposes of this section, the 
term ``adverse action'' includes the following:
          (1) Expulsion, suspension, probation, censure, 
        condemnation, reprimand, or any other disciplinary, 
        coercive, or adverse action taken by an institution of 
        higher education or administrative unit of such an 
        institution.
          (2) An oral or written warning made by an official of 
        an institution of higher education acting in the 
        official's official capacity.
          (3) Denying participation in any education program or 
        activity.
          (4) Withholding, in whole or in part, any financial 
        assistance (including scholarships and on-campus 
        employment), or denying the opportunity to apply for 
        financial assistance, a scholarship, or on-campus 
        employment.
          (5) Denying or restricting access to on-campus 
        housing.
          (6) Denying any certification or letter of 
        recommendation that may be required by a student's 
        current or future employer, a government agency, a 
        licensing board, or an educational institution or 
        scholarship program to which the student seeks to 
        apply.
          (7) Denying participation in any sports team, club, 
        or other student organization, or denying any 
        leadership position in any sports team, club, or other 
        student organization.

SEC. 126. DEPARTMENT STAFF.

  The Secretary shall--
          (1) not later than 60 days after the date of 
        enactment of the PROSPER Act, identify the number of 
        Department full-time equivalent employees who worked on 
        or administered each education program or project 
        authorized under this Act, as such program or project 
        was in effect on the day before such date, and publish 
        such information on the Department's website;
          (2) not later than 60 days after such date, identify 
        the number of full-time equivalent employees who worked 
        on or administered each program or project authorized 
        under this Act, as such program or project was in 
        effect on the day before such date, that has been 
        eliminated or consolidated since such date;
          (3) not later than 1 year after such date, reduce the 
        workforce of the Department by the number of full-time 
        equivalent employees the Department identified under 
        paragraph (2); and
          (4) not later than 1 year after such date, report to 
        the Congress on--
                  (A) the number of full-time equivalent 
                employees associated with each program or 
                project authorized under this Act and 
                administered by the Department;
                  (B) the number of full-time equivalent 
                employees who were determined to be associated 
                with eliminated or consolidated programs or 
                projects described in paragraph (2);
                  (C) how the Secretary has reduced the number 
                of full-time equivalent employees as described 
                in paragraph (3);
                  (D) the average salary of the full-time 
                equivalent employees described in subparagraph 
                (B) whose positions were eliminated; and
                  (E) the average salary of the full-time 
                equivalent employees who work on or administer 
                a program or project authorized by the 
                Department under this Act, disaggregated by 
                employee function within each such program or 
                project.

SEC. 127. DEPARTMENT OF HOMELAND SECURITY RECRUITING ON CAMPUS.

  None of the funds made available under this Act may be 
provided to any institution of higher education that has in 
effect a policy or practice that either prohibits, or in effect 
prevents, the Secretary of Homeland Security from gaining 
access to campuses or access to students (who are 17 years of 
age or older) on campuses, for purposes of Department of 
Homeland Security recruiting in a manner that is at least equal 
in quality and scope to the access to campuses and to students 
that is provided to any other employer.

           *       *       *       *       *       *       *


                    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)(ii);
                                  (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 
                authorizing committees 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) Promotion of the Department of Education Federal Student 
Financial Aid Website.--The Secretary shall display a link to 
the Federal student financial aid website of the Department in 
a prominent place on the homepage of the Department's website.
  (e) Enhanced Student Financial Aid Information.--
          (1) Implementation.--The Secretary shall continue to 
        improve the usefulness and accessibility of the 
        information provided by the Department on college 
        planning and student financial aid.
          (2) Dissemination.--The Secretary shall continue to 
        make the availability of the information on the Federal 
        student financial aid website of the Department widely 
        known, through a major media campaign and other forms 
        of communication.
          (3) Coordination.--As a part of the efforts required 
        under this subsection, the Secretary shall create one 
        website accessible from the Department's website that 
        fulfills the requirements under subsections (b), (f), 
        and (g).
  (f) Improved Availability and Coordination of Information 
Concerning Student Financial Aid Programs for Military Members 
and Veterans.--
          (1) Coordination.--The Secretary, in coordination 
        with the Secretary of Defense and the Secretary of 
        Veterans Affairs, shall create a searchable website 
        that--
                  (A) contains information, in simple and 
                understandable terms, about all Federal and 
                State student financial assistance, readmission 
                requirements under section 484C, and other 
                student services, for which members of the 
                Armed Forces (including members of the National 
                Guard and Reserves), veterans, and the 
                dependents of such members or veterans may be 
                eligible; and
                  (B) is easily accessible through the website 
                described in subsection (e)(3).
          (2) Implementation.--Not later than one year after 
        the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall make publicly 
        available the Armed Forces information website 
        described in paragraph (1).
          (3) Dissemination.--The Secretary, in coordination 
        with the Secretary of Defense and the Secretary of 
        Veterans Affairs, shall make the availability of the 
        Armed Forces information website described in paragraph 
        (1) widely known to members of the Armed Forces 
        (including members of the National Guard and Reserves), 
        veterans, the dependents of such members or veterans, 
        States, institutions of higher education, and the 
        general public.
          (4) Definition.--In this subsection, the term 
        ``Federal and State student financial assistance'' 
        means any grant, loan, work assistance, tuition 
        assistance, scholarship, fellowship, or other form of 
        financial aid for pursuing a postsecondary education 
        that is--
                  (A) administered, sponsored, or supported by 
                the Department of Education, the Department of 
                Defense, the Department of Veterans Affairs, or 
                a State; and
                  (B) available to members of the Armed Forces 
                (including members of the National Guard and 
                Reserves), veterans, or the dependents of such 
                members or veterans.
  (g) Promotion of Availability of Information Concerning Other 
Student Financial Aid Programs.--
          (1) Definition.--For purposes of this subsection, the 
        term ``nondepartmental student financial assistance 
        program'' means any grant, loan, scholarship, 
        fellowship, or other form of financial aid for students 
        pursuing a postsecondary education that is--
                  (A) distributed directly to the student or to 
                the student's account at an institution of 
                higher education; and
                  (B) operated, sponsored, or supported by a 
                Federal department or agency other than the 
                Department of Education.
          (2) Availability of other student financial aid 
        information.--The Secretary shall ensure that--
                  (A) not later than 90 days after the 
                Secretary receives the information required 
                under paragraph (3), the eligibility 
                requirements, application procedures, financial 
                terms and conditions, and other relevant 
                information for each nondepartmental student 
                financial assistance program are searchable and 
                accessible through the Federal student 
                financial aid website in a manner that is 
                simple and understandable for students and the 
                students' families; and
                  (B) the website displaying the information 
                described in subparagraph (A) includes a link 
                to the National Database on Financial 
                Assistance for the Study of Science, 
                Technology, Engineering, and Mathematics 
                pursuant to paragraph (4), and the information 
                on military benefits under subsection (f), once 
                such Database and information are available.
          (3) Nondepartmental student financial assistance 
        programs.--The Secretary shall request all Federal 
        departments and agencies to provide the information 
        described in paragraph (2)(A), and each Federal 
        department or agency shall--
                  (A) promptly respond to surveys or other 
                requests from the Secretary for the information 
                described in such paragraph; and
                  (B) identify for the Secretary any 
                nondepartmental student financial assistance 
                program operated, sponsored, or supported by 
                such Federal department or agency.
          (4) National stem database.--
                  (A) In general.--The Secretary shall 
                establish and maintain, on the website 
                described in subsection (e)(3), a National 
                Database on Financial Assistance for the Study 
                of Science, Technology, Engineering, and 
                Mathematics (in this paragraph referred to as 
                the ``STEM Database''). The STEM Database shall 
                consist of information on scholarships, 
                fellowships, and other programs of Federal, 
                State, local, and, to the maximum extent 
                practicable, private financial assistance 
                available for the study of science, technology, 
                engineering, or mathematics at the 
                postsecondary and postbaccalaureate levels.
                  (B) Database contents.--The information 
                maintained on the STEM Database shall be 
                displayed on the website in the following 
                manner:
                          (i) Separate information.--The STEM 
                        Database shall provide separate 
                        information for each of the fields of 
                        science, technology, engineering, and 
                        mathematics, and for postsecondary and 
                        postbaccalaureate programs of financial 
                        assistance.
                          (ii) Information on targeted 
                        assistance.--The STEM Database shall 
                        provide specific information on any 
                        program of financial assistance that is 
                        targeted to individuals based on 
                        financial need, merit, or student 
                        characteristics.
                          (iii) Contact and website 
                        information.--The STEM Database shall 
                        provide--
                                  (I) standard contact 
                                information that an interested 
                                person may use to contact a 
                                sponsor of any program of 
                                financial assistance included 
                                in the STEM Database; and
                                  (II) if such sponsor 
                                maintains a public website, a 
                                link to the website.
                          (iv) Search and match capabilities.--
                        The STEM Database shall--
                                  (I) have a search capability 
                                that permits an individual to 
                                search for information on the 
                                basis of each category of the 
                                information provided through 
                                the STEM Database and on the 
                                basis of combinations of 
                                categories of the information 
                                provided, including--
                                          (aa) whether the 
                                        financial assistance is 
                                        need- or merit-based; 
                                        and
                                          (bb) by relevant 
                                        academic majors; and
                                  (II) have a match capability 
                                that--
                                          (aa) searches the 
                                        STEM Database for all 
                                        financial assistance 
                                        opportunities for which 
                                        an individual may be 
                                        qualified to apply, 
                                        based on the student 
                                        characteristics 
                                        provided by such 
                                        individual; and
                                          (bb) provides 
                                        information to an 
                                        individual for only 
                                        those opportunities for 
                                        which such individual 
                                        is qualified, based on 
                                        the student 
                                        characteristics 
                                        provided by such 
                                        individual.
                          (v) Recommendation and disclaimer.--
                        The STEM Database shall provide, to the 
                        users of the STEM Database--
                                  (I) a recommendation that 
                                students and families should 
                                carefully review all of the 
                                application requirements prior 
                                to applying for any aid or 
                                program of student financial 
                                assistance; and
                                  (II) a disclaimer that the 
                                non-Federal programs of student 
                                financial assistance presented 
                                in the STEM Database are not 
                                provided or endorsed by the 
                                Department or the Federal 
                                Government.
                  (C) Compilation of financial assistance 
                information.--In carrying out this paragraph, 
                the Secretary shall--
                          (i) consult with public and private 
                        sources of scholarships, fellowships, 
                        and other programs of student financial 
                        assistance; and
                          (ii) make easily available a process 
                        for such entities to provide regular 
                        and updated information about the 
                        scholarships, fellowships, or other 
                        programs of student financial 
                        assistance.
                  (D) Contract authorized.--In carrying out the 
                requirements of this paragraph, the Secretary 
                is authorized to enter into a contract with a 
                private entity with demonstrated expertise in 
                creating and maintaining databases such as the 
                one required under this paragraph, under which 
                contract the entity shall furnish, and 
                regularly update, all of the information 
                required to be maintained on the STEM Database.
          (5) Dissemination of information.--The Secretary 
        shall take such actions, on an ongoing basis, as may be 
        necessary to disseminate information under this 
        subsection and to encourage the use of the information 
        by interested parties, including sending notices to 
        secondary schools and institutions of higher education.
  (h) No User Fees for Department Financial Aid Websites.--No 
fee shall be charged to any individual to access--
          (1) a database or website of the Department that 
        provides information about higher education programs or 
        student financial assistance, including the [College 
        Navigator] College Dashboard website (or successor 
        website) and the websites and databases described in 
        this section and section 132; or
          (2) information about higher education programs or 
        student financial assistance available through a 
        database or website of the Department.

SEC. 132. TRANSPARENCY IN COLLEGE TUITION FOR CONSUMERS.

  (a) Definitions.--In this section:
          [(1) College navigator website.--The term ``College 
        Navigator website'' means the College Navigator website 
        operated by the Department and includes any successor 
        website.]
          (1) College dashboard website.--The term ``College 
        Dashboard website'' means the College Dashboard website 
        required under subsection (d).
          (2) Cost of attendance.--The term ``cost of 
        attendance'' means the average annual cost of tuition 
        and fees, room and board, books, supplies, and 
        transportation for an institution of higher education 
        for a [first-time,] full-time undergraduate student 
        enrolled in the institution.
          (3) Net price.--The term ``net price'' means the 
        average yearly price actually charged to [first-time,] 
        full-time undergraduate students receiving student aid 
        at an institution of higher education after deducting 
        such aid, which shall be determined by calculating the 
        difference between--
                  (A) the institution's cost of attendance for 
                the year for which the determination is made; 
                and
                  (B) the quotient of--
                          (i) the total amount of need-based 
                        grant aid and merit-based grant aid, 
                        from Federal, State, and institutional 
                        sources, provided to such students 
                        enrolled in the institution for such 
                        year; and
                          (ii) the total number of such 
                        students receiving such need-based 
                        grant aid or merit-based grant aid for 
                        such year.
          (4) Tuition and fees.--The term ``tuition and fees'' 
        means the average annual cost of tuition and fees for 
        an institution of higher education for [first-time,] 
        full-time undergraduate students enrolled in the 
        institution.
  (b) Calculations for Public Institutions.--In making the 
calculations regarding cost of attendance, net price, and 
tuition and fees under this section with respect to a public 
institution of higher education, the Secretary shall calculate 
the cost of attendance, net price, and tuition and fees at such 
institution in the manner described in subsection (a), except 
that--
          (1) the cost of attendance, net price, and tuition 
        and fees shall be calculated for [first-time,] full-
        time undergraduate students enrolled in the institution 
        who are residents of the State in which such 
        institution is located; and
          (2) in determining the net price, the average need-
        based grant aid and merit-based grant aid described in 
        subsection (a)(3)(B) shall be calculated based on the 
        average total amount of such aid received by [first-
        time,] full-time undergraduate students who are 
        residents of the State in which such institution is 
        located, divided by the total number of such resident 
        students receiving such need-based grant aid or merit-
        based grant aid at such institution.
  [(c) College Affordability and Transparency Lists.--
          [(1) Availability of lists.--Beginning July 1, 2011, 
        the Secretary shall make publicly available on the 
        College Navigator website, in a manner that is sortable 
        and searchable by State, the following:
                  [(A) A list of the five percent of 
                institutions in each category described in 
                subsection (d) that have the highest tuition 
                and fees for the most recent academic year for 
                which data are available.
                  [(B) A list of the five percent of 
                institutions in each such category that have 
                the highest net price for the most recent 
                academic year for which data are available.
                  [(C) A list of the five percent of 
                institutions in each such category that have 
                the largest increase, expressed as a percentage 
                change, in tuition and fees over the most 
                recent three academic years for which data are 
                available, using the first academic year of the 
                three-year period as the base year to compute 
                such percentage change.
                  [(D) A list of the five percent of 
                institutions in each such category that have 
                the largest increase, expressed as a percentage 
                change, in net price over the most recent three 
                academic years for which data are available, 
                using the first academic year of the three-year 
                period as the base year to compute such 
                percentage change.
                  [(E) A list of the ten percent of 
                institutions in each such category that have 
                the lowest tuition and fees for the most recent 
                academic year for which data are available.
                  [(F) A list of the ten percent of 
                institutions in each such category that have 
                the lowest net price for the most recent 
                academic year for which data are available.
          [(2) Annual updates.--The Secretary shall annually 
        update the lists described in paragraph (1) on the 
        College Navigator website.
  [(d) Categories of Institutions.--The lists described in 
subsection (c)(1) shall be compiled according to the following 
categories of institutions that participate in programs under 
title IV:
          [(1) Four-year public institutions of higher 
        education.
          [(2) Four-year private, nonprofit institutions of 
        higher education.
          [(3) Four-year private, for-profit institutions of 
        higher education.
          [(4) Two-year public institutions of higher 
        education.
          [(5) Two-year private, nonprofit institutions of 
        higher education.
          [(6) Two-year private, for-profit institutions of 
        higher education.
          [(7) Less than two-year public institutions of higher 
        education.
          [(8) Less than two-year private, nonprofit 
        institutions of higher education.
          [(9) Less than two-year private, for-profit 
        institutions of higher education.
  [(e) Reports by Institutions.--
          [(1) Report to secretary.--If an institution of 
        higher education is included on a list described in 
        subparagraph (C) or (D) of subsection (c)(1), the 
        institution shall submit to the Secretary a report 
        containing the following information:
                  [(A) A description of the major areas in the 
                institution's budget with the greatest cost 
                increases.
                  [(B) An explanation of the cost increases 
                described in subparagraph (A).
                  [(C) A description of the steps the 
                institution will take toward the goal of 
                reducing costs in the areas described in 
                subparagraph (A).
                  [(D) In the case of an institution that is 
                included on the same list under subparagraph 
                (C) or (D) of subsection (c)(1) for two or more 
                consecutive years, a description of the 
                progress made on the steps described in 
                subparagraph (C) of this paragraph that were 
                included in the institution's report for the 
                previous year.
                  [(E) If the determination of any cost 
                increase described in subparagraph (A) is not 
                within the exclusive control of the 
                institution--
                          [(i) an explanation of the extent to 
                        which the institution participates in 
                        determining such cost increase;
                          [(ii) the identification of the 
                        agency or instrumentality of State 
                        government responsible for determining 
                        such cost increase; and
                          [(iii) any other information the 
                        institution considers relevant to the 
                        report.
          [(2) Information to the public.--The Secretary 
        shall--
                  [(A) issue an annual report that summarizes 
                all of the reports by institutions required 
                under paragraph (1) to the authorizing 
                committees; and
                  [(B) publish such report on the College 
                Navigator website.
  [(f) Exemptions.--
          [(1) In general.--An institution shall not be placed 
        on a list described in subparagraph (C) or (D) of 
        subsection (c)(1), and shall not be subject to the 
        reporting required under subsection (e), if the dollar 
        amount of the institution's increase in tuition and 
        fees, or net price, as applicable, is less than $600 
        for the three-year period described in such 
        subparagraph.
          [(2) Update.--Beginning in 2014, and every three 
        years thereafter, the Secretary shall update the dollar 
        amount described in paragraph (1) based on annual 
        increases in inflation, using the Consumer Price Index 
        for each of the three most recent preceding years.
  [(g) State Higher Education Spending Chart.--The Secretary 
shall annually report on the College Navigator website, in 
charts for each State, comparisons of--
          [(1) the percentage change in spending by such State 
        per full-time equivalent student at all public 
        institutions of higher education in such State, for 
        each of the five most recent preceding academic years;
          [(2) the percentage change in tuition and fees for 
        such students for all public institutions of higher 
        education in such State for each of the five most 
        recent preceding academic years; and
          [(3) the percentage change in the total amount of 
        need-based aid and merit-based aid provided by such 
        State to full-time students enrolled in the public 
        institutions of higher education in the State for each 
        of the five most recent preceding academic years.]
  [(h)] (c) Net Price Calculator.--
          (1) Development of net price calculator.--Not later 
        than one year after the date of enactment of theHigher 
        Education Opportunity Act, the Secretary shall, in 
        consultation with institutions of higher education and 
        other appropriate experts, develop a net price 
        calculator to help current and prospective students, 
        families, and other consumers estimate the individual 
        net price of an institution of higher education for a 
        student. The calculator shall be developed in a manner 
        that enables current and prospective students, 
        families, and consumers to determine an estimate of a 
        current or prospective student's individual net price 
        at a particular institution.
          (2) Calculation of individual net price.--For 
        purposes of this subsection, an individual net price of 
        an institution of higher education shall be calculated 
        in the same manner as the net price of such institution 
        is calculated under subsection (a)(3), except that the 
        cost of attendance and the amount of need-based and 
        merit-based aid available shall be calculated for the 
        individual student as much as practicable.
          (3) Use of net price calculator by institutions.--Not 
        later than two years after the date on which the 
        Secretary makes the calculator developed under 
        paragraph (1) available to institutions of higher 
        education, each institution of higher education that 
        receives Federal funds under title IV shall make 
        publicly available on the institution's website a net 
        price calculator to help current and prospective 
        students, families, and other consumers estimate a 
        student's individual net price at such institution of 
        higher education. Such calculator may be a net price 
        calculator developed--
                  (A) by the Department pursuant to paragraph 
                (1); or
                  (B) by the institution of higher education, 
                if the institution's calculator includes, at a 
                minimum, the same data elements included in the 
                calculator developed under paragraph (1).
          (4) Minimum requirements for net price calculators.--
        Not later than 1 year after the date of the enactment 
        of the PROSPER Act, a net price calculator for an 
        institution of higher education shall meet the 
        following requirements:
                  (A) The link for the calculator shall--
                          (i) be clearly labeled as a net price 
                        calculator and prominently, clearly, 
                        and conspicuously posted in locations 
                        on the website of such institution 
                        where information on costs and aid is 
                        provided and any other location that 
                        the institution considers appropriate; 
                        and
                          (ii) match in size and font to the 
                        other prominent links on the webpage 
                        where the link for the calculator is 
                        displayed.
                  (B) The webpage displaying the results for 
                the calculator shall specify at least the 
                following information:
                          (i) The net price (as calculated 
                        under subsection (a)(3)) for such 
                        institution, which shall be the most 
                        visually prominent figure on the 
                        results screen.
                          (ii) Cost of attendance, including--
                                  (I) tuition and fees;
                                  (II) average annual cost of 
                                room and board for the 
                                institution for a full-time 
                                undergraduate student enrolled 
                                in the institution;
                                  (III) average annual cost of 
                                books and supplies for a full-
                                time undergraduate student 
                                enrolled in the institution; 
                                and
                                  (IV) estimated cost of other 
                                expenses (including personal 
                                expenses and transportation) 
                                for a full-time undergraduate 
                                student enrolled in the 
                                institution.
                          (iii) Estimated total need-based 
                        grant aid and merit-based grant aid 
                        from Federal, State, and institutional 
                        sources that may be available to a 
                        full-time undergraduate student.
                          (iv) Percentage of the full-time 
                        undergraduate students enrolled in the 
                        institution that received any type of 
                        grant aid described in clause (iii).
                          (v) The disclaimer described in 
                        paragraph (6).
                          (vi) In the case of a calculator 
                        that--
                                  (I) includes questions to 
                                estimate the eligibility of a 
                                student or prospective student 
                                for veterans' education 
                                benefits (as defined in section 
                                480) or educational benefits 
                                for active duty service 
                                members, such benefits are 
                                displayed on the results screen 
                                in a manner that clearly 
                                distinguishes such benefits 
                                from the grant aid described in 
                                clause (iii); or
                                  (II) does not include 
                                questions to estimate 
                                eligibility for the benefits 
                                described in subclause (I), the 
                                results screen indicates that 
                                certain students (or 
                                prospective students) may 
                                qualify for such benefits and 
                                includes a link to information 
                                about such benefits.
                  (C) The institution shall populate the 
                calculator with data from an academic year that 
                is not more than 2 academic years prior to the 
                most recent academic year.
          (5) Prohibition on use of data collected by the net 
        price calculator.--A net price calculator for an 
        institution of higher education shall--
                  (A) clearly indicate which questions are 
                required to be completed for an estimate of the 
                net price from the calculator;
                  (B) in the case of a calculator that requests 
                contact information from users, clearly mark 
                such requests as optional and provide for an 
                estimate of the net price from the calculator 
                without requiring users to enter such 
                information; and
                  (C) prohibit any personally identifiable 
                information provided by users from being sold 
                or made available to third parties.
          [(4)] (6) Disclaimer.--Estimates of an individual net 
        price determined using a net price calculator required 
        under paragraph (3) shall be accompanied by a clear and 
        conspicuous notice--
                  (A) stating that the estimate--
                          (i) does not represent a final 
                        determination, or actual award, of 
                        financial assistance;
                          (ii) shall not be binding on the 
                        Secretary, the institution of higher 
                        education, or the State; and
                          (iii) may change;
                  (B) stating that the student must complete 
                the Free Application for Federal Student Aid 
                described in section 483 in order to be 
                eligible for, and receive, an actual financial 
                aid award that includes Federal grant, loan, or 
                work-study assistance under title IV; and
                  (C) including a link to the website of the 
                Department that allows students to access the 
                Free Application for Federal Student Aid 
                described in section 483.
  [(i) Consumer Information.--
          [(1) Availability of title iv institution 
        information.--Not later than one year after the date of 
        enactment of theHigher Education Opportunity Act, the 
        Secretary shall make publicly available on the College 
        Navigator website, in simple and understandable terms, 
        the following information about each institution of 
        higher education that participates in programs under 
        title IV, for the most recent academic year for which 
        satisfactory data are available:
                  [(A) A statement of the institution's 
                mission.
                  [(B) The total number of undergraduate 
                students who applied to, were admitted by, and 
                enrolled in the institution.
                  [(C) For institutions that require SAT or ACT 
                scores to be submitted, the reading, writing, 
                mathematics, and combined scores on the SAT or 
                ACT, as applicable, for the middle 50 percent 
                range of the institution's freshman class.
                  [(D) The number of first-time, full-time, and 
                part-time students enrolled at the institution, 
                at the undergraduate and (if applicable) 
                graduate levels.
                  [(E) The number of degree- or certificate-
                seeking undergraduate students enrolled at the 
                institution who have transferred from another 
                institution.
                  [(F) The percentages of male and female 
                undergraduate students enrolled at the 
                institution.
                  [(G) Of the first-time, full-time, degree- or 
                certificate-seeking undergraduate students 
                enrolled at the institution--
                          [(i) the percentage of such students 
                        who are from the State in which the 
                        institution is located;
                          [(ii) the percentage of such students 
                        who are from other States; and
                          [(iii) the percentage of such 
                        students who are international 
                        students.
                  [(H) The percentages of first-time, full-
                time, degree- or certificate-seeking students 
                enrolled at the institution, disaggregated by 
                race and ethnic background.
                  [(I) The percentage of undergraduate students 
                enrolled at the institution who are formally 
                registered with the office of disability 
                services of the institution (or the equivalent 
                office) as students with disabilities, except 
                that if such percentage is three percent or 
                less, the institution shall report ``three 
                percent or less''.
                  [(J) The percentages of first-time, full-
                time, degree- or certificate-seeking 
                undergraduate students enrolled at the 
                institution who obtain a degree or certificate 
                within--
                          [(i) the normal time for completion 
                        of, or graduation from, the student's 
                        program;
                          [(ii) 150 percent of the normal time 
                        for completion of, or graduation from, 
                        the student's program; and
                          [(iii) 200 percent of the normal time 
                        for completion of, or graduation from, 
                        the student's program;
                  [(K) The number of certificates, associate 
                degrees, baccalaureate degrees, master's 
                degrees, professional degrees, and doctoral 
                degrees awarded by the institution.
                  [(L) The undergraduate major areas of study 
                at the institution with the highest number of 
                degrees awarded.
                  [(M) The student-faculty ratio, the number of 
                full-time and part-time faculty, and the number 
                of graduate assistants with primarily 
                instructional responsibilities, at the 
                institution.
                  [(N)(i) The cost of attendance for first-
                time, full-time undergraduate students enrolled 
                in the institution who live on campus;
                  [(ii) the cost of attendance for first-time, 
                full-time undergraduate students enrolled in 
                the institution who live off campus; and
                  [(iii) in the case of a public institution of 
                higher education and notwithstanding subsection 
                (b)(1), the costs described in clauses (i) and 
                (ii), for--
                          [(I) first-time, full-time students 
                        enrolled in the institution who are 
                        residents of the State in which the 
                        institution is located; and
                          [(II) first-time, full-time students 
                        enrolled in the institution who are not 
                        residents of such State.
                  [(O) The average annual grant amount 
                (including Federal, State, and institutional 
                aid) awarded to a first-time, full-time 
                undergraduate student enrolled at the 
                institution who receives financial aid.
                  [(P) The average annual amount of Federal 
                student loans provided through the institution 
                to undergraduate students enrolled at the 
                institution.
                  [(Q) The total annual grant aid awarded to 
                undergraduate students enrolled at the 
                institution, from the Federal Government, a 
                State, the institution, and other sources known 
                by the institution.
                  [(R) The percentage of first-time, full-time 
                undergraduate students enrolled at the 
                institution receiving Federal, State, and 
                institutional grants, student loans, and any 
                other type of student financial assistance 
                known by the institution, provided publicly or 
                through the institution, such as Federal work-
                study funds.
                  [(S) The number of students enrolled at the 
                institution receiving Federal Pell Grants.
                  [(T) The institution's cohort default rate, 
                as defined under section 435(m).
                  [(U) The information on campus safety 
                required to be collected under section 485(i).
                  [(V) A link to the institution's website that 
                provides, in an easily accessible manner, the 
                following information:
                          [(i) Student activities offered by 
                        the institution.
                          [(ii) Services offered by the 
                        institution for individuals with 
                        disabilities.
                          [(iii) Career and placement services 
                        offered by the institution to students 
                        during and after enrollment.
                          [(iv) Policies of the institution 
                        related to transfer of credit from 
                        other institutions.
                  [(W) A link to the appropriate section of the 
                Bureau of Labor Statistics website that 
                provides information on regional data on 
                starting salaries in all major occupations.
                  [(X) Information required to be submitted 
                under paragraph (4) and a link to the 
                institution pricing summary page described in 
                paragraph (5).
                  [(Y) In the case of an institution that was 
                required to submit a report under subsection 
                (e)(1), a link to such report.
                  [(Z) The availability of alternative tuition 
                plans, which may include guaranteed tuition 
                plans.
          [(2) Annual updates.--The Secretary shall annually 
        update the information described in paragraph (1) on 
        the College Navigator website.
          [(3) Consultation.--The Secretary shall regularly 
        consult with current and prospective college students, 
        family members of such students, institutions of higher 
        education, and other experts to improve the usefulness 
        and relevance of the College Navigator website, with 
        respect to the presentation of the consumer information 
        collected in paragraph (1).
          [(4) Data collection.--The Commissioner for Education 
        Statistics shall continue to update and improve the 
        Integrated Postsecondary Education Data System 
        (referred to in this section as ``IPEDS''), including 
        the reporting of information by institutions and the 
        timeliness of the data collected.
          [(5) Institution pricing summary page.--
                  [(A) Availability of list of participating 
                institutions.--The Secretary shall make 
                publicly available on the College Navigator 
                website in a sortable and searchable format a 
                list of all institutions of higher education 
                that participate in programs under title IV, 
                which list shall, for each institution, include 
                the following:
                          [(i) The tuition and fees for each of 
                        the three most recent academic years 
                        for which data are available.
                          [(ii) The net price for each of the 
                        three most recent available academic 
                        years for which data are available.
                          [(iii)(I) During the period beginning 
                        July 1, 2010, and ending June 30, 2013, 
                        the net price for students receiving 
                        Federal student financial aid under 
                        title IV, disaggregated by the income 
                        categories described in paragraph (6), 
                        for the most recent academic year for 
                        which data are available.
                          [(II) Beginning July 1, 2013, the net 
                        price for students receiving Federal 
                        student financial aid under title IV, 
                        disaggregated by the income categories 
                        described in paragraph (6), for each of 
                        the three most recent academic years 
                        for which data are available.
                          [(iv) The average annual percentage 
                        change and average annual dollar change 
                        in such institution's tuition and fees 
                        for each of the three most recent 
                        academic years for which data are 
                        available.
                          [(v) The average annual percentage 
                        change and average annual dollar change 
                        in such institution's net price for 
                        each of the three most recent preceding 
                        academic years for which data are 
                        available.
                          [(vi) A link to the webpage on the 
                        College Navigator website that provides 
                        the information described in paragraph 
                        (1) for the institution.
                  [(B) Annual updates.--The Secretary shall 
                annually update the lists described in 
                subparagraph (A) on the College Navigator 
                website.
          [(6) Income categories.--
                  [(A) In general.--For purposes of reporting 
                the information required under this subsection, 
                the following income categories shall apply for 
                students who receive Federal student financial 
                aid under title IV:
                          [(i) $0-30,000.
                          [(ii) $30,001-48,000.
                          [(iii) $48,001-75,000.
                          [(iv) $75,001-110,000.
                          [(v) $110,001 and more.
                  [(B) Adjustment.--The Secretary may adjust 
                the income categories listed in subparagraph 
                (A) using the Consumer Price Index if the 
                Secretary determines such adjustment is 
                necessary.]
  (d) Consumer Information.--
          (1) Availability of title iv institution 
        information.--The Secretary shall develop and make 
        publicly available a website to be known as the 
        ``College Dashboard website'' in accordance with this 
        section and prominently display on such website, in 
        simple, understandable, and unbiased terms for the most 
        recent academic year for which satisfactory data are 
        available, the following information with respect to 
        each institution of higher education that participates 
        in a program under title IV:
                  (A) A link to the website of the institution.
                  (B) An identification of the type of 
                institution as one of the following:
                          (i) A four-year public institution of 
                        higher education.
                          (ii) A four-year private, nonprofit 
                        institution of higher education.
                          (iii) A four-year private, 
                        proprietary institution of higher 
                        education.
                          (iv) A two-year public institution of 
                        higher education.
                          (v) A two-year private, nonprofit 
                        institution of higher education.
                          (vi) A two-year private, proprietary 
                        institution of higher education.
                          (vii) A less than two-year public 
                        institution of higher education.
                          (viii) A less than two-year private, 
                        nonprofit institution of higher 
                        education.
                          (ix) A less than two-year private, 
                        proprietary institution of higher 
                        education.
                  (C) The number of students enrolled at the 
                institution--
                          (i) as undergraduate students, if 
                        applicable; and
                          (ii) as graduate students, if 
                        applicable.
                  (D) The student-faculty ratio.
                  (E) The percentage of degree-seeking or 
                certificate-seeking undergraduate students 
                enrolled at the institution who obtain a degree 
                or certificate within--
                          (i) 100 percent of the normal time 
                        for completion of, or graduation from, 
                        the program in which the student is 
                        enrolled;
                          (ii) 150 percent of the normal time 
                        for completion of, or graduation from, 
                        the program in which the student is 
                        enrolled;
                          (iii) 200 percent of the normal time 
                        for completion of, or graduation from, 
                        the program in which the student is 
                        enrolled; and
                          (iv) 300 percent of the normal time 
                        for completion of, or graduation from, 
                        the program in which the student is 
                        enrolled, for institutions at which the 
                        highest degree offered is predominantly 
                        an associate's degree.
                  (F)(i) The average net price per year for 
                undergraduate students enrolled at the 
                institution who received Federal student 
                financial aid under title IV based on 
                dependency status and an income category 
                selected by the user of the College Dashboard 
                website from a list containing the following 
                income categories:
                          (I) $0 to $30,000.
                          (II) $30,001 to $48,000.
                          (III) $48,001 to $75,000.
                          (IV) $75,001 to $110,000.
                          (V) $110, 001 to $150,000.
                          (VI) Over $150,000.
                  (ii) A link to the net price calculator for 
                such institution.
                  (G) The percentage of undergraduate and 
                graduate students who obtained a certificate or 
                degree from the institution who borrowed 
                Federal student loans--
                          (i) set forth separately for each 
                        educational program offered by the 
                        institution; and
                          (ii) made available in a format that 
                        allows a user of the College Dashboard 
                        website to view such percentage by 
                        selecting from a list of such 
                        educational programs.
                  (H) The average Federal student loan debt 
                incurred by a student who obtained a 
                certificate or degree in an educational program 
                from the institution and who borrowed Federal 
                student loans in the course of obtaining such 
                certificate or degree--
                          (i) set forth separately for each 
                        educational program offered by the 
                        institution; and
                          (ii) made available in a format that 
                        allows a user of the College Dashboard 
                        website to view such student loan debt 
                        information by selecting from a list of 
                        such educational programs.
                  (I) The median earnings of students who 
                obtained a certificate or degree in an 
                educational program from the institution and 
                who received Federal student financial aid 
                under title IV in the course of obtaining such 
                certificate or degree--
                          (i) in the fifth and tenth years 
                        following the year in which the 
                        students obtained such certificate or 
                        degree;
                          (ii) set forth separately by 
                        educational program; and
                          (iii) made available in a format that 
                        allows a user of the College Dashboard 
                        website to view such median earnings 
                        information by selecting from a list of 
                        such educational programs.
                  (J) A link to the webpage of the institution 
                containing campus safety data with respect to 
                such institution.
          (2) Additional information.--The Secretary shall 
        publish on websites that are linked to through the 
        College Dashboard website, for the most recent academic 
        year for which satisfactory data is available, the 
        following information with respect to each institution 
        of higher education that participates in a program 
        under title IV:
                  (A) Enrollment.--The following enrollment 
                information:
                          (i) The percentages of male and 
                        female undergraduate students enrolled 
                        at the institution.
                          (ii) The percentages of undergraduate 
                        students enrolled at the institution--
                                  (I) full-time; and
                                  (II) less than full-time.
                          (iii) In the case of an institution 
                        other than an institution that provides 
                        all courses and programs through online 
                        education, of the undergraduate 
                        students enrolled at the institution--
                                  (I) the percentage of such 
                                students who are residents of 
                                the State in which the 
                                institution is located;
                                  (II) the percentage of such 
                                students who are not residents 
                                of such State; and
                                  (III) the percentage of such 
                                students who are international 
                                students.
                          (iv) The percentages of undergraduate 
                        students enrolled at the institution, 
                        disaggregated by--
                                  (I) race and ethnic 
                                background;
                                  (II) classification as a 
                                student with a disability;
                                  (III) recipients of a Federal 
                                Pell Grant;
                                  (IV) recipients of assistance 
                                under a tuition assistance 
                                program conducted by the 
                                Department of Defense under 
                                section 1784a or 2007 of title 
                                10, United States Code, or 
                                other authorities available to 
                                the Department of Defense or 
                                veterans' education benefits 
                                (as defined in section 480); 
                                and
                                  (V) recipients of a Federal 
                                student loan.
                  (B) Completion.--The information required 
                under paragraph (1)(E), disaggregated by--
                          (i) recipients of a Federal Pell 
                        Grant;
                          (ii) race and ethnic background;
                          (iii) classification as a student 
                        with a disability;
                          (iv) recipients of assistance under a 
                        tuition assistance program conducted by 
                        the Department of Defense under section 
                        1784a or 2007 of title 10, United 
                        States Code, or other authorities 
                        available to the Department of Defense 
                        or veterans' education benefits (as 
                        defined in section 480); and
                          (v) recipients of a Federal student 
                        loan.
                  (C) Costs.--The following cost information:
                          (i) The cost of attendance for full-
                        time undergraduate students enrolled in 
                        the institution who live on campus.
                          (ii) The cost of attendance for full-
                        time undergraduate students enrolled in 
                        the institution who live off campus.
                          (iii) The cost of tuition and fees 
                        for full-time undergraduate students 
                        enrolled in the institution.
                          (iv) The cost of tuition and fees per 
                        credit hour or credit hour equivalency 
                        for undergraduate students enrolled in 
                        the institution less than full time.
                          (v) In the case of a public 
                        institution of higher education (other 
                        than an institution described in clause 
                        (vi)) and notwithstanding subsection 
                        (b)(1), the costs described in clauses 
                        (i) and (ii) for--
                                  (I) full-time students 
                                enrolled in the institution who 
                                are residents of the State in 
                                which the institution is 
                                located; and
                                  (II) full-time students 
                                enrolled in the institution who 
                                are not residents of such 
                                State.
                          (vi) In the case of a public 
                        institution of higher education that 
                        offers different tuition rates for 
                        students who are residents of a 
                        geographic subdivision smaller than a 
                        State and students not located in such 
                        geographic subdivision and 
                        notwithstanding subsection (b)(1), the 
                        costs described in clauses (i) and (ii) 
                        for--
                                  (I) full-time students 
                                enrolled at the institution who 
                                are residents of such 
                                geographic subdivision;
                                  (II) full-time students 
                                enrolled at the institution who 
                                are residents of the State in 
                                which the institution is 
                                located but not residents of 
                                such geographic subdivision; 
                                and
                                  (III) full-time students 
                                enrolled at the institution who 
                                are not residents of such 
                                State.
                  (D) Financial aid.--The following information 
                with respect to financial aid:
                          (i) The average annual grant amount 
                        (including Federal, State, and 
                        institutional aid) awarded to an 
                        undergraduate student enrolled at the 
                        institution who receives grant aid, and 
                        the percentage of undergraduate 
                        students receiving such aid.
                          (ii) The percentage of undergraduate 
                        students enrolled at the institution 
                        receiving Federal, State, and 
                        institutional grants, student loans, 
                        and any other type of student financial 
                        assistance known by the institution, 
                        provided publicly or through the 
                        institution, such as Federal work-study 
                        funds.
                          (iii) The loan repayment rate (as 
                        defined in section 481B) for each 
                        educational program at such 
                        institution.
          (3) Other data matters.--
                  (A) Completion data.--The Commissioner of 
                Education Statistics shall ensure that the 
                information required under paragraph (1)(E) 
                includes information with respect to all 
                students at an institution, in a manner that 
                accurately reflects the actual length of the 
                program, including students other than first-
                time, full-time students and students who 
                transfer to another institution, in a manner 
                that the Commissioner considers appropriate.
                  (B) Adjustment of income categories.--The 
                Secretary may annually adjust the range of each 
                of the income categories described in paragraph 
                (1)(F) to account for a change in the Consumer 
                Price Index for All Urban Consumers as 
                determined by the Bureau of Labor Statistics if 
                the Secretary determines an adjustment is 
                necessary.
          (4) Institutional comparison.--The Secretary shall 
        include on the College Dashboard website a method for 
        users to easily compare the information required under 
        paragraphs (1) and (2) between institutions.
          (5) Updates.--
                  (A) Data.--The Secretary shall update the 
                College Dashboard website not less than 
                annually.
                  (B) Technology and format.--The Secretary 
                shall regularly assess the format and 
                technology of the College Dashboard website and 
                make any changes or updates that the Secretary 
                considers appropriate.
          (6) Consumer testing.--
                  (A) In general.--In developing and 
                maintaining the College Dashboard website, the 
                Secretary, in consultation with appropriate 
                departments and agencies of the Federal 
                Government, shall conduct consumer testing with 
                appropriate persons, including current and 
                prospective college students, family members of 
                such students, institutions of higher 
                education, and experts, to ensure that the 
                College Dashboard website is usable and easily 
                understandable and provides useful and relevant 
                information to students and families.
                  (B) Recommendations for changes.--The 
                Secretary shall submit to the authorizing 
                committees any recommendations that the 
                Secretary considers appropriate for changing 
                the information required to be provided on the 
                College Dashboard website under paragraphs (1) 
                and (2) based on the results of the consumer 
                testing conducted under subparagraph (A).
          (7) Provision of appropriate links to prospective 
        students after submission of fafsa.--The Secretary 
        shall provide to each student who submits a Free 
        Application for Federal Student Aid described in 
        section 483 a link to the webpage of the College 
        Dashboard website that contains the information 
        required under paragraph (1) for each institution of 
        higher education such student includes on such 
        Application.
          (8) Interagency coordination.--The Secretary, in 
        consultation with each appropriate head of a department 
        or agency of the Federal Government, shall ensure to 
        the greatest extent practicable that any information 
        related to higher education that is published by such 
        department or agency is consistent with the information 
        published on the College Dashboard website.
          (9) Data collection.--The Commissioner for Education 
        Statistics shall continue to update and improve the 
        Integrated Postsecondary Education Data System, 
        including by reducing institutional reporting burden 
        and improving the timeliness of the data collected.
          (10) Data privacy.--The Secretary shall ensure any 
        information made available under this section is made 
        available in accordance with section 444 of the General 
        Education Provisions Act (commonly known as the 
        ``Family Educational Rights and Privacy Act of 1974'').
  [(j) Multi-Year Tuition Calculator.--
          [(1) Development of multi-year tuition calculator.--
        Not later than one year after the date of enactment of 
        theHigher Education Opportunity Act, the Secretary 
        shall, in consultation with institutions of higher 
        education, financial planners, and other appropriate 
        experts, develop a multi-year tuition calculator to 
        help current and prospective students, families of such 
        students, and other consumers estimate the amount of 
        tuition an individual may pay to attend an institution 
        of higher education in future years.
          [(2) Calculation of multi-year tuition.--The multi-
        year tuition calculator described in paragraph (1) 
        shall--
                  [(A) allow an individual to select an 
                institution of higher education for which the 
                calculation shall be made;
                  [(B) calculate an estimate of tuition and 
                fees for each year of the normal duration of 
                the program of study at such institution by--
                          [(i) using the tuition and fees for 
                        such institution, as reported under 
                        subsection (i)(5)(A)(i), for the most 
                        recent academic year for which such 
                        data are reported; and
                          [(ii) determining an estimated annual 
                        percentage change for each year for 
                        which the calculation is made, based on 
                        the annual percentage change in such 
                        institution's tuition and fees, as 
                        reported under subsection 
                        (i)(5)(A)(iv), for the most recent 
                        three-year period for which such data 
                        are reported;
                  [(C) calculate an estimate of the total 
                amount of tuition and fees to complete a 
                program of study at such institution, based on 
                the normal duration of such program, using the 
                estimate calculated under subparagraph (B) for 
                each year of the program of study;
                  [(D) provide the individual with the option 
                to replace the estimated annual percentage 
                change described in subparagraph (B)(ii) with 
                an alternative annual percentage change 
                specified by the individual, and calculate an 
                estimate of tuition and fees for each year and 
                an estimate of the total amount of tuition and 
                fees using the alternative percentage change;
                  [(E) in the case of an institution that 
                offers a multi-year tuition guarantee program, 
                allow the individual to have the estimates of 
                tuition and fees described in subparagraphs (B) 
                and (C) calculated based on the provisions of 
                such guarantee program for the tuition and fees 
                charged to a student, or cohort of students, 
                enrolled for the duration of the program of 
                study; and
                  [(F) include any other features or 
                information determined to be appropriate by the 
                Secretary.
          [(3) Availability and comparison.--The multi-year 
        tuition calculator described in paragraph (1) shall be 
        available on the College Navigator website and shall 
        allow current and prospective students, families of 
        such students, and consumers to compare information and 
        estimates under this subsection for multiple 
        institutions of higher education.
          [(4) Disclaimer.--Each calculation of estimated 
        tuition and fees made using the multi-year tuition 
        calculator described in paragraph (1) shall be 
        accompanied by a clear and conspicuous notice--
                  [(A) stating that the calculation--
                          [(i) is only an estimate and not a 
                        guarantee of the actual amount the 
                        student may be charged;
                          [(ii) is not binding on the 
                        Secretary, the institution of higher 
                        education, or the State; and
                          [(iii) may change, subject to the 
                        availability of financial assistance, 
                        State appropriations, and other 
                        factors;
                  [(B) stating that the student must complete 
                the Free Application for Federal Student Aid 
                described in section 483 in order to be 
                eligible for, and receive, an actual financial 
                aid award that includes Federal grant, loan, or 
                work-study assistance under title IV; and
                  [(C) including a link to the website of the 
                Department that allows students to access the 
                Free Application for Federal Student Aid 
                described in section 483.]
  [(k)] (e) Student Aid Recipient Survey.--
          (1) Survey required.--The Secretary, acting through 
        the Commissioner for Education Statistics, shall 
        conduct, on a State-by-State basis, a survey of 
        recipients of Federal student financial aid under title 
        IV--
                  (A) to identify the population of students 
                receiving such Federal student financial aid;
                  (B) to describe the income distribution and 
                other socioeconomic characteristics of 
                recipients of such Federal student financial 
                aid;
                  (C) to describe the combinations of aid from 
                Federal, State, and private sources received by 
                such recipients from all income categories;
                  (D) to describe the--
                          (i) debt burden of such loan 
                        recipients, and their capacity to repay 
                        their education debts; and
                          (ii) the impact of such debt burden 
                        on the recipients' course of study and 
                        post-graduation plans;
                  (E) to describe the impact of the cost of 
                attendance of postsecondary education in the 
                determination by students of what institution 
                of higher education to attend; and
                  (F) to describe how the costs of textbooks 
                and other instructional materials affect the 
                costs of postsecondary education for students.
          (2) Frequency.--The survey shall be conducted on a 
        regular cycle and not less often than once every four 
        years.
          (3) Survey design.--The survey shall be 
        representative of students from all types of 
        institutions, including full-time and part-time 
        students, undergraduate, graduate, and professional 
        students, and current and former students.
          (4) Dissemination.--The Commissioner for Education 
        Statistics shall disseminate to the public, in printed 
        and electronic form, the information resulting from the 
        survey.
  [(l) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.]

SEC. 133. TEXTBOOK INFORMATION.

  (a) Purpose and Intent.--The purpose of this section is to 
ensure that students have access to affordable course materials 
by decreasing costs to students and enhancing transparency and 
disclosure with respect to the selection, purchase, sale, and 
use of course materials. It is the intent of this section to 
encourage all of the involved parties, including faculty, 
students, administrators, institutions of higher education, 
bookstores, distributors, and publishers, to work together to 
identify ways to decrease the cost of college textbooks and 
supplemental materials for students while supporting the 
academic freedom of faculty members to select high quality 
course materials for students.
  (b) Definitions.--In this section:
          (1) Bundle.--The term ``bundle'' means one or more 
        college textbooks or other supplemental materials that 
        may be packaged together to be sold as course materials 
        for one price.
          (2) College textbook.--The term ``college textbook'' 
        means a textbook or a set of textbooks, used for, or in 
        conjunction with, a course in postsecondary education 
        at an institution of higher education.
          (3) Course schedule.--The term ``course schedule'' 
        means a listing of the courses or classes offered by an 
        institution of higher education for an academic period, 
        as defined by the institution.
          (4) Custom textbook.--The term ``custom textbook''--
                  (A) means a college textbook that is compiled 
                by a publisher at the direction of a faculty 
                member or other person or adopting entity in 
                charge of selecting course materials at an 
                institution of higher education; and
                  (B) may include, alone or in combination, 
                items such as selections from original 
                instructor materials, previously copyrighted 
                publisher materials, copyrighted third-party 
                works, and elements unique to a specific 
                institution, such as commemorative editions.
          (5) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given the term in [section 102] section 101 or 102.
          (6) Integrated textbook.--The term ``integrated 
        textbook'' means a college textbook that is--
                  (A) combined with materials developed by a 
                third party and that, by third-party 
                contractual agreement, may not be offered by 
                publishers separately from the college textbook 
                with which the materials are combined; or
                  (B) combined with other materials that are so 
                interrelated with the content of the college 
                textbook that the separation of the college 
                textbook from the other materials would render 
                the college textbook unusable for its intended 
                purpose.
          (7) Publisher.--The term ``publisher'' means a 
        publisher of college textbooks or supplemental 
        materials involved in or affecting interstate commerce.
          (8) Substantial content.--The term ``substantial 
        content'' means parts of a college textbook such as new 
        chapters, new material covering additional eras of 
        time, new themes, or new subject matter.
          (9) Supplemental material.--The term ``supplemental 
        material'' means educational material developed to 
        accompany a college textbook that--
                  (A) may include printed materials, computer 
                disks, website access, and electronically 
                distributed materials; and
                  (B) is not being used as a component of an 
                integrated textbook.
  (c) Publisher Requirements.--
          (1) College textbook pricing information.--When a 
        publisher provides a faculty member or other person or 
        adopting entity in charge of selecting course materials 
        at an institution of higher education receiving Federal 
        financial assistance with information regarding a 
        college textbook or supplemental material, the 
        publisher shall include, with any such information and 
        in writing (which may include electronic 
        communications), the following:
                  (A) The price at which the publisher would 
                make the college textbook or supplemental 
                material available to the bookstore on the 
                campus of, or otherwise associated with, such 
                institution of higher education and, if 
                available, the price at which the publisher 
                makes the college textbook or supplemental 
                material available to the public.
                  (B) The copyright dates of the three previous 
                editions of such college textbook, if any.
                  (C) A description of the substantial content 
                revisions made between the current edition of 
                the college textbook or supplemental material 
                and the previous edition, if any.
                  (D)(i) Whether the college textbook or 
                supplemental material is available in any other 
                format, including paperback and unbound; and
                  (ii) for each other format of the college 
                textbook or supplemental material, the price at 
                which the publisher would make the college 
                textbook or supplemental material in the other 
                format available to the bookstore on the campus 
                of, or otherwise associated with, such 
                institution of higher education and, if 
                available, the price at which the publisher 
                makes such other format of the college textbook 
                or supplemental material available to the 
                public.
          (2) Unbundling of college textbooks from supplemental 
        materials.--A publisher that sells a college textbook 
        and any supplemental material accompanying such college 
        textbook as a single bundle shall also make available 
        the college textbook and each supplemental material as 
        separate and unbundled items, each separately priced.
          (3) Custom textbooks.--To the maximum extent 
        practicable, a publisher shall provide the information 
        required under this subsection with respect to the 
        development and provision of custom textbooks.
  (d) Provision of ISBN College Textbook Information in Course 
Schedules.--To the maximum extent practicable, each institution 
of higher education receiving Federal financial assistance 
shall--
          (1) disclose, on the institution's Internet course 
        schedule and in a manner of the institution's choosing, 
        the International Standard Book Number and retail price 
        information of required and recommended college 
        textbooks and supplemental materials for each course 
        listed in the institution's course schedule used for 
        preregistration and registration purposes, except 
        that--
                  (A) if the International Standard Book Number 
                is not available for such college textbook or 
                supplemental material, then the institution 
                shall include in the Internet course schedule 
                the author, title, publisher, and copyright 
                date for such college textbook or supplemental 
                material; and
                  (B) if the institution determines that the 
                disclosure of the information described in this 
                subsection is not practicable for a college 
                textbook or supplemental material, then the 
                institution shall so indicate by placing the 
                designation ``To Be Determined'' in lieu of the 
                information required under this subsection; and
          (2) if applicable, include on the institution's 
        written course schedule a notice that textbook 
        information is available on the institution's Internet 
        course schedule, and the Internet address for such 
        schedule.
  (e) Availability of Information for College Bookstores.--An 
institution of higher education receiving Federal financial 
assistance shall make available to a college bookstore that is 
operated by, or in a contractual relationship or otherwise 
affiliated with, the institution, as soon as is practicable 
upon the request of such college bookstore, the most accurate 
information available regarding--
          (1) the institution's course schedule for the 
        subsequent academic period; and
          (2) for each course or class offered by the 
        institution for the subsequent academic period--
                  (A) the information required by subsection 
                (d)(1) for each college textbook or 
                supplemental material required or recommended 
                for such course or class;
                  (B) the number of students enrolled in such 
                course or class; and
                  (C) the maximum student enrollment for such 
                course or class.
  (f) Additional Information.--An institution disclosing the 
information required by subsection (d)(1) is encouraged to 
disseminate to students information regarding--
          (1) available institutional programs for renting 
        textbooks or for purchasing used textbooks;
          (2) available institutional guaranteed textbook buy-
        back programs;
          (3) available institutional alternative content 
        delivery programs; or
          (4) other available institutional cost-saving 
        strategies.
  (g) GAO Report.--Not later than July 1, 2013, the Comptroller 
General of the United States shall report to the authorizing 
committees on the implementation of this section by 
institutions of higher education, college bookstores, and 
publishers. The report shall particularly examine--
          (1) the availability of college textbook information 
        on course schedules;
          (2) the provision of pricing information to faculty 
        of institutions of higher education by publishers;
          (3) the use of bundled and unbundled material in the 
        college textbook marketplace, including the adoption of 
        unbundled materials by faculty and the use of 
        integrated textbooks by publishers; and
          (4) the implementation of this section by 
        institutions of higher education, including the costs 
        and benefits to such institutions and to students.
  (h) Rule of Construction.--Nothing in this section shall be 
construed to supercede the institutional autonomy or academic 
freedom of instructors involved in the selection of college 
textbooks, supplemental materials, and other classroom 
materials.
  (i) No Regulatory Authority.--The Secretary shall not 
promulgate regulations with respect to this section.

           *       *       *       *       *       *       *


SEC. 138. REVIEW OF CURRENT DATA COLLECTION AND FEASIBILITY STUDY OF 
                    IMPROVED DATA COLLECTION.

  (a) In General.--Not later than 2 years after the date of the 
enactment of the PROSPER Act, the Secretary shall, in order to 
help improve the information available to students and families 
and to eliminate significant and burdensome data collection 
requirements placed on institutions under this Act--
          (1) complete a review of all data reporting 
        requirements on institutions under this Act;
          (2) determine which requirements are duplicative or 
        no longer necessary to provide meaningful information 
        for compliance, accountability, or transparency in 
        decision making; and
          (3) examine the best way to collect data that 
        includes all students from institutions that will--
                  (A) eliminate or reduce the burden and 
                duplication of data reporting; and
                  (B) capture the data necessary to ensure 
                compliance, accountability, and transparency in 
                decision making which shall include, at a 
                minimum--
                          (i) enrollment;
                          (ii) retention;
                          (iii) transfer;
                          (iv) completion; and
                          (v) post-collegiate earnings; and
          (4) implement the changes necessary to improve the 
        data reporting process for institutions, and submit a 
        report to the authorizing committees on any legislative 
        changes necessary to make such improvements.
  (b) Consultation.--In conducting the review under subsection 
(a)(1), the Secretary shall consult with--
          (1) all applicable offices within the Department to 
        ensure the review captures all data reporting 
        requirements under this Act; and
          (2) relevant stakeholders, including students, 
        parents, institutions of higher education, and privacy 
        experts.
  (c) Data Collection and Reporting.--In examining the best way 
to collect data under subsection (a)(3), the Secretary shall 
explore the feasibility of working with the National Student 
Clearinghouse to establish a third-party method to collect and 
produce institution and program-level analysis of the data 
determined necessary to report, and how such data reported to 
the clearinghouse could be secured, while considering the 
following:
          (1) Whether data reported to the clearinghouse can 
        accurately reflect institutional and program-level 
        enrollment, retention, transfer, and completion rates.
          (2) How much duplication of reporting can be 
        eliminated and if such reporting can replace the 
        reporting to the Integrated Postsecondary Education 
        Data System (IPEDS), including whether the data quality 
        will be maintained or improved from the current data 
        provided to the Department through IPEDS.
          (3) Whether such reporting to the clearinghouse can 
        protect the confidentiality of the reported data, while 
        providing more accurate institutional performance 
        measures.
          (4) Whether such reporting can be made compatible 
        with systems that include post-graduation outcomes 
        including employment and earnings data.
          (5) Whether the use of the clearinghouse for such 
        data reporting will change the current interaction 
        between institutions and the clearinghouse.
          (6) Whether the clearinghouse can meet the 
        requirements of such reporting without transferring any 
        disaggregated data that would be personally 
        identifiable to the Department of Education.
          (7) Whether the clearinghouse can ensure the 
        Department of Education would never have access to any 
        health data, student discipline records or data, 
        elementary and secondary education data, or information 
        relating to citizenship or national origin status, 
        course grades, individual postsecondary entrance 
        examination results, political affiliation, or 
        religion, as a result of producing information for 
        program level analysis of the data received from 
        institutions of higher education.
          (8) Whether the clearinghouse can provide the 
        analysis under this subsection without maintaining or 
        transferring, publishing, or submitting any data 
        containing the information described in paragraph (7) 
        to any entity, including any Federal or State agency.
  (d) Interim Report.--Not later than 1 year after the date of 
the enactment of the PROSPER Act, the Secretary shall submit to 
the authorizing committees a report on the Secretary's progress 
in carrying out this section.
  (e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the development of a nationwide database 
of personally identifiable information on individuals involved 
in studies or other collections of data under 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) Establishment.--There is established in the 
        Department a Performance-Based Organization (hereafter 
        referred to as the ``PBO'') which shall be a discrete 
        management unit responsible for managing the 
        administrative and oversight functions supporting the 
        programs authorized under title IV of this Act, as 
        specified in subsection (b).
          (2) Purposes.--The purposes of the PBO are--
                  (A) to improve service to students and other 
                participants in the student financial 
                assistance programs authorized under title IV, 
                including making those programs more 
                understandable to students and their parents;
                  (B) to reduce the costs of administering 
                those programs;
                  (C) to increase the accountability of the 
                officials responsible for administering the 
                operational aspects of these programs;
                  (D) to provide greater flexibility in the 
                management and administration of the Federal 
                student financial assistance programs;
                  (E) to integrate the information systems 
                supporting the Federal student financial 
                assistance programs;
                  (F) to maximize transparency in the operation 
                of Federal student financial assistance 
                programs;
                  (G) to maximize stakeholder engagement in the 
                operation of and accountability for such 
                programs;
                  [(F)] (H) to implement an open, common, 
                integrated system for the delivery of student 
                financial assistance under title IV; and
                  [(G)] (I) to develop and maintain a student 
                financial assistance system that contains 
                complete, accurate, and timely data to ensure 
                program integrity.
  (b) General Authority.--
          (1) Authority of secretary.--Notwithstanding any 
        other provision of this part, the Secretary shall 
        maintain responsibility for the development and 
        promulgation of policy and regulations relating to the 
        programs of student financial assistance under title 
        IV. In the exercise of its functions, the PBO shall be 
        subject to the direction of the Secretary. The 
        Secretary shall--
                  (A) request the advice of, and work in 
                cooperation with, the Chief Operating Officer 
                in developing regulations, policies, 
                administrative guidance, or procedures 
                affecting the Federal student financial 
                assistance programs authorized under title IV;
                  (B) request cost estimates from the Chief 
                Operating Officer for system changes required 
                by specific policies proposed by the Secretary; 
                and
                  (C) assist the Chief Operating Officer in 
                identifying goals for--
                          (i) the administration of the systems 
                        used to administer the Federal student 
                        financial assistance programs 
                        authorized under title IV; [and]
                          (ii) the updating of such systems to 
                        current technology[.]; and
                          (iii) acquiring senior managers and 
                        other personnel with demonstrated 
                        management ability and expertise in 
                        consumer lending.
          (2) PBO functions.--Subject to paragraph (1), the PBO 
        shall be responsible for the administration of Federal 
        student financial assistance programs authorized under 
        title IV, excluding the development of policy relating 
        to such programs but including the following:
                  (A) The administrative, accounting, and 
                financial management functions for the Federal 
                student financial assistance programs 
                authorized under title IV, including--
                          (i) the collection, processing, and 
                        transmission of data to students, 
                        institutions, lenders, State agencies, 
                        and other authorized parties;
                          (ii) the design and technical 
                        specifications for software development 
                        and procurement for systems supporting 
                        the Federal student financial 
                        assistance programs authorized under 
                        title IV;
                          (iii) all software and hardware 
                        acquisitions and all information 
                        technology contracts related to the 
                        administration and management of 
                        student financial assistance under 
                        title IV;
                          (iv) all aspects of contracting for 
                        the information and financial systems 
                        supporting the Federal student 
                        financial assistance programs 
                        authorized under title IV;
                          (v) providing all customer service, 
                        training, and user support related to 
                        the administration of the Federal 
                        student financial assistance programs 
                        authorized under title IV; and
                          (vi) ensuring the integrity of the 
                        Federal student financial assistance 
                        programs authorized under title IV.
                  (B) Annual development of a budget for the 
                activities and functions of the PBO, in 
                consultation with the Secretary, and for 
                consideration and inclusion in the Department's 
                annual budget submission.
                  (C) Collecting input from stakeholders on the 
                operation of all Federal student assistance 
                programs and accountability practices relating 
                to such programs, and ensuring that such input 
                informs operation of the PBO and is provided to 
                the Secretary to inform policy creation related 
                to Federal student financial assistance 
                programs.
          (3) Additional functions.--The Secretary may allocate 
        to the PBO such additional functions as the Secretary 
        and the Chief Operating Officer determine are necessary 
        or appropriate to achieve the purposes of the PBO.
          (4) Independence.--Subject to paragraph (1), in 
        carrying out its functions, the PBO shall exercise 
        independent control of its budget allocations and 
        expenditures, personnel decisions and processes, 
        procurements, and other administrative and management 
        functions.
          (5) Audits and review.--The PBO shall be subject to 
        the usual and customary Federal audit procedures and to 
        review by the Inspector General of the Department.
          (6) Changes.--
                  (A) In general.--[The Secretary] Not less 
                frequently than once annually, the Secretary 
                and the Chief Operating Officer shall consult 
                concerning the effects of policy, market, or 
                other changes on the ability of the PBO to 
                achieve the goals and objectives established in 
                the performance plan described in subsection 
                (c).
                  (B) Report.--On an annual basis, after 
                carrying out the consultation required under 
                subparagraph (A), the Secretary and the Chief 
                Operating Officer shall jointly submit to the 
                authorizing committees a report that includes--
                          (i) a summary of the consultation; 
                        and
                          (ii) a description of any actions 
                        taken as a result of the consultation.
                  [(B)] (C) Revisions to agreement.--The 
                Secretary and the Chief Operating Officer may 
                revise the annual performance agreement 
                described in subsection (d)(4) in light of 
                policy, market, or other changes that occur 
                after the Secretary and the Chief Operating 
                Officer enter into the agreement.
  (c) Performance Plan, Report, and Briefing.--
          (1) Performance plan.--
                  (A) In general.--[Each year,] Not less 
                frequently than once every three years, 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] succeeding 3 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, 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.]
                  (B) Consultation.--
                          (i) Plan development.--Beginning not 
                        later than 12 months before issuing 
                        each 3-year performance plan under 
                        subparagraph (A), the Secretary and the 
                        Chief Operating Officer shall consult 
                        with students, institutions of higher 
                        education, Congress, lenders, and other 
                        interested parties regarding the 
                        development of the plan. In carrying 
                        out such consultation, the Secretary 
                        shall seek public comment consistent 
                        with the requirements of subchapter II 
                        of chapter 5 of title 5, United States 
                        Code (commonly known as the 
                        ``Administrative Procedure Act'').
                          (ii) Revision.--Not later than 90 
                        days before implementing any revision 
                        to the performance plan described in 
                        subparagraph (A), the Secretary shall 
                        consult with students, institutions of 
                        higher education, Congress, lenders, 
                        and other interested parties regarding 
                        such revision.
                  (C) Areas.--The plan shall include a concise 
                statement of the goals for a modernized system 
                for the delivery of student financial 
                assistance under title IV and identify action 
                steps necessary to achieve such goals and 
                target dates upon which such action steps will 
                be taken and such goals will be achieved. The 
                plan shall address the PBO's responsibilities 
                in the following areas:
                          (i) Improving service.--Improving 
                        service to students and other 
                        participants in student financial aid 
                        programs authorized under under title 
                        IV, including making those programs 
                        more understandable to students and 
                        their parents.
                          (ii) Reducing costs.--Reducing the 
                        costs of administering those programs.
                          (iii) Improvement and integration of 
                        support systems.--Improving and 
                        integrating the systems that support 
                        those programs.
                          (iv) Delivery and information 
                        system.--Developing open, common, and 
                        integrated systems for programs 
                        authorized under under title IV.
                          (v) Ensuring transparency.--
                        Maximizing the transparency in the 
                        operations of the PBO, including 
                        complying with the data reporting 
                        requirements under section 144.
                          [(v)] (vi) Other areas.--Any other 
                        areas identified by the Secretary.
          (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] 3-year performance plan described in paragraph 
        (1) for the preceding year. The annual report shall 
        include the following:
                  (A) An independent financial audit of the 
                expenditures of both the PBO and the programs 
                administered by the PBO.
                  (B) Financial and performance requirements 
                applicable to the PBO under the Chief Financial 
                Officers Act of 1990 and the Government 
                Performance and Results Act of 1993.
                  (C) The results achieved by the PBO during 
                the year relative to the goals established in 
                the organization's performance plan, including 
                an explanation of the specific steps the 
                Secretary and the Chief Operating Officer will 
                take to address any such goals that were not 
                achieved.
                  (D) The evaluation rating of the performance 
                of the Chief Operating Officer and senior 
                managers under subsections (d)(4) and (e)(2), 
                including the amounts of bonus compensation 
                awarded to these individuals, in the aggregate 
                and per individual.
                  (E) [Recommendations] Specific 
                recommendations for legislative and regulatory 
                changes to improve service to students and 
                their families, and to improve program 
                efficiency and integrity.
                  (F) A description of the performance 
                evaluation system developed under subsection 
                (d)(6).
                  [(F)] (G) Other such information as the 
                Director of the Office of Management and Budget 
                shall prescribe for performance based 
                organizations.
          (3) Consultation with stakeholders.--The Chief 
        Operating Officer, in preparing the report described in 
        paragraph (2), shall [establish appropriate means to] 
        consult with students, borrowers, institutions, 
        lenders, guaranty agencies, secondary markets, and 
        others involved in the delivery system of student aid 
        under title IV--
                  (A) regarding the degree of satisfaction with 
                the 
                delivery system[; and] and the PBO;
                  (B) to seek suggestions on means to improve 
                the 
                delivery system[.] and the PBO; and
                  (C) through a nationally-representative 
                survey, that at a minimum shall evaluate the 
                degree of satisfaction with the delivery system 
                and the PBO.
          (4) Briefing on enforcement of student loan 
        provisions.--The Secretary shall, upon request, provide 
        a briefing to the members of the authorizing committees 
        on the steps the Department has taken to ensure--
                  (A) the integrity of the student loan 
                programs; and
                  (B) that lenders and guaranty agencies are 
                adhering to the requirements of title IV.
  (d) Chief Operating Officer.--
          (1) Appointment.--The management of the PBO shall be 
        vested in a Chief Operating Officer who shall be 
        appointed by the Secretary to a term of not less than 3 
        and not more than 5 years, and compensated without 
        regard to chapters 33, 51, and 53 of title 5, United 
        States Code. The appointment shall be made on the basis 
        of demonstrated management ability and expertise in 
        information technology, including experience with 
        financial systems, and without regard to political 
        affiliation or activity.
          (2) Reappointment.--[The Secretary may reappoint] 
        Except as provided in paragraph (4)(C), the Chief 
        Operating Officer to subsequent terms of not less than 
        3 and not more than 5 years, so long as the performance 
        of the Chief Operating Officer, as set forth in the 
        performance agreement described in paragraph (4), is 
        satisfactory.
          (3) Removal.--The Chief Operating Officer may be 
        removed by--
                  (A) the President; or
                  (B) the Secretary, for misconduct or failure 
                to meet performance goals set forth in the 
                performance agreement in paragraph (4).
        The President or Secretary shall communicate the 
        reasons for any such removal to the authorizing 
        committees.
          (4) Performance agreement.--
                  (A) In general.--Each year, the Secretary and 
                the Chief Operating Officer shall enter into an 
                annual performance agreement, that shall set 
                forth specific, measurable organization and 
                individual goals for the Chief Operating 
                Officer and metrics used to measure progress 
                toward such goals.
                  [(B) Transmittal.--The final agreement, and 
                any revision to the final agreement, shall be 
                transmitted to the authorizing committees, and 
                made publicly available.]
                  (B) Transmittal and public availability.--The 
                Secretary shall--
                          (i) transmit to the authorizing 
                        committees the final version of, and 
                        any subsequent revisions to, the 
                        agreement entered into under 
                        subparagraph (A); and
                          (ii) before the expiration of the 
                        period of 5 business days beginning 
                        after the date on which the agreement 
                        is transmitted under clause (i), make 
                        such agreement publicly available on a 
                        publicly accessible website of the 
                        Department of Education.
                  (C) Loss of eligibility.--If the agreement 
                under subparagraph (A) is not made publicly 
                available before the expiration of the period 
                described in subparagraph (B)(ii), the Chief 
                Operating Officer shall not be eligible for 
                reappointment under paragraph (2).
          (5) Compensation.--
                  (A) In general.--The Chief Operating Officer 
                is authorized to be paid at an annual rate of 
                basic pay not to exceed the maximum rate of 
                basic pay for the Senior Executive Service 
                under section 5382 of title 5, United States 
                Code, including any applicable locality-based 
                comparability payment that may be authorized 
                under section 5304(h)(2)(B) of such title. The 
                compensation of the Chief Operating Officer 
                shall be considered for purposes of section 
                207(c)(2)(A) of title 18, United States Code, 
                to be the equivalent of that described under 
                clause (ii) of section 207(c)(2)(A) of such 
                title.
                  [(B) Bonus.--In addition, the Chief Operating 
                Officer may receive a bonus in an amount that 
                does not exceed 50 percent of such annual rate 
                of basic pay, based upon the Secretary's 
                evaluation of the Chief Operating Officer's 
                performance in relation to the goals set forth 
                in the performance agreement described in 
                paragraph (4).]
                  (B) Bonus.--In addition, the Chief Operating 
                Officer may receive a bonus in the following 
                amounts:
                          (i) For a period covered by a 
                        performance agreement entered into 
                        under paragraph (4) before the date of 
                        the enactment of the PROSPER Act, an 
                        amount that does not exceed 50 percent 
                        of the annual rate basic pay of the 
                        Chief Operating Officer, based upon the 
                        Secretary's evaluation of the Chief 
                        Operating Officer's performance in 
                        relation to the goals set forth in the 
                        performance agreement.
                          (ii) For a period covered by a 
                        performance agreement entered into 
                        under paragraph (4) on or after the 
                        date of the enactment of the PROSPER 
                        Act, an amount that does not exceed 40 
                        percent of the annual rate basic pay of 
                        the Chief Operating Officer, based upon 
                        the Secretary's evaluation of the Chief 
                        Operating Officer's performance in 
                        relation to the goals set forth in the 
                        performance agreement.
                  (C) Payment.--Payment of a bonus under 
                subparagraph (B) may be made to the Chief 
                Operating Officer only to the extent that such 
                payment does not cause the Chief Operating 
                Officer's total aggregate compensation in a 
                calendar year to equal or exceed the amount of 
                the President's salary under section 102 of 
                title 3, United States Code.
          (6) Performance evaluation system.--The Secretary 
        shall develop a system to evaluate the performance of 
        the Chief Operating Officer and any senior managers 
        appointed by such Officer under subsection (e). Such 
        system shall--
                  (A) take into account the extent to which 
                each individual attains the specific, 
                measurable organizational and individual goals 
                set forth in the performance agreement 
                described in paragraph (4)(A) and subsection 
                (e)(2) (as the case may be); and
                  (B) evaluate each individual using a rating 
                system that accounts for the full spectrum of 
                performance levels, from the failure of an 
                individual to meet the goals described in 
                clause (i) to an individual's success in 
                meeting or exceeding such goals.
  (e) Senior Management.--
          (1) Appointment.--
                  (A) In general.--The Chief Operating Officer 
                may appoint such senior managers as that 
                officer determines necessary without regard to 
                the provisions of title 5, United States Code, 
                governing appointments in the competitive 
                service.
                  (B) Compensation.--The senior managers 
                described in subparagraph (A) 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.
          (2) Performance agreement.--Each year, the Chief 
        Operating Officer and each senior manager appointed 
        under this subsection shall enter into an annual 
        performance agreement that sets forth measurable 
        [organization and individual goals] specific, 
        measurable organization and individual goals and the 
        metrics used to measure progress toward such goals. The 
        agreement shall be subject to review and renegotiation 
        at the end of each term.
          (3) Compensation.--
                  (A) In general.--A senior manager appointed 
                under this subsection may be paid at an annual 
                rate of basic pay of not more than the maximum 
                rate of basic pay for the Senior Executive 
                Service under section 5382 of title 5, United 
                States Code, including any applicable locality-
                based comparability payment that may be 
                authorized under section 5304(h)(2)(C) of such 
                title. The compensation of a senior manager 
                shall be considered for purposes of section 
                207(c)(2)(A) of title 18, United States Code, 
                to be the equivalent of that described under 
                clause (ii) of section 207(c)(2)(A) of such 
                title.
                  [(B) Bonus.--In addition, a senior manager 
                may receive a bonus in an amount such that the 
                manager's total annual compensation does not 
                exceed 125 percent of the maximum rate of basic 
                pay for the Senior Executive Service, including 
                any applicable locality-based comparability 
                payment, based upon the Chief Operating 
                Officer's evaluation of the manager's 
                performance in relation to the goals set forth 
                in the performance agreement described in 
                paragraph (2).]
                  (B) Bonus.--In addition, a senior manager may 
                receive a bonus in the following amounts:
                          (i) For a period covered by a 
                        performance agreement entered into 
                        under paragraph (2) before the date of 
                        the enactment of the PROSPER Act, an 
                        amount such that the manager's total 
                        annual compensation does not exceed 125 
                        percent of the maximum rate of basic 
                        pay for the Senior Executive Service, 
                        including any applicable locality-based 
                        comparability payment, based upon the 
                        Chief Operating Officer's evaluation of 
                        the manager's performance in relation 
                        to the goals set forth in the 
                        performance agreement.
                          (ii) For a period covered by a 
                        performance agreement entered into 
                        under paragraph (2) on or after the 
                        date of the enactment of the PROSPER 
                        Act, an amount such that the manager's 
                        total annual compensation does not 
                        exceed 120 percent of the maximum rate 
                        of basic pay for the Senior Executive 
                        Service, including any applicable 
                        locality-based comparability payment, 
                        based upon the Chief Operating 
                        Officer's evaluation of the manager's 
                        performance in relation to the goals 
                        set forth in the performance agreement.
          (4) Removal.--A senior manager shall be removable by 
        the Chief Operating Officer, or by the Secretary if the 
        position of Chief Operating Officer is vacant.
  (f) Advisory Board.--
          (1) Establishment and purpose.--Not later than one 
        year after the date of the enactment of the PROSPER 
        Act, the Secretary shall establish an Advisory Board 
        (referred to in this subsection as the ``Board'') for 
        the PBO. The purpose of such Board shall be to conduct 
        oversight over the PBO and the Chief Operating Officer 
        and senior managers described under subsection (e) to 
        ensure that the PBO is meeting the purposes described 
        in this section and the goals in the performance plan 
        described under such section.
          (2) Membership.--
                  (A) Board members.--The Board shall consist 
                of 7 members, one of whom shall be the 
                Secretary.
                  (B) Chairman.--A Chairman of the Board shall 
                be elected by the Board from among its members 
                for a 2-year term.
                  (C) Secretary as an ex officio member.--The 
                Secretary, ex officio--
                          (i) shall--
                                  (I) serve as a member of the 
                                Board;
                                  (II) be a voting member of 
                                the Board; and
                                  (III) be eligible to be 
                                elected by the Board to serve 
                                as chairman or vice chairman of 
                                the Board; and
                          (ii) shall not be subject to the 
                        terms or compensation requirements 
                        described in this paragraph that are 
                        applicable to the other members of the 
                        Board.
                  (D) Additional board members.--Each member of 
                the Board (excluding the Secretary) shall be 
                appointed by the Secretary.
                  (E) Terms.--
                          (i) In general.--Each Board member, 
                        except for the Secretary and the Board 
                        members described in clause (ii)(II), 
                        shall serve 5-year terms.
                          (ii) Initial members.--
                                  (I) First 3 members.--The 
                                first 3 members confirmed to 
                                serve on the Board after the 
                                date of enactment of the 
                                PROSPER Act shall serve for 5-
                                year terms.
                                  (II) Other members.--The 
                                fourth, fifth, and sixth 
                                members confirmed to serve on 
                                the Board after such date of 
                                enactment shall serve for 3-
                                year terms.
                          (iii) Reappointment.--The Secretary 
                        may reappoint a Board member for one 
                        additional 5-year term.
                          (iv) Vacancies.--
                                  (I) In general.--Not later 
                                than 30 days after a vacancy of 
                                the Board occurs, the Secretary 
                                shall publish a Federal 
                                Register notice soliciting 
                                nominations for the position.
                                  (II) Filling vacancy.--Not 
                                later than 90 days after such 
                                vacancy occurs, such vacancy 
                                shall be filled in the same 
                                manner as the original 
                                appointment was made, except 
                                that--
                                          (aa) the appointment 
                                        shall be for the 
                                        remainder of the 
                                        uncompleted term; and
                                          (bb) such member may 
                                        be reappointed under 
                                        clause (iii).
                  (F) Membership qualifications and 
                prohibitions.--
                          (i) Qualifications.--The members of 
                        the board, other than the Secretary, 
                        shall be appointed without regard to 
                        political affiliation and solely on the 
                        basis of their professional experience 
                        and expertise in--
                                  (I) the management of large 
                                and financially significant 
                                organizations, including banks 
                                and commercial lending 
                                companies; or
                                  (II) Federal student 
                                financial assistance programs.
                          (ii) Conflicts of interest among 
                        board members.--Before appointing 
                        members of the Board, the Secretary 
                        shall establish rules and procedures to 
                        address any potential conflict of 
                        interest between a member of the Board 
                        and responsibilities of the Board, 
                        including prohibiting membership for 
                        individuals with a pecuniary interest 
                        in the activities of the PBO.
                  (G) No compensation.--Board members shall 
                serve without pay.
                  (H) Expenses of board members.--Each member 
                of the Board shall receive travel expenses and 
                other permissible expenses, including per diem 
                in lieu of subsistence, in accordance with 
                applicable provisions under title 5, United 
                States Code.
          (3) Board responsibilities.--The Board shall have the 
        following responsibilities:
                  (A) Conducting general oversight over the 
                functioning and operation of the PBO, 
                including--
                          (i) ensuring that the reporting and 
                        planning requirements of this section 
                        are fulfilled by the PBO; and
                          (ii) ensuring that the Chief 
                        Operating Officer acquires senior 
                        managers with demonstrated management 
                        ability and expertise in consumer 
                        lending (as described in subsection 
                        (b)(1)(C)(iii)).
                  (B) Approving the appointment or 
                reappointment of a Chief Operating Officer, 
                except that the board shall have no authority 
                to approve or disapprove the reappointment of 
                the Chief Operating Officer who holds such 
                position on the date of enactment of the 
                PROSPER Act.
                  (C) Making recommendations with respect to 
                the suitability of any bonuses proposed to be 
                provided to the Chief Operating Officer or 
                senior managers described under subsections (d) 
                and (e), to ensure that a bonus is not awarded 
                to the Officer or a senior manager in a case in 
                which such Officer or manager has failed to 
                meet goals set for them under the relevant 
                performance plan under subsections (d)(4) and 
                (e)(2), respectively.
                  (D) Approving any performance plan 
                established for the PBO.
          (4) Board operations.--
                  (A) Meetings.--The Board shall meet at least 
                twice per year and at such other times as the 
                chairperson determines appropriate.
                  (B) Powers of chairperson.--Except as 
                otherwise provided by a majority vote of the 
                Board, the powers of the chairperson shall 
                include--
                          (i) establishing committees;
                          (ii) setting meeting places and 
                        times;
                          (iii) establishing meeting agendas; 
                        and
                          (iv) developing rules for the conduct 
                        of business.
                  (C) Quorum.--Four members of the Board shall 
                constitute a quorum. A majority of members 
                present and voting shall be required for the 
                Board to take action.
                  (D) Administration.--The Federal Advisory 
                Committee Act shall not apply with respect to 
                the Board, other than sections 10, 11 and 12 of 
                such Act.
          (5) Annual report.--
                  (A) In general.--Not less frequently than 
                once annually, the Board shall submit to the 
                authorizing committees a report on the results 
                of the work conducted by the PBO.
                  (B) Contents.--Each report under clause (i) 
                shall include--
                          (i) a description of the oversight 
                        work of the Board and the results of 
                        such work;
                          (ii) a description of statutory 
                        requirements of this section and 
                        section 144 where the PBO is not in 
                        compliance;
                          (iii) recommendations on the 
                        appointment or reappointment of a Chief 
                        Operating Officer;
                          (iv) recommendations regarding bonus 
                        payments for the Chief Operating 
                        Officer and senior managers; and
                          (v) recommendations for the 
                        authorizing Committees and the 
                        Appropriations Committees on--
                                  (I) any statutory changes 
                                needed that would enhance the 
                                ability of the PBO to meet the 
                                purposes of this section; and
                                  (II) any recommendations for 
                                the Secretary or the Chief 
                                Operating Officer that will 
                                improve the operations of the 
                                PBO.
                          (vi) Issuance and public release.--
                        Each report under clause (i) shall be 
                        posted on the publicly accessible 
                        website of the Department of Education.
                          (vii) PBO recommendations.--Not later 
                        than 180 days after the submission of 
                        each report under clause (i), the Chief 
                        Operating Officer shall respond to each 
                        recommendation individually, which 
                        shall include a description of such 
                        actions that the Officer is undertaking 
                        to address such recommendation.
                  (C) Staff.--
                          (i) In general.--The Secretary may 
                        appoint to the Board not more than 7 
                        employees to assist in carrying out the 
                        duties of the Board under this section.
                          (ii) Technical employees.--Such 
                        appointments may include, for terms not 
                        to exceed 3 years and without regard to 
                        the provisions of title 5, United 
                        States Code, governing appointments in 
                        the competitive service, not more than 
                        3 technical employees who 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.
                          (iii) Detailees.--The Secretary may 
                        detail, on a reimbursable basis, any of 
                        the personnel of the Department for the 
                        purposes described in clause (i). Such 
                        employees shall serve without 
                        additional pay, allowances, or 
                        benefits.
                          (iv) Statutory construction.--Nothing 
                        in this subparagraph shall be construed 
                        to provide for an increase in the total 
                        number of permanent full-time 
                        equivalent positions in the Department 
                        or any other department or agency of 
                        the Federal Government.
          (6) Briefing on activities of the oversight board.--
        The Secretary shall, upon request, provide a briefing 
        to the authorizing committees on the steps the Board 
        has taken to carry out its responsibilities under this 
        subsection.
  [(f)] (g) Student Loan Ombudsman.--
          (1) Appointment.--The Chief Operating Officer, in 
        consultation with the Secretary, shall appoint a 
        Student Loan Ombudsman to provide timely assistance to 
        borrowers of loans made, insured, or guaranteed under 
        title IV by performing the functions described in 
        paragraph (3).
          (2) Public information.--The Chief Operating Officer 
        shall disseminate information about the availability 
        and functions of the Ombudsman to students, borrowers, 
        and potential borrowers, as well as institutions of 
        higher education, lenders, guaranty agencies, loan 
        servicers, and other participants in those student loan 
        programs.
          (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); and
                  (B) compile and analyze data on borrower 
                complaints and make appropriate 
                recommendations.
          (4) Report.--Each year, the Ombudsman shall submit a 
        report to the Chief Operating Officer, for inclusion in 
        the annual report under subsection (c)(2), that 
        describes the activities, and evaluates the 
        effectiveness of the Ombudsman during the preceding 
        year.
  [(g)] (h) Personnel Flexibility.--
          (1) Personnel ceilings.--The PBO shall not be subject 
        to any ceiling relating to the number or grade of 
        employees.
          (2) Administrative flexibility.--The Chief Operating 
        Officer shall work with the Office of Personnel 
        Management to develop and implement personnel 
        flexibilities in staffing, classification, and pay that 
        meet the needs of the PBO, subject to compliance with 
        title 5, United States Code.
          (3) Excepted service.--The Chief Operating Officer 
        may appoint, without regard to the provisions of title 
        5, United States Code, governing appointments in the 
        competitive service, technical and professional 
        employees to administer the functions of the PBO. These 
        employees 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.
  [(h)] (i) Establishment of a Fair and Equitable System for 
Measuring Staff Performance.--The PBO shall establish an annual 
performance management system, subject to compliance with title 
5, United States Code and consistent with applicable provisions 
of law and regulations, which strengthens the effectiveness of 
the PBO by providing for establishing goals or objectives for 
individual, group, or organizational performance (or any 
combination thereof), consistent with the performance plan of 
the PBO and its performance planning procedures, including 
those established under the Government Performance and Results 
Act of 1993, and communicating such goals or objectives to 
employees.
  [(i)] (j) Authorization of Appropriations.--The Secretary 
shall allocate from funds made available under section 458 such 
funds as are appropriate to the functions assumed by the PBO. 
In addition, there are authorized to be appropriated such sums 
as may be necessary to carry out the purposes of this part.

           *       *       *       *       *       *       *


SEC. 144. ADMINISTRATIVE DATA TRANSPARENCY.

  (a) In General.--To improve the transparency of the student 
aid delivery system, the Secretary and the Chief Operating 
Officer shall collect and publish information on the 
performance of student loan programs under title IV in 
accordance with this section.
  (b) Disclosures.--
          (1) In general.--The Secretary and the Chief 
        Operating Officer shall publish on a publicly 
        accessible website of the Department of Education the 
        following aggregate statistics with respect to the 
        performance of student loans under title IV:
                  (A) The number of borrowers who paid off the 
                total outstanding balance of principal and 
                interest on their loans before the end of the 
                10-year or consolidated loan repayment 
                schedule.
                  (B) The number of loans under each type of 
                deferment and forbearance.
                  (C) The average length of time a loan stays 
                in default.
                  (D) The percentage of loans in default among 
                borrowers who completed the program of study 
                for which the loans were made.
                  (E) The number of borrowers enrolled in an 
                income-based repayment plan who make monthly 
                payments of $0 and the average student loan 
                debt of such borrowers.
                  (F) The number of students whose loan 
                balances are growing because such students are 
                not paying the full amount of interest accruing 
                on the loans.
                  (G) The number of borrowers entering income-
                based repayment plans to get out of default.
                  (H) The number of borrowers in income-based 
                repayment plans who have outstanding student 
                loans from graduate school, and the average 
                balance of such loans.
                  (I) With respect to the public service loan 
                forgiveness program under section 455(m)--
                          (i) the number of applications 
                        submitted and processed;
                          (ii) the number of borrowers granted 
                        loan forgiveness;
                          (iii) the amount of loan debt 
                        forgiven; and
                          (iv) the number of borrowers granted 
                        loan forgiveness, and the amount of the 
                        loan debt forgiven, disaggregated by 
                        each category of employer that employs 
                        individuals in public service jobs (as 
                        defined in section 455(m)(3)(B), 
                        including--
                                  (I) the Federal Government, 
                                or a State or local government;
                                  (II) 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; and
                                  (III) a non-profit 
                                organization not described in 
                                subclause (II).
                  (J) Any other aggregate statistics the 
                Secretary and the Chief Operating Officer 
                determine to be necessary to adequately inform 
                the public of the performance of the student 
                loan programs under title IV.
          (2) Disaggregation.--The statistics described in 
        clauses (i) through (iii) of paragraph (1)(I) shall be 
        disaggregated--
                  (A) by the number or amount for most recent 
                quarter;
                  (B) by the total number or amount as of the 
                date of publication;
                  (C) by repayment plan;
                  (D) by borrowers seeking loan forgiveness for 
                loans made for an undergraduate course of 
                study; and
                  (E) by borrowers seeking loan forgiveness for 
                loans made for a graduate course of study.
          (3) Quarterly updates.--The statistics published 
        under paragraph (1) shall be updated not less 
        frequently than once each fiscal quarter.
  (c) Information Collection.--
          (1) In general.--The Secretary and the Chief 
        Operating Officer shall collect information on the 
        performance of student loans under title IV over time, 
        including--
                  (A) measurement of the cash flow generated by 
                such loans as determined by assessing monthly 
                payments on the loans over time;
                  (B) the income level and employment status of 
                borrowers during repayment;
                  (C) the loan repayment history of borrowers 
                prior to default;
                  (D) the progress of borrowers in making 
                monthly payments on loans after defaulting on 
                the loans; and
                  (E) such other information as the Secretary 
                and the Chief Operating Officer determine to be 
                appropriate.
          (2) Availability.--
                  (A) In general.--The information collected 
                under paragraph (1) shall be made available 
                biannually to organizations and researchers 
                that--
                          (i) submit to the Secretary and the 
                        Chief Operating officer a request for 
                        such information; and
                          (ii) enter into an agreement with the 
                        National Center for Education 
                        Statistics under which the organization 
                        or researcher (as the case may be) 
                        agrees to use the information in 
                        accordance with the privacy laws 
                        described in subparagraph (B).
                  (B) Privacy protections.--The privacy laws 
                described in this subparagraph are the 
                following:
                          (i) Section 183 of the Education 
                        Sciences Reform Act of 2002 (20 U.S.C. 
                        9573).
                          (ii) The Privacy Act of 1974 (5 
                        U.S.C. 552a).
                          (iii) Section 444 of the General 
                        Education Provisions Act (commonly 
                        known as the ``Family Educational 
                        Rights and Privacy Act of 1974'') (20 
                        U.S.C. 1232g).
                          (iv) Subtitle A of title V of the E-
                        Government Act of 2002 (44 U.S.C. 3501 
                        note).
                  (C) Format.--The information described in 
                subparagraph (A) shall be made available in the 
                format of a data file that contains an 
                statistically accurate, representative sample 
                of all borrowers of loans under title IV.
  (d) Data Sharing.--The Secretary and the Chief Operating 
Officer may enter into cooperative data sharing agreements with 
other Federal or State agencies to ensure the accuracy of 
information collected and published under this section.
  (e) Privacy.--The Secretary and the Chief Operating Officer 
shall ensure that any information collected, published, or 
otherwise made available under this section does not reveal 
personally identifiable information.

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

SEC. 151. DEFINITIONS.

   In this part:
          (1) Agent.--The term ``agent'' means an officer or 
        employee of a covered institution or an institution-
        affiliated organization.
          (2) Covered institution.--The term ``covered 
        institution'' means any institution of higher 
        education, as such term is defined in [section 102] 
        section 101 or 102, that receives any Federal funding 
        or assistance.
          (3) Education loan.--The term ``education loan'' 
        (except when used as part of the term ``private 
        education loan'') means--
                  (A) any loan made, insured, or guaranteed 
                under part B of title IV;
                  (B) any loan made under part D of title IV; 
                [or]
                  (C) any loan made under part E of title IV 
                after the date of enactment of the PROSPER Act; 
                or
                  [(C)] (D) a private education loan.
          (4) Eligible lender.--The term ``eligible lender'' 
        has the meaning given such term in section 435(d).
          (5) Institution-affiliated organization.--The term 
        ``institution-affiliated organization''--
                  (A) means any organization that--
                          (i) is directly or indirectly related 
                        to a covered institution; and
                          (ii) is engaged in the practice of 
                        recommending, promoting, or endorsing 
                        education loans for students attending 
                        such covered institution or the 
                        families of such students;
                  (B) may include an alumni organization, 
                athletic organization, foundation, or social, 
                academic, or professional organization, of a 
                covered institution; and
                  (C) notwithstanding subparagraphs (A) and 
                (B), does not include any lender with respect 
                to any education loan secured, made, or 
                extended by such lender.
          (6) Lender.--The term ``lender'' (except when used as 
        part of the terms ``eligible lender'' and ``private 
        educational lender'')--
                  (A) means--
                          (i) in the case of a loan made, 
                        insured, or guaranteed under part B of 
                        title IV, an eligible lender;
                          (ii) in the case of any loan issued 
                        or provided to a student under part D 
                        of title IV, the Secretary; [and]
                          (iii) in the case of a loan issued or 
                        provided to a student under part E of 
                        title IV on or after the date of 
                        enactment of the PROSPER Act;
                          [(iii)] (iv) in the case of a private 
                        education loan, a private educational 
                        lender as defined in section 140 of the 
                        Truth in Lending Act; and
                  (B) includes any other person engaged in the 
                business of securing, making, or extending 
                education loans on behalf of the lender.
          (7) Officer.--The term ``officer'' includes a 
        director or trustee of a covered institution or 
        institution-affiliated organization, if such individual 
        is treated as an employee of such covered institution 
        or institution-affiliated organization, respectively.
          (8) Preferred lender arrangement.--The term 
        ``preferred lender arrangement''--
                  (A) means an arrangement or agreement between 
                a lender and a covered institution or an 
                institution-affiliated organization of such 
                covered institution--
                          (i) under which a lender provides or 
                        otherwise issues education loans to the 
                        students attending such covered 
                        institution or the families of such 
                        students; and
                          (ii) that relates to such covered 
                        institution or such institution-
                        affiliated organization recommending, 
                        promoting, or endorsing the education 
                        loan products of the lender; and
                  (B) does not include--
                          (i) arrangements or agreements with 
                        respect to loans under part D of title 
                        IV; [or]
                          (ii) arrangements or agreements with 
                        respect to loans under part E of title 
                        IV; or
                          [(ii)] (iii) arrangements or 
                        agreements with respect to loans that 
                        originate through the auction pilot 
                        program under section 499(b).
          (9) Private education loan.--The term ``private 
        education loan'' has the meaning given the term in 
        section 140 of the Truth in Lending Act.

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

  (a) Responsibilities of Covered Institutions and Institution-
Affiliated Organizations.--
          (1) Disclosures by covered institutions and 
        institution-affiliated organizations.--
                  (A) Preferred lender arrangement 
                disclosures.--In addition to the disclosures 
                required by subsections (a)(27) and (h) of 
                section 487 (if applicable), a covered 
                institution, or an institution-affiliated 
                organization of such covered institution, that 
                participates in a preferred lender arrangement 
                shall disclose--
                          (i) on such covered institution's or 
                        institution-affiliated organization's 
                        website and in all informational 
                        materials described in subparagraph (C) 
                        that describe or discuss education 
                        loans--
                                  (I) the maximum amount of 
                                Federal grant and loan aid 
                                under title IV available to 
                                students, in an easy to 
                                understand format;
                                  (II) the information required 
                                to be disclosed pursuant to 
                                section 153(a)(2)(A)(i), for 
                                each type of loan described in 
                                section 151(3)(A) that is 
                                offered pursuant to a preferred 
                                lender arrangement of the 
                                institution or organization to 
                                students of the institution or 
                                the families of such students; 
                                and
                                  (III) a statement that such 
                                institution is required to 
                                process the documents required 
                                to obtain a loan under part B 
                                of title IV from any eligible 
                                lender the student selects; and
                          (ii) on such covered institution's or 
                        institution-affiliated organization's 
                        website and in all informational 
                        materials described in subparagraph (C) 
                        that describe or discuss private 
                        education loans--
                                  (I) in the case of a covered 
                                institution, the information 
                                that the Board of Governors of 
                                the Federal Reserve System 
                                requires to be disclosed under 
                                section 128(e)(11) of the Truth 
                                in Lending Act (15 U.S.C. 
                                1638(e)(11)), for each type of 
                                private education loan offered 
                                pursuant to a preferred lender 
                                arrangement of the institution 
                                to students of the institution 
                                or the families of such 
                                students; and
                                  (II) in the case of an 
                                institution-affiliated 
                                organization of a covered 
                                institution, the information 
                                the Board of Governors of the 
                                Federal Reserve System requires 
                                to be disclosed under section 
                                128(e)(1) of the Truth in 
                                Lending Act (15 U.S.C. 
                                1638(e)(1)), for each type of 
                                private education loan offered 
                                pursuant to a preferred lender 
                                arrangement of the organization 
                                to students of such institution 
                                or the families of such 
                                students.
                  (B) Private education loan disclosures.--A 
                covered institution, or an institution-
                affiliated organization of such covered 
                institution, that provides information 
                regarding a private education loan from a 
                lender to a prospective borrower shall--
                          [(i) provide the prospective borrower 
                        with the information the Board of 
                        Governors of the Federal Reserve System 
                        requires to be disclosed under section 
                        128(e)(1) of the Truth in Lending Act 
                        (15 U.S.C. 1638(e)(1)) for such loan;]
                          (i) make available to the prospective 
                        borrower on a website or with 
                        informational material, the information 
                        the Board of Governors of the Federal 
                        Reserve System requires the lender to 
                        provide to the covered institution 
                        under section 128(e)(11) of the Truth 
                        in Lending Act (15 U.S.C. 1638(e)(11)) 
                        for such loan;
                          (ii) inform the prospective borrower 
                        that--
                                  (I) the prospective borrower 
                                may qualify for loans or other 
                                assistance under title IV; and
                                  (II) the terms and conditions 
                                of loans made, insured, or 
                                guaranteed under title IV may 
                                be more favorable than the 
                                provisions of private education 
                                loans; and
                          (iii) ensure that information 
                        regarding private education loans is 
                        presented in such a manner as to be 
                        distinct from information regarding 
                        loans that are made, insured, or 
                        guaranteed under title IV.
                  (C) Informational materials.--The 
                informational materials described in this 
                subparagraph are publications, mailings, or 
                electronic messages or materials that--
                          (i) are distributed to prospective or 
                        current students of a covered 
                        institution and families of such 
                        students; and
                          (ii) describe or discuss the 
                        financial aid opportunities available 
                        to students at an institution of higher 
                        education.
                  (D) Special rule.--Notwithstanding any other 
                provision of law, a covered institution, or an 
                institution-affiliated organization of such 
                covered institution, shall not be required to 
                provide any information regarding private 
                education loans to prospective borrowers except 
                for the information described in subparagraph 
                (B).
          (2) Use of institution name.--A covered institution, 
        or an institution-affiliated organization of such 
        covered institution, that enters into a preferred 
        lender arrangement with a lender regarding private 
        education loans shall not agree to the lender's use of 
        the name, emblem, mascot, or logo of such institution 
        or organization, or other words, pictures, or symbols 
        readily identified with such institution or 
        organization, in the marketing of private education 
        loans to students attending such institution in any way 
        that implies that the loan is offered or made by such 
        institution or organization instead of the lender.
          (3) Use of lender name.--A covered institution, or an 
        institution-affiliated organization of such covered 
        institution, that enters into a preferred lender 
        arrangement with a lender regarding private education 
        loans shall ensure that the name of the lender is 
        displayed in all information and documentation related 
        to such loans.
  (b) Lender Responsibilities.--
          (1) Disclosures by lenders.--
                  (A) Disclosures to borrowers.--
                          (i) Federal education loans.--For 
                        each education loan that is made, 
                        insured, or guaranteed under [part B or 
                        D] part B, D, or E of title IV (other 
                        than a loan made under section 428C or 
                        a Federal Direct Consolidation Loan), 
                        at or prior to the time the lender 
                        disburses such loan, the lender shall 
                        provide the prospective borrower or 
                        borrower, in writing (including through 
                        electronic means), with the disclosures 
                        described in subsections (a) and (c) of 
                        section 433.
                          (ii) Private education loans.--For 
                        each of a lender's private education 
                        loans, the lender shall comply with the 
                        disclosure requirements under section 
                        128(e) of the Truth in Lending Act (15 
                        U.S.C. 1638(e)).
                  (B) Disclosures to the secretary.--
                          (i) In general.--Each lender of a 
                        loan made, insured, or guaranteed under 
                        part B of title IV shall, on an annual 
                        basis, report to the Secretary--
                                  (I) any reasonable expenses 
                                paid or provided under section 
                                435(d)(5)(D) or paragraph 
                                (3)(B) or (7) of section 487(e) 
                                to any agent of a covered 
                                institution who--
                                          (aa) is employed in 
                                        the financial aid 
                                        office of a covered 
                                        institution; or
                                          (bb) otherwise has 
                                        responsibilities with 
                                        respect to education 
                                        loans or other 
                                        financial aid of the 
                                        institution; and
                                  (II) any similar expenses 
                                paid or provided to any agent 
                                of an institution-affiliated 
                                organization who is involved in 
                                the practice of recommending, 
                                promoting, or endorsing 
                                education loans.
                          (ii) Contents of reports.--Each 
                        report described in clause (i) shall 
                        include--
                                  (I) the amount for each 
                                specific instance in which the 
                                lender provided such expenses;
                                  (II) the name of any agent 
                                described in clause (i) to whom 
                                the expenses were paid or 
                                provided;
                                  (III) the dates of the 
                                activity for which the expenses 
                                were paid or provided; and
                                  (IV) a brief description of 
                                the activity for which the 
                                expenses were paid or provided.
                          (iii) Report to congress.--The 
                        Secretary shall summarize the 
                        information received from the lenders 
                        under this subparagraph in a report and 
                        transmit such report annually to the 
                        authorizing committees.
          (2) Certification by lenders.--Not later than 18 
        months after the date of enactment of theHigher 
        Education Opportunity Act--
                  (A) in addition to any other disclosure 
                required under Federal law, each lender of a 
                loan made, insured, or guaranteed under part B 
                of title IV that participates in one or more 
                preferred lender arrangements shall annually 
                certify the lender's compliance with the 
                requirements of this Act; and
                  (B) if an audit of a lender is required 
                pursuant to section 428(b)(1)(U)(iii), the 
                lender's compliance with the requirements under 
                this section shall be reported on and attested 
                to annually by the auditor of such lender.

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

  (a) Duties of the Secretary.--
          (1) Determination of minimum disclosures.--
                  (A) In general.--Not later than 18 months 
                after the date of enactment of theHigher 
                Education Opportunity Act, the Secretary, in 
                coordination with the Board of Governors of the 
                Federal Reserve System, shall determine the 
                minimum information that lenders, covered 
                institutions, and institution-affiliated 
                organizations of such covered institutions 
                participating in preferred lender arrangements 
                shall make available regarding education loans 
                described in section 151(3)(A) that are offered 
                to students and the families of such students.
                  (B) Consultation and content of minimum 
                disclosures.--In carrying out subparagraph (A), 
                the Secretary shall--
                          (i) consult with students, the 
                        families of such students, 
                        representatives of covered institutions 
                        (including financial aid 
                        administrators, admission officers, and 
                        business officers), representatives of 
                        institution-affiliated organizations, 
                        secondary school guidance counselors, 
                        lenders, loan servicers, and guaranty 
                        agencies; and
                          (ii) include, in the minimum 
                        information under subparagraph (A) that 
                        is required to be made available, the 
                        information that the Board of Governors 
                        of the Federal Reserve System requires 
                        to be disclosed under section 128(e)(1) 
                        of the Truth in Lending Act (15 U.S.C. 
                        1638(e)(1)), modified as necessary to 
                        apply to such loans[; and].
                          [(iii) consider the merits of 
                        requiring each covered institution, and 
                        each institution-affiliated 
                        organization of such covered 
                        institution, with a preferred lender 
                        arrangement to provide to prospective 
                        borrowers and the families of such 
                        borrowers the following information for 
                        each type of education loan offered 
                        pursuant to such preferred lender 
                        arrangement:
                                  [(I) The interest rate and 
                                terms and conditions of the 
                                loan for the next award year, 
                                including loan forgiveness and 
                                deferment.
                                  [(II) Information on any 
                                charges, such as origination 
                                and Federal default fees, that 
                                are payable on the loan, and 
                                whether those charges will be--
                                          [(aa) collected by 
                                        the lender at or prior 
                                        to the disbursal of the 
                                        loan, including whether 
                                        the charges will be 
                                        deducted from the 
                                        proceeds of the loan or 
                                        paid separately by the 
                                        borrower; or
                                          [(bb) paid in whole 
                                        or in part by the 
                                        lender.
                                  [(III) The annual and 
                                aggregate maximum amounts that 
                                may be borrowed.
                                  [(IV) The average amount 
                                borrowed from the lender by 
                                students who graduated from 
                                such institution in the 
                                preceding year with 
                                certificates, undergraduate 
                                degrees, graduate degrees, and 
                                professional degrees, as 
                                applicable, and who obtained 
                                loans of such type from the 
                                lender for the preceding year.
                                  [(V) The amount the borrower 
                                may pay in interest, based on a 
                                standard repayment plan and the 
                                average amount borrowed from 
                                the lender by students who 
                                graduated from such institution 
                                in the preceding year and who 
                                obtained loans of such type 
                                from the lender for the 
                                preceding year, for--
                                          [(aa) borrowers of 
                                        loans made under 
                                        section 428;
                                          [(bb) borrowers of 
                                        loans made under 
                                        section 428B or 428H, 
                                        who pay the interest 
                                        while in school; and
                                          [(cc) borrowers of 
                                        loans made under 
                                        section 428B or 428H, 
                                        who do not pay the 
                                        interest while in 
                                        school.
                                  [(VI) The consequences for 
                                the borrower of defaulting on a 
                                loan, including limitations on 
                                the discharge of an education 
                                loan in bankruptcy.
                                  [(VII) Contact information 
                                for the lender.
                                  [(VIII) Other information 
                                suggested by the persons and 
                                entities with whom the 
                                Secretary has consulted under 
                                clause (i).]
          (2) Required disclosures.--After making the 
        determinations under paragraph (1), the Secretary, in 
        coordination with the Board of Governors of the Federal 
        Reserve System and after consultation with the public, 
        shall--
                  (A)(i) provide that the information 
                determined under paragraph (1) shall be 
                disclosed by covered institutions, and 
                institution-affiliated organizations of such 
                covered institutions, with preferred lender 
                arrangements to prospective borrowers and the 
                families of such borrowers regarding the 
                education loans described in section 151(3)(A) 
                that are offered pursuant to such preferred 
                lender arrangements; and
                  (ii) make clear that such covered 
                institutions and institution-affiliated 
                organizations may provide the required 
                information on a form designed by the 
                institution or organization instead of the 
                model disclosure form described in subparagraph 
                (B);
                  (B) develop a model disclosure form that may 
                be used by covered institutions, institution-
                affiliated organizations, and preferred lenders 
                that includes all of the information required 
                under subparagraph (A)(i) in a format that--
                          (i) is easily usable by students, 
                        families, institutions, institution-
                        affiliated organizations, lenders, loan 
                        servicers, and guaranty agencies; and
                          (ii) is similar in format to the form 
                        developed by the Board of Governors of 
                        the Federal Reserve System under 
                        paragraphs (1) and (5)(A) of section 
                        128(e), in order to permit students and 
                        the families of students to easily 
                        compare private education loans and 
                        education loans described in section 
                        151(3)(A); and
                  [(C) update such model disclosure form 
                periodically, as necessary.]
                  (C) update such model disclosure form not 
                later than 180 after the date of enactment of 
                the PROSPER Act, and periodically thereafter, 
                as necessary.
  (b) Duties of Lenders.--Each lender that has a preferred 
lender arrangement with a covered institution, or an 
institution-affiliated organization of such covered 
institution, with respect to education loans described in 
section 151(3)(A) shall annually, by a date determined by the 
Secretary, provide to such covered institution or such 
institution-affiliated organization, and to the Secretary, the 
information the Secretary requires pursuant to subsection 
(a)(2)(A)(i) for each type of education loan described in 
section 151(3)(A) that the lender plans to offer pursuant to 
such preferred lender arrangement to students attending such 
covered institution, or to the families of such students, for 
the next award year.
  [(c) Duties of Covered Institutions and Institution-
Affiliated Organizations.--
          [(1) Providing information to students and 
        families.--
                  [(A) In general.--Each covered institution, 
                and each institution-affiliated organization of 
                such covered institution, that has a preferred 
                lender arrangement shall provide the following 
                information to students attending such 
                institution, or the families of such students, 
                as applicable:
                          [(i) The information the Secretary 
                        requires pursuant to subsection 
                        (a)(2)(A)(i), for each type of 
                        education loan described in section 
                        151(3)(A) offered pursuant to a 
                        preferred lender arrangement to 
                        students of such institution or the 
                        families of such students.
                          [(ii)(I) In the case of a covered 
                        institution, the information that the 
                        Board of Governors of the Federal 
                        Reserve System requires to be disclosed 
                        under section 128(e)(11) of the Truth 
                        in Lending Act (15 U.S.C. 1638(e)(11)) 
                        to the covered institution, for each 
                        type of private education loan offered 
                        pursuant to such preferred lender 
                        arrangement to students of such 
                        institution or the families of such 
                        students.
                          [(II) In the case of an institution-
                        affiliated organization, the 
                        information the Board of Governors of 
                        the Federal Reserve System requires to 
                        be disclosed under section 128(e)(1) of 
                        the Truth in Lending Act (15 U.S.C. 
                        1638(e)(1)), for each type of private 
                        education loan offered pursuant to such 
                        preferred lender arrangement to 
                        students of the institution with which 
                        such organization is affiliated or the 
                        families of such students.
                  [(B) Timely provision of information.--The 
                information described in subparagraph (A) shall 
                be provided in a manner that allows for the 
                students or the families to take such 
                information into account before selecting a 
                lender or applying for an education loan.
          [(2) Annual report.--Each covered institution, and 
        each institution-affiliated organization of such 
        covered institution, that has a preferred lender 
        arrangement, shall--
                  [(A) prepare and submit to the Secretary an 
                annual report, by a date determined by the 
                Secretary, that includes, for each lender that 
                has a preferred lender arrangement with such 
                covered institution or organization--
                          [(i) the information described in 
                        clauses (i) and (ii) of paragraph 
                        (1)(A); and
                          [(ii) a detailed explanation of why 
                        such covered institution or 
                        institution-affiliated organization 
                        entered into a preferred lender 
                        arrangement with the lender, including 
                        why the terms, conditions, and 
                        provisions of each type of education 
                        loan provided pursuant to the preferred 
                        lender arrangement are beneficial for 
                        students attending such institution, or 
                        the families of such students, as 
                        applicable; and
                  [(B) ensure that the report required under 
                subparagraph (A) is made available to the 
                public and provided to students attending or 
                planning to attend such covered institution and 
                the families of such students.
          [(3) Code of conduct.--
                  [(A) In general.--Each covered institution, 
                and each institution-affiliated organization of 
                such covered institution, that has a preferred 
                lender arrangement, shall comply with the code 
                of conduct requirements of subparagraphs (A) 
                through (C) of section 487(a)(25).
                  [(B) Applicable code of conduct.--For 
                purposes of subparagraph (A), an institution-
                affiliated organization of a covered 
                institution shall--
                          [(i) comply with the code of conduct 
                        developed and published by such covered 
                        institution under subparagraphs (A) and 
                        (B) of section 487(a)(25);
                          [(ii) if such institution-affiliated 
                        organization has a website, publish 
                        such code of conduct prominently on the 
                        website; and
                          [(iii) administer and enforce such 
                        code of conduct by, at a minimum, 
                        requiring that all of such 
                        organization's agents with 
                        responsibilities with respect to 
                        education loans be annually informed of 
                        the provisions of such code of 
                        conduct.]
  (c) Duties of Covered Institutions and Institution-affiliated 
Organizations.--
          (1) Code of conduct.--Each covered institution, and 
        each institution-affiliated organization of such 
        covered institution, that has a preferred lender 
        arrangement, shall comply with the code of conduct 
        requirements of subparagraphs (A) through (C) of 
        section 487(a)(23).
          (2) Applicable code of conduct.--For purposes of 
        subparagraph (A), an institution-affiliated 
        organization of a covered institution shall--
                  (A) comply with the code of conduct developed 
                and published by such covered institution under 
                subparagraphs (A) and (B) of section 
                487(a)(23);
                  (B) if such institution-affiliated 
                organization has a website, publish such code 
                of conduct prominently on the website; and
                  (C) administer and enforce such code of 
                conduct by, at a minimum, requiring that all of 
                such organization's agents with 
                responsibilities with respect to education 
                loans be annually informed of the provisions of 
                such code of conduct.

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

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

           *       *       *       *       *       *       *


                   PART F--ADDRESSING SEXUAL ASSAULT

SEC. 161. APPLICATION.

  The requirements of this part shall apply to any institution 
of higher education receiving Federal financial assistance 
under this Act, including financial assistance provided to 
students under title IV, other than--
          (1) an institution outside the United States; or
          (2) an institution that provides instruction 
        primarily through online courses.

SEC. 162. CAMPUS CLIMATE SURVEYS.

  (a) Surveys to Measure Campus Attitudes and Climate Regarding 
Sexual Assault and Misconduct on Campus.--Each institution of 
higher education that is subject to this part shall conduct 
surveys of its students to measure campus attitudes towards 
sexual assault and the general climate of the campus regarding 
the institution's treatment of sexual assault on campus, and 
shall use the results of the survey to improve the 
institution's ability to prevent and respond appropriately to 
incidents of sexual assault.
  (b) Contents.--The institution's survey under this section 
shall consist of such questions as the institution considers 
appropriate, which may (at the option of the institution) 
include any of the following:
          (1) Questions on the incidence and prevalence of 
        sexual assault experienced by students.
          (2) Questions on whether students who experience 
        sexual assault report such incidents to campus 
        officials or law enforcement agencies.
          (3) Questions on whether the alleged perpetrators are 
        students of the institution.
          (4) Questions to test the students' knowledge and 
        understanding of institutional policies regarding 
        sexual assault and available campus support services 
        for victims of sexual assault.
          (5) Questions to test the students' knowledge, 
        understanding, and retention of campus sexual assault 
        prevention and awareness programming.
          (6) Questions related to dating violence, domestic 
        violence, and stalking.
  (c) Other Issues Relating to the Administration of Surveys.--
          (1) Mandatory confidentiality of responses.--The 
        institution shall ensure that all responses to surveys 
        under this section are kept confidential and do not 
        require the respondents to provide personally 
        identifiable information.
          (2) Encouraging use of best practices and appropriate 
        language.--The institution is encouraged to administer 
        the surveys under this section in accordance with best 
        practices derived from peer-reviewed research, and to 
        use language that is sensitive to potential respondents 
        who may have been victims of sexual assault.
          (3) Encouraging responses.--The institution shall 
        make a good faith effort to encourage students to 
        respond to the surveys.
  (d) Role of Secretary.--
          (1) Development of sample surveys.--The Secretary, in 
        consultation with relevant stakeholders, shall develop 
        sample surveys that an institution may elect to use 
        under this section, and shall post such surveys on a 
        publicly accessible website of the Department of 
        Education. The Secretary shall develop sample surveys 
        that are suitable for the various populations who will 
        participate in the surveys.
          (2) Limit on other activities.--In carrying out this 
        section, the Secretary--
                  (A) may not regulate or otherwise impose 
                conditions on the contents of an institution's 
                surveys under this section, except as may be 
                necessary to ensure that the institution meets 
                the confidentiality requirements of subsection 
                (c)(1); and
                  (B) may not use the results of the surveys to 
                make comparisons between institutions of higher 
                education.
  (e) Frequency.--An institution of higher education that is 
subject to this part shall conduct a survey under this section 
not less frequently than once every 3 academic years.

SEC. 163. SURVIVORS' COUNSELORS.

  (a) Requiring Institutions to Make Counselor Available.--
          (1) In general.--Each institution of higher education 
        that is subject to this part shall retain the services 
        of qualified sexual assault survivors' counselors to 
        counsel and support students who are victims of sexual 
        assault.
          (2) Use of contractors permitted.--At the option of 
        the institution, the institution may retain the 
        services of counselors who are employees of the 
        institution or may enter into agreements with other 
        institutions of higher education, victim advocacy 
        organizations, or other appropriate sources to provide 
        counselors for purposes of this section.
          (3) Number.--The institution shall retain such number 
        of counselors under this section as the institution 
        considers appropriate based on a reasonable 
        determination of the anticipated demand for such 
        counselors' services, so long as the institution 
        retains the services of at least one such counselor at 
        all times.
  (b) Qualifications.--A counselor is qualified for purposes of 
this section if the counselor has completed education 
specifically designed to enable the counselor to provide 
support to victims of sexual assault, and is familiar with 
relevant laws on sexual assault as well as the institution's 
own policies regarding sexual assault.
  (c) Informing Victims of Available Options and Services.--In 
providing services pursuant to this section, a counselor 
shall--
          (1) inform the victim of sexual assault of options 
        available to victims, including the procedures the 
        victim may follow to report the assault to the 
        institution or to a law enforcement agency; and
          (2) inform the victim of interim measures that may be 
        taken pending the resolution of institutional 
        disciplinary proceedings or the conclusion of criminal 
        justice proceedings.
  (d) Confidentiality.--
          (1) Maintaining confidentiality of information.--In 
        providing services pursuant to this section, a 
        counselor shall--
                  (A) maintain confidentiality with respect to 
                any information provided by a victim of sexual 
                assault to the greatest extent permitted under 
                applicable law; and
                  (B) notify the victim of any circumstances 
                under which the counselor is required to report 
                information to others (including a law 
                enforcement agency) notwithstanding the general 
                requirement to maintain confidentiality under 
                subparagraph (A).
          (2) Maintaining privacy of records.--A counselor 
        providing services pursuant to this section shall be 
        considered a recognized professional for purposes of 
        section 444(a)(4)(B)(iv) of the General Education 
        Provisions Act (commonly known as the ``Family 
        Educational Rights and Privacy Act of 1974'') (20 
        U.S.C. 1232g(a)(4)(B)(iv)).
  (e) Limitations.--
          (1) No reporting of incidents under clery act or 
        other authority.--A counselor providing services 
        pursuant to this section is not required to report 
        incidents of sexual assault that are reported to the 
        counselor for inclusion in any report on campus crime 
        statistics, and shall not be considered part of a 
        campus police or security department for purposes of 
        section 485(f).
          (2) No coverage of counselors as responsible 
        employees under title ix.--A counselor providing 
        services pursuant to this section on behalf of an 
        institution of higher education shall not be considered 
        a responsible employee of the institution for purposes 
        of title IX of the Education Amendments of 1972 (20 
        U.S.C. 1681 et seq.) or the regulations promulgated 
        pursuant to such title.
  (f) Notifications to Students.--Each institution of higher 
education that is subject to this part shall make a good faith 
effort to notify its students of the availability of the 
services of counselors pursuant to this section through the 
statement of policy described in section 485(f)(8)(B)(vi) and 
any other methods as the institution considers appropriate, 
including disseminating information through the institution's 
website, posting notices throughout the campus, and including 
information as part of programs to educate students on sexual 
assault prevention and awareness.

SEC. 164. FORM TO DISTRIBUTE TO VICTIMS OF SEXUAL ASSAULT.

  (a) Requirement to Develop and Distribute Form.--Each 
institution of higher education that is subject to this part 
shall develop a one-page form containing information to provide 
guidance and assistance to students who may be victims of 
sexual assault, and shall make the form widely available to 
students.
  (b) Contents of Form.--The form developed under this section 
shall contain such information as the institution considers 
appropriate, and may include the following:
          (1) Information about the services of counselors 
        which are available pursuant to section 163, including 
        a statement that the counselor will provide the maximum 
        degree of confidentiality permitted under law, and a 
        brief description of the circumstances under which the 
        counselor may be required to report information 
        notwithstanding the victim's desire to keep the 
        information confidential.
          (2) Information about other appropriate campus 
        resources and resources in the local community, 
        including contact information.
          (3) Information about where to obtain medical 
        treatment, and information about transportation 
        services to such medical treatment facilities, if 
        available.
          (4) Information about the importance of preserving 
        evidence after a sexual assault.
          (5) Information about how to file a report with local 
        law enforcement agencies.
          (6) Information about the victim's right to request 
        accommodations, and examples of accommodations that may 
        be provided.
          (7) Information about the victim's right to request 
        that the institution begin an investigation of an 
        allegation of sexual assault and initiate an 
        institutional disciplinary proceeding if the alleged 
        perpetrator of the assault is another student or a 
        member of the faculty or staff of the institution.
          (8) A statement that an institutional disciplinary 
        proceeding is not a substitute for a criminal justice 
        proceeding.
          (9) Information about how to report a sexual assault 
        to the institution, including the designated official 
        or office responsible for receiving these reports.
  (c) Development of Model Forms.--The Secretary, in 
consultation with relevant stakeholders, shall develop model 
forms that an institution may use to meet the requirements of 
this section, and shall include in such model forms language 
which may accommodate a variety of State and local laws and 
institutional policies. Nothing in this subsection may be 
construed to require an institution to use any of the model 
forms developed under this subsection.

SEC. 165. MEMORANDA OF UNDERSTANDING WITH LOCAL LAW ENFORCEMENT 
                    AGENCIES.

  (a) Findings; Purpose.--
          (1) Findings.--Because sexual assault is a serious 
        crime, coordination and cooperation between 
        institutions of higher education and law enforcement 
        agencies are critical in ensuring that reports of 
        sexual assaults on campus are handled in an appropriate 
        and effective manner. A memorandum of understanding 
        entered into between an institution and the law 
        enforcement agency with primary jurisdiction for 
        responding to reports of sexual assault on the 
        institution's campus is a useful tool to promote this 
        coordination and cooperation.
          (2) Purpose.--It is the purpose of this section to 
        encourage each institution of higher education that is 
        subject to this part to enter into a memorandum of 
        understanding with the law enforcement agency with 
        primary jurisdiction for responding to reports of 
        sexual assault on the institution's campus so that 
        reports of sexual assault on the institution's campus 
        may be handled in an appropriate and effective manner.
  (b) Contents of Memorandum.--An institution of higher 
education and a law enforcement agency entering into a 
memorandum of understanding described in this section are 
encouraged to include in the memorandum provisions addressing 
the following:
          (1) An outline of the protocols and a delineation of 
        responsibilities for responding to a report of sexual 
        assault occurring on campus.
          (2) A clarification of each party's responsibilities 
        under existing Federal, State, and local law or 
        policies.
          (3) The need for the law enforcement agency to know 
        about institutional policies and resources so that the 
        agency can direct student-victims of sexual assault to 
        such resources.
          (4) The need for the institution to know about 
        resources available within the criminal justice system 
        to assist survivors, including the presence of special 
        prosecutor or police units specifically designated to 
        handle sexual assault cases.
          (5) If the institution has a campus police or 
        security department with law enforcement authority, the 
        need to clarify the relationship and delineate the 
        responsibilities between such department and the law 
        enforcement agency with respect to handling incidents 
        of sexual assaults occurring on campus.
  (c) Role of Secretary.--The Secretary, in consultation with 
the Attorney General, shall develop best practices for 
memoranda of understanding described in this section, and shall 
disseminate such best practices on a publicly accessible 
website of the Department of Education.

SEC. 166. DEFINITIONS.

  In this part:
          (1) The term ``sexual assault'' has the meaning given 
        such term in section 485(f)(6)(A)(v).
          (2) The terms ``dating violence'', ``domestic 
        violence'', and ``stalking'', have the meaning given 
        such terms in section 485(f)(6)(A)(i).

           *       *       *       *       *       *       *


                 [TITLE II--TEACHER QUALITY ENHANCEMENT

[SEC. 200. DEFINITIONS.

   [In this title:
          [(1) Arts and sciences.--The term ``arts and 
        sciences'' means--
                  [(A) when referring to an organizational unit 
                of an institution of higher education, any 
                academic unit that offers one or more academic 
                majors in disciplines or content areas 
                corresponding to the academic subject matter 
                areas in which teachers provide instruction; 
                and
                  [(B) when referring to a specific academic 
                subject area, the disciplines or content areas 
                in which academic majors are offered by the 
                arts and sciences organizational unit.
          [(2) Children from low-income families.--The term 
        ``children from low-income families'' means children 
        described in section 1124(c)(1)(A) of the Elementary 
        and Secondary Education Act of 1965.
          [(3) Core academic subjects.--The term ``core 
        academic subjects''means English, reading or language 
        arts, mathematics,science, foreign languages, civics 
        and government,economics, arts, history, and geography.
          [(4) Early childhood educator.--The term ``early 
        childhood educator'' means an individual with primary 
        responsibility for the education of children in an 
        early childhood education program.
          [(5) Educational service agency.--The term 
        ``educational service agency'' has the meaning given 
        the term in section 8101 of the Elementary and 
        SecondaryEducation Act of 1965.
          [(6) Eligible partnership.--Except as otherwise 
        provided in section 251, the term ``eligible 
        partnership'' means an entity that--
                  [(A) shall include--
                          [(i) a high-need local educational 
                        agency;
                          [(ii)(I) a high-need school or a 
                        consortium of high-need schools served 
                        by the high-need local educational 
                        agency; or
                          [(II) as applicable, a high-need 
                        early childhood education program;
                          [(iii) a partner institution;
                          [(iv) a school, department, or 
                        program of education within such 
                        partner institution, which may include 
                        an existing teacher professional 
                        development program with proven 
                        outcomes within a four-year institution 
                        of higher education that provides 
                        intensive and sustained collaboration 
                        between faculty and local educational 
                        agencies consistent with the 
                        requirements of this title; and
                          [(v) a school or department of arts 
                        and sciences within such partner 
                        institution; and
                  [(B) may include any of the following:
                          [(i) The Governor of the State.
                          [(ii) The State educational agency.
                          [(iii) The State board of education.
                          [(iv) The State agency for higher 
                        education.
                          [(v) A business.
                          [(vi) A public or private nonprofit 
                        educational organization.
                          [(vii) An educational service agency.
                          [(viii) A teacher organization.
                          [(ix) A high-performing local 
                        educational agency, or a consortium of 
                        such local educational agencies, that 
                        can serve as a resource to the 
                        partnership.
                          [(x) A charter school (as defined in 
                        section 4310 of the Elementary and 
                        SecondaryEducation Act of 1965).
                          [(xi) A school or department within 
                        the partner institution that focuses on 
                        psychology and human development.
                          [(xii) A school or department within 
                        the partner institution with comparable 
                        expertise in the disciplines of 
                        teaching, learning, and child and 
                        adolescent development.
                          [(xiii) An entity operating a program 
                        that provides alternative routes to 
                        State certification of teachers.
          [(7) Essential components of reading instruction.--
        The term ``essential components of reading 
        instruction'' has the meaning given the term in section 
        1208 of the Elementary and Secondary Education Act of 
        1965 as such section was in effect on the day before 
        the date of enactment of the Every Student Succeeds 
        Act.
          [(8) Exemplary teacher.--The term ``exemplary 
        teacher'' has the meaning given the term in section 
        9101 of the Elementary and Secondary Education Act of 
        1965 as such section was in effect on the day before 
        the date of enactment of the Every Student Succeeds 
        Act.
          [(9) High-need early childhood education program.--
        The term ``high-need early childhood education 
        program'' means an early childhood education program 
        serving children from low-income families that is 
        located within the geographic area served by a high-
        need local educational agency.
          [(10) High-need local educational agency.--The term 
        ``high-need local educational agency'' means a local 
        educational agency--
                  [(A)(i) for which not less than 20 percent of 
                the children served by the agency are children 
                from low-income families;
                  [(ii) that serves not fewer than 10,000 
                children from low-income families;
                  [(iii) that meets the eligibility 
                requirements for funding under the Small, Rural 
                School Achievement Program under section 
                5211(b) of the Elementary andSecondary 
                Education Act of 1965; or
                  [(iv) that meets the eligibility requirements 
                for funding under the Rural and Low-Income 
                School Program under section 5221(b) of the 
                Elementary andSecondary Education Act of 1965; 
                and
                  [(B)(i) for which there is a high percentage 
                of teachers not teaching in the academic 
                subject areas or grade levels in which the 
                teachers were trained to teach; or
                  [(ii) for which there is a high teacher 
                turnover rate or a high percentage of teachers 
                with emergency, provisional, or temporary 
                certification or licensure.
          [(11) High-need school.--
                  [(A) In general.--The term ``high-need 
                school'' means a school that, based on the most 
                recent data available, meets one or both of the 
                following:
                          [(i) The school is in the highest 
                        quartile of schools in a ranking of all 
                        schools served by a local educational 
                        agency, ranked in descending order by 
                        percentage of students from low-income 
                        families enrolled in such schools, as 
                        determined by the local educational 
                        agency based on one of the following 
                        measures of poverty:
                                  [(I) The percentage of 
                                students aged 5 through 17 in 
                                poverty counted in the most 
                                recent census data approved by 
                                the Secretary.
                                  [(II) The percentage of 
                                students eligible for a free or 
                                reduced price school lunch 
                                under the Richard B. Russell 
                                National School Lunch Act.
                                  [(III) The percentage of 
                                students in families receiving 
                                assistance under the State 
                                program funded under part A of 
                                title IV of the Social Security 
                                Act.
                                  [(IV) The percentage of 
                                students eligible to receive 
                                medical assistance under the 
                                Medicaid program.
                                  [(V) A composite of two or 
                                more of the measures described 
                                in subclauses (I) through (IV).
                          [(ii) In the case of--
                                  [(I) an elementary school, 
                                the school serves students not 
                                less than 60 percent of whom 
                                are eligible for a free or 
                                reduced price school lunch 
                                under the Richard B. Russell 
                                National School Lunch Act; or
                                  [(II) any other school that 
                                is not an elementary school, 
                                the other school serves 
                                students not less than 45 
                                percent of whom are eligible 
                                for a free or reduced price 
                                school lunch under the Richard 
                                B. Russell National School 
                                Lunch Act.
                  [(B) Special rule.--
                          [(i) Designation by the secretary.--
                        The Secretary may, upon approval of an 
                        application submitted by an eligible 
                        partnership seeking a grant under this 
                        title, designate a school that does not 
                        qualify as a high-need school under 
                        subparagraph (A) as a high-need school 
                        for the purpose of this title. The 
                        Secretary shall base the approval of an 
                        application for designation of a school 
                        under this clause on a consideration of 
                        the information required under clause 
                        (ii), and may also take into account 
                        other information submitted by the 
                        eligible partnership.
                          [(ii) Application requirements.--An 
                        application for designation of a school 
                        under clause (i) shall include--
                                  [(I) the number and 
                                percentage of students 
                                attending such school who are--
                                          [(aa) aged 5 through 
                                        17 in poverty counted 
                                        in the most recent 
                                        census data approved by 
                                        the Secretary;
                                          [(bb) eligible for a 
                                        free or reduced price 
                                        school lunch under the 
                                        Richard B. Russell 
                                        National School Lunch 
                                        Act;
                                          [(cc) in families 
                                        receiving assistance 
                                        under the State program 
                                        funded under part A of 
                                        title IV of the Social 
                                        Security Act; or
                                          [(dd) eligible to 
                                        receive medical 
                                        assistance under the 
                                        Medicaid program;
                                  [(II) information about the 
                                student academic achievement of 
                                students at such school; and
                                  [(III) for a secondary 
                                school, the graduation rate for 
                                such school.
          [(12) Highly competent.--The term ``highly 
        competent'', when used with respect to an early 
        childhood educator, means an educator--
                  [(A) with specialized education and training 
                in development and education of young children 
                from birth until entry into kindergarten;
                  [(B) with--
                          [(i) a baccalaureate degree in an 
                        academic major in the arts and 
                        sciences; or
                          [(ii) an associate's degree in a 
                        related educational area; and
                  [(C) who has demonstrated a high level of 
                knowledge and use of content and pedagogy in 
                the relevant areas associated with quality 
                early childhood education.
          [(14) Induction program.--The term ``induction 
        program'' means a formalized program for new teachers 
        during not less than the teachers' first two years of 
        teaching that is designed to provide support for, and 
        improve the professional performance and advance the 
        retention in the teaching field of, beginning teachers. 
        Such program shall promote effective teaching skills 
        and shall include the following components:
                  [(A) High-quality teacher mentoring.
                  [(B) Periodic, structured time for 
                collaboration with teachers in the same 
                department or field, including mentor teachers, 
                as well as time for information-sharing among 
                teachers, principals, administrators, other 
                appropriate instructional staff, and 
                participating faculty in the partner 
                institution.
                  [(C) The application of empirically-based 
                practice and scientifically valid research on 
                instructional practices.
                  [(D) Opportunities for new teachers to draw 
                directly on the expertise of teacher mentors, 
                faculty, and researchers to support the 
                integration of empirically-based practice and 
                scientifically valid research with practice.
                  [(E) The development of skills in 
                instructional and behavioral interventions 
                derived from empirically-based practice and, 
                where applicable, scientifically valid 
                research.
                  [(F) Faculty who--
                          [(i) model the integration hof 
                        research and practice in the classroom; 
                        and
                          [(ii) assist new teachers with the 
                        effective use and integration of 
                        technology in the classroom.
                  [(G) Interdisciplinary collaboration among 
                exemplary teachers, faculty, researchers, and 
                other staff who prepare new teachers with 
                respect to the learning process and the 
                assessment of learning.
                  [(H) Assistance with the understanding of 
                data, particularly student achievement data, 
                and the applicability of such data in classroom 
                instruction.
                  [(I) Regular and structured observation and 
                evaluation of new teachers by multiple 
                evaluators, using valid and reliable measures 
                of teaching skills.
          [(15) Limited english proficient.--The term ``limited 
        English proficient''has the meaning given the term 
        `English learner'in section 8101 of the Elementary and 
        Secondary EducationAct of 1965.
          [(16) Parent.--The term ``parent'' has the meaning 
        given the term in section 8101 of the Elementary and 
        SecondaryEducation Act of 1965.
          [(17) Partner institution.--The term ``partner 
        institution'' means an institution of higher education, 
        which may include a two-year institution of higher 
        education offering a dual program with a four-year 
        institution of higher education, participating in an 
        eligible partnership that has a teacher preparation 
        program--
                  [(A) whose graduates exhibit strong 
                performance on State-determined qualifying 
                assessments for new teachers through--
                          [(i) demonstrating that 80 percent or 
                        more of the graduates of the program 
                        who intend to enter the field of 
                        teaching have passed all of the 
                        applicable State qualification 
                        assessments for new teachers, which 
                        shall include an assessment of each 
                        prospective teacher's subject matter 
                        knowledge in the content area in which 
                        the teacher intends to teach; or
                          [(ii) being ranked among the highest-
                        performing teacher preparation programs 
                        in the State as determined by the 
                        State--
                                  [(I) using criteria 
                                consistent with the 
                                requirements for the State 
                                report card under section 
                                205(b) before the first 
                                publication of such report 
                                card; and
                                  [(II) using the State report 
                                card on teacher preparation 
                                required under section 205(b), 
                                after the first publication of 
                                such report card and for every 
                                year thereafter; and
                  [(B) that requires--
                          [(i) each student in the program to 
                        meet high academic standards or 
                        demonstrate a record of success, as 
                        determined by the institution 
                        (including prior to entering and being 
                        accepted into a program), and 
                        participate in intensive clinical 
                        experience;
                          [(ii) each student in the program 
                        preparing to become a teacher who meets 
                        the applicableState certification and 
                        licensure requirements, includingany 
                        requirements for certification obtained 
                        through alternativeroutes to 
                        certification, or, with regard to 
                        specialeducation teachers, the 
                        qualifications described in 
                        section612(a)(14)(C) of the Individuals 
                        with Disabilities EducationAct; and
                          [(iii) each student in the program 
                        preparing to become an early childhood 
                        educator to meet degree requirements, 
                        as established by the State, and become 
                        highly competent.
          [(18) Principles of scientific research.--The term 
        ``principles of scientific research'' means principles 
        of research that--
                  [(A) apply rigorous, systematic, and 
                objective methodology to obtain reliable and 
                valid knowledge relevant to education 
                activities and programs;
                  [(B) present findings and make claims that 
                are appropriate to, and supported by, the 
                methods that have been employed; and
                  [(C) include, appropriate to the research 
                being conducted--
                          [(i) use of systematic, empirical 
                        methods that draw on observation or 
                        experiment;
                          [(ii) use of data analyses that are 
                        adequate to support the general 
                        findings;
                          [(iii) reliance on measurements or 
                        observational methods that provide 
                        reliable and generalizable findings;
                          [(iv) strong claims of causal 
                        relationships, only with research 
                        designs that eliminate plausible 
                        competing explanations for observed 
                        results, such as, but not limited to, 
                        random-assignment experiments;
                          [(v) presentation of studies and 
                        methods in sufficient detail and 
                        clarity to allow for replication or, at 
                        a minimum, to offer the opportunity to 
                        build systematically on the findings of 
                        the research;
                          [(vi) acceptance by a peer-reviewed 
                        journal or critique by a panel of 
                        independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review; and
                          [(vii) consistency of findings across 
                        multiple studies or sites to support 
                        the generality of results and 
                        conclusions.
          [(19) Professional development.--The term 
        ``professional development'' has the meaning given the 
        term in section 8101 of the Elementary and Secondary 
        Education Act of 1965.
          [(20) Scientifically valid research.--The term 
        ``scientifically valid research'' includes applied 
        research, basic research, and field-initiated research 
        in which the rationale, design, and interpretation are 
        soundly developed in accordance with principles of 
        scientific research.
          [(21) Teacher mentoring.--The term ``teacher 
        mentoring'' means the mentoring of new or prospective 
        teachers through a program that--
                  [(A) includes clear criteria for the 
                selection of teacher mentors who will provide 
                role model relationships for mentees, which 
                criteria shall be developed by the eligible 
                partnership and based on measures of teacher 
                effectiveness;
                  [(B) provides high-quality training for such 
                mentors, including instructional strategies for 
                literacy instruction and classroom management 
                (including approaches that improve the 
                schoolwide climate for learning, which may 
                include positive behavioral interventions and 
                supports);
                  [(C) provides regular and ongoing 
                opportunities for mentors and mentees to 
                observe each other's teaching methods in 
                classroom settings during the day in a high-
                need school in the high-need local educational 
                agency in the eligible partnership;
                  [(D) provides paid release time for mentors, 
                as applicable;
                  [(E) provides mentoring to each mentee by a 
                colleague who teaches in the same field, grade, 
                or subject as the mentee;
                  [(F) promotes empirically-based practice of, 
                and scientifically valid research on, where 
                applicable--
                          [(i) teaching and learning;
                          [(ii) assessment of student learning;
                          [(iii) the development of teaching 
                        skills through the use of instructional 
                        and behavioral interventions; and
                          [(iv) the improvement of the mentees' 
                        capacity to measurably advance student 
                        learning; and
                  [(G) includes--
                          [(i) common planning time or 
                        regularly scheduled collaboration for 
                        the mentor and mentee; and
                          [(ii) joint professional development 
                        opportunities.
          [(22) Teaching residency program.--The term 
        ``teaching residency program'' means a school-based 
        teacher preparation program in which a prospective 
        teacher--
                  [(A) for one academic year, teaches alongside 
                a mentor teacher, who is the teacher of record;
                  [(B) receives concurrent instruction during 
                the year described in subparagraph (A) from the 
                partner institution, which courses may be 
                taught by local educational agency personnel or 
                residency program faculty, in the teaching of 
                the content area in which the teacher will 
                become certified or licensed;
                  [(C) acquires effective teaching skills; and
                  [(D) prior to completion of the program--
                          [(i) attains full State certification 
                        or licensure and, with respect to 
                        special educationteachers, meets the 
                        qualifications described in 
                        section612(a)(14)(C) of the Individuals 
                        with Disabilities EducationAct; and
                          [(ii) acquires a master's degree not 
                        later than 18 months after beginning 
                        the program.
          [(23) Teaching skills.--The term ``teaching skills'' 
        means skills that enable a teacher to--
                  [(A) increase student learning, achievement, 
                and the ability to apply knowledge;
                  [(B) effectively convey and explain academic 
                subject matter;
                  [(C) effectively teach higher-order 
                analytical, evaluation, problem-solving, and 
                communication skills;
                  [(D) employ strategies grounded in the 
                disciplines of teaching and learning that--
                          [(i) are based on empirically-based 
                        practice and scientifically valid 
                        research, where applicable, related to 
                        teaching and learning;
                          [(ii) are specific to academic 
                        subject matter; and
                          [(iii) focus on the identification of 
                        students' specific learning needs, 
                        particularly students with 
                        disabilities, students who are limited 
                        English proficient, students who are 
                        gifted and talented, and students with 
                        low literacy levels, and the tailoring 
                        of academic instruction to such needs;
                  [(E) conduct an ongoing assessment of student 
                learning, which may include the use of 
                formative assessments, performance-based 
                assessments, project-based assessments, or 
                portfolio assessments, that measures higher-
                order thinking skills (including application, 
                analysis, synthesis, and evaluation);
                  [(F) effectively manage a classroom, 
                including the ability to implement positive 
                behavioral interventions and support 
                strategies;
                  [(G) communicate and work with parents, and 
                involve parents in their children's education; 
                and
                  [(H) use, in the case of an early childhood 
                educator, age-appropriate and developmentally 
                appropriate strategies and practices for 
                children in early childhood education programs.

              [PART A--TEACHER QUALITY PARTNERSHIP GRANTS

[SEC. 201. PURPOSES.

   [The purposes of this part are to--
          [(1) improve student achievement;
          [(2) improve the quality of prospective and new 
        teachers by improving the preparation of prospective 
        teachers and enhancing professional development 
        activities for new teachers;
          [(3) hold teacher preparation programs at 
        institutions of higher education accountable for 
        preparing teachers who meet the applicable State 
        certificationand licensure requirements, including any 
        requirementsfor certification obtained through 
        alternative routes to certification,or, with regard to 
        special education teachers, the qualificationsdescribed 
        in section 612(a)(14)(C) of the Individualswith 
        Disabilities Education Act; and
          [(4) recruit highly qualified individuals, including 
        minorities and individuals from other occupations, into 
        the teaching force.

[SEC. 202. PARTNERSHIP GRANTS.

  [(a) Program Authorized.--From amounts made available under 
section 209, the Secretary is authorized to award grants, on a 
competitive basis, to eligible partnerships, to enable the 
eligible partnerships to carry out the activities described in 
subsection (c).
  [(b) Application.--Each eligible partnership desiring a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such 
information as the Secretary may require. Each such application 
shall contain--
          [(1) a needs assessment of the partners in the 
        eligible partnership with respect to the preparation, 
        ongoing training, professional development, and 
        retention of general education and special education 
        teachers, principals, and, as applicable, early 
        childhood educators;
          [(2) a description of the extent to which the program 
        to be carried out with grant funds, as described in 
        subsection (c), will prepare prospective and new 
        teachers with strong teaching skills;
          [(3) a description of how such program will prepare 
        prospective and new teachers to understand and use 
        research and data to modify and improve classroom 
        instruction;
          [(4) a description of--
                  [(A) how the eligible partnership will 
                coordinate strategies and activities assisted 
                under the grant with other teacher preparation 
                or professional development programs, including 
                programs funded under the Elementary and 
                Secondary Education Act of 1965 and the 
                Individuals with Disabilities Education Act, 
                and through the National Science Foundation; 
                and
                  [(B) how the activities of the partnership 
                will be consistent with State, local, and other 
                education reform activities that promote 
                teacher quality and student academic 
                achievement;
          [(5) an assessment that describes the resources 
        available to the eligible partnership, including--
                  [(A) the integration of funds from other 
                related sources;
                  [(B) the intended use of the grant funds; and
                  [(C) the commitment of the resources of the 
                partnership to the activities assisted under 
                this section, including financial support, 
                faculty participation, and time commitments, 
                and to the continuation of the activities when 
                the grant ends;
          [(6) a description of--
                  [(A) how the eligible partnership will meet 
                the purposes of this part;
                  [(B) how the partnership will carry out the 
                activities required under subsection (d) or 
                (e), based on the needs identified in paragraph 
                (1), with the goal of improving student 
                academic achievement;
                  [(C) if the partnership chooses to use funds 
                under this section for a project or activities 
                under subsection (f) or (g), how the 
                partnership will carry out such project or 
                required activities based on the needs 
                identified in paragraph (1), with the goal of 
                improving student academic achievement;
                  [(D) the partnership's evaluation plan under 
                section 204(a);
                  [(E) how the partnership will align the 
                teacher preparation program under subsection 
                (c) with the--
                          [(i) State early learning standards 
                        for early childhood education programs, 
                        as appropriate, and with the relevant 
                        domains of early childhood development; 
                        and
                          [(ii) challenging State academic 
                        standards under section 1111(b)(1) of 
                        the Elementary and Secondary Education 
                        Act of 1965, established by the State 
                        in which the partnership is located;
                  [(F) how the partnership will prepare general 
                education teachers to teach students with 
                disabilities, including training related to 
                participation as a member of individualized 
                education program teams, as defined in section 
                614(d)(1)(B) of the Individuals with 
                Disabilities Education Act;
                  [(G) how the partnership will prepare general 
                education and special education teachers to 
                teach students who are limited English 
                proficient;
                  [(H) how faculty at the partner institution 
                will work, during the term of the grant, with 
                teachers who meet the applicableState 
                certification and licensure requirements, 
                includingany requirements for certification 
                obtained through alternativeroutes to 
                certification, or, with regard to 
                specialeducation teachers, the qualifications 
                described in section612(a)(14)(C) of the 
                Individuals with Disabilities EducationAct, in 
                the classrooms of high-need schools served by 
                the high-need local educational agency in the 
                partnership to--
                          [(i) provide high-quality 
                        professional development activities to 
                        strengthen the content knowledge and 
                        teaching skills of elementary school 
                        and secondary school teachers; and
                          [(ii) train other classroom teachers 
                        to implement literacy programs that 
                        incorporate the essential components of 
                        reading instruction;
                  [(I) how the partnership will design, 
                implement, or enhance a year-long and rigorous 
                teaching preservice clinical program component;
                  [(J) how the partnership will support in-
                service professional development strategies and 
                activities; and
                  [(K) how the partnership will collect, 
                analyze, and use data on the retention of all 
                teachers and early childhood educators in 
                schools and early childhood education programs 
                located in the geographic area served by the 
                partnership to evaluate the effectiveness of 
                the partnership's teacher and educator support 
                system; and
          [(7) with respect to the induction program required 
        as part of the activities carried out under this 
        section--
                  [(A) a demonstration that the schools and 
                departments within the institution of higher 
                education that are part of the induction 
                program will effectively prepare teachers, 
                including providing content expertise and 
                expertise in teaching, as appropriate;
                  [(B) a demonstration of the eligible 
                partnership's capability and commitment to, and 
                the accessibility to and involvement of faculty 
                in, the use of empirically-based practice and 
                scientifically valid research on teaching and 
                learning;
                  [(C) a description of how the teacher 
                preparation program will design and implement 
                an induction program to support, through not 
                less than the first two years of teaching, all 
                new teachers who are prepared by the teacher 
                preparation program in the partnership and who 
                teach in the high-need local educational agency 
                in the partnership, and, to the extent 
                practicable, all new teachers who teach in such 
                high-need local educational agency, in the 
                further development of the new teachers' 
                teaching skills, including the use of mentors 
                who are trained and compensated by such program 
                for the mentors' work with new teachers; and
                  [(D) a description of how faculty involved in 
                the induction program will be able to 
                substantially participate in an early childhood 
                education program or an elementary school or 
                secondary school classroom setting, as 
                applicable, including release time and 
                receiving workload credit for such 
                participation.
  [(c) Use of Grant Funds.--An eligible partnership that 
receives a grant under this section--
          [(1) shall use grant funds to carry out a program for 
        the preparation of teachers under subsection (d), a 
        teaching residency program under subsection (e), or a 
        combination of such programs; and
          [(2) may use grant funds to carry out a leadership 
        development program under subsection (f).
  [(d) Partnership Grants for the Preparation of Teachers.--An 
eligible partnership that receives a grant to carry out a 
program for the preparation of teachers shall carry out an 
effective pre-baccalaureate teacher preparation program or a 
5th year initial licensing program that includes all of the 
following:
          [(1) Reforms.--
                  [(A) In general.--Implementing reforms, 
                described in subparagraph (B), within each 
                teacher preparation program and, as applicable, 
                each preparation program for early childhood 
                education programs, of the eligible partnership 
                that is assisted under this section, to hold 
                each program accountable for--
                          [(i) preparing--
                                  [(I) new or prospective 
                                teachers to meet the applicable 
                                Statecertification and 
                                licensure requirements, 
                                includingany requirements for 
                                certification obtainedthrough 
                                alternative routes to 
                                certification, or, withregard 
                                to special education teachers, 
                                the qualificationsdescribed in 
                                section 612(a)(14)(C) of 
                                theIndividuals with 
                                Disabilities Education 
                                Act(including teachers in rural 
                                school districts, 
                                specialeducators, and teachers 
                                of students who are 
                                limitedEnglish proficient);
                                  [(II) such teachers and, as 
                                applicable, early childhood 
                                educators, to understand 
                                empirically-based practice and 
                                scientifically valid research 
                                related to teaching and 
                                learning and the applicability 
                                of such practice and research, 
                                including through the effective 
                                use of technology, 
                                instructional techniques, and 
                                strategies consistent with the 
                                principles of universal design 
                                for learning, and through 
                                positive behavioral 
                                interventions and support 
                                strategies to improve student 
                                achievement; and
                                  [(III) as applicable, early 
                                childhood educators to be 
                                highly competent; and
                          [(ii) promoting strong teaching 
                        skills and, as applicable, techniques 
                        for early childhood educators to 
                        improve children's cognitive, social, 
                        emotional, and physical development.
                  [(B) Required reforms.--The reforms described 
                in subparagraph (A) shall include--
                          [(i) implementing teacher preparation 
                        program curriculum changes that 
                        improve, evaluate, and assess how well 
                        all prospective and new teachers 
                        develop teaching skills;
                          [(ii) using empirically-based 
                        practice and scientifically valid 
                        research, where applicable, about 
                        teaching and learning so that all 
                        prospective teachers and, as 
                        applicable, early childhood educators--
                                  [(I) understand and can 
                                implement research-based 
                                teaching practices in classroom 
                                instruction;
                                  [(II) have knowledge of 
                                student learning methods;
                                  [(III) possess skills to 
                                analyze student academic 
                                achievement data and other 
                                measures of student learning, 
                                and use such data and measures 
                                to improve classroom 
                                instruction;
                                  [(IV) possess teaching skills 
                                and an understanding of 
                                effective instructional 
                                strategies across all 
                                applicable content areas that 
                                enable general education and 
                                special education teachers and 
                                early childhood educators to--
                                          [(aa) meet the 
                                        specific learning needs 
                                        of all students, 
                                        including students with 
                                        disabilities, students 
                                        who are limited English 
                                        proficient, students 
                                        who are gifted and 
                                        talented, students with 
                                        low literacy levels 
                                        and, as applicable, 
                                        children in early 
                                        childhood education 
                                        programs; and
                                          [(bb) differentiate 
                                        instruction for such 
                                        students;
                                  [(V) can effectively 
                                participate as a member of the 
                                individualized education 
                                program team, as defined in 
                                section 614(d)(1)(B) of the 
                                Individuals with Disabilities 
                                Education Act; and
                                  [(VI) can successfully employ 
                                effective strategies for 
                                reading instruction using the 
                                essential components of reading 
                                instruction;
                          [(iii) ensuring collaboration with 
                        departments, programs, or units of a 
                        partner institution outside of the 
                        teacher preparation program in all 
                        academic content areas to ensure that 
                        prospective teachers receive training 
                        in both teaching and relevant content 
                        areas in order to meet the applicable 
                        State certificationand licensure 
                        requirements, including anyrequirements 
                        for certification obtained 
                        throughalternative routes to 
                        certification, or, with regardto 
                        special education teachers, the 
                        qualificationsdescribed in section 
                        612(a)(14)(C) of the Individualswith 
                        Disabilities Education Act, which 
                        mayinclude training in multiple 
                        subjects to teach multiplegrade levels 
                        as may be needed for 
                        individualspreparing to teach in rural 
                        communities and forindividuals 
                        preparing to teach students 
                        withdisabilities;
                          [(iv) developing and implementing an 
                        induction program;
                          [(v) developing admissions goals and 
                        priorities aligned with the hiring 
                        objectives of the high-need local 
                        educational agency in the eligible 
                        partnership; and
                          [(vi) implementing program and 
                        curriculum changes, as applicable, to 
                        ensure that prospective teachers have 
                        the requisite content knowledge, 
                        preparation, and degree to teach 
                        Advanced Placement or International 
                        Baccalaureate courses successfully.
          [(2) Clinical experience and interaction.--Developing 
        and improving a sustained and high-quality preservice 
        clinical education program to further develop the 
        teaching skills of all prospective teachers and, as 
        applicable, early childhood educators, involved in the 
        program. Such program shall do the following:
                  [(A) Incorporate year-long opportunities for 
                enrichment, including--
                          [(i) clinical learning in classrooms 
                        in high-need schools served by the 
                        high-need local educational agency in 
                        the eligible partnership, and 
                        identified by the eligible partnership; 
                        and
                          [(ii) closely supervised interaction 
                        between prospective teachers and 
                        faculty, experienced teachers, 
                        principals, other administrators, and 
                        school leaders at early childhood 
                        education programs (as applicable), 
                        elementary schools, or secondary 
                        schools, and providing support for such 
                        interaction.
                  [(B) Integrate pedagogy and classroom 
                practice and promote effective teaching skills 
                in academic content areas.
                  [(C) Provide high-quality teacher mentoring.
                  [(D) Be offered over the course of a program 
                of teacher preparation.
                  [(E) Be tightly aligned with course work (and 
                may be developed as a fifth year of a teacher 
                preparation program).
                  [(F) Where feasible, allow prospective 
                teachers to learn to teach in the same local 
                educational agency in which the teachers will 
                work, learning the instructional initiatives 
                and curriculum of that local educational 
                agency.
                  [(G) As applicable, provide training and 
                experience to enhance the teaching skills of 
                prospective teachers to better prepare such 
                teachers to meet the unique needs of teaching 
                in rural or urban communities.
                  [(H) Provide support and training for 
                individuals participating in an activity for 
                prospective or new teachers described in this 
                paragraph or paragraph (1) or (3), and for 
                individuals who serve as mentors for such 
                teachers, based on each individual's 
                experience. Such support may include--
                          [(i) with respect to a prospective 
                        teacher or a mentor, release time for 
                        such individual's participation;
                          [(ii) with respect to a faculty 
                        member, receiving course workload 
                        credit and compensation for time 
                        teaching in the eligible partnership's 
                        activities; and
                          [(iii) with respect to a mentor, a 
                        stipend, which may include bonus, 
                        differential, incentive, or performance 
                        pay, based on the mentor's extra skills 
                        and responsibilities.
          [(3) Induction programs for new teachers.--Creating 
        an induction program for new teachers or, in the case 
        of an early childhood education program, providing 
        mentoring or coaching for new early childhood 
        educators.
          [(4) Support and training for participants in early 
        childhood education programs.--In the case of an 
        eligible partnership focusing on early childhood 
        educator preparation, implementing initiatives that 
        increase compensation for early childhood educators who 
        attain associate or baccalaureate degrees in early 
        childhood education.
          [(5) Teacher recruitment.--Developing and 
        implementing effective mechanisms (which may include 
        alternative routes to State certification of teachers) 
        to ensure that the eligible partnership is able to 
        recruit qualified individuals to become teachers 
        whomeet the applicable State certification and 
        licensurerequirements, including any requirements for 
        certificationobtained through alternative routes to 
        certification,or, with regard to special education 
        teachers,the qualifications described in section 
        612(a)(14)(C) ofthe Individuals with Disabilities 
        Education Act through the activities of the eligible 
        partnership, which may include an emphasis on 
        recruiting into the teaching profession--
                  [(A) individuals from under represented 
                populations;
                  [(B) individuals to teach in rural 
                communities and teacher shortage areas, 
                including mathematics, science, special 
                education, and the instruction of limited 
                English proficient students; and
                  [(C) mid-career professionals from other 
                occupations, former military personnel, and 
                recent college graduates with a record of 
                academic distinction.
          [(6) Literacy training.--Strengthening the literacy 
        teaching skills of prospective and, as applicable, new 
        elementary school and secondary school teachers--
                  [(A) to implement literacy programs that 
                incorporate the essential components of reading 
                instruction;
                  [(B) to use screening, diagnostic, formative, 
                and summative assessments to determine 
                students' literacy levels, difficulties, and 
                growth in order to improve classroom 
                instruction and improve student reading and 
                writing skills;
                  [(C) to provide individualized, intensive, 
                and targeted literacy instruction for students 
                with deficiencies in literacy skills; and
                  [(D) to integrate literacy skills in the 
                classroom across subject areas.
  [(e) Partnership Grants for the Establishment of Teaching 
Residency Programs.--
          [(1) In general.--An eligible partnership receiving a 
        grant to carry out an effective teaching residency 
        program shall carry out a program that includes all of 
        the following activities:
                  [(A) Supporting a teaching residency program 
                described in paragraph (2) for high-need 
                subjects and areas, as determined by the needs 
                of the high-need local educational agency in 
                the partnership.
                  [(B) Placing graduates of the teaching 
                residency program in cohorts that facilitate 
                professional collaboration, both among 
                graduates of the teaching residency program and 
                between such graduates and mentor teachers in 
                the receiving school.
                  [(C) Ensuring that teaching residents who 
                participate in the teaching residency program 
                receive--
                          [(i) effective preservice preparation 
                        as described in paragraph (2);
                          [(ii) teacher mentoring;
                          [(iii) support required through the 
                        induction program as the teaching 
                        residents enter the classroom as new 
                        teachers; and
                          [(iv) the preparation described in 
                        subparagraphs (A), (B), and (C) of 
                        subsection (d)(2).
          [(2) Teaching residency programs.--
                  [(A) Establishment and design.--A teaching 
                residency program under this paragraph shall be 
                a program based upon models of successful 
                teaching residencies that serves as a mechanism 
                to prepare teachers for success in the high-
                need schools in the eligible partnership, and 
                shall be designed to include the following 
                characteristics of successful programs:
                          [(i) The integration of pedagogy, 
                        classroom practice, and teacher 
                        mentoring.
                          [(ii) Engagement of teaching 
                        residents in rigorous graduate-level 
                        course work leading to a master's 
                        degree while undertaking a guided 
                        teaching apprenticeship.
                          [(iii) Experience and learning 
                        opportunities alongside a trained and 
                        experienced mentor teacher--
                                  [(I) whose teaching shall 
                                complement the residency 
                                program so that classroom 
                                clinical practice is tightly 
                                aligned with coursework;
                                  [(II) who shall have extra 
                                responsibilities as a teacher 
                                leader of the teaching 
                                residency program, as a mentor 
                                for residents, and as a teacher 
                                coach during the induction 
                                program for new teachers, and 
                                for establishing, within the 
                                program, a learning community 
                                in which all individuals are 
                                expected to continually improve 
                                their capacity to advance 
                                student learning; and
                                  [(III) who may be relieved 
                                from teaching duties as a 
                                result of such additional 
                                responsibilities.
                          [(iv) The establishment of clear 
                        criteria for the selection of mentor 
                        teachers based on measures of teacher 
                        effectiveness and the appropriate 
                        subject area knowledge. Evaluation of 
                        teacher effectiveness shall be based 
                        on, but not limited to, observations of 
                        the following:
                                  [(I) Planning and 
                                preparation, including 
                                demonstrated knowledge of 
                                content, pedagogy, and 
                                assessment, including the use 
                                of formative and diagnostic 
                                assessments to improve student 
                                learning.
                                  [(II) Appropriate instruction 
                                that engages students with 
                                different learning styles.
                                  [(III) Collaboration with 
                                colleagues to improve 
                                instruction.
                                  [(IV) Analysis of gains in 
                                student learning, based on 
                                multiple measures that are 
                                valid and reliable and that, 
                                when feasible, may include 
                                valid, reliable, and objective 
                                measures of the influence of 
                                teachers on the rate of student 
                                academic progress.
                                  [(V) In the case of mentor 
                                candidates who will be 
                                mentoring new or prospective 
                                literacy and mathematics 
                                coaches or instructors, 
                                appropriate skills in the 
                                essential components of reading 
                                instruction, teacher training 
                                in literacy instructional 
                                strategies across core subject 
                                areas, and teacher training in 
                                mathematics instructional 
                                strategies, as appropriate.
                          [(v) Grouping of teaching residents 
                        in cohorts to facilitate professional 
                        collaboration among such residents.
                          [(vi) The development of admissions 
                        goals and priorities--
                                  [(I) that are aligned with 
                                the hiring objectives of the 
                                local educational agency 
                                partnering with the program, as 
                                well as the instructional 
                                initiatives and curriculum of 
                                such agency, in exchange for a 
                                commitment by such agency to 
                                hire qualified graduates from 
                                the teaching residency program; 
                                and
                                  [(II) which may include 
                                consideration of applicants who 
                                reflect the communities in 
                                which they will teach as well 
                                as consideration of individuals 
                                from underrepresented 
                                populations in the teaching 
                                profession.
                          [(vii) Support for residents, once 
                        the teaching residents are hired as 
                        teachers of record, through an 
                        induction program, professional 
                        development, and networking 
                        opportunities to support the residents 
                        through not less than the residents' 
                        first two years of teaching.
                  [(B) Selection of individuals as teacher 
                residents.--
                          [(i) Eligible individual.--In order 
                        to be eligible to be a teacher resident 
                        in a teaching residency program under 
                        this paragraph, an individual shall--
                                  [(I) be a recent graduate of 
                                a four-year institution of 
                                higher education or a mid-
                                career professional from 
                                outside the field of education 
                                possessing strong content 
                                knowledge or a record of 
                                professional accomplishment; 
                                and
                                  [(II) submit an application 
                                to the teaching residency 
                                program.
                          [(ii) Selection criteria.--An 
                        eligible partnership carrying out a 
                        teaching residency program under this 
                        subsection shall establish criteria for 
                        the selection of eligible individuals 
                        to participate in the teaching 
                        residency program based on the 
                        following characteristics:
                                  [(I) Strong content knowledge 
                                or record of accomplishment in 
                                the field or subject area to be 
                                taught.
                                  [(II) Strong verbal and 
                                written communication skills, 
                                which may be demonstrated by 
                                performance on appropriate 
                                tests.
                                  [(III) Other attributes 
                                linked to effective teaching, 
                                which may be determined by 
                                interviews or performance 
                                assessments, as specified by 
                                the eligible partnership.
                  [(C) Stipends or salaries; applications; 
                agreements; repayments.--
                          [(i) Stipends or salaries.--A 
                        teaching residency program under this 
                        subsection shall provide a one-year 
                        living stipend or salary to teaching 
                        residents during the teaching residency 
                        program.
                          [(ii) Applications for stipends or 
                        salaries.--Each teacher residency 
                        candidate desiring a stipend or salary 
                        during the period of residency shall 
                        submit an application to the eligible 
                        partnership at such time, and 
                        containing such information and 
                        assurances, as the eligible partnership 
                        may require.
                          [(iii) Agreements to serve.--Each 
                        application submitted under clause (ii) 
                        shall contain or be accompanied by an 
                        agreement that the applicant will--
                                  [(I) serve as a full-time 
                                teacher for a total of not less 
                                than three academic years 
                                immediately after successfully 
                                completing the teaching 
                                residency program;
                                  [(II) fulfill the requirement 
                                under subclause (I) by teaching 
                                in a high-need school served by 
                                the high-need local educational 
                                agency in the eligible 
                                partnership and teach a subject 
                                or area that is designated as 
                                high need by the partnership;
                                  [(III) provide to the 
                                eligible partnership a 
                                certificate, from the chief 
                                administrative officer of the 
                                local educational agency in 
                                which the resident is employed, 
                                of the employment required in 
                                subclauses (I) and (II) at the 
                                beginning of, and upon 
                                completion of, each year or 
                                partial year of service;
                                  [(IV) meet the applicable 
                                State certification and 
                                licensure requirements, 
                                including any requirements for 
                                certification obtained through 
                                alternative routes to 
                                certification, or, with regard 
                                to special education teachers, 
                                the qualifications described in 
                                section 612(a)(14)(C) of the 
                                Individuals with Disabilities 
                                Education Act, when the 
                                applicant begins to fulfill the 
                                service obligation under this 
                                clause; and
                                  [(IV) meet the requirements 
                                to be a highly qualified 
                                teacher, as defined in section 
                                9101 of the Elementary and 
                                Secondary Education Act of 
                                1965, or section 602 of the 
                                Individuals with Disabilities 
                                Education Act, when the 
                                applicant begins to fulfill the 
                                service obligation under this 
                                clause; and
                                  [(V) comply with the 
                                requirements set by the 
                                eligible partnership under 
                                clause (iv) if the applicant is 
                                unable or unwilling to complete 
                                the service obligation required 
                                by this clause.
                          [(iv) Repayments.--
                                  [(I) In general.--A grantee 
                                carrying out a teaching 
                                residency program under this 
                                paragraph shall require a 
                                recipient of a stipend or 
                                salary under clause (i) who 
                                does not complete, or who 
                                notifies the partnership that 
                                the recipient intends not to 
                                complete, the service 
                                obligation required byclause 
                                (iii)to repay such stipend or 
                                salary to the eligible 
                                partnership, together with 
                                interest, at a rate specified 
                                by the partnership in the 
                                agreement, and in accordance 
                                with such other terms and 
                                conditions specified by the 
                                eligible partnership, as 
                                necessary.
                                  [(II) Other terms and 
                                conditions.--Any other terms 
                                and conditions specified by the 
                                eligible partnership may 
                                include reasonable provisions 
                                for pro-rata repayment of the 
                                stipend or salary described in 
                                clause (i) or for deferral of a 
                                teaching resident's service 
                                obligation required byclause 
                                (iii),on grounds of health, 
                                incapacitation, inability to 
                                secure employment in a school 
                                served by the eligible 
                                partnership, being called to 
                                active duty in the Armed Forces 
                                of the United States, or other 
                                extraordinary circumstances.
                                  [(III) Use of repayments.--An 
                                eligible partnership shall use 
                                any repayment received under 
                                this clause to carry out 
                                additional activities that are 
                                consistent with the purposes of 
                                this subsection.
  [(f) Partnership Grants for the Development of Leadership 
Programs.--
          [(1) In general.--An eligible partnership that 
        receives a grant under this section may carry out an 
        effective school leadership program, which may be 
        carried out in partnership with a local educational 
        agency located in a rural area and that shall include 
        all of the following activities:
                  [(A) Preparing individuals enrolled or 
                preparing to enroll in school leadership 
                programs for careers as superintendents, 
                principals, early childhood education program 
                directors, or other school leaders (including 
                individuals preparing to work in local 
                educational agencies located in rural areas who 
                may perform multiple duties in addition to the 
                role of a school leader).
                  [(B) Promoting strong leadership skills and, 
                as applicable, techniques for school leaders to 
                effectively--
                          [(i) create and maintain a data-
                        driven, professional learning community 
                        within the leader's school;
                          [(ii) provide a climate conducive to 
                        the professional development of 
                        teachers, with a focus on improving 
                        student academic achievement and the 
                        development of effective instructional 
                        leadership skills;
                          [(iii) understand the teaching and 
                        assessment skills needed to support 
                        successful classroom instruction and to 
                        use data to evaluate teacher 
                        instruction and drive teacher and 
                        student learning;
                          [(iv) manage resources and school 
                        time to improve student academic 
                        achievement and ensure the school 
                        environment is safe;
                          [(v) engage and involve parents, 
                        community members, the local 
                        educational agency, businesses, and 
                        other community leaders, to leverage 
                        additional resources to improve student 
                        academic achievement; and
                          [(vi) understand how students learn 
                        and develop in order to increase 
                        academic achievement for all students.
                  [(C) Ensuring that individuals who 
                participate in the school leadership program 
                receive--
                          [(i) effective preservice preparation 
                        as described in subparagraph (D);
                          [(ii) mentoring; and
                          [(iii) if applicable, full State 
                        certification or licensure to become a 
                        school leader.
                  [(D) Developing and improving a sustained and 
                high-quality preservice clinical education 
                program to further develop the leadership 
                skills of all prospective school leaders 
                involved in the program. Such clinical 
                education program shall do the following:
                          [(i) Incorporate year-long 
                        opportunities for enrichment, 
                        including--
                                  [(I) clinical learning in 
                                high-need schools served by the 
                                high-need local educational 
                                agency or a local educational 
                                agency located in a rural area 
                                in the eligible partnership and 
                                identified by the eligible 
                                partnership; and
                                  [(II) closely supervised 
                                interaction between prospective 
                                school leaders and faculty, new 
                                and experienced teachers, and 
                                new and experienced school 
                                leaders, in such high-need 
                                schools.
                          [(ii) Integrate pedagogy and practice 
                        and promote effective leadership 
                        skills, meeting the unique needs of 
                        urban, rural, or geographically 
                        isolated communities, as applicable.
                          [(iii) Provide for mentoring of new 
                        school leaders.
                  [(E) Creating an induction program for new 
                school leaders.
                  [(F) Developing and implementing effective 
                mechanisms to ensure that the eligible 
                partnership is able to recruit qualified 
                individuals to become school leaders through 
                the activities of the eligible partnership, 
                which may include an emphasis on recruiting 
                into school leadership professions--
                          [(i) individuals from 
                        underrepresented populations;
                          [(ii) individuals to serve as 
                        superintendents, principals, or other 
                        school administrators in rural and 
                        geographically isolated communities and 
                        school leader shortage areas; and
                          [(iii) mid-career professionals from 
                        other occupations, former military 
                        personnel, and recent college graduates 
                        with a record of academic distinction.
          [(2) Selection of individuals for the leadership 
        program.--In order to be eligible for the school 
        leadership program under this subsection, an individual 
        shall be enrolled in or preparing to enroll in an 
        institution of higher education, and shall--
                  [(A) be a--
                          [(i) recent graduate of an 
                        institution of higher education;
                          [(ii) mid-career professional from 
                        outside the field of education with 
                        strong content knowledge or a record of 
                        professional accomplishment;
                          [(iii) current teacher who is 
                        interested in becoming a school leader; 
                        or
                          [(iv) school leader who is interested 
                        in becoming a superintendent; and
                  [(B) submit an application to the leadership 
                program.
  [(g) Partnership with Digital Education Content Developer.--
An eligible partnership that receives a grant under this 
section may use grant funds provided to carry out the 
activities described in subsection (d) or (e), or both, to 
partner with a television public broadcast station, as defined 
in section 397(6) of the Communications Act of 1934 (47 U.S.C. 
397(6)), or another entity that develops digital educational 
content, for the purpose of improving the quality of pre-
baccalaureate teacher preparation programs or to enhance the 
quality of preservice training for prospective teachers.
  [(h) Evaluation and Reporting.--The Secretary shall--
          [(1) evaluate the programs assisted under this 
        section; and
          [(2) make publicly available a report detailing the 
        Secretary's evaluation of each such program.
  [(i) Consultation.--
          [(1) In general.--Members of an eligible partnership 
        that receives a grant under this section shall engage 
        in regular consultation throughout the development and 
        implementation of programs and activities carried out 
        under this section.
          [(2) Regular communication.--To ensure timely and 
        meaningful consultation as described in paragraph (1), 
        regular communication shall occur among all members of 
        the eligible partnership, including the high-need local 
        educational agency. Such communication shall continue 
        throughout the implementation of the grant and the 
        assessment of programs and activities under this 
        section.
          [(3) Written consent.--The Secretary may approve 
        changes in grant activities of a grant under this 
        section only if the eligible partnership submits to the 
        Secretary a written consent to such changes signed by 
        all members of the eligible partnership.
  [(j) Construction.--Nothing in this section shall be 
construed to prohibit an eligible partnership from using grant 
funds to coordinate with the activities of eligible 
partnerships in other States or on a regional basis through 
Governors, State boards of education, State educational 
agencies, State agencies responsible for early childhood 
education, local educational agencies, or State agencies for 
higher education.
  [(k) Supplement, Not Supplant.--Funds made available under 
this section shall be used to supplement, and not supplant, 
other Federal, State, and local funds that would otherwise be 
expended to carry out activities under this section.

[SEC. 203. ADMINISTRATIVE PROVISIONS.

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

[SEC. 204. ACCOUNTABILITY AND EVALUATION.

  [(a) Eligible Partnership Evaluation.--Each eligible 
partnership submitting an application for a grant under this 
part shall establish, and include in such application, an 
evaluation plan that includes strong and measurable performance 
objectives. The plan shall include objectives and measures for 
increasing--
          [(1) achievement for all prospective and new 
        teachers, as measured by the eligible partnership;
          [(2) teacher retention in the first three years of a 
        teacher's career;
          [(3) improvement in the pass rates and scaled scores 
        for initial State certification or licensure of 
        teachers; and
          [(4)(A) the percentage of teachers who meet 
        theapplicable State certification and licensure 
        requirements, including any requirements for 
        certification obtained throughalternative routes to 
        certification, or, with regard to specialeducation 
        teachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)), 
        hired by the high-need local educational agency 
        participating in the eligible partnership;
          [(B) the percentage of teachers who meet 
        theapplicable State certification and licensure 
        requirements, including any requirements for 
        certification obtained throughalternative routes to 
        certification, or, with regard to specialeducation ers, 
        the qualifications described in section612(a)(14)(C) of 
        the Individuals with Disabilities Education Act(20 
        U.S.C. 1412(a)(14)(C)), hired by the high-need local 
        educational agency who are members of underrepresented 
        groups;
          [(C) the percentage of teachers who meet 
        theapplicable State certification and licensure 
        requirements, including any requirements for 
        certification obtained throughalternative routes to 
        certification, or, with regard to specialeducation 
        teachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)), 
        hired by the high-need local educational agency who 
        teach high-need academic subject areas (such as 
        reading, mathematics, science, and foreign language, 
        including less commonly taught languages and critical 
        foreign languages);
          [(D) the percentage of teachers who meet 
        theapplicable State certification and licensure 
        requirements, including any requirements for 
        certification obtained throughalternative routes to 
        certification, or, with regard to specialeducation 
        teachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)), 
        hired by the high-need local educational agency who 
        teach in high-need areas (including special education, 
        language instruction educational programs for limited 
        English proficient students, and early childhood 
        education);
          [(E) the percentage of teachers who meet 
        theapplicable State certification and licensure 
        requirements, including any requirements for 
        certification obtained throughalternative routes to 
        certification, or, with regard to specialeducation 
        teachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities Education Act(20 U.S.C. 1412(a)(14)(C)), 
        hired by the high-need local educational agency who 
        teach in high-need schools, disaggregated by the 
        elementary school and secondary school levels;
          [(F) as applicable, the percentage of early childhood 
        education program classes in the geographic area served 
        by the eligible partnership taught by early childhood 
        educators who are highly competent; and
          [(G) as applicable, the percentage of teachers 
        trained--
                  [(i) to integrate technology effectively into 
                curricula and instruction, including technology 
                consistent with the principles of universal 
                design for learning; and
                  [(ii) to use technology effectively to 
                collect, manage, and analyze data to improve 
                teaching and learning for the purpose of 
                improving student academic achievement.
  [(b) Information.--An eligible partnership receiving a grant 
under this part shall ensure that teachers, principals, school 
superintendents, faculty, and leadership at institutions of 
higher education located in the geographic areas served by the 
eligible partnership are provided information, including 
through electronic means, about the activities carried out with 
funds under this part.
  [(c) Revised Application.--If the Secretary determines that 
an eligible partnership receiving a grant under this part is 
not making substantial progress in meeting the purposes, goals, 
objectives, and measures of the grant, as appropriate, by the 
end of the third year of a grant under this part, then the 
Secretary--
          [(1) shall cancel the grant; and
          [(2) may use any funds returned or available because 
        of such cancellation under paragraph (1) to--
                  [(A) increase other grant awards under this 
                part; or
                  [(B) award new grants to other eligible 
                partnerships under this part.
  [(d) Evaluation and Dissemination.--The Secretary shall 
evaluate the activities funded under this part and report the 
findings regarding the evaluation of such activities to the 
authorizing committees. The Secretary shall broadly 
disseminate--
          [(1) successful practices developed by eligible 
        partnerships under this part; and
          [(2) information regarding such practices that were 
        found to be ineffective.

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

  [(a) Institutional and Program Report Cards on the Quality of 
Teacher Preparation.--
          [(1) Report card.--Each institution of higher 
        education that conducts a traditional teacher 
        preparation program or alternative routes to State 
        certification or licensure program and that enrolls 
        students receiving Federal assistance under this Act 
        shall report annually to the State and the general 
        public, in a uniform and comprehensible manner that 
        conforms with the definitions and methods established 
        by the Secretary, the following:
                  [(A) Goals and assurances.--
                          [(i) For the most recent year for 
                        which the information is available for 
                        the institution--
                                  [(I) whether the goals set 
                                under section 206 have been 
                                met; and
                                  [(II) a description of the 
                                activities the institution 
                                implemented to achieve such 
                                goals.
                          [(ii) A description of the steps the 
                        institution is taking to improve its 
                        performance in meeting the annual goals 
                        set under section 206.
                          [(iii) A description of the 
                        activities the institution has 
                        implemented to meet the assurances 
                        provided under section 206.
                  [(B) Pass rates and scaled scores.--For the 
                most recent year for which the information is 
                available for those students who took the 
                assessments used for teacher certification or 
                licensure by the State in which the program is 
                located and are enrolled in the traditional 
                teacher preparation program or alternative 
                routes to State certification or licensure 
                program, and for those who have taken such 
                assessments and have completed the traditional 
                teacher preparation program or alternative 
                routes to State certification or licensure 
                program during the two-year period preceding 
                such year, for each of such assessments--
                          [(i) the percentage of students who 
                        have completed 100 percent of the 
                        nonclinical coursework and taken the 
                        assessment who pass such assessment;
                          [(ii) the percentage of all students 
                        who passed such assessment;
                          [(iii) the percentage of students who 
                        have taken such assessment who enrolled 
                        in and completed the traditional 
                        teacher preparation program or 
                        alternative routes to State 
                        certification or licensure program, as 
                        applicable;
                          [(iv) the average scaled score for 
                        all students who took such assessment;
                          [(v) a comparison of the program's 
                        pass rates with the average pass rates 
                        for programs in the State; and
                          [(vi) a comparison of the program's 
                        average scaled scores with the average 
                        scaled scores for programs in the 
                        State.
                  [(C) Program information.--A description of--
                          [(i) the criteria for admission into 
                        the program;
                          [(ii) the number of students in the 
                        program (disaggregated by race, 
                        ethnicity, and gender);
                          [(iii) the average number of hours of 
                        supervised clinical experience required 
                        for those in the program;
                          [(iv) the number of full-time 
                        equivalent faculty and students in the 
                        supervised clinical experience; and
                          [(v) the total number of students who 
                        have been certified or licensed as 
                        teachers, disaggregated by subject and 
                        area of certification or licensure.
                  [(D) Statement.--In States that require 
                approval or accreditation of teacher 
                preparation programs, a statement of whether 
                the institution's program is so approved or 
                accredited, and by whom.
                  [(E) Designation as low-performing.--Whether 
                the program has been designated as low-
                performing by the State under section 207(a).
                  [(F) Use of technology.--A description of the 
                activities, including activities consistent 
                with the principles of universal design for 
                learning, that prepare teachers to integrate 
                technology effectively into curricula and 
                instruction, and to use technology effectively 
                to collect, manage, and analyze data in order 
                to improve teaching and learning for the 
                purpose of increasing student academic 
                achievement.
                  [(G) Teacher training.--A description of the 
                activities that prepare general education and 
                special education teachers to teach students 
                with disabilities effectively, including 
                training related to participation as a member 
                of individualized education program teams, as 
                defined in section 614(d)(1)(B) of the 
                Individuals with Disabilities Education Act, 
                and to effectively teach students who are 
                limited English proficient.
          [(2) Report.--Each eligible partnership receiving a 
        grant under section 202 shall report annually on the 
        progress of the eligible partnership toward meeting the 
        purposes of this part and the objectives and measures 
        described in section 204(a).
          [(3) Fines.--The Secretary may impose a fine not to 
        exceed $27,500 on an institution of higher education 
        for failure to provide the information described in 
        this subsection in a timely or accurate manner.
          [(4) Special rule.--In the case of an institution of 
        higher education that conducts a traditional teacher 
        preparation program or alternative routes to State 
        certification or licensure program and has fewer than 
        10 scores reported on any single initial teacher 
        certification or licensure assessment during an 
        academic year, the institution shall collect and 
        publish information, as required under paragraph 
        (1)(B), with respect to an average pass rate and scaled 
        score on each State certification or licensure 
        assessment taken over a three-year period.
  [(b) State Report Card on the Quality of Teacher 
Preparation.--
          [(1) In general.--Each State that receives funds 
        under this Act shall provide to the Secretary, and make 
        widely available to the general public, in a uniform 
        and comprehensible manner that conforms with the 
        definitions and methods established by the Secretary, 
        an annual State report card on the quality of teacher 
        preparation in the State, both for traditional teacher 
        preparation programs and for alternative routes to 
        State certification or licensure programs, which shall 
        include not less than the following:
                  [(A) A description of the reliability and 
                validity of the teacher certification and 
                licensure assessments, and any other 
                certification and licensure requirements, used 
                by the State.
                  [(B) The standards and criteria that 
                prospective teachers must meet to attain 
                initial teacher certification or licensure and 
                to be certified or licensed to teach particular 
                academic subjects, areas, or grades within the 
                State.
                  [(C) A description of how the assessments and 
                requirements described in subparagraph (A) are 
                aligned with the challenging State academic 
                standards required under section 1111(b)(1) of 
                the Elementary and Secondary Education Act of 
                1965 and, as applicable, State early learning 
                standards for early childhood education 
                programs.
                  [(D) For each of the assessments used by the 
                State for teacher certification or licensure--
                          [(i) for each institution of higher 
                        education located in the State and each 
                        entity located in the State, including 
                        those that offer an alternative route 
                        for teacher certification or licensure, 
                        the percentage of students at such 
                        institution or entity who have 
                        completed 100 percent of the 
                        nonclinical coursework and taken the 
                        assessment who pass such assessment;
                          [(ii) the percentage of all such 
                        students at all such institutions and 
                        entities who have taken the assessment 
                        who pass such assessment;
                          [(iii) the percentage of students who 
                        have taken the assessment who enrolled 
                        in and completed a teacher preparation 
                        program; and
                          [(iv) the average scaled score of 
                        individuals participating in such a 
                        program, or who have completed such a 
                        program during the two-year period 
                        preceding the first year for which the 
                        annual State report card is provided, 
                        who took each such assessment.
                  [(E) A description of alternative routes to 
                teacher certification or licensure in the State 
                (including any such routes operated by entities 
                that are not institutions of higher education), 
                if any, including, for each of the assessments 
                used by the State for teacher certification or 
                licensure--
                          [(i) the percentage of individuals 
                        participating in such routes, or who 
                        have completed such routes during the 
                        two-year period preceding the date for 
                        which the determination is made, who 
                        passed each such assessment; and
                          [(ii) the average scaled score of 
                        individuals participating in such 
                        routes, or who have completed such 
                        routes during the two-year period 
                        preceding the first year for which the 
                        annual State report card is provided, 
                        who took each such assessment.
                  [(F) A description of the State's criteria 
                for assessing the performance of teacher 
                preparation programs within institutions of 
                higher education in the State. Such criteria 
                shall include indicators of the academic 
                content knowledge and teaching skills of 
                students enrolled in such programs.
                  [(G) For each teacher preparation program in 
                the State--
                          [(i) the criteria for admission into 
                        the program;
                          [(ii) the number of students in the 
                        program, disaggregated by race, 
                        ethnicity, and gender (except that such 
                        disaggregation shall not be required in 
                        a case in which the number of students 
                        in a category is insufficient to yield 
                        statistically reliable information or 
                        the results would reveal personally 
                        identifiable information about an 
                        individual student);
                          [(iii) the average number of hours of 
                        supervised clinical experience required 
                        for those in the program; and
                          [(iv) the number of full-time 
                        equivalent faculty, adjunct faculty, 
                        and students in supervised clinical 
                        experience.
                  [(H) For the State as a whole, and for each 
                teacher preparation program in the State, the 
                number of teachers prepared, in the aggregate 
                and reported separately by--
                          [(i) area of certification or 
                        licensure;
                          [(ii) academic major; and
                          [(iii) subject area for which the 
                        teacher has been prepared to teach.
                  [(I) A description of the extent to which 
                teacher preparation programs are addressing 
                shortages of teachers who meet the applicable 
                Statecertification and licensure requirements, 
                including any requirementsfor certification 
                obtained through alternative routes 
                tocertification, or, with regard to special 
                education teachers, thequalifications described 
                in section 612(a)(14)(C) of the Individualswith 
                Disabilities Education Act, by area of 
                certification or licensure, subject, and 
                specialty, in the State's public schools.
                  [(J) The extent to which teacher preparation 
                programs prepare teachers, including general 
                education and special education teachers, to 
                teach students with disabilities effectively, 
                including training related to participation as 
                a member of individualized education program 
                teams, as defined in section 614(d)(1)(B) of 
                the Individuals with Disabilities Education 
                Act.
                  [(K) A description of the activities that 
                prepare teachers to--
                          [(i) integrate technology effectively 
                        into curricula and instruction, 
                        including activities consistent with 
                        the principles of universal design for 
                        learning; and
                          [(ii) use technology effectively to 
                        collect, manage, and analyze data to 
                        improve teaching and learning for the 
                        purpose of increasing student academic 
                        achievement.
                  [(L) The extent to which teacher preparation 
                programs prepare teachers, including general 
                education and special education teachers, to 
                effectively teach students who are limited 
                English proficient.
          [(2) Prohibition against creating a national list.--
        The Secretary shall not create a national list or 
        ranking of States, institutions, or schools using the 
        scaled scores provided under this subsection.
  [(c) Data Quality.--The Secretary shall prescribe regulations 
to ensure the reliability, validity, integrity, and accuracy of 
the data submitted pursuant to this section.
  [(d) Report of the Secretary on the Quality of Teacher 
Preparation.--
          [(1) Report card.--The Secretary shall annually 
        provide to the authorizing committees, and publish and 
        make widely available, a report card on teacher 
        qualifications and preparation in the United States, 
        including all the information reported in subparagraphs 
        (A) through (L) of subsection (b)(1). Such report shall 
        identify States for which eligible partnerships 
        received a grant under this part.
          [(2) Report to congress.--The Secretary shall prepare 
        and submit a report to the authorizing committees that 
        contains the following:
                  [(A) A comparison of States' efforts to 
                improve the quality of the current and future 
                teaching force.
                  [(B) A comparison of eligible partnerships' 
                efforts to improve the quality of the current 
                and future teaching force.
                  [(C) The national mean and median scaled 
                scores and pass rate on any standardized test 
                that is used in more than one State for teacher 
                certification or licensure.
          [(3) Special rule.--In the case of a teacher 
        preparation program with fewer than ten scores reported 
        on any single initial teacher certification or 
        licensure assessment during an academic year, the 
        Secretary shall collect and publish, and make publicly 
        available, information with respect to an average pass 
        rate and scaled score on each State certification or 
        licensure assessment taken over a three-year period.
  [(e) Coordination.--The Secretary, to the extent practicable, 
shall coordinate the information collected and published under 
this part among States for individuals who took State teacher 
certification or licensure assessments in a State other than 
the State in which the individual received the individual's 
most recent degree.

[SEC. 206. TEACHER DEVELOPMENT.

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

[SEC. 207. STATE FUNCTIONS.

  [(a) State Assessment.--In order to receive funds under this 
Act, a State shall conduct an assessment to identify low-
performing teacher preparation programs in the State and to 
assist such programs through the provision of technical 
assistance. Each such State shall provide the Secretary with an 
annual list of low-performing teacher preparation programs and 
an identification of those programs at risk of being placed on 
such list, as applicable. Such assessment shall be described in 
the report under section 205(b). Levels of performance shall be 
determined solely by the State and may include criteria based 
on information collected pursuant to this part, including 
progress in meeting the goals of--
          [(1) increasing the percentage of teachers who meet 
        the applicable Statecertification and licensure 
        requirements, including any requirementsfor 
        certification obtained through alternative routes 
        tocertification, or, with regard to special education 
        teachers, thequalifications described in section 
        612(a)(14)(C) of the Individualswith Disabilities 
        Education Act, in the State, including increasing 
        professional development opportunities;
          [(2) improving student academic achievement for 
        elementary and secondary students; and
          [(3) raising the standards for entry into the 
        teaching profession.
  [(b) Termination of Eligibility.--Any teacher preparation 
program from which the State has withdrawn the State's 
approval, or terminated the State's financial support, due to 
the low performance of the program based upon the State 
assessment described in subsection (a)--
          [(1) shall be ineligible for any funding for 
        professional development activities awarded by the 
        Department;
          [(2) may not be permitted to accept or enroll any 
        student who receives aid under title IV in the 
        institution's teacher preparation program;
          [(3) shall provide transitional support, including 
        remedial services if necessary, for students enrolled 
        at the institution at the time of termination of 
        financial support or withdrawal of approval; and
          [(4) shall be reinstated upon demonstration of 
        improved performance, as determined by the State.
  [(c) Negotiated Rulemaking.--If the Secretary develops any 
regulations implementing subsection (b)(2), the Secretary shall 
submit such proposed regulations to a negotiated rulemaking 
process, which shall include representatives of States, 
institutions of higher education, and educational and student 
organizations.
  [(d) Application of the Requirements.--The requirements of 
this section shall apply to both traditional teacher 
preparation programs and alternative routes to State 
certification and licensure programs.

[SEC. 208. GENERAL PROVISIONS.

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

[SEC. 209. AUTHORIZATION OF APPROPRIATIONS.

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

                  [PART B--ENHANCING TEACHER EDUCATION

[SEC. 230. AUTHORIZATION OF APPROPRIATIONS.

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

        [Subpart 1--Preparing Teachers for Digital Age Learners

[SEC. 231. PROGRAM AUTHORIZED.

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

[SEC. 232. USES OF FUNDS.

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

[SEC. 233. APPLICATION REQUIREMENTS.

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

[SEC. 234. EVALUATION.

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

    [Subpart 2--Honorable Augustus F. Hawkins Centers of Excellence

[SEC. 241. DEFINITIONS.

   [In this subpart:
          [(1) Eligible institution.--The term ``eligible 
        institution'' means--
                  [(A) an institution of higher education that 
                has a teacher preparation program that is a 
                qualified teacher preparation program and that 
                is--
                          [(i) a part B institution (as defined 
                        in section 322);
                          [(ii) a Hispanic-serving institution 
                        (as defined in section 502);
                          [(iii) a Tribal College or University 
                        (as defined in section 316);
                          [(iv) an Alaska Native-serving 
                        institution (as defined in section 
                        317(b));
                          [(v) a Native Hawaiian-serving 
                        institution (as defined in section 
                        317(b));
                          [(vi) a Predominantly Black 
                        Institution (as defined in section 
                        318);
                          [(vii) an Asian American and Native 
                        American Pacific Islander-serving 
                        institution (as defined in section 
                        320(b)); or
                          [(viii) a Native American-serving, 
                        nontribal institution (as defined in 
                        section 319);
                  [(B) a consortium of institutions described 
                in subparagraph (A); or
                  [(C) an institution described in subparagraph 
                (A), or a consortium described in subparagraph 
                (B), in partnership with any other institution 
                of higher education, but only if the center of 
                excellence established under section 242 is 
                located at an institution described in 
                subparagraph (A).
          [(2) Scientifically based reading research.--The term 
        ``scientifically based reading research''--
                  [(A) means research that applies rigorous, 
                systemic, and objective procedures to obtain 
                valid knowledge relevant to reading 
                development, reading instruction, and reading 
                difficulties; and
                  [(B) includes research that--
                          [(i) employs systemic, empirical 
                        methods that draw on observation or 
                        experiment;
                          [(ii) involves rigorous data analyses 
                        that are adequate to test the stated 
                        hypotheses and justify the general 
                        conclusions drawn;
                          [(iii) relies on measurements or 
                        observational methods that provide 
                        valid data across evaluators and 
                        observers and across multiple 
                        measurements and observations; and
                          [(iv) has been accepted by a peer-
                        reviewed journal or approved by a panel 
                        of independent experts through a 
                        comparably rigorous, objective, and 
                        scientific review.

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

  [(a) Program Authorized.--From the amounts appropriated to 
carry out this part, the Secretary is authorized to award 
competitive grants to eligible institutions to establish 
centers of excellence.
  [(b) Use of Funds.--Grants provided by the Secretary under 
this subpart shall be used to ensure that current and future 
teachers meet the applicableState certification and licensure 
requirements, includingany requirements for certification 
obtained through alternativeroutes to certification, or, with 
regard to specialeducation teachers, the qualifications 
described in section612(a)(14)(C) of the Individuals with 
Disabilities EducationAct, 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 meet the applicable State certification 
        andlicensure requirements, including any requirements 
        for certificationobtained through alternative routes to 
        certification,or, with regard to special education 
        teachers, thequalifications described in section 
        612(a)(14)(C) of theIndividuals with Disabilities 
        Education Act, are able to understand scientifically 
        valid research, and are able to use advanced technology 
        effectively in the classroom, including use of 
        instructional techniques to improve student academic 
        achievement, by--
                  [(A) retraining or recruiting faculty; and
                  [(B) designing (or redesigning) teacher 
                preparation programs that--
                          [(i) prepare teachers to serve in 
                        low-performing schools and close 
                        student achievement gaps, and that are 
                        based on rigorous academic content, 
                        scientifically valid research 
                        (including scientifically based reading 
                        research and mathematics research, as 
                        it becomes available), and challenging 
                        State academic content standards and 
                        student academic achievement standards; 
                        and
                          [(ii) promote strong teaching skills.
          [(2) Providing sustained and high-quality preservice 
        clinical experience, including the mentoring of 
        prospective teachers by exemplary teachers, 
        substantially increasing interaction between faculty at 
        institutions of higher education and new and 
        experienced teachers, principals, and other 
        administrators at elementary schools or secondary 
        schools, and providing support, including preparation 
        time, for such interaction.
          [(3) Developing and implementing initiatives to 
        promote retention of teachers who meetthe applicable 
        State certification and licensure 
        requirements,including any requirements for 
        certificationobtained through alternative routes to 
        certification, or, withregard to special education 
        teachers, the qualificationsdescribed in section 
        612(a)(14)(C) of the Individuals withDisabilities 
        Education Act, and highly qualified principals, 
        including minority teachers and principals, including 
        programs that provide--
                  [(A) teacher or principal mentoring from 
                exemplary teachers or principals, respectively; 
                or
                  [(B) induction and support for teachers and 
                principals during their first three years of 
                employment as teachers or principals, 
                respectively.
          [(4) Awarding scholarships based on financial need to 
        help students pay the costs of tuition, room, board, 
        and other expenses of completing a teacher preparation 
        program, not to exceed the cost of attendance.
          [(5) Disseminating information on effective practices 
        for teacher preparation and successful teacher 
        certification and licensure assessment preparation 
        strategies.
          [(6) Activities authorized under section 202.
  [(c) Application.--Any eligible institution desiring a grant 
under this subpart shall submit an application to the Secretary 
at such a time, in such a manner, and accompanied by such 
information as the Secretary may require.
  [(d) Minimum Grant Amount.--The minimum amount of each grant 
under this subpart shall be $500,000.
  [(e) Limitation on Administrative Expenses.--An eligible 
institution that receives a grant under this subpart may use 
not more than two percent of the funds provided to administer 
the grant.
  [(f) Regulations.--The Secretary shall prescribe such 
regulations as may be necessary to carry out this subpart.

 [Subpart 3--Preparing General Education Teachers to More Effectively 
                   Educate Students with Disabilities

[SEC. 251. TEACH TO REACH GRANTS.

  [(a) Authorization of Program.--
          [(1) In general.--The Secretary is authorized to 
        award grants, on a competitive basis, to eligible 
        partnerships to improve the preparation of general 
        education teacher candidates to ensure that such 
        teacher candidates possess the knowledge and skills 
        necessary to effectively instruct students with 
        disabilities in general education classrooms.
          [(2) Duration of grants.--A grant under this section 
        shall be awarded for a period of not more than five 
        years.
          [(3) Non-federal share.--An eligible partnership that 
        receives a grant under this section shall provide not 
        less than 25 percent of the cost of the activities 
        carried out with such grant from non-Federal sources, 
        which may be provided in cash or in kind.
  [(b) Definition of Eligible Partnership.--In this section, 
the term ``eligible partnership'' means a partnership that--
          [(1) shall include--
                  [(A) one or more departments or programs at 
                an institution of higher education--
                          [(i) that prepare elementary or 
                        secondary general education teachers;
                          [(ii) that have a program of study 
                        that leads to an undergraduate degree, 
                        a master's degree, or completion of a 
                        postbaccalaureate program required for 
                        teacher certification; and
                          [(iii) the graduates of which meet 
                        the applicable State certification and 
                        licensure requirements, including any 
                        requirements for certificationobtained 
                        through alternative routes to 
                        certification, or,with regard to 
                        special education teachers, the 
                        qualificationsdescribed in section 
                        612(a)(14)(C) of the Individuals 
                        withDisabilities Education Act;
                  [(B) a department or program of special 
                education at an institution of higher 
                education;
                  [(C) a department or program at an 
                institution of higher education that provides 
                degrees in core academic subjects; and
                  [(D) a high-need local educational agency; 
                and
          [(2) may include a department or program of 
        mathematics, earth or physical science, foreign 
        language, or another department at the institution that 
        has a role in preparing teachers.
  [(c) Activities.--An eligible partnership that receives a 
grant under this section--
          [(1) shall use the grant funds to--
                  [(A) develop or strengthen an undergraduate, 
                postbaccalaureate, or master's teacher 
                preparation program by integrating special 
                education strategies into the general education 
                curriculum and academic content;
                  [(B) provide teacher candidates participating 
                in the program under subparagraph (A) with 
                skills related to--
                          [(i) response to intervention, 
                        positive behavioral interventions and 
                        supports, differentiated instruction, 
                        and data driven instruction;
                          [(ii) universal design for learning;
                          [(iii) determining and utilizing 
                        accommodations for instruction and 
                        assessments;
                          [(iv) collaborating with special 
                        educators, related services providers, 
                        and parents, including participation in 
                        individualized education program 
                        development and implementation; and
                          [(v) appropriately utilizing 
                        technology and assistive technology for 
                        students with disabilities; and
                  [(C) provide extensive clinical experience 
                for participants described in subparagraph (B) 
                with mentoring and induction support throughout 
                the program that continues during the first two 
                years of full-time teaching; and
          [(2) may use grant funds to develop and administer 
        alternate assessments of students with disabilities.
  [(d) Application.--An eligible partnership seeking a grant 
under this section shall submit an application to the Secretary 
at such time, in such manner, and containing such information 
as the Secretary may require. Such application shall include--
          [(1) a self-assessment by the eligible partnership of 
        the existing teacher preparation program at the 
        institution of higher education and needs related to 
        preparing general education teacher candidates to 
        instruct students with disabilities; and
          [(2) an assessment of the existing personnel needs 
        for general education teachers who instruct students 
        with disabilities, performed by the local educational 
        agency in which most graduates of the teacher 
        preparation program are likely to teach after 
        completion of the program under subsection (c)(1).
  [(e) Peer Review.--The Secretary shall convene a peer review 
committee to review applications for grants under this section 
and to make recommendations to the Secretary regarding the 
selection of grantees. Members of the peer review committee 
shall be recognized experts in the fields of special education, 
teacher preparation, and general education and shall not be in 
a position to benefit financially from any grants awarded under 
this section.
  [(f) Evaluations.--
          [(1) By the partnership.--
                  [(A) In general.--An eligible partnership 
                receiving a grant under this section shall 
                conduct an evaluation at the end of the grant 
                period to determine--
                          [(i) the effectiveness of the general 
                        education teachers who completed a 
                        program under subsection (c)(1) with 
                        respect to instruction of students with 
                        disabilities in general education 
                        classrooms; and
                          [(ii) the systemic impact of the 
                        activities carried out by such grant on 
                        how each institution of higher 
                        education that is a member of the 
                        partnership prepares teachers for 
                        instruction in elementary schools and 
                        secondary schools.
                  [(B) Report to the secretary.--Each eligible 
                partnership performing an evaluation under 
                subparagraph (A) shall report the findings of 
                such evaluation to the Secretary.
          [(2) Report by the secretary.--Not later than 180 
        days after the last day of the grant period under this 
        section, the Secretary shall make available to Congress 
        and the public the findings of the evaluations 
        submitted under paragraph (1), and information on best 
        practices related to effective instruction of students 
        with disabilities in general education classrooms.

                   [Subpart 4--Adjunct Teacher Corps

[SEC. 255. ADJUNCT TEACHER CORPS.

  [(a) Purpose.--The purpose of this section is to create 
opportunities for professionals and other individuals with 
subject matter expertise in mathematics, science, or critical 
foreign languages to provide such subject matter expertise to 
secondary school students on an adjunct basis.
  [(b) Program Authorized.--The Secretary is authorized to 
award grants on a competitive basis to eligible entities to 
identify, recruit, and train qualified individuals with subject 
matter expertise in mathematics, science, or critical foreign 
languages to serve as adjunct content specialists.
  [(c) Duration of Grants.--The Secretary may award grants 
under this section for a period of not more than five years.
  [(d) Eligible Entity.--In this section, the term ``eligible 
entity'' means--
          [(1) a local educational agency; or
          [(2) a partnership consisting of a local educational 
        agency, serving as a fiscal agent, and a public or 
        private educational organization or business.
  [(e) Uses of Funds.--An eligible entity that receives a grant 
under this section is authorized to use such grant to carry out 
one or both of the following activities:
          [(1) To develop the capacity of the eligible entity 
        to identify, recruit, and train individuals with 
        subject matter expertise in mathematics, science, or 
        critical foreign languages who are not employed in the 
        elementary and secondary education system (including 
        individuals in business and government, and individuals 
        who would participate through distance-learning 
        arrangements) to become adjunct content specialists.
          [(2) To provide preservice training and on-going 
        professional development to adjunct content 
        specialists.
  [(f) Applications.--
          [(1) Application required.--An eligible entity that 
        desires a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require.
          [(2) Contents.--An application submitted under 
        paragraph (1) shall include--
                  [(A) a description of--
                          [(i) the need for, and expected 
                        benefits of using, adjunct content 
                        specialists in the schools served by 
                        the local educational agency, which may 
                        include information on the difficulty 
                        the local educational agency faces in 
                        recruiting qualified faculty in 
                        mathematics, science, and critical 
                        foreign language courses;
                          [(ii) measurable objectives for the 
                        activities supported by the grant, 
                        including the number of adjunct content 
                        specialists the eligible entity intends 
                        to place in schools and classrooms, and 
                        the gains in academic achievement 
                        expected as a result of the addition of 
                        such specialists;
                          [(iii) how the eligible entity will 
                        establish criteria for and recruit the 
                        most qualified individuals and public 
                        or private organizations and businesses 
                        to participate in the activities 
                        supported by the grant;
                          [(iv) how the eligible entity will 
                        provide preservice training and on-
                        going professional development to 
                        adjunct content specialists to ensure 
                        that such specialists have the capacity 
                        to serve effectively;
                          [(v) how the eligible entity will use 
                        funds received under this section, 
                        including how the eligible entity will 
                        evaluate the success of the activities 
                        supported by the grant; and
                          [(vi) how the eligible entity will 
                        support and continue the activities 
                        supported by the grant after the grant 
                        has expired, including how such entity 
                        will seek support from other sources, 
                        such as State and local government and 
                        the private sector; and
                  [(B) an assurance that the use of adjunct 
                content specialists will not result in the 
                displacement or transfer of currently employed 
                teachers nor a reduction in the number of 
                overall teachers in the district.
  [(g) Priorities.--In awarding grants under this section, the 
Secretary shall give priority to eligible entities that 
demonstrate in the application for such a grant a plan to--
          [(1) serve the schools served by the local 
        educational agency that have a large number or 
        percentage of students performing below grade level in 
        mathematics, science, or critical foreign language 
        courses;
          [(2) serve local educational agencies that have a 
        large number or percentage of students from low-income 
        families; and
          [(3) recruit and train individuals to serve as 
        adjunct content specialists in schools that have an 
        insufficient number of teachers in mathematics, 
        science, or critical foreign languages.
  [(h) Matching Requirement.--Each eligible entity that 
receives a grant under this section shall provide, from non-
Federal sources, an amount equal to 100 percent of the amount 
of such grant (in cash or in kind) to carry out the activities 
supported by such grant.
  [(i) Performance Report.--Each eligible entity receiving a 
grant under this section shall prepare and submit to the 
Secretary a final report on the results of the activities 
supported by such grant, which shall contain such information 
as the Secretary may require, including any improvements in 
student academic achievement as a result of the use of adjunct 
content specialists.
  [(j) Evaluation.--The Secretary shall evaluate the activities 
supported by grants under this section, including the impact of 
such activities on student academic achievement, and shall 
report the results of such evaluation to the authorizing 
committees.
  [(k) Definition.--In this section, the term ``adjunct content 
specialist'' means an individual who--
          [(1) meets the applicable State certification and 
        licensurerequirements, including any requirements for 
        certificationobtained through alternative routes to 
        certification, or, withregard to special education 
        teachers, the qualificationsdescribed in section 
        612(a)(14)(C) of the Individuals withDisabilities 
        Education Act;
          [(2) has demonstrated expertise in mathematics, 
        science, or a critical foreign language, as determined 
        by the local educational agency; and
          [(3) is not the primary provider of instructional 
        services to a student, unless the adjunct content 
        specialist is under the direct supervision of a teacher 
        who meets the applicable State certificationand 
        licensure requirements, including any requirementsfor 
        certification obtained through alternative routesto 
        certification, or, with regard to special 
        educationteachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities EducationAct.

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

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

  [(a) Grants by Secretary.--The Secretary shall make grants to 
eligible institutions to enable such institutions to make 
graduate fellowship awards to qualified individuals in 
accordance with the provisions of this section.
  [(b) Eligible Institutions.--In this section, the term 
``eligible institution'' means an institution of higher 
education, or a consortium of such institutions, that offers a 
program of postbaccalaureate study leading to a doctoral 
degree.
  [(c) Applications.--An eligible institution that desires a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information as the Secretary may reasonably require.
  [(d) Types of Fellowships Supported.--
          [(1) In general.--An eligible institution that 
        receives a grant under this section shall use the grant 
        funds to provide graduate fellowships to individuals 
        who are preparing for the professorate in order to 
        prepare individuals to become elementary school and 
        secondary school mathematics and science teachers, 
        special education teachers, and teachers who provide 
        instruction for limited English proficient students, 
        who meet the applicable State certificationand 
        licensure requirements, including any requirementsfor 
        certification obtained through alternative routesto 
        certification, or, with regard to special 
        educationteachers, the qualifications described in 
        section612(a)(14)(C) of the Individuals with 
        Disabilities EducationAct.
          [(2) Types of study.--A graduate fellowship provided 
        under this section shall support an individual in 
        pursuing postbaccalaureate study, which leads to a 
        doctoral degree and may include a master's degree as 
        part of such study, related to teacher preparation and 
        pedagogy in one of the following areas:
                  [(A) Science, technology, engineering, or 
                mathematics, if the individual has completed a 
                master's degree in mathematics or science and 
                is pursuing a doctoral degree in mathematics, 
                science, or education.
                  [(B) Special education.
                  [(C) The instruction of limited English 
                proficient students, including 
                postbaccalaureate study in language instruction 
                educational programs.
  [(e) Fellowship Terms and Conditions.--
          [(1) Selection of fellows.--The Secretary shall 
        ensure that an eligible institution that receives a 
        grant under this section--
                  [(A) shall provide graduate fellowship awards 
                to individuals who plan to pursue a career in 
                instruction at an institution of higher 
                education that has a teacher preparation 
                program; and
                  [(B) may not provide a graduate fellowship to 
                an otherwise eligible individual--
                          [(i) during periods in which such 
                        individual is enrolled at an 
                        institution of higher education unless 
                        such individual is maintaining 
                        satisfactory academic progress in, and 
                        devoting full-time study or research 
                        to, the pursuit of the degree for which 
                        the fellowship support was provided; or
                          [(ii) if the individual is engaged in 
                        gainful employment, other than part-
                        time employment related to teaching, 
                        research, or a similar activity 
                        determined by the institution to be 
                        consistent with and supportive of the 
                        individuals's progress toward the 
                        degree for which the fellowship support 
                        was provided.
          [(2) Amount of fellowship awards.--
                  [(A) In general.--An eligible institution 
                that receives a grant under this section shall 
                award stipends to individuals who are provided 
                graduate fellowships under this section.
                  [(B) Awards based on need.--A stipend 
                provided under this section shall be in an 
                amount equal to the level of support provided 
                by the National Science Foundation graduate 
                fellowships, except that such stipend shall be 
                adjusted as necessary so as not to exceed the 
                fellowship recipient's demonstrated need, as 
                determined by the institution of higher 
                education where the fellowship recipient is 
                enrolled.
          [(3) Service requirement.--
                  [(A) Teaching required.--Each individual who 
                receives a graduate fellowship under this 
                section and earns a doctoral degree shall teach 
                for one year at an institution of higher 
                education that has a teacher preparation 
                program for each year of fellowship support 
                received under this section.
                  [(B) Institutional obligation.--Each eligible 
                institution that receives a grant under this 
                section shall provide an assurance to the 
                Secretary that the institution has inquired of 
                and determined the decision of each individual 
                who has received a graduate fellowship to, 
                within three years of receiving a doctoral 
                degree, begin employment at an institution of 
                higher education that has a teacher preparation 
                program, as required by this section.
                  [(C) Agreement required.--Prior to receiving 
                an initial graduate fellowship award, and upon 
                the annual renewal of the graduate fellowship 
                award, an individual selected to receive a 
                graduate fellowship under this section shall 
                sign an agreement with the Secretary agreeing 
                to pursue a career in instruction at an 
                institution of higher education that has a 
                teacher preparation program in accordance with 
                subparagraph (A).
                  [(D) Failure to comply.--If an individual who 
                receives a graduate fellowship award under this 
                section fails to comply with the agreement 
                signed pursuant to subparagraph (C), the sum of 
                the amounts of any graduate fellowship award 
                received by such recipient shall, upon a 
                determination of such a failure, be treated as 
                a Federal Direct Unsubsidized Stafford Loan 
                under part D of title IV, and shall be subject 
                to repayment, together with interest thereon 
                accruing from the date of the fellowship award, 
                in accordance with terms and conditions 
                specified by the Secretary in regulations under 
                this subpart.
                  [(E) Modified service requirement.--The 
                Secretary may waive or modify the service 
                requirement of this paragraph in accordance 
                with regulations promulgated by the Secretary 
                with respect to the criteria to determine the 
                circumstances under which compliance with such 
                service requirement is inequitable or 
                represents a substantial hardship. The 
                Secretary may waive the service requirement if 
                compliance by the fellowship recipient is 
                determined to be inequitable or represent a 
                substantial hardship--
                          [(i) because the individual is 
                        permanently and totally disabled at the 
                        time of the waiver request; or
                          [(ii) based on documentation 
                        presented to the Secretary of 
                        substantial economic or personal 
                        hardship.
  [(f) Institutional Support for Fellows.--An eligible 
institution that receives a grant under this section may 
reserve not more than ten percent of the grant amount for 
academic and career transition support for graduate fellowship 
recipients and for meeting the institutional obligation 
described in subsection (e)(3)(B).
  [(g) Restriction on Use of Funds.--An eligible institution 
that receives a grant under this section may not use grant 
funds for general operational overhead of the institution.

                      [PART C--GENERAL PROVISIONS

[SEC. 261. LIMITATIONS.

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

        TITLE II--EXPANDING ACCESS TO IN-DEMAND APPRENTICESHIPS

SEC. 201. APPRENTICESHIP GRANT PROGRAM.

  (a) Purpose.--The purpose of this section is to expand 
student access to, and participation in, new industry-led earn-
and-learn programs leading to high-wage, high-skill, and high-
demand careers.
  (b) Authorization of Apprenticeship Grant Program.--
          (1) In general.--From the amounts authorized under 
        subsection (j), the Secretary shall award grants, on a 
        competitive basis, to eligible partnerships for the 
        purpose described in subsection (a).
          (2) Duration.--The Secretary shall award grants under 
        this section for a period of--
                  (A) not less than 1 year; and
                  (B) not more than 4 years.
          (3) Limitations.--
                  (A) Amount.--A grant awarded under this 
                section may not be in an amount greater than 
                $1,500,000.
                  (B) Number of awards.--An eligible 
                partnership or member of such partnership may 
                not be awarded more than one grant under this 
                section.
                  (C) Administration costs.--An eligible 
                partnership awarded a grant under this section 
                may not use more than 5 percent of the grant 
                funds to pay administrative costs associated 
                with activities funded by the grant.
  (c) Matching Funds.--To receive a grant under this section, 
an eligible partnership shall, through cash or in-kind 
contributions, provide matching funds from non-Federal sources 
in an amount equal to or greater than 50 percent of the amount 
of such grant.
  (d) Applications.--
          (1) In general.--To receive a grant under this 
        section, an eligible partnership shall submit to the 
        Secretary at such a time as the Secretary may require, 
        an application that--
                  (A) identifies and designates the business or 
                institution of higher education responsible for 
                the administration and supervision of the earn-
                and-learn program for which such grant funds 
                would be used;
                  (B) identifies the businesses and 
                institutions of higher education that comprise 
                the eligible partnership;
                  (C) identifies the source and amount of the 
                matching funds required under subsection (c);
                  (D) identifies the number of students who 
                will participate and complete the relevant 
                earn-and-learn program within 1 year of the 
                expiration of the grant;
                  (E) identifies the amount of time, not to 
                exceed 2 years, required for students to 
                complete the program;
                  (F) identifies the relevant recognized 
                postsecondary credential to be awarded to 
                students who complete the program;
                  (G) identifies the anticipated earnings of 
                students--
                          (i) 1 year after program completion; 
                        and
                          (ii) 3 years after program 
                        completion;
                  (H) describes the specific project for which 
                the application is submitted, including a 
                summary of the relevant classroom and paid 
                structured on-the-job training students will 
                receive;
                  (I) describes how the eligible partnership 
                will finance the program after the end of the 
                grant period;
                  (J) describes how the eligible partnership 
                will support the collection of information and 
                data for purposes of the program evaluation 
                required under subsection (h); and
                  (K) describes the alignment of the program 
                with State identified in-demand industry 
                sectors.
          (2) Application review process.--
                  (A) Review panel.--Applications submitted 
                under paragraph (1) shall be read by a panel of 
                readers composed of individuals selected by the 
                Secretary. The Secretary shall assure that an 
                individual assigned under this paragraph does 
                not have a conflict of interest with respect to 
                the applications reviewed by such individual.
                  (B) Composition of review panel.--The panel 
                of reviewers selected by the Secretary under 
                subparagraph (A) shall be comprised as follows:
                          (i) A majority of the panel shall be 
                        individuals who are representative of 
                        businesses, which may include owners, 
                        executives with optimum hiring 
                        authority, or individuals representing 
                        business organizations or business 
                        trade associations.
                          (ii) The remainder of the panel shall 
                        be equally divided between individuals 
                        who are--
                                  (I) representatives of 
                                institutions of higher 
                                education that offer programs 
                                of two years or less; and
                                  (II) representatives of State 
                                workforce development boards 
                                established under section 101 
                                of the Workforce Innovation and 
                                Opportunity Act (29 U.S.C. 
                                3111).
                  (C) Review of Applications.--The Secretary 
                shall instruct the review panel selected by the 
                Secretary under paragraph (2)(A) to evaluate 
                applications using only the criteria specified 
                in paragraph (1) and make recommendations with 
                respect to--
                          (i) the quality of the applications;
                          (ii) whether a grant should be 
                        awarded for a project under this title; 
                        and
                          (iii) the amount and duration of such 
                        grant.
                  (D) Notification.--Not later than June 30 of 
                each year, the Secretary shall notify each 
                eligible partnership submitting an application 
                under this section of--
                          (i) the scores given the applicant by 
                        the panel pursuant to this section;
                          (ii) the recommendations of the panel 
                        with respect to such application; and
                          (iii) the reasons for the decision of 
                        the Secretary in awarding or refusing 
                        to award a grant under this section; 
                        and
                          (iv) modifications, if any, in the 
                        recommendations of the panel made to 
                        the Secretary.
  (e) Award Basis.--The Secretary shall award grants under this 
section on the following basis--
          (1) the number of participants to be served by the 
        grant;
          (2) the anticipated income of program participants in 
        relation to the regional median income;
          (3) the alignment of the program with State-
        identified in-demand industry sectors; and
          (4) the recommendations of the readers under 
        subsection (d)(2)(C).
  (f) Use of Funds.--Grant funds provided under this section 
may be used for--
          (1) the purchase of appropriate equipment, 
        technology, or instructional material, aligned with 
        business and industry needs, including machinery, 
        testing equipment, hardware and software;
          (2) student books, supplies, and equipment required 
        for enrollment;
          (3) the reimbursement of up to 50 percent of the 
        wages of a student participating in an earn-and-learn 
        program receiving a grant under this section;
          (4) the development of industry-specific programing;
          (5) supporting the transition of industry-based 
        professionals from an industry setting to an academic 
        setting;
          (6) industry-recognized certification exams or other 
        assessments leading to a recognized postsecondary 
        credential associated with the earn-and-learn program; 
        and
          (7) any fees associated with the certifications or 
        assessments described in paragraph (6).
  (g) Technical Assistance.--The Secretary may provide 
technical assistance to eligible partnerships awarded under 
this section throughout the grant period for purposes of grant 
management.
  (h) Evaluation.--
          (1) In general.--From the amounts made available 
        under subsection (j), the Secretary, acting through the 
        Director of the Institute for Education Sciences, shall 
        provide for the independent evaluation of the grant 
        program established under this section that includes 
        the following:
                  (A) An assessment of the effectiveness of the 
                grant program in expanding earn-and-learn 
                program opportunities offered by employers in 
                conjunction with institutions of higher 
                education.
                  (B) The number of students who participated 
                in programs assisted under this section.
                  (C) The percentage of students participating 
                in programs assisted under this section who 
                successfully completed the program in the time 
                described in subsection (d)(1)(E).
                  (D) The median earnings of program 
                participants--
                          (i) 1 year after exiting the program; 
                        and
                          (ii) 3 years after exiting the 
                        program.
                  (E) The percentage of students participating 
                in programs assisted under this section who 
                successfully receive a recognized postsecondary 
                credential.
                  (F) The number of students served by programs 
                receiving funding under this section--
                          (i) 2 years after the end of the 
                        grant period;
                          (ii) 4 years after the end of the 
                        grant period.
          (2) Prohibition.--Notwithstanding any other provision 
        of law, the evaluation required by this subsection 
        shall not be subject to any review outside the 
        Institute for Education Sciences before such reports 
        are submitted to Congress and the Secretary.
          (3) Publication.--The evaluation required by this 
        subsection shall be made publicly available on the 
        website of the Department.
  (i) Definitions.--In this section:
          (1) Earn-and-learn program.--The term ``earn-and-
        learn program'' means an education program, including 
        an apprenticeship program, that provides students with 
        structured, sustained, and paid on-the-job training and 
        accompanying, for credit, classroom instruction that--
                  (A) is for a period of between 3 months and 2 
                years; and
                  (B) leads to, on completion of the program, a 
                recognized postsecondary credential.
          (2) Eligible partnership.--The term ``eligible 
        partnership'' shall mean a consortium that includes--
                  (A) 1 or more businesses; and
                  (B) 1 or more institutions of higher 
                education.
          (3) In-demand industry sector or occupation.--The 
        term ``in-demand industry sector or occupation'' has 
        the meaning given the term in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3102).
          (4) On-the-job training.--The term ``on-the-job 
        training'' has the meaning given the term in section 3 
        of the Workforce Innovation and Opportunity Act (29 
        U.S.C. 3102).
          (5) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning 
        given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
  (j) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $183,204,000 for 
fiscal year 2019 and each of the 5 succeeding fiscal years.

TITLE III--INSTITUTIONAL AID

           *       *       *       *       *       *       *


          Part A--Strengthening Minority-serving Institutions

SEC. 311. PROGRAM PURPOSE.

  (a) General Authorization.--The Secretary shall carry out a 
program, in accordance with this part, to improve the academic 
quality, institutional management, and fiscal stability of 
eligible institutions, in order to increase their self-
sufficiency and strengthen their capacity to make a substantial 
contribution to the higher education resources of the Nation.
  [(b) Grants Awarded; Special Consideration.--(1) From the 
sums available for this part under section 399(a)(1), the 
Secretary may award grants to any eligible institution with an 
application approved under section 391 in order to assist such 
an institution to plan, develop, or implement activities that 
promise to strengthen the institution.
  [(2) Special consideration shall be given to any eligible 
institution--
          [(A) which has endowment funds (other than any 
        endowment fund built under section 332 of this Act as 
        in effect on September 30, 1986, and under part B) the 
        market value of which, per full-time equivalent 
        student, is less than the average current market value 
        of the endowment funds, per full-time equivalent 
        student (other than any endowment fund built under 
        section 332 of this Act as in effect on September 30, 
        1986, and under part B) at similar institutions; or
          [(B) which has expenditures per full-time equivalent 
        student for library materials which is less than the 
        average of the expenditures for library materials per 
        full-time equivalent student by other similarly 
        situated institutions.
  [(3) Special consideration shall be given to applications 
which propose, pursuant to the institution's plan, to engage 
in--
          [(A) faculty development;
          [(B) funds and administrative management;
          [(C) development and improvement of academic 
        programs;
          [(D) acquisition of equipment for use in 
        strengthening funds management and academic programs;
          [(E) joint use of facilities such as libraries and 
        laboratories; and
          [(F) student services, including services that will 
        assist in the education of special populations.]
  [(c)] (b) Authorized Activities.--Grants awarded under this 
section shall be used for 1 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 in classrooms, libraries, laboratories, and 
        other instructional facilities, including the 
        integration of computer technology into institutional 
        facilities to create smart buildings.
          (3) Support of faculty exchanges, faculty 
        development, and faculty fellowships to assist in 
        attaining advanced degrees in the field of instruction 
        of the faculty.
          (4) Development and improvement of academic programs.
          (5) Purchase of library books, periodicals, and other 
        educational materials, including telecommunications 
        program material.
          [(6) Tutoring, counseling, and student service 
        programs designed to improve academic success, 
        including innovative, customized, instruction courses 
        designed to help retain students and move the students 
        rapidly into core courses and through program 
        completion, which may include remedial education and 
        English language instruction.]
          (6) Tutoring, counseling, advising, and student 
        service programs designed to improve academic success, 
        including innovative and customized instructional 
        courses (which may include remedial education and 
        English language instruction) designed to help retain 
        students and move the students rapidly into core 
        courses and through program completion.
          (7) Education or counseling services designed to 
        improve the financial literacy and economic literacy of 
        students or the students' families.
          (8) Funds management, administrative management, and 
        [acquisition of equipment for use in strengthening 
        funds management] acquisition of technology, services, 
        and equipment for use in strengthening funds and 
        administrative management.
          (9) Joint use of facilities, such as laboratories and 
        libraries.
          (10) Establishing or improving a development office 
        to strengthen or improve contributions from alumni and 
        the private sector.
          (11) Establishing or improving an endowment fund.
          (12) [Creating or improving facilities for Internet 
        or other distance education technologies,] Innovative 
        learning models and creating or improving facilities 
        for Internet or other innovative technologies, 
        including purchase or rental of telecommunications 
        technology equipment or services.
          (13) 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.
          (14) The development, coordination, implementation, 
        or improvement of career and technical education 
        programs as defined in section 135 of the Carl D. 
        Perkins Career and Technical Education Act of 2006 (20 
        U.S.C. 2355).
          (15) Alignment and integration of career and 
        technical education programs with programs of study 
        leading to a bachelor's degree, graduate degree, or 
        professional degree.
          (16) Developing or expanding access to dual or 
        concurrent enrollment programs and early college high 
        school programs.
          (17) Pay for success initiatives that improve time to 
        completion and increase graduation rates.
          [(13)] (18) Other activities proposed in the 
        application submitted pursuant to subsection (b) and 
        section 391 that--
                  (A) contribute to carrying out the purposes 
                of the program assisted under this part; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.
  [(d)] (c) Endowment Fund.--
          (1) In general.--An eligible institution may use not 
        more than 20 percent of the grant funds provided under 
        this part to establish or increase an endowment fund at 
        such institution.
          (2) Matching requirement.--In order to be eligible to 
        use grant funds in accordance with paragraph (1), the 
        eligible institution shall provide matching funds from 
        non-Federal sources, in an amount equal to or greater 
        than the Federal funds used in accordance with 
        paragraph (1), for the establishment or increase of the 
        endowment fund.
          (3) Comparability.--The provisions of part C, 
        regarding the establishment or increase of an endowment 
        fund, that the Secretary determines are not 
        inconsistent with this subsection, shall apply to funds 
        used under paragraph (1).
          (4) Scholarship.--An institution that uses grant 
        funds provided under this part to establish or increase 
        an endowment fund may use the income from such 
        endowment fund to provide scholarships to students for 
        the purposes of attending such institution, subject to 
        the limitation in section 331(c)(3)(B)(i).

SEC. 312. DEFINITIONS; ELIGIBILITY.

  (a) Educational and General Expenditures.--For the purpose of 
this part, the term ``educational and general expenditures'' 
means the total amount expended by an institution of higher 
education for instruction, research, public service, academic 
support (including library expenditures), student services, 
institutional support, scholarships and fellowships, operation 
and maintenance expenditures for the physical plant, and any 
mandatory [transfers which the institution] transfers that the 
institution is required to pay by law.
  (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 (d);
                  (B) except as provided in section 392(b), the 
                average educational and general expenditures of 
                which are low, per full-time equivalent 
                undergraduate student, in comparison with the 
                average educational and general expenditures 
                per full-time equivalent undergraduate student 
                of institutions that offer similar instruction;
                  (C) which is--
                          (i) legally authorized to provide, 
                        and provides within the State, an 
                        educational program for which such 
                        institution awards a bachelor's degree;
                          (ii) a junior or community college; 
                        or
                          (iii) the College of the Marshall 
                        Islands, the College of Micronesia/
                        Federated States of Micronesia, and 
                        Palau Community College;
                  (D) which is accredited by a nationally 
                recognized accrediting agency or association 
                determined by the Secretary to be reliable 
                authority as to the quality of training offered 
                or which is, according to such an agency or 
                association, making reasonable progress toward 
                accreditation;
                  [(F)] (E)  located in a State (as defined in 
                section 103(20)(A)); and
                  [(E)] (F) which meets such other requirements 
                as the Secretary may prescribe; [and]
          (2) any branch of any institution of higher education 
        described under paragraph (1) which by itself satisfies 
        the requirements contained in subparagraphs (A) and (B) 
        of such paragraph[.]; and
          (3) except as provided in section 392(b), an 
        institution that has a completion rate of at least 25 
        percent that is calculated by counting a student as 
        completed if that student--
                  (A) graduates within 150 percent of the 
                normal time for completion; or
                  (B) enrolled into another program at an 
                institution for which the previous program 
                provided substantial preparation within 150 
                percent of the normal time for completion.
For purposes of the determination of whether an institution is 
an eligible institution under this paragraph, the factor 
described under paragraph (1)(A) shall be given twice the 
weight of the factor described under paragraph (1)(B).
  (c) Endowment Fund.--For the purpose of this part, the term 
``endowment fund'' means a fund that--
          (1) is established by State law, by an institution of 
        higher education, or by a foundation that is exempt 
        from Federal income taxation;
          (2) is maintained for the purpose of generating 
        income for the support of the institution; and
          (3) does not include real estate.
  (d) Enrollment of Needy Students.--Except as provided in 
section 318(b), for the purpose of this part, the term 
``enrollment of needy students'' means an enrollment at an 
institution of higher education or a junior or community 
college which includes--
          (1) at least 50 percent of the degree students so 
        enrolled who are receiving need-based assistance under 
        title IV of this Act in the second fiscal year 
        preceding the fiscal year for which the determination 
        is being made (other than loans for which an interest 
        subsidy is paid pursuant to section 428), or
          (2) a substantial percentage of students receiving 
        Pell Grants in the second fiscal year preceding the 
        fiscal year for which determination is being made, in 
        comparison with the percentage of students receiving 
        Pell Grants at all such institutions in the second 
        fiscal year preceding the fiscal year for which the 
        determination is made, unless the requirement of this 
        paragraph is waived under section 392(a).
  (e) Full-Time Equivalent Students.--For the purpose of this 
part, the term ``full-time equivalent students'' means the sum 
of the number of students enrolled full time at an institution, 
plus the full-time equivalent of the number of students 
enrolled part time (determined on the basis of the quotient of 
the sum of the credit hours of all part-time students divided 
by 12) at such institution.
  (f) Junior or Community College.--For the purpose of this 
part, the term ``junior or community college'' means an 
institution of higher education--
          (1) that admits as regular students persons who are 
        beyond the age of compulsory school attendance in the 
        State in which the institution is located and who have 
        the ability to benefit from the training offered by the 
        institution;
          (2) that does not provide an educational program for 
        which it awards a bachelor's degree (or an equivalent 
        degree); and
          (3) that--
                  (A) provides an educational program of not 
                less than 2 years that is acceptable for full 
                credit toward such a degree, or
                  (B) offers a 2-year program in engineering, 
                mathematics, or the physical or biological 
                sciences, designed to prepare a student to work 
                as a technician or at the semiprofessional 
                level in engineering, scientific, or other 
                technological fields requiring the 
                understanding and application of basic 
                engineering, scientific, or mathematical 
                principles of knowledge.
  (g) Low-Income Individual.--For the purpose of this part, the 
term ``low-income individual'' means an individual from a 
family whose taxable income for the preceding year did not 
exceed 150 percent of an amount equal to the poverty level 
determined by using criteria of poverty established by the 
Bureau of the Census.
  (h) Historically Black College or University.--For the 
purposes of this section, no historically black college or 
university which is eligible for and receives funds under part 
B of this title is eligible for or may receive funds under this 
part.

SEC. 313. DURATION OF GRANT.

  (a) Award Period.--The Secretary may award a grant to an 
eligible institution under this part [for 5 years] for a period 
of 5 years. Any funds awarded under this section that are not 
expended or used for the purposes for which the funds were paid 
within 10 years following the date on which the grant was 
awarded, shall be repaid to the Treasury.
  (b) Limitations.--In awarding grants under this part the 
Secretary shall give priority to applicants who are not already 
receiving a grant under this part, except that for the purpose 
of this subsection a grant under subsection (c) and a grant 
under section 394(a)(1) shall not be considered a grant under 
this part.
  (c) Planning Grants.--Notwithstanding subsection (a), the 
Secretary may award a grant to an eligible institution under 
this part for a period of one year for the purpose of 
preparation of plans and applications for a grant under this 
part.
  [(d) Wait-Out-Period.--Each eligible institution that 
received a grant under this part for a 5-year period shall not 
be eligible to receive an additional grant under this part 
until 2 years after the date on which the 5-year grant period 
terminates.]

           *       *       *       *       *       *       *


SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND 
                    UNIVERSITIES.

  (a) Program Authorized.--The Secretary shall provide grants 
and related assistance to Tribal Colleges and Universities to 
enable such institutions to improve and expand their capacity 
to serve Indian students.
  (b) Definitions.--In this section:
          (1) Indian.--The term ``Indian'' has the meaning 
        given the term in section 2 of the Tribally Controlled 
        Colleges and Universities Assistance Act of 1978.
          (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 2 of the Tribally 
        Controlled Colleges and Universities Assistance Act of 
        1978.
          (3) Tribal college or university.--The term ``Tribal 
        College or University'' means an institution that--
                  (A) qualifies for funding under the Tribally 
                Controlled Colleges and Universities Assistance 
                Act of 1978 (25 U.S.C. 1801 et seq.) or the 
                Navajo Community College Act (25 U.S.C. 640a 
                note); or
                  (B) is cited in section 532 of the Equity in 
                Educational Land-Grant Status Act of 1994 (7 
                U.S.C. 301 note).
          (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.
  (c) Authorized Activities.--
          (1) In general.--Grants awarded under this section 
        shall be used by Tribal Colleges or Universities to 
        assist such institutions to plan, develop, undertake, 
        and carry out activities to improve and expand such 
        institutions' capacity to serve Indian students.
          (2) Examples of authorized activities.--The 
        activities described in paragraph (1) may include--
                  [(A) purchase, rental, or lease of scientific 
                or laboratory equipment for educational 
                purposes, including instructional and research 
                purposes;]
                  (A) the activities described in paragraphs 
                (1) through (12) and (14) through (17) of 
                section 311(b);
                  (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 in tribal governance or 
                tribal public policy;
                  (D) academic instruction in disciplines in 
                which Indians are underrepresented and 
                instruction in tribal governance or tribal 
                public policy;
                  [(E) purchase of library books, periodicals, 
                and other educational materials, including 
                telecommunications program material;
                  [(F) tutoring, counseling, and student 
                service programs designed to improve academic 
                success;
                  [(G) education or counseling services 
                designed to improve the financial literacy and 
                economic literacy of students or the students' 
                families;
                  [(H) funds management, administrative 
                management, and acquisition of equipment for 
                use in strengthening funds management;
                  [(I) joint use of facilities, such as 
                laboratories and libraries;
                  [(J) establishing or improving a development 
                office to strengthen or improve contributions 
                from alumni and the private sector;]
                  [(K)] (E) 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;
                  [(L)] (F) 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;
                  [(M) developing or improving facilities for 
                Internet use or other distance education 
                technologies; and]
                  [(N)] (G) other activities proposed in the 
                application submitted pursuant to subsection 
                (d) that--
                          (i) contribute to carrying out the 
                        activities described in subparagraphs 
                        (A) through [(M)] (F); and
                          (ii) are approved by the Secretary as 
                        part of the review and acceptance of 
                        such application.
          [(3) Endowment fund.--
                  [(A) In general.--A Tribal College or 
                University 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 Tribal College or 
                University shall provide matching funds, in an 
                amount equal to the Federal funds used in 
                accordance with subparagraph (A), for the 
                establishment or increase of the endowment 
                fund.
                  [(C) Comparability.--The provisions of part C 
                regarding the establishment or increase of an 
                endowment fund, that the Secretary determines 
                are not inconsistent with this paragraph, shall 
                apply to funds used under subparagraph (A).]
          (3) Endowment fund.--A Tribal College or University 
        seeking to establish or increase an endowment fund 
        shall abide by the requirements in section 311(c).
  (d) Application, Plan, and Allocation.--
          (1) Institutional eligibility.--To be eligible to 
        receive assistance under this section, a Tribal College 
        or University shall be an eligible institution under 
        section 312(b).
          [(2) Application.--
                  [(A) In general.--A Tribal College or 
                University desiring to receive assistance under 
                this section shall submit an application to the 
                Secretary at such time, in such manner, and 
                containing such information as the Secretary 
                may reasonably require.
                  [(B) Streamlined process.--The Secretary 
                shall establish application requirements in 
                such a manner as to simplify and streamline the 
                process for applying for grants under this 
                section.]
          (2) Application.--A Tribal College or University 
        desiring to receive assistance under this section shall 
        submit an application to the Secretary pursuant to 
        section 391.
          (3) Awards and allocations to institutions.--
                  (A) Construction grants.--
                          (i) In general.--Of the amount 
                        appropriated to carry out this section 
                        for any fiscal year, the Secretary may 
                        reserve 30 percent for the purpose of 
                        awarding one-year grants of not less 
                        than $1,000,000 to address 
                        construction, maintenance, and 
                        renovation needs at eligible 
                        institutions.
                          (ii) Preference.--In providing grants 
                        under clause (i) for any fiscal year, 
                        the Secretary shall give preference to 
                        eligible institutions that have not 
                        received an award under this section 
                        for a previous fiscal year.
                  (B) Allotment of remaining funds.--
                          (i) In general.--Except as provided 
                        in clause (ii), the Secretary shall 
                        distribute the remaining funds 
                        appropriated for any fiscal year to 
                        each eligible institution as follows:
                                  (I) 60 percent of the 
                                remaining appropriated funds 
                                shall be distributed among the 
                                eligible Tribal Colleges and 
                                Universities on a pro rata 
                                basis, based on the respective 
                                Indian student counts (as 
                                defined in section 2(a) of the 
                                Tribally Controlled Colleges 
                                and Universities Assistance Act 
                                of 1978 (25 U.S.C. 1801(a)) of 
                                the Tribal Colleges and 
                                Universities.
                                  (II) The remaining 40 percent 
                                shall be distributed in equal 
                                shares to the eligible Tribal 
                                Colleges and Universities.
                          (ii) Minimum grant.--The amount 
                        distributed to a Tribal College or 
                        University under clause (i) shall not 
                        be less than $500,000.
          (4) Special rules.--
                  (A) Concurrent funding.--No Tribal College or 
                University that receives funds under this 
                section shall concurrently receive funds under 
                any other provision of this part, part B, or 
                [part A of] title V.
                  (B) Exemption.--Section [313(d)] 312(b)(3) 
                shall not apply to institutions that are 
                eligible to receive funds under this section.

SEC. 317. ALASKA NATIVE AND NATIVE HAWAIIAN-SERVING INSTITUTIONS.

  (a) Program Authorized.--The Secretary shall provide grants 
and related assistance to Alaska Native-serving institutions 
and Native Hawaiian-serving institutions to enable such 
institutions to improve and expand their capacity to serve 
Alaska Natives and Native Hawaiians.
  (b) Definitions.--For the purpose of this section--
          (1) the term ``Alaska Native'' has the meaning given 
        the term in section 6306 of the Elementary and 
        Secondary Education Act of 1965;
          (2) the term ``Alaska Native-serving institution'' 
        means an institution of higher education that--
                  (A) is an eligible institution under section 
                312(b); and
                  (B) at the time of application, has an 
                enrollment of undergraduate students that is at 
                least 20 percent Alaska Native students;
          (3) the term ``Native Hawaiian'' has the meaning 
        given the term in section 6207 of the Elementary and 
        Secondary Education Act of 1965; and
          (4) the term ``Native Hawaiian-serving institution'' 
        means an institution of higher education which--
                  (A) is an eligible institution under section 
                312(b); and
                  (B) at the time of application, has an 
                enrollment of undergraduate students that is at 
                least 10 percent Native Hawaiian students.
  (c) Authorized Activities.--
          (1) Types of activities authorized.--Grants awarded 
        under this section shall be used by Alaska Native-
        serving institutions and Native Hawaiian-serving 
        institutions to assist such institutions to plan, 
        develop, undertake, and carry out activities to improve 
        and expand such institutions' capacity to serve Alaska 
        Natives or Native Hawaiians.
          [(2) Examples of authorized activities.--Such 
        programs may include--
                  [(A) purchase, rental, or lease of scientific 
                or laboratory equipment for educational 
                purposes, including instructional and research 
                purposes;
                  [(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional 
                facilities;
                  [(C) support of faculty exchanges, and 
                faculty development and faculty fellowships to 
                assist in attaining advanced degrees in the 
                faculty's field of instruction;
                  [(D) curriculum development and academic 
                instruction;
                  [(E) purchase of library books, periodicals, 
                microfilm, and other educational materials;
                  [(F) funds and administrative management, and 
                acquisition of equipment for use in 
                strengthening funds management;
                  [(G) joint use of facilities such as 
                laboratories and libraries;
                  [(H) academic tutoring and counseling 
                programs and student support services; and
                  [(I) education or counseling services 
                designed to improve the financial literacy and 
                economic literacy of students or the students' 
                families.]
          (2) Examples of authorized activities.--Such programs 
        may include--
                  (A) the activities described in paragraphs 
                (1) through (17) of section 311(b); and
                  (B) other activities proposed in the 
                application submitted pursuant to subsection 
                (d) that--
                          (i) contribute to carrying out the 
                        purpose of this section; and
                          (ii) are approved by the Secretary as 
                        part of the review and approval of an 
                        application submitted under subsection 
                        (d).
          (3) Endowment fund.--An Alaska Native-serving 
        institution and Native Hawaiian-serving institution 
        seeking to establish or increase an endowment fund 
        shall abide by the requirements in section 311(c).
  (d) Application Process.--
          [(1) Institutional eligibility.--Each Alaska Native-
        serving institution and Native Hawaiian-serving 
        institution desiring to receive assistance under this 
        section shall submit to the Secretary such enrollment 
        data as may be necessary to demonstrate that the 
        institution is an Alaska Native-serving institution or 
        a Native Hawaiian-serving institution as defined in 
        subsection (b), along with such other information and 
        data as the Secretary may by regulation require.]
          [(2)] (1) 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 pursuant to section 
        391. [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.
          [(3)] (2) Special rules.--
                  (A) Eligibility.--No Alaskan Native-serving 
                institution or Native Hawaiian-serving 
                institution that receives funds under this 
                section shall concurrently receive funds under 
                other provisions of [this part or part B.] this 
                part, part B, or title V.
                  [(B) Exemption.--Section 313(d) shall not 
                apply to institutions that are eligible to 
                receive funds under this section.]
                  [(C)] (B) 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.

SEC. 318. PREDOMINANTLY BLACK INSTITUTIONS.

  (a) Purpose.--It is the purpose of this section to assist 
Predominantly Black Institutions in expanding educational 
opportunity through a program of Federal assistance.
  (b) Definitions.--In this section:
          (1) Eligible institution.--The term ``eligible 
        institution'' means an institution of higher education 
        that--
                  (A) has an enrollment of needy undergraduate 
                students;
                  (B) has an average educational and general 
                expenditure that is low, per full-time 
                equivalent undergraduate student, in comparison 
                with the average educational and general 
                expenditure per full-time equivalent 
                undergraduate student of institutions that 
                offer similar instruction, except that the 
                Secretary may apply the waiver requirements 
                described in section 392(b) to this 
                subparagraph in the same manner as the 
                Secretary applies the waiver requirements to 
                section 312(b)(1)(B);
                  (C) has an enrollment of undergraduate 
                students that is not less than 40 percent Black 
                American students;
                  (D) is legally authorized to provide, and 
                provides, within the State an educational 
                program for which the institution of higher 
                education awards a baccalaureate degree or, in 
                the case of a junior or community college, an 
                associate's degree;
                  (E) is accredited by a nationally recognized 
                accrediting agency or association determined by 
                the Secretary to be a reliable authority as to 
                the quality of training offered or is, 
                according to such an agency or association, 
                making reasonable progress toward 
                accreditation; [and]
                  (F) is not receiving assistance under--
                          (i) part B;
                          (ii) [part A of] title V; or
                          (iii) an annual authorization of 
                        appropriations under the Act of March 
                        2, 1867 (14 Stat. 438; 20 U.S.C. 
                        123)[.]; and
                  (G) is an eligible institution under section 
                312(b).
          (2) Enrollment of needy students.--The term 
        ``enrollment of needy students'' means the enrollment 
        at an eligible institution with respect to which not 
        less than 50 percent of the undergraduate students 
        enrolled in an academic program leading to a degree--
                  (A) in the second fiscal year preceding the 
                fiscal year for which the determination is 
                made, were Federal Pell Grant recipients for 
                such year;
                  (B) come from families that receive benefits 
                under a means-tested Federal benefit program;
                  (C) attended a public or nonprofit private 
                secondary school that--
                          (i) is in the school district of a 
                        local educational agency that was 
                        eligible for assistance under part A of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 for any year 
                        during which the student attended such 
                        secondary school; and
                          (ii) for the purpose of this 
                        paragraph and for such year of 
                        attendance, was determined by the 
                        Secretary (pursuant to regulations and 
                        after consultation with the State 
                        educational agency of the State in 
                        which the school is located) to be a 
                        school in which the enrollment of 
                        children meeting a measure of poverty 
                        under section 1113(a)(5) of such Act 
                        exceeds 30 percent of the total 
                        enrollment of such school; or
                  (D) are first-generation college students and 
                a majority of such first-generation college 
                students are low-income individuals.
          (3) First-generation college student.--The term 
        ``first-generation college student'' has the meaning 
        given the term in section 402A(h).
          (4) Low-income individual.--The term ``low-income 
        individual'' has the meaning given such term in section 
        402A(h).
          (5) Means-tested federal benefit program.--The term 
        ``means-tested Federal benefit program'' means a 
        program of the Federal Government, other than a program 
        under title IV, in which eligibility for the program's 
        benefits, or the amount of such benefits, are 
        determined on the basis of income or resources of the 
        individual or family seeking the benefit.
          (6) Predominantly black institution.--The term 
        ``Predominantly Black Institution'' means an 
        institution of higher education, as defined in section 
        101(a)--
                  (A) that is an eligible institution with not 
                less than 1,000 undergraduate students;
                  (B) at which not less than 50 percent of the 
                undergraduate students enrolled at the eligible 
                institution are low-income individuals or 
                first-generation college students; and
                  (C) at which not less than 50 percent of the 
                undergraduate students are enrolled in an 
                educational program leading to a bachelor's or 
                associate's degree that the eligible 
                institution is licensed to award by the State 
                in which the eligible institution is located.
          [(7) State.--The term ``State'' means each of the 50 
        States and the District of Columbia.]
  (c) Grant Authority.--
          (1) In general.--The Secretary is authorized to award 
        grants, from allotments under subsection (e), to 
        Predominantly Black Institutions to enable the 
        Predominantly Black Institutions to carry out the 
        authorized activities described in subsection (d).
          (2) Priority.--In awarding grants under this section 
        the Secretary shall give priority to Predominantly 
        Black Institutions with large numbers or percentages of 
        students described in subsections (b)(1)(A) or 
        (b)(1)(C). The level of priority given to Predominantly 
        Black Institutions with large numbers or percentages of 
        students described in subsection (b)(1)(A) shall be 
        twice the level of priority given to Predominantly 
        Black Institutions with large numbers or percentages of 
        students described in subsection (b)(1)(C).
  (d) Authorized Activities.--
          (1) Required activities.--Grant funds provided under 
        this section shall be used--
                  (A) to assist the Predominantly Black 
                Institution to plan, develop, undertake, and 
                implement programs to enhance the institution's 
                capacity to serve more low- and middle-income 
                Black American students;
                  (B) to expand higher education opportunities 
                for students eligible to participate in 
                programs under title IV by encouraging college 
                preparation and student persistence in 
                secondary school and postsecondary education; 
                and
                  (C) to strengthen the financial ability of 
                the Predominantly Black Institution to serve 
                the academic needs of the students described in 
                subparagraphs (A) and (B).
          (2) Additional activities.--Grant funds provided 
        under this section shall be used for one or more of the 
        following activities:
                  (A) The activities described in paragraphs 
                (1) [through (12) of section 311(c)] through 
                (17) of section 311(b).
                  (B) Academic instruction in disciplines in 
                which Black Americans are underrepresented.
                  (C) Establishing or enhancing a program of 
                teacher education designed to qualify students 
                to teach in a public elementary school or 
                secondary school in the State that shall 
                include, as part of such program, preparation 
                for teacher certification or licensure.
                  [(D) Establishing community outreach programs 
                that will encourage elementary school and 
                secondary school students to develop the 
                academic skills and the interest to pursue 
                postsecondary education.]
                  [(E)] (D) Other activities proposed in the 
                application submitted pursuant to subsection 
                (f) that--
                          (i) contribute to carrying out the 
                        purpose of this section; and
                          (ii) are approved by the Secretary as 
                        part of the review and approval of an 
                        application submitted under subsection 
                        (f).
          [(3) Endowment fund.--
                  [(A) In general.--A Predominantly Black 
                Institution may use not more than 20 percent of 
                the grant funds provided under this section to 
                establish or increase an endowment fund at the 
                institution.
                  [(B) Matching requirement.--In order to be 
                eligible to use grant funds in accordance with 
                subparagraph (A), a Predominantly Black 
                Institution shall provide matching funds from 
                non-Federal sources, in an amount equal to or 
                greater than the Federal funds used in 
                accordance with subparagraph (A), for the 
                establishment or increase of the endowment 
                fund.
                  [(C) Comparability.--The provisions of part 
                C, regarding the establishment or increase of 
                an endowment fund, that the Secretary 
                determines are not inconsistent with this 
                subsection, shall apply to funds used under 
                subparagraph (A).]
          (3) Endowment fund.--A Predominantly Black 
        Institution seeking to establish or increase an 
        endowment fund shall abide by the requirements in 
        section 311(c).
          (4) Limitation.--Not more than 50 percent of the 
        grant funds provided to a Predominantly Black 
        Institution under this section may be available for the 
        purpose of constructing or maintaining a classroom, 
        library, laboratory, or other instructional facility.
  (e) Allotments to Predominantly Black Institutions.--
          (1) Federal pell grant basis.--From the amounts 
        appropriated to carry out this section for any fiscal 
        year, the Secretary shall allot to each Predominantly 
        Black Institution having an application approved under 
        subsection (f) a sum that bears the same ratio to one-
        half of that amount as the number of Federal Pell Grant 
        recipients in attendance at such institution at the end 
        of the academic year preceding the beginning of that 
        fiscal year, bears to the total number of Federal Pell 
        Grant recipients at all such institutions at the end of 
        such academic year.
          (2) Graduates basis.--From the amounts appropriated 
        to carry out this section for any fiscal year, the 
        Secretary shall allot to each Predominantly Black 
        Institution having an application approved under 
        subsection (f) a sum that bears the same ratio to one-
        fourth of that amount as the number of graduates for 
        such academic year at such institution, bears to the 
        total number of graduates for such academic year at all 
        such institutions.
          (3) Graduates seeking a higher degree basis.--From 
        the amounts appropriated to carry out this section for 
        any fiscal year, the Secretary shall allot to each 
        Predominantly Black Institution having an application 
        approved under subsection (f) a sum that bears the same 
        ratio to one-fourth of that amount as the percentage of 
        graduates from such institution who are admitted to and 
        in attendance at, not later than two years after 
        graduation with an associate's degree or a 
        baccalaureate degree, a baccalaureate degree-granting 
        institution or a graduate or professional school in a 
        degree program in disciplines in which Black American 
        students are underrepresented, bears to the percentage 
        of such graduates for all such institutions.
          (4) Minimum allotment.--
                  (A) In general.--Notwithstanding paragraphs 
                (1), (2), and (3), the amount allotted to each 
                Predominantly Black Institution under this 
                section may not be less than $250,000.
                  (B) Insufficient amount.--If the amounts 
                appropriated to carry out this section for a 
                fiscal year are not sufficient to pay the 
                minimum allotment provided under subparagraph 
                (A) for the fiscal year, then the amount of 
                such minimum allotment shall be ratably 
                reduced. If additional sums become available 
                for such fiscal year, such reduced allotment 
                shall be increased on the same basis as the 
                allotment was reduced until the amount allotted 
                equals the minimum allotment required under 
                subparagraph (A).
          (5) Reallotment.--The amount of a Predominantly Black 
        Institution's allotment under paragraph (1), (2), (3), 
        or (4) for any fiscal year that the Secretary 
        determines will not be needed for such institution for 
        the period for which such allotment is available, shall 
        be available for reallotment to other Predominantly 
        Black Institutions in proportion to the original 
        allotments to such other institutions under this 
        section for such fiscal year. The Secretary shall 
        reallot such amounts from time to time, on such date 
        and during such period as the Secretary determines 
        appropriate.
  (f) Applications.--Each Predominantly Black Institution 
desiring a grant under this section shall submit an application 
to the Secretary [at such time, in such manner, and containing 
or accompanied by such information as the Secretary may 
reasonably require.] pursuant to section 391.
  [(g) Application Review Process.--Section 393 shall not apply 
to applications under this section.
  [(h) Duration and Carryover.--Any grant funds paid to a 
Predominantly Black Institution under this section that are not 
expended or used for the purposes for which the funds were paid 
within ten years following the date on which the grant was 
awarded, shall be repaid to the Treasury.]
  [(i)] (g) Special Rule on Eligibility.--No Predominantly 
Black Institution that receives funds under this section shall 
concurrently receive funds under any other provision of this 
part, part B, or [part A of] title V.

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

  (a) Program Authorized.--The Secretary shall provide grants 
and related assistance to Native American-serving, nontribal 
institutions to enable such institutions to improve and expand 
their capacity to serve Native Americans and low-income 
individuals.
  (b) Definitions.--In this section:
          (1) Native american.--The term ``Native American'' 
        means an individual who is of a tribe, people, or 
        culture that is indigenous to the United States.
          (2) Native american-serving, nontribal institution.--
        The term ``Native American-serving, nontribal 
        institution'' means an institution of higher education, 
        as defined in section 101(a), that, at the time of 
        application--
                  (A) is an eligible institution under section 
                312(b);
                  (B) has an enrollment of undergraduate 
                students that is not less than 10 percent 
                Native American students; and
                  (C) is not a Tribal College or University (as 
                defined in section 316).
  (c) Authorized Activities.--
          (1) Types of activities authorized.--Grants awarded 
        under this section shall be used by Native American-
        serving, nontribal institutions to assist such 
        institutions to plan, develop, undertake, and carry out 
        activities to improve and expand such institutions' 
        capacity to serve Native Americans and low-income 
        individuals.
          [(2) Examples of authorized activities.--Such 
        programs may include--
                  [(A) the purchase, rental, or lease of 
                scientific or laboratory equipment for 
                educational purposes, including instructional 
                and research purposes;
                  [(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional 
                facilities;
                  [(C) support of faculty exchanges, and 
                faculty development and faculty fellowships to 
                assist faculty in attaining advanced degrees in 
                the faculty's field of instruction;
                  [(D) curriculum development and academic 
                instruction;
                  [(E) the purchase of library books, 
                periodicals, microfilm, and other educational 
                materials;
                  [(F) funds and administrative management, and 
                acquisition of equipment for use in 
                strengthening funds management;
                  [(G) the joint use of facilities such as 
                laboratories and libraries;
                  [(H) academic tutoring and counseling 
                programs and student support services; and
                  [(I) education or counseling services 
                designed to improve the financial and economic 
                literacy of students or the students' 
                families.]
          (2) Examples of authorized activities.--Such programs 
        may include--
                  (A) the activities described in paragraphs 
                (1) through (17) of section 311(b); and
                  (B) other activities proposed in the 
                application submitted pursuant to subsection 
                (d) that--
                          (i) contribute to carrying out the 
                        purpose of this section; and
                          (ii) are approved by the Secretary as 
                        part of the review and approval of an 
                        application submitted under subsection 
                        (d).
          (3) Endowment fund.--A Native American-serving, 
        nontribal institution seeking to establish or increase 
        an endowment fund shall abide by the requirements in 
        section 311(c).
  (d) Application Process.--
          [(1) Institutional eligibility.--A Native American-
        serving, nontribal institution desiring to receive 
        assistance under this section shall submit to the 
        Secretary such enrollment data as may be necessary to 
        demonstrate that the institution is a Native American-
        serving, nontribal institution, along with such other 
        information and data as the Secretary may reasonably 
        require.]
          (1) Application.--A Native American-serving, 
        nontribal institution desiring to receive assistance 
        under this section shall submit an application to the 
        Secretary pursuant to section 391.
          [(2) Applications.--
                  [(A) Authority to submit applications.--Any 
                institution that is determined by the Secretary 
                to be a Native American-serving, nontribal 
                institution may submit an application for 
                assistance under this section to the Secretary.
                  [(B) Simplified and streamlined format.--The 
                Secretary shall, to the extent possible, 
                continue to prescribe a simplified and 
                streamlined format for applications under this 
                section that takes into account the limited 
                number of institutions that are eligible for 
                assistance under this section.
                  [(C) Content.--An application submitted under 
                subparagraph (A) shall include--
                          [(i) a five-year plan for improving 
                        the assistance provided by the Native 
                        American-serving, nontribal institution 
                        to Native Americans and low-income 
                        individuals; and
                          [(ii) such other information and 
                        assurances as the Secretary may 
                        reasonably require.]
          [(3)] (2) Special rules.--
                  (A) Eligibility.--No Native American-serving, 
                nontribal institution that receives funds under 
                this section shall concurrently receive funds 
                under any other provision of this part, part B, 
                or [part A of] title V.
                  [(B) Exemption.--Section 313(d) shall not 
                apply to institutions that are eligible to 
                receive funds under this section.]
                  [(C)] (B) 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)] (C) Minimum grant amount.--The minimum 
                amount of a grant under this section shall be 
                $200,000.

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

  (a) Program Authorized.--The Secretary shall provide grants 
and related assistance to Asian American and Native American 
Pacific Islander-serving institutions to enable such 
institutions to improve and expand their capacity to serve 
Asian Americans and Native American Pacific Islanders and low-
income individuals.
  (b) Definitions.--In this section:
          (1) Asian american.--The term ``Asian American'' has 
        the meaning given the term ``Asian'' in the Office of 
        Management and Budget's Standards for Maintaining, 
        Collecting, and Presenting Federal Data on Race and 
        Ethnicity as published on October 30, 1997 (62 Fed. 
        Reg. 58789).
          (2) Asian american and native american pacific 
        islander-serving institution.--The term ``Asian 
        American and Native American Pacific Islander-serving 
        institution'' means an institution of higher education 
        that--
                  (A) is an eligible institution under section 
                312(b); and
                  (B) at the time of application, has an 
                enrollment of undergraduate students that is 
                not less than 10 percent students who are Asian 
                American or Native American Pacific Islander.
          (3) Native american pacific islander.--The term 
        ``Native American Pacific Islander'' means any 
        descendant of the aboriginal people of any island in 
        the Pacific Ocean that is a territory or possession of 
        the United States.
  (c) Authorized Activities.--
          (1) Types of activities authorized.--Grants awarded 
        under this section shall be used by Asian American and 
        Native American Pacific Islander-serving institutions 
        to assist such institutions to plan, develop, 
        undertake, and carry out activities to improve and 
        expand such institutions' capacity to serve Asian 
        Americans and Native American Pacific Islanders and 
        low-income individuals.
          [(2) Examples of authorized activities.--Such 
        programs may include--
                  [(A) purchase, rental, or lease of scientific 
                or laboratory equipment for educational 
                purposes, including instructional and research 
                purposes;
                  [(B) renovation and improvement in classroom, 
                library, laboratory, and other instructional 
                facilities;
                  [(C) support of faculty exchanges, and 
                faculty development and faculty fellowships to 
                assist in attaining advanced degrees in the 
                faculty's field of instruction;
                  [(D) curriculum development and academic 
                instruction;
                  [(E) purchase of library books, periodicals, 
                microfilm, and other educational materials;
                  [(F) funds and administrative management, and 
                acquisition of equipment for use in 
                strengthening funds management;
                  [(G) joint use of facilities such as 
                laboratories and libraries;
                  [(H) academic tutoring and counseling 
                programs and student support services;
                  [(I) establishing community outreach programs 
                that will encourage elementary school and 
                secondary school students to develop the 
                academic skills and the interest to pursue 
                postsecondary education;
                  [(J) establishing or improving an endowment 
                fund;
                  [(K) academic instruction in disciplines in 
                which Asian Americans and Native American 
                Pacific Islanders are underrepresented;
                  [(L) conducting research and data collection 
                for Asian American and Native American Pacific 
                Islander populations and subpopulations;
                  [(M) establishing partnerships with 
                community-based organizations serving Asian 
                Americans and Native American Pacific 
                Islanders; and
                  [(N) education or counseling services 
                designed to improve the financial and economic 
                literacy of students or the students' 
                families.]
          (2) Examples of authorized activities.--Such programs 
        may include--
                  (A) the activities described in paragraphs 
                (1) through (17) of section 311(b);
                  (B) academic instruction in disciplines in 
                which Asian Americans and Native American 
                Pacific Islanders are underrepresented;
                  (C) conducting research and data collection 
                for Asian American and Native American Pacific 
                Islander populations and subpopulations;
                  (D) establishing partnerships with community-
                based organizations serving Asian Americans and 
                Native American Pacific Islanders; and
                  (E) other activities proposed in the 
                application submitted pursuant to subsection 
                (d) that--
                          (i) contribute to carrying out the 
                        purpose of this section; and
                          (ii) are approved by the Secretary as 
                        part of the review and approval of an 
                        application submitted under subsection 
                        (d).
          (3) Endowment fund.--An Asian American and Native 
        American Pacific Islander-serving institution seeking 
        to establish or increase an endowment fund shall abide 
        by the requirements in section 311(c).
  (d) Application Process.--
          [(1) Institutional eligibility.--Each Asian American 
        and Native American Pacific Islander-serving 
        institution desiring to receive assistance under this 
        section shall submit to the Secretary such enrollment 
        data as may be necessary to demonstrate that the 
        institution is an Asian American and Native American 
        Pacific Islander-serving institution as defined in 
        subsection (b), along with such other information and 
        data as the Secretary may reasonably require.]
          (1) Application.--Each Asian American and Native 
        American Pacific Islander-serving institution desiring 
        to receive assistance under this section shall submit 
        an application to the Secretary pursuant to section 
        391.
          [(2) Applications.--Any institution that is 
        determined by the Secretary to be an Asian American and 
        Native American Pacific Islander-serving institution 
        may submit an application for assistance under this 
        section to the Secretary. Such application shall 
        include--
                  [(A) a five-year plan for improving the 
                assistance provided by the Asian American and 
                Native American Pacific Islander-serving 
                institution to Asian American and Native 
                American Pacific Islander students and low-
                income individuals; and
                  [(B) such other information and assurances as 
                the Secretary may reasonably require.]
          [(3)] (2) Special rules.--
                  (A) Eligibility.--No Asian American and 
                Native American Pacific Islander-serving 
                institution that receives funds under this 
                section shall concurrently receive funds under 
                any other provision of this part, part B, or 
                title V.
                  [(B) Exemption.--Section 313(d) shall not 
                apply to institutions that are eligible to 
                receive funds under this section.]
                  [(C)] (B) Distribution.--In awarding grants 
                under this section, the Secretary shall--
                          (i) to the extent possible and 
                        consistent with the competitive process 
                        under which such grants are awarded, 
                        ensure maximum and equitable 
                        distribution among all eligible 
                        institutions; and
                          (ii) give priority consideration to 
                        institutions for which not less than 10 
                        percent of such institution's Asian 
                        American and Native American Pacific 
                        Islander students are low-income 
                        individuals.

Part B--Strengthening Historically Black Colleges and Universities

           *       *       *       *       *       *       *


SEC. 323. GRANTS TO INSTITUTIONS.

  [(a) General Authorization; Uses of Funds.--From amounts 
available under section 399(a)(2) for 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) Purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, 
        including instructional and research purposes.
          [(2) Construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and 
        other instructional facilities, including purchase or 
        rental of telecommunications technology equipment or 
        services.
          [(3) Support of faculty exchanges, and faculty 
        development and faculty fellowships to assist in 
        attaining advanced degrees in their field of 
        instruction.
          [(4) Academic instruction in disciplines in which 
        Black Americans are underrepresented.
          [(5) Purchase of library books, periodicals, 
        microfilm, and other educational materials, including 
        telecommunications program materials.
          [(6) Tutoring, counseling, and student service 
        programs designed to improve academic success.
          [(7) Funds and administrative management, and 
        acquisition of equipment for use in strengthening funds 
        management.
          [(8) Joint use of facilities, such as laboratories 
        and libraries.
          [(9) Establishing or improving a development office 
        to strengthen or improve contributions from alumni and 
        the private sector.
          [(10) 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) Acquisition of real property in connection with 
        the construction, renovation, or addition to or 
        improvement of campus facilities.
          [(13) Education or financial information designed to 
        improve the financial literacy and economic literacy of 
        students or the students' families, especially with 
        regard to student indebtedness and student assistance 
        programs under title IV.
          [(14) Services necessary for the implementation of 
        projects or activities that are described in the grant 
        application and that are approved, in advance, by the 
        Secretary, except that not more than two percent of the 
        grant amount may be used for this purpose.
          [(15) Other activities proposed in the application 
        submitted pursuant to section 325 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.
  [(b) Endowment Fund.--
          [(1) In general.--An institution may use not more 
        than 20 percent of the grant funds provided under this 
        part to establish or increase an endowment fund at the 
        institution.
          [(2) Matching requirement.--In order to be eligible 
        to use grant funds in accordance with paragraph (1), 
        the eligible institution shall provide matching funds 
        from non-Federal sources, in an amount equal to or 
        greater than the Federal funds used in accordance with 
        paragraph (1), for the establishment or increase of the 
        endowment fund.
          [(3) Comparability.--The provisions of part C 
        regarding the establishment or increase of an endowment 
        fund, that the Secretary determines are not 
        inconsistent with this subsection, shall apply to funds 
        used under paragraph (1).]
  (a) Authorized Activities.--From amounts available under 
section 399(a)(2) for 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) The activities described in paragraphs (1) 
        through (17) of section 311(b).
          (2) Academic instruction in disciplines in which 
        Black Americans are underrepresented.
          (3) Initiatives to improve the educational outcomes 
        of African American males.
          (4) 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.
          (5) Acquisition of real property in connection with 
        the construction, renovation, or addition to or 
        improvement of campus facilities.
          (6) Services necessary for the implementation of 
        projects or activities that are described in the grant 
        application and that are approved, in advance, by the 
        Secretary, except that not more than two percent of the 
        grant amount may be used for this purpose.
          (7) Other activities proposed in the application 
        submitted pursuant to section 325 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.
  (b) Endowment Fund.--An institution seeking to establish or 
increase an endowment shall abide by the requirements in 
section 311(c).
  (c) Limitations.--(1) No grant may be made under this Act for 
any educational program, activity, or service related to 
sectarian instruction or religious worship, or provided by a 
school or department of divinity. For the purpose of this 
subsection, the term ``school or department of divinity'' means 
an institution whose program is specifically for the education 
of students to prepare them to become ministers of religion or 
to enter upon some other religious vocation, or to prepare them 
to teach theological subjects.
  (2) Not more than 50 percent of the allotment of any 
institution may be available for the purpose of constructing or 
maintaining a classroom, library, laboratory, or other 
instructional facility.

           *       *       *       *       *       *       *


SEC. 325. APPLICATIONS.

  (a) Contents.--No part B institution shall be entitled to its 
allotment of Federal funds for any grant under section 324 for 
any period unless that institution meets the requirements of 
subparagraphs [(C), (D), and (E)] (C) through (F) of section 
312(b)(1) and submits an application to the Secretary at such 
time, in such manner, and containing or accompanied by such 
information, as the Secretary may reasonably require. Each such 
application shall--
          (1) provide that the payments under this Act will be 
        used for the purposes set forth in section 323; and
          (2) provide for making an annual report to the 
        Secretary and provide for--
                  (A) conducting, except as provided in 
                subparagraph (B), a financial and compliance 
                audit of an eligible institution, with regard 
                to any funds obtained by it under this title at 
                least once every 2 years 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; or
                  (B) with regard to an eligible institution 
                which is audited under chapter 75 of title 31, 
                United States Code, deeming such audit to 
                satisfy the requirements of subparagraph (A) 
                for the period covered by such audit.
  (b) Approval.--The Secretary shall approve any application 
which meets the requirements of subsection (a) and shall not 
disapprove any application submitted under this part, or any 
modification thereof, without first affording such institution 
reasonable notice and opportunity for a hearing.
  (c) Goals for Financial Management and Academic Programs.--
Any application for a grant under this part shall describe 
measurable goals for the institution's financial management and 
academic programs and include a plan of how the applicant 
intends to achieve those goals.

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 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.
  (2) No grant in excess of $1,000,000 may be made under this 
section unless the postgraduate institution provides assurances 
that 50 percent of the cost of the purposes for which the grant 
is made will be paid from non-Federal sources, except that no 
institution shall be required to match any portion of the first 
$1,000,000 of the institution's award from the Secretary. After 
funds are made available to each eligible institution under the 
funding rules described in subsection (f), the Secretary shall 
distribute, on a pro rata basis, any amounts which were not so 
made available (by reason of the failure of an institution to 
comply with the matching requirements of this paragraph) among 
the institutions that have complied with such matching 
requirement.
  [(b) Duration.--Grants shall be made for a period not to 
exceed 5 years. Any funds awarded for such five-year grant 
period that are obligated during such five-year period may be 
expended during the 10-year period beginning on the first day 
of such five-year period.
  [(c) Uses of Funds.--A grant under this section may be used 
for--
          [(1) purchase, rental or lease of scientific or 
        laboratory equipment for educational purposes, 
        including instructional and research purposes;
          [(2) construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and 
        other instructional facilities, including purchase or 
        rental of telecommunications technology equipment or 
        services;
          [(3) purchase of library books, periodicals, 
        technical and other scientific journals, microfilm, 
        microfiche, and other educational materials, including 
        telecommunications program materials;
          [(4) scholarships, fellowships, and other financial 
        assistance for needy graduate and professional students 
        to permit the enrollment of the students in and 
        completion of the doctoral degree in medicine, 
        dentistry, pharmacy, veterinary medicine, law, and the 
        doctorate degree in the physical or natural sciences, 
        engineering, mathematics, or other scientific 
        disciplines in which African Americans are 
        underrepresented;
          [(5) establishing or improving a development office 
        to strengthen and increase contributions from alumni 
        and the private sector;
          [(6) assisting in the establishment or maintenance of 
        an institutional endowment to facilitate financial 
        independence pursuant to section 331;
          [(7) funds and administrative management, and the 
        acquisition of equipment, including software, for use 
        in strengthening funds management and management 
        information systems;
          [(8) acquisition of real property that is adjacent to 
        the campus in connection with the construction, 
        renovation, or addition to or improvement of campus 
        facilities;
          [(9) education or financial information designed to 
        improve the financial literacy and economic literacy of 
        students or the students' families, especially with 
        regard to student indebtedness and student assistance 
        programs under title IV;
          [(10) services necessary for the implementation of 
        projects or activities that are described in the grant 
        application and that are approved, in advance, by the 
        Secretary, except that not more than two percent of the 
        grant amount may be used for this purpose;
          [(11) tutoring, counseling, and student service 
        programs designed to improve academic success; and
          [(12) other activities proposed in the application 
        submitted under subsection (d) that--
                  [(A) contribute to carrying out the purposes 
                of this part; and
                  [(B) are approved by the Secretary as part of 
                the review and acceptance of such application.]
  (b) Duration.--The Secretary may award a grant to an eligible 
institution under this part for a period of 5 years. Any funds 
awarded under this section that are not expended or used for 
the purposes for which the funds were paid within 10 years 
following the date on which the grant was awarded, shall be 
repaid to the Treasury.
  (c) Authorized Activities.--A grant under this section may be 
used for--
          (1) the activities described in paragraphs (1) 
        through (12), (14) through (15), and (17) of section 
        311(b);
          (2) scholarships, fellowships, and other financial 
        assistance for needy graduate and professional students 
        to permit the enrollment of the students in and 
        completion of the doctoral degree in medicine, 
        dentistry, pharmacy, veterinary medicine, law, and the 
        doctorate degree in the physical or natural sciences, 
        engineering, mathematics, or other scientific 
        disciplines in which African Americans are 
        underrepresented;
          (3) acquisition of real property that is adjacent to 
        the campus in connection with the construction, 
        renovation, or addition to or improvement of campus 
        facilities;
          (4) services necessary for the implementation of 
        projects or activities that are described in the grant 
        application and that are approved, in advance, by the 
        Secretary, except that not more than two percent of the 
        grant amount may be used for this purpose; and
          (5) other activities proposed in the application 
        submitted under subsection (d) that--
                  (A) contribute to carrying out the purposes 
                of this part; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.
  (d) Application.--Any institution eligible for a grant under 
this section shall submit an application which--
          (1) demonstrates how the grant funds will be used to 
        improve graduate educational opportunities for Black 
        and low-income students, and lead to greater financial 
        independence; and
          (2) provides, in the case of applications for grants 
        in excess of $1,000,000, the assurances required by 
        subsection (a)(2) and specifies the manner in which the 
        eligible institution is going to pay the non-Federal 
        share of the cost of the application.
  (e) Eligibility.--
          (1) In general.--Independent professional or graduate 
        institutions and programs eligible for grants under 
        subsection (a) are the following:
                  (A) Morehouse School of Medicine;
                  (B) Meharry Medical School;
                  (C) Charles R. Drew Postgraduate Medical 
                School;
                  (D) Clark-Atlanta University;
                  (E) Tuskegee University School of Veterinary 
                Medicine and other qualified graduate programs;
                  (F) Xavier University School of Pharmacy and 
                other qualified graduate programs;
                  (G) Southern University School of Law and 
                other qualified graduate programs;
                  (H) Texas Southern University School of Law 
                and School of Pharmacy and other qualified 
                graduate programs;
                  (I) Florida A&M University School of 
                Pharmaceutical Sciences and other qualified 
                graduate programs;
                  (J) North Carolina Central University School 
                of Law and other qualified graduate programs;
                  (K) Morgan State University qualified 
                graduate program;
                  (L) Hampton University qualified graduate 
                program;
                  (M) Alabama A&M qualified graduate program;
                  (N) North Carolina A&T State University 
                qualified graduate program;
                  (O) University of Maryland Eastern Shore 
                qualified graduate program;
                  (P) Jackson State University qualified 
                graduate program;
                  (Q) Norfolk State University qualified 
                graduate programs;
                  (R) Tennessee State University qualified 
                graduate programs;
                  (S) Alabama State University qualified 
                graduate programs;
                  (T) Prairie View A&M University qualified 
                graduate programs;
                  (U) Delaware State University qualified 
                graduate programs;
                  (V) Langston University qualified graduate 
                programs;
                  (W) Bowie State University qualified graduate 
                programs; [and]
                  (X) University of the District of Columbia 
                David A. Clarke School of Law[.]; and
                  (Y) University of the Virgin Islands School 
                of Medicine.
          (2) Qualified graduate program.--(A) For the purposes 
        of this section, the term ``qualified graduate 
        program'' means a graduate or professional program that 
        provides a program of instruction in law or in the 
        physical or natural sciences, engineering, mathematics, 
        psychometrics, or other scientific discipline in which 
        African Americans are underrepresented and has students 
        enrolled in such program at the time of application for 
        a grant under this section.
          (B) Notwithstanding the enrollment requirement 
        contained in subparagraph (A), an institution may use 
        an amount equal to not more than 10 percent of the 
        institution's grant under this section for the 
        development of a new qualified graduate program.
          (3) Special rule.--Institutions that were awarded 
        grants under this section prior to October 1, 2008, 
        shall continue to receive such grants, subject to the 
        availability of appropriated funds, regardless of the 
        eligibility of the institutions described in 
        subparagraphs (S) through (X) of paragraph (1).
          (4) One grant per institution.--The Secretary shall 
        not award more than 1 grant under this section in any 
        fiscal year to any institution of higher education.
          (5) Institutional choice.--The president or 
        chancellor of the institution may decide which graduate 
        or professional school or qualified graduate program 
        will receive funds under the grant in any 1 fiscal 
        year, if the allocation of funds among the schools or 
        programs is delineated in the application for funds 
        submitted to the Secretary under this section.
  (f) Funding Rule.--Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year--
          (1) the first $56,900,000 (or any lesser amount 
        appropriated) shall be available only for the purposes 
        of making grants to institutions or programs described 
        in subparagraphs (A) through (R) of subsection (e)(1);
          (2) any amount in excess of $56,900,000, but not in 
        excess of $62,900,000, shall be available for the 
        purpose of making grants to institutions or programs 
        described in subparagraphs (S) through ([X] Y) of 
        subsection (e)(1); and
          (3) any amount in excess of $62,900,000, shall be 
        made available to each of the institutions or programs 
        identified in subparagraphs (A) through ([X] Y) 
        pursuant to a formula developed by the Secretary that 
        uses the following elements:
                  (A) The ability of the institution to match 
                Federal funds with non-Federal funds.
                  (B) The number of students enrolled in the 
                programs for which the eligible institution 
                received funding under this section in the 
                previous year.
                  (C) The average cost of education per 
                student, for all full-time graduate or 
                professional students (or the equivalent) 
                enrolled in the eligible professional or 
                graduate school, or for doctoral students 
                enrolled in the qualified graduate programs.
                  (D) The number of students in the previous 
                year who received their first professional or 
                doctoral degree from the programs for which the 
                eligible institution received funding under 
                this section in the previous year.
                  (E) The contribution, on a percent basis, of 
                the programs for which the institution is 
                eligible to receive funds under this section to 
                the total number of African Americans receiving 
                graduate or professional degrees in the 
                professions or disciplines related to the 
                programs for the previous year.
  (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 [2008] 2018 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 [2008] 2018, 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.
  (h) Interaction with Other Grant Programs.--No institution 
that is eligible for and receives an award under section 512, 
723, or 724 for a fiscal year shall be eligible to apply for a 
grant, or receive grant funds, under this section for the same 
fiscal year.

SEC. 327. REPORTING AND AUDIT REQUIREMENTS.

  [(a) Recordkeeping.--]Each recipient of a grant under this 
part shall keep such records as the Secretary shall prescribe, 
including records which fully disclose--
          (1) the amount and disposition by such recipient of 
        the proceeds of such assistance;
          (2) the cost of the project or undertaking in 
        connection with which such assistance is given or used;
          (3) the amount of that portion of the cost of the 
        project or undertaking supplied by other sources; and
          (4) such other records as will facilitate an 
        effective audit.
  [(b) Use of Unexpended Funds.--Any funds paid to an 
institution and not expended or used for the purposes for which 
the funds were paid during the five-year period following the 
date of the initial grant award, may be carried over and 
expended during the succeeding five-year period, if such funds 
were obligated for a purpose for which the funds were paid 
during the five-year period following the date of the initial 
grant award.]

           *       *       *       *       *       *       *


PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING

           *       *       *       *       *       *       *


SEC. 343. FEDERAL INSURANCE FOR BONDS.

  (a) General Rule.--Subject to the limitations in section 344, 
the Secretary is authorized to enter into insurance agreements 
to provide financial insurance to guarantee the full payment of 
principal and interest on qualified bonds upon the conditions 
set forth in subsections (b), (c) and (d).
  (b) Responsibilities of the Designated Bonding Authority.--
The Secretary may not enter into an insurance agreement 
described in subsection (a) unless the Secretary designates a 
qualified bonding authority in accordance with sections 345(1) 
and 346 and the designated bonding authority agrees in such 
agreement to--
          (1) use the proceeds of the qualified bonds, less 
        costs of issuance not to exceed 2 percent of the 
        principal amount thereof, to make loans to eligible 
        institutions or for deposit into [an escrow account] a 
        bond insurance fund for repayment of the bonds;
          (2) provide in each loan agreement with respect to a 
        loan that not less than 95 percent of the proceeds of 
        the loan will be used--
                  (A) to finance the repair, renovation, and, 
                in exceptional cases, construction or 
                acquisition, of a capital project; or
                  (B) to refinance an obligation the proceeds 
                of which were used to finance the repair, 
                renovation, and, in exceptional cases, 
                construction or acquisition, of a capital 
                project;
          (3)(A) charge such interest on loans, and provide for 
        such a schedule of repayments of loans, as will, upon 
        the timely repayment of the loans, provide adequate and 
        timely funds for the payment of principal and interest 
        on the bonds; and
          (B) require that any payment on a loan expected to be 
        necessary to make a payment of principal and interest 
        on the bonds be due not less than 60 days prior to the 
        date of the payment on the bonds for which such loan 
        payment is expected to be needed;
          (4) prior to the making of any loan, provide for a 
        credit review of the institution receiving the loan and 
        assure the Secretary that, on the basis of such credit 
        review, it is reasonable to anticipate that the 
        institution receiving the loan will be able to repay 
        the loan in a timely manner pursuant to the terms 
        thereof;
          (5) provide in each loan agreement with respect to a 
        loan that, if a delinquency on such loan results in a 
        funding under the insurance agreement, the institution 
        obligated on such loan shall repay the Secretary, upon 
        terms to be determined by the Secretary, for such 
        funding;
          (6) assign any loans to the Secretary, upon the 
        demand of the Secretary, if a delinquency on such loan 
        has required a funding under the insurance agreement;
          (7) in the event of a delinquency on a loan, engage 
        in such collection efforts as the Secretary shall 
        require for a period of not less than 45 days prior to 
        requesting a funding under the insurance agreement;
          (8) [establish an escrow account] subject to 
        subsection (f), establish a bond insurance fund--
                  (A) into which each eligible institution 
                shall deposit 5 percent of the proceeds of any 
                loan made under this part, with each eligible 
                institution required to maintain in [the escrow 
                account] the bond insurance fund an amount 
                equal to 5 percent of the outstanding principal 
                of all loans made to such institution under 
                this part; and
                  (B) the balance of which--
                          (i) shall be available to the 
                        Secretary to pay principal and interest 
                        on the bonds in the event of 
                        delinquency in loan repayment; and
                          (ii) shall be used to return to an 
                        eligible institution an amount equal to 
                        any remaining portion of such 
                        institution's 5 percent deposit of loan 
                        proceeds within 120 days following 
                        scheduled repayment of such 
                        institution's loan;
          (9) provide in each loan agreement with respect to a 
        loan that, if a delinquency on such loan results in 
        amounts being withdrawn from [the escrow account] the 
        bond insurance fund or the escrow account described in 
        subsection (f)(1)(B) to pay principal and interest on 
        bonds, subsequent payments on such loan shall be 
        available to replenish [such escrow account] such bond 
        insurance fund or escrow account;
          (10) comply with the limitations set forth in section 
        344 of this part;
          (11) make loans only to eligible institutions under 
        this part in accordance with conditions prescribed by 
        the Secretary to ensure that loans are fairly allocated 
        among as many eligible institutions as possible, 
        consistent with making loans of amounts that will 
        permit capital projects of sufficient size and scope to 
        significantly contribute to the educational program of 
        the eligible institutions; and
          (12) limit loan collateralization, with respect to 
        any loan made under this part, to 100 percent of the 
        loan amount, except as otherwise required by the 
        Secretary.
  (c) Additional Agreement Provisions.--Any insurance agreement 
described in subsection (a) of this section shall provide as 
follows:
          (1) The payment of principal and interest on bonds 
        shall be insured by the Secretary until such time as 
        such bonds have been retired or canceled.
          (2) The Federal liability for delinquencies and 
        default for bonds guaranteed under this part shall only 
        become effective upon the exhaustion of all the funds 
        held in [the escrow account described in subsection 
        (b)(8)] the bond insurance fund described in subsection 
        (b)(8) and the escrow account described in subsection 
        (f)(1)(B).
          (3) The Secretary shall create a letter of credit 
        authorizing the Department of the Treasury to disburse 
        funds to the designated bonding authority or its 
        assignee.
          (4) The letter of credit shall be drawn upon in the 
        amount determined by paragraph (5) of this subsection 
        upon the certification of the designated bonding 
        authority to the Secretary or the Secretary's designee 
        that there is a delinquency on 1 or more loans and 
        there are insufficient funds available from loan 
        repayments [and the escrow account], the bond insurance 
        fund, and the escrow account described in subsection 
        (f)(1)(B) to make a scheduled payment of principal and 
        interest on the bonds.
          (5) Upon receipt by the Secretary or the Secretary's 
        designee of the certification described in paragraph 
        (4) of this subsection, the designated bonding 
        authority may draw a funding under the letter of credit 
        in an amount equal to--
                  (A) the amount required to make the next 
                scheduled payment of principal and interest on 
                the bonds, less
                  (B) the amount available to the designated 
                bonding authority from loan repayments [and the 
                escrow account], the bond insurance fund, and 
                the escrow account described in subsection 
                (f)(1)(B).
          (6) All funds provided under the letter of credit 
        shall be paid to the designated bonding authority 
        within 2 business days following receipt of the 
        certification described in paragraph (4).
  (d) Full Faith and Credit Provisions.--Subject to section 
343(c)(1) the full faith and credit of the United States is 
pledged to the payment of all funds which may be required to be 
paid under the provisions of this section.
  (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.
  (f) Applicability of Bond Insurance Fund and Escrow Account 
and Special Rules.--
          (1) Applicability of bond insurance fund and escrow 
        account.--Except as provided in paragraph (2)--
                  (A) the bond insurance fund established under 
                subsection (b)(8) on the date of enactment of 
                the PROSPER Act shall be made available with 
                respect to loans made under this part on or 
                after such date; and
                  (B) the escrow account established under 
                subsection (b)(8) before the date of enactment 
                of the PROSPER Act and as in effect on the day 
                before such date of enactment shall be made 
                available with respect to loans made under this 
                part before the date of enactment of the 
                PROSPER Act.
          (2) Special rules.--Notwithstanding paragraph (1)--
                  (A) in a case in which the amount in the bond 
                insurance fund described in paragraph (1)(A) is 
                insufficient to make payments of principal and 
                interest on bonds under subsection (b)(8)(B)(i) 
                in the event of delinquency in loan repayment 
                on loans made under this part on or after the 
                date of enactment of the PROSPER Act, amounts 
                in the escrow fund described in paragraph 
                (1)(B) shall be made available to the Secretary 
                to make such payments;
                  (B) in a case in which the amount in the 
                escrow account described in paragraph (1)(B) is 
                insufficient to make payments of principal and 
                interest on bonds under subsection (b)(8)(B)(i) 
                in the event of delinquency in loan repayment 
                on loans made under this part before the date 
                of enactment of the PROSPER Act, amounts in the 
                bond insurance fund described in paragraph 
                (1)(A) shall be made available to the Secretary 
                to make such payments; and
                  (C) in a case in which an institution is 
                required to return an amount equal to any 
                remaining portion of such institution's 5 
                percent deposit of loan proceeds under 
                subsection (b)(8)(B)(ii), the institution shall 
                return to the escrow account and the bond 
                insurance fund an amount that is proportionate 
                to the amount that was withdrawn from the 
                escrow account and the bond insurance fund, 
                respectively, by such institution.

           *       *       *       *       *       *       *


SEC. 345. AUTHORITY OF THE SECRETARY.

   In the performance of, and with respect to, the functions 
vested in the Secretary by this part, the Secretary--
          (1) shall, within 120 days of the date of enactment 
        of the Higher Education Opportunity Act, publish in the 
        Federal Register a notice and request for proposals for 
        any private for-profit organization or entity wishing 
        to serve as the designated bonding authority under this 
        part, which notice shall--
                  (A) specify the time and manner for 
                submission of proposals; and
                  (B) specify any information, qualifications, 
                criteria, or standards the Secretary determines 
                to be necessary to evaluate the financial 
                capacity and administrative capability of any 
                applicant to carry out the responsibilities of 
                the designated bonding authority under this 
                part;
          (2) shall ensure that--
                  (A) the selection process for the designated 
                bonding authority is conducted on a competitive 
                basis; and
                  (B) the evaluation and selection process is 
                transparent;
          (3) shall--
                  (A) review the performance of the designated 
                bonding authority after the third year of the 
                insurance agreement; and
                  (B) following the review described in 
                subparagraph (A), implement a revised 
                competitive selection process, if determined 
                necessary by the Secretary in consultation with 
                the Advisory Board established pursuant to 
                section 347;
          (4) shall require that the first loans for capital 
        projects authorized under section 343 be made no later 
        than March 31, 1994;
          (5) may sue and be sued in any court of record of a 
        State having general jurisdiction or in any district 
        court of the United States, and such district courts 
        shall have jurisdiction of civil actions arising under 
        this part without regard to the amount in controversy, 
        and any action instituted under this part without 
        regard to the amount in controversy, and any action 
        instituted under this section by or against the 
        Secretary shall survive notwithstanding any change in 
        the person occupying the office of the Secretary or any 
        vacancy in such office;
          (6)(A) may foreclose on any property and bid for and 
        purchase at any foreclosure, or any other sale, any 
        property in connection with which the Secretary has 
        been assigned a loan pursuant to this part; and
          (B) in the event of such an acquisition, 
        notwithstanding any other provisions of law relating to 
        the acquisition, handling, or disposal of real property 
        by the United States, complete, administer, remodel and 
        convert, dispose of, lease, and otherwise deal with, 
        such property, except that--
                  (i) such action shall not preclude any other 
                action by the Secretary to recover any 
                deficiency in the amount of a loan assigned to 
                the Secretary; and
                  (ii) any such acquisition of real property 
                shall not deprive any State or political 
                subdivision thereof of its civil or criminal 
                jurisdiction in and over such property or 
                impair the civil rights under the State or 
                local laws of the inhabitants on such property;
          (7) may sell, exchange, or lease real or personal 
        property and securities or obligations;
          (8) may include in any contract such other covenants, 
        conditions, or provisions necessary to ensure that the 
        purposes of this part will be achieved;
          [(9) may, directly or by grant or contract, provide 
        technical assistance to eligible institutions to 
        prepare the institutions to qualify, apply for, and 
        maintain a capital improvement loan, including a loan 
        under this part; and]
          (9) may, directly or by grant or contract, provide 
        financial counseling and technical assistance to 
        eligible institutions to prepare the institutions to 
        qualify, apply for, and maintain a capital improvement 
        loan, including a loan under this part; and
          (10) not later than 120 days after the date of 
        enactment of the Higher Education Opportunity Act, 
        shall submit to the authorizing committees a report on 
        the progress of the Department in implementing the 
        recommendations made by the Government Accountability 
        Office in October 2006 for improving the Historically 
        Black College and Universities Capital Financing 
        Program.

SEC. 347. HBCU CAPITAL FINANCING ADVISORY BOARD.

  (a) Establishment and Purpose.--There is established within 
the Department of Education, the Historically Black College and 
Universities Capital Financing Advisory Board (hereinafter in 
this part referred to as the ``Advisory Board'') which shall 
provide advice and counsel to the Secretary and the designated 
bonding authority as to the most effective and efficient means 
of implementing construction financing on African American 
college campuses, and advise the Congress of the United States 
regarding the progress made in implementing this part. The 
Advisory Board shall meet with the Secretary at least twice 
each year to advise him as to the capital needs of historically 
Black colleges and universities, how those needs can be met 
through the program authorized by this part, and what 
additional steps might be taken to improve the operation and 
implementation of the construction financing program.
  (b) Board Membership.--
          (1) Composition.--The Advisory Board shall be 
        appointed by the Secretary and shall be composed of 11 
        members as follows:
                  (A) The Secretary or the Secretary's 
                designee.
                  (B) Three members who are presidents of 
                private historically Black colleges or 
                universities.
                  (C) Three members who are presidents of 
                public historically Black colleges or 
                universities.
                  (D) The president of the United Negro College 
                Fund, Inc., or the president's designee.
                  (E) The president of the National Association 
                for Equal Opportunity in Higher Education, or 
                the designee of the Association.
                  (F) The executive director of the White House 
                Initiative on historically Black colleges and 
                universities.
                  (G) The president of the Thurgood Marshall 
                College Fund, or the designee of the president.
          (2) Terms.--The term of office of each member 
        appointed under paragraphs (1)(B) and (1)(C) shall be 3 
        years, except that--
                  (A) of the members first appointed pursuant 
                to paragraphs (1)(B) and (1)(C), 2 shall be 
                appointed for terms of 1 year, and 3 shall be 
                appointed for terms of 2 years;
                  (B) members appointed to fill a vacancy 
                occurring before the expiration of a term of a 
                member shall be appointed to serve the 
                remainder of that term; and
                  (C) a member may continue to serve after the 
                expiration of a term until a successor is 
                appointed.
  (c) Additional Recommendations from Advisory Board.--
          (1) In general.--In addition to the responsibilities 
        of the Advisory Board described in subsection (a), the 
        Advisory Board shall advise the Secretary and the 
        authorizing committees regarding--
                  (A) the fiscal status and strategic financial 
                condition of not less than ten historically 
                Black colleges and universities that have--
                          (i) obtained construction financing 
                        through the program under this part and 
                        seek additional financing or 
                        refinancing under such program; or
                          (ii) applied for construction 
                        financing through the program under 
                        this part but have not received 
                        financing under such program; and
                  (B) the feasibility of reducing borrowing 
                costs associated with the program under this 
                part, including reducing interest rates.
          [(2) Report.--Not later than six months after the 
        date of enactment of theHigher Education Opportunity 
        Act, the Advisory Board shall prepare and submit a 
        report to the authorizing committees regarding the 
        historically Black colleges and universities described 
        in paragraph (1)(A) that includes administrative and 
        legislative recommendations for addressing the issues 
        related to construction financing facing such 
        historically Black colleges and universities.]
          (2) Report.--On an annual basis, the Advisory Board 
        shall prepare and submit to the authorizing committees 
        a report on the status of the historically Black 
        colleges and universities described in paragraph (1)(A) 
        and an overview of all loans in the capital financing 
        program, including the most recent loans awarded in the 
        fiscal year in which the report is submitted. The 
        report shall include administrative and legislative 
        recommendations, as needed, for addressing the issues 
        related to construction financing facing historically 
        Black colleges and universities.

           *       *       *       *       *       *       *


      PART E--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM

Subpart 1--Minority Science and Engineering Improvement Program

           *       *       *       *       *       *       *


SEC. 353. USE OF FUNDS.

  (a) Types of Grants.--Funds appropriated to carry out this 
subpart may be made available as--
          (1) institutional grants (as defined in section 
        [365(6)] 359(6));
          (2) cooperative grants (as defined in section 
        [365(7)] 359(7));
          (3) design projects (as defined in section [365(8)] 
        359(8)); or
          (4) special projects (as defined in section [365(9)] 
        359(9)).
  (b) Authorized Uses for Each Type of Grant.--(1) The 
authorized uses of funds made available as institutional grants 
include (but are not limited to)--
          (A) faculty development programs; or
          (B) development of curriculum materials.
  (2) The authorized uses of funds made available as 
cooperative grants include (but are not limited to)--
          (A) assisting institutions in sharing facilities and 
        personnel;
          (B) disseminating information about established 
        programs in science and engineering;
          (C) supporting cooperative efforts to strengthen the 
        institutions' science and engineering programs; or
          (D) carrying out a combination of any of the 
        activities in subparagraphs (A) through (C).
  (3) The authorized uses of funds made available as design 
projects include (but are not limited to)--
          (A) developing planning, management, and evaluation 
        systems; or
          (B) developing plans for initiating scientific 
        research and for improving institutions' capabilities 
        for such activities.
Funds used for design project grants may not be used to pay 
more than 50 percent of the salaries during any academic year 
of faculty members involved in the project.
  (4) The authorized uses of funds made available as special 
projects include (but are not limited to)--
          (A) advanced science seminars;
          (B) science faculty workshops and conferences;
          (C) faculty training to develop specific science 
        research or education skills;
          (D) research in science education;
          (E) programs for visiting scientists;
          (F) preparation of films or audio-visual materials in 
        science;
          (G) development of learning experiences in science 
        beyond those normally available to minority 
        undergraduate students;
          (H) development of pre-college enrichment activities 
        in science; or
          (I) any other activities designed to address specific 
        barriers to the entry of minorities into science.

                  [Subpart 2--Programs in STEM Fields

[SEC. 355. YES PARTNERSHIPS GRANT PROGRAM.

  [(a) Grant Program Authorized.--Subject to the availability 
of appropriations to carry out this subpart, the Secretary 
shall make grants to eligible partnerships (as described in 
subsection (f)) to support the engagement of underrepresented 
minority youth and youth who are low-income individuals (as 
such term is defined in section 312) in science, technology, 
engineering, and mathematics through outreach and hands-on, 
experiential-based learning projects that encourage students in 
kindergarten through grade 12 who are underrepresented minority 
youth or low-income individuals to pursue careers in science, 
technology, engineering, and mathematics.
  [(b) Minimum Grant Amount.--A grant awarded to a partnership 
under this subpart shall be for an amount that is not less than 
$500,000.
  [(c) Duration.--A grant awarded under this subpart shall be 
for a period of five years.
  [(d) Non-Federal Matching Share Required.--A partnership 
receiving a grant under this subpart shall provide, from non-
Federal sources, in cash or in-kind, an amount equal to 50 
percent of the costs of the project supported by such grant.
  [(e) Distribution of Grants.--In awarding grants under this 
subpart, the Secretary shall ensure that, to the maximum extent 
practicable, the projects funded under this subpart are located 
in diverse geographic regions of the United States.
  [(f) Eligible Partnerships.--Notwithstanding the general 
eligibility provision in section 361, eligibility to receive 
grants under this subpart is limited to partnerships described 
in paragraph (5) of such section.

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

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

[SEC. 357. EVALUATION AND ACCOUNTABILITY PLAN.

  [The Secretary shall develop an evaluation and accountability 
plan for projects funded under this subpart. Such plan shall 
include, if the Secretary determines that it is practical, an 
objective measure of the impact of such projects, such as a 
measure of whether underrepresented minority student enrollment 
in courses related to science, technology, engineering, and 
mathematics increases at the secondary and postsecondary 
levels.]

          Subpart [3] 2--Administrative and General Provisions

SEC. [361.]  355. ELIGIBILITY FOR GRANTS.

   Eligibility to receive grants under this part is limited 
to--
          (1) public and private nonprofit institutions of 
        higher education that--
                  (A) award baccalaureate degrees; and
                  (B) are minority institutions;
          (2) public or private nonprofit institutions of 
        higher education that--
                  (A) award associate degrees; and
                  (B) are minority institutions that--
                          (i) have a curriculum that includes 
                        science or engineering subjects; and
                          (ii) enter into a partnership with 
                        public or private nonprofit 
                        institutions of higher education that 
                        award baccalaureate degrees in science 
                        and engineering;
          (3) nonprofit science-oriented organizations, 
        professional scientific societies, and institutions of 
        higher education that award baccalaureate degrees, 
        that--
                  (A) provide a needed service to a group of 
                minority institutions; or
                  (B) provide in-service training for project 
                directors, scientists, and engineers from 
                minority institutions;
          (4) consortia of organizations, that provide needed 
        services to one or more minority institutions, the 
        membership of which may include--
                  (A) public and private nonprofit institutions 
                of higher education which have a curriculum in 
                science or engineering;
                  (B) institutions of higher education that 
                have a graduate or professional program in 
                science or engineering;
                  (C) research laboratories of, or under 
                contract with, the Department of Energy, the 
                Department of Defense, or the National 
                Institutes of Health;
                  (D) relevant offices of the National 
                Aeronautics and Space Administration, National 
                Oceanic and Atmospheric Administration, 
                National Science Foundation, and National 
                Institute of Standards and Technology;
                  (E) quasi-governmental entities that have a 
                significant scientific or engineering mission; 
                or
                  (F) institutions of higher education that 
                have State-sponsored centers for research in 
                science, technology, engineering, and 
                mathematics; or
          [(5) only with respect to grants under subpart 2, 
        partnerships of organizations, the membership of which 
        shall include--
                  [(A) at least one institution of higher 
                education eligible for assistance under this 
                title or title V;
                  [(B) at least one high-need local educational 
                agency (as defined in section 200); and
                  [(C) at least two community organizations or 
                entities, such as businesses, professional 
                associations, community-based organizations, 
                philanthropic organizations, or State 
                agencies.]

SEC. [362.]  356. GRANT APPLICATION.

  (a) Submission and Contents of Applications.--An eligible 
applicant (as [determined under section 361)] determined under 
section 355) that desires to receive a grant under this part 
shall submit to the Secretary an application therefor at such 
time or times, in such manner, and containing such information 
as the Secretary may prescribe by regulation. Such application 
shall set forth--
          (1) a program of activities for carrying out one or 
        more of the purposes described in section 351(b) in 
        such detail as will enable the Secretary to determine 
        the degree to which such program will accomplish such 
        purpose or purposes; and
          (2) such other policies, procedures, and assurances 
        as the Secretary may require by regulation.
  (b) Approval Based on Likelihood of Progress.--The Secretary 
shall approve an application only if the Secretary determines 
that the application sets forth a program of activities which 
are likely to make substantial progress toward achieving the 
purposes of this part.

SEC. [363.]  357. CROSS PROGRAM AND CROSS AGENCY COOPERATION.

  The Minority Science and Engineering Improvement Programs 
shall cooperate and consult with other programs within the 
Department and within Federal, State, and private agencies 
which carry out programs to improve the quality of science, 
mathematics, and engineering education.

SEC. [364.]  358. ADMINISTRATIVE PROVISIONS.

  (a) Technical Staff.--The Secretary shall appoint, without 
regard to the provisions of title 5 of the United States Code 
governing appointments in the competitive service, not less 
than 2 technical employees with appropriate scientific and 
educational background to administer the programs under this 
part who 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.
  (b) Procedures for Grant Review.--The Secretary shall 
establish procedures for reviewing and evaluating grants and 
contracts made or entered into under such programs. Procedures 
for reviewing grant applications, based on the peer review 
system, or contracts for financial assistance under this title 
may not be subject to any review outside of officials 
responsible for the administration of the Minority Science and 
Engineering Improvement Programs.

SEC. [365.]  359. DEFINITIONS.

   For the purpose of this part--
          (1) The term ``accredited'' means currently certified 
        by a nationally recognized accrediting agency or making 
        satisfactory progress toward achieving accreditation.
          (2) The term ``minority'' means American Indian, 
        Alaskan Native, Black American (not of Hispanic 
        origin), [Hispanic (including] Hispanic American 
        (including persons of Mexican, Puerto Rican, Cuban, and 
        Central or South American origin), Pacific Islander or 
        other ethnic group underrepresented in science and 
        engineering.
          (3) The term ``minority institution'' means an 
        institution of higher education whose enrollment of a 
        single minority or a combination of minorities (as 
        defined in paragraph (2)) exceeds 50 percent of the 
        total enrollment. The Secretary shall verify this 
        information from the data on enrollments in the higher 
        education general information surveys (HEGIS) furnished 
        by the institution to the Office for Civil Rights, 
        Department of Education.
          (4) The term ``science'' means, for the purpose of 
        this program, the biological, engineering, 
        mathematical, physical, behavioral, and social 
        sciences, and history and philosophy of science; also 
        included are interdisciplinary fields which are 
        comprised of overlapping areas among two or more 
        sciences.
          (5) The term ``underrepresented in science and 
        engineering'' means a minority group whose number of 
        scientists and engineers per 10,000 population of that 
        group is substantially below the comparable figure for 
        scientists and engineers who are white and not of 
        Hispanic origin.
          (6) The term ``institutional grant'' means a grant 
        that supports the implementation of a comprehensive 
        science improvement plan, which may include any 
        combination of activities for improving the preparation 
        of minority students for careers in science.
          (7) The term ``cooperative grant'' means a grant that 
        assists groups of nonprofit accredited colleges and 
        universities to work together to conduct a science 
        improvement program.
          (8) The term ``design projects'' means projects that 
        assist minority institutions that do not have their own 
        appropriate resources or personnel to plan and develop 
        long-range science improvement programs.
          (9) The term ``special projects'' means--
                  (A) a special project grant to a minority 
                institution which supports activities that--
                          (i) improve the quality of training 
                        in science and engineering at minority 
                        institutions; or
                          (ii) enhance the minority 
                        institutions' general scientific 
                        research capabilities; or
                  (B) a special project grant to any eligible 
                applicant which supports activities that--
                          (i) provide a needed service to a 
                        group of eligible minority 
                        institutions; or
                          (ii) provide in-service training for 
                        project directors, scientists, and 
                        engineers from eligible minority 
                        institutions.

PART F--STRENGTHENING HISTORICALLY BLACK COLLEGES AND UNIVERSITIES AND 
                  OTHER MINORITY-SERVING INSTITUTIONS

SEC. 371. INVESTMENT IN HISTORICALLY BLACK COLLEGES AND UNIVERSITIES 
                    AND OTHER MINORITY-SERVING INSTITUTIONS.

  (a) Eligible Institution.--An institution of higher education 
is eligible to receive funds from the amounts made available 
under this section if such institution is--
          (1) a part B institution (as defined in section 322 
        (20 U.S.C. 1061));
          (2) a Hispanic-serving institution (as defined in 
        section 502 (20 U.S.C. 1101a));
          (3) a Tribal College or University (as defined in 
        section 316 (20 U.S.C. 1059c));
          (4) an Alaska Native-serving institution or a Native 
        Hawaiian-serving institution (as defined in section 
        317(b) (20 U.S.C. 1059d(b)));
          (5) a Predominantly Black Institution (as defined in 
        subsection (c));
          (6) an Asian American and Native American Pacific 
        Islander-serving institution (as defined in subsection 
        (c)); or
          (7) a Native American-serving nontribal institution 
        (as defined in subsection (c)).
  (b) New Investment of Funds.--
          (1) In general.--
                  (A) Provision of funds.--There shall be 
                available to the Secretary to carry out this 
                section, from funds in the Treasury not 
                otherwise appropriated, $255,000,000 for each 
                of the fiscal years 2008 through 2019. The 
                authority to award grants under this section 
                shall expire at the end of fiscal year 2019.
                  (B) Availability.--Funds made available under 
                subparagraph (A) for a fiscal year shall remain 
                available for the next succeeding fiscal year.
          (2) Allocation and allotment.--
                  (A) In general.--Of the amounts made 
                available under paragraph (1) for each fiscal 
                year--
                          (i) $100,000,000 shall be available 
                        for allocation under subparagraph (B);
                          (ii) $100,000,000 shall be available 
                        for allocation under subparagraph (C); 
                        and
                          (iii) $55,000,000 shall be available 
                        for allocation under subparagraph (D).
                  (B) HSI stem and articulation programs.--The 
                amount made available for allocation under this 
                subparagraph by subparagraph (A)(i) for any 
                fiscal year shall be available for Hispanic-
                serving Institutions for activities described 
                in section 503, with a priority given to 
                applications that propose--
                          (i) to increase the number of 
                        Hispanic and other low income students 
                        attaining degrees in the fields of 
                        science, technology, engineering, or 
                        mathematics; and
                          (ii) to develop model transfer and 
                        articulation agreements between 2-year 
                        Hispanic-serving institutions and 4-
                        year institutions in such fields.
                  (C) Allocation and allotment hbcus and 
                pbis.--From the amount made available for 
                allocation under this subparagraph by 
                subparagraph (A)(ii) for any fiscal year--
                          (i) 85 percent shall be available to 
                        eligible institutions described in 
                        subsection (a)(1) and shall be made 
                        available as grants under section 323 
                        and allotted among such institutions 
                        under section 324, treating such 
                        amount, plus the amount appropriated 
                        for such fiscal year in a regular or 
                        supplemental appropriation Act to carry 
                        out part B of this title, as the amount 
                        appropriated to carry out part B of 
                        this title for purposes of allotments 
                        under section 324, for use by such 
                        institutions with a priority for--
                                  (I) activities described in 
                                paragraphs (1), (2), (4), (5), 
                                and (10) of section 323(a); and
                                  (II) other activities, 
                                consistent with the 
                                institution's comprehensive 
                                plan and designed to increase 
                                the institution's capacity to 
                                prepare students for careers in 
                                the physical or natural 
                                sciences, mathematics, computer 
                                science or information 
                                technology or sciences, 
                                engineering, language 
                                instruction in the less-
                                commonly taught languages or 
                                international affairs, or 
                                nursing or allied health 
                                professions; and
                          (ii) 15 percent shall be available to 
                        eligible institutions described in 
                        subsection (a)(5) and shall be 
                        available for a competitive grant 
                        program to award 25 grants of $600,000 
                        annually for programs in any of the 
                        following areas:
                                  (I) science, technology, 
                                engineering, or mathematics 
                                (STEM);
                                  (II) health education;
                                  (III) internationalization or 
                                globalization;
                                  (IV) teacher preparation; or
                                  (V) improving educational 
                                outcomes of African American 
                                males.
                  (D) Allocation and allotment to other 
                minority-serving institutions.--From the amount 
                made available for allocation under this 
                subparagraph by subparagraph (A)(iii) for any 
                fiscal year--
                          (i) $30,000,000 for such fiscal year 
                        shall be available to eligible 
                        institutions described in subsection 
                        (a)(3) and shall be made available as 
                        grants under section 316, treating such 
                        $30,000,000 as part of the amount 
                        appropriated for such fiscal year in a 
                        regular or supplemental appropriation 
                        Act to carry out such section, and 
                        using such $30,000,000 for purposes 
                        described in subsection (c) of such 
                        section;
                          (ii) $15,000,000 for such fiscal year 
                        shall be available to eligible 
                        institutions described in subsection 
                        (a)(4) and shall be made available as 
                        grants under section 317, treating such 
                        $15,000,000 as part of the amount 
                        appropriated for such fiscal year in a 
                        regular or supplemental appropriation 
                        Act to carry out such section and using 
                        such $15,000,000 for purposes described 
                        in subsection (c) of such section;
                          (iii) $5,000,000 for such fiscal year 
                        shall be available to eligible 
                        institutions described in subsection 
                        (a)(6) for activities described in 
                        [section 311(c)] section 311(b); and
                          (iv) $5,000,000 for such fiscal year 
                        shall be available to eligible 
                        institutions described in subsection 
                        (a)(7)--
                                  (I) to plan, develop, 
                                undertake, and carry out 
                                activities to improve and 
                                expand such institutions' 
                                capacity to serve Native 
                                Americans, which may include--
                                          (aa) the purchase, 
                                        rental, or lease of 
                                        scientific or 
                                        laboratory equipment 
                                        for educational 
                                        purposes, including 
                                        instructional and 
                                        research purposes;
                                          (bb) renovation and 
                                        improvement in 
                                        classroom, library, 
                                        laboratory, and other 
                                        instructional 
                                        facilities;
                                          (cc) support of 
                                        faculty exchanges, 
                                        faculty development, 
                                        and faculty fellowships 
                                        to assist faculty in 
                                        attaining advanced 
                                        degrees in the 
                                        faculty's field of 
                                        instruction;
                                          (dd) curriculum 
                                        development and 
                                        academic instruction;
                                          (ee) the purchase of 
                                        library books, 
                                        periodicals, microfilm, 
                                        and other educational 
                                        materials;
                                          (ff) funds and 
                                        administrative 
                                        management, and 
                                        acquisition of 
                                        equipment for use in 
                                        strengthening funds 
                                        management;
                                          (gg) the joint use of 
                                        facilities such as 
                                        laboratories and 
                                        libraries; and
                                          (hh) academic 
                                        tutoring and counseling 
                                        programs and student 
                                        support services; and
                                  (II) to which the Secretary, 
                                to the extent possible and 
                                consistent with a competitive 
                                process under which such grants 
                                are awarded, allocates funds 
                                under this clause to ensure 
                                maximum and equitable 
                                distribution among all such 
                                eligible institutions.
  (c) Definitions.--
          (1) Asian american.--The term ``Asian American'' has 
        the meaning given the term ``Asian'' in the Office of 
        Management and Budget's Standards for Maintaining, 
        Collecting, and Presenting Federal Data on Race and 
        Ethnicity as published on October 30, 1997 (62 Fed. 
        Reg. 58789).
          (2) Asian american and native american pacific 
        islander-serving institution.--The term ``Asian 
        American and Native American Pacific Islander-serving 
        institution'' means an institution of higher education 
        that--
                  (A) is an eligible institution under section 
                312(b); and
                  (B) at the time of application, has an 
                enrollment of undergraduate students that is at 
                least 10 percent Asian American and Native 
                American Pacific Islander students.
          (3) Enrollment of needy students.--The term 
        ``enrollment of needy students'' means the enrollment 
        at an institution of higher education with respect to 
        which not less than 50 percent of the undergraduate 
        students enrolled in an academic program leading to a 
        degree--
                  (A) in the second fiscal year preceding the 
                fiscal year for which the determination is 
                made, were Federal Pell Grant recipients for 
                such year;
                  (B) come from families that receive benefits 
                under a means-tested Federal benefit program 
                (as defined in paragraph (5));
                  (C) attended a public or nonprofit private 
                secondary school--
                          (i) that is in the school district of 
                        a local educational agency that was 
                        eligible for assistance under part A of 
                        title I of the Elementary and Secondary 
                        Education Act of 1965 for any year 
                        during which the student attended such 
                        secondary school; and
                          (ii) which for the purpose of this 
                        paragraph and for that year was 
                        determined by the Secretary (pursuant 
                        to regulations and after consultation 
                        with the State educational agency of 
                        the State in which the school is 
                        located) to be a school in which the 
                        enrollment of children counted under a 
                        measure of poverty described in section 
                        1113(a)(5) of such Act exceeds 30 
                        percent of the total enrollment of such 
                        school; or
                  (D) are first-generation college students (as 
                that term is defined in section 402A(h)), and a 
                majority of such first-generation college 
                students are low-income individuals.
          (4) Low-income individual.--The term ``low-income 
        individual'' has the meaning given such term in section 
        402A(h).
          (5) Means-tested federal benefit program.--The term 
        ``means-tested Federal benefit program'' means a 
        program of the Federal Government, other than a program 
        under title IV, in which eligibility for the programs' 
        benefits or the amount of such benefits are determined 
        on the basis of income or resources of the individual 
        or family seeking the benefit.
          (6) Native american.--The term ``Native American'' 
        means an individual who is of a tribe, people, or 
        culture that is indigenous to the United States.
          (7) Native american pacific islander.--The term 
        ``Native American Pacific Islander'' means any 
        descendant of the aboriginal people of any island in 
        the Pacific Ocean that is a territory or possession of 
        the United States.
          (8) Native american-serving nontribal institution.--
        The term ``Native American-serving nontribal 
        institution'' means an institution of higher education 
        that--
                  (A) at the time of application--
                          (i) has an enrollment of 
                        undergraduate students that is not less 
                        than 10 percent Native American 
                        students; and
                          (ii) is not a Tribal College or 
                        University (as defined in section 316); 
                        and
                  (B) submits to the Secretary such enrollment 
                data as may be necessary to demonstrate that 
                the institution is described in subparagraph 
                (A), along with such other information and data 
                as the Secretary may by regulation require.
          (9) Predominantly black institution.--The term 
        ``Predominantly Black institution'' means an 
        institution of higher education that--
                  (A) has an enrollment of needy students as 
                defined by paragraph (3);
                  (B) has an average educational and general 
                expenditure which is low, per full-time 
                equivalent undergraduate student in comparison 
                with the average educational and general 
                expenditure per full-time equivalent 
                undergraduate student of institutions of higher 
                education that offer similar instruction, 
                except that the Secretary may apply the waiver 
                requirements described in section 392(b) to 
                this subparagraph in the same manner as the 
                Secretary applies the waiver requirements to 
                section 312(b)(1)(B);
                  (C) has an enrollment of undergraduate 
                students--
                          (i) that is at least 40 percent Black 
                        American students;
                          (ii) that is at least 1,000 
                        undergraduate students;
                          (iii) of which not less than 50 
                        percent of the undergraduate students 
                        enrolled at the institution are low-
                        income individuals or first-generation 
                        college students (as that term is 
                        defined in section 402A(h)); and
                          (iv) of which not less than 50 
                        percent of the undergraduate students 
                        are enrolled in an educational program 
                        leading to a bachelor's or associate's 
                        degree that the institution is licensed 
                        to award by the State in which the 
                        institution is located;
                  (D) is legally authorized to provide, and 
                provides within the State, an educational 
                program for which the institution of higher 
                education awards a bachelor's degree, or in the 
                case of a junior or community college, an 
                associate's degree;
                  (E) is accredited by a nationally recognized 
                accrediting agency or association determined by 
                the Secretary to be a reliable authority as to 
                the quality of training offered, or is, 
                according to such an agency or association, 
                making reasonable progress toward 
                accreditation; and
                  (F) is not receiving assistance under--
                          (i) part B;
                          (ii) [part A of] title V; or
                          (iii) an annual authorization of 
                        appropriations under the Act of March 
                        2, 1867 (14 Stat. 438; 20 U.S.C. 123).

                       Part G--General Provisions

SEC. 391. APPLICATIONS FOR ASSISTANCE.

  (a) Applications.--
          (1) Applications required.--Any institution which is 
        eligible for assistance under this title shall submit 
        to the Secretary an application for assistance at such 
        time, in such form, and containing such information, as 
        may be necessary to enable the Secretary to evaluate 
        the institution's need for the assistance. Subject to 
        the availability of appropriations to carry out this 
        title, the Secretary may approve an application for 
        assistance under this title only if the Secretary 
        determines that--
                  (A) the application meets the requirements of 
                subsection (b);
                  (B) the applicant is eligible for assistance 
                in accordance with the part of this title under 
                which the assistance is sought; and
                  (C) the applicant's performance goals are 
                sufficiently rigorous as to meet the purposes 
                of this title and the performance objectives 
                and indicators for this title established by 
                the Secretary pursuant to the Government 
                Performance and Results Act of 1993 and the 
                amendments made by such Act.
          (2) Preliminary applications.--In carrying out 
        paragraph (1), the Secretary may develop a preliminary 
        application for use by eligible institutions applying 
        under part A prior to the submission of the principal 
        application.
  (b) Contents.--An institution, in its application for a 
grant, shall--
          (1) set forth, or describe how the institution (other 
        than an institution applying under part C, D or E) will 
        develop, a comprehensive development plan to strengthen 
        the institution's academic quality and [institutional 
        management, and otherwise provide for institutional 
        self-sufficiency and growth (including measurable 
        objectives for the institution and the Secretary to use 
        in monitoring the effectiveness of activities under 
        this title);] institutional management, and use the 
        grant to provide for, and lead to, institutional self-
        sustainability and growth (including measurable 
        objectives for the institution and the Secretary to use 
        in monitoring the effectiveness of activities under 
        this title);
          (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 
        311(b) or 323, and in no case supplant those funds;
          (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;
          (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 applicant under this title;
          (5) provide (A) for making such reports, in such form 
        and containing such information, as the Secretary may 
        require to carry out the functions under this title, 
        including not less than one report annually setting 
        forth the institution's progress toward achieving the 
        objectives for which the funds were awarded, and (B) 
        for keeping such records and affording such access 
        thereto, as the Secretary may find necessary to assure 
        the correctness and verification of such reports;
          (6) provide that the institution will comply with the 
        limitations set forth in section 396, except that for 
        purposes of section 316, paragraphs (2) and (3) of 
        section 396 shall not apply;
          (7) describe in a comprehensive manner any proposed 
        project for which funds are sought under the 
        application and include--
                  (A) a description of the various components 
                of the proposed project, including the 
                estimated time required to complete each such 
                component;
                  (B) in the case of any development project 
                which consists of several components (as 
                described by the applicant pursuant to 
                subparagraph (A)), a statement identifying 
                those components which, if separately funded, 
                would be sound investments of Federal funds and 
                those components which would be sound 
                investments of Federal funds only if funded 
                under this title in conjunction with other 
                parts of the development project (as specified 
                by the applicant);
                  [(C) an evaluation by the applicant of the 
                priority given any proposed project for which 
                funds are sought in relation to any other 
                projects for which funds are sought by the 
                applicant under this title, and a similar 
                evaluation regarding priorities among the 
                components of any single proposed project (as 
                described by the applicant pursuant to 
                subparagraph (A));]
                  [(D)] (C) a detailed budget showing the 
                manner in which funds for any proposed project 
                would be spent by the applicant; and
                  [(E)] (D) a detailed description of any 
                activity which involves the expenditure of more 
                than $25,000, as identified in the budget 
                referred to in subparagraph (D); [and]
          [(8) include such other information as the Secretary 
        may prescribe.]
          (8) set forth a 5-year plan for improving the 
        assistance provided by the institution; and
          (9) submit such enrollment data as may be necessary 
        to demonstrate that the institution is a minority-
        serving institution.
  (c) Priority Criteria Publication Required.--The Secretary 
shall publish in the Federal Register, pursuant to chapter 5 of 
title 5, United States Code, all policies and procedures 
required to exercise the authority set forth in subsection (a). 
No other criteria, policies, or procedures shall apply.
  (d) Eligibility Data.--The Secretary shall use the most 
recent and relevant data concerning the number and percentage 
of students receiving need-based assistance under title IV of 
this Act in making eligibility determinations under section 312 
and shall advance the base-year forward following each annual 
grant cycle.
  (e) Technical Assistance.--The Secretary, directly or by 
grant or contract, may provide technical assistance to eligible 
institutions to prepare the institutions to qualify, apply for, 
and maintain a grant, under this title.

SEC. 392. WAIVER AUTHORITY AND REPORTING REQUIREMENT.

  (a) Waiver Requirements; Need-Based Assistance Students.--The 
Secretary may waive the requirements set forth in section 
312(b)(1)(A) in the case of an institution--
          (1) which is extensively subsidized by the State in 
        which it is located and charges low or no tuition;
          (2) which serves a substantial number of low-income 
        students as a percentage of its total student 
        population;
          (3) which is contributing substantially to increasing 
        higher education opportunities for educationally 
        disadvantaged, underrepresented, or minority students, 
        who are low-income individuals;
          (4) which is substantially increasing higher 
        educational opportunities for individuals in rural or 
        other isolated areas which are unserved by 
        postsecondary institutions;
          (5) located on or near an Indian reservation or a 
        substantial population of Indians, if the Secretary 
        determines that the waiver will substantially increase 
        higher education opportunities appropriate to the needs 
        of American Indians;
          (6) that is a tribally controlled college or 
        university as defined in section 2 of the Tribally 
        Controlled Colleges and Universities Assistance Act of 
        1978; or
          (7) wherever located, if the Secretary determines 
        that the waiver will substantially increase higher 
        education opportunities appropriate to the needs of 
        Black Americans, Hispanic Americans, Native Americans, 
        Asian Americans, or Pacific Islanders, including Native 
        Hawaiians.
  (b) Waiver Determinations; Expenditures; Completion Rates.--
(1) The Secretary may waive the requirements set forth in 
section 312(b)(1)(B) or 312(b)(3) if the Secretary determines, 
based on persuasive evidence submitted by the institution, that 
the institution's failure to meet that criterion is due to 
factors which, when used in the determination of compliance 
with such criterion, distort such determination, and that the 
institution's designation as an eligible institution under part 
A is otherwise consistent with the purposes of such parts.
  (2) The Secretary shall submit to the Congress every other 
year a report concerning the institutions which, although not 
satisfying the criterion contained in section 312(b)(1)(B) or 
312(b)(3), have been determined to be eligible institutions 
under part A which enroll significant numbers of Black 
American, Hispanic American, Native American, Asian American, 
or Native Hawaiian students under part A, as the case may be. 
Such report shall--
          (A) identify the factors referred to in paragraph (1) 
        which were considered by the Secretary as factors that 
        distorted the determination of compliance with 
        subparagraphs (A) and (B) of section 312(b)(1) or 
        section 312(b)(3); and
          (B) contain a list of each institution determined to 
        be an eligible institution under part A including a 
        statement of the reasons for each such determination.
  (3) The Secretary may waive the requirement set forth in 
section 312(b)(1)(E) in the case of an institution located on 
or near an Indian reservation or a substantial population of 
Indians, if the Secretary determines that the waiver will 
substantially increase higher education opportunities 
appropriate to the needs of American Indians.
  [(c) Waiver Authority With Respect to Institutions Located in 
an Area Affected by a Gulf Hurricane Disaster.--
          [(1) Waiver authority.--Notwithstanding any other 
        provision of law, unless enacted with specific 
        reference to this section, for any affected institution 
        that was receiving assistance under this title at the 
        time of a Gulf hurricane disaster, the Secretary shall, 
        for each of the fiscal years 2009 through 2011 (and 
        may, for each of the fiscal years 2012 and 2013)--
                  [(A) waive--
                          [(i) the eligibility data 
                        requirements set forth in section 
                        391(d);
                          [(ii) the wait-out period set forth 
                        in section 313(d);
                          [(iii) the allotment requirements 
                        under section 324; and
                          [(iv) the use of the funding formula 
                        developed pursuant to section 
                        326(f)(3);
                  [(B) waive or modify any statutory or 
                regulatory provision to ensure that affected 
                institutions that were receiving assistance 
                under this title at the time of a Gulf 
                hurricane disaster are not adversely affected 
                by any formula calculation for fiscal year 2009 
                or for any of the four succeeding fiscal years, 
                as necessary; and
                  [(C) make available to each affected 
                institution an amount that is not less than the 
                amount made available to such institution under 
                this title for fiscal year 2006, except that 
                for any fiscal year for which the funds 
                appropriated for payments under this title are 
                less than the appropriated level for fiscal 
                year 2006, the amount made available to such 
                institutions shall be ratably reduced among the 
                institutions receiving funds under this title.
          [(2) Definitions.--In this subsection:
                  [(A) Affected institution.--The term 
                ``affected institution'' means an institution 
                of higher education that--
                          [(i) is--
                                  [(I) a part A institution 
                                (which term shall have the 
                                meaning given the term 
                                ``eligible institution'' under 
                                section 312(b)); or
                                  [(II) a part B institution, 
                                as such term is defined in 
                                section 322(2), or as 
                                identified in section 326(e);
                          [(ii) is located in an area affected 
                        by a Gulf hurricane disaster; and
                          [(iii) is able to demonstrate that, 
                        as a result of the impact of a Gulf 
                        hurricane disaster, the institution--
                                  [(I) incurred physical 
                                damage;
                                  [(II) has pursued collateral 
                                source compensation from 
                                insurance, the Federal 
                                Emergency Management Agency, 
                                and the Small Business 
                                Administration, as appropriate; 
                                and
                                  [(III) was not able to fully 
                                reopen in existing facilities 
                                or to fully reopen to the pre-
                                hurricane enrollment levels 
                                during the 30-day period 
                                beginning on August 29, 2005.
                  [(B) Area affected by a gulf hurricane 
                disaster; gulf hurricane disaster.--The terms 
                ``area affected by a Gulf hurricane disaster'' 
                and ``Gulf hurricane disaster'' have the 
                meanings given such terms in section 209 of the 
                Higher Education Hurricane Relief Act of 2005 
                (Public Law 109-148, 119 Stat. 2809).]
  (c) Waiver Authority With Respect to Institutions Located in 
an Area Affected by a Major Disaster.--
          (1) Waiver authority.--Notwithstanding any other 
        provision of law, unless enacted with specific 
        reference to this section, in the case of a major 
        disaster, the Secretary may waive for affected 
        institutions--
                  (A) the eligibility data requirements set 
                forth in section 391(d) and section 521(e);
                  (B) the allotment requirements under section 
                324; and
                  (C) the use of the funding formula developed 
                pursuant to section 326(f)(3);
          (2) Definitions.--In this subsection:
                  (A) Affected institution.--The term 
                ``affected institution'' means an institution 
                of higher education that--
                          (i) is--
                                  (I) a part A institution 
                                (which term shall have the 
                                meaning given the term 
                                ``eligible institution'' under 
                                section 312(b) or section 
                                502(a)(6)); or
                                  (II) a part B institution, as 
                                such term is defined in section 
                                322(2), or as identified in 
                                section 326(e);
                          (ii) is located in an area affected 
                        by a major disaster; and
                          (iii) is able to demonstrate that, as 
                        a result of the impact of a major 
                        disaster, the institution--
                                  (I) incurred physical damage;
                                  (II) has pursued collateral 
                                source compensation from 
                                insurance, the Federal 
                                Emergency Management Agency, 
                                and the Small Business 
                                Administration, as appropriate; 
                                and
                                  (III) was not able to fully 
                                reopen in existing facilities 
                                or to fully reopen to the pre-
                                disaster enrollment levels.
                  (B) Major disaster.--The term ``major 
                disaster'' has the meaning given such term in 
                section 102(2) of the Robert T. Stafford 
                Disaster Relief and Emergency Assistance Act 
                (42 U.S.C. 5122(2)).

           *       *       *       *       *       *       *


SEC. 399. AUTHORIZATIONS OF APPROPRIATIONS.

  [(a) Authorizations.--
          [(1) Part a.--(A) There are authorized to be 
        appropriated to carry out part A (other than sections 
        316 through 320), $135,000,000 for fiscal year 2009, 
        and such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(B) There are authorized to be appropriated to carry 
        out section 316, $30,000,000 for fiscal year 2009, and 
        such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(C) There are authorized to be appropriated to carry 
        out section 317, $15,000,000 for fiscal year 2009, and 
        such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(D) There are authorized to be appropriated to carry 
        out section 318, $75,000,000 for fiscal year 2009 and 
        each of the five succeeding fiscal years.
          [(E) There are authorized to be appropriated to carry 
        out section 319, $25,000,000 for fiscal year 2009, and 
        such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(F) There are authorized to be appropriated to carry 
        out section 320, $30,000,000 for fiscal year 2009, and 
        such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(2) Part b.--(A) There are authorized to be 
        appropriated to carry out part B (other than section 
        326), $375,000,000 for fiscal year 2009, and such sums 
        as may be necessary for each of the five succeeding 
        fiscal years.
          [(B) There are authorized to be appropriated to carry 
        out section 326, $125,000,000 for fiscal year 2009, and 
        such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(3) Part c.--There are authorized to be appropriated 
        to carry out part C, $10,000,000 for fiscal year 2009, 
        and such sums as may be necessary for each of the five 
        succeeding fiscal years.
          [(4) Part d.--(A) There are authorized to be 
        appropriated to carry out part D (other than section 
        345(9), but including section 347), $185,000 for fiscal 
        year 2009, and such sums as may be necessary for each 
        of the five succeeding fiscal years.
          [(B) There are authorized to be appropriated to carry 
        out section 345(9) such sums as may be necessary for 
        fiscal year 2009 and each of the five succeeding fiscal 
        years.
          [(5) Part e.--(A) There are authorized to be 
        appropriated to carry out subpart 1 of part E, 
        $12,000,000 for fiscal year 2009, and such sums as may 
        be necessary for each of the five succeeding fiscal 
        years.
          [(B) There are authorized to be appropriated to carry 
        out subpart 2 of part E, such sums as may be necessary 
        for fiscal year 2009 and each of the five succeeding 
        fiscal years.]
  (a) Authorizations.--
          (1) Part a.--(A) There are authorized to be 
        appropriated to carry out section 316, $27,599,000 for 
        each of fiscal years 2019 through 2024.
          (B) There are authorized to be appropriated to carry 
        out section 317, $13,802,000 for each of fiscal years 
        2019 through 2024.
          (C) There are authorized to be appropriated to carry 
        out section 318, $9,942,000 for each of fiscal years 
        2019 through 2024.
          (D) There are authorized to be appropriated to carry 
        out section 319, $3,348,000 for each of fiscal years 
        2019 through 2024.
          (E) There are authorized to be appropriated to carry 
        out section 320, $3,348,000 for each of fiscal years 
        2019 through 2024.
          (2) Part b.--(A) There are authorized to be 
        appropriated to carry out part B (other than section 
        326), $244,694,000 for each of fiscal years 2019 
        through 2024.
          (B) There are authorized to be appropriated to carry 
        out section 326, $63,281,000 for each of fiscal years 
        2019 through 2024.
          (3) Part d.--There are authorized to be appropriated 
        to carry out part D, $20,484,000 for each of fiscal 
        years 2019 through 2024. Of the amount authorized, 1.63 
        percent shall be reserved for administrative expenses.
          (4) Part e.--There are authorized to be appropriated 
        to carry out subpart 1 of part E, $9,648,000 for each 
        of fiscal years 2019 through 2024.
  (b) Use of Multiple Year Awards.--In the event of a multiple 
year award to any institution under this title, the Secretary 
shall make funds available for such award from funds 
appropriated for this title for the fiscal year in which such 
funds are to be used by the recipient.

           *       *       *       *       *       *       *


                      TITLE IV--STUDENT ASSISTANCE

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

           *       *       *       *       *       *       *


                     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 2017] fiscal year 2024, 
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 eligible program 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) Grants made under this subpart shall be known as 
``Federal Pell Grants''.
  (b) Purpose and Amount of Grants.--(1) The purpose of this 
subpart is to provide a Federal Pell Grant that in combination 
with reasonable family and student contribution and 
supplemented by the programs authorized under subparts 3 and 4 
of this part, will meet at least 75 percent of a student's cost 
of attendance (as defined in section 472), unless the 
institution determines that a greater amount of assistance 
would better serve the purposes of this section.
  (2)
          (A) The amount of the Federal Pell Grant for a 
        student eligible under this part shall be--
                  (i) the maximum Federal Pell Grant, as 
                specified in the last enacted appropriation Act 
                applicable to that award year, plus
                  (ii) the amount of the increase calculated 
                under paragraph (7)(B) for that year, less
                  (iii) an amount equal to the amount 
                determined to be the expected family 
                contribution with respect to that student for 
                that year.
  (B) In any case where a student attends an institution of 
higher education on less than a full-time basis (including a 
student who attends an institution of higher education on less 
than a half-time basis) during any academic year, the amount of 
the Federal Pell Grant to which that student is entitled shall 
be reduced in proportion to the degree to which that student is 
not so attending on a full-time basis, in accordance with a 
schedule of reductions established by the Secretary for the 
purposes of this division, computed in accordance with this 
subpart. Such schedule of reductions shall be established by 
regulation and published in the Federal Register in accordance 
with section 482 of this Act.
  (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.
  (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 ten percent of the maximum amount of a Federal Pell Grant 
award determined under paragraph (2)(A) for such academic year.
  (5) 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 maximum amount of a 
Federal Pell Grant award determined under paragraph (2)(A), for 
which a student is eligible during such award 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.
  (6) 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 
forcible or nonforcible sexual offense (as determined in 
accordance with the Federal Bureau of Investigation's Uniform 
Crime Reporting Program).
          (7) Additional funds.--
                  (A) In general.--There are authorized to be 
                appropriated, and there are appropriated (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) $2,030,000,000 for fiscal year 
                        2008;
                          (ii) $2,090,000,000 for fiscal year 
                        2009;
                          (iii) to carry out subparagraph (B) 
                        of this paragraph and paragraph (9), 
                        such sums as may be necessary for 
                        fiscal year 2010 and each subsequent 
                        fiscal year to provide the amount of 
                        increase of the maximum Federal Pell 
                        Grant required by clauses (ii) and 
                        (iii) of subparagraph (B) and to 
                        provide the additional amount required 
                        by paragraph (9); and
                          (iv) to carry out this section--
                                  (I) $13,500,000,000 for 
                                fiscal year 2011;
                                  (II) $13,795,000,000 for 
                                fiscal year 2012;
                                  (III) $7,587,000,000 for 
                                fiscal year 2013;
                                  (IV) $588,000,000 for fiscal 
                                year 2014;
                                  (V) $0 for fiscal year 2015;
                                  (VI) $0 for fiscal year 2016;
                                  (VII) $1,320,000,000 for 
                                fiscal year 2017;
                                  (VIII) $1,382,000,000 for 
                                fiscal year 2018;
                                  (IX) $1,409,000,000 for 
                                fiscal year 2019;
                                  (X) $1,430,000,000 for fiscal 
                                year 2020; and
                                  (XI) $1,145,000,000 for 
                                fiscal year 2021 and each 
                                succeeding fiscal year.
                  (B) Increase in federal pell grants.--The 
                amounts made available pursuant to clauses (i) 
                through (iii) of subparagraph (A) of this 
                paragraph shall be used to increase the amount 
                of the maximum Federal 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) $490 for each of the award years 
                        2008-2009 and 2009-2010;
                          (ii) $690 for each of the award years 
                        2010-2011, 2011-2012, and 2012-2013; 
                        and
                          (iii) the amount determined under 
                        subparagraph (C) for each succeeding 
                        award year.
                  (C) Adjustment amounts.--
                          (i) Award year 2013-2014.--For award 
                        year 2013-2014, the amount determined 
                        under this subparagraph for purposes of 
                        subparagraph (B)(iii) shall be equal 
                        to--
                                  (I) $5,550 or the total 
                                maximum Federal Pell Grant for 
                                the preceding award year (as 
                                determined under clause 
                                (iv)(II)), whichever is 
                                greater, increased by a 
                                percentage equal to the annual 
                                adjustment percentage for award 
                                year 2013-2014, reduced by
                                  (II) $4,860 or the maximum 
                                Federal Pell Grant for which a 
                                student was eligible for the 
                                preceding award year, as 
                                specified in the last enacted 
                                appropriation Act applicable to 
                                that year, whichever is 
                                greater; and
                                  (III) rounded to the nearest 
                                $5.
                          (ii) Award years 2014-2015 through 
                        2017-2018.--For each of the award years 
                        2014-2015 through 2017-2018, the amount 
                        determined under this subparagraph for 
                        purposes of subparagraph (B)(iii) shall 
                        be equal to--
                                  (I) the total maximum Federal 
                                Pell Grant for the preceding 
                                award year (as determined under 
                                clause (iv)(II)), increased by 
                                a percentage equal to the 
                                annual adjustment percentage 
                                for the award year for which 
                                the amount under this 
                                subparagraph is being 
                                determined, reduced by
                                  (II) $4,860 or the maximum 
                                Federal Pell Grant for which a 
                                student was eligible for the 
                                preceding award year, as 
                                specified in the last enacted 
                                appropriation Act applicable to 
                                that year, whichever is 
                                greater; and
                                  (III) rounded to the nearest 
                                $5.
                          (iii) Subsequent award years.--For 
                        award year 2018-2019 and each 
                        subsequent award year, the amount 
                        determined under this subparagraph for 
                        purposes of subparagraph (B)(iii) shall 
                        be equal to the amount determined under 
                        clause (ii) for award year 2017-2018.
                          (iv) Definitions.--For purposes of 
                        this subparagraph--
                                  (I) the term ``annual 
                                adjustment percentage'' as 
                                applied to an award year, is 
                                equal to the estimated 
                                percentage change in the 
                                Consumer Price Index (as 
                                determined by the Secretary, 
                                using the definition in section 
                                478(f)) for the most recent 
                                calendar year ending prior to 
                                the beginning of that award 
                                year; and
                                  (II) the term ``total maximum 
                                Federal Pell Grant'' as applied 
                                to a preceding award year, is 
                                equal to the sum of--
                                          (aa) the maximum 
                                        Federal Pell Grant for 
                                        which a student is 
                                        eligible during an 
                                        award year, as 
                                        specified in the last 
                                        enacted appropriation 
                                        Act applicable to that 
                                        preceding award year; 
                                        and
                                          (bb) the amount of 
                                        the increase in the 
                                        maximum Federal Pell 
                                        Grant required by this 
                                        paragraph for that 
                                        preceding award year.
                  (D) Program requirements and operations 
                otherwise unaffected.--Except as provided in 
                subparagraphs (B) and (C), nothing in this 
                paragraph shall be construed to alter the 
                requirements and operations of the Federal Pell 
                Grant Program as authorized under this section, 
                or authorize the imposition of additional 
                requirements or operations for the 
                determination and allocation of Federal Pell 
                Grants under this section.
                  (E) Ratable increases and decreases.--The 
                amounts specified in subparagraph (B) shall be 
                ratably increased or decreased to the extent 
                that funds available under subparagraph (A) 
                exceed or are less than (respectively) the 
                amount required to provide the amounts 
                specified in subparagraph (B).
                  (F) Availability of funds.--The amounts made 
                available by subparagraph (A) for any fiscal 
                year shall be available beginning on October 1 
                of that fiscal year, and shall remain available 
                through September 30 of the succeeding fiscal 
                year.
          (8)(A) Effective in the 2017-2018 award year and 
        thereafter, the Secretary shall award an eligible 
        student not more than one and one-half Federal Pell 
        Grants during a single award year to permit such 
        student to work toward completion of an eligible 
        program if, during that single award year, the 
        student--
                          (i) has received a Federal Pell Grant 
                        for an award year and is enrolled in an 
                        eligible program for one or more 
                        additional payment periods during the 
                        same award year that are not otherwise 
                        fully covered by the student's Federal 
                        Pell Grant; and
                          (ii) is enrolled on at least a half-
                        time basis while receiving any funds 
                        under this section.
                  (B) In the case of a student receiving more 
                than one Federal Pell Grant in a single award 
                year under subparagraph (A), the total amount 
                of Federal Pell Grants awarded to such student 
                for the award year may exceed the maximum basic 
                grant level specified in the appropriate 
                appropriations Act for such award year.
                  (C) Any period of study covered by a Federal 
                Pell Grant awarded under subparagraph (A) shall 
                be included in determining a student's duration 
                limit under subsection (c)(5).
                  (D) In any case where an eligible student is 
                receiving a Federal Pell Grant for a payment 
                period that spans two award years, the 
                Secretary shall allow the eligible institution 
                in which the student is enrolled to determine 
                the award year to which the additional period 
                shall be assigned, as it determines is most 
                beneficial to students.
          (9) Federal pell grant bonus.--
                  (A) In general.--Notwithstanding any other 
                provision of this subsection and from the 
                amounts made available pursuant to paragraph 
                (7)(A)(iii) for the purposes of this paragraph, 
                an eligible student who is receiving a Federal 
                Pell Grant for an award year shall receive an 
                amount in addition to such Federal Pell Grant 
                for each payment period of such award year for 
                which the student--
                          (i) is receiving such Federal Pell 
                        Grant as long as the amount of such 
                        Federal Pell Grant does not exceed the 
                        maximum amount of a Federal Pell Grant 
                        award determined under paragraph (2)(A) 
                        for such award year; and
                          (ii) is carrying a work load that--
                                  (I) is greater than the 
                                normal full-time work load for 
                                the course of study the student 
                                is pursuing, as determined by 
                                the institution of higher 
                                education; and
                                  (II) will lead to the 
                                completion of not less than 30 
                                credit hours (or the equivalent 
                                coursework) upon the completion 
                                of the final payment period for 
                                which the student is receiving 
                                the Federal Pell Grant 
                                described in clause (i).
                  (B) Amount of bonus.--The amount provided to 
                an eligible student under subparagraph (A) for 
                an award year may not exceed $300, which shall 
                be equally divided among each payment period of 
                such award year described in clauses (i) and 
                (ii) of subparagraph (A).
  (c) Period of Eligibility for Grants.--(1) 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.
  (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 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.
  (3) No student is entitled to receive Pell Grant payments 
concurrently from more than one institution or from the 
Secretary and an institution.
  (4) Notwithstanding paragraph (1), the Secretary may allow, 
on a case-by-case basis, a student to receive a basic grant if 
the student--
          (A) is carrying at least one-half the normal full-
        time work load for the course of study the student is 
        pursuing, as determined by the institution of higher 
        education; and
          (B) is enrolled or accepted for enrollment in a 
        postbaccalaureate program that does not lead to a 
        graduate degree, and in 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 this paragraph shall not apply to a student who is 
enrolled in an institution of higher education that offers a 
baccalaureate degree in education.
  (5) The period during which a student may receive Federal 
Pell Grants shall not exceed 12 semesters, or the equivalent of 
12 semesters, as determined by the Secretary by regulation. 
Such regulations shall provide, with respect to a student who 
received a Federal Pell Grant for a term but was enrolled at a 
fraction of full-time, that only that same fraction of such 
semester or equivalent shall count towards such duration 
limits.
  (6)(A) The Secretary shall issue to each student receiving a 
Federal Pell Grant, an annual status report which shall--
          (i) inform the student of the remaining period during 
        which the student may receive Federal Pell Grants in 
        accordance with paragraph (5), and provide access to a 
        calculator to assist the student in making such 
        determination;
          (ii) include an estimate of the Federal Pell Grant 
        amounts which may be awarded for such remaining period 
        based on the student's award amount determined under 
        subsection (b)(2)(A) for the most recent award year;
          (iii) explain how the estimate was calculated and any 
        assumptions underlying the estimate;
          (iv) explain that the estimate may be affected if 
        there is a change--
                  (I) in the student's financial circumstances; 
                or
                  (II) the availability of Federal funding; and
          (v) describe how the remaining period during which 
        the student may receive Federal Pell Grants will be 
        affected by whether the student is enrolled as a full-
        time student.
  (B) Nothing in this paragraph shall be construed to prohibit 
an institution from offering additional counseling to a student 
with respect to Federal Pell Grants, but such counseling shall 
not delay or impede disbursement of a Federal Pell Grant award 
to the student.
  (d) Applications for Grants.--(1) The Secretary shall from 
time to time set dates by which students shall file 
applications for Federal Pell Grants under this subpart.
  (2) Each student desiring a Federal Pell Grant for any year 
shall file an application therefor containing such information 
and assurances as the Secretary may deem necessary to enable 
the Secretary to carry out the functions and responsibilities 
of this subpart.
  (e) Distribution of Grants to Students.--[Payments under this 
section shall be made in accordance with regulations 
promulgated by the Secretary for such purpose, in such manner 
as will best accomplish the purpose of this section.] Payments 
under this section shall be made in the same manner as 
disbursements under section 465(a). Any disbursement allowed to 
be made by crediting the student's account shall be limited to 
tuition and fees and, in the case of institutionally owned 
housing, room and board. The student may elect to have the 
institution provide other such goods and services by crediting 
the student's account.
  (f) Calculation of Eligibility.--(1) Each contractor 
processing applications for awards under this subpart 
(including a central processor, if any, designated by the 
Secretary) shall, in a timely manner, furnish to the student 
financial aid administrator (at each institution of higher 
education which a student awarded a Federal Pell Grant under 
this subpart is attending), as a part of its regular output 
document, the expected family contribution for each such 
student. Each such student financial aid administrator shall--
          (A) examine and assess the data used to calculate the 
        expected family contribution of the student furnished 
        pursuant to this subsection;
          (B) recalculate the expected family contribution of 
        the student if there has been a change in circumstances 
        of the student or in the data submitted;
          (C) make the award to the student in the correct 
        amount; and
          (D) after making such award report the corrected data 
        to such contractor and to a central processor (if any) 
        designated by the Secretary for a confirmation of the 
        correct computation of amount of the expected family 
        contribution for each such student.
  (2) Whenever a student receives an award under this subpart 
that, due to recalculation errors by the institution of higher 
education, is in excess of the amount which the student is 
entitled to receive under this subpart, such institution of 
higher education shall pay to the Secretary the amount of such 
excess unless such excess can be resolved in a subsequent 
disbursement to the institution.
  (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 of the Senate, the Committee on Appropriations 
of the House of Representatives, and the authorizing 
committees.
  (g) Insufficient Appropriations.--If, for any fiscal year, 
the funds appropriated for payments under this subpart are 
insufficient to satisfy fully all entitlements, as calculated 
under subsection (b) (but at the maximum grant level specified 
in such appropriation), the Secretary shall promptly transmit a 
notice of such insufficiency to each House of the Congress, and 
identify in such notice the additional amount that would be 
required to be appropriated to satisfy fully all entitlements 
(as so calculated at such maximum grant level).
  (h) Use of Excess Funds.--(1) If, at the end of a fiscal 
year, the funds available for making payments under this 
subpart exceed the amount necessary to make the payments 
required under this subpart to eligible students by 15 percent 
or less, then all of the excess funds shall remain available 
for making payments under this subpart during the next 
succeeding fiscal year.
  (2) If, at the end of a fiscal year, the funds available for 
making payments under this subpart exceed the amount necessary 
to make the payments required under this subpart to eligible 
students by more than 15 percent, then all of such funds shall 
remain available for making such payments but payments may be 
made under this paragraph only with respect to entitlements for 
that fiscal year.
  (i) Treatment of Institutions and Students Under Other 
Laws.--Any institution of higher education which enters into an 
agreement with the Secretary to disburse to students attending 
that institution the amounts those students are eligible to 
receive under this subpart shall not be deemed, by virtue of 
such agreement, a contractor maintaining a system of records to 
accomplish a function of the Secretary. Recipients of Pell 
Grants shall not be considered to be individual grantees for 
purposes of subtitle D of title V of Public Law 100-690.
  (j) Institutional Ineligibility Based on Default Rates.--
          (1) In general.--No institution of higher education 
        shall be an eligible institution for purposes of this 
        subpart if such institution of higher education is 
        ineligible to participate in a loan program under part 
        B or D as a result of a final default rate 
        determination made by the Secretary under part B or D 
        after the final publication of cohort default rates for 
        fiscal year 1996 or a succeeding fiscal year.
          (2) Sanctions subject to appeal opportunity.--No 
        institution may be subject to the terms of this 
        subsection unless the institution has had the 
        opportunity to appeal the institution's default rate 
        determination under regulations issued by the Secretary 
        for the loan program authorized under part B or D, as 
        applicable. This subsection shall not apply to an 
        institution that was not participating in the loan 
        program authorized under part B or D on the date of 
        enactment of the Higher Education Amendments of 1998, 
        unless the institution subsequently participates in the 
        loan programs.
          (3) Sunset.--The provisions of this subsection shall 
        not apply after the transition period described in 
        section 481B(e)(3).
  (k) Prevention of Fraud.--
          (1) Prohibition of awards.--
                  (A) In general.--No Federal Pell Grant shall 
                be awarded under this subpart to any student 
                who--
                          (i) received a Federal Pell Grant for 
                        3 award years; and
                          (ii) for each such award year, was 
                        enrolled in an institution of higher 
                        education and did not earn any academic 
                        credit for which the Federal Pell Grant 
                        was provided.
                  (B) Waiver.--The student financial aid 
                administrator at an institution of higher 
                education may waive the requirement of 
                subparagraph (A) for a student, if the 
                financial aid administrator--
                          (i) determines that the student was 
                        unable to earn any academic credit as 
                        described in subparagraph (A)(ii) due 
                        to circumstances beyond the student's 
                        control; and
                          (ii) makes and documents such a 
                        determination on an individual student 
                        basis.
                  (C) Definition of circumstances beyond a 
                student's control.--For purposes of this 
                paragraph, the term ``circumstances beyond the 
                student's control'', when used with respect to 
                an individual student--
                          (i) may include the student 
                        withdrawing from an institution of 
                        higher education due to illness; and
                          (ii) shall not include the student 
                        withdrawing from an institution of 
                        higher education to avoid a particular 
                        grade.
          (2) Secretarial discretion to stop awards.--With 
        respect to a student who receives a disbursement of a 
        Federal Pell Grant for a payment period of an award 
        year and whom the Secretary determines has had an 
        unusual enrollment history, the Secretary may prevent 
        such student from receiving any additional 
        disbursements of such Federal Pell Grant for such award 
        year until the student financial aid administrator at 
        the student's institution of higher education 
        determines that the student's enrollment history should 
        not be considered an unusual enrollment history.
  (l) Report on Costs of Federal Pell Grant Program.--Not later 
than October 31 of each year, the Secretary shall prepare and 
submit a report to the authorizing committees that includes the 
following information with respect to spending for the Federal 
Pell Grant program for the preceding fiscal year:
          (1) The total obligations and expenditures for the 
        program for such fiscal year.
          (2) A comparison of the total obligations and 
        expenditures for the program for such fiscal year--
                  (A) to the most recently available 
                Congressional Budget Office baseline for the 
                program; and
                  (B) in the case in which such fiscal year is 
                fiscal year 2019, 2020, 2021, 2022, 2023, or 
                2024, to the Congressional Budget Office cost 
                estimate for the program included in the report 
                of the Committee on Education and the Workforce 
                of the House of Representatives accompanying 
                the PROSPER Act, as approved by the Committee.
          (3) The total obligations and expenditures for the 
        maximum Federal Pell Grant for which a student is 
        eligible, as specified in the last enacted 
        appropriation Act applicable to such fiscal year.
          (4) A comparison of the total obligations and 
        expenditures for the maximum Federal Pell Grant for 
        which a student is eligible, as specified in the last 
        enacted appropriation Act applicable to such fiscal 
        year--
                  (A) to the most recently available 
                Congressional Budget Office baseline for such 
                maximum Federal Pell Grant; and
                  (B) in the case in which such fiscal year is 
                fiscal year 2019, 2020, 2021, 2022, 2023, or 
                2024, to the Congressional Budget Office cost 
                estimate for such maximum Federal Pell Grant 
                included in the report of the Committee on 
                Education and the Workforce of the House of 
                Representatives accompanying the PROSPER Act, 
                as approved by the Committee.
          (5) The total mandatory obligations and expenditures 
        for the amount of the increase in such maximum Federal 
        Pell Grant required by subsection (b)(7)(B) for such 
        fiscal year.
          (6) A comparison of the total mandatory obligations 
        and expenditures for the amount of the increase in such 
        maximum Federal Pell Grant required by subsection 
        (b)(7)(B)--
                  (A) to the most recently available 
                Congressional Budget Office baseline for the 
                increase; and
                  (B) in the case in which such fiscal year is 
                fiscal year 2019, 2020, 2021, 2022, 2023, or 
                2024, to the Congressional Budget Office cost 
                estimate for the increase included in the 
                report of the Committee on Education and the 
                Workforce of the House of Representatives 
                accompanying the PROSPER Act, as approved by 
                the Committee.
          (7) The total mandatory obligations and expenditures 
        for the Federal Pell Grant Bonus required by subsection 
        (b)(9) for such fiscal year.
          (8) A comparison of the total mandatory obligations 
        and expenditures for the Federal Pell Grant Bonus 
        required by subsection (b)(9) for such fiscal year--
                  (A) to the most recently available 
                Congressional Budget Office baseline for such 
                bonus; and
                  (B) in the case in which such fiscal year is 
                fiscal year 2019, 2020, 2021, 2022, 2023, or 
                2024, to the Congressional Budget Office cost 
                estimate for such bonus included in the report 
                of the Committee on Education and the Workforce 
                of the House of Representatives accompanying 
                the PROSPER Act, as approved by the Committee.
  (m) Report and Study on Federal Pell Grant Bonus.--
          (1) Report.--
                  (A) In general.--The Secretary shall report 
                annually, in accordance with subparagraph (C), 
                on the Federal Pell Grant Bonus required by 
                subsection (b)(9).
                  (B) Elements.--Each report required under 
                subparagraph (A) shall include an assessment of 
                the following:
                          (i) The number of students who 
                        received the Federal Pell Grant Bonus 
                        under subsection (b)(9).
                          (ii) Of the students counted under 
                        clause (i)--
                                  (I) the number of such 
                                students who obtained a degree 
                                or certificate within the 
                                normal time to completion for 
                                the program for which the 
                                Federal Pell Grant Bonus was 
                                awarded; and
                                  (II) the number of such 
                                students who obtained a degree 
                                or certificate--
                                          (aa) within 4 years 
                                        of beginning the 
                                        program of study for 
                                        which the Federal Pell 
                                        Grant Bonus was 
                                        awarded;
                                          (bb) within 5 years 
                                        of beginning such 
                                        program of study; and
                                          (cc) within 6 years 
                                        of beginning such 
                                        program of study.
                  (C) Submission of reports.--
                          (i) Initial report.--Not later than 
                        one year after the first cohort of 
                        students described in subparagraph 
                        (B)(i) is expected to complete their 
                        program of study, the Secretary shall 
                        submit to the authorizing committees an 
                        initial report under subparagraph (A).
                          (ii) Annual updates.--On an annual 
                        basis, the Secretary shall update the 
                        report under subparagraph (A) and 
                        submit the updated report to the 
                        authorizing committees.
          (2) Study.--Not later than 18 months after the date 
        of the submission of the initial report under paragraph 
        (1)(C)(i), the Comptroller General of the United States 
        shall complete a study on the impact of the Federal 
        Pell Grant Bonus required under subsection (b)(9). The 
        study shall include an assessment of the following:
                  (A) Of the students who received the Federal 
                Pell Grant Bonus, the number of such students 
                who had a lower volume of student loans upon 
                completion of their program of study compared 
                to students who received a Federal Pell Grant 
                but did not receive the Federal Pell Grant 
                Bonus.
                  (B) Whether students who received the Federal 
                Pell Grant Bonus took an increased courseload 
                as a result of the availability of the Federal 
                Pell Grant Bonus.
                  (C) The completion rate of students who 
                received the Federal Pell Grant Bonus compared 
                to the completion rate of students who did not 
                receive the bonus.

[SEC. 401A. ACADEMIC COMPETITIVENESS GRANTS.

  [(a) Academic Competitiveness Grant Program Authorized.--The 
Secretary shall award grants, in the amounts specified in 
subsection (d)(1), to eligible students to assist the eligible 
students in paying their college education expenses.
  [(b) Designation.--A grant under this section--
          [(1) for the first or second year of a program of 
        undergraduate education shall be known as an ``Academic 
        Competitiveness Grant''; and
          [(2) for the third, fourth, or fifth year of a 
        program of undergraduate education shall be known as a 
        ``National Science and Mathematics Access to Retain 
        Talent Grant'' or a ``National SMART Grant''.
  [(c) Definition of Eligible Student.--In this section the 
term ``eligible student'' means a student who, for the award 
year for which the determination of eligibility is made for a 
grant under this section--
          [(1) is eligible for a Federal Pell Grant;
          [(2) is enrolled or accepted for enrollment in an 
        institution of higher education on not less than a 
        half-time basis; and
          [(3) in the case of a student enrolled or accepted 
        for enrollment in--
                  [(A) the first year of a program of 
                undergraduate education at a two- or four-year 
                degree-granting institution of higher education 
                (including a program of not less than one year 
                for which the institution awards a 
                certificate)--
                          [(i)(I) successfully completes, after 
                        January 1, 2006, but before July 1, 
                        2009, a rigorous secondary school 
                        program of study established by a State 
                        or local educational agency and 
                        recognized as such by the Secretary; or
                          [(II) successfully completes, on or 
                        after July 1, 2009, a rigorous 
                        secondary school program of study that 
                        prepares students for college--
                                  [(aa)(AA) that is recognized 
                                as such by the official 
                                designated for such recognition 
                                consistent with State law; and
                                  [(BB) about which the 
                                designated official has 
                                reported to the Secretary, at 
                                such time as the Secretary may 
                                reasonably require, in order to 
                                assist financial aid 
                                administrators to determine 
                                that the student is an eligible 
                                student under this section; or
                                  [(bb) that is recognized as 
                                such by the Secretary in 
                                regulations promulgated to 
                                carry out this section, as such 
                                regulations were in effect on 
                                May 6, 2008; and
                          [(ii) has not been previously 
                        enrolled in a program of undergraduate 
                        education, except as part of a 
                        secondary school program of study;
                  [(B) the second year of a program of 
                undergraduate education at a two- or four-year 
                degree-granting institution of higher education 
                (including a program of not less than two years 
                for which the institution awards a 
                certificate)--
                          [(i)(I) successfully completes, after 
                        January 1, 2005, but before July 1, 
                        2009, a rigorous secondary school 
                        program of study established by a State 
                        or local educational agency and 
                        recognized as such by the Secretary; or
                          [(II) successfully completes, on or 
                        after July 1, 2009, a rigorous 
                        secondary school program of study that 
                        prepares students for college--
                                  [(aa)(AA) that is recognized 
                                as such by the official 
                                designated for such recognition 
                                consistent with State law; and
                                  [(BB) about which the 
                                designated official has 
                                reported to the Secretary, at 
                                such time as the Secretary may 
                                reasonably require, in order to 
                                assist financial aid 
                                administrators to determine 
                                that the student is an eligible 
                                student under this section; or
                                  [(bb) that is recognized as 
                                such by the Secretary in 
                                regulations promulgated to 
                                carry out this section, as such 
                                regulations were in effect on 
                                May 6, 2008; and
                          [(ii) has obtained a cumulative grade 
                        point average of at least 3.0 (or the 
                        equivalent as determined under 
                        regulations prescribed by the 
                        Secretary) at the end of the first year 
                        of such program of undergraduate 
                        education;
                  [(C) the third or fourth year of a program of 
                undergraduate education at a four-year degree-
                granting institution of higher education--
                          [(i) is certified by the institution 
                        to be pursuing a major in--
                                  [(I) the physical, life, or 
                                computer sciences, mathematics, 
                                technology, or engineering (as 
                                determined by the Secretary 
                                pursuant to regulations); or
                                  [(II) a critical foreign 
                                language; and
                          [(ii) has obtained a cumulative grade 
                        point average of at least 3.0 (or the 
                        equivalent as determined under 
                        regulations prescribed by the 
                        Secretary) in the coursework required 
                        for the major described in clause (i);
                  [(D) the third or fourth year of a program of 
                undergraduate education at an institution of 
                higher education (as defined in section 
                101(a)), is attending an institution that 
                demonstrates, to the satisfaction of the 
                Secretary, that the institution--
                          [(i) offers a single liberal arts 
                        curriculum leading to a baccalaureate 
                        degree, under which students are not 
                        permitted by the institution to declare 
                        a major in a particular subject area, 
                        and the student--
                                  [(I)(aa) studies, in such 
                                years, a subject described in 
                                subparagraph (C)(i) that is at 
                                least equal to the requirements 
                                for an academic major at an 
                                institution of higher education 
                                that offers a baccalaureate 
                                degree in such subject, as 
                                certified by an appropriate 
                                official from the institution; 
                                and
                                  [(bb) has obtained a 
                                cumulative grade point average 
                                of at least 3.0 (or the 
                                equivalent as determined under 
                                regulations prescribed by the 
                                Secretary) in the relevant 
                                coursework; or
                                  [(II) is required, as part of 
                                the student's degree program, 
                                to undertake a rigorous course 
                                of study in mathematics, 
                                biology, chemistry, and 
                                physics, which consists of at 
                                least--
                                          [(aa) 4 years of 
                                        study in mathematics; 
                                        and
                                          [(bb) 3 years of 
                                        study in the sciences, 
                                        with a laboratory 
                                        component in each of 
                                        those years; and
                          [(ii) offered such curriculum prior 
                        to February 8, 2006; or
                  [(E) the fifth year of a program of 
                undergraduate education that requires 5 full 
                years of coursework, as certified by the 
                appropriate official of the degree-granting 
                institution of higher education, for which a 
                baccalaureate degree is awarded by a degree-
                granting institution of higher education--
                          [(i) is certified by the institution 
                        of higher education to be pursuing a 
                        major in--
                                  [(I) the physical, life, or 
                                computer sciences, mathematics, 
                                technology, or engineering (as 
                                determined by the Secretary 
                                pursuant to regulations); or
                                  [(II) a critical foreign 
                                language; and
                          [(ii) has obtained a cumulative grade 
                        point average of at least 3.0 (or the 
                        equivalent, as determined under 
                        regulations prescribed by the 
                        Secretary) in the coursework required 
                        for the major described in clause (i).
  [(d) Grant Award.--
          [(1) Amounts.--
                  [(A) In general.--The Secretary shall award a 
                grant under this section in the amount of--
                          [(i) $750 for an eligible student 
                        under subsection (c)(3)(A);
                          [(ii) $1,300 for an eligible student 
                        under subsection (c)(3)(B);
                          [(iii) $4,000 for an eligible student 
                        under subparagraph (C) or (D) of 
                        subsection (c)(3), for each of the two 
                        years described in such subparagraphs; 
                        or
                          [(iv) $4,000 for an eligible student 
                        under subsection (c)(3)(E).
                  [(B) Limitation; ratable reduction.--
                Notwithstanding subparagraph (A)--
                          [(i) in any case in which a student 
                        attends an institution of higher 
                        education on less than a full-time 
                        basis, the amount of the grant that 
                        such student may receive shall be 
                        reduced in the same manner as a Federal 
                        Pell Grant is reduced under section 
                        401(b)(2)(B);
                          [(ii) the amount of such grant, in 
                        combination with the Federal Pell Grant 
                        assistance and other student financial 
                        assistance available to such student, 
                        shall not exceed the student's cost of 
                        attendance;
                          [(iii) if the amount made available 
                        under subsection (e) for any fiscal 
                        year is less than the amount required 
                        to be provided grants to all eligible 
                        students in the amounts determined 
                        under subparagraph (A) and clause (i) 
                        of this subparagraph, then the amount 
                        of the grant to each eligible student 
                        shall be ratably reduced; and
                  [(iv) if additional amounts are appropriated 
                for any such fiscal year, such reduced amounts 
                shall be increased on the same basis as they 
                were reduced.
          [(2) Limitations.--
                  [(A) No grants for previous credit.--The 
                Secretary may not award a grant under this 
                section to any student for any year of a 
                program of undergraduate education for which 
                the student received credit before the date of 
                enactment of the Higher Education 
                Reconciliation Act of 2005.
                  [(B) Number of grants.--The Secretary may not 
                award more than one grant to a student 
                described in subsection (c)(3) for each year of 
                study described in such subsection.
          [(3) Calculation of grant payments.--An institution 
        of higher education shall make payments of a grant 
        awarded under this section in the same manner, using 
        the same payment periods, as such institution makes 
        payments for Federal Pell Grants under section 401.
  [(e) Funding.--
          [(1) Authorization and appropriation of funds.--There 
        are authorized to be appropriated, and there are 
        appropriated, out of any money in the Treasury not 
        otherwise appropriated, for the Department of Education 
        to carry out this section--
                  [(A) $790,000,000 for fiscal year 2006;
                  [(B) $850,000,000 for fiscal year 2007;
                  [(C) $920,000,000 for fiscal year 2008;
                  [(D) $960,000,000 for fiscal year 2009; and
                  [(E) $1,010,000,000 for fiscal year 2010.
          [(2) Availability of funds.--The amounts made 
        available by paragraph (1) for any fiscal year shall be 
        available from October 1 of that fiscal year and remain 
        available through September 30 of the succeeding fiscal 
        year.
  [(f) Recognition of Programs of Study.--The Secretary shall 
recognize not less than one rigorous secondary school program 
of study in each State under subparagraphs (A) and (B) of 
subsection (c)(3) for the purpose of determining student 
eligibility under such subsection.
  [(g) Sunset Provision.--The authority to make grants under 
this section shall expire at the end of award year 2010-2011.]

    Subpart 2--Federal Early Outreach and Student Services Programs

                    CHAPTER 1--FEDERAL TRIO PROGRAMS

SEC. 402A. PROGRAM AUTHORITY; AUTHORIZATION OF APPROPRIATIONS.

  (a) Grants and Contracts Authorized.--The Secretary shall, in 
accordance with the provisions of this chapter, carry out a 
program of making grants and contracts designed to identify 
qualified individuals from disadvantaged backgrounds, to 
prepare them for a program of postsecondary education, to 
provide support services for such students who are pursuing 
programs of postsecondary education, to motivate and prepare 
students for doctoral programs, and to train individuals 
serving or preparing for service in programs and projects so 
designed.
  (b) Recipients, Duration, and Size.--
          (1) Recipients.--For the purposes described in 
        subsection (a), the Secretary is authorized, without 
        regard to section 3709 of the Revised Statutes (41 
        U.S.C. 5), to make grants to, and contracts with, 
        institutions of higher education, public and private 
        agencies and organizations, including community-based 
        organizations with experience in serving disadvantaged 
        youth, combinations of such institutions, agencies and 
        organizations, and, as appropriate to the purposes of 
        the program, secondary schools, for planning, 
        developing, or carrying out one or more of the services 
        assisted under this chapter.
          (2) Duration.--Grants or contracts made under this 
        chapter shall be awarded for a period of 5 years, 
        except that--
                  (A) in order to synchronize the awarding of 
                grants for programs under this chapter, the 
                Secretary may, under such terms as are 
                consistent with the purposes of this chapter, 
                provide a one-time, limited extension of the 
                length of such an award;
                  (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, an individual grant 
        authorized under this chapter shall be awarded in an 
        amount that is not less than $200,000, except that an 
        individual grant authorized under section 402G shall be 
        awarded in an amount that is not less than $170,000.
  (c) Procedures for Awarding Grants and Contracts.--
          (1) Application requirements.--An eligible entity 
        that desires to receive a grant or contract under this 
        chapter shall submit an application to the Secretary in 
        such manner and form, and containing such information 
        and assurances, as the Secretary may reasonably 
        require.
          (2) Considerations.--
                  [(A) Prior experience.--In making grants 
                under this chapter, the Secretary shall 
                consider each applicant's prior experience of 
                high quality service delivery, as determined 
                under subsection (f), 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) Accountability for outcomes.--In making 
                grants under this chapter, the Secretary shall 
                comply with the following requirements:
                          (i) The Secretary shall consider each 
                        applicant's prior success in achieving 
                        high quality service delivery, as 
                        determined under subsection (f), under 
                        the particular program for which funds 
                        are sought. The level of consideration 
                        given the factor of prior success in 
                        achieving high quality service delivery 
                        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 such consideration.
                          (ii) The Secretary shall not give 
                        points for prior success in achieving 
                        high quality service delivery to any 
                        current grantee that, during the then 
                        most recent period for which funds were 
                        provided, did not meet or exceed two or 
                        more objectives established in the 
                        eligible entity's application based on 
                        the performance measures described in 
                        subsection (f).
                          (iii) From the amounts awarded under 
                        subsection (g) for a program under this 
                        chapter (other than a program under 
                        sections 402G and 402H) for any fiscal 
                        year in which the Secretary conducts a 
                        competition for the award of grants or 
                        contracts under such programs, the 
                        Secretary shall reserve not less than 
                        10 percent of such available amount to 
                        award grants or contracts to applicants 
                        who have not previously received a 
                        grant or contract under this chapter. 
                        If the Secretary determines that there 
                        are an insufficient number of qualified 
                        applicants to use the full amount 
                        reserved under the preceding sentence, 
                        the Secretary shall use the remainder 
                        of such amount to award grants or 
                        contracts to applicants who have 
                        previously received a grant or contract 
                        under this chapter.
                  (B) Participant need.--In making grants under 
                this chapter, the Secretary shall consider the 
                number, percentages, and needs of eligible 
                participants in the area, institution of higher 
                education, or secondary school to be served to 
                aid such participants in preparing for, 
                enrolling in, or succeeding in postsecondary 
                education, as appropriate to the particular 
                program for which the eligible entity is 
                applying.
          (3) Order of awards; program fraud.--(A) Except with 
        respect to grants made under sections 402G and 402H and 
        [as provided in subparagraph (B)] as provided in 
        subparagraph (C), 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) 
        and adjusted for prior [experience] success in 
        achieving high quality service delivery in accordance 
        with paragraph (2) of this subsection.
          (B) To ensure that congressional priorities in 
        conducting competitions for grants and contracts under 
        this chapter are implemented, the Secretary shall not 
        impose additional criteria for the prioritization of 
        applications for such grants or contracts (including 
        additional competitive, absolute, or other criteria) 
        beyond the criteria described in this chapter.
          [(B)] (C) The Secretary shall not 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.
          (4) Peer review process.--(A) The Secretary shall 
        ensure that, to the extent practicable, members of 
        groups underrepresented in higher education, including 
        African Americans, Hispanics, Native Americans, Alaska 
        Natives, Asian Americans, and Native American Pacific 
        Islanders (including Native Hawaiians), are represented 
        as readers of applications submitted under this 
        chapter. The Secretary shall also ensure that persons 
        from urban and rural backgrounds are represented as 
        readers.
          (B) The Secretary shall ensure that each application 
        submitted under this chapter is read by at least three 
        readers who are not employees of the Federal Government 
        (other than as readers of applications).
          (5) 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 different campuses.
          (6) Coordination with other programs for 
        disadvantaged students.--[The Secretary shall 
        encourage]
                  (A) 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[.], as long as the 
                program is serving a different population or a 
                different campus. [The Secretary shall permit]
                  (B) 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. The 
                Secretary shall, as appropriate, require each 
                applicant for funds under [the programs 
                authorized by] sections 402B, 402C, 402D, and 
                402F of this chapter to identify and make 
                available services under such program, 
                including mentoring, tutoring, and other 
                services provided by such program, to foster 
                care youth (including youth in foster care and 
                youth who have left foster care after reaching 
                age 13) or to homeless children and youths as 
                defined in section 725 of the McKinney-Vento 
                Homeless Assistance Act.
          (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] 90 days 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] 90 days prior to the proposed startup date of 
        such program.
          (8) Review and notification by the secretary.--
                  (A) Guidance.--[Not later than 180 days after 
                the date of enactment of the Higher Education 
                Opportunity Act,] Not later than 90 days before 
                the commencement of each competition for a 
                grant under this chapter, the Secretary shall 
                issue nonregulatory guidance regarding the 
                rights and responsibilities of applicants with 
                respect to the application and evaluation 
                process for programs and projects assisted 
                under this chapter, including applicant access 
                to peer review comments. The guidance shall 
                describe the procedures for the submission, 
                processing, and scoring of applications for 
                grants under this chapter, including--
                          (i) the responsibility of applicants 
                        to submit materials in a timely manner 
                        and in accordance with the processes 
                        established by the Secretary under the 
                        authority of the General Education 
                        Provisions Act;
                          (ii) steps the Secretary will take to 
                        ensure that the materials submitted by 
                        applicants are processed in a proper 
                        and timely manner;
                          (iii) steps the Secretary will take 
                        to ensure that [prior experience points 
                        for high quality service delivery are 
                        awarded] application scores are 
                        adjusted for prior success in achieving 
                        high quality service delivery in an 
                        accurate and transparent manner;
                          (iv) steps the Secretary will take to 
                        ensure the quality and integrity of the 
                        peer review process, including 
                        assurances that peer reviewers will 
                        consider applications for grants under 
                        this chapter in a thorough and complete 
                        manner consistent with applicable 
                        Federal law; and
                          (v) steps the Secretary will take to 
                        ensure that the final score of an 
                        application, including [prior 
                        experience points for] the adjustment 
                        in scores for prior success in 
                        achieving high quality service delivery 
                        and points awarded through the peer 
                        review process, is determined in an 
                        accurate and transparent manner.
                  [(B) Updated guidance.--Not later than 45 
                days before the date of the commencement of 
                each competition for a grant under this chapter 
                that is held after the expiration of the 180-
                day period described in subparagraph (A), the 
                Secretary shall update and publish the guidance 
                described in such subparagraph.]
                  [(C)] (B) Review.--
                          (i) In general.--With respect to any 
                        competition for a grant under this 
                        chapter, an applicant may request a 
                        review by the Secretary if the 
                        applicant--
                                  (I) has evidence of a 
                                specific technical, 
                                administrative, or scoring 
                                error made by the Department, 
                                an agent of the Department, or 
                                a peer reviewer, with respect 
                                to the scoring or processing of 
                                a submitted application; and
                                  (II) has otherwise met all of 
                                the requirements for submission 
                                of the application.
                          (ii) Technical or administrative 
                        error.--In the case of evidence of a 
                        technical or administrative error 
                        listed in clause (i)(I), the Secretary 
                        shall review such evidence and provide 
                        a timely response to the applicant. If 
                        the Secretary determines that a 
                        technical or administrative error was 
                        made by the Department or an agent of 
                        the Department, the application of the 
                        applicant shall be reconsidered in the 
                        peer review process for the applicable 
                        grant competition.
                          (iii) Scoring error.--In the case of 
                        evidence of a scoring error listed in 
                        clause (i)(I), when the error relates 
                        to either [prior experience points for] 
                        points for prior success in achieving 
                        high quality service delivery or to the 
                        final score of an application, the 
                        Secretary shall--
                                  (I) review such evidence and 
                                provide a timely response to 
                                the applicant; and
                                  (II) if the Secretary 
                                determines that a scoring error 
                                was made by the Department or a 
                                peer reviewer, adjust the 
                                [prior experience points] 
                                points for prior success in 
                                achieving high quality service 
                                delivery or final score of the 
                                application appropriately and 
                                quickly, so as not to interfere 
                                with the timely awarding of 
                                grants for the applicable grant 
                                competition.
                          (iv) Error in peer review process.--
                                  (I) Referral to secondary 
                                review.--In the case of a peer 
                                review process error listed in 
                                clause (i)(I), if the Secretary 
                                determines that points were 
                                withheld for criteria not 
                                required in Federal statute, 
                                regulation, or guidance 
                                governing a program assisted 
                                under this chapter or the 
                                application for a grant for 
                                such program, or determines 
                                that information pertaining to 
                                selection criteria was wrongly 
                                determined to be missing from 
                                an application by a peer 
                                reviewer, then the Secretary 
                                shall refer the application to 
                                a secondary review panel.
                                  (II) Timely review; 
                                replacement score.--The 
                                secondary review panel 
                                described in subclause (I) 
                                shall conduct a secondary 
                                review in a timely fashion, and 
                                the score resulting from the 
                                secondary review shall replace 
                                the score from the initial peer 
                                review.
                                  (III) Composition of 
                                secondary review panel.--The 
                                secondary review panel shall be 
                                composed of reviewers each of 
                                whom--
                                          (aa) did not review 
                                        the application in the 
                                        original peer review;
                                          (bb) is a member of 
                                        the cohort of peer 
                                        reviewers for the grant 
                                        program that is the 
                                        subject of such 
                                        secondary review; and
                                          (cc) to extent 
                                        practicable, has 
                                        conducted peer reviews 
                                        in not less than two 
                                        previous competitions 
                                        for the grant program 
                                        that is the subject of 
                                        such secondary review.
                                  (IV) Final score.--The final 
                                peer review score of an 
                                application subject to a 
                                secondary review under this 
                                clause shall be adjusted 
                                appropriately and quickly using 
                                the score awarded by the 
                                secondary review panel, so as 
                                not to interfere with the 
                                timely awarding of grants for 
                                the applicable grant 
                                competition.
                                  (V) Qualification for 
                                secondary review.--To qualify 
                                for a secondary review under 
                                this clause, an applicant shall 
                                have evidence of a scoring 
                                error and demonstrate that--
                                          (aa) points were 
                                        withheld for criteria 
                                        not required in 
                                        statute, regulation, or 
                                        guidance governing the 
                                        Federal TRIO programs 
                                        or the application for 
                                        a grant for such 
                                        programs; or
                                          (bb) information 
                                        pertaining to selection 
                                        criteria was wrongly 
                                        determined to be 
                                        missing from the 
                                        application.
                          (v) Finality.--
                                  (I) In general.--A 
                                determination by the Secretary 
                                under clause (i), (ii), or 
                                (iii) shall not be reviewable 
                                by any officer or employee of 
                                the Department.
                                  (II) Scoring.--The score 
                                awarded by a secondary review 
                                panel under clause (iv) shall 
                                not be reviewable by any 
                                officer or employee of the 
                                Department other than the 
                                Secretary.
                          (vi) Funding of applications with 
                        certain adjusted scores.--To the extent 
                        feasible based on the availability of 
                        appropriations, the Secretary shall 
                        fund applications with scores that are 
                        adjusted upward under clauses (ii), 
                        (iii), and (iv) to equal or exceed the 
                        minimum cut off score for the 
                        applicable grant competition from funds 
                        reserved under subsection (g).
          (9) Matching requirement.--
                  (A) In general.--The Secretary shall not 
                approve an application submitted under section 
                402B, 402C, 402D, 402E, or 402F unless such 
                application--
                          (i) provides that the eligible entity 
                        will provide, from State, local, 
                        institutional, or private funds, not 
                        less than 20 percent of the cost of the 
                        program, which matching funds may be 
                        provided in cash or in kind and may be 
                        accrued over the full duration of the 
                        grant award period, except that the 
                        eligible entity shall make substantial 
                        progress towards meeting the matching 
                        requirement in each year of the grant 
                        award period;
                          (ii) specifies the methods by which 
                        matching funds will be paid; and
                          (iii) includes provisions designed to 
                        ensure that funds provided under this 
                        chapter shall supplement and not 
                        supplant funds expended for existing 
                        programs.
                  (B) Special rule.--Notwithstanding the 
                matching requirement described in subparagraph 
                (A), the Secretary may by regulation modify the 
                percentage requirement described in 
                subparagraph (A). The Secretary may approve an 
                eligible entity's request for a reduced match 
                percentage--
                          (i) at the time of application if the 
                        eligible entity demonstrates 
                        significant economic hardship that 
                        precludes the eligible entity from 
                        meeting the matching requirement; or
                          (ii) in response to a petition by an 
                        eligible entity subsequent to a grant 
                        award under section 402B, 402C, 402D, 
                        402E, or 402F if the eligible entity 
                        demonstrates that the matching funds 
                        described in its application are no 
                        longer available and the eligible 
                        entity has exhausted all revenues for 
                        replacing such matching funds.
  (d) Outreach.--
          (1) In general.--The Secretary shall conduct outreach 
        activities to ensure that entities eligible for 
        assistance under this chapter submit applications 
        proposing programs that serve geographic areas and 
        eligible populations which have been underserved by the 
        programs assisted under this chapter.
          (2) Notice.--In carrying out the provisions of 
        paragraph (1), the Secretary shall notify the entities 
        described in subsection (b) of the availability of 
        assistance under this subsection not less than 120 days 
        prior to the deadline for submission of applications 
        under this chapter and shall consult national, State, 
        and regional organizations about candidates for 
        notification.
          (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. In addition, the 
        Secretary shall host at least one virtual, interactive 
        education session using telecommunications technology 
        to ensure that any interested applicants have access to 
        technical assistance.
          (4) Special rule.--The Secretary may contract with 
        eligible entities to conduct the outreach activities 
        described in this subsection.
  (e) 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 (h)(4) shall be made by providing the 
Secretary with--
          (A) a signed statement from the individual's parent 
        or legal guardian;
          (B) verification from another governmental source;
          (C) a signed financial aid application; [or]
          (D) a signed United States or Puerto Rico income tax 
        return[.]; or
          (E) documentation that the student has been 
        determined to be eligible for a Federal Pell Grant 
        under section 401.
  (2) In the case of an independent student, as defined in 
section 480(d), documentation of an individual's status 
pursuant to subsection (h)(4) shall be made by providing the 
Secretary with--
          (A) a signed statement from the individual;
          (B) verification from another governmental source;
          (C) a signed financial aid application; [or]
          (D) a signed United States or Puerto Rico income tax 
        return[.]; or
          (E) documentation that the student has been 
        determined to be eligible for a Federal Pell Grant 
        under section 401.
  (3) Notwithstanding this subsection and subsection (h)(4), 
individuals who are foster care youth (including youth in 
foster care and youth who have left foster care after reaching 
age 13), or homeless children and youths as defined in section 
725 of the McKinney-Vento Homeless Assistance Act, shall be 
eligible to participate in programs under sections 402B, 402C, 
402D, and 402F.
  (f) Outcome Criteria.--
          (1) Use for [prior experience] accountability for 
        outcomes determination.--For competitions for grants 
        under this chapter that begin on or after January 1, 
        2009, the Secretary shall determine an eligible 
        entity's prior [experience of] success in achieving 
        high quality service delivery, as required under 
        subsection (c)(2), based on the outcome criteria 
        described in paragraphs (2) and (3).
          (2) Disaggregation of relevant data.--The outcome 
        criteria under this subsection shall be disaggregated 
        by low-income students, first generation college 
        students, and individuals with disabilities, in the 
        schools and institutions of higher education served by 
        the program to be evaluated.
          (3) Contents of outcome criteria.--The outcome 
        criteria under this subsection shall measure, annually 
        and for longer periods, the quality and effectiveness 
        of programs authorized under this chapter and shall 
        include the following:
                  (A) For programs authorized under section 
                402B, the extent to which the eligible entity 
                met or exceeded the entity's objectives 
                established in the entity's application for 
                such program regarding--
                          (i) the delivery of service to a 
                        total number of students served by the 
                        program;
                          (ii) the continued secondary school 
                        enrollment of such students;
                          (iii) the graduation of such students 
                        from secondary school with a regular 
                        secondary school diploma in the 
                        standard number of years;
                          (iv) the completion by such students 
                        of a [rigorous secondary school program 
                        of study that will make such students 
                        eligible for programs such as the 
                        Academic Competitiveness Grants 
                        Program] secondary school program of 
                        study that will prepare such students 
                        to enter postsecondary education 
                        without the need for remedial 
                        education;
                          (v) the completion of financial aid 
                        applications, including the Free 
                        Application for Federal Student Aid 
                        described in section 483(a) and college 
                        admission applications;
                          [(v)] (vi) the enrollment of such 
                        students in an institution of higher 
                        education; and
                          [(vi)] (vii) to the extent 
                        practicable, the postsecondary 
                        education completion of such students.
                  [(B)] [For programs authorized under section 
                402C,] (B)(i) For programs authorized under 
                section 402C, except in the case of projects 
                that specifically target veterans,  the extent 
                to which the eligible entity met or exceeded 
                the entity's objectives for such program 
                regarding--
                          [(i)] (I) the delivery of service to 
                        a total number of students served by 
                        the program, as agreed upon by the 
                        entity and the Secretary for the 
                        period;
                          [(ii)] (II) such students' school 
                        performance, as measured by the grade 
                        point average, or its equivalent;
                          [(iii)] (III) such students' academic 
                        performance, as measured by 
                        standardized tests, including tests 
                        required by the students' State;
                          [(iv)] (IV) the retention in, and 
                        graduation from, secondary school of 
                        such students;
                          (V) the enrollment of such students 
                        into a general educational development 
                        (commonly known as a ``GED'') program;
                          [(v)] (VI) the completion by such 
                        students of a [rigorous secondary 
                        school program of study that will make 
                        such students eligible for programs 
                        such as the Academic Competitiveness 
                        Grants Program] secondary school 
                        program of study that will prepare such 
                        students to enter postsecondary 
                        education without the need for remedial 
                        education;
                          (VII) the completion of financial aid 
                        applications, including the Free 
                        Application for Federal Student Aid 
                        described in section 483(a) and college 
                        admission applications;
                          [(vi)] (VIII) the enrollment of such 
                        students in an institution of higher 
                        education; and
                          [(vii)] (IX) to the extent 
                        practicable, the postsecondary 
                        education completion of such students.
                  (ii) For programs authorized under section 
                402C that specifically target veterans, the 
                extent to which the eligible entity met or 
                exceeded the entity's objectives for such 
                program with respect to--
                          (I) the delivery of service to a 
                        total number of students served by the 
                        program, as agreed upon by the entity 
                        and the Secretary for the period;
                          (II) such students' academic 
                        performance, as measured by 
                        standardized tests;
                          (III) the retention and completion of 
                        participants in the project;
                          (IV) the provision of assistance to 
                        students served by the program in 
                        completing financial aid applications, 
                        including the Free Application for 
                        Federal Student Aid described in 
                        section 483(a) and college admission 
                        applications;
                          (V) the enrollment of such students 
                        in an institution of higher education; 
                        and
                          (VI) to the extent practicable, the 
                        postsecondary education completion rate 
                        of such students.
                  (C) For programs authorized under section 
                402D--
                          (i) the extent to which the eligible 
                        entity met or exceeded the entity's 
                        objectives regarding the retention in 
                        postsecondary education of the students 
                        served by the program;
                          (ii)(I) in the case of an entity that 
                        is an institution of higher education 
                        offering a baccalaureate degree, the 
                        extent to which the entity met or 
                        exceeded the entity's objectives 
                        regarding the percentage of such 
                        students' completion of the degree 
                        programs [in which such students were 
                        enrolled] within six years of the 
                        initial enrollment of such students in 
                        the program; or
                          (II) in the case of an entity that is 
                        an institution of higher education that 
                        does not [offer a baccalaureate degree] 
                        primarily offer baccalaureate degrees, 
                        the extent to which such students met 
                        or exceeded the entity's objectives 
                        regarding--
                                  (aa) the completion of a 
                                degree or certificate by such 
                                [students; and] students within 
                                4 years of the initial 
                                enrollment of such students in 
                                the program; or
                                  (bb) the transfer of such 
                                students to institutions of 
                                higher education that offer 
                                baccalaureate degrees;
                          (iii) the extent to which the entity 
                        met or exceeded the entity's objectives 
                        regarding the delivery of service to a 
                        total number of students, as agreed 
                        upon by the entity and the Secretary 
                        for the period; and
                          (iv) the extent to which the entity 
                        met or exceeded the entity's objectives 
                        regarding the students served under the 
                        program who remain in good academic 
                        standing.
                  (D) For programs authorized under section 
                402E, the extent to which the entity met or 
                exceeded the entity's objectives for such 
                program regarding--
                          (i) the delivery of service to a 
                        total number of students served by the 
                        program, as agreed upon by the entity 
                        and the Secretary for the period;
                          (ii) the provision of appropriate 
                        scholarly and research activities for 
                        the students served by the program;
                          (iii) the acceptance and enrollment 
                        of such students in graduate programs[; 
                        and] within two years of receiving a 
                        baccalaureate degree;
                          (iv) the continued enrollment of such 
                        students in graduate [study and the 
                        attainment of doctoral degrees by 
                        former program participants.] study; 
                        and
                          (v) the attainment of doctoral 
                        degrees by former program participants 
                        within 10 years of receiving a 
                        baccalaureate degree.
                  (E) For programs authorized under section 
                402F, the extent to which the entity met or 
                exceeded the entity's objectives for such 
                program regarding--
                          (i) the enrollment of students 
                        without a secondary school diploma or 
                        its recognized equivalent, who were 
                        served by the program, in programs 
                        leading to such diploma or equivalent;
                          (ii) the enrollment, or re-
                        enrollment, of secondary school 
                        graduates who were served by the 
                        program in programs of postsecondary 
                        education;
                          (iii) the delivery of service to a 
                        total number of students served by the 
                        program, as agreed upon by the entity 
                        and the Secretary for the period; and
                          (iv) the provision of assistance to 
                        students served by the program in 
                        completing financial aid applications 
                        and college admission applications.
          (4) Measurement of progress.--In order to determine 
        the extent to which each outcome criterion described in 
        paragraph (2) or (3) is met or exceeded, the Secretary 
        shall compare the agreed upon target for the criterion, 
        as established in the eligible entity's application 
        approved by the Secretary, with the results for the 
        criterion, measured as of the last day of the 
        applicable time period for the determination for the 
        outcome criterion.
  (g) Authorization of Appropriations.--For the purpose of 
making grants and contracts under this chapter, there are 
authorized to be appropriated [$900,000,000 for fiscal year 
2009 and such sums as may be necessary for] $900,000,000 for 
fiscal year 2019 and each of the five succeeding fiscal years. 
Of the amount appropriated under this chapter, the Secretary 
may use [no more than \1/2\ of 1] not more than 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] to provide 
technical assistance to potential applicants and current 
grantees, and to support applications funded under the process 
outlined in subsection (c)(8)(B). [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.]
  (h) Definitions.--For the purpose of this chapter:
          (1) Different campus.--The term ``different campus'' 
        means a site of an institution of higher education 
        that--
                  (A) is geographically apart from the main 
                campus of the institution;
                  (B) is permanent in nature; and
                  (C) offers courses in educational programs 
                leading to a degree, certificate, or other 
                recognized educational credential.
          (2) Different population.--The term ``different 
        population'' means a group of individuals that an 
        eligible entity desires to serve through an application 
        for a grant under this chapter, and that--
                  (A) is separate and distinct from any other 
                population that the entity has applied for a 
                grant under this chapter to serve; or
                  (B) while sharing some of the same needs as 
                another population that the eligible entity has 
                applied for a grant under this chapter to 
                serve, has distinct needs for specialized 
                services.
          (3) First generation college student.--The term 
        ``first generation college student'' means--
                  (A) an individual both of whose parents did 
                not complete a baccalaureate degree; or
                  (B) in the case of any individual who 
                regularly resided with and received support 
                from only one parent, an individual whose only 
                such parent did not complete a baccalaureate 
                degree.
          (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.
  [(5) Veteran eligibility.--No veteran] (i) Veteran 
Eligibility._(1) No Veteran shall be deemed ineligible to 
participate in any program under this chapter by reason of such 
individual's age who--
          (A) served on active duty for a period of more than 
        180 days and was discharged or released therefrom under 
        conditions other than dishonorable;
          (B) served on active duty and was discharged or 
        released therefrom because of a service connected 
        disability;
          (C) was a member of a reserve component of the Armed 
        Forces called to active duty for a period of more than 
        30 days; or
          (D) was a member of a reserve component of the Armed 
        Forces who served on active duty in support of a 
        contingency operation (as that term is defined in 
        section 101(a)(13) of title 10, United States Code) on 
        or after September 11, 2001.
  [(6) Waiver.--] (2) The Secretary may waive the service 
requirements in subparagraph (A), (B), or (C) [of paragraph 
(5)] of paragraph (1) 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) Program Authority.--The Secretary shall carry out a 
program to be known as talent search which shall be designed--
          (1) to identify qualified youths with potential for 
        education at the postsecondary level and to encourage 
        such youths to complete secondary school and to 
        undertake a program of postsecondary education;
          (2) to publicize the availability of, and facilitate 
        the application for, student financial assistance 
        available to persons who pursue a program of 
        postsecondary education; [and]
          (3) to advise such youths on the postsecondary 
        institution selection process, including consideration 
        of the financial aid awards offered and the potential 
        loan burden required; and
          [(3)] (4) to encourage persons who have not completed 
        programs of education at the secondary or postsecondary 
        level to enter or reenter, and complete such programs.
  (b) Required Services.--Any project assisted under this 
section shall provide--
          (1) connections to high quality academic tutoring 
        services and, where necessary, remedial education 
        services, to enable students to complete secondary or 
        postsecondary courses;
          (2) advice and assistance in secondary course 
        selection and, if applicable, initial postsecondary 
        course selection;
          (3) assistance in preparing for college entrance 
        examinations and completing college admission 
        applications;
          (4)(A) information on the full range of Federal 
        student financial aid programs and benefits (including 
        Federal Pell Grant awards and loan forgiveness) and 
        resources for locating public and private scholarships; 
        and
          (B) assistance in completing financial aid 
        applications, including the Free Application for 
        Federal Student Aid described in section 483(a);
          (5) guidance on and assistance in--
                  (A) secondary school reentry;
                  (B) alternative education programs for 
                secondary school dropouts that lead to the 
                receipt of a regular secondary school diploma;
                  (C) entry into general educational 
                development (GED) programs; or
                  (D) postsecondary education; and
          [(6) connections to education or counseling services 
        designed to improve the financial literacy and economic 
        literacy of students or the students' parents, 
        including financial planning for postsecondary 
        education.]
          (6) connections to education or counseling services 
        designed to--
                  (A) improve the financial literacy and 
                economic literacy of students or the students' 
                parents in order to aid them in making informed 
                decisions about how to best finance their 
                postsecondary education; and
                  (B) assist students and families regarding 
                career choice.
  (c) Permissible Services.--Any project assisted under this 
section may provide services such as--
          (1) academic tutoring, which may include instruction 
        in reading, writing, study skills, mathematics, 
        science, and other subjects;
          (2) personal and [career] academic counseling or 
        activities;
          (3) information and activities designed to acquaint 
        youth with the range of career options available to the 
        youth;
          (4) exposure to the campuses of institutions of 
        higher education, as well as cultural events, academic 
        programs, and other sites or activities not usually 
        available to disadvantaged youth;
          (5) workshops and counseling for families of students 
        served;
          (6) mentoring programs involving elementary or 
        secondary school teachers or counselors, faculty 
        members at institutions of higher education, students, 
        or any combination of such persons; and
          (7) programs and activities as described in 
        subsection (b) or paragraphs (1) through (6) of this 
        subsection that are specially designed for students who 
        are limited English proficient, students from groups 
        that are traditionally underrepresented in 
        postsecondary education, students with disabilities, 
        students who are homeless children and youths (as such 
        term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), students 
        who are in foster care or are aging out of the foster 
        care system, or other disconnected students.
  (d) Requirements for Approval of Applications.--In approving 
applications for projects under this section for any fiscal 
year the Secretary shall--
          (1) require an assurance that not less than two-
        thirds of the individuals participating in the project 
        proposed to be carried out under any application be 
        low-income individuals who are first generation college 
        students;
          (2) require an assurance that the remaining youths 
        participating in the project proposed to be carried out 
        in any application be low-income individuals, first 
        generation college students, or students who have a 
        high risk for academic failure;
          [(2)] (3) require that such participants be persons 
        who either have completed 5 years of elementary 
        education or are at least 11 years of age but not more 
        than 27 years of age, unless the imposition of any such 
        limitation with respect to any person would defeat the 
        purposes of this section or the purposes of section 
        402F;
          [(3)] (4) 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, section 402C, or 
        under section 402F; [and]
          [(4)] (5) require an assurance that the project will 
        be located in a setting accessible to the persons 
        proposed to be served by the project[.]; and
          (6) require the grantee to maintain, to the extent 
        practicable, a record of any services participants 
        receive during the project year from another program 
        under this chapter or other federally funded programs 
        serving similar populations to minimize the duplication 
        of services.

SEC. 402C. UPWARD BOUND.

  (a) Program Authority.--The Secretary shall carry out a 
program to be known as upward bound which shall be designed to 
generate skills and motivation necessary for success in 
education beyond secondary school.
  (b) Required Services.--Any project assisted under this 
section shall provide--
          [(1) academic tutoring to enable students to complete 
        secondary or postsecondary courses, which may include 
        instruction in reading, writing, study skills, 
        mathematics, science, and other subjects;]
          (1) academic tutoring, which may include instruction 
        in reading, writing, study skills, mathematics, 
        science, and other subjects and, where necessary, 
        remedial education services, to enable students to 
        complete secondary or postsecondary courses;
          (2) advice and assistance in secondary and 
        postsecondary course selection;
          (3) assistance in preparing for college entrance 
        examinations and completing college admission 
        applications;
          (4)(A) information on the full range of Federal 
        student financial aid programs and benefits (including 
        Federal Pell Grant awards and loan forgiveness) and 
        resources for locating public and private scholarships; 
        and
          (B) assistance in completing financial aid 
        applications, including the Free Application for 
        Federal Student Aid described in section 483(a); and
          [(5) guidance on and assistance in--
                  [(A) secondary school reentry;
                  [(B) alternative education programs for 
                secondary school dropouts that lead to the 
                receipt of a regular secondary school diploma;
                  [(C) entry into general educational 
                development (GED) programs; or
                  [(D) postsecondary education; and
          [(6) education or counseling services designed to 
        improve the financial literacy and economic literacy of 
        students or the students' parents, including financial 
        planning for postsecondary education.]
          (5) education or counseling services designed to--
                  (A) improve the financial literacy and 
                economic literacy of students or the students' 
                parents in order to aid them in making informed 
                decisions about how to best finance their 
                postsecondary education; and
                  (B) assist students and their families 
                regarding career choice.
  (c) Additional Required Services for Multiple-Year Grant 
Recipients.--Any project assisted under this section which has 
received funding for two or more years shall include, as part 
of the core curriculum in the next and succeeding years, 
instruction in mathematics through precalculus, laboratory 
science, foreign language, composition, and literature.
  (d) Permissible Services.--Any project assisted under this 
section may provide such services as--
          (1) exposure to cultural events, academic programs, 
        and other activities not usually available to 
        disadvantaged [youth] participants;
          (2) information, activities, and instruction designed 
        to acquaint [youth participating in the project] 
        project participants with the range of career options 
        available to the youth;
          (3) on-campus residential programs;
          (4) mentoring programs involving elementary school or 
        secondary school teachers or counselors, faculty 
        members at institutions of higher education, students, 
        or any combination of such persons;
          (5) work-study positions where [youth participating 
        in the project] project participants are exposed to 
        careers requiring a postsecondary degree;
          (6) special services, including mathematics and 
        science preparation, to enable veterans to make the 
        transition to postsecondary education; and
          (7) programs and activities as described in 
        subsection (b), subsection (c), or paragraphs (1) 
        through (6) of this subsection that are specially 
        designed for students who are limited English 
        proficient, students from groups that are traditionally 
        underrepresented in postsecondary education, students 
        with disabilities, students who are homeless children 
        and youths (as such term is defined in section 725 of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a)), students who are in foster care or are aging 
        out of the foster care system, or other disconnected 
        students.
  (e) Requirements for Approval of Applications.--In approving 
applications for projects under this section for any fiscal 
year, the Secretary shall--
          (1) require an assurance that not less than two-
        thirds of the youths participating in the project 
        proposed to be carried out under any application be 
        low-income individuals who are first generation college 
        students;
          (2) require an assurance that the remaining youths 
        participating in the project proposed to be carried out 
        under any application be low-income individuals, first 
        generation college students, or students who have a 
        high risk for academic failure;
          (3) require that there be a determination by the 
        institution, with respect to each participant in such 
        project that the participant has a need for academic 
        support in order to pursue successfully a program of 
        education beyond secondary school;
          (4) require that such participants be persons who 
        have completed 8 years of elementary education and are 
        at least 13 years of age but not more than 19 years of 
        age, unless the imposition of any such limitation would 
        defeat the purposes of this section; [and]
          (5) require an assurance that individuals 
        participating in the project proposed in any 
        application do not have access to services from another 
        project funded under this section, section 402B, or 
        section 402F;
          [(5)] (6) require an assurance that no student will 
        be denied participation in a project assisted under 
        this section because the student will enter the project 
        after the 9th grade[.]; and
          (7) for purposes of minimizing the duplication of 
        services, require that the grantee maintain, to the 
        extent practicable, a record of any services received 
        by participants during the program year from another 
        program funded under this chapter, or any other 
        Federally funded program that serves populations 
        similar to the populations served by programs under 
        this chapter.
  (f) Maximum Stipends.--Youths participating in a project 
proposed to be carried out under any application may be paid 
stipends not in excess of $60 per month during the summer 
school recess, for a period not to exceed three months, except 
that youth participating in a work-study position under 
subsection (d)(5) may be paid a stipend of $300 per month 
during the summer school recess, for a period not to exceed 
three months. Youths participating in a project proposed to be 
carried out under any application may be paid stipends not in 
excess of $40 per month during the remaining period of the 
year.
  [(g) Additional Funds.--
          [(1) Authorization and appropriation.--There are 
        authorized to be appropriated, and there are 
        appropriated to the Secretary, from funds not otherwise 
        appropriated, $57,000,000 for each of the fiscal years 
        2008 through 2011 to carry out paragraph (2), except 
        that any amounts that remain unexpended for such 
        purpose for each of such fiscal years may be available 
        for technical assistance and administration costs for 
        the Upward Bound program. The authority to award grants 
        under this subsection shall expire at the end of fiscal 
        year 2011.
          [(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.]
  [(h)] (g) Absolute Priority Prohibited in Upward Bound 
Program.--Upon enactment of this subsection and except as 
otherwise expressly provided by amendment to this section, the 
Secretary shall not continue, implement, or enforce the 
absolute priority for the Upward Bound Program published by the 
Department of Education in the Federal Register on September 
22, 2006 (71 Fed. Reg. 55447 et seq.). This subsection shall 
not be applied retroactively. In implementing this subsection, 
the Department shall allow the programs and participants chosen 
in the grant cycle to which the priority applies to continue 
their grants and participation without a further recompetition. 
The entities shall not be required to apply the absolute 
priority conditions or restrictions to future participants.

SEC. 402D. STUDENT SUPPORT SERVICES.

  (a) Program Authority.--The Secretary shall carry out a 
program to be known as student support services which shall be 
designed--
          (1) to increase college retention and graduation 
        rates for eligible students;
          (2) to increase the transfer rates of eligible 
        students from 2-year to 4-year institutions;
          (3) to foster an institutional climate supportive of 
        the success of low-income and first generation college 
        students, including students who are limited English 
        proficient, students from groups that are traditionally 
        underrepresented in postsecondary education, students 
        with disabilities, students who are homeless children 
        and youths (as such term is defined in section 725 of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a)), students who are in foster care or are aging 
        out of the foster care system, or other disconnected 
        students; and
          (4) to improve the financial literacy and economic 
        literacy of students, including--
                  (A) basic personal income, household money 
                management, and financial planning skills; and
                  (B) basic economic decisionmaking skills.
  (b) Required Services.--A project assisted under this section 
shall provide--
          (1) academic tutoring, directly or through other 
        services provided by the institution, to enable 
        students to complete postsecondary courses, which may 
        include instruction in reading, writing, study skills, 
        mathematics, science, and other subjects;
          (2) advice and assistance in postsecondary course 
        selection;
          (3)(A) information on both the full range of Federal 
        student financial aid programs and benefits (including 
        Federal Pell Grant awards and loan forgiveness) and 
        resources for locating public and private scholarships; 
        and
          (B) assistance in completing financial aid 
        applications, including the Free Application for 
        Federal Student Aid described in section 483(a);
          (4) education or counseling services designed to 
        improve the financial literacy and economic literacy of 
        students[, including financial] , including--
                  (A) financial  planning for postsecondary 
                education;
                  (B) basic personal income, household money 
                management, and financial planning skills; and
                  (C) basic economic decisionmaking skills;
          (5) activities designed to assist students 
        participating in the project in applying for admission 
        to, and obtaining financial assistance for enrollment 
        in, graduate and professional programs; and
          (6) activities designed to assist students enrolled 
        in two-year institutions of higher education in 
        applying for admission to, and obtaining financial 
        assistance for enrollment in, a four-year program of 
        postsecondary education.
  (c) Permissible Services.--A project assisted under this 
section may provide services such as--
          (1) individualized counseling for personal, career, 
        and academic matters provided by assigned counselors;
          (2) information, activities, and instruction designed 
        to acquaint students participating in the project with 
        the range of career options available to the students;
          (3) exposure to cultural events and academic programs 
        not usually available to disadvantaged students;
          (4) mentoring programs involving faculty or upper 
        class students, or a combination thereof;
          (5) securing temporary housing during breaks in the 
        academic year for--
                  (A) students who are homeless children and 
                youths (as such term is defined in section 725 
                of the McKinney-Vento Homeless Assistance Act 
                (42 U.S.C. 11434a)) or were formerly homeless 
                children and youths; and
                  (B) students who are in foster care or are 
                aging out of the foster care system; and
          (6) programs and activities as described in 
        subsection (b) or paragraphs (1) through (4) of this 
        subsection that are specially designed for students who 
        are limited English proficient, students from groups 
        that are traditionally underrepresented in 
        postsecondary education, students with disabilities, 
        students who are homeless children and youths (as such 
        term is defined in section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a)), students 
        who are in foster care or are aging out of the foster 
        care system, or other disconnected students.
  (d) Special Rule.--
          (1) Use for student aid.--A recipient of a grant that 
        undertakes any of the permissible services identified 
        in subsection (c) may, in addition, use such funds to 
        provide grant aid to students. A grant provided under 
        this paragraph shall not exceed the Federal Pell Grant 
        amount, determined under section 401(b)(2)(A), for 
        which a student is eligible, or be less than the 
        minimum Federal Pell Grant amount described in section 
        401(b)(4), for the current academic year. In making 
        grants to students under this subsection, an 
        institution shall ensure that adequate consultation 
        takes place between the student support service program 
        office and the institution's financial aid office.
          (2) Eligible students.--For purposes of receiving 
        grant aid under this subsection, eligible students 
        shall be current participants in the student support 
        services program offered by the institution and be--
                  (A) students who are in their first 2 years 
                of postsecondary education and who are 
                receiving Federal Pell Grants under subpart 1; 
                or
                  (B) students who have completed their first 2 
                years of postsecondary education and who are 
                receiving Federal Pell Grants under subpart 1 
                if the institution demonstrates to the 
                satisfaction of the Secretary that--
                          (i) these students are at high risk 
                        of dropping out; and
                          (ii) it will first meet the needs of 
                        all its eligible first- and second-year 
                        students for services under this 
                        paragraph.
          (3) Determination of need.--A grant provided to a 
        student under paragraph (1) shall not be considered in 
        determining that student's need for grant or work 
        assistance under this title, except that in no case 
        shall the total amount of student financial assistance 
        awarded to a student under this title exceed that 
        student's cost of attendance, as defined in section 
        472.
          (4) Matching required.--A recipient of a grant who 
        uses such funds for the purpose described in paragraph 
        (1) shall match the funds used for such purpose, in 
        cash, from non-Federal funds, in an amount that is not 
        less than 33 percent of the total amount of funds used 
        for that purpose. This paragraph shall not apply to any 
        grant recipient that is an institution of higher 
        education eligible to receive funds under part A or B 
        of title III or title V.
          (5) Reservation.--In no event may a recipient use 
        more than 20 percent of the funds received under this 
        section for grant aid.
          (6) Supplement, not supplant.--Funds received by a 
        grant recipient that are used under this subsection 
        shall be used to supplement, and not supplant, non-
        Federal funds expended for student support services 
        programs.
  (e) Requirements for approval of applications.--In approving 
applications for projects under this section for any fiscal 
year, the Secretary shall--
          (1) require an assurance that not less than two-
        thirds of the persons participating in the project 
        proposed to be carried out under any application--
                  (A) be individuals with disabilities; or
                  (B) be low-income individuals who are first 
                generation college students;
          (2) require an assurance that the remaining students 
        participating in the project proposed to be carried out 
        under any application be low-income individuals, first 
        generation college students, or individuals with 
        disabilities;
          (3) require an assurance that not less than one-third 
        of the individuals with disabilities participating in 
        the project be low-income individuals;
          (4) require that there be a determination by the 
        institution, with respect to each participant in such 
        project, that the participant has a need for academic 
        support in order to pursue successfully a program of 
        education beyond secondary school;
          (5) require that such participants be enrolled or 
        accepted for enrollment at the institution which is the 
        recipient of the grant or contract; [and]
          (6) require the grantee to maintain, to the extent 
        practicable, a record of any services participants 
        receive during the project year from another program 
        under this chapter or other federally funded programs 
        serving similar populations to minimize the duplication 
        of services; and
          [(6)] (7) 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.

SEC. 402E. POSTBACCALAUREATE ACHIEVEMENT PROGRAM AUTHORITY.

  (a) Program Authority.--The Secretary shall carry out a 
program to be known as the ``Ronald E. McNair Postbaccalaureate 
Achievement Program'' that shall be designed to provide 
disadvantaged college students with effective preparation for 
doctoral study.
  (b) Required Services.--A project assisted under this section 
shall provide--
          (1) opportunities for research or other scholarly 
        activities at the institution or at graduate centers 
        designed to provide students with effective preparation 
        for doctoral study;
          (2) [summer internships] internships and faculty-led 
        research experiences;
          (3) seminars and other educational activities 
        designed to prepare students for doctoral study;
          (4) tutoring;
          (5) academic counseling; and
          (6) activities designed to assist students 
        participating in the project in securing admission to 
        and financial assistance for enrollment in graduate 
        programs.
  (c) Permissible Services.--A project assisted under this 
section may provide services such as--
          (1) education or counseling services designed to 
        improve the financial literacy and economic literacy of 
        students, including financial planning for 
        postsecondary education;
          (2) mentoring programs involving faculty members at 
        institutions of higher education, students, or any 
        combination of such persons; and
          (3) exposure to cultural events and academic programs 
        not usually available to disadvantaged students.
  (d) Requirements.--In approving applications for projects 
assisted under this section for any fiscal year, the Secretary 
shall require--
          (1) an assurance that not less than two-thirds of the 
        individuals participating in the project proposed to be 
        carried out under any application be low-income 
        individuals who are first generation college students;
          (2) an assurance that the remaining persons 
        participating in the project proposed to be carried out 
        be from a group that is underrepresented in graduate 
        education, including--
                  (A) Alaska Natives, as defined in section 
                6306 of the Elementary and Secondary Education 
                Act of 1965;
                  (B) Native Hawaiians, as defined in section 
                6207 of such Act; and
                  (C) Native American Pacific Islanders, as 
                defined in section 320;
          (3) an assurance that participants be enrolled in a 
        degree program at an eligible institution having an 
        agreement with the Secretary in accordance with the 
        provisions of section 487; [and]
          (4) an assurance that participants in [summer] 
        research internships have completed their sophomore 
        year in postsecondary education[.]; and
          (5) the grantee to maintain, to the extent 
        practicable, a record of any services participants 
        receive during the project year from another program 
        under this chapter or other federally funded program 
        serving similar populations to minimize the duplication 
        of services.
  (e) Award Considerations.--In addition to such other 
selection criteria as may be prescribed by regulations, the 
Secretary shall consider in making awards to institutions under 
this section--
          (1) the quality of research and other scholarly 
        activities in which students will be involved;
          (2) the level of faculty involvement in the project 
        and the description of the research in which students 
        will be involved; and
          (3) the institution's plan for identifying and 
        recruiting participants including students enrolled in 
        projects authorized under this section.
  (f) Maximum Stipends.--Students participating in research 
under a project under this section may receive an award that--
          (1) shall include a stipend not to exceed $2,800 per 
        annum; and
          (2) may include, in addition, the costs of summer 
        tuition, summer room and board, and transportation to 
        summer programs.
  (g) Funding.--From amounts appropriated pursuant to the 
authority of section 402A(g), 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 [2009 through 2014] 2019 through 
2024.

SEC. 402F. EDUCATIONAL OPPORTUNITY CENTERS.

  (a) Program Authority; Services Provided.--The Secretary 
shall carry out a program to be known as educational 
opportunity centers which shall be designed--
          (1) to provide information with respect to financial 
        and academic assistance available for individuals 
        desiring to pursue or re-enter a program of 
        postsecondary education;
          (2) to provide assistance to such persons in applying 
        for admission to institutions at which a program of 
        postsecondary education is offered, including preparing 
        necessary applications for use by admissions and 
        financial aid officers; and
          (3) to improve the financial literacy and economic 
        literacy [of students] of such persons, including--
                  (A) basic personal income, household money 
                management, and financial planning skills; and
                  (B) basic economic decisionmaking skills.
  (b) Permissible Services.--An educational opportunity center 
assisted under this section may provide services such as--
          (1) public information campaigns designed to inform 
        the community regarding opportunities for postsecondary 
        education and training;
          (2) academic advice and assistance in course 
        selection;
          (3) assistance in completing college admission and 
        financial aid applications;
          (4) assistance in preparing for college entrance 
        examinations;
          (5) education or counseling services designed to 
        improve the financial literacy and economic literacy of 
        [students;] students, including--
                  (A) financial planning for postsecondary 
                education; 
                  (B) basic personal income, household money 
                management, and financial planning skills; and 
                  (C) basic economic decisionmaking skills; 
          (6) guidance on secondary school reentry or entry to 
        a general educational development (GED) program or 
        other alternative education programs for secondary 
        school dropouts;
          (7) individualized personal, career, and academic 
        counseling;
          (8) tutorial services;
          (9) career workshops and counseling;
          (10) mentoring programs involving elementary or 
        secondary school teachers, faculty members at 
        institutions of higher education, students, or any 
        combination of such persons; and
          (11) programs and activities as described in 
        paragraphs (1) through (10) that are specially designed 
        for students who are limited English proficient, 
        students from groups that are traditionally 
        underrepresented in postsecondary education, students 
        with disabilities, students who are homeless children 
        and youths (as such term is defined in section 725 of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11434a)), students who are in foster care or are aging 
        out of the foster care system, or other disconnected 
        students.
  (c) Requirements for Approval of Applications.--In approving 
applications for educational opportunity centers under this 
section for any fiscal year the Secretary shall--
          (1) require an assurance that not less than two-
        thirds of the persons participating in the project 
        proposed to be carried out under any application be 
        low-income individuals who are first generation college 
        students;
          (2) require an assurance that the remaining persons 
        participating in the project proposed to be carried out 
        under any application be low-income individuals or 
        first generation college students;
          [(2)] (3) 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)] (4) 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
          (5) require the grantee to maintain, to the extent 
        practicable, a record of any services participants 
        receive during the project year from another program 
        under this chapter or other federally funded program 
        serving similar populations to minimize the duplication 
        of services.

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, webinars 
and online classes, 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] staff 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 and innovative 
        programs for projects funded under this chapter.
          (4) The use of appropriate educational technology in 
        the operation of projects assisted under this chapter.
          (5) Strategies for recruiting and serving hard to 
        reach populations, including students who are limited 
        English proficient, students from groups that are 
        traditionally underrepresented in postsecondary 
        education, students with disabilities, students who are 
        homeless children and youths (as such term is defined 
        in section 725 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11434a)), students who are in 
        foster care or are aging out of the foster care system, 
        or other disconnected students.
  (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. REPORTS, EVALUATIONS, AND GRANTS FOR PROJECT IMPROVEMENT AND 
                    DISSEMINATION.

  (a) Reports to the Authorizing Committees.--
          (1) In general.--The Secretary shall submit annually, 
        to the authorizing committees, a report that documents 
        the performance of all programs funded under this 
        chapter. Such report shall--
                  (A) be submitted not later than 12 months 
                after the eligible entities receiving funds 
                under this chapter are required to report their 
                performance to the Secretary;
                  (B) focus on the programs' performance on the 
                relevant outcome criteria determined under 
                section 402A(f)(4);
                  (C) aggregate individual project performance 
                data on the outcome criteria in order to 
                provide national performance data for each 
                program;
                  (D) include, when appropriate, descriptive 
                data, multi-year data, and multi-cohort data; 
                and
                  (E) include comparable data on the 
                performance nationally of low-income students, 
                first-generation students, and students with 
                disabilities.
          (2) Information.--The Secretary shall provide, with 
        each report submitted under paragraph (1), information 
        on the impact of the secondary review process described 
        in section 402A(c)(8)(C)(iv), including the number and 
        type of secondary reviews, the disposition of the 
        secondary reviews, the effect on timing of awards, and 
        any other information the Secretary determines is 
        necessary.
  [(b) Evaluations.--
          [(1) In general.--
                  [(A) Authorization of grants and contracts.--
                For the purpose of improving the effectiveness 
                of the programs and projects assisted under 
                this chapter, the Secretary shall make grants 
                to, or enter into contracts with, institutions 
                of higher education and other public and 
                private institutions and organizations to 
                rigorously evaluate the effectiveness of the 
                programs and projects assisted under this 
                chapter, including a rigorous evaluation of the 
                programs and projects assisted under section 
                402C. The evaluation of the programs and 
                projects assisted under section 402C shall be 
                implemented not later than June 30, 2010.
                  [(B) Content of upward bound evaluation.--The 
                evaluation of the programs and projects 
                assisted under section 402C that is described 
                in subparagraph (A) shall examine the 
                characteristics of the students who benefit 
                most from the Upward Bound program under 
                section 402C and the characteristics of the 
                programs and projects that most benefit 
                students.
                  [(C) Implementation.--Each evaluation 
                described in this paragraph shall be 
                implemented in accordance with the requirements 
                of this section.
          [(2) Practices.--
                  [(A) In general.--The evaluations described 
                in paragraph (1) shall identify institutional, 
                community, and program or project practices 
                that are effective in--
                          [(i) enhancing the access of low-
                        income individuals and first-generation 
                        college students to postsecondary 
                        education;
                          [(ii) the preparation of such 
                        individuals and students for 
                        postsecondary education; and
                          [(iii) fostering the success of the 
                        individuals and students in 
                        postsecondary education.
                  [(B) Primary purpose.--Any evaluation 
                conducted under this chapter shall have as the 
                evaluation's primary purpose the identification 
                of particular practices that further the 
                achievement of the outcome criteria determined 
                under section 402A(f)(4).
                  [(C) Dissemination and use of evaluation 
                findings.--The Secretary shall disseminate to 
                eligible entities and make available to the 
                public the practices identified under 
                subparagraph (B). The practices may be used by 
                eligible entities that receive assistance under 
                this chapter after the dissemination.
          [(3) Special rule related to evaluation 
        participation.--The Secretary shall not require an 
        eligible entity, as a condition for receiving, or that 
        receives, assistance under any program or project under 
        this chapter to participate in an evaluation under this 
        section that--
                  [(A) requires the eligible entity to recruit 
                additional students beyond those the program or 
                project would normally recruit; or
                  [(B) results in the denial of services for an 
                eligible student under the program or project.
          [(4) Consideration.--When designing an evaluation 
        under this subsection, the Secretary shall continue to 
        consider--
                  [(A) the burden placed on the program 
                participants or the eligible entity; and
                  [(B) whether the evaluation meets generally 
                accepted standards of institutional review 
                boards.]
  (b) Evaluations.--
          (1) In general.--For the purpose of improving the 
        effectiveness of the programs 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 assisted under this chapter; and
                  (B) disseminate information on the impact of 
                the programs in increasing the education level 
                of participants, as well as other appropriate 
                measures.
          (2) Issues to be evaluated.--The evaluations 
        described in paragraph (1) shall measure the 
        effectiveness of programs funded under this chapter 
        in--
                  (A) meeting or exceeding the stated 
                objectives regarding the outcome criteria under 
                subsection (f) of section 402A;
                  (B) enhancing the access of low-income 
                individuals and first-generation college 
                students to postsecondary education;
                  (C) preparing individuals 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 programs funded under this 
        chapter of increasing access to, and retention of, 
        students in postsecondary education.
          (4) Results.--The Secretary shall submit to the 
        authorizing committees--
                  (A) an interim report on the progress and 
                preliminary results of the evaluation of each 
                program funded under this chapter not later 
                than 2 years following the date of enactment of 
                the PROSPER Act; and
                  (B) a final report not later than 3 years 
                following the date of enactment of such Act.
          (5) Public availability.--All reports and underlying 
        data gathered pursuant to this subsection shall be made 
        available to the public upon request, in a timely 
        manner following submission of the applicable reports 
        under this subsection, except that any personally 
        identifiable information with respect to a student 
        participating in a program or project assisted under 
        this chapter shall not be disclosed or made available 
        to the public.
  (c) 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.
  (d) 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. 402I. IMPACT GRANTS.

  (a) In General.--From funds reserved under subsection (e), 
the Secretary shall make grants to improve postsecondary access 
and completion rates for qualified individuals from 
disadvantaged backgrounds. These grants shall be known as 
innovative measures promoting postsecondary access and 
completion grants or ``IMPACT Grants'' and allow eligible 
entities to--
          (1) create, develop, implement, replicate, or take to 
        scale evidence-based, field-initiated innovations, 
        including through pay-for-success initiatives, to serve 
        qualified individuals from disadvantaged backgrounds 
        and improve student outcomes; and
          (2) rigorously evaluate such innovations, in 
        accordance with subsection (d).
  (b) Description of Grants.--The grants described in 
subsection (a) shall include--
          (1) early-phase grants to fund the development, 
        implementation, and feasibility testing of a program, 
        which prior research suggests has a promise, for the 
        purpose of determining whether the program can 
        successfully improve postsecondary access and 
        completion rates;
          (2) mid-phase grants to fund implementation and a 
        rigorous evaluation of a program that has been 
        successfully implemented under an early-phase grant 
        described in paragraph (1); and
          (3) expansion grants to fund implementation and a 
        rigorous replication evaluation of a program that has 
        been found to produce sizable, important impacts under 
        a mid-phase grant described in paragraph (2) for the 
        purposes of--
                  (A) determining whether such outcomes can be 
                successfully reproduced and sustained over 
                time; and
                  (B) identifying the conditions in which the 
                project is most effective.
  (c) Requirements for Approval of Applications.--To receive a 
grant under this section, an eligible entity shall submit an 
application to the Secretary at such time, and in such manner 
as the Secretary may require, which shall include--
          (1) an assurance that not less than two-thirds of the 
        individuals who will participate in the program 
        proposed to be carried out with the grant will be--
                  (A) low-income individuals who are first 
                generation college students; or
                  (B) individuals with disabilities;
          (2) an assurance that any other individuals (not 
        described in paragraph (1)) who will participate in 
        such proposed program will be--
                  (A) low-income individuals;
                  (B) first generation college students; or
                  (C) individuals with disabilities;
          (3) a detailed description of the proposed program, 
        including how such program will directly benefit 
        students;
          (4) the number of projected students to be served by 
        the program;
          (5) how the program will be evaluated; and
          (6) an assurance that the individuals participating 
        in the project proposed are individuals who do not have 
        access to services from another programs funded under 
        this section.
  (d) Evaluation.--Each eligible entity receiving a grant under 
this section shall conduct an independent evaluation of the 
effectiveness of the program carried out with such grant and 
shall submit to the Secretary, on an annual basis, a report 
that includes--
          (1) a description of how funds received under this 
        section were used;
          (2) the number of students served by the project 
        carried out under this section; and
          (3) a quantitative analysis of the effectiveness of 
        the project.
  (e) Funding.--From amounts appropriated under section 
402A(g), the Secretary shall reserve not less than 10 percent 
of such funds to carry out this section.

  CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE 
                                PROGRAMS

SEC. 404A. EARLY INTERVENTION AND COLLEGE AWARENESS PROGRAM AUTHORIZED.

  (a) Program Authorized.--The Secretary is authorized, in 
accordance with the requirements of this chapter, to establish 
a program that encourages eligible entities to provide support, 
and maintain a commitment, to eligible low-income students, 
including students with disabilities, to assist the students in 
obtaining a secondary school diploma (or its recognized 
equivalent) and to prepare for and succeed in postsecondary 
education, by providing--
          (1) financial assistance, [academic support] academic 
        support for college readiness, additional counseling, 
        mentoring, outreach, and supportive services to 
        secondary school students, including students with 
        disabilities, to reduce--
                  (A) the risk of such students dropping out of 
                school; or
                  (B) the need for remedial education for such 
                students at the postsecondary level; and
          (2) information to students and their families about 
        the advantages of obtaining a postsecondary education 
        and, college financing options for the students and 
        their families.
  (b) Awards.--
          (1) In general.--From funds appropriated under 
        section 404H for each fiscal year, the Secretary shall 
        make new awards to eligible entities described in 
        paragraphs (1) and (2) of subsection (c) to enable the 
        entities to carry out the program authorized under 
        subsection (a).
          (2) Award period.--The Secretary may award a grant 
        under this chapter to an eligible entity described in 
        paragraphs (1) and (2) of subsection (c) for--
                  (A) six years; or
                  (B) in the case of an eligible entity that 
                applies for a grant under this chapter for 
                seven years to enable the eligible entity to 
                provide services to a student through the 
                student's first year of attendance at an 
                institution of higher education, seven years.
          (3) Priority.--In making awards to eligible entities 
        described in subsection (c)(1), the Secretary shall--
                  [(A) give priority to eligible entities 
                that--
                          [(i) on the day before the date of 
                        enactment of the Higher Education 
                        Opportunity Act, carried out successful 
                        educational opportunity programs under 
                        this chapter (as this chapter was in 
                        effect on such day); and
                          [(ii) have a prior, demonstrated 
                        commitment to early intervention 
                        leading to college access through 
                        collaboration and replication of 
                        successful strategies; and]
                  (A) give priority to eligible entities that 
                have a prior, demonstrated commitment to early 
                intervention leading to college access and 
                readiness through collaboration and replication 
                of successful strategies; and
                  (B) ensure that students served under this 
                chapter on the day before the date of enactment 
                of [the Higher Education Opportunity Act] the 
                PROSPER Act continue to receive assistance 
                through the completion of secondary school.
          (4) Multiple award prohibition.--Eligible entities 
        described in subsection (c)(1) that receive a grant 
        under this chapter shall not be eligible to receive an 
        additional grant under this chapter until after the 
        date on which the initial grant period expires.
  (c) Definition of Eligible Entity.--For the purposes of this 
chapter, the term ``eligible entity'' means--
          (1) a State; or
          (2) a partnership--
                  (A) consisting of--
                          (i) one or more local educational 
                        agencies; and
                          (ii) one or more degree granting 
                        institutions of higher education; and
                  (B) which may include not less than two other 
                community organizations or entities, such as 
                businesses, professional organizations, State 
                agencies, [institutions or agencies sponsoring 
                programs authorized under subpart 4,] or other 
                public or private agencies or organizations.

           *       *       *       *       *       *       *


SEC. 404C. APPLICATIONS.

  (a) Application Required for Eligibility.--
          (1) In general.--In order for an eligible entity to 
        qualify for a grant under this chapter, the eligible 
        entity shall submit to the Secretary an application for 
        carrying out the program under this chapter.
          (2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall be in such form[, contain or be 
        accompanied by such information or assurances,] and be 
        submitted at such time as the Secretary may reasonably 
        require. Each such application shall[, at a minimum]--
                  (A) describe the activities for which 
                assistance under this chapter is sought, 
                including how the eligible entity will carry 
                out the required activities described in 
                section 404D(a);
                  [(B) describe, in the case of an eligible 
                entity described in section 404A(c)(2) that 
                chooses to provide scholarships, or an eligible 
                entity described in section 404A(c)(1), how the 
                eligible entity will meet the requirements of 
                section 404E;]
                  (B) describe, in the case of an eligible 
                entity described in section 404A(c)(2) that 
                chooses to provide scholarships, or an eligible 
                entity described in section 404A(c)(1)--
                          (i) the eligible entity's plan to 
                        establish or maintain a financial 
                        assistance program in accordance with 
                        the requirements of section 404E, 
                        including any eligibility criteria 
                        other than the criteria described in 
                        section 404E(g), such as--
                                  (I) demonstrating financial 
                                need;
                                  (II) meeting and maintaining 
                                satisfactory academic progress; 
                                and
                                  (III) other criteria aligned 
                                with State and local goals to 
                                increase postsecondary 
                                readiness, access, and 
                                completion; and
                          (ii) how the eligible entity will 
                        meet the other requirements of section 
                        404E;
                  (C) describe, in the case of an eligible 
                entity described in section 404A(c)(2) that 
                requests a reduced match percentage under 
                subsection (b)(2), how such reduction will 
                assist the entity to provide the scholarships 
                described in subsection (b)(2)(A)(ii);
                  (D) provide assurances that adequate 
                administrative and support staff will be 
                responsible for coordinating the activities 
                described in section 404D;
                  (E) provide assurances that activities 
                assisted under this chapter will not displace 
                an employee or eliminate a position at a school 
                assisted under this chapter, including a 
                partial displacement such as a reduction in 
                hours, wages, or employment benefits;
                  (F) describe, in the case of an eligible 
                entity described in section 404A(c)(1) that 
                chooses to use a cohort approach, or an 
                eligible entity described in section 
                404A(c)(2), how the eligible entity will define 
                the cohorts of the students served by the 
                eligible entity pursuant to section 404B(d), 
                and how the eligible entity will serve the 
                cohorts through grade 12, including--
                          (i) how vacancies in the program 
                        under this chapter will be filled; and
                          (ii) how the eligible entity will 
                        serve students attending different 
                        secondary schools;
                  (G) describe how the eligible entity will 
                coordinate programs under this chapter with 
                other existing Federal, State, or local 
                programs to avoid duplication and maximize the 
                number of students served;
                  [(H) provide such additional assurances as 
                the Secretary determines necessary to ensure 
                compliance with the requirements of this 
                chapter;]
                  [(I)] (H) provide information about the 
                activities that will be carried out by the 
                eligible entity to support systemic changes 
                from which future cohorts of students will 
                benefit; and
                  [(J)] (I) describe the sources of matching 
                funds that will enable the eligible entity to 
                meet the matching requirement described in 
                subsection (b).
  (b) Matching Requirement.--
          (1) In general.--The Secretary shall not approve an 
        application submitted under subsection (a) unless such 
        application--
                  (A) provides that the eligible entity will 
                provide, from State, local, institutional, or 
                private funds, not less than 50 percent of the 
                cost of the program, which matching funds may 
                be provided in cash or in kind and may be 
                accrued over the full duration of the grant 
                award period, except that the eligible entity 
                shall make substantial progress towards meeting 
                the matching requirement in each year of the 
                grant award period;
                  (B) specifies the methods by which matching 
                funds will be paid; and
                  (C) includes provisions designed to ensure 
                that funds provided under this chapter shall 
                supplement and not supplant funds expended for 
                existing programs.
          [(2) Special rule.--Notwithstanding the matching 
        requirement described in paragraph (1)(A), the 
        Secretary may by regulation modify the percentage 
        requirement described in paragraph (1)(A) for eligible 
        entities described in section 404A(c)(2). The Secretary 
        may approve an eligible entity's request for a reduced 
        match percentage--
                  [(A) at the time of application--
                          [(i) if the eligible entity 
                        demonstrates significant economic 
                        hardship that precludes the eligible 
                        entity from meeting the matching 
                        requirement; or
                          [(ii) if the eligible entity is 
                        described in section 404A(c)(2) and 
                        requests that contributions to the 
                        eligible entity's scholarship fund 
                        established under section 404E be 
                        matched on a two to one basis; or
                  [(B) in response to a petition by an eligible 
                entity subsequent to a grant award under this 
                section if the eligible entity demonstrates 
                that the matching funds described in its 
                application are no longer available and the 
                eligible entity has exhausted all revenues for 
                replacing such matching funds.]
          (2) Special rule.--Notwithstanding the matching 
        requirement described in paragraph (1)(A), the 
        Secretary may--
                  (A) at the time of application--
                          (i) approve a Partnership applicant's 
                        request for a waiver of up to 75 
                        percent of the matching requirement for 
                        up to two years if the applicant 
                        demonstrates in its application a 
                        significant economic hardship that 
                        stems from a specific, exceptional, or 
                        uncontrollable event, such as a natural 
                        disaster, that has a devastating effect 
                        on the members of the Partnership and 
                        the community in which the project 
                        would operate;
                          (ii)(I) approve a Partnership 
                        applicant's request to waive up to 50 
                        percent of the matching requirement for 
                        up to two years if the applicant 
                        demonstrates in its application a pre-
                        existing and an on-going significant 
                        economic hardship that precludes the 
                        applicant from meeting its matching 
                        requirement; and
                          (II) provide tentative approval of an 
                        applicant's request for a waiver under 
                        subclause (I) for all remaining years 
                        of the project period;
                          (iii) approve a Partnership 
                        applicant's request in its application 
                        to match its contributions to its 
                        scholarship fund, established under 
                        section 404E, on the basis of two non-
                        Federal dollars for every one dollar of 
                        Federal funds provided under this 
                        chapter; or
                          (iv) approve a request by a 
                        Partnership applicant that has three or 
                        fewer institutions of higher education 
                        as members to waive up to 70 percent of 
                        the matching requirement if the 
                        Partnership applicant includes--
                                  (I) a fiscal agent that is 
                                eligible to receive funds under 
                                title V, or part B of title 
                                III, or section 316 or 317, or 
                                a local educational agency;
                                  (II) only participating 
                                schools with a 7th grade cohort 
                                in which at least 75 percent of 
                                the students are eligible for 
                                free or reduced-price lunch 
                                under the Richard B. Russell 
                                National School Lunch Act; and
                                  (III) only local educational 
                                agencies in which at least 50 
                                percent of the students 
                                enrolled are eligible for free 
                                or reduced-price lunch under 
                                the Richard B. Russell National 
                                School Lunch Act; and
                  (B) after a grant is awarded, approve a 
                Partnership grantee's written request for a 
                waiver of up to--
                          (i) 50 percent of the matching 
                        requirement for up to two years if the 
                        grantee demonstrates that--
                                  (I) the matching 
                                contributions described for 
                                those two years in the 
                                grantee's approved application 
                                are no longer available; and
                                  (II) the grantee has 
                                exhausted all funds and sources 
                                of potential contributions for 
                                replacing the matching funds; 
                                or
                          (ii) 75 percent of the matching 
                        requirement for up to two years if the 
                        grantee demonstrates that matching 
                        contributions from the original 
                        application are no longer available due 
                        to an uncontrollable event, such as a 
                        natural disaster, that has a 
                        devastating economic effect on members 
                        of the Partnership and the community in 
                        which the project would operate.
          (3) Additional terms.--
                  (A) On-going economic hardship.--In 
                determining whether a Partnership applicant is 
                experiencing an on-going economic hardship that 
                is significant enough to justify a waiver under 
                subparagraphs (A)(i) and (A)(ii)(I) of 
                paragraph (2), the Secretary may consider 
                documentation of the following:
                          (i) Severe distress in the local 
                        economy of the community to be served 
                        by the grant (e.g., there are few 
                        employers in the local area, large 
                        employers have left the local area, or 
                        significant reductions in employment in 
                        the local area).
                          (ii) Local unemployment rates that 
                        are higher than the national average.
                          (iii) Low or decreasing revenues for 
                        State and County governments in the 
                        area to be served by the grant.
                          (iv) Significant reductions in the 
                        budgets of institutions of higher 
                        education that are participating in the 
                        grant.
                          (v) Other data that reflect a 
                        significant economic hardship for the 
                        geographical area served by the 
                        applicant.
                  (B) Exhaustion of funds.--In determining 
                whether a Partnership grantee has exhausted all 
                funds and sources of potential contributions 
                for replacing matching funds under paragraph 
                (2)(B), the secretary may consider the 
                grantee's documentation of key factors that 
                have had a direct impact on the grantee such as 
                the following:
                          (i) A reduction of revenues from 
                        State government, County government, or 
                        the local educational agency.
                          (ii) An increase in local 
                        unemployment rates.
                          (iii) Significant reductions in the 
                        operating budgets of institutions of 
                        higher education that are participating 
                        in the grant.
                          (iv) A reduction of business activity 
                        in the local area (e.g., large 
                        employers have left the local area).
                          (v) Other data that reflect a 
                        significant decrease in resources 
                        available to the grantee in the local 
                        geographical area served by the 
                        grantee.
                  (C) Renewal of waiver.--A Partnership 
                applicant that receives a tentative approval of 
                a waiver under subparagraph (A)(ii)(II) of 
                paragraph (2) for more than two years under 
                this paragraph must submit to the Secretary 
                every two years by such time as the Secretary 
                may direct documentation that demonstrates 
                that--
                          (i) the significant economic hardship 
                        upon which the waiver was granted still 
                        exists; and
                          (ii) the grantee tried diligently, 
                        but unsuccessfully, to obtain 
                        contributions needed to meet the 
                        matching requirement.
                  (D) Multiple waivers.--If a grantee has 
                received one or more waivers under paragraph 
                (2), the grantee may request an additional 
                waiver of the matching requirement under this 
                subsection not earlier than 60 days before the 
                expiration of the grantee's existing waiver.
  (c) Methods for Complying With Matching Requirement.--An 
eligible entity may count toward the matching requirement 
described in subsection (b)(1)(A)--
          (1) the amount of the financial assistance obligated 
        to students from State, local, institutional, or 
        private funds under this chapter, including pre-
        existing non-Federal financial assistance programs, 
        including--
                  (A) the amount contributed to a student 
                scholarship fund established under section 
                404E; and
                  (B) the amount of the costs of administering 
                the scholarship program under section 404E;
          (2) the amount of tuition, fees, room or board waived 
        or reduced for recipients of financial assistance under 
        this chapter;
          (3) the amount expended on documented, targeted, 
        long-term mentoring and counseling provided by 
        volunteers or paid staff of nonschool organizations, 
        including businesses, religious organizations, 
        community groups, postsecondary educational 
        institutions, nonprofit and philanthropic 
        organizations, and other organizations; and
          (4) other resources recognized by the Secretary, 
        including equipment and supplies, cash contributions 
        from non-Federal sources, transportation expenses, in-
        kind or discounted program services, indirect costs, 
        and facility usage.
  (d) Peer Review Panels.--The Secretary shall convene peer 
review panels to assist in making determinations regarding the 
awarding of grants under this chapter.

SEC. 404D. ACTIVITIES.

  (a) Required Activities.--Each eligible entity receiving a 
grant under this chapter shall provide comprehensive mentoring, 
outreach, and supportive services to students participating in 
the programs under this chapter. Such activities shall include 
the following:
          (1) Providing information regarding [financial aid 
        for] financial aid, including loans, grants, 
        scholarships, and institutional aid for postsecondary 
        education to participating students in the cohort 
        described in section 404B(d)(1)(A) or to priority 
        students described in subsection (d).
          (2) Encouraging student enrollment in [rigorous and 
        challenging curricula and coursework, in order to] 
        curricula and coursework designed to reduce the need 
        for remedial coursework at the postsecondary level.
          (3) Providing information to students and families 
        about the advantages of obtaining a postsecondary 
        education.
          (4) Providing tutors and mentors, who may include 
        adults or former participants of a program under this 
        chapter, for use by eligible students in need.
          [(3)] (5) [Improving] Providing supportive services 
        to improve the number of participating students who--
                  (A) obtain a secondary school diploma; and
                  (B) complete applications for and enroll in a 
                program of postsecondary education.
          [(4)] (6) In the case of an eligible entity described 
        in section 404A(c)(1), providing for the scholarships 
        described in section 404E.
  (b) Permissible Activities for States and Partnerships.--An 
eligible entity that receives a grant under this chapter may 
use grant funds to carry out one or more of the following 
activities:
          [(1) Providing tutors and mentors, who may include 
        adults or former participants of a program under this 
        chapter, for eligible students.]
          [(2)] (1) Conducting outreach activities to recruit 
        priority students described in subsection (d) to 
        participate in program activities.
          [(3)] (2) Providing supportive services to eligible 
        students.
          [(4)] (3) Supporting the development or 
        implementation of [rigorous] academic curricula, which 
        may include college preparatory, Advanced Placement, or 
        International Baccalaureate programs, and providing 
        participating students access to [rigorous] core 
        academic courses that reflect challenging State 
        academic standards.
          [(5)] (4) Supporting dual or concurrent enrollment 
        programs between the secondary school and institution 
        of higher education partners of an eligible entity 
        described in section 404A(c)(2), and other activities 
        that support participating students in--
                  (A) meeting challenging State academic 
                standards;
                  (B) successfully applying for postsecondary 
                education;
                  (C) successfully applying for student 
                financial aid; and
                  (D) developing graduation and career plans.
          [(6)] (5) Providing special programs or tutoring in 
        science, technology, engineering, or mathematics.
          [(7)] (6) In the case of an eligible entity described 
        in section 404A(c)(2), providing support for 
        scholarships described in section 404E.
          [(8)] (7) Introducing eligible students to 
        institutions of higher education, through trips and 
        school-based sessions.
          [(9)] (8) Providing an intensive extended school day, 
        school year, or summer program that offers--
                  (A) additional academic classes; or
                  (B) assistance with college admission 
                applications.
          [(10)] (9) Providing other activities designed to 
        ensure secondary school completion and postsecondary 
        education enrollment of at-risk children, such as--
                  (A) the identification of at-risk children;
                  (B) after-school and summer tutoring;
                  (C) assistance to at-risk children in 
                obtaining summer jobs;
                  (D) academic counseling;
                  (E) providing counseling or referral services 
                to address the behavioral, social-emotional, 
                and mental health needs of at-risk students;
                  [(E)] (F) financial literacy and economic 
                literacy education or counseling;
                  [(F)] (G) volunteer and parent involvement;
                  [(G)] (H) encouraging former or current 
                participants of a program under this chapter to 
                serve as peer counselors;
                  [(H) skills assessments] (I) skills, 
                cognitive, non-cognitive, and credit-by-
                examination assessments;
                  [(I)] (J) personal and family counseling, and 
                home visits;
                  [(J)] (K) staff development; [and]
                  [(K)] (L) programs and activities described 
                in this subsection that are specially designed 
                for students who are limited English 
                proficient[.]; and
                  (M) capacity building activities that create 
                college-going cultures in participating schools 
                and local education agencies.
          [(11)] (10) Enabling eligible students to enroll in 
        Advanced Placement or International Baccalaureate 
        courses, or college entrance examination preparation 
        courses.
          [(12)] (11) Providing services to eligible students 
        in the participating cohort described in section 
        404B(d)(1)(A), through the first year of attendance at 
        an institution of higher education.
          [(13)] (12) Fostering and improving parent and family 
        involvement in elementary and secondary education by 
        promoting the advantages of a college education, and 
        emphasizing academic admission requirements and the 
        need to take college preparation courses, through 
        parent engagement and leadership activities.
          [(14)] (13) Disseminating information that promotes 
        the importance of higher education, explains college 
        preparation and admission requirements, and raises 
        awareness of the resources and services provided by the 
        eligible entities to eligible students, their families, 
        and communities.
          [(15)] (14) In the event that matching funds 
        described in the application are no longer available, 
        engaging entities described in section 404A(c)(2) in a 
        collaborative manner to provide matching resources and 
        participate in other activities authorized under this 
        section.
          (15) Creating or expanding drop-out recovery programs 
        that allow individuals who drop out of school to 
        complete a regular secondary school diploma and begin 
        college-level work.
  (c) Additional Permissible Activities for States.--In 
addition to the required activities described in subsection (a) 
and the permissible activities described in subsection (b), an 
eligible entity described in section 404A(c)(1) receiving funds 
under this chapter may use grant funds to carry out one or more 
of the following activities:
          (1) Providing technical assistance to--
                  (A) secondary schools that are located within 
                the State; or
                  (B) partnerships described in section 
                404A(c)(2) that are located within the State.
          (2) Providing professional development opportunities 
        to individuals working with eligible cohorts of 
        students described in section 404B(d)(1)(A).
          (3) Providing administrative support and technical 
        assistance to help build the capacity of eligible 
        entities described in section 404A(c)(2) to compete for 
        and manage grants awarded under this chapter.
          (4) Providing strategies and activities that align 
        efforts in the State to prepare eligible students to 
        attend and succeed in postsecondary education, which 
        may include the development of graduation and career 
        plans.
          (5) Disseminating information on the use of 
        scientifically valid research and best practices to 
        improve services for eligible students.
          (6)(A) Disseminating information on effective 
        coursework and support services that assist students in 
        obtaining the goals described in subparagraph (B)(ii).
          (B) Identifying and disseminating information on best 
        practices with respect to--
                  (i) increasing parental involvement; and
                  (ii) preparing students, including students 
                with disabilities and students who are limited 
                English proficient, to succeed academically in, 
                and prepare financially for, postsecondary 
                education.
          (7) Working to align State academic standards and 
        curricula with the expectations of postsecondary 
        institutions and employers.
          (8) Developing alternatives to traditional secondary 
        school that give students a head start on attaining a 
        recognized postsecondary credential (including an 
        industry-recognized certificate, an apprenticeship, or 
        an associate's or a bachelor's degree), including 
        school designs that give students early exposure to 
        college-level courses and experiences and allow 
        students to earn transferable college credits or an 
        associate's degree at the same time as a secondary 
        school diploma.
          [(9) Creating community college programs for drop-
        outs that are personalized drop-out recovery programs 
        that allow drop-outs to complete a regular secondary 
        school diploma and begin college-level work.]
  (d) Priority Students.--For eligible entities not using a 
cohort approach, the eligible entity shall treat as a priority 
student any student in secondary school who is--
          (1) eligible to be counted under section 1124(c) of 
        the Elementary and Secondary Education Act of 1965;
          (2) eligible for assistance under a State program 
        funded under part A or E of title IV of the Social 
        Security Act (42 U.S.C. 601 et seq., 670 et seq.);
          (3) eligible for assistance under subtitle B of title 
        VII of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11431 et seq.); or
          (4) otherwise considered by the eligible entity to be 
        a disconnected student.
  (e) Allowable Providers.--In the case of eligible entities 
described in section 404A(c)(1), the activities required by 
this section may be provided by service providers such as 
community-based organizations, schools, institutions of higher 
education, public and private agencies, nonprofit and 
philanthropic organizations, businesses, [institutions and 
agencies sponsoring programs authorized under subpart 4,] and 
other organizations the State determines appropriate.

SEC. 404E. SCHOLARSHIP COMPONENT.

  (a) In General.--
          (1) States.--In order to receive a grant under this 
        chapter, an eligible entity described in section 
        404A(c)(1) shall establish or maintain a financial 
        assistance program described in section 
        404C(a)(2)(B)(i) that awards scholarships to students 
        in accordance with the requirements of this section. 
        The Secretary shall encourage the eligible entity to 
        ensure that a scholarship provided pursuant to this 
        section is available to an eligible student for use at 
        any institution of higher education.
          (2) Partnerships.--An eligible entity described in 
        section 404A(c)(2) may award scholarships to eligible 
        students in accordance with the requirements of this 
        section.
  (b) Limitation.--
          (1) In general.--Subject to paragraph (2), each 
        eligible entity described in section 404A(c)(1) that 
        receives a grant under this chapter shall use not less 
        than 25 percent and not more than 50 percent of the 
        grant funds for activities described in section 404D 
        (except for the activity described in subsection (a)(4) 
        of such section), with the remainder of such funds to 
        be used for a scholarship program under this section in 
        accordance with such subsection.
          (2) Exception.--Notwithstanding paragraph (1), the 
        Secretary may allow an eligible entity to use more than 
        50 percent of grant funds received under this chapter 
        for such activities, if the eligible entity 
        demonstrates that the eligible entity has another means 
        of providing the students with the financial assistance 
        described in this section and describes such means in 
        the application submitted under section 404C.
  (c) Notification of Eligibility.--Each eligible entity 
providing scholarships under this section shall provide 
information on the eligibility requirements for the 
scholarships to all participating students upon the students' 
entry into the programs assisted under this chapter.
  (d) Grant Amounts.--The maximum amount of a scholarship that 
an eligible student shall be eligible to receive under this 
section shall be established by the eligible entity. The 
minimum amount of the scholarship for each fiscal year shall 
not be less than the minimum Federal Pell Grant award under 
section 401 for such award year.
  (e) Portability of Assistance.--
          (1) In general.--Each eligible entity described in 
        section 404A(c)(1) that receives a grant under this 
        chapter shall hold in reserve, for the students served 
        by such grant as described in section 404B(d)(1)(A) or 
        404D(d), [an amount that is not less than the minimum 
        scholarship amount described in subsection (d), 
        multiplied by the number of students the eligible 
        entity estimates will meet the requirements of 
        paragraph (2).] an estimated amount that is based on 
        the requirements of the financial assistance program of 
        the eligible entity described in section 
        404C(a)(2)(B)(i).
          (2) Requirement for portability.--Funds held in 
        reserve under paragraph (1) shall be made available to 
        an eligible student when the eligible student has--
                  (A) completed a secondary school diploma, its 
                recognized equivalent, or another recognized 
                alternative standard for individuals with 
                disabilities; and
                  (B) enrolled in an institution of higher 
                education.
          (3) Qualified educational expenses.--Funds available 
        to an eligible student under this subsection may be 
        used for--
                  (A) tuition, fees, books, supplies, and 
                equipment required for the enrollment or 
                attendance of the eligible student at an 
                institution of higher education; and
                  (B) in the case of an eligible student with 
                special needs, expenses for special needs 
                services that are incurred in connection with 
                such enrollment or attendance.
          (4) Return of funds.--
                  (A) Redistribution.--
                          (i) In general.--Funds held in 
                        reserve under paragraph (1) that are 
                        not used by an eligible student within 
                        six years of the student's scheduled 
                        completion of secondary school may be 
                        redistributed by the eligible entity to 
                        other eligible students.
                          (ii) Return of excess to the 
                        secretary.--If, after meeting the 
                        requirements of paragraph (1) and, if 
                        applicable, redistributing excess funds 
                        in accordance with clause (i) of this 
                        subparagraph, an eligible entity has 
                        funds held in reserve under paragraph 
                        (1) that remain available, the eligible 
                        entity shall return such remaining 
                        reserved funds to the Secretary for 
                        distribution to other grantees under 
                        this chapter in accordance with the 
                        funding rules described in section 
                        404B(a).
                  (B) Nonparticipating entity.--Notwithstanding 
                subparagraph (A), in the case of an eligible 
                entity that does not receive assistance under 
                this subpart for six fiscal years, the eligible 
                entity shall return any funds held in reserve 
                under paragraph (1) that are not awarded or 
                obligated to eligible students to the Secretary 
                for distribution to other grantees under this 
                chapter.
  (f) Relation to Other Assistance.--Scholarships provided 
under this section shall not be considered for the purpose of 
awarding Federal grant assistance under this title, except that 
in no case shall the total amount of student financial 
assistance awarded to a student under this title exceed such 
student's total cost of attendance.
  (g) Eligible Students.--A student eligible for assistance 
under this section is a student who--
          (1) is less than 22 years old at time of first 
        scholarship award under this section;
          (2) receives a secondary school diploma or its 
        recognized equivalent on or after January 1, 1993;
          (3) is enrolled or accepted for enrollment in a 
        program of undergraduate instruction at an institution 
        of higher education that is located within the State's 
        boundaries, except that, at the State's option, an 
        eligible entity may offer scholarship program 
        portability for recipients who attend institutions of 
        higher education outside such State; and
          (4) who participated in the activities required under 
        section 404D(a).

           *       *       *       *       *       *       *


SEC. 404G. EVALUATION AND REPORT.

  (a) Evaluation.--Each eligible entity receiving a grant under 
this chapter shall biennially evaluate the activities assisted 
under this chapter in accordance with the standards described 
in subsection (b) and shall submit to the Secretary a copy of 
such evaluation. The evaluation shall permit service providers 
to track eligible student progress during the period such 
students are participating in the activities and shall be 
consistent with the standards developed by the Secretary 
pursuant to subsection (b).
  (b) Evaluation Standards.--The Secretary shall prescribe 
standards for the evaluation described in subsection (a). Such 
standards shall--
          (1) provide for input from eligible entities and 
        service providers; [and]
          (2) ensure that data protocols and procedures are 
        consistent and uniform[.]; and
          (3) include the following metrics:
                  (A) the number of students completing the 
                Free Application for Federal Student Aid;
                  (B) the enrollment of participating students 
                in curricula and coursework designed to reduce 
                the need for remedial coursework at the 
                postsecondary level;
                  (C) if applicable, the number of students 
                receiving a scholarship;
                  (D) the graduation rate of participating 
                students from high school;
                  (E) the enrollment of participating students 
                into postsecondary education; and
                  (F) such other information as the Secretary 
                may require.
  (c) Federal Evaluation.--In order to evaluate and improve the 
impact of the activities assisted under this chapter, the 
Secretary shall, from not more than 0.75 percent of the funds 
appropriated under section 404H for a fiscal year, award one or 
more grants, contracts, or cooperative agreements to or with 
public and private institutions and organizations, to enable 
the institutions and organizations to evaluate the 
effectiveness of the program and, as appropriate, disseminate 
the results of the evaluation. Such evaluation shall include a 
separate analysis of--
          (1) the implementation of the scholarship component 
        described in section 404E; and
          (2) the use of methods for complying with matching 
        requirements described in paragraphs (1) and (2) of 
        section 404C(c).
  (d) Report.--The Secretary shall biennially report to 
Congress regarding the activities assisted under this chapter 
and the evaluations conducted pursuant to this section.

SEC. 404H. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
chapter [$400,000,000 for fiscal year 2009 and such sums as may 
be necessary for each of the five succeeding fiscal years] 
$339,754,000 for fiscal year 2019 and each of the five 
succeeding fiscal years.

    [Subpart 3--Federal Supplemental Educational Opportunity Grants

[SEC. 413A. PURPOSE; APPROPRIATIONS AUTHORIZED.

  [(a) Purpose of Subpart.--It is the purpose of this subpart 
to provide, through institutions of higher education, 
supplemental grants to assist in making available the benefits 
of postsecondary education to qualified students who 
demonstrate financial need in accordance with the provisions of 
part F of this title.
  [(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 such sums as may be necessary 
for fiscal year 2009 and each of the five succeeding fiscal 
years.
  [(2) Sums appropriated pursuant to this subsection for any 
fiscal year shall be available for payments to institutions 
until the end of the second fiscal year succeeding the fiscal 
year for which such sums were appropriated.

[SEC. 413B. AMOUNT AND DURATION OF GRANTS.

  [(a) Amount of Grant.--(1) Except as provided in paragraph 
(3), from the funds received by it for such purpose under this 
subpart, an institution which awards a supplemental grant to a 
student for an academic year under this subpart shall, for each 
year, pay to that student an amount not to exceed the lesser of 
(A) the amount determined by the institution, in accordance 
with the provisions of part F of this title, to be needed by 
that student to enable the student to pursue a course of study 
at the institution or in a program of study abroad that is 
approved for credit by the institution at which the student is 
enrolled, or (B) $4,000.
  [(2) If the amount determined under paragraph (1) with 
respect to a student for any academic year is less than $100, 
no payment shall be made to that student for that year. For a 
student enrolled for less than a full academic year, the 
minimum payment required shall be reduced proportionately.
  [(3) For students participating in study abroad programs, the 
institution shall consider all reasonable costs associated with 
such study abroad when determining student eligibility. The 
amount of grant to be awarded in such cases may exceed the 
maximum amount of $4,000 by as much as $400 if reasonable study 
abroad costs exceed the cost of attendance at the home 
institution.
  [(b) Period for Receipt of Grants; Continuing Eligibility.--
(1) The period during which a student may receive supplemental 
grants shall be the period required for the completion of the 
first undergraduate baccalaureate course of study being pursued 
by that student.
  [(2) A supplemental grant awarded under this subpart shall 
entitle the student (to whom it is awarded) to payments 
pursuant to such grant only if the student meets the 
requirements of section 484, except as provided in section 
413C(c).
  [(c) Distribution of Grant During Academic Year.--Nothing in 
this section shall be construed to prohibit an institution from 
making payments of varying amounts from a supplemental grant to 
a student during an academic year to cover costs for a period 
which are not applicable to other periods of such academic 
year.

[SEC. 413C. AGREEMENTS WITH INSTITUTIONS; SELECTION OF RECIPIENTS.

  [(a) Institutional Eligibility.--Assistance may be made 
available under this subpart only to an institution which--
          [(1) has, in accordance with section 487, an 
        agreement with the Secretary applicable to this 
        subpart;
          [(2) agrees that the Federal share of awards under 
        this subpart will not exceed 75 percent of such awards, 
        except that the Federal share may be exceeded if the 
        Secretary determines, pursuant to regulations 
        establishing objective criteria for such 
        determinations, that a larger Federal share is required 
        to further the purpose of this subpart; and
        except that the Federal share may be exceeded if the 
        Secretary determines, pursuant to regulations 
        establishing objective criteria for such 
        determinations, that a larger Federal share is required 
        to further the purpose of this subpart; and
          [(3) agrees that the non-Federal share of awards made 
        under this subpart shall be made from the institution's 
        own resources, including--
                  [(A) institutional grants and scholarships;
                  [(B) tuition or fee waivers;
                  [(C) State scholarships; and
                  [(D) foundation or other charitable 
                organization funds.
  [(b) Eligibility for Selection.--Awards may be made under 
this subpart only to a student who--
          [(1) is an eligible student under section 484; and
          [(2) makes application at a time and in a manner 
        consistent with the requirements of the Secretary and 
        that institution.
  [(c) Selection of Individuals and Determination of Amount of 
Awards.--(1) From among individuals who are eligible for 
supplemental grants for each fiscal year, the institution 
shall, in accordance with the agreement under section 487, and 
within the amount allocated to the institution for that purpose 
for that year under section 413D, select individuals who are to 
be awarded such grants and determine, in accordance with 
section 413B, the amounts to be paid to them.
  [(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.
  [(d) Use of Funds for Less-Than-Full-Time Students.--If the 
institution's allocation under this subpart is directly or 
indirectly based in part on the financial need demonstrated by 
students who are independent students or attending the 
institution on less than a full-time basis, then a reasonable 
proportion of the allocation shall be made available to such 
students.
  [(e) Use and Transfer of Funds for Administrative Expenses.--
An agreement entered into pursuant to this section shall 
provide that funds granted to an institution of higher 
education may be used only to make payments to students 
participating in a grant program authorized under this subpart, 
except that an institution may use a portion of the sums 
allocated to it under this subpart to meet administrative 
expenses in accordance with section 489 of this title.

[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.
  [(b) Allocation of Excess Based on Fair Share.--(1) From the 
remainder of the amount appropriated pursuant to section 
413A(b) for each year (after making the allocations required by 
subsection (a)), the Secretary shall allocate to each eligible 
institution which has an excess eligible amount an amount which 
bears the same ratio to such remainder as such excess eligible 
amount bears to the sum of the excess eligible amounts of all 
such eligible institutions (having such excess eligible 
amounts).
  [(2) For any eligible institution, the excess eligible amount 
is the amount, if any, by which--
          [(A)(i) the amount of that institution's need (as 
        determined under subsection (c)), divided by (ii) the 
        sum of the need of all institutions (as so determined), 
        multiplied by (iii) the amount appropriated pursuant to 
        section 413A(b) of the fiscal year; exceeds
          [(B) the amount required to be allocated to that 
        institution under subsection (a).
  [(c) Determination of Institution's Need.--(1) The amount of 
an institution's need is equal to--
          [(A) the sum of the need of the institution's 
        eligible undergraduate students; minus
          [(B) the sum of grant aid received by students under 
        subparts 1 and 3 of this part.
  [(2) To determine the need of an institution's eligible 
undergraduate students, the Secretary shall--
          [(A) establish various income categories for 
        dependent and independent undergraduate students;
          [(B) establish an expected family contribution for 
        each income category of dependent and independent 
        undergraduate students, determined on the basis of the 
        average expected family contribution (computed in 
        accordance with part F of this title) of a 
        representative sample within each income category for 
        the second preceding fiscal year;
          [(C) compute 75 percent of the average cost of 
        attendance for all undergraduate students;
          [(D) multiply the number of eligible dependent 
        students in each income category by 75 percent of the 
        average cost of attendance for all undergraduate 
        students determined under subparagraph (C), minus the 
        expected family contribution determined under 
        subparagraph (B) for that income category, except that 
        the amount computed by such subtraction shall not be 
        less than zero;
          [(E) add the amounts determined under subparagraph 
        (D) for each income category of dependent students;
          [(F) multiply the number of eligible independent 
        students in each income category by 75 percent of the 
        average cost of attendance for all undergraduate 
        students determined under subparagraph (C), minus the 
        expected family contribution determined under 
        subparagraph (B) for that income category, except that 
        the amount computed by such subtraction shall not be 
        less than zero;
          [(G) add the amounts determined under subparagraph 
        (F) for each income category of independent students; 
        and
          [(H) add the amounts determined under subparagraphs 
        (E) and (G).
  [(3)(A) For purposes of paragraph (2), the term ``average 
cost of attendance'' means the average of the attendance costs 
for undergraduate students which shall include (i) tuition and 
fees determined in accordance with subparagraph (B), (ii) 
standard living expenses determined in accordance with 
subparagraph (C), and (iii) books and supplies determined in 
accordance with subparagraph (D).
  [(B) The average undergraduate tuition and fees described in 
subparagraph (A)(i) shall be computed on the basis of 
information reported by the institution to the Secretary, which 
shall include (i) total revenue received by the institution 
from undergraduate tuition and fees for the second year 
preceding the year for which it is applying for an allocation, 
and (ii) the institution's enrollment for such second preceding 
year.
  [(C) The standard living expense described in subparagraph 
(A)(ii) is equal to 150 percent of the difference between the 
income protection allowance for a family of five with one in 
college and the income protection allowance for a family of six 
with one in college for a single independent student.
  [(D) The allowance for books and supplies described in 
subparagraph (A)(iii) is equal to $600.
  [(d) Reallocation of Excess Allocations.--(1) If an 
institution returns to the Secretary any portion of the sums 
allocated to such institution under this section for any fiscal 
year the Secretary shall, in accordance with regulations, 
reallocate such excess to other institutions.
  [(2) If under paragraph (1) of this subsection an institution 
returns more than 10 percent of its allocation, the 
institution's allocation for the next fiscal year shall be 
reduced by the amount returned. The Secretary may waive this 
paragraph for a specific institution if the Secretary finds 
that enforcing this paragraph would be contrary to the interest 
of the program.
  [(e) Filing Deadlines.--The Secretary shall, from time to 
time, set dates before which institutions must file 
applications for allocations under this part.

[SEC. 413E. CARRYOVER AND CARRYBACK AUTHORITY.

  [(a) Carryover Authority.--Of the sums made available to an 
eligible institution under this subpart for a fiscal year, not 
more than 10 percent may, at the discretion of the institution, 
remain available for expenditure during the succeeding fiscal 
year to carry out the program under this subpart.
  [(b) Carryback Authority.--
          [(1) In general.--Of the sums made available to an 
        eligible institution under this subpart for a fiscal 
        year, not more than 10 percent may, at the discretion 
        of the institution, be used by the institution for 
        expenditure for the fiscal year preceding the fiscal 
        year for which the sums were appropriated.
          [(2) Use of carried-back funds.--An eligible 
        institution may make grants to students after the end 
        of the academic year, but prior to the beginning of the 
        succeeding fiscal year, from such succeeding fiscal 
        year's appropriations.

   [Subpart 4--Leveraging Educational Assistance Partnership Program

[SEC. 415A. PURPOSE; APPROPRIATIONS AUTHORIZED.

  [(a) Purpose of Subpart.--It is the purpose of this subpart 
to make incentive grants available to States to assist States 
in--
          [(1) providing grants to--
                  [(A) eligible students attending institutions 
                of higher education or participating in 
                programs of study abroad that are approved for 
                credit by institutions of higher education at 
                which such students are enrolled; and
                  [(B) eligible students for campus-based 
                community service work-study; and
          [(2) carrying out the activities described in section 
        415E.
  [(b) Authorization of Appropriations; Availability.--
          [(1) In general.--There are authorized to be 
        appropriated to carry out this subpart $200,000,000 for 
        fiscal year 2009 and such sums as may be necessary for 
        each of the five succeeding fiscal years.
          [(2) Reservation.--For any fiscal year for which the 
        amount appropriated under paragraph (1) exceeds 
        $30,000,000, the excess amount shall be available to 
        carry out section 415E.
          [(3) Availability.--Sums appropriated pursuant to the 
        authority of paragraph (1) for any fiscal year shall 
        remain available for payments to States under this 
        subpart until the end of the fiscal year succeeding the 
        fiscal year for which such sums were appropriated.

[SEC. 415B. ALLOTMENT AMONG STATES.

  [(a) Allotment Based on Number of Eligible Students in 
Attendance.--(1) From the sums appropriated pursuant to section 
415A(b)(1) and not reserved under section 415A(b)(2) for any 
fiscal year, the Secretary shall allot to each State an amount 
which bears the same ratio to such sums as the number of 
students who are deemed eligible in such State for 
participation in the grant program authorized by this subpart 
bears to the total number of such students in all the States, 
except that no State shall receive less than the State received 
for fiscal year 1979.
  [(2) For the purpose of this subsection, the number of 
students who are deemed eligible in a State for participation 
in the grant program authorized by this subpart, and the number 
of such students in all the States, shall be determined for the 
most recent year for which satisfactory data are available.
  [(b) Reallotment.--The amount of any State's allotment under 
subsection (a) for any fiscal year which the Secretary 
determines will not be required for such fiscal year for the 
leveraging educational assistance partnership program of that 
State shall be available for reallotment from time to time, on 
such dates during such year as the Secretary may fix, to other 
States in proportion to the original allotments to such States 
under such part for such year, but with such proportionate 
amount for any of such States being reduced to the extent it 
exceeds the sum the Secretary estimates such State needs and 
will be able to use for such year for carrying out the State 
plan. The total of such reductions shall be similarly 
reallotted among the States whose proportionate amounts were 
not so reduced. Any amount reallotted to a State under this 
part during a year from funds appropriated pursuant to section 
415A(b)(1) shall be deemed part of its allotment under 
subsection (a) for such year.
  [(c) Allotments Subject to Continuing Compliance.--The 
Secretary shall make payments for continuing incentive grants 
only to States which continue to meet the requirements of 
section 415C(b).

[SEC. 415C. APPLICATIONS FOR LEVERAGING EDUCATIONAL ASSISTANCE 
                    PARTNERSHIP PROGRAMS.

  [(a) Submission and Contents of Applications.--A State which 
desires to obtain a payment under this subpart for any fiscal 
year shall submit annually an application therefor through the 
State agency administering its program under this subpart as of 
July 1, 1985, unless the Governor of that State so designates, 
in writing, a different agency to administer the program. The 
application shall contain such information as may be required 
by, or pursuant to, regulation for the purpose of enabling the 
Secretary to make the determinations required under this 
subpart.
  [(b) Payment of Federal Share of Grants Made by Qualified 
Program.--From a State's allotment under this subpart for any 
fiscal year the Secretary is authorized to make payments to 
such State for paying up to 50 percent of the amount of student 
grants pursuant to a State program which--
          [(1) is administered by a single State agency;
          [(2) provides that such grants will be in amounts not 
        to exceed the lesser of $12,500 or the student's cost 
        of attendance per academic year (A) for attendance on a 
        full-time basis at an institution of higher education, 
        and (B) for campus-based community service work 
        learning study jobs;
          [(3) provides that--
                  [(A) not more than 20 percent of the 
                allotment to the State for each fiscal year may 
                be used for the purpose described in paragraph 
                (2)(B);
                  [(B) grants for the campus-based community 
                work learning study jobs may be made only to 
                students who are otherwise eligible for 
                assistance under this subpart; and
                  [(C) grants for such jobs be made in 
                accordance with the provisions of section 
                443(b)(1);
          [(4) provides for the selection of recipients of such 
        grants or of such State work-study jobs on the basis of 
        substantial financial need determined annually on the 
        basis of criteria established by the State and approved 
        by the Secretary, except that for the purpose of 
        collecting data to make such determination of financial 
        need, no student or parent shall be charged a fee that 
        is payable to an entity other than such State;
          [(5) provides that, effective with respect to any 
        academic year beginning on or after October 1, 1978, 
        all nonprofit institutions of higher education in the 
        State are eligible to participate in the State program, 
        except in any State in which participation of nonprofit 
        institutions of higher education is in violation of the 
        constitution of the State or in any State in which 
        participation of nonprofit institutions of higher 
        education is in violation of a statute of the State 
        which was enacted prior to October 1, 1978;
          [(6) provides for the payment of the non-Federal 
        portion of such grants or of such work-study jobs from 
        funds supplied by such State which represent an 
        additional expenditure for such year by such State for 
        grants or work-study jobs for students attending 
        institutions of higher education over the amount 
        expended by such State for such grants or work-study 
        jobs, if any, during the second fiscal year preceding 
        the fiscal year in which such State initially received 
        funds under this subpart;
          [(7) provides that if the State's allocation under 
        this subpart is based in part on the financial need 
        demonstrated by students who are independent students 
        or attending the institution less than full time, a 
        reasonable proportion of the State's allocation shall 
        be made available to such students;
          [(8) provides for State expenditures under such 
        program of an amount not less than the average annual 
        aggregate expenditures for the preceding three fiscal 
        years or the average annual expenditure per full-time 
        equivalent student for such years;
          [(9) provides (A) for such fiscal control and fund 
        accounting procedures as may be necessary to assure 
        proper disbursement of and accounting for Federal funds 
        paid to the State agency under this subpart, and (B) 
        for the making of such reports, in such form and 
        containing such information, as may be reasonably 
        necessary to enable the Secretary to perform his 
        functions under this subpart;
          [(10) for any academic year beginning after June 30, 
        1987, provides the non-Federal share of the amount of 
        student grants or work-study jobs under this subpart 
        through State funds for the program under this subpart; 
        and
          [(11) provides notification to eligible students that 
        such grants are--
                  [(A) Leveraging Educational Assistance 
                Partnership Grants; and
                  [(B) funded by the Federal Government, the 
                State, and, where applicable, other 
                contributing partners.
  [(c) Reservation and Disbursement of Allotments and 
Reallotments.--Upon his approval of any application for a 
payment under this subpart, the Secretary shall reserve from 
the applicable allotment (including any applicable reallotment) 
available therefor, the amount of such payment, which (subject 
to the limits of such allotment or reallotment) shall be equal 
to the Federal share of the cost of the students' incentive 
grants or work-study jobs covered by such application. The 
Secretary shall pay such reserved amount, in advance or by way 
of reimbursement, and in such installments as the Secretary may 
determine. The Secretary may amend the reservation of any 
amount under this section, either upon approval of an amendment 
of the application or upon revision of the estimated cost of 
the student grants or work-study jobs with respect to which 
such reservation was made. If the Secretary approves an upward 
revision of such estimated cost, the Secretary may reserve the 
Federal share of the added cost only from the applicable 
allotment (or reallotment) available at the time of such 
approval.

[SEC. 415D. ADMINISTRATION OF STATE PROGRAMS; JUDICIAL REVIEW.

  [(a) Disapproval of Applications; Suspension of 
Eligibility.--(1) The Secretary shall not finally disapprove 
any application for a State program submitted under section 
415C, or any modification thereof, without first affording the 
State agency submitting the program reasonable notice and 
opportunity for a hearing.
  [(2) Whenever the Secretary, after reasonable notice and 
opportunity for hearing to the State agency administering a 
State program approved under this subpart, finds--
          [(A) that the State program has been so changed that 
        it no longer complies with the provisions of this 
        subpart, or
          [(B) that in the administration of the program there 
        is a failure to comply substantially with any such 
        provisions,
the Secretary shall notify such State agency that the State 
will not be regarded as eligible to participate in the program 
under this subpart until he is satisfied that there is no 
longer any such failure to comply.
  [(b) Review of Decisions.--(1) If any State is dissatisfied 
with the Secretary's final action with respect to the approval 
of its State program submitted under this subpart or with his 
final action under subsection (a), such State may appeal to the 
United States court of appeals for the circuit in which such 
State is located. The summons and notice of appeal may be 
served at any place in the United States. The Commissioner 
shall forthwith certify and file in the court the transcript of 
the proceedings and the record on which he based his action.
  [(2) The findings of fact by the Secretary, if supported by 
substantial evidence, shall be conclusive; but the court, for 
good cause shown, may remand the case to the Secretary to take 
further evidence, and the Secretary may thereupon make new or 
modified findings of fact and may modify his previous action, 
and shall certify to the court the transcript and record of 
further proceedings. Such new or modified findings of fact 
shall likewise be conclusive if supported by substantial 
evidence.
  [(3) The court shall have jurisdiction to affirm the action 
of the Secretary or to set it aside, in whole or in part. The 
judgment of the court shall be subject to review by the Supreme 
Court of the United States upon certiorari or certification as 
provided in title 28, United States Code, section 1254.

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

  [(a) Purpose.--It is the purpose of this section to expand 
college access and increase college persistence by making 
allotments to States to enable the States to--
          [(1) expand and enhance partnerships with 
        institutions of higher education, early information and 
        intervention, mentoring, or outreach programs, private 
        corporations, philanthropic organizations, and other 
        interested parties, including community-based 
        organizations, in order to--
                  [(A) carry out activities under this section; 
                and
                  [(B) provide coordination and cohesion among 
                Federal, State, and local governmental and 
                private efforts that provide financial 
                assistance to help low-income students attend 
                an institution of higher education;
          [(2) provide need-based grants for access and 
        persistence to eligible low-income students;
          [(3) provide early notification to low-income 
        students of the students' eligibility for financial 
        aid; and
          [(4) encourage increased participation in early 
        information and intervention, mentoring, or outreach 
        programs.
  [(b) Allotments to States.--
          [(1) In general.--
                  [(A) Authorization.--From sums reserved under 
                section 415A(b)(2) for each fiscal year, the 
                Secretary shall make an allotment to each State 
                that submits an application for an allotment in 
                accordance with subsection (c) to enable the 
                State to pay the Federal share, as described in 
                paragraph (2), of the cost of carrying out the 
                activities under subsection (d).
                  [(B) Determination of allotment.--In making 
                allotments under subparagraph (A), the 
                Secretary shall consider the following:
                          [(i) Continuation of award.--Except 
                        as provided in clause (ii), if a State 
                        continues to meet the specifications 
                        established in such State's application 
                        under subsection (c), the Secretary 
                        shall make an allotment to such State 
                        that is not less than the allotment 
                        made to such State for the previous 
                        fiscal year.
                          [(ii) Special continuation and 
                        transition rule.--If a State that 
                        applied for and received an allotment 
                        under this section for fiscal year 2010 
                        pursuant to subsection (j) meets the 
                        specifications established in the 
                        State's application under subsection 
                        (c) for fiscal year 2011, then the 
                        Secretary shall make an allotment to 
                        such State for fiscal year 2011 that is 
                        not less than the allotment made 
                        pursuant to subsection (j) to such 
                        State for fiscal year 2010 under this 
                        section (as this section was in effect 
                        on the day before the date of enactment 
                        of the Higher Education Opportunity Act 
                        (Public Law 110-315)).
                          [(iii) Priority.--The Secretary shall 
                        give priority in making allotments to 
                        States that meet the requirements 
                        described in paragraph (2)(B)(ii).
          [(2) Federal share.--
                  [(A) In general.--The Federal share of the 
                cost of carrying out the activities under 
                subsection (d) for any fiscal year shall not 
                exceed 66.66 percent.
                  [(B) Different percentages.--The Federal 
                share under this section shall be determined in 
                accordance with the following:
                          [(i) The Federal share of the cost of 
                        carrying out the activities under 
                        subsection (d) shall be 57 percent if a 
                        State applies for an allotment under 
                        this section in partnership with any 
                        number of degree-granting institutions 
                        of higher education in the State whose 
                        combined full-time enrollment 
                        represents less than a majority of all 
                        students attending institutions of 
                        higher education in the State, and--
                                  [(I) philanthropic 
                                organizations that are located 
                                in, or that provide funding in, 
                                the State; or
                                  [(II) private corporations 
                                that are located in, or that do 
                                business in, the State.
                          [(ii) The Federal share of the cost 
                        of carrying out the activities under 
                        subsection (d) shall be 66.66 percent 
                        if a State applies for an allotment 
                        under this section in partnership with 
                        any number of degree-granting 
                        institutions of higher education in the 
                        State whose combined full-time 
                        enrollment represents a majority of all 
                        students attending institutions of 
                        higher education in the State, and--
                                  [(I) philanthropic 
                                organizations that are located 
                                in, or that provide funding in, 
                                the State; or
                                  [(II) private corporations 
                                that are located in, or that do 
                                business in, the State.
                  [(C) Non-federal share.--
                          [(i) In general.--The non-Federal 
                        share under this section may be 
                        provided in cash or in kind, fairly 
                        evaluated.
                          [(ii) In-kind contribution.--For the 
                        purpose of calculating the non-Federal 
                        share under this subparagraph, an in-
                        kind contribution is a non-cash 
                        contribution that--
                                  [(I) has monetary value, such 
                                as the provision of--
                                          [(aa) room and board; 
                                        or
                                          [(bb) transportation 
                                        passes; and
                                  [(II) helps a student meet 
                                the cost of attendance at an 
                                institution of higher 
                                education.
                          [(iii) Effect on need analysis.--For 
                        the purpose of calculating a student's 
                        need in accordance with part F, an in-
                        kind contribution described in clause 
                        (ii) shall not be considered an asset 
                        or income of the student or the 
                        student's parent.
  [(c) Application for Allotment.--
          [(1) In general.--
                  [(A) Submission.--A State that desires to 
                receive an allotment under this section on 
                behalf of a partnership described in paragraph 
                (3) shall submit an application to the 
                Secretary at such time, in such manner, and 
                containing such information as the Secretary 
                may require.
                  [(B) Content.--An application submitted under 
                subparagraph (A) shall include the following:
                          [(i) A description of the State's 
                        plan for using the allotted funds.
                          [(ii) An assurance that the State 
                        will provide matching funds, in cash or 
                        in kind, from State, institutional, 
                        philanthropic, or private funds, of not 
                        less than 33.33 percent of the cost of 
                        carrying out the activities under 
                        subsection (d). The State shall specify 
                        the methods by which matching funds 
                        will be paid. A State that uses non-
                        Federal funds to create or expand 
                        partnerships with entities described in 
                        subsection (a)(1), in which such 
                        entities match State funds for student 
                        scholarships, may apply such matching 
                        funds from such entities toward 
                        fulfilling the State's matching 
                        obligation under this clause.
                          [(iii) An assurance that the State 
                        will use funds provided under this 
                        section to supplement, and not 
                        supplant, Federal and State funds 
                        available for carrying out the 
                        activities under this title.
                          [(iv) An assurance that early 
                        information and intervention, 
                        mentoring, or outreach programs exist 
                        within the State or that there is a 
                        plan to make such programs widely 
                        available.
                          [(v) A description of the 
                        organizational structure that the State 
                        has in place to administer the 
                        activities under subsection (d), 
                        including a description of how the 
                        State will compile information on 
                        degree completion of students receiving 
                        grants under this section.
                          [(vi) A description of the steps the 
                        State will take to ensure that students 
                        who receive grants under this section 
                        persist to degree completion.
                          [(vii) An assurance that the State 
                        has a method in place, such as 
                        acceptance of the automatic zero 
                        expected family contribution 
                        determination described in section 
                        479(c), to identify eligible low-income 
                        students and award State grant aid to 
                        such students.
                          [(viii) An assurance that the State 
                        will provide notification to eligible 
                        low-income students that grants under 
                        this section are--
                                  [(I) Leveraging Educational 
                                Assistance Partnership Grants; 
                                and
                                  [(II) funded by the Federal 
                                Government and the State, and, 
                                where applicable, other 
                                contributing partners.
          [(2) State agency.--The State agency that submits an 
        application for a State under section 415C(a) shall be 
        the same State agency that submits an application under 
        paragraph (1) for such State.
          [(3) Partnership.--In applying for an allotment under 
        this section, the State agency shall apply for the 
        allotment in partnership with--
                  [(A) not less than one public and one private 
                degree-granting institution of higher education 
                that are located in the State, if applicable;
                  [(B) new or existing early information and 
                intervention, mentoring, or outreach programs 
                located in the State; and
                  [(C) not less than one--
                          [(i) philanthropic organization 
                        located in, or that provides funding 
                        in, the State; or
                          [(ii) private corporation located in, 
                        or that does business in, the State.
          [(4) Roles of partners.--
                  [(A) State agency.--A State agency that is in 
                a partnership receiving an allotment under this 
                section--
                          [(i) shall--
                                  [(I) serve as the primary 
                                administrative unit for the 
                                partnership;
                                  [(II) provide or coordinate 
                                non-Federal share funds, and 
                                coordinate activities among 
                                partners;
                                  [(III) encourage each 
                                institution of higher education 
                                in the State to participate in 
                                the partnership;
                                  [(IV) make determinations and 
                                early notifications of 
                                assistance as described under 
                                subsection (d)(2); and
                                  [(V) annually report to the 
                                Secretary on the partnership's 
                                progress in meeting the purpose 
                                of this section; and
                          [(ii) may provide early information 
                        and intervention, mentoring, or 
                        outreach programs.
                  [(B) Degree-granting institutions of higher 
                education.--A degree-granting institution of 
                higher education that is in a partnership 
                receiving an allotment under this section--
                          [(i) shall--
                                  [(I) recruit and admit 
                                participating qualified 
                                students and provide such 
                                additional institutional grant 
                                aid to participating students 
                                as agreed to with the State 
                                agency;
                                  [(II) provide support 
                                services to students who 
                                receive grants for access and 
                                persistence under this section 
                                and are enrolled at such 
                                institution; and
                                  [(III) assist the State in 
                                the identification of eligible 
                                students and the dissemination 
                                of early notifications of 
                                assistance as agreed to with 
                                the State agency; and
                          [(ii) may provide funding for early 
                        information and intervention, 
                        mentoring, or outreach programs or 
                        provide such services directly.
                  [(C) Programs.--An early information and 
                intervention, mentoring, or outreach program 
                that is in a partnership receiving an allotment 
                under this section shall provide direct 
                services, support, and information to 
                participating students.
                  [(D) Philanthropic organization or private 
                corporation.--A philanthropic organization or 
                private corporation that is in a partnership 
                receiving an allotment under this section shall 
                provide funds for grants for access and 
                persistence for participating students, or 
                provide funds or support for early information 
                and intervention, mentoring, or outreach 
                programs.
  [(d) Authorized Activities.--
          [(1) In general.--
                  [(A) Establishment of partnership.--Each 
                State receiving an allotment under this section 
                shall use the funds to establish a partnership 
                to award grants for access and persistence to 
                eligible low-income students in order to 
                increase the amount of financial assistance 
                such students receive under this subpart for 
                undergraduate education expenses.
                  [(B) Amount of grants.--The amount of a grant 
                for access and persistence awarded by a State 
                to a student under this section shall be not 
                less than--
                          [(i) the average undergraduate 
                        tuition and mandatory fees at the 
                        public institutions of higher education 
                        in the State where the student resides 
                        that are of the same type of 
                        institution as the institution of 
                        higher education the student attends; 
                        minus
                          [(ii) other Federal and State aid the 
                        student receives.
                  [(C) Special rules.--
                          [(i) Partnership institutions.--A 
                        State receiving an allotment under this 
                        section may restrict the use of grants 
                        for access and persistence under this 
                        section by awarding the grants only to 
                        students attending institutions of 
                        higher education that are participating 
                        in the partnership.
                          [(ii) Out-of-state institutions.--If 
                        a State provides grants through another 
                        program under this subpart to students 
                        attending institutions of higher 
                        education located in another State, 
                        grants awarded under this section may 
                        be used at institutions of higher 
                        education located in another State.
          [(2) Early notification.--
                  [(A) In general.--Each State receiving an 
                allotment under this section shall annually 
                notify low-income students in grades seven 
                through 12 in the State, and their families, of 
                their potential eligibility for student 
                financial assistance, including an access and 
                persistence grant, to attend an institution of 
                higher education.
                  [(B) Content of notice.--The notice under 
                subparagraph (A)--
                          [(i) shall include--
                                  [(I) information about early 
                                information and intervention, 
                                mentoring, or outreach programs 
                                available to the student;
                                  [(II) information that a 
                                student's eligibility for a 
                                grant for access and 
                                persistence is enhanced through 
                                participation in an early 
                                information and intervention, 
                                mentoring, or outreach program;
                                  [(III) an explanation that 
                                student and family eligibility 
                                for, and participation in, 
                                other Federal means-tested 
                                programs may indicate 
                                eligibility for a grant for 
                                access and persistence and 
                                other student aid programs;
                                  [(IV) a nonbinding estimate 
                                of the total amount of 
                                financial aid that a low-income 
                                student with a similar income 
                                level may expect to receive, 
                                including an estimate of the 
                                amount of a grant for access 
                                and persistence and an estimate 
                                of the amount of grants, loans, 
                                and all other available types 
                                of aid from the major Federal 
                                and State financial aid 
                                programs;
                                  [(V) an explanation that in 
                                order to be eligible for a 
                                grant for access and 
                                persistence, at a minimum, a 
                                student shall--
                                          [(aa) meet the 
                                        requirement under 
                                        paragraph (3);
                                          [(bb) graduate from 
                                        secondary school; and
                                          [(cc) enroll at an 
                                        institution of higher 
                                        education--
                                                  [(AA) that is 
                                                a partner in 
                                                the 
                                                partnership; or
                                                  [(BB) with 
                                                respect to 
                                                which 
                                                attendance is 
                                                permitted under 
                                                subsection 
                                                (d)(1)(C)(ii);
                                  [(VI) information on any 
                                additional requirements (such 
                                as a student pledge detailing 
                                student responsibilities) that 
                                the State may impose for 
                                receipt of a grant for access 
                                and persistence under this 
                                section; and
                                  [(VII) instructions on how to 
                                apply for a grant for access 
                                and persistence and an 
                                explanation that a student is 
                                required to file a Free 
                                Application for Federal Student 
                                Aid authorized under section 
                                483(a) to be eligible for such 
                                grant and assistance from other 
                                Federal and State financial aid 
                                programs; and
                          [(ii) may include a disclaimer that 
                        grant awards for access and persistence 
                        are contingent on--
                                  [(I) a determination of the 
                                student's financial eligibility 
                                at the time of the student's 
                                enrollment at an institution of 
                                higher education that is a 
                                partner in the partnership or 
                                qualifies under subsection 
                                (d)(1)(C)(ii);
                                  [(II) annual Federal and 
                                State spending for higher 
                                education; and
                                  [(III) other aid received by 
                                the student at the time of the 
                                student's enrollment at such 
                                institution of higher 
                                education.
          [(3) Eligibility.--In determining which students are 
        eligible to receive grants for access and persistence, 
        the State shall ensure that each such student complies 
        with the following subparagraph (A) or (B):
                  [(A) Meets not less than two of the following 
                criteria, with priority given to students 
                meeting all of the following criteria:
                          [(i) Has an expected family 
                        contribution equal to zero, as 
                        determined under part F, or a 
                        comparable alternative based upon the 
                        State's approved criteria in section 
                        415C(b)(4).
                          [(ii) Qualifies for the State's 
                        maximum undergraduate award, as 
                        authorized under section 415C(b).
                          [(iii) Is participating in, or has 
                        participated in, a Federal, State, 
                        institutional, or community early 
                        information and intervention, 
                        mentoring, or outreach program, as 
                        recognized by the State agency 
                        administering activities under this 
                        section.
                  [(B) Is receiving, or has received, a grant 
                for access and persistence under this section, 
                in accordance with paragraph (5).
          [(4) Grant award.--Once a student, including those 
        students who have received early notification under 
        paragraph (2) from the State, applies for admission to 
        an institution that is a partner in the partnership, 
        files a Free Application for Federal Student Aid and 
        any related State form, and is determined eligible by 
        the State under paragraph (3), the State shall--
                  [(A) issue the student a preliminary award 
                certificate for a grant for access and 
                persistence with estimated award amounts; and
                  [(B) inform the student that payment of the 
                grant for access and persistence award amounts 
                is subject to certification of enrollment and 
                award eligibility by the institution of higher 
                education.
          [(5) Duration of award.--An eligible student who 
        receives a grant for access and persistence under this 
        section shall receive such grant award for each year of 
        such student's undergraduate education in which the 
        student remains eligible for assistance under this 
        title, including pursuant to section 484(c), and 
        remains financially eligible as determined by the 
        State, except that the State may impose reasonable time 
        limits to degree completion.
  [(e) Administrative Cost Allowance.--A State that receives an 
allotment under this section may reserve not more than two 
percent of the funds made available annually through the 
allotment for State administrative functions required to carry 
out this section.
  [(f) Statutory and Regulatory Relief for Institutions of 
Higher Education.--The Secretary may grant, upon the request of 
an institution of higher education that is in a partnership 
described in subsection (b)(2)(B)(ii) and that receives an 
allotment under this section, a waiver for such institution 
from statutory or regulatory requirements that inhibit the 
ability of the institution to successfully and efficiently 
participate in the activities of the partnership.
  [(g) Applicability Rule.--The provisions of this subpart that 
are not inconsistent with this section shall apply to the 
program authorized by this section.
  [(h) Maintenance of Effort Requirement.--Each State receiving 
an allotment under this section for a fiscal year shall provide 
the Secretary with an assurance that the aggregate amount 
expended per student or the aggregate expenditures by the 
State, from funds derived from non-Federal sources, for the 
authorized activities described in subsection (d) for the 
preceding fiscal year were not less than the amount expended 
per student or the aggregate expenditure by the State for the 
activities for the second preceding fiscal year.
  [(i) Special Rule.--Notwithstanding subsection (h), for 
purposes of determining a State's share of the cost of the 
authorized activities described in subsection (d), the State 
shall consider only those expenditures from non-Federal sources 
that exceed the State's total expenditures for need-based 
grants, scholarships, and work-study assistance for fiscal year 
1999 (including any such assistance provided under this 
subpart).
  [(j) Continuation and Transition.--For the two-year period 
that begins on the date of enactment of the Higher Education 
Opportunity Act, the Secretary shall continue to award grants 
under section 415E of the Higher Education Act of 1965 as such 
section existed on the day before the date of enactment of the 
Higher Education Opportunity Act to States that choose to apply 
for grants under such predecessor section.
  [(k) Reports.--Not later than three years after the date of 
enactment of the Higher Education Opportunity Act and annually 
thereafter, the Secretary shall submit a report describing the 
activities and the impact of the partnerships under this 
section to the authorizing committees.

[SEC. 415F. DEFINITION.

   [For the purpose of this subpart, the term ``community 
service'' means services, including direct service, planning, 
and applied research which are identified by an institution of 
higher education, through formal or informal consultation with 
local nonprofit, governmental, and community-based 
organizations, and which--
          [(1) are designed to improve the quality of life for 
        community residents, particularly low-income 
        individuals, or to solve particular problems related to 
        the needs of such residents, including but not limited 
        to, such fields as health care, child care, education, 
        literacy training, welfare, social services, public 
        safety, crime prevention and control, transportation, 
        recreation, housing and neighborhood improvement, rural 
        development, and community improvement; and
          [(2) provide participating students with work-
        learning opportunities related to their educational or 
        vocational programs or goals.

Subpart 5--Special Programs for Students Whose Families Are Engaged in 
                     Migrant and Seasonal Farmwork

SEC. 418A. MAINTENANCE AND EXPANSION OF EXISTING PROGRAMS.

  (a) Program Authority.--The Secretary shall maintain and 
expand existing secondary and postsecondary high school 
equivalency program and college assistance migrant program 
projects located at institutions of higher education or at 
private nonprofit organizations working in cooperation with 
institutions of higher education.
  (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)(i) who are 16 years of age and over; or
                  (ii) who are beyond the age of compulsory 
                school attendance in the State in which such 
                persons reside and are not enrolled in school;
                  (B)(i) who themselves, or whose immediate 
                family, have spent a minimum of 75 days during 
                the past 24 months in migrant and seasonal 
                farmwork; or
                  (ii) who are eligible to participate, or have 
                participated within the preceding 2 years, in 
                programs under part C of title I of the 
                Elementary and Secondary Education Act of 1965 
                or section 167 of the Workforce Investment Act 
                of 1998; and
                  (C) who lack a high school diploma or its 
                equivalent;
          (2) educational services which provide instruction 
        designed to help students obtain a general education 
        diploma which meets the guidelines established by the 
        State in which the project is located for high school 
        equivalency;
          (3) supportive services which include the following:
                  (A) personal, vocational, and academic 
                counseling;
                  (B) placement services designed to place 
                students in a university, college, or junior 
                college program (including preparation for 
                college entrance examinations), or in military 
                service or career positions; and
                  (C) health services;
          (4) information concerning, and assistance in 
        obtaining, available student financial aid;
          (5) stipends for high school equivalency program 
        participants;
          (6) housing for those enrolled in residential 
        programs;
          (7) exposure to cultural events, academic programs, 
        and other educational and cultural activities usually 
        not available to migrant youth;
          (8) other essential supportive services (such as 
        transportation and child care), as needed to ensure the 
        success of eligible students; and
          (9) other activities to improve persistence and 
        retention in postsecondary education.
  (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 immediate family 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 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 to improve 
        placement, persistence, and retention in postsecondary 
        education, which include:
                  (i) personal, academic, career, and economic 
                education or personal finance counseling as an 
                ongoing part of the program;
                  (ii) tutoring and academic skill building 
                instruction and assistance;
                  (iii) assistance with special admissions;
                  (iv) health services; and
                  (v) other services as necessary to assist 
                students in completing program requirements;
          (C) assistance in obtaining student financial aid 
        which includes, but is not limited to:
                  (i) stipends;
                  (ii) scholarships;
                  (iii) student travel;
                  (iv) career oriented work study;
                  (v) books and supplies;
                  (vi) tuition and fees;
                  (vii) room and board; and
                  (viii) other assistance necessary to assist 
                students in completing their first year of 
                college;
          (D) housing support for students living in 
        institutional facilities and commuting students;
          (E) exposure to cultural events, academic programs, 
        and other activities not usually available to migrant 
        youth;
          (F) internships; and
          (G) other essential supportive services (such as 
        transportation and child care) as necessary to ensure 
        the success of eligible students.
  (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;
          (B) referring such students to on- or off-campus 
        providers of counseling services, academic assistance, 
        or financial aid, and coordinating such services, 
        assistance, and aid with other non-program services, 
        assistance, and aid, including services, assistance, 
        and aid provided by community-based organizations, 
        which may include mentoring and guidance; and
          (C) for students attending two-year institutions of 
        higher education, encouraging the students to transfer 
        to four-year institutions of higher education, where 
        appropriate, and monitoring the rate of transfer of 
        such students.
  (d) Management Plan Required.--Each project application shall 
include a management plan which contains assurances that the 
grant recipient will coordinate the project, to the extent 
feasible, with other local, State, and Federal programs to 
maximize the resources available for migrant students, and that 
staff shall have a demonstrated knowledge and be sensitive to 
the unique characteristics and needs of the migrant and 
seasonal farmworker population, and provisions for:
          (1) staff in-service training;
          (2) training and technical assistance;
          (3) staff travel;
          (4) student travel;
          (5) interagency coordination; and
          (6) an evaluation plan.
  (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)(2).
  (f) Minimum Allocations.--The Secretary shall not allocate an 
amount less than--
          (1) $180,000 for each project under the high school 
        equivalency program, and
          (2) $180,000 for each project under the college 
        assistance migrant program.
  (g) Reservation and Allocation of Funds.--From the amounts 
made available under subsection (i), the Secretary--
          (1) may reserve not more than a total of \1/2\ of one 
        percent for outreach activities, technical assistance, 
        and professional development programs relating to the 
        programs under subsection (a);
          (2) for any fiscal year for which the amount 
        appropriated to carry out this section is equal to or 
        greater than $40,000,000, shall, in awarding grants 
        from the remainder of such amounts--
                  (A) make available not less than 45 percent 
                of such remainder for the high school 
                equivalency programs and not less than 45 
                percent of such remainder for the college 
                assistance migrant programs;
                  (B) award the rest of such remainder for high 
                school equivalency programs or college 
                assistance migrant programs based on the 
                number, quality, and promise of the 
                applications; and
                  (C) consider the need to provide an equitable 
                geographic distribution of such grants; and
          (3) for any fiscal year for which the amount 
        appropriated to carry out this section is less than 
        $40,000,000, shall, in awarding grants from the 
        remainder of such amounts make available the same 
        percentage of funds to the high school equivalency 
        program and to the college assistance migrant program 
        as was made available for each such program for the 
        fiscal year preceding the fiscal year for which the 
        grant was made.
  (h) Data Collection.--The Secretary shall--
          (1) annually collect data on persons receiving 
        services authorized under this subpart regarding such 
        persons' rates of secondary school graduation, entrance 
        into postsecondary education, and completion of 
        postsecondary education, as applicable;
          (2) not less often than once every two years, prepare 
        and submit to the authorizing committees a report based 
        on the most recently available data under paragraph 
        (1); and
          (3) make such report available to the public.
  (i) Authorization of Appropriations.--For the purpose of 
making grants and contracts under this section, there are 
authorized to be appropriated [$75,000,000 for fiscal year 2009 
and such sums as may be necessary for the each of the five 
succeeding fiscal years.] $44,623,000 for each of fiscal years 
2019 through 2024.

         [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; and
          [(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 95-134 (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 a home school, whether treated as a home 
school or a private school under State law) 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 
such sums as may be necessary for fiscal year 2009 and each of 
the five succeeding fiscal years.

          Subpart 7--Child Care Access Means Parents in School

SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.

  (a) Purpose.--The purpose of this section is to support the 
participation of low-income parents in postsecondary education 
through the provision of campus-based child care services.
  (b) Program Authorized.--
          (1) Authority.--The Secretary may award grants to 
        institutions of higher education to assist the 
        institutions in providing campus-based child care 
        services to low-income students.
          (2) Amount of grants.--
                  (A) In general.--The amount of a grant 
                awarded to an institution of higher education 
                under this section for a fiscal year shall not 
                exceed 1 percent of the total amount of all 
                Federal Pell Grant funds awarded to students 
                enrolled at the institution of higher education 
                for the preceding fiscal year.
                  (B) Minimum.--
                          (i) In general.--Except as provided 
                        in clause (ii), a grant under this 
                        section shall be awarded in an amount 
                        that is not less than $10,000.
                          (ii) Increase trigger.--For any 
                        fiscal year for which the amount 
                        appropriated under the authority of 
                        subsection (g) is equal to or greater 
                        than $20,000,000, a grant under this 
                        section shall be awarded in an amount 
                        that is not less than $30,000.
          (3) Duration; renewal; and payments.--
                  (A) Duration.--The Secretary shall award a 
                grant under this section for a period of 4 
                years.
                  (B) Payments.--Subject to subsection (e)(2), 
                the Secretary shall make annual grant payments 
                under this section.
          (4) Eligible institutions.--An institution of higher 
        education shall be eligible to receive a grant under 
        this section for a fiscal year if the total amount of 
        all Federal Pell Grant funds awarded to students 
        enrolled at the institution of higher education for the 
        preceding fiscal year equals or exceeds $350,000, 
        except that for any fiscal year for which the amount 
        appropriated to carry out this section is equal to or 
        greater than $20,000,000, this sentence shall be 
        applied by substituting ``$250,000'' for ``$350,000''.
          (5) Use of funds.--Grant funds under this section 
        shall be used by an institution of higher education to 
        support or establish a campus-based child care program 
        primarily serving the needs of low-income students 
        enrolled at the institution of higher education. Grant 
        funds under this section may be used to provide before 
        and after school services to the extent necessary to 
        enable low-income students enrolled at the institution 
        of higher education to pursue postsecondary education.
          (6)  [Construction] Rule of construction.--Nothing in 
        this section shall be construed to prohibit an 
        institution of higher education that receives grant 
        funds under this section from serving the child care 
        needs of the community served by the institution.
          (7) Definition of low-income student.--For the 
        purpose of this section, the term ``low-income 
        student'' means a student--
                  (A) who is eligible to receive a Federal Pell 
                Grant for the award year for which the 
                determination is made; or
                  (B) who would otherwise be eligible to 
                receive a Federal Pell Grant for the award year 
                for which the determination is made, except 
                that the student fails to meet the requirements 
                of--
                          (i) section 401(c)(1) because the 
                        student is enrolled in a graduate or 
                        first professional course of study; or
                          (ii) section 484(a)(5) because the 
                        student is in the United States for a 
                        temporary purpose.
          (8) Publicity.--The Secretary shall publicize the 
        availability of grants under this section in 
        appropriate periodicals, in addition to publication in 
        the Federal Register, and shall inform appropriate 
        educational organizations of such availability.
  (c) Applications.--An institution of higher education 
desiring a grant under this section shall submit an application 
to the Secretary at such time, in such manner, and accompanied 
by such information as the Secretary may require. Each 
application shall--
          (1) demonstrate that the institution is an eligible 
        institution described in subsection (b)(4);
          (2) specify the amount of funds requested;
          (3) demonstrate the need of low-income students at 
        the institution for campus-based child care services by 
        including in the application--
                  (A) information regarding student 
                demographics;
                  (B) an assessment of child care capacity on 
                or near campus;
                  (C) information regarding the existence of 
                waiting lists for existing child care;
                  (D) information regarding additional needs 
                created by concentrations of poverty or by 
                geographic isolation; and
                  (E) other relevant data;
          (4) contain a description of the activities to be 
        [assisted] funded, including whether the grant funds 
        will support an existing child care program or a new 
        child care program;
          (5) identify the [resources, including technical 
        expertise] resources, including non-Federal resources, 
        technical expertise, and financial support, the 
        institution will draw upon to support the child care 
        program and the participation of low-income students in 
        the program, such as accessing social services funding, 
        using student activity fees to help pay the costs of 
        child care, using resources obtained by meeting the 
        needs of parents who are not low-income students, and 
        accessing foundation, corporate or other institutional 
        support, and demonstrate that [the use of the] these 
        resources will not result in increases in student 
        tuition;
          (6) contain an assurance that the institution will 
        meet the child care needs of low-income students 
        through the provision of services, or through a 
        contract for the provision of services;
          (7) describe the extent to which the child care 
        program will coordinate with the institution's early 
        childhood education curriculum, to the extent the 
        curriculum is available, to meet the needs of the 
        students in the early childhood education program at 
        the institution, and the needs of the parents and 
        children participating in the child care program 
        assisted under this section;
          (8) in the case of an institution seeking assistance 
        for a new child care program--
                  (A) provide a timeline, covering the period 
                from receipt of the grant through the provision 
                of the child care services, delineating the 
                specific steps the institution will take to 
                achieve the goal of providing low-income 
                students with child care services;
                  (B) specify any measures the institution will 
                take to assist low-income students with child 
                care during the period before the institution 
                provides child care services; and
                  (C) include a plan for identifying resources 
                needed for the child care services, including 
                space in which to provide child care services, 
                and technical assistance if necessary;
          (9) contain an assurance that any child care facility 
        assisted under this section will meet the applicable 
        State or local government licensing, certification, 
        approval, provisional status, or registration 
        requirements[; and] prior to serving children and 
        families; and
          (10) contain a plan for any child care facility 
        assisted under this section to become accredited within 
        3 years of the date the institution first receives 
        assistance under this section.
  (d) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education 
that submit applications describing programs that--
          (1) leverage significant [local] non-Federal, local, 
        or institutional resources, including in-kind 
        contributions, to support the activities assisted under 
        this section; [and]
          (2) utilize a sliding fee scale for child care 
        services provided under this section in order to 
        support a high number of low-income parents pursuing 
        postsecondary education at the institution[.]; and
          (3) coordinate with other community programs where 
        appropriate to improve the quality and limit cost of 
        the campus-based program.
  [(e) Reporting Requirements; Continuing Eligibility.--
          [(1) Reporting requirements.--
                  [(A) Reports.--Each institution of higher 
                education receiving a grant under this section 
                shall report to the Secretary annually.
                  [(B) Contents.--The report shall include--
                          [(i) data on the population served 
                        under this section;
                          [(ii) information on campus and 
                        community resources and funding used to 
                        help low-income students access child 
                        care services;
                          [(iii) information on progress made 
                        toward accreditation of any child care 
                        facility; and
                          [(iv) information on the impact of 
                        the grant on the quality, availability, 
                        and affordability of campus-based child 
                        care services.
          [(2) Continuing eligibility.--The Secretary shall 
        make continuation awards under this section to an 
        institution of higher education only if the Secretary 
        determines, on the basis of the reports submitted under 
        paragraph (1), that the institution is making a good 
        faith effort to ensure that low-income students at the 
        institution have access to affordable, quality child 
        care services.]
  (e) Reporting Requirements; Continuing Eligibility.--
          (1) Reporting requirements.--
                  (A) Reports.--Each institution of higher 
                education receiving a grant under this section 
                shall report to the Secretary annually. The 
                Secretary shall annually publish such reports 
                on a publicly accessible website of the 
                Department of Education.
                  (B) Contents.--Each report shall include--
                          (i) data on the population served 
                        under this section, including the total 
                        number of children and families served;
                          (ii) information on sources of campus 
                        and community resources and the amount 
                        of non-Federal funding used to help 
                        low-income students access child care 
                        services on campus;
                          (iii) documentation that the program 
                        meets applicable licensing, 
                        certification, approval, or 
                        registration requirements; and
                          (iv) a description of how funding was 
                        used to pursue the goals of this 
                        section determined by the institution 
                        under subsection (c).
          (2) Continuing eligibility.--The Secretary shall make 
        continuation awards under this section to an 
        institution of higher education only if the Secretary 
        determines, on the basis of the reports submitted under 
        paragraph (1) and the application from the institution, 
        that the institution is--
                  (A) using funds only for authorized purposes;
                  (B) providing low-income students at the 
                institution with priority access to affordable, 
                quality child care services as provided under 
                this section; and
                  (C) documenting a continued need for Federal 
                funding under this section, while demonstrating 
                how non-federal sources will be leveraged to 
                support a continuation award.
  (f) Construction.--No funds provided under this section shall 
be used for construction, except for minor renovation or repair 
to meet applicable State or local health or safety 
requirements.
  (g) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section [such sums as may be 
necessary for fiscal year 2009 and each of the five succeeding 
fiscal years] $15,134,000 for each of fiscal years 2019 through 
2024.

                        Subpart 9--TEACH Grants

SEC. 420L. DEFINITIONS.

   For the purposes of this subpart:
          (1) Eligible institution.--The term ``eligible 
        institution'' means an institution of higher education, 
        as defined in [section 102] section 102 (as in effect 
        on the day before the date of enactment of the PROSPER 
        Act), 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 responsible;
                  (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.
          (2) Post-baccalaureate.--The term ``post-
        baccalaureate'' means a program of instruction for 
        individuals who have completed a baccalaureate degree, 
        that does not lead to a graduate degree, and that 
        consists of courses required by a State in order for a 
        teacher candidate 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 eligible institution that offers a baccalaureate 
        degree in education.
          (3) Teacher candidate.--The term ``teacher 
        candidate'' means a student or teacher described in 
        subparagraph (A) or (B) of section 420N(a)(2).

SEC. 420M. PROGRAM ESTABLISHED.

  (a) Program Authority.--
          (1) Payments required.--The Secretary shall pay to 
        each eligible institution such sums as may be necessary 
        to pay to each teacher candidate who files an 
        application and agreement in accordance with section 
        420N, and who qualifies under paragraph (2) of section 
        420N(a), a TEACH Grant in the amount of $4,000 for each 
        year during which that teacher candidate is in 
        attendance at the institution.
          (2) References.--Grants made under paragraph (1) 
        shall be known as ``Teacher Education Assistance for 
        College and Higher Education Grants'' or ``TEACH 
        Grants''.
          (3) Termination.--
                  (A) Termination of program authority.--Except 
                as provided in paragraph (4), no new grants may 
                be made under this subpart after June 30, 2018.
                  (B) Limitation on funds.--
                          (i) In general.--No funds are 
                        authorized to be appropriated, and no 
                        funds may be obligated or expended 
                        under this Act or any other Act, to 
                        make a grant to a new recipient under 
                        this subpart.
                          (ii) New recipient defined.--For 
                        purposes of this subparagraph, the term 
                        ``new recipient'' means a teacher 
                        candidate who has not received a grant 
                        under this subpart for which the first 
                        disbursement was on or before June 30, 
                        2018.
          (4) Student eligibility beginning with award year 
        2018.--With respect to a recipient of a grant under 
        this subpart for which the first disbursement was made 
        on or before June 30, 2018, such recipient may receive 
        additional grants under this subpart until the earlier 
        of--
                  (A) the date on which the recipient completes 
                the course of study for which the recipient 
                received the grant for which the first 
                disbursement was made on or before June 30, 
                2018; or
                  (B) the date on which the recipient receives 
                the total amount that the recipient may receive 
                under this subpart in accordance with 
                subsection (d).
  (b) Payment Methodology.--
          (1) Prepayment.--Not less than 85 percent of any 
        funds provided to an eligible institution under 
        subsection (a) shall be advanced to the eligible 
        institution prior to the start of each payment period 
        and shall be based upon an amount requested by the 
        institution as needed to pay teacher candidates 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) Direct payment.--Nothing in this section shall be 
        interpreted to prohibit the Secretary from paying 
        directly to teacher candidates, in advance of the 
        beginning of the academic term, an amount for which 
        teacher candidates are eligible, in cases where the 
        eligible institution elects not to participate in the 
        disbursement system required by paragraph (1).
          (3) Distribution of grants to teacher candidates.--
        Payments under this subpart shall be made, in 
        accordance with regulations promulgated by the 
        Secretary for such purpose, in such manner as will best 
        accomplish the purposes of this subpart. Any 
        disbursement allowed to be made by crediting the 
        teacher candidate's account shall be limited to tuition 
        and fees and, in the case of institutionally-owned 
        housing, room and board. The teacher candidate may 
        elect to have the institution provide other such goods 
        and services by crediting the teacher candidate's 
        account.
  (c) Reductions in Amount.--
          (1) Part-time students.--In any case where a teacher 
        candidate attends an eligible institution on less than 
        a full-time basis (including a teacher candidate who 
        attends an eligible institution on less than a half-
        time basis) during any year, the amount of a grant 
        under this subpart for which that teacher candidate is 
        eligible shall be reduced in proportion to the degree 
        to which that teacher candidate is not attending on a 
        full-time basis, in accordance with a schedule of 
        reductions established by the Secretary for the 
        purposes of this subpart, computed in accordance with 
        this subpart. Such schedule of reductions shall be 
        established by regulation and published in the Federal 
        Register in accordance with section 482 of this Act.
          (2) No exceeding cost.--The amount of a grant awarded 
        under this subpart, in combination with Federal 
        assistance and other assistance the student may 
        receive, shall not exceed the cost of attendance (as 
        defined in section 472) at the eligible institution at 
        which that teacher candidate is in attendance.
  (d) Period of Eligibility for Grants.--
          (1) Undergraduate and post-baccalaureate students.--
        The period during which an undergraduate or post-
        baccalaureate student may receive grants under this 
        subpart shall be the period required for the completion 
        of the first undergraduate baccalaureate or post-
        baccalaureate course of study being pursued by the 
        teacher candidate at the eligible institution at which 
        the teacher candidate is in attendance, except that--
                  (A) any period during which the teacher 
                candidate is enrolled in a noncredit or 
                remedial course of study as described in 
                paragraph (3) shall not be counted for the 
                purpose of this paragraph; and
                  (B) the total amount that a teacher candidate 
                may receive under this subpart for 
                undergraduate or post-baccalaureate study shall 
                not exceed $16,000.
          (2) Graduate students.--The period during which a 
        graduate student may receive grants under this subpart 
        shall be the period required for the completion of a 
        master's degree course of study pursued by the teacher 
        candidate at the eligible institution at which the 
        teacher candidate is in attendance, except that the 
        total amount that a teacher candidate may receive under 
        this subpart for graduate study shall not exceed 
        $8,000.
          (3) Remedial course; study abroad.--Nothing in this 
        section shall be construed to exclude from eligibility 
        courses of study which are noncredit or remedial in 
        nature (including courses in English language 
        acquisition) which are determined by the eligible 
        institution to be necessary to help the teacher 
        candidate be prepared for the pursuit of a first 
        undergraduate baccalaureate or post-baccalaureate 
        degree or certificate or, in the case of courses in 
        English language instruction, to be necessary to enable 
        the teacher candidate to utilize already existing 
        knowledge, training, or skills. Nothing in this section 
        shall be construed to exclude from eligibility programs 
        of study abroad that are approved for credit by the 
        home institution at which the teacher candidate is 
        enrolled.

SEC. 420N. APPLICATIONS; ELIGIBILITY.

  (a) Applications; Demonstration of Eligibility.--
          (1) Filing required.--The Secretary shall 
        periodically set dates by which teacher candidates 
        shall file applications for grants under this subpart. 
        Each teacher candidate desiring a grant under this 
        subpart for any year shall file an application 
        containing such information and assurances as the 
        Secretary may determine necessary to enable the 
        Secretary to carry out the functions and 
        responsibilities of this subpart.
          (2) Demonstration of teach grant eligibility.--Each 
        application submitted under paragraph (1) shall contain 
        such information as is necessary to demonstrate that--
                  (A) if the applicant is an enrolled student--
                          (i) the student is an eligible 
                        student for purposes of section 484;
                          (ii) the student--
                                  (I) has a grade point average 
                                that is determined, under 
                                standards prescribed by the 
                                Secretary, to be comparable to 
                                a 3.25 average on a zero to 4.0 
                                scale, except that, if the 
                                student is in the first year of 
                                a program of undergraduate 
                                education, such grade point 
                                average shall be determined on 
                                the basis of the student's 
                                cumulative secondary school 
                                grade point average; or
                                  (II) displayed high academic 
                                aptitude by receiving a score 
                                above the 75th percentile on at 
                                least one of the batteries in 
                                an undergraduate, post-
                                baccalaureate, or graduate 
                                school admissions test; and
                          (iii) the student is completing 
                        coursework and other requirements 
                        necessary to begin a career in 
                        teaching, or plans to complete such 
                        coursework and requirements prior to 
                        graduating; or
                  (B) if the applicant is a current or 
                prospective teacher applying for a grant to 
                obtain a graduate degree--
                          (i) the applicant is a teacher or a 
                        retiree from another occupation with 
                        expertise in a field in which there is 
                        a shortage of teachers, such as 
                        mathematics, science, special 
                        education, English language 
                        acquisition, or another high-need 
                        subject; or
                          (ii) the applicant is or was a 
                        teacher who is using high-quality 
                        alternative certification routes, such 
                        as Teach for America, to get certified.
  (b) Agreements to Serve.--Each application under subsection 
(a) shall contain or be accompanied by an agreement by the 
applicant that--
          (1) the applicant will--
                  (A) serve as a full-time teacher for a total 
                of not less than 4 academic years within 8 
                years after completing the course of study for 
                which the applicant received a TEACH Grant 
                under this subpart;
                  [(B) teach in a school described in section 
                465(a)(2)(A);]
                  (B) teach--
                          (i) in a public or other nonprofit 
                        private elementary school or secondary 
                        school, which, for the purpose of this 
                        paragraph and for that year--
                                  (I) has been determined by 
                                the Secretary (pursuant to 
                                regulations of the Secretary 
                                and after consultation with the 
                                State educational agency of the 
                                State in which the school is 
                                located) to be a school in 
                                which the number of children 
                                meeting a measure of poverty 
                                under section 1113(a)(5) of the 
                                Elementary and Secondary 
                                Education Act of 1965 (20 
                                U.S.C. 6313(a)(5)), exceeds 30 
                                percent of the total number of 
                                children enrolled in such 
                                school; and
                                  (II) is in the school 
                                district of a local educational 
                                agency which is eligible in 
                                such year for assistance 
                                pursuant to part A of title I 
                                of the Elementary and Secondary 
                                Education Act of 1965 (20 
                                U.S.C. 6311 et seq.); or
                          (ii) in one or more public, or 
                        nonprofit private, elementary schools 
                        or secondary schools or locations 
                        operated by an educational service 
                        agency that have been determined by the 
                        Secretary (pursuant to regulations of 
                        the Secretary and after consultation 
                        with the State educational agency of 
                        the State in which the educational 
                        service agency operates) to be a school 
                        or location at which the number of 
                        children taught who meet a measure of 
                        poverty under section 1113(a)(5) of the 
                        Elementary and Secondary Education Act 
                        of 1965 (20 U.S.C. 6313(a)(5)), exceeds 
                        30 percent of the total number of 
                        children taught at such school or 
                        location;
                  (C) teach in any of the following fields--
                          (i) mathematics;
                          (ii) science;
                          (iii) a foreign language;
                          (iv) bilingual education;
                          (v) special education;
                          (vi) as a reading specialist; or
                          (vii) another field documented as 
                        high-need by the Federal Government, 
                        State government, or local educational 
                        agency, and approved by the Secretary;
                  (D) submit evidence of such employment in the 
                form of a certification by the chief 
                administrative officer of the school upon 
                completion of each year of such service; and
                  (E) comply with the requirements for being a 
                highly qualified teacher as defined in section 
                9101 of the Elementary and Secondary Education 
                Act of 1965;
          (2) in the event that the applicant is determined to 
        have failed or refused to carry out such service 
        obligation, the sum of the amounts of any TEACH Grants 
        received by such applicant will be treated as a loan 
        and collected from the applicant in accordance with 
        subsection (c) and the regulations thereunder; and
          (3) contains, or is accompanied by, a plain-language 
        disclosure form developed by the Secretary that clearly 
        describes the nature of the TEACH Grant award, the 
        service obligation, and the loan repayment requirements 
        that are the consequence of the failure to complete the 
        service obligation.
  (c) Repayment for Failure to Complete Service.--In the event 
that any recipient of a grant under this subpart fails or 
refuses to comply with the service obligation in the agreement 
under subsection (b), the sum of the amounts of any TEACH 
Grants received by such recipient shall, upon a determination 
of such a failure or refusal in such service obligation, be 
treated as a Federal Direct Unsubsidized Stafford Loan under 
part D of title IV (as in effect on the day before the date of 
the enactment of the PROSPER Act), and shall be subject to 
repayment, together with interest thereon accruing from the 
date of the grant award, in accordance with terms and 
conditions specified by the Secretary in regulations under this 
subpart.
  (d) Additional Administrative Provisions.--
          (1) Change of high-need designation.--If a recipient 
        of an initial grant under this subpart has acquired an 
        academic degree, or expertise, in a field that was, at 
        the time of the recipient's application for that grant, 
        designated as high need in accordance with subsection 
        (b)(1)(C)(vii), but is no longer so designated, the 
        grant recipient may fulfill the service obligation 
        described in subsection (b)(1) by teaching in that 
        field.
          (2) Extenuating circumstances.--The Secretary shall 
        establish, by regulation, categories of extenuating 
        circumstances under which a recipient of a grant under 
        this subpart who is unable to fulfill all or part of 
        the recipient's service obligation may be excused from 
        fulfilling that portion of the service obligation.

SEC. 420O. PROGRAM PERIOD AND FUNDING.

  Beginning on July 1, [2008] 2008, and ending on June 30, 
2018, there shall be available to the Secretary to carry out 
this subpart, from funds not otherwise appropriated, such sums 
as may be necessary to provide TEACH Grants in accordance with 
this subpart to each eligible applicant. Except as provided in 
section 420M(a)(4), no funds shall be available to the 
Secretary to carry out this subpart after June 30, 2018.

           *       *       *       *       *       *       *


Subpart 10--Scholarships for Veteran's Dependents

           *       *       *       *       *       *       *


Part B--Federal Family Education Loan Program

           *       *       *       *       *       *       *


SEC. 428C. FEDERAL CONSOLIDATION LOANS.

  (a) Agreements With Eligible Lenders.--
          (1) Agreement required for insurance coverage.--For 
        the purpose of providing loans to eligible borrowers 
        for consolidation of their obligations with respect to 
        eligible student loans, the Secretary or a guaranty 
        agency shall enter into agreements in accordance with 
        subsection (b) with the following eligible lenders:
                  (A) 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;
                  (B) State agencies described in subparagraphs 
                (D) and (F) of section 435(d)(1); and
                  (C) other eligible lenders described in 
                subparagraphs (A), (B), (C), (E), and (J) of 
                such section.
          (2) Insurance coverage of consolidation loans.--
        Except as provided in section 429(e), no contract of 
        insurance under this part shall apply to a 
        consolidation loan unless such loan is made under an 
        agreement pursuant to this section and is covered by a 
        certificate issued in accordance with subsection 
        (b)(2). Loans covered by such a certificate that is 
        issued by a guaranty agency shall be considered to be 
        insured loans for the purposes of reimbursements under 
        section 428(c), but no payment shall be made with 
        respect to such loans under section 428(f) to any such 
        agency.
          (3) Definition of eligible borrower.--(A) For the 
        purpose of this section, the term ``eligible borrower'' 
        means a borrower who--
                  (i) is not subject to a judgment secured 
                through litigation with respect to a loan under 
                this title or to an order for wage garnishment 
                under section 488A; and
                  (ii) at the time of application for a 
                consolidation loan--
                          (I) is in repayment status as 
                        determined under section 428(b)(7)(A);
                          (II) is in a grace period preceding 
                        repay-ment; or
                          (III) is a defaulted borrower who has 
                        made arrangements to repay the 
                        obligation on the defaulted loans 
                        satisfactory to the holders of the 
                        defaulted loans.
          (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) an individual who receives eligible 
                student loans after the date of receipt of the 
                consolidation loan may receive a subsequent 
                consolidation loan;
                  (II) loans received prior to the date of the 
                consolidation loan may be added during the 180-
                day period following the making of the 
                consolidation loan;
                  (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;
                  (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--
                                  (aa) for the purposes of 
                                obtaining income contingent 
                                repayment or income-based 
                                repayment, and only if the loan 
                                has been submitted to the 
                                guaranty agency for default 
                                aversion or if the loan is 
                                already in default;
                                  (bb) for the purposes of 
                                using the public service loan 
                                forgiveness program under 
                                section 455(m); or
                          (cc) for the purpose of using the no 
                        accrual of interest for active duty 
                        service members benefit offered under 
                        section 455(o).
          (4) Definition of eligible student loans.--For the 
        purpose of paragraph (1), the term ``eligible student 
        loans'' means loans--
                  (A) made, insured, or guaranteed under this 
                part, and first disbursed before July 1, 2010, 
                including loans on which the borrower has 
                defaulted (but has made arrangements to repay 
                the obligation on the defaulted loans 
                satisfactory to the Secretary or guaranty 
                agency, whichever insured the loans);
                  (B) made under part E of this title, as in 
                effect on the day before the date of enactment 
                of the PROSPER Act and pursuant to section 
                461(a) of such Act;
                  (C) made under part D of this title;
                  (D) made under subpart II of part A of title 
                VII of the Public Health Service Act; or
                  (E) made under part E of title VIII of the 
                Public Health Service Act.
  (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;
                  (B) that each consolidation loan made by the 
                lender will bear interest, and be subject to 
                repayment, in accordance with subsection (c);
                  (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;
                  (D) that the proceeds of each consolidation 
                loan will be paid by the lender to the holder 
                or holders of the loans so selected to 
                discharge the liability on such loans;
                  (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 before July 1, 2010;
                  (F) that the lender shall disclose to a 
                prospective borrower, in simple and 
                understandable terms, at the time the lender 
                provides an application for a consolidation 
                loan--
                          (i) whether consolidation would 
                        result in a loss of loan benefits under 
                        this part or part D, including loan 
                        forgiveness, cancellation, and 
                        deferment;
                          (ii) with respect to Federal Perkins 
                        Loans under part E, as in effect on the 
                        day before the date of enactment of the 
                        PROSPER Act and pursuant to section 
                        461(a) of such Act--
                                  (I) that if a borrower 
                                includes a Federal Perkins Loan 
                                under part E, as so in effect, 
                                in the consolidation loan, the 
                                borrower will lose all 
                                interest-free periods that 
                                would have been available for 
                                the Federal Perkins Loan, such 
                                as--
                                          (aa) the periods 
                                        during which no 
                                        interest accrues on 
                                        such loan while the 
                                        borrower is enrolled in 
                                        school at least half-
                                        time;
                                          (bb) the grace period 
                                        under section 
                                        464(c)(1)(A), as so in 
                                        effect; and
                                          (cc) the periods 
                                        during which the 
                                        borrower's student loan 
                                        repayments are deferred 
                                        under section 
                                        464(c)(2);
                                  (II) that if a borrower 
                                includes a Federal Perkins Loan 
                                in the consolidation loan, the 
                                borrower will no longer be 
                                eligible for cancellation of 
                                part or all of the Federal 
                                Perkins Loan under section 
                                465(a), as so in effect; and
                                  (III) the occupations listed 
                                in section 465, as so in effect 
                                that qualify for Federal 
                                Perkins Loan cancellation under 
                                section 465(a), as so in 
                                effect;
                          (iii) the repayment plans that are 
                        available to the borrower;
                          (iv) the options of the borrower to 
                        prepay the consolidation loan, to pay 
                        such loan on a shorter schedule, and to 
                        change repayment plans;
                          (v) that borrower benefit programs 
                        for a consolidation loan may vary among 
                        different lenders;
                          (vi) the consequences of default on 
                        the consolidation loan; and
                          (vii) that by applying for a 
                        consolidation loan, the borrower is not 
                        obligated to agree to take the 
                        consolidation loan; and
                  (G) such other terms and conditions as the 
                Secretary or the guaranty agency may 
                specifically require of the lender to carry out 
                this section.
          (2) Issuance of certificate of comprehensive 
        insurance coverage.--The Secretary shall issue a 
        certificate of comprehensive insurance coverage under 
        section 429(b) to a lender which has entered into an 
        agreement with the Secretary under paragraph (1) of 
        this subsection. The guaranty agency may issue a 
        certificate of comprehensive insurance coverage to a 
        lender with which it has an agreement under such 
        paragraph. The Secretary shall not issue a certificate 
        to a lender described in subparagraph (B) or (C) of 
        subsection (a)(1) unless the Secretary determines that 
        such lender has first applied to, and has been denied a 
        certificate of insurance by, the guaranty agency which 
        insures the preponderance of its loans (by value).
          (3) Contents of certificate.--A certificate issued 
        under paragraph (2) shall, at a minimum, provide--
                  (A) that all consolidation loans made by such 
                lender in conformity with the requirements of 
                this section will be insured by the Secretary 
                or the guaranty agency (whichever is 
                applicable) against loss of principal and 
                interest;
                  (B) that a consolidation loan will not be 
                insured unless the lender has determined to its 
                satisfaction, in accordance with reasonable and 
                prudent business practices, for each loan being 
                consolidated--
                          (i) that the loan is a legal, valid, 
                        and binding obligation of the borrower;
                          (ii) that each such loan was made and 
                        serviced in compliance with applicable 
                        laws and regulations; and
                          (iii) in the case of loans under this 
                        part, that the insurance on such loan 
                        is in full force and effect;
                  (C) the effective date and expiration date of 
                the certificate;
                  (D) the aggregate amount to which the 
                certificate applies;
                  (E) the reporting requirements of the 
                Secretary on the lender and an identification 
                of the office of the Department of Education or 
                of the guaranty agency which will process 
                claims and perform other related administrative 
                functions;
                  (F) the alternative repayment terms which 
                will be offered to borrowers by the lender;
                  (G) that, if the lender prior to the 
                expiration of the certificate no longer 
                proposes to make consolidation loans, the 
                lender will so notify the issuer of the 
                certificate in order that the certificate may 
                be terminated (without affecting the insurance 
                on any consolidation loan made prior to such 
                termination); and
                  (H) the terms upon which the issuer of the 
                certificate may limit, suspend, or terminate 
                the lender's authority to make consolidation 
                loans under the certificate (without affecting 
                the insurance on any consolidation loan made 
                prior to such limitation, suspension, or 
                termination).
          (4) Terms and conditions of loans.--A consolidation 
        loan made pursuant to this section shall be insurable 
        by the Secretary or a guaranty agency pursuant to 
        paragraph (2) only if the loan is made to an eligible 
        borrower who has agreed to notify the holder of the 
        loan promptly concerning any change of address and the 
        loan is evidenced by a note or other written agreement 
        which--
                  (A) is made without security and without 
                endorsement, except that if the borrower is a 
                minor and such note or other written agreement 
                executed by him or her would not, under 
                applicable law, create a binding obligation, 
                endorsement may be required;
                  (B) provides for the payment of interest and 
                the repayment of principal in accordance with 
                subsection (c) of this section;
                  (C)(i) provides that periodic installments of 
                principal need not be paid, but interest shall 
                accrue and be paid in accordance with clause 
                (ii), during any period for which the borrower 
                would be eligible for a deferral under section 
                428(b)(1)(M), and that any such period shall 
                not be included in determining the repayment 
                schedule pursuant to subsection (c)(2) of this 
                section; and
                  (ii) provides that interest shall accrue and 
                be paid during any such period--
                          (I) by the Secretary, in the case of 
                        a consolidation loan for which the 
                        application is received by an eligible 
                        lender before the date of enactment of 
                        the Emergency Student Loan 
                        Consolidation Act of 1997 that 
                        consolidated only Federal Stafford 
                        Loans for which the student borrower 
                        received an interest subsidy under 
                        section 428;
                          (II) by the Secretary, in the case of 
                        a consolidation loan for which the 
                        application is received by an eligible 
                        lender on or after the date of 
                        enactment of the Emergency Student Loan 
                        Consolidation Act of 1997 except that 
                        the Secretary shall pay such interest 
                        only on that portion of the loan that 
                        repays Federal Stafford Loans for which 
                        the student borrower received an 
                        interest subsidy under section 428 or 
                        Federal Direct Stafford Loans for which 
                        the borrower received an interest 
                        subsidy under section 455; or
                          (III) by the borrower, or 
                        capitalized, in the case of a 
                        consolidation loan other than a loan 
                        described in subclause (I) or (II);
                  (D) entitles the borrower to accelerate 
                without penalty repayment of the whole or any 
                part of the loan; and
                  (E)(i) contains a notice of the system of 
                disclosure concerning such loan to consumer 
                reporting agencies under section 430A, and (ii) 
                provides that the lender on request of the 
                borrower will provide information on the 
                repayment status of the note to such consumer 
                reporting agencies.
          (5) Direct loans.--If, before July 1, 2010, 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 or income-based repayment 
        terms acceptable to the borrower from such a lender, or 
        chooses to obtain a consolidation loan for the purposes 
        of using the public service loan forgiveness program 
        offered under section 455(m), the Secretary shall offer 
        any such borrower who applies for it, a Federal Direct 
        Consolidation loan. In addition, in the event that a 
        borrower chooses to obtain a consolidation loan for the 
        purposes of using the no accrual of interest for active 
        duty service members program offered under section 
        455(o), the Secretary shall offer a Federal Direct 
        Consolidation loan to any such borrower who applies for 
        participation in such program. A direct consolidation 
        loan offered under this paragraph shall, as requested 
        by the borrower, be repaid either pursuant to income 
        contingent repayment under part D of this title, 
        pursuant to income-based repayment under section 493C, 
        or pursuant to any other repayment provision under this 
        section, except that if a borrower intends to be 
        eligible to use the public service loan forgiveness 
        program under section 455(m), such loan shall be repaid 
        using one of the repayment options described in section 
        455(m)(1)(A). 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.
          (6) Nondiscrimination in Loan Consolidation.--An 
        eligible lender that makes consolidation loans under 
        this section shall not discriminate against any 
        borrower seeking such a loan--
                  (A) based on the number or type of eligible 
                student loans the borrower seeks to 
                consolidate, except that a lender is not 
                required to consolidate loans described in 
                subparagraph (D) or (E) of subsection (a)(4) or 
                subsection (d)(1)(C)(ii);
                  (B) based on the type or category of 
                institution of higher education that the 
                borrower attended;
                  (C) based on the interest rate to be charged 
                to the borrower with respect to the 
                consolidation loan; or
                  (D) with respect to the types of repayment 
                schedules offered to such borrower.
  (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) on or after October 1, 1998, and before 
                July 1, 2006, the applicable interest rate 
                shall be determined under section 427A(k)(4); 
                or
                  (ii) on or after July 1, 2006, and that is 
                disbursed before July 1, 2010, the applicable 
                interest rate shall be determined under section 
                427A(l)(3).
          (B) A consolidation loan made before July 1, 1994, 
        shall bear interest at an annual rate on the unpaid 
        principal balance of the loan that is equal to the 
        greater of--
                  (i) the weighted average of the interest 
                rates on the loans consolidated, rounded to the 
                nearest whole percent; or
                  (ii) 9 percent.
          (C) A consolidation loan made on or after July 1, 
        1994, and disbursed before July 1, 2010, shall bear 
        interest at an annual rate on the unpaid principal 
        balance of the loan that is equal to the weighted 
        average of the interest rates on the loans 
        consolidated, rounded upward to the nearest whole 
        percent.
          (D) A consolidation loan for which the application is 
        received by an eligible lender on or after the date of 
        enactment of the Emergency Student Loan Consolidation 
        Act of 1997 and before October 1, 1998, shall bear 
        interest at an annual rate on the unpaid principal 
        balance of the loan that is equal to the rate specified 
        in section 427A(f), except that the eligible lender may 
        continue to calculate interest on such a loan at the 
        rate previously in effect and defer, until not later 
        than April 1, 1998, the recalculation of the interest 
        on such a loan at the rate required by this 
        subparagraph if the recalculation is applied 
        retroactively to the date on which the loan is made.
          (2) Repayment schedules.--(A) Notwithstanding any 
        other provision of this part, to the extent authorized 
        by its certificate of insurance under subsection (b)(2) 
        and approved by the issuer of such certificate, the 
        lender of a consolidation loan shall establish 
        repayment terms as will promote the objectives of this 
        section, which shall include the establishment of 
        graduated, income-sensitive, or income-based repayment 
        schedules, established by the lender in accordance with 
        the regulations of the Secretary. Except as required by 
        such income-sensitive or income-based repayment 
        schedules, or by the terms of repayment pursuant to 
        income contingent repayment offered by the Secretary 
        under subsection (b)(5), such repayment terms shall 
        require that if the sum of the consolidation loan and 
        the amount outstanding on other student loans to the 
        individual--
                  (i) is less than $7,500, then such 
                consolidation loan shall be repaid in not more 
                than 10 years;
                  (ii) is equal to or greater than $7,500 but 
                less than $10,000, then such consolidation loan 
                shall be repaid in not more than 12 years;
                  (iii) is equal to or greater than $10,000 but 
                less than $20,000, then such consolidation loan 
                shall be repaid in not more than 15 years;
                  (iv) is equal to or greater than $20,000 but 
                less than $40,000, then such consolidation loan 
                shall be repaid in not more than 20 years;
                  (v) is equal to or greater than $40,000 but 
                less than $60,000, then such consolidation loan 
                shall be repaid in not more than 25 years; or
                  (vi) is equal to or greater than $60,000, 
                then such consolidation loan shall be repaid in 
                not more than 30 years.
          (B) The amount outstanding on other student loans 
        which may be counted for the purpose of subparagraph 
        (A) may not exceed the amount of the consolidation 
        loan.
          (3) Additional repayment requirements.--
        Notwithstanding paragraph (2)--
                  (A) except in the case of an income-based 
                repayment schedule under section 493C, a 
                repayment schedule established with respect to 
                a consolidation loan shall require that the 
                minimum installment payment be an amount equal 
                to not less than the accrued unpaid interest;
                  (B) except as required by the terms of 
                repayment pursuant to income contingent 
                repayment offered by the Secretary under 
                subsection (b)(5), the lender of a 
                consolidation loan may, with respect to 
                repayment on the loan, when the amount of a 
                monthly or other similar payment on the loan is 
                not a multiple of $5, round the payment to the 
                next highest whole dollar amount that is a 
                multiple of $5; and
                  (C) an income-based repayment schedule under 
                section 493C shall not be available to a 
                consolidation loan borrower who used the 
                proceeds of the loan to discharge the liability 
                on a loan under section 428B, or a Federal 
                Direct PLUS loan, made on behalf of a dependent 
                student.
          (4) Commencement of repayment.--Repayment of a 
        consolidation loan shall commence within 60 days after 
        all holders have, pursuant to subsection (b)(1)(D), 
        discharged the liability of the borrower on the loans 
        selected for consolidation.
          (5) Insurance premiums prohibited.--No insurance 
        premium shall be charged to the borrower on any 
        consolidation loan, and no insurance premium shall be 
        payable by the lender to the Secretary with respect to 
        any such loan, but a fee may be payable by the lender 
        to the guaranty agency to cover the costs of increased 
        or extended liability with respect to such loan.
  (d) Special Program Authorized.--
          (1) General rule and definition of eligible student 
        loan.--
                  (A) In general.--Subject to the provisions of 
                this subsection, the Secretary or a guaranty 
                agency shall enter into agreements with 
                eligible lenders described in subparagraphs 
                (A), (B), and (C) of subsection (a)(1) for the 
                consolidation of eligible student loans.
                  (B) Applicability rule.--Unless otherwise 
                provided in this subsection, the agreements 
                entered into under subparagraph (A) and the 
                loans made under such agreements for the 
                consolidation of eligible student loans under 
                this subsection shall have the same terms, 
                conditions, and benefits as all other 
                agreements and loans made under this section.
                  (C) Definition.--For the purpose of this 
                subsection, the term ``eligible student loans'' 
                means loans--
                          (i) of the type described in 
                        subparagraphs (A), (B), and (C) of 
                        subsection (a)(4); and
                          (ii) made under subpart I of part A 
                        of title VII of the Public Health 
                        Service Act.
          (2) Interest rate rule.--
                  (A) In general.--The portion of each 
                consolidated loan that is attributable to an 
                eligible student loan described in paragraph 
                (1)(C)(ii) shall bear interest at a rate not to 
                exceed the rate determined under subparagraph 
                (B).
                  (B) Determination of the maximum interest 
                rate.--For the 12-month period beginning after 
                July 1, 1992, and for each 12-month period 
                thereafter, beginning on July 1 and ending on 
                June 30, the interest rate applicable under 
                subparagraph (A) shall be equal to the average 
                of the bond equivalent rates of the 91-day 
                Treasury bills auctioned for the quarter prior 
                to July 1, for each 12-month period for which 
                the determination is made, plus 3 percent.
                  (C) Publication of maximum interest rate.--
                The Secretary shall determine the applicable 
                rate of interest under subparagraph (B) 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 such determination.
          (3) Special rules.--
                  (A) No special allowance rule.--No special 
                allowance under section 438 shall be paid with 
                respect to the portion of any consolidated loan 
                under this subsection that is attributable to 
                any loan described in paragraph (1)(C)(ii).
                  (B) No interest subsidy rule.--No interest 
                subsidy under section 428(a) shall be paid on 
                behalf of any eligible borrower for any portion 
                of a consolidated loan under this subsection 
                that is attributable to any loan described in 
                paragraph (1)(C)(ii).
                  (C) Additional reserve rule.--Notwithstanding 
                any other provision of this Act, additional 
                reserves shall not be required for any guaranty 
                agency with respect to a loan made under this 
                subsection.
                  (D) Insurance rule.--Any insurance premium 
                paid by the borrower under subpart I of part A 
                of title VII of the Public Health Service Act 
                with respect to a loan made under that subpart 
                and consolidated under this subsection shall be 
                retained by the student loan insurance account 
                established under section 710 of the Public 
                Health Service Act.
          (4) Regulations.--The Secretary is authorized to 
        promulgate such regulations as may be necessary to 
        facilitate carrying out the provisions of this 
        subsection.
  (e) Termination of Authority.--The authority to make loans 
under this section expires at the close of June 30, 2010. No 
loan may be made under this section for which the disbursement 
is on or after July 1, 2010. 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).
  (f) Interest Payment Rebate Fee.--
          (1) In general.--For any month beginning on or after 
        October 1, 1993, each holder of a consolidation loan 
        under this section for which the first disbursement was 
        made on or after October 1, 1993, shall pay to the 
        Secretary, on a monthly basis and in such manner as the 
        Secretary shall prescribe, a rebate fee calculated on 
        an annual basis equal to 1.05 percent of the principal 
        plus accrued unpaid interest on such loan.
          (2) Special rule.--For consolidation loans based on 
        applications received during the period from October 1, 
        1998 through January 31, 1999, inclusive, the rebate 
        described in paragraph (1) shall be equal to 0.62 
        percent of the principal plus accrued unpaid interest 
        on such loan.
          (3) Deposit.--The Secretary shall deposit all fees 
        collected pursuant to this subsection into the 
        insurance fund established in section 431.

           *       *       *       *       *       *       *


SEC. 428F. DEFAULT REDUCTION PROGRAM.

  (a) Other Repayment Incentives.--
          (1) Sale or assignment of loan.--
                  (A) In general.--Each guaranty agency, upon 
                securing 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), shall--
                          (i) if practicable, sell the loan to 
                        an eligible lender; or
                          (ii) beginning July 1, 2014, assign 
                        the loan to the Secretary if the 
                        guaranty agency has been unable to sell 
                        the loan under clause (i).
                  (B) Monthly payments.--Neither the guaranty 
                agency nor the Secretary shall demand from a 
                borrower as monthly payment amounts described 
                in subparagraph (A) more than is reasonable and 
                affordable based on the borrower's total 
                financial circumstances.
                  (C) Consumer reporting agencies.--Upon the 
                sale or assignment of the loan, the Secretary, 
                guaranty agency or other holder of the loan 
                shall request any consumer reporting agency to 
                which the Secretary, guaranty agency or holder, 
                as applicable, reported the default of the 
                loan, to remove the record of the default from 
                the borrower's credit history.
                  (D) Duties upon sale.--With respect to a loan 
                sold under subparagraph (A)(i)--
                          (i) the guaranty agency--
                                  (I) shall, in the case of a 
                                sale made on or after July 1, 
                                2014, repay the Secretary 100 
                                percent of the amount of the 
                                principal balance outstanding 
                                at the time of such sale, 
                                multiplied by the reinsurance 
                                percentage in effect when 
                                payment under the guaranty 
                                agreement was made with respect 
                                to the loan; and
                                  (II) may, in the case of a 
                                sale made on or after July 1, 
                                2014, in order to defray 
                                collection costs--
                                          (aa) charge to the 
                                        borrower an amount not 
                                        to exceed 16 percent of 
                                        the outstanding 
                                        principal and interest 
                                        at the time of the loan 
                                        sale; and
                                          (bb) retain such 
                                        amount from the 
                                        proceeds of the loan 
                                        sale; and
                          (ii) the Secretary shall reinstate 
                        the Secretary's obligation to--
                                  (I) reimburse the guaranty 
                                agency for the amount that the 
                                agency may, in the future, 
                                expend to discharge the 
                                guaranty agency's insurance 
                                obligation; and
                                  (II) pay to the holder of 
                                such loan a special allowance 
                                pursuant to section 438.
                  (E) Duties upon assignment.--With respect to 
                a loan assigned under subparagraph (A)(ii)--
                          (i) the guaranty agency shall add to 
                        the principal and interest outstanding 
                        at the time of the assignment of such 
                        loan an amount equal to the amount 
                        described in subparagraph 
                        (D)(i)(II)(aa); and
                          (ii) the Secretary shall pay the 
                        guaranty agency, for deposit in the 
                        agency's Operating Fund established 
                        pursuant to section 422B, an amount 
                        equal to the amount added to the 
                        principal and interest outstanding at 
                        the time of the assignment in 
                        accordance with clause (i).
                  (F) Eligible lender limitation.--A loan shall 
                not be sold to an eligible lender under 
                subparagraph (A)(i) if such lender 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.
                  (G) Default due to error.--A loan that does 
                not meet the requirements of subparagraph (A) 
                may also be eligible for sale or assignment 
                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.
          (2) Use of proceeds of sales.--Amounts received by 
        the Secretary pursuant to the sale of such loans by a 
        guaranty agency under paragraph (1)(A)(i) shall be 
        deducted from the calculations of the amount of 
        reimbursement for which the agency is eligible under 
        paragraph (1)(D)(ii)(I) for the fiscal year in which 
        the amount was received, notwithstanding the fact that 
        the default occurred in a prior fiscal year.
          (3) Borrower eligibility.--Any borrower whose loan is 
        sold or assigned under paragraph (1)(A) shall not be 
        precluded by section 484 from receiving additional 
        loans or grants under this title (for which he or she 
        is otherwise eligible) on the basis of defaulting on 
        the loan prior to such loan sale or assignment.
          (4) Applicability of general loan conditions.--A loan 
        that is sold or assigned under paragraph (1) shall, so 
        long as the borrower continues to make scheduled 
        repayments thereon, be subject to the same terms and 
        conditions and qualify for the same benefits and 
        privileges as other loans made under this part.
          (5) Limitation.--A borrower may obtain the benefits 
        available under this subsection with respect to 
        rehabilitating a loan (whether by loan sale or 
        assignment) only [one time] two times per loan.
  (b) Satisfactory Repayment Arrangements To Renew 
Eligibility.--Each guaranty agency shall establish a program 
which allows a borrower with a defaulted loan or loans to renew 
eligibility for all title IV student financial assistance 
(regardless of whether the defaulted loan has been sold to an 
eligible lender or assigned to the Secretary) upon the 
borrower's payment of 6 consecutive monthly payments. The 
guaranty agency shall not demand from a borrower as a monthly 
payment amount under this subsection more than is reasonable 
and affordable based upon the borrower's total financial 
circumstances. A borrower may only obtain the benefit of this 
subsection with respect to renewed eligibility once.
  (c) Financial and Economic Literacy.--Each program described 
in subsection (b) shall include making available financial and 
economic education materials for a borrower who has 
rehabilitated a loan.

           *       *       *       *       *       *       *


SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.

  (a) Statement of Purpose.--It is the purpose of this section 
to encourage individuals to enter and continue in the teaching 
profession.
  (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) in a school or location [that qualifies 
                under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who 
                teach in such schools or locations] described 
                in section 420N(b)(1)(B); and
                  (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
          (2) is not in default on a loan for which the 
        borrower seeks forgiveness.
  (c) Qualified Loans Amount.--
          (1) In general.--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 complete 
        school year of teaching described in subsection (b)(1). 
        No borrower may receive a reduction of loan obligations 
        under both this section and section 460.
          (2) Treatment of consolidation loans.--A loan amount 
        for a loan made under section 428C may be a qualified 
        loan amount for the purposes of this subsection only to 
        the extent that such loan amount was used to repay a 
        Federal Direct Stafford Loan, a Federal Direct 
        Unsubsidized Stafford Loan, or a loan made under 
        section 428 or 428H for a borrower who meets the 
        requirements of subsection (b), as determined in 
        accordance with regulations prescribed by the 
        Secretary.
          (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) who meets the requirements of 
                        subsection (b); and
                          (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) who meets the requirements of 
                        subsection (b);
                          (ii) whose qualifying employment for 
                        purposes of such subsection is as a 
                        special education teacher whose primary 
                        responsibility is to provide special 
                        education to children with disabilities 
                        (as those terms are defined in section 
                        602 of the Individuals with 
                        Disabilities Education Act); and
                          (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, or, in the case of a 
                        teacher who is employed by an 
                        educational service agency, as 
                        certified by the chief administrative 
                        officer of such agency, 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.
  (d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of 
this section.
  (e) Construction.--Nothing in this section shall be construed 
to authorize any refunding of any repayment of a loan.
  (f) List.--If the list of schools in which a teacher may 
perform service pursuant to subsection (b) is not available 
before May 1 of any year, the Secretary may use the list for 
the year preceding the year for which the determination is made 
to make such service determination.
  (g) Additional Eligibility Provisions.--
          (1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                  (A) meets the requirements of subsection 
                (b)(1)(A) in any year during such service; and
                  (B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be 
        eligible for loan forgiveness pursuant to subsection 
        (b).
          (2) Prevention of double benefits.--No borrower may, 
        for the same service, receive a benefit under both this 
        section and--
                  (A) section 428K;
                  (B) section 455(m); or
                  (C) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 
                et seq.).
          (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 (b)(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 shall 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 shall equal or exceed the average 
        passing score of those 5 States.
  (h) Definition.--For purposes of this section, the term 
``year'', where applied to service as a teacher, means an 
academic year as defined by the Secretary.

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

  (a) Program Authorized.--
          (1) Loan forgiveness authorized.--The Secretary shall 
        forgive, in accordance with this section, the qualified 
        loan amount described in subsection (c) of the student 
        loan obligation of a borrower who--
                  (A) is employed full-time in an area of 
                national need, as described in subsection (b); 
                and
                  (B) is not in default on a loan for which the 
                borrower seeks forgiveness.
          (2) Method of loan forgiveness.--To provide loan 
        forgiveness under paragraph (1), the Secretary is 
        authorized to carry out a program--
                  (A) through the holder of the loan, to assume 
                the obligation to repay a qualified loan amount 
                for a loan made, insured, or guaranteed under 
                this part (other than an excepted PLUS loan or 
                an excepted consolidation loan (as such terms 
                are defined in section 493C(a))); and
                  (B) to cancel a qualified loan amount for a 
                loan made under part D of this title (other 
                than an excepted PLUS loan or an excepted 
                consolidation loan).
          (3) Regulations.--The Secretary is authorized to 
        issue such regulations as may be necessary to carry out 
        this section.
  (b) Areas of National Need.--For purposes of this section, an 
individual is employed in an area of national need if the 
individual meets the requirements of one of the following:
          (1) Early childhood educators.--The individual is 
        employed full-time as an early childhood educator.
          (2) Nurses.--The individual is employed full-time--
                  (A) as a nurse in a clinical setting; or
                  (B) as a member of the nursing faculty at an 
                accredited school of nursing (as those terms 
                are defined in section 801 of the Public Health 
                Service Act (42 U.S.C. 296)).
          (3) Foreign language specialists.--The individual--
                  (A) has obtained a baccalaureate or advanced 
                degree in a critical foreign language; and
                  (B) is employed full-time--
                          (i) in an elementary school or 
                        secondary school as a teacher of a 
                        critical foreign language;
                          (ii) in an agency of the United 
                        States Government in a position that 
                        regularly requires the use of such 
                        critical foreign language; or
                          (iii) in an institution of higher 
                        education as a faculty member or 
                        instructor teaching a critical foreign 
                        language.
          (4) Librarians.--The individual is employed full-time 
        as a librarian in--
                  (A) a public library that serves a geographic 
                area within which the public schools have a 
                combined average of 30 percent or more of the 
                schools' total student enrollments composed of 
                children meeting a measure of poverty under 
                section 1113(a)(5) of the Elementary and 
                Secondary Education Act of 1965; or
                  (B) a school [that qualifies under section 
                465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such a school] 
                described in section 420N(b)(1)(B).
          (5) Highly qualified teachers serving students who 
        are limited english proficient, low-income communities, 
        and underrepresented populations.--The individual--
                  (A) is highly qualified, as such term is 
                defined in section 9101 of the Elementary and 
                Secondary Education Act of 1965; and
                  (B) is employed full-time--
                          (i) as a teacher educating students 
                        who are limited English proficient;
                          (ii) as a teacher in a school [that 
                        qualifies under section 465(a)(2)(A) 
                        for loan cancellation for Perkins loan 
                        recipients who teach in such a school] 
                        described in section 420N(b)(1)(B);
                          (iii) as a teacher and is an 
                        individual from an underrepresented 
                        population in the teaching profession, 
                        as determined by the Secretary; or
                          (iv) as a teacher in an educational 
                        service agency, as such term is defined 
                        in section 8101 of the Elementary and 
                        Secondary Education Act of 1965.
          (6) Child welfare workers.--The individual--
                  (A) has obtained a degree in social work or a 
                related field with a focus on serving children 
                and families; and
                  (B) is employed full-time in public or 
                private child welfare services.
          (7) Speech-language pathologists and audiologists.--
        The individual--
                  (A) is employed full-time as a speech-
                language pathologist or audiologist in an 
                eligible preschool program or a school [that 
                qualifies under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who 
                teach in such a school] described in section 
                420N(b)(1)(B); and
                  (B) has, at a minimum, a graduate degree in 
                speech-language pathology, audiology, or 
                communication sciences and disorders.
          (8) School counselors.--The individual--
                  (A) is employed full-time as a school 
                counselor who has documented competence in 
                counseling children and adolescents in a school 
                setting and who--
                          (i) is licensed by the State or 
                        certified by an independent 
                        professional regulatory authority;
                          (ii) in the absence of such State 
                        licensure or certification, possesses 
                        national certification in school 
                        counseling or a specialty of counseling 
                        granted by an independent professional 
                        organization; or
                          (iii) holds a minimum of a master's 
                        degree in school counseling from a 
                        program accredited by the Council for 
                        Accreditation of Counseling and Related 
                        Educational Programs or the equivalent; 
                        and
                  (B) is so employed in a school [that 
                qualifies under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who 
                teach in such a school] described in section 
                420N(b)(1)(B).
          (9) Public sector employees.--The individual is 
        employed full-time in--
                  (A) public safety (including as a first 
                responder, firefighter, police officer, or 
                other law enforcement or public safety 
                officer);
                  (B) emergency management (including as an 
                emergency medical technician);
                  (C) public health (including full-time 
                professionals engaged in health care 
                practitioner occupations and health care 
                support occupations, as such terms are defined 
                by the Bureau of Labor Statistics); or
                  (D) public interest legal services (including 
                prosecution, public defense, or legal advocacy 
                in low-income communities at a nonprofit 
                organization).
          (10) Nutrition professionals.--The individual--
                  (A) is a licensed, certified, or registered 
                dietician who has completed a degree in a 
                relevant field; and
                  (B) is employed full-time as a dietician with 
                an agency of the special supplemental nutrition 
                program for women, infants, and children under 
                section 17 of the Child Nutrition Act of 1966 
                (42 U.S.C. 1786).
          (11) Medical specialists.--The individual--
                  (A) has received a degree from a medical 
                school at an institution of higher education; 
                and
                  (B) has been accepted to, or currently 
                participates in, a full-time graduate medical 
                education training program or fellowship (or 
                both) to provide health care services (as 
                recognized by the Accreditation Council for 
                Graduate Medical Education) that--
                          (i) requires more than five years of 
                        total graduate medical training; and
                          (ii) has fewer United States medical 
                        school graduate applicants than the 
                        total number of positions available in 
                        such program or fellowship.
          (12) Mental health professionals.--The individual--
                  (A) has not less than a master's degree in 
                social work, psychology, or psychiatry; and
                  (B) is employed full-time providing mental 
                health services to children, adolescents, or 
                veterans.
          (13) Dentists.--The individual--
                  (A)(i) has received a degree from an 
                accredited dental school (as accredited by the 
                Commission on Dental Accreditation);
                  (ii) has completed residency training in 
                pediatric dentistry, general dentistry, or 
                dental public health; and
                  (iii) is employed full-time as a dentist; or
                  (B) is employed full-time as a member of the 
                faculty at a program or school accredited by 
                the Commission on Dental Accreditation.
          (14) STEM employees.--The individual is employed 
        full-time in applied sciences, technology, engineering, 
        or mathematics.
          (15) Physical therapists.--The individual--
                  (A) is a physical therapist; and
                  (B) is employed full-time providing physical 
                therapy services to children, adolescents, or 
                veterans.
          (16) Superintendents, principals, and other 
        administrators.--The individual is employed full-time 
        as a school superintendent, principal, or other 
        administrator in a local educational agency, including 
        in an educational service agency, in which 30 percent 
        or more of the schools are schools [that qualify under 
        section 465(a)(2)(A) for loan cancellation for Perkins 
        loan recipients who teach in such a school] described 
        in section 420N(b)(1)(B).
          (17) Occupational therapists.--The individual is an 
        occupational therapist and is employed full-time 
        providing occupational therapy services to children, 
        adolescents, or veterans.
          (18) Allied health professionals.--The individual is 
        employed full-time as an allied health professional--
                  (A) in a Federal, State, local, or tribal 
                public health agency; or
                  (B) in a setting where patients might require 
                health care services, including acute care 
                facilities, ambulatory care facilities, 
                personal residences and other settings located 
                in health professional shortage areas, 
                medically underserved areas, or medically 
                underserved populations, as recognized by the 
                Secretary of Health and Human Services.
  (c) Qualified Loan Amount.--
          (1) In general.--Subject to paragraph (2), for each 
        school, academic, or calendar year of full-time 
        employment in an area of national need described in 
        subsection (b) that a borrower completes on or after 
        the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall forgive not more 
        than $2,000 of the student loan obligation of the 
        borrower that is outstanding after the completion of 
        each such school, academic, or calendar year of 
        employment, respectively.
          (2) Maximum amount.--The Secretary shall not forgive 
        more than $10,000 in the aggregate for any borrower 
        under this section, and no borrower shall receive loan 
        forgiveness under this section for more than five years 
        of service.
  (d) Priority.--The Secretary shall grant loan forgiveness 
under this section on a first-come, first-served basis, and 
subject to the availability of appropriations.
  (e) Rule of Construction.--Nothing in this section shall be 
construed to authorize the refunding of any repayment of a 
loan.
  (f) Ineligibility for Double Benefits.--No borrower may, for 
the same service, receive a reduction of loan obligations under 
both this section and section 428J, 428L, 455(m), or 460.
  (g) Definitions.--In this section:
          (1) Allied health professional.--The term ``allied 
        health professional'' means an allied health 
        professional as defined in section 799B(5) of the 
        Public Heath Service Act (42 U.S.C. 295p(5)) who--
                  (A) has graduated and received an allied 
                health professions degree or certificate from 
                an institution of higher education; and
                  (B) is employed with a Federal, State, local 
                or tribal public health agency, or in a setting 
                where patients might require health care 
                services, including acute care facilities, 
                ambulatory care facilities, personal residences 
                and other settings located in health 
                professional shortage areas, medically 
                underserved areas, or medically underserved 
                populations, as recognized by the Secretary of 
                Health and Human Services.
          (2) Audiologist.--The term ``audiologist'' means an 
        individual who--
                  (A) has received, at a minimum, a graduate 
                degree in audiology from an institution of 
                higher education accredited by an agency or 
                association recognized by the Secretary 
                pursuant to section 496(a); and
                  (B)(i) provides audiology services under 
                subsection (ll)(2) of section 1861 of the 
                Social Security Act (42 U.S.C. 1395x(ll)(2)); 
                or
                  (ii) meets or exceeds the qualifications for 
                a qualified audiologist under subsection 
                (ll)(4) of such section (42 U.S.C. 
                1395x(ll)(4)).
          (3) Early childhood educator.--The term ``early 
        childhood educator'' means an individual who--
                  (A) works directly with children in an 
                eligible preschool program or eligible early 
                childhood education program in a low-income 
                community;
                  (B) is involved directly in the care, 
                development, and education of infants, 
                toddlers, or young children age five and under; 
                and
                  (C) has completed a baccalaureate or advanced 
                degree in early childhood development or early 
                childhood education, or in a field related to 
                early childhood education.
          (4) Eligible preschool program.--The term ``eligible 
        preschool program'' means a program that--
                  (A) provides for the care, development, and 
                education of infants, toddlers, or young 
                children age five and under;
                  (B) meets any applicable State or local 
                government licensing, certification, approval, 
                and registration requirements, and
                  (C) is operated by--
                          (i) a public or private school that 
                        is supported, sponsored, supervised, or 
                        administered by a local educational 
                        agency;
                          (ii) a Head Start agency serving as a 
                        grantee designated under the Head Start 
                        Act (42 U.S.C. 9831 et seq.);
                          (iii) a nonprofit or community based 
                        organization; or
                          (iv) a child care program, including 
                        a home.
          (5) Eligible early childhood education program.--The 
        term ``eligible early childhood education program'' 
        means--
                  (A) a family child care program, center-based 
                child care program, State prekindergarten 
                program, school program, or other out-of-home 
                early childhood development care program, 
                that--
                          (i) is licensed or regulated by the 
                        State; and
                          (ii) serves two or more unrelated 
                        children who are not old enough to 
                        attend kindergarten;
                  (B) a Head Start Program carried out under 
                the Head Start Act (42 U.S.C. 9831 et seq.); or
                  (C) an Early Head Start Program carried out 
                under section 645A of the Head Start Act (42 
                U.S.C. 9840a).
          (6) Low-income community.--The term ``low-income 
        community'' means a school attendance area (as defined 
        in section 1113(a)(2)(A) of the Elementary and 
        Secondary Education Act of 1965)--
                  (A) in which 70 percent of households earn 
                less than 85 percent of the State median 
                household income; or
                  (B) that includes a school [that qualifies 
                under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who 
                teach in such a school] described in section 
                420N(b)(1)(B).
          (7) Nurse.--The term ``nurse'' means a nurse who 
        meets all of the following:
                  (A) The nurse graduated from--
                          (i) an accredited school of nursing 
                        (as those terms are defined in section 
                        801 of the Public Health Service Act 
                        (42 U.S.C. 296));
                          (ii) a nursing center; or
                          (iii) an academic health center that 
                        provides nurse training.
                  (B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in 
                which the nurse practices in a clinical 
                setting.
                  (C) The nurse holds one or more of the 
                following:
                          (i) A graduate degree in nursing, or 
                        an equivalent degree.
                          (ii) A nursing degree from a 
                        collegiate school of nursing (as 
                        defined in section 801 of the Public 
                        Health Service Act (42 U.S.C. 296)).
                          (iii) A nursing degree from an 
                        associate degree school of nursing (as 
                        defined in such section).
                          (iv) A nursing degree from a diploma 
                        school of nursing (as defined in such 
                        section).
          (8) Occupational therapist.--The term ``occupational 
        therapist'' means an individual who--
                  (A) has received, at a minimum, a 
                baccalaureate degree in occupational therapy 
                from an institution of higher education 
                accredited by an agency or association 
                recognized by the Secretary pursuant to section 
                496(a); and
                  (B)(i) provides occupational therapy services 
                under section 1861(g) of the Social Security 
                Act (42 U.S.C. 1395x(g)); or
                  (ii) meets or exceeds the qualifications for 
                a qualified occupational therapist, as 
                determined by State law.
          (9) Physical therapist.--The term ``physical 
        therapist'' means an individual who--
                  (A) has received, at a minimum, a graduate 
                degree in physical therapy from an institution 
                of higher education accredited by an agency or 
                association recognized by the Secretary 
                pursuant to section 496(a); and
                  (B)(i) provides physical therapy services 
                under section 1861(p) of the Social Security 
                Act (42 U.S.C. 1395x(p)); or
                  (ii) meets or exceeds the qualifications for 
                a qualified physical therapist, as determined 
                by State law.
          (10) Speech-language pathologist.--The term ``speech-
        language pathologist'' means a speech-language 
        pathologist who--
                  (A) has received, at a minimum, a graduate 
                degree in speech-language pathology or 
                communication sciences and disorders from an 
                institution of higher education accredited by 
                an agency or association recognized by the 
                Secretary pursuant to section 496(a); and
                  (B) provides speech-language pathology 
                services under section 1861(ll)(1) of the 
                Social Security Act (42 U.S.C. 1395x(ll)(1)), 
                or meets or exceeds the qualifications for a 
                qualified speech-language pathologist under 
                subsection (ll)(4) of such section (42 U.S.C. 
                1395x(ll)(4)).
  (h) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for fiscal year 2009 and each of the five succeeding 
fiscal years to provide loan forgiveness in accordance with 
this section.

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

  (a) Purpose.--The purpose of this section is to encourage 
qualified individuals to enter and continue employment as civil 
legal assistance attorneys.
  (b) Definitions.--In this section:
          (1) Civil legal assistance attorney.--The term 
        ``civil legal assistance attorney'' means an attorney 
        who--
                  (A) is a full-time employee of--
                          (i) a nonprofit organization that 
                        provides legal assistance with respect 
                        to civil matters to low-income 
                        individuals without a fee; or
                          (ii) a protection and advocacy system 
                        or client assistance program that 
                        provides legal assistance with respect 
                        to civil matters and receives funding 
                        under--
                                  (I) subtitle C of title I of 
                                the Developmental Disabilities 
                                Assistance and Bill of Rights 
                                Act of 2000 (42 U.S.C. 15041 et 
                                seq.);
                                  (II) section 112 or 509 of 
                                the Rehabilitation Act of 1973 
                                (29 U.S.C. 732, 794e);
                                  (III) part A of title I of 
                                the Protection and Advocacy for 
                                Individuals with Mental Illness 
                                Act (42 U.S.C. 10801 et seq.);
                                  (IV) section 5 of the 
                                Assistive Technology Act of 
                                1998 (29 U.S.C. 3004);
                                  (V) section 1150 of the 
                                Social Security Act (42 U.S.C. 
                                1320b-21);
                                  (VI) section 1253 of the 
                                Public Health Service Act (42 
                                U.S.C. 300d-53); or
                                  (VII) section 291 of the Help 
                                America Vote Act of 2002 (42 
                                U.S.C. 15461);
                  (B) as such employee, provides civil legal 
                assistance as described in subparagraph (A) on 
                a full-time basis; and
                  (C) is continually licensed to practice law.
          (2) Student loan.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the term ``student loan'' 
                means--
                          (i) subject to clause (ii), a loan 
                        made, insured, or guaranteed under this 
                        part, part D, or part E, as in effect 
                        on the day before the date of enactment 
                        of the PROSPER Act and pursuant to 
                        section 461(a) of such Act; and
                          (ii) a loan made under section 428C 
                        or 455(g), to the extent that such loan 
                        was used to repay--
                                  (I) a Federal Direct Stafford 
                                Loan, a Federal Direct 
                                Unsubsidized Stafford Loan, or 
                                a Federal Direct PLUS Loan;
                                  (II) a loan made under 
                                section 428, 428B, or 428H; or
                                  (III) a loan made under part 
                                E, as in effect on the day 
                                before the date of enactment of 
                                the PROSPER Act and pursuant to 
                                section 461(a) of such Act.
                  (B) Exclusion of parent plus loans.--The term 
                ``student loan'' does not include any of the 
                following loans:
                          (i) A loan made to the parents of a 
                        dependent student under section 428B.
                          (ii) A Federal Direct PLUS Loan made 
                        to the parents of a dependent student.
                          (iii) A loan made under section 428C 
                        or 455(g), to the extent that such loan 
                        was used to repay--
                                  (I) a loan made to the 
                                parents of a dependent student 
                                under section 428B; or
                                  (II) a Federal Direct PLUS 
                                Loan made to the parents of a 
                                dependent student.
  (c) Program Authorized.--From amounts appropriated under 
subsection (i) for a fiscal year, the Secretary shall carry out 
a program of assuming the obligation to repay a student loan, 
by direct payments on behalf of a borrower to the holder of 
such loan, in accordance with subsection (d), for any borrower 
who--
          (1) is employed as a civil legal assistance attorney; 
        and
          (2) is not in default on a loan for which the 
        borrower seeks repayment.
  (d) Terms of Agreement.--
          (1) In general.--To be eligible to receive repayment 
        benefits under subsection (c), a borrower shall enter 
        into a written agreement with the Secretary that 
        specifies that--
                  (A) the borrower will remain employed as a 
                civil legal assistance attorney for a required 
                period of service of not less than three years, 
                unless involuntarily separated from that 
                employment;
                  (B) if the borrower is involuntarily 
                separated from employment on account of 
                misconduct, or voluntarily separates from 
                employment, before the end of the period 
                specified in the agreement, the borrower will 
                repay the Secretary the amount of any benefits 
                received by such employee under this agreement;
                  (C) if the borrower is required to repay an 
                amount to the Secretary under subparagraph (B) 
                and fails to repay such amount, a sum equal to 
                that amount shall be recoverable by the Federal 
                Government from the employee by such methods as 
                are provided by law for the recovery of amounts 
                owed to the Federal Government;
                  (D) the Secretary may waive, in whole or in 
                part, a right of recovery under this subsection 
                if it is shown that recovery would be contrary 
                to the public interest; and
                  (E) the Secretary shall make student loan 
                payments under this section for the period of 
                the agreement, subject to the availability of 
                appropriations.
          (2) Repayments.--
                  (A) In general.--Any amount repaid by, or 
                recovered from, an individual under this 
                subsection shall be credited to the 
                appropriation account from which the amount 
                involved was originally paid.
                  (B) Merger.--Any amount credited under 
                subparagraph (A) shall be merged with other 
                sums in such account and shall be available for 
                the same purposes and period, and subject to 
                the same limitations, if any, as the sums with 
                which the amount was merged.
          (3) Limitations.--
                  (A) Student loan payment amount.--Student 
                loan repayments made by the Secretary under 
                this section shall be made subject to such 
                terms, limitations, or conditions as may be 
                mutually agreed upon by the borrower and the 
                Secretary in an agreement under paragraph (1), 
                except that the amount paid by the Secretary 
                under this section shall not exceed--
                          (i) $6,000 for any borrower in any 
                        calendar year; or
                          (ii) an aggregate total of $40,000 in 
                        the case of any borrower.
                  (B) Beginning of payments.--Nothing in this 
                section shall authorize the Secretary to pay 
                any amount to reimburse a borrower for any 
                repayments made by such borrower prior to the 
                date on which the Secretary entered into an 
                agreement with the borrower under this 
                subsection.
  (e) Additional Agreements.--
          (1) In general.--On completion of the required period 
        of service under an agreement under subsection (d), the 
        borrower and the Secretary may, subject to paragraph 
        (2), enter into an additional agreement in accordance 
        with subsection (d).
          (2) Term.--An agreement entered into under paragraph 
        (1) may require the borrower to remain employed as a 
        civil legal assistance attorney for less than three 
        years.
  (f) Award Basis; Priority.--
          (1) Award basis.--Subject to paragraph (2), the 
        Secretary shall provide repayment benefits under this 
        section on a first-come, first-served basis, and 
        subject to the availability of appropriations.
          (2) Priority.--The Secretary shall give priority in 
        providing repayment benefits under this section in any 
        fiscal year to a borrower who--
                  (A) has practiced law for five years or less 
                and, for not less than 90 percent of the time 
                in such practice, has served as a civil legal 
                assistance attorney;
                  (B) received repayment benefits under this 
                section during the preceding fiscal year; and
                  (C) has completed less than three years of 
                the first required period of service specified 
                for the borrower in an agreement entered into 
                under subsection (d).
  (g) Ineligibility for Double Benefits.--No borrower may, for 
the same service, receive a reduction of loan obligations under 
both this section and section 428K or 455(m).
  (h) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.
  (i) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section $10,000,000 for 
fiscal year 2009 and such sums as may be necessary for each of 
the five succeeding fiscal years.

           *       *       *       *       *       *       *


SEC. 430. DEFAULT OF STUDENT UNDER FEDERAL LOAN INSURANCE PROGRAM.

  (a) Notice to Secretary and Payment of Loss.--Upon default by 
the student borrower on any loan covered by Federal loan 
insurance pursuant to this part, and prior to the commencement 
of suit or other enforcement proceedings upon security for that 
loan, the insurance beneficiary shall promptly notify the 
Secretary, and the Secretary shall if requested (at that time 
or after further collection efforts) by the beneficiary, or may 
on the Secretary's own motion, if the insurance is still in 
effect, pay to the beneficiary the amount of the loss sustained 
by the insured upon that loan as soon as that amount has been 
determined. The ``amount of the loss'' on any loan shall, for 
the purposes of this subsection and subsection (b), be deemed 
to be an amount equal to the unpaid balance of the principal 
amount and accrued interest, including interest accruing from 
the date of submission of a valid default claim (as determined 
by the Secretary) to the date on which payment is authorized by 
the Secretary, reduced to the extent required by section 
425(b). Such beneficiary shall be required to meet the 
standards of due diligence in the collection of the loan and 
shall be required to 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). The Secretary shall make the determination 
required to carry out the provisions of this section not later 
than 90 days after the notification by the insurance 
beneficiary and shall make payment in full on the amount of the 
beneficiary's loss pending completion of the due diligence 
investigation.
  (b) Effect of Payment of Loss.--Upon payment of the amount of 
the loss pursuant to subsection (a), the United States shall be 
subrogated for all of the rights of the holder of the 
obligation upon the insured loan and shall be entitled to an 
assignment of the note or other evidence of the insured loan by 
the insurance beneficiary. If the net recovery made by the 
Secretary on a loan after deduction of the cost of that 
recovery (including reasonable administrative costs and 
collection costs, to the extent set forth in regulations issued 
by the Secretary) exceeds the amount of the loss, the excess 
shall be paid over to the insured. The Secretary may, in 
attempting to make recovery on such loans, contract with 
private business concerns, State student loan insurance 
agencies, or State guaranty agencies, for payment for services 
rendered by such concerns or agencies in assisting the 
Secretary in making such recovery. Any contract under this 
subsection entered into by the Secretary shall provide that 
attempts to make recovery on such loans shall be fair and 
reasonable, and do not involve harassment, intimidation, false 
or misleading representations, or unnecessary communications 
concerning the existence of any such loan to persons other than 
the student borrower.
  (c) Forbearance Not Precluded.--Nothing in this section or in 
this part shall be construed to preclude any forbearance for 
the benefit of the student borrower which may be agreed upon by 
the parties to the insured loan and approved by the Secretary, 
or to preclude forbearance by the Secretary in the enforcement 
of the insured obligation after payment on that insurance. Any 
forbearance which is approved by the Secretary under this 
subsection with respect to the repayment of a loan, including a 
forbearance during default, shall not be considered as 
indicating that a holder of a federally insured loan has failed 
to exercise reasonable care and due diligence in the collection 
of the loan.
  (d) Care and Diligence Required of Holders.--Nothing in this 
section or in this part shall be construed to excuse the holder 
of a federally insured loan from exercising reasonable care and 
diligence in the making and collection of loans under the 
provisions of this part. If the Secretary, after a reasonable 
notice and opportunity for hearing to an eligible lender, finds 
that it has substantially failed to exercise such care and 
diligence or to make the reports and statements required under 
section 428(a)(4) and section 429(a)(3), or to pay the required 
Federal loan insurance premiums, the Secretary shall disqualify 
that lender for further Federal insurance on loans granted 
pursuant to this part until the Secretary is satisfied that its 
failure has ceased and finds that there is reasonable assurance 
that the lender will in the future exercise necessary care and 
diligence or comply with such requirements, as the case may be.
  (e) Default Rate of Lenders, Holders, and Guaranty 
Agencies.--
          (1) In general.--The Secretary shall annually publish 
        a list indicating the cohort default rate (determined 
        in accordance with section 435(m)) for each originating 
        lender, subsequent holder, and guaranty agency 
        participating in the program assisted under this part 
        and an average cohort default rate for all institutions 
        of higher education within each State.
          (2) Regulations.--The Secretary shall prescribe 
        regulations designed to prevent an institution from 
        evading the application to that institution of a cohort 
        default rate through the use of such measures as 
        branching, consolidation, change of ownership or 
        control, or any similar device.
          (3) Rate establishment and correction.--The Secretary 
        shall establish a cohort default rate for lenders, 
        holders, and guaranty agencies (determined consistent 
        with section 435(m)), except that the rate for lenders, 
        holders, and guaranty agencies shall not reflect any 
        loans issued in accordance with section 428(j).The 
        Secretary shall allow institutions, lenders, holders, 
        and guaranty agencies the opportunity to correct such 
        cohort default rate information.
          (4) Sunset.--The Secretary shall not be subject to 
        the requirements of this subsection after the 
        transition period described in section 481B(e)(3).

           *       *       *       *       *       *       *


SEC. 433. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

  (a) Required Disclosure Before Disbursement.--Each eligible 
lender, at or prior to the time such lender disburses a loan 
that is insured or guaranteed under this part (other than a 
loan made under section 428C), shall provide thorough and 
accurate loan information on such loan to the borrower in 
simple and understandable terms. [Any disclosure required by 
this subsection may be made by an eligible lender by written or 
electronic means, including as part of the application material 
provided to the borrower, as part of the promissory note 
evidencing the loan, or on a separate written form provided to 
the borrower.] Any disclosure required by this subsection shall 
be made on the Plain Language Disclosure Form developed by the 
Secretary under section 455(p). Each lender shall provide to 
each borrower a telephone number, and may provide an electronic 
address, through which additional loan information can be 
obtained. The disclosure shall include--
          (1) a statement prominently and clearly displayed and 
        in bold print that the borrower is receiving a loan 
        that must be repaid;
          (2) the name of the eligible lender, and the address 
        to which communications and payments should be sent;
          (3) the principal amount of the loan;
          (4) the amount of any charges, such as [the 
        origination fee and] finance charges, the origination 
        fee, and Federal default fee, and whether those fees 
        will be--
                  (A) collected by the lender at or prior to 
                the disbursal of the loan;
                  (B) deducted from the proceeds of the loan;
                  (C) paid separately by the borrower; or
                  (D) paid by the lender;
          (5) the stated interest rate on the loan;
          (6) the annual percentage rate of the loan, as 
        calculated using the standard 10-year repayment term, 
        and how interest accrues and is capitalized during 
        periods when the interest is not paid by the borrower;
          [(6)] (7) for loans made under section 428H or to a 
        student borrower under section 428B, an explanation--
                  (A) that the borrower has the option to pay 
                the interest that accrues on the loan while the 
                borrower is a student at an institution of 
                higher education; and
                  (B) if the borrower does not pay such 
                interest while attending an institution, when 
                and how often interest on the loan will be 
                capitalized;
          [(7)] (8) for loans made to a parent borrower on 
        behalf of a student under section 428B, an 
        explanation--
                  (A) that the parent has the option to defer 
                payment on the loan while the student is 
                enrolled on at least a half-time basis in an 
                institution of higher education;
                  (B) if the parent does not pay the interest 
                on the loan while the student is enrolled in an 
                institution, when and how often interest on the 
                loan will be capitalized; and
                  (C) that the parent may be eligible for a 
                deferment on the loan if the parent is enrolled 
                on at least a half-time basis in an institution 
                of higher education;
          [(8)] (9) the yearly and cumulative maximum amounts 
        that may be borrowed;
          [(9)] (10) a statement of the total cumulative 
        balance, including the loan being disbursed, owed by 
        the borrower to that lender, and an estimate of the 
        projected monthly payment, given such cumulative 
        balance;
          [(10)] (11) an explanation of when repayment of the 
        loan will be required and when the borrower will be 
        obligated to pay interest that accrues on the loan;
          [(11)] (12) a description of the types of repayment 
        plans that are available for the loan;
          [(12)] (13) a statement as to the minimum and maximum 
        repayment terms which the lender may impose, and the 
        minimum annual payment required by law;
          [(13)] (14) an explanation of any special options the 
        borrower may have for loan consolidation or other 
        refinancing of the loan;
          [(14)] (15) a statement that the borrower has the 
        right to prepay all or part of the loan, at any time, 
        without penalty;
          [(15)] (16) a statement summarizing circumstances in 
        which repayment of the loan or interest that accrues on 
        the loan may be deferred;
          [(16)] (17) a statement summarizing the circumstances 
        in which a borrower may obtain forbearance on the loan;
          [(17)] (18) a description of the options available 
        for forgiveness of the loan, and the requirements to 
        obtain loan forgiveness;
          [(18)] (19) a definition of default and the 
        consequences to the borrower if the borrower defaults, 
        including a statement that the default will be reported 
        to a consumer reporting agency; and
          [(19)] (20) an explanation of any cost the borrower 
        may incur during repayment or in the collection of the 
        loan, including fees that the borrower may be charged, 
        such as late payment fees and collection costs.
  (b) Required Disclosure Before Repayment.--Each eligible 
lender shall, at or prior to the start of the repayment period 
on a loan made, insured, or guaranteed under section 428, 428B, 
or 428H, disclose to the borrower by written or electronic 
means the information required under this subsection in simple 
and understandable terms. Each eligible lender shall provide to 
each borrower a telephone number, and may provide an electronic 
address, through which additional loan information can be 
obtained. The disclosure required by this subsection shall be 
made not less than 30 days nor more than 150 days before the 
first payment on the loan is due from the borrower. The 
disclosure shall include--
          (1) the name of the eligible lender or loan servicer, 
        and the address to which communications and payments 
        should be sent;
          (2) the scheduled date upon which the repayment 
        period is to begin or the deferment period under 
        section 428B(d)(1) is to end, as applicable;
          (3) the estimated balance owed by the borrower on the 
        loan or loans covered by the disclosure (including, if 
        applicable, the estimated amount of interest to be 
        capitalized) as of the scheduled date on which the 
        repayment period is to begin or the deferment period 
        under 428B(d)(1) is to end, as applicable;
          (4) the stated interest rate on the loan or loans, or 
        the combined interest rate of loans with different 
        stated interest rates;
          (5) information on loan repayment benefits offered 
        for the loan or loans, including--
                  (A) whether the lender offers any benefits 
                that are contingent on the repayment behavior 
                of the borrower, such as--
                          (i) a reduction in interest rate if 
                        the borrower repays the loan by 
                        automatic payroll or checking account 
                        deduction;
                          (ii) a reduction in interest rate if 
                        the borrower makes a specified number 
                        of on-time payments; and
                          (iii) other loan repayment benefits 
                        for which the borrower could be 
                        eligible that would reduce the amount 
                        of repayment or the length of the 
                        repayment period;
                  (B) if the lender provides a loan repayment 
                benefit--
                          (i) any limitations on such benefit;
                          (ii) explicit information on the 
                        reasons a borrower may lose eligibility 
                        for such benefit;
                          (iii) for a loan repayment benefit 
                        that reduces the borrower's interest 
                        rate--
                                  (I) examples of the impact 
                                the interest rate reduction 
                                would have on the length of the 
                                borrower's repayment period and 
                                the amount of repayment; and
                                  (II) upon the request of the 
                                borrower, the effect the 
                                reduction in interest rate 
                                would have with respect to the 
                                borrower's payoff amount and 
                                time for repayment; and
                          (iv) whether and how the borrower can 
                        regain eligibility for a benefit if a 
                        borrower loses a benefit;
          (6) a description of all the repayment plans that are 
        available to the borrower and a statement that the 
        borrower may change from one plan to another during the 
        period of repayment;
          (7) the repayment schedule for all loans covered by 
        the disclosure, including--
                  (A) the date the first installment is due; 
                and
                  (B) the number, amount, and frequency of 
                required payments, which shall be based on a 
                standard repayment plan or, in the case of a 
                borrower who has selected another repayment 
                plan, on the repayment plan selected by the 
                borrower;
          (8) an explanation of any special options the 
        borrower may have for loan consolidation or other 
        refinancing of the loan and of the availability and 
        terms of such other options;
          (9) except as provided in subsection (d)--
                  (A) the projected total of interest charges 
                which the borrower will pay on the loan or 
                loans, assuming that the borrower makes 
                payments exactly in accordance with the 
                repayment schedule; and
                  (B) if the borrower has already paid interest 
                on the loan or loans, the amount of interest 
                paid;
          (10) the nature of any fees which may accrue or be 
        charged to the borrower during the repayment period;
          (11) a statement that the borrower has the right to 
        prepay all or part of the loan or loans covered by the 
        disclosure at any time without penalty;
          (12) a description of the options by which the 
        borrower may avoid or be removed from default, 
        including any relevant fees associated with such 
        options; and
          (13) additional resources, including nonprofit 
        organizations, advocates, and counselors (including the 
        Student Loan Ombudsman of the Department) of which the 
        lender is aware, where borrowers may receive advice and 
        assistance on loan repayment.
  (c) Separate Notification.--Each eligible lender shall, at 
the time such lender notifies a borrower of approval of a loan 
which is insured or guaranteed under this part, provide the 
borrower with a separate notification which summarizes, in 
simple and understandable terms, the rights and 
responsibilities of the borrower with respect to the loan, 
including a statement of the consequences of defaulting on the 
loan and a statement that each borrower who defaults will be 
reported to a consumer reporting agency. The requirement of 
this subsection shall be in addition to the information 
required by subsection (a) of this section.
  (d) Special Disclosure Rules on PLUS Loans, and Unsubsidized 
Loans.--Loans made under sections 428B and 428H shall not be 
subject to the disclosure of projected monthly payment amounts 
required under subsection (b)(7) if the lender, in lieu of such 
disclosure, provides the borrower with sample projections of 
monthly repayment amounts, assuming different levels of 
borrowing and interest accruals resulting from capitalization 
of interest while the borrower, or the student on whose behalf 
the loan is made, is in school, in simple and understandable 
terms. Such sample projections shall disclose the cost to the 
borrower of--
          (1) capitalizing the interest; and
          (2) paying the interest as the interest accrues.
  (e) Required Disclosures During Repayment.--
          (1) Pertinent information about a loan provided on a 
        periodic basis.--Each eligible lender shall provide the 
        borrower of a loan made, insured, or guaranteed under 
        this part with a bill or statement (as applicable) that 
        corresponds to each payment installment time period in 
        which a payment is due and that includes, in simple and 
        understandable terms--
                  (A) the original principal amount of the 
                borrower's loan;
                  (B) the borrower's current balance, as of the 
                time of the bill or statement, as applicable;
                  (C) the interest rate on such loan;
                  (D) the total amount the borrower has paid in 
                interest on the loan;
                  (E) the aggregate amount the borrower has 
                paid for the loan, including the amount the 
                borrower has paid in interest, the amount the 
                borrower has paid in fees, and the amount the 
                borrower has paid against the balance;
                  (F) a description of each fee the borrower 
                has been charged for the most recently 
                preceding installment time period;
                  (G) the date by which the borrower needs to 
                make a payment in order to avoid additional 
                fees and the amount of such payment and the 
                amount of such fees;
                  (H) the lender's or loan servicer's address 
                and toll-free phone number for payment and 
                billing error purposes; and
                  (I) a reminder that the borrower has the 
                option to change repayment plans, a list of the 
                names of the repayment plans available to the 
                borrower, a link to the appropriate page of the 
                Department's website to obtain a more detailed 
                description of the repayment plans, and 
                directions for the borrower to request a change 
                in repayment plan.
          (2) Information provided to a borrower having 
        difficulty making payments.--Each eligible lender shall 
        provide to a borrower who has notified the lender that 
        the borrower is having difficulty making payments on a 
        loan made, insured, or guaranteed under this part with 
        the following information in simple and understandable 
        terms:
                  (A) A description of the repayment plans 
                available to the borrower, including how the 
                borrower should request a change in repayment 
                plan.
                  (B) A description of the requirements for 
                obtaining forbearance on a loan, including 
                expected costs associated with forbearance.
                  (C) A description of the options available to 
                the borrower to avoid defaulting on the loan, 
                and any relevant fees or costs associated with 
                such options.
          (3) Required disclosures during delinquency.--Each 
        eligible lender shall provide to a borrower who is 60 
        days delinquent in making payments on a loan made, 
        insured, or guaranteed under this part with a notice, 
        in simple and understandable terms, of the following:
                  (A) The date on which the loan will default 
                if no payment is made.
                  (B) The minimum payment the borrower must 
                make to avoid default.
                  (C) A description of the options available to 
                the borrower to avoid default, and any relevant 
                fees or costs associated with such options, 
                including a description of deferment and 
                forbearance and the requirements to obtain 
                each.
                  (D) Discharge options to which the borrower 
                may be entitled.
                  (E) Additional resources, including nonprofit 
                organizations, advocates, and counselors 
                (including the Student Loan Ombudsman of the 
                Department), of which the lender is aware, 
                where the borrower can receive advice and 
                assistance on loan repayment.
  (f) Cost of Disclosure and Consequences of Nondisclosure.--
          (1) No cost to borrowers.--The information required 
        under this section shall be available without cost to 
        the borrower.
          (2) Consequences of nondisclosure.--The failure of an 
        eligible lender to provide information as required by 
        this section shall not--
                  (A) relieve a borrower of the obligation to 
                repay a loan in accordance with the loan's 
                terms; or
                  (B) provide a basis for a claim for civil 
                damages.
          (3) Rule of construction.--Nothing in this section 
        shall be construed as subjecting the lender to the 
        Truth in Lending Act with regard to loans made under 
        this part.
          (4) Actions by the secretary.--The Secretary may 
        limit, suspend, or terminate the continued 
        participation of an eligible lender in making loans 
        under this part for failure by that lender to comply 
        with this section.

           *       *       *       *       *       *       *


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] 
        sections 101 and 102, 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.
          (2) Ineligibility based on high default rates.--(A) 
        An institution whose cohort default rate is equal to or 
        greater than the threshold percentage specified in 
        subparagraph (B) for each of the three most recent 
        fiscal years for which data are available shall not be 
        eligible to participate in a program under this part 
        for the fiscal year for which the determination is made 
        and for the two succeeding fiscal years, unless, within 
        30 days of receiving notification from the Secretary of 
        the loss of eligibility under this paragraph, the 
        institution appeals the loss of its eligibility to the 
        Secretary. The Secretary shall issue a decision on any 
        such appeal within 45 days after its submission. Such 
        decision may permit the institution to continue to 
        participate in a program under this part if--
                  (i) the institution demonstrates to the 
                satisfaction of the Secretary that the 
                Secretary's calculation of its cohort default 
                rate is not accurate, and that recalculation 
                would reduce its cohort default rate for any of 
                the three fiscal years below the threshold 
                percentage specified in subparagraph (B);
                  (ii) there are exceptional mitigating 
                circumstances within the meaning of paragraph 
                (5); or
                  (iii) there are, in the judgment of the 
                Secretary, other exceptional mitigating 
                circumstances that would make the application 
                of this paragraph inequitable.
        If an institution continues to participate in a program 
        under this part, and the institution's appeal of the 
        loss of eligibility is unsuccessful, the institution 
        shall be required to pay to the Secretary an amount 
        equal to the amount of interest, special allowance, 
        reinsurance, and any related payments made by the 
        Secretary (or which the Secretary is obligated to make) 
        with respect to loans made under this part to students 
        attending, or planning to attend, that institution 
        during the pendency of such appeal. During such appeal, 
        the Secretary may permit the institution to continue to 
        participate in a program under this part.
          (B) For purposes of determinations under subparagraph 
        (A), the threshold percentage is--
                  (i) 35 percent for fiscal year 1991 and 1992;
                  (ii) 30 percent for fiscal year 1993;
                  (iii) 25 percent for fiscal year 1994 through 
                fiscal year 2011; and
                  (iv) 30 percent for fiscal year 2012 and any 
                succeeding fiscal year.
          (C) Until July 1, 1999, this paragraph shall not 
        apply to any institution that is--
                  (i) a part B institution within the meaning 
                of section 322(2) of this Act;
                  (ii) a tribally controlled college or 
                university, as defined in section 2(a)(4) of 
                the Tribally Controlled Colleges and 
                Universities Assistance Act of 1978; or
                  (iii) a Navajo Community College under the 
                Navajo Community College Act.
  (D) Notwithstanding the first sentence of subparagraph (A), 
the Secretary shall restore the eligibility to participate in a 
program under subpart 1 of part A, part B, or part D of an 
institution that did not appeal its loss of eligibility within 
30 days of receiving notification if the Secretary determines, 
on a case-by-case basis, that the institution's failure to 
appeal was substantially justified under the circumstances, and 
that--
          (i) the institution made a timely request that the 
        appropriate guaranty agency correct errors in the draft 
        data used to calculate the institution's cohort default 
        rate;
          (ii) the guaranty agency did not correct the 
        erroneous data in a timely fashion; and
          (iii) the institution would have been eligible if the 
        erroneous data had been corrected by the guaranty 
        agency.
          (3) Appeals for regulatory relief.--An institution 
        whose cohort default rate, calculated in accordance 
        with subsection (m), is equal to or greater than the 
        threshold percentage specified in paragraph (2)(B)(iv) 
        for any two consecutive fiscal years may, not later 
        than 30 days after the date the institution receives 
        notification from the Secretary, file an appeal 
        demonstrating exceptional mitigating circumstances, as 
        defined in paragraph (5). The Secretary shall issue a 
        decision on any such appeal not later than 45 days 
        after the date of submission of the appeal. If the 
        Secretary determines that the institution demonstrates 
        exceptional mitigating circumstances, the Secretary may 
        not subject the institution to provisional 
        certification based solely on the institution's cohort 
        default rate.
          (4) 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;
                  (B) is subject to loss of eligibility for the 
                Federal Supplemental Loans for Students 
                pursuant to section 428A(a)(2); or
                  (C) 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).
          (5) Definition of mitigating circumstances.--(A) For 
        purposes of this subsection, an institution of higher 
        education shall be treated as having exceptional 
        mitigating circumstances that make application of 
        paragraph (2) inequitable, and that provide for 
        regulatory relief under paragraph (3), if such 
        institution, in the opinion of an independent auditor, 
        meets the following criteria:
                  (i) For a 12-month period that ended during 
                the 6 months immediately preceding the fiscal 
                year for which the cohort of borrowers used to 
                calculate the institution's cohort default rate 
                is determined, at least two-thirds of the 
                students enrolled on at least a half-time basis 
                at the institution--
                          (I) are eligible to receive a Federal 
                        Pell Grant award that is at least equal 
                        to one-half the Federal Pell Grant 
                        amount, determined under section 
                        401(b)(2)(A), for which a student would 
                        be eligible based on the student's 
                        enrollment status; or
                          (II) have an adjusted gross income 
                        that when added with the adjusted gross 
                        income of the student's parents (unless 
                        the student is an independent student), 
                        of less than the poverty level, as 
                        determined by the Department of Health 
                        and Human Services.
                  (ii) In the case of an institution of higher 
                education that offers an associate, 
                baccalaureate, graduate or professional degree, 
                70 percent or more of the institution's regular 
                students who were initially enrolled on a full-
                time basis and were scheduled to complete their 
                programs during the same 12-month period 
                described in clause (i)--
                          (I) completed the educational 
                        programs in which the students were 
                        enrolled;
                          (II) transferred from the institution 
                        to a higher level educational program;
                          (III) at the end of the 12-month 
                        period, remained enrolled and making 
                        satisfactory progress toward completion 
                        of the student's educational programs; 
                        or
                          (IV) entered active duty in the Armed 
                        Forces of the United States.
                  (iii)(I) In the case of an institution of 
                higher education that does not award a degree 
                described in clause (ii), had a placement rate 
                of 44 percent or more with respect to the 
                institution's former regular students who--
                          (aa) remained in the program beyond 
                        the point the students would have 
                        received a 100 percent tuition refund 
                        from the institution;
                          (bb) were initially enrolled on at 
                        least a half-time basis; and
                          (cc) were originally scheduled, at 
                        the time of enrollment, to complete 
                        their educational programs during the 
                        same 12-month period described in 
                        clause (i).
                  (II) The placement rate shall not include 
                students who are still enrolled and making 
                satisfactory progress in the educational 
                programs in which the students were originally 
                enrolled on the date following 12 months after 
                the date of the student's last date of 
                attendance at the institution.
                  (III) The placement rate is calculated by 
                determining the percentage of all those former 
                regular students who--
                          (aa) are employed, in an occupation 
                        for which the institution provided 
                        training, on the date following 12 
                        months after the date of their last day 
                        of attendance at the institution;
                          (bb) were employed, in an occupation 
                        for which the institution provided 
                        training, for at least 13 weeks before 
                        the date following 12 months after the 
                        date of their last day of attendance at 
                        the institution; or
                          (cc) entered active duty in the Armed 
                        Forces of the United States.
                  (IV) The placement rate shall not include as 
                placements a student or former student for whom 
                the institution is the employer.
          (B) For purposes of determining a rate of completion 
        and a placement rate under this paragraph, a student is 
        originally scheduled, at the time of enrollment, to 
        complete the educational program on the date when the 
        student will have been enrolled in the program for the 
        amount of time normally required to complete the 
        program. The amount of time normally required to 
        complete the program for a student who is initially 
        enrolled full-time is the period of time specified in 
        the institution's enrollment contract, catalog, or 
        other materials, for completion of the program by a 
        full-time student. For a student who is initially 
        enrolled less than full-time, the period is the amount 
        of time it would take the student to complete the 
        program if the student remained enrolled at that level 
        of enrollment throughout the program.
          (6) Reduction of default rates at certain minority 
        institutions.--
                  (A) Beneficiaries of exception required to 
                establish management plan.--After July 1, 1999, 
                any institution that has a cohort default rate 
                that equals or exceeds 25 percent for each of 
                the three most recent fiscal years for which 
                data are available and that relies on the 
                exception in subparagraph (B) to continue to be 
                an eligible institution shall--
                          (i) submit to the Secretary a default 
                        management plan which the Secretary, in 
                        the Secretary's discretion, after 
                        consideration of the institution's 
                        history, resources, dollars in default, 
                        and targets for default reduction, 
                        determines is acceptable and provides 
                        reasonable assurance that the 
                        institution will, by July 1, 2004, have 
                        a cohort default rate that is less than 
                        25 percent;
                          (ii) engage an independent third 
                        party (which may be paid with funds 
                        received under section 317 or part B of 
                        title III) to provide technical 
                        assistance in implementing such default 
                        management plan; and
                          (iii) provide to the Secretary, on an 
                        annual basis or at such other intervals 
                        as the Secretary may require, evidence 
                        of cohort default rate improvement and 
                        successful implementation of such 
                        default management plan.
                  (B) Discretionary eligibility conditioned on 
                improvement.--Notwithstanding the expiration of 
                the exception in paragraph (2)(C), the 
                Secretary may, in the Secretary's discretion, 
                continue to treat an institution described in 
                subparagraph (A) of this paragraph as an 
                eligible institution for each of the 1-year 
                periods beginning on July 1 of 1999 through 
                2003, only if the institution submits by the 
                beginning of such period evidence satisfactory 
                to the Secretary that--
                          (i) such institution has complied and 
                        is continuing to comply with the 
                        requirements of subparagraph (A); and
                          (ii) such institution has made 
                        substantial improvement, during each of 
                        the preceding 1-year periods, in the 
                        institution's cohort default rate.
          (7) Default prevention and assessment of eligibility 
        based on high default rates.--
                  (A) First year.--
                          (i) In general.--An institution whose 
                        cohort default rate is equal to or 
                        greater than the threshold percentage 
                        specified in paragraph (2)(B)(iv) in 
                        any fiscal year shall establish a 
                        default prevention task force to 
                        prepare a plan to--
                                  (I) identify the factors 
                                causing the institution's 
                                cohort default rate to exceed 
                                such threshold;
                                  (II) establish measurable 
                                objectives and the steps to be 
                                taken to improve the 
                                institution's cohort default 
                                rate; and
                                  (III) specify actions that 
                                the institution can take to 
                                improve student loan repayment, 
                                including appropriate 
                                counseling regarding loan 
                                repayment options.
                          (ii) Technical assistance.--Each 
                        institution subject to this 
                        subparagraph shall submit the plan 
                        under clause (i) to the Secretary, who 
                        shall review the plan and offer 
                        technical assistance to the institution 
                        to promote improved student loan 
                        repayment.
                  (B) Second consecutive year.--
                          (i) In general.--An institution whose 
                        cohort default rate is equal to or 
                        greater than the threshold percentage 
                        specified in paragraph (2)(B)(iv) for 
                        two consecutive fiscal years, shall 
                        require the institution's default 
                        prevention task force established under 
                        subparagraph (A) to review and revise 
                        the plan required under such 
                        subparagraph, and shall submit such 
                        revised plan to the Secretary.
                          (ii) Review by the secretary.--The 
                        Secretary shall review each revised 
                        plan submitted in accordance with this 
                        subparagraph, and may direct that such 
                        plan be amended to include actions, 
                        with measurable objectives, that the 
                        Secretary determines, based on 
                        available data and analyses of student 
                        loan defaults, will promote student 
                        loan repayment.
          (8) Participation rate index.--
                  (A) In general.--An institution that 
                demonstrates to the Secretary that the 
                institution's participation rate index is equal 
                to or less than 0.0375 for any of the 3 most 
                recent fiscal years for which data is available 
                shall not be subject to paragraph (2). The 
                participation rate index shall be determined by 
                multiplying the institution's cohort default 
                rate for loans under part B or D, or weighted 
                average cohort default rate for loans under 
                parts B and D, by the percentage of the 
                institution's regular students, enrolled on at 
                least a half-time basis, who received a loan 
                made under part B or D for a 12-month period 
                ending during the 6 months immediately 
                preceding the fiscal year for which the cohort 
                of borrowers used to calculate the 
                institution's cohort default rate is 
                determined.
                  (B) Data.--An institution shall provide the 
                Secretary with sufficient data to determine the 
                institution's participation rate index within 
                30 days after receiving an initial notification 
                of the institution's draft cohort default rate.
                  (C) Notification.--Prior to publication of a 
                final cohort default rate for an institution 
                that provides the data described in 
                subparagraph (B), the Secretary shall notify 
                the institution of the institution's compliance 
                or noncompliance with subparagraph (A).
          (9) Sunset.--No institution shall be subject to 
        paragraph (2) after the transition period described in 
        section 481B(e)(3).
  (d) Eligible Lender.--
          (1) In general.--Except as provided in paragraphs (2) 
        through (6), the term ``eligible lender'' means--
                  (A) a National or State chartered bank, a 
                mutual savings bank, a savings and loan 
                association, a stock savings bank, or a credit 
                union which--
                          (i) is subject to examination and 
                        supervision by an agency of the United 
                        States or of the State in which its 
                        principal place of operation is 
                        established, and
                          (ii) does not have as its primary 
                        consumer credit function the making or 
                        holding of loans made to students under 
                        this part unless (I) it is a bank which 
                        is wholly owned by a State, or a bank 
                        which is subject to examination and 
                        supervision by an agency of the United 
                        States, makes student loans as a 
                        trustee pursuant to an express trust, 
                        operated as a lender under this part 
                        prior to January 1, 1975, and which 
                        meets the requirements of this 
                        provision prior to the enactment of the 
                        Higher Education Amendments of 1992, 
                        (II) it is a single wholly owned 
                        subsidiary of a bank holding company 
                        which does not have as its primary 
                        consumer credit function the making or 
                        holding of loans made to students under 
                        this part, (III) it is a bank (as 
                        defined in section 3(a)(1) of the 
                        Federal Deposit Insurance Act (12 
                        U.S.C. 1813(a)(1)) that is a wholly 
                        owned subsidiary of a nonprofit 
                        foundation, the foundation 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, and the bank makes loans under 
                        this part only to undergraduate 
                        students who are age 22 or younger and 
                        has a portfolio of such loans that is 
                        not more than $5,000,000, or (IV) it is 
                        a National or State chartered bank, or 
                        a credit union, with assets of less 
                        than $1,000,000,000;
                  (B) a pension fund as defined in the Employee 
                Retirement Income Security Act;
                  (C) an insurance company which is subject to 
                examination and supervision by an agency of the 
                United States or a State;
                  (D) in any State, a single agency of the 
                State or a single nonprofit private agency 
                designated by the State;
                  (E) an eligible institution which meets the 
                requirements of paragraphs (2) through (5) of 
                this subsection;
                  (F) for purposes only of purchasing and 
                holding loans made by other lenders under this 
                part, 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, or an agency of any State 
                functioning as a secondary market;
                  (G) for purposes of making loans under 
                sections 428B(d) and 428C, 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;
                  (H) for purposes of making loans under 
                sections 428(h) and 428(j), a guaranty agency;
                  (I) a Rural Rehabilitation Corporation, or 
                its successor agency, which has received 
                Federal funds under Public Law 499, Eighty-
                first Congress (64 Stat. 98 (1950));
                  (J) for purpose of making loans under section 
                428C, any nonprofit private agency functioning 
                in any State as a secondary market; and
                  (K) a consumer finance company subsidiary of 
                a national bank which, as of the date of 
                enactment of this subparagraph, through one or 
                more subsidiaries: (i) acts as a small business 
                lending company, as determined under 
                regulations of the Small Business 
                Administration under section 120.470 of title 
                13, Code of Federal Regulations (as such 
                section is in effect on the date of enactment 
                of this subparagraph); and (ii) participates in 
                the program authorized by this part pursuant to 
                subparagraph (C), provided the national bank 
                and all of the bank's direct and indirect 
                subsidiaries taken together as a whole, do not 
                have, as their primary consumer credit 
                function, the making or holding of loans made 
                to students under this part.
          (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 that 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 subsection (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;
                          (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; and
                          (ix) shall have met the requirements 
                        of subparagraphs (A) through (F) of 
                        this paragraph as in effect on the day 
                        before the date of enactment of the 
                        Higher Education Reconciliation Act of 
                        2005, and made loans under this part, 
                        on or before April 1, 2006.
                  (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.
          (3) Disqualification for high default rates.--The 
        term ``eligible lender'' does not include any eligible 
        institution in any fiscal year immediately after the 
        fiscal year in which the Secretary determines, after 
        notice and opportunity for a hearing, that for each of 
        2 consecutive years, 15 percent or more of the total 
        amount of such loans as are described in section 
        428(a)(1) made by the institution with respect to 
        students at that institution and repayable in each such 
        year, are in default, as defined in subsection (m).
          (4) Waiver of disqualification.--Whenever the 
        Secretary determines that--
                  (A) there is reasonable possibility that an 
                eligible institution may, within 1 year after a 
                determination is made under paragraph (3), 
                improve the collection of loans described in 
                section 428(a)(1), so that the application of 
                paragraph (3) would be a hardship to that 
                institution, or
                  (B) the termination of the lender's status 
                under paragraph (3) would be a hardship to the 
                present or for prospective students of the 
                eligible institution, after considering the 
                management of that institution, the ability of 
                that institution to improve the collection of 
                loans, the opportunities that institution 
                offers to economically disadvantaged students, 
                and other related factors,
        the Secretary shall waive the provisions of paragraph 
        (3) with respect to that institution. Any determination 
        required under this paragraph shall be made by the 
        Secretary prior to the termination of an eligible 
        institution as a lender under the exception of 
        paragraph (3). Whenever the Secretary grants a waiver 
        pursuant to this paragraph, the Secretary shall provide 
        technical assistance to the institution concerned in 
        order to improve the collection rate of such loans.
          (5) Disqualification for use of certain incentives.--
        The term ``eligible lender'' does not include any 
        lender that the Secretary determines, after notice and 
        opportunity for a hearing, has--
                  (A) offered, directly or indirectly, points, 
                premiums, payments (including payments for 
                referrals and for processing or finder fees), 
                prizes, stock or other securities, travel, 
                entertainment expenses, tuition payment or 
                reimbursement, the provision of information 
                technology equipment at below-market value, 
                additional financial aid funds, or other 
                inducements, to any institution of higher 
                education, any employee of an institution of 
                higher education, or any individual or entity 
                in order to secure applicants for loans under 
                this part;
                  (B) conducted unsolicited mailings, by postal 
                or electronic means, of student loan 
                application forms to students enrolled in 
                secondary schools or postsecondary 
                institutions, or to family members of such 
                students, except that applications may be 
                mailed, by postal or electronic means, to 
                students or borrowers who have previously 
                received loans under this part from such 
                lender;
                  (C) entered into any type of consulting 
                arrangement, or other contract to provide 
                services to a lender, with an employee who is 
                employed in the financial aid office of an 
                institution of higher education, or who 
                otherwise has responsibilities with respect to 
                student loans or other financial aid of the 
                institution;
                  (D) compensated an employee who is employed 
                in the financial aid office of an institution 
                of higher education, or who otherwise has 
                responsibilities with respect to student loans 
                or other financial aid of the institution, and 
                who is serving on an advisory board, 
                commission, or group established by a lender or 
                group of lenders for providing such service, 
                except that the eligible lender may reimburse 
                such employee for reasonable expenses incurred 
                in providing such service;
                  (E) performed for an institution of higher 
                education any function that such institution of 
                higher education is required to perform under 
                this title, except that a lender shall be 
                permitted to perform functions on behalf of 
                such institution in accordance with section 
                485(b) or 485(l);
                  (F) paid, on behalf of an institution of 
                higher education, another person to perform any 
                function that such institution of higher 
                education is required to perform under this 
                title, except that a lender shall be permitted 
                to perform functions on behalf of such 
                institution in accordance with section 485(b) 
                or 485(l);
                  (G) provided payments or other benefits to a 
                student at an institution of higher education 
                to act as the lender's representative to secure 
                applications under this title from individual 
                prospective borrowers, unless such student--
                          (i) is also employed by the lender 
                        for other purposes; and
                          (ii) made all appropriate disclosures 
                        regarding such employment;
                  (H) offered, directly or indirectly, loans 
                under this part as an inducement to a 
                prospective borrower to purchase a policy of 
                insurance or other product; or
                  (I) engaged in fraudulent or misleading 
                advertising.
        It shall not be a violation of this paragraph for a 
        lender to provide technical assistance to institutions 
        of higher education comparable to the kinds of 
        technical assistance provided to institutions of higher 
        education by the Department.
          (6) Rebate fee requirement.--To be an eligible lender 
        under this part, an eligible lender shall pay rebate 
        fees in accordance with section 428C(f).
          (7) Eligible lender trustees.--Notwithstanding any 
        other provision of this subsection, an eligible lender 
        may not make or hold a loan under this part as trustee 
        for an institution of higher education, or for an 
        organization affiliated with an institution of higher 
        education, unless--
                  (A) the eligible lender is serving as trustee 
                for that institution or organization as of the 
                date of enactment of the Third Higher Education 
                Extension Act of 2006 under a contract that was 
                originally entered into before the date of 
                enactment of such Act and that continues in 
                effect or is renewed after such date; and
                  (B) the institution or organization, and the 
                eligible lender, with respect to its duties as 
                trustee, each comply on and after January 1, 
                2007, with the requirements of paragraph (2), 
                except that--
                          (i) the requirements of clauses (i), 
                        (ii), (vi), and (viii) of paragraph 
                        (2)(A) shall, subject to clause (ii) of 
                        this subparagraph, only apply to the 
                        institution (including both an 
                        institution for which the lender serves 
                        as trustee and an institution 
                        affiliated with an organization for 
                        which the lender serves as trustee);
                          (ii) in the case of an organization 
                        affiliated with an institution--
                                  (I) the requirements of 
                                clauses (iii) and (v) of 
                                paragraph (2)(A) shall apply to 
                                the organization; and
                                  (II) the requirements of 
                                clause (viii) of paragraph 
                                (2)(A) shall apply to the 
                                institution or the organization 
                                (or both), if the institution 
                                or organization receives 
                                (directly or indirectly) the 
                                proceeds described in such 
                                clause;
                          (iii) the requirements of clauses 
                        (iv) and (ix) of paragraph (2)(A) shall 
                        not apply to the eligible lender, 
                        institution, or organization; and
                          (iv) the eligible lender, 
                        institution, and organization shall 
                        ensure that the loans made or held by 
                        the eligible lender as trustee for the 
                        institution or organization, as the 
                        case may be, are included in a 
                        compliance audit in accordance with 
                        clause (vii) of paragraph (2)(A).
          (8) School as lender program audit.--Each institution 
        serving as an eligible lender under paragraph (1)(E), 
        and each eligible lender serving as a trustee for an 
        institution of higher education or an organization 
        affiliated with an institution of higher education, 
        shall annually complete and submit to the Secretary a 
        compliance audit to determine whether--
                  (A) the institution or lender is using all 
                proceeds from special allowance payments and 
                interest payments from borrowers, interest 
                subsidies received from the Department, and any 
                proceeds from the sale or other disposition of 
                loans, for need-based grant programs, in 
                accordance with paragraph (2)(A)(viii);
                  (B) the institution or lender is using not 
                more than a reasonable portion of the proceeds 
                described in paragraph (2)(A)(viii) for direct 
                administrative expenses; and
                  (C) the institution or lender is ensuring 
                that the proceeds described in paragraph 
                (2)(A)(viii) are being used to supplement, and 
                not to supplant, Federal and non-Federal funds 
                that would otherwise be used for need-based 
                grant programs.
  (e) Line of Credit.--The term ``line of credit'' means an 
arrangement or agreement between the lender and the borrower 
whereby a loan is paid out by the lender to the borrower in 
annual installments, or whereby the lender agrees to make, in 
addition to the initial loan, additional loans in subsequent 
years.
  (f) Due Diligence.--The term ``due diligence'' requires the 
utilization by a lender, in the servicing and collection of 
loans insured under this part, of servicing and collection 
practices at least as extensive and forceful as those generally 
practiced by financial institutions for the collection of 
consumer loans.
  (i) Holder.--The term ``holder'' means an eligible lender who 
owns a loan.
  (j) Guaranty Agency.--The term ``guaranty agency'' means any 
State or nonprofit private institution or organization with 
which the Secretary has an agreement under section 428(b).
  (k) Insurance Beneficiary.--The term ``insurance 
beneficiary'' means the insured or its authorized 
representative assigned in accordance with section 429(d).
  (l) Default.--Except as provided in subsection (m), the term 
``default'' includes only such defaults as have existed for (1) 
270 days in the case of a loan which is repayable in monthly 
installments, or (2) 330 days in the case of a loan which is 
repayable in less frequent installments.
  (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 second fiscal year 
        following the fiscal year in which the students entered 
        repayment. 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.
          (B) In determining the number of students who default 
        before the end of such second fiscal year, the 
        Secretary shall include only loans for which the 
        Secretary or a guaranty agency has paid claims for 
        insurance. In considering appeals with respect to 
        cohort default rates pursuant to subsection (a)(3), the 
        Secretary shall exclude, from the calculation of the 
        number of students who entered repayment and from the 
        calculation of the number of students who default, any 
        loans which, due to improper servicing or collection, 
        would, as demonstrated by the evidence submitted in 
        support of the institution's timely appeal to the 
        Secretary, result in an inaccurate or incomplete 
        calculation of such cohort default rate.
          (C) For any fiscal year in which fewer than 30 of the 
        institution's current and former students enter 
        repayment, the term ``cohort default rate'' means the 
        percentage of such current and former students who 
        entered repayment on such loans (or on the portion of a 
        loan made under section 428C that is used to repay any 
        such loans) in any of the three most recent fiscal 
        years, who default before the end of the second fiscal 
        year following the year in which they entered 
        repayment.
          (2) Special rules.--(A) In the case of a student who 
        has attended and borrowed at more than one school, the 
        student (and such student's subsequent repayment or 
        default) is attributed to each school for attendance at 
        which the student received a loan that entered 
        repayment in the fiscal year.
          (B) A loan on which a payment is made by the school, 
        such school's owner, agent, contractor, employee, or 
        any other entity or individual affiliated with such 
        school, in order to avoid default by the borrower, is 
        considered as in default for purposes of this 
        subsection.
          (C) Any loan which has been rehabilitated before the 
        end of the second fiscal year following the year in 
        which the loan entered repayment is not considered as 
        in default for purposes of this subsection. The 
        Secretary may require guaranty agencies to collect data 
        with respect to defaulted loans in a manner that will 
        permit the identification of any defaulted loan for 
        which (i) the borrower is currently making payments and 
        has made not less than 6 consecutive on-time payments 
        by the end of such second fiscal year, and (ii) a 
        guaranty agency has renewed the borrower's title IV 
        eligibility as provided in section 428F(b).
          (D) For the purposes of this subsection, a loan made 
        in accordance with section 428A (or the portion of a 
        loan made under section 428C that is used to repay a 
        loan made under section 428A) 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 (or a loan made under section 428C a 
        portion of which is used to repay a loan made under 
        section 428A) 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.
          (3) Regulations to prevent evasions.--The Secretary 
        shall prescribe regulations designed to prevent an 
        institution from evading the application to that 
        institution of a default rate determination under this 
        subsection through the use of such measures as 
        branching, consolidation, change of ownership or 
        control, or any similar device.
          (4) Collection and reporting of cohort default rates 
        and life of cohort default rates.--(A) The Secretary 
        shall publish not less often than once every fiscal 
        year a report showing cohort default data and life of 
        cohort default rates for each category of institution, 
        including: (i) four-year public institutions; (ii) 
        four-year private nonprofit institutions; (iii) two-
        year public institutions; (iv) two-year private 
        nonprofit institutions; (v) four-year proprietary 
        institutions; (vi) two-year proprietary institutions; 
        and (vii) less than two-year proprietary institutions. 
        For purposes of this subparagraph, for any fiscal year 
        in which one or more current and former students at an 
        institution enter repayment on loans under section 428, 
        428B, or 428H, received for attendance at the 
        institution, the Secretary shall publish the percentage 
        of those current and former students who enter 
        repayment on such loans (or on the portion of a loan 
        made under section 428C that is used to repay any such 
        loans) received for attendance at the institution in 
        that fiscal year who default before the end of each 
        succeeding fiscal year.
          (B) The Secretary may designate such additional 
        subcategories within the categories specified in 
        subparagraph (A) as the Secretary deems appropriate.
          (C) The Secretary shall publish not less often than 
        once every fiscal year a report showing default data 
        for each institution for which a cohort default rate is 
        calculated under this subsection.
          (D) The Secretary shall publish the report described 
        in subparagraph (C) by September 30 of each year.
          (5) Transition period; sunset.--
                  (A) Transition period.--During the transition 
                period, the cohort default rate for an 
                institution shall be calculated in the manner 
                described in section 481B(e)(1).
                  (B) Sunset.--The Secretary shall not be 
                subject, and no institution shall be subject, 
                to the requirements of this subsection after 
                the transition period.
                  (C) Definition.--In this paragraph, the term 
                ``transition period'' has the meaning given the 
                term in section 481B(e)(3).
  (o) Economic Hardship.--
          (1) In general.--For purposes of this part and part 
        E, as in effect on the day before the date of enactment 
        of the PROSPER Act and pursuant to section 461(a) of 
        such Act, a borrower shall be considered to have an 
        economic hardship if--
                  (A) such borrower is working full-time and is 
                earning an amount which does not exceed the 
                greater of--
                          (i) the minimum wage rate described 
                        in section 6 of the Fair Labor 
                        Standards Act of 1938; or
                          (ii) an amount equal to 150 percent 
                        of the poverty line applicable to the 
                        borrower's family size as determined in 
                        accordance with section 673(2) of the 
                        Community Services Block Grant Act; or
                  (B) such borrower meets such other criteria 
                as are established by the Secretary by 
                regulation in accordance with paragraph (2).
          (2) Considerations.--In establishing criteria for 
        purposes of paragraph (1)(B), the Secretary shall 
        consider the borrower's income and debt-to-income ratio 
        as primary factors.
  (p) Eligible Not-for-Profit Holder.--
          (1) Definition.--Subject to the limitations in 
        paragraph (2) and the prohibition in paragraph (3), the 
        term ``eligible not-for-profit holder'' means an 
        eligible lender under subsection (d) (except for an 
        eligible lender described in subsection (d)(1)(E)) that 
        requests a special allowance payment under section 
        438(b)(2)(I)(vi)(II) or a payment under section 781 and 
        that is--
                  (A) a State, or a political subdivision, 
                authority, agency, or other instrumentality 
                thereof, including such entities that are 
                eligible to issue bonds described in section 
                1.103-1 of title 26, Code of Federal 
                Regulations, or section 144(b) of the Internal 
                Revenue Code of 1986;
                  (B) an entity described in section 150(d)(2) 
                of such Code that has not made the election 
                described in section 150(d)(3) of such Code;
                  (C) an entity described in section 501(c)(3) 
                of such Code; or
                  (D) acting as a trustee on behalf of a State, 
                political subdivision, authority, agency, 
                instrumentality, or other entity described in 
                subparagraph (A), (B), or (C), regardless of 
                whether such State, political subdivision, 
                authority, agency, instrumentality, or other 
                entity is an eligible lender under subsection 
                (d).
          (2) Limitations.--
                  (A) Existing on date of enactment.--
                          (i) In general.--An eligible lender 
                        shall not be an eligible not-for-profit 
                        holder under this Act unless such 
                        lender--
                                  (I) was a State, political 
                                subdivision, authority, agency, 
                                instrumentality, or other 
                                entity described in paragraph 
                                (1)(A), (B), or (C) that was, 
                                on the date of the enactment of 
                                the College Cost Reduction and 
                                Access Act, acting as an 
                                eligible lender under 
                                subsection (d) (other than an 
                                eligible lender described in 
                                subsection (d)(1)(E)); or
                                  (II) is acting as a trustee 
                                on behalf of a State, political 
                                subdivision, authority, agency, 
                                instrumentality, or other 
                                entity described in 
                                subparagraph (A), (B), or (C) 
                                of paragraph (1), regardless of 
                                whether such State, political 
                                subdivision, authority, agency, 
                                instrumentality, or other 
                                entity is an eligible lender 
                                under subsection (d), and such 
                                State, political subdivision, 
                                authority, agency, 
                                instrumentality, or other 
                                entity, on the date of 
                                enactment of the College Cost 
                                Reduction and Access Act, was 
                                the sole beneficial owner of a 
                                loan eligible for any special 
                                allowance payment under section 
                                438.
                          (ii) Exception.--Notwithstanding 
                        clause (i), a State may elect, in 
                        accordance with regulations of the 
                        Secretary, to waive the requirements of 
                        this subparagraph for a new not-for-
                        profit holder determined by the State 
                        to be necessary to carry out a public 
                        purpose of such State, except that a 
                        State may not make such election with 
                        respect the requirements of clause 
                        (i)(II).
                  (B) No for-profit ownership or control.--
                          (i) In general.--No State, political 
                        subdivision, authority, agency, 
                        instrumentality, or other entity 
                        described in paragraph (1)(A), (B), or 
                        (C) shall be an eligible not-for-profit 
                        holder under this Act if such State, 
                        political subdivision, authority, 
                        agency, instrumentality, or other 
                        entity is owned or controlled, in whole 
                        or in part, by a for-profit entity.
                          (ii) Trustees.--A trustee described 
                        in paragraph (1)(D) shall not be an 
                        eligible not-for-profit holder under 
                        this Act with respect to a State, 
                        political subdivision, authority, 
                        agency, instrumentality, or other 
                        entity described in subparagraph (A), 
                        (B), or (C) of paragraph (1), 
                        regardless of whether such State, 
                        political subdivision, authority, 
                        agency, instrumentality, or other 
                        entity is an eligible lender under 
                        subsection (d), if such State, 
                        political subdivision, authority, 
                        agency, instrumentality, or other 
                        entity is owned or controlled, in whole 
                        or in part, by a for-profit entity.
                  (C) Sole ownership of loans and income.--No 
                State, political subdivision, authority, 
                agency, instrumentality, trustee, or other 
                entity described in paragraph (1)(A), (B), (C), 
                or (D) shall be an eligible not-for-profit 
                holder under this Act with respect to any loan, 
                or income from any loan, unless--
                          (i) such State, political 
                        subdivision, authority, agency, 
                        instrumentality, or other entity is the 
                        sole beneficial owner of such loan and 
                        the income from such loan; or
                          (ii) such trustee holds the loan on 
                        behalf of a State, political 
                        subdivision, authority, agency, 
                        instrumentality, or other entity 
                        described in subparagraph (A), (B), or 
                        (C) of paragraph (1), regardless of 
                        whether such State, political 
                        subdivision, authority, agency, 
                        instrumentality, or other entity is an 
                        eligible lender under subsection (d), 
                        and such State, political subdivision, 
                        authority, agency, instrumentality, or 
                        other entity is the sole beneficial 
                        owner of such loan and the income from 
                        such loan.
                  (D) Trustee compensation limitations.--A 
                trustee described in paragraph (1)(D) shall not 
                receive compensation as consideration for 
                acting as an eligible lender on behalf of a 
                State, political subdivision, authority, 
                agency, instrumentality, or other entity 
                described in subparagraph (A), (B), or (C) of 
                paragraph (1), regardless of whether such 
                State, political subdivision, authority, 
                agency, instrumentality, or other entity is an 
                eligible lender under subsection (d), in excess 
                of reasonable and customary fees.
                  (E) Rule of construction.--For purposes of 
                subparagraphs (A), (B), (C), and (D) of this 
                paragraph, a State, political subdivision, 
                authority, agency, instrumentality, or other 
                entity described in subparagraph (A), (B), or 
                (C) of paragraph (1), regardless of whether 
                such State, political subdivision, authority, 
                agency, instrumentality, or other entity is an 
                eligible lender under subsection (d), shall 
                not--
                          (i) be deemed to be owned or 
                        controlled, in whole or in part, by a 
                        for-profit entity; or
                          (ii) lose its status as the sole 
                        owner of a beneficial interest in a 
                        loan and the income from a loan,
                by such State, political subdivision, 
                authority, agency, instrumentality, or other 
                entity, or by the trustee described in 
                paragraph (1)(D), granting a security interest 
                in, or otherwise pledging as collateral, such 
                loan, or the income from such loan, to secure a 
                debt obligation for which such State, political 
                subdivision, authority, agency, 
                instrumentality, or other entity is the issuer 
                of the debt obligation.
          (3) Prohibition.--In the case of a loan for which the 
        special allowance payment is calculated under section 
        438(b)(2)(I)(vi)(II) and that is sold by the eligible 
        not-for-profit holder holding the loan to an entity 
        that is not an eligible not-for-profit holder under 
        this Act, the special allowance payment for such loan 
        shall, beginning on the date of the sale, no longer be 
        calculated under section 438(b)(2)(I)(vi)(II) and shall 
        be calculated under section 438(b)(2)(I)(vi)(I) 
        instead.
          (4) Regulations.--Not later than 1 year after the 
        date of enactment of the College Cost Reduction and 
        Access Act, the Secretary shall promulgate regulations 
        in accordance with the provisions of this subsection.

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SEC. 437. REPAYMENT BY THE SECRETARY OF LOANS OF BANKRUPT, DECEASED, OR 
                    DISABLED BORROWERS; TREATMENT OF BORROWERS 
                    ATTENDING SCHOOLS THAT FAIL TO PROVIDE A REFUND, 
                    ATTENDING CLOSED SCHOOLS, OR FALSELY CERTIFIED AS 
                    ELIGIBLE TO BORROW.

  (a) Repayment in Full for Death and Disability.--
          (1) In general.--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), or if a student borrower 
        who has received such a loan is unable to engage in any 
        substantial gainful activity by reason of any medically 
        determinable physical or mental impairment that can be 
        expected to result in death, has lasted for a 
        continuous period of not less than 60 months, or can be 
        expected to last for a continuous period of not less 
        than 60 months then the Secretary shall discharge the 
        borrower's liability on the loan by repaying the amount 
        owed on the loan. The Secretary may develop such 
        safeguards as the Secretary determines necessary to 
        prevent fraud and abuse in the discharge of liability 
        under this subsection. Notwithstanding any other 
        provision of this subsection, the Secretary may 
        promulgate regulations to reinstate the obligation of, 
        and resume collection on, loans discharged under this 
        subsection in any case in which--
                  (A) a borrower received a discharge of 
                liability under this subsection and after the 
                discharge the borrower--
                          (i) receives a loan made, insured, or 
                        guaranteed under this title; or
                          (ii) has earned income in excess of 
                        the poverty line; or
                  (B) the Secretary determines the 
                reinstatement and resumption to be necessary.
          (2) Disability determinations.--A borrower who has 
        been determined by the Secretary of Veterans Affairs to 
        be unemployable due to a service-connected condition 
        and who provides documentation of such determination to 
        the Secretary of Education, shall be considered 
        permanently and totally disabled for the purpose of 
        discharging such borrower's loans under this 
        subsection, and such borrower shall not be required to 
        present additional documentation for purposes of this 
        subsection.
  (b) Payment of Claims on Loans in Bankruptcy.--The Secretary 
shall pay to the holder of a loan described in section 
428(a)(1) (A) or (B), 428A, 428B, 428C, or 428H, the amount of 
the unpaid balance of principal and interest owed on such 
loan--
          (1) when the borrower files for relief under chapter 
        12 or 13 of title 11, United States Code;
          (2) when the borrower who has filed for relief under 
        chapter 7 or 11 of such title commences an action for a 
        determination of dischargeability under section 
        523(a)(8)(B) of such title; or
          (3) for loans described in section 523(a)(8)(A) of 
        such title, when the borrower files for relief under 
        chapter 7 or 11 of such 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 to borrow under this part 
        was falsely certified by the eligible institution or 
        was falsely certified as a result of a crime of 
        identity theft, or if the institution failed to make a 
        refund of loan proceeds which the institution owed to 
        such student's lender, and the borrower meets the 
        applicable requirements of paragraphs (6) through (8), 
        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 authorizing committees annually as to the 
        dollar amount of loan discharges attributable to 
        failures to make refunds.
          (2) Assignment.--A borrower whose loan has been 
        discharged pursuant to this subsection shall be deemed 
        to have assigned to the United States the right to a 
        loan refund up to the amount discharged against the 
        institution and its affiliates and principals.
          (3) Eligibility for additional assistance.--The 
        period of a student's attendance at an institution at 
        which the student was unable to complete a course of 
        study due to the closing of the institution shall not 
        be considered for purposes of calculating the student's 
        period of eligibility for additional assistance under 
        this title.
          (4) Special rule.--A borrower whose loan has been 
        discharged pursuant to this subsection shall not be 
        precluded from receiving additional grants, loans, or 
        work assistance under this title for which the borrower 
        would be otherwise eligible (but for the default on 
        such discharged loan). The amount discharged under this 
        subsection shall be treated the same as loans under 
        section 465(a)(5) of this title, as in effect on the 
        day before the date of enactment of the PROSPER Act and 
        pursuant to section 461(a) of such Act.
          (5) Reporting.--The Secretary shall report to 
        consumer reporting agencies with respect to loans which 
        have been discharged pursuant to this subsection.
          (6) Borrower qualifications for a closed school 
        discharge.--
                  (A) In general.--In order to qualify for the 
                discharge of a loan under this subsection due 
                to the closure of the institution in which the 
                borrower was enrolled, a borrower shall submit 
                to the Secretary a written request and sworn 
                statement--
                          (i) that contains true factual 
                        assertions;
                          (ii) that is made by the borrower 
                        under penalty of perjury, and that may 
                        or may not be notarized;
                          (iii) under which the borrower (or 
                        the student on whose behalf a parent 
                        borrowed) states--
                                  (I) that the borrower or the 
                                student--
                                          (aa) received, on or 
                                        after January 1, 1986, 
                                        the proceeds of a loan 
                                        made, insured, or 
                                        guaranteed under this 
                                        title to attend a 
                                        program of study at an 
                                        institution of higher 
                                        education;
                                          (bb)(AA) did not 
                                        complete the program of 
                                        study because the 
                                        institution closed 
                                        while the student was 
                                        enrolled; or
                                          (BB) the student 
                                        withdrew from the 
                                        institution not more 
                                        than 120 days before 
                                        the institution closed, 
                                        or in the case of 
                                        exceptional 
                                        circumstances described 
                                        in subparagraph (B), 
                                        not more than the 
                                        period by which such 
                                        120-day period is 
                                        extended under such 
                                        subparagraph; and
                                          (cc) attempted but 
                                        was unable to complete 
                                        the program of study 
                                        through a teach-out at 
                                        another institution or 
                                        by transferring 
                                        academic credits or 
                                        hours earned at the 
                                        closed institution to 
                                        another institution;
                                  (II) whether the borrower (or 
                                the student) has made a claim 
                                with respect to the 
                                institutions's closing with any 
                                third party, such as the holder 
                                of a performance bond or a 
                                tuition recovery program, and, 
                                if so, the amount of any 
                                payment received by the 
                                borrower (or the student) or 
                                credited to the borrower's loan 
                                obligation; and
                                  (III) that the borrower (or 
                                the student)--
                                          (aa) agrees to 
                                        provide to the 
                                        Secretary or the holder 
                                        of the loan upon 
                                        request other 
                                        documentation 
                                        reasonably available to 
                                        the borrower that 
                                        demonstrates that the 
                                        borrower meets the 
                                        qualifications for 
                                        discharge under this 
                                        subsection; and
                                          (bb) agrees to 
                                        cooperate with the 
                                        Secretary in 
                                        enforcement actions in 
                                        accordance with 
                                        subparagraph (C) and to 
                                        transfer any right to 
                                        recovery against a 
                                        third party to the 
                                        Secretary in accordance 
                                        with subparagraph (D).
                  (B) Exceptional circumstances.--
                          (i) In general.--The Secretary may 
                        extend the 120-day period described in 
                        subparagraph (A)(iii)(I)(bb)(BB) if the 
                        Secretary determines that exceptional 
                        circumstances related to an 
                        institution's closing justify an 
                        extension.
                          (ii) Definition.--For purposes of 
                        this subsection, the term ``exceptional 
                        circumstances'', when used with respect 
                        to an institution that closed, includes 
                        the loss of accreditation of 
                        institution, the institutions's 
                        discontinuation of the majority of its 
                        academic programs, action by the State 
                        to revoke the institution's license to 
                        operate or award academic credentials 
                        in the State, or a finding by a State 
                        or Federal Government agency that the 
                        institution violated State or Federal 
                        law.
                  (C)  cooperation by borrower in enforcement 
                actions.--
                          (i) In general.--In order to obtain a 
                        discharge described in subparagraph 
                        (A), a borrower shall cooperate with 
                        the Secretary in any judicial or 
                        administrative proceeding brought by 
                        the Secretary to recover amounts 
                        discharged or to take other enforcement 
                        action with respect to the conduct on 
                        which the discharge was based. At the 
                        request of the Secretary and upon the 
                        Secretary's tendering to the borrower 
                        the fees and costs that are customarily 
                        provided in litigation to reimburse 
                        witnesses, the borrower shall--
                                  (I) provide testimony 
                                regarding any representation 
                                made by the borrower to support 
                                a request for discharge;
                                  (II) produce any documents 
                                reasonably available to the 
                                borrower with respect to those 
                                representations; and
                                  (III) if required by the 
                                Secretary, provide a sworn 
                                statement regarding those 
                                documents and representations.
                          (ii) Denial of request for 
                        discharge.--The Secretary shall deny 
                        the request for such a discharge or 
                        revoke the discharge of a borrower 
                        who--
                                  (I) fails to provide the 
                                testimony, documents, or a 
                                sworn statement required under 
                                clause (i); or
                                  (II) provides testimony, 
                                documents, or a sworn statement 
                                that does not support the 
                                material representations made 
                                by the borrower to obtain the 
                                discharge.
                  (D) Transfer to the secretary of borrower's 
                right of recovery against third parties.--
                          (i) In general.--Upon receiving a 
                        discharge described in subparagraph (A) 
                        of a loan, the borrower shall be deemed 
                        to have assigned to and relinquished in 
                        favor of the Secretary any right to a 
                        loan refund for such loan (up to the 
                        amount discharged) that the borrower 
                        (or student) may have by contract or 
                        applicable law with respect to the loan 
                        or the enrollment agreement for the 
                        program for which the loan was 
                        received, against the institution, its 
                        principals, its affiliates and their 
                        successors, its sureties, and any 
                        private fund, including the portion of 
                        a public fund that represents funds 
                        received from a private party.
                          (ii) Application.--The provisions of 
                        this subsection apply notwithstanding 
                        any provision of State law that would 
                        otherwise restrict transfer of such 
                        rights by the borrower (or student), 
                        limit, or prevent a transferee from 
                        exercising such rights, or establish 
                        procedures or a scheme of distribution 
                        that would prejudice the Secretary's 
                        ability to recover on such rights.
                          (iii) Rule of construction.--Nothing 
                        in this subsection shall limit or 
                        foreclose the borrower's (or student's) 
                        right to pursue legal and equitable 
                        relief regarding disputes arising from 
                        matters unrelated to the discharged 
                        loan.
                  (E) Discharge procedures.--
                          (i) In general.--After confirming the 
                        date of an institution's closure, the 
                        Secretary shall identify any borrower 
                        (or student on whose behalf a parent 
                        borrowed) who appears to have been 
                        enrolled at the institution on the 
                        closure date of the institution or to 
                        have withdrawn not more than 120 days 
                        prior to the closure date (or in the 
                        case of exceptional circumstances 
                        described in subparagraph (B), not more 
                        than the period by which such 120-day 
                        period is extended under such 
                        subparagraph. In the case of a loan 
                        made, insured, or guaranteed under this 
                        part, a guaranty agency shall notify 
                        the Secretary immediately whenever it 
                        becomes aware of reliable information 
                        indicating an institution may have 
                        closed.
                          (ii) Borrower address.--
                                  (I) Known.--If the borrower's 
                                current address is known, the 
                                Secretary shall mail the 
                                borrower a discharge 
                                application and an explanation 
                                of the qualifications and 
                                procedures for obtaining a 
                                discharge. The Secretary or the 
                                guaranty agency shall promptly 
                                suspend any efforts to collect 
                                from the borrower on any 
                                affected loan. The Secretary 
                                may continue to receive 
                                borrower payments of the loan 
                                for which the discharge 
                                application has been filed.
                                  (II) Unknown.--If the 
                                borrower's current address is 
                                unknown, the Secretary shall 
                                attempt to locate the borrower 
                                and determine the borrower's 
                                potential eligibility for a 
                                discharge described in 
                                subparagraph (A) by consulting 
                                with representatives of the 
                                closed institution, the 
                                institution's licensing agency, 
                                the institution's accrediting 
                                agency, and other appropriate 
                                parties. If the Secretary 
                                learns the new address of a 
                                borrower, the Secretary shall 
                                mail to the borrower a 
                                discharge application and 
                                explanation, and shall suspend 
                                collection on the loan, as 
                                described in subclause (I).
                          (iii) Sworn statement.--If a borrower 
                        fails to submit the written request and 
                        sworn statement described subparagraph 
                        (A) not later than 60 days after date 
                        on which the Secretary mails the 
                        discharge application under clause 
                        (ii), the Secretary--
                                  (I) shall resume collection 
                                on the loan and grant 
                                forbearance of principal and 
                                interest for the period in 
                                which collection activity was 
                                suspended; and
                                  (II) may capitalize any 
                                interest accrued and not paid 
                                during such period.
                          (iv) Notification.--
                                  (I) Qualifications met.--If 
                                the Secretary determines that a 
                                borrower who requests a 
                                discharge described in 
                                subparagraph (A) meets the 
                                qualifications for such a 
                                discharge, the Secretary 
                                shall--
                                          (aa) notify the 
                                        borrower in writing of 
                                        that determination; and
                                          (bb) not regard a 
                                        borrower who has 
                                        defaulted on a loan 
                                        that has been so 
                                        discharged as in 
                                        default on the loan 
                                        after such discharge, 
                                        and such a borrower 
                                        shall be eligible to 
                                        receive assistance 
                                        under this title.
                                  (II) Qualifications not 
                                met.--If the Secretary 
                                determines that a borrower who 
                                requests a discharge described 
                                in subparagraph (A) does not 
                                meet the qualifications for 
                                such a discharge, the Secretary 
                                or guaranty agency shall resume 
                                collection on the loan and 
                                notify the borrower in writing 
                                of that determination and the 
                                reasons for the determination.
          (7) Borrower qualifications for a false certification 
        discharge.--
                  (A) Application.--
                          (i) In general.--In order to qualify 
                        for false certification discharge under 
                        this subsection, the borrower shall 
                        submit to the Secretary, on a form 
                        approved by the Secretary, an 
                        application for discharge that--
                                  (I) does not need not be 
                                notarized, but shall be made by 
                                the borrower under penalty of 
                                perjury; and
                                  (II) demonstrates to the 
                                satisfaction of the Secretary 
                                that the requirements in 
                                subparagraphs (B) through (G) 
                                have been met.
                          (ii) Notification.--If the Secretary 
                        determines the application does not 
                        meet the requirements of clause (i), 
                        the Secretary shall notify the 
                        applicant and explain why the 
                        application does not meet the 
                        requirements.
                  (B) High school diploma or equivalent.--In 
                the case of a borrower requesting a false 
                certification discharge based on not having had 
                a high school diploma and not having met the 
                alternative to graduation from high school 
                eligibility requirements under section 484(d) 
                applicable at the time the loan was originated, 
                and the institution or a third party to which 
                the institution referred the borrower falsified 
                the student's high school diploma, the borrower 
                shall state in the application that the 
                borrower (or the student on whose behalf a 
                parent borrowed)--
                          (i) reported not having a valid high 
                        school diploma or its equivalent at the 
                        time the loan was certified; and
                          (ii) did not satisfy the alternative 
                        to graduation from high school 
                        statutory or regulatory eligibility 
                        requirements identified on the 
                        application form and applicable at the 
                        time the institution certified the 
                        loan.
                  (C) Disqualifying condition.--In the case of 
                a borrower requesting a false certification 
                discharge based on a condition that would 
                disqualify the borrower from employment in the 
                occupation that the program for which the 
                borrower received the loan was intended, the 
                borrower shall state in the application that 
                the borrower (or student on whose behalf the 
                parent borrowed) did not meet State 
                requirements for employment (in the student's 
                State of residence) in the occupation that the 
                program for which the borrower received the 
                loan was intended because of a physical or 
                mental condition, age, criminal record, or 
                other reason accepted by the Secretary.
                  (D) Unauthorized loan.--In the case of a 
                borrower requesting a discharge under this 
                subsection because the institution signed the 
                borrower's name on the loan application or 
                promissory note without the borrower's 
                authorization, the borrower shall--
                          (i) state that the borrower did not 
                        sign the document in question or 
                        authorize the institution to do so; and
                          (ii) provide 5 different specimens of 
                        the borrower's signature, 2 of which 
                        must be within one year before or after 
                        the date of the contested signature.
                  (E) Unauthorized payment.--In the case of a 
                borrower requesting a false certification 
                discharge because the institution, without the 
                borrower's authorization, endorsed the 
                borrower's loan check or signed the borrower's 
                authorization for electronic funds transfer, 
                the borrower shall--
                          (i) state that the borrower did not 
                        endorse the loan check or sign the 
                        authorization for electronic funds 
                        transfer or authorize the institution 
                        to do so;
                          (ii) provide 5 different specimens of 
                        the borrower's signature, 2 of which 
                        must be within one year before or after 
                        the date of the contested signature; 
                        and
                          (iii) state that the proceeds of the 
                        contested disbursement were not 
                        delivered to the borrower or applied to 
                        charges owed by the borrower to the 
                        institution.
                  (F) Identity theft.--
                          (i) In general.--In the case of an 
                        individual whose eligibility to borrow 
                        was falsely certified because the 
                        individual was a victim of the crime of 
                        identity theft and is requesting a 
                        discharge, the individual shall--
                                  (I) certify that the 
                                individual did not sign the 
                                promissory note, or that any 
                                other means of identification 
                                used to obtain the loan was 
                                used without the authorization 
                                of the individual claiming 
                                relief;
                                  (II) certify that the 
                                individual did not receive or 
                                benefit from the proceeds of 
                                the loan with knowledge that 
                                the loan had been made without 
                                the authorization of the 
                                individual;
                                  (III) provide a copy of a 
                                local, State, or Federal court 
                                verdict or judgment that 
                                conclusively determines that 
                                the individual who is named as 
                                the borrower of the loan was 
                                the victim of a crime of 
                                identity theft; and
                                  (IV) if the judicial 
                                determination of the crime does 
                                not expressly state that the 
                                loan was obtained as a result 
                                of the crime of identity theft, 
                                provide--
                                          (aa) authentic 
                                        specimens of the 
                                        signature of the 
                                        individual, as 
                                        described in 
                                        subparagraph (D)(ii), 
                                        or of other means of 
                                        identification of the 
                                        individual, as 
                                        applicable, 
                                        corresponding to the 
                                        means of identification 
                                        falsely used to obtain 
                                        the loan; and
                                          (bb) statement of 
                                        facts that demonstrate, 
                                        to the satisfaction of 
                                        the Secretary, that 
                                        eligibility for the 
                                        loan in question was 
                                        falsely certified as a 
                                        result of the crime of 
                                        identity theft 
                                        committed against that 
                                        individual.
                          (ii) Definitions.--For purposes of 
                        this subparagraph:
                                  (I) Identity theft.--The term 
                                ``identity theft'' means the 
                                unauthorized use of the 
                                identifying information of 
                                another individual that is 
                                punishable under section 1028, 
                                1028A, 1029, or 1030 of title 
                                18, United States Code, or 
                                substantially comparable State 
                                or local law.
                                  (II) Identifying 
                                information.--The term 
                                ``identifying information'' 
                                includes--
                                          (aa) name, Social 
                                        Security number, date 
                                        of birth, official 
                                        State or government 
                                        issued driver's license 
                                        or identification 
                                        number, alien 
                                        registration number, 
                                        government passport 
                                        number, and employer or 
                                        taxpayer identification 
                                        number;
                                          (bb) unique biometric 
                                        data, such as 
                                        fingerprints, 
                                        voiceprint, retina or 
                                        iris image, or unique 
                                        physical 
                                        representation;
                                          (cc) unique 
                                        electronic 
                                        identification number, 
                                        address, or routing 
                                        code; or
                                          (dd) 
                                        telecommunication 
                                        identifying information 
                                        or access device (as 
                                        defined in 18 U.S.C. 
                                        1029(e)) borrower 
                                        qualifications for a 
                                        false certification 
                                        discharge
                  (G) Claim to third party.--The borrower shall 
                state whether the borrower has made a claim 
                with respect to the institutions's false 
                certification or unauthorized payment with any 
                third party, such as the holder of a 
                performance bond or a tuition recovery program, 
                and, if so, the amount of any payment received 
                by the borrower or credited to the borrower's 
                loan obligation.
                  (H) Cooperation with the secretary.--The 
                borrower shall state that the borrower--
                          (i) agrees to provide to the 
                        Secretary upon request other 
                        documentation reasonably available to 
                        the borrower that demonstrates that the 
                        borrower meets the qualifications for 
                        discharge under this subsection; and
                          (ii) agrees to cooperate with the 
                        Secretary in enforcement actions and to 
                        transfer any right to recovery against 
                        a third party to the Secretary.
          (8) Borrower qualifications for an unpaid refund 
        discharge.--To receive an unpaid refund discharge of a 
        portion of a loan under this subsection, a borrower 
        shall submit to the holder or guaranty agency a written 
        application--
                  (A) that requests the information required to 
                calculate the amount of the discharge;
                  (B) that the borrower signs for the purpose 
                of swearing to the accuracy of the information;
                  (C) that is made by the borrower under 
                penalty of perjury, and that may or may not be 
                notarized;
                  (D) under which the borrower states--
                          (i) that the borrower--
                                  (I) received, on or after 
                                January 1, 1986, the proceeds 
                                of a loan, in whole or in part, 
                                made, insured, or guaranteed 
                                under this title to attend an 
                                institution of higher 
                                education;
                                  (II) did not attend, 
                                withdrew, or was terminated 
                                from the institution within a 
                                timeframe that entitled the 
                                borrower to a refund; and
                                  (III) did not receive the 
                                benefit of a refund to which 
                                the borrower was entitled 
                                either from the institution or 
                                from a third party, such as the 
                                holder of a performance bond or 
                                a tuition recovery program;
                          (ii) whether the borrower has any 
                        other application for discharge pending 
                        for this loan; and
                          (iii) that the borrower--
                                  (I) agrees to provide to the 
                                Secretary upon request other 
                                documentation reasonably 
                                available to the borrower that 
                                demonstrates that the borrower 
                                meets the qualifications for 
                                discharge under this 
                                subsection; and
                                  (II) agrees to cooperate with 
                                the Secretary in enforcement 
                                actions and to transfer any 
                                right to recovery against a 
                                third party to the Secretary.
  (d) Repayment of Loans to Parents.--If a student on whose 
behalf a parent has received a loan described in section 428B 
dies, then the Secretary shall discharge the borrower's 
liability on the loan by repaying the amount owed on the loan.

           *       *       *       *       *       *       *


                  Part C--Federal Work-Study Programs

SEC. 441. PURPOSE; APPROPRIATIONS AUTHORIZED.

  (a) Purpose.--The purpose of this part is to stimulate and 
promote the [part-time] paid employment of students who are 
enrolled as undergraduate[, graduate, or professional] students 
and who are in need of earnings from employment to pursue 
courses of study at eligible institutions, and to encourage 
students receiving Federal student financial assistance to 
participate in [community service] work-based learning 
activities that will benefit the Nation and engender in the 
students a sense of social responsibility and commitment to the 
community.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this [part, such sums as may be 
necessary for fiscal year 2009 and each of the five succeeding 
fiscal years.] part, $1,722,858,000 for fiscal year 2019 and 
each of the 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, emergency 
        preparedness and response, crime prevention and 
        control, recreation, rural development, and community 
        improvement;
          [(2) work in a project, as defined in section 101(20) 
        of the National and Community Service Act of 1990 (42 
        U.S.C. 12511(20));
          [(3) support services to students with disabilities, 
        including students with disabilities who are enrolled 
        at the institution; and
          [(4) activities in which a student serves as a mentor 
        for such purposes as--
                  [(A) tutoring;
                  [(B) supporting educational and recreational 
                activities; and
                  [(C) counseling, including career 
                counseling.]
  (c) Work-Based Learning.--For purposes of this part, the term 
``work-based learning'' means paid interactions with industry 
or community professionals in real workplace settings that 
foster in-depth, first-hand engagement with the tasks required 
of a given career field, that are aligned to a student's field 
of study.

[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.
  [(b) Allocation of Excess Based on Share of Excess Eligible 
Amounts.--(1) From the remainder of the amount appropriated 
pursuant to section 441(b) after making the allocations 
required by subsection (a), the Secretary shall allocate to 
each eligible institution which has an excess eligible amount 
an amount which bears the same ratio to such remainder as such 
excess eligible amount bears to the sum of the excess eligible 
amounts of all such eligible institutions (having such excess 
eligible amounts).
  [(2) For any eligible institution, the excess eligible amount 
is the amount, if any, by which--
          [(A)(i) the amount of that institution's need (as 
        determined under subsection (c)), divided by (ii) the 
        sum of the need of all institutions (as so determined), 
        multiplied by (iii) the amount appropriated pursuant to 
        section 441(b) for the fiscal year; exceeds
          [(B) the amount required to be allocated to that 
        institution under subsection (a).
  [(c) Determination of Institution's Need.--(1) The amount of 
an institution's need is equal to the sum of the self-help need 
of the institution's eligible undergraduate students and the 
self-help need of the institution's eligible graduate and 
professional students.
  [(2) To determine the self-help need of an institution's 
eligible undergraduate students, the Secretary shall--
          [(A) establish various income categories for 
        dependent and independent undergraduate students;
          [(B) establish an expected family contribution for 
        each income category of dependent and independent 
        undergraduate students, determined on the basis of the 
        average expected family contribution (computed in 
        accordance with part F of this title) of a 
        representative sample within each income category for 
        the second preceding fiscal year;
          [(C) compute 25 percent of the average cost of 
        attendance for all undergraduate students;
          [(D) multiply the number of eligible dependent 
        students in each income category by the lesser of--
                  [(i) 25 percent of the average cost of 
                attendance for all undergraduate students 
                determined under subparagraph (C); or
                  [(ii) the average cost of attendance for all 
                undergraduate students minus the expected 
                family contribution determined under 
                subparagraph (B) for that income category, 
                except that the amount computed by such 
                subtraction shall not be less than zero;
          [(E) add the amounts determined under subparagraph 
        (D) for each income category of dependent students; and
          [(F) multiply the number of eligible independent 
        students in ach income category by the lesser of--
                  [(i) 25 percent of the average cost of 
                attendance for all undergraduate students 
                determined under subparagraph (C); or
                  [(ii) the average cost of attendance for all 
                undergraduate students minus the expected 
                family contribution determined under 
                subparagraph (B) for that income category, 
                except that the amount computed by such 
                subtraction for any income category shall not 
                be less than zero;
          [(G) add the amounts determined under subparagraph 
        (F) for each income category of independent students; 
        and
          [(H) add the amounts determined under subparagraphs 
        (E) and (G).
  [(3) To determine the self-help need of an institution's 
eligible graduate and professional students, the Secretary 
shall--
          [(A) establish various income categories of graduate 
        and professional students;
          [(B) establish an expected family contribution for 
        each income category of graduate and professional 
        students, determined on the basis of the average 
        expected family contribution (computed in accordance 
        with part F of this title) of a representative sample 
        within each income category for the second preceding 
        fiscal year;
          [(C) determine the average cost of attendance for all 
        graduate and professional students;
          [(D) subtract from the average cost of attendance for 
        all graduate and professional students (determined 
        under subparagraph (C)), the expected family 
        contribution (determined under subparagraph (B)) for 
        each income category, except that the amount computed 
        by such subtraction for any income category shall not 
        be less than zero;
          [(E) multiply the amounts determined under 
        subparagraph (D) by the number of eligible students in 
        each category; and
          [(F) add the amounts determined under subparagraph 
        (E) of this paragraph for each income category.
  [(4)(A) For purposes of paragraphs (2) and (3), the term 
``average cost of attendance'' means the average of the 
attendance costs for undergraduate students and for graduate 
and professional students, which shall include (i) tuition and 
fees determined in accordance with subparagraph (B), (ii) 
standard living expenses determined in accordance with 
subparagraph (C), and (iii) books and supplies determined in 
accordance with subparagraph (D).
  [(B) The average undergraduate and graduate and professional 
tuition and fees described in subparagraph (A)(i) shall be 
computed on the basis of information reported by the 
institution to the Secretary, which shall include (i) total 
revenue received by the institution from undergraduate and 
graduate tuition and fees for the second year preceding the 
year for which it is applying for an allocation, and (ii) the 
institution's enrollment for such second preceding year.
  [(C) The standard living expense described in subparagraph 
(A)(ii) is equal to 150 percent of the difference between the 
income protection allowance for a family of five with one in 
college and the income protection allowance for a family of six 
with one in college for a single independent student.
  [(D) The allowance for books and supplies described in 
subparagraph (A)(iii) is equal to $600.
  [(d) Reallocation of Excess Allocations.--(1) If institutions 
return to the Secretary any portion of the sums allocated to 
such institutions under this section for any fiscal year, the 
Secretary shall reallot such excess to eligible institutions 
which used at least 5 percent of the total amount of funds 
granted to such institution under this section to compensate 
students employed in tutoring in reading and family literacy 
activities in the preceding fiscal year. Such excess funds 
shall be reallotted to institutions which qualify under this 
subsection on the same basis as excess eligible amounts are 
allocated to institutions pursuant to subsection (b). Funds 
received by institutions pursuant to this subsection shall be 
used to compensate students employed in community service.
  [(2) If, under paragraph (1) of this subsection, an 
institution returns more than 10 percent of its allocation, the 
institution's allocation for the next fiscal year shall be 
reduced by the amount returned. The Secretary may waive this 
paragraph for a specific institution if the Secretary finds 
that enforcing this paragraph would be contrary to the interest 
of the program.
  [(e) Filing Deadlines.--The Secretary shall, from time to 
time, set dates before which institutions must file 
applications for allocations under this part.]

SEC. 442. ALLOCATION OF FUNDS.

  (a) Reservations.--
          (1) Reservation for improved institutions.--
                  (A) Amount of reservation for improved 
                institutions.--For a fiscal year in which the 
                amount appropriated under section 441(b) 
                exceeds $700,000,000, the Secretary shall--
                          (i) reserve the lesser of--
                                  (I) an amount equal to 20 
                                percent of the amount by which 
                                the amount appropriated under 
                                section 441(b) exceeds 
                                $700,000,000; or
                                  (II) $150,000,000; and
                          (ii) allocate the amount reserved 
                        under clause (i) to each improved 
                        institution in an amount--
                                  (I) that bears the same 
                                proportion to the amount 
                                reserved under clause (i) as 
                                the total amount of all Federal 
                                Pell Grant funds awarded at the 
                                improved institution for the 
                                second preceding fiscal year 
                                bears to the total amount of 
                                Federal Pell Grant funds 
                                awarded at improved 
                                institutions participating 
                                under this part for the second 
                                preceding fiscal year; and
                                  (II) is not--
                                          (aa) less than 
                                        $10,000; or
                                          (bb) greater than 
                                        $1,500,000.
                  (B) Improved institution described.--For 
                purposes of this paragraph, an improved 
                institution is an institution that, on the date 
                the Secretary makes an allocation under 
                subparagraph (A)(ii) is, with respect to--
                          (i) the completion rate or graduation 
                        rate of Federal Pell Grant recipients 
                        at the institution, in the top 10 
                        percent of--
                                  (I) if the institution is an 
                                institution described in any of 
                                clauses (iv) through (ix) of 
                                section 132(d)(1)(B), all such 
                                institutions participating 
                                under this part for the 
                                preceding fiscal year; or
                                  (II) if the institution is an 
                                institution described in any of 
                                clauses (i) through (iii) of 
                                section 132(d)(1)(B), all such 
                                institutions participating 
                                under this part for the 
                                preceding fiscal year; or
                          (ii) the improvement of the 
                        completion rate or graduation rate 
                        between the preceding fiscal year and 
                        such date, in the top 10 percent of the 
                        institutions described in clause (i).
                  (C) Completion rate or graduation rate.--For 
                purposes of determining the completion rate or 
                graduation rate under this section, a Federal 
                Pell Grant recipient shall be counted as a 
                completor or graduate if, within the normal 
                time for completion of or graduation from the 
                program, the student has completed or graduated 
                from the program, or enrolled in any program of 
                an institution participating in any program 
                under this title for which the prior program 
                provides substantial preparation.
                  (D) Reallocation of returned amount.--If an 
                institution returns to the Secretary any 
                portion of the sums allocated to such 
                institution under this paragraph for any fiscal 
                year, the Secretary shall reallot such excess 
                to improved institutions on the same basis as 
                under subparagraph (A)(ii)(I).
          (2) Reservation for work colleges.--From the amounts 
        appropriated under section 441(b), the Secretary shall 
        reserve to carry out section 448 such amounts as may be 
        necessary for fiscal year 2019 and each of the 5 
        succeeding fiscal years.
  (b) Allocation Formula for Fiscal Years 2019 Through 2023.--
          (1) In general.--From the amount appropriated under 
        section 441(b) for a fiscal year and remaining after 
        the Secretary reserves funds under subsection (a), the 
        Secretary shall allocate to each institution--
                  (A) for fiscal year 2019, an amount equal to 
                the greater of--
                          (i) 90 percent of the amount the 
                        institution received under this 
                        subsection and subsection (a) for 
                        fiscal year 2018, as such subsections 
                        were in effect with respect to such 
                        fiscal year (in this subparagraph 
                        referred to as the ``2018 amount for 
                        the institution''); or
                          (ii) the fair share amount for the 
                        institution determined under subsection 
                        (d);
                  (B) for fiscal year 2020, an amount equal to 
                the greater of--
                          (i) 80 percent of the 2018 amount for 
                        the institution; or
                          (ii) the fair share amount for the 
                        institution determined under subsection 
                        (d);
                  (C) for fiscal year 2021, an amount equal to 
                the greater of--
                          (i) 60 percent of the 2018 amount for 
                        the institution; or
                          (ii) the fair share amount for the 
                        institution determined under subsection 
                        (d);
                  (D) for fiscal year 2022, an amount equal to 
                the greater of--
                          (i) 40 percent of the 2018 amount for 
                        the institution; or
                          (ii) the fair share amount for the 
                        institution determined under subsection 
                        (d); and
                  (E) for fiscal year 2023, an amount equal to 
                the greater of--
                          (i) 20 percent of the 2018 amount for 
                        the institution; or
                          (ii) the fair share amount for the 
                        institution determined under subsection 
                        (d).
          (2) Ratable reduction.--
                  (A) In general.--If the amount appropriated 
                under section 441(b) for a fiscal year and 
                remaining after the Secretary reserves funds 
                under subsection (a) is less than the amount 
                required to be allocated to the institutions 
                under this subsection, then the amount of the 
                allocation to each institution shall be ratably 
                reduced.
                  (B) Additional appropriations.--If the 
                amounts allocated to each institution are 
                ratably reduced under subparagraph (A) for a 
                fiscal year and additional amounts are 
                appropriated for such fiscal year, the amount 
                allocated to each institution from the 
                additional amounts shall be increased on the 
                same basis as the amounts under subparagraph 
                (A) were reduced (until each institution 
                receives the amount required to be allocated 
                under this subsection).
  (c) Allocation Formula for Fiscal Year 2024 and Each 
Succeeding Fiscal Year.--From the amount appropriated under 
section 441(b) for fiscal year 2024 and each succeeding fiscal 
year and remaining after the Secretary reserves funds under 
subsection (a), the Secretary shall allocate to each 
institution the fair share amount for the institution 
determined under subsection (d).
  (d) Determination of Fair Share Amount.--
          (1) In general.--The fair share amount for an 
        institution for a fiscal year shall be equal to the sum 
        of the following:
                  (A) An amount equal to 50 percent of the 
                amount that bears the same proportion to the 
                available appropriated amount for such fiscal 
                year as the total amount of Federal Pell Grant 
                funds disbursed at the institution for the 
                preceding fiscal year bears to the total amount 
                of Federal Pell Grant funds awarded at all 
                institutions participating under this part for 
                the preceding fiscal year.
                  (B) An amount equal to 50 percent of the 
                amount that bears the same proportion to the 
                available appropriated amount for such fiscal 
                year as the total amount of the undergraduate 
                student need at the institution for the 
                preceding fiscal year bears to the total amount 
                of undergraduate student need at all 
                institutions participating under this part for 
                the preceding fiscal year.
          (2) Definitions.--In this subsection:
                  (A) Available appropriated amount.--The term 
                ``available appropriated amount'' means--
                          (i) the amount appropriated under 
                        section 441(b) for a fiscal year, minus
                          (ii) the amounts reserved under 
                        subsection (a) for such fiscal year.
                  (B) Average cost of attendance.--The term 
                ``average cost of attendance'' means, with 
                respect to an institution, the average of the 
                attendance costs for a fiscal year for students 
                which shall include--
                          (i) tuition and fees, computed on the 
                        basis of information reported by the 
                        institution to the Secretary, which 
                        shall include--
                                  (I) total revenue received by 
                                the institution from 
                                undergraduate tuition and fees 
                                for the second year preceding 
                                the year for which it is 
                                applying for an allocation; and
                                  (II) the institution's 
                                enrollment for such second 
                                preceding year;
                          (ii) standard living expenses equal 
                        to 150 percent of the difference 
                        between the income protection allowance 
                        for a family of 5 with 1 in college and 
                        the income protection allowance for a 
                        family of 6 with 1 in college for a 
                        single independent student; and
                          (iii) books and supplies, in an 
                        amount not exceeding $800.
                  (C) Undergraduate student need.--The term 
                ``undergraduate student need'' means, with 
                respect to an undergraduate student for a 
                fiscal year, the lesser of the following:
                          (i) The total of the amount equal to 
                        (except the amount computed by this 
                        clause shall not be less than zero)--
                                  (I) the average cost of 
                                attendance for the fiscal year, 
                                minus
                                  (II) the total amount of each 
                                such undergraduate student's 
                                expected family contribution 
                                (computed in accordance with 
                                part F of this title) for the 
                                preceding fiscal year.
                          (ii) $12,500.
  (e) Return of Surplus Allocated Funds.--
          (1) Amount returned.--If an institution returns more 
        than 10 percent of its allocation under subsection (d), 
        the institution's allocation for the next fiscal year 
        shall be reduced by the amount returned.
          (2) Waiver.--The Secretary may waive this paragraph 
        for a specific institution if the Secretary finds that 
        enforcing this paragraph would be contrary to the 
        interest of the program.
  (f) Filing Deadlines.--The Secretary shall, from time to 
time, set dates before which institutions must file 
applications for allocations under this part.

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

  (a) Agreements Required.--The Secretary is authorized to 
enter into agreements with institutions of higher education 
under which the Secretary will make grants to such institutions 
to assist in the operation of work-study programs as provided 
in this part.
  (b) Contents of Agreements.--An agreement entered into 
pursuant to this section shall--
          (1) provide for the operation by the institution of a 
        program for the [part-time] employment, including 
        internships, practica, or research assistantships as 
        determined by the Secretary, of its students in work 
        for the institution itself, work in community service 
        or work in the public interest for a Federal, State, or 
        local public agency or private nonprofit organization 
        under an arrangement between the institution and such 
        agency or organization, and such work--
                  (A) will not result in the displacement of 
                employed workers or impair existing contracts 
                for services;
                  (B) will be governed by such conditions of 
                employment as will be appropriate and 
                reasonable in light of such factors as type of 
                work performed, geographical region, and 
                proficiency of the employee;
                  (C) does not involve the construction, 
                operation, or maintenance of so much of any 
                facility as is used or is to be used for 
                sectarian instruction or as a place for 
                religious worship; and
                  (D) will not pay any wage to students 
                employed under this subpart that is less than 
                the current Federal minimum wage as mandated by 
                section 6(a) of the Fair Labor Standards Act of 
                1938;
          (2) provide that funds granted an institution of 
        higher education, pursuant to this section, may be used 
        only to make payments to students participating in 
        work-study programs, [except that--]
                  [(A) for fiscal year 2000 and succeeding 
                fiscal years, an institution shall use at least 
                7 percent of the total amount of funds granted 
                to such institution under this section for such 
                fiscal year to compensate students employed in 
                community service, and shall ensure that not 
                less than 1 tutoring or family literacy project 
                (as described in subsection (d)) is included in 
                meeting the requirement of this subparagraph, 
                except that the Secretary may waive this 
                subparagraph if the Secretary determines that 
                enforcing this subparagraph would cause 
                hardship for students at the institution; and]
                  [(B)] [an institution may use a portion] 
                except that an institution may use a portion of 
                the sums granted to it to meet administrative 
                expenses in accordance with section 489 of this 
                Act, may use a portion of the sums granted to 
                it to meet the cost of a job location and 
                development program in accordance with section 
                446 of this part, and may transfer funds in 
                accordance with the provisions of section 488 
                of this Act;
          (3) provide that in the selection of students for 
        employment under such work-study program, only 
        undergraduate students who demonstrate financial need 
        in accordance with part F and meet the requirements of 
        section 484 will be assisted, except that if the 
        institution's grant under this part is directly or 
        indirectly based in part on the financial need 
        demonstrated by students who are (A) attending the 
        institution on less than a full-time basis, or (B) 
        independent students, a reasonable portion of the grant 
        shall be made available to such students;
          (4) provide that for a student employed in a work-
        study program under this part, at the time income 
        derived from any need-based employment is in excess of 
        the determination of the amount of such student's need 
        by more than $[300] 500, continued employment shall not 
        be subsidized with funds appropriated under this part;
          (5) provide that the Federal share of the 
        compensation of students employed in the work-study 
        program in accordance with the agreement [shall not 
        exceed 75 percent] shall not exceed 75 percent in the 
        first year after the date of the enactment of PROSPER 
        Act, 65 percent in the first succeeding fiscal year, 60 
        percent in the second succeeding fiscal year, 55 
        percent in the third succeeding fiscal year, and 50 
        percent each succeeding fiscal year, except that--
                  [(A) the Federal share may exceed 75 percent, 
                but not exceed 90 percent, if, consistent with 
                regulations of the Secretary--
                          [(i) the student is employed at a 
                        nonprofit private organization or a 
                        government agency that--
                                  [(I) is not a part of, and is 
                                not owned, operated, or 
                                controlled by, or under common 
                                ownership, operation, or 
                                control with, the institution;
                                  [(II) is selected by the 
                                institution on an individual 
                                case-by-case basis for such 
                                student; and
                                  [(III) would otherwise be 
                                unable to afford the costs of 
                                such employment; and
                          [(ii) not more than 10 percent of the 
                        students compensated through the 
                        institution's grant under this part 
                        during the academic year are employed 
                        in positions for which the Federal 
                        share exceeds 75 percent; and]
                  [(B)] (A) the Federal share may exceed [75] 
                50 percent if the Secretary determines, 
                pursuant to regulations promulgated by the 
                Secretary establishing objective criteria for 
                such determinations, that a Federal share in 
                excess of such amounts is required in 
                furtherance of the purpose of this part[;]; and
                  (B) the Federal share may equal 100 percent 
                with respect to funds received under section 
                442(a)(1)(A);
          (6) include provisions to make employment under such 
        work-study program reasonably available (to the extent 
        of available funds) to all eligible students in the 
        institution in need thereof;
          (7) provide assurances that employment made available 
        from funds under this part will, to the maximum extent 
        practicable, complement and reinforce the educational 
        program or vocational goals of each student receiving 
        assistance under this part;
          (8) provide assurances, in the case of each 
        proprietary institution, that students attending the 
        proprietary institution receiving assistance under this 
        part who are employed by the institution may be 
        employed in jobs--
                  (A) that are only on campus and that--
                          (i) to the maximum extent 
                        practicable, complement and reinforce 
                        the education programs or [vocational] 
                        career goals of such students; and
                          (ii) furnish student services that 
                        are directly related to the student's 
                        education, as determined by the 
                        Secretary pursuant to regulations, 
                        except that no student shall be 
                        employed in any position that would 
                        involve the solicitation of other 
                        potential students to enroll in the 
                        school; or
                  (B) in [community service] work-based 
                learning in accordance with paragraph (2)(A) of 
                this subsection;
          (9) provide assurances that employment made available 
        from funds under this part may be used to support 
        programs for supportive services to students with 
        disabilities;
          (10) provide assurances that the institution will 
        inform all eligible students of the opportunity to 
        perform community service, and will consult with local 
        nonprofit, governmental, and community-based 
        organizations to identify such opportunities[; and];
          (11) include such other reasonable provisions as the 
        Secretary shall deem necessary or appropriate to carry 
        out the purpose of this part[.];
          (12) provide assurances that the institution will 
        collect data from students and employers such that the 
        employment made available from funds under this part 
        will, to the maximum extent practicable, complement and 
        reinforce the educational goals or career goals of each 
        student receiving assistance under this part; and
          (13) provide assurances that if the institution 
        receives funds under section 442(a)(1)(A), such 
        institution shall--
                  (A) use such funds to compensate students 
                participating in the work-study program; and
                  (B) prioritize the awarding of such funds to 
                students--
                          (i) who demonstrate exceptional need; 
                        or
                          (ii) who are employed in work-based 
                        learning opportunities through the 
                        work-study program.
  (c) Private Sector Employment Agreement.--As part of its 
agreement described in subsection (b), an institution of higher 
education may, at its option, enter into an additional 
agreement with the Secretary which shall--
          (1) provide for the operation by the institution of a 
        [program of part-time employment] program--
                  (A) of employment  of its students in work 
                for a private for-profit organization under an 
                arrangement between the institution and such 
                organization that complies with the 
                requirements of subparagraphs (A) through (D) 
                of subsection (b)(1) and subsection (b)(3); or
                  (B) of full-time employment of its 
                cooperative education students in work for a 
                private for-profit organization under an 
                arrangement between the institution and such 
                organization that complies with the 
                requirements of subparagraphs (A) through (D) 
                of subsection (b)(1) of this section and 
                subsection (b)(4) of this section;
          [(2) provide that the institution will use not more 
        than 25 percent of the funds made available to such 
        institution under this part for any fiscal year for the 
        operation of the program described in paragraph (1);]
          [(3)] (2) provide that, notwithstanding subsection 
        (b)(5), the Federal share of the compensation of 
        students employed in such program will not exceed 60 
        percent for academic years 1987-1988 and 1988-1989, 55 
        percent for academic year 1989-1990, and 50 percent for 
        academic year 1990-1991 and succeeding academic years, 
        and that the non-Federal share of such compensation 
        will be provided by the private for-profit organization 
        in which the student is employed;
          [(4)] (3) provide that jobs under the work study 
        program will be academically relevant and complement 
        and reinforce the educational goals or career goals of 
        each student receiving assistance under this part, to 
        the maximum extent practicable; and
          [(5)] (4) provide that the for-profit organization 
        will not use funds made available under this part to 
        pay any employee who would otherwise be employed by the 
        organization.
  (d) Tutoring and Literacy Activities.--
          (1) Use of funds.--[In any academic year to which 
        subsection (b)(2)(A) applies, an institution shall 
        ensure that] An institution may use the funds granted 
        to such institution under this section [are used] in 
        accordance with such subsection to compensate 
        (including compensation for time spent in training and 
        travel directly related to tutoring in reading and 
        family literacy activities) students--
                  (A) employed as reading tutors for children 
                who are preschool age or are in elementary 
                school; or
                  (B) employed in family literacy projects.
          (2) Priority for schools.--To the extent practicable, 
        an institution shall--
                  (A) give priority to the employment of 
                students in the provision of tutoring in 
                reading in schools that are participating in a 
                reading reform project that--
                          (i) is designed to train teachers how 
                        to teach reading on the basis of 
                        scientifically-based research on 
                        reading; and
                          (ii) is funded under the Elementary 
                        and Secondary Education Act of 1965; 
                        and
                  (B) ensure that any student compensated with 
                the funds described in paragraph (1) who is 
                employed in a school participating in a reading 
                reform project described in subparagraph (A) 
                receives training from the employing school in 
                the instructional practices used by the school.
          (3) Federal share.--The Federal share of the 
        compensation of work-study students compensated under 
        this subsection [may exceed 75 percent] shall not 
        exceed 50 percent.
  (e) Civic Education and Participation Activities.--
          (1) Use of funds.--Funds granted to an institution 
        under this section may be used to compensate (including 
        compensation for time spent in training and travel 
        directly related to civic education and participation 
        activities) students employed in projects that--
                  (A) teach civics in schools;
                  (B) raise awareness of government functions 
                or resources; or
                  (C) increase civic participation.
          (2) Priority for schools.--To the extent practicable, 
        an institution shall--
                  (A) give priority to the employment of 
                students participating in projects that educate 
                or train the public about evacuation, emergency 
                response, and injury prevention strategies 
                relating to natural disasters, acts of 
                terrorism, and other emergency situations; and
                  (B) ensure that any student compensated with 
                the funds described in paragraph (1) receives 
                appropriate training to carry out the 
                educational services required.
          (3) Federal share.--The Federal share of the 
        compensation of work-study students compensated under 
        this subsection may exceed 75 percent.

           *       *       *       *       *       *       *


SEC. 445. FLEXIBLE USE OF FUNDS.

  (a) Carry-Over Authority.--(1) Of the sums granted to an 
eligible institution under this part for any fiscal year, 10 
percent may, at the discretion of the institution, remain 
available for expenditure during the succeeding fiscal year to 
carry out programs under this part.
  (2) Any of the sums so granted to an institution for a fiscal 
year which are not needed by that institution to operate work-
study programs during that fiscal year, and which it does not 
wish to use during the next fiscal year as authorized in the 
preceding sentence, shall remain available to the Secretary for 
making grants under section 443 to other institutions [in the 
same State] described under section 442(a)(1)(B) until the 
close of the second fiscal year next succeeding the fiscal year 
for which such funds were appropriated.
  (3) In addition to the carry-over sums authorized under 
paragraph (1) of this section, an institution may permit a 
student who completed the previous award period to continue to 
earn unearned portions of the student's work-study award from 
that previous year if--
          (A) any reduction in the student's need upon which 
        the award was based is accounted for in the remaining 
        portion; and
          (B) the student is currently employed in a work-based 
        learning position.
  (b) Carry-Back Authority.--(1) Up to 10 percent of the sums 
the Secretary determines an eligible institution may receive 
from funds which have been appropriated for a fiscal year may 
be used by the Secretary to make grants under this part to such 
institution for expenditure during the fiscal year preceding 
the fiscal year for which the sums were appropriated.
  (2) An eligible institution may make payments to students of 
wages earned after the end of the academic year, but prior to 
the beginning of the succeeding fiscal year, from such 
succeeding fiscal year's appropriations.
  (c) Flexible Use of Funds.--An eligible institution may, upon 
the request of a student, make payments to the student under 
this part by crediting the student's account at the institution 
or by making a direct deposit to the student's account at a 
depository institution. An eligible institution may only credit 
the student's account at the institution for (1) tuition and 
fees, (2) in the case of institutionally owned housing, room 
and board, and (3) other institutionally provided goods and 
services.
  (d) Flexibility in the Event of a Major Disaster.--
          (1) In general.--In the event of a major disaster, an 
        eligible institution located in any area affected by 
        such major disaster, as determined by the Secretary, 
        may make payments under this part to disaster-affected 
        students, for the period of time (not to exceed one 
        academic year) in which the disaster-affected students 
        were prevented from fulfilling the students' work-study 
        obligations as described in paragraph (2)(A)(iii), as 
        follows:
                  (A) Payments may be made under this part to 
                disaster-affected students in an amount equal 
                to or less than the amount of wages such 
                students would have been paid under this part 
                had the students been able to complete the work 
                obligation necessary to receive work study 
                funds.
                  (B) Payments shall not be made to any student 
                who was not eligible for work study or was not 
                completing the work obligation necessary to 
                receive work study funds under this part prior 
                to the occurrence of the major disaster.
                  (C) Any payments made to disaster-affected 
                students under this subsection shall meet the 
                matching requirements of section 443, unless 
                such matching requirements are waived by the 
                Secretary.
          (2) Definitions.--In this subsection:
                  (A) The term ``disaster-affected student'' 
                means a student enrolled at an eligible 
                institution who--
                          (i) received a work-study award under 
                        this section for the academic year 
                        during which a major disaster occurred;
                          (ii) earned Federal work-study wages 
                        from such eligible institution for such 
                        academic year;
                          (iii) was prevented from fulfilling 
                        the student's work-study obligation for 
                        all or part of such academic year due 
                        to such major disaster; and
                          (iv) was unable to be reassigned to 
                        another work-study job.
                  (B) The term ``major disaster'' has the 
                meaning given such term in section 102(2) of 
                the Robert T. Stafford Disaster Relief and 
                Emergency Assistance Act (42 U.S.C. 5122(2)).

SEC. 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 $75,000] 
20 percent or $150,000 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.
  (2) Jobs located and developed under this section shall be 
jobs that are suitable to the scheduling and other needs of 
such students and that, to the maximum extent practicable, 
complement and reinforce the educational programs or 
[vocational] career goals of such students.
  (3) An institution may use a portion of the funds expended 
under this section to identify and expand opportunities for 
apprenticeships for students and to assist employers in 
developing jobs that are part of apprenticeship programs.
  (b) Contents of Agreements.--Agreements under subsection (a) 
shall--
          (1) provide that the Federal share of the cost of any 
        program under this section will not exceed 80 percent 
        of such cost;
          [(2) provide satisfactory assurance that funds 
        available under this section will not be used to locate 
        or develop jobs at an eligible institution;]
          (2) provide satisfactory assurance that the 
        institution will prioritize placing students with the 
        lowest expected family contribution and Federal work-
        study recipients in jobs located and developed under 
        this section;
          (3) provide a satisfactory assurance that the 
        institution will locate and develop work-based learning 
        opportunities through the job location development 
        programs;
          [(3)] (4) provide satisfactory assurance that funds 
        available under this section will not be used for the 
        location or development of jobs for students to obtain 
        upon graduation, but rather for the location and 
        development of jobs available to students during and 
        between periods of attendance at such institution;
          [(4)] (5) provide satisfactory assurance that the 
        location or development of jobs pursuant to programs 
        assisted under this section will not result in the 
        displacement of employed workers or impair existing 
        contracts for services;
          [(5)] (6) provide satisfactory assurance that Federal 
        funds used for the purpose of this section can 
        realistically be expected to help generate student 
        wages exceeding, in the aggregate, the amount of such 
        funds, and that if such funds are used to contract with 
        another organization, appropriate performance standards 
        are part of such contract; and
          [(6)] (7) provide that the institution will submit to 
        the Secretary an annual report on the uses made of 
        funds provided under this section and an evaluation of 
        the effectiveness of such program in benefiting the 
        students of such institution[.], including--
                  (A) the number of students employed in work-
                based learning opportunities through such 
                program;
                  (B) the number of students demonstrating 
                exceptional need and employed in a work-study 
                program through such program; and
                  (C) the number of students demonstrating 
                exceptional need and employed in work-based 
                learning opportunities through such program.

[SEC. 447. ADDITIONAL FUNDS TO CONDUCT COMMUNITY SERVICE WORK-STUDY 
                    PROGRAMS.

  [(a) Community Service-Learning.--Each institution 
participating under this part may use up to 10 percent of the 
funds made available under section 489(a) and attributable to 
the amount of the institution's expenditures under this part to 
conduct that institution's program of community service-
learning, including--
          [(1) development of mechanisms to assure the academic 
        quality of the student experience,
          [(2) assuring student access to educational 
        resources, expertise, and supervision necessary to 
        achieve community service objectives, and
          [(3) collaboration with public and private nonprofit 
        agencies, and programs assisted under the National and 
        Community Service Act of 1990 in the planning, 
        development, and administration of such programs.
  [(b) Off-Campus Community Service.--
          [(1) Grants authorized.--In addition to funds made 
        available under section 443(b)(2)(A), the Secretary is 
        authorized to award grants to institutions 
        participating under this part to supplement off-campus 
        community service employment.
          [(2) Use of funds.--An institution shall ensure that 
        funds granted to such institution under this subsection 
        are used in accordance with section 443(b)(2)(A) to 
        recruit and compensate students (including compensation 
        for time spent in training and for travel directly 
        related to such community service).
          [(3) Priority.--In awarding grants under this 
        subsection, the Secretary shall give priority to 
        applications that support postsecondary students 
        assisting with early childhood education activities and 
        activities in preparation for emergencies and natural 
        disasters.
          [(4) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this 
        subsection such sums as may be necessary for fiscal 
        year 2009 and each of the five succeeding fiscal 
        years.]

SEC. 448. WORK COLLEGES.

  (a) Purpose.--The purpose of this section is to recognize, 
encourage, and promote the use of comprehensive 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] allocated 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] allocated under 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-
                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-service programs, including--
                          (i) community-based 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] allocated under 
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, 
                four-year, degree-granting institution with a 
                commitment to community service;
                  (B) has operated a comprehensive work-
                learning-service program for at least two 
                years;
                  (C) requires students, including at least 
                one-half of all students who are enrolled on a 
                full-time basis, to participate in a 
                comprehensive work-learning-service program for 
                at least five hours each week, or at least 80 
                hours during each period of enrollment, except 
                summer school, unless the student is engaged in 
                an institutionally organized or approved study 
                abroad or externship program[; and];
                  (D) provides students participating in the 
                comprehensive work-learning-service program 
                with the opportunity to contribute to their 
                education and to the welfare of the community 
                as a whole; and
                  (E) has administered Federal work-study for 
                at least 2 years; and
          (2) the term ``comprehensive student work-learning-
        service program'' means a student work-learning-service 
        program that--
                  (A) is an integral and stated part of the 
                institution's educational philosophy and 
                program;
                  (B) requires participation of all resident 
                students for enrollment and graduation;
                  (C) includes learning objectives, evaluation, 
                and a record of work performance as part of the 
                student's college record;
                  (D) provides programmatic leadership by 
                college personnel at levels comparable to 
                traditional academic programs;
                  (E) recognizes the educational role of work-
                learning-service supervisors; and
                  (F) includes consequences for nonperformance 
                or failure in the work-learning-service program 
                similar to the consequences for failure in the 
                regular academic program.
  [(f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.]
  (f) Allocation of Reserved Funds.--
          (1) In general.--Subject to paragraph (2), from the 
        amount reserved under section 442(a)(2) for a fiscal 
        year to carry out this section, the Secretary shall 
        allocate to each work college that submits an 
        application under subsection (c) an amount equal to the 
        amount that bears the same proportion to the amount 
        appropriated for such fiscal year as the number of 
        students eligible for employment under a work-study 
        program under this part who are enrolled at the work 
        college bears to the total number of students eligible 
        for employment under a work-study program under this 
        part who are enrolled at all work colleges.
          (2) Reallotment of unmatched funds.--If a work 
        college is unable to match funds received under 
        paragraph (1) in accordance with subsection (d), any 
        unmatched funds shall be returned to the Secretary and 
        the Secretary shall reallot such funds on the same 
        basis as funds are allocated under paragraph (1).

          PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

SEC. 451. PROGRAM AUTHORITY.

  (a) In General.--There are hereby made available, in 
accordance with the provisions of this part, such sums as may 
be necessary (1) to make loans to all eligible students (and 
the eligible parents of such students) in attendance at 
participating institutions of higher education selected by the 
Secretary, to enable such students to pursue their courses of 
study at such institutions during the period beginning July 1, 
1994; and (2) for purchasing loans under section 459A. Loans 
made under this part shall be made by participating 
institutions, or consortia thereof, that have agreements with 
the Secretary to originate loans, or by alternative originators 
designated by the Secretary to make loans for students in 
attendance at participating institutions (and their parents). 
No sums may be expended after September 30, 2024, with respect 
to loans under this part for which the first disbursement is 
after such date.
  (b) Designation.--
          (1) Program.--The program established under this part 
        shall be referred to as the ``William D. Ford Federal 
        Direct Loan Program''.
          (2) Direct loans.--Notwithstanding any other 
        provision of this part, 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 section 428, shall be 
        known as ``Federal Direct Stafford/Ford Loans''.
  (c) Termination of Authority to Make New Loans.--
Notwithstanding subsection (a) or any other provision of law--
          (1) no new loans may be made under this part after 
        September 30, 2024; and
          (2) no funds are authorized to be appropriated, or 
        may be expended, under this Act, or any other Act to 
        make loans under this part for which the first 
        disbursement is after September 30, 2024,
except as expressly authorized by an Act of Congress enacted 
after the date of enactment of the PROSPER Act.
  (d) Student Eligibility Beginning With Award Year 2019.--
          (1) New borrowers.--No loan may be made under this 
        part to a new borrower for which the first disbursement 
        is after June 30, 2019.
          (2) Borrowers with outstanding balances.--Subject to 
        paragraph (3), with respect to a borrower who, as of 
        July 1, 2019, has an outstanding balance of principal 
        or interest owing on a loan made under this part, such 
        borrower may--
                  (A) in the case of such a loan made to the 
                borrower for enrollment in a program of 
                undergraduate education, borrow loans made 
                under this part for any program of 
                undergraduate education through the close of 
                September 30, 2024;
                  (B) in the case of such a loan made to the 
                borrower for enrollment in a program of 
                graduate or professional education, borrow 
                loans made under this part for any program of 
                graduate or professional education through the 
                close of September 30, 2024; and
                  (C) in the case of such a loan made to the 
                borrower on behalf of a dependent student for 
                the student's enrollment in a program of 
                undergraduate education, borrow loans made 
                under this part on behalf of such student 
                through the close of September 30, 2024.
          (3) Loss of eligibility.--A borrower described in 
        paragraph (2) who borrows a loan made under part E for 
        which the first disbursement is made on or after July 
        1, 2019, shall lose the borrower's eligibility to 
        borrow loans made under this part in accordance with 
        paragraph (2).

           *       *       *       *       *       *       *


SEC. 453. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND ORIGINATION.

  (a) General Authority.--The Secretary shall enter into 
agreements pursuant to section 454(a) with institutions of 
higher education to participate in the direct student loan 
program under this part, and agreements pursuant to section 
454(b) with institutions of higher education, or consortia 
thereof, to originate loans in such program, for academic years 
beginning on or after July 1, 1994. Alternative origination 
services, through which an entity other than the participating 
institution at which the student is in attendance originates 
the loan, shall be provided by the Secretary, through 1 or more 
contracts under section 456(b) or such other means as the 
Secretary may provide, for students attending participating 
institutions that do not originate direct student loans under 
this part. Such agreements for the academic year 1994-1995 
shall, to the extent feasible, be entered into not later than 
January 1, 1994.
  (b) Selection Criteria.--
          (1) Application.--Each institution of higher 
        education desiring to participate in the direct student 
        loan program under this part shall submit an 
        application satisfactory to the Secretary containing 
        such information and assurances as the Secretary may 
        require.
          (2) Selection procedure.--The Secretary shall select 
        institutions for participation in the direct student 
        loan program under this part, and shall enter into 
        agreements with such institutions under section 454(a), 
        from among those institutions that submit the 
        applications described in paragraph (1), and meet such 
        other eligibility requirements as the Secretary shall 
        prescribe.
  (c) Selection Criteria for Origination.--
          (1) In general.--The Secretary may enter into a 
        supplemental agreement with an institution (or a 
        consortium of such institutions) that--
                  (A) has an agreement under subsection 454(a);
                  (B) desires to originate loans under this 
                part; and
                  (C) meets the criteria described in paragraph 
                (2).
          (2) Selection criteria.--The Secretary may approve an 
        institution to originate loans only if such 
        institution--
                  (A) is not on the reimbursement system of 
                payment for any of the programs under subpart 1 
                or 3 of part A, part C, or part E, as in effect 
                on the day before the date of enactment of the 
                PROSPER Act and pursuant to section 461(a), of 
                this title;
                  (B) is not overdue on program or financial 
                reports or audits required under this title;
                  (C) is not subject to an emergency action, or 
                a limitation, suspension, or termination under 
                section 428(b)(1)(T), 432(h), or 487(c);
                  (D) in the opinion of the Secretary, has not 
                had severe performance deficiencies for any of 
                the programs under this title, including such 
                deficiencies demonstrated by audits or program 
                reviews submitted or conducted during the 5 
                calendar years immediately preceding the date 
                of application;
                  (E) provides an assurance that such 
                institution has no delinquent outstanding debts 
                to the Federal Government, unless such debts 
                are being repaid under or in accordance with a 
                repayment arrangement satisfactory to the 
                Federal Government, or the Secretary in the 
                Secretary's discretion determines that the 
                existence or amount of such debts has not been 
                finally determined by the cognizant Federal 
                agency; and
                  (F) meets such other criteria as the 
                Secretary may establish to protect the 
                financial interest of the United States and to 
                promote the purposes of this part.
  (d) Eligible Institutions.--The Secretary may not select an 
institution of higher education for participation under this 
section unless such institution is an eligible institution 
under section 435(a).
  (e) Consortia.--Subject to such requirements as the Secretary 
may prescribe, eligible institutions of higher education (as 
determined under subsection (d)) with agreements under section 
454(a) may apply to the Secretary as consortia to originate 
loans under this part for students in attendance at such 
institutions. Each such institution shall be required to meet 
the requirements of subsection (c) with respect to loan 
origination.

           *       *       *       *       *       *       *


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, and first 
        disbursed before October 1, 2024, shall have the same 
        terms, conditions, and benefits, and be available in 
        the same amounts, as loans made to borrowers, and first 
        disbursed on June 30, 2010, under sections 428, 428B, 
        428C, and 428H of this title.
          (2) Designation of loans.--Loans made to borrowers 
        under this part, and first disbursed before October 1, 
        2024, 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'';
                  (C) section 428C shall be known as ``Federal 
                Direct Consolidation Loans''; and
                  (D) section 428H shall be known as ``Federal 
                Direct Unsubsidized Stafford Loans''.
          (3) Termination of authority to make interest 
        subsidized loans to graduate and professional 
        students.--
                  (A) In general.--Subject to subparagraph (B) 
                and notwithstanding any provision of this part 
                or part B, for any period of instruction 
                beginning on or after July 1, 2012--
                          (i) a graduate or professional 
                        student shall not be eligible to 
                        receive a Federal Direct Stafford loan 
                        under this part; and
                          (ii) the maximum annual amount of 
                        Federal Direct Unsubsidized Stafford 
                        loans such a student may borrow in any 
                        academic year (as defined in section 
                        481(a)(2)) or its equivalent shall be 
                        the maximum annual amount for such 
                        student determined under section 428H, 
                        plus an amount equal to the amount of 
                        Federal Direct Stafford loans the 
                        student would have received in the 
                        absence of this subparagraph.
                  (B) Exception.--Subparagraph (A) shall not 
                apply to an individual enrolled in course work 
                specified in paragraph (3)(B) or (4)(B) of 
                section 484(b).
  (b) Interest Rate.--
          (1) Rates for fdsl and fdusl.--For Federal Direct 
        Stafford Loans and Federal Direct Unsubsidized Stafford 
        Loans for which the first disbursement is made on or 
        after July 1, 1994, 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) the bond equivalent rate of 91-day 
                Treasury bills auctioned at the final auction 
                held prior to such June 1; plus
                  (B) 3.1 percent,
        except that such rate shall not exceed 8.25 percent.
          (2) In school and grace period rules.--(A) 
        Notwithstanding the provisions of paragraph (1), but 
        subject to paragraph (3), with respect to any Federal 
        Direct Stafford Loan or Federal Direct Unsubsidized 
        Stafford Loan for which the first disbursement is made 
        on or after July 1, 1995, 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 not exceed the rate determined under subparagraph 
        (B).
          (B) For the purpose of subparagraph (A), 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 be equal 
        to--
                  (i) the bond equivalent rate of 91-day 
                Treasury bills auctioned at the final auction 
                prior to such June 1; plus
                  (ii) 2.5 percent,
        except that such rate shall not exceed 8.25 percent.
          (3) Out-year rule.--Notwithstanding paragraphs (1) 
        and (2), for Federal Direct Stafford Loans and Federal 
        Direct Unsubsidized Stafford Loans made on or after 
        July 1, 1998, 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) the bond equivalent rate of the security 
                with a comparable maturity as established by 
                the Secretary; plus
                  (B) 1.0 percent,
        except that such rate shall not exceed 8.25 percent.
          (4) Rates for fdplus.--
                  (A)(i) For Federal Direct PLUS Loans for 
                which the first disbursement is made on or 
                after July 1, 1994, the applicable rate of 
                interest shall, during any 12-month period 
                beginning on July 1 and ending on or before 
                June 30, 2001, be determined on the preceding 
                June 1 and be equal to--
                          (I) the bond equivalent rate of 52-
                        week Treasury bills auctioned at final 
                        auction held prior to such June 1; plus
                          (II) 3.1 percent,
                except that such rate shall not exceed 9 
                percent.
                  (ii) For any 12-month period beginning on 
                July 1 of 2001 or any succeeding year, the 
                applicable rate of interest determined under 
                this subparagraph shall be determined on the 
                preceding June 26 and be equal to--
                          (I) the weekly average 1-year 
                        constant maturity Treasury yield, as 
                        published by the Board of Governors of 
                        the Federal Reserve System, for the 
                        last calendar week ending on or before 
                        such June 26; plus
                          (II) 3.1 percent,
                except that such rate shall not exceed 9 
                percent.
          (B) For Federal Direct PLUS loans made on or after 
        July 1, 1998, 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 the security 
                with a comparable maturity as established by 
                the Secretary; plus
                  (ii) 2.1 percent,
        except that such rate shall not exceed 9 percent.
          (5) Temporary interest rate provision.--
                  (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, 1998, and before October 1, 
                1998, 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 July 1, 1998, 
                and before October 1, 1998, 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 July 
                1, 1998, and before October 1, 1998, 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''.
          (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.--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) 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.
                  (E) 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) 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.
          (7) Interest rate provision for new loans on or after 
        july 1, 2006 and before july 1, 2013.--
                  (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, and before July 1, 
                2013, 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, and before July 1, 2013, 
                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, and before July 1, 2013, 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.
                  (D) Reduced rates for undergraduate fdsl.--
                Notwithstanding the preceding paragraphs of 
                this subsection and subparagraph (A) of this 
                paragraph, for Federal Direct Stafford Loans 
                made to undergraduate students for which the 
                first disbursement is made on or after July 1, 
                2006, and before July 1, 2013, the applicable 
                rate of interest shall be as follows:
                          (i) For a loan for which the first 
                        disbursement is made on or after July 
                        1, 2006, and before July 1, 2008, 6.8 
                        percent on the unpaid principal balance 
                        of the loan.
                          (ii) For a loan for which the first 
                        disbursement is made on or after July 
                        1, 2008, and before July 1, 2009, 6.0 
                        percent on the unpaid principal balance 
                        of the loan.
                          (iii) For a loan for which the first 
                        disbursement is made on or after July 
                        1, 2009, and before July 1, 2010, 5.6 
                        percent on the unpaid principal balance 
                        of the loan.
                          (iv) For a loan for which the first 
                        disbursement is made on or after July 
                        1, 2010, and before July 1, 2011, 4.5 
                        percent on the unpaid principal balance 
                        of the loan.
                          (v) For a loan for which the first 
                        disbursement is made on or after July 
                        1, 2011, and before July 1, 2013, 3.4 
                        percent on the unpaid principal balance 
                        of the loan.
          (8) Interest rate provisions for new loans on or 
        after july 1, 2013 and before october 1, 2024.--
                  (A) Rates for undergraduate fdsl and fdusl.--
                Notwithstanding the preceding paragraphs of 
                this subsection, for Federal Direct Stafford 
                Loans and Federal Direct Unsubsidized Stafford 
                Loans issued to undergraduate students, for 
                which the first disbursement is made on or 
                after July 1, 2013, and before October 1, 2024, 
                the applicable rate of interest shall, for 
                loans disbursed 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 the lesser of--
                          (i) a rate equal to the high yield of 
                        the 10-year Treasury note auctioned at 
                        the final auction held prior to such 
                        June 1 plus 2.05 percent; or
                          (ii) 8.25 percent.
                  (B) Rates for graduate and professional 
                fdusl.--Notwithstanding the preceding 
                paragraphs of this subsection, for Federal 
                Direct Unsubsidized Stafford Loans issued to 
                graduate or professional students, for which 
                the first disbursement is made on or after July 
                1, 2013, and before October 1, 2024, the 
                applicable rate of interest shall, for loans 
                disbursed 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 the 
                lesser of--
                          (i) a rate equal to the high yield of 
                        the 10-year Treasury note auctioned at 
                        the final auction held prior to such 
                        June 1 plus 3.6 percent; or
                          (ii) 9.5 percent.
                  (C) PLUS loans.--Notwithstanding the 
                preceding paragraphs of this subsection, for 
                Federal Direct PLUS Loans, for which the first 
                disbursement is made on or after July 1, 2013, 
                and before October 1, 2024, the applicable rate 
                of interest shall, for loans disbursed 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 the lesser 
                of--
                          (i) a rate equal to the high yield of 
                        the 10-year Treasury note auctioned at 
                        the final auction held prior to such 
                        June 1 plus 4.6 percent; or
                          (ii) 10.5 percent.
                  (D) 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, 
                2013, and before October 1, 2024, shall bear 
                interest at an annual rate on the unpaid 
                principal balance of the loan that is equal to 
                the weighted average of the interest rates on 
                the loans consolidated, rounded to the nearest 
                higher one-eighth of one percent.
                  (E) Consultation.--The Secretary shall 
                determine the applicable rate of interest under 
                this paragraph 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.
                  (F) Rate.--The applicable rate of interest 
                determined under this paragraph for a Federal 
                Direct Stafford Loan, a Federal Direct 
                Unsubsidized Stafford Loan, or a Federal Direct 
                PLUS Loan shall be fixed for the period of the 
                loan.
          (9) Repayment incentives.--
                  (A)(A) Incentives for loans disbursed before 
                july 1, 2012.--Notwithstanding any other 
                provision of this part with respect to loans 
                for which the first disbursement of principal 
                is made before July 1, 2012,, the Secretary is 
                authorized to prescribe by regulation such 
                reductions in the interest or origination fee 
                rate paid by a borrower of a loan made under 
                this part as the Secretary determines 
                appropriate to encourage on-time repayment of 
                the loan. Such reductions may be offered only 
                if the Secretary determines the reductions are 
                cost neutral and in the best financial interest 
                of the Federal Government. Any increase in 
                subsidy costs resulting from such reductions 
                shall be completely offset by corresponding 
                savings in funds available for the William D. 
                Ford Federal Direct Loan Program in that fiscal 
                year from section 458 and other administrative 
                accounts.
                  (B) Accountability.--Prior to publishing 
                regulations proposing repayment incentives with 
                respect to loans for which the first 
                disbursement of principal is made before July 
                1, 2012, 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 
                authorizing committees not less than 60 days 
                prior to the publication of regulations 
                proposing such reductions.
                  (C) No repayment incentives for new loans 
                disbursed on or after july 1, 2012.--
                Notwithstanding any other provision of this 
                part, the Secretary is prohibited from 
                authorizing or providing any repayment 
                incentive not otherwise authorized under this 
                part to encourage on-time repayment of a loan 
                under this part for which the first 
                disbursement of principal is made on or after 
                July 1, 2012, including any reduction in the 
                interest or origination fee rate paid by a 
                borrower of such a loan, except that the 
                Secretary may provide for an interest rate 
                reduction for a borrower who agrees to have 
                payments on such a loan automatically 
                electronically debited from a bank account.
          (10) 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.--
          (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 
        Federal Direct Consolidation loans and Federal Direct 
        PLUS loans--
                  (A) by substituting ``3.0 percent'' for ``4.0 
                percent'' with respect to loans for which the 
                first disbursement of principal is made on or 
                after the date of enactment of the Higher 
                Education Reconciliation Act of 2005, and 
                before July 1, 2007;
                  (B) by substituting ``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 ``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 ``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 ``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, and before October 1, 2024.
  (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, 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)(iv), except that the 
                borrower shall annually repay a minimum amount 
                determined by the Secretary in accordance with 
                section 428(b)(1)(L);
                  (D) 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 made on behalf of a dependent 
                student; and
                  (E) beginning on July 1, 2009, an income-
                based repayment plan that enables borrowers who 
                have a partial financial hardship to make a 
                lower monthly payment in accordance with 
                section 493C, except that the plan described in 
                this subparagraph shall not be available to the 
                borrower of a Federal Direct PLUS Loan made on 
                behalf of a dependent student or a Federal 
                Direct Consolidation Loan, if the proceeds of 
                such loan were used to discharge the liability 
                on such Federal Direct PLUS Loan or a loan 
                under section 428B made on behalf of a 
                dependent student.
          (2) Selection by secretary.--If a borrower of a loan 
        made under this part does not select a repayment plan 
        described in paragraph (1), the Secretary may provide 
        the borrower with a repayment plan described in 
        subparagraph (A), (B), or (C) of paragraph (1).
          (3) Changes in selections.--The borrower of a loan 
        made under this part may change the borrower's 
        selection of a repayment plan under paragraph (1), or 
        the Secretary's selection of a plan for the borrower 
        under paragraph (2), as the case may be, under such 
        terms and conditions as may be established by the 
        Secretary.
          (4) Alternative repayment plans.--The Secretary may 
        provide, on a case by case basis, an alternative 
        repayment plan to a borrower of a loan made under this 
        part who demonstrates to the satisfaction of the 
        Secretary that the terms and conditions of the 
        repayment plans available under paragraph (1) are not 
        adequate to accommodate the borrower's exceptional 
        circumstances. In designing such alternative repayment 
        plans, the Secretary shall ensure that such plans do 
        not exceed the cost to the Federal Government, as 
        determined on the basis of the present value of future 
        payments by such borrowers, of loans made using the 
        plans available under paragraph (1).
          (5) Repayment after default.--The Secretary may 
        require any borrower who has defaulted on a loan made 
        under this part to--
                  (A) pay all reasonable collection costs 
                associated with such loan; and
                  (B) repay the loan pursuant to an income 
                contingent repayment plan.
  (e) Income Contingent Repayment.--
          (1) Information and procedures.--The Secretary may 
        obtain such information as is reasonably necessary 
        regarding the income of a borrower (and the borrower's 
        spouse, if applicable) of a loan made under this part 
        that is, or may be, repaid pursuant to income 
        contingent repayment, for the purpose of determining 
        the annual repayment obligation of the borrower. 
        Returns and return information (as defined in section 
        6103 of the Internal Revenue Code of 1986) may be 
        obtained under the preceding sentence only to the 
        extent authorized by section 6103(l)(13) of such Code. 
        The Secretary shall establish procedures for 
        determining the borrower's repayment obligation on that 
        loan for such year, and such other procedures as are 
        necessary to implement effectively income contingent 
        repayment.
          (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.
          (3) Additional documents.--A borrower who chooses, or 
        is required, to repay a loan made under this part 
        pursuant to income contingent repayment, and for whom 
        adjusted gross income is unavailable or does not 
        reasonably reflect the borrower's current income, shall 
        provide to the Secretary other documentation of income 
        satisfactory to the Secretary, which documentation the 
        Secretary may use to determine an appropriate repayment 
        schedule.
          (4) Repayment schedules.--Income contingent repayment 
        schedules shall be established by regulations 
        promulgated by the Secretary and shall require payments 
        that vary in relation to the appropriate portion of the 
        annual income of the borrower (and the borrower's 
        spouse, if applicable) as determined by the Secretary.
          (5) Calculation of balance due.--The balance due on a 
        loan made under this part that is repaid pursuant to 
        income contingent repayment shall equal the unpaid 
        principal amount of the loan, any accrued interest, and 
        any fees, such as late charges, assessed on such loan. 
        The Secretary may promulgate regulations limiting the 
        amount of interest that may be capitalized on such 
        loan, and the timing of any such capitalization.
          (6) Notification to borrowers.--The Secretary shall 
        establish procedures under which a borrower of a loan 
        made under this part who chooses or is required to 
        repay such loan pursuant to income contingent repayment 
        is notified of the terms and conditions of such plan, 
        including notification of such borrower--
                  (A) that the Internal Revenue Service will 
                disclose to the Secretary tax return 
                information as authorized under section 
                6103(l)(13) of the Internal Revenue Code of 
                1986; and
                  (B) that if a borrower considers that special 
                circumstances, such as a loss of employment by 
                the borrower or the borrower's spouse, warrant 
                an adjustment in the borrower's loan repayment 
                as determined using the information described 
                in subparagraph (A), or the alternative 
                documentation described in paragraph (3), the 
                borrower may contact the Secretary, who shall 
                determine whether such adjustment is 
                appropriate, in accordance with criteria 
                established by the Secretary.
          (7) Maximum repayment period.--In calculating the 
        extended period of time for which an income contingent 
        repayment plan under this subsection may be in effect 
        for a borrower, the Secretary shall include all time 
        periods during which a borrower of loans under part B, 
        part D, or part E, as in effect on the day before the 
        date of enactment of the PROSPER Act and pursuant to 
        section 461(a)--
                  (A) is not in default on any loan that is 
                included in the income contingent repayment 
                plan; and
                  (B)(i) is in deferment due to an economic 
                hardship described in section 435(o);
                  (ii) makes monthly payments under paragraph 
                (1) or (6) of section 493C(b);
                  (iii) makes monthly payments of not less than 
                the monthly amount calculated under section 
                428(b)(9)(A)(i) or subsection (d)(1)(A), based 
                on a 10-year repayment period, when the 
                borrower first made the election described in 
                section 493C(b)(1);
                  (iv) makes payments of not less than the 
                payments required under a standard repayment 
                plan under section 428(b)(9)(A)(i) or 
                subsection (d)(1)(A) with a repayment period of 
                10 years; or
                  (v) makes payments under an income contingent 
                repayment plan under subsection (d)(1)(D).
  (f) Deferment.--
          (1) Effect on principal and interest.--A borrower of 
        a loan made under this part who meets the requirements 
        described in paragraph (2) shall be eligible for a 
        deferment, during which periodic installments of 
        principal need not be paid, and interest--
                  (A) shall not accrue, in the case of a--
                          (i) Federal Direct Stafford Loan; or
                          (ii) a Federal Direct Consolidation 
                        Loan that consolidated only Federal 
                        Direct Stafford Loans, or a combination 
                        of such loans and Federal Stafford 
                        Loans for which the student borrower 
                        received an interest subsidy under 
                        section 428; or
                  (B) shall accrue and be capitalized or paid 
                by the borrower, in the case of a Federal 
                Direct PLUS Loan, a Federal Direct Unsubsidized 
                Stafford Loan, or a Federal Direct 
                Consolidation Loan not described in 
                subparagraph (A)(ii).
          (2) Eligibility.--A borrower of a loan made under 
        this part shall be eligible for a deferment during any 
        period--
                  (A) during which the borrower--
                          (i) is carrying at least one-half the 
                        normal full-time work load for the 
                        course of study that the borrower is 
                        pursuing, as determined by the eligible 
                        institution (as such term is defined in 
                        section 435(a)) the borrower is 
                        attending; or
                          (ii) is pursuing a course of study 
                        pursuant to a graduate fellowship 
                        program approved by the Secretary, or 
                        pursuant to a rehabilitation training 
                        program for individuals with 
                        disabilities approved by the Secretary,
                except that no borrower shall be eligible for a 
                deferment under this subparagraph, or a loan 
                made under this part (other than a Federal 
                Direct PLUS Loan or a Federal Direct 
                Consolidation Loan), while serving in a medical 
                internship or residency program;
                  (B) not in excess of 3 years during which the 
                borrower is seeking and unable to find full-
                time employment;
                  (C) 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,
                and for the 180-day period following the 
                demobilization date for the service described 
                in clause (i) or (ii); or
                  (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.
          (3) Definition of borrower.--For the purpose of this 
        subsection, the term ``borrower'' means an individual 
        who is a new borrower on the date such individual 
        applies for a loan under this part for which the first 
        disbursement is made on or after July 1, 1993.
          (4) Deferments for previous part b loan borrowers.--A 
        borrower of a loan made under this part, who at the 
        time such individual applies for such loan, has an 
        outstanding balance of principal or interest owing on 
        any loan made, insured, or guaranteed under part B of 
        title IV prior to July 1, 1993, shall be eligible for a 
        deferment under section 427(a)(2)(C) or section 
        428(b)(1)(M) as such sections were in effect on July 
        22, 1992.
  (g) Federal Direct Consolidation Loans.--A borrower of a loan 
made under this part, and first disbursed before October 1, 
2024, may consolidate such loan with the loans described in 
section 428C(a)(4), including any loan made under part B and 
first disbursed before July 1, 2010. To be eligible for a 
consolidation loan under this part, a borrower shall meet the 
eligibility criteria set forth in section 428C(a)(3). The 
authority to make consolidation loans under this subsection 
expires at the close of September 30, 2024. No loan may be made 
under this subsection for which the disbursement is on or after 
October 1, 2024.
  [(h) Borrower Defenses.--Notwithstanding any other provision 
of State or Federal law, the Secretary shall specify in 
regulations which acts or omissions of an institution of higher 
education a borrower may assert as a defense to repayment of a 
loan made under this part, except that in no event may a 
borrower recover from the Secretary, in any action arising from 
or relating to a loan made under this part, an amount in excess 
of the amount such borrower has repaid on such loan.]
  (h) Borrower Defenses.--
          (1) In general.--In any proceeding to collect on a 
        loan made under this part on or after July 1, 2018 to a 
        borrower, the Secretary shall abide by the following:
                  (A) In no event may the borrower recover any 
                amount previously collected or be freed of 
                amounts owed to the Secretary without 
                submitting an individually-filed application 
                for approval.
                  (B) In no event may the borrower recover 
                amounts previously collected by the Secretary, 
                in any action arising from or relating to a 
                loan made under this part, in an amount in 
                excess of the amount that has been paid by the 
                borrower on such loan.
                  (C) In no event may the borrower submit an 
                application to recover amounts previously 
                collected by the Secretary later than 3 years 
                after the misconduct or breach of contract on 
                behalf of the institution takes place that 
                gives rise to the borrower to assert a defense 
                to repayment of the loan.
                  (D) In no event may anyone other than an 
                administrative law judge or its equivalent 
                preside over hearings of any kind related to 
                applications submitted under this subsection.
                  (E) In no event may the Secretary approve or 
                disapprove the borrower's application under 
                this subsection without allowing for the equal 
                consideration of evidence and arguments 
                presented by a representative on behalf of the 
                student or students and a representative on 
                behalf of the institution, if either such party 
                makes a request.
                  (F) In no event may the Secretary withhold 
                from an institution any materials, facts, or 
                evidence used when processing an application 
                submitted by the borrower.
                  (G) In no event may the borrower of a loan 
                made, insured or guaranteed under this title 
                (other than a loan made under this part or a 
                Federal ONE Loan) submit an application under 
                this subsection without consolidating the loans 
                of the borrower into a Federal ONE 
                Consolidation Loan.
          (2) Borrower application requirements.--
                  (A) In general.--An application submitted by 
                a borrower under this subsection to the 
                Secretary shall--
                          (i) certify the borrower's receipt of 
                        loan proceeds, in whole or in part, to 
                        attend the named institution of higher 
                        education;
                          (ii) provide evidence described in 
                        subparagraph (B) that supports a 
                        borrower defense to repayment of the 
                        loan; and
                          (iii) indicate whether the borrower 
                        has made a claim with respect to the 
                        information underlying the borrower 
                        defense with any third party and, if 
                        so, the amount of any payment received 
                        by the borrower or credited to the 
                        borrower's loan obligation.
                  (B) Evidence.--The borrower has a borrower 
                defense if--
                          (i) the borrower, whether as an 
                        individual or as a member of a class, 
                        or a governmental agency, has obtained 
                        against the institution of higher 
                        education a nondefault, favorable 
                        contested judgment based on State or 
                        Federal law in a court or 
                        administrative tribunal of competent 
                        jurisdiction;
                          (ii) the institution of higher 
                        education for which the borrower 
                        received the loan made under this part 
                        failed to perform its obligations under 
                        the terms of a contract with the 
                        student; or
                          (iii) the institution of higher 
                        education described in clause (ii) or 
                        any of its representatives engaged 
                        directly in marketing, recruitment or 
                        admissions activities, or any other 
                        institution of higher education, 
                        organization, or person with whom such 
                        institution has an agreement to provide 
                        educational programs, or to provide 
                        marketing, advertising, recruiting, or 
                        admissions services, made a substantial 
                        misrepresentation within the meaning of 
                        section 487(c)(3)(B)(i)(II) that the 
                        borrower reasonably relied on when the 
                        borrower decided to attend, or to 
                        continue attending, such institution.
          (3) Secretarial notification requirements.--
                  (A)  receipt of application.--Upon receipt of 
                a borrower's application, the Secretary--
                          (i) if the borrower is not in default 
                        on the loan for which a borrower 
                        defense has been asserted, shall grant 
                        a forbearance and notify the borrower 
                        of the option to decline the 
                        forbearance and to continue making 
                        payments on the loan;
                          (ii) if the borrower is in default on 
                        the loan for which a borrower defense 
                        has been asserted--
                                  (I) shall suspend collection 
                                activity on the loan until the 
                                Secretary issues a decision on 
                                the borrower's claim;
                                  (II) shall notify the 
                                borrower of the suspension of 
                                collection activity and explain 
                                that collection activity will 
                                resume if the Secretary 
                                determines that the borrower 
                                does not qualify for a full 
                                discharge; and
                                  (III) shall notify the 
                                borrower of the option to 
                                continue making payments under 
                                a rehabilitation agreement or 
                                other repayment agreement on 
                                the defaulted loan; and
                          (iii) shall to the extent possible, 
                        notify the institutions against which 
                        the application is filed, which 
                        notification shall include--
                                  (I) the reasons that the 
                                application has been filed; and
                                  (II) the amount of relief 
                                requested.
                  (B) Approved application.--If a borrower's 
                application is approved in full or in part, the 
                Secretary shall--
                          (i) notify the borrower and the 
                        institution in writing of that 
                        determination and of the relief 
                        provided; and
                          (ii) inform the institution of the 
                        opportunity to request a one-time 
                        reconsideration of the claim in the 
                        application if new evidence that was 
                        not previously provided can be 
                        identified.
                  (C) Application not approved.--If a 
                borrower's application is not approved in full 
                or in part, the Secretary--
                          (i) shall notify the borrower and the 
                        institution of the reasons for the 
                        denial, the evidence that was relied 
                        upon, any portion of the loan that is 
                        due and payable to the Secretary, 
                        whether the Secretary will reimburse 
                        any amounts previously collected, and 
                        inform the borrower that the loan will 
                        return to its status prior to the 
                        borrower's submission of the 
                        application; and
                          (ii) shall inform the borrower of the 
                        opportunity to request a one-time 
                        reconsideration of the claim in the 
                        application if new evidence that was 
                        not previously provided can be 
                        identified.
                  (D) Consolidation.--During a proceeding for 
                an individual borrower, the Secretary may 
                consolidate individually-filed applications 
                that have common facts and claims and resolve 
                the borrowers' borrower defense claims for 
                faster processing.
                  (E) New evidence defined.--For purposes of 
                this paragraph, the term ``new evidence'' means 
                relevant evidence that the borrower or the 
                institution did not previously provide and that 
                was not identified in the final decision as 
                evidence that was relied upon for the final 
                decision. If accepted for reconsideration by 
                the Secretary, the Secretary shall follow the 
                procedure under this paragraph.
                  (F) Notification.--After a borrower submits 
                an application, the Secretary shall include in 
                the notification to the borrower--
                          (i) the actions, including deadlines 
                        and document requests, that will be 
                        taken by the Secretary when processing 
                        an application by the borrower; and
                          (ii) that the final action by the 
                        Secretary shall be available for review 
                        under subchapter II of chapter 5, and 
                        chapter 7, of title 5, United States 
                        Code (commonly known as the 
                        ``Administrative Procedure Act'').
                  (G) Timely approval process.--During a 
                proceeding for an individual borrower, the 
                Secretary shall process a submitted application 
                and notify the borrower of the final 
                determination in a manner that is timely and 
                efficient.
                  (H) Report.--Not later than two years after 
                the date of enactment of the PROSPER Act, the 
                Secretary shall submit to the authorizing 
                committees a report that includes--
                          (i) the established policies and 
                        procedures for processing applications;
                          (ii) the established policies and 
                        procedures for approving an 
                        application;
                          (iii) the established policies and 
                        procedures for denying an application;
                          (iv) the method used to calculate the 
                        amount and type of relief to be awarded 
                        to borrowers who submit an application; 
                        and
                          (v) the established timeframes for 
                        the policies and procedures identified 
                        in clauses (i) through (iii).
          (4) Calculation of relief.--The Secretary shall 
        determine the appropriate method for calculating the 
        amount of relief to be awarded to a borrower as a 
        result of a proceeding described in this subsection 
        based on the materials, facts, and evidence presented 
        during the proceeding.
          (5) Further relief.--The Secretary may afford the 
        borrower such further relief as the Secretary 
        determines is appropriate under the circumstances, but 
        which shall not exceed the following:
                  (A) Reimbursing the borrower for amounts paid 
                toward the loan voluntarily or through enforced 
                collection.
                  (B) Restoring eligibility for assistance 
                under this title after determining that the 
                borrower is not in default on the loan.
                  (C) Updating reports to consumer reporting 
                agencies to which the Secretary previously made 
                adverse credit reports with regard to a loan 
                made under this part after July 1, 2018.
          (6) Recovery.--
                  (A) In general.--The Secretary may initiate 
                an appropriate proceeding to require the 
                institution of higher education whose act or 
                omission resulted in the borrower's successful 
                defense against repayment of a loan made under 
                this part to pay to the Secretary the amount of 
                the loan to which the defense applies not later 
                than 3 years from the end of the last award 
                year in which the student attended the 
                institution.
                  (B) Notice.--The Secretary may initiate a 
                proceeding to collect at any time if the 
                institution received notice of the claim before 
                the end of the later of the periods described 
                in subparagraph (A). For purposes of this 
                subparagraph, notice includes receipt of--
                          (i) actual notice from the borrower, 
                        from a representative of the borrower, 
                        or from the Department;
                          (ii) a class action complaint 
                        asserting relief for a class that may 
                        include the borrower; or
                          (iii) written notice, including a 
                        civil investigative demand or other 
                        written demand for information, from a 
                        Federal or State agency that has power 
                        to initiate an investigation into 
                        conduct of the institution of higher 
                        education relating to specific 
                        programs, periods, or practices that 
                        may have affected the borrower.
  (i) Loan Application and Promissory Note.--The common 
financial reporting form required in section 483(a)(1) shall 
constitute the application for loans made under this part 
(other than a Federal Direct PLUS loan). The Secretary shall 
develop, print, and distribute to participating institutions a 
standard promissory note and loan disclosure form.
  (j) Loan Disbursement.--
          (1) In general.--Proceeds of loans to students under 
        this part shall be applied to the student's account for 
        tuition and fees, and, in the case of institutionally 
        owned housing, to room and board. Loan proceeds that 
        remain after the application of the previous sentence 
        shall be delivered to the borrower by check or other 
        means that is payable to and requires the endorsement 
        or other certification by such borrower.
          (2) Payment periods.--The Secretary shall establish 
        periods for the payments described in paragraph (1) in 
        a manner consistent with payment of Federal Pell Grants 
        under subpart 1 of part A of this title.
  (k) Fiscal Control and Fund Accountability.--
          (1) In general.--(A) An institution shall maintain 
        financial records in a manner consistent with records 
        maintained for other programs under this title.
          (B) Except as otherwise required by regulations of 
        the Secretary an institution may maintain loan funds 
        under this part in the same account as other Federal 
        student financial assistance.
          (2) Payments and refunds.--Payments and refunds shall 
        be reconciled in a manner consistent with the manner 
        set forth for the submission of a payment summary 
        report required of institutions participating in the 
        program under subpart 1 of part A, except that nothing 
        in this paragraph shall prevent such reconciliations on 
        a monthly basis.
          (3) Transaction histories.--All transaction histories 
        under this part shall be maintained using the same 
        system designated by the Secretary for the provision of 
        Federal Pell Grants under subpart 1 of part A of this 
        title.
  (l) Armed Forces Student Loan Interest Payment Program.--
          (1) Authority.--Using funds received by transfer to 
        the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest on a loan made 
        under this part to a member of the Armed Forces, the 
        Secretary shall pay the interest on the loan as due for 
        a period not in excess of 36 consecutive months. The 
        Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so 
        transferred.
          (2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the Secretary shall grant the borrower 
        forbearance, in the form of a temporary cessation of 
        all payments on the loan other than the payments of 
        interest on the loan that are made under that 
        paragraph.
  (m) Repayment Plan for Public Service Employees.--
          (1) In general.--The Secretary shall cancel the 
        balance of interest and principal due, in accordance 
        with paragraph (2), on any eligible Federal Direct Loan 
        not in default for a borrower who--
                  (A) has made 120 monthly payments on the 
                eligible Federal Direct Loan after October 1, 
                2007, pursuant to any one or a combination of 
                the following--
                          (i) payments under an income-based 
                        repayment plan under section 493C;
                          (ii) payments under a standard 
                        repayment plan under subsection 
                        (d)(1)(A), based on a 10-year repayment 
                        period;
                          (iii) monthly payments under a 
                        repayment plan under subsection (d)(1) 
                        or (g) of not less than the monthly 
                        amount calculated under subsection 
                        (d)(1)(A), based on a 10-year repayment 
                        period; or
                          (iv) payments under an income 
                        contingent repayment plan under 
                        subsection (d)(1)(D); and
                  (B)(i) is employed in a public service job at 
                the time of such forgiveness; and
                  (ii) has been employed in a public service 
                job during the period in which the borrower 
                makes each of the 120 payments described in 
                subparagraph (A).
          (2) Loan cancellation amount.--After the conclusion 
        of the employment period described in paragraph (1), 
        the Secretary shall cancel the obligation to repay the 
        balance of principal and interest due as of the time of 
        such cancellation, on the eligible Federal Direct Loans 
        made to the borrower under this part.
          (3) Definitions.--In this subsection:
                  (A) Eligible federal direct loan.--The term 
                ``eligible Federal Direct Loan'' means a 
                Federal Direct Stafford Loan, Federal Direct 
                PLUS Loan, or Federal Direct Unsubsidized 
                Stafford Loan, or a Federal Direct 
                Consolidation Loan.
                  (B) Public service job.--The term ``public 
                service job'' means--
                          (i) a full-time job in emergency 
                        management, government (excluding time 
                        served as a member of Congress), 
                        military service, public safety, law 
                        enforcement, public health (including 
                        nurses, nurse practitioners, nurses in 
                        a clinical setting, and full-time 
                        professionals engaged in health care 
                        practitioner occupations and health 
                        care support occupations, as such terms 
                        are defined by the Bureau of Labor 
                        Statistics), public education, social 
                        work in a public child or family 
                        service agency, public interest law 
                        services (including prosecution or 
                        public defense or legal advocacy on 
                        behalf of low-income communities at a 
                        nonprofit organization), early 
                        childhood education (including licensed 
                        or regulated childcare, Head Start, and 
                        State funded prekindergarten), public 
                        service for individuals with 
                        disabilities, public service for the 
                        elderly, public library sciences, 
                        school-based library sciences and other 
                        school-based services, or at an 
                        organization that is described in 
                        section 501(c)(3) of the Internal 
                        Revenue Code of 1986 and exempt from 
                        taxation under section 501(a) of such 
                        Code; or
                          (ii) teaching as a full-time faculty 
                        member at a Tribal College or 
                        University as defined in section 316(b) 
                        and other faculty teaching in high-
                        needs subject areas or areas of 
                        shortage (including nurse faculty, 
                        foreign language faculty, and part-time 
                        faculty at community colleges), as 
                        determined by the Secretary.
          (4) Ineligibility for double benefits.--No borrower 
        may, for the same service, receive a reduction of loan 
        obligations under both this subsection and section 
        428J, 428K, 428L, or 460.
  (n) Identity Fraud Protection.--The Secretary shall take such 
steps as may be necessary to ensure that monthly Federal Direct 
Loan statements and other publications of the Department do not 
contain more than four digits of the Social Security number of 
any individual.
  (o) No Accrual of Interest for Active Duty Service Members.--
          (1) In general.--Notwithstanding any other provision 
        of this part and in accordance with paragraphs (2) and 
        (4), interest shall not accrue for an eligible military 
        borrower on a loan made under this part for which the 
        first disbursement is made on or after October 1, 2008, 
        and before October 1, 2024.
          (2) Consolidation loans.--In the case of any 
        consolidation loan made under this part that is 
        disbursed on or after October 1, 2008, and before 
        October 1, 2024, interest shall not accrue pursuant to 
        this subsection only on such portion of such loan as 
        was used to repay a loan made under this part for which 
        the first disbursement is made on or after October 1, 
        2008, and before October 1, 2024.
          (3) Eligible military borrower.--In this subsection, 
        the term ``eligible military borrower'' means an 
        individual who--
                  (A)(i) is serving on active duty during a war 
                or other military operation or national 
                emergency; or
                  (ii) is performing qualifying National Guard 
                duty during a war or other military operation 
                or national emergency; and
                  (B) is serving in an area of hostilities in 
                which service qualifies for special pay under 
                section 310, or paragraph (1) or (3) of section 
                351(a), of title 37, United States Code.
          (4) Limitation.--An individual who qualifies as an 
        eligible military borrower under this subsection may 
        receive the benefit of this subsection for not more 
        than 60 months.
  [(p) Disclosures.--Each institution of higher education with 
which the Secretary has an agreement under section 453, and 
each contractor with which the Secretary has a contract under 
section 456, shall, with respect to loans under this part and 
in accordance with such regulations as the Secretary shall 
prescribe, comply with each of the requirements under section 
433 that apply to a lender with respect to a loan under part 
B.]
  (p) Disclosures.--
          (1) In general.--The Secretary shall, with respect to 
        loans under this part and in accordance with such 
        regulations as the Secretary shall prescribe, comply 
        with each of the requirements under section 433 that 
        apply to a lender with respect to a loan under part B.
          (2) Plain language disclosure form.--
                  (A) Development and issuance of form.--Not 
                later than 24 months after the date of the 
                enactment of this paragraph, the Secretary 
                shall, based on consumer testing, develop and 
                issue a model form to be known as the ``Plain 
                Language Disclosure Form'' that shall be used 
                by the Secretary to comply with paragraph (1).
                  (B) Format.--The Secretary shall ensure that 
                the Plain Language Disclosure Form--
                          (i) enables borrowers to easily 
                        identify the information required to be 
                        disclosed under section 433(a) with 
                        respect to a loan, with emphasis on the 
                        loan terms determined by the Secretary, 
                        based on consumer testing, to be 
                        critical to understanding the total 
                        costs of the loan and the estimated 
                        monthly repayment;
                          (ii) has a clear format and design, 
                        including easily readable font; and
                          (iii) is as succinct as practicable.
                  (C) Consultation.--In developing Plain 
                Language Disclosure Form, the Secretary shall, 
                as appropriate, consult with--
                          (i) the Federal Reserve Board;
                          (ii) borrowers of loans under this 
                        part; and
                          (iii) other organizations involved in 
                        the provision of financial assistance 
                        to students, as identified by the 
                        Secretary.
          (3) Electronic system for compliance.--In carrying 
        out paragraph (2), Secretary shall develop and 
        implement an electronic system to generate a Plain 
        Language Disclosure Form for each borrower that 
        includes personalized information about the borrower 
        and the borrower's loans.
          (4) Limit on liability.--Nothing in this subsection 
        shall be construed to create a private right of action 
        against the Secretary with respect to the form or 
        electronic system developed under this paragraph.
          (5) Borrower signature required.--Beginning after the 
        issuance of the Plain Language Disclosure Form by the 
        Secretary under paragraph (2), a loan may not be issued 
        to a borrower under this part unless the borrower 
        acknowledges to the Secretary, in writing (which may 
        include an electronic signature), that the borrower has 
        read the Plain Language Disclosure Form for the loan 
        concerned.
          (6) Consumer testing defined.--In this subsection, 
        the term ``consumer testing'' means the solicitation of 
        feedback from individuals, including borrowers and 
        prospective borrowers of loans under this part (as 
        determined by the Secretary), about the usefulness of 
        different methods of disclosing material terms of loans 
        on the Plain Language Disclosure Form to maximize 
        borrowers' understanding of the terms and conditions of 
        such loans.
  (q) Eligibility For, and Interest Charges On, Federal Direct 
Stafford Loans for New Borrowers on or After July 1, 2013.--
          (1) In general.--Notwithstanding subsection (a) or 
        any other provision of this title, any borrower who was 
        a new borrower on or after July 1, 2013, shall not be 
        eligible for a Federal Direct Stafford Loan if the 
        period of time for which the borrower has received 
        Federal Direct Stafford Loans, in the aggregate, 
        exceeds the period of enrollment described in paragraph 
        (3). Such borrower may still receive any Federal Direct 
        Unsubsidized Stafford Loan for which such borrower is 
        otherwise eligible.
          (2) Accrual of interest on federal direct stafford 
        loans.--Notwithstanding subsection (f)(1)(A) or any 
        other provision of this title and beginning on the date 
        upon which a borrower who is enrolled in a program of 
        education or training (including a course of study or 
        program described in paragraph (3)(B) or (4)(B) of 
        section 484(b)) for which borrowers are otherwise 
        eligible to receive Federal Direct Stafford Loans, 
        becomes ineligible for such loan as a result of 
        paragraph (1), interest on all Federal Direct Stafford 
        Loans that were disbursed to such borrower on or after 
        July 1, 2013, shall accrue. Such interest shall be paid 
        or capitalized in the same manner as interest on a 
        Federal Direct Unsubsidized Stafford Loan is paid or 
        capitalized under section 428H(e)(2).
          (3) Period of enrollment.--
                  (A) In general.--The aggregate period of 
                enrollment referred to in paragraph (1) shall 
                not exceed the lesser of--
                          (i) a period equal to 150 percent of 
                        the published length of the educational 
                        program in which the student is 
                        enrolled; or
                          (ii) in the case of a borrower who 
                        was previously enrolled in one or more 
                        other educational programs that began 
                        on or after July 1, 2013, and subject 
                        to subparagraph (B), a period of time 
                        equal to the difference between--
                                  (I) 150 percent of the 
                                published length of the longest 
                                educational program in which 
                                the borrower was, or is, 
                                enrolled; and
                                  (II) any periods of 
                                enrollment in which the 
                                borrower received a Federal 
                                Direct Stafford Loan.
                  (B) Regulations.--The Secretary shall specify 
                in regulation--
                          (i) how the aggregate period 
                        described in subparagraph (A) shall be 
                        calculated with respect to a borrower 
                        who was or is enrolled on less than a 
                        full-time basis; and
                          (ii) how such aggregate period shall 
                        be calculated to include a course of 
                        study or program described in paragraph 
                        (3)(B) or (4)(B) of section 484(b), 
                        respectively.

[SEC. 456. CONTRACTS.

  [(a) Contracts for Supplies and Services.--
          [(1) In general.--The Secretary shall, to the extent 
        practicable, award contracts for origination, 
        servicing, and collection described in subsection (b). 
        In awarding such contracts, the Secretary shall ensure 
        that such services and supplies are provided at 
        competitive prices.
          [(2) Entities.--The entities with which the Secretary 
        may enter into contracts shall include only entities 
        which the Secretary determines are qualified to provide 
        such services and supplies and will comply with the 
        procedures applicable to the award of such contracts. 
        In the case of awarding contracts for the origination, 
        servicing, and collection of loans under this part, the 
        Secretary shall enter into contracts only with entities 
        that have extensive and relevant experience and 
        demonstrated effectiveness. The entities with which the 
        Secretary may enter into such contracts shall include, 
        where practicable, agencies with agreements with the 
        Secretary under sections 428(b) and (c), if such 
        agencies meet the qualifications as determined by the 
        Secretary under this subsection and if those agencies 
        have such experience and demonstrated effectiveness. In 
        awarding contracts to such State agencies, the 
        Secretary shall, to the extent practicable and 
        consistent with the purposes of this part, give special 
        consideration to State agencies with a history of high 
        quality performance to perform services for 
        institutions of higher education within their State.
          [(3) Rule of construction.--Nothing in this section 
        shall be construed as a limitation of the authority of 
        any State agency to enter into an agreement for the 
        purposes of this section as a member of a consortium of 
        State agencies.
  [(b) Contracts for Origination, Servicing, and Data 
Systems.--The Secretary may enter into contracts for--
          [(1) the alternative origination of loans to students 
        attending institutions of higher education with 
        agreements to participate in the program under this 
        part (or their parents), if such institutions do not 
        have agreements with the Secretary under section 
        454(b);
          [(2) the servicing and collection of loans made or 
        purchased under this part;
          [(3) the establishment and operation of 1 or more 
        data systems for the maintenance of records on all 
        loans made or purchased under this part; and
          [(4) such other aspects of the direct student loan 
        program as the Secretary determines are necessary to 
        ensure the successful operation of the program.]

           *       *       *       *       *       *       *


SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.

  (a) Administrative Expenses.--
          (1) Mandatory funds for fiscal year 2006.--For fiscal 
        year 2006, there shall be available to the Secretary, 
        from funds not otherwise appropriated, funds to be 
        obligated for--
                  (A) administrative costs under this part and 
                part B, including the costs of the direct 
                student loan programs under this part; and
                  (B) account maintenance fees payable to 
                guaranty agencies under part B and calculated 
                in accordance with subsections (b) and (c),
        not to exceed (from such funds not otherwise 
        appropriated) $820,000,000 in fiscal year 2006.
          (3) Authorization for administrative costs beginning 
        in fiscal years [2007] 2019 through [2014] 2024.--For 
        each of the fiscal years [2007] 2019 through [2014] 
        2024, there are authorized to be appropriated such sums 
        as may be necessary for administrative costs under this 
        [part and part B, including the costs of the direct 
        student loan programs under this part] title.
          (4) Continuing mandatory funds for account 
        maintenance fees.--For each of the fiscal years 2007 
        through [2017] 2024, there shall be available to the 
        Secretary, from funds not otherwise appropriated, funds 
        to be obligated for account maintenance fees payable to 
        guaranty agencies under part B and calculated in 
        accordance with subsection (b).
          (5) Account maintenance fees.--Account maintenance 
        fees under paragraph (3) shall be paid quarterly and 
        deposited in the Agency Operating Fund established 
        under section 422B.
          (6) Technical assistance to institutions of higher 
        education.--
                  (A) Provision of assistance.--The Secretary 
                shall provide institutions of higher education 
                participating, or seeking to participate, in 
                the loan programs under this part with 
                technical assistance in establishing and 
                administering such programs.
                  (B) Funds.--There are authorized to be 
                appropriated, and there are appropriated, to 
                carry out this paragraph (in addition to any 
                other amounts appropriated to carry out this 
                paragraph and out of any money in the Treasury 
                not otherwise appropriated), $50,000,000 for 
                fiscal year [2010] 2019.
                  (C) Definition.--In this paragraph, the term 
                ``assistance'' means the provision of technical 
                support, [training] education, materials, 
                technical assistance, and financial assistance.
          [(7) Additional payments.--
                  [(A) Provision of assistance.--The Secretary 
                shall provide payments to loan servicers for 
                retaining jobs at locations in the United 
                States where such servicers were operating 
                under part B on January 1, 2010.
                  [(B) Funds.--There are authorized to be 
                appropriated, and there are appropriated, to 
                carry out this paragraph (in addition to any 
                other amounts appropriated to carry out this 
                paragraph and out of any money in the Treasury 
                not otherwise appropriated), $25,000,000 for 
                each of the fiscal years 2010 and 2011.]
          [(8)] (7) Carryover.--The Secretary may carry over 
        funds made available under this section to a subsequent 
        fiscal year.
  (b) Calculation Basis.--Account maintenance fees payable to 
guaranty agencies under subsection (a)(4) shall be calculated 
on the basis of 0.06 percent of the original principal amount 
of outstanding loans on which insurance was issued under part 
B.
  (c) Budget Justification.--No funds may be expended under 
this section unless the Secretary includes in the Department of 
Education's annual budget justification to Congress a detailed 
description of the specific activities for which the funds made 
available by this section have been used in the prior and 
current years (if applicable), the activities and costs planned 
for the budget year, and the projection of activities and costs 
for each remaining year for which administrative expenses under 
this section are made available.

           *       *       *       *       *       *       *


SEC. 460. LOAN CANCELLATION FOR TEACHERS.

  (a) Statement of Purpose.--It is the purpose of this section 
to encourage individuals to enter and continue in the teaching 
profession.
  (b) Program Authorized.--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--
          (1) has been employed as a full-time teacher for 5 
        consecutive complete school years--
                  (A) in a school or location [that qualifies 
                under section 465(a)(2)(A) for loan 
                cancellation for Perkins loan recipients who 
                teach in such schools or locations] described 
                in section 420N(b)(1)(B); and
                  (B) 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
          (2) is not in default on a loan for which the 
        borrower seeks forgiveness.
  (c) Qualified Loan Amounts.--
          (1) In general.--The Secretary shall cancel not more 
        than $5,000 in the aggregate of the loan obligation on 
        a Federal Direct Stafford Loan or a Federal Direct 
        Unsubsidized Stafford Loan that is outstanding after 
        the completion of the fifth complete school year of 
        teaching described in subsection (b)(1). No borrower 
        may receive a reduction of loan obligations under both 
        this section and section 428J.
          (2) Treatment of consolidation loans.--A loan amount 
        for a Federal Direct Consolidation Loan may be a 
        qualified loan amount for the purposes of this 
        subsection only to the extent that such loan amount was 
        used to repay a Federal Direct Stafford Loan, a Federal 
        Direct Unsubsidized Stafford Loan, or a loan made under 
        section 428 or 428H, for a borrower who meets the 
        requirements of subsection (b), as determined in 
        accordance with regulations prescribed by the 
        Secretary.
          (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) who meets the requirements of 
                        subsection (b); and
                          (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) who meets the requirements of 
                        subsection (b);
                          (ii) whose qualifying employment for 
                        purposes of such subsection is as a 
                        special education teacher whose primary 
                        responsibility is to provide special 
                        education to children with disabilities 
                        (as those terms are defined in section 
                        602 of the Individuals with 
                        Disabilities Education Act); and
                          (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, or, in the case of a 
                        teacher who is employed by an 
                        educational service agency, as 
                        certified by the chief administrative 
                        officer of such agency, 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.
  (d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of 
this section.
  (e) Construction.--Nothing in this section shall be construed 
to authorize any refunding of any canceled loan.
  (f) List.--If the list of schools in which a teacher may 
perform service pursuant to subsection (b) is not available 
before May 1 of any year, the Secretary may use the list for 
the year preceding the year for which the determination is made 
to make such service determination.
  (g) Additional Eligibility Provisions.--
          (1) Continued eligibility.--Any teacher who performs 
        service in a school that--
                  (A) meets the requirements of subsection 
                (b)(1)(A) in any year during such service; and
                  (B) in a subsequent year fails to meet the 
                requirements of such subsection, may continue 
                to teach in such school and shall be eligible 
                for loan cancellation pursuant to subsection 
                (b).
          (2) Prevention of double benefits.--No borrower may, 
        for the same voluntary service, receive a benefit under 
        both this section and--
                  (A) section 428K;
                  (B) section 455(m); or
                  (C) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12601 
                et seq.).
          (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 (b)(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 shall 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 shall equal or exceed the average 
        passing score of those 5 States.
  (h) Definition.--For the purpose of this section, the term 
``year'' where applied to service as a teacher means an 
academic year as defined by the Secretary.

        Part E--[Federal Perkins Loans] FEDERAL ONE LOAN PROGRAM

[SEC. 461. APPROPRIATIONS AUTHORIZED.

  [(a) Program Authority.--The Secretary shall carry out a 
program assisting in the maintenance of funds at institutions 
of higher education for the making of loans to undergraduate 
students in need to pursue their courses of study in such 
institutions or while engaged in programs of study abroad 
approved for credit by such institutions. Loans made under this 
part shall be known as ``Federal Perkins Loans''.
  [(b) Authority to Make Loans.--
          [(1) In general.--
                  [(A) Loans for new undergraduate federal 
                perkins loan borrowers.--Through September 30, 
                2017, an institution of higher education may 
                make a loan under this part to an eligible 
                undergraduate student who, on the date of 
                disbursement of a loan made under this part, 
                has no outstanding balance of principal or 
                interest on a loan made under this part from 
                the student loan fund established under this 
                part by the institution, but only if the 
                institution has awarded all Federal Direct 
                Loans, as referenced under subparagraphs (A) 
                and (D) of section 455(a)(2), for which such 
                undergraduate student is eligible.
                  [(B) Loans for current undergraduate federal 
                perkins loan borrowers.--Through September 30, 
                2017, an institution of higher education may 
                make a loan under this part to an eligible 
                undergraduate student who, on the date of 
                disbursement of a loan made under this part, 
                has an outstanding balance of principal or 
                interest on a loan made under this part from 
                the student loan fund established under this 
                part by the institution, but only if the 
                institution has awarded all Federal Direct 
                Stafford Loans as referenced under section 
                455(a)(2)(A) for which such undergraduate 
                student is eligible.
                  [(C) Loans for certain graduate borrowers.--
                Through September 30, 2016, with respect to an 
                eligible graduate student who has received a 
                loan made under this part prior to October 1, 
                2015, an institution of higher education that 
                has most recently made such a loan to the 
                student for an academic program at such 
                institution may continue making loans under 
                this part from the student loan fund 
                established under this part by the institution 
                to enable the student to continue or complete 
                such academic program.
          [(2) No additional loans.--An institution of higher 
        education shall not make loans under this part after 
        September 30, 2017.
          [(3) Prohibition on additional appropriations.--No 
        funds are authorized to be appropriated under this Act 
        or any other Act to carry out the functions described 
        in paragraph (1) for any fiscal year following fiscal 
        year 2015.

[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).
  [(b) Allocation of Excess Based on Share of Excess Eligible 
Amounts.--(1) From the remainder of the amount appropriated 
pursuant to section 461(b) after making the allocations 
required by subsection (a) of this section, the Secretary shall 
allocate to each eligible institution which has an excess 
eligible amount an amount which bears the same ratio to such 
remainder as such excess eligible amount bears to the sum of 
the excess eligible amounts of all such eligible institutions 
(having such excess eligible amounts).
  [(2) For any eligible institution, the excess eligible amount 
is the amount, if any, by which--
          [(A)(i) that institution's eligible amount (as 
        determined under paragraph (3)), divided by (ii) the 
        sum of the eligible amounts of all institutions (as so 
        determined), multiplied by (iii) the amount 
        appropriated pursuant to section 461(b) for the fiscal 
        year; exceeds
          [(B) the amount required to be allocated to that 
        institution under subsection (a),
except that an eligible institution which has a cohort default 
rate in excess of the applicable maximum cohort default rate 
under subsection (f) may not receive an allocation under this 
paragraph.
  [(3) For any eligible institution, the eligible amount of 
that institution is equal to--
          [(A) the amount of the institution's self-help need, 
        as determined under subsection (c); minus
          [(B) the institution's anticipated collections; 
        multiplied by
          [(C) 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 eligible amount of that institution is 
zero.
  [(c) Determination of Institution's Self-Help Need.--(1) The 
amount of an institution's self-help need is equal to the sum 
of the self-help need of the institution's eligible 
undergraduate students and the self-help need of the 
institution's eligible graduate and professional students.
  [(2) To determine the self-help need of an institution's 
eligible undergraduate students, the Secretary shall--
          [(A) establish various income categories for 
        dependent and independent undergraduate students;
          [(B) establish an expected family contribution for 
        each income category of dependent and independent 
        undergraduate students, determined on the basis of the 
        average expected family contribution (computed in 
        accordance with part F of this title) of a 
        representative sample within each income category for 
        the second preceding fiscal year;
          [(C) compute 25 percent of the average cost of 
        attendance for all undergraduate students;
          [(D) multiply the number of eligible dependent 
        students in each income category by the lesser of--
                  [(i) 25 percent of the average cost of 
                attendance for all undergraduate students 
                determined under subparagraph (C); or
                  [(ii) the average cost of attendance for all 
                undergraduate students minus the expected 
                family contribution determined under 
                subparagraph (B) for that income category, 
                except that the amount computed by such 
                subtraction shall not be less than zero;
          [(E) add the amounts determined under subparagraph 
        (D) for each income category of dependent students;
          [(F) multiply the number of eligible independent 
        students in each income category by the lesser of--
                  [(i) 25 percent of the average cost of 
                attendance for all undergraduate students 
                determined under subparagraph (C); or
                  [(ii) the average cost of attendance for all 
                undergraduate students minus the expected 
                family contribution determined under 
                subparagraph (B) for that income category, 
                except that the amount computed by such 
                subtraction for any income category shall not 
                be less than zero;
          [(G) add the amounts determined under subparagraph 
        (F) for each income category of independent students; 
        and
          [(H) add the amounts determined under subparagraphs 
        (E) and (G).
  [(3) To determine the self-help need of an institution's 
eligible graduate and professional students, the Secretary 
shall--
          [(A) establish various income categories for graduate 
        and professional students;
          [(B) establish an expected family contribution for 
        each income category of graduate and professional 
        students, determined on the basis of the average 
        expected family contribution (computed in accordance 
        with part F of this title) of a representative sample 
        within each income category for the second preceding 
        fiscal year;
          [(C) determine the average cost of attendance for all 
        graduate and professional students;
          [(D) subtract from the average cost of attendance for 
        all graduate and professional students (determined 
        under subparagraph (C)), the expected family 
        contribution (determined under subparagraph (B)) for 
        each income category, except that the amount computed 
        by such subtraction for any income category shall not 
        be less than zero;
          [(E) multiply the amounts determined under 
        subparagraph (D) by the number of eligible students in 
        each category;
          [(F) add the amounts determined under subparagraph 
        (E) for each income category.
  [(4)(A) For purposes of paragraphs (2) and (3), the term 
``average cost of attendance'' means the average of the 
attendance costs for undergraduate students and for graduate 
and professional students, which shall include (i) tuition and 
fees determined in accordance with subparagraph (B), (ii) 
standard living expenses determined in accordance with 
subparagraph (C), and (iii) books and supplies determined in 
accordance with subparagraph (D).
  [(B) The average undergraduate and graduate and professional 
tuition and fees described in subparagraph (A)(i) shall be 
computed on the basis of information reported by the 
institution to the Secretary, which shall include (i) total 
revenue received by the institution from undergraduate and 
graduate tuition and fees for the second year preceding the 
year for which it is applying for an allocation, and (ii) the 
institution's enrollment for such second preceding year.
  [(C) The standard living expense described in subparagraph 
(A)(ii) is equal to 150 percent of the difference between the 
income protection allowance for a family of five with one in 
college and the income protection allowance for a family of six 
with one in college for a single independent student.
  [(D) The allowance for books and supplies described in 
subparagraph (A)(iii) is equal to $600.
  [(d) Anticipated Collections.--(1) An institution's 
anticipated collections are equal to the amount which was 
collected during the second year preceding the beginning of the 
award period, multiplied by 1.21.
  [(2) The Secretary shall establish an appeals process by 
which the anticipated collections required in paragraph (1) may 
be waived for institutions with low cohort default rates in the 
program assisted under this part.
  [(e) Default Penalties.--
          [(1) Years preceding fiscal year 2000.--For any 
        fiscal year preceding fiscal year 2000, any institution 
        with a cohort default rate that--
                  [(A) equals or exceeds 15 percent, shall 
                establish a default reduction plan pursuant to 
                regulations prescribed by the Secretary, except 
                that such plan shall not be required with 
                respect to an institution that has a default 
                rate of less than 20 percent and that has less 
                than 100 students who have loans under this 
                part in such academic year;
                  [(B) equals or exceeds 20 percent, but is 
                less than 25 percent, shall have a default 
                penalty of 0.9;
                  [(C) equals or exceeds 25 percent, but is 
                less than 30 percent, shall have a default 
                penalty of 0.7; and
                  [(D) equals or exceeds 30 percent shall have 
                a default penalty of zero.
          [(2) Years following fiscal year 2000.--For fiscal 
        year 2000 and any succeeding fiscal year, any 
        institution with a cohort default rate (as defined 
        under subsection (g)) that equals or exceeds 25 percent 
        shall have a default penalty of zero.
          [(3) Ineligibility.--
                  [(A) In general.--For fiscal year 2000 and 
                any succeeding fiscal year, any institution 
                with a cohort default rate (as defined in 
                subsection (g)) that equals or exceeds 50 
                percent for each of the 3 most recent years for 
                which data are available shall not be eligible 
                to participate in a program under this part for 
                the fiscal year for which the determination is 
                made and the 2 succeeding fiscal years, unless, 
                within 30 days of receiving notification from 
                the Secretary of the loss of eligibility under 
                this paragraph, the institution appeals the 
                loss of eligibility to the Secretary. The 
                Secretary shall issue a decision on any such 
                appeal within 45 days after the submission of 
                the appeal. Such decision may permit the 
                institution to continue to participate in a 
                program under this part if--
                          [(i) the institution demonstrates to 
                        the satisfaction of the Secretary that 
                        the calculation of the institution's 
                        cohort default rate is not accurate, 
                        and that recalculation would reduce the 
                        institution's cohort default rate for 
                        any of the 3 fiscal years below 50 
                        percent; or
                          [(ii) there are, in the judgment of 
                        the Secretary, such a small number of 
                        borrowers entering repayment that the 
                        application of this subparagraph would 
                        be inequitable.
                  [(B) Continued participation.--During an 
                appeal under subparagraph (A), the Secretary 
                may permit the institution to continue to 
                participate in a program under this part.
                  [(C) Return of funds.--Within 90 days after 
                the date of any termination pursuant to 
                subparagraph (A), or the conclusion of any 
                appeal pursuant to subparagraph (B), whichever 
                is later, the balance of the student loan fund 
                established under this part by the institution 
                that is the subject of the termination shall be 
                distributed as follows:
                          [(i) The Secretary shall first be 
                        paid an amount which bears the same 
                        ratio to such balance (as of the date 
                        of such distribution) as the total 
                        amount of Federal capital contributions 
                        to such fund by the Secretary under 
                        this part bears to the sum of such 
                        Federal capital contributions and the 
                        capital contributions to such fund made 
                        by the institution.
                          [(ii) The remainder of such student 
                        loan fund shall be paid to the 
                        institution.
                  [(D) Use of returned funds.--Any funds 
                returned to the Secretary under this paragraph 
                shall be reallocated to institutions of higher 
                education pursuant to subsection (i).
                  [(E) Definition.--For the purposes of 
                subparagraph (A), the term ``loss of 
                eligibility'' shall be defined as the mandatory 
                liquidation of an institution's student loan 
                fund, and assignment of the institution's 
                outstanding loan portfolio to the Secretary.
  [(f) Applicable Maximum Cohort Default Rate.--
          [(1) Award years prior to 2000.--For award years 
        prior to award year 2000, the applicable maximum cohort 
        default rate is 30 percent.
          [(2) Award year 2000 and succeeding award years.--For 
        award year 2000 and subsequent years, the applicable 
        maximum cohort default rate is 25 percent.
  [(g) Definition of Cohort Default Rate.--
          [(1)(A) The term ``cohort default rate'' means, for 
        any award year in which 30 or more current and former 
        students at the institution enter repayment on loans 
        under this part (received for attendance at the 
        institution), the percentage of those current and 
        former students who enter repayment on such loans 
        (received for attendance at that institution) in that 
        award year who default before the end of the following 
        award year.
          [(B) For any award year in which less than 30 of the 
        institution's current and former students enter 
        repayment, the term ``cohort default rate'' means the 
        percentage of such current and former students who 
        entered repayment on such loans in any of the three 
        most recent award years and who default before the end 
        of the award year immediately following the year in 
        which they entered repayment.
          [(C) A loan on which a payment is made by the 
        institution of higher education, its owner, agency, 
        contractor, employee, or any other entity or individual 
        affiliated with such institution, in order to avoid 
        default by the borrower, is considered as in default 
        for the purposes of this subsection.
          [(D) In the case of a student who has attended and 
        borrowed at more than one school, the student (and his 
        or her subsequent repayment or default) is attributed 
        to the school for attendance at which the student 
        received the loan that entered repayment in the award 
        year.
          [(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 
                        payments;
                          [(II) voluntarily made all payments 
                        currently due;
                          [(III) repaid in full the amount due 
                        on the 
                        loan; or
                          [(IV) received a deferment or 
                        forbearance, based on a condition that 
                        began prior to such time periods;
                  [(ii) any loan which has, after the time 
                periods specified in paragraph (2), been 
                rehabilitated or canceled; and
                  [(iii) any other loan that the Secretary 
                determines should be excluded from such 
                determination.
          [(F) The Secretary shall prescribe regulations 
        designed to prevent an institution from evading the 
        application to that institution of a cohort default 
        rate determination under this subsection through the 
        use of such measures as branching, consolidation, 
        change of ownership or control or other means as 
        determined by the Secretary.
          [(2) For purposes of calculating the cohort default 
        rate under this subsection, a loan shall be considered 
        to be in default--
                  [(A) 240 days (in the case of a loan 
                repayable monthly), or
                  [(B) 270 days (in the case of a loan 
                repayable quarterly),
        after the borrower fails to make an installment payment 
        when due or to comply with other terms of the 
        promissory note.
  [(h) Filing Deadlines.--The Secretary shall, from time to 
time, set dates before which institutions must file 
applications for allocations under this part.
  [(i) Reallocation of Excess Allocations.--
          [(1) In general.--(A) If an institution of higher 
        education returns to the Secretary any portion of the 
        sums allocated to such institution under this section 
        for any fiscal year, the Secretary shall reallocate 80 
        percent of such returned portions to participating 
        institutions in an amount not to exceed such 
        participating institution's excess eligible amounts as 
        determined under paragraph (2).
          [(B) For the purpose of this subsection, the term 
        ``participating institution'' means an institution of 
        higher education that--
                  [(i) was a participant in the program 
                assisted under this part in fiscal year 1999; 
                and
                  [(ii) did not receive an allocation under 
                subsection (a) in the fiscal year for which the 
                reallocation determination is made.
          [(2) Excess eligible amount.--For any participating 
        institution, the excess eligible amount is the amount, 
        if any, by which--
                  [(A)(i) that institution's eligible amount 
                (as determined under subsection (b)(3)), 
                divided by (ii) the sum of the eligible amounts 
                of all participating institutions (as 
                determined under paragraph (3)), multiplied by 
                (iii) the amount of funds available for 
                reallocation under this subsection; exceeds
                  [(B) the amount required to be allocated to 
                that institution under subsection (b).
          [(3) Remainder.--The Secretary shall reallocate the 
        remainder of such returned portions in accordance with 
        regulations of the Secretary.
          [(4) Allocation reductions.--If under paragraph (1) 
        of this subsection an institution returns more than 10 
        percent of its allocation, the institution's allocation 
        for the next fiscal year shall be reduced by the amount 
        returned. The Secretary may waive this paragraph for a 
        specific institution if the Secretary finds that 
        enforcing it is contrary to the interest of the 
        program.

[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) provide for the establishment and maintenance of 
        a student loan fund for the purpose of this part;
          [(2) provide for the deposit in such fund of--
                  [(A) Federal capital contributions from funds 
                appropriated under section 461;
                  [(B) a capital contribution by an institution 
                in an amount equal to one-third of the Federal 
                capital contributions described in subparagraph 
                (A);
                  [(C) collections of principal and interest on 
                student loans made from deposited funds;
                  [(D) charges collected pursuant to 
                regulations under section 464(c)(1)(H); and
                  [(E) any other earnings of the funds;
          [(3) provide that such student loan fund shall be 
        used only for--
                  [(A) loans to students, in accordance with 
                the provisions of this part;
                  [(B) administrative expenses, as provided in 
                subsection (b);
                  [(C) capital distributions, as provided in 
                section 466; and
                  [(D) costs of litigation, and other 
                collection costs agreed to by the Secretary in 
                connection with the collection of a loan from 
                the fund (and interest thereon) or a charge 
                assessed pursuant to regulations under section 
                464(c)(1)(H);
          [(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--
                          [(i) require the institution to 
                        assign such note or agreement to the 
                        Secretary, without recompense; and
                          [(ii) apportion any sums collected on 
                        such a loan, less an amount not to 
                        exceed 30 percent of any sums collected 
                        to cover the Secretary's collection 
                        costs, among other institutions in 
                        accordance with section 462; or
                  [(B) if the institution is not one described 
                in subparagraph (A), the Secretary may allow 
                such institution to refer such note or 
                agreement to the Secretary, without recompense, 
                except that, once every six months, any sums 
                collected on such a loan (less an amount not to 
                exceed 30 percent of any such sums collected to 
                cover the Secretary's collection costs) shall 
                be repaid to such institution and treated as an 
                additional capital contribution under section 
                462;
          [(5) provide that, if an institution of higher 
        education determines not to service and collect student 
        loans made available from funds under this part, the 
        institution will assign, at the beginning of the 
        repayment period, notes or evidence of obligations of 
        student loans made from such funds to the Secretary and 
        the Secretary shall apportion any sums collected on 
        such notes or obligations (less an amount not to exceed 
        30 percent of any such sums collected to cover that 
        Secretary's collection costs) among other institutions 
        in accordance with section 462;
          [(6) provide that, notwithstanding any other 
        provision of law, the Secretary will provide to the 
        institution any information with respect to the names 
        and addresses of borrowers or other relevant 
        information which is available to the Secretary, from 
        whatever source such information may be derived;
          [(7) provide assurances that the institution will 
        comply with the provisions of section 463A;
          [(8) provide that the institution of higher education 
        will make loans first to students with exceptional 
        need; and
          [(9) include such other reasonable provisions as may 
        be necessary to protect the United States from 
        unreasonable risk of loss and as are agreed to by the 
        Secretary and the institution, except that nothing in 
        this paragraph shall be construed to permit the 
        Secretary to require the assignment of loans to the 
        Secretary other than as is provided for in paragraphs 
        (4) and (5).
  [(b) Administrative Expenses.--An institution which has 
entered into an agreement under subsection (a) shall be 
entitled, for each fiscal year during which it makes student 
loans from a student loan fund established under such 
agreement, to a payment in lieu of reimbursement for its 
expenses in administering its student loan program under this 
part during such year. Such payment shall be made in accordance 
with section 489.
  [(c) Cooperative Agreements With Consumer Reporting 
Agencies.--(1) For the purpose of promoting responsible 
repayment of loans made pursuant to this part, the Secretary 
and each institution of higher education participating in the 
program under this part shall enter into cooperative agreements 
with consumer reporting agencies to provide for the exchange of 
information concerning student borrowers concerning whom the 
Secretary has received a referral pursuant to section 467 and 
regarding loans held by the Secretary or an institution.
  [(2) Each cooperative agreement made pursuant to paragraph 
(1) shall be made in accordance with the requirements of 
section 430A except that such agreement shall provide for the 
disclosure by the Secretary or an institution, as the case may 
be, to such consumer reporting agencies, with respect to any 
loan held by the Secretary or the institution, respectively, 
of--
          [(A) the date of disbursement and the amount of such 
        loans made to any borrower under this part at the time 
        of disbursement of the loan;
          [(B) information concerning the repayment and 
        collection of any such loan, including information 
        concerning the status of such loan; and
          [(C) the date of cancellation of the note upon 
        completion of repayment by the borrower of any such 
        loan, or upon cancellation or discharge of the 
        borrower's obligation on the loan for any reason.
  [(3) Notwithstanding paragraphs (4) and (5) of subsection (a) 
of section 605 of the Fair Credit Reporting Act (15 U.S.C. 
1681c (a)(4), (a)(5)), a consumer reporting agency may make a 
report containing information received from the Secretary or an 
institution regarding the status of a borrower's account on a 
loan made under this part until the loan is paid in full.
  [(4)(A) Except as provided in subparagraph (B), an 
institution of higher education, after consultation with the 
Secretary and pursuant to the agreements entered into under 
paragraph (1), shall disclose at least annually to any consumer 
reporting agency with which the Secretary has such an agreement 
the information set forth in paragraph (2), and shall disclose 
promptly to such consumer reporting agency any changes to the 
information previously disclosed.
  [(B) The Secretary may promulgate regulations establishing 
criteria under which an institution of higher education may 
cease reporting the information described in paragraph (2) 
before a loan is paid in full.
  [(5) Each institution of higher education shall notify the 
appropriate consumer reporting agencies whenever a borrower of 
a loan that is made and held by the institution and that is in 
default makes 6 consecutive monthly payments on such loan, for 
the purpose of encouraging such consumer reporting agencies to 
update the status of information maintained with respect to 
that borrower.
  [(d) Limitation on Use of Interest Bearing Accounts.--In 
carrying out the provisions of subsection (a)(9), the Secretary 
may not require that any collection agency, collection 
attorney, or loan servicer collecting loans made under this 
part deposit amounts collected on such loans in interest 
bearing accounts, unless such agency, attorney, or servicer 
holds such amounts for more than 45 days.
  [(e) Special Due Diligence Rule.--In carrying out the 
provisions of subsection (a)(5) relating to due diligence, the 
Secretary shall make every effort to ensure that institutions 
of higher education may use Internal Revenue Service skip-
tracing collection procedures on loans made under this part.

[SEC. 463A. STUDENT LOAN INFORMATION BY ELIGIBLE INSTITUTIONS.

  [(a) Disclosure Required Prior to Disbursement.--Each 
institution of higher education shall, at or prior to the time 
such institution makes a loan to a student borrower which is 
made under this part, provide thorough and adequate loan 
information on such loan to the student borrower. Any 
disclosure required by this subsection may be made by an 
institution of higher education as part of the written 
application material provided to the borrower, or as part of 
the promissory note evidencing the loan, or on a separate 
written form provided to the borrower. The disclosures shall 
include--
          [(1) the name of the institution of higher education, 
        and the address to which communications and payments 
        should be sent;
          [(2) the principal amount of the loan;
          [(3) the amount of any charges collected by the 
        institution at or prior to the disbursal of the loan 
        and whether such charges are deducted from the proceeds 
        of the loan or paid separately by the borrower;
          [(4) the stated interest rate on the loan;
          [(5) the yearly and cumulative maximum amounts that 
        may be borrowed;
          [(6) an explanation of when repayment of the loan 
        will be required and when the borrower will be 
        obligated to pay interest that accrues on the loan;
          [(7) a statement as to the minimum and maximum 
        repayment term which the institution may impose, and 
        the minimum monthly payment required by law and a 
        description of any penalty imposed as a consequence of 
        default, such as liability for expenses reasonably 
        incurred in attempts by the Secretary or institutions 
        to collect on a loan;
          [(8) a statement of the total cumulative balance, 
        including the loan applied for, owed by the student to 
        that lender, and an estimate of the projected monthly 
        payment, given such cumulative balance;
          [(9) an explanation of any special options the 
        borrower may have for loan consolidation or other 
        refinancing of the loan;
          [(10) a statement that the borrower has the right to 
        prepay all or part of the loan, at any time, without 
        penalty, a statement summarizing circumstances in which 
        repayment of the loan or interest that accrues on the 
        loan may be deferred, and a brief notice of the program 
        for repayment of loans, on the basis of military 
        service, pursuant to the Department of Defense 
        educational loan repayment program (10 U.S.C. 16302);
          [(11) a definition of default and the consequences to 
        the borrower if the borrower defaults, together with a 
        statement that the disbursement of, and the default on, 
        a loan under this part, shall be reported to a consumer 
        reporting agency;
          [(12) to the extent practicable, the effect of 
        accepting the loan on the eligibility of the borrower 
        for other forms of student assistance;
          [(13) an explanation of any cost the borrower may 
        incur in the making or collection of the loan;
          [(14) a notice and explanation regarding the end to 
        future availability of loans made under this part;
          [(15) a notice and explanation that repayment and 
        forgiveness benefits available to borrowers of loans 
        made under part D are not available to borrowers 
        participating in the loan program under this part;
          [(16) a notice and explanation regarding a borrower's 
        option to consolidate a loan made under this part into 
        a Federal Direct Loan under part D, including any 
        benefit of such consolidation;
          [(17) with respect to new undergraduate Federal 
        Perkins loan borrowers, as described in section 
        461(b)(1)(A), a notice and explanation providing a 
        comparison of the interest rates of loans under this 
        part and part D and informing the borrower that the 
        borrower has reached the maximum annual borrowing limit 
        for which the borrower is eligible as referenced under 
        subparagraphs (A) and (D) of section 455(a)(2); and
          [(18) with respect to current undergraduate Federal 
        Perkins loan borrowers, as described in section 
        461(b)(1)(B), a notice and explanation providing a 
        comparison of the interest rates of loans under this 
        part and part D and informing the borrower that the 
        borrower has reached the maximum annual borrowing limit 
        for which the borrower is eligible on Federal Direct 
        Stafford Loans as referenced under section 
        455(a)(2)(A).
  [(b) Disclosure Required Prior to Repayment.--Each 
institution of higher education shall enter into an agreement 
with the Secretary under which the institution will, prior to 
the start of the repayment period of the student borrower on 
loans made under this part, disclose to the student borrower 
the information required under this subsection. Any disclosure 
required by this subsection may be made by an institution of 
higher education either in a promissory note evidencing the 
loan or loans or in a written statement provided to the 
borrower. The disclosures shall include--
          [(1) the name of the institution of higher education, 
        and the address to which communications and payments 
        should be sent;
          [(2) the scheduled date upon which the repayment 
        period is to begin;
          [(3) the estimated balance owed by the borrower on 
        the loan or loans covered by the disclosure as of the 
        scheduled date on which the repayment period is to 
        begin (including, if applicable, the estimated amount 
        of interest to be capitalized);
          [(4) the stated interest rate on the loan or loans, 
        or the combined interest rate of loans with different 
        stated interest rates;
          [(5) the nature of any fees which may accrue or be 
        charged to the borrower during the repayment period;
          [(6) the repayment schedule for all loans covered by 
        the disclosure including the date the first installment 
        is due, and the number, amount, and frequency of 
        required payments;
          [(7) an explanation of any special options the 
        borrower may have for loan consolidation or other 
        refinancing of the loan;
          [(8) the projected total of interest charges which 
        the borrower will pay on the loan or loans, assuming 
        that the borrower makes payments exactly in accordance 
        with the repayment schedule; and
          [(9) a statement that the borrower has the right to 
        prepay all or part of the loan or loans covered by the 
        disclosure at any time without penalty.
  [(c) Costs and Effects of Disclosures.--Such information 
shall be available without cost to the borrower. The failure of 
an eligible institution to provide information as required by 
this section shall not (1) relieve a borrower of the obligation 
to repay a loan in accordance with its terms, (2) provide a 
basis for a claim for civil damages, or (3) be deemed to 
abrogate the obligation of the Secretary to make payments with 
respect to such loan.

[SEC. 464. TERMS OF LOANS.

  [(a) Terms and Conditions.--(1) Loans from any student loan 
fund established pursuant to an agreement under section 463 to 
any student by any institution shall, subject to such 
conditions, limitations, and requirements as the Secretary 
shall prescribe by regulation, be made on such terms and 
conditions as the institution may determine.
  [(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) $5,500, in the case of a student who has not 
        successfully completed a program of undergraduate 
        education; or
          [(ii) $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) $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) $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) $11,000, in the case of any other student.
  [(3) Regulations of the Secretary under paragraph (1) shall 
be designed to prevent the impairment of the capital student 
loan funds to the maximum extent practicable and with a view 
toward the objective of enabling the student to complete his 
course of study.
  [(4) In the case of a program of study abroad that is 
approved for credit by the home institution at which a student 
is enrolled and that has reasonable costs in excess of the home 
institution's budget, the annual and aggregate loan limits for 
the student may exceed the amounts described in paragraphs 
(2)(A) and (2)(B) by 20 percent.
  [(b) Demonstration of Need and Eligibility Required.--(1) A 
loan from a student loan fund assisted under this part may be 
made only to a student who demonstrates financial need in 
accordance with part F of this title, who meets the 
requirements of section 484, and who provides the institution 
with the student's drivers license number, if any, at the time 
of application for the loan. A student who is in default on a 
loan under this part shall not be eligible for an additional 
loan under this part unless such loan meets one of the 
conditions for exclusion under section 462(g)(1)(E).
  [(2) If the institution's capital contribution under section 
462 is directly or indirectly based in part on the financial 
need demonstrated by students who are (A) attending the 
institution less than full time, or (B) independent students, 
then a reasonable portion of the loans made from the 
institution's student loan fund containing the contribution 
shall be made available to such students.
  [(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) shall be evidenced by note or other written 
        instrument which, except as provided in paragraph (2), 
        provides for repayment of the principal amount of the 
        loan, together with interest thereon, in equal 
        installments (or, if the borrower so requests, in 
        graduated periodic installments determined in 
        accordance with such schedules as may be approved by 
        the Secretary) payable quarterly, bimonthly, or 
        monthly, at the option of the institution, over a 
        period beginning nine months after the date on which 
        the student ceases to carry, at an institution of 
        higher education or a comparable institution outside 
        the United States approved for this purpose by the 
        Secretary, at least one-half the normal full-time 
        academic workload, and ending 10 years and 9 months 
        after such date except that such period may begin 
        earlier than 9 months after such date upon the request 
        of the borrower;
          [(B) shall include provision for acceleration of 
        repayment of the whole, or any part, of such loan, at 
        the option of the borrower;
          [(C)(i) may provide, at the option of the 
        institution, in accordance with regulations of the 
        Secretary, that during the repayment period of the 
        loan, payments of principal and interest by the 
        borrower with respect to all outstanding loans made to 
        the student from a student loan fund assisted under 
        this part shall be at a rate equal to not less than $40 
        per month, except that the institution may, subject to 
        such regulations, permit a borrower to pay less than 
        $40 per month for a period of not more than one year 
        where necessary to avoid hardship to the borrower, but 
        without extending the 10-year maximum repayment period 
        provided for in subparagraph (A) of this paragraph; and
          [(ii) may provide that the total payments by a 
        borrower for a monthly or similar payment period with 
        respect to the aggregate of all loans held by the 
        institution may, when the amount of a monthly or other 
        similar payment is not a multiple of $5, be rounded to 
        the next highest whole dollar amount that is a multiple 
        of $5;
          [(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) prior to the beginning date of repayment 
        determined under paragraph (2)(A)(i), or (ii) during 
        any period in which repayment is suspended by reason of 
        paragraph (2);
          [(E) shall provide that the loan shall be made 
        without security and without endorsement;
          [(F) shall provide that the liability to repay the 
        loan shall be cancelled--
                  [(i) upon the death of the borrower;
                  [(ii) if the borrower becomes permanently and 
                totally disabled as determined in accordance 
                with regulations of the Secretary;
                  [(iii) if the borrower is unable to engage in 
                any substantial gainful activity by reason of 
                any medically determinable physical or mental 
                impairment that can be expected to result in 
                death, has lasted for a continuous period of 
                not less than 60 months, or can be expected to 
                last for a continuous period of not less than 
                60 months; or
                  [(iv) if the borrower is determined by the 
                Secretary of Veterans Affairs to be 
                unemployable due to a service-connected 
                disability;
          [(G) shall provide that no note or evidence of 
        obligation may be assigned by the lender, except upon 
        the transfer of the borrower to another institution 
        participating under this part (or, if not so 
        participating, is eligible to do so and is approved by 
        the Secretary for such purpose), to such institution, 
        and except as necessary to carry out section 463(a)(6);
          [(H) pursuant to regulations of the Secretary, shall 
        provide for an assessment of a charge with respect to 
        the loan for failure of the borrower to pay all or part 
        of an installment when due, which shall include the 
        expenses reasonably incurred in attempting collection 
        of the loan, to the extent permitted by the Secretary, 
        except that no charge imposed under this subparagraph 
        shall exceed 20 percent of the amount of the monthly 
        payment of the borrower; and
          [(I) shall contain a notice of the system of 
        disclosure of information concerning default on such 
        loan to consumer reporting agencies under section 
        463(c).
  [(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) during which the borrower--
                  [(I) is pursuing at least a half-time course 
                of study as determined by an eligible 
                institution; or
                  [(II) is pursuing a course of study pursuant 
                to a graduate fellowship program approved by 
                the Secretary, or pursuant to a rehabilitation 
                training program for disabled individuals 
                approved by the Secretary,
        except that no borrower shall be eligible for a 
        deferment under this clause, or loan made under this 
        part while serving in a medical internship or residency 
        program;
          [(ii) not in excess of 3 years during which the 
        borrower is seeking and unable to find full-time 
        employment;
          [(iii) 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,
        and for the 180-day period following the demobilization 
        date for the service described in subclause (I) or 
        (II);
          [(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
          [(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).
  [(B) No repayment of principal of, or interest on, any loan 
for any period described in subparagraph (A) shall begin until 
6 months after the completion of such period.
  [(C) An individual with an outstanding loan balance who meets 
the eligibility criteria for a deferment described in 
subparagraph (A) as in effect on the date of enactment of this 
subparagraph shall be eligible for deferment under this 
paragraph notwithstanding any contrary provision of the 
promissory note under which the loan or loans were made, and 
notwithstanding any amendment (or effective date provision 
relating to any amendment) to this section made prior to the 
date of such deferment.
  [(3)(A) The Secretary is authorized, when good cause is 
shown, to extend, in accordance with regulations, the 10-year 
maximum repayment period provided for in subparagraph (A) of 
paragraph (1) with respect to individual loans.
  [(B) Pursuant to uniform criteria established by the 
Secretary, the repayment period for any student borrower who 
during the repayment period is a low-income individual may be 
extended for a period not to exceed 10 years and the repayment 
schedule may be adjusted to reflect the income of that 
individual.
  [(4) The repayment period for a loan made under this part 
shall begin on the day immediately following the expiration of 
the period, specified in paragraph (1)(A), after the student 
ceases to carry the required academic workload, unless the 
borrower requests and is granted a repayment schedule that 
provides for repayment to commence at an earlier point in time, 
and shall exclude any period of authorized deferment, 
forbearance, or cancellation.
  [(5) The institution may elect--
          [(A) to add the amount of any charge imposed under 
        paragraph (1)(H) to the principal amount of the loan as 
        of the first day after the day on which the installment 
        was due and to notify the borrower of the assessment of 
        the charge; or
          [(B) to make the amount of the charge payable to the 
        institution not later than the due date of the next 
        installment.
  [(6) Requests for deferment of repayment of loans under this 
part by students engaged in graduate or post-graduate 
fellowship-supported study (such as pursuant to a Fulbright 
grant) outside the United States shall be approved until 
completion of the period of the fellowship.
  [(7) There shall be excluded from the 9-month period that 
begins on the date on which a student ceases to carry at least 
one-half the normal full-time academic workload (as described 
in paragraph (1)(A)) any period not to exceed 3 years during 
which a borrower who is a member of a reserve component of the 
Armed Forces named in section 10101 of title 10, United States 
Code, is called or ordered to active duty for a period of more 
than 30 days (as defined in section 101(d)(2) of such title). 
Such period of exclusion shall include the period necessary to 
resume enrollment at the borrower's next available regular 
enrollment period.
  [(d) Availability of Loan Fund to All Eligible Students.--An 
agreement under this part for payment of Federal capital 
contributions shall include provisions designed to make loans 
from the student loan fund established pursuant to such 
agreement reasonably available (to the extent of the available 
funds in such fund) to all eligible students in such 
institutions in need thereof.
  [(e) Forbearance.--(1) The Secretary shall ensure that, as 
documented in accordance with paragraph (2), 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--
          [(A) the borrower's debt burden equals or exceeds 20 
        percent of such borrower's gross income;
          [(B) the institution determines that the borrower 
        should qualify for forbearance for other reasons; or
          [(C) the borrower is eligible for interest payments 
        to be made on such loan for service in the Armed Forces 
        under section 2174 of title 10, United States Code, 
        and, pursuant to that eligibility, the interest on such 
        loan is being paid under subsection (j), except that 
        the form of a forbearance under this paragraph shall be 
        a temporary cessation of all payments on the loan other 
        than payments of interest on the loan that are made 
        under subsection (j).
  [(2) For the purpose of paragraph (1), the terms of 
forbearance agreed to by the parties shall be documented by--
          [(A) confirming the agreement of the borrower by 
        notice to the borrower from the institution of higher 
        education; and
          [(B) recording the terms in the borrower's file.
  [(f) Special Repayment Rule Authority.--(1) Subject to such 
restrictions as the Secretary may prescribe to protect the 
interest of the United States, in order to encourage repayment 
of loans made under this part which are in default, the 
Secretary may, in the agreement entered into under this part, 
authorize an institution of higher education to compromise on 
the repayment of such defaulted loans in accordance with 
paragraph (2). The Federal share of the compromise repayment 
shall bear the same relation to the institution's share of such 
compromise repayment as the Federal capital contribution to the 
institution's loan fund under this part bears to the 
institution's capital contribution to such fund.
  [(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.
  [(g) Discharge.--
          [(1) In general.--If a student borrower who received 
        a loan made under this part on or after January 1, 
        1986, is unable to complete the program in which such 
        student is enrolled due to the closure of the 
        institution, then the Secretary shall discharge the 
        borrower's liability on the loan (including the 
        interest and collection fees) and shall subsequently 
        pursue any claim available to such borrower against the 
        institution and the institution's affiliates and 
        principals, or settle the loan obligation pursuant to 
        the financial responsibility standards described in 
        section 498(c).
          [(2) Assignment.--A borrower whose loan has been 
        discharged pursuant to this subsection shall be deemed 
        to have assigned to the United States the right to a 
        loan refund in an amount that does not exceed the 
        amount discharged against the institution and the 
        institution's affiliates and principals.
          [(3) Eligibility for additional assistance.--The 
        period during which a student was unable to complete a 
        course of study due to the closing of the institution 
        shall not be considered for purposes of calculating the 
        student's period of eligibility for additional 
        assistance under this title.
          [(4) Special rule.--A borrower whose loan has been 
        discharged pursuant to this subsection shall not be 
        precluded, because of that discharge, from receiving 
        additional grant, loan, or work assistance under this 
        title for which the borrower would be otherwise 
        eligible (but for the default on the discharged loan). 
        The amount discharged under this subsection shall be 
        treated as an amount canceled under section 465(a).
          [(5) Reporting.--The Secretary or institution, as the 
        case may be, shall report to consumer reporting 
        agencies with respect to loans that have been 
        discharged pursuant to this subsection.
  [(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 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 consumer reporting agency to which the 
                default was reported remove the default from 
                the borrower's credit history.
                  [(B) Comparable conditions.--As long as the 
                borrower continues to make scheduled repayments 
                on a loan rehabilitated under this paragraph, 
                the rehabilitated loan shall be subject to the 
                same terms and conditions, and qualify for the 
                same benefits and privileges, as other loans 
                made under this part.
                  [(C) Additional assistance.--The borrower of 
                a rehabilitated loan shall not be precluded by 
                section 484 from receiving additional grant, 
                loan, or work assistance under this title (for 
                which the borrower is otherwise eligible) on 
                the basis of defaulting on the loan prior to 
                such rehabilitation.
                  [(D) Limitations.--A borrower only once may 
                obtain the benefit of this paragraph with 
                respect to rehabilitating a loan under this 
                part.
          [(2) Restoration of eligibility.--If the borrower of 
        a loan made under this part who has defaulted on that 
        loan makes 6 ontime, consecutive, monthly payments of 
        amounts owed on such loan, the borrower's eligibility 
        for grant, loan, or work assistance under this title 
        shall be restored to the extent that the borrower is 
        otherwise eligible. A borrower only once may obtain the 
        benefit of this paragraph with respect to restored 
        eligibility.
  [(i) Incentive Repayment Program.--
          [(1) In general.--Each institution of higher 
        education may establish, with the approval of the 
        Secretary, an incentive repayment program designed to 
        reduce default and to replenish student loan funds 
        established under this part. Each such incentive 
        repayment program may--
                  [(A) offer a reduction of the interest rate 
                on a loan on which the borrower has made 48 
                consecutive, monthly repayments, but in no 
                event may the rate be reduced by more than 1 
                percent;
                  [(B) provide for a discount on the balance 
                owed on a loan on which the borrower pays the 
                principal and interest in full prior to the end 
                of the applicable repayment period, but in no 
                event may the discount exceed 5 percent of the 
                unpaid principal balance due on the loan at the 
                time the early repayment is made; and
                  [(C) include such other incentive repayment 
                options as the institution determines will 
                carry out the objectives of this subsection.
          [(2) Limitation.--No incentive repayment option under 
        an incentive repayment program authorized by this 
        subsection may be paid for with Federal funds, 
        including any Federal funds from the student loan fund, 
        or with institutional funds from the student loan fund.
  [(j) Armed Forces Student Loan Interest Payment Program.--
          [(1) Authority.--Using funds received by transfer to 
        the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest on a loan made 
        under this part to a member of the Armed Forces, the 
        Secretary shall pay the interest on the loan as due for 
        a period not in excess of 36 consecutive months. The 
        Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so 
        transferred.
          [(2) Forbearance.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the institution of higher education shall grant 
        the borrower forbearance in accordance with subsection 
        (e)(1)(C).
  [(k) The Secretary may develop such additional safeguards as 
the Secretary determines necessary to prevent fraud and abuse 
in the cancellation of liability under subsection (c)(1)(F). 
Notwithstanding subsection (c)(1)(F), the Secretary may 
promulgate regulations to resume collection on loans cancelled 
under subsection (c)(1)(F) in any case in which--
          [(1) a borrower received a cancellation of liability 
        under subsection (c)(1)(F) and after the cancellation 
        the borrower--
                  [(A) receives a loan made, insured, or 
                guaranteed under this title; or
                  [(B) has earned income in excess of the 
                poverty line; or
          [(2) the Secretary determines necessary.

[SEC. 465. CANCELLATION OF LOANS FOR CERTAIN PUBLIC SERVICE.

  [(a) Cancellation of Percentage of Debt Based on Years of 
Qualifying Service.--(1) The percent specified in paragraph (3) 
of this subsection of the total amount of any loan made after 
June 30, 1972, from a student loan fund assisted under this 
part shall be canceled for each complete year of service after 
such date by the borrower under circumstances described in 
paragraph (2).
  [(2) Loans shall be canceled under paragraph (1) for 
service--
          [(A) as a full-time teacher for service in an 
        academic year (including such a teacher employed by an 
        educational service agency)--
                  [(i) in a public or other nonprofit private 
                elementary school or secondary school, which, 
                for the purpose of this paragraph and for that 
                year--
                          [(I) has been determined by the 
                        Secretary (pursuant to regulations of 
                        the Secretary and after consultation 
                        with the State educational agency of 
                        the State in which the school is 
                        located) to be a school in which the 
                        number of children meeting a measure of 
                        poverty under section 1113(a)(5) of the 
                        Elementary and Secondary Education Act 
                        of 1965, exceeds 30 percent of the 
                        total number of children enrolled in 
                        such school; and
                          [(II) is in the school district of a 
                        local educational agency which is 
                        eligible in such year for assistance 
                        pursuant to part A of title I of the 
                        Elementary and Secondary Education Act 
                        of 1965; or
                  [(ii) in one or more public, or nonprofit 
                private, elementary schools or secondary 
                schools or locations operated by an educational 
                service agency that have been determined by the 
                Secretary (pursuant to regulations of the 
                Secretary and after consultation with the State 
                educational agency of the State in which the 
                educational service agency operates) to be a 
                school or location at which the number of 
                children taught who meet a measure of poverty 
                under section 1113(a)(5) of the Elementary and 
                Secondary Education Act of 1965, exceeds 30 
                percent of the total number of children taught 
                at such school or location;
          [(B) as a full-time staff member in a preschool 
        program carried on under the Head Start Act, or in a 
        prekindergarten or child care program that is licensed 
        or regulated by the State, that is operated for a 
        period which is comparable to a full school year in the 
        locality if the salary of such staff member is not more 
        than the salary of a comparable employee of the local 
        educational agency;
          [(C) as a full-time special education teacher, 
        including teachers of infants, toddlers, children, or 
        youth with disabilities in a public or other nonprofit 
        elementary or secondary school system, including a 
        system administered by an educational service agency, 
        or as a full-time qualified professional provider of 
        early intervention services in a public or other 
        nonprofit program under public supervision by the lead 
        agency as authorized in section 635(a)(10) of the 
        Individuals with Disabilities Education Act;
          [(D) as a member of the Armed Forces of the United 
        States, for service that qualifies for special pay 
        under section 310, or paragraph (1) or (3) of section 
        351(a), of title 37, United States Code, as an area of 
        hostilities;
          [(E) as a volunteer under the Peace Corps Act or a 
        volunteer under the Domestic Volunteer Service Act of 
        1973;
          [(F) as a full-time law enforcement officer or 
        corrections officer for service to local, State, or 
        Federal law enforcement or corrections agencies, or as 
        a full-time attorney employed in a defender 
        organization established in accordance with section 
        3006A(g)(2)of title 18, United States Code;
          [(G) as a full-time teacher of mathematics, science, 
        foreign languages, bilingual education, or any other 
        field of expertise where the State educational agency 
        determines there is a shortage of qualified teachers;
          [(H) as a full-time nurse or medical technician 
        providing health care services;
          [(I) as a full-time employee of a public or private 
        nonprofit child or family service agency who is 
        providing, or supervising the provision of, services to 
        high-risk children who are from low-income communities 
        and the families of such children;
          [(J) as a full-time fire fighter for service to a 
        local, State, or Federal fire department or fire 
        district;
          [(K) as a full-time faculty member at a Tribal 
        College or University, as that term is defined in 
        section 316;
          [(L) as a librarian, if the librarian has a master's 
        degree in library science and is employed in--
                  [(i) an elementary school or secondary school 
                that is eligible for assistance under part A of 
                title I of the Elementary and Secondary 
                Education Act of 1965; or
                  [(ii) a public library that serves a 
                geographic area that contains one or more 
                schools eligible for assistance under part A of 
                title I of the Elementary and Secondary 
                Education Act of 1965; or
          [(M) as a full-time speech language pathologist, if 
        the pathologist has a masters degree and is working 
        exclusively with schools that are eligible for 
        assistance under title I of the Elementary and 
        Secondary Education Act of 1965.
For the purpose of this paragraph, the term ``children with 
disabilities'' has the meaning set forth in section 602 of the 
Individuals with Disabilities Education Act.
  [(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), (I), (J), (K), (L), or 
        (M) 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 (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.
  [(B) If a portion of a loan is canceled under this subsection 
for any year, the entire amount of interest on such loan which 
accrues for such year shall be canceled.
  [(C) Nothing in this subsection shall be construed to 
authorize refunding of any repayment of a loan.
  [(4) For the purpose of this subsection, the term ``year'' 
where applied to service as a teacher means academic year as 
defined by the Secretary.
  [(5) The amount of a loan, and interest on a loan, which is 
canceled under this section shall not be considered income for 
purposes of the Internal Revenue Code of 1986.
  [(6) No 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.).
  [(7) An individual with an outstanding loan obligation under 
this part who performs service of any type that is described in 
paragraph (2) as in effect on the date of enactment of this 
paragraph shall be eligible for cancellation under this section 
for such service notwithstanding any contrary provision of the 
promissory note under which the loan or loans were made, and 
notwithstanding any amendment (or effective date provision 
relating to any amendment) to this section made prior to the 
date of such service.
  [(b) Reimbursement for Cancellation.--The Secretary shall pay 
to each institution for each fiscal year an amount equal to the 
aggregate of the amounts of loans from its student loan fund 
which are canceled pursuant to this section for such year, 
minus an amount equal to the aggregate of the amounts of any 
such loans so canceled which were made from Federal capital 
contributions to its student loan fund provided by the 
Secretary under section 468. None of the funds appropriated 
pursuant to section 461(b) shall be available for payments 
pursuant to this subsection. To the extent feasible, the 
Secretary shall pay the amounts for which any institution 
qualifies under this subsection not later than 3 months after 
the institution files an institutional application for campus-
based funds.
  [(c) Special Rules.--
          [(1) List.--If the list of schools in which a teacher 
        may perform service pursuant to subsection (a)(2)(A) is 
        not available before May 1 of any year, the Secretary 
        may use the list for the year preceding the year for 
        which the determination is made to make such service 
        determination.
          [(2) Continuing eligibility.--Any teacher who 
        performs service in a school which--
                  [(A) meets the requirements of subsection 
                (a)(2)(A) in any year; and
                  [(B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be 
        eligible for loan cancellation pursuant to subsection 
        (a)(1) such subsequent years.

[SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.

  [(a) In General.--Beginning October 1, 2017, 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, 2017, 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.--Beginning October 1, 
2017, 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, 2017, 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, 2017, 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) Authority of Secretary To Collect Referred, Transferred, 
or Assigned Loans.--With respect to any loan--
          [(1) which was made under this part, and
          [(2) which is referred, transferred, or assigned to 
        the Secretary by an institution with an agreement under 
        section 463(a),
the Secretary is authorized to attempt to collect such loan by 
any means authorized by law for collecting claims of the United 
States (including referral to the Attorney General for 
litigation) and under such terms and conditions as the 
Secretary may prescribe, including reimbursement for expenses 
reasonably incurred in attempting such collection.
  [(b) Collection of Referred, Transferred, or Assigned 
Loans.--The Secretary shall continue to attempt to collect any 
loan referred, transferred, or assigned under paragraph (4) or 
(5) of section 463(a) until all appropriate collection efforts, 
as determined by the Secretary, have been expended.

[SEC. 468. GENERAL AUTHORITY OF SECRETARY.

   [In carrying out the provisions of this part, the Secretary 
is authorized--
          [(1) to consent to modification, with respect to rate 
        of interest, time of payment of any installment of 
        principal and interest or any portion thereof, or any 
        other provision of any note evidencing a loan which has 
        been made under this part;
          [(2) to enforce, pay, compromise, waive, or release 
        any right, title, claim, lien, or demand, however 
        acquired, including any equity or any right of 
        redemption;
          [(3) to conduct litigation in accordance with the 
        provisions of section 432(a)(2); and
          [(4) to enter into a contract or other arrangement 
        with State or nonprofit agencies and, on a competitive 
        basis, with collection agencies for servicing and 
        collection of loans under this part.

[SEC. 469. DEFINITIONS.

  [(a) Low-Income Communities.--For the purpose of this part, 
the term ``low-income communities'' means communities in which 
there is a high concentration of children eligible to be 
counted under section 1124(c) of the Elementary and Secondary 
Education Act of 1965.
  [(b) High-Risk Children.--For the purposes of this part, the 
term ``high-risk children'' means individuals under the age of 
21 who are low-income or at risk of abuse or neglect, have been 
abused or neglected, have serious emotional, mental, or 
behavioral disturbances, reside in placements outside their 
homes, or are involved in the juvenile justice system.
  [(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, respectively, 
of the Individuals with Disabilities Education Act, and the 
term ``early intervention services'' has the meaning given the 
term in section 632 of such Act.]

SEC. 461. PROGRAM AUTHORITY.

  (a) In General.--There are hereby made available, in 
accordance with the provisions of this part, such sums as may 
be necessary to make loans to all eligible students (and the 
eligible parents of such students) in attendance at 
participating institutions of higher education selected by the 
Secretary to enable such students to pursue their courses of 
study at such institutions during the period beginning July 1, 
2019. Loans made under this part shall be made by participating 
institutions that have agreements with the Secretary to 
originate loans.
  (b) Designation.--The program established under this part 
shall be referred to as the ``Federal ONE Loan Program''.
  (c) ONE Loans.--Except as otherwise specified in this part, 
loans made to borrowers under this part shall be known as 
``Federal ONE Loans''.

SEC. 462. FUNDS FOR THE ORIGINATION OF ONE LOANS.

  (a) In General.--The Secretary shall provide, on the basis of 
eligibility of students at each participating institution, and 
parents of such students, for such loans, funds for student and 
Parent Loans under this part directly to an institution of 
higher education that has an agreement with the Secretary under 
section 464(a) to participate in the Federal ONE Loan Program 
under this part and that also has an agreement with the 
Secretary under section 464(b) to originate loans under this 
part.
  (b) Parallel Terms.--Subsections (b), (c), and (d) of section 
452 shall apply to the loan program under this part in the same 
manner that such subsections apply to the loan program under 
part D.

SEC. 463. SELECTION OF INSTITUTIONS FOR PARTICIPATION AND ORIGINATION.

  (a) General Authority.--The Secretary shall enter into 
agreements pursuant to section 464(a) with institutions of 
higher education to participate in the Federal ONE Loan Program 
under this part, and agreements pursuant to section 464(b) with 
institutions of higher education, to originate loans in such 
program, for academic years beginning on or after July 1, 2019. 
Such agreements for the academic year 2019-2020 shall, to the 
extent feasible, be entered into not later than January 1, 
2019.
  (b) Selection Criteria and Procedure.--The application and 
selection procedure for an institution of higher education 
desiring to participate in the loan program under this part 
shall be the application and selection procedure described in 
section 453(b) for an institution of higher education desiring 
to participate in the loan program under part D.
  (c) Eligible Institutions.--The Secretary may not select an 
institution of higher education for participation under this 
part unless such institution is an eligible institution under 
section 487(a).

SEC. 464. AGREEMENTS WITH INSTITUTIONS.

  (a) Participation Agreements.--An agreement with any 
institution of higher education for participation in the 
Federal ONE Loan Program under this part shall--
          (1) provide for the establishment and maintenance of 
        a direct student loan program at the institution under 
        which the institution will--
                  (A) identify eligible students who seek 
                student financial assistance at such 
                institution in accordance with section 484;
                  (B) provide a statement that certifies the 
                eligibility of any student to receive a loan 
                under this part that is not in excess of the 
                annual or aggregate limit applicable to such 
                loan, except that the institution may, in 
                exceptional circumstances identified by the 
                Secretary pursuant to section 454(a)(1)(C), 
                refuse to certify a statement that permits a 
                student to receive a loan under this part, if 
                the reason for such action is documented and 
                provided in written form to such student;
                  (C) set forth a schedule for disbursement of 
                the proceeds of the loan in installments, 
                consistent with the requirements of section 
                465(a); and
                  (D) provide timely and accurate information, 
                concerning the status of student borrowers (and 
                students on whose behalf parents borrow under 
                this part) while such students are in 
                attendance at the institution and concerning 
                any new information of which the institution 
                becomes aware for such students (or their 
                parents) after such borrowers leave the 
                institution, to the Secretary for the servicing 
                and collecting of loans made under this part;
          (2) provide assurances that the institution will 
        comply with requirements established by the Secretary 
        relating to student loan information with respect to 
        loans made under this part;
          (3) provide that the institution accepts 
        responsibility and financial liability stemming from 
        its failure to perform its functions pursuant to the 
        agreement;
          (4) provide for the implementation of a quality 
        assurance system, as established by the Secretary and 
        developed in consultation with institutions of higher 
        education, to ensure that the institution is complying 
        with program requirements and meeting program 
        objectives; and
          (5) provide that the institution will not charge any 
        fees of any kind, however described, to student or 
        parent borrowers for origination activities or the 
        provision of any information necessary for a student or 
        parent to receive a loan under this part, or any 
        benefits associated with such loan.
  (b) Origination.--An agreement with any institution of higher 
education for the origination of loans under this part shall--
          (1) supplement the agreement entered into in 
        accordance with subsection (a);
          (2) include provisions established by the Secretary 
        that are similar to the participation agreement 
        provisions described in paragraphs (2), (3), (4), and 
        (5) of subsection (a), as modified to relate to the 
        origination of loans by the institution;
          (3) provide that the institution will originate loans 
        to eligible students and parents in accordance with 
        this part; and
          (4) provide that the note or evidence of obligation 
        on the loan shall be the property of the Secretary.
  (c) Withdrawal Procedures.--
          (1) In general.--An institution of higher education 
        participating in the Federal ONE Loan Program under 
        this part may withdraw from the program by providing 
        written notice to the Secretary of the intent to 
        withdraw not less than 60 days before the intended date 
        of withdrawal.
          (2) Date of withdrawal.--Except in cases in which the 
        Secretary and an institution of higher education agree 
        to an earlier date, the date of withdrawal from the 
        Federal ONE Loan Program under this part of an 
        institution of higher education shall be the later of--
                  (A) 60 days after the institution submits the 
                notice required under paragraph (1); or
                  (B) a date designated by the institution.

SEC. 465. DISBURSEMENT OF STUDENT LOANS, LOAN LIMITS, INTEREST RATES, 
                    AND LOAN FEES.

  (a) Requirements for Disbursement of Student Loans.--
          (1) Multiple disbursement required.--
                  (A) Required disbursements.--The proceeds of 
                any loan made under this part that is made for 
                any period of enrollment shall be disbursed as 
                follows:
                          (i) The disbursement of the first 
                        installment of proceeds shall, with 
                        respect to any student other than a 
                        student described in subparagraph 
                        (B)(i), be made not more than 30 days 
                        prior to the beginning of the period of 
                        enrollment, and not later than 30 days 
                        after the beginning of such period of 
                        enrollment.
                          (ii) The disbursement of an 
                        installment of proceeds shall be made 
                        in substantially equal monthly or 
                        weekly installments over the period of 
                        enrollment for which the loan was made, 
                        except that installments may be unequal 
                        as necessary to permit the institution 
                        to adjust for unequal costs (which may 
                        include upfront costs such as tuition 
                        and fees) incurred or estimated 
                        financial assistance received by the 
                        student, or based on the academic 
                        progress of the student.
                  (B) Disbursement of credit balances.--
                          (i) Type of disbursement.--The credit 
                        balances of any loan made under this 
                        part that is made for any period of 
                        enrollment shall be disbursed by--
                                  (I) an electronic transfer of 
                                funds to the borrower's 
                                financial account;
                                  (II) a check for the amount 
                                payable to, and requiring the 
                                endorsement of, the borrower;
                                  (III) an access device in 
                                accordance with clause (ii); or
                                  (IV) a cash payment for which 
                                the institution obtains a 
                                receipt signed by the borrower.
                          (ii) Usage of access device.--An 
                        institution may enter into an agreement 
                        with a third-party servicer for the 
                        delivery of funds awarded under this 
                        part in which the third-party servicer 
                        provides the borrower with an 
                        unvalidated access device for accessing 
                        credit balances of any loan if--
                                  (I) the agreement provides 
                                that the access device must 
                                bear a prominent disclosure 
                                informing the borrower that the 
                                borrower is not required to use 
                                such access device and open 
                                such an account in order to 
                                access the student's funds 
                                under this part;
                                  (II) the agreement provides 
                                that the consent of the 
                                borrower is obtained before the 
                                access device is validated to 
                                enable the student to access 
                                the account;
                                  (III) the agreement provides 
                                for the protection of the 
                                borrower against fraud; and
                                  (IV) the institution 
                                documents that it has conducted 
                                a reasonable due diligence 
                                review before entering into the 
                                agreement, and will conduct 
                                such a review at least every 
                                two years to ensure that--
                                          (aa) the fees 
                                        applicable to such 
                                        account are, considered 
                                        as a whole, below 
                                        prevailing market 
                                        rates; and
                                          (bb) the terms and 
                                        conditions of such 
                                        account are otherwise 
                                        consistent with 
                                        prevailing market terms 
                                        and conditions.
                  (C) First year students.--
                          (i) In general.--The first 
                        installment of the proceeds of any loan 
                        made under this part that is made to a 
                        student borrower who is entering the 
                        first year of a program of 
                        undergraduate education, and who has 
                        not previously obtained a loan under 
                        this part, shall not (regardless of the 
                        amount of such loan or the duration of 
                        the period of enrollment) be presented 
                        by the institution of higher education 
                        to the student for endorsement until 30 
                        days after the borrower begins a course 
                        of study, but may be delivered to the 
                        eligible institution prior to the end 
                        of that 30-day period.
                          (ii) Exemption.--An institution of 
                        higher education in which each 
                        educational program has a loan 
                        repayment rate (as determined under 
                        section 481B(c)) for the most recent 
                        fiscal year for which data are 
                        available that is greater than 60 
                        percent shall be exempt from the 
                        requirements of clause (i).
          (2) Withdrawing of succeeding disbursements.--
                  (A) Withdrawing students.--In the case in 
                which the Secretary is informed by the borrower 
                or the institution that the borrower has ceased 
                to be enrolled before the disbursement of the 
                second or any succeeding installment, the 
                Secretary shall withhold such disbursement. Any 
                disbursement which is so withheld shall be 
                credited to the borrower's loan and treated as 
                a prepayment on the principal of the loan.
                  (B) Students receiving over-awards.--If the 
                sum of a disbursement for any borrower and the 
                other financial aid obtained by borrower 
                exceeds the amount of assistance for which the 
                borrower is eligible under this title, the 
                institution the borrower, or dependent student, 
                in the case of a parent borrower, is attending 
                shall withhold and return to the Secretary the 
                portion (or all) of such installment that 
                exceeds such eligible amount, except that 
                overawards permitted pursuant to section 
                443(b)(4) shall not be construed to be 
                overawards for purposes of this subparagraph. 
                Any portion (or all) of a disbursement 
                installment which is so returned shall be 
                credited to the borrower's loan and treated as 
                a prepayment on the principal of the loan.
          (3) Exclusion of Consolidation and Foreign Study 
        Loans.--The provisions of this subsection shall not 
        apply in the case of a Federal ONE Consolidation Loan, 
        or a loan made to a student to cover the cost of 
        attendance in a program of study abroad approved by the 
        home eligible institution if each of the educational 
        programs of such home eligible institution has a loan 
        repayment rate (as calculated under section 481B(c)) 
        for the most recent fiscal year for which data are 
        available of greater than 70 percent.
          (4) Beginning of Period of Enrollment.--For purposes 
        of this subsection, a period of enrollment begins on 
        the first day that classes begin for the applicable 
        period of enrollment.
  (b) Amount of loan.--
          (1) In general.--The determination of the amount of a 
        loan disbursed by an eligible institution under this 
        section shall be the lesser of--
                  (A) an amount that is equal to the estimated 
                loan amount, as determined by the institution 
                by calculating--
                          (i) the estimated cost of attendance 
                        at the institution; minus
                          (ii)(I) any estimated financial 
                        assistance reasonably available to such 
                        student, including assistance that the 
                        student will receive from a Federal 
                        grant, including a Federal Pell Grant, 
                        a State grant, an institutional grant, 
                        or a scholarship or grant from another 
                        source, that is known to the 
                        institution at the time the student's 
                        determination of need is made; and
                          (II) in the case of a loan to a 
                        parent, the amount of a loan awarded 
                        under this part to the parent's child; 
                        or
                  (B) the maximum Federal loan amount for which 
                such borrower is eligible in accordance with 
                paragraph (2).
          (2) Loan limits.--
                  (A) Annual limits.--Except as provided under 
                subparagraph (B), (C), or (D), the amount of 
                loans made under this part that an eligible 
                student or parent borrower may borrow for an 
                academic year shall be as follows:
                          (i) Undergraduate students.--With 
                        respect to enrollment in a program of 
                        undergraduate education at an eligible 
                        institution--
                                  (I) in the case of a 
                                dependent student--
                                          (aa) who has not 
                                        successfully completed 
                                        the first year of a 
                                        program of 
                                        undergraduate 
                                        education, $7,500;
                                          (bb) who has 
                                        successfully completed 
                                        such first year but has 
                                        not successfully 
                                        completed the remainder 
                                        of a program of 
                                        undergraduate 
                                        education, $8,500; and
                                          (cc) who has 
                                        successfully completed 
                                        the first and second 
                                        years of a program of 
                                        undergraduate education 
                                        but has not 
                                        successfully completed 
                                        the remainder of such 
                                        program, $9,500;
                                  (II) in the case of an 
                                independent student, or a 
                                dependent student whose parents 
                                are unable to borrow a loan 
                                under this part on behalf of 
                                such student--
                                          (aa) who has not 
                                        successfully completed 
                                        the first year of a 
                                        program of 
                                        undergraduate 
                                        education, $11,500;
                                          (bb) who has 
                                        successfully completed 
                                        such first year but has 
                                        not successfully 
                                        completed the remainder 
                                        of a program of 
                                        undergraduate 
                                        education, $12,500; and
                                          (cc) who has 
                                        successfully completed 
                                        the first and second 
                                        years of a program of 
                                        undergraduate education 
                                        but has not 
                                        successfully completed 
                                        the remainder of such 
                                        program, $14,500; and
                                  (III) in the case of a 
                                student who is enrolled in a 
                                program of undergraduate 
                                education that is less than one 
                                academic year, the maximum 
                                annual loan amount that such 
                                student may receive may not 
                                exceed the amount that bears 
                                the same ratio to the amount 
                                specified in subclause (I) or 
                                (II), as applicable, as the 
                                length of such program measured 
                                in semester, trimester, 
                                quarter, or clock hours bears 
                                to one academic year.
                          (ii) Graduate or professional 
                        students.--In the case of a graduate or 
                        professional student for enrollment in 
                        a program of graduate or professional 
                        education at an eligible institution, 
                        $28,500.
                          (iii) Parent borrowers.--In the case 
                        of a parent borrowing a loan under this 
                        part on behalf of a dependent student 
                        for the student's enrollment in a 
                        program of undergraduate education at 
                        an eligible institution, $12,500 per 
                        each such student.
                          (iv) Coursework for undergraduate 
                        enrollment.--With respect to enrollment 
                        in coursework specified in section 
                        484(b)(3)(B) necessary for enrollment 
                        in an undergraduate degree or 
                        certificate program--
                                  (I) in the case of a 
                                dependent student, $2,625;
                                  (II) in the case of a parent 
                                borrowing a loan under this 
                                part on behalf of a dependent 
                                student for the student's 
                                enrollment in such coursework, 
                                $6,000; and
                                  (III) in the case an 
                                independent student, or a 
                                dependent student whose parents 
                                are unable to borrow a loan 
                                under this part on behalf of 
                                such student, $8,625.
                          (v) Coursework for graduate or 
                        professional enrollment or teacher 
                        employment.--With respect to the 
                        enrollment of a student who has 
                        obtained a baccalaureate degree in 
                        coursework specified in section 
                        484(b)(3)(B) necessary for enrollment 
                        in a graduate or professional degree or 
                        certificate program, or coursework 
                        specified in section 484(b)(4)(B) 
                        necessary for a professional credential 
                        or certification from a State required 
                        for employment as a teacher in an 
                        elementary or secondary school, in the 
                        case of a student (without regard to 
                        whether the student is a dependent 
                        student or dependent student), $12,500.
                  (B) Aggregate limits.--Except as provided 
                under subparagraph (C), (D), or (E), the 
                maximum aggregate amount of loans under this 
                part and parts B and D that an eligible student 
                or parent borrower may borrow shall be--
                          (i) for enrollment in a program of 
                        undergraduate education at an eligible 
                        institution, including for enrollment 
                        in coursework described in clause (iv) 
                        or (v) of subparagraph (A)--
                                  (I) in the case of a 
                                dependent student, $39,000;
                                  (II) in the case of an 
                                independent student, or an 
                                dependent student whose parents 
                                are unable to receive a loan 
                                under this part on behalf of 
                                such student, $60,250; and
                                  (III) in the case of a parent 
                                borrowing a loan under this 
                                part on behalf of a dependent 
                                student for the student's 
                                enrollment in such a program, 
                                $56,250 per each such student.
                          (ii) in the case of a graduate or 
                        professional student for enrollment in 
                        a program of graduate or professional 
                        education at an eligible institution, 
                        $150,000.
                  (C) Application of limits to borrowers with 
                part B or D loans.--
                          (i) Graduate or professional 
                        students.--In the case of a graduate or 
                        professional student who is not 
                        described in subparagraph (E) and who 
                        has received loans made under part B or 
                        D for enrollment in a graduate or 
                        professional program at an eligible 
                        institution, the total amount of which 
                        equal or exceed $28,500 as of the time 
                        of disbursement, the student may 
                        continue to borrow the amount of loans 
                        under this part necessary to complete 
                        such program without regard to the 
                        aggregate limit under subparagraph 
                        (B)(ii), except that the--
                                  (I) amount of such loans 
                                shall not exceed the annual 
                                limits under subparagraph 
                                (A)(ii) for any academic year 
                                beginning after June 30, 2019; 
                                and
                                  (II) authority to borrow 
                                loans in accordance with this 
                                subclause shall terminate at 
                                the end of the academic year 
                                ending before September 30, 
                                2024.
                          (ii) Parent borrowers.--In the case 
                        of a parent borrower who has received 
                        loans made under part B or D on behalf 
                        of a dependent student for the 
                        student's enrollment in a program of 
                        undergraduate education at an eligible 
                        institution, the total amount of which 
                        equal or exceed $12,500 for such 
                        student as of the time of disbursement, 
                        the parent borrower may continue to 
                        borrow the amount of loans under this 
                        part necessary for such student to 
                        complete such program without regard to 
                        the aggregate limit under subparagraph 
                        (B)(i)(III), except that the--
                                  (I) amount of such loans 
                                shall not exceed the annual 
                                limits under subparagraph 
                                (A)(iii) for any academic year 
                                beginning after June 30, 2019; 
                                and
                                  (II) the authority to borrow 
                                loans in accordance with this 
                                subclause shall terminate at 
                                the end of the academic year 
                                ending before September 30, 
                                2024.
                  (D) Institutional determined limits.--
                          (i) In general.--Notwithstanding any 
                        other provision of this subsection, an 
                        eligible institution (at the discretion 
                        of a financial aid administrator at the 
                        institution) may prorate or limit the 
                        amount of a loan any student enrolled 
                        in a program of study at that 
                        institution may borrow under this part 
                        for an academic year--
                                  (I) if the institution, using 
                                the most recently available 
                                data from the Bureau of Labor 
                                Statistics for the average 
                                starting salary in the region 
                                in which the institution is 
                                located for typical occupations 
                                pursued by graduates of such 
                                program, can reasonably 
                                demonstrate that student debt 
                                levels are or would be 
                                excessive for such program;
                                  (II) in a case in which the 
                                student is enrolled on a less 
                                than full-time basis or the 
                                student is enrolled for less 
                                than the period of enrollment 
                                to which the annual loan limit 
                                applies under this subsection, 
                                based on the student's 
                                enrollment status;
                                  (III) based on the credential 
                                level (such as a degree, 
                                certificate, or other 
                                recognized educational 
                                credential) that the student 
                                would attain upon completion of 
                                such program; or
                                  (IV) based on the year of the 
                                program for which the student 
                                is seeking such loan.
                          (ii) Application to all students.--
                        Any proration or limiting of loan 
                        amounts under clause (i) shall be 
                        applied in the same manner to all 
                        students enrolled in the institution or 
                        program of study.
                          (iii) Increases for Individual 
                        Students.--Upon the request of a 
                        student whose loan amount for an 
                        academic year has been prorated or 
                        limited under clause (i), an eligible 
                        institution (at the discretion of the 
                        financial aid administrator at the 
                        institution) may increase such loan 
                        amount to an amount not exceeding the 
                        annual loan amount applicable to such 
                        student under this subparagraph for 
                        such academic year if such student 
                        demonstrates special circumstances or 
                        exceptional need.
                  (E) Increases for certain graduate or 
                professional students.--
                          (i) Additional annual amounts.--
                        Subject to clause (iii) of this 
                        subparagraph, in addition to the loan 
                        amount for an academic year described 
                        in subparagraph (A)(ii)--
                                  (I) a graduate or 
                                professional student who is 
                                enrolled in a program of study 
                                to become a doctor of 
                                allopathic medicine, doctor of 
                                osteopathic medicine, doctor of 
                                dentistry, doctor of veterinary 
                                medicine, doctor of optometry, 
                                doctor of podiatric medicine, 
                                doctor of naturopathic 
                                medicine, or doctor of 
                                naturopathy may borrow an 
                                additional--
                                          (aa) in the case of a 
                                        program with a 9-month 
                                        academic year, $20,000 
                                        for an academic year; 
                                        or
                                          (bb) in the case of a 
                                        program with a 12-month 
                                        academic year, $26,667 
                                        for an academic year; 
                                        and
                                  (II) a graduate or 
                                professional student who is 
                                enrolled in a program of study 
                                to become a doctor of pharmacy, 
                                doctor of chiropractic 
                                medicine, or a physician's 
                                assistant, or receive a 
                                graduate degree in public 
                                health, doctoral degree in 
                                clinical psychology, or a 
                                masters or doctoral degree in 
                                health administration may 
                                borrow an additional--
                                          (aa) in the case of a 
                                        program with a 9-month 
                                        academic year, $12,500 
                                        for an academic year; 
                                        or
                                          (bb) in the case of a 
                                        program with a 12-month 
                                        academic year, $16,667 
                                        for an academic year.
                          (ii) Aggregate limit.--Subject to 
                        clause (iii) of this subparagraph, the 
                        maximum aggregate amount of loans under 
                        this part and parts B and D that a 
                        student described in clause (i) may 
                        borrow shall be $235,500.
                          (iii) Limitation.--In the case of a 
                        graduate or professional student 
                        described in clause (i) of this 
                        subparagraph who has received loans 
                        made under part B or D for enrollment 
                        in a graduate or professional program 
                        at an eligible institution, the total 
                        amount of which equal or exceed $28,500 
                        as of the time of disbursement, the 
                        student may continue to borrow the 
                        amount of loans under this part 
                        necessary to complete such program 
                        without regard to the aggregate limit 
                        under clause (ii) of this subparagraph, 
                        except that the--
                                  (I) amount of such loans 
                                shall not exceed the annual 
                                limits under clause (i) of this 
                                subparagraph for any academic 
                                year beginning after June 30, 
                                2019; and
                                  (II) authority to borrow 
                                loans in accordance with this 
                                subclause shall terminate at 
                                the end of the academic year 
                                ending before September 30, 
                                2024.
  (c) Interest Rate Provisions for Federal ONE Loans.--
          (1) Undergraduate One Loans.--For Federal ONE Loans 
        issued to undergraduate students, the applicable rate 
        of interest shall, for loans disbursed 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 
        the lesser of--
                  (A) a rate equal to the high yield of the 10-
                year Treasury note auctioned at the final 
                auction held prior to such June 1 plus 2.05 
                percent; or
                  (B) 8.25 percent.
          (2) Graduate and Professional one loans.--For Federal 
        ONE Loans issued to graduate or professional students, 
        the applicable rate of interest shall, for loans 
        disbursed 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 the lesser of--
                  (A) a rate equal to the high yield of the 10-
                year Treasury note auctioned at the final 
                auction held prior to such June 1 plus 3.6 
                percent; or
                  (B) 9.5 percent.
          (3) Parent one loans.--For Federal ONE Parent Loans, 
        the applicable rate of interest shall, for loans 
        disbursed 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 the lesser of--
                  (A) a rate equal to the high yield of the 10-
                year Treasury note auctioned at the final 
                auction held prior to such June 1 plus 4.6 
                percent; or
                  (B) 10.5 percent.
          (4) Consolidation loans.--Any Federal ONE 
        Consolidation Loan for which the application is 
        received on or after July 1, 2019, shall bear interest 
        at an annual rate on the unpaid principal balance of 
        the loan that is equal to the weighted average of the 
        interest rates on the loans consolidated, rounded to 
        the nearest higher one-eighth of one percent.
          (5) 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.
          (6) Rate.--The applicable rate of interest determined 
        under this subsection for a loan under this part shall 
        be fixed for the period of the loan.
  (d) Prohibition on Certain Repayment Incentives.--
Notwithstanding any other provision of this part, the Secretary 
is prohibited from authorizing or providing any repayment 
incentive or subsidy not otherwise authorized under this part 
to encourage on-time repayment of a loan under this part, 
including any reduction in the interest paid by a borrower of 
such a loan, except that the Secretary may provide for an 
interest rate reduction of not more than 0.25 percentage points 
for a borrower who agrees to have payments on such a loan 
automatically debited from a bank account.
  (e) Loan Fee.--The Secretary shall not charge the borrower of 
a loan made under this part an origination fee.
  (f) Armed Forces Student Loan Interest Payment Program.--
          (1) Authority.--Using funds received by transfer to 
        the Secretary under section 2174 of title 10, United 
        States Code, for the payment of interest on a loan made 
        under this part to a member of the Armed Forces, the 
        Secretary shall pay the interest on the loan as due for 
        a period not in excess of 36 consecutive months. The 
        Secretary may not pay interest on such a loan out of 
        any funds other than funds that have been so 
        transferred.
          (2) Deferment.--During the period in which the 
        Secretary is making payments on a loan under paragraph 
        (1), the Secretary shall grant the borrower 
        administrative deferment, in the form of a temporary 
        cessation of all payments on the loan other than the 
        payments of interest on the loan that are made under 
        that paragraph.
  (g) No Accrual of Interest for Active Duty Service Members.--
          (1) In general.--Notwithstanding any other provision 
        of this part and in accordance with paragraphs (2) and 
        (4), interest shall not accrue for an eligible military 
        borrower on a loan made under this part.
          (2) Consolidation loans.--In the case of any 
        consolidation loan made under this part, interest shall 
        not accrue pursuant to this subsection only on such 
        portion of such loan as was used to repay a loan made 
        under this part or a loan made under part D for which 
        the first disbursement was made on or after October 1, 
        2008, and before July 1, 2019.
          (3) Eligible military borrower.--In this subsection, 
        the term ``eligible military borrower'' means an 
        individual who--
                  (A)(i) is serving on active duty during a war 
                or other military operation or national 
                emergency; or
                  (ii) is performing qualifying National Guard 
                duty during a war or other military operation 
                or national emergency; and
                  (B) is serving in an area of hostilities in 
                which service qualifies for special pay under 
                section 310 of title 37, United States Code.
          (4) Limitation.--An individual who qualifies as an 
        eligible military borrower under this subsection may 
        receive the benefit of this subsection for not more 
        than 60 months.

SEC. 466. REPAYMENT.

  (a) Repayment Period; Commencement of Repayment.--
          (1) Repayment period.--
                  (A) In general.--In the case of a Federal ONE 
                Loan (other than a Federal ONE Consolidation 
                Loan or a Federal ONE Parent Loan)--
                          (i) subject to clause (ii), the 
                        repayment period shall--
                                  (I) exclude any period of 
                                authorized deferment under 
                                section 469A; and
                                  (II) 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); 
                                and
                          (ii) interest shall begin to accrue 
                        or be paid by the borrower on the day 
                        the loan is disbursed.
                  (B) Consolidation and Parent Loans.--In the 
                case of a Federal ONE Consolidation Loan or a 
                Federal ONE Parent Loan, the repayment period 
                shall--
                          (i) exclude any period of authorized 
                        deferment; and
                          (ii) begin--
                                  (I) on the day the loan is 
                                disbursed; or
                                  (II) if the loan is disbursed 
                                in multiple installments, on 
                                the day of the last such 
                                disbursement.
                  (C) Active duty exclusion.--There shall be 
                excluded from the 6-month period that begins on 
                the date on which a student ceases to carry at 
                least one-half the normal full-time academic 
                workload as described in subparagraph (A) any 
                period not to exceed 3 years during which a 
                borrower who is a member of a reserve component 
                of the Armed Forces named in section 10101 of 
                title 10, United States Code, is called or 
                ordered to active duty for a period of more 
                than 30 days (as defined in section 101(d)(2) 
                of such title). Such period of exclusion shall 
                include the period necessary to resume 
                enrollment at the borrower's next available 
                regular enrollment period.
          (2) Payment of Principal and Interest.--
                  (A) Commencement of repayment.--Repayment of 
                principal on loans made under this part shall 
                begin at the beginning of the repayment period 
                described in paragraph (1).
                  (B) Capitalization of interest.--
                          (i) In general.--Interest on loans 
                        made under this part for which payments 
                        of principal are not required during 
                        the 6-month period described in 
                        paragraph (1)(A)(i)(II) or for which 
                        payments are deferred under section 
                        469A shall--
                                  (I) be paid monthly or 
                                quarterly; or
                                  (II) be added to the 
                                principal amount of the loan 
                                only--
                                          (aa) when the loan 
                                        enters repayment;
                                          (bb) at the 
                                        expiration of a the 6-
                                        month period described 
                                        in paragraph 
                                        (1)(A)(i)(II);
                                          (cc) at the 
                                        expiration of a period 
                                        of deferment, unless 
                                        otherwise exempted; or
                                          (dd) when the 
                                        borrower defaults.
                          (ii) Maximum aggregate limit.--
                        Interest capitalized shall not be 
                        deemed to exceed the amount equal to 
                        the maximum aggregate limit of the loan 
                        under section 465(b).
                  (C) Notice.--Not less than 60 days, and again 
                not less than 30 days, prior to the anticipated 
                commencement of the repayment period for a 
                Federal ONE Loan, the Secretary shall provide 
                notice to the borrower--
                          (i) that interest will accrue before 
                        repayment begins;
                          (ii) that interest will be added to 
                        the principal amount of the loan in the 
                        cases described in subparagraph 
                        (B)(i)(II); and
                          (iii) of the borrower's option to 
                        begin loan repayment prior to such 
                        repayment period.
  (b) Repayment Amount.--
          (1) In general.--The total of the payments by a 
        borrower, except as otherwise provided by an income-
        based repayment plan under subsection (d), during any 
        year of any repayment period with respect to the 
        aggregate amount of all loans made under this part to 
        the borrower shall not (unless the borrower and the 
        Secretary otherwise agree), be less than $600 or the 
        balance of all such loans (together with interest 
        thereon), whichever amount is less (but in no instance 
        less than the amount of interest due and payable, 
        notwithstanding any repayment plan described in 
        subsection (c)).
          (2) Amortization.--
                  (A) Interest rate.--The amount of the 
                periodic payment and the repayment schedule for 
                a loan made under this part shall be 
                established by assuming an interest rate equal 
                to the applicable rate of interest at the time 
                of the first disbursement of the loan.
                  (B) Adjustment to repayment amount.--The note 
                or other written evidence of a loan under this 
                part shall require that the amount of the 
                periodic payment will be adjusted annually in 
                order to reflect adjustments in--
                          (i) interest rates occurring as a 
                        consequence of variable rate loans 
                        under parts B or D paid in conjunction 
                        with Federal ONE Loans under subsection 
                        (d)(1)(B)(i); or
                          (ii) principal occurring as a 
                        consequence of interest capitalization 
                        under subsection (a)(2)(B).
  (c) Repayment Plans.--
          (1) Design and selection.--Not more than 6 months 
        prior to the date on which a borrower's first payment 
        on a loan made under this part is due, the Secretary 
        shall offer the borrower two 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 
                monthly repayment amount paid over a fixed 
                period of time, not to exceed 10 years; or
                  (B) an income-based repayment plan under 
                subsection (d).
          (2) Selection by secretary.--If a borrower of a loan 
        made under this part does not select a repayment plan 
        described in paragraph (1), the Secretary shall provide 
        the borrower with the repayment plan described in 
        paragraph (1)(A).
          (3) Changes in selections.--
                  (A) In general.--Subject to subparagraph (B), 
                the borrower of a loan made under this part may 
                change the borrower's selection of a repayment 
                plan under paragraph (1), or the Secretary's 
                selection of a plan for the borrower under 
                paragraph (2), as the case may be, under such 
                terms and conditions as may be established by 
                the Secretary, except that the Secretary may 
                not establish any terms or conditions with 
                respect to whether a borrower may change the 
                borrower's repayment plan. Nothing in this 
                subsection shall prohibit the Secretary from 
                encouraging struggling borrowers from enrolling 
                in the income-driven repayment plan described 
                in section 466(d).
                  (B) Same repayment plan required.--All loans 
                made under this part to a borrower shall be 
                repaid under the same repayment plan under 
                paragraph (1), except that the borrower may 
                repay a Federal ONE Parent Loan or an Excepted 
                Federal ONE Consolidation Loan (as defined in 
                subsection (d)(5)) separately from other loans 
                made under this part to the borrower.
          (4) Repayment after default.--The Secretary may 
        require any borrower who has defaulted on a loan made 
        under this part to--
                  (A) pay all reasonable collection costs 
                associated with such loan; and
                  (B) repay the loan pursuant to the income-
                based repayment plan under subsection (d).
          (5) Repayment period.--For purposes of calculating 
        the repayment period under this subsection, such period 
        shall commence at the time the first payment of 
        principal is due from the borrower.
          (6) Installments.-- Repayment of loans under this 
        part shall be in installments in accordance with the 
        repayment plan selected under paragraph (1) and 
        commencing at the beginning of the repayment period 
        determined under paragraph (5).
  (d) Income-Based Repayment Program.--
          (1) In general.--Notwithstanding any other provision 
        of this Act, the Secretary shall carry out a program 
        under which--
                  (A) a borrower of any loan made under this 
                part (other than a Federal ONE Parent Loan or 
                an Excepted Federal ONE Consolidation Loan) may 
                elect to have the borrower's aggregate monthly 
                payment for all such loans--
                          (i) not to exceed the result obtained 
                        by dividing by 12, 15 percent of the 
                        result obtained by calculating, on at 
                        least an annual basis, the amount by 
                        which--
                                  (I) the adjusted gross income 
                                of the borrower or, if the 
                                borrower is married and files a 
                                Federal income tax return 
                                jointly with or separately from 
                                the borrower's spouse, the 
                                adjusted gross income of the 
                                borrower and the borrower's 
                                spouse; exceeds
                                  (II) 150 percent of the 
                                poverty line applicable to the 
                                borrower's family size as 
                                determined under section 673(2) 
                                of the Community Services Block 
                                Grant Act (42 U.S.C. 9902(2)); 
                                and
                          (ii) not to be less than $25;
                  (B) the Secretary adjusts the calculated 
                monthly payment under subparagraph (A), if--
                          (i) in addition to the loans 
                        described in subparagraph (A), the 
                        borrower has an outstanding loan made 
                        under part B or D (other than an 
                        excepted parent loan or an excepted 
                        consolidation loan, as such terms are 
                        defined in section 493C(a)), by 
                        determining the borrower's adjusted 
                        monthly payment by multiplying--
                                  (I) the calculated monthly 
                                payment, by
                                  (II) the percentage of the 
                                total outstanding principal 
                                amount of the borrower's loans 
                                described in the matter 
                                preceding subclause (I), which 
                                are described in subparagraph 
                                (A);
                          (ii) the borrower and borrower's 
                        spouse have loans described in 
                        subparagraph (A) and outstanding loans 
                        under part B or D (other than an 
                        excepted parent loan or an excepted 
                        consolidation loan, as such terms are 
                        defined in section 493C(a)) and have 
                        filed a joint or separate Federal 
                        income tax return, in which case the 
                        Secretary determines--
                                  (I) each borrower's 
                                percentage of the couple's 
                                total outstanding amount of 
                                principal on such loans;
                                  (II) the adjusted monthly 
                                payment for each borrower by 
                                multiplying the borrower's 
                                calculated monthly payment by 
                                the percentage determined under 
                                subclause (I) applicable to the 
                                borrower; and
                                  (III) if the borrower's loans 
                                are held by multiple holders, 
                                the borrower's adjusted monthly 
                                payment for loans described in 
                                subparagraph (A) by multiplying 
                                the adjusted monthly payment 
                                determined under subclause (II) 
                                by the percentage of the total 
                                outstanding principal amount of 
                                the borrower's loans described 
                                in the matter preceding 
                                subclause (I), which are 
                                described in subparagraph (A);
                  (C) the holder of such a loan shall apply the 
                borrower's monthly payment under this 
                subsection first toward interest due on the 
                loan, next toward any fees due on the loan, and 
                then toward the principal of the loan;
                  (D) any principal due and not paid under 
                subparagraph (C) shall be deferred;
                  (E) any interest due and not paid under 
                subparagraph (C) shall be capitalized, at the 
                time the borrower--
                          (i) ends the election to make income-
                        based repayment under this subsection; 
                        or
                          (ii) begins making payments of not 
                        less than the amount specified in 
                        subparagraph (G)(i);
                  (F) the amount of time the borrower makes 
                monthly payments under subparagraph (A) may 
                exceed 10 years;
                  (G) if the borrower no longer wishes to 
                continue the election under this subsection, 
                then--
                          (i) the maximum monthly payment 
                        required to be paid for all loans made 
                        to the borrower under this part (other 
                        than a Federal ONE Parent Loan or an 
                        Excepted Federal ONE Consolidation 
                        Loan) shall not exceed the monthly 
                        amount calculated under subsection 
                        (c)(1)(A), based on a 10-year repayment 
                        period, when the borrower first made 
                        the election described in this 
                        subsection; and
                          (ii) the amount of time the borrower 
                        is permitted to repay such loans may 
                        exceed 10 years;
                  (H) the Secretary shall cancel any 
                outstanding balance (other than an amount equal 
                to the interest accrued during any period of 
                in-school deferment under subparagraph (A), 
                (B), or (F) of section 469A(b)(1)) due on all 
                loans made under this part (other than a 
                Federal ONE Parent Loan or an Excepted Federal 
                ONE Consolidation Loan) to a borrower--
                          (i) who, at any time, elected to 
                        participate in income-based repayment 
                        under subparagraph (A);
                          (ii) whose final monthly payment for 
                        such loans prior to the loan 
                        cancellation under this subparagraph 
                        was made under such income-based 
                        repayment; and
                          (iii) who has repaid, pursuant to 
                        income-based repayment under 
                        subparagraph (A), a standard repayment 
                        plan under subsection (c)(1)(A), or a 
                        combination--
                                  (I) an amount on such loans 
                                that is equal to the total 
                                amount of principal and 
                                interest that the borrower 
                                would have repaid under a 
                                standard repayment plan under 
                                subsection (c)(1)(A), based on 
                                a 10-year repayment period, 
                                when the borrower entered 
                                repayment on such loans; and
                                  (II) the amount of interest 
                                that accrues during a period of 
                                deferment described in section 
                                469A prior to the completion of 
                                the repayment period described 
                                in subclause (I) on the portion 
                                of such loans remaining to be 
                                repaid in accordance with such 
                                subclause; and
                  (I) a borrower who is repaying a loan made 
                under this part pursuant to income-based 
                repayment under subparagraph (A) may elect, at 
                any time during the 10-year period beginning on 
                the date the borrower entered repayment on the 
                loan, to terminate repayment pursuant to such 
                income-based repayment and repay such loan 
                under the standard repayment plan.
          (2) Eligibility determinations.--
                  (A) In general.--The Secretary shall 
                establish procedures for annual verification of 
                a borrower's annual income and the annual 
                amount due on the total amount of loans made 
                under this part (other than a Federal ONE 
                Parent Loan or an Excepted Federal ONE 
                Consolidation Loan), and such other procedures 
                as are necessary to implement effectively 
                income-based repayment under this subsection, 
                including the procedures established with 
                respect to section 493C.
                  (B) Income information.--The Secretary may 
                obtain such information as is reasonably 
                necessary regarding the income of a borrower 
                (and the borrower's spouse, if applicable) of a 
                loan made under this part that is, or may be, 
                repaid pursuant to income-based repayment under 
                this subsection, for the purpose of determining 
                the annual repayment obligation of the 
                borrower. The Secretary shall establish 
                procedures for determining the borrower's 
                repayment obligation on that loan for such 
                year, and such other procedures as are 
                necessary to implement effectively the income-
                based repayment under this subsection.
                  (C) Borrower requirements.--A borrower who 
                chooses to repay a loan made under this part 
                pursuant to income-based repayment under this 
                subsection, and--
                          (i) for whom adjusted gross income is 
                        available and reasonably reflects the 
                        borrower's current income, shall, to 
                        the maximum extent practicable, provide 
                        to the Secretary the Federal tax 
                        information of the borrower; and
                          (ii) for whom adjusted gross income 
                        is unavailable or does not reasonably 
                        reflect the borrower's current income, 
                        shall provide to the Secretary other 
                        documentation of income satisfactory to 
                        the Secretary, which documentation the 
                        Secretary may use to determine an 
                        appropriate repayment schedule.
          (3) Notification to borrowers.--The Secretary shall 
        establish procedures under which a borrower of a loan 
        made under this part who chooses to repay such loan 
        pursuant to income-based repayment under this 
        subsection is notified of the terms and conditions of 
        such plan, including notification that if a borrower 
        considers that special circumstances, such as a loss of 
        employment by the borrower or the borrower's spouse, 
        warrant an adjustment in the borrower's loan repayment 
        as determined using the borrower's Federal tax return 
        information, or the alternative documentation described 
        in paragraph (2)(C), the borrower may contact the 
        Secretary, who shall determine whether such adjustment 
        is appropriate, in accordance with criteria established 
        by the Secretary.
          (4) Reduced payment periods.--
                  (A) In general.--The Secretary shall 
                authorize borrowers meeting the criteria under 
                subparagraph (B) to make monthly payments of $5 
                for a period not in excess of 3 years, except 
                that--
                          (i) for purposes of subparagraph 
                        (B)(i), the Secretary may authorize 
                        reduced payments in 6-month increments, 
                        beginning on the date the borrower 
                        provides to the Secretary the evidence 
                        described in subclause (I) or (II) of 
                        subparagraph (B)(i); and
                          (ii) for purposes of subparagraph 
                        (B)(ii), the Secretary may authorize 
                        reduced payments in 3-month increments, 
                        beginning on the date the borrower 
                        provides to the Secretary the evidence 
                        described in subparagraph (B)(ii)(I).
                  (B) Eligibility determinations.--The 
                Secretary shall authorize borrowers to make 
                reduced payments under this paragraph in the 
                following circumstances:
                          (i) In a case of borrower who is 
                        seeking and unable to find full-time 
                        employment, as demonstrated by 
                        providing to the Secretary--
                                  (I) evidence of the 
                                borrower's eligibility for 
                                unemployment benefits to the 
                                Secretary; or
                                  (II) a written certification 
                                or an equivalent that--
                                          (aa) the borrower has 
                                        registered with a 
                                        public or private 
                                        employment agency that 
                                        is available to the 
                                        borrower within a 50-
                                        mile radius of the 
                                        borrower's home 
                                        address; and
                                          (bb) in the case of a 
                                        borrower that has been 
                                        granted a request under 
                                        this subparagraph, the 
                                        borrower has made at 
                                        least six diligent 
                                        attempts during the 
                                        preceding six-month 
                                        period to secure full-
                                        time employment.
                          (ii) The Secretary determines that, 
                        due to high medical expenses, the $25 
                        monthly payment the borrower would 
                        otherwise make would be an extreme 
                        economic hardship to the borrower, if--
                                  (I) the borrower documents 
                                the reason why the $25 minimum 
                                payment is an extreme economic 
                                hardship; and
                                  (II) the borrower recertifies 
                                the reason for the $5 minimum 
                                payment on a three-month basis.
                  (C) Definition.--For purpose of this section, 
                the term ``full-time employment'' means 
                employment that will provide not less than 30 
                hours of work a week and is expected to 
                continue for a period of not less than 3 
                months.
          (5) Definitions.--In this subsection:
                  (A) Adjusted gross income.--The term 
                ``adjusted gross income'' has the meaning given 
                the term in section 62 of the Internal Revenue 
                Code of 1986.
                  (B) Excepted Federal ONE Consolidation 
                Loan.--The term ``Excepted Federal ONE 
                Consolidation Loan'' means a Federal ONE 
                Consolidation Loan if the proceeds of such loan 
                were used to discharge the liability on--
                          (i) a Federal ONE Parent Loan;
                          (ii) a Federal Direct PLUS Loan, or a 
                        loan under section 428B, that is made, 
                        insured, or guaranteed on behalf of a 
                        dependent student;
                          (iii) an excepted consolidation loan 
                        (defined in section 493C); or
                          (iv) a Federal ONE Consolidation loan 
                        that was used to discharge the 
                        liability on a loan described in clause 
                        (i), (ii), or (iii).
  (e) Rules of Construction.--Nothing in this section shall be 
construed to authorize, with respect to loans made under this 
part--
          (1) eligibility for a repayment plan that is not 
        described in subsection (c)(1) or section 468(c); or
          (2) the Secretary to--
                  (A) carry out a repayment plan, which is not 
                described in subsection (c)(1) or section 
                468(c); or
                  (B) modify a repayment plan that is described 
                in subsection (c)(1) or section 468(c).

SEC. 467. FEDERAL ONE PARENT LOANS.

  (a) Authority To Borrow.--
          (1) Authority and eligibility.--The parent of a 
        dependent student shall be eligible to borrow funds 
        under this section in amounts specified in subsection 
        (b), if--
                  (A) the parent is borrowing to pay for the 
                educational costs of a dependent student who 
                meets the requirements for an eligible student 
                under section 484(a);
                  (B) the parent meets the applicable 
                requirements concerning defaults and 
                overpayments that apply to a student borrower;
                  (C) the parent complies with the requirements 
                for submission of a statement of educational 
                purpose that apply to a student borrower under 
                section 484(a)(4)(A) (other than the completion 
                of a statement of selective service 
                registration status);
                  (D) the parent meets the requirements that 
                apply to a student under section 437(a);
                  (E) the parent--
                          (i) does not have an adverse credit 
                        history; or
                          (ii) has an adverse credit history, 
                        but has--
                                  (I) obtained an endorser who 
                                does not have an adverse credit 
                                history or documented to the 
                                satisfaction of the Secretary 
                                that extenuating circumstances 
                                exist in accordance with 
                                paragraph (4)(D); and
                                  (II) completed Federal ONE 
                                Parent Loan counseling offered 
                                by the Secretary; and
                  (F) in the case of a parent who 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.
          (2) Terms, conditions, and benefits.--Except as 
        provided in subsections (c), (d), and (e), loans made 
        under this section shall have the same terms, 
        conditions, and benefits as all other loans made under 
        this part.
          (3) Parent borrowers.--
                  (A) Definition.--For purposes of this 
                section, the term ``parent'' includes a 
                student's biological or adoptive mother or 
                father or the student's stepparent, if the 
                biological parent or adoptive mother or father 
                has remarried at the time of filing the common 
                financial reporting form under section 483(a), 
                and that spouse's income and assets would have 
                been taken into account when calculating the 
                student's expected family contribution.
                  (B) Clarification.--Whenever necessary to 
                carry out the provisions of this section, the 
                terms ``student'' and ``borrower'' as used in 
                this part shall include a parent borrower under 
                this section.
          (4) Adverse credit history definitions and 
        adjustments.--
                  (A) Definitions.--For purposes of this 
                section:
                          (i) In general.--The term ``adverse 
                        credit history'', when used with 
                        respect to a borrower, means that the 
                        borrower--
                                  (I) has one or more debts 
                                with a total combined 
                                outstanding balance equal to or 
                                greater than $2,085, as may be 
                                adjusted by the Secretary in 
                                accordance with subparagraph 
                                (B), that--
                                          (aa) are 90 or more 
                                        days delinquent as of 
                                        the date of the credit 
                                        report; or
                                          (bb) have been placed 
                                        in collection or 
                                        charged off during the 
                                        two years preceding the 
                                        date of the credit 
                                        report; or
                                  (II) has been the subject of 
                                a default determination, 
                                bankruptcy discharge, 
                                foreclosure, repossession, tax 
                                lien, wage garnishment, or 
                                write-off of a debt under this 
                                title during the 5 years 
                                preceding the date of the 
                                credit report.
                          (ii) Charged off.--The term ``charged 
                        off'' means a debt that a creditor has 
                        written off as a loss, but that is 
                        still subject to collection action.
                          (iii) In collection.-- The term ``in 
                        collection'' means a debt that has been 
                        placed with a collection agency by a 
                        creditor or that is subject to more 
                        intensive efforts by a creditor to 
                        recover amounts owed from a borrower 
                        who has not responded satisfactorily to 
                        the demands routinely made as part of 
                        the creditor's billing procedures.
                  (B) Adjustments.--
                          (i) In general.--In a case of a 
                        borrower with a debt amount described 
                        in subparagraph (A)(i), the Secretary 
                        shall increase such debt amount, or its 
                        inflation-adjusted equivalent, if the 
                        Secretary determines that an inflation 
                        adjustment to such debt amount would 
                        result in an increase of $100 or more 
                        to such debt amount.
                          (ii) Inflation adjustment.--In making 
                        the inflation adjustment under clause 
                        (i), the Secretary shall--
                                  (I) use the annual average 
                                percent change of the All Items 
                                Consumer Price Index for All 
                                Urban Consumers, before 
                                seasonal adjustment, as the 
                                measurement of inflation; and
                                  (II) if the adjustment 
                                calculated under subclause (I) 
                                is equal to or greater than 
                                $100--
                                          (aa) add the 
                                        adjustment to the debt 
                                        amount, or its 
                                        inflation-adjusted 
                                        equivalent; and
                                          (bb) round up to the 
                                        nearest $5.
                          (iii) Publication.--The Secretary 
                        shall publish a notice in the Federal 
                        Register announcing any increase to the 
                        threshold amount specified in 
                        subparagraph (A)(i)(I).
                  (C) Treatment of absence of credit history.--
                For purposes of this section, the Secretary 
                shall not consider the absence of a credit 
                history as an adverse credit history and shall 
                not deny a Federal ONE Parent loan on that 
                basis.
                  (D) Extenuating circumstances.--For purposes 
                of this section, the Secretary may determine 
                that extenuating circumstances exist based on 
                documentation that may include--
                          (i) an updated credit report for the 
                        parent; or
                          (ii) a statement from the creditor 
                        that the parent has repaid or made 
                        satisfactory arrangements to repay a 
                        debt that was considered in determining 
                        that the parent has an adverse credit 
                        history
  (b) Limitation Based on Need.--Any loan under this section 
may be counted as part of the expected family contribution in 
the determination of need under this title, but no loan may be 
made to any parent under this section for any academic year in 
excess of the lesser of--
          (1) the student's estimated cost of attendance minus 
        the student's estimated financial assistance (as 
        calculated under section 465(b)(1)(A)); or
          (2) the established annual loan limits for such loan 
        under section 465(b).
  (c) Parent Loan Disbursement.--All loans made under this 
section shall be disbursed in accordance with the requirements 
of section 465(a) and shall be disbursed by--
          (1) an electronic transfer of funds from the lender 
        to the eligible institution; or
          (2) a check copayable to the eligible institution and 
        the parent borrower.
  (d) Payment of Principal and Interest.--
          (1) Commencement of repayment.--Repayment of 
        principal on loans made under this section shall 
        commence not later than 60 days after the date such 
        loan is disbursed by the Secretary, subject to 
        deferral--
                  (A) during any period during which the parent 
                borrower meets the conditions required for a 
                deferral under section 469A; and
                  (B) upon the request of the parent borrower, 
                during the 6-month period beginning, if the 
                parent borrower is also a student, the day 
                after the date such parent borrower ceases to 
                carry at least one-half such a workload.
          (2) Maximum repayment period.--The maximum repayment 
        period for a loan made under this section shall be a 
        10-year period beginning on the commencement of such 
        period described in paragraph (1).
          (3) Capitalization of interest.--Interest on loans 
        made under this section for which payments of principal 
        are deferred pursuant to paragraph (1) shall, if agreed 
        upon by the borrower and the Secretary--
                  (A) be paid monthly or quarterly; or
                  (B) be added to the principal amount of the 
                loan not more frequently than quarterly by the 
                Secretary.
          (4) Applicable rates of interest.--Interest on loans 
        made pursuant to this section shall be at the 
        applicable rate of interest provided in section 
        465(c)(3) for loans made under this section.
          (5) Amortization.--Section 466(b)(2) shall apply to 
        each loan made under this section.
  (e) Verification of Immigration Status and Social Security 
Number.--A parent who wishes to borrow funds under this section 
shall be subject to verification of the parent's--
          (1) immigration status in the same manner as 
        immigration status is verified for students under 
        section 484(g); and
          (2) social security number in the same manner as 
        social security numbers are verified for students under 
        section 484(p).
  (f) Designation.--For purposes of this Act, the Federal ONE 
Loans described in this section shall be known as ``Federal ONE 
Parent Loans''.

SEC. 468. FEDERAL ONE CONSOLIDATION LOANS.

  (a) Terms and Conditions.--In making consolidation loans 
under this section, the Secretary shall--
          (1) not make such a loan to an eligible borrower, 
        unless the Secretary has determined, in accordance with 
        reasonable and prudent business practices, for each 
        loan being consolidated, that the loan--
                  (A) is a legal, valid, and binding obligation 
                of the borrower; and
                  (B) was made and serviced in compliance with 
                applicable laws and regulations;
          (2) ensure that each consolidation loan made under 
        this section will bear interest, and be subject to 
        repayment, in accordance with subsection (c), except as 
        otherwise provided under subsections (f) and (g) of 
        section 465;
          (3) ensure that each consolidation loan will be made, 
        notwithstanding any other provision of this part 
        limiting the annual or aggregate principal amount for 
        all loans made to a borrower, in an amount 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;
          (4) ensure that the proceeds of each consolidation 
        loan will be paid by the Secretary to the holder or 
        holders of the loans so selected to discharge the 
        liability on such loans;
          (5) disclose to a prospective borrower, in simple and 
        understandable terms, at the time the Secretary 
        provides an application for a consolidation loan--
                  (A) with respect to a loan made, insured, or 
                guaranteed under this part, part B, or part D, 
                that if a borrower includes such a loan in the 
                consolidation loan--
                          (i) that the consolidation would 
                        result in a loss of loan benefits; and
                          (ii) which specific loan benefits the 
                        borrower would lose, including the loss 
                        of eligibility for loan forgiveness 
                        (including loss of eligibility for 
                        interest rate forgiveness), 
                        cancellation, deferment, forbearance, 
                        interest-free periods, or loan 
                        repayment programs that would have been 
                        available for such a loan; and
                  (B) with respect to Federal Perkins Loans 
                under this part (as this part was in effect on 
                the day before the date of enactment of the 
                PROSPER Act)--
                          (i) that if a borrower includes such 
                        a Federal Perkins Loan in the 
                        consolidation loan, the borrower will 
                        lose all interest-free periods that 
                        would have been available for the 
                        Federal Perkins Loan, such as--
                                  (I) the periods during which 
                                no interest accrues on such 
                                loan while the borrower is 
                                enrolled in an institution of 
                                higher education at least half-
                                time;
                                  (II) the grace period under 
                                section 464(c)(1)(A) (as such 
                                section was in effect on the 
                                day before the date of 
                                enactment of the PROSPER Act); 
                                and
                                  (III) the periods during 
                                which the borrower's student 
                                loan repayments are deferred 
                                under section 464(c)(2) (as 
                                such section was in effect on 
                                the day before the date of 
                                enactment of the PROSPER Act); 
                                and
                          (ii) that if a borrower includes such 
                        a Federal Perkins Loan in the 
                        consolidation loan, the borrower will 
                        no longer be eligible for cancellation 
                        of part or all of the Federal Perkins 
                        Loan under section 465(a) (as such 
                        section was in effect on the day before 
                        the date of enactment of the PROSPER 
                        Act); and
                          (iii) the occupations listed in 
                        section 465 that qualify for Federal 
                        Perkins Loan cancellation under section 
                        465(a) (as such section was in effect 
                        on the day before the date of enactment 
                        of the PROSPER Act);
                  (C) the repayment plans that are available to 
                the borrower under section (c);
                  (D) the options of the borrower to prepay the 
                consolidation loan, to pay such loan on a 
                shorter schedule, and to change repayment 
                plans;
                  (E) the consequences of default on the 
                consolidation loan; and
                  (F) that by applying for a consolidation 
                loan, the borrower is not obligated to agree to 
                take the consolidation loan; and
          (6) not make such a loan to an eligible borrower, 
        unless--
                  (A) the borrower has agreed to notify the 
                Secretary promptly concerning any change of 
                address; and
                  (B) the loan is evidenced by a note or other 
                written agreement which--
                          (i) is made without security and 
                        without endorsement, except that if--
                                  (I) the borrower is a minor 
                                and such note or other written 
                                agreement executed by him or 
                                her would not, under applicable 
                                law, create a binding 
                                obligation, endorsement may be 
                                required; or
                                  (II) the borrower desires to 
                                include in the consolidation 
                                loan, a Federal ONE Parent 
                                Loan, or a loan under section 
                                428B, or a Federal Direct PLUS 
                                loan, made on behalf of a 
                                dependent student, endorsement 
                                shall be required;
                          (ii) provides for the payment of 
                        interest and the repayment of principal 
                        as described in paragraph (2);
                          (iii) provides that during any period 
                        for which the borrower would be 
                        eligible for a deferral under section 
                        469A, which period shall not be 
                        included in determining the repayment 
                        schedule pursuant to subsection (c)--
                                  (I) periodic installments of 
                                principal need not be paid, but 
                                interest shall accrue and be 
                                paid by the borrower or be 
                                capitalized; and
                                  (II) except as otherwise 
                                provided under subsections (f) 
                                and (g) of section 465, the 
                                Secretary shall not pay 
                                interest on any portion of the 
                                consolidation loan, without 
                                regard to whether the portion 
                                repays Federal Stafford Loans 
                                for which the student borrower 
                                received an interest subsidy 
                                under section 428 or Federal 
                                Direct Stafford Loans for which 
                                the borrower received an 
                                interest subsidy under section 
                                455;
                          (iv) entitles the borrower to 
                        accelerate without penalty repayment of 
                        the whole or any part of the loan; and
                          (v) contains a notice of the system 
                        of disclosure concerning such loan to 
                        consumer reporting agencies under 
                        section 430A, and provides that the 
                        Secretary on request of the borrower 
                        will provide information on the 
                        repayment status of the note to such 
                        consumer reporting agencies.
  (b) Nondiscrimination in Loan Consolidation.--The Secretary 
shall not discriminate against any borrower seeking a loan 
under this section--
          (1) based on the number or type of eligible student 
        loans the borrower seeks to consolidate;
          (2) based on the type or category of institution of 
        higher education that the borrower attended;
          (3) based on the interest rate to be charged to the 
        borrower with respect to the consolidation loan; or
          (4) with respect to the types of repayment schedules 
        offered to such borrower.
  (c) Payment of Principal and Interest.--
          (1) Repayment schedules.--
                  (A) Establishment.--
                          (i) In general.--Notwithstanding any 
                        other provision of this part, the 
                        Secretary shall--
                                  (I) establish repayment terms 
                                as will promote the objectives 
                                of this section; and
                                  (II) provide a borrower with 
                                the option of the standard-
                                repayment plan or income-based 
                                repayment plan under section 
                                466(d) in lieu of such 
                                repayment terms.
                          (ii) Schedule terms.--The repayment 
                        terms established under clause (i)(I) 
                        shall require that if the sum of the 
                        consolidation loan and the amount 
                        outstanding on other eligible student 
                        loans to the individual--
                                  (I) is less than $7,500, then 
                                such consolidation loan shall 
                                be repaid in not more than 10 
                                years;
                                  (II) is equal to or greater 
                                than $7,500 but less than 
                                $10,000, then such 
                                consolidation loan shall be 
                                repaid in not more than 12 
                                years;
                                  (III) is equal to or greater 
                                than $10,000 but less than 
                                $20,000, then such 
                                consolidation loan shall be 
                                repaid in not more than 15 
                                years;
                                  (IV) is equal to or greater 
                                than $20,000 but less than 
                                $40,000, then such 
                                consolidation loan shall be 
                                repaid in not more than 20 
                                years;
                                  (V) is equal to or greater 
                                than $40,000 but less than 
                                $60,000, then such 
                                consolidation loan shall be 
                                repaid in not more than 25 
                                years; or
                                  (VI) is equal to or greater 
                                than $60,000, then such 
                                consolidation loan shall be 
                                repaid in not more than 30 
                                years.
                  (B) Limitation.--The amount outstanding on 
                other eligible student loans which may be 
                counted for the purpose of subparagraph (A) may 
                not exceed the amount of the consolidation 
                loan.
          (2) Additional repayment requirements.--
        Notwithstanding paragraph (1)--
                  (A) except in the case of an income-based 
                repayment schedule under section 466(d), a 
                repayment schedule established with respect to 
                a consolidation loan shall require that the 
                minimum installment payment be an amount equal 
                to not less than the accrued unpaid interest; 
                and
                  (B) an income-based repayment schedule under 
                section 466(d) shall not be available to a 
                consolidation loan borrower who--
                          (i) used the proceeds of a Federal 
                        ONE Consolidation loan to discharge the 
                        liability--
                                  (I) on a loan under section 
                                428B made on behalf of a 
                                dependent student;
                                  (II) a Federal Direct PLUS 
                                loan made on behalf of a 
                                dependent student;
                                  (III) a Federal ONE Parent 
                                loan; or
                                  (IV) an excepted 
                                consolidation loan (defined in 
                                section 493C); or
                          (ii) used the proceeds of a 
                        subsequent Federal ONE Consolidation 
                        loan to discharge the liability on a 
                        Federal ONE Consolidation loan 
                        described in clause (i).
          (3) Commencement of repayment.--Repayment of a 
        consolidation loan shall commence within 60 days after 
        all holders have, pursuant to subsection (a)(4), 
        discharged the liability of the borrower on the loans 
        selected for consolidation.
          (4) Interest rate.--A consolidation loan made under 
        this section shall bear interest at an annual rate 
        described in section 465(c)(4).
  (d) Insurance Rule.--Any insurance premium paid by the 
borrower under subpart I of part A of title VII of the Public 
Health Service Act with respect to a loan made under that 
subpart and consolidated under this section shall be retained 
by the student loan insurance account established under section 
710 of the Public Health Service Act.
  (e) Definitions.--For the purpose of this section:
          (1) Eligible borrower.--
                  (A) In general.--The term ``eligible 
                borrower'' means a borrower who--
                          (i) is not subject to a judgment 
                        secured through litigation with respect 
                        to a loan under this title or to an 
                        order for wage garnishment under 
                        section 488A; and
                          (ii) at the time of application for a 
                        consolidation loan--
                                  (I) is in repayment status as 
                                determined under section 
                                466(a)(1);
                                  (II) is in a grace period 
                                preceding repayment; or
                                  (III) is a defaulted borrower 
                                who has made arrangements to 
                                repay the obligation on the 
                                defaulted loans satisfactory to 
                                the holders of the defaulted 
                                loans.
                  (B) Termination of status as an eligible 
                borrower.--An individual's status as an 
                eligible borrower under this section terminates 
                upon receipt of a consolidation loan under this 
                section, except that--
                          (i) an individual who receives 
                        eligible student loans after the date 
                        of receipt of the consolidation loan 
                        may receive a subsequent consolidation 
                        loan;
                          (ii) loans received prior to the date 
                        of the consolidation loan may be added 
                        during the 180-day period following the 
                        making of the consolidation loan;
                          (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;
                          (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 for the 
                        purpose--
                                  (I) of income-based repayment 
                                under section 466(d) only if 
                                the loan has been submitted for 
                                default aversion or if the loan 
                                is already in default;
                                  (II) of using the no accrual 
                                of interest for active duty 
                                service members benefit offered 
                                under section 465(g); of
                                  (III) of submitting an 
                                application under section 
                                469B(d) for a borrower defense 
                                to repayment of a loan made, 
                                insured, or guaranteed under 
                                this title.
          (2) Eligible student loans.--For the purpose of 
        paragraph (1), the term ``eligible student loans'' 
        means loans--
                  (A) made, insured, or guaranteed under part 
                B, and first disbursed before July 1, 2010, 
                including loans on which the borrower has 
                defaulted (but has made arrangements to repay 
                the obligation on the defaulted loans 
                satisfactory to the Secretary or guaranty 
                agency, whichever insured the loans);
                  (B) made under part D of this title, and 
                first disbursed before July 1, 2019;
                  (C) made under this part before September 30, 
                2017;
                  (D) made under this part on or after the date 
                of enactment of the PROSPER Act;
                  (E) made under subpart II of part A of title 
                VII of the Public Health Service Act; or
                  (F) made under part E of title VIII of the 
                Public Health Service Act.
  (f) Designation.--For purposes of this Act, the Federal ONE 
Loans described in this section shall be known as ``Federal ONE 
Consolidation Loans''.

SEC. 469. TEMPORARY LOAN CONSOLIDATION AUTHORITY.

  (a) In General.--A borrower who has 1 or more loans in 2 or 
more of the categories described in subsection (b), and who has 
not yet entered repayment on 1 or more of those loans in any of 
the categories, may consolidate all of the loans of the 
borrower that are described in subsection (b) into a Federal 
ONE Consolidation Loan during the period described in 
subsection (c).
  (b) Categories of Loans that May be Consolidated.--The 
categories of loans that may be consolidated under this section 
are--
          (1) loans made under this part before October 1, 2017 
        and on or after July 1, 2019;
          (2) loans purchased by the Secretary pursuant to 
        section 459A;
          (3) loans made under part B that are held by an 
        eligible lender, as such term is defined in section 
        435(d); and
          (4) loans made under part D.
  (c) Time period in Which Loans May be Consolidated.--The 
Secretary may make a Federal ONE Consolidation Loan under this 
section to a borrower whose application for such Federal ONE 
Consolidation Loan is received on or after July 1, 2019, and 
before July 1, 2024.
  (d) Terms of Loans.--A Federal ONE Consolidation Loan made 
under this subsection shall have the same terms and conditions 
as a Federal ONE Consolidation Loan made under section 468, 
except that in determining the applicable rate of interest on 
the Federal ONE Consolidation Loan made under this section, 
section 465(c)(4) shall be applied without rounding the 
weighted average of the interest rate on the loans consolidated 
to the nearest higher one-eighth of one percent as in such 
section.

SEC. 469A. DEFERMENT.

  (a) Effect on Principal and Interest.--A borrower of a loan 
made under this part who meets the requirements described in 
subsection (b) shall be eligible for a deferment during which 
installments of principal need not be paid and, unless 
otherwise provided in this subsection, interest shall accrue 
and be capitalized or paid by the borrower.
  (b) Eligibility.--A borrower of a loan made under this part 
shall be eligible for a deferment--
          (1) during any period during which the borrower--
                  (A) is carrying at least one-half the normal 
                full-time work load for the course of study 
                that the borrower is pursuing, as determined by 
                the eligible institution the borrower is 
                attending;
                  (B) is pursuing a course of study pursuant 
                to--
                          (i) an eligible graduate fellowship 
                        program in accordance with subsection 
                        (g); or
                          (ii) an eligible rehabilitation 
                        training program for individuals with 
                        disabilities in accordance with 
                        subsection (i);
                  (C) is serving on active duty during a war or 
                other military operation or national emergency, 
                and for the 180-day period following the 
                demobilization date for such service;
                  (D) is performing qualifying National Guard 
                duty during a war or other military operation 
                or national emergency, and for the 180-day 
                period following the demobilization date for 
                such service;
                  (E) is a member of the National Guard who is 
                not eligible for a post-active duty deferment 
                under section 493D and is engaged in active 
                State duty for a period of more than 30 
                consecutive days beginning--
                          (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) the day after the borrower 
                        ceases enrollment on at least a half-
                        time basis, for a loan in repayment;
                  (F) is serving in a medical or dental 
                internship or residency program, the successful 
                completion of which is required to begin 
                professional practice or service, or is serving 
                in a medical or dental internship or residency 
                program leading to a degree or certificate 
                awarded by an institution of higher education, 
                a hospital, or a health care facility that 
                offers postgraduate training; or
                  (G) is eligible for interest payments to be 
                made on a loan made under this part for service 
                in the Armed Forces under section 2174 of title 
                10, United States Code, and pursuant to that 
                eligibility, the interest is being paid on such 
                loan under section 465(f);
          (2) during a period sufficient to enable the borrower 
        to resume honoring the agreement to repay the 
        outstanding balance of principal and interest on the 
        loan after default, if--
                  (A) the borrower signs a new agreement to 
                repay such outstanding balance;
                  (B) the deferment period is limited to 120 
                days; and
                  (C) such deferment is not granted for 
                consecutive periods;
          (3) during a period of administrative deferment 
        described in subsection (j); or
          (4) in the case of a borrower of a Federal ONE Parent 
        Loan or an Excepted Federal ONE Consolidation Loan, 
        during a period described in subsection (k).
  (c) Length of Deferment.--A deferment granted by the 
Secretary--
          (1) under subparagraph (F) or (G) of subsection 
        (b)(1) shall be renewable at 12 month intervals;
          (2) under subparagraph (F) of subsection (b)(1) shall 
        equal the length of time remaining in the borrower's 
        medical or dental internship or residency program; and
          (3) under subparagraph (G) of subsection (b)(1) shall 
        not exceed 3 years.
  (d) Request and Documentation.--The Secretary shall determine 
the eligibility of a borrower for a deferment under paragraphs 
(1), (2), or (4) of subsection (b), or in the case of a loan 
for which an endorser is required, an endorser's eligibility 
for a deferment under paragraph (2) or (4) or eligibility to 
request a deferment under paragraph (1), based on--
          (1) the receipt of a request for a deferment from the 
        borrower or the endorser, and documentation of the 
        borrower's or endorser's eligibility for the deferment 
        or eligibility to request the deferment;
          (2) receipt of a completed loan application that 
        documents the borrower's eligibility for a deferment;
          (3) receipt of a student status information 
        documenting that the borrower is enrolled on at least a 
        half-time basis; or
          (4) the Secretary's confirmation of the borrower's 
        half-time enrollment status, if the confirmation is 
        requested by the institution of higher education.
  (e) Notification.--The Secretary shall--
          (1) notify a borrower of a loan made under this 
        part--
                  (A) the granting of a deferment under this 
                subsection on such loan; and
                  (B) the option of the borrower to continue 
                making payments on the outstanding balance of 
                principal and interest on such loan in 
                accordance with subsection (f);
          (2) at the time the Secretary grants a deferment to a 
        borrower of a loan made under this part, and not less 
        frequently than once every 180 days during the period 
        of such deferment, provide information to the borrower 
        to assist the borrower in understanding--
                  (A) the effect of granting a deferment on the 
                total amount to be paid under the income-based 
                repayment plan under 466(d);
                  (B) the fact that interest will accrue on the 
                loan for the period of deferment, other than 
                for a deferment granted under subsection 
                (b)(1)(G);
                  (C) the amount of unpaid principal and the 
                amount of interest that has accrued since the 
                last statement of such amounts provided to the 
                borrower;
                  (D) the amount of interest that will be 
                capitalized, and the date on which 
                capitalization will occur;
                  (E) the effect of the capitalization of 
                interest on the borrower's loan principal and 
                on the total amount of interest to be paid on 
                the loan;
                  (F) the option of the borrower to pay the 
                interest that has accrued before the interest 
                is capitalized; and
                  (G) the borrower's option to discontinue the 
                deferment at any time.
  (f) Form of Deferment.--The form of a deferment granted under 
this subsection on a loan made under this part shall be 
temporary cessation of all payments on such loan, except that--
          (1) in the case of a deferment granted under 
        subsection (b)(1)(G), payments of interest on the loan 
        will be made by the Secretary under section 465(f) 
        during such period of deferment; and
          (2) a borrower may make payments on the outstanding 
        balance of principal and interest on such loan during 
        any period of deferment granted under this subsection.
  (g) Graduate Fellowship Deferment.--
          (1) In general.--A borrower of a loan under this part 
        is eligible for a deferment under subsection 
        (b)(1)(B)(i) during any period for which an authorized 
        official of the borrower's graduate fellowship program 
        certifies that the borrower meets the requirements of 
        paragraph (2) and is pursuing a course of study 
        pursuant to an eligible graduate fellowship program.
          (2) Borrower requirements.--A borrower meets the 
        requirements of this subparagraph if the borrower--
                  (A) holds at least a baccalaureate degree 
                conferred by an institution of higher 
                education;
                  (B) has been accepted or recommended by an 
                institution of higher education for acceptance 
                on a full-time basis into an eligible graduate 
                fellowship program; and
                  (C) is not serving in a medical internship or 
                residency program, except for a residency 
                program in dentistry.
  (h) Treatment of Study Outside the United States.--
          (1) In general.--The Secretary shall treat, in the 
        same manner as required under section 428(b)(4), any 
        course of study at a foreign university that is 
        accepted for the completion of a recognized 
        international fellowship program by the administrator 
        of such a program as an eligible graduate fellowship 
        program.
          (2) Requests for deferment.--Requests for deferment 
        of repayment of loans under this subsection by students 
        engaged in graduate or postgraduate fellowship-
        supported study (such as pursuant to a Fulbright grant) 
        outside the United States shall be approved until 
        completion of the period of the fellowship, in the same 
        manner as required under section 428(b)(4).
  (i) Rehabilitation Training Program Deferment.--A borrower of 
a loan under this part is eligible for a deferment under 
subsection (b)(1)(B)(ii) during any period for which an 
authorized official of the borrower's rehabilitation training 
program certifies that the borrower is pursuing an eligible 
rehabilitation training program for individuals with 
disabilities.
  (j) Administrative Deferments.--The Secretary may grant a 
deferment to a borrower or, in the case of a loan for which an 
endorser is required, an endorser, without requiring a request 
and documentation from the borrower or the endorser under 
subsection (d) for--
          (1) a period during which the borrower was delinquent 
        at the time a deferment is granted, including a period 
        for which scheduled payments of principal and interest 
        were overdue at the time such deferment is granted;
          (2) a period during which the borrower or the 
        endorser was granted a deferment under this subsection 
        but for which the Secretary determines the borrower or 
        the endorser should not have qualified;
          (3) a period necessary for the Secretary to determine 
        the borrower's eligibility for the cancellation of the 
        obligation of the borrower to repay the loan under 
        section 437;
          (4) a period during which the Secretary has 
        authorized deferment due to a national military 
        mobilization or other local or national emergency; or
          (5) a period not to exceed 60 days, during which 
        interest shall accrue but not be capitalized, if the 
        Secretary reasonably determines that a suspension of 
        collection activity is warranted to enable the 
        Secretary to process supporting documentation relating 
        to a borrower's request--
                  (A) for a deferment under this subsection;
                  (B) for a change in repayment plan under 
                section 466(c); or
                  (C) to consolidate loans under section 468.
  (k) Deferments for Parent or Excepted Consolidation Loans.--
          (1) In general.--A qualified borrower shall be 
        eligible for deferments under paragraphs (3) through 
        (5).
          (2) Qualified borrower defined.--In this subsection, 
        the term ``qualified borrower'' means--
                  (A) a borrower of a Federal ONE Parent Loan 
                or an Excepted Federal ONE Consolidation Loan; 
                or
                  (B) in the case of such a loan for which an 
                endorser is required, the endorser of such 
                loan.
          (3) Economic hardship deferment.--
                  (A) In general.--A qualified borrower shall 
                be eligible for a deferment during periods, not 
                to exceed 3 years in total, during which the 
                qualified borrower experiences an economic 
                hardship described in subparagraph (B).
                  (B) Economic hardship.--An economic hardship 
                described in this clause is a period during 
                which the qualified borrower--
                          (i) is receiving payment under a 
                        means-tested benefit program;
                          (ii) is employed full-time and the 
                        monthly gross income of the qualified 
                        borrower does not exceed the greater 
                        of--
                                  (I) the minimum wage rate 
                                described in section 6 of the 
                                Fair Labor Standards Act of 
                                1938 (29 U.S.C. 206); or
                                  (II) an amount equal to 150 
                                percent of the poverty line; or
                          (iii) demonstrates that the sum of 
                        the qualified borrower's monthly 
                        payments on the qualified borrower's 
                        Federal ONE Parent Loan or Excepted 
                        Federal ONE Consolidation Loan is not 
                        less than 20 percent of the qualified 
                        borrower's monthly gross income.
                  (C) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified 
                borrower shall submit to the Secretary--
                          (i) for the first period of deferment 
                        under this subparagraph, evidence 
                        showing the monthly gross income of the 
                        qualified borrower; and
                          (ii) for a subsequent period of 
                        deferment that begins less than one 
                        year after the end of a period of 
                        deferment granted under this 
                        subparagraph--
                                  (I) evidence showing the 
                                monthly gross income of the 
                                qualified borrower; or
                                  (II) the qualified borrower's 
                                most recently filed Federal 
                                income tax return, if such a 
                                return was filed in either of 
                                the two tax years preceding the 
                                year in which the qualified 
                                borrower requests the 
                                subsequent period of deferment.
          (4) Unemployment deferment.--
                  (A) In general.--A qualified borrower shall 
                be eligible for a deferment for periods during 
                which the qualified borrower is seeking, and is 
                unable to find, full-time employment.
                  (B) Eligibility.--
                          (i) In general.--To be eligible to 
                        receive an deferment under this 
                        subparagraph, a qualified borrower 
                        shall submit to the Secretary--
                                  (I) evidence of the qualified 
                                borrower's eligibility for 
                                unemployment benefits; or
                                  (II) written confirmation, or 
                                an equivalent as approved by 
                                the Secretary, that--
                                          (aa) the qualified 
                                        borrower has registered 
                                        with a public or 
                                        private employment 
                                        agency, if one is 
                                        available to the 
                                        borrower within 50 
                                        miles of the qualified 
                                        borrower's address; and
                                          (bb) for requests 
                                        submitted after the 
                                        initial request, the 
                                        qualified borrower has 
                                        made at least six 
                                        diligent attempts 
                                        during the preceding 
                                        six-month period to 
                                        secure full-time 
                                        employment.
                          (ii) Acceptance of employment.--A 
                        qualified borrower shall not be 
                        eligible for a deferment under this 
                        subparagraph if the qualified borrower 
                        refuses to seek or accept employment in 
                        types of positions or at salary levels 
                        or responsibility levels for which the 
                        qualified borrower feels overqualified 
                        based on the qualified borrower's 
                        education or previous experience.
                  (C) Terms of deferment.--The following terms 
                shall apply to a deferment under this 
                subparagraph:
                          (i) Initial period.--The first 
                        deferment granted to a qualified 
                        borrower under this subparagraph may be 
                        for a period of unemployment beginning 
                        not more than 6 months before the date 
                        on which the Secretary receives the 
                        qualified borrower's request for 
                        deferment and may be granted for a 
                        period of up to 6 months after that 
                        date.
                          (ii) Renewals.--Deferments under this 
                        subparagraph shall be renewable at 6-
                        month intervals beginning after the 
                        expiration of the first period of 
                        deferment under clause (i). To be 
                        eligible to renew a deferment under 
                        this subparagraph, a qualified borrower 
                        shall submit to the Secretary the 
                        information described in subparagraph 
                        (B)(i).
                          (iii) Aggregate limit.--The period of 
                        all deferments granted to a borrower 
                        under this subparagraph may not exceed 
                        3 years in aggregate.
          (5) Health deferment.--
                  (A) In general.--A qualified borrower shall 
                be eligible for a deferment during periods in 
                which the qualified borrower is unable to make 
                scheduled loan payments due to high medical 
                expenses, as determined by the Secretary.
                  (B) Eligibility.--To be eligible to receive a 
                deferment under this subparagraph, a qualified 
                borrower shall--
                          (i) submit to the Secretary 
                        documentation demonstrating that making 
                        scheduled loan payments would be an 
                        extreme economic hardship to the 
                        borrower due to high medical expenses, 
                        as determined by the Secretary; and
                          (ii) resubmit such documentation to 
                        the Secretary not less frequently than 
                        once every 3 months.
  (l) Prohibitions.--
          (1) Prohibition on fees.--No administrative fee or 
        other fee may be charged to the borrower in connection 
        with the granting of a deferment under this subsection.
          (2) Prohibition on adverse credit reporting.--No 
        adverse information relating to a borrower may be 
        reported to a consumer reporting agency solely because 
        of the granting of a deferment under this subsection.
          (3) Limitation on authority.--The Secretary shall 
        not, through regulation or otherwise, authorize 
        additional deferment options or periods of deferment 
        other than the deferment options and periods of 
        deferment authorized under this subsection.
  (m) Treatment of endorsers.--With respect to any Federal ONE 
Parent Loan or Federal ONE Consolidation Loan for which an 
endorser is required--
          (1) paragraphs (2) through (4) of subsection (b) 
        shall be applied--
                  (A) by substituting ``An endorser'' for ``A 
                borrower'';
                  (B) by substituting ``the endorser'' for 
                ``the borrower''; and
                  (C) by substituting ``an endorser'' for ``a 
                borrower''; and
          (2) in the case in which the borrower of such a loan 
        is eligible for a deferment described in subparagraph 
        (C), (D), (E), (F), or (G) of subsection (b)(1), but is 
        not making payments on the loan, the endorser of the 
        loan may request a deferment under such subparagraph 
        for the loan.
  (n) Definitions.--In this section:
          (1) Eligible graduate fellowship program.--The term 
        ``eligible graduate fellowship program'', when used 
        with respect to a course of study pursued by the 
        borrower of a loan under this part, means a fellowship 
        program that--
                  (A) provides sufficient financial support to 
                graduate fellows to allow for full-time study 
                for at least six months;
                  (B) requires a written statement from each 
                applicant explaining the applicant's objectives 
                before the award of that financial support;
                  (C) requires a graduate fellow to submit 
                periodic reports, projects, or evidence of the 
                fellow's progress; and
                  (D) in the case of a course of study at an 
                institution of higher education outside the 
                United States described in section 102, accepts 
                the course of study for completion of the 
                fellowship program.
          (2) Eligible rehabilitation training program for 
        individuals with disabilities.--The term ``eligible 
        rehabilitation training program for individuals with 
        disabilities'', when used with respect a course of 
        study pursued by the borrower of a loan under this 
        part, means a program that--
                  (A) is necessary to assist an individual with 
                a disability in preparing for, securing, 
                retaining, or regaining employment;
                  (B) is licensed, approved, certified, or 
                otherwise recognized as providing 
                rehabilitation training to disabled individuals 
                by--
                          (i) a State agency with 
                        responsibility for vocational 
                        rehabilitation programs, drug abuse 
                        treatment programs, mental health 
                        services programs, or alcohol abuse 
                        treatment programs; or
                          (ii) the Secretary of the Department 
                        of Veterans Affairs; and
                  (C) provides or will provide the borrower 
                with rehabilitation services under a written 
                plan that--
                          (i) is individualized to meet the 
                        borrower's needs;
                          (ii) specifies the date on which the 
                        services to the borrower are expected 
                        to end; and
                          (iii) requires a commitment of time 
                        and effort from the borrower that 
                        prevents the borrower from being 
                        employed at least 30 hours per week, 
                        either because of the number of hours 
                        that must be devoted to rehabilitation 
                        or because of the nature of the 
                        rehabilitation.
          (3) Excepted Federal one consolidation loan.--The 
        ``Excepted Federal ONE Consolidation Loan'' have the 
        meaning given the term in section 466(d)(5).
          (4) Family size.--The term ``family size'' means the 
        number that is determined by counting--
                  (A) the borrower;
                  (B) the borrower's spouse;
                  (C) the borrower's children, including unborn 
                children who are expected to be born during the 
                period covered by the deferment, if the 
                children receive more than half their support 
                from the borrower; and
                  (D) another individual if, at the time the 
                borrower requests a deferment under this 
                section, the individual--
                          (i) lives with the borrower;
                          (ii) receives more than half of the 
                        individual's support (which may include 
                        money, gifts, loans, housing, food, 
                        clothes, car, medical and dental care, 
                        and payment of college costs) from the 
                        borrower; and
                          (iii) is expected to receive such 
                        support from the borrower during the 
                        relevant period of deferment.
          (5) Full-time.--The term ``full-time'', when used 
        with respect to employment, means employment for not 
        less than 30 hours per week that is expected to 
        continue for not less than three months.
          (6) Means-tested benefit program.--The term ``means-
        tested benefit program'' means--
                  (A) a State public assistance program under 
                which eligibility for the program's benefits, 
                or the amount of such benefits, are determined 
                on the basis of income or resources of the 
                individual or family seeking the benefit; or
                  (B) a mandatory spending program of the 
                Federal Government, other than a program under 
                this title, under which eligibility for the 
                program's benefits, or the amount of such 
                benefits, are determined on the basis of income 
                or resources of the individual or family 
                seeking the benefit, and may include such 
                programs as
                          (i) the supplemental security income 
                        program under title XVI of the Social 
                        Security Act (42 U.S.C. 1381 et seq.);
                          (ii) the supplemental nutrition 
                        assistance program under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et 
                        seq.);
                          (iii) the free and reduced price 
                        school lunch program established under 
                        the Richard B. Russell National School 
                        Lunch Act (42 U.S.C. 1751 et seq.);
                          (iv) the program of block grants for 
                        States for temporary assistance for 
                        needy families established under part A 
                        of title IV of the Social Security Act 
                        (42 U.S.C. 601 et seq.);
                          (v) the special supplemental 
                        nutrition program for women, infants, 
                        and children established by section 17 
                        of the Child Nutrition Act of 1966 (42 
                        U.S.C. 1786); and
                          (vi) other programs identified by the 
                        Secretary.
          (7) Monthly gross income.--The term ``monthly gross 
        income'', when used with respect to a borrower, means--
                  (A) the gross amount of income received by 
                the borrower from employment and other sources 
                for the most recent month; or
                  (B) one-twelfth of the borrower's adjusted 
                gross income, as recorded on the borrower's 
                most recently filed Federal income tax return.

SEC. 469B. ADDITIONAL TERMS.

  (a) Applicable Part B Provisions.--
          (1) Disclosures.--Except as otherwise provided in 
        this part, section 455(p) shall apply with respect to 
        loans under this part in the same manner that such 
        section applies with respect to loans under part D.
          (2) Other provisions.--Except as otherwise provided 
        in this part, the following provisions shall apply with 
        respect to loans made under this part in the same 
        manner that such provisions apply with respect to loans 
        made under part D:
                  (A) Section 427(a)(2).
                  (B) Section 428(d).
                  (C) Section 428F
                  (D) Section 430A.
                  (E) Paragraphs (1), (2), (4), and (6) of 
                section 432(a).
                  (F) Section 432(i).
                  (G) Section 432(l).
                  (H) Section 432(m), except that an 
                institution of higher education shall have a 
                separate master promissory note under paragraph 
                (1)(D) of such section for loans made under 
                this part.
                  (I) Subsections (a), (c), and (d) of section 
                437.
          (3) Application of provisions.--Any provision listed 
        under paragraph (1) or (2) that applies to--
                  (A) Federal Direct PLUS Loans made on behalf 
                of dependent students shall apply to Federal 
                ONE Parent Loans;
                  (B) Federal Direct PLUS Loans made to 
                students shall apply to Federal ONE Loans for 
                graduate or professional students;
                  (C) Federal Direct Unsubsidized Stafford 
                loans shall apply to Federal ONE Loans (other 
                than Federal ONE Consolidation Loans) for any 
                student borrower;
                  (D) Federal Direct Consolidation Loans shall 
                apply to Federal ONE Consolidation Loans; and
                  (E) forbearance shall apply to deferment 
                under section 469A.
  (b) Eligible student.--A loan under this part may only be 
made to a student who--
          (1) is an eligible student under section 484;
          (2) has agreed to notify promptly the Secretary and 
        the applicable contractors with which the Secretary has 
        a contract under section 493E concerning--
                  (A) any change of permanent address, 
                telephone number, or email address;
                  (B) when the student ceases to be enrolled on 
                at least a half-time basis; and
                  (C) any other change in status, when such 
                change in status affects the student's 
                eligibility for the loan; and
          (3) is carrying at least one-half the normal full-
        time academic workload for the course of study the 
        student is pursuing (as determined by the institution).
  (c) Loan Application and Promissory Note.--The common 
financial reporting form required in section 483(a)(1) shall 
constitute the application for loans made under this part. The 
Secretary shall develop, print, and distribute to participating 
institutions a standard promissory note and loan disclosure 
form.
  (d) Borrower Defenses.--A borrower of a loan under this part 
may assert a defense to repayment to such loan under the 
provisions of section 455(h) that apply to a borrower of a loan 
made under part D asserting, on or after the date of enactment 
of the PROSPER Act, a defense to repayment to such loan made 
under part D.
  (e) Identity Fraud Protection.--The Secretary shall ensure 
that monthly Federal ONE Loan statements and other publications 
of the Department do not contain more than four digits of the 
Social Security number of any individual.
  (f) Authority to Sell loans.--The Secretary, in consultation 
with the Secretary of the Treasury, is authorized to sell loans 
made under this part on such terms determined to be in the best 
interest of the United States, except that any such sale shall 
not result in any cost to the Federal Government.

PART F--NEED ANALYSIS

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SEC. 472. COST OF ATTENDANCE.

   For the purpose of this title, the term ``cost of 
attendance'' means--
          (1) tuition and fees normally assessed a student 
        carrying the same academic workload as determined by 
        the institution, and including costs for rental or 
        purchase of any equipment, materials, or supplies 
        required of all students in the same course of study;
          (2) an allowance for books, supplies, transportation, 
        and miscellaneous personal expenses, including a 
        reasonable allowance for the documented rental or 
        purchase of a personal computer, for a student 
        attending the institution on at least a half-time 
        basis, as determined by the institution;
          (3) an allowance (as determined by the institution) 
        for room and board costs incurred by the student 
        which--
                  (A) shall be an allowance determined by the 
                institution for a student without dependents 
                residing at home with parents;
                  (B) for students without dependents residing 
                in institutionally owned or operated housing, 
                shall be a standard allowance determined by the 
                institution based on the amount normally 
                assessed most of its residents for room and 
                board;
                  (C) for students who live in housing located 
                on a military base or for which a basic 
                allowance is provided under section 403(b) of 
                title 37, United States Code, shall be an 
                allowance based on the expenses reasonably 
                incurred by such students for board but not for 
                room; and
                  (D) for all other students shall be an 
                allowance based on the expenses reasonably 
                incurred by such students for room and board;
          (4) for less than half-time students (as determined 
        by the institution), tuition and fees and an allowance 
        for only--
                  (A) books, supplies, and transportation (as 
                determined by the institution);
                  (B) dependent care expenses (determined in 
                accordance with paragraph (8)); and
                  (C) room and board costs (determined in 
                accordance with paragraph (3)), except that a 
                student may receive an allowance for such costs 
                under this subparagraph for not more than 3 
                semesters or the equivalent, of which not more 
                than 2 semesters or the equivalent may be 
                consecutive;
          (5) for a student engaged in a program of study by 
        correspondence, only tuition and fees and, if required, 
        books and supplies, travel, and room and board costs 
        incurred specifically in fulfilling a required period 
        of residential training;
          (6) for incarcerated students only tuition and fees 
        and, if required, books and supplies;
          (7) for a student enrolled in an academic program in 
        a program of study abroad approved for credit by the 
        student's home institution, reasonable costs associated 
        with such study (as determined by the institution at 
        which such student is enrolled);
          (8) for a student with one or more dependents, an 
        allowance based on the estimated actual expenses 
        incurred for such dependent care, based on the number 
        and age of such dependents, except that--
                  (A) such allowance shall not exceed the 
                reasonable cost in the community in which such 
                student resides for the kind of care provided; 
                and
                  (B) the period for which dependent care is 
                required includes, but is not limited to, 
                class-time, study-time, field work, 
                internships, and commuting time;
          (9) for a student with a disability, an allowance (as 
        determined by the institution) for those expenses 
        related to the student's disability, including special 
        services, personal assistance, transportation, 
        equipment, and supplies that are reasonably incurred 
        and not provided for by other assisting agencies;
          [(10) for a student receiving all or part of the 
        student's instruction by means of telecommunications 
        technology, no distinction shall be made with respect 
        to the mode of instruction in determining costs;]
          [(11)] (10) for a student engaged in a work 
        experience under a cooperative education program, an 
        allowance for reasonable costs associated with such 
        employment (as determined by the institution);
          [(12)] (11) for a student who receives a loan under 
        this or any other Federal law, or, at the option of the 
        institution, a conventional student loan incurred by 
        the student to cover a student's cost of attendance at 
        the institution, an allowance for the actual cost of 
        any loan fee, origination fee, or insurance premium 
        charged to such student or such parent on such loan, or 
        the average cost of any such fee or premium charged by 
        the Secretary, lender, or guaranty agency making or 
        insuring such loan, as the case may be; and
          [(13)] (12) at the option of the institution, for a 
        student in a program requiring professional licensure 
        or certification, the one-time cost of obtaining the 
        first professional credentials (as determined by the 
        institution).

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SEC. 479. SIMPLIFIED NEEDS TESTS.

  (a) Simplified Application Section.--
          (1) In general.--The Secretary shall develop and use 
        an easily identifiable simplified application section 
        as part of the common financial reporting form 
        prescribed under section 483(a) for families described 
        in subsections (b) and (c) of this section.
          (2) Reduced data requirements.--The simplified 
        application form shall--
                  (A) in the case of a family meeting the 
                requirements of subsection (b)(1), permit such 
                family to submit only the data elements 
                required under subsection (b)(2) for the 
                purposes of establishing eligibility for 
                student financial aid under this part; and
                  (B) in the case of a family meeting the 
                requirements of subsection (c), permit such 
                family to be treated as having an expected 
                family contribution equal to zero for purposes 
                of establishing such eligibility and to submit 
                only the data elements required to make a 
                determination under subsection (c).
  (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--
                                  (I) file, or are eligible to 
                                file, a form described in 
                                paragraph (3);
                                  (II) certify that the parents 
                                are not required to file a 
                                Federal income tax return;
                                  (III) include at least one 
                                parent who is a dislocated 
                                worker; or
                                  (IV) received, or the student 
                                received, benefits at some time 
                                during the previous 24-month 
                                period under a means-tested 
                                Federal benefit program as 
                                defined under subsection (d); 
                                and
                          (ii) the total adjusted gross income 
                        of the parents (excluding any income of 
                        the dependent student) is less than 
                        [$50,000] $100,000; or
                  (B) in the case of an applicant who is an 
                independent student--
                          (i) the student (and the student's 
                        spouse, if any)--
                                  (I) files, or is eligible to 
                                file, a form described in 
                                paragraph (3);
                                  (II) certifies that the 
                                student (and the student's 
                                spouse, if any) is not required 
                                to file a Federal income tax 
                                return;
                                  (III) is a dislocated worker 
                                or has a spouse who is a 
                                dislocated worker; or
                                  (IV) received benefits at 
                                some time during the previous 
                                24-month period under a means-
                                tested Federal benefit program 
                                as defined under subsection 
                                (d); and
                          (ii) the adjusted gross income of the 
                        student (and the student's spouse, if 
                        any) is less than [$50,000] $100,000.
          (2) Simplified test elements.--The six elements to be 
        used for the simplified needs analysis are--
                  (A) adjusted gross income,
                  (B) Federal taxes paid,
                  (C) untaxed income and benefits,
                  (D) the number of family members,
                  (E) the number of family members in 
                postsecondary education, and
                  (F) an allowance (A) for State and other 
                taxes, as defined in section 475(c)(2) for 
                dependent students and in section 477(b)(2) for 
                independent students with dependents other than 
                a spouse, or (B) for State and other income 
                taxes, as defined in section 476(b)(2) for 
                independent students without dependents other 
                than a spouse.
          (3) Qualifying forms.--In the case of an independent 
        student, the student, or in the case of a dependent 
        student, the family, files a form described in this 
        subsection, or subsection (c), as the case may be, if 
        the student or family, as appropriate, files--
                  (A) a form 1040A or 1040EZ (including any 
                prepared or electronic version of such form) 
                required pursuant to the Internal Revenue Code 
                of 1986;
                  (B) a form 1040 (including any prepared or 
                electronic version of such form) required 
                pursuant to the Internal Revenue Code of 1986, 
                except that such form shall be considered a 
                qualifying form only if the student or family 
                files such form in order to take a tax credit 
                under section 25A of the Internal Revenue Code 
                of 1986, and would otherwise be eligible to 
                file a form described in subparagraph (A); or
                  (C) an income tax return (including any 
                prepared or electronic version of such return) 
                required pursuant to the tax code of the 
                Commonwealth of Puerto Rico, Guam, American 
                Samoa, the Virgin Islands, the Republic of the 
                Marshall Islands, the Federated States of 
                Micronesia, or Palau.
  (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--
                          (i) file, or are eligible to file, a 
                        form described in subsection (b)(3);
                          (ii) certify that the parents are not 
                        required to file a Federal income tax 
                        return;
                          (iii) include at least one parent who 
                        is a dislocated worker; or
                          (iv) received, or the student 
                        received, benefits at some time during 
                        the previous 24-month period under a 
                        means-tested Federal benefit program as 
                        defined under subsection (d); and
                  (B) the sum of the adjusted gross income of 
                the parents is less than or equal to $23,000; 
                or
          (2) in the case of an independent student with 
        dependents other than a spouse--
                  (A) the student (and the student's spouse, if 
                any)--
                          (i) files, or is eligible to file, a 
                        form described in subsection (b)(3);
                          (ii) certifies that the student (and 
                        the student's spouse, if any) is not 
                        required to file a Federal income tax 
                        return;
                          (iii) is a dislocated worker or has a 
                        spouse who is a dislocated worker; or
                          (iv) received benefits at some time 
                        during the previous 24-month period 
                        under a means-tested Federal benefit 
                        program as defined under subsection 
                        (d); and
                  (B) the sum of the adjusted gross income of 
                the student and spouse (if appropriate) is less 
                than or equal to $23,000.
An individual is not required to qualify or file for the earned 
income credit in order to be eligible under this subsection. 
The Secretary shall annually adjust the income level necessary 
to qualify an applicant for the zero expected family 
contribution. The income level shall be adjusted according to 
increases in the Consumer Price Index, as defined in section 
478(f).
  (d) Definitions.--In this section:
          (1) Dislocated worker.--The term ``dislocated 
        worker'' has the meaning given the term in section 101 
        of the Workforce Investment Act of 1998 (29 U.S.C. 
        2801).
          (2) Means-tested federal benefit program.--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, are determined on the basis of income 
        or resources of the individual or family seeking the 
        benefit, and may include such programs as--
                  (A) the supplemental security income program 
                under title XVI of the Social Security Act (42 
                U.S.C. 1381 et seq.);
                  (B) the supplemental nutrition assistance 
                program under the Food and Nutrition Act of 
                2008 (7 U.S.C. 2011 et seq.);
                  (C) the free and reduced price school lunch 
                program established under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.);
                  (D) the program of block grants for States 
                for temporary assistance for needy families 
                established under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.);
                  (E) the special supplemental nutrition 
                program for women, infants, and children 
                established by section 17 of the Child 
                Nutrition Act of 1966 (42 U.S.C. 1786); and
                  (F) other programs identified by the 
                Secretary.

SEC. 479A. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

  (a) In General.--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. Special circumstances may 
include tuition expenses at an elementary or secondary school, 
medical, dental, or nursing home expenses not covered by 
insurance, unusually high child care or dependent care costs, 
recent unemployment of a family member or an independent 
student, a student or family member who is a dislocated worker 
(as defined in section 101 of the Workforce Investment Act of 
1998), 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 change in housing 
status that results in an individual being homeless (as defined 
in section 103 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. 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 (1) to request and use 
supplementary information about the financial status or 
personal circumstances of eligible applicants in selecting 
recipients and determining the amount of awards under this 
title, or (2) to offer a dependent student [financial 
assistance under section 428H or a Federal Direct Unsubsidized 
Stafford Loan] a Federal Direct Unsubsidized Stafford Loan or a 
Federal ONE Loan without requiring the parents of such student 
to file the financial aid form prescribed under section 483 if 
the student financial aid administrator verifies that the 
parent or parents of such student have ended financial support 
of such student and refuse to file such form. No student or 
parent shall be charged a fee for collecting, processing, or 
delivering such supplementary information.
  (b) Adjustments to Assets Taken Into Account.--A student 
financial aid administrator shall be considered to be making a 
necessary adjustment in accordance with subsection (a) if--
          (1) the administrator makes adjustments excluding 
        from family income any proceeds of a sale of farm or 
        business assets of a family if such sale results from a 
        voluntary or involuntary foreclosure, forfeiture, or 
        bankruptcy or an involuntary liquidation; or
          (2) the administrator makes adjustments in the award 
        level of a student with a disability so as to take into 
        consideration the additional costs such student incurs 
        as a result of such student's disability.
  (c) Refusal or Adjustment of Loan Certifications.--On a case-
by-case basis, an eligible institution may refuse to certify a 
statement that permits a student to receive a loan under [part 
B or D] part D or E, or may certify a loan amount or make a 
loan that is less than the student's determination of need (as 
determined under this part), if the reason for the action is 
documented and provided in written form to the student. No 
eligible institution shall discriminate against any borrower or 
applicant in obtaining a loan on the basis of race, national 
origin, religion, sex, marital status, age, or disability 
status.
  (d) Adjustment Based on Delivery of Instruction.--A student's 
eligibility to receive grants, loans, or work assistance under 
this title shall be reduced if a financial aid officer 
determines, in accordance with the discretionary authority 
provided under this section, that the model or method used to 
deliver instruction to the student results in a substantially 
reduced cost of attendance to the student.

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SEC. 480. DEFINITIONS.

  As used in this part:
  (a) Total Income.--(1)(A) Except as provided in subparagraph 
(B) and paragraph (2), the term ``total income'' is equal to 
adjusted gross income plus untaxed income and benefits for the 
preceding tax year minus excludable income (as defined in 
subsection (e)).
  [(B) Notwithstanding section 478(a), the Secretary may 
provide for the use of data from the second preceding tax year 
when and to the extent necessary to carry out the 
simplification of applications (including simplification for a 
subset of applications) used for the estimation and 
determination of financial aid eligibility. Such simplification 
may include the sharing of data between the Internal Revenue 
Service and the Department, pursuant to the consent of the 
taxpayer.]
  (B) Notwithstanding section 478(a), the Secretary shall 
provide for the use of data from the second preceding tax year 
to carry out the simplification of applications (including 
simplification for a subset of applications) used for the 
estimation and determination of financial aid eligibility. Such 
simplification shall include the sharing of data between the 
Internal Revenue Service and the Department, pursuant to the 
consent of the taxpayer.
  (2) No portion of any student financial assistance received 
from any program by an individual, no portion of veterans' 
education benefits received by an individual, no portion of a 
national service educational award or post-service benefit 
received by an individual under title I of the National and 
Community Service Act of 1990 (42 U.S.C. 12511 et seq.), no 
portion of any tax credit taken under section 25A of the 
Internal Revenue Code of 1986, and no distribution from any 
qualified education benefit described in subsection (f)(3) that 
is not subject to Federal income tax, shall be included as 
income or assets in the computation of expected family 
contribution for any program funded in whole or in part under 
this Act.
  (b) Untaxed Income and Benefits.--
          (1) The term ``untaxed income and benefits'' means--
                  (A) child support received;
                  (B) workman's compensation;
                  (C) veteran's benefits such as death pension, 
                dependency, and indemnity compensation, but 
                excluding veterans' education benefits as 
                defined in subsection (c);
                  (D) interest on tax-free bonds;
                  (E) housing, food, and other allowances 
                (excluding rent subsidies for low-income 
                housing) for military, clergy, and others 
                (including cash payments and cash value of 
                benefits), except that the value of on-base 
                military housing or the value of basic 
                allowance for housing determined under section 
                403(b) of title 37, United States Code, 
                received by the parents, in the case of a 
                dependent student, or the student or student's 
                spouse, in the case of an independent student, 
                shall be excluded;
                  (F) cash support or any money paid on the 
                student`s behalf, except, for dependent 
                students, funds provided by the student's 
                parents;
                  (G) untaxed portion of pensions;
                  (H) payments to individual retirement 
                accounts and Keogh accounts excluded from 
                income for Federal income tax purposes; and
                  (I) any other untaxed income and benefits, 
                such as Black Lung Benefits, Refugee 
                Assistance, or railroad retirement benefits, or 
                benefits received through participation in 
                employment and training activities under title 
                I of the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.).
          (2) The term ``untaxed income and benefits'' shall 
        not include--
                  (A) the amount of additional child tax credit 
                claimed for Federal income tax purposes;
                  (B) welfare benefits, including assistance 
                under a State program funded under part A of 
                title IV of the Social Security Act and aid to 
                dependent children;
                  (C) the amount of earned income credit 
                claimed for Federal income tax purposes;
                  (D) the amount of credit for Federal tax on 
                special fuels claimed for Federal income tax 
                purposes;
                  (E) the amount of foreign income excluded for 
                purposes of Federal income taxes; or
                  (F) untaxed social security benefits.
  (c) Veteran and Veterans' Education Benefits.--(1) The term 
``veteran'' means any individual who--
          (A) has engaged in the active duty in the United 
        States Army, Navy, Air Force, Marines, or Coast Guard; 
        and
          (B) was released under a condition other than 
        dishonorable.
  (2) The term ``veterans' education benefits'' means veterans' 
benefits the student will receive during the award year, 
including but not limited to benefits under the following 
provisions of law:
          (A) Chapter 103 of title 10, United States Code 
        (Senior Reserve Officers' Training Corps).
          (B) Chapter 106A of title 10, United States Code 
        (Educational Assistance for Persons Enlisting for 
        Active Duty).
          (C) Chapter 1606 of title 10, United States Code 
        (Selected Reserve Educational Assistance Program).
          (D) Chapter 1607 of title 10, United States Code 
        (Educational Assistance Program for Reserve Component 
        Members Supporting Contingency Operations and Certain 
        Other Operations).
          (E) Chapter 30 of title 38, United States Code (All-
        Volunteer Force Educational Assistance Program, also 
        known as the ``Montgomery GI Bill--active duty'').
          (F) Chapter 31 of title 38, United States Code 
        (Training and Rehabilitation for Veterans with Service-
        Connected Disabilities).
          (G) Chapter 32 of title 38, United States Code (Post-
        Vietnam Era Veterans' Educational Assistance Program).
          (H) Chapter 33 of title 38, United States Code (Post-
        9/11 Educational Assistance).
          (I) Chapter 35 of title 38, United States Code 
        (Survivors' and Dependents' Educational Assistance 
        Program).
          (J) Section 903 of the Department of Defense 
        Authorization Act, 1981 (10 U.S.C. 2141 note) 
        (Educational Assistance Pilot Program).
          (K) Section 156(b) of the ``Joint Resolution making 
        further continuing appropriations and providing for 
        productive employment for the fiscal year 1983, and for 
        other purposes'' (42 U.S.C. 402 note) (Restored 
        Entitlement Program for Survivors, also known as 
        ``Quayle benefits'').
          (L) The provisions of chapter 3 of title 37, United 
        States Code, related to subsistence allowances for 
        members of the Reserve Officers Training Corps.
  (d) Independent Student.--
          (1) Definition.--The term ``independent'', when used 
        with respect to a student, means any individual who--
                  (A) is 24 years of age or older by December 
                31 of the award year;
                  (B) is an orphan, in foster care, or a ward 
                of the court, or was an orphan, in foster care, 
                or a ward of the court at any time when the 
                individual was 13 years of age or older;
                  (C) is, or was immediately prior to attaining 
                the age of majority, an emancipated minor or in 
                legal guardianship as determined by a court of 
                competent jurisdiction in the individual's 
                State of legal residence;
                  (D) 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) is a graduate or professional student;
                  (F) is a married individual;
                  (G) has legal dependents other than a spouse;
                  (H) has been verified during the school year 
                in which the application is submitted as either 
                an unaccompanied youth who is a homeless child 
                or youth (as such terms are defined in section 
                725 of the McKinney-Vento Homeless Assistance 
                Act), or as unaccompanied, at risk of 
                homelessness, and self-supporting, by--
                          (i) a local educational agency 
                        homeless liaison, designated pursuant 
                        to section 722(g)(1)(J)(ii) of the 
                        McKinney-Vento Homeless Assistance Act;
                          (ii) the director of a program funded 
                        under the Runaway and Homeless Youth 
                        Act or a designee of the director;
                          (iii) the director of a program 
                        funded under subtitle B of title IV of 
                        the McKinney-Vento Homeless Assistance 
                        Act (relating to emergency shelter 
                        grants) or a designee of the director; 
                        or
                          (iv) a financial aid administrator; 
                        or
                  (I) is a student for whom a financial aid 
                administrator makes a documented determination 
                of independence by reason of other unusual 
                circumstances.
          (2) Simplifying the dependency override process.--A 
        financial aid administrator may make a determination of 
        independence under paragraph (1)(I) based upon a 
        documented determination of independence that was 
        previously made by another financial aid administrator 
        under such paragraph in the same award year.
  (e) Excludable Income.--The term ``excludable income'' 
means--
          (1) any student financial assistance awarded based on 
        need as determined in accordance with the provisions of 
        this part, including any income earned from work under 
        part C of this title;
          (2) any income earned from work under a cooperative 
        education program offered by an institution of higher 
        education;
          (3) any living allowance received by a participant in 
        a program established under the National and Community 
        Service Act of 1990;
          (4) child support payments made by the student or 
        parent;
          (5) payments made and services provided under part E 
        of title IV of the Social Security Act; and
          (6) special combat pay.
  (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 education 
benefits (except as provided in paragraph (3)), and the net 
value of real estate, income producing property, and business 
and farm assets.
  (2) 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;
          (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[.]; or
          (D) a qualified tuition program (as defined in 
        section 529(b)(1)(A) of the Internal Revenue Code of 
        1986).
          (3) A qualified education benefit shall be considered 
        an asset of--
                  (A) the student if the student is an 
                independent student; or
                  (B) the parent if the student is a dependent 
                student, regardless of whether the owner of the 
                account is the student or the parent.
  (4) In determining the value of assets in a determination of 
need under this title (other than for subpart 4 of part A), the 
value of a qualified education benefit shall be--
          (A) the refund value of any tuition credits or 
        certificates purchased under a qualified education 
        benefit; and
          (B) in the case of a program in which contributions 
        are made to an account that is established for the 
        purpose of meeting the qualified higher education 
        expenses of the designated beneficiary of the account, 
        the current balance of such account.
  (5) In this subsection:
          (A) The term ``qualified education benefit'' means--
                  (i) a [qualified tuition program (as defined 
                in section 529(b)(1)(A) of the Internal Revenue 
                Code of 1986) or other] prepaid tuition plan 
                offered by a State; and
                  (ii) a Coverdell education savings account 
                (as defined in section 530(b)(1) of the 
                Internal Revenue Code of 1986).
          (B) The term ``qualified higher education expenses'' 
        has the meaning given the term in section 529(e) of the 
        Internal Revenue Code of 1986.
  (g) Net Assets.--The term ``net assets'' means the current 
market value at the time of application of the assets (as 
defined in subsection (f)), minus the outstanding liabilities 
or indebtedness against the assets.
  (h) Treatment of Income Taxes Paid to Other Jurisdictions.--
(1) The tax on income paid to the Governments of the 
Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin 
Islands, or the Commonwealth of the Northern Mariana Islands, 
the Republic of the Marshall Islands, the Federated States of 
Micronesia, or Palau under the laws applicable to those 
jurisdictions, or the comparable tax paid to the central 
government of a foreign country, shall be treated as Federal 
income taxes.
  (2) References in this part to the Internal Revenue Code of 
1986, Federal income tax forms, and the Internal Revenue 
Service shall, for purposes of the tax described in paragraph 
(1), be treated as references to the corresponding laws, tax 
forms, and tax collection agencies of those jurisdictions, 
respectively, subject to such adjustments as the Secretary may 
provide by regulation.
  (i) Current Balance.--The term ``current balance of checking 
and savings accounts'' does not include any funds over which an 
individual is barred from exercising discretion and control 
because of the actions of any State in declaring a bank 
emergency due to the insolvency of a private deposit insurance 
fund.
  (j) Other Financial Assistance.--(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 national 
service educational awards or post-service benefits under title 
I of the National and Community Service Act of 1990 (42 U.S.C. 
12511 et seq.), but excluding veterans' education benefits as 
defined in subsection (c).
  (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, under another prepaid tuition plan 
offered by a State, or under a Coverdell education savings 
account under section 530 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 provided by a State and is designated by such 
State 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.
          (4) Notwithstanding paragraph (1), special combat pay 
        shall not be treated as estimated financial assistance 
        for purposes of section 471(3).
  (k) Dependents.--(1) Except as otherwise provided, the term 
``dependent of the parent'' means the student, dependent 
children of the student's parents, including those children who 
are deemed to be dependent students when applying for aid under 
this title, and other persons who live with and receive more 
than one-half of their support from the parent and will 
continue to receive more than half of their support from the 
parent during the award year.
  (2) Except as otherwise provided, the term ``dependent of the 
student'' means the student's dependent children and other 
persons (except the student's spouse) who live with and receive 
more than one-half of their support from the student and will 
continue to receive more than half of their support from the 
student during the award year.
  (l) Family Size.--(1) In determining family size in the case 
of a dependent student--
          (A) if the parents are not divorced or separated, 
        family members include the student's parents, and the 
        dependents of the student's parents including the 
        student;
          (B) if the parents are divorced or separated, family 
        members include the parent whose income is included in 
        computing available income and that parent's 
        dependents, including the student; and
          (C) if the parents are divorced and the parent whose 
        income is so included is remarried, or if the parent 
        was a widow or widower who has remarried, family 
        members also include, in addition to those individuals 
        referred to in subparagraph (B), the new spouse and any 
        dependents of the new spouse if that spouse's income is 
        included in determining the parents' adjusted available 
        income.
  (2) In determining family size in the case of an independent 
student--
          (A) family members include the student, the student's 
        spouse, and the dependents of the student; and
          (B) if the student is divorced or separated, family 
        members do not include the spouse (or ex-spouse), but 
        do include the student and the student's dependents.
  (m) Business Assets.--The term ``business assets'' means 
property that is used in the operation of a trade or business, 
including real estate, inventories, buildings, machinery, and 
other equipment, patents, franchise rights, and copyrights.
  (n) Special Combat Pay.--The term ``special combat pay'' 
means pay received by a member of the Armed Forces because of 
exposure to a hazardous situation.

   Part G--General Provisions Relating to Student Assistance Programs

SEC. 481. DEFINITIONS.

  (a) Academic and Award Year.--(1) For the purpose of any 
program under this title, the term ``award year'' shall be 
defined as the period beginning July 1 and ending June 30 of 
the following year.
  (2)(A) [For the] Except as provided in paragraph (3), for the 
purpose of any program under this title, the term ``academic 
year'' shall--
          (i) [require a minimum of 30 weeks] require--
                  (I) a minimum of 30 weeks of instructional 
                time for a course of study that measures its 
                program length in credit hours; or
                  [(ii)] (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)] (ii) 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 and that measures program 
length in credit hours or clock hours.
  (3)(A) For the purpose of a competency-based education 
program the term ``academic year'' shall be the published 
measured period established by the institution of higher 
education that is necessary for a student with a normal full-
time workload for the course of study the student is pursuing 
(as measured using the value of competencies or sets of 
competencies required by such institution and approved by such 
institution's accrediting agency or association) to earn--
          (i) one-quarter of a bachelor's degree;
          (ii) one-half of an associate's degree; or
          (iii) with respect to a non-degree or graduate 
        program, the equivalent of a period described in clause 
        (i) or (ii).
  (B)(i) A competency-based education program that is not a 
term-based program may be treated as a term-based program for 
purposes of establishing payment periods for disbursement of 
loans and grants under this title if--
          (I) the institution of higher education that offers 
        such program charges a flat subscription fee for access 
        to instruction during a period determined by the 
        institution; and
          (II) the institution is able to determine the 
        competencies a student is expected to demonstrate for 
        such subscription period.
          (ii) Clause (i) shall apply even in a case in which 
        instruction or other work with respect to a competency 
        that is expected to be attributable to a subscription 
        period begins prior to such subscription period.
          (iii) In a case in which a competency-based education 
        program offered by an institution of higher education 
        is treated as a term-based program under clause (i), 
        the institution shall review the academic progress of 
        each student enrolled in such program in accordance 
        with section 484(c), except that such review shall 
        occur at the end of each payment period.
  [(b) Eligible Program.--(1) For purposes of this title, the 
term ``eligible program'' means a program of at least--
          [(A) 600 clock hours of instruction, 16 semester 
        hours, or 24 quarter hours, offered during a minimum of 
        15 weeks, in the case of a program that--
                  [(i) provides a program of training to 
                prepare students for gainful employment in a 
                recognized profession; and
                  [(ii) admits students who have not completed 
                the equivalent of an associate degree; or
          [(B) 300 clock hours of instruction, 8 semester 
        hours, or 12 hours, offered during a minimum of 10 
        weeks, in the case of--
                  [(i) an undergraduate program that requires 
                the equivalent of an associate degree for 
                admissions; or
                  [(ii) a graduate or professional program.
  [(2)(A) A program is an eligible program for purposes of part 
B of this title if it is a program of at least 300 clock hours 
of instruction, but less than 600 clock hours of instruction, 
offered during a minimum of 10 weeks, that--
          [(i) has a verified completion rate of at least 70 
        percent, as determined in accordance with the 
        regulations of the Secretary;
          [(ii) has a verified placement rate of at least 70 
        percent, as determined in accordance with the 
        regulations of the Secretary; and
          [(iii) satisfies such further criteria as the 
        Secretary may prescribe by regulation.
  [(B) 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 
have satisfied the requirements of this paragraph.
  [(3) 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 the Higher Education Reconciliation Act of 2005) 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).
  [(4) For purposes of this title, the term ``eligible 
program'' includes an instructional program that, in lieu of 
credit hours or clock hours as the measure of student learning, 
utilizes direct assessment of student learning, or recognizes 
the direct assessment of student learning by others, if such 
assessment is consistent with the accreditation of the 
institution or program utilizing the results of the assessment. 
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 
an eligible program.]
  (b) Eligible Program.--(1) For purposes of this title, the 
term ``eligible program'' means--
          (A) a program of at least 300 clock hours of 
        instruction, 8 semester hours, or 12 quarter hours, 
        offered during a minimum of 10 weeks; or
          (B) a competency-based program that--
                  (i) has been evaluated and approved by an 
                accrediting agency or association that--
                          (I) is recognized by the Secretary 
                        under subpart 2 of part H; and
                          (II) has evaluation of competency-
                        based education programs within the 
                        scope of its recognition in accordance 
                        with section 496(a)(4)(C); or
                  (ii) as of the day before the date of 
                enactment of the PROSPER Act, met the 
                requirements of a direct assessment program 
                under section 481(b)(4) (as such section was in 
                effect on the day before such date of 
                enactment).
  (2) An eligible program described in paragraph (1) may be 
offered in whole or in part through telecommunications.
  (3) For purposes of this title, the term ``eligible program'' 
does not include a program that loses its eligibility under 
section 481B(a).
  (4)(A) If an eligible institution enters into a written 
arrangement with an institution or organization that is not an 
eligible institution under which such ineligible institution or 
organization provides the educational program (in whole or in 
part) of students enrolled in the eligible institution, the 
educational program provided by such ineligible institution 
shall be considered to be an eligible program if--
                  (i) the ineligible institution or 
                organization has not--
                          (I) had its eligibility to 
                        participate in the programs under this 
                        title terminated by the Secretary;
                          (II) voluntarily withdrawn from 
                        participation in the programs under 
                        this title under a proceeding initiated 
                        by the Secretary, accrediting agency or 
                        association, guarantor, or the 
                        licensing agency for the State in which 
                        the institution is located, including a 
                        termination, show-cause, or suspension;
                          (III) had its certification under 
                        subpart 3 of part H to participate in 
                        the programs under this title revoked 
                        by the Secretary;
                          (IV) had its application for 
                        recertification under subpart 3 of part 
                        H to participate in the programs under 
                        this title denied by the Secretary; or
                          (V) had its application for 
                        certification under subpart 3 of part H 
                        to participate in the programs under 
                        this title denied by the Secretary;
                  (ii) the educational program offered by the 
                institution that grants the degree or 
                certificate otherwise satisfies the 
                requirements of paragraph (1); and
                  (iii)(I) the ineligible institution or 
                organization provides 25 percent or less of the 
                educational program; or
                  (II)(aa) the ineligible institution or 
                organization provides more than 25 percent of 
                the educational program; and
                  (bb) the eligible institution's accrediting 
                agency or association has determined that the 
                eligible institution's arrangement meets the 
                agency's standards for the contracting out of 
                educational services in accordance with section 
                496(c)(5)(B)(iv).
  (B) For purposes of subparagraph (A), the term ``eligible 
institution'' means an institution described in section 487(a).
  (c) Third Party Servicer.--For purposes of this title, the 
term ``third party servicer'' means any individual, any State, 
or any private, for-profit or nonprofit organization, which 
enters into a contract with--
          (1) any eligible institution of higher education to 
        administer, through either manual or automated 
        processing, any aspect of such institution's student 
        assistance programs under this title; or
          (2) any guaranty agency, or any eligible lender, to 
        administer, through either manual or automated 
        processing, any aspect of such guaranty agency's or 
        lender's student loan programs under [part B of] this 
        title, including originating, guaranteeing, monitoring, 
        processing, servicing, or collecting loans.
  (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) Consumer Reporting Agency.--For purposes of this title, 
the term ``consumer reporting agency'' has the meaning given 
the term ``consumer reporting agency that compiles and 
maintains files on consumers on a nationwide basis'' in Section 
603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)).
  (f) Definition of Educational Service Agency.--For purposes 
of parts B, D, and E, the term ``educational service agency'' 
has the meaning given the term in section 8101 of the 
Elementary and Secondary Education Act of 1965.

           *       *       *       *       *       *       *


SEC. 481B. PROGRAMMATIC LOAN REPAYMENT RATES.

  (a) Ineligibility of an Educational Program Based on Low 
Repayment Rates.--
          (1) In general.--With respect to fiscal year 2016 and 
        each succeeding fiscal year, an educational program at 
        an institution of higher education whose loan repayment 
        rate is less than 45 percent for each of the 3 most 
        recent fiscal years for which data are available shall 
        not be considered an eligible program for the fiscal 
        year in which the determination is made and for the 2 
        succeeding fiscal years, unless, not later than 30 days 
        after receiving notification from the Secretary of the 
        loss of eligibility under this paragraph, the 
        institution appeals the loss of such program's 
        eligibility to the Secretary.
          (2) Appeal.--The Secretary shall issue a decision on 
        any such appeal within 45 days after its submission. 
        Such decision may permit a program to be considered an 
        eligible program, if--
                  (A) the institution demonstrates to the 
                satisfaction of the Secretary that--
                          (i) the Secretary's calculation of 
                        such program's loan repayment rate is 
                        not accurate; and
                          (ii) recalculation would increase 
                        such program's loan repayment rate for 
                        any of the 3 fiscal years equal to or 
                        greater than 45 percent; or
                  (B) the program is not subject to paragraph 
                (1) by reason of paragraph (3).
          (3) Participation rate index.--
                  (A) In general.--An institution that 
                demonstrates to the Secretary that a program's 
                participation rate index is equal to or less 
                than 0.11 for any of the 3 most recent fiscal 
                years for which data is available shall not be 
                subject to paragraph (1).
                  (B) Index calculation.--The participation 
                rate index for a program shall be determined by 
                multiplying--
                          (i) the amount of the difference 
                        between--
                                  (I) 1.0; and
                                  (II) the quotient that 
                                results by dividing--
                                          (aa) the program's 
                                        loan repayment rate for 
                                        a fiscal year, or the 
                                        weighted average loan 
                                        repayment rate for a 
                                        fiscal year, by
                                          (bb) 100; and
                          (ii) the quotient that results by 
                        dividing--
                                  (I) the percentage of the 
                                program's regular students, 
                                enrolled on at least a half-
                                time basis, who received a 
                                covered loan for a 12-month 
                                period ending during the 6 
                                months immediately preceding 
                                the fiscal year for which the 
                                program's loan repayment rate 
                                or the weighted average loan 
                                repayment rate is determined, 
                                by
                                  (II) 100.
                  (C) Data.--An institution shall provide the 
                Secretary with sufficient data to determine the 
                program's participation rate index not later 
                than 30 days after receiving an initial 
                notification of the program's draft loan 
                repayment rate under subsection (d)(4)(C).
                  (D) Notification.--Prior to publication of a 
                final loan repayment rate under subsection 
                (d)(4)(A) for a program at an institution that 
                provides the data described in subparagraph 
                (C), the Secretary shall notify the institution 
                of the institution's compliance or 
                noncompliance with subparagraph (A).
  (b) Repayment Improvement and Assessment of Eligibility Based 
on Low Loan Repayment Rates.--
          (1) First year.--
                  (A) In general.--An institution with a 
                program whose loan repayment rate is less than 
                45 percent for any fiscal year shall establish 
                a repayment improvement task force to prepare a 
                plan to--
                          (i) identify the factors causing such 
                        program's loan repayment rate to fall 
                        below such percent;
                          (ii) establish measurable objectives 
                        and the steps to be taken to improve 
                        the program's loan repayment rate; and
                          (iii) specify actions that the 
                        institution can take to improve student 
                        loan repayment, including appropriate 
                        counseling regarding loan repayment 
                        options.
                  (B) Technical assistance.--Each institution 
                subject to this paragraph shall submit the plan 
                under subparagraph (A) to the Secretary, who 
                shall review the plan and offer technical 
                assistance to the institution to promote 
                improved student loan repayment.
          (2) Second consecutive year.--
                  (A) In general.--An institution with a 
                program whose loan repayment rate is less than 
                45 percent for two consecutive fiscal years, 
                shall--
                          (i) require the institution's 
                        repayment improvement task force 
                        established under paragraph (1) to 
                        review and revise the plan required 
                        under such paragraph; and
                          (ii) submit such revised plan to the 
                        Secretary.
                  (B) Review by the Secretary.--The Secretary--
                          (i) shall review each revised plan 
                        submitted in accordance with this 
                        paragraph; and
                          (ii) may direct that such plan be 
                        amended to include actions, with 
                        measurable objectives, that the 
                        Secretary determines, based on 
                        available data and analyses of student 
                        loan repayment and non-repayment, will 
                        promote student loan repayment.
  (c) Programmatic Loan Repayment Rate Defined.--
          (1) In general Except as provided in subsection (d), 
        for purposes of this section, the term ``loan repayment 
        rate'' means, when used with respect to an educational 
        program at an institution--
                  (A) with respect to any fiscal year in which 
                30 or more current and former students in such 
                program enter repayment on a covered loan 
                received for attendance in such program, the 
                percentage of such current and former 
                students--
                          (i) who enter repayment in such 
                        fiscal year on a covered loan received 
                        for attendance in such program; and
                          (ii) who are in a positive repayment 
                        status on each such covered loan at the 
                        end of the second fiscal year following 
                        the fiscal year in which such students 
                        entered repayment on such loan; and
                  (B) with respect to any fiscal year in which 
                fewer than 30 of the current and former 
                students in such program enter repayment on a 
                covered loan received for attendance in such 
                program, the percentage of such current and 
                former students--
                          (i) who, in any of the three most 
                        recent fiscal years, entered repayment 
                        on a covered loan received for 
                        attendance in such program; and
                          (ii) who are in a positive repayment 
                        status on each such covered loan at the 
                        end of the second fiscal year following 
                        the fiscal year in which such students 
                        entered repayment on such loan.
          (2) Guaranty agency requirements.--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 loan repayment rate for 
        programs at such institution, prior to the calculation 
        of such rate.
          (3) Positive repayment status.--For purposes of this 
        section, the term ``positive repayment status'', when 
        used with respect to a borrower of a covered loan, 
        means--
                  (A) the borrower has entered repayment on 
                such loan, and such loan is less than 90 days 
                delinquent;
                  (B) the loan is paid in full (but not through 
                consolidation); or
                  (C) with respect to a covered loan that is a 
                Federal ONE Loan, the loan is in a deferment 
                described in 469A(b)(1), and with respect to a 
                covered loan made, insured, or guaranteed under 
                part B or made under part D, the loan is in a 
                deferment or forbearance that is comparable to 
                a deferment described in 469A(b)(1).
          (4) Covered loan.--For purposes of this section--
                  (A) the term ``covered loan'' means--
                          (i) a loan made, insured, or 
                        guaranteed under section 428 or 428H;
                          (ii) a Federal Direct Stafford Loan;
                          (iii) a Federal Direct Unsubsidized 
                        Stafford Loan;
                          (iv) a Federal Direct PLUS Loan 
                        issued to a graduate or professional 
                        student;
                          (v) a Federal ONE Loan (other than a 
                        Federal ONE Parent Loan or a Federal 
                        ONE Consolidation Loan not described in 
                        clause (vi)); or
                          (vi) the portion of a loan made under 
                        section 428C, a Federal Direct 
                        Consolidation Loan, or a Federal ONE 
                        Consolidation Loan that is used to 
                        repay any covered loan described in 
                        clauses (i) through (v); and
                  (B) the term ``covered loan'' does not 
                include a loan described in subparagraph (A) 
                that has been discharged under section 437(a).
  (d) Special Rules.--
          (1) In general.--In the case of a student who has 
        attended and borrowed at more than one institution of 
        higher education or for more than one educational 
        program at an institution, the student (and such 
        student's subsequent positive repayment status on a 
        covered loan, if applicable)) shall be attributed to 
        each institution of higher education and educational 
        program for attendance at which the student received a 
        loan that entered repayment for the fiscal year for 
        which the loan repayment rate is being calculated.
          (2) Delinquent.--A loan on which a payment is made by 
        an institution of higher education, such institutions's 
        owner, agent, contractor, employee, or any other entity 
        or individual affiliated with such institution, in 
        order to prevent the borrower from being more than 90 
        days delinquent on the loan, shall be considered more 
        than 90 days delinquent for purposes of this 
        subsection.
          (3) Regulations to prevent evasions.--The Secretary 
        shall prescribe regulations designed to prevent an 
        institution of higher education from evading the 
        application of a loan repayment rate determination 
        under this section to an educational program at such 
        institution through--
                  (A) the use of such measures as branching, 
                consolidation, change of ownership or control, 
                or any similar device; or
                  (B) creating a new educational program that 
                is substantially similar to a program 
                determined to be ineligible under subsection 
                (a).
          (4) Collection and reporting of loan repayment 
        rates.--
                  (A) In general The Secretary shall publish 
                not less often than once every fiscal year a 
                report showing final loan repayment data for 
                each program at each institution of higher 
                education for which a loan repayment rate is 
                calculated under this section.
                  (B) Publication.--The Secretary shall publish 
                the report described in subparagraph (A) by 
                September 30 of each year.
                  (C) Drafts.--
                          (i) In general.--The Secretary shall 
                        provide institutions with draft loan 
                        repayment rates for each educational 
                        program at the institution at least 6 
                        months prior to the release of the 
                        final rates under subparagraph (A).
                          (ii) Challenge of draft rates.--An 
                        institution may challenge a program's 
                        draft loan repayment rate provided 
                        under clause (i) for any fiscal year by 
                        demonstrating to the satisfaction of 
                        the Secretary that such draft loan 
                        repayment rate is not accurate.
  (e) Transition Period.--
          (1) During the transition period.--During the 
        transition period, the cohort default rate for each 
        institution of higher education shall be calculated 
        under section 435(m)(1) for each fiscal year for which 
        such rate has not yet been calculated and any 
        requirements with respect to such rates shall continue 
        to apply, except that the loans with respect to which 
        such cohort default rate shall be calculated shall be 
        the covered loans defined in subsection (c)(4).
          (2) After the transition period.--After the 
        transition period, no new cohort default rates shall be 
        calculated for an institution of higher education and 
        any requirements with respect to such rates shall cease 
        to apply.
          (3) Definitions.--For purposes of this subsection--
                  (A) the term ``cohort default rate'' has the 
                meaning given the term in section 435(m); and
                  (B) the term ``transition period'' means the 
                period--
                          (i) beginning on the date of 
                        enactment of the PROSPER Act; and
                          (ii) ending on the date on which the 
                        Secretary has published under 
                        subsection (d)(4)(A) the final loan 
                        repayment rate for each program at each 
                        institution of higher education with 
                        respect to each of fiscal years 2016, 
                        2017, and 2018.

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) by [February 1] January 15: first meeting 
                of the technical committee on forms design of 
                the Department;
                  (B) by [March 1] February 1: proposed 
                modifications, updates, and notices pursuant to 
                sections 478 and 483(a)(5) published in the 
                Federal Register;
                  (C) by [June 1] May 1: final modifications, 
                updates, and notices pursuant to sections 478 
                and 483(a)(5) published in the Federal 
                Register;
                  (D) by [August 15] July 15: application for 
                Federal student assistance and multiple data 
                entry data elements and instructions approved;
                  [(E) by August 30: final approved forms 
                delivered to servicers and printers;]
                  [(F)] (E) by [October 1] September 1: Federal 
                and multiple data entry forms and instructions 
                printed; and
                  [(G)] (F) by [November 1] October 1: Federal 
                and multiple data entry forms, instructions, 
                and training materials distributed.
          (2) Allocations of campus-based and Pell Grant 
        funds--
                  (A) by August 1: distribution of 
                institutional application for campus-based 
                funds (FISAP) to institutions;
                  (B) by October 1: final date for submission 
                of FISAP by institutions to the Department;
                  (C) by November 1: final Pell Grant payment 
                schedule;
                  [(C)] (D) by November 15: edited FISAP and 
                computer printout received by institutions;
                  [(D)] (E) by December 1: appeals procedures 
                received by institutions;
                  [(E)] (F) by December 15: edits returned by 
                institutions to the Department;
                  [(F)] (G) by February 1: tentative award 
                levels received by institutions [and final Pell 
                Grant payment schedule];
                  [(G)] (H) by February 15: closing date for 
                receipt of institutional appeals by the 
                Department;
                                  [(H)] (I) by March 1: appeals 
                                process completed;
                  [(I)] (J) by April 1: final award 
                notifications sent to institutions; and
                  [(J)] (K) by [June 1] May 1: Pell Grant 
                authorization levels sent to institutions.
          (3) The Secretary shall, to the extent practicable, 
        notify eligible institutions, guaranty agencies, 
        lenders, interested software providers, and, upon 
        request, other interested parties, by December 1 prior 
        to the start of an award year of minimal hardware and 
        software requirements necessary to administer programs 
        under this title.
          (4) The Secretary shall attempt to conduct training 
        activities for financial aid administrators and others 
        in an expeditious and timely manner prior to the start 
        of an award year in order to ensure that all 
        participants are informed of all administrative 
        requirements.
  (b) Timing for Reallocations.--With respect to any funds 
reallocated under section [413D(d), 442(d), or 462(i)] 442(d), 
the Secretary shall reallocate such funds at any time during 
the course of the year that will best meet the purpose of [the 
programs under subpart 3 of part A, part C, and part E, 
respectively] part C. However, such reallocation shall occur at 
least once each year, not later than September 30 of that year.
  (c) Delay of Effective Date of Late Publications.--(1) Except 
as provided in paragraph (2), any regulatory changes initiated 
by the Secretary affecting the programs under this title that 
have not been published in final form by November 1 prior to 
the start of the award year shall not become effective until 
the beginning of the second award year after such November 1 
date.
  (2)(A) The Secretary may designate any regulatory provision 
that affects the programs under this title and is published in 
final form after November 1 as one that an entity subject to 
the provision may, in the entity's discretion, choose to 
implement prior to the effective date described in paragraph 
(1). The Secretary may specify in the designation when, and 
under what conditions, an entity may implement the provision 
prior to that effective date. The Secretary shall publish any 
designation under this subparagraph in the Federal Register.
  (B) If an entity chooses to implement a regulatory provision 
prior to the effective date described in paragraph (1), as 
permitted by subparagraph (A), the provision shall be effective 
with respect to that entity in accordance with the terms of the 
Secretary's designation.
  (d) Notice to Congress.--The Secretary shall notify the 
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.
  (e) Compliance Calendar.--Prior to the beginning of each 
award year, the Secretary shall provide to institutions of 
higher education a list of all the reports and disclosures 
required under this Act. The list shall include--
          (1) the date each report or disclosure is required to 
        be completed and to be submitted, made available, or 
        disseminated;
          (2) the required recipients of each report or 
        disclosure;
          (3) any required method for transmittal or 
        dissemination of each report or disclosure;
          (4) a description of the content of each report or 
        disclosure sufficient to allow the institution to 
        identify the appropriate individuals to be assigned the 
        responsibility for such report or disclosure;
          (5) references to the statutory authority, applicable 
        regulations, and current guidance issued by the 
        Secretary regarding each report or disclosure; and
          (6) any other information which is pertinent to the 
        content or distribution of the report or disclosure.

SEC. 483. FORMS AND REGULATIONS.

  (a) Common Financial Aid Form Development and Processing.--
          (1) In general.--The Secretary, in cooperation with 
        representatives of agencies and organizations involved 
        in student financial assistance, shall produce, 
        distribute, and process free of charge common financial 
        reporting forms as described in this subsection to be 
        used for application and reapplication to determine the 
        need and eligibility of a student for financial 
        assistance under parts A through E (other than subpart 
        4 of part A). The forms shall be made available to 
        applicants in both paper and electronic formats and 
        shall be referred to as the ``Free Application for 
        Federal Student Aid'' or the ``FAFSA''. The Secretary 
        shall work to make the FAFSA consumer-friendly and to 
        make questions on the FAFSA easy for students and 
        families to read and understand, and shall ensure that 
        the FAFSA is available in formats accessible to 
        individuals with disabilities.
          (2) Paper format.--
                  (A) In general.--The Secretary shall develop, 
                make available, and process--
                          (i) a paper version of EZ FAFSA, as 
                        described in subparagraph (B); and
                          (ii) a paper version of the other 
                        forms described in this subsection, in 
                        accordance with subparagraph (C), for 
                        any applicant who does not meet the 
                        requirements of or does not wish to use 
                        the process described in subparagraph 
                        (B).
                  (B) EZ fafsa.--
                          (i) In general.--The Secretary shall 
                        develop and use, after appropriate 
                        field testing, a simplified paper form, 
                        to be known as the EZ FAFSA, to be used 
                        for applicants meeting the requirements 
                        of subsection (b) or (c) of section 
                        479.
                          (ii) Reduced data requirements.--The 
                        EZ FAFSA shall permit an applicant to 
                        submit, for financial assistance 
                        purposes, only the data elements 
                        required to make a determination of 
                        whether the applicant meets the 
                        requirements under subsection (b) or 
                        (c) of section 479.
                          (iii) State data.--The Secretary 
                        shall include on the EZ FAFSA such data 
                        items as may be necessary to award 
                        State financial assistance, as provided 
                        under paragraph (5), except that the 
                        Secretary shall not include a State's 
                        data if that State does not permit the 
                        State's resident applicants to use the 
                        EZ FAFSA for State assistance.
                          (iv) Free availability and 
                        processing.--The provisions of 
                        paragraph (6) shall apply to the EZ 
                        FAFSA, and the data collected by means 
                        of the EZ FAFSA shall be available to 
                        institutions of higher education, 
                        guaranty agencies, and States in 
                        accordance with paragraph (10).
                  (C) Promoting the use of electronic fafsa.--
                          (i) In general.--The Secretary shall 
                        make all efforts to encourage all 
                        applicants to utilize the electronic 
                        version of the forms described in 
                        paragraph (3).
                          (ii) Maintenance of the fafsa in a 
                        printable electronic file.--The 
                        Secretary shall maintain a version of 
                        the paper forms described in 
                        subparagraphs (A) and (B) in a 
                        printable electronic file that is 
                        easily portable, accessible, and 
                        downloadable to students on the same 
                        website used to provide students with 
                        the electronic version of the forms 
                        described in paragraph (3).
                          (iii) Requests for printed copy.--The 
                        Secretary shall provide a printed copy 
                        of the full paper version of FAFSA upon 
                        request.
                          (iv) Reporting requirement.--The 
                        Secretary shall maintain data, and 
                        periodically report to Congress, on the 
                        impact of the digital divide on 
                        students completing applications for 
                        aid under this title. The Secretary 
                        shall report on the steps taken to 
                        eliminate the digital divide and reduce 
                        production of the paper form described 
                        in subparagraph (A). The Secretary's 
                        report shall specifically address the 
                        impact of the digital divide on the 
                        following student populations:
                                  (I) Independent students.
                                  (II) Traditionally 
                                underrepresented students.
                                  (III) Dependent students.
          (3) Electronic format.--
                  (A) In general.--The Secretary shall produce, 
                distribute, and process forms in electronic 
                format to meet the requirements of paragraph 
                (1). The Secretary shall develop an electronic 
                version of the forms for applicants who do not 
                meet the requirements of subsection (b) or (c) 
                of section 479.
                  (B) Simplified applications: fafsa on the 
                web.--
                          (i) In general.--The Secretary shall 
                        develop and use a simplified electronic 
                        version of the form to be used by 
                        applicants meeting the requirements 
                        under subsection (b) or (c) of section 
                        479.
                          (ii) Reduced data requirements.--The 
                        simplified electronic version of the 
                        forms shall permit an applicant to 
                        submit, for financial assistance 
                        purposes, only the data elements 
                        required to make a determination of 
                        whether the applicant meets the 
                        requirements under subsection (b) or 
                        (c) of section 479.
                          (iii) Use of forms.--Nothing in this 
                        subsection shall be construed to 
                        prohibit the use of the forms developed 
                        by the Secretary pursuant to this 
                        paragraph by an eligible institution, 
                        eligible lender, guaranty agency, State 
                        grant agency, private computer software 
                        provider, a consortium thereof, or such 
                        other entities as the Secretary may 
                        designate.
                  (C) State data.--The Secretary shall include 
                on the electronic version of the forms such 
                items as may be necessary to determine 
                eligibility for State financial assistance, as 
                provided under paragraph (5), except that the 
                Secretary shall not require an applicant to 
                enter data pursuant to this subparagraph that 
                are required by any State other than the 
                applicant's State of residence.
                  (D) Availability and processing.--The data 
                collected by means of the simplified electronic 
                version of the forms shall be available to 
                institutions of higher education, guaranty 
                agencies, and States in accordance with 
                paragraph (10).
                  (E) Privacy.--The Secretary shall ensure that 
                data collection under this paragraph complies 
                with section 552a of title 5, United States 
                Code, and that any entity using the electronic 
                version of the forms developed by the Secretary 
                pursuant to this paragraph shall maintain 
                reasonable and appropriate administrative, 
                technical, and physical safeguards to ensure 
                the integrity and confidentiality of the 
                information, and to protect against security 
                threats, or unauthorized uses or disclosures of 
                the information provided on the electronic 
                version of the forms. Data collected by such 
                electronic version of the forms shall be used 
                only for the application, award, and 
                administration of aid awarded under this title, 
                State aid, or aid awarded by eligible 
                institutions or such entities as the Secretary 
                may designate. No data collected by such 
                electronic version of the forms shall be used 
                for making final aid awards under this title 
                until such data have been processed by the 
                Secretary or a contractor or designee of the 
                Secretary, except as may be permitted under 
                this title. Notwithstanding the limitations on 
                sharing data described in this paragraph, an 
                institution of higher education may, with 
                explicit written consent of the applicant, 
                provide such information as is necessary to a 
                scholarship granting organization designated by 
                the applicant to assist the applicant in 
                applying for and receiving financial assistance 
                for the applicant's education at that 
                institution. An organization that receives 
                information pursuant to the preceding sentence 
                shall not maintain, warehouse, sell, or 
                otherwise store or share such information after 
                it has been used to determine the additional 
                aid available for such applicant and the 
                organization shall destroy the information 
                after such determination has been made.
                  (F) Signature.--Notwithstanding any other 
                provision of this Act, the Secretary may 
                continue to permit an electronic version of the 
                form under this paragraph to be submitted 
                without a signature, if a signature is 
                subsequently submitted by the applicant or if 
                the applicant uses a personal identification 
                number provided by the Secretary under 
                subparagraph (G).
                  (G) Personal identification numbers 
                authorized.--The Secretary may continue to 
                assign to an applicant a personal 
                identification number--
                          (i) to enable the applicant to use 
                        such number as a signature for purposes 
                        of completing an electronic version of 
                        a form developed under this paragraph; 
                        and
                          (ii) for any purpose determined by 
                        the Secretary to enable the Secretary 
                        to carry out this title.
                  (H) Personal identification number 
                improvement.--The Secretary shall continue to 
                work with the Commissioner of Social Security 
                to minimize the time required for an applicant 
                to obtain a personal identification number when 
                applying for aid under this title through an 
                electronic version of a form developed under 
                this paragraph.
                  (I) Format.--Not later than 1 year after the 
                date of the enactment of the PROSPER Act, the 
                Secretary shall make the electronic version of 
                the forms under this paragraph available 
                through a technology tool optimized for use on 
                mobile devices. Such technology tool shall, at 
                minimum, enable applicants to--
                          (i) save data; and
                          (ii) submit the FAFSA of such 
                        applicant to the Secretary through such 
                        tool.
                  (J) Consumer testing.--In developing and 
                maintaining the electronic version of the forms 
                under this paragraph and the technology tool 
                for mobile devices under subparagraph (I), the 
                Secretary shall conduct consumer testing with 
                appropriate persons to ensure the forms and 
                technology tool are designed to be easily 
                usable and understandable by students and 
                families. Such consumer testing shall include--
                          (i) current and prospective college 
                        students, family members of such 
                        students, and other individuals with 
                        expertise in student financial 
                        assistance application processes;
                          (ii) dependent students and 
                        independent students who meet the 
                        requirements under subsection (b) or 
                        (c) of section 479; and
                          (iii) dependent students and 
                        independent students who do not meet 
                        the requirements under subsection (b) 
                        or (c) of section 479.
          (4) Streamlining.--
                  (A) Streamlined reapplication process.--
                          (i) In general.--The Secretary shall 
                        continue to streamline reapplication 
                        forms and processes for an applicant 
                        who applies for financial assistance 
                        under this title in the next succeeding 
                        academic year subsequent to an academic 
                        year for which such applicant applied 
                        for financial assistance under this 
                        title.
                          (ii) Updating of data elements.--The 
                        Secretary shall determine, in 
                        cooperation with States, institutions 
                        of higher education, agencies, and 
                        organizations involved in student 
                        financial assistance, the data elements 
                        that may be transferred from the 
                        previous academic year's application 
                        and those data elements that shall be 
                        updated.
                          (iii) Reduced data authorized.--
                        Nothing in this title shall be 
                        construed as limiting the authority of 
                        the Secretary to reduce the number of 
                        data elements required of reapplicants.
                          (iv) Zero family contribution.--
                        Applicants determined to have a zero 
                        family contribution pursuant to section 
                        479(c) shall not be required to provide 
                        any financial data in a reapplication 
                        form, except data that are necessary to 
                        determine eligibility under such 
                        section.
                  (B) Reduction of data elements.--
                          (i) Reduction encouraged.--Of the 
                        number of data elements on the FAFSA 
                        used for the 2009-2010 award year, the 
                        Secretary, in cooperation with 
                        representatives of agencies and 
                        organizations involved in student 
                        financial assistance and consistent 
                        with efforts under subsection (c), 
                        shall continue to reduce the number of 
                        such data elements required to be 
                        entered by all applicants, with the 
                        goal of reducing such number by 50 
                        percent.
                          (ii) Report.--The Secretary shall 
                        submit a report on the process of this 
                        reduction to each of the authorizing 
                        committees by June 30, 2011.
          (5) State requirements.--
                  (A) In general.--Except as provided in 
                paragraphs (2)(B)(iii), (3)(B), and (4)(A)(ii), 
                the Secretary shall include on the forms 
                developed under this subsection, such State-
                specific data items as the Secretary determines 
                are necessary to meet State requirements for 
                need-based State aid. Such items shall be 
                selected in consultation with State agencies in 
                order to assist in the awarding of State 
                financial assistance in accordance with the 
                terms of this subsection. The number of such 
                data items shall not be less than the number 
                included on the form for the 2008-2009 award 
                year unless a State notifies the Secretary that 
                the State no longer requires those data items 
                for the distribution of State need-based aid.
                  (B) Annual review.--The Secretary shall 
                conduct an annual review to determine--
                          (i) which data items each State 
                        requires to award need-based State aid; 
                        and
                          (ii) if the State will permit an 
                        applicant to file a form described in 
                        paragraph (2)(B) or (3)(B).
                  (C) Federal register notice.--Beginning with 
                the forms developed under paragraphs (2)(B) and 
                (3)(B) for the award year 2010-2011, the 
                Secretary shall publish on an annual basis a 
                notice in the Federal Register requiring State 
                agencies to inform the Secretary--
                          (i) if the State agency is unable to 
                        permit applicants to utilize the 
                        simplified forms described in 
                        paragraphs (2)(B) and (3)(B); and
                          (ii) of the State-specific 
                        nonfinancial data that the State agency 
                        requires for delivery of State need-
                        based financial aid.
                  (D) Use of simplified forms encouraged.--The 
                Secretary shall encourage States to take such 
                steps as are necessary to encourage the use of 
                simplified forms under this subsection, 
                including those forms described in paragraphs 
                (2)(B) and (3)(B), for applicants who meet the 
                requirements of subsection (b) or (c) of 
                section 479.
                  (E) Consequences if state does not accept 
                simplified forms.--If a State does not permit 
                an applicant to file a form described in 
                paragraph (2)(B) or (3)(B) for purposes of 
                determining eligibility for State need-based 
                financial aid, the Secretary may determine that 
                State-specific questions for such State will 
                not be included on a form described in 
                paragraph (2)(B) or (3)(B). If the Secretary 
                makes such determination, the Secretary shall 
                advise the State of the Secretary's 
                determination.
                  (F) Lack of state response to request for 
                information.--If a State does not respond to 
                the Secretary's request for information under 
                subparagraph (B), the Secretary shall--
                          (i) permit residents of that State to 
                        complete simplified forms under 
                        paragraphs (2)(B) and (3)(B); and
                          (ii) not require any resident of such 
                        State to complete any data items 
                        previously required by that State under 
                        this section.
                  (G) Restriction.--The Secretary shall, to the 
                extent practicable, not require applicants to 
                complete any financial or nonfinancial data 
                items that are not required--
                          (i) by the applicant's State; or
                          (ii) by the Secretary.
          (6) Charges to students and parents for use of forms 
        prohibited.--The need and eligibility of a student for 
        financial assistance under parts A through E (other 
        than under subpart 4 of part A) may be determined only 
        by using a form developed by the Secretary under this 
        subsection. Such forms shall be produced, distributed, 
        and processed by the Secretary, and no parent or 
        student shall be charged a fee by the Secretary, a 
        contractor, a third-party servicer or private software 
        provider, or any other public or private entity for the 
        collection, processing, or delivery of financial aid 
        through the use of such forms. No data collected on a 
        form for which a fee is charged shall be used to 
        complete the form prescribed under this section, except 
        that a Federal or State income tax form prepared by a 
        paid income tax preparer or preparer service for the 
        primary purpose of filing a Federal or State income tax 
        return may be used to complete the form prescribed 
        under this section.
          (7) Restrictions on use of pin.--No person, 
        commercial entity, or other entity may request, obtain, 
        or utilize an applicant's personal identification 
        number assigned under paragraph (3)(G) for purposes of 
        submitting a form developed under this subsection on an 
        applicant's behalf.
          (8) Application processing cycle.--The Secretary 
        shall enable students to submit forms developed under 
        this subsection and initiate the processing of such 
        forms under this subsection, as early as practicable 
        prior to January 1 of the student's planned year of 
        enrollment.
          (9) Early estimates.--The Secretary shall continue 
        to--
                  (A) permit applicants to enter data in such 
                forms as described in this subsection in the 
                years prior to enrollment in order to obtain a 
                non-binding estimate of the applicant's family 
                contribution (as defined in section 473);
                  (B) permit applicants to update information 
                submitted on forms described in this 
                subsection, without needing to re-enter 
                previously submitted information;
                  (C) develop a means to inform applicants, in 
                the years prior to enrollment, of student aid 
                options for individuals in similar financial 
                situations, including through the tool 
                described in section 485E(c);
                  (D) develop a means to provide a clear and 
                conspicuous notice that the applicant's 
                expected family contribution is subject to 
                change and may not reflect the final expected 
                family contribution used to determine Federal 
                student financial aid award amounts under this 
                title; and
                  (E) consult with representatives of States, 
                institutions of higher education, and other 
                individuals with experience or expertise in 
                student financial assistance application 
                processes in making updates to forms used to 
                provide early estimates under this paragraph.
          (10) Distribution of data.--Institutions of higher 
        education, guaranty agencies, and States shall receive, 
        without charge, the data collected by the Secretary 
        using a form developed under this subsection for the 
        purposes of processing loan applications and 
        determining need and eligibility for institutional and 
        State financial aid awards. Entities designated by 
        institutions of higher education, guaranty agencies, or 
        States to receive such data shall be subject to all the 
        requirements of this section, unless such requirements 
        are waived by the Secretary.
          (11) Third party servicers and private software 
        providers.--To the extent practicable and in a timely 
        manner, the Secretary shall provide, to private 
        organizations and consortia that develop software used 
        by institutions of higher education for the 
        administration of funds under this title, all the 
        necessary specifications that the organizations and 
        consortia must meet for the software the organizations 
        and consortia develop, produce, and distribute 
        (including any diskette, modem, or network 
        communications) to be so used. The specifications shall 
        contain record layouts for required data. The Secretary 
        shall develop in advance of each processing cycle an 
        annual schedule for providing such specifications. The 
        Secretary, to the extent practicable, shall use 
        multiple means of providing such specifications, 
        including conferences and other meetings, outreach, and 
        technical support mechanisms (such as training and 
        printed reference materials). The Secretary shall, from 
        time to time, solicit from such organizations and 
        consortia means of improving the support provided by 
        the Secretary.
          (12) Parent's social security number and birth 
        date.--The Secretary is authorized to include space on 
        the forms developed under this subsection for the 
        social security number and birth date of parents of 
        dependent students seeking financial assistance under 
        this title.
  (b) 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 authorizing committees at least 45 days prior 
to their effective date.
  (c) 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 or other appropriate provider of 
technical assistance and information on postsecondary 
educational services for individuals with disabilities, 
including the National Technical Assistance Center under 
section 777. The Secretary shall continue to implement, to the 
extent practicable, a toll-free telephone based system to 
permit applicants who meet the requirements of subsection (b) 
or (c) of section 479 to submit an application over such 
system.
  (d) Assistance in Preparation of Financial Aid Application.--
          (1) Preparation authorized.--Notwithstanding any 
        provision of this Act, an applicant may use a preparer 
        for consultative or preparation services for the 
        completion of a form developed under subsection (a) if 
        the preparer satisfies the requirements of this 
        subsection.
          (2) Preparer identification required.--If an 
        applicant uses a preparer for consultative or 
        preparation services for the completion of a form 
        developed under subsection (a), and for which a fee is 
        charged, the preparer shall--
                  (A) include, at the time the form is 
                submitted to the Department, the name, address 
                or employer's address, social security number 
                or employer identification number, and 
                organizational affiliation of the preparer on 
                the applicant's form; and
                  (B) be subject to the same penalties as an 
                applicant for purposely giving false or 
                misleading information in the application.
          (3) Additional requirements.--A preparer that 
        provides consultative or preparation services pursuant 
        to this subsection shall--
                  (A) clearly inform each individual upon 
                initial contact, including contact through the 
                Internet or by telephone, that the FAFSA and EZ 
                FAFSA are free forms that may be completed 
                without professional assistance via paper or 
                electronic version of the forms that are 
                provided by the Secretary;
                  (B) include in any advertising clear and 
                conspicuous information that the FAFSA and EZ 
                FAFSA are free forms that may be completed 
                without professional assistance via paper or 
                electronic version of the forms that are 
                provided by the Secretary;
                  (C) if advertising or providing any 
                information on a website, or if providing 
                services through a website, include on the 
                website a link to the website that provides the 
                electronic version of the forms developed under 
                subsection (a); and
                  (D) not produce, use, or disseminate any 
                other form for the purpose of applying for 
                Federal student financial aid other than the 
                form developed by the Secretary under 
                subsection (a).
          (4) Special rule.--Nothing in this Act shall be 
        construed to limit preparers of the forms required 
        under this title that meet the requirements of this 
        subsection from collecting source information from a 
        student or parent, including Internal Revenue Service 
        tax forms, in providing consultative and preparation 
        services in completing the forms.
  (e) Early Application and Estimated Award Demonstration 
Program.--
          (1) Purpose and objectives.--The purpose of the 
        demonstration program under this subsection is to 
        measure the benefits, in terms of student aspirations 
        and plans to attend an institution of higher education, 
        and any adverse effects, in terms of program costs, 
        integrity, distribution, and delivery of aid under this 
        title, of implementing an early application system for 
        all dependent students that allows dependent students 
        to apply for financial aid using information from two 
        years prior to the year of enrollment. Additional 
        objectives associated with implementation of the 
        demonstration program are the following:
                  (A) To measure the feasibility of enabling 
                dependent students to apply for Federal, State, 
                and institutional financial aid in their junior 
                year of secondary school, using information 
                from two years prior to the year of enrollment, 
                by completing any of the forms under this 
                subsection.
                  (B) To identify whether receiving final 
                financial aid award estimates not later than 
                the fall of the senior year of secondary school 
                provides students with additional time to 
                compete for the limited resources available for 
                State and institutional financial aid and 
                positively impacts the college aspirations and 
                plans of these students.
                  (C) To measure the impact of using income 
                information from the years prior to enrollment 
                on--
                          (i) eligibility for financial aid 
                        under this title and for other State 
                        and institutional aid; and
                          (ii) the cost of financial aid 
                        programs under this title.
                  (D) To effectively evaluate the benefits and 
                adverse effects of the demonstration program on 
                program costs, integrity, distribution, and 
                delivery of financial aid.
          (2) Program authorized.--Not later than two years 
        after the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall implement an early 
        application demonstration program enabling dependent 
        students who wish to participate in the program--
                  (A) to complete an application under this 
                subsection during the academic year that is two 
                years prior to the year such students plan to 
                enroll in an institution of higher education; 
                and
                  (B) based on the application described in 
                subparagraph (A), to obtain, not later than one 
                year prior to the year of the students' planned 
                enrollment, information on eligibility for 
                Federal Pell Grants, Federal student loans 
                under this title, and State and institutional 
                financial aid for the student's first year of 
                enrollment in the institution of higher 
                education.
          (3) Early application and estimated award.--For all 
        dependent students selected for participation in the 
        demonstration program who submit a completed FAFSA, or, 
        as appropriate, an EZ FAFSA, two years prior to the 
        year such students plan to enroll in an institution of 
        higher education, the Secretary shall, not later than 
        one year prior to the year of such planned enrollment--
                  (A) provide each student who completes an 
                early application with an estimated 
                determination of such student's--
                          (i) expected family contribution for 
                        the first year of the student's 
                        enrollment in an institution of higher 
                        education; and
                          (ii) Federal Pell Grant award for the 
                        first such year, based on the Federal 
                        Pell Grant amount, determined under 
                        section 401(b)(2)(A), for which a 
                        student is eligible at the time of 
                        application; and
                  (B) remind the students of the need to update 
                the students' information during the calendar 
                year of enrollment using the expedited 
                reapplication process provided for in 
                subsection (a)(4)(A).
          (4) Participants.--The Secretary shall include as 
        participants in the demonstration program--
                  (A) States selected through the application 
                process described in paragraph (5);
                  (B) institutions of higher education within 
                the selected States that are interested in 
                participating in the demonstration program, and 
                that can make estimates or commitments of 
                institutional student financial aid, as 
                appropriate, to students the year before the 
                students' planned enrollment date; and
                  (C) secondary schools within the selected 
                States that are interested in participating in 
                the demonstration program, and that can commit 
                resources to--
                          (i) advertising the availability of 
                        the program;
                          (ii) identifying students who might 
                        be interested in participating in the 
                        program;
                          (iii) encouraging such students to 
                        apply; and
                          (iv) participating in the evaluation 
                        of the program.
          (5) Applications.--Each State that is interested in 
        participating in the demonstration program shall submit 
        an application to the Secretary at such time, in such 
        form, and containing such information as the Secretary 
        shall require. The application shall include--
                  (A) information on the amount of the State's 
                need-based student financial assistance 
                available, and the eligibility criteria for 
                receiving such assistance;
                  (B) a commitment to make, not later than the 
                year before the dependent students 
                participating in the demonstration program plan 
                to enroll in an institution of higher 
                education, an estimate of the award of State 
                financial aid to such dependent students;
                  (C) a plan for recruiting institutions of 
                higher education and secondary schools with 
                different demographic characteristics to 
                participate in the program;
                  (D) a plan for selecting institutions of 
                higher education and secondary schools to 
                participate in the program that--
                          (i) demonstrate a commitment to 
                        encouraging students to submit a FAFSA, 
                        or, as appropriate, an EZ FAFSA, two 
                        years before the students' planned date 
                        of enrollment in an institution of 
                        higher education;
                          (ii) serve different populations of 
                        students;
                          (iii) in the case of institutions of 
                        higher education--
                                  (I) to the extent possible, 
                                are of varying types and 
                                sectors; and
                                  (II) commit to making, not 
                                later than the year prior to 
                                the year that dependent 
                                students participating in the 
                                demonstration program plan to 
                                enroll in the institution--
                                          (aa) estimated 
                                        institutional awards to 
                                        participating dependent 
                                        students; and
                                          (bb) estimated grants 
                                        or other financial aid 
                                        available under this 
                                        title (including 
                                        supplemental grants 
                                        under subpart 3 of part 
                                        A), for all 
                                        participating dependent 
                                        students, along with 
                                        information on State 
                                        awards, as provided to 
                                        the institution by the 
                                        State;
                  (E) a commitment to participate in the 
                evaluation conducted by the Secretary; and
                  (F) such other information as the Secretary 
                may require.
          (6) Special provisions.--
                  (A) Discretion of student financial aid 
                administrators.--A financial aid administrator 
                at an institution of higher education 
                participating in a demonstration program under 
                this subsection may use the discretion provided 
                under section 479A as necessary for students 
                participating in the demonstration program.
                  (B) Waivers.--The Secretary is authorized to 
                waive, for an institution of higher education 
                participating in the demonstration program, any 
                requirements under this title, or regulations 
                prescribed under this title, that will make the 
                demonstration program unworkable, except that 
                the Secretary shall not waive any provisions 
                with respect to the maximum award amounts for 
                grants and loans under this title.
          (7) Outreach.--The Secretary shall make appropriate 
        efforts to notify States of the demonstration program 
        under this subsection. Upon determination of 
        participating States, the Secretary shall continue to 
        make efforts to notify institutions of higher education 
        and dependent students within participating States of 
        the opportunity to participate in the demonstration 
        program and of the participation requirements.
          (8) Evaluation.--The Secretary shall conduct a 
        rigorous evaluation of the demonstration program to 
        measure the program's benefits and adverse effects, as 
        the benefits and effects relate to the purpose and 
        objectives of the program described in paragraph (1). 
        In conducting the evaluation, the Secretary shall--
                  (A) determine whether receiving financial aid 
                estimates one year prior to the year in which 
                the student plans to enroll in an institution 
                of higher education, has a positive impact on 
                the higher education aspirations and plans of 
                such student;
                  (B) measure the extent to which using a 
                student's income information from the year that 
                is two years prior to the student's planned 
                enrollment date had an impact on the ability of 
                States and institutions of higher education to 
                make financial aid awards and commitments;
                  (C) determine what operational changes are 
                required to implement the program on a larger 
                scale;
                  (D) identify any changes to Federal law that 
                are necessary to implement the program on a 
                permanent basis;
                  (E) identify the benefits and adverse effects 
                of providing early estimates on program costs, 
                program operations, program integrity, award 
                amounts, distribution, and delivery of aid; and
                  (F) examine the extent to which estimated 
                awards differ from actual awards made to 
                students participating in the program.
          (9) Consultation.--The Secretary shall consult, as 
        appropriate, with the Advisory Committee on Student 
        Financial Assistance established under section 491 on 
        the design, implementation, and evaluation of the 
        demonstration program.
  [(f) Reduction of Income and Asset Information to Determine 
Eligibility for Student Financial Aid.--
          [(1) Continuation of current fafsa simplification 
        efforts.--The Secretary shall continue to examine--
                  [(A) how the Internal Revenue Service can 
                provide to the Secretary income and other data 
                needed to compute an expected family 
                contribution for taxpayers and dependents of 
                taxpayers, and when in the application cycle 
                the data can be made available;
                  [(B) whether data provided by the Internal 
                Revenue Service can be used to--
                          [(i) prepopulate the electronic 
                        version of the FAFSA with student and 
                        parent taxpayer data; or
                          [(ii) generate an expected family 
                        contribution without additional action 
                        on the part of the student and 
                        taxpayer; and
                  [(C) whether the data elements collected on 
                the FAFSA that are needed to determine 
                eligibility for student aid, or to administer 
                the Federal student financial aid programs 
                under this title, but are not needed to compute 
                an expected family contribution, such as 
                information regarding the student's citizenship 
                or permanent residency status, registration for 
                selective service, or driver's license number, 
                can be reduced without adverse effects.
          [(2) Report on fafsa simplification efforts to 
        date.--Not later than 90 days after the date of 
        enactment of the Higher Education Opportunity Act, the 
        Secretary shall provide a written report to the 
        authorizing committees on the work the Department has 
        done with the Secretary of the Treasury regarding--
                  [(A) how the expected family contribution of 
                a student can be calculated using substantially 
                less income and asset information than was used 
                on March 31, 2008;
                  [(B) the extent to which the reduced income 
                and asset information will result in a 
                redistribution of Federal grants and subsidized 
                loans under this title, State aid, or 
                institutional aid, or in a change in the 
                composition of the group of recipients of such 
                aid, and the amount of such redistribution;
                  [(C) how the alternative approaches for 
                calculating the expected family contribution 
                will--
                          [(i) rely mainly, in the case of 
                        students and parents who file income 
                        tax returns, on information available 
                        on the 1040, 1040EZ, and 1040A; and
                          [(ii) include formulas for adjusting 
                        income or asset information to produce 
                        similar results to the existing 
                        approach with less data;
                  [(D) how the Internal Revenue Service can 
                provide to the Secretary of Education income 
                and other data needed to compute an expected 
                family contribution for taxpayers and 
                dependents of taxpayers, and when in the 
                application cycle the data can be made 
                available;
                  [(E) whether data provided by the Internal 
                Revenue Service can be used to--
                          [(i) prepopulate the electronic 
                        version of the FAFSA with student and 
                        parent taxpayer data; or
                          [(ii) generate an expected family 
                        contribution without additional action 
                        on the part of the student and 
                        taxpayer;
                  [(F) the extent to which the use of income 
                data from two years prior to a student's 
                planned enrollment date will change the 
                expected family contribution computed in 
                accordance with part F, and potential 
                adjustments to the need analysis formula that 
                will minimize the change; and
                  [(G) the extent to which the data elements 
                collected on the FAFSA on March 31, 2008, that 
                are needed to determine eligibility for student 
                aid or to administer the Federal student 
                financial aid programs, but are not needed to 
                compute an expected family contribution, such 
                as information regarding the student's 
                citizenship or permanent residency status, 
                registration for selective service, or driver's 
                license number, can be reduced without adverse 
                effects.
          [(3) Study.--
                  [(A) Formation of study group.--Not later 
                than 90 days after the date of enactment of the 
                Higher Education Opportunity Act, the 
                Comptroller General shall convene a study group 
                the membership of which shall include the 
                Secretary of Education, the Secretary of the 
                Treasury, the Director of the Office of 
                Management and Budget, the Director of the 
                Congressional Budget Office, representatives of 
                institutions of higher education with expertise 
                in Federal and State financial aid assistance, 
                State chief executive officers of higher 
                education with a demonstrated commitment to 
                simplifying the FAFSA, and such other 
                individuals as the Comptroller General and the 
                Secretary of Education may designate.
                  [(B) Study required.--The Comptroller 
                General, in consultation with the study group 
                convened under subparagraph (A) shall--
                          [(i) review and build on the work of 
                        the Secretary of Education and the 
                        Secretary of the Treasury, and 
                        individuals with expertise in analysis 
                        of financial need, to assess 
                        alternative approaches for calculating 
                        the expected family contribution under 
                        the statutory need analysis formula in 
                        effect on the day before the date of 
                        enactment of the Higher Education 
                        Opportunity Act and under a new 
                        calculation that will use substantially 
                        less income and asset information than 
                        was used for the 2008-2009 FAFSA;
                          [(ii) conduct an additional analysis 
                        if necessary; and
                          [(iii) make recommendations to the 
                        authorizing committees.
                  [(C) Objectives of study.--The objectives of 
                the study required under subparagraph (B) are--
                          [(i) to determine methods to shorten 
                        the FAFSA and make the FAFSA easier and 
                        less time-consuming to complete, 
                        thereby increasing higher education 
                        access for low-income students;
                          [(ii) to identify changes to the 
                        statutory need analysis formula that 
                        will be necessary to reduce the amount 
                        of financial information students and 
                        families need to provide to receive a 
                        determination of eligibility for 
                        student financial aid without causing 
                        significant redistribution of Federal 
                        grants and subsidized loans under this 
                        title; and
                          [(iii) to review State and 
                        institutional needs and uses for data 
                        collected on the FAFSA, and to 
                        determine the best means of addressing 
                        such needs in the case of modification 
                        of the FAFSA as described in clause 
                        (i), or modification of the need 
                        analysis formula as described in clause 
                        (ii).
                  [(D) Required subjects of study.--The study 
                required under subparagraph (B) shall examine--
                          [(i) with respect to simplification 
                        of the financial aid application 
                        process using the statutory 
                        requirements for need analysis--
                                  [(I) additional steps that 
                                can be taken to simplify the 
                                financial aid application 
                                process for students who (or, 
                                in the case of dependent 
                                students, whose parents) are 
                                not required to file a Federal 
                                income tax return for the prior 
                                taxable year;
                                  [(II) information on State 
                                use of information provided on 
                                the FAFSA, including--
                                          [(aa) whether a State 
                                        uses, as of the time of 
                                        the study, or can use, 
                                        a student's expected 
                                        family contribution 
                                        based on data from two 
                                        years prior to the 
                                        student's planned 
                                        enrollment date;
                                          [(bb) the extent to 
                                        which States and 
                                        institutions will 
                                        accept the data 
                                        provided by the 
                                        Internal Revenue 
                                        Service to prepopulate 
                                        the electronic version 
                                        of the FAFSA to 
                                        determine the 
                                        distribution of State 
                                        and institutional 
                                        student financial aid 
                                        funds;
                                          [(cc) what data are 
                                        used by States, as of 
                                        the time of the study, 
                                        to determine 
                                        eligibility for State 
                                        student financial aid, 
                                        and whether the data 
                                        are used for merit- or 
                                        need-based aid;
                                          [(dd) whether State 
                                        data are required by 
                                        State law, State 
                                        regulations, or policy 
                                        directives; and
                                          [(ee) the extent to 
                                        which any State-
                                        specific information 
                                        requirements can be met 
                                        by completion of a 
                                        State application 
                                        linked to the 
                                        electronic version of 
                                        the FAFSA; and
                                  [(III) information on 
                                institutional needs, including 
                                the extent to which 
                                institutions of higher 
                                education are already using 
                                supplemental forms to collect 
                                additional data from students 
                                and their families to determine 
                                eligibility for institutional 
                                funds; and
                          [(ii) ways to reduce the amount of 
                        financial information students and 
                        families need to provide to receive a 
                        determination of eligibility for 
                        student financial aid, taking into 
                        account--
                                  [(I) the amount of 
                                redistribution of Federal 
                                grants and subsidized loans 
                                under this title caused by such 
                                a reduction, and the benefits 
                                to be gained by having an 
                                application process that will 
                                be easier for students and 
                                their families;
                                  [(II) students and families 
                                who do not file income tax 
                                returns;
                                  [(III) the extent to which 
                                the full array of income and 
                                asset information collected on 
                                the FAFSA, as of the time of 
                                the study, plays an important 
                                role in the awarding of need-
                                based State financial aid, and 
                                whether the State can use an 
                                expected family contribution 
                                generated by the FAFSA, instead 
                                of income and asset information 
                                or a calculation with reduced 
                                data elements, to support 
                                determinations of eligibility 
                                for such State aid programs 
                                and, if not, what additional 
                                information will be needed or 
                                what changes to the FAFSA will 
                                be required; and
                                  [(IV) information on 
                                institutional needs, including 
                                the extent to which 
                                institutions of higher 
                                education are already using 
                                supplemental forms to collect 
                                additional data from students 
                                and their families to determine 
                                eligibility for institutional 
                                funds; and
                                  [(V) changes to this Act or 
                                other laws that will be 
                                required to implement a 
                                modified need analysis system.
          [(4) Consultation.--The Secretary shall consult with 
        the Advisory Committee on Student Financial Assistance 
        established under section 491 as appropriate in 
        carrying out this subsection.
          [(5) Reports.--
                  [(A) Reports on study.--The Secretary shall 
                prepare and submit to the authorizing 
                committees--
                          [(i) not later than one year after 
                        the date of enactment of the Higher 
                        Education Opportunity Act, an interim 
                        report on the progress of the study 
                        required under paragraph (3) that 
                        includes any preliminary 
                        recommendations by the study group 
                        established under such paragraph; and
                          [(ii) not later than two years after 
                        the date of enactment of the Higher 
                        Education Opportunity Act, a final 
                        report on the results of the study 
                        required under paragraph (3) that 
                        includes recommendations by the study 
                        group established under such paragraph.
                  [(B) Reports on fafsa simplification 
                efforts.--The Secretary shall report to the 
                authorizing committees, from time to time, on 
                the progress of the simplification efforts 
                under this subsection.]
  (f) Use of Internal Revenue Service Data Retrieval Tool to 
Populate FAFSA.--
          (1) Simplification efforts.--The Secretary shall--
                  (A) make every effort to allow applicants to 
                utilize the current data retrieval tool to 
                transfer, through a rigorous authentication 
                process, data available from the Internal 
                Revenue Service to reduce the amount of 
                original data entry by applicants and 
                strengthen the reliability of data used to 
                calculate expected family contributions, 
                including through the use of technology to--
                          (i) allow an applicant to 
                        automatically populate the electronic 
                        version of the forms under this 
                        paragraph with data available from the 
                        Internal Revenue Service; and
                          (ii) direct an applicant to 
                        appropriate questions on such forms 
                        based on the applicant's answers to 
                        previous questions; and
                  (B) allow single taxpayers, married taxpayers 
                filing jointly, and married taxpayers filing 
                separately to utilize the current data 
                retrieval tool to its full capacity.
          (2) Use of tax return in application process.--The 
        Secretary shall continue to examine whether data 
        provided by the Internal Revenue Service can be used to 
        generate an expected family contribution without 
        additional action on the part of the student and 
        taxpayer.
          (3) Reports on fafsa simplification efforts.--Not 
        less than once every year, the Secretary shall report 
        to the authorizing committees on--
                  (A) the progress of the simplification 
                efforts under this subsection; and
                  (B) the security of the data retrieval tool.
  (g) Addressing the Digital Divide.--The Secretary shall 
utilize savings accrued by moving more applicants to the 
electronic version of the forms described in subsection (a)(3) 
to improve access to the electronic version of the forms 
described in such subsection for applicants meeting the 
requirements of subsection (b) or (c) of section 479.
  (h) Adjustments.--The Secretary shall disclose, on the form 
notifying a student of the student's expected family 
contribution, that the student may, on a case-by-case basis, 
qualify for an adjustment under section 479A to the cost of 
attendance or the values of the data items required to 
calculate the expected contribution for the student or parent. 
Such disclosure shall specify--
          (1) the special circumstances under which a student 
        or family member may qualify for such adjustment; and
          (2) additional information regarding the steps a 
        student or family member may take in order to seek an 
        adjustment under section 479A.

SEC. 484. STUDENT ELIGIBILITY.

  (a) In General.--In order to receive any grant, loan, or work 
assistance under this title, a student must--
          (1) be enrolled or accepted for enrollment in [a 
        degree, certificate, or other program (including a 
        program of study abroad approved for credit by the 
        eligible institution at which such student is enrolled) 
        leading to a] an eligible program (including a program 
        of study abroad approved for credit by the eligible 
        institution at which such student is enrolled) leading 
        to a degree, certificate, or other recognized 
        educational credential at an institution of higher 
        education that is an eligible institution in accordance 
        with the provisions of section 487, except as provided 
        in subsections (b)(3) and (b)(4), and not be enrolled 
        in an elementary or secondary school;
          (2) if the student is presently enrolled at an 
        institution, be maintaining satisfactory progress in 
        the course of study the student is pursuing in 
        accordance with the provisions of subsection (c);
          (3) not owe a refund on grants previously received at 
        any institution under this title, or be in default on 
        any loan from a student loan fund at any institution 
        provided for in part E, as in effect on the day before 
        the date of enactment of the PROSPER Act and pursuant 
        to section 461(a) of such Act, or a loan made, insured, 
        or guaranteed by the Secretary under this title for 
        attendance at any institution;
          (4) file with the Secretary, as part of the original 
        financial aid application process, a certification, 
        which need not be notarized, but which shall include--
                  (A) a statement of educational purpose 
                stating that the money attributable to such 
                grant, loan, or loan guarantee will be used 
                solely for expenses related to attendance or 
                continued attendance at such institution; and
                  (B) such student's social security number;
          (5) be a citizen or national of the United States, a 
        permanent resident of the United States, or 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; 
        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) In order to be 
eligible to receive any loan under this title (other than a 
loan under section 428B or 428C, or under section 428H pursuant 
to an exercise of discretion under section 479A) for any period 
of enrollment, a student who is not a graduate or professional 
student (as defined in regulations of the Secretary), and who 
is enrolled in a program at an institution which has a 
participation agreement with the Secretary to make awards under 
subpart 1 of part A of this title, shall--
          (A)(i) have received a determination of eligibility 
        or ineligibility for a Pell Grant under such subpart 1 
        for such period of enrollment; and (ii) if determined 
        to be eligible, have filed an application for a Pell 
        Grant for such enrollment period; or
          (B) have (A) filed an application with the Pell Grant 
        processor for such institution for such enrollment 
        period, and (B) received from the financial aid 
        administrator of the institution a preliminary 
        determination of the student's eligibility or 
        ineligibility for a grant under such subpart 1.
  (2) In order to be eligible to receive any loan under section 
428A 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;
          (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.
  (3) A student who--
          (A) is carrying at least one-half the normal full-
        time work load for the course of study that the student 
        is pursuing, as determined by an eligible institution, 
        and
          (B) is enrolled in a course of study necessary for 
        enrollment in a program leading to a degree or 
        certificate,
shall be, notwithstanding paragraph (1) of subsection (a), 
eligible to apply for loans under [part B or D] part B, D, or E 
of this title. The eligibility described in this paragraph 
shall be restricted to one 12-month period.
  (4) A student who--
          (A) is carrying at least one-half the normal full-
        time work load for the course of study the student is 
        pursuing, as determined by the institution, and
          (B) is enrolled or accepted for enrollment in a 
        program at an eligible institution necessary for a 
        professional credential or certification from a State 
        that is required for employment as a teacher in an 
        elementary or secondary school in that State,
shall be, notwithstanding paragraph (1) of subsection (a), 
eligible to apply for loans under part B, D, or E or work-study 
assistance under part C of this title.
  (5) Notwithstanding any other provision of this subsection, 
no incarcerated student is eligible to receive a loan under 
this title.
  (6) For purposes of competency-based education, in order to 
be eligible to receive any loan under this title for an award 
year, a student may be enrolled in coursework attributable only 
to 2 academic years within the award year.
  (c) Satisfactory Progress.--(1) For the purpose of subsection 
(a)(2), a student is maintaining satisfactory progress if--
          (A) the institution at which the student is in 
        attendance, reviews the progress of the student at 
        least as frequently as the end of each academic year, 
        or its equivalent, as determined by the institution[, 
        and];
          (B) [the student has a cumulative] the student has--
                  (i) a cumulative  C average, or its 
                equivalent or academic standing consistent with 
                the requirements for graduation, as determined 
                by the institution, at the end of [the second] 
                each such academic year[.]; or
                  (ii) for the purposes of competency-based 
                programs, a non-grade equivalent demonstration 
                of academic standing consistent with the 
                requirements for graduation, as determined by 
                the institution, at the end of each such 
                academic year; and
          (C) the student maintains a pace in his or her 
        educational program that--
                  (i) ensures that the student completes the 
                program within the maximum timeframe; and
                  (ii) is measured by a method determined by 
                the institution which may be based on credit 
                hours, clock hours, or competencies completed.
  (2) Whenever a student fails to meet the eligibility 
requirements of subsection (a)(2) as a result of the 
application of this subsection and subsequent to that failure 
the student has academic standing consistent with the 
requirements for graduation, as determined by the institution, 
for any [grading period] evaluation period, the student may, 
subject to this subsection, again be eligible under subsection 
(a)(2) for a grant, loan, or work assistance under this title.
  (3) Any institution of higher education at which the student 
is in attendance may waive the provisions of paragraph (1) or 
paragraph (2) of this subsection for undue hardship based on--
          (A) the death of a relative of the student,
          (B) the personal injury or illness of the student, or
          (C) special circumstances as determined by the 
        institution.
  (4) For purposes of this subsection, the term ``maximum 
timeframe'' means--
          (A) with respect to an undergraduate program measured 
        in credit hours, a period that is no longer than 150 
        percent of the published length of the educational 
        program, as measured in credit hours;
          (B) with respect to an undergraduate program measured 
        in competencies, a period that is no longer than 150 
        percent of the published length of the educational 
        program, as measured in competencies;
          (C) with respect to an undergraduate program measured 
        in clock hours, a period that is no longer than 150 
        percent of the published length of the educational 
        program, as measured by the cumulative number of clock 
        hours the student is required to complete and expressed 
        in calendar time; and
          (D) with respect to a graduate program, a period 
        defined by the institution that is based on the length 
        of the educational program.
  [(d) Students Who Are Not High School Graduates.--
          [(1) Student eligibility.--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 the requirements of one of the following 
        subparagraphs:
                  [(A) The student is enrolled in an eligible 
                career pathway program and meets one of the 
                following standards:
                          [(i) The student shall take an 
                        independently administered examination 
                        and shall achieve a score, specified by 
                        the Secretary, demonstrating that such 
                        student can benefit from the education 
                        or training being offered. Such 
                        examination shall be approved by the 
                        Secretary on the basis of compliance 
                        with such standards for development, 
                        administration, and scoring as the 
                        Secretary may prescribe in regulations.
                          [(ii) The student shall be determined 
                        as having the ability to benefit from 
                        the education or training in accordance 
                        with such process as the State shall 
                        prescribe. Any such process described 
                        or approved by a State for the purposes 
                        of this section shall be effective 6 
                        months after the date of submission to 
                        the Secretary unless the Secretary 
                        disapproves such process. In 
                        determining whether to approve or 
                        disapprove such process, the Secretary 
                        shall take into account the 
                        effectiveness of such process in 
                        enabling students without secondary 
                        school diplomas or the equivalent 
                        thereof to benefit from the instruction 
                        offered by institutions utilizing such 
                        process, and shall also take into 
                        account the cultural diversity, 
                        economic circumstances, and educational 
                        preparation of the populations served 
                        by the institutions.
                          [(iii) The student shall be 
                        determined by the institution of higher 
                        education as having the ability to 
                        benefit from the education or training 
                        offered by the institution of higher 
                        education upon satisfactory completion 
                        of 6 credit hours or the equivalent 
                        coursework that are applicable toward a 
                        degree or certificate offered by the 
                        institution of higher education.
                  [(B) The student has completed a secondary 
                school education in a home school setting that 
                is treated as a home school or private school 
                under State law.
          [(2) Eligible career pathway program.--In this 
        subsection, the term ``eligible career pathway 
        program'' means a program that combines rigorous and 
        high-quality education, training, and other services 
        that--
                  [(A) aligns with the skill needs of 
                industries in the economy of the State or 
                regional economy involved;
                  [(B) prepares an individual to be successful 
                in any of a full range of secondary or 
                postsecondary education options, including 
                apprenticeships registered under the Act of 
                August 16, 1937 (commonly known as the 
                ``National Apprenticeship Act''; 50 Stat. 664, 
                chapter 663; 29 U.S.C. 50 et seq.) (referred to 
                individually in this Act as an 
                ``apprenticeship'', except in section 171);
                  [(C) includes counseling to support an 
                individual in achieving the individual's 
                education and career goals;
                  [(D) includes, as appropriate, education 
                offered concurrently with and in the same 
                context as workforce preparation activities and 
                training for a specific occupation or 
                occupational cluster;
                  [(E) organizes education, training, and other 
                services to meet the particular needs of an 
                individual in a manner that accelerates the 
                educational and career advancement of the 
                individual to the extent practicable;
                  [(F) enables an individual to attain a 
                secondary school diploma or its recognized 
                equivalent, and at least 1 recognized 
                postsecondary credential; and
                  [(G) helps an individual enter or advance 
                within a specific occupation or occupational 
                cluster.]
  (d) Additional Student Eligibility.--
          (1) Ability to benefit students.--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 subpart 1 of part A 
        and parts C, D, and E of this title, the student shall 
        be determined by the institution of higher education as 
        having the ability to benefit from the education 
        offered by the institution of higher education upon 
        satisfactory completion of 6 credit hours or the 
        equivalent coursework that are applicable toward a 
        degree or certificate offered by the institution of 
        higher education.
          (2) Homeschool students.--A student who has completed 
        a secondary school education in a home school setting 
        that is treated as a home school or private school 
        under State law shall be eligible for assistance under 
        subpart 1 of part A and parts C, D, and E of this 
        title.
          (3) Secondary education provided by nonprofit 
        corporations.--A student who has completed a secondary 
        education provided by a school operating as a nonprofit 
        corporation that offers a program of study determined 
        acceptable for admission at an institution of higher 
        education shall be eligible for assistance under 
        subpart 1 of part A and parts C, D, and E of this 
        title.
  (e) Certification for GSL Eligibility.--Each eligible 
institution may certify student eligibility for a loan by an 
eligible lender under part B of this title prior to completing 
the review for accuracy of the information submitted by the 
applicant required by regulations issued under this title, if--
          (1) checks for the loans are mailed to the eligible 
        institution prior to disbursements;
          (2) the disbursement is not made until the review is 
        complete; and
          (3) the eligible institution has no evidence or 
        documentation on which the institution may base a 
        determination that the information submitted by the 
        applicant is incorrect.
  (f) Loss of Eligibility for Violation of Loan Limits.--(1) No 
student shall be eligible to receive any grant, loan, or work 
assistance under this title if the eligible institution 
determines that the student fraudulently borrowed in violation 
of the annual loan limits under part B, part D, [or part E], 
part E (as in effect on the day before the date of enactment of 
the PROSPER Act and pursuant to section 461(a) of such Act), or 
part E (as in effect on or after the date of enactment of the 
PROSPER Act) of this title in the same academic year, or if the 
student fraudulently borrowed in excess of the aggregate 
maximum loan limits under such part B, part D, [or part E], 
part E (as in effect on the day before the date of enactment of 
the PROSPER Act and pursuant to section 461(a) of such Act), or 
part E (as in effect on or after the date of enactment of the 
PROSPER Act).
  (2) If the institution determines that the student 
inadvertently borrowed amounts in excess of such annual or 
aggregate maximum loan limits, such institution shall allow the 
student to repay any amount borrowed in excess of such limits 
prior to certifying the student's eligibility for further 
assistance under this title.
  (g) Verification of Immigration Status.--
          (1) In general.--The Secretary shall implement a 
        system under which the statements and supporting 
        documentation, if required, of an individual declaring 
        that such individual is in compliance with the 
        requirements of subsection (a)(5) shall be verified 
        prior to the individual's receipt of a grant, loan, or 
        work assistance under this title.
          (2) Special rule.--The documents collected and 
        maintained by an eligible institution in the admission 
        of a student to the institution may be used by the 
        student in lieu of the documents used to establish both 
        employment authorization and identity under section 
        274A(b)(1)(B) of the Immigration and Nationality Act (8 
        U.S.C. 1324a) to verify eligibility to participate in 
        work-study programs under part C of this title.
          (3) Verification mechanisms.--The Secretary is 
        authorized to verify such statements and supporting 
        documentation through a data match, using an automated 
        or other system, with other Federal agencies that may 
        be in possession of information relevant to such 
        statements and supporting documentation.
          (4) Review.--In the case of such an individual who is 
        not a citizen or national of the United States, if the 
        statement described in paragraph (1) is submitted but 
        the documentation required under paragraph (2) is not 
        presented or if the documentation required under 
        paragraph (2)(A) is presented but such documentation is 
        not verified under paragraph (3)--
                  (A) the institution--
                          (i) shall provide a reasonable 
                        opportunity to submit to the 
                        institution evidence indicating a 
                        satisfactory immigration status, and
                          (ii) may not delay, deny, reduce, or 
                        terminate the individual's eligibility 
                        for the grant, loan, or work assistance 
                        on the basis of the individual's 
                        immigration status until such a 
                        reasonable opportunity has been 
                        provided; and
                  (B) if there are submitted documents which 
                the institution determines constitute 
                reasonable evidence indicating such status--
                          (i) the institution shall transmit to 
                        the Immigration and Naturalization 
                        Service either photostatic or other 
                        similar copies of such documents, or 
                        information from such documents, as 
                        specified by the Immigration and 
                        Naturalization Service, for official 
                        verification,
                          (ii) pending such verification, the 
                        institution may not delay, deny, 
                        reduce, or terminate the individual's 
                        eligibility for the grant, loan, or 
                        work assistance on the basis of the 
                        individual's immigration status, and
                          (iii) the institution shall not be 
                        liable for the consequences of any 
                        action, delay, or failure of the 
                        Service to conduct such verification.
  (h) Limitations of Enforcement Actions Against 
Institutions.--The Secretary shall not take any compliance, 
disallowance, penalty, or other regulatory action against an 
institution of higher education with respect to any error in 
the institution's determination to make a student eligible for 
a grant, loan, or work assistance based on citizenship or 
immigration status--
          (1) if the institution has provided such eligibility 
        based on a verification of satisfactory immigration 
        status by the Immigration and Naturalization Service,
          (2) because the institution, under subsection 
        (g)(4)(A)(i), was required to provide a reasonable 
        opportunity to submit documentation, or
          (3) because the institution, under subsection 
        (g)(4)(B)(i), was required to wait for the response of 
        the Immigration and Naturalization Service to the 
        institution's request for official verification of the 
        immigration status of the student.
  (i) Validity of Loan Guarantees for Loan Payments Made Before 
Immigration Status Verification Completed.--Notwithstanding 
subsection (h), if--
          (1) a guaranty is made under this title for a loan 
        made with respect to an individual,
          (2) at the time the guaranty is entered into, the 
        provisions of subsection (h) had been complied with,
          (3) amounts are paid under the loan subject to such 
        guaranty, and
          (4) there is a subsequent determination that, because 
        of an unsatisfactory immigration status, the individual 
        is not eligible for the loan,
the official of the institution making the determination shall 
notify and instruct the entity making the loan to cease further 
payments under the loan, but such guaranty shall not be voided 
or otherwise nullified with respect to such payments made 
before the date the entity receives the notice.
  (k) Special Rule for Correspondence Courses.--A student shall 
not be eligible to receive grant, loan, or work assistance 
under this title for a correspondence course unless such course 
is part of a program leading to an associate, bachelor or 
graduate degree.
  [(l) Courses Offered Through Distance Education.--
          [(1) Relation to correspondence courses.--
                  [(A) In general.--A student enrolled in a 
                course of instruction at an institution of 
                higher education that is offered principally 
                through distance education and leads to a 
                recognized certificate, or recognized 
                associate, recognized baccalaureate, or 
                recognized graduate degree, conferred by such 
                institution, shall not be considered to be 
                enrolled in correspondence courses.
                  [(B) Exception.--An institution of higher 
                education referred to in subparagraph (A) shall 
                not include an institution or school described 
                in section 3(3)(C) of the Carl D. Perkins 
                Career and Technical Education Act of 2006.
          [(2) Reductions of financial aid.--A student's 
        eligibility to receive grants, loans, or work 
        assistance under this title shall be reduced if a 
        financial aid officer determines under the 
        discretionary authority provided in section 479A that 
        distance education results in a substantially reduced 
        cost of attendance to such student.
          [(3) Special rule.--For award years beginning prior 
        to July 1, 2008, the Secretary shall not take any 
        compliance, disallowance, penalty, or other action 
        based on a violation of this subsection against a 
        student or an eligible institution when such action 
        arises out of such institution's prior award of student 
        assistance under this title if the institution 
        demonstrates to the satisfaction of the Secretary that 
        its course of instruction would have been in 
        conformance with the requirements of this subsection.]
  [(m)] (l) Students With a First Baccalaureate or Professional 
Degree.--A student shall not be ineligible for assistance under 
parts B, C, D, and E of this title because such student has 
previously received a baccalaureate or professional degree.
  [(n) Data Base Matching.--] [To enforce] (m)  Selective 
Service Registration._
          (1) Data base matching._To enforce  the Selective 
        Service registration provisions of section 12(f) of the 
        Military Selective Service Act (50 U.S.C. App. 462(f)), 
        the Secretary shall conduct data base matches with the 
        Selective Service, using common demographic data 
        elements. Appropriate confirmation, through an 
        application output document or through other means, of 
        any person's registration shall fulfill the requirement 
        to file a separate statement of compliance. In the 
        absence of a confirmation from such data matches, an 
        institution may also use data or documents that support 
        either the student's registration, or the absence of a 
        registration requirement for the student, to fulfill 
        the requirement to file a separate statement of 
        compliance. The mechanism for reporting the resolution 
        of nonconfirmed matches shall be prescribed by the 
        Secretary in regulations.
          (2) Effect of failure to register for selective 
        service.--A person who is 26 years of age or older 
        shall not be ineligible for assistance or a benefit 
        provided under this title by reason of failure to 
        present himself for, and submit to, registration under 
        section 3 of the Military Selective Service Act (50 
        U.S.C. 3802).
  [(o)] (n) Study Abroad.--Nothing in this Act shall be 
construed to limit or otherwise prohibit access to study abroad 
programs approved by the home institution at which a student is 
enrolled. An otherwise eligible student who is engaged in a 
program of study abroad approved for academic credit by the 
home institution at which the student is enrolled shall be 
eligible to receive grant, loan, or work assistance under this 
title, without regard to whether such study abroad program is 
required as part of the student's degree program.
  [(p)] (o) Verification of Social Security Number.--The 
Secretary of Education, in cooperation with the Commissioner of 
the Social Security Administration, shall verify any social 
security number provided by a student to an eligible 
institution under subsection (a)(4) and shall enforce the 
following conditions:
          (1) Except as provided in paragraphs (2) and (3), an 
        institution shall not deny, reduce, delay, or terminate 
        a student's eligibility for assistance under this part 
        because social security number verification is pending.
          (2) If there is a determination by the Secretary that 
        the social security number provided to an eligible 
        institution by a student is incorrect, the institution 
        shall deny or terminate the student's eligibility for 
        any grant, loan, or work assistance under this title 
        until such time as the student provides documented 
        evidence of a social security number that is determined 
        by the institution to be correct.
          (3) If there is a determination by the Secretary that 
        the social security number provided to an eligible 
        institution by a student is incorrect, and a correct 
        social security number cannot be provided by such 
        student, and a loan has been guaranteed for such 
        student under part B of this title, the institution 
        shall notify and instruct the lender and guaranty 
        agency making and guaranteeing the loan, respectively, 
        to cease further disbursements of the loan, but such 
        guaranty shall not be voided or otherwise nullified 
        with respect to such disbursements made before the date 
        that the lender and the guaranty agency receives such 
        notice.
          (4) Nothing in this subsection shall permit the 
        Secretary to take any compliance, disallowance, 
        penalty, or other regulatory action against--
                  (A) any institution of higher education with 
                respect to any error in a social security 
                number, unless such error was a result of fraud 
                on the part of the institution; or
                  (B) any student with respect to any error in 
                a social security number, unless such error was 
                a result of fraud on the part of the student.
  [(q)] (p) Use of Income Data.--
          (1) Matching with irs.--The Secretary, in cooperation 
        with the Secretary of the Treasury, is authorized to 
        obtain from the Internal Revenue Service such 
        information reported on Federal income tax returns by 
        applicants, or by any other person whose financial 
        information is required to be provided on the Federal 
        student financial aid application, as the Secretary 
        determines is necessary for the purpose of--
                  (A) prepopulating the Federal student 
                financial aid application described in section 
                483; or
                  (B) verifying the information reported on 
                such student financial aid applications.
          (2) Consent.--The Secretary may require that 
        applicants for financial assistance under this title 
        provide a consent to the disclosure of the data 
        described in paragraph (1) as a condition of the 
        student receiving assistance under this title. The 
        parents of an applicant, in the case of a dependent 
        student, or the spouse of an applicant, in the case of 
        an applicant who is married but files separately, may 
        also be required to provide consent as a condition of 
        the student receiving assistance under this title.
  [(r)] (q) Suspension of Eligibility for Drug-Related 
Offenses.--
          (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 of   con-
  trolled substance: Ineligibility period is: 
  First offense..... 1 year  ...........................................
  Second offense.... 2 years  ..........................................
  Third offense..... Indefinite. .......................................
  The sale of a cont olled
  substance:        Ineligibility period is: 
  First offense..... 2 years  ..........................................
  Second offense.... Indefinite.........................................

          (2) Rehabilitation.--A student whose eligibility has 
        been suspended under paragraph (1) may resume 
        eligibility before the end of the ineligibility period 
        determined under such paragraph if--
                  (A) the student satisfactorily completes a 
                drug rehabilitation program that--
                          (i) complies with such criteria as 
                        the Secretary shall prescribe in 
                        regulations for purposes of this 
                        paragraph; and
                          (ii) includes two unannounced drug 
                        tests;
                  (B) the student successfully passes two 
                unannounced drug tests conducted by a drug 
                rehabilitation program that complies with such 
                criteria as the Secretary shall prescribe in 
                regulations for purposes of subparagraph 
                (A)(i); or
                  (C) the conviction is reversed, set aside, or 
                otherwise rendered nugatory.
          (3) Definitions.--In this subsection, the term 
        ``controlled substance'' has the meaning given the term 
        in section 102(6) of the Controlled Substances Act (21 
        U.S.C. 802(6)).
  [(s)] (r) Students With Intellectual Disabilities.--
          (1) Definitions.--In this subsection the terms 
        ``comprehensive transition and postsecondary program 
        for students with intellectual disabilities'' and 
        ``student with an intellectual disability'' have the 
        meanings given the terms in section 760.
          (2) Requirements.--Notwithstanding subsections (a), 
        (c), and (d), in order to receive any grant or work 
        assistance under section 401, subpart 3 of part A, or 
        part C, a student with an intellectual disability 
        shall--
                  (A) be enrolled or accepted for enrollment in 
                a comprehensive transition and postsecondary 
                program for students with intellectual 
                disabilities at an institution of higher 
                education;
                  (B) be maintaining satisfactory progress in 
                the program as determined by the institution, 
                in accordance with standards established by the 
                institution; and
                  (C) meet the requirements of paragraphs (3), 
                (4), (5), and (6) of subsection (a).
          (3) Authority.--Notwithstanding any other provision 
        of law unless such provision is enacted with specific 
        reference to this section, the Secretary is authorized 
        to waive any statutory provision applicable to the 
        student financial assistance programs under section 
        401, subpart 3 of part A, or part C (other than a 
        provision of part F related to such a program), or any 
        institutional eligibility provisions of this title, as 
        the Secretary determines necessary to ensure that 
        programs enrolling students with intellectual 
        disabilities otherwise determined to be eligible under 
        this subsection may receive such financial assistance.
          (4) Regulations.--Notwithstanding regulations 
        applicable to grant or work assistance awards made 
        under section 401, subpart 3 of part A, and part C 
        (other than a regulation under part F related to such 
        an award), including with respect to eligible programs, 
        instructional time, credit status, and enrollment 
        status as described in section 481, the Secretary shall 
        promulgate regulations allowing programs enrolling 
        students with intellectual disabilities otherwise 
        determined to be eligible under this subsection to 
        receive such awards.
  [(t)] (s) Data Analysis on Access to Federal Student Aid For 
Certain Populations.--
          (1) Development of the system.--Within one year of 
        enactment of the Higher Education Opportunity Act, the 
        Secretary shall analyze data from the FAFSA containing 
        information regarding the number, characteristics, and 
        circumstances of students denied Federal student aid 
        based on a drug conviction while receiving Federal aid.
          (2) Results from analysis.--The results from the 
        analysis of such information shall be made available on 
        a continuous basis via the Department website and the 
        Digest of Education Statistics.
          (3) Data updating.--The data analyzed under this 
        subsection shall be updated at the beginning of each 
        award year and at least one additional time during such 
        award year.
          (4) Report to congress.--The Secretary shall prepare 
        and submit to the authorizing committees, in each 
        fiscal year, a report describing the results obtained 
        by the establishment and operation of the data system 
        authorized by this subsection.

SEC. 484A. STATUTE OF LIMITATIONS, AND STATE COURT JUDGMENTS.

  (a) In General.--(1) It is the purpose of this subsection to 
ensure that obligations to repay loans and grant overpayments 
are enforced without regard to any Federal or State statutory, 
regulatory, or administrative limitation on the period within 
which debts may be enforced.
  (2) Notwithstanding any other provision of statute, 
regulation, or administrative limitation, no limitation shall 
terminate the period within which suit may be filed, a judgment 
may be enforced, or an offset, garnishment, or other action 
initiated or taken by--
          (A) an institution that receives funds under this 
        title that is seeking to collect a refund due from a 
        student on a grant made, or work assistance awarded, 
        under this title;
          (B) a guaranty agency that has an agreement with the 
        Secretary under section 428(c) that is seeking the 
        repayment of the amount due from a borrower on a loan 
        made under part B of this title after such guaranty 
        agency reimburses the previous holder of the loan for 
        its loss on account of the default of the borrower;
          (C) an institution that has an agreement with the 
        Secretary pursuant to section 453 [or 463(a)], section 
        463(a) (as in effect on the day before the date of 
        enactment of the PROSPER Act and pursuant to section 
        461(a) of such Act), or section 463 (as in effect on or 
        after the date of enactment of the PROSPER Act) that is 
        seeking the repayment of the amount due from a borrower 
        on a loan made under part D [or E], E (as in effect on 
        the day before the date of enactment of the PROSPER Act 
        and pursuant to section 461(a) of such Act), or E (as 
        in effect on or after the date of enactment of the 
        PROSPER Act) of this title after the default of the 
        borrower on such loan; or
          (D) the Secretary, the Attorney General, or the 
        administrative head of another Federal agency, as the 
        case may be, for payment of a refund due from a student 
        on a grant made under this title, or for the repayment 
        of the amount due from a borrower on a loan made under 
        this title that has been assigned to the Secretary 
        under this title.
  (b) Assessment of Costs and Other Charges.--Notwithstanding 
any provision of State law to the contrary--
          (1) a borrower who has defaulted on a loan made under 
        this title shall be required to pay, in addition to 
        other charges specified in this title, reasonable 
        collection costs;
          (2) in collecting any obligation arising from a loan 
        made under part B 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; [and]
          (3) in collecting any obligation arising from a loan 
        made under part E (as in effect on the day before the 
        date of enactment of the PROSPER Act and pursuant to 
        section 461(a) of such Act), an institution of higher 
        education that has an agreement with the Secretary 
        pursuant to section 463(a) (as so in effect) shall not 
        be subject to a defense raised by any borrower based on 
        a claim of infancy[.]; and
          (4) in collecting any obligation arising from a loan 
        made under part E (as in effect on or after the date of 
        enactment of the PROSPER Act), an institution of higher 
        education that has an agreement with the Secretary 
        pursuant to section 463(a) (as so in effect) shall not 
        be subject to a defense raised by any borrower based on 
        a claim of infancy.
  (c) State Court Judgments.--A judgment of a State court for 
the recovery of money provided as grant, loan, or work 
assistance under this title that has been assigned or 
transferred to the Secretary under this title may be registered 
in any district court of the United States by filing a 
certified copy of the judgment and a copy of the assignment or 
transfer. A judgment so registered shall have the same force 
and effect, and may be enforced in the same manner, as a 
judgment of the district court of the district in which the 
judgment is registered.
  (d) Special Rule.--This section shall not apply in the case 
of a student who is deceased, or to a deceased student's estate 
or the estate of such student's family. If a student is 
deceased, then the student's estate or the estate of the 
student's family shall not be required to repay any financial 
assistance under this title, including interest paid on the 
student's behalf, collection costs, or other charges specified 
in this title.

SEC. 484B. INSTITUTIONAL REFUNDS.

  (a) Return of Title IV Funds.--
          (1) In general.--[If a recipient]
                  (A) Consequence of withdrawal._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 part C) to be returned to the title IV 
                programs is calculated according to paragraph 
                (3) and returned in accordance with subsection 
                (b).
                  (B) Special rule.--For purposes of 
                subparagraph (A), a student--
                          (i) who is enrolled in a program 
                        offered in modules is not considered 
                        withdrawn if the change in the 
                        student's attendance constitutes a 
                        change in enrollment status within the 
                        payment period rather than a 
                        discontinuance of attendance within the 
                        payment period; and
                          (ii) is considered withdrawn if the 
                        student follows the institution's 
                        official withdrawal procedures or 
                        leaves without notifying the 
                        institution and has not returned before 
                        the end of the payment period.
          (2) Leave of absence.--
                  (A) Leave not treated as withdrawal.--In the 
                case of a student who takes 1 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) the institution has a formal 
                        policy regarding leaves of absence;
                          (ii) the student followed the 
                        institution's policy in requesting a 
                        leave of absence; and
                          (iii) the institution approved the 
                        student's request in accordance with 
                        the institution's policy.
                  (B) Consequences of failure to return.--If a 
                student does not return to the institution at 
                the expiration of an approved leave of absence 
                that meets the requirements of subparagraph 
                (A), the institution shall calculate the amount 
                of grant and loan assistance provided under 
                this title that is to be returned in accordance 
                with this section based on the day the student 
                withdrew (as determined under subsection (c)).
          (3) Calculation of amount of title iv assistance 
        earned.--
                  (A) In general.--The amount of grant or loan 
                assistance under this title that is earned by 
                the recipient for purposes of this section is 
                calculated by--
                          (i) determining the percentage of 
                        grant and loan assistance under this 
                        title that has been earned by the 
                        student, as described in subparagraph 
                        (B); and
                          (ii) applying such percentage to the 
                        total amount of such grant and loan 
                        assistance that was disbursed (and that 
                        could have been disbursed) to the 
                        student, or on the student's behalf, 
                        for the payment period or period of 
                        enrollment for which the assistance was 
                        awarded, as of the day the student 
                        withdrew.
                  (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) equal to the percentage of the 
                        payment period or period of enrollment 
                        for which assistance was awarded that 
                        was completed (as determined in 
                        accordance with subsection (d)) as of 
                        the day the student withdrew, provided 
                        that such date occurs on or before the 
                        completion of 60 percent of the payment 
                        period or period of enrollment; or
                          [(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.]
                          (i) 0 percent, if the day the student 
                        withdrew occurs when the student has 
                        completed (as determined in accordance 
                        with subsection (d)) 0 to 24 percent of 
                        the payment period or period of 
                        enrollment;
                          (ii) 25 percent, if the day the 
                        student withdrew occurs when the 
                        student has completed (as determined in 
                        accordance with subsection (d)) 25 to 
                        49 percent of the payment period or 
                        period of enrollment;
                          (iii) 50 percent, if the day the 
                        student withdrew occurs when the 
                        student has completed (as determined in 
                        accordance with subsection (d)) 50 to 
                        74 percent of the payment period or 
                        period of enrollment; or
                          (iv) 75 percent, if the day the 
                        student withdrew occurs when the 
                        student has completed (as determined in 
                        accordance with subsection (d)) 75 to 
                        99 percent of the payment period or 
                        period of enrollment.
                  (C) Percentage and amount not earned.--For 
                purposes of subsection (b), the amount of grant 
                and loan assistance awarded under this title 
                that has not been earned by the student shall 
                be calculated by--
                          (i) determining the complement of the 
                        percentage of grant assistance under 
                        [subparts 1 and 3 of part A, or loan 
                        assistance under parts B, D,] subpart 1 
                        of part A or loan assistance under 
                        parts D and E, that has been earned by 
                        the student described in subparagraph 
                        (B); and
                          (ii) applying the percentage 
                        determined under clause (i) to the 
                        total amount of such grant and loan 
                        assistance that was disbursed (and that 
                        could have been disbursed) to the 
                        student, or on the student's behalf, 
                        for the payment period or period of 
                        enrollment, as of the day the student 
                        withdrew.
          (4) Differences between amounts earned and amounts 
        received.--
                  (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] 
                Secretary), the institution of higher education 
                shall have discretion to determine whether all 
                or a portion of the late or post-withdrawal 
                disbursement should be made, under a publicized 
                institutional policy. If the institution of 
                higher education determines that a disbursement 
                should be made, the institution 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.--If the student has received more 
                grant or loan assistance than the amount earned 
                as calculated under paragraph (3)(A), the 
                unearned funds shall be returned by the 
                [institution or the student, or both, as may be 
                required under paragraphs (1) and (2) of 
                subsection (b), to the programs under this 
                title in the order specified in] institution, 
                as may be required under paragraph (1) of 
                subsection (b), to the programs under this 
                title in accordance with subsection (b)(3).
  [(b) Return of Title IV Program Funds.--
          [(1) Responsibility of the institution.--The 
        institution shall return not later than 45 days from 
        the determination of withdrawal, in the order specified 
        in paragraph (3), the lesser of--
                  [(A) the amount of grant and loan assistance 
                awarded under this title that has not been 
                earned by the student, as calculated under 
                subsection (a)(3)(C); or
                  [(B) an amount equal to--
                          [(i) the total institutional charges 
                        incurred by the student for the payment 
                        period or period of enrollment for 
                        which such assistance was awarded; 
                        multiplied by
                          [(ii) the percentage of grant and 
                        loan assistance awarded under this 
                        title that has not been earned by the 
                        student, as described in subsection 
                        (a)(3)(C)(i).
          [(2) Responsibility of the student.--
                  [(A) In general.--The student shall return 
                assistance that has not been earned by the 
                student as described in subsection 
                (a)(3)(C)(ii) in the order specified in 
                paragraph (3) minus the amount the institution 
                is required to return under paragraph (1).
                  [(B) Special rule.--The student (or parent in 
                the case of funds due to a loan borrowed by a 
                parent under part B or D) shall return or 
                repay, as appropriate, the amount determined 
                under subparagraph (A) to--
                          [(i) a loan program under this title 
                        in accordance with the terms of the 
                        loan; and
                          [(ii) a grant program under this 
                        title, as an overpayment of such grant 
                        and shall be subject to--
                                  [(I) repayment arrangements 
                                satisfactory to the 
                                institution; or
                                  [(II) overpayment collection 
                                procedures prescribed by the 
                                Secretary.
                  [(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 federal 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 Federal 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.
                  [(E) Waivers of grant assistance repayment by 
                students affected by disasters.--In addition to 
                the waivers authorized by subparagraph (D), the 
                Secretary may waive the amounts that students 
                are required to return under this section with 
                respect to any other grant assistance under 
                this title 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.
          [(3) Order of return of title iv funds.--
                  [(A) In general.--Excess funds returned by 
                the institution or the student, as appropriate, 
                in accordance with paragraph (1) or (2), 
                respectively, shall be credited to outstanding 
                balances on loans made under this title to the 
                student or on behalf of the student for the 
                payment period or period of enrollment for 
                which a return of funds is required. Such 
                excess funds shall be credited in the following 
                order:
                          [(i) To outstanding balances on loans 
                        made under section 428H for the payment 
                        period or period of enrollment for 
                        which a return of funds is required.
                          [(ii) To outstanding balances on 
                        loans made under section 428 for the 
                        payment period or period of enrollment 
                        for which a return of funds is 
                        required.
                          [(iii) To outstanding balances on 
                        unsubsidized loans (other than parent 
                        loans) made under part D for the 
                        payment period or period of enrollment 
                        for which a return of funds is 
                        required.
                          [(iv) To outstanding balances on 
                        subsidized loans made under part D for 
                        the payment period or period of 
                        enrollment for which a return of funds 
                        is required.
                          [(v) To outstanding balances on loans 
                        made under part E for the payment 
                        period or period of enrollment for 
                        which a return of funds is required.
                          [(vi) To outstanding balances on 
                        loans made under section 428B for the 
                        payment period or period of enrollment 
                        for which a return of funds is 
                        required.
                          [(vii) To outstanding balances on 
                        parent loans made under part D for the 
                        payment period or period of enrollment 
                        for which a return of funds is 
                        required.
                  [(B) Remaining excesses.--If excess funds 
                remain after repaying all outstanding loan 
                amounts, the remaining excess shall be credited 
                in the following order:
                          [(i) To awards under subpart 1 of 
                        part A for the payment period or period 
                        of enrollment for which a return of 
                        funds is required.
                          [(ii) To awards under subpart 3 of 
                        part A for the payment period or period 
                        of enrollment for which a return of 
                        funds is required.
                          [(iii) To other assistance awarded 
                        under this title for which a return of 
                        funds is required.
  [(c) Withdrawal Date.--
          [(1) In general.--In this section, the term ``day the 
        student withdrew''--
                  [(A) is the date that the institution 
                determines--
                          [(i) the student began the withdrawal 
                        process prescribed by the institution;
                          [(ii) the student otherwise provided 
                        official notification to the 
                        institution of the intent to withdraw; 
                        or
                          [(iii) in the case of a student who 
                        does not begin the withdrawal process 
                        or otherwise notify the institution of 
                        the intent to withdraw, the date that 
                        is the mid-point of the payment period 
                        for which assistance under this title 
                        was disbursed or a later date 
                        documented by the institution; or
                  [(B) for institutions required to take 
                attendance, is determined by the institution 
                from such attendance records.
          [(2) Special rule.--Notwithstanding paragraph (1), if 
        the institution determines that a student did not begin 
        the withdrawal process, or otherwise notify the 
        institution of the intent to withdraw, due to illness, 
        accident, grievous personal loss, or other such 
        circumstances beyond the student's control, the 
        institution may determine the appropriate withdrawal 
        date.
  [(d) Percentage of the Payment Period or Period of Enrollment 
Completed.--For purposes of subsection (a)(3)(B), the 
percentage of the payment period or period of enrollment for 
which assistance was awarded that was completed, is 
determined--
          [(1) in the case of a program that is measured in 
        credit hours, by dividing the total number of calendar 
        days comprising the payment period or period of 
        enrollment for which assistance is awarded into the 
        number of calendar days completed in that period as of 
        the day the student withdrew; and
          [(2) in the case of a program that is measured in 
        clock hours, by dividing the total number of clock 
        hours comprising the payment period or period of 
        enrollment for which assistance is awarded into the 
        number of clock hours scheduled to be completed by the 
        student in that period as of the day the student 
        withdrew.
  [(e) Effective Date.--The provisions of this section shall 
take effect 2 years after the date of enactment of the Higher 
Education Amendments of 1998. An institution of higher 
education may choose to implement such provisions prior to that 
date.]
  (b) Return of Title IV Program Funds.--
          (1) Responsibility of the institution.--The 
        institution shall return not later than 60 days from 
        the determination of withdrawal, in accordance with 
        paragraph (3), the amount of grant and loan assistance 
        awarded under this title that has not been earned by 
        the student, as calculated under subsection (a)(3)(C).
          (2) Responsibility of the student.--
                  (A) In general.--The student is not 
                responsible to return assistance that has not 
                been earned, except that the institution may 
                require the student to pay to the institution 
                up to 10 percent of the amount owed by the 
                institution in paragraph (1).
                  (B) Rule of construction.--Nothing in this 
                section shall be construed to prevent an 
                institution from enforcing the published 
                institutional refund policies of such 
                institution.
          (3) Order of return of title iv funds.--
                  (A) In general.--Excess funds returned by the 
                institution in accordance with paragraph (1) 
                shall be credited to awards under subpart 1 of 
                part A for the payment period or period of 
                enrollment for which a return of funds is 
                required.
                  (B) Remaining excesses.--If excess funds 
                remain after repaying all outstanding grant 
                amounts, the remaining excess shall be credited 
                in the following order:
                          (i) To outstanding balances on loans 
                        made under this title to the student or 
                        on behalf of the student for the 
                        payment period or period of enrollment 
                        for which a return of funds is 
                        required.
                          (ii) To other assistance awarded 
                        under this title for which a return of 
                        funds is required.
  (c) Withdrawal Date.--
          (1) In general.--In this section, the term ``day the 
        student withdrew''--
                  (A) for institutions not required to take 
                attendance, is the date as determined by the 
                institution that--
                          (i) the student began the withdrawal 
                        process prescribed and publicized by 
                        the institution, or a later date if the 
                        student continued attendance despite 
                        beginning the withdrawal process, but 
                        did not then complete the payment 
                        period; or
                          (ii) in the case of a student who 
                        does not begin the withdrawal process, 
                        the date that is the mid-point of the 
                        payment period for which assistance 
                        under this title was disbursed or 
                        another date documented by the 
                        institution; or
                  (B) for institutions required to take 
                attendance, is determined by the institution 
                from such attendance records.
          (2) Special rule.--Notwithstanding paragraph (1), if 
        the institution determines that a student did not begin 
        the withdrawal process, due to illness, accident, 
        grievous personal loss, or other such circumstances 
        beyond the student's control, the institution may 
        determine the appropriate withdrawal date under its own 
        defined policies.
          (3) Attendance.--An institution is required to take 
        attendance if an institution's accrediting agency or 
        State licensing agency has a requirement that the 
        institution take attendance for all students in an 
        academic program throughout the entire payment period.

           *       *       *       *       *       *       *


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. 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 (commonly known 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 be 
produced and be made readily available to enrolled and 
prospective students on the institution's website (or in other 
formats upon request). The information required by this section 
shall accurately describe--
          (A) the student financial assistance programs 
        available to students who enroll at such institution;
          (B) the methods by which such assistance is 
        distributed among student recipients who enroll at such 
        institution;
          (C) any means, including forms, by which application 
        for student financial assistance is made and 
        requirements for accurately preparing such application;
          (D) the rights and responsibilities of students 
        receiving financial assistance under this title;
          (E) the cost of attending the institution, including 
        (i) tuition and fees, (ii) books and supplies, (iii) 
        estimates of typical student room and board costs or 
        typical commuting costs, and (iv) any additional cost 
        of the program in which the student is enrolled or 
        expresses a specific interest;
          (F) a statement of--
                  (i) the requirements of any refund policy 
                with which the institution is required to 
                comply;
                  (ii) the requirements under section 484B for 
                the return of grant or loan assistance provided 
                under this title; and
                  (iii) the requirements for officially 
                withdrawing from the institution;
          (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, (iii) 
        the faculty and other instructional personnel, and (iv) 
        any plans by the institution for improving the academic 
        program of the institution;
          (H) each person designated under subsection (c) of 
        this section, and the methods by which and locations in 
        which any person so designated may be contacted by 
        students and prospective students who are seeking 
        information required by this subsection;
          (I) special facilities and services available to 
        students with disabilities;
          (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;
          (K) the standards which the student must maintain in 
        order to be considered to be making satisfactory 
        progress, pursuant to section 484(a)(2);
          [(L) the completion or graduation rate of 
        certificate- or degree-seeking, full-time, 
        undergraduate students entering such institutions;]
                  [(M)(L) the terms and conditions of the loans 
                that students receive under parts B, D, and E;
          [(N)] (M) 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;
          [(O)] (N) the campus crime report prepared by the 
        institution pursuant to subsection (f), including all 
        required reporting categories;
                  [(P)] (O) institutional policies and 
                sanctions related to copyright infringement[, 
                including--]
                          [(i) an annual disclosure that 
                        explicitly informs students that 
                        unauthorized distribution of 
                        copyrighted material, including 
                        unauthorized peer-to-peer file sharing, 
                        may subject the students to civil and 
                        criminal liabilities;
                          [(ii) a summary of the penalties for 
                        violation of Federal copyright laws; 
                        and
                          [(iii) a description of the 
                        institution's policies with respect to 
                        unauthorized peer-to-peer file sharing, 
                        including disciplinary actions that are 
                        taken against students who engage in 
                        unauthorized distribution of 
                        copyrighted materials using the 
                        institution's information technology 
                        system;].
                  [(Q) student body diversity at the 
                institution, including information on the 
                percentage of enrolled, full-time students 
                who--
                          [(i) are male;
                          [(ii) are female;
                          [(iii) receive a Federal Pell Grant; 
                        and
                          [(iv) are a self-identified member of 
                        a major racial or ethnic group;
                  [(R) the placement in employment of, and 
                types of employment obtained by, graduates of 
                the institution's degree or certificate 
                programs, gathered from such sources as alumni 
                surveys, student satisfaction surveys, the 
                National Survey of Student Engagement, the 
                Community College Survey of Student Engagement, 
                State data systems, or other relevant sources;
                  [(S) the types of graduate and professional 
                education in which graduates of the 
                institution's four-year degree programs 
                enrolled, gathered from such sources as alumni 
                surveys, student satisfaction surveys, the 
                National Survey of Student Engagement, State 
                data systems, or other relevant sources;
                  [(T) the fire safety report prepared by the 
                institution pursuant to subsection (i);
                  [(U) the retention rate of certificate- or 
                degree-seeking, first-time, full-time, 
                undergraduate students entering such 
                institution; and
                  [(V) institutional policies regarding 
                vaccinations.]
                  (P) the fire safety report prepared by the 
                institution pursuant to subsection (i); and
                  (Q) the link to the institution's information 
                on the College Dashboard website operated under 
                section 132.
  (2) For the purpose of this section, the term ``prospective 
student'' means any individual who has contacted an eligible 
institution requesting information concerning admission to that 
institution.
  [(3) In calculating the completion or graduation rate under 
subparagraph (L) of paragraph (1) of this subsection or under 
subsection (e), a student shall be counted as a completion or 
graduation if, within 150 percent of the normal time for 
completion of or graduation from the program, the student has 
completed or graduated from the program, or enrolled in any 
program of an eligible institution for which the prior program 
provides substantial preparation. The information required to 
be disclosed under such subparagraph--
          [(A) shall be made available by July 1 each year to 
        enrolled students and prospective students prior to the 
        students enrolling or entering into any financial 
        obligation; and
          [(B) shall cover the one-year period ending on August 
        31 of the preceding year.
          [(4) For purposes of this section, institutions may--
                  [(A) exclude from the information disclosed 
                in accordance with subparagraph (L) of 
                paragraph (1) the completion or graduation 
                rates of students who leave school to serve in 
                the Armed Forces, on official church missions, 
                or with a recognized foreign aid service of the 
                Federal Government; or
                  [(B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more 
                of the certificate- or degree-seeking, full-
                time, undergraduate students at the 
                institution, recalculate the completion or 
                graduation rates of such students by excluding 
                from the calculation described in paragraph (3) 
                the time period during which such students were 
                not enrolled due to their service in the Armed 
                Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government.
  [(5) The Secretary shall permit any institution of higher 
education that is a member of an athletic association or 
athletic conference that has voluntarily published completion 
or graduation rate data or has agreed to publish data that, in 
the opinion of the Secretary, is substantially comparable to 
the information required under this subsection, to use such 
data to satisfy the requirements of this subsection; and
  [(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.
          [(7)(A)(i) Subject to clause (ii), the information 
        disseminated under paragraph (1)(L), or reported under 
        subsection (e), shall be disaggregated by gender, by 
        each major racial and ethnic subgroup, by recipients of 
        a Federal Pell Grant, by recipients of a loan made 
        under part B or D (other than a loan made under section 
        428H or a Federal Direct Unsubsidized Stafford Loan) 
        who did not receive a Federal Pell Grant, and by 
        recipients of neither a Federal Pell Grant nor a loan 
        made under part B or D (other than a loan made under 
        section 428H or a Federal Direct Unsubsidized Stafford 
        Loan), if the number of students in such subgroup or 
        with such status is sufficient to yield statistically 
        reliable information and reporting will not reveal 
        personally identifiable information about an individual 
        student. If such number is not sufficient for such 
        purposes, then the institution shall note that the 
        institution enrolled too few of such students to so 
        disclose or report with confidence and confidentiality.
          [(ii) The requirements of clause (i) shall not apply 
        to two-year, degree-granting institutions of higher 
        education until academic year 2011-2012.
          [(B)(i) In order to assist two-year degree-granting 
        institutions of higher education in meeting the 
        requirements of paragraph (1)(L) and subsection (e), 
        the Secretary, in consultation with the Commissioner 
        for Education Statistics, shall, not later than 90 days 
        after the date of enactment of the Higher Education 
        Opportunity Act, convene a group of representatives 
        from diverse institutions of higher education, experts 
        in the field of higher education policy, state higher 
        education officials, students, and other stakeholders 
        in the higher education community, to develop 
        recommendations regarding the accurate calculation and 
        reporting of the information required to be 
        disseminated or reported under paragraph (1)(L) and 
        subsection (e) by two-year, degree-granting 
        institutions of higher education. In developing such 
        recommendations, the group of representatives shall 
        consider the mission and role of two-year degree-
        granting institutions of higher education, and may 
        recommend additional or alternative measures of student 
        success for such institutions in light of the mission 
        and role of such institutions.
          [(ii) The Secretary shall widely disseminate the 
        recommendations required under this subparagraph to 
        two-year, degree-granting institutions of higher 
        education, the public, and the authorizing committees 
        not later than 18 months after the first meeting of the 
        group of representatives convened under clause (i).
          [(iii) The Secretary shall use the recommendations 
        from the group of representatives convened under clause 
        (i) to provide technical assistance to two-year, 
        degree-granting institutions of higher education in 
        meeting the requirements of paragraph (1)(L) and 
        subsection (e).
          [(iv) The Secretary may modify the information 
        required to be disseminated or reported under paragraph 
        (1)(L) or subsection (e) by a two-year, degree-granting 
        institution of higher education--
                  [(I) based on the recommendations received 
                under this subparagraph from the group of 
                representatives convened under clause (i);
                  [(II) to include additional or alternative 
                measures of student success if the goals of the 
                provisions of paragraph (1)(L) and subsection 
                (e) can be met through additional means or 
                comparable alternatives; and
                  [(III) during the period beginning on the 
                date of enactment of the Higher Education 
                Opportunity Act, and ending on June 30, 2011.]
  (b) Exit Counseling for Borrowers.--(1)(A) Each eligible 
institution shall, [through financial aid offices or otherwise] 
through the use of an interactive program, during an exit 
counseling session that is in-person or online, or through the 
use of the online counseling tool described in subsection 
(n)(1)(A), provide counseling to borrowers of loans that are 
made, insured, or guaranteed under part B (other than loans 
made pursuant to section 428C or loans under section 428B made 
on behalf of a student) or made under part D (other than 
Federal Direct Consolidation Loans or Federal Direct PLUS Loans 
made on behalf of a student) or made under part E, as in effect 
on the day before the date of enactment of the PROSPER Act and 
pursuant to section 461(a) of such Act or made under part E 
(other than Federal ONE Parent Loans), as in effect on or after 
the date of enactment of the PROSPER Act of this title prior to 
the completion of the course of study for which the borrower 
enrolled at the institution or at the time of departure from 
such institution. The counseling required by this subsection 
shall include--
          (i) a summary of the outstanding balance of principal 
        and interest due on the loans made to the borrower 
        under this title;
          (ii) an explanation of the grace period preceding 
        repayment and the expected date that the borrower will 
        enter repayment;
          (iii) an explanation of cases of interest 
        capitalization and that the borrower has the option to 
        pay any interest that has accrued while the borrower 
        was in school or that may accrue during the grace 
        period preceding repayment or during an authorized 
        period of deferment or forbearance, prior to the 
        capitalization of the interest;
          [(i)] (iv) information on the repayment plans 
        available, including a description of the different 
        features [of each plan] of at least the standard 
        repayment plan and the income-based repayment plan 
        under section 466(d) and [sample information showing 
        the average] information, based on the borrower's 
        outstanding balance described in clause (i), showing 
        the borrower's anticipated monthly payments, and the 
        difference in interest paid and total payments, under 
        each plan;
          [(ii)] (v) debt management strategies that are 
        designed to facilitate the repayment of such 
        indebtedness;
          [(iii)] (vi) an explanation that the borrower has the 
        options to prepay each loan, pay each loan on a shorter 
        schedule, and change repayment plans;
          [(iv)] (vii) for any loan forgiveness or cancellation 
        provision of this title, a general description of the 
        terms and conditions under which the borrower may 
        obtain full or partial forgiveness or cancellation of 
        the principal and interest, and a copy of the 
        information provided by the Secretary under section 
        485(d);
          [(v)] (viii) for any forbearance provision of this 
        title, a general description of the terms and 
        conditions under which the borrower may defer repayment 
        of principal or interest or be granted forbearance, and 
        a copy of the information provided by the Secretary 
        under section 485(d);
          [(vi)] (ix) the consequences of defaulting on a loan, 
        including adverse credit reports, decreased credit 
        score, delinquent debt collection procedures under 
        Federal law, potential reduced ability to rent or 
        purchase a home or car, potential difficulty in 
        securing employment, and litigation;
          [(vii)] (x) information on the effects of using a 
        [consolidation loan under section 428C or a] Federal 
        Direct Consolidation Loan to discharge the borrower's 
        loans under parts B, D, and E, including at a minimum--
                  (I) the effects of consolidation on total 
                interest to be paid, fees to be paid, and 
                length of repayment;
                  (II) the effects of consolidation on a 
                borrower's underlying loan benefits, including 
                grace periods, loan forgiveness, cancellation, 
                and deferment opportunities;
                  (III) the option of the borrower to prepay 
                the loan or to change repayment plans; and
                  (IV) that borrower benefit programs may vary 
                among different lenders;
          [(viii)] (xi) a general description of the types of 
        tax benefits that may be available to borrowers; [and]
          [(ix)] (xii) a notice to borrowers about the 
        availability of the National Student Loan Data System 
        and how the system can be used by a borrower to obtain 
        information on the status of the borrower's loans; 
        [and]
          (xiii) for each of the borrower's loans made under 
        this title for which the borrower is receiving 
        counseling under this subsection, the contact 
        information for the servicer of the loan and a link to 
        the Website of such servicer; and
          (xiv) an explanation that an individual has a right 
        to annually request a disclosure of information 
        collected by a consumer reporting agency pursuant to 
        section 612(a) of the Fair Credit Reporting Act (15 
        U.S.C. 1681j(a)).
  (B) In the case of borrower who leaves an institution without 
the prior knowledge of the institution, the institution shall 
attempt to provide the information described in subparagraph 
(A) to the student online or in writing, except that in the 
case of an institution using the online counseling tool 
described in subsection (n)(1)(A), the Secretary shall attempt 
to provide such information to the student in the manner 
described in subsection (n)(3)(C).
  (2)(A) Each eligible institution shall require that the 
borrower of a loan made under part B, D, or E submit to the 
institution, during the exit interview required by this 
subsection--
          (i) the borrower's expected permanent address after 
        leaving the institution (regardless of the reason for 
        leaving);
          (ii) the name and address of the borrower's expected 
        employer after leaving the institution;
          (iii) the address of the borrower's next of kin; and
          (iv) any corrections in the institution's records 
        relating the borrower's name, address, social security 
        number, references, and driver's license number.
  (B) The institution shall, within 60 days after the 
interview, forward any corrected or completed information 
received from the borrower to the guaranty agency indicated on 
the borrower's student aid records.
  (C) Nothing in this subsection shall be construed to prohibit 
an institution of higher education from utilizing electronic 
means, such as the online counseling tool described in 
subsection (n)(1)(A), to provide personalized exit counseling.
  (c) Financial Assistance Information Personnel.--Each 
eligible institution shall designate an employee or group of 
employees who shall be available on a full-time basis to assist 
students or potential students in obtaining information as 
specified in subsection (a). The Secretary may, by regulation, 
waive the requirement that an employee or employees be 
available on a full-time basis for carrying out 
responsibilities required under this section whenever an 
institution in which the total enrollment, or the portion of 
the enrollment participating in programs under this title at 
that institution, is too small to necessitate such employee or 
employees being available on a full-time basis. No such waiver 
may include permission to exempt any such institution from 
designating a specific individual or a group of individuals to 
carry out the provisions of this section.
  (d) Departmental Publication of Descriptions of Assistance 
Programs.--(1) The Secretary shall make available to eligible 
institutions, eligible lenders, and secondary schools 
descriptions of Federal student assistance programs including 
the rights and responsibilities of student and institutional 
participants, in order to (A) assist students in gaining 
information through institutional sources, and (B) assist 
institutions in carrying out the provisions of this section, so 
that individual and institutional participants will be fully 
aware of their rights and responsibilities under such programs. 
In particular, such information shall include information to 
enable students and prospective students to assess the debt 
burden and monthly and total repayment obligations that will be 
incurred as a result of receiving loans of varying amounts 
under this title. Such information shall also include 
information on the various payment options available for 
student loans, including income-sensitive and income-based 
repayment plans for loans made, insured, or guaranteed under 
part B and income-contingent and income-based repayment plans 
for loans made under [part D] part D or E. In addition, such 
information shall include information to enable borrowers to 
assess the practical consequences of loan consolidation, 
including differences in deferment eligibility, interest rates, 
monthly payments, and finance charges, and samples of loan 
consolidation profiles to illustrate such consequences. The 
Secretary shall provide information concerning the specific 
terms and conditions under which students may obtain partial or 
total cancellation or defer repayment of loans for service, 
shall indicate (in terms of the Federal minimum wage) the 
maximum level of compensation and allowances that a student 
borrower may receive from a tax-exempt organization to qualify 
for a deferment, and shall explicitly state that students may 
qualify for such partial cancellations or deferments when they 
serve as a paid employee of a tax-exempt organization. The 
Secretary shall also provide information on loan forbearance, 
including the increase in debt that results from capitalization 
of interest. Such information shall be provided by eligible 
institutions and eligible lenders at any time that information 
regarding loan availability is provided to any student.
  (2) The Secretary, to the extent the information is 
available, shall compile information describing State and other 
prepaid tuition programs and savings programs and disseminate 
such information to States, eligible institutions, students, 
and parents in departmental publications.
  (3) The Secretary, to the extent practicable, shall update 
the Department's Internet site to include direct links to 
databases that contain information on public and private 
financial assistance programs. The Secretary shall only provide 
direct links to databases that can be accessed without charge 
and shall make reasonable efforts to verify that the databases 
included in a direct link are not providing fraudulent 
information. The Secretary shall prominently display adjacent 
to any such direct link a disclaimer indicating that a direct 
link to a database does not constitute an endorsement or 
recommendation of the database, the provider of the database, 
or any services or products of such provider. The Secretary 
shall provide additional direct links to information resources 
from which students may obtain information about fraudulent and 
deceptive practices in the provision of services related to 
student financial aid.
  (4) The Secretary shall widely publicize the location of the 
information described in paragraph (1) among the public, 
eligible institutions, and eligible lenders, and promote the 
use of such information by prospective students, enrolled 
students, families of prospective and enrolled students, and 
borrowers.
  (e) Disclosures Required With Respect to Athletically Related 
Student Aid.--(1) Each institution of higher education which 
participates in any program under this title and is attended by 
students receiving athletically related student aid shall 
annually submit a report to the Secretary which contains--
          (A) the number of students at the institution of 
        higher education who received athletically related 
        student aid broken down by race and sex in the 
        following sports: basketball, football, baseball, cross 
        country/track, and all other sports combined;
          (B) the number of students at the institution of 
        higher education, broken down by race and sex;
          (C) the completion or graduation rate for students at 
        the institution of higher education who received 
        athletically related student aid broken down by race 
        and sex in the following sports: basketball, football, 
        baseball, cross country/track and all other sports 
        combined;
          (D) the completion or graduation rate for students at 
        the institution of higher education, broken down by 
        race and sex;
          (E) the average completion or graduation rate for the 
        4 most recent completing or graduating classes of 
        students at the institution of higher education who 
        received athletically related student aid broken down 
        by race and sex in the following categories: 
        basketball, football, baseball, cross country/track, 
        and all other sports combined; and
          (F) the average completion or graduation rate for the 
        4 most recent completing or graduating classes of 
        students at the institution of higher education broken 
        down by race and sex.
  (2) When an institution described in paragraph (1) of this 
subsection offers a potential student athlete athletically 
related student aid, such institution shall provide to the 
student and the student's parents, guidance counselor, and 
coach the information contained in the report submitted by such 
institution pursuant to paragraph (1). If the institution is a 
member of a national collegiate athletic association that 
compiles graduation rate data on behalf of the association's 
member institutions that the Secretary determines is 
substantially comparable to the information described in 
paragraph (1), the distribution of the compilation of such data 
to all secondary schools in the United States shall fulfill the 
responsibility of the institution to provide information to a 
prospective student athlete's guidance counselor and coach.
          (3) For purposes of this subsection, institutions 
        may--
                  (A) exclude from the reporting requirements 
                under paragraphs (1) and (2) the completion or 
                graduation rates of students and student 
                athletes who leave school to serve in the Armed 
                Forces, on official church missions, or with a 
                recognized foreign aid service of the Federal 
                Government; or
                  (B) in cases where the students described in 
                subparagraph (A) represent 20 percent or more 
                of the certificate- or degree-seeking, full-
                time, undergraduate students at the 
                institution, calculate the completion or 
                graduation rates of such students by excluding 
                from the calculations described in paragraph 
                (1) the time period during which such students 
                were not enrolled due to their service in the 
                Armed Forces, on official church missions, or 
                with a recognized foreign aid service of the 
                Federal Government.
  (4) Each institution of higher education described in 
paragraph (1) may provide supplemental information to students 
and the Secretary showing the completion or graduation rate 
when such completion or graduation rate includes students 
transferring into and out of such institution.
  (5) The Secretary, using the reports submitted under this 
subsection, shall compile and publish a report containing the 
information required under paragraph (1) broken down by--
          (A) individual institutions of higher education; and
          (B) athletic conferences recognized by the National 
        Collegiate Athletic Association and the National 
        Association of Intercollegiate Athletics.
  (6) The Secretary shall waive the requirements of this 
subsection for any institution of higher education that is a 
member of an athletic association or athletic conference that 
has voluntarily published completion or graduation rate data or 
has agreed to publish data that, in the opinion of the 
Secretary, is substantially comparable to the information 
required under this subsection.
  (7) The Secretary, in conjunction with the National Junior 
College Athletic Association, shall develop and obtain data on 
completion or graduation rates from two-year colleges that 
award athletically related student aid. Such data shall, to the 
extent practicable, be consistent with the reporting 
requirements set forth in this section.
  (8) For purposes of this subsection, the term ``athletically 
related student aid'' means any scholarship, grant, or other 
form of financial assistance the terms of which require the 
recipient to participate in a program of intercollegiate 
athletics at an institution of higher education in order to be 
eligible to receive such assistance.
  (9) The reports required by this subsection shall be due each 
July 1 and shall cover the 1-year period ending August 31 of 
the preceding year.
  (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) A statement of current campus policies regarding 
        procedures and facilities for students and others to 
        report criminal actions or other emergencies occurring 
        on campus and policies concerning the institution's 
        response to such reports.
          (B) A statement of current policies concerning 
        security and access to campus facilities, including 
        campus residences, and security considerations used in 
        the maintenance of campus facilities.
          (C) A statement of current policies concerning campus 
        law enforcement, including--
                  (i) the law enforcement authority of campus 
                security personnel;
                  (ii) the working relationship of campus 
                security personnel with State and local law 
                enforcement agencies, including whether the 
                institution has agreements with such agencies, 
                such as written memoranda of understanding, for 
                the investigation of alleged criminal offenses; 
                and
                  (iii) policies which encourage accurate and 
                prompt reporting of all crimes to the campus 
                police and the appropriate law enforcement 
                agencies, when the victim of such crime elects 
                or is unable to make such a report.
          (D) A description of the type and frequency of 
        programs designed to inform students and employees 
        about campus security procedures and practices and to 
        encourage students and employees to be responsible for 
        their own security and the security of others.
          (E) A description of programs designed to inform 
        students and employees about the prevention of crimes.
          (F) Statistics concerning the occurrence on campus, 
        in or on noncampus buildings or property, and on public 
        property during the most recent calendar year, and 
        during the 2 preceding calendar years for which data 
        are available--
                  (i) of the following criminal offenses 
                reported to campus security authorities or 
                local police agencies:
                          (I) murder;
                          (II) sex offenses, forcible or 
                        nonforcible;
                          (III) robbery;
                          (IV) aggravated assault;
                          (V) burglary;
                          (VI) motor vehicle theft;
                          (VII) manslaughter;
                          (VIII) arson;
                          (IX) arrests or persons referred for 
                        campus disciplinary action for liquor 
                        law violations, drug-related 
                        violations, and weapons possession; and
                  (ii) of the crimes described in subclauses 
                (I) through (VIII) of clause (i), of larceny-
                theft, simple assault, intimidation, and 
                destruction, damage, or vandalism of property, 
                and of other crimes involving bodily injury to 
                any person, in which the victim is 
                intentionally selected because of the actual or 
                perceived race, gender, religion, national 
                origin, sexual orientation, gender identity,, 
                ethnicity, or disability of the victim that are 
                reported to campus security authorities or 
                local police agencies, which data shall be 
                collected and reported according to category of 
                prejudice; and
                  (iii) of domestic violence, dating violence, 
                and stalking incidents that were reported to 
                campus security authorities or local police 
                agencies.
          (G) A statement of policy concerning the monitoring 
        and recording through local police agencies of criminal 
        activity at off-campus student organizations which are 
        recognized by the institution and that are engaged in 
        by students attending the institution, including those 
        student organizations with off-campus housing 
        facilities.
          (H) A statement of policy regarding the possession, 
        use, and sale of alcoholic beverages and enforcement of 
        State underage drinking laws and a statement of policy 
        regarding the possession, use, and sale of illegal 
        drugs and enforcement of Federal and State drug laws 
        and a description of any drug or alcohol abuse 
        education programs as required under [section 120] 
        section 118 of this Act.
          (I) A statement advising the campus community where 
        law enforcement agency information provided by a State 
        under section 170101(j) of the Violent Crime Control 
        and Law Enforcement Act of 1994 (42 U.S.C. 14071(j)), 
        concerning registered sex offenders may be obtained, 
        such as the law enforcement office of the institution, 
        a local law enforcement agency with jurisdiction for 
        the campus, or a computer network address.
                  (J) A statement of current campus policies 
                regarding immediate emergency response and 
                evacuation procedures, including the use of 
                electronic and cellular communication (if 
                appropriate), which policies shall include 
                procedures to--
                          (i) immediately notify the campus 
                        community upon the confirmation of a 
                        significant emergency or dangerous 
                        situation involving an immediate threat 
                        to the health or safety of students or 
                        staff occurring on the campus, as 
                        defined in paragraph (6), unless 
                        issuing a notification will compromise 
                        efforts to contain the emergency;
                          (ii) publicize emergency response and 
                        evacuation procedures on an annual 
                        basis in a manner designed to reach 
                        students and staff; and
                          (iii) test emergency response and 
                        evacuation procedures on an annual 
                        basis.
  (2) 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 campus crimes or campus security.
  [(3) Each institution participating in any program under this 
title, other than a foreign institution of higher education, 
shall make timely reports to the campus community on crimes 
considered to be a threat to other students and employees 
described in paragraph (1)(F) that are reported to campus 
security or local law police agencies. Such reports shall be 
provided to students and employees in a manner that is timely, 
that withholds the names of victims as confidential, and that 
will aid in the prevention of similar occurrences.]
          (3) Each institution participating in any program 
        under this title, other than a foreign institution of 
        higher education, shall make timely reports to the 
        campus community on crimes described in paragraph 
        (1)(F) that have been reported to campus security 
        officials and pose a serious and continuing threat to 
        other students and employees' safety. Such reports 
        shall withhold the names of victims as confidential and 
        shall be provided in a timely manner, except that an 
        institution may delay issuing a report if the issuance 
        would compromise ongoing law enforcement efforts, such 
        as efforts to apprehend a suspect. The report shall 
        also include information designed to assist students 
        and employees in staying safe and avoiding similar 
        occurrences to the extent such information is available 
        and appropriate to include. In assessing institutional 
        compliance with this section, the Secretary shall defer 
        to the institution's determination of whether a 
        particular crime poses a serious and continuing threat 
        to the campus community, and the timeliness of such 
        warning, provided that, in making its decision, the 
        institution acted reasonably and based on the 
        considered professional judgement of campus security 
        officials, based on the facts and circumstances known 
        at the time.
  (4)(A) Each institution participating in any program under 
this title, other than a foreign institution of higher 
education, that maintains a police or security department of 
any kind shall make, keep, and maintain a daily log, written in 
a form that can be easily understood, recording all crimes 
reported to such police or security department, including--
          (i) the nature, date, time, and general location of 
        each crime; and
          (ii) the disposition of the complaint, if known.
  (B)(i) All entries that are required pursuant to this 
paragraph shall, except where disclosure of such information is 
prohibited by law or such disclosure would jeopardize the 
confidentiality of the victim, be open to public inspection 
within two business days of the initial report being made to 
the department or a campus security authority.
  (ii) If new information about an entry into a log becomes 
available to a police or security department, then the new 
information shall be recorded in the log not later than two 
business days after the information becomes available to the 
police or security department.
  (iii) If there is clear and convincing evidence that the 
release of such information would jeopardize an ongoing 
criminal investigation or the safety of an individual, cause a 
suspect to flee or evade detection, or result in the 
destruction of evidence, such information may be withheld until 
that damage is no longer likely to occur from the release of 
such information.
  (5) On an annual basis, each institution participating in any 
program under this title, other than a foreign institution of 
higher education, 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 
        authorizing committees on campus crime statistics by 
        September 1, 2000;
          (B) make copies of the statistics submitted to the 
        Secretary available to the public; and
          (C) in coordination with representatives of 
        institutions of higher education, identify exemplary 
        campus security policies, procedures, and practices and 
        disseminate information concerning those policies, 
        procedures, and practices that have proven effective in 
        the reduction of campus crime.
  (6)(A) In this subsection:
          (i) The terms ``dating violence'', ``domestic 
        violence'', and ``stalking'' have the meaning given 
        such terms in section 40002(a) of the Violence Against 
        Women Act of 1994 (42 U.S.C. 13925(a)).
          (ii) The term ``campus'' means--
                  (I) any building or property owned or 
                controlled by an institution of higher 
                education within the same reasonably contiguous 
                geographic area of the institution and used by 
                the institution in direct support of, or in a 
                manner related to, the institution's 
                educational purposes, including residence 
                halls; and
                  (II) property within the same reasonably 
                contiguous geographic area of the institution 
                that is owned by the institution but controlled 
                by another person, is used by students, and 
                supports institutional purposes (such as a food 
                or other retail vendor).
          (iii) The term ``noncampus building or property'' 
        means--
                  (I) any building or property owned or 
                controlled by a student organization recognized 
                by the institution; and
                  (II) any building or property (other than a 
                branch campus) owned or controlled by an 
                institution of higher education that is used in 
                direct support of, or in relation to, the 
                institution's educational purposes, is used by 
                students, and is not within the same reasonably 
                contiguous geographic area of the institution.
          (iv) The term ``public property'' means all public 
        property that is within the same reasonably contiguous 
        geographic area of the institution, such as a sidewalk, 
        a street, other thoroughfare, or parking facility, and 
        is adjacent to a facility owned or controlled by the 
        institution if the facility is used by the institution 
        in direct support of, or in a manner related to the 
        institution's educational purposes.
          (v) The term ``sexual assault'' means an offense 
        classified as a forcible or nonforcible sex offense 
        under the uniform crime reporting system of the Federal 
        Bureau of Investigation.
  (B) In cases where branch campuses of an institution of 
higher education, schools within an institution of higher 
education, or administrative divisions within an institution 
are not within a reasonably contiguous geographic area, such 
entities shall be considered separate campuses for purposes of 
the reporting requirements of this section.
  (7) The statistics described in clauses (i) and (ii) of 
paragraph (1)(F) shall be compiled in accordance with the 
definitions used in the uniform crime reporting system of the 
Department of Justice, Federal Bureau of Investigation, and the 
modifications in such definitions as implemented pursuant to 
the Hate Crime Statistics Act. For the offenses of domestic 
violence, dating violence, and stalking, such statistics shall 
be compiled in accordance with the definitions used in section 
40002(a) of the Violence Against Women Act of 1994 (42 U.S.C. 
13925(a)). Such statistics shall not identify victims of crimes 
or persons accused of crimes.
  (8)(A) Each institution of higher education participating in 
any program under this title and title IV of the Economic 
Opportunity Act of 1964, other than a foreign institution of 
higher education, shall develop and distribute as part of the 
report described in paragraph (1) a statement of policy 
regarding--
          (i) such institution's programs to prevent domestic 
        violence, dating violence, sexual assault, and 
        stalking; and
          (ii) the procedures that such institution will follow 
        once an incident of domestic violence, dating violence, 
        sexual assault, or stalking has been reported, 
        including a statement of the standard of evidence that 
        will be used during any institutional conduct 
        proceeding arising from such a report.
  (B) The policy described in subparagraph (A) shall address 
the following areas:
          (i) Education programs to promote the awareness of 
        rape, acquaintance rape, domestic violence, dating 
        violence, sexual assault, and stalking, which shall 
        include--
                  (I) primary prevention and awareness programs 
                for all incoming students and new employees, 
                which shall include--
                          (aa) a statement that the institution 
                        of higher education prohibits the 
                        offenses of domestic violence, dating 
                        violence, sexual assault, and stalking;
                          (bb) the definition of domestic 
                        violence, dating violence, sexual 
                        assault, and stalking in the applicable 
                        jurisdiction;
                          (cc) the definition of consent, in 
                        reference to sexual activity, in the 
                        applicable jurisdiction;
                          (dd) safe and positive options for 
                        bystander intervention that may be 
                        carried out by an individual to prevent 
                        harm or intervene when there is a risk 
                        of domestic violence, dating violence, 
                        sexual assault, or stalking against a 
                        person other than such individual;
                          (ee) information on risk reduction to 
                        recognize warning signs of abusive 
                        behavior and how to avoid potential 
                        attacks; and
                          (ff) the information described in 
                        clauses (ii) through (vii); and
                  (II) ongoing prevention and awareness 
                campaigns for students and faculty, including 
                information described in items (aa) through 
                (ff) of subclause (I).
          (ii) Possible sanctions or protective measures that 
        such institution may impose following a final 
        determination of an institutional disciplinary 
        procedure regarding rape, acquaintance rape, domestic 
        violence, dating violence, sexual assault, or stalking.
          (iii) Procedures victims should follow if a sex 
        offense, domestic violence, dating violence, sexual 
        assault, or stalking has occurred, including 
        information in writing about--
                  (I) the importance of preserving evidence as 
                may be necessary to the proof of criminal 
                domestic violence, dating violence, sexual 
                assault, or stalking, or in obtaining a 
                protection order;
                  (II) to whom the alleged offense should be 
                reported;
                  (III) options regarding law enforcement and 
                campus authorities, including notification of 
                the victim's option to--
                          (aa) notify proper law enforcement 
                        authorities, including on-campus and 
                        local police;
                          (bb) be assisted by campus 
                        authorities in notifying law 
                        enforcement authorities if the victim 
                        so chooses; and
                          (cc) decline to notify such 
                        authorities; and
                  (IV) where applicable, the rights of victims 
                and the institution's responsibilities 
                regarding orders of protection, no contact 
                orders, restraining orders, or similar lawful 
                orders issued by a criminal, civil, or tribal 
                court.
          (iv) Procedures for institutional disciplinary action 
        in cases of alleged domestic violence, dating violence, 
        sexual assault, or stalking, which shall include a 
        clear statement that--
                  [(I) such proceedings shall--
                          [(aa) provide a prompt, fair, and 
                        impartial investigation and resolution; 
                        and
                          [(bb) be conducted by officials who 
                        receive annual training on the issues 
                        related to domestic violence, dating 
                        violence, sexual assault, and stalking 
                        and how to conduct an investigation and 
                        hearing process that protects the 
                        safety of victims and promotes 
                        accountability;]
                          (I) the investigation of the 
                        allegation and any institutional 
                        disciplinary proceeding in response to 
                        the allegation shall be prompt, 
                        impartial, and fair to both the accuser 
                        and the accused by, at a minimum--
                                  (aa) providing all parties to 
                                the proceeding with adequate 
                                written notice of the 
                                allegation not later than 2 
                                weeks prior to the start of any 
                                formal hearing or similar 
                                adjudicatory proceeding, and 
                                including in such notice a 
                                description of all rights and 
                                responsibilities under the 
                                proceeding, a statement of all 
                                relevant details of the 
                                allegation, and a specific 
                                statement of the sanctions 
                                which may be imposed;
                                  (bb) providing each person 
                                against whom the allegation is 
                                made with a meaningful 
                                opportunity to admit or contest 
                                the allegation;
                                  (cc) ensuring that all 
                                parties to the proceeding have 
                                access to all material evidence 
                                not later than one week prior 
                                to the start of any formal 
                                hearing or similar adjudicatory 
                                proceeding;
                                  (dd) ensuring that the 
                                proceeding is carried out free 
                                from conflicts of interest by 
                                ensuring that there is no 
                                commingling of administrative 
                                or adjudicative roles; and
                                  (ee) ensuring that the 
                                investigation and proceeding 
                                shall be conducted by officials 
                                who receive annual education on 
                                issues related to domestic 
                                violence, dating violence, 
                                sexual assault, and stalking, 
                                and on how to conduct an 
                                investigation and an 
                                institutional disciplinary 
                                proceeding that protects the 
                                safety of victims, ensures 
                                fairness for both the accuser 
                                and the accused, and promotes 
                                accountability;
                  (II) the accuser and the accused are entitled 
                to the same opportunities to have others 
                present during an institutional disciplinary 
                proceeding, including the opportunity to be 
                accompanied to any related meeting or 
                proceeding by an advisor of their choice; [and]
                  (III) both the accuser and the accused shall 
                be simultaneously informed, in writing, of--
                          (aa) the outcome of any institutional 
                        disciplinary proceeding that arises 
                        from an allegation of domestic 
                        violence, dating violence, sexual 
                        assault, or stalking;
                          (bb) the institution's procedures for 
                        the accused and the victim to appeal 
                        the results of the institutional 
                        disciplinary proceeding;
                          (cc) of any change to the results 
                        that occurs prior to the time that such 
                        results become final; and
                          (dd) when such results become 
                        final[.]; and
                  (IV) in the case of a proceeding involving an 
                allegation of sexual assault, such proceedings 
                shall be conducted in accordance with the 
                standard of evidence established by the 
                institution under clause (viii), together with 
                a clear statement describing such standard of 
                evidence.
          (v) Information about how the institution will 
        protect the confidentiality of victims, including how 
        publicly-available recordkeeping will be accomplished 
        without the inclusion of identifying information about 
        the victim, to the extent permissible by law.
          (vi) Written notification of students and employees 
        about existing counseling, health, mental health, 
        victim advocacy, legal assistance, and other services 
        available for victims both on-campus and in the 
        community.
          (vii) Written notification of victims about options 
        for, and available assistance in, changing academic, 
        living, transportation, and working situations, if so 
        requested by the victim and if such accommodations are 
        reasonably available, regardless of whether the victim 
        chooses to report the crime to campus police or local 
        law enforcement.
          (viii) The establishment of a standard of evidence 
        that will be used in institutional disciplinary 
        proceedings involving allegations of sexual assault, 
        which may be based on such standards and criteria as 
        the institution considers appropriate (including the 
        institution's culture, history, and mission, the values 
        reflected in its student code of conduct, and the 
        purpose of the institutional disciplinary proceedings) 
        so long as the standard is not arbitrary or capricious 
        and is applied consistently throughout all such 
        proceedings.
  (C) A student or employee who reports to an institution of 
higher education that the student or employee has been a victim 
of domestic violence, dating violence, sexual assault, or 
stalking, whether the offense occurred on or off campus, shall 
be provided with a written explanation of the student or 
employee's rights and options, as described in clauses (ii) 
through (vii) of subparagraph (B).
  (D) In consultation with experts from institutions of higher 
education, law enforcement agencies, advocates for sexual 
assault victims, experts in due process, and other appropriate 
persons, the Secretary shall create and regularly update 
modules which an institution of higher education may use to 
provide the annual education described in subparagraph 
(B)(iv)(I)(ee) for officials conducting investigations and 
institutional disciplinary proceedings involving allegations 
described in such subparagraph. If the institution uses such 
modules to provide the education described in such 
subparagraph, the institution shall be considered to meet any 
requirement under such subparagraph or any other Federal law 
regarding the education provided to officials conducting such 
investigations and proceedings.
  (9) The Secretary, in consultation with the Attorney General 
of the United States, shall provide technical assistance in 
complying with the provisions of this section to an institution 
of higher education who requests such assistance.
  (10) Nothing in this section shall be construed to require 
the reporting or disclosure of privileged information.
  (11) The Secretary shall report to the appropriate committees 
of Congress each institution of higher education that the 
Secretary determines is not in compliance with the reporting 
requirements of this subsection.
  (12) For purposes of reporting the statistics with respect to 
crimes described in paragraph (1)(F), an institution of higher 
education shall distinguish, by means of separate categories, 
any criminal offenses that occur--
          (A) on campus;
          (B) in or on a noncampus building or property;
          (C) on public property; and
          (D) in dormitories or other residential facilities 
        for students on campus.
  (13) Upon a determination pursuant to section 487(c)(3)(B) 
that an institution of higher education has substantially 
misrepresented the number, location, or nature of the crimes 
required to be reported under this subsection, the Secretary 
shall impose a civil penalty upon the institution in the same 
amount and pursuant to the same procedures as a civil penalty 
is imposed under section 487(c)(3)(B).
  (14)(A) Nothing in this subsection may be construed to--
          (i) create a cause of action against any institution 
        of higher education or any employee of such an 
        institution for any civil liability; or
          (ii) establish any standard of care.
  (B) Notwithstanding any other provision of law, evidence 
regarding compliance or noncompliance with this subsection 
shall not be admissible as evidence in any proceeding of any 
court, agency, board, or other entity, except with respect to 
an action to enforce this subsection.
          (15) The Secretary shall annually report to the 
        authorizing committees regarding compliance with this 
        subsection by institutions of higher education, 
        including an up-to-date report on the Secretary's 
        monitoring of such compliance.
  (16)(A) The Secretary shall seek the advice and counsel of 
the Attorney General of the United States concerning the 
development, and dissemination to institutions of higher 
education, of best practices information about campus safety 
and emergencies.
  (B) The Secretary shall seek the advice and counsel of the 
Attorney General of the United States and the Secretary of 
Health and Human Services concerning the development, and 
dissemination to institutions of higher education, of best 
practices information about preventing and responding to 
incidents of domestic violence, dating violence, sexual 
assault, and stalking, including elements of institutional 
policies that have proven successful based on evidence-based 
outcome measurements.
  (17) No officer, employee, or agent of an institution 
participating in any program under this title shall retaliate, 
intimidate, threaten, coerce, or otherwise discriminate against 
any individual for exercising their rights or responsibilities 
under any provision of this subsection.
  (18) Nothing in this subsection may be construed to prohibit 
an institution of higher education from delaying the initiation 
of, or suspending, an investigation or institutional 
disciplinary proceeding involving an allegation of sexual 
assault in response to a request from a law enforcement agency 
or a prosecutor to delay the initiation of, or suspend, the 
investigation or proceeding, and any delay or suspension of 
such an investigation or proceeding in response to such a 
request may not serve as the grounds for any sanction or audit 
finding against the institution or for the suspension or 
termination of the institution's participation in any program 
under this title.
  (19)(A) Reporting carried out under this subsection shall be 
conducted in a manner to ensure maximum consistency with the 
Uniform Crime Reporting Program of the Department of Justice.
  (B) The Secretary shall require institutions of higher 
education to report crime statistics under this section using 
definitions of such crimes, when available, from the Uniform 
Crime Reporting Program of the Department of Justice.
  (C) The Secretary shall maintain a publicly available and 
updated list of all applicable definitions from the Uniform 
Crime Reporting Program of the Department of Justice.
  (D) With respect to a report under this subsection, in the 
case of a crime for which no Uniform Crime Reporting Program of 
the Department of Justice definition exists, the Secretary 
shall require that institutions of higher education report such 
crime according to a definition provided by the Secretary.
  (E) An institution of higher education that reports a crime 
described in subparagraph (D) shall not be subject to any 
penalty or fine for reporting inaccuracies or omissions if the 
institution of higher education can demonstrate that it made a 
reasonable and good faith effort to report crimes consistent 
with the definition provided by the Secretary.
  (F) With respect to a report under this subsection, the 
Secretary shall require institutions of higher education to 
follow the Hierarchy Rule for reporting crimes under the 
Uniform Crime Reporting Program of the Department of Justice, 
so as to minimize duplicate reporting and ensure greater 
consistency with national crime reporting systems.
  [(18)] (20) This subsection may be cited as the ``Jeanne 
Clery Disclosure of Campus Security Policy and Campus Crime 
Statistics Act''.
  (g) Data Required.--
          (1) In general.--Each coeducational institution of 
        higher education that participates in any program under 
        this title, and has an intercollegiate athletic 
        program, shall annually, for the immediately preceding 
        academic year, prepare a report that contains the 
        following information regarding intercollegiate 
        athletics:
                  (A) The number of male and female full-time 
                undergraduates that attended the institution.
                  (B) A listing of the varsity teams that 
                competed in intercollegiate athletic 
                competition and for each such team the 
                following data:
                          (i) The total number of participants, 
                        by team, as of the day of the first 
                        scheduled contest for the team.
                          (ii) Total operating expenses 
                        attributable to such teams, except that 
                        an institution may also report such 
                        expenses on a per capita basis for each 
                        team and expenditures attributable to 
                        closely related teams such as track and 
                        field or swimming and diving, may be 
                        reported together, although such 
                        combinations shall be reported 
                        separately for men's and women's teams.
                          (iii) Whether the head coach is male 
                        or female and whether the head coach is 
                        assigned to that team on a full-time or 
                        part-time basis. Graduate assistants 
                        and volunteers who serve as head 
                        coaches shall be considered to be head 
                        coaches for the purposes of this 
                        clause.
                          (iv) The number of assistant coaches 
                        who are male and the number of 
                        assistant coaches who are female for 
                        each team and whether a particular 
                        coach is assigned to that team on a 
                        full-time or part-time basis. Graduate 
                        assistants and volunteers who serve as 
                        assistant coaches shall be considered 
                        to be assistant coaches for the 
                        purposes of this clause.
                  (C) The total amount of money spent on 
                athletically related student aid, including the 
                value of waivers of educational expenses, 
                separately for men's and women's teams overall.
                  (D) The ratio of athletically related student 
                aid awarded male athletes to athletically 
                related student aid awarded female athletes.
                  (E) The total amount of expenditures on 
                recruiting, separately for men's and women's 
                teams overall.
                  (F) The total annual revenues generated 
                across all men's teams and across all women's 
                teams, except that an institution may also 
                report such revenues by individual team.
                  (G) The average annual institutional salary 
                of the head coaches of men's teams, across all 
                offered sports, and the average annual 
                institutional salary of the head coaches of 
                women's teams, across all offered sports.
                  (H) The average annual institutional salary 
                of the assistant coaches of men's teams, across 
                all offered sports, and the average annual 
                institutional salary of the assistant coaches 
                of women's teams, across all offered sports.
                  (I)(i) The total revenues, and the revenues 
                from football, men's basketball, women's 
                basketball, all other men's sports combined and 
                all other women's sports combined, derived by 
                the institution from the institution's 
                intercollegiate athletics activities.
                  (ii) For the purpose of clause (i), revenues 
                from intercollegiate athletics activities 
                allocable to a sport shall include (without 
                limitation) gate receipts, broadcast revenues, 
                appearance guarantees and options, concessions, 
                and advertising, but revenues such as student 
                activities fees or alumni contributions not so 
                allocable shall be included in the calculation 
                of total revenues only.
                  (J)(i) The total expenses, and the expenses 
                attributable to football, men's basketball, 
                women's basketball, all other men's sports 
                combined, and all other women's sports 
                combined, made by the institution for the 
                institution's intercollegiate athletics 
                activities.
                  (ii) For the purpose of clause (i), expenses 
                for intercollegiate athletics activities 
                allocable to a sport shall include (without 
                limitation) grants-in-aid, salaries, travel, 
                equipment, and supplies, but expenses such as 
                general and administrative overhead not so 
                allocable shall be included in the calculation 
                of total expenses only.
          (2) Special rule.--For the purposes of paragraph 
        (1)(G), if a coach has responsibilities for more than 
        one team and the institution does not allocate such 
        coach's salary by team, the institution should divide 
        the salary by the number of teams for which the coach 
        has responsibility and allocate the salary among the 
        teams on a basis consistent with the coach's 
        responsibilities for the different teams.
          (3) Disclosure of information to students and 
        public.--An institution of higher education described 
        in paragraph (1) shall make available to students and 
        potential students, upon request, and to the public, 
        the information contained in the report described in 
        paragraph (1), except that all students shall be 
        informed of their right to request such information.
          (4) Submission; report; information availability.--
        (A) On an annual basis, each institution of higher 
        education described in paragraph (1) shall provide to 
        the Secretary, within 15 days of the date that the 
        institution makes available the report under paragraph 
        (1), the information contained in the report.
          (B) The Secretary shall ensure that the reports 
        described in subparagraph (A) are made available to the 
        public within a reasonable period of time.
          (C) Not later than 180 days after the date of 
        enactment of the Higher Education Amendments of 1998, 
        the Secretary shall notify all secondary schools in all 
        States regarding the availability of the information 
        made available under paragraph (1), and how such 
        information may be accessed.
          (5) Definition.--For the purposes of this subsection, 
        the term ``operating expenses'' means expenditures on 
        lodging and meals, transportation, officials, uniforms 
        and equipment.
  (h) Transfer of Credit Policies.--
          (1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall 
        publicly disclose, in a readable and comprehensible 
        manner, the transfer of credit policies established by 
        the institution which shall include a statement of the 
        institution's current transfer of credit policies that 
        includes, at a minimum--
                  (A) any established criteria the institution 
                uses regarding the transfer of credit earned at 
                another institution of higher education; and
                  (B) a list of institutions of higher 
                education with which the institution has 
                established an articulation agreement.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed to--
                  (A) authorize the Secretary or the National 
                Advisory Committee on Institutional Quality and 
                Integrity to require particular policies, 
                procedures, or practices by institutions of 
                higher education with respect to transfer of 
                credit;
                  (B) authorize an officer or employee of the 
                Department to exercise any direction, 
                supervision, or control over the curriculum, 
                program of instruction, administration, or 
                personnel of any institution of higher 
                education, or over any accrediting agency or 
                association;
                  (C) limit the application of the General 
                Education Provisions Act; or
                  (D) create any legally enforceable right on 
                the part of a student to require an institution 
                of higher education to accept a transfer of 
                credit from another institution.
  [(i) Disclosure of Fire Safety Standards and Measures.--
          [(1) Annual fire safety reports on student housing 
        required.--Each eligible institution participating in 
        any program under this title that maintains on-campus 
        student housing facilities shall, on an annual basis, 
        publish a fire safety report, which shall contain 
        information with respect to the campus fire safety 
        practices and standards of that institution, 
        including--
                  [(A) statistics concerning the following in 
                each on-campus student housing facility during 
                the most recent calendar years for which data 
                are available:
                          [(i) the number of fires and the 
                        cause of each fire;
                          [(ii) the number of injuries related 
                        to a fire that result in treatment at a 
                        medical facility;
                          [(iii) the number of deaths related 
                        to a fire; and
                          [(iv) the value of property damage 
                        caused by a fire;
                  [(B) a description of each on-campus student 
                housing facility fire safety system, including 
                the fire sprinkler system;
                  [(C) the number of regular mandatory 
                supervised fire drills;
                  [(D) policies or rules on portable electrical 
                appliances, smoking, and open flames (such as 
                candles), procedures for evacuation, and 
                policies regarding fire safety education and 
                training programs provided to students, 
                faculty, and staff; and
                  [(E) plans for future improvements in fire 
                safety, if determined necessary by such 
                institution.
          [(2) Report to the secretary.--Each institution 
        described in paragraph (1) shall, on an annual basis, 
        submit to the Secretary a copy of the statistics 
        required to be made available under paragraph (1)(A).
          [(3) Current information to campus community.--Each 
        institution described in paragraph (1) shall--
                  [(A) make, keep, and maintain a log, 
                recording all fires in on-campus student 
                housing facilities, including the nature, date, 
                time, and general location of each fire; and
                  [(B) make annual reports to the campus 
                community on such fires.
          [(4) Responsibilities of the secretary.--The 
        Secretary shall--
                  [(A) make the statistics submitted under 
                paragraph (1)(A) to the Secretary available to 
                the public; and
                  [(B) in coordination with nationally 
                recognized fire organizations and 
                representatives of institutions of higher 
                education, representatives of associations of 
                institutions of higher education, and other 
                organizations that represent and house a 
                significant number of students--
                          [(i) identify exemplary fire safety 
                        policies, procedures, programs, and 
                        practices, including the installation, 
                        to the technical standards of the 
                        National Fire Protection Association, 
                        of fire detection, prevention, and 
                        protection technologies in student 
                        housing, dormitories, and other 
                        buildings;
                          [(ii) disseminate the exemplary 
                        policies, procedures, programs and 
                        practices described in clause (i) to 
                        the Administrator of the United States 
                        Fire Administration;
                          [(iii) make available to the public 
                        information concerning those policies, 
                        procedures, programs, and practices 
                        that have proven effective in the 
                        reduction of fires; and
                          [(iv) develop a protocol for 
                        institutions to review the status of 
                        their fire safety systems.
          [(5) Rules of construction.--Nothing in this 
        subsection shall be construed to--
                  [(A) authorize the Secretary to require 
                particular policies, procedures, programs, or 
                practices by institutions of higher education 
                with respect to fire safety, other than with 
                respect to the collection, reporting, and 
                dissemination of information required by this 
                subsection;
                  [(B) affect section 444 of the General 
                Education Provisions Act (commonly known as the 
                ``Family Educational Rights and Privacy Act of 
                1974'') or the regulations issued under section 
                264 of the Health Insurance Portability and 
                Accountability Act of 1996 (42 U.S.C. 1320d-2 
                note);
                  [(C) create a cause of action against any 
                institution of higher education or any employee 
                of such an institution for any civil liability; 
                or
                  [(D) establish any standard of care.
          [(6) Compliance report.--The Secretary shall annually 
        report to the authorizing committees regarding 
        compliance with this subsection by institutions of 
        higher education, including an up-to-date report on the 
        Secretary's monitoring of such compliance.
          [(7) Evidence.--Notwithstanding any other provision 
        of law, evidence regarding compliance or noncompliance 
        with this subsection shall not be admissible as 
        evidence in any proceeding of any court, agency, board, 
        or other entity, except with respect to an action to 
        enforce this subsection.]
  (i) Fire Safety Reports.--
          (1) Annual report.--Each eligible institution 
        participating in any program under this title that 
        maintains on-campus student housing facilities shall, 
        on an annual basis, publish a fire safety report, which 
        shall contain information with respect to the campus 
        fire safety practices and standards of that 
        institution, statistics on any fire related incidents 
        or injuries, and any preventative measures or 
        technologies.
          (2) Rules of construction.--Nothing in this 
        subsection shall be construed to--
                  (A) authorize the Secretary to require 
                particular policies, procedures, programs, or 
                practices by institutions of higher education 
                with respect to fire safety;
                  (B) affect section 444 of the General 
                Education Provisions Act (commonly known as the 
                ``Family Education Rights and Privacy Act of 
                1974'') or the regulations issued under section 
                264 of the Health Insurance Portability and 
                Accountability Act of 1996 (42 U.S.C. 1320d-2 
                note);
                  (C) create a cause of action against any 
                institution of higher education or any employee 
                of such an institution for any civil liability; 
                or
                  (D) establish any standard of care.
          (3) Evidence.--Notwithstanding any other provision of 
        law, evidence regarding compliance or noncompliance 
        with this subsection shall not be admissible as 
        evidence in any proceeding of any court, agency, board, 
        or other entity, except with respect to an action to 
        enforce this subsection.
  (j) Missing Person Procedures.--
          [(1) Option and procedures.--Each institution of 
        higher education that provides on-campus housing and 
        participates in any program under this title shall--
                  [(A) establish a missing student notification 
                policy for students who reside in on-campus 
                housing that--
                          [(i) informs each such student that 
                        such student has the option to identify 
                        an individual to be contacted by the 
                        institution not later than 24 hours 
                        after the time that the student is 
                        determined missing in accordance with 
                        official notification procedures 
                        established by the institution under 
                        subparagraph (B);
                          [(ii) provides each such student a 
                        means to register confidential contact 
                        information in the event that the 
                        student is determined to be missing for 
                        a period of more than 24 hours;
                          [(iii) advises each such student who 
                        is under 18 years of age, and not an 
                        emancipated individual, that the 
                        institution is required to notify a 
                        custodial parent or guardian not later 
                        24 hours after the time that the 
                        student is determined to be missing in 
                        accordance with such procedures;
                          [(iv) informs each such residing 
                        student that the institution will 
                        notify the appropriate law enforcement 
                        agency not later than 24 hours after 
                        the time that the student is determined 
                        missing in accordance with such 
                        procedures; and
                          [(v) requires, if the campus security 
                        or law enforcement personnel has been 
                        notified and makes a determination that 
                        a student who is the subject of a 
                        missing person report has been missing 
                        for more than 24 hours and has not 
                        returned to the campus, the institution 
                        to initiate the emergency contact 
                        procedures in accordance with the 
                        student's designation; and
                  [(B) establish official notification 
                procedures for a missing student who resides in 
                on-campus housing that--
                          [(i) includes procedures for official 
                        notification of appropriate individuals 
                        at the institution that such student 
                        has been missing for more than 24 
                        hours;
                          [(ii) requires any official missing 
                        person report relating to such student 
                        be referred immediately to the 
                        institution's police or campus security 
                        department; and
                          [(iii) if, on investigation of the 
                        official report, such department 
                        determines that the missing student has 
                        been missing for more than 24 hours, 
                        requires--
                                  [(I) such department to 
                                contact the individual 
                                identified by such student 
                                under subparagraph (A)(i);
                                  [(II) if such student is 
                                under 18 years of age, and not 
                                an emancipated individual, the 
                                institution to immediately 
                                contact the custodial parent or 
                                legal guardian of such student; 
                                and
                                  [(III) if subclauses (I) or 
                                (II) do not apply to a student 
                                determined to be a missing 
                                person, inform the appropriate 
                                law enforcement agency.]
          (1) In general.--Each institution of higher education 
        that provides on-campus housing and participates in any 
        program under this title shall establish a missing 
        student policy for students who reside in on-campus 
        housing that, at a minimum, informs each residing 
        student that the institution will notify such student's 
        designated emergency contact and the appropriate law 
        enforcement agency not later than 24 hours after the 
        time that the student is determined missing, and in the 
        case of a student who is under 18 years of age, the 
        institution will notify a custodial parent or guardian.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed--
                  (A) to provide a private right of action to 
                any person to enforce any provision of this 
                subsection; [or]
                  (B) to create a cause of action against any 
                institution of higher education or any employee 
                of the institution for any civil liability[.]; 
                or
                  (C) to require an institution of higher 
                education to maintain separate missing student 
                emergency contact information, so long as the 
                institution otherwise has an emergency contact 
                for students residing on campus.
  (k) Notice to Students Concerning Penalties for Drug 
Violations.--
          (1) Notice upon enrollment.--Each institution of 
        higher education shall provide to each student, upon 
        enrollment, a separate, clear, and conspicuous written 
        notice that advises the student of the penalties under 
        section 484(r).
          (2) Notice after loss of eligibility.--An institution 
        of higher education shall provide in a timely manner to 
        each student who has lost eligibility for any grant, 
        loan, or work-study assistance under this title as a 
        result of the penalties listed under section 484(r)(1) 
        a separate, clear, and conspicuous written notice that 
        notifies the student of the loss of eligibility and 
        advises the student of the ways in which the student 
        can regain eligibility under section 484(r)(2).
  [(l) Entrance Counseling for Borrowers.--
          [(1) Disclosure required prior to disbursement.--
                  [(A) In general.--Each eligible institution 
                shall, at or prior to the time of a 
                disbursement to a first-time borrower of a loan 
                made, insured, or guaranteed under part B 
                (other than a loan made pursuant to section 
                428C or a loan made on behalf of a student 
                pursuant to section 428B) or made under part D 
                (other than a Federal Direct Consolidation Loan 
                or a Federal Direct PLUS loan made on behalf of 
                a student), ensure that the borrower receives 
                comprehensive information on the terms and 
                conditions of the loan and of the 
                responsibilities the borrower has with respect 
                to such loan in accordance with paragraph (2). 
                Such information--
                          [(i) shall be provided in a simple 
                        and understandable manner; and
                          [(ii) may be provided--
                                  [(I) during an entrance 
                                counseling session conduction 
                                in person;
                                  [(II) on a separate written 
                                form provided to the borrower 
                                that the borrower signs and 
                                returns to the institution; or
                                  [(III) online, with the 
                                borrower acknowledging receipt 
                                of the information.
                  [(B) Use of interactive programs.--The 
                Secretary shall encourage institutions to carry 
                out the requirements of subparagraph (A) 
                through the use of interactive programs that 
                test the borrower's understanding of the terms 
                and conditions of the borrower's loans under 
                part B or D, using simple and understandable 
                language and clear formatting.
          [(2) Information to be provided.--The information to 
        be provided to the borrower under paragraph (1)(A) 
        shall include the following:
                  [(A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the 
                eligibility of the borrower for other forms of 
                student financial assistance.
                  [(B) An explanation of the use of the master 
                promissory note.
                  [(C) Information on how interest accrues and 
                is capitalized during periods when the interest 
                is not paid by either the borrower or the 
                Secretary.
                  [(D) In the case of a loan made under section 
                428B or 428H, a Federal Direct PLUS Loan, or a 
                Federal Direct Unsubsidized Stafford Loan, the 
                option of the borrower to pay the interest 
                while the borrower is in school.
                  [(E) The definition of half-time enrollment 
                at the institution, during regular terms and 
                summer school, if applicable, and the 
                consequences of not maintaining half-time 
                enrollment.
                  [(F) An explanation of the importance of 
                contacting the appropriate offices at the 
                institution of higher education if the borrower 
                withdraws prior to completing the borrower's 
                program of study so that the institution can 
                provide exit counseling, including information 
                regarding the borrower's repayment options and 
                loan consolidation.
                  [(G) Sample monthly repayment amounts based 
                on--
                          [(i) a range of levels of 
                        indebtedness of--
                                  [(I) borrowers of loans under 
                                section 428 or 428H; and
                                  [(II) as appropriate, 
                                graduate borrowers of loans 
                                under section 428, 428B, or 
                                428H; or
                          [(ii) the average cumulative 
                        indebtedness of other borrowers in the 
                        same program as the borrower at the 
                        same institution.
                  [(H) The obligation of the borrower to repay 
                the full amount of the loan, regardless of 
                whether the borrower completes or does not 
                complete the program in which the borrower is 
                enrolled within the regular time for program 
                completion.
                  [(I) The likely consequences of default on 
                the loan, including adverse credit reports, 
                delinquent debt collection procedures under 
                Federal law, and litigation.
                  [(J) Information on the National Student Loan 
                Data System and how the borrower can access the 
                borrower's records.
                  [(K) The name of and contact information for 
                the individual the borrower may contact if the 
                borrower has any questions about the borrower's 
                rights and responsibilities or the terms and 
                conditions of the loan.]
  (l) Annual Financial Aid Counseling.--
          (1) Annual disclosure required.--
                  (A) In general.--Each eligible institution 
                shall ensure, and annually affirm to the 
                Secretary, that each individual enrolled at 
                such institution who receives a Federal Pell 
                Grant or a loan made under this title (other 
                than a Federal Direct Consolidation Loan or 
                Federal ONE Consolidation Loan) receives 
                comprehensive information on the terms and 
                conditions of such Federal Pell Grant or loan 
                and the responsibilities the individual has 
                with respect to such Federal Pell Grant or 
                loan. Such information shall be provided, for 
                each award year for which the individual 
                receives such Federal Pell Grant or loan, in a 
                simple and understandable manner--
                          (i) during a counseling session 
                        conducted in person;
                          (ii) online, with the individual 
                        acknowledging receipt of the 
                        information; or
                          (iii) through the use of the online 
                        counseling tool described in subsection 
                        (n)(1)(B).
                  (B) Use of interactive programs.--In the case 
                of institutions not using the online counseling 
                tool described in subsection (n)(1)(B), the 
                Secretary shall require such institutions to 
                carry out the requirements of subparagraph 
                (A)--
                          (i) through the use of interactive 
                        programs;
                          (ii) during an annual counseling 
                        session that is in-person or online 
                        that tests the individual's 
                        understanding of the terms and 
                        conditions of the Federal Pell Grant or 
                        loan awarded to the student; and
                          (iii) using simple and understandable 
                        language and clear formatting.
          (2) All individuals.--The information to be provided 
        under paragraph (1) to each individual receiving 
        counseling under this subsection shall include the 
        following:
                  (A) An explanation of how the student may 
                budget for typical educational expenses and a 
                sample budget based on the cost of attendance 
                for the institution.
                  (B) An explanation that an individual has a 
                right to annually request a disclosure of 
                information collected by a consumer reporting 
                agency pursuant to section 612(a) of the Fair 
                Credit Reporting Act (15 U.S.C. 1681j(a)).
                  (C) Based on the most recent data available 
                from the American Community Survey available 
                from the Department of Commerce, the estimated 
                average income and percentage of employment in 
                the State of domicile of the borrower for 
                persons with--
                          (i) a high school diploma or 
                        equivalent;
                          (ii) some post-secondary education 
                        without completion of a degree or 
                        certificate;
                          (iii) an associate's degree;
                          (iv) a bachelor's degree; and
                          (v) a graduate or professional 
                        degree.
                  (D) An introduction to the financial 
                management resources provided by the Financial 
                Literacy and Education Commission.
          (3) Students receiving federal pell grants.--The 
        information to be provided under paragraph (1) to each 
        student receiving a Federal Pell Grant shall include 
        the following:
                  (A) An explanation of the terms and 
                conditions of the Federal Pell Grant.
                  (B) An explanation of approved educational 
                expenses for which the student may use the 
                Federal Pell Grant.
                  (C) An explanation of why the student may 
                have to repay the Federal Pell Grant.
                  (D) An explanation of the maximum number of 
                semesters or equivalent for which the student 
                may be eligible to receive a Federal Pell 
                Grant, and a statement of the amount of time 
                remaining for which the student may be eligible 
                to receive a Federal Pell Grant.
                  (E) An explanation that if the student 
                transfers to another institution not all of the 
                student's courses may be acceptable to apply 
                toward meeting specific degree or program 
                requirements at such institution, but the 
                amount of time remaining for which a student 
                may be eligible to receive a Federal Pell 
                Grant, as provided under subparagraph (D), will 
                not change.
                  (F) An explanation of how the student may 
                seek additional financial assistance from the 
                institution's financial aid office due to a 
                change in the student's financial 
                circumstances, and the contact information for 
                such office.
          (4) Borrowers receiving loans made this title (other 
        than federal direct plus loans made on behalf of 
        dependent students or federal one parent loans).--The 
        information to be provided under paragraph (1) to a 
        borrower of a loan made under this title (other than 
        other than a Federal Direct PLUS Loan made on behalf of 
        a dependent student or a Federal ONE Parent Loan) shall 
        include the following:
                  (A) To the extent practicable, the effect of 
                accepting the loan to be disbursed on the 
                eligibility of the borrower for other forms of 
                student financial assistance.
                  (B) An explanation of the use of the master 
                promissory note.
                  (C) An explanation that the borrower is not 
                required to accept the full amount of the loan 
                offered to the borrower.
                  (D) An explanation that the borrower should 
                consider accepting any grant, scholarship, or 
                State or Federal work-study jobs for which the 
                borrower is eligible prior to accepting Federal 
                student loans.
                  (E) An explanation of treatment of loans made 
                under this title and private education loans in 
                bankruptcy, and an explanation that if a 
                borrower decides to take out a private 
                education loan--
                          (i) the borrower has the ability to 
                        select a private educational lender of 
                        the borrower's choice;
                          (ii) the proposed private education 
                        loan may impact the borrower's 
                        potential eligibility for other 
                        financial assistance, including Federal 
                        financial assistance under this title; 
                        and
                          (iii) the borrower has a right--
                                  (I) to accept the terms of 
                                the private education loan 
                                within 30 calendar days 
                                following the date on which the 
                                application for such loan is 
                                approved and the borrower 
                                receives the required 
                                disclosure documents, pursuant 
                                to section 128(e)(6) of the 
                                Truth in Lending Act; and
                                  (II) to cancel such loan 
                                within 3 business days of the 
                                date on which the loan is 
                                consummated, pursuant to 
                                section 128(e)(7) of such Act.
                  (F) An explanation of the approved 
                educational expenses for which the borrower may 
                use a loan made under this title.
                  (G) Information on the annual and aggregate 
                loan limits for a loan made under this title.
                  (H) Information on interest, including the 
                annual percentage rate of such loan, as 
                calculated using the standard 10-year repayment 
                term, and how interest accrues and is 
                capitalized during periods when the interest is 
                not paid by the borrower.
                  (I) The option of the borrower to pay the 
                interest while the borrower is in school.
                  (J) The definition of half-time enrollment at 
                the institution, during regular terms and 
                summer school, if applicable, and the 
                consequences of not maintaining at least half-
                time enrollment.
                  (K) An explanation of the importance of 
                contacting the appropriate offices at the 
                institution of higher education if the borrower 
                withdraws prior to completing the borrower's 
                program of study so that the institution can 
                provide exit counseling, including information 
                regarding the borrower's repayment options and 
                loan consolidation.
                  (L) For a first-time borrower or a borrower 
                of a loan under this title who owes no 
                principal or interest on such loan--
                          (i) a statement of the anticipated 
                        balance on the loan for which the 
                        borrower is receiving counseling under 
                        this subsection;
                          (ii) based on such anticipated 
                        balance, the anticipated monthly 
                        payment amount under, at minimum--
                                  (I) the standard repayment 
                                plan; and
                                  (II) an income-based 
                                repayment plan under section 
                                466(d) or 493C, as determined 
                                using available percentile data 
                                from the Bureau of Labor 
                                Statistics of the starting 
                                salary for the occupation in 
                                which the borrower has an 
                                interest in or intends to be 
                                employed; and
                          (iii) an estimate of the projected 
                        monthly payment amount under each 
                        repayment plan described in clause 
                        (ii), based on the average cumulative 
                        indebtedness at graduation for 
                        borrowers of loans made under this 
                        title who are in the same program of 
                        study as the borrower.
                  (M) For a borrower with an outstanding 
                balance of principal or interest due on a loan 
                made under this title--
                          (i) a current statement of the amount 
                        of such outstanding balance and 
                        interest accrued;
                          (ii) based on such outstanding 
                        balance, the anticipated monthly 
                        payment amount under the standard 
                        repayment plan, and the income-based 
                        repayment plan under section 466(d) or 
                        493C, as determined using available 
                        percentile data from the Bureau of 
                        Labor Statistics of the starting salary 
                        for the occupation the borrower intends 
                        to be employed; and
                          (iii) an estimate of the projected 
                        monthly payment amount under each 
                        repayment plan described in clause 
                        (ii), based on--
                                  (I) the outstanding balance 
                                described in clause (i);
                                  (II) the anticipated 
                                outstanding balance on the loan 
                                for which the student is 
                                receiving counseling under this 
                                subsection; and
                                  (III) a projection for any 
                                other loans made under this 
                                title that the borrower is 
                                reasonably expected to accept 
                                during the borrower's program 
                                of study based on at least the 
                                expected increase in the cost 
                                of attendance of such program.
                  (N) The obligation of the borrower to repay 
                the full amount of the loan, regardless of 
                whether the borrower completes or does not 
                complete the program in which the borrower is 
                enrolled within the regular time for program 
                completion.
                  (O) The likely consequences of default on the 
                loan, including adverse credit reports, 
                delinquent debt collection procedures under 
                Federal law, and litigation, and a notice of 
                the institution's most recent loan repayment 
                rate (as defined in section 481B) for the 
                educational program in which the borrower is 
                enrolled, an explanation of the loan repayment 
                rate, and the most recent national average loan 
                repayment rate for an educational program.
                  (P) Information on the National Student Loan 
                Data System and how the borrower can access the 
                borrower's records.
                  (Q) The contact information for the 
                institution's financial aid office or other 
                appropriate office at the institution the 
                borrower may contact if the borrower has any 
                questions about the borrower's rights and 
                responsibilities or the terms and conditions of 
                the loan.
          (5) Borrowers receiving federal direct plus loans for 
        dependent students or federal one parent loans.--The 
        information to be provided under paragraph (1) to a 
        borrower of a Federal Direct PLUS Loan for a dependent 
        student or a Federal ONE Parent Loan shall include the 
        following:
                  (A) The information described in 
                subparagraphs (A) through (C) and (N) through 
                (Q) of paragraph (4).
                  (B) An explanation of the treatment of the 
                loan and private education loans in bankruptcy.
                  (C) Information on the annual and aggregate 
                loan limits.
                  (D) Information on the annual percentage rate 
                of the loan.
                  (E) The option of the borrower to pay the 
                interest on the loan while the loan is in 
                deferment.
                  (F) For a first-time borrower of a loan or a 
                borrower of a loan under this title who owes no 
                principal or interest on such loan--
                          (i) a statement of the anticipated 
                        balance on the loan for which the 
                        borrower is receiving counseling under 
                        this subsection;
                          (ii) based on such anticipated 
                        balance, the anticipated monthly 
                        payment amount under the standard 
                        repayment plan; and
                          (iii) an estimate of the projected 
                        monthly payment amount under the 
                        standard repayment plan, based on the 
                        average cumulative indebtedness of 
                        other borrowers of loans made under 
                        this title on behalf of dependent 
                        students who are in the same program of 
                        study as the student on whose behalf 
                        the borrower borrowed the loan.
                  (G) For a borrower with an outstanding 
                balance of principal or interest due on such 
                loan--
                          (i) a statement of the amount of such 
                        outstanding balance;
                          (ii) based on such outstanding 
                        balance, the anticipated monthly 
                        payment amount under the standard 
                        repayment plan; and
                          (iii) an estimate of the projected 
                        monthly payment amount under the 
                        standard repayment plan, based on--
                                  (I) the outstanding balance 
                                described in clause (i);
                                  (II) the anticipated 
                                outstanding balance on the loan 
                                for which the borrower is 
                                receiving counseling under this 
                                subsection; and
                                  (III) a projection for any 
                                other Federal Direct PLUS Loan 
                                made on behalf of the dependent 
                                student or Federal ONE Parent 
                                Loan that the borrower is 
                                reasonably expected to accept 
                                during the program of study of 
                                such student based on at least 
                                the expected increase in the 
                                cost of attendance of such 
                                program.
                  (H) Debt management strategies that are 
                designed to facilitate the repayment of such 
                indebtedness.
                  (I) An explanation that the borrower has the 
                options to prepay each loan, pay each loan on a 
                shorter schedule, and change repayment plans.
                  (J) For each Federal Direct PLUS Loan and 
                each Federal ONE Parent Loan for which the 
                borrower is receiving counseling under this 
                subsection, the contact information for the 
                loan servicer of the loan and a link to such 
                servicer's Website.
          (6) Annual loan acceptance.--Prior to making the 
        first disbursement of a loan made under this title 
        (other than a Federal Direct Consolidation Loan or 
        Federal ONE Consolidation Loan) to a borrower for an 
        award year, an eligible institution, shall, as part of 
        carrying out the counseling requirements of this 
        subsection for the loan, ensure that after receiving 
        the applicable counseling under paragraphs (2), (4), 
        and (5) for the loan the borrower accepts the loan for 
        such award year by--
                  (A) signing the master promissory note for 
                the loan;
                  (B) signing and returning to the institution 
                a separate written statement that affirmatively 
                states that the borrower accepts the loan; or
                  (C) electronically signing an electronic 
                version of the statement described in 
                subparagraph (B).
          (7) Prohibition.--An institution of higher education 
        may not counsel a borrower of a loan under this title 
        to divorce or separate and live apart from one another 
        for the purpose of qualifying for, or obtaining an 
        increased amount of, Federal financial assistance under 
        this Act.
          (8) Construction.--Nothing in this section shall be 
        construed to prohibit an eligible institution from 
        providing additional information and counseling 
        services to recipients of Federal student aid under 
        this title.
  (m) Disclosures of Reimbursements for Service on Advisory 
Boards.--
          (1) Disclosure.--Each institution of higher education 
        participating in any program under this title shall 
        report, on an annual basis, to the Secretary, any 
        reasonable expenses paid or provided under section 
        140(d) of the Truth in Lending Act to any employee who 
        is employed in the financial aid office of the 
        institution, or who otherwise has responsibilities with 
        respect to education loans or other financial aid of 
        the institution. Such reports shall include--
                  (A) the amount for each specific instance of 
                reasonable expenses paid or provided;
                  (B) the name of the financial aid official, 
                other employee, or agent to whom the expenses 
                were paid or provided;
                  (C) the dates of the activity for which the 
                expenses were paid or provided; and
                  (D) a brief description of the activity for 
                which the expenses were paid or provided.
          (2) Report to congress.--The Secretary shall 
        summarize the information received from institutions of 
        higher education under paragraph (1) in a report and 
        transmit such report annually to the authorizing 
        committees.
  (n) Online Counseling Tools.--
          (1) In general.--Beginning not later than 1 year 
        after the date of enactment of the PROSPER Act, the 
        Secretary shall maintain--
                  (A) an online counseling tool that provides 
                the exit counseling required under subsection 
                (b) and meets the applicable requirements of 
                this subsection; and
                  (B) an online counseling tool that provides 
                the annual counseling required under subsection 
                (l) and meets the applicable requirements of 
                this subsection.
          (2) Requirements of tools.--In maintaining the online 
        counseling tools described in paragraph (1), the 
        Secretary shall ensure that each such tool is--
                  (A) consumer tested to ensure that the tool 
                is effective in helping individuals understand 
                their rights and obligations with respect to 
                borrowing a loan made this title or receiving a 
                Federal Pell Grant;
                  (B) understandable to students receiving 
                Federal Pell Grants and borrowers of loans made 
                this title; and
                  (C) freely available to all eligible 
                institutions.
          (3) Record of counseling completion.--The Secretary 
        shall--
                  (A) use each online counseling tool described 
                in paragraph (1) to keep a record of which 
                individuals have received counseling using the 
                tool, and notify the applicable institutions of 
                the individual's completion of such counseling;
                  (B) in the case of a borrower who receives 
                annual counseling for a loan made under this 
                title using the tool described in paragraph 
                (1)(B), notify the borrower by when the 
                borrower should accept, in a manner described 
                in subsection (l)(6), the loan for which the 
                borrower has received such counseling; and
                  (C) in the case of a borrower described in 
                subsection (b)(1)(B) at an institution that 
                uses the online counseling tool described in 
                paragraph (1)(A) of this subsection, the 
                Secretary shall attempt to provide the 
                information described in subsection (b)(1)(A) 
                to the borrower through such tool.
  (o) Preventing Hazing on Campus.--
          (1) Sense of congress.--It is the Sense of Congress 
        that--
                  (A) institutions of higher education should 
                have clear policies that prohibit unsafe 
                practices, such as hazing, on campus;
                  (B) institutions of higher education should 
                ensure each student organization understands 
                what is considered an unsafe practice;
                  (C) student organizations on campus should 
                ensure their policies and activities do not 
                endanger students safety or cause harm to 
                students;
                  (D) administrators and faculty should take 
                seriously any threats or acts of harm to 
                students through activities organized by 
                student organizations and act quickly to 
                prevent any potential harm to students by these 
                groups;
                  (E) institutions of higher education should 
                ensure law enforcement has access to 
                investigate any crimes committed by student 
                organizations without obstruction from the 
                students, student organization, administrators, 
                or faculty; and
                  (F) hazing is a dangerous practice and should 
                not be allowed on any campus.
          (2) Disclosure of policies.--Each institution of 
        higher education participating in any program under 
        this title shall ensure that--
                  (A) all policies and required procedures 
                related to hazing are clearly posted for 
                students, faculty, and administrators; and
                  (B) all student organizations are aware of--
                          (i) the policies described in 
                        subparagraph (A), including all 
                        prohibited activities; and
                          (ii) the dangers of hazing.
          (3) Hazing defined.--In this subsection, the term 
        ``hazing'' means any intentional, knowing, or reckless 
        act committed by a student, or a former student, of an 
        institution of higher education, whether individually 
        or with other persons, against another student, that--
                  (A) was committed in connection with an 
                initiation into, an affiliation with, or the 
                maintenance of membership in, any organization 
                that is affiliated with such institution of 
                higher education; and
                  (B)(i) contributes to a substantial risk of 
                physical injury, mental harm, or personal 
                degradation; or
                  (ii) causes physical injury, mental harm or 
                personal degradation.

           *       *       *       *       *       *       *


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

  (a) In General.--The Secretary shall implement, in 
cooperation with States, institutions of higher education, 
secondary schools, early intervention and outreach programs 
under this title, other agencies and organizations involved in 
student financial assistance and college access, public 
libraries, community centers, employers, and businesses, a 
comprehensive system of early financial aid information in 
order to provide students and families with early information 
about financial aid and early estimates of such students' 
eligibility for financial aid from multiple sources. Such 
system shall include the activities described in subsection 
(b).
  (b) Communication of Availability of Aid and Aid 
Eligibility.--
          (1) Students who receive benefits.--The Secretary 
        shall--
                  (A) make special efforts to notify students 
                who receive or are eligible to receive benefits 
                under a Federal means-tested benefit program 
                (including the supplemental nutrition 
                assistance program under the Food and Nutrition 
                Act of 2008 (7 U.S.C. 2011 et seq.)), or 
                another such benefit program as determined by 
                the Secretary, of such students' potential 
                eligibility for the Federal Pell Grant amount, 
                determined under section 401(b)(2)(A), for 
                which the student would be eligible; and
                  (B) disseminate such informational materials, 
                that are part of the system described in 
                subsection (a), as the Secretary determines 
                necessary.
          (2) Secondary school students.--[The Secretary,] To 
        improve the financial and economic literacy of students 
        and parents of students in order to make informed 
        decisions with respect to financing postsecondary 
        education, the Secretary, in cooperation with States, 
        institutions of higher education, other organizations 
        involved in college access and student financial aid, 
        secondary schools, and programs under this title that 
        serve secondary school students, shall make special 
        efforts to notify students in secondary school and 
        their families, as early as possible but not later than 
        such students' [junior year] sophomore year of 
        secondary school, of the availability of financial aid 
        under this title and shall provide nonbinding estimates 
        of the amounts of grant and loan aid that an individual 
        may be eligible for under this title upon completion of 
        an application form under section 483(a). [The 
        Secretary shall ensure that] The Secretary shall--
                  (A) ensure that  such information is as 
                accurate as possible and that such information 
                is provided in an age-appropriate format using 
                dissemination mechanisms suitable for students 
                in secondary school.
                  (B) create an online platform--
                          (i) for States, institutions of 
                        higher education, other organizations 
                        involved in college access and student 
                        financial aid, secondary schools, and 
                        programs under this title that serve 
                        secondary school students to share best 
                        practices on disseminating information 
                        under this section; and
                          (ii) on which the Secretary shall 
                        annually--
                                  (I) summarize such best 
                                practices; and
                                  (II) describe the 
                                notification and dissemination 
                                activities carried out under 
                                this section.
          (3) Adult learners.--The Secretary, in cooperation 
        with States, institutions of higher education, other 
        organizations involved in college access and student 
        financial aid, employers, workforce investment boards, 
        and public libraries, shall make special efforts to 
        provide individuals who would qualify as independent 
        students, as defined in section 480(d), with 
        information regarding the availability of financial aid 
        under this title and with nonbinding estimates of the 
        amounts of grant and loan aid that an individual may be 
        eligible for under this title upon completion of an 
        application form under section 483(a). The Secretary 
        shall ensure that such information--
                  (A) is as accurate as possible;
                  (B) includes specific information regarding 
                the availability of financial aid for students 
                qualified as independent students, as defined 
                in section 480(d); and
                  (C) uses dissemination mechanisms suitable 
                for adult learners.
          (4) Public awareness campaign.--[Not later than two 
        years after the date of enactment of the Higher 
        Education Opportunity Act, the] The Secretary, in 
        coordination with States, institutions of higher 
        education, early intervention and outreach programs 
        under this title, other agencies and organizations 
        involved in college access and student financial aid, 
        secondary schools, organizations that provide services 
        to individuals that are or were homeless, to 
        individuals in foster care, or to other disconnected 
        individuals, local educational agencies, public 
        libraries, community centers, businesses, employers, 
        employment services, workforce investment boards, and 
        movie theaters, shall continue to implement a public 
        awareness campaign in order to increase national 
        awareness regarding the availability of financial aid 
        under this title. The public awareness campaign shall 
        disseminate accurate information regarding the 
        availability of financial aid under this title and 
        shall be implemented, to the extent practicable, using 
        a variety of media, including print, television, radio, 
        and [the Internet] the Internet, including through 
        social media. The Secretary shall design and implement 
        the public awareness campaign based upon relevant 
        independent research and the information and 
        dissemination strategies found most effective in 
        implementing paragraphs (1) through (3).
   (c) Online Estimator Tool.--
          (1) In general.--Not later than 1 year after the date 
        of enactment of the PROSPER Act, the Secretary, in 
        consultation with States, institutions of higher 
        education, and other individuals with experience or 
        expertise in student financial assistance application 
        processes, shall develop an early estimator tool to be 
        available online and through a mobile application, 
        which--
                  (A) allows an individual to--
                          (i) enter basic financial and other 
                        relevant information; and
                          (ii) on the basis of such 
                        information, receive non-binding 
                        estimates of potential Federal grant, 
                        loan, or work study assistance under 
                        this title for which a student may be 
                        eligible upon completion of an 
                        application form under section 483(a);
                  (B) with respect to each institution of 
                higher education that participates in a program 
                under this title selected by an individual for 
                purposes of the estimator tool, provides the 
                individual with the net price (as defined in 
                section 132) for the income category described 
                in paragraph (2) that is determined on the 
                basis of the information under subparagraph 
                (A)(i) of this paragraph entered by the 
                individual;
                  (C) includes a clear and conspicuous 
                disclaimer that the amounts calculated using 
                the estimator tool are estimates based on 
                limited financial information, and that--
                          (i) each such estimate--
                                  (I) in the case of an 
                                estimate under subparagraph 
                                (A), is only an estimate and 
                                does not represent a final 
                                determination, or actual award, 
                                of financial assistance under 
                                this title;
                                  (II) in the case of an 
                                estimate under subparagraph 
                                (B), is only an estimate and 
                                not a guarantee of the actual 
                                amount that a student may be 
                                charged;
                                  (III) shall not be binding on 
                                the Secretary or an institution 
                                of higher education; and
                                  (IV) may change; and
                          (ii) a student must complete an 
                        application form under section 483(a) 
                        in order to be eligible for, and 
                        receive, an actual financial aid award 
                        that includes Federal grant, loan, or 
                        work study assistance under this title; 
                        and
                  (D) includes a clear and conspicuous 
                explanation of the differences between a grant 
                and a loan, and that an individual will be 
                required to repay any loan borrowed by the 
                individual.
          (2) Income categories.--The income categories for 
        purposes of paragraph (1)(B) are as follows:
                  (A) $0 to $30,000.
                  (B) $30,001 to $48,000.
                  (C) $48,001 to $75,000.
                  (D) $75,001 to $110,000.
                  (E) $110,001 to $150,000.
                  (F) Over $150,000.
          (3) Consumer testing.--In developing and maintaining 
        the estimator tool described in paragraph (1), the 
        Secretary shall conduct consumer testing with 
        appropriate persons, including current and prospective 
        college students, family members of such students, and 
        other individuals with expertise in student financial 
        assistance application processes and college access, to 
        ensure that such tool is easily understandable by 
        students and families and effective in communicating 
        early aid eligibility.
          (4) Data storage prohibited.--In carrying out this 
        subsection, the Secretary shall not keep, store, or 
        warehouse any data inputted by individuals accessing 
        the tool described in paragraph (1).
  (d) Pell Table.--
          (1) In general.--The Secretary shall develop, and 
        annually update at the beginning of each award year, 
        the following electronic tables to be utilized in 
        carrying out this section and containing the 
        information described in paragraph (2) of this 
        subsection:
                  (A) An electronic table for dependent 
                students.
                  (B) An electronic table for independent 
                students with dependents other than a spouse.
                  (C) An electronic table for independent 
                students without dependents other than a 
                spouse.
          (2) Information.--Each electronic table under 
        paragraph (1), with respect to the category of students 
        to which the table applies for the most recently 
        completed award year for which information is 
        available, and disaggregated in accordance with 
        paragraph (3), shall contain the following information:
                  (A) The percentage of undergraduate students 
                attending an institution of higher education on 
                a full-time, full-academic year basis who file 
                the financial aid form prescribed under section 
                483 for the award year and received, for their 
                first academic year during such award year (and 
                not for any additional payment periods after 
                such first academic year), the following:
                          (i) A Federal Pell Grant equal to the 
                        maximum amount of a Federal Pell Grant 
                        award determined under section 
                        401(b)(2) for such award year.
                          (ii) A Federal Pell Grant in an 
                        amount that is--
                                  (I) less than the maximum 
                                amount described in clause (i); 
                                and
                                  (II) not less than 3/4 of 
                                such maximum amount for such 
                                award year.
                          (iii) A Federal Pell Grant in an 
                        amount that is--
                                  (I) less than 3/4 of such 
                                maximum amount; and
                                  (II) not less than 1/2 of 
                                such maximum amount for such 
                                award year.
                          (iv) A Federal Pell Grant in an 
                        amount that is--
                                  (I) less than 1/2 of such 
                                maximum amount; and
                                  (II) not less than the 
                                minimum Federal Pell Grant 
                                amount determined under section 
                                401(b)(4) for such award year.
                  (B) The dollar amounts equal to--
                          (i) the maximum amount of a Federal 
                        Pell Grant award determined under 
                        section 401(b)(2) for an award year;
                          (ii) 3/4 of such maximum amount;
                          (iii) 1/2 of such maximum amount; and
                          (iv) the minimum Federal Pell Grant 
                        amount determined under section 
                        401(b)(4) for such award year.
                  (C) A clear and conspicuous notice that--
                          (i) the Federal Pell Grant amounts 
                        listed in subparagraph (B) are for a 
                        previous award year, and such amounts 
                        and the requirements for awarding such 
                        amounts may be different for succeeding 
                        award years; and
                          (ii) the Federal Pell Grant amount 
                        for which a student may be eligible 
                        will be determined based on a number of 
                        factors, including enrollment status, 
                        once the student completes an 
                        application form under section 483(a).
                  (D) A link to the early estimator tool 
                described in subsection (c) of this section, 
                which includes an explanation that an 
                individual may estimate a student's potential 
                Federal aid eligibility under this title by 
                accessing the estimator on the individual's 
                mobile phone or online.
          (3) Income categories.--The information provided 
        under paragraph (2)(A) shall be disaggregated by the 
        following income categories:
                  (A) Less than $5,000.
                  (B) $5,000 to $9,999.
                  (C) $10,000 to $19,999.
                  (D) $20,000 to $29,999.
                  (E) $30,000 to $39,999.
                  (F) $40,000 to $49,999.
                  (G) $50,000 to $59,999.
                  (H) Greater than $59,999.
  (e) Limitation.--The Secretary may not require a State to 
participate in the activities or disseminate the materials 
described in this section.

[SEC. 486. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

  [(a) Purpose.--It is the purpose of this section--
          [(1) to allow demonstration programs that are 
        strictly monitored by the Department of Education to 
        test the quality and viability of expanded distance 
        education programs currently restricted under this Act;
          [(2) to provide for increased student access to 
        higher education through distance education programs; 
        and
          [(3) to help determine--
                  [(A) the most effective means of delivering 
                quality education via distance education course 
                offerings;
                  [(B) the specific statutory and regulatory 
                requirements which should be altered to provide 
                greater access to high quality 
                distanceeducation programs; and
                  [(C) the appropriate level of Federal 
                assistance for students enrolled in distance 
                education programs.
  [(b) Demonstration Programs Authorized.--
          [(1) In general.--In accordance with the provisions 
        of subsection (d), the Secretary is authorized to 
        select institutions of higher education, systems of 
        such institutions, or consortia of such institutions 
        for voluntary participation in a Distance Education 
        Demonstration Program that provides participating 
        institutions with the ability to offer distance 
        education programs that do not meet all or a portion of 
        the sections or regulations described in paragraph (2).
          [(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), 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) Eligible institutions.--Except as 
                provided in subparagraphs (B), (C), and (D), 
                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(a)(1)(C) 
                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, 
                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) Requirement.--Notwithstanding any other 
                provision of this paragraph, Western Governors 
                University shall be considered eligible to 
                participate in the demonstration program 
                authorized under this section. In addition to 
                the waivers described in paragraph (2), the 
                Secretary may waive the provisions of title I 
                and parts G and H of this title for such 
                university that the Secretary determines to be 
                appropriate because of the unique 
                characteristics of such university. In carrying 
                out the preceding sentence, the Secretary shall 
                ensure that adequate program integrity and 
                accountability measures apply to such 
                university's participation in the demonstration 
                program authorized under this section.
  [(c) Application.--
          [(1) In general.--Each institution, system, or 
        consortium of institutions desiring to participate in a 
        demonstration program under this section shall submit 
        an application to the Secretary at such time and in 
        such manner as the Secretary may require.
          [(2) Contents.--Each application shall include--
                  [(A) a description of the institution, 
                system, or consortium's consultation with a 
                recognized accrediting agency or association 
                with respect to quality assurances for the 
                distance education programs to be offered;
                  [(B) a description of the statutory and 
                regulatory requirements described in subsection 
                (b)(2) or, if applicable, subsection (b)(3)(D) 
                for which a waiver is sought and the reasons 
                for which the waiver is sought;
                  [(C) a description of the distance education 
                programs to be offered;
                  [(D) a description of the students to whom 
                distance education programs will be offered;
                  [(E) an assurance that the institution, 
                system, or consortium will offer full 
                cooperation with the ongoing evaluations of the 
                demonstration program provided for in this 
                section; and
                  [(F) such other information as the Secretary 
                may require.
  [(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 of the demonstration program authorized 
        under this section, the Secretary may select not more 
        than 35 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).
          [(2) Considerations.--In selecting institutions to 
        participate in the demonstration program in the first 
        or succeeding years of the program, the Secretary shall 
        take into account--
                  [(A) the number and quality of applications 
                received;
                  [(B) the Department's capacity to oversee and 
                monitor each institution's participation;
                  [(C) an institution's--
                          [(i) financial responsibility;
                          [(ii) administrative capability; and
                          [(iii) program or programs being 
                        offered via distance education; and
                  [(D) ensuring 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, 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) Evaluation.--The Secretary shall evaluate the 
        demonstration programs authorized under this section on 
        an annual basis. Such evaluations specifically shall 
        review--
                  [(A) the extent to which the institution, 
                system or consortium has met the goals set 
                forth in its application to the Secretary, 
                including the measures of program quality 
                assurance;
                  [(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 for distance education;
                  [(D) effective technologies for delivering 
                distance education course offerings; and
                  [(E) 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 development and use of 
        distance education and other nontraditional methods of 
        expanding access to education.
          [(3) Annual reports.--The Secretary shall provide 
        reports to the authorizing committees on an annual 
        basis regarding--
                  [(A) the demonstration programs authorized 
                under this section; and
                  [(B) the number and types of students 
                receiving assistance under this title for 
                instruction leading to a recognized 
                certificate, as provided for in section 
                484(l)(1), including the progress of such 
                students toward recognized certificates and the 
                degree to which participation in such programs 
                leading to such certificates increased.
  [(g) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a 
continuing basis--
          [(1) assure compliance of institutions, systems or 
        consortia with the requirements of this title (other 
        than the sections and regulations that are waived under 
        subsections (b)(2) and (b)(3)(D));
          [(2) provide technical assistance;
          [(3) monitor fluctuations in the student population 
        enrolled in the participating institutions, systems or 
        consortia; and
          [(4) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory 
        authorities.
  [(h) Definition.--For the purpose of this section, the term 
``distance education'' means an educational process that is 
characterized by the separation, in time or place, between 
instructor and student. Such term may include courses offered 
principally through the use of--
          [(1) television, audio, or computer transmission, 
        such as open broadcast, closed circuit, cable, 
        microwave, or satellite transmission;
          [(2) audio or computer conferencing;
          [(3) video cassettes or discs; or
          [(4) correspondence.]

           *       *       *       *       *       *       *


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) The institution will use funds received by it for 
        any program under this title and any interest or other 
        earnings thereon solely for the purpose specified in 
        and in accordance with the provision of that program.
          (2) The institution shall not charge any student a 
        fee for processing or handling any application, form, 
        or data required to determine the student's eligibility 
        for assistance under this title or the amount of such 
        assistance.
          (3) The institution will establish and maintain such 
        administrative and fiscal procedures and records as may 
        be necessary to ensure proper and efficient 
        administration of funds received from the Secretary or 
        from students under this title, together with 
        assurances that the institution will provide, upon 
        request and in a timely fashion, information relating 
        to the administrative capability and financial 
        responsibility of the institution to--
                  (A) the Secretary;
                  (B) the appropriate guaranty agency; and
                  (C) the appropriate accrediting agency or 
                association.
          (4) The institution will comply with the provisions 
        of subsection (c) of this section and the regulations 
        prescribed under that subsection, relating to fiscal 
        eligibility.
          (5) The institution will submit reports to the 
        Secretary [and, in the case of an institution 
        participating in a program under part B or part E, to 
        holders of loans made to the institution's students 
        under such parts] at such times and containing such 
        information as the Secretary may reasonably require to 
        carry out the purpose of this title.
          [(6) The institution will not provide any student 
        with any statement or certification to any lender under 
        part B that qualifies the student for a loan or loans 
        in excess of the amount that student is eligible to 
        borrow in accordance with sections 425(a), 428(a)(2), 
        and 428(b)(1) (A) and (B).]
          [(7)] (6) The institution will comply with the 
        requirements of section 485.
          [(8)] (7) In the case of an institution that 
        advertises job placement rates as a means of attracting 
        students to enroll in the institution, the institution 
        will make available to prospective students, at or 
        before the time of application (A) the most recent 
        available data concerning employment statistics, 
        graduation statistics, and any other information 
        necessary to substantiate the truthfulness of the 
        advertisements, and (B) relevant State licensing 
        requirements of the State in which such institution is 
        located for any job for which the course of instruction 
        is designed to prepare such prospective students.
          [(9)] (8) In the case of an institution participating 
        [in a program under part B or D] in a loan program 
        under this title, the institution will inform all 
        eligible borrowers enrolled in the institution about 
        the availability and eligibility of such borrowers for 
        State grant assistance from the State in which the 
        institution is located, and will inform such borrowers 
        from another State of the source for further 
        information concerning such assistance from that State.
          [(10)] (9) The institution certifies that it has in 
        operation a drug abuse prevention program under section 
        118 that is determined by the institution to be 
        accessible to any officer, employee, or student at the 
        institution.
          [(11)] (10) In the case of any institution whose 
        students receive financial assistance pursuant to 
        section 484(d), the institution will make available to 
        such students a program proven successful in assisting 
        students in obtaining a certificate of high school 
        equivalency.
          [(12)] (11) The institution certifies that--
                  (A) the institution has established a campus 
                security policy; and
                  (B) the institution has complied with the 
                disclosure requirements of section 485(f).
          [(13)] (12) The institution will not deny any form of 
        Federal financial aid to any student who meets the 
        eligibility requirements of this title on the grounds 
        that the student is participating in a program of study 
        abroad approved for credit by the institution.
          [(14)] (13)(A) The institution, in order to 
        participate as an eligible institution [under part B or 
        D] a loan program under this title, will develop a 
        [Default Management Plan] Repayment Success Plan for 
        approval by the Secretary as part of its initial 
        application for certification as an eligible 
        institution and will implement such Plan for two years 
        thereafter.
          (B) Any institution of higher education which changes 
        ownership and any eligible institution which changes 
        its status as a parent or subordinate institution 
        shall, in order to participate as an eligible 
        institution [under part B or D] a loan program under 
        this title, develop a [Default Management Plan] 
        Repayment Success Plan for approval by the Secretary 
        and implement such Plan for two years after its change 
        of ownership or status.
          (C) This paragraph shall not apply in the case of an 
        institution in which (i) neither the parent nor the 
        subordinate institution has [a cohort default rate in 
        excess of 10 percent] any program with a loan repayment 
        rate less than 65 percent, and (ii) the new owner of 
        such parent or subordinate institution does not, and 
        has not, owned any other institution with [a cohort 
        default rate in excess of 10 percent] any program with 
        a loan repayment rate less than 65 percent.
          [(15)] (14) The institution acknowledges the 
        authority of the Secretary, guaranty agencies, lenders, 
        accrediting agencies, the Secretary of Veterans 
        Affairs, and the State agencies under subpart 1 of part 
        H to share with each other any information pertaining 
        to the institution's eligibility to participate in 
        programs under this title or any information on fraud 
        and abuse.
          [(16)] (15)(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, 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 has been judicially 
        determined to have committed fraud involving funds 
        under this title 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 who has been 
        judicially determined to have committed fraud involving 
        funds under this title.
          (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
                  (ii) judicially determined to have committed 
                fraud involving funds under this title.
          [(17)] (16) The institution will complete surveys 
        conducted as a part of the Integrated Postsecondary 
        Education Data System (IPEDS) or any other Federal 
        postsecondary institution data collection effort, as 
        designated by the Secretary, in a timely manner and to 
        the satisfaction of the Secretary.
          [(18)] (17) The institution will meet the 
        requirements established pursuant to section 485(g).
          [(19)] (18) The institution will not impose any 
        penalty, including the assessment of late fees, the 
        denial of access to classes, libraries, or other 
        institutional facilities, or the requirement that the 
        student borrow additional funds, on any student because 
        of the student's inability to meet his or her financial 
        obligations to the institution as a result of the 
        delayed disbursement of the proceeds of a loan made 
        under this title due to compliance with the provisions 
        of this title, or delays attributable to the 
        institution.
          [(20)] (19) [The institution] (A) Except as provided 
        in subparagraph (B), the institution  will not provide 
        any commission, bonus, or other incentive payment based 
        directly or indirectly on success in securing 
        enrollments or financial aid to any persons or entities 
        engaged in any student recruiting or admission 
        activities or in making decisions regarding the award 
        of student financial assistance, except that this 
        paragraph shall not apply to the recruitment of foreign 
        students residing in foreign countries who are not 
        eligible to receive Federal student assistance.
          (B) An institution described in section 101 may 
        provide payment, based on--
                  (i) the amount of tuition generated by the 
                institution from student enrollment, to a 
                third-party entity that provides a set of 
                services to the institution that includes 
                student recruitment services, regardless of 
                whether the third-party entity is affiliated 
                with an institution that provides educational 
                services other than the institution providing 
                such payment, if--
                          (I) the third-party entity is not 
                        affiliated with the institution 
                        providing such payment;
                          (II) the third-party entity does not 
                        make compensation payments to its 
                        employees that would be prohibited 
                        under subparagraph (A) if such payments 
                        were made by the institution;
                          (III) the set of services provided to 
                        the institution by the third-party 
                        entity include services in addition to 
                        student recruitment services, and the 
                        institution does not pay the third-
                        party entity solely or separately for 
                        student recruitment services provided 
                        by the third-party entity; and
                          (IV) any student recruitment 
                        information available to the third-
                        party entity, including personally 
                        identifiable information, will not be 
                        used by, shared with, or sold to any 
                        other person or entity, including any 
                        institution that is affiliated with the 
                        third-party entity, unless written 
                        consent is provided by the student; and
                  (ii) students successfully completing their 
                educational programs, to persons who were 
                engaged in recruiting such students, but solely 
                to the extent that such payments--
                          (I) are obligated to be paid, and are 
                        actually paid, only after each student 
                        upon whom such payments are based has 
                        successfully completed his or her 
                        educational program; and
                          (II) are paid only to employees of 
                        the institution or its parent company, 
                        and not to any other person or outside 
                        entity.
          [(21)] (20) The institution will meet the 
        requirements established by the Secretary and 
        accrediting agencies or associations, and will provide 
        evidence to the Secretary that the institution has the 
        authority to operate [within a State] within a State in 
        which it maintains a physical location.
          [(22)] (21) The institution will comply with the 
        refund policy established pursuant to section 484B.
          [(23)(A) The institution, if located in a State to 
        which section 4(b) of the National Voter Registration 
        Act of 1993 (42 U.S.C. 1973gg-2(b)) does not apply, 
        will make a good faith effort to distribute a mail 
        voter registration form, requested and received from 
        the State, to each student enrolled in a degree or 
        certificate program and physically in attendance at the 
        institution, and to make such forms widely available to 
        students at the institution.
          [(B) The institution shall request the forms from the 
        State 120 days prior to the deadline for registering to 
        vote within the State. If an institution has not 
        received a sufficient quantity of forms to fulfill this 
        section from the State within 60 days prior to the 
        deadline for registering to vote in the State, the 
        institution shall not be held liable for not meeting 
        the requirements of this section during that election 
        year.
          [(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) The institution shall be considered in 
                compliance with the requirements of 
                subparagraph (A) for each student to whom the 
                institution electronically transmits a message 
                containing a voter registration form acceptable 
                for use in the State in which the institution 
                is located, or an Internet address where such a 
                form can be downloaded, if such information is 
                in an electronic message devoted exclusively to 
                voter registration.
          [(24) In the case of a proprietary institution of 
        higher education (as defined in section 102(b)), such 
        institution will derive not less than ten percent of 
        such institution's revenues from sources other than 
        funds provided under this title, as calculated in 
        accordance with subsection (d)(1), or will be subject 
        to the sanctions described in subsection (d)(2).]
          (22) The institution, if located in a State to which 
        section 4(b) of the National Voter Registration Act of 
        1993 (42 U.S.C. 1973gg-2(b)) does not apply, will make 
        a good faith effort to distribute, including through 
        electronic transmission, voter registration forms to 
        students enrolled and physically in attendance at the 
        institution.
          [(25)] (23) In the case of an institution that 
        participates in a loan program under this title, the 
        institution will--
                  (A) develop a code of conduct with respect to 
                such loans with which the institution's 
                officers, employees, and agents shall comply, 
                that--
                          (i) prohibits a conflict of interest 
                        with the responsibilities of an 
                        officer, employee, or agent of an 
                        institution with respect to such loans; 
                        and
                          (ii) at a minimum, includes the 
                        provisions described in subsection (e);
                  (B) publish such code of conduct prominently 
                on the institution's website; and
                  (C) administer and enforce such code by, at a 
                minimum, requiring that all of the 
                institution's officers, employees, and agents 
                with responsibilities with respect to such 
                loans be annually informed of the provisions of 
                the code of conduct.
          [(26)] (24) The institution will, upon written 
        request, disclose to the alleged victim of any crime of 
        violence (as that term is defined in section 16 of 
        title 18, United States Code), or a nonforcible sex 
        offense, the report on the results of any disciplinary 
        proceeding conducted by such institution against a 
        student who is the alleged perpetrator of such crime or 
        offense with respect to such crime or offense. If the 
        alleged victim of such crime or offense is deceased as 
        a result of such crime or offense, the next of kin of 
        such victim shall be treated as the alleged victim for 
        purposes of this paragraph.
          [(27)] (25) In the case of an institution that has 
        entered into a preferred lender arrangement, the 
        institution will at least annually compile, maintain, 
        and make available for students attending the 
        institution, and the families of such students, a list, 
        in print or other medium, of the specific lenders for 
        loans made, insured, or guaranteed under this title or 
        private education loans that the institution 
        recommends, promotes, or endorses in accordance with 
        such preferred lender arrangement. In making such list, 
        the institution shall comply with the requirements of 
        subsection (h).
          [(28)] (26)(A) The institution will, upon the request 
        of an applicant for a private education loan, provide 
        to the applicant the form required under section 
        128(e)(3) of the Truth in Lending Act (15 U.S.C. 
        1638(e)(3)), and the information required to complete 
        such form, to the extent the institution possesses such 
        information.
          (B) For purposes of this paragraph, the term 
        ``private education loan'' has the meaning given such 
        term in section 140 of the Truth in Lending Act.
          [(29) The institution certifies that the 
        institution--
                  [(A) has developed plans to effectively 
                combat the unauthorized distribution of 
                copyrighted material, including through the use 
                of a variety of technology-based deterrents; 
                and
                  [(B) will, to the extent practicable, offer 
                alternatives to illegal downloading or peer-to-
                peer distribution of intellectual property, as 
                determined by the institution in consultation 
                with the chief technology officer or other 
                designated officer of the institution.]
          (27) The institution will have a policy prohibiting 
        copyright infringement.
  (b) Hearings.--(1) An institution that has received written 
notice of a final audit or program review determination and 
that desires to have such determination reviewed by the 
Secretary shall submit to the Secretary a written request for 
review not later than 45 days after receipt of notification of 
the final audit or program review determination.
  (2) The Secretary shall, upon receipt of written notice under 
paragraph (1), arrange for a hearing and notify the institution 
within 30 days of receipt of such notice the date, time, and 
place of such hearing. Such hearing shall take place not later 
than 120 days from the date upon which the Secretary notifies 
the institution.
  (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;
          (ii) with regard to an eligible institution which is 
        audited under chapter 75 of title 31, United States 
        Code, deeming such audit to satisfy the requirements of 
        clause (i) for the period covered by such audit; or
          (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(a)(1)) 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);
          (B) in matters not governed by specific program 
        provisions, the establishment of reasonable standards 
        of financial responsibility and appropriate 
        institutional capability for the administration by an 
        eligible institution of a program of student financial 
        aid under this title, including any matter the 
        Secretary deems necessary to the sound administration 
        of the financial aid programs, such as the pertinent 
        actions of any owner, shareholder, or person exercising 
        control over an eligible institution;
          (C)(i) except as provided in clause (ii), a 
        compliance audit of a third party servicer (other than 
        with respect to the servicer's functions as a lender if 
        such functions are otherwise audited under this part 
        and such audits meet the requirements of this clause), 
        with regard to any contract with an eligible 
        institution, guaranty agency, or lender for 
        administering or servicing any aspect of the student 
        assistance programs under this title, at least once 
        every year 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; 
        or
          (ii) with regard to a third party servicer that is 
        audited under chapter 75 of title 31, United States 
        Code, such audit shall be deemed to satisfy the 
        requirements of clause (i) for the period covered by 
        such audit;
          (D)(i) a compliance audit of a secondary market with 
        regard to its transactions involving, and its servicing 
        and collection of, loans made under this title, at 
        least once a year 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; or
          (ii) with regard to a secondary market that is 
        audited under chapter 75 of title 31, United States 
        Code, such audit shall be deemed to satisfy the 
        requirements of clause (i) for the period covered by 
        the audit;
          (E) the establishment, by each eligible institution 
        under part B responsible for furnishing to the lender 
        the statement required by section 428(a)(2)(A)(i), of 
        policies and procedures by which the latest known 
        address and enrollment status of any student who has 
        had a loan insured under this part and who has either 
        formally terminated his enrollment, or failed to re-
        enroll on at least a half-time basis, at such 
        institution, shall be furnished either to the holder 
        (or if unknown, the insurer) of the note, not later 
        than 60 days after such termination or failure to re-
        enroll;
          (F) the limitation, suspension, or termination of the 
        participation in any program under this title of an 
        eligible institution, or the imposition of a civil 
        penalty under paragraph (3)(B) whenever the Secretary 
        has determined, after reasonable notice and opportunity 
        for hearing, that such institution has violated or 
        failed to carry out any provision of this title, any 
        regulation prescribed under this title, or any 
        applicable special arrangement, agreement, or 
        limitation, except that no period of suspension under 
        this section shall exceed 60 days unless the 
        institution and the Secretary agree to an extension or 
        unless limitation or termination proceedings are 
        initiated by the Secretary within that period of time;
          (G) an emergency action against an institution, under 
        which the Secretary shall, effective on the date on 
        which a notice and statement of the basis of the action 
        is mailed to the institution (by registered mail, 
        return receipt requested), withhold funds from the 
        institution or its students and withdraw the 
        institution's authority to obligate funds under any 
        program under this title, if the Secretary--
                  (i) receives information, determined by the 
                Secretary to be reliable, that the institution 
                is violating any provision of this title, any 
                regulation prescribed under this title, or any 
                applicable special arrangement, agreement, or 
                limitation,
                  (ii) determines that immediate action is 
                necessary to prevent misuse of Federal funds, 
                and
                  (iii) determines that the likelihood of loss 
                outweighs the importance of the procedures 
                prescribed under subparagraph (D) for 
                limitation, suspension, or termination,
        except that an emergency action shall not exceed 30 
        days unless limitation, suspension, or termination 
        proceedings are initiated by the Secretary against the 
        institution within that period of time, and except that 
        the Secretary shall provide the institution an 
        opportunity to show cause, if it so requests, that the 
        emergency action is unwarranted;
          (H) the limitation, suspension, or termination of the 
        eligibility of a third party servicer to contract with 
        any institution to administer any aspect of an 
        institution's student assistance program under this 
        title, or the imposition of a civil penalty under 
        paragraph (3)(B), whenever the Secretary has 
        determined, after reasonable notice and opportunity for 
        a hearing, that such organization, acting on behalf of 
        an institution, has violated or failed to carry out any 
        provision of this title, any regulation prescribed 
        under this title, or any applicable special 
        arrangement, agreement, or limitation, except that no 
        period of suspension under this subparagraph shall 
        exceed 60 days unless the organization and the 
        Secretary agree to an extension, or unless limitation 
        or termination proceedings are initiated by the 
        Secretary against the individual or organization within 
        that period of time; and
          (I) an emergency action against a third party 
        servicer that has contracted with an institution to 
        administer any aspect of the institution's student 
        assistance program under this title, under which the 
        Secretary shall, effective on the date on which a 
        notice and statement of the basis of the action is 
        mailed to such individual or organization (by 
        registered mail, return receipt requested), withhold 
        funds from the individual or organization and withdraw 
        the individual or organization's authority to act on 
        behalf of an institution under any program under this 
        title, if the Secretary--
                  (i) receives information, determined by the 
                Secretary to be reliable, that the individual 
                or organization, acting on behalf of an 
                institution, is violating any provision of this 
                title, any regulation prescribed under this 
                title, or any applicable special arrangement, 
                agreement, or limitation,
                  (ii) determines that immediate action is 
                necessary to prevent misuse of Federal funds, 
                and
                  (iii) determines that the likelihood of loss 
                outweighs the importance of the procedures 
                prescribed under subparagraph (F), for 
                limitation, suspension, or termination,
        except that an emergency action shall not exceed 30 
        days unless the limitation, suspension, or termination 
        proceedings are initiated by the Secretary against the 
        individual or organization within that period of time, 
        and except that the Secretary shall provide the 
        individual or organization an opportunity to show 
        cause, if it so requests, that the emergency action is 
        unwarranted.
  (2) If an individual who, or entity that, exercises 
substantial control, as determined by the Secretary in 
accordance with the definition of substantial control in 
subpart 3 of part H, over one or more institutions 
participating in any program under this title, or, for purposes 
of paragraphs (1) (H) and (I), over one or more organizations 
that contract with an institution to administer any aspect of 
the institution's student assistance program under this title, 
is determined to have committed one or more violations of the 
requirements of any program under this title, or has been 
suspended or debarred in accordance with the regulations of the 
Secretary, the Secretary may use such determination, 
suspension, or debarment as the basis for imposing an emergency 
action on, or limiting, suspending, or terminating, in a single 
proceeding, the participation of any or all institutions under 
the substantial control of that individual or entity.
  (3)(A) Upon determination, after reasonable notice and 
opportunity for a hearing, that an eligible institution has 
engaged in substantial misrepresentation of the nature of its 
educational program, its financial charges, or the 
employability of its graduates, the Secretary may suspend or 
terminate the eligibility status for any or all programs under 
this title of any otherwise eligible institution, in accordance 
with procedures specified in paragraph (1)(D) of this 
subsection, until the Secretary finds that such practices have 
been corrected.
  (B)(i) Upon determination, after reasonable notice and 
opportunity for a hearing, that an eligible institution--
          (I) has violated or failed to carry out any provision 
        of this title or any regulation prescribed under this 
        title; or
          (II) has engaged in substantial misrepresentation of 
        the nature of its educational program, its financial 
        charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution 
of not to exceed $25,000 for each violation or 
misrepresentation.
  (ii) Any civil penalty may be compromised by the Secretary. 
In determining the amount of such penalty, or the amount agreed 
upon in compromise, the appropriateness of the penalty to the 
size of the institution of higher education subject to the 
determination, and the gravity of the violation, failure, or 
misrepresentation shall be considered. The amount of such 
penalty, when finally determined, or the amount agreed upon in 
compromise, may be deducted from any sums owing by the United 
States to the institution charged.
  (4) The Secretary shall publish a list of State agencies 
which the Secretary determines to be reliable authority as to 
the quality of public postsecondary vocational education in 
their respective States for the purpose of determining 
eligibility for all Federal student assistance programs.
  (5) The Secretary shall make readily available to appropriate 
guaranty agencies, eligible lenders, State agencies notifying 
the Secretary under subpart 1 of part H, and accrediting 
agencies or associations the results of the audits of eligible 
institutions conducted pursuant to paragraph (1)(A).
  (6) The Secretary is authorized to provide any information 
collected as a result of audits conducted under this section, 
together with audit information collected by guaranty agencies, 
to any Federal or State agency having responsibilities with 
respect to student financial assistance, including those 
referred to in subsection (a)(15) of this section.
  (7) Effective with respect to any audit conducted under this 
subsection after December 31, 1988, if, in the course of 
conducting any such audit, the personnel of the Department of 
Education discover, or are informed of, grants or other 
assistance provided by an institution in accordance with this 
title for which the institution has not received funds 
appropriated under this title (in the amount necessary to 
provide such assistance), including funds for which 
reimbursement was not requested prior to such discovery or 
information, such institution shall be permitted to offset that 
amount against any sums determined to be owed by the 
institution pursuant to such audit, or to receive reimbursement 
for that amount (if the institution does not owe any such 
sums).
  [(d) Implementation of Non-Title IV Revenue Requirement.--
          [(1) Calculation.--In making calculations under 
        subsection (a)(24), a proprietary institution of higher 
        education shall--
                  [(A) use the cash basis of accounting, except 
                in the case of loans described in subparagraph 
                (D)(i) that are made by the proprietary 
                institution of higher education;
                  [(B) consider as revenue only those funds 
                generated by the institution from--
                          [(i) tuition, fees, and other 
                        institutional charges for students 
                        enrolled in programs eligible for 
                        assistance under this title;
                          [(ii) activities conducted by the 
                        institution that are necessary for the 
                        education and training of the 
                        institution's students, if such 
                        activities are--
                                  [(I) conducted on campus or 
                                at a facility under the control 
                                of the institution;
                                  [(II) performed under the 
                                supervision of a member of the 
                                institution's faculty; and
                                  [(III) required to be 
                                performed by all students in a 
                                specific educational program at 
                                the institution; and
                          [(iii) funds paid by a student, or on 
                        behalf of a student by a party other 
                        than the institution, for an education 
                        or training program that is not 
                        eligible for funds under this title, if 
                        the program--
                                  [(I) is approved or licensed 
                                by the appropriate State 
                                agency;
                                  [(II) is accredited by an 
                                accrediting agency recognized 
                                by the Secretary; or
                                  [(III) provides an industry-
                                recognized credential or 
                                certification;
                  [(C) presume that any funds for a program 
                under this title that are disbursed or 
                delivered to or on behalf of a student will be 
                used to pay the student's tuition, fees, or 
                other institutional charges, regardless of 
                whether the institution credits those funds to 
                the student's account or pays those funds 
                directly to the student, except to the extent 
                that the student's tuition, fees, or other 
                institutional charges are satisfied by--
                          [(i) grant funds provided by non-
                        Federal public agencies or private 
                        sources independent of the institution;
                          [(ii) funds provided under a 
                        contractual arrangement with a Federal, 
                        State, or local government agency for 
                        the purpose of providing job training 
                        to low-income individuals who are in 
                        need of that training;
                          [(iii) funds used by a student from 
                        savings plans for educational expenses 
                        established by or on behalf of the 
                        student and which qualify for special 
                        tax treatment under the Internal 
                        Revenue Code of 1986; or
                          [(iv) institutional scholarships 
                        described in subparagraph (D)(iii);
                  [(D) include institutional aid as revenue to 
                the school only as follows:
                          [(i) in the case of loans made by a 
                        proprietary institution of higher 
                        education on or after July 1, 2008 and 
                        prior to July 1, 2012, the net present 
                        value of such loans made by the 
                        institution during the applicable 
                        institutional fiscal year accounted for 
                        on an accrual basis and estimated in 
                        accordance with generally accepted 
                        accounting principles and related 
                        standards and guidance, if the loans--
                                  [(I) are bona fide as 
                                evidenced by enforceable 
                                promissory notes;
                                  [(II) are issued at intervals 
                                related to the institution's 
                                enrollment periods; and
                                  [(III) are subject to regular 
                                loan repayments and 
                                collections;
                          [(ii) in the case of loans made by a 
                        proprietary institution of higher 
                        education on or after July 1, 2012, 
                        only the amount of loan repayments 
                        received during the applicable 
                        institutional fiscal year, excluding 
                        repayments on loans made and accounted 
                        for as specified in clause (i); and
                          [(iii) in the case of scholarships 
                        provided by a proprietary institution 
                        of higher education, only those 
                        scholarships provided by the 
                        institution in the form of monetary aid 
                        or tuition discounts based upon the 
                        academic achievements or financial need 
                        of students, disbursed during each 
                        fiscal year from an established 
                        restricted account, and only to the 
                        extent that funds in that account 
                        represent designated funds from an 
                        outside source or from income earned on 
                        those funds;
                  [(E) in the case of each student who receives 
                a loan on or after July 1, 2008, and prior to 
                July 1, 2011, that is authorized under section 
                428H or that is a Federal Direct Unsubsidized 
                Stafford Loan, treat as revenue received by the 
                institution from sources other than funds 
                received under this title, the amount by which 
                the disbursement of such loan received by the 
                institution exceeds the limit on such loan in 
                effect on the day before the date of enactment 
                of the Ensuring Continued Access to Student 
                Loans Act of 2008; and
                  [(F) exclude from revenues--
                          [(i) the amount of funds the 
                        institution received under part C, 
                        unless the institution used those funds 
                        to pay a student's institutional 
                        charges;
                          [(ii) the amount of funds the 
                        institution received under subpart 4 of 
                        part A;
                          [(iii) the amount of funds provided 
                        by the institution as matching funds 
                        for a program under this title;
                          [(iv) the amount of funds provided by 
                        the institution for a program under 
                        this title that are required to be 
                        refunded or returned; and
                          [(v) the amount charged for books, 
                        supplies, and equipment, unless the 
                        institution includes that amount as 
                        tuition, fees, or other institutional 
                        charges.
          [(2) Sanctions.--
                  [(A) Ineligibility.--A proprietary 
                institution of higher education that fails to 
                meet a requirement of subsection (a)(24) for 
                two consecutive institutional fiscal years 
                shall be ineligible to participate in the 
                programs authorized by this title for a period 
                of not less than two institutional fiscal 
                years. To regain eligibility to participate in 
                the programs authorized by this title, a 
                proprietary institution of higher education 
                shall demonstrate compliance with all 
                eligibility and certification requirements 
                under section 498 for a minimum of two 
                institutional fiscal years after the 
                institutional fiscal year in which the 
                institution became ineligible.
                  [(B) Additional enforcement.--In addition to 
                such other means of enforcing the requirements 
                of this title as may be available to the 
                Secretary, if a proprietary institution of 
                higher education fails to meet a requirement of 
                subsection (a)(24) for any institutional fiscal 
                year, then the institution's eligibility to 
                participate in the programs authorized by this 
                title becomes provisional for the two 
                institutional fiscal years after the 
                institutional fiscal year in which the 
                institution failed to meet the requirement of 
                subsection (a)(24), except that such 
                provisional eligibility shall terminate--
                          [(i) on the expiration date of the 
                        institution's program participation 
                        agreement under this subsection that is 
                        in effect on the date the Secretary 
                        determines that the institution failed 
                        to meet the requirement of subsection 
                        (a)(24); or
                          [(ii) in the case that the Secretary 
                        determines that the institution failed 
                        to meet a requirement of subsection 
                        (a)(24) for two consecutive 
                        institutional fiscal years, on the date 
                        the institution is determined 
                        ineligible in accordance with 
                        subparagraph (A).
          [(3) Publication on college navigator website.--The 
        Secretary shall publicly disclose on the College 
        Navigator website--
                  [(A) the identity of any proprietary 
                institution of higher education that fails to 
                meet a requirement of subsection (a)(24); and
                  [(B) the extent to which the institution 
                failed to meet such requirement.
          [(4) Report to congress.--Not later than July 1, 
        2009, and July 1 of each succeeding year, the Secretary 
        shall submit to the authorizing committees a report 
        that contains, for each proprietary institution of 
        higher education that receives assistance under this 
        title, as provided in the audited financial statements 
        submitted to the Secretary by each institution pursuant 
        to the requirements of subsection (a)(24)--
                  [(A) the amount and percentage of such 
                institution's revenues received from sources 
                under this title; and
                  [(B) the amount and percentage of such 
                institution's revenues received from other 
                sources.]
  [(e)] (d) Code of Conduct Requirements.--An institution of 
higher education's code of conduct, as required under 
subsection (a)(25), shall include the following requirements:
          (1) Ban on revenue-sharing arrangements.--
                  (A) Prohibition.--The institution shall not 
                enter into any revenue-sharing arrangement with 
                any lender.
                  (B) Definition.--For purposes of this 
                paragraph, the term ``revenue-sharing 
                arrangement'' means an arrangement between an 
                institution and a lender under which--
                          (i) a lender provides or issues a 
                        loan that is made, insured, or 
                        guaranteed under this title to students 
                        attending the institution or to the 
                        families of such students; and
                          (ii) the institution recommends the 
                        lender or the loan products of the 
                        lender and in exchange, the lender pays 
                        a fee or provides other material 
                        benefits, including revenue or profit 
                        sharing, to the institution, an officer 
                        or employee of the institution, or an 
                        agent.
          (2) Gift ban.--
                  (A) Prohibition.--No officer or employee of 
                the institution who is employed in the 
                financial aid office of the institution or who 
                otherwise has responsibilities with respect to 
                education loans, or agent who has 
                responsibilities with respect to education 
                loans, shall solicit or accept any gift from a 
                lender, guarantor, or servicer of education 
                loans.
                  (B) Definition of gift.--
                          (i) In general.--In this paragraph, 
                        the term ``gift'' means any gratuity, 
                        favor, discount, entertainment, 
                        hospitality, loan, or other item having 
                        a monetary value of more than a de 
                        minimus amount. The term includes a 
                        gift of services, transportation, 
                        lodging, or meals, whether provided in 
                        kind, by purchase of a ticket, payment 
                        in advance, or reimbursement after the 
                        expense has been incurred.
                          (ii) Exceptions.--The term ``gift'' 
                        shall not include any of the following:
                                  (I) Standard material, 
                                activities, or programs on 
                                issues related to a loan, 
                                default aversion, default 
                                prevention, or financial 
                                literacy, such as a brochure, a 
                                workshop, or training.
                                  (II) Food, refreshments, 
                                training, or informational 
                                material furnished to an 
                                officer or employee of an 
                                institution, or to an agent, as 
                                an integral part of a training 
                                session that is designed to 
                                improve the service of a 
                                lender, guarantor, or servicer 
                                of education loans to the 
                                institution, if such training 
                                contributes to the professional 
                                development of the officer, 
                                employee, or agent.
                                  (III) Favorable terms, 
                                conditions, and borrower 
                                benefits on an education loan 
                                provided to a student employed 
                                by the institution if such 
                                terms, conditions, or benefits 
                                are comparable to those 
                                provided to all students of the 
                                institution.
                                  (IV) Entrance and exit 
                                counseling services provided to 
                                borrowers to meet the 
                                institution's responsibilities 
                                for entrance and exit 
                                counseling as required by 
                                subsections (b) and (l) of 
                                section 485, as long as--
                                          (aa) the 
                                        institution's staff are 
                                        in control of the 
                                        counseling, (whether in 
                                        person or via 
                                        electronic 
                                        capabilities); and
                                          (bb) such counseling 
                                        does not promote the 
                                        products or services of 
                                        any specific lender.
                                  (V) Philanthropic 
                                contributions to an institution 
                                from a lender, servicer, or 
                                guarantor of education loans 
                                that are unrelated to education 
                                loans or any contribution from 
                                any lender, guarantor, or 
                                servicer that is not made in 
                                exchange for any advantage 
                                related to education loans.
                                  (VI) State education grants, 
                                scholarships, or financial aid 
                                funds administered by or on 
                                behalf of a State.
                          (iii) Rule for gifts to family 
                        members.--For purposes of this 
                        paragraph, a gift to a family member of 
                        an officer or employee of an 
                        institution, to a family member of an 
                        agent, or to any other individual based 
                        on that individual's relationship with 
                        the officer, employee, or agent, shall 
                        be considered a gift to the officer, 
                        employee, or agent if--
                                  (I) the gift is given with 
                                the knowledge and acquiescence 
                                of the officer, employee, or 
                                agent; and
                                  (II) the officer, employee, 
                                or agent has reason to believe 
                                the gift was given because of 
                                the official position of the 
                                officer, employee, or agent.
          (3) Contracting arrangements prohibited.--
                  (A) Prohibition.--An officer or employee who 
                is employed in the financial aid office of the 
                institution or who otherwise has 
                responsibilities with respect to education 
                loans, or an agent who has responsibilities 
                with respect to education loans, shall not 
                accept from any lender or affiliate of any 
                lender any fee, payment, or other financial 
                benefit (including the opportunity to purchase 
                stock) as compensation for any type of 
                consulting arrangement or other contract to 
                provide services to a lender or on behalf of a 
                lender relating to education loans.
                  (B) Exceptions.--Nothing in this subsection 
                shall be construed as prohibiting--
                          (i) an officer or employee of an 
                        institution who is not employed in the 
                        institution's financial aid office and 
                        who does not otherwise have 
                        responsibilities with respect to 
                        education loans, or an agent who does 
                        not have responsibilities with respect 
                        to education loans, from performing 
                        paid or unpaid service on a board of 
                        directors of a lender, guarantor, or 
                        servicer of education loans;
                          (ii) an officer or employee of the 
                        institution who is not employed in the 
                        institution's financial aid office but 
                        who has responsibility with respect to 
                        education loans as a result of a 
                        position held at the institution, or an 
                        agent who has responsibility with 
                        respect to education loans, from 
                        performing paid or unpaid service on a 
                        board of directors of a lender, 
                        guarantor, or servicer of education 
                        loans, if the institution has a written 
                        conflict of interest policy that 
                        clearly sets forth that officers, 
                        employees, or agents must recuse 
                        themselves from participating in any 
                        decision of the board regarding 
                        education loans at the institution; or
                          (iii) an officer, employee, or 
                        contractor of a lender, guarantor, or 
                        servicer of education loans from 
                        serving on a board of directors, or 
                        serving as a trustee, of an 
                        institution, if the institution has a 
                        written conflict of interest policy 
                        that the board member or trustee must 
                        recuse themselves from any decision 
                        regarding education loans at the 
                        institution.
          (4) Interaction with borrowers.--The institution 
        shall not--
                  (A) for any first-time borrower, assign, 
                through award packaging or other methods, the 
                borrower's loan to a particular lender; or
                  (B) refuse to certify, or delay certification 
                of, any loan based on the borrower's selection 
                of a particular lender or guaranty agency.
          (5) Prohibition on offers of funds for private 
        loans.--
                  (A) Prohibition.--The institution shall not 
                request or accept from any lender any offer of 
                funds to be used for private education loans 
                (as defined in section 140 of the Truth in 
                Lending Act), including funds for an 
                opportunity pool loan, to students in exchange 
                for the institution providing concessions or 
                promises regarding providing the lender with--
                          (i) a specified number of loans made, 
                        insured, or guaranteed under this 
                        title;
                          (ii) a specified loan volume of such 
                        loans; or
                          (iii) a preferred lender arrangement 
                        for such loans.
                  (B) Definition of opportunity pool loan.--In 
                this paragraph, the term ``opportunity pool 
                loan'' means a private education loan made by a 
                lender to a student attending the institution 
                or the family member of such a student that 
                involves a payment, directly or indirectly, by 
                such institution of points, premiums, 
                additional interest, or financial support to 
                such lender for the purpose of such lender 
                extending credit to the student or the family.
          (6) Ban on staffing assistance.--
                  (A) Prohibition.--The institution shall not 
                request or accept from any lender any 
                assistance with call center staffing or 
                financial aid office staffing.
                  (B) Certain assistance permitted.--Nothing in 
                paragraph (1) shall be construed to prohibit 
                the institution from requesting or accepting 
                assistance from a lender related to--
                          (i) professional development training 
                        for financial aid administrators;
                          (ii) providing educational counseling 
                        materials, financial literacy 
                        materials, or debt management materials 
                        to borrowers, provided that such 
                        materials disclose to borrowers the 
                        identification of any lender that 
                        assisted in preparing or providing such 
                        materials; or
                          (iii) staffing services on a short-
                        term, nonrecurring basis to assist the 
                        institution with financial aid-related 
                        functions during emergencies, including 
                        State-declared or federally declared 
                        natural disasters, federally declared 
                        national disasters, and other localized 
                        disasters and emergencies identified by 
                        the Secretary.
          (7) Advisory board compensation.--Any employee who is 
        employed in the financial aid office of the 
        institution, or who otherwise has responsibilities with 
        respect to education loans or other student financial 
        aid of the institution, and who serves on an advisory 
        board, commission, or group established by a lender, 
        guarantor, or group of lenders or guarantors, shall be 
        prohibited from receiving anything of value from the 
        lender, guarantor, or group of lenders or guarantors, 
        except that the employee may be reimbursed for 
        reasonable expenses incurred in serving on such 
        advisory board, commission, or group.
  [(f)] (e) Institutional Requirements for Teach-Outs.--
          (1) In general.--In the event the Secretary initiates 
        the limitation, suspension, or termination of the 
        participation of an institution of higher education in 
        any program under this title under the authority of 
        subsection (c)(1)(F) or initiates an emergency action 
        under the authority of subsection (c)(1)(G) and its 
        prescribed regulations, the Secretary shall require 
        that institution to prepare a teach-out plan for 
        submission to the institution's accrediting agency or 
        association in compliance with section 496(c)(3), the 
        Secretary's regulations on teach-out plans, and the 
        standards of the institution's accrediting agency or 
        association.
          (2) Teach-out plan defined.--In this subsection, the 
        term ``teach-out plan'' means a written plan that 
        provides for the equitable treatment of students if an 
        institution of higher education ceases to operate 
        before all students have completed their program of 
        study, and may include, if required by the 
        institution's accrediting agency or association, an 
        agreement between institutions for such a teach-out 
        plan.
  [(g)] (f) Inspector General Report on Gift Ban Violations.--
The Inspector General of the Department shall--
          (1) submit an annual report to the authorizing 
        committees identifying all violations of an 
        institution's code of conduct that the Inspector 
        General has substantiated during the preceding year 
        relating to the gift ban provisions described in 
        subsection (e)(2); and
          (2) make the report available to the public through 
        the Department's website.
  [(h)] (g) Preferred Lender List Requirements.--
          (1) In general.--In compiling, maintaining, and 
        making available a preferred lender list as required 
        under subsection (a)(27), the institution will--
                  (A) clearly and fully disclose on such 
                preferred lender list--
                          (i) not less than the information 
                        required to be disclosed under section 
                        153(a)(2)(A); and
                          [(ii) why the institution has entered 
                        into a preferred lender arrangement 
                        with each lender on the preferred 
                        lender list, particularly with respect 
                        to terms and conditions or provisions 
                        favorable to the borrower; and]
                          [(iii)] (ii) that the students 
                        attending the institution, or the 
                        families of such students, do not have 
                        to borrow from a lender on the 
                        preferred lender list;
                  (B) ensure, through the use of the list of 
                lender affiliates provided by the Secretary 
                under paragraph (2), that--
                          (i) there are not less than three 
                        lenders of loans made under part B that 
                        are not affiliates of each other 
                        included on the preferred lender list 
                        and, if the institution recommends, 
                        promotes, or endorses private education 
                        loans, there are not less than two 
                        lenders of private education loans that 
                        are not affiliates of each other 
                        included on the preferred lender list; 
                        and
                          (ii) the preferred lender list under 
                        this paragraph--
                                  (I) specifically indicates, 
                                for each listed lender, whether 
                                the lender is or is not an 
                                affiliate of each other lender 
                                on the preferred lender list; 
                                and
                                  (II) if a lender is an 
                                affiliate of another lender on 
                                the preferred lender list, 
                                describes the details of such 
                                affiliation;
                  [(C) prominently disclose the method and 
                criteria used by the institution in selecting 
                lenders with which to enter into preferred 
                lender arrangements to ensure that such lenders 
                are selected on the basis of the best interests 
                of the borrowers, including--
                          [(i) payment of origination or other 
                        fees on behalf of the borrower;
                          [(ii) highly competitive interest 
                        rates, or other terms and conditions or 
                        provisions of loans under this title or 
                        private education loans;
                          [(iii) high-quality servicing for 
                        such loans; or
                          [(iv) additional benefits beyond the 
                        standard terms and conditions or 
                        provisions for such loans;]
                  [(D)] (C) exercise a duty of care and a duty 
                of loyalty to compile the preferred lender list 
                under this paragraph without prejudice and for 
                the sole benefit of the students attending the 
                institution, or the families of such students; 
                and
                  [(E)] (D) not deny or otherwise impede the 
                borrower's choice of a lender or cause 
                unnecessary delay in loan certification under 
                this title for those borrowers who choose a 
                lender that is not included on the preferred 
                lender list[; and].
                  [(F) comply with such other requirements as 
                the Secretary may prescribe by regulation.]
          (2) Lender affiliates list.--
                  (A) In general.--The Secretary shall maintain 
                and regularly update a list of lender 
                affiliates of all eligible lenders, and shall 
                provide such list to institutions for use in 
                carrying out paragraph (1)(B).
                  (B) Use of most recent list.--An institution 
                shall use the most recent list of lender 
                affiliates provided by the Secretary under 
                subparagraph (A) in carrying out paragraph 
                (1)(B).
  [(i)] (h) Definitions.--For the purpose of this section:
          (1) Agent.--The term ``agent'' has the meaning given 
        the term in section 151.
          (2) Affiliate.--The term ``affiliate'' means a person 
        that controls, is controlled by, or is under common 
        control with another person. A person controls, is 
        controlled by, or is under common control with another 
        person if--
                  (A) the person directly or indirectly, or 
                acting through one or more others, owns, 
                controls, or has the power to vote five percent 
                or more of any class of voting securities of 
                such other person;
                  (B) the person controls, in any manner, the 
                election of a majority of the directors or 
                trustees of such other person; or
                  (C) the Secretary determines (after notice 
                and opportunity for a hearing) that the person 
                directly or indirectly exercises a controlling 
                interest over the management or policies of 
                such other person's education loans.
          (3) Education loan.--The term ``education loan'' has 
        the meaning given the term in section 151.
          (4) Eligible institution.--The term ``eligible 
        institution'' means any such institution described in 
        [section 102] section 101 or 102 of this Act.
          (5) Officer.--The term ``officer'' has the meaning 
        given the term in section 151.
          (6) Preferred lender arrangement.--The term 
        ``preferred lender arrangement'' has the meaning given 
        the term in section 151.
  [(j)] (i) Construction.--Nothing in the amendments made by 
the Higher Education Amendments of 1992 shall be construed to 
prohibit an institution from recording, at the cost of the 
institution, a hearing referred to in subsection (b)(2), 
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of 
subsection (c)(2), of this section to create a record of the 
hearing, except the unavailability of a recording shall not 
serve to delay the completion of the proceeding. The Secretary 
shall allow the institution to use any reasonable means, 
including stenographers, of recording the hearing.

SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.

  (a) Quality Assurance Program.--
          (1) In general.--[The Secretary is authorized to] The 
        Secretary shall select institutions for voluntary 
        participation in a Quality Assurance Program that 
        provides participating institutions with an alternative 
        management approach through which individual schools 
        develop and implement their own comprehensive systems, 
        related to processing and disbursement of student 
        financial aid, verification of student financial aid 
        application data, and entrance and exit interviews, 
        thereby enhancing program integrity within the student 
        aid delivery system.
          (2) Criteria and consideration.--The Quality 
        Assurance Program authorized by this section shall be 
        based on criteria that include demonstrated 
        institutional performance, as determined by the 
        Secretary, and shall take into consideration current 
        quality assurance goals, as determined by the 
        Secretary. The selection criteria shall ensure the 
        participation of a diverse group of institutions of 
        higher education with respect to size, mission, and 
        geographical distribution.
          (3) Waiver.--The Secretary is authorized to waive for 
        any institution participating in the Quality Assurance 
        Program any regulations dealing with reporting or 
        verification requirements in this title that are 
        addressed by the institution's alternative management 
        system, and may substitute such quality assurance 
        reporting as the Secretary determines necessary to 
        ensure accountability and compliance with the purposes 
        of the programs under this title. The Secretary shall 
        not modify or waive any statutory requirements pursuant 
        to this paragraph.
          (4) Determination.--The Secretary is authorized to 
        determine--
                  (A) when an institution that is unable to 
                administer the Quality Assurance Program shall 
                be removed from such program; and
                  (B) when institutions desiring to cease 
                participation in such program will be required 
                to complete the current award year under the 
                requirements of the Quality Assurance Program.
          (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 authorizing committees at least 
        once every two years.
  (b) Regulatory Improvement and Streamlining Experiments.--
          [(1) In general.--The Secretary shall continue the 
        voluntary participation of any experimental sites in 
        existence as of July 1, 2007, unless the Secretary 
        determines that such site's participation has not been 
        successful in carrying out the purposes of this 
        section. Any experimental sites approved by the 
        Secretary prior to such date that have not been 
        successful in carrying out the purposes of this section 
        shall be discontinued not later than June 30, 2010.]
          [(2)] Annual Report.--(1) [The Secretary shall review 
        and evaluate the experience of institutions 
        participating as experimental sites and shall, on a 
        biennial basis, submit a report based on the review and 
        evaluation to the authorizing committees.] The 
        Secretary shall review the experience, and rigorously 
        evaluate the activities, of all institutions 
        participating as experimental sites and shall, on an 
        annual basis, submit a report based on the review and 
        evaluation findings to the authorizing committees. Such 
        report shall include--
                  (A) a list of participating institutions and 
                the specific statutory or regulatory waivers 
                granted to each institution;
                  (B) the findings and conclusions reached 
                regarding each of the experiments conducted; 
                and
                  (C) recommendations for amendments to improve 
                and streamline this Act, based on the results 
                of the experiment.
          [(3)] (2) Selection.--
                  [(A) In general.--The Secretary is authorized 
                to periodically select a limited number of 
                additional institutions for voluntary 
                participation as experimental sites to provide 
                recommendations to the Secretary on the impact 
                and effectiveness of proposed regulations or 
                new management initiatives.]
                  (A) In general.--
                          (i) Experimental sites.--The 
                        Secretary is authorized periodically to 
                        select a limited number of institutions 
                        for voluntary participation as 
                        experimental sites to provide 
                        recommendations to the Secretary and to 
                        the Congress on the impact and 
                        effectiveness of proposed regulations 
                        or new management initiatives.
                          (ii) Congressional notice and 
                        comments required.--
                                  (I) Notice.--Prior to 
                                announcing a new experimental 
                                site and inviting institutions 
                                to participate, the Secretary 
                                shall provide to the 
                                authorizing committees a notice 
                                that shall include--
                                          (aa) a description of 
                                        the proposed experiment 
                                        and rationale for the 
                                        proposed experiment; 
                                        and
                                          (bb) a list of the 
                                        institutional 
                                        requirements the 
                                        Secretary expects to 
                                        waive and the legal 
                                        authority for such 
                                        waivers.
                                  (II) Congressional 
                                comments.--The Secretary shall 
                                not proceed with announcing a 
                                new experimental site and 
                                inviting institutions to 
                                participate until 10 days after 
                                the Secretary--
                                          (aa) receives and 
                                        addresses all comments 
                                        from the authorizing 
                                        committees; and
                                          (bb) responds to such 
                                        committees in writing 
                                        with an explanation of 
                                        how such comments have 
                                        been addressed.
                          (iii) Prohibition.--The Secretary is 
                        not authorized to carry out clause (i) 
                        in any year in which an annual report 
                        described in paragraph (2) relating to 
                        the previous year is not submitted to 
                        the authorizing committees.
                  (B) Waivers.--The Secretary is authorized to 
                waive, for any institution participating as an 
                experimental site under subparagraph (A), any 
                requirements in this title, including 
                requirements related to the award process and 
                disbursement of student financial aid (such as 
                innovative delivery systems for modular or 
                compressed courses, or other innovative 
                systems), verification of student financial aid 
                application data, entrance and exit interviews, 
                or other management procedures or processes as 
                determined in the negotiated rulemaking process 
                under section 492, or regulations prescribed 
                under this title, that will bias the results of 
                the experiment, except that the Secretary shall 
                not waive any provisions with respect to award 
                rules (other than an award rule related to an 
                experiment in modular or compressed schedules), 
                grant and loan maximum award amounts, and need 
                analysis requirements unless the waiver of such 
                provisions is authorized by another provision 
                under this title.
          [(4)] (3) Determination of success.--For the purposes 
        of paragraph (1), the Secretary shall make a 
        determination of success regarding an institution's 
        participation as an experimental site based on--
                  (A) the ability of the experimental site to 
                reduce administrative burdens to the 
                institution, as documented in the Secretary's 
                [biennial] annual report under paragraph (2), 
                without creating costs for the taxpayer; and
                  (B) whether the experimental site has 
                improved the delivery of services to, or 
                otherwise benefitted, students.
  (c) Definitions.--For purposes of this section, the term 
``current award year'' means the award year during which the 
participating institution indicates the institution's intention 
to cease participation.

           *       *       *       *       *       *       *


SEC. 488. TRANSFER OF ALLOTMENTS.

  In order to offer an arrangement of types of aid, including 
institutional and State aid which best fits the needs of each 
individual student, an institution may (1) transfer a total of 
25 percent of the institutions allotment under section 462, as 
in effect on the day before the date of enactment of the 
PROSPER Act, to the institution's allotment under section 413D 
or 442 (or both); (2) transfer 25 percent of the institution's 
allotment under section 442 to the institution's allotment 
under section 413D or 462, as in effect on the day before the 
date of enactment of the PROSPER Act, (or both); and (3) 
transfer 25 percent of the institution's allotment under 
section 413D to the institution's allotment under section 442. 
Funds transferred to an institution's allotment under another 
section may be used as a part of and for the same purposes as 
funds allotted under that section. The Secretary shall have no 
control over such transfer, except as specifically authorized, 
except for the collection and dissemination of information.

           *       *       *       *       *       *       *


SEC. 489. ADMINISTRATIVE EXPENSES.

  (a) Amount of Payments.--From the sums appropriated for any 
fiscal year for the purpose of the program authorized under 
subpart 1 of part A, the Secretary shall reserve such sums as 
may be necessary to pay to each institution with which he has 
an agreement under section 487, an amount equal to $5 for each 
student at that institution who receives assistance under 
subpart 1 of part A. In addition, an institution which has 
entered into an agreement with the Secretary under [subpart 3 
of part A or part C,] part C of this title [or under part E of 
this title] shall be entitled for each fiscal year which such 
institution disburses funds to eligible students under any such 
part to a payment for the purpose set forth in subsection (b). 
The payment for a fiscal year shall be payable from each such 
allotment by payment in accordance with regulations of the 
Secretary and shall be equal to 5 percent of the institution's 
first $2,750,000 of expenditures plus 4 percent of the 
institution's expenditures greater than $2,750,000 and less 
than $5,500,000, plus 3 percent of the institution's 
expenditures in excess of $5,500,000 during the fiscal year 
from the sum of [its grants to students under subpart 3 of part 
A,] its expenditures during such fiscal year under part C for 
compensation of students[, and the principal amount of loans 
made during such fiscal year from its student loan fund 
established under part E, excluding the principal amount of any 
such loans which the institution has referred under section 
463(a)(4)(B)]. In addition, the Secretary shall provide for 
payment to each institution of higher education an amount equal 
to 100 percent of the costs incurred by the institution in 
implementing and operating the immigration status verification 
system under section 484(g).
  (b) Purpose of Payments.--(1) The sums paid to institutions 
under this part are for the sole purpose of administering the 
programs described in subsection (a).
  (2) If the institution enrolls a significant number of 
students who are (A) attending the institution less than full 
time, or (B) independent students, the institution shall use a 
reasonable proportion of the funds available under this section 
for financial aid services during times and in places that will 
most effectively accommodate the needs of such students.

           *       *       *       *       *       *       *


[SEC. 491. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.

  [(a) Establishment and Purpose.--(1) There is established in 
the Department an independent Advisory Committee on Student 
Financial Assistance (hereafter in this section referred to as 
the ``Advisory Committee'') which shall provide advice and 
counsel to the authorizing committees and to the Secretary on 
student financial aid matters.
  [(2) The purpose of the Advisory Committee is--
          [(A) to provide extensive knowledge and understanding 
        of the Federal, State, and institutional programs of 
        postsecondary student assistance;
          [(B) to provide technical expertise with regard to 
        systems of needs analysis and application forms;
          [(C) to make recommendations that will result in the 
        maintenance of access to postsecondary education for 
        low- and middle-income students;
          [(D) to provide knowledge and understanding of early 
        intervention programs, and to make recommendations that 
        will result in early awareness by low- and moderate-
        income students and families--
                  [(i) of their eligibility for assistance 
                under this title; and
                  [(ii) to the extent practicable, of their 
                eligibility for other forms of State and 
                institutional need-based student assistance;
          [(E) to make recommendations that will expand and 
        improve partnerships among the Federal Government, 
        States, institutions of higher education, and private 
        entities to increase the awareness and the total amount 
        of need-based student assistance available to low- and 
        moderate-income students; and
          [(F) to collect information on Federal regulations, 
        and on the impact of Federal regulations on student 
        financial assistance and on the cost of receiving a 
        postsecondary education, and to make recommendations to 
        help streamline the regulations for institutions of 
        higher education from all sectors.
  [(b) Independence of Advisory Committee.--In the exercise of 
its functions, powers, and duties, the Advisory Committee shall 
be independent of the Secretary and the other offices and 
officers of the Department. Notwithstanding Department of 
Education policies and regulations, the Advisory Committee 
shall exert independent control of its budget allocations, 
expenditures and staffing levels, personnel decisions and 
processes, procurements, and other administrative and 
management functions. The Advisory Committee's administration 
and management shall be subject to the usual and customary 
Federal audit procedures. Reports, publications, and other 
documents of the Advisory Committee, including such reports, 
publications, and documents in electronic form, shall not be 
subject to review by the Secretary. Notwithstanding Department 
of Education policies and regulations, the Advisory Committee 
shall exert independent control of its budget allocations and 
expenditures, personnel decisions and processes, procurements, 
and other administrative and management functions. The Advisory 
Committee's administration and management shall be subject to 
the usual and customary Federal audit procedures. The 
recommendations of the Committee shall not be subject to review 
or approval by any officer in the executive branch, but may be 
submitted to the Secretary for comment prior to submission to 
the authorizing committees in accordance with subsection (f). 
The Secretary's authority to terminate advisory committees of 
the Department pursuant to section 448(b) of the General 
Education Provisions Act ceased to be effective on June 23, 
1983.
  [(c) Membership.--(1) The Advisory Committee shall consist of 
11 members appointed as follows:
          [(A) Four members shall be appointed by the President 
        pro tempore of the Senate, of whom two members shall be 
        appointed from recommendations by the Majority Leader 
        of the Senate, and two members shall be appointed from 
        recommendations by the Minority Leader of the Senate.
          [(B) Four members shall be appointed by the Speaker 
        of the House of Representatives, of whom two members 
        shall be appointed from recommendations by the Majority 
        Leader of the House of Representatives, and two members 
        shall be appointed from recommendations by the Minority 
        Leader of the House of Representatives.
          [(C) Three members shall be appointed by the 
        Secretary, of whom at least one member shall be a 
        student.
  [(2) Each member of the Advisory Committee, with the 
exception of a student member, shall be appointed on the basis 
of technical qualifications, professional experience, and 
demonstrated knowledge in the fields of higher education, 
student financial aid, financing post-secondary education, and 
the operations and financing of student loan guarantee 
agencies.
  [(3) The appointment of a member under subparagraph (A) or 
(B) of paragraph (1) shall be effective upon publication of 
such appointment in the Congressional Record.
  [(d) Functions of the Committee.--The Advisory Committee 
shall--
          [(1) develop, review, and comment annually upon the 
        system of needs analysis established under part F of 
        this title;
          [(2) monitor, apprise, and evaluate the effectiveness 
        of student aid delivery and recommend improvements;
          [(3) recommend data collection needs and student 
        information requirements which would improve access and 
        choice for eligible students under this title and 
        assist the Department of Education in improving the 
        delivery of student aid;
          [(4) assess the impact of legislative and 
        administrative policy proposals;
          [(5) review and comment upon, prior to promulgation, 
        all regulations affecting programs under this title, 
        including proposed regulations;
          [(6) recommend to the authorizing committees and to 
        the Secretary such studies, surveys, and analyses of 
        student financial assistance programs, policies, and 
        practices, including the special needs of low-income, 
        disadvantaged, and nontraditional students, and the 
        means by which the needs may be met;
          [(7) review and comment upon standards by which 
        financial need is measured in determining eligibility 
        for Federal student assistance programs;
          [(8) appraise the adequacies and deficiencies of 
        current student financial aid information resources and 
        services and evaluate the effectiveness of current 
        student aid information programs;
          [(9) provide an annual report to the authorizing 
        committees that provides analyses and policy 
        recommendations regarding--
                  [(A) the adequacy of need-based grant aid for 
                low- and moderate-income students; and
                  [(B) the postsecondary enrollment and 
                graduation rates of low- and moderate-income 
                students;
          [(10) develop and maintain an information 
        clearinghouse to help institutions of higher education 
        understand the regulatory impact of the Federal 
        Government on institutions of higher education from all 
        sectors, in order to raise awareness of institutional 
        legal obligations and provide information to improve 
        compliance with, and to reduce the duplication and 
        inefficiency of, Federal regulations; and
          [(11) make special efforts to advise Members of 
        Congress and such Members' staff of the findings and 
        recommendations made pursuant to this paragraph.
  [(e) Operations of the Committee.--(1) Each member of the 
Advisory Committee shall be appointed for a term of 4 years, 
except that, of the members first appointed--
          [(A) 4 shall be appointed for a term of 1 year;
          [(B) 4 shall be appointed for a term of 2 years; and
          [(C) 3 shall be appointed for a term of 3 years,
as designated at the time of appointment by the Secretary.
  [(2) 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 
Advisory Committee serving on the date of enactment of the 
Higher Education Opportunity Act shall be permitted to serve 
the duration of the member's term, regardless of whether the 
member was previously appointed to more than one term.
  [(3) No officers or full-time employees of the Federal 
Government shall serve as members of the Advisory Committee.
  [(4) The Advisory Committee shall elect a Chairman and a Vice 
Chairman from among its members.
  [(5) Six members of the Advisory Committee shall constitute a 
quorum.
  [(6) The Advisory Committee shall meet at the call of the 
Chairman or a majority of its members.
  [(f) Submission to Department for Comment.--The Advisory 
Committee may submit its proposed recommendations to the 
Department of Education for comment for a period not to exceed 
30 days in each instance.
  [(g) Compensation and Expenses.--Members of the Advisory 
Committee may each receive reimbursement for travel expenses 
incident to attending Advisory Committee 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.
  [(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 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.
  [(2) In carrying out its duties under the Act, the Advisory 
Committee shall consult with other Federal agencies, 
representatives of State and local governments, and private 
organizations to the extent feasible.
  [(3)(A) The Advisory Committee 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 Advisory Committee, upon request made by the Chairman.
  [(B) The Advisory Committee may enter into contracts for the 
acquisition of information, suggestions, estimates, and 
statistics for the purpose of this section.
  [(4) The Advisory Committee 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.
  [(5) The head of each Federal agency shall, to the extent not 
prohibited by law, cooperate with the Advisory Committee in 
carrying out this section.
  [(6) The Advisory Committee 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.
  [(i) Availability of Funds.--In each fiscal year not less 
than $800,000, shall be available from the amount appropriated 
for each such fiscal year from salaries and expenses of the 
Department for the costs of carrying out the provisions of this 
section.
  [(j) Special Analyses and Activities.--The Advisory 
Committee shall--
          [(1) monitor and evaluate the modernization of 
        student financial aid systems and delivery processes 
        and simplifications, including recommendations for 
        improvement;
          [(2) assess the adequacy of current methods for 
        disseminating information about programs under this 
        title and recommend improvements, as appropriate, 
        regarding early needs assessment and information for 
        first-year secondary school students;
          [(3) assess and make recommendations concerning the 
        feasibility and degree of use of appropriate technology 
        in the application for, and delivery and management of, 
        financial assistance under this title, as well as 
        policies that promote use of such technology to reduce 
        cost and enhance service and program integrity, 
        including electronic application and reapplication, 
        just-in-time delivery of funds, reporting of 
        disbursements and reconciliation;
          [(4) conduct a review and analysis of regulations in 
        accordance with subsection (l); and
          [(5) conduct a study in accordance with subsection 
        (m).
  [(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, 2015.
  [(l) Review and Analysis of Regulations.--
          [(1) Recommendations.--The Advisory Committee shall 
        make recommendations to the Secretary and the 
        authorizing committees for consideration of future 
        legislative action regarding redundant or outdated 
        regulations consistent with the Secretary's 
        requirements under section 498B.
          [(2) Review and analysis of regulations.--
                  [(A) Review of current regulations.--To meet 
                the requirements of subsection (d)(10), the 
                Advisory Committee shall conduct a review and 
                analysis of the regulations issued by Federal 
                agencies that are in effect at the time of the 
                review and that apply to the operations or 
                activities of institutions of higher education 
                from all sectors. The review and analysis may 
                include a determination of whether the 
                regulation is duplicative, is no longer 
                necessary, is inconsistent with other Federal 
                requirements, or is overly burdensome. In 
                conducting the review, the Advisory Committee 
                shall pay specific attention to evaluating ways 
                in which regulations under this title affecting 
                institutions of higher education (other than 
                institutions described in section 
                102(a)(1)(C)), that have received in each of 
                the two most recent award years prior to the 
                date of enactment of the Higher Education 
                Opportunity Act less than $200,000 in funds 
                through this title, may be improved, 
                streamlined, or eliminated.
                  [(B) Review and collection of future 
                regulations.--The Advisory Committee shall--
                          [(i) monitor all Federal regulations, 
                        including notices of proposed 
                        rulemaking, for their impact or 
                        potential impact on higher education; 
                        and
                          [(ii) provide a succinct description 
                        of each regulation or proposed 
                        regulation that is generally relevant 
                        to institutions of higher education 
                        from all sectors.
                  [(C) Maintenance of public website.--The 
                Advisory Committee shall develop and maintain 
                an easy to use, searchable, and regularly 
                updated website that--
                          [(i) provides information collected 
                        in subparagraph (B);
                          [(ii) provides an area for the 
                        experts and members of the public to 
                        provide recommendations for ways in 
                        which the regulations may be 
                        streamlined; and
                          [(iii) publishes the study conducted 
                        by the National Research Council of the 
                        National Academy of Sciences under 
                        section 1106 of the Higher Education 
                        Opportunity Act.
          [(3) Consultation.--
                  [(A) In general.--In carrying out the review, 
                analysis, and development of the website 
                required under paragraph (2), the Advisory 
                Committee shall consult with the Secretary, 
                other Federal agencies, relevant 
                representatives of institutions of higher 
                education, individuals who have expertise and 
                experience with Federal regulations, and the 
                review panels described in subparagraph (B).
                  [(B) Review panels.--The Advisory Committee 
                shall convene not less than two review panels 
                of representatives of the groups involved in 
                higher education, including individuals 
                involved in student financial assistance 
                programs under this title, who have experience 
                and expertise in the regulations issued by the 
                Federal Government that affect all sectors of 
                higher education, in order to review the 
                regulations and to provide recommendations to 
                the Advisory Committee with respect to the 
                review and analysis under paragraph (2). The 
                panels shall be made up of experts in areas 
                such as the operations of the financial 
                assistance programs, the institutional 
                eligibility requirements for the financial 
                assistance programs, regulations not directly 
                related to the operations or the institutional 
                eligibility requirements of the financial 
                assistance programs, and regulations for 
                dissemination of information to students about 
                the financial assistance programs.
          [(4) Periodic updates to the authorizing 
        committees.--The Advisory Committee shall--
                  [(A) submit, not later than two years after 
                the completion of the negotiated rulemaking 
                process required under section 492 resulting 
                from the amendments to this Act made by the 
                Higher Education Opportunity Act, a report to 
                the authorizing committees and the Secretary 
                detailing the review panels' findings and 
                recommendations with respect to the review of 
                regulations; and
                  [(B) provide periodic updates to the 
                authorizing committees regarding--
                          [(i) the impact of all Federal 
                        regulations on all sectors of higher 
                        education; and
                          [(ii) suggestions provided through 
                        the website for streamlining or 
                        eliminating duplicative regulations.
          [(5) Additional support.--The Secretary and the 
        Inspector General of the Department shall provide such 
        assistance and resources to the Advisory Committee as 
        the Secretary and Inspector General determine are 
        necessary to conduct the review and analysis required 
        by this subsection.
  [(m) Study of Innovative Pathways to Baccalaureate Degree 
Attainment.--
          [(1) Study required.--The Advisory Committee shall 
        conduct a study of the feasibility of increasing 
        baccalaureate degree attainment rates by reducing the 
        costs and financial barriers to attaining a 
        baccalaureate degree through innovative programs.
          [(2) Scope of study.--The Advisory Committee shall 
        examine new and existing programs that promote 
        baccalaureate degree attainment through innovative 
        ways, such as dual or concurrent enrollment programs, 
        changes made to the Federal Pell Grant program, 
        simplification of the needs analysis process, 
        compressed or modular scheduling, articulation 
        agreements, and programs that allow two-year 
        institutions of higher education to offer baccalaureate 
        degrees.
          [(3) Required aspects of the study.--In performing 
        the study described in this subsection, the Advisory 
        Committee shall examine the following aspects of such 
        innovative programs:
                  [(A) The impact of such programs on 
                baccalaureate attainment rates.
                  [(B) The degree to which a student's total 
                cost of attaining a baccalaureate degree can be 
                reduced by such programs.
                  [(C) The ways in which low- and moderate-
                income students can be specifically targeted by 
                such programs.
                  [(D) The ways in which nontraditional 
                students can be specifically targeted by such 
                programs.
                  [(E) The cost-effectiveness for the Federal 
                Government, States, and institutions of higher 
                education to implement such programs.
          [(4) Consultation.--
                  [(A) In general.--In performing the study 
                described in this subsection, the Advisory 
                Committee shall consult with a broad range of 
                interested parties in higher education, 
                including parents, students, appropriate 
                representatives of secondary schools and 
                institutions of higher education, appropriate 
                State administrators, administrators of dual or 
                concurrent enrollment programs, and appropriate 
                Department officials.
                  [(B) Consultation with the authorizing 
                committees.--The Advisory Committee shall 
                consult on a regular basis with the authorizing 
                committees in carrying out the study required 
                by this subsection.
          [(5) Reports to authorizing committees.--
                  [(A) Interim report.--The Advisory Committee 
                shall prepare and submit to the authorizing 
                committees and the Secretary an interim report, 
                not later than one year after the date of 
                enactment of the Higher Education Opportunity 
                Act, describing the progress made in conducting 
                the study required by this subsection and any 
                preliminary findings on the topics identified 
                under paragraph (2).
                  [(B) Final report.--The Advisory Committee 
                shall, not later than three years after the 
                date of enactment of the Higher Education 
                Opportunity Act, prepare and submit to the 
                authorizing committees and the Secretary a 
                final report on the study, including 
                recommendations for legislative, regulatory, 
                and administrative changes based on findings 
                related to the topics identified under 
                paragraph (2).]

SEC. 492. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

  [(a) Meetings.--
          [(1) In general.--The Secretary shall obtain public 
        involvement in the development of proposed regulations 
        for this title. The Secretary shall obtain the advice 
        of and recommendations from individuals and 
        representatives of the groups involved in student 
        financial assistance programs under this title, such as 
        students, legal assistance organizations that represent 
        students, institutions of higher education, State 
        student grant agencies, guaranty agencies, lenders, 
        secondary markets, loan servicers, guaranty agency 
        servicers, and collection agencies.
          [(2) Issues.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information 
        concerning the implementation of this title through 
        such mechanisms as regional meetings and electronic 
        exchanges of information. The Secretary shall take into 
        account the information received through such 
        mechanisms in the development of proposed regulations 
        and shall publish a summary of such information in the 
        Federal Register together with such proposed 
        regulations.
  [(b) Draft Regulations.--
          [(1) In general.--After obtaining the advice and 
        recommendations described in subsection (a)(1) and 
        before publishing proposed regulations in the Federal 
        Register, the Secretary shall prepare draft regulations 
        implementing this title and shall submit such 
        regulations to a negotiated rulemaking process. 
        Participants in the negotiations process shall be 
        chosen by the Secretary from individuals nominated by 
        groups described in subsection (a)(1), and shall 
        include both representatives of such groups from 
        Washington, D.C., and industry participants. The 
        Secretary shall select individuals with demonstrated 
        expertise or experience in the relevant subjects under 
        negotiation, reflecting the diversity in the industry, 
        representing both large and small participants, as well 
        as individuals serving local areas and national 
        markets. The negotiation process shall be conducted in 
        a timely manner in order that the final regulations may 
        be issued by the Secretary within the 360-day period 
        described in section 437(e) of the General Education 
        Provisions Act.
          [(2) Expansion of negotiated rulemaking.--All 
        regulations pertaining to this title that are 
        promulgated after the date of enactment of this 
        paragraph shall be subject to a negotiated rulemaking 
        (including the selection of the issues to be 
        negotiated), unless the Secretary determines that 
        applying such a requirement with respect to given 
        regulations is impracticable, unnecessary, or contrary 
        to the public interest (within the meaning of section 
        553(b)(3)(B) of title 5, United States Code), and 
        publishes the basis for such determination in the 
        Federal Register at the same time as the proposed 
        regulations in question are first published. All 
        published proposed regulations shall conform to 
        agreements resulting from such negotiated rulemaking 
        unless the Secretary reopens the negotiated rulemaking 
        process or provides a written explanation to the 
        participants in that process why the Secretary has 
        decided to depart from such agreements. Such negotiated 
        rulemaking shall be conducted in accordance with the 
        provisions of paragraph (1), and the Secretary shall 
        ensure that a clear and reliable record of agreements 
        reached during the negotiations process is maintained.]
  (a) In General.--The Secretary may, in accordance with this 
section, issue such regulations as are reasonably necessary to 
ensure compliance with this title.
  (b) Public Involvement.--The Secretary shall obtain public 
involvement in the development of proposed regulations for this 
title. Before carrying out a negotiated rulemaking process as 
described in subsection (d) or publishing in the Federal 
Register proposed regulations to carry out this title, the 
Secretary shall obtain advice and recommendations from 
individuals, and representatives of groups, involved in student 
financial assistance programs under this title, such as 
students, institutions of higher education, financial aid 
administrators, accrediting agencies or associations, State 
student grant agencies, guaranty agencies, lenders, secondary 
markets, loan servicers, guaranty agency servicers, and 
collection agencies.
  (c) Meetings and Electronic Exchange.--
          (1) In general.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information 
        concerning the implementation of this title through 
        such mechanisms as regional meetings and electronic 
        exchanges of information. Such regional meetings and 
        electronic exchanges of information shall be public and 
        notice of such meetings and exchanges shall be provided 
        to--
                  (A) the authorizing committees at least 10 
                days prior to the notice to interested 
                stakeholders and the public described in 
                subparagraph (B); and
                  (B) interested stakeholders and the public at 
                least 30 days prior to such meetings and 
                exchanges.
          (2) Consideration.--The Secretary shall take into 
        account the information received through such 
        mechanisms in the development of proposed regulations 
        and shall publish a summary of such information in the 
        Federal Register prior to beginning the negotiated 
        rulemaking process described in subsection (d).
  (d) Negotiated Rulemaking Process.--
          (1) Negotiated rulemaking required.--All regulations 
        pertaining to this title that are promulgated after the 
        date of the enactment of this paragraph shall be 
        subject to the negotiated rulemaking process described 
        in this subsection (including the selection of the 
        issues to be negotiated), unless the Secretary--
                  (A) determines that applying such a 
                requirement with respect to given regulations 
                is impracticable, unnecessary, or contrary to 
                the public interest (within the meaning of 
                section 553(b)(3)(B) of title 5, United States 
                Code);
                  (B) publishes the basis for such 
                determination in the Federal Register at the 
                same time as the proposed regulations in 
                question are first published; and
                  (C) includes the basis for such determination 
                in the congressional notice under subsection 
                (e)(1).
          (2) Congressional notice and comments required.--
                  (A) Notice.--The Secretary shall provide 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 notice of the intent establish a 
                negotiated rulemaking committee that shall 
                include--
                          (i) the need to issue regulations;
                          (ii) the statutory and legal 
                        authority of the Secretary to regulate 
                        the issue;
                          (iii) the summary of public comments 
                        described in paragraph (2) of 
                        subsection (c);
                          (iv) the anticipated burden, 
                        including the time, cost, and paperwork 
                        burden, the regulations will have on 
                        institutions of higher education and 
                        other entities that may be impacted by 
                        the regulations; and
                          (v) any regulations that will be 
                        repealed when the new regulations are 
                        issued.
                  (B) Congressional comments.--The Secretary 
                shall not proceed with the negotiated 
                rulemaking process--
                          (i) until 10 days after the 
                        Secretary--
                                  (I) receives and addresses 
                                all comments from the 
                                authorizing committees; and
                                  (II) responds to the 
                                authorizing committees in 
                                writing with an explanation of 
                                how such comments have been 
                                addressed; or
                          (ii) until 60 days after providing 
                        the notice required under subparagraph 
                        (A) if the Secretary has not received 
                        comments under clause (i).
          (3) Process.--After obtaining advice and 
        recommendations under subsections (b) and (c), and 
        before publishing proposed regulations, the Secretary 
        shall--
                  (A) establish a negotiated rulemaking 
                process;
                  (B) select individuals to participate in such 
                process--
                          (i) from among individuals or groups 
                        that provided advice and 
                        recommendations under subsections (b) 
                        and (c), including--
                                  (I) representatives of such 
                                groups from Washington, D.C.; 
                                and
                                  (II) other industry 
                                participants; and
                          (ii) with demonstrated expertise or 
                        experience in the relevant subjects 
                        under negotiation, reflecting the 
                        diversity in the industry, representing 
                        both large and small participants, as 
                        well as individuals serving local areas 
                        and national markets;
                  (C) prepare a draft of proposed policy 
                options, which shall take into account comments 
                received from both the public and the 
                authorizing committees, that shall be provided 
                to the individuals selected by the Secretary 
                under subparagraph (B) and such authorizing 
                committees not less than 15 days before the 
                first meeting under such process; and
                  (D) ensure that the negotiation process is 
                conducted in a timely manner in order that the 
                final regulations may be issued by the 
                Secretary within the 360-day period described 
                in section 437(e) of the General Education 
                Provisions Act (20 U.S.C. 1232(e)).
          (4) Agreements and records.--
                  (A) Agreements.--All published proposed 
                regulations developed through the negotiation 
                process under this subsection shall conform to 
                all agreements resulting from such process 
                unless the Secretary reopens the negotiated 
                rulemaking process.
                  (B) Records.--The Secretary shall ensure that 
                a clear and reliable record is maintained of 
                agreements reached during a negotiation process 
                under this subsection.
  (e) Proposed Rulemaking.--If the Secretary determines 
pursuant to subsection (d)(1) that a negotiated rulemaking 
process is impracticable, unnecessary, or contrary to the 
public interest (within the meaning of section 553(b)(3)(B) of 
title 5, United States Code), or the individuals selected to 
participate in the process under subsection (d)(3)(B) fail to 
reach unanimous agreement on an issue being negotiated, the 
Secretary may propose regulations subject to subsection (f).
  (f) Requirements for Proposed Regulations.--Regulations 
proposed pursuant to subsection (e) shall meet the following 
procedural requirements:
          (1) Congressional notice.--Regardless of whether 
        congressional notice was submitted under subsection 
        (d)(2), the Secretary shall provide 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 notice that shall 
        include--
                  (A) a copy of the proposed regulations;
                  (B) the need to issue regulations;
                  (C) the statutory and legal authority of the 
                Secretary to regulate the issue;
                  (D) the anticipated burden, including the 
                time, cost, and paperwork burden, the 
                regulations will have on institutions of higher 
                education and other entities that may be 
                impacted by the regulations; and
                  (E) any regulations that will be repealed 
                when the new regulations are issued.
          (2) Congressional comments.--The Secretary may not 
        proceed with the rulemaking process--
                  (A) until 10 days after the Secretary--
                          (i) receives and addresses all 
                        comments from the authorizing 
                        committees; and
                          (ii) responds to the authorizing 
                        committees in writing with an 
                        explanation of how such comments have 
                        been addressed; or
                  (B) until 60 days after providing the notice 
                required under paragraph (1) if the Secretary 
                has not received comments under subparagraph 
                (A).
          (3) Comment and review period.--The comment and 
        review period for the proposed regulation shall be 90 
        days unless an emergency requires a shorter period, in 
        which case such period shall be not less than 45 days 
        and the Secretary shall--
                  (A) designate the proposed regulation as an 
                emergency, with an explanation of the 
                emergency, in the notice to the Congress under 
                paragraph (1);
                  (B) publish the length of the comment and 
                review period in such notice and in the Federal 
                Register; and
                  (C) conduct immediately thereafter regional 
                meetings to review such proposed regulation 
                before issuing any final regulation.
          (4) Independent assessment.--No regulation shall be 
        made final after the comment and review period until 
        the Secretary has published in the Federal Register an 
        independent assessment (which shall include a 
        representative sampling of institutions of higher 
        education based on sector, enrollment, urban, suburban, 
        or rural character, and other factors impacted by the 
        regulation) of--
                  (A) the burden, including the time, cost, and 
                paperwork burden, the final regulation will 
                impose on institutions and other entities that 
                may be impacted by the regulation;
                  (B) an explanation of how the entities 
                described in subparagraph (A) may cover the 
                cost of the burden assessed under such 
                subparagraph; and
                  (C) the regulation, including a thorough 
                assessment, based on the comments received 
                during the comment and review period under 
                paragraph (3), of whether the rule is 
                financially, operationally, and educationally 
                viable at the institutional level.
  [(c)] (f) Applicability of Federal Advisory Committee Act.--
The Federal Advisory Committee Act shall not apply to 
activities carried out under this section.
  [(d)] (g) Authorization of Appropriations.--There are 
authorized to be appropriated in any fiscal year or made 
available from funds appropriated to carry out this part in any 
fiscal year such sums as may be necessary to carry out the 
provisions of this section, except that if no funds are 
appropriated pursuant to this subsection, the Secretary shall 
make funds available to carry out this section from amounts 
appropriated for the operations and expenses of the Department 
of Education.

           *       *       *       *       *       *       *


SEC. 493C. INCOME-BASED REPAYMENT.

  (a) Definitions.--In this section:
          (1) Excepted plus loan.--The term ``excepted PLUS 
        loan'' means a loan under section 428B, or a Federal 
        Direct PLUS Loan, that is made, insured, or guaranteed 
        on behalf of a dependent student.
          (2) Excepted consolidation loan.--The term ``excepted 
        consolidation loan'' means a consolidation loan under 
        section 428C, or a Federal Direct Consolidation Loan, 
        if the proceeds of such loan were used to the discharge 
        the liability on an excepted PLUS loan.
          (3) Partial financial hardship.--The term ``partial 
        financial hardship'', when used with respect to a 
        borrower, means that for such borrower--
                  (A) the annual amount due on the total amount 
                of loans made, insured, or guaranteed under 
                part B or D (other than an excepted PLUS loan 
                or excepted consolidation loan) to a borrower 
                as calculated under the standard repayment plan 
                under section 428(b)(9)(A)(i) or 455(d)(1)(A), 
                based on a 10-year repayment period; exceeds
                  (B) 15 percent of the result obtained by 
                calculating, on at least an annual basis, the 
                amount by which--
                          (i) the borrower's, and the 
                        borrower's spouse's (if applicable), 
                        adjusted gross income; exceeds
                          (ii) 150 percent of the poverty line 
                        applicable to the borrower's family 
                        size as determined under section 673(2) 
                        of the Community Services Block Grant 
                        Act (42 U.S.C. 9902(2)).
  (b) Income-Based Repayment Program Authorized.--
Notwithstanding any other provision of this Act, the Secretary 
shall carry out a program under which--
          (1) a borrower of any loan made, insured, or 
        guaranteed under part B or D (other than an excepted 
        PLUS loan or excepted consolidation loan) who has a 
        partial financial hardship (whether or not the 
        borrower's loan has been submitted to a guaranty agency 
        for default aversion or had been in default) may elect, 
        during any period the borrower has the partial 
        financial hardship, to have the borrower's aggregate 
        monthly payment for all such loans not exceed the 
        result described in subsection (a)(3)(B) divided by 12;
          (2) the holder of such a loan shall apply the 
        borrower's monthly payment under this subsection first 
        toward interest due on the loan, next toward any fees 
        due on the loan, and then toward the principal of the 
        loan;
          (3) any interest due and not paid under paragraph 
        (2)--
                  (A) shall, on subsidized loans, be paid by 
                the Secretary for a period of not more than 3 
                years after the date of the borrower's election 
                under paragraph (1), except that such period 
                shall not include any period during which the 
                borrower is in deferment due to an economic 
                hardship described in section 435(o); and
                  (B) be capitalized--
                          (i) in the case of a subsidized loan, 
                        subject to subparagraph (A), at the 
                        time the borrower--
                                  (I) ends the election to make 
                                income-based repayment under 
                                this subsection; or
                                  (II) begins making payments 
                                of not less than the amount 
                                specified in paragraph (6)(A); 
                                or
                          (ii) in the case of an unsubsidized 
                        loan, at the time the borrower--
                                  (I) ends the election to make 
                                income-based repayment under 
                                this subsection; or
                                  (II) begins making payments 
                                of not less than the amount 
                                specified in paragraph (6)(A);
          (4) any principal due and not paid under paragraph 
        (2) shall be deferred;
          (5) the amount of time the borrower makes monthly 
        payments under paragraph (1) may exceed 10 years;
          (6) if the borrower no longer has a partial financial 
        hardship or no longer wishes to continue the election 
        under this subsection, then--
                  (A) the maximum monthly payment required to 
                be paid for all loans made to the borrower 
                under part B or D (other than an excepted PLUS 
                loan or excepted consolidation loan) shall not 
                exceed the monthly amount calculated under 
                section 428(b)(9)(A)(i) or 455(d)(1)(A), based 
                on a 10-year repayment period, when the 
                borrower first made the election described in 
                this subsection; and
                  (B) the amount of time the borrower is 
                permitted to repay such loans may exceed 10 
                years;
          (7) the Secretary shall repay or cancel any 
        outstanding balance of principal and interest due on 
        all loans made under part B or D (other than a loan 
        under section 428B or a Federal Direct PLUS Loan) to a 
        borrower who--
                  (A) at any time, elected to participate in 
                income-based repayment under paragraph (1); and
                  (B) for a period of time prescribed by the 
                Secretary, not to exceed 25 years, meets 1 or 
                more of the following requirements--
                          (i) has made reduced monthly payments 
                        under paragraph (1) or paragraph (6);
                          (ii) has made monthly payments of not 
                        less than the monthly amount calculated 
                        under section 428(b)(9)(A)(i) or 
                        455(d)(1)(A), based on a 10-year 
                        repayment period, when the borrower 
                        first made the election described in 
                        this subsection;
                          (iii) has made payments of not less 
                        than the payments required under a 
                        standard repayment plan under section 
                        428(b)(9)(A)(i) or 455(d)(1)(A) with a 
                        repayment period of 10 years;
                          (iv) has made payments under an 
                        income-contingent repayment plan under 
                        section 455(d)(1)(D); or
                          (v) has been in deferment due to an 
                        economic hardship described in section 
                        435(o);
          (8) a borrower who is repaying a loan made under part 
        B or D pursuant to income-based repayment may elect, at 
        any time, to terminate repayment pursuant to income-
        based repayment and repay such loan under the standard 
        repayment plan; and
          (9) the special allowance payment to a lender 
        calculated under section 438(b)(2)(I), when calculated 
        for a loan in repayment under this section, shall be 
        calculated on the principal balance of the loan and on 
        any accrued interest unpaid by the borrower in 
        accordance with this section.
  (c) Eligibility Determinations.--The Secretary shall 
establish procedures for annually determining the borrower's 
eligibility for income-based repayment, including verification 
of a borrower's annual income and the annual amount due on the 
total amount of loans made, insured, or guaranteed under part B 
or D (other than an excepted PLUS loan or excepted 
consolidation loan), and such other procedures as are necessary 
to effectively implement income-based repayment under this 
section. The Secretary shall consider, but is not limited to, 
the procedures established in accordance with section 455(e)(1) 
or in connection with income sensitive repayment schedules 
under section 428(b)(9)(A)(iii) or 428C(b)(1)(E).
  (d) Special Rule for Married Borrowers Filing Separately.--In 
the case of a married borrower who files a separate Federal 
income tax return, the Secretary shall calculate the amount of 
the borrower's income-based repayment under this section solely 
on the basis of the borrower's student loan debt and adjusted 
gross income.
  (e) Special Terms for New Borrowers on and After July 1, 
2014.--With respect to any loan made to a new borrower on or 
after July 1, 2014--
          (1) subsection (a)(3)(B) shall be applied by 
        substituting ``10 percent'' for ``15 percent''; and
          (2) subsection (b)(7)(B) shall be applied by 
        substituting ``20 years'' for ``25 years''.
  (f) Report.--
          (1) In general.--Not later than 180 days after the 
        date of enactment of the PROSPER Act, the Secretary 
        shall submit to the authorizing committees a report on 
        the efforts of the Department to detect and combat 
        fraud in the income-driven repayment plans described in 
        paragraph (2).
          (2) Income driven repayment plans defined.--The 
        income-driven repayment plans described in this 
        paragraph are the repayment plans made available 
        under--
                  (A) this section;
                  (B) subparagraphs (D) and (E) of section 
                455(d)(1); and
                  (C) section 455(e).

SEC. 493D. 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)(iii)] 464(c)(2)(A)(iii) (as in effect on the day 
before the date of enactment of the PROSPER Act and pursuant to 
section 461(a)), or 469A(a)(2)(A)(iii), 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 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.

SEC. 493E. CONTRACTS.

  (a) Contracts for Supplies and Services.--
          (1) In general.--The Secretary shall, to the extent 
        practicable, award contracts for origination, 
        servicing, and collection described in subsection (b). 
        In awarding such contracts, the Secretary shall ensure 
        that such services and supplies are provided at 
        competitive prices.
          (2) Entities.--The entities with which the Secretary 
        may enter into contracts shall include entities 
        qualified to provide such services and supplies and 
        will comply with the procedures applicable to the award 
        of such contracts. In the case of awarding contracts 
        for the origination, servicing, and collection of loans 
        under parts D and E, the Secretary shall enter into 
        contracts with entities that have extensive and 
        relevant experience and demonstrated effectiveness. The 
        entities with which the Secretary may enter into such 
        contracts may include, where practicable, agencies with 
        agreements with the Secretary under sections 428(b) and 
        (c), if such agencies meet the qualifications as 
        determined by the Secretary under this subsection and 
        if those agencies have such experience and demonstrated 
        effectiveness. In awarding contracts to such State 
        agencies, the Secretary shall, to the extent 
        practicable and consistent with the purposes of parts D 
        and E, give consideration to State agencies with a 
        history of high quality performance to perform services 
        for institutions of higher education within their 
        State.
          (3) Allocations.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall allocate 
                new borrower loan accounts to entities awarded 
                a contract under this section on the basis of--
                          (i) the performance of each such 
                        entity compared to other such entities 
                        performing similar work using common 
                        performance metrics (which may take 
                        into account, as appropriate, portfolio 
                        risk factors, including a borrower's 
                        time in repayment, category of 
                        institution of higher education 
                        attended, and completion of an 
                        educational program), as determined by 
                        the Secretary; and
                          (ii) the capacity of each such entity 
                        compared to other such entities 
                        performing similar work to service new 
                        and existing borrower loan accounts.
                  (B) Federal one consolidation loans.--Any 
                borrower who receives a Federal ONE 
                Consolidation Loan may select the entity 
                awarded a contract under this section to 
                service such loan.
          (4) Rule of construction.--Nothing in this section 
        shall be construed as a limitation of the authority of 
        any State agency to enter into an agreement for the 
        purposes of this section as a member of a consortium of 
        State agencies.
  (b) Contracts for Origination, Servicing, and Data Systems.--
The Secretary may enter into contracts for--
          (1) the servicing and collection of loans made or 
        purchased under part D or E;
          (2) the establishment and operation of 1 or more data 
        systems for the maintenance of records on all loans 
        made or purchased under part D or E; and
          (3) such other aspects of the direct student loan 
        program under part D or E necessary to ensure the 
        successful operation of the program.
  (c) Common Performance Manual.--
          (1) Consultation.--Not later than 180 days after the 
        date of enactment of the PROSPER Act and biannually 
        thereafter, the Secretary shall consult (in writing and 
        in person) with entities awarded contracts for loan 
        servicing under section 456 (as in effect on the day 
        before the date of enactment of the PROSPER Act) and 
        this section, to the extent practicable, to develop and 
        update as necessary, a guidance manual for entities 
        awarded contracts for loan servicing under this section 
        that provides such entities with best practices to 
        ensure borrowers receive adequate and consistent 
        service from such entities.
          (2) Provision of manual.--The Secretary shall provide 
        the most recent guidance manual developed and updated 
        under paragraph (1) to each entity awarded a contract 
        for loan serving under this section.
          (3) Annual report.--The Secretary shall provide to 
        the authorizing committees a report, on a annual basis, 
        detailing the consultation required under paragraph 
        (1).
  (d) Federal Preemption.--
          (1) In general.--Covered activities shall not be 
        subject to any law or other requirement of any State or 
        political subdivision of a State with respect to--
                  (A) disclosure requirements;
                  (B) requirements or restrictions on the 
                content, time, quantity, or frequency of 
                communications with borrowers, endorsers, or 
                references with respect to such loans; or
                  (C) any other requirement relating to the 
                servicing or collection of a loan made under 
                this title.
          (2) Servicing and collection.--The requirements of 
        this section with respect to any covered activity shall 
        preempt any law or other requirement of a State or 
        political subdivision of a State to the extent that 
        such law or other requirement would, in the absence of 
        this subsection, apply to such covered activity.
          (3) State licenses.--No qualified entity engaged in a 
        covered activity shall be required to obtain a license 
        from, or pay a licensing fee or other assessment to, 
        any State or political subdivision of a State relating 
        to such covered activity.
          (4) Definitions.--For purposes of this section:
                  (A) The term ``covered activity'' means any 
                of the following activities, as carried out by 
                a qualified entity:
                          (i) Origination of a loan made under 
                        this title.
                          (ii) Servicing of a loan made under 
                        this title.
                          (iii) Collection of a loan made under 
                        this title.
                          (iv) Any other activity related to 
                        the activities described in clauses (i) 
                        through (iii).
                  (B) The term ``qualified entity'' means an 
                organization, other than an institution of 
                higher education--
                          (i) that is responsible for the 
                        servicing or collection of a loan made 
                        under this title;
                          (ii) that has agreement with the 
                        Secretary under subsections (a) and (b) 
                        of section 428; or
                          (iii) that is under contract with an 
                        entity described in clause (i) or 
                        clause (ii) to support such entity's 
                        responsibilities under this title.
          (5) Limitation.--This subsection shall not have any 
        legal effect on any other preemption provision under 
        Federal law with respect to this title.

SEC. 493F. MATCHING PROGRAM.

  (a) In General.--The Secretary of Education and the Secretary 
of Veterans Affairs shall carry out a computer matching program 
under which the Secretary of Education identifies, on at least 
a quarterly basis, borrowers--
          (1) who have been assigned a disability rating of 100 
        percent (or a combination of ratings equaling 100 
        percent or more) by the Secretary of Veterans Affairs 
        for a service-connected disability (as defined in 
        section 101 of title 38, United States Code); or
          (2) who have been determined by the Secretary of 
        Veterans Affairs to be unemployable due to a service-
        connected condition, as described in section 437(a)(2).
  (b) Borrower Notification.--With respect to each borrower who 
is identified under subsection (a), the Secretary shall, as 
soon as practicable after such identification--
          (1) notify the borrower of the borrower's eligibility 
        for loan discharge under section 437(a); and
          (2) provide the borrower with simple instructions on 
        how to apply for such loan discharge, including an 
        explanation that the borrower shall not be required to 
        provide any documentation of the borrower's disability 
        rating to receive such discharge.
  (c) Data Collection and Report to Congress.--
          (1) In general.--The Secretary shall annually collect 
        and submit to the Committees on Education and the 
        Workforce and Veterans' Affairs of the House of 
        Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Veterans Affairs of 
        the Senate, data about borrowers applying for and 
        receiving loan discharges under section 437(a), which 
        shall be disaggregated in the manner described in 
        paragraph (2) and include the following:
                  (A) The number of applications received under 
                section 437(a).
                  (B) The number of such applications that were 
                approved.
                  (C) The number of loan discharges that were 
                completed under section 437(a).
          (2) Disaggregation.--The data collected under 
        paragraph (1) shall be disaggregated--
                  (A) by borrowers who applied under this 
                section for loan discharges under section 
                437(a);
                  (B) by borrowers who received loan discharges 
                as a result of applying for such discharges 
                under this section;
                  (C) by borrowers who applied for loan 
                discharges under section 437(a)(2); and
                  (D) by borrowers who received loan discharges 
                as a result of applying for such discharges 
                under section 437(a)(2).
  (d) Notification to Borrowers.--The Secretary shall notify 
each borrower whose liability on a loan has been discharged 
under section 437(a) that the liability on the loan has been so 
discharged.

                       PART H--PROGRAM INTEGRITY

                         Subpart 1--State Role

SEC. 495. STATE RESPONSIBILITIES.

  (a) State Responsibilities.--As part of the integrity program 
authorized by this part, each State, through one State agency 
or several State agencies selected by the State, shall--
          (1) furnish the Secretary, upon request, information 
        with respect to the process for licensing or other 
        authorization for institutions of higher education to 
        operate within the State;
          (2) notify the Secretary promptly whenever the State 
        revokes a license or other authority to operate an 
        institution of higher education; and
          (3) notify the Secretary promptly whenever the State 
        has credible evidence that an institution of higher 
        education within the State--
                  (A) has committed fraud in the administration 
                of the student assistance programs authorized 
                by this title; or
                  (B) has substantially violated a provision of 
                this title.
  [(b) Institutional Responsibility.--Each institution of 
higher education shall provide evidence to the Secretary that 
the institution has authority to operate within a State at the 
time the institution is certified under subpart 3.]
  (b) Institutional Responsibility.--Each institution of higher 
education shall provide evidence to the Secretary that the 
institution has authority to operate within each State in which 
it maintains a physical location at the time the institution is 
certified under subpart 3.
  (c) Treatment of Religious Institutions.--An institution 
shall be treated as legally authorized to operate educational 
programs beyond secondary education in a State under section 
101(a)(2) if the institution is--
          (1) recognized as a religious institution by the 
        State; and
          (2) because of the institution's status as a 
        religious institution, exempt from any provision of 
        State law that requires institutions to be authorized 
        by the State to operate educational programs beyond 
        secondary education.

               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) the accrediting agency or association shall be a 
        State, regional, or national agency or association and 
        shall demonstrate the ability and the experience to 
        operate as an accrediting agency or association within 
        the State, region, or nationally, as appropriate;
          (2) such agency or association--
                  [(A)(i) for the purpose of participation in 
                programs under this Act, has a voluntary 
                membership of institutions of higher education 
                and has as a principal purpose the accrediting 
                of institutions of higher education; or
                  [(ii) for the purpose of participation in 
                other programs administered by the Department 
                of Education or other Federal agencies, has a 
                voluntary membership and has as its principal 
                purpose the accrediting of institutions of 
                higher education or programs;]
                  (A) for the purpose of participation in 
                programs under this Act or other programs 
                administered by the Department of Education or 
                other Federal agencies, has a voluntary 
                membership of institutions of higher education 
                or other entities and has as a principal 
                purpose the accrediting of institutions of 
                higher education or programs;
                  (B) is a State agency approved by the 
                Secretary for the purpose described in 
                subparagraph (A); or
                  (C) is an agency or association that, for the 
                purpose of determining eligibility for student 
                assistance under this title, conducts 
                accreditation through (i) a voluntary 
                membership organization of individuals 
                participating in a profession, or (ii) an 
                agency or association which has as its 
                principal purpose the accreditation of programs 
                within institutions, which institutions are 
                accredited by another agency or association 
                recognized by the Secretary;
          (3) if such agency or association is an agency or 
        association described in--
                  (A) [subparagraph (A)(i)] subparagraph (A) or 
                (C) of paragraph (2), then such agency or 
                association is [separate] separately 
                incorporated 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) 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 respect the stated 
        mission of the institution of higher education as 
        defined by the institution, including religious 
        missions, and that ensure that the courses or programs 
        of instruction, training, or study offered by the 
        institution of higher education[, including distance 
        education or correspondence courses or programs,] are 
        of sufficient quality to achieve, for the duration of 
        the accreditation period, the stated objective for 
        which the courses or the programs are offered; [and]
          [(B) if such agency or association has or seeks to 
        include within its scope of recognition the evaluation 
        of the quality of institutions or programs offering 
        distance education or correspondence education, such 
        agency or association shall, in addition to meeting the 
        other requirements of this subpart, demonstrate to the 
        Secretary that--
                  [(i) the agency or association's standards 
                effectively address the quality of an 
                institution's distance education or 
                correspondence education in the areas 
                identified in paragraph (5), except that--
                          [(I) the agency or association shall 
                        not be required to have separate 
                        standards, procedures, or policies for 
                        the evaluation of distance education or 
                        correspondence education institutions 
                        or programs in order to meet the 
                        requirements of this subparagraph; and
                          [(II) in the case that the agency or 
                        association is recognized by the 
                        Secretary, the agency or association 
                        shall not be required to obtain the 
                        approval of the Secretary to expand its 
                        scope of accreditation to include 
                        distance education or correspondence 
                        education, provided that the agency or 
                        association notifies the Secretary in 
                        writing of the change in scope; and
                  [(ii) the agency or association requires an 
                institution that offers distance education or 
                correspondence education to have processes 
                through which the institution establishes that 
                the student who registers in a distance 
                education or correspondence education course or 
                program is the same student who participates in 
                and completes the program and receives the 
                academic credit;]
                  (B) such agency or association demonstrates 
                the ability to review, evaluate, and assess the 
                quality of any instruction delivery model or 
                method such agency or association has or seeks 
                to include within its scope of recognition, 
                without giving preference to or differentially 
                treating a particular instruction delivery 
                model or method offered by an institution of 
                higher education or program except that, in a 
                case in which the instruction delivery model 
                allows for the separation of the student from 
                the instructor--
                          (i) the agency or association 
                        requires the institution to have 
                        processes through which the institution 
                        establishes that the student who 
                        registers in a course or program is the 
                        same student who participates in, 
                        including, to the extent practicable, 
                        testing or other assessment, and 
                        completes the program and receives the 
                        academic credit; and
                          (ii) the agency or association 
                        requires that any process used by an 
                        institution to comply with the 
                        requirement under clause (i) does not 
                        infringe upon student privacy and is 
                        implemented in a manner that is 
                        minimally burdensome to the student; 
                        and
                  (C) if such an agency or association 
                evaluates or assesses the quality of 
                competency-based education programs, the 
                agency's or association's evaluation or 
                assessment --
                          (i) shall address effectively the 
                        quality of an institution's competency-
                        based education programs as set forth 
                        in paragraph (5), except that the 
                        agency or association is not required 
                        to have separate standards, procedures, 
                        or policies for the evaluation of 
                        competency-based education;
                          (ii) shall establish whether an 
                        institution has demonstrated that its 
                        program satisfies the definitions in 
                        section 103(25); and
                          (iii) shall establish whether an 
                        institution has demonstrated that it 
                        has defined an academic year for a 
                        competency-based program in accordance 
                        with section 481(a)(3).
          [(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, which may include different standards 
                for different institutions or programs, as 
                established by the institution, including, as 
                appropriate, consideration of State licensing 
                examinations, consideration of course 
                completion, and job placement rates;
                  [(B) curricula;
                  [(C) faculty;
                  [(D) facilities, equipment, and supplies;
                  [(E) fiscal and administrative capacity as 
                appropriate to the specified scale of 
                operations;
                  [(F) student support services;
                  [(G) recruiting and admissions practices, 
                academic calendars, catalogs, publications, 
                grading and advertising;
                  [(H) measures of program length and the 
                objectives of the degrees or credentials 
                offered;
                  [(I) record of student complaints received 
                by, or available to, the agency or association; 
                and
                  [(J) record of compliance with its program 
                responsibilities under title IV of this Act 
                based on the most recent student loan default 
                rate data provided by the Secretary, the 
                results of financial or compliance audits, 
                program reviews, and any such other information 
                as the Secretary may provide to the agency or 
                association;
        except that subparagraphs (A), (H), and (J) shall not 
        apply to agencies or associations described in 
        paragraph (2)(A)(ii) of this subsection;]
          (5) the standards for accreditation of the agency or 
        association assess the institution's success with 
        respect to student learning and educational outcomes in 
        relation to the institution's mission, which may 
        include different standards for different institutions 
        or programs, except that the standards shall include 
        consideration of student learning and educational 
        outcomes in relation to expected measures of student 
        learning and educational outcomes, which at the 
        agency's or association's discretion are established--
                  (A) by the agency or association; or
                  (B) by the institution or program, at the 
                institution or program level, as the case may 
                be, if the institution or program--
                          (i) defines expected student learning 
                        goals and educational outcomes;
                          (ii) measures and evaluates student 
                        learning, educational outcomes, and, if 
                        appropriate, other outcomes of the 
                        students who complete their program of 
                        study;
                          (iii) uses information about student 
                        learning, educational outcomes, and, if 
                        appropriate, other outcomes, to improve 
                        the institution or program; and
                          (iv) makes such information available 
                        to appropriate constituencies;
          (6) such an agency or association shall establish and 
        apply review procedures throughout the accrediting 
        process, including evaluation and withdrawal 
        proceedings, which comply with due process procedures 
        that provide--
                  (A) for adequate written specification of--
                          (i) requirements, including clear 
                        standards for an institution of higher 
                        education or program to be accredited; 
                        and
                          (ii) identified deficiencies at the 
                        institution or program examined;
                  (B) for sufficient opportunity for a written 
                response, by an institution or program, 
                regarding any deficiencies identified by the 
                agency or association to be considered by the 
                agency or association--
                          (i) within a timeframe determined by 
                        the agency or association; and
                          (ii) prior to final action in the 
                        evaluation and withdrawal proceedings;
                  (C) upon the written request of an 
                institution or program, for an opportunity for 
                the institution or program to appeal any 
                adverse action under this section, including 
                denial, withdrawal, suspension, or termination 
                of accreditation, taken against the institution 
                or program, prior to such action becoming final 
                at a hearing before an appeals panel that--
                          (i) shall not include current members 
                        of the agency's or association's 
                        underlying decisionmaking body that 
                        made the adverse decision; and
                          (ii) is subject to a conflict of 
                        interest policy;
                  (D) for the right to representation and 
                participation by counsel for an institution or 
                program during an appeal of the adverse action;
                  (E) for a process, in accordance with written 
                procedures developed by the agency or 
                association, through which an institution or 
                program, before a final adverse action based 
                solely upon a failure to meet a standard or 
                criterion pertaining to finances, may on one 
                occasion seek review of significant financial 
                information that was unavailable to the 
                institution or program prior to the 
                determination of the adverse action, and that 
                bears materially on the financial deficiencies 
                identified by the agency or association;
                  (F) in the case that the agency or 
                association determines that the new financial 
                information submitted by the institution or 
                program under subparagraph (E) meets the 
                criteria of significance and materiality 
                described in such subparagraph, for 
                consideration by the agency or association of 
                the new financial information prior to the 
                adverse action described in such subparagraph 
                becoming final; and
                  (G) that any determination by the agency or 
                association made with respect to the new 
                financial information described in subparagraph 
                (E) shall not be separately appealable by the 
                institution or program;
          (7) such agency or association shall notify the 
        Secretary and the appropriate State licensing or 
        authorizing agency within 30 days of the accreditation 
        of an institution or any final denial, withdrawal, 
        suspension, or termination of accreditation or 
        placement on probation of an institution, together with 
        any other adverse action taken with respect to an 
        institution; and
          (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.
  (b)  [Separate] Separately Incorporated and Independent 
Defined.--For the purpose of subsection (a)(3), the term 
``[separate] separately incorporated and independent'' means 
that--
          (1) the members of the postsecondary education 
        governing body of the accrediting agency or association 
        are not elected or selected by the board or chief 
        executive officer of any related, associated, or 
        affiliated trade association or membership 
        organization;
          (2) among the membership of the board of the 
        accrediting agency or association there shall be one 
        public member (who is not a member of any related trade 
        or membership organization) for each six members of the 
        board, with a minimum of one such public member who 
        shall represent business, and guidelines are 
        established for such members to avoid conflicts of 
        interest;
          (3) dues to the accrediting agency or association are 
        paid separately from any dues paid to any related, 
        associated, or affiliated trade association or 
        membership organization; and
          (4) the budget of the accrediting agency or 
        association is developed and determined by the 
        accrediting agency or association without review or 
        resort to consultation with any other entity or 
        organization and is maintained separately from any such 
        entity or organization.
  (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 
        (which may vary based on institutional risk consistent 
        with policies promulgated by the agency or association 
        to determine such risk and interval frequency as 
        allowed under subsection (p)), 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] competency-based education;
          (2) develops a mechanism to identify institutions or 
        programs accredited by the agency or association that 
        may be experiencing difficulties accomplishing their 
        missions with respect to the student learning and 
        educational outcome goals established under subsection 
        (a)(5) and--
                  (A) as appropriate, uses information such as 
                student loan default or repayment rates, 
                retention or graduation rates, evidence of 
                student learning, financial data, and other 
                indicators to identify such institutions;
                  (B) not less than annually, evaluates the 
                extent to which those identified institutions 
                or programs continue to be in compliance with 
                the agency or association's standards; and
                  (C) as appropriate, requires the institution 
                or program to address deficiencies and ensure 
                that any plan to address and remedy 
                deficiencies is successfully implemented.
          [(2)] (3) monitors the growth of programs at 
        institutions that are experiencing significant 
        enrollment growth;
          [(3)] (4) requires an institution to submit for 
        approval to the accrediting agency a teach-out plan 
        upon the occurrence of any of the following events:
                  (A) the Department notifies the accrediting 
                agency of an action against the institution 
                pursuant to section [487(f)] 487(e);
                  (B) the accrediting agency acts to withdraw, 
                terminate, or suspend the accreditation of the 
                institution; or
                  (C) the institution notifies the accrediting 
                agency that the institution intends to cease 
                operations;
          [(4) requires that any institution of higher 
        education subject to its jurisdiction which plans to 
        establish a branch campus submit a business plan, 
        including projected revenues and expenditures, prior to 
        opening the branch campus;
          [(5) agrees to conduct, as soon as practicable, but 
        within a period of not more than 6 months of the 
        establishment of a new branch campus or a change of 
        ownership of an institution of higher education, an on-
        site visit of that branch campus or of the institution 
        after a change of ownership;]
          (5) establishes and applies or maintains policies 
        which ensure that any substantive change to the 
        educational mission, program, or programs of an 
        institution after the agency or association has granted 
        the institution accreditation or preaccreditation 
        status does not adversely affect the capacity of the 
        institution to continue to meet the agency's or 
        association's standards for such accreditation or 
        preaccreditation status, which shall include policies 
        that--
                  (A) require the institution to obtain the 
                agency's or association's approval of the 
                substantive change before the agency or 
                association includes the change in the scope of 
                the institution's accreditation or 
                preaccreditation status; and
                  (B) define substantive change to include, at 
                a minimum--
                          (i) any change in the established 
                        mission or objectives of the 
                        institution;
                          (ii) any change in the legal status, 
                        form of control, or ownership of the 
                        institution;
                          (iii) the addition of courses, 
                        programs of instruction, training, or 
                        study, or credentials or degrees that 
                        represent a significant departure from 
                        the courses, programs, or credentials 
                        or degrees that were offered at time 
                        the agency or association last 
                        evaluated the institution; or
                          (iv) the entering into a contract 
                        under which an institution or 
                        organization not certified to 
                        participate programs under title IV 
                        provides a portion of an accredited 
                        institution's educational program that 
                        is greater than 25 percent;
          (6) requires that teach-out agreements among 
        institutions are subject to approval by the accrediting 
        agency or association consistent with standards 
        promulgated by such agency or association;
          (7) makes available to the public, on the agency's or 
        association's website, and the State licensing or 
        authorizing agency, and submits to the Secretary, a 
        summary of agency or association actions, including--
                  (A) the award of accreditation or 
                reaccreditation of an institution;
                  (B) final denial, withdrawal, suspension, or 
                termination of accreditation of an institution, 
                and any findings made in connection with the 
                action taken, together with the official 
                comments of the affected institution; and
                  (C) any other adverse action taken with 
                respect to an institution or placement on 
                probation of an institution, and a summary of 
                why such action was taken or such placement was 
                made;
          (8) discloses publicly whenever an institution of 
        higher education subject to its jurisdiction is being 
        considered for accreditation or reaccreditation; [and]
          (9) confirms, as a part of the agency's or 
        association's review for accreditation or 
        reaccreditation, that the institution has transfer of 
        credit policies--
                  (A) that are publicly disclosed; and
                  (B) that include a statement of the criteria 
                established by the institution regarding the 
                transfer of credit earned at another 
                institution of higher education[.];
          (10) makes publicly available, on the agency or 
        association's website, a list of the institutions of 
        higher education accredited by such agency or 
        association, which includes, with respect to each 
        institution on the list---
                  (A) the year accreditation was granted;
                  (B) the most recent date of a comprehensive 
                evaluation of the institution under paragraph 
                (1); and
                  (C) the anticipated date of the next such 
                evaluation; and
          (11) confirms, as a part of the agency's or 
        association's review for accreditation or 
        reaccreditation, that the institution's website 
        includes consumer information described section 
        paragraphs (1) and (2) of section 132(d).
  (d) Length of Recognition.--No accrediting agency or 
association may be recognized by the Secretary for the purpose 
of this Act for a period of more than 5 years.
  (e) Initial Arbitration Rule.--[The Secretary]
          (1) In general._Subject to paragraph (2), the 
        Secretary  may not recognize the accreditation of any 
        institution of higher education unless the institution 
        of higher education agrees to submit any dispute 
        involving the final denial, withdrawal, or termination 
        of accreditation to initial arbitration prior to any 
        other legal action.
          (2) Exception.--Paragraph (1) shall not apply in the 
        case of an institution described in subsection (j).
  (f) Jurisdiction.--Notwithstanding any other provision of 
law, any civil action brought by an institution of higher 
education seeking accreditation from, or accredited by, an 
accrediting agency or association recognized by the Secretary 
for the purpose of this title and involving the denial, 
withdrawal, or termination of accreditation of the institution 
of higher education, shall be brought in the appropriate United 
States district court.
  (g) Limitation on Scope of Criteria.--Nothing in this Act 
shall be construed to permit the Secretary to establish 
criteria for accrediting agencies or associations that are not 
required by this section. Nothing in this Act shall be 
construed to prohibit or limit any accrediting agency or 
association from adopting additional standards not provided for 
in this section. Nothing in this section shall be construed to 
permit the Secretary to establish any criteria that specifies, 
defines, or prescribes the standards that accrediting agencies 
or associations shall use to assess any institution's success 
with respect to student achievement.
  [(h) Change of Accrediting Agency.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is in the process of changing its accrediting agency 
or association, unless the eligible institution submits to the 
Secretary all materials relating to the prior accreditation, 
including materials demonstrating reasonable cause for changing 
the accrediting agency or association.]
  (h) Change of Accrediting Agency or Association.--
          (1) In general.--The Secretary shall not recognize 
        the accreditation of any otherwise eligible institution 
        of higher education if the institution is in the 
        process of changing its accrediting agency or 
        association and is subject to one or more of the 
        following actions, unless the eligible institution 
        submits to the Secretary materials demonstrating a 
        reasonable cause for changing the accrediting agency or 
        association:
                  (A) A pending or final action brought by a 
                State agency to suspend, revoke, withdraw, or 
                terminate the institution's legal authority to 
                provide postsecondary education in the State.
                  (B) A decision by a recognized accrediting 
                agency or association to deny accreditation or 
                preaccreditation to the institution.
                  (C) A pending or final action brought by a 
                recognized accrediting agency or association to 
                suspend, revoke, withdraw, or terminate the 
                institution's accreditation or 
                preaccreditation.
                  (D) Probation or an equivalent status imposed 
                on the institution by a recognized accrediting 
                agency or association.
          (2) Rule of construction.--Nothing in this subsection 
        shall be construed to restrict the ability of an 
        institution of higher education not subject to an 
        action described in paragraph (1) and otherwise in good 
        standing to change accrediting agencies or associations 
        without the approval of the Secretary as long as the 
        institution notifies the Secretary of the change.
  (i) Dual Accreditation Rule.--The Secretary shall not 
recognize the accreditation of any otherwise eligible 
institution of higher education if the institution of higher 
education is accredited, as an institution, by more than one 
accrediting agency or association, unless the institution 
submits to each such agency and association and to the 
Secretary the reasons for accreditation by more than one such 
agency or association and demonstrates to the Secretary 
reasonable cause for its accreditation by more than one agency 
or association. If the institution is accredited, as an 
institution, by more than one accrediting agency or 
association, the institution shall designate which agency's 
accreditation shall be utilized in determining the 
institution's eligibility for programs under this Act.
  (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) is not currently accredited by any agency or 
        association recognized by the Secretary;
          (2) has had its accreditation withdrawn, revoked, or 
        otherwise terminated for cause during the preceding 24 
        months, unless such withdrawal, revocation, or 
        termination has been rescinded by the same accrediting 
        agency; or
          (3) has withdrawn from accreditation voluntarily 
        under a show cause or suspension order during the 
        preceding 24 months, unless such order has been 
        rescinded by the same accrediting agency.
  [(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 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) is related to the religious mission or 
        affiliation of the institution; and
          [(2) is not related to the accreditation criteria 
        provided for in this section.]
  (k) Religious Institution Rule.--
          (1) In general.--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 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 withdrawal, 
        revocation, or termination--
                  (A) is related to the religious mission or 
                affiliation of the institution; and
                  (B) is not related to the accreditation 
                criteria provided for in this section.
          (2) Requirements.--For purposes of this section the 
        following shall apply:
                  (A) The religious mission of an institution 
                may be reflected in the institution's religious 
                tenets, beliefs, or teachings, and any policies 
                or decisions related to such tenets, beliefs, 
                or teachings (including any policies or 
                decisions concerning housing, employment, 
                curriculum, self-governance, or student 
                admission, continuing enrollment, or 
                graduation).
                  (B) An agency or association's standard fails 
                to respect an institution's religious mission 
                when the institution determines that the 
                standard induces, pressures, or coerces the 
                institution to act contrary to, or to refrain 
                from acting in support of, any aspect of its 
                religious mission.
          (3) Administrative complaint for failure to respect 
        religious mission.--
                  (A) In general.--
                          (i) Institution.--If an institution 
                        of higher education believes that an 
                        adverse action of an accrediting agency 
                        or association fails to respect the 
                        institution's religious mission in 
                        violation of subsection (a)(4)(A), the 
                        institution--
                                  (I) may file a complaint with 
                                the Secretary to require the 
                                agency or association to 
                                withdraw the adverse action; 
                                and
                                  (II) prior to filing such 
                                complaint, shall notify the 
                                Secretary and the agency or 
                                association of an intent to 
                                file such complaint not later 
                                than 30 days after--
                                          (aa) receiving the 
                                        adverse action from the 
                                        agency or association; 
                                        or
                                          (bb) determining that 
                                        discussions with or the 
                                        processes of the agency 
                                        or association to 
                                        remedy the failure to 
                                        respect the religious 
                                        mission of the 
                                        institution will fail 
                                        to result in the 
                                        withdrawal of the 
                                        adverse action by the 
                                        agency or association.
                          (ii) Accrediting agency or 
                        association.--Upon notification of an 
                        intent to file a complaint and through 
                        the duration of the complaint process 
                        under this paragraph, the Secretary and 
                        the accrediting agency or association 
                        shall treat the accreditation status of 
                        the institution of higher education as 
                        if the adverse action for which the 
                        institution is filing the complaint had 
                        not been taken.
                  (B) Complaint.--Not later than 45 days after 
                providing notice of the intent to file a 
                complaint, the institution shall file the 
                complaint with the Secretary (and provide a 
                copy to the accrediting agency or association), 
                which shall include--
                          (i) a description of the adverse 
                        action;
                          (ii) how the adverse action fails to 
                        respect the institution's religious 
                        mission in violation of subsection 
                        (a)(4)(A); and
                          (iii) any other information the 
                        institution determines relevant to the 
                        complaint.
                  (C) Response.--
                          (i) In general.--The accrediting 
                        agency or association shall have 30 
                        days from the date the complaint is 
                        filed with the Secretary to file with 
                        the Secretary (and provide a copy to 
                        the institution) a response to the 
                        complaint, which response shall 
                        include--
                                  (I) how the adverse action is 
                                based on a violation of the 
                                agency or association's 
                                standards for accreditation; 
                                and
                                  (II) how the adverse action 
                                does not fail to respect the 
                                religious mission of the 
                                institution and is in 
                                compliance with subsection 
                                (a)(4)(A).
                          (ii) Burden of proof.--
                                  (I) In general.--The 
                                accrediting agency or 
                                association shall bear the 
                                burden of proving that the 
                                agency or association has not 
                                taken the adverse action as a 
                                result of the institution's 
                                religious mission, and that the 
                                action does not fail to respect 
                                the institution's religious 
                                mission in violation of 
                                subsection (a)(4)(A), by 
                                showing that the adverse action 
                                does not impact the aspect of 
                                the religious claimed to be 
                                affected in the complaint.
                                  (II) Insufficient proof.--Any 
                                evidence that the adverse 
                                action results from the 
                                application of a neutral and 
                                generally applicable rule shall 
                                be insufficient to prove that 
                                the action does not fail to 
                                respect an institution's 
                                religious mission.
                  (D) Additional institution response.--The 
                institution shall have 15 days from the date on 
                which the agency or association's response is 
                filed with the Secretary to--
                          (i) file with the Secretary (and 
                        provide a copy to the agency or 
                        association) a response to any issues 
                        raised in the response of the agency or 
                        association; or
                          (ii) inform the Secretary and the 
                        agency or association that the 
                        institution elects to waive the right 
                        to respond to the response of the 
                        agency or association.
                  (E) Secretarial action.--
                          (i) In general.--Not later than 15 
                        days of receipt of the institution's 
                        response under subparagraph (D) or 
                        notification that the institution 
                        elects not to file a response under 
                        such subparagraph--
                                  (I) the Secretary shall 
                                review the materials to 
                                determine if the accrediting 
                                agency or association has met 
                                its burden of proof under 
                                subparagraph (C)(ii)(I); or
                                  (II) in a case in which the 
                                Secretary fails to conduct such 
                                review--
                                          (aa) the Secretary 
                                        shall be deemed as 
                                        determining that the 
                                        adverse action fails to 
                                        respect the religious 
                                        mission of the 
                                        institution; and
                                          (bb) the accrediting 
                                        agency or association 
                                        shall be required to 
                                        reverse the action 
                                        immediately and take no 
                                        further action with 
                                        respect to such adverse 
                                        action.
                          (ii) Review of complaint.--In 
                        reviewing the complaint under clause 
                        (i)(I)--
                                  (I) the Secretary shall 
                                consider the institution to be 
                                correct in the assertion that 
                                the adverse action fails to 
                                respect the institution's 
                                religious mission and shall 
                                apply the burden of proof 
                                described in subparagraph 
                                (C)(ii)(I) with respect to the 
                                accrediting agency or 
                                association; and
                                  (II) if the Secretary 
                                determines that the accrediting 
                                agency or association fails to 
                                meet such burden of proof--
                                          (aa) the Secretary 
                                        shall notify the 
                                        institution and the 
                                        agency or association 
                                        that the agency or 
                                        association is not in 
                                        compliance with 
                                        subsection (a)(4)(A), 
                                        and that such agency or 
                                        association shall carry 
                                        out the requirements of 
                                        item (bb) to be in 
                                        compliance subsection 
                                        (a)(4)(A); and
                                          (bb) the agency or 
                                        association shall 
                                        reverse the adverse 
                                        action immediately and 
                                        take no further action 
                                        with respect to such 
                                        adverse action.
                          (iii) Final departmental action.--The 
                        Secretary's determination under this 
                        subparagraph shall be the final action 
                        of the Department on the complaint.
                  (F) Rule of construction.--Nothing in this 
                paragraph shall prohibit--
                          (i) an accrediting agency or 
                        association from taking an adverse 
                        action against an institution of higher 
                        education for a failure to comply with 
                        the agency or association's standards 
                        of accreditation as long as such 
                        standards are in compliance with 
                        subsection (a)(4)(A) and any other 
                        applicable requirements of this 
                        section; or
                          (ii) an institution of higher 
                        education from exercising any other 
                        rights to address concerns with respect 
                        to an accrediting agency or association 
                        or the accreditation process of an 
                        accrediting agency or association.
                  (G) Guidance.--
                          (i) In general.--The Secretary may 
                        only issue guidance under this 
                        paragraph that explains or clarifies 
                        the process for providing notice of an 
                        intent to file a complaint or for 
                        filing a complaint under this 
                        paragraph.
                          (ii) Clarification.--The Secretary 
                        may not issue guidance, or otherwise 
                        determine or suggest, when discussions 
                        to remedy the failure by an accrediting 
                        agency or association to respect the 
                        religious mission of an institution of 
                        higher education referred to in 
                        subparagraph (A)(i)(II)(bb) have failed 
                        or will fail.
  (l) Limitation, Suspension, or Termination of Recognition.--
(1) If the Secretary determines that an accrediting agency or 
association has failed to apply effectively the criteria in 
this section, or is otherwise not in compliance with the 
requirements of this section, the Secretary shall--
          (A) after notice and opportunity for a hearing, 
        limit, suspend, or terminate the recognition of the 
        agency or association; or
          (B) require the agency or association to take 
        appropriate action to bring the agency or association 
        into compliance with such requirements within a 
        timeframe specified by the Secretary, except that--
                  (i) such timeframe shall not exceed 12 months 
                unless the Secretary extends such period for 
                good cause; and
                  (ii) if the agency or association fails to 
                bring the agency or association into compliance 
                within such timeframe, the Secretary shall, 
                after notice and opportunity for a hearing, 
                limit, suspend, or terminate the recognition of 
                the agency or association.
  (2) The Secretary may determine that an accrediting agency or 
association has failed to apply effectively the standards 
provided in this section if an institution of higher education 
seeks and receives accreditation from the accrediting agency or 
association during any period in which the institution is the 
subject of any interim action by another accrediting agency or 
association, described in paragraph (2)(A)(i), (2)(B), or 
(2)(C) of subsection (a) of this section, leading to the 
suspension, revocation, or termination of accreditation or the 
institution has been notified of the threatened loss of 
accreditation, and the due process procedures required by such 
suspension, revocation, termination, or threatened loss have 
not been completed.
  (m) Limitation on the Secretary's Authority.--The Secretary 
may only recognize accrediting agencies or associations which 
accredit institutions of higher education for the purpose of 
enabling such institutions to establish eligibility to 
participate in the programs under this Act or which accredit 
institutions of higher education or higher education programs 
for the purpose of enabling them to establish eligibility to 
participate in other programs administered by the Department of 
Education or other Federal agencies.
  (n) Independent Evaluation.--(1) The Secretary shall conduct 
a comprehensive review and evaluation of the performance of all 
accrediting agencies or associations which seek recognition by 
the Secretary in order to determine whether such accrediting 
agencies or associations meet the criteria established by this 
section. The Secretary shall conduct an independent evaluation 
of the information provided by such agency or association. Such 
evaluation shall include--
          (A) the solicitation of third-party information 
        concerning the performance of the accrediting agency or 
        association; and
          (B) site visits, including unannounced site visits as 
        appropriate, at accrediting agencies and associations, 
        and, at the Secretary's discretion, at representative 
        member institutions.
  (2) The Secretary shall place a priority for review of 
accrediting agencies or associations on those agencies or 
associations that accredit institutions of higher education 
that participate most extensively in the programs authorized by 
this title and on those agencies or associations which have 
been the subject of the most complaints or legal actions.
  (3) The Secretary shall consider all available relevant 
information concerning the compliance of the accrediting agency 
or association with the criteria provided for in this section, 
including any complaints or legal actions against such agency 
or association. In cases where deficiencies in the performance 
of an accreditation agency or association with respect to the 
requirements of this section are noted, the Secretary shall 
take these deficiencies into account in the recognition 
process. The Secretary shall not, under any circumstances, base 
decisions on the recognition or denial of recognition of 
accreditation agencies or associations on criteria other than 
those contained in this section. When the Secretary decides to 
recognize an accrediting agency or association, the Secretary 
shall determine the agency or association's scope of 
recognition. If the agency or association reviews institutions 
offering [distance education courses or programs] competency-
based education programs and the Secretary determines that the 
agency or association meets the requirements of this section, 
then the agency shall be recognized and the scope of 
recognition shall include accreditation of institutions 
offering [distance education courses or programs] competency-
based education programs.
  (4) The Secretary shall maintain sufficient documentation to 
support the conclusions reached in the recognition process, 
and, if the Secretary does not recognize any accreditation 
agency or association, shall make publicly available the reason 
for denying recognition, including reference to the specific 
criteria under this section which have not been fulfilled.
  (o) Regulations.--The Secretary shall by regulation provide 
procedures for the recognition of accrediting agencies or 
associations and for the appeal of the Secretary's decisions. 
Notwithstanding any other provision of law, the Secretary shall 
not promulgate any regulation with respect to the standards of 
an accreditation agency or association described in subsection 
(a)(5), or with respect to the policies and procedures of an 
accreditation agency or association described in paragraph (2) 
or (5) of subsection (c) or how the agency or association 
carries out such policies and procedures.
  [(p) Rule of Construction.--Nothing in subsection (a)(5) 
shall be construed to restrict the ability of--
          [(1) an accrediting agency or association to set, 
        with the involvement of its members, and to apply, 
        accreditation standards for or to institutions or 
        programs that seek review by the agency or association; 
        or
          [(2) an institution to develop and use institutional 
        standards to show its success with respect to student 
        achievement, which achievement may be considered as 
        part of any accreditation review.
  [(q) Review of Scope Changes.--The Secretary shall require a 
review, at the next available meeting of the National Advisory 
Committee on Institutional Quality and Integrity, of any change 
in scope undertaken by an agency or association under 
subsection (a)(4)(B)(i)(II) if the enrollment of an institution 
that offers distance education or correspondence education that 
is accredited by such agency or association increases by 50 
percent or more within any one institutional fiscal year.]
  (p) Risk-based or Differentiated Review Processes or 
Procedures.--
          (1) In general.--Notwithstanding any other provision 
        of law (including subsection (a)(4)(A)), an accrediting 
        agency or association may establish, with the 
        involvement of its membership, risk-based or 
        differentiated review processes or procedures for 
        assessing compliance with the accrediting agency or 
        association's standards, including policies related to 
        substantive change and award of accreditation statuses, 
        for institutions of higher education or programs that 
        have demonstrated exceptional past performance with 
        respect to meeting the accrediting agency or 
        association's standards.
          (2) Prohibition.--Risk-based or differentiated review 
        processes or procedures shall not discriminate against, 
        or otherwise preclude, institutions of higher education 
        based on institutional sector or category, including an 
        institution of higher education's tax status.
          (3) Rule of construction.--Nothing in this subsection 
        shall be construed to permit the Secretary to establish 
        any criterion that specifies, defines, or prescribes an 
        accrediting agency or association's risk-based or 
        differentiated review process or procedure.
  (q) Waiver.--The Secretary shall establish a process through 
which an agency or association may seek to have a requirement 
of this subpart waived, if such agency or association--
          (1) demonstrates that such waiver is necessary to 
        enable an institution of higher education or program 
        accredited by the agency or association to implement 
        innovative practices intended to--
                  (A) reduce administrative burdens to the 
                institution or program without creating costs 
                for the taxpayer; or
                  (B) improve the delivery of services to 
                students, improve instruction or learning 
                outcomes, or otherwise benefit students; and
          (2) describes the terms and conditions that will be 
        placed upon the program or institution to ensure 
        academic integrity and quality.

          Subpart 3--Eligibility and Certification Procedures

SEC. 498. ELIGIBILITY AND CERTIFICATION PROCEDURES.

  (a) General Requirement.--[For purposes of]
          (1) In general._For purposes of  qualifying 
        institutions of higher education for participation in 
        programs under this title, the Secretary shall 
        determine, subject to paragraph (2), the legal 
        authority to operate within a State, the accreditation 
        status, and the administrative capability and financial 
        responsibility of an institution of higher education in 
        accordance with the requirements of this section.
          (2) Special rule.--The determination of whether an 
        institution of higher education is legally authorized 
        to operate in a State under section 101(a)(2) shall be 
        based solely on that State's laws.
  (b) Single Application Form.--The Secretary shall prepare and 
prescribe a single application form which--
          (1) requires sufficient information and documentation 
        to determine that the requirements of eligibility, 
        accreditation, financial responsibility, and 
        administrative capability of the institution of higher 
        education are met;
          (2) requires a specific description of the 
        relationship between a main campus of an institution of 
        higher education and all of its branches, including a 
        description of the student aid processing that is 
        performed by the main campus and that which is 
        performed at its branches;
          (3) requires--
                  (A) a description of the third party 
                servicers of an institution of higher 
                education; and
                  (B) the institution to maintain a copy of any 
                contract with a financial aid service provider 
                or loan servicer, and provide a copy of any 
                such contract to the Secretary upon request;
          (4) requires such other information as the Secretary 
        determines will ensure compliance with the requirements 
        of this title with respect to eligibility, 
        accreditation, administrative capability and financial 
        responsibility; and
          (5) provides, at the option of the institution, for 
        participation in one or more of the programs under part 
        [B or D] E.
  [(c) Financial Responsibility Standards.--(1) The Secretary 
shall determine whether an institution has the financial 
responsibility required by this title on the basis of whether 
the institution is able--
          [(A) to provide the services described in its 
        official publications and statements;
          [(B) to provide the administrative resources 
        necessary to comply with the requirements of this 
        title; and
          [(C) to meet all of its financial obligations, 
        including (but not limited to) refunds of institutional 
        charges and repayments to the Secretary for liabilities 
        and debts incurred in programs administered by the 
        Secretary.
  [(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, 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.
  [(3) The Secretary shall determine an institution to be 
financially responsible, notwithstanding the institution's 
failure to meet the criteria under paragraphs (1) and (2), if--
          [(A) such institution submits to the Secretary third-
        party financial guarantees that the Secretary 
        determines are reasonable, such as performance bonds or 
        letters of credit payable to the Secretary, which 
        third-party financial guarantees shall equal not less 
        than one-half of the annual potential liabilities of 
        such institution to the Secretary for funds under this 
        title, including loan obligations discharged pursuant 
        to section 437, and to students for refunds of 
        institutional charges, including funds under this 
        title;
          [(B) such institution has its liabilities backed by 
        the full faith and credit of a State, or its 
        equivalent;
          [(C) such institution establishes to the satisfaction 
        of the Secretary, with the support of a financial 
        statement audited by an independent certified public 
        accountant in accordance with generally accepted 
        auditing standards, that the institution has sufficient 
        resources to ensure against the precipitous closure of 
        the institution, including the ability to meet all of 
        its financial obligations (including refunds of 
        institutional charges and repayments to the Secretary 
        for liabilities and debts incurred in programs 
        administered by the Secretary); or
          [(D) such institution has met standards of financial 
        responsibility, prescribed by the Secretary by 
        regulation, that indicate a level of financial strength 
        not less than those required in paragraph (2).]
  (c) Financial Responsibility Standards.--(1) The Secretary 
shall determine whether an institution has the financial 
responsibility required by this title in accordance with 
paragraph (2).
  (2) An institution shall be determined to be financially 
responsible by the Secretary, as required by this title, if the 
institution is able to provide the services described in its 
official publications and statements, is able to provide the 
administrative resources necessary to comply with the 
requirements of this title, and meets one of the following 
conditions:
          (A) Such institution has its liabilities backed by 
        the full faith and credit of a State, or its 
        equivalent.
          (B) Such institution has a bond credit quality rating 
        of investment grade or higher from a recognized credit 
        rating agency.
          (C) Such institution has expendable net assets equal 
        to not less than one-half of the annual potential 
        liabilities of such institution to the Secretary for 
        funds under this title, including loan obligations 
        discharged pursuant to section 437, and to students for 
        refunds of institutional charges, including funds under 
        this title, as calculated by an independent certified 
        public accountant in accordance with generally accepted 
        auditing standards.
          (D) Such institution establishes, with the support of 
        a financial statement audited by an independent 
        certified public accountant in accordance with 
        generally accepted auditing standards, that the 
        institution has sufficient resources to ensure against 
        the precipitous closure of the institution, including 
        the ability to meet all of its financial obligations 
        (including refunds of institutional charges and 
        repayments to the Secretary for liabilities and debts 
        incurred in programs administered by the Secretary).
          (E) Such institution has met criteria, prescribed by 
        the Secretary by regulation in accordance with 
        paragraph (3), that--
                  (i) establish ratios that demonstrate 
                financial responsibility in accordance with 
                generally accepted auditing standards as 
                described in paragraph (7);
                  (ii) incorporate the procedures described in 
                paragraph (4);
                  (iii) establish consequences for failure to 
                meet the criteria described in paragraph (5); 
                and
                  (iv) take into account any differences in 
                generally accepted accounting principles, and 
                the financial statements required thereunder, 
                that are applicable to for-profit, public, and 
                nonprofit institutions.
  (3) The criteria prescribed pursuant to paragraph (2)(E) 
shall provide that the Secretary shall--
          (A) not later than 6 months after an institution that 
        is subject to the requirements of paragraph (2)(E) has 
        submitted its annual financial statement, provide to 
        such institution a notification of its preliminary 
        score under such paragraph;
          (B) provide to each such institution a description of 
        the method used, and complete copies of all the 
        calculations performed, to determine the institution's 
        score, if such institution makes a request for such 
        information within 45 days after receiving the notice 
        under subparagraph (A);
          (C) within 60 days of receipt by an institution of 
        the information described in subparagraph (B)--
                  (i) allow the institution to correct or cure 
                an administrative, accounting, or recordkeeping 
                error if the error is not part of a pattern of 
                errors and there is no evidence of fraud or 
                misconduct related to the error;
                  (ii) if the institution demonstrates that the 
                Secretary has made errors in its determination 
                of the initial score or has used non-standard 
                accounting practices in reaching its 
                determination, notify the institution that its 
                composite score has been corrected; and
                  (iii) take into consideration any subsequent 
                change in the institution's overall fiscal 
                health that would raise the institution's 
                score;
          (D) maintain and preserve at all times the 
        confidentiality of any review until such score is 
        determined to be final; and
          (E) make a determination regarding whether the 
        institution has met the standards of financial 
        responsibility based on an audited and certified 
        financial statement of the institution as described in 
        paragraph (7).
  (4) If the Secretary determines, after conducting an initial 
review, that the institution has not met at least one of the 
conditions described in subparagraphs (A) through (E) of 
paragraph (2) but has otherwise met the requirements of such 
paragraph--
          (A) the Secretary shall request information relating 
        to such conditions for any affiliated or parent 
        organization, company, or foundation owning or owned by 
        the institution; and
          (B) if such additional information demonstrates that 
        an affiliated or parent organization, company, or 
        foundation owning or owned by the institution meets at 
        least one of the conditions describe in subparagraphs 
        (A) through (E) of paragraph (2), the institution shall 
        be determined to be financially responsible as required 
        by this title.
  (5) The Secretary shall establish policies and procedures to 
address an institution's failure to meet the criteria of 
paragraph (2) which shall include policies and procedures 
that--
          (A) require an institution that fails to meet the 
        criteria for three consecutive years to provide to the 
        Secretary a financial plan;
          (B) provide for additional oversight and cash 
        monitoring restrictions, as appropriate;
          (C) allow an institution to submit to the Secretary 
        third-party financial guarantees that the Secretary 
        determines are reasonable, such as performance bonds or 
        letters of credit payable to the Secretary, except that 
        an institution may not be required to obtain a letter 
        of credit in order to be deemed financially responsible 
        unless--
                  (i) the institution has been deemed not to be 
                a going concern, as determined by an 
                independent certified public accountant in 
                accordance with generally accepted auditing 
                standards;
                  (ii) the institution is determined by the 
                Secretary to be at risk of precipitous closure 
                when the full financial resources of the 
                institution, including the value of the 
                institution's expendable endowment, are 
                considered; or
                  (iii) the institution is determined by the 
                Secretary to be at risk of not meeting all of 
                its financial obligations, including refunds of 
                institutional charges and repayments to the 
                Secretary for liabilities and debts incurred in 
                programs administered by the Secretary; and
          (D) provide for the removal of all requirements 
        related to the institution's failure to meet the 
        criteria once the criteria are met.
  [(4)] (6) If 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 fails 
to meet the criteria imposed by the Secretary pursuant to 
paragraph (2), the Secretary shall waive that particular 
requirement for that institution if the institution 
demonstrates to the satisfaction of the Secretary that--
          (A) there is no reasonable doubt as to its continued 
        solvency and ability to deliver quality educational 
        services;
          (B) it is current in its payment of all current 
        liabilities, including student refunds, repayments to 
        the Secretary, payroll, and payment of trade creditors 
        and withholding taxes; and
          (C) it has substantial equity in school-occupied 
        facilities, the acquisition of which was the direct 
        cause of its failure to meet the criteria.
  [(5)] (7) The determination as to whether an institution has 
met the standards of financial responsibility provided for in 
[paragraphs (2) and (3)(C)] paragraph (2) shall be based on an 
audited and certified financial statement of the institution. 
Such audit shall be conducted by a qualified independent 
organization or person in accordance with standards established 
by the American Institute of Certified Public Accountants. Such 
statement shall be submitted to the Secretary at the time such 
institution is considered for certification or recertification 
under this section. If the institution is permitted to be 
certified (provisionally or otherwise) and such audit does not 
establish compliance with paragraph (2), the Secretary may 
require that additional audits be submitted.
  [(6)] (8)(A) The Secretary shall establish requirements for 
the maintenance by an institution of higher education of 
sufficient cash reserves to ensure repayment of any required 
refunds.
  (B) The Secretary shall provide for a process under which the 
Secretary shall exempt an institution of higher education from 
the requirements described in subparagraph (A) if the Secretary 
determines that the institution--
          (i) is located in a State that has a tuition recovery 
        fund that ensures that the institution meets the 
        requirements of subparagraph (A);
          (ii) contributes to the fund; and
          (iii) otherwise has legal authority to operate within 
        the State.
  (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) consideration of past performance of 
                institutions or persons in control of such 
                institutions with respect to student aid 
                programs; and
                  (B) maintenance of records; and
          (2) to establish such other reasonable procedures as 
        the Secretary determines will contribute to ensuring 
        that the institution of higher education will comply 
        with administrative capability required by this title.
  (e) Financial Guarantees From Owners.--(1) Notwithstanding 
any other provision of law, the Secretary may, to the extent 
necessary to protect the financial interest of the United 
States, require--
          (A) financial guarantees from an institution 
        participating, or seeking to participate, in a program 
        under this title, or from one or more individuals who 
        the Secretary determines, in accordance with paragraph 
        (2), exercise substantial control over such 
        institution, or both, in an amount determined by the 
        Secretary to be sufficient to satisfy the institution's 
        potential liability to the Federal Government, student 
        assistance recipients, and other program participants 
        for funds under this title; and
          (B) the assumption of personal liability, by one or 
        more individuals who exercise substantial control over 
        such institution, as determined by the Secretary in 
        accordance with paragraph (2), for financial losses to 
        the Federal Government, student assistance recipients, 
        and other program participants for funds under this 
        title, and civil and criminal monetary penalties 
        authorized under this title.
  (2)(A) The Secretary may determine that an individual 
exercises substantial control over one or more institutions 
participating in a program under this title if the Secretary 
determines that--
          (i) the individual directly or indirectly controls a 
        substantial ownership interest in the institution;
          (ii) the individual, either alone or together with 
        other individuals, represents, under a voting trust, 
        power of attorney, proxy, or similar agreement, one or 
        more persons who have, individually or in combination 
        with the other persons represented or the individual 
        representing them, a substantial ownership interest in 
        the institution; or
          (iii) the individual is a member of the board of 
        directors, the chief executive officer, or other 
        executive officer of the institution or of an entity 
        that holds a substantial ownership interest in the 
        institution.
  (B) The Secretary may determine that an entity exercises 
substantial control over one or more institutions participating 
in a program under this title if the Secretary determines that 
the entity directly or indirectly holds a substantial ownership 
interest in the institution.
  (3) For purposes of this subsection, an ownership interest is 
defined as a share of the legal or beneficial ownership or 
control of, or a right to share in the proceeds of the 
operation of, an institution or institution's parent 
corporation. An ownership interest may include, but is not 
limited to--
          (A) a sole proprietorship;
          (B) an interest as a tenant-in-common, joint tenant, 
        or tenant by the entireties;
          (C) a partnership; or
          (D) an interest in a trust.
  (4) The Secretary shall not impose the requirements described 
in subparagraphs (A) and (B) of paragraph (1) on an institution 
that--
          (A) has not been subjected to a limitation, 
        suspension, or termination action by the Secretary or a 
        guaranty agency within the preceding 5 years;
          (B) has not had, during its 2 most recent audits of 
        the institutions conduct of programs under this title, 
        an audit finding that resulted in the institution being 
        required to repay an amount greater than 5 percent of 
        the funds the institution received from programs under 
        this title for any year;
          (C) meets and has met, for the preceding 5 years, the 
        financial responsibility standards under subsection 
        (c); and
          (D) has not been cited during the preceding 5 years 
        for failure to submit audits required under this title 
        in a timely fashion.
  (5) For purposes of section 487(c)(1)(G), this section shall 
also apply to individuals or organizations that contract with 
an institution to administer any aspect of an institution's 
student assistance program under this title.
  (6) Notwithstanding any other provision of law, any 
individual who--
          (A) the Secretary determines, in accordance with 
        paragraph (2), exercises substantial control over an 
        institution participating in, or seeking to participate 
        in, a program under this title;
          (B) is required to pay, on behalf of a student or 
        borrower, a refund of unearned institutional charges to 
        a lender, or to the Secretary; and
          (C) willfully fails to pay such refund or willfully 
        attempts in any manner to evade payment of such refund,
shall, in addition to other penalties provided by law, be 
liable to the Secretary for the amount of the refund not paid, 
to the same extent with respect to such refund that such an 
individual would be liable as a responsible person for a 
penalty under section 6672(a) of Internal Revenue Code of 1986 
with respect to the nonpayment of taxes.
  (f) Actions on Applications and Site Visits.--The Secretary 
shall ensure that prompt action is taken by the Department on 
any application required under subsection (b). The personnel of 
the Department of Education may conduct a site visit at each 
institution before certifying or recertifying its eligibility 
for purposes of any program under this title. The Secretary 
shall establish priorities by which institutions are to receive 
site visits, and shall, to the extent practicable, coordinate 
such visits with site visits by States, guaranty agencies, and 
accrediting bodies in order to eliminate duplication, and 
reduce administrative burden.
  (g) Time Limitations on, and Renewal of, Eligibility.--
          (1) General rule.--After the expiration of the 
        certification of any institution under the schedule 
        prescribed under this section (as this section was in 
        effect prior to the enactment of the Higher Education 
        Act Amendments of 1998), or upon request for initial 
        certification from an institution not previously 
        certified, the Secretary may certify the eligibility 
        for the purposes of any program authorized under this 
        title of each such institution for a period not to 
        exceed 6 years.
          (2) Notification.--The Secretary shall notify each 
        institution of higher education not later than 6 months 
        prior to the date of the expiration of the 
        institution's certification.
          (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(a)(1) and received less than 
        $500,000 in funds under [part B] part D or E for the 
        most recent year for which data are available.
  (h) Provisional Certification of Institutional Eligibility.--
(1) Notwithstanding subsections (d) and (g), the Secretary may 
provisionally certify an institution's eligibility to 
participate in programs under this title--
          (A) for not more than one complete award year in the 
        case of an institution of higher education seeking an 
        initial certification; and
          (B) for not more than 3 complete award years if--
                  (i) the institution's administrative 
                capability and financial responsibility is 
                being determined for the first time;
                  (ii) there is a complete or partial change of 
                ownership, as defined under subsection (i), of 
                an eligible institution; or
                  (iii) the Secretary determines that an 
                institution that seeks to renew its 
                certification is, in the judgment of the 
                Secretary, in an administrative or financial 
                condition that may jeopardize its ability to 
                perform its financial responsibilities under a 
                program participation agreement.
  (2) Whenever the Secretary withdraws the recognition of any 
accrediting agency, an institution of higher education which 
meets the requirements of accreditation, eligibility, and 
certification on the day prior to such withdrawal, the 
Secretary may, notwithstanding the withdrawal, continue the 
eligibility of the institution of higher education to 
participate in the programs authorized by this title for a 
period not to exceed [18] 36 months from the date of the 
withdrawal of recognition.
  (3) If, prior to the end of a period of provisional 
certification under this subsection, the Secretary determines 
that the institution is unable to meet its responsibilities 
under its program participation agreement, the Secretary may 
terminate the institution's participation in programs under 
this title.
  (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 
(other than the requirements in subsections (b)(5) and (c)(3))] 
sections 101 (other than the requirements in subsections 
(b)(1)(A) and (b)(2)) and 102 and this section after such 
change in control.
  (2) An action resulting in a change in control may include 
(but is not limited to)--
          (A) the sale of the institution or the majority of 
        its assets;
          (B) the transfer of the controlling interest of stock 
        of the institution or its parent corporation;
          (C) the merger of two or more eligible institutions;
          (D) the division of one or more institutions into two 
        or more institutions;
          (E) the transfer of the controlling interest of stock 
        of the institutions to its parent corporation; or
          (F) the transfer of the liabilities of the 
        institution to its parent corporation.
  (3) An action that may be treated as not resulting in a 
change in control includes (but is not limited to)--
          (A) the sale or transfer, upon the death of an owner 
        of an institution, of the ownership interest of the 
        deceased in that institution to a family member or to a 
        person holding an ownership interest in that 
        institution; or
          (B) another action determined by the Secretary to be 
        a routine business practice.
  (4)(A) The Secretary may provisionally certify an institution 
seeking approval of a change in ownership based on the 
preliminary review by the Secretary of a materially complete 
application that is received by the Secretary within 10 
business days of the transaction for which the approval is 
sought.
  (B) A provisional certification under this paragraph shall 
expire not later than the end of the month following the month 
in which the transaction occurred, except that if the Secretary 
has not issued a decision on the application for the change of 
ownership within that period, the Secretary may continue such 
provisional certification on a month-to-month basis until such 
decision has been issued.
  (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)] meet the requirements to be 
considered an institution of higher education under sections 
101(b)(1)(A) and 101(b)(2) 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.
  (2) The Secretary may waive the requirement of section 
101(a)(2) for a branch that (A) is not located in a State, (B) 
is affiliated with an eligible institution, and (C) was 
participating in one or more programs under this title on or 
before January 1, 1992.
  (k) Treatment of Teach-Outs at Additional Locations.--
          (1) In general.--A location of a closed institution 
        of higher education shall be eligible as an additional 
        location of an eligible institution of higher 
        education, as defined pursuant to regulations of the 
        Secretary, for the purposes of a teach-out described in 
        section [487(f)] 487(e), if such teach-out has been 
        approved by the institution's accrediting agency.
          (2) Special rule.--An institution of higher education 
        that conducts a teach-out through the establishment of 
        an additional location described in paragraph (1) shall 
        be permitted to establish a permanent additional 
        location at a closed institution and shall not be 
        required--
                  (A) to [meet the requirements of sections 
                102(b)(1)(E) and 102(c)(1)(C)] meet the 
                requirements to be considered an institution of 
                higher education under sections 101(b)(1)(A) 
                and 101(b)(2) for such additional location; or
                  (B) to assume the liabilities of the closed 
                institution.

SEC. 498A. PROGRAM REVIEW AND DATA.

  (a) General Authority.--In order to strengthen the 
administrative capability and financial responsibility 
provisions of this title, the Secretary--
          (1) shall provide for the conduct of program reviews 
        on a systematic basis designed to include all 
        institutions of higher education participating in 
        programs authorized by this title;
          (2) shall give priority for program review to 
        institutions of higher education that are--
                  (A) institutions with a cohort default rate 
                for loans under [part B of] this title in 
                excess of 25 percent or which places such 
                institutions in the highest 25 percent of such 
                institutions, or after the transition period 
                described in section 481B(e)(3), institutions 
                in which 25 percent or more of the educational 
                programs have a loan repayment rate (defined in 
                section 481B(c)) for the most recent fiscal 
                year of less than 50 percent;
                  (B) institutions with a default rate in 
                dollar volume for loans under [part B of] this 
                title which places the institutions in the 
                highest 25 percent of such institutions, except 
                that this subparagraph shall not apply after 
                the transition period described in section 
                481B(e)(3);
                  (C) institutions with a significant 
                fluctuation in Federal Stafford Loan volume, 
                Federal Direct Stafford/Ford Loan volume, 
                Federal ONE Loan volume, or Federal Pell Grant 
                award volume, or any combination thereof, in 
                the year for which the determination is made, 
                compared to the year prior to such year, that 
                are not accounted for by changes in the Federal 
                Stafford Loan program, the Federal Direct 
                Stafford/Ford Loan program, Federal ONE Loan 
                program, or the Pell Grant program, or any 
                combination thereof;
                  (D) institutions reported to have 
                deficiencies or financial aid problems by the 
                State licensing or authorizing agency, or by 
                the appropriate accrediting agency or 
                association;
                  (E) institutions with high annual dropout 
                rates; and
                  (F) such other institutions that the 
                Secretary determines may pose a significant 
                risk of failure to comply with the 
                administrative capability or financial 
                responsibility provisions of this title; and
          (3) shall establish and operate a central data base 
        of information on institutional accreditation, 
        eligibility, and certification that includes--
                  (A) all relevant information available to the 
                Department;
                  (B) all relevant information made available 
                by the Secretary of Veterans Affairs;
                  (C) all relevant information from accrediting 
                agencies or associations;
                  (D) all relevant information available from a 
                guaranty agency; and
                  (E) all relevant information available from 
                States under subpart 1.
  (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) establish guidelines designed to ensure 
        uniformity of practice in the conduct of program 
        reviews of institutions of higher education;
          (2) make available to each institution participating 
        in programs authorized under this title complete copies 
        of all review guidelines and procedures used in program 
        reviews;
          (3) as practicable, provide a written explanation to 
        the institution of higher education detailing the 
        Secretary's reasons for initiating the program review 
        which, if applicable, shall include references to 
        specific criteria under subsection (a)(2);
          [(3)] (4) permit the institution to correct or cure 
        an administrative, accounting, or recordkeeping error 
        if the error is not part of a pattern of error and 
        there is no evidence of fraud or misconduct related to 
        the error;
          [(4)] (5) 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;
          [(5)] (6) 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)] (7) provide to an institution of higher 
        education an adequate opportunity to review and respond 
        to any program review report and relevant materials 
        related to the report before any final program review 
        report is issued;
          [(7)] (8) review and take into consideration an 
        institution of higher education's response in any final 
        program review report or audit determination, and 
        include in the report or determination--
                  (A) a written statement addressing the 
                institution of higher education's response;
                  (B) a written statement of the basis for such 
                report or determination; and
                  (C) a copy of the institution's response; and
          [(8)] (9) maintain and preserve at all times the 
        confidentiality of any program review report until the 
        requirements of [paragraphs (6) and (7)] paragraphs (7) 
        and (8) are met, and until a final program review is 
        issued, other than to the extent required to comply 
        with [paragraph (5)] paragraph (6), except that the 
        Secretary shall promptly disclose any and all program 
        review reports to the institution of higher education 
        under review.
  (c) Data Collection Rules.--The Secretary shall develop and 
carry out a plan for the data collection responsibilities 
described in paragraph (3) of subsection (a). The Secretary 
shall make the information obtained under such paragraph (3) 
readily available to all institutions of higher education, 
guaranty agencies, States, and other organizations 
participating in the programs authorized by this title.
  (d) Training.--The Secretary shall provide training to 
personnel of the Department, including criminal investigative 
training, designed to improve the quality of financial and 
compliance audits and program reviews conducted under this 
title.
  (e) Special Rule.--The provisions of section 103(b) of the 
Department of Education Organization Act shall not apply to 
Secretarial determinations made regarding the appropriate 
length of instruction for programs measured in clock hours.
  (f) Time Limit on Program Review Activities.--In conducting, 
responding to, and concluding program review activities, the 
Secretary shall--
          (1) provide to the institution the initial report 
        finding not later than 90 days after concluding an 
        initial site visit;
          (2) upon each receipt of an institution's response 
        during a program review inquiry, respond in a 
        substantive manner within 90 days;
          (3) upon each receipt of an institution's written 
        response to a draft final program review report, 
        provide the final program review report and 
        accompanying enforcement actions, if any, within 90 
        days; and
          (4) conclude the entire program review process not 
        later than 2 years after the initiation of a program 
        review, unless the Secretary determines that such a 
        review is sufficiently complex and cannot reasonably be 
        concluded before the expiration of such 2-year period, 
        in which case the Secretary shall promptly notify the 
        institution of the reasons for such delay and provide 
        an anticipated date for conclusion of the review.

SEC. 498B. REVIEW OF REGULATIONS.

  (a) Review Required.--The Secretary shall review each 
regulation issued under this title that is in effect at the 
time of the review and applies to the operations or activities 
of any participant in the programs assisted under this title. 
The review shall include a determination of whether the 
regulation is duplicative, or is no longer necessary. The 
review may involve one or more of the following:
          (1) An assurance of the uniformity of interpretation 
        and application of such regulations.
          (2) The establishment of a process for ensuring that 
        eligibility and compliance issues, such as 
        institutional audit, program review, and 
        recertification, are considered simultaneously.
          (3) A determination of the extent to which 
        unnecessary costs are imposed on institutions of higher 
        education as a consequence of the applicability to the 
        facilities and equipment of such institutions of 
        regulations prescribed for purposes of regulating 
        industrial and commercial enterprises.
  (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(a)(1)), 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.
  (c) Consultation.--In carrying out subsections (a) and (b), 
the Secretary shall consult with relevant representatives of 
institutions participating in the programs authorized by this 
title.

           *       *       *       *       *       *       *


                    TITLE V--DEVELOPING INSTITUTIONS

PART A--HISPANIC-SERVING INSTITUTIONS

           *       *       *       *       *       *       *


SEC. 502. DEFINITIONS; ELIGIBILITY.

  (a) Definitions.--For the purpose of this title:
          (1) Educational and general expenditures.--The term 
        ``educational and general expenditures'' means the 
        total amount expended by an [institution for 
        instruction] institution of higher education for 
        instruction, research, public service, academic support 
        (including library expenditures), student services, 
        institutional support, scholarships and fellowships, 
        operation and maintenance expenditures for the physical 
        plant, and any mandatory transfers that the institution 
        is required to pay by law.
          (2) Eligible institution.--The term ``eligible 
        institution'' means--
                  (A) an institution of higher education--
                          (i) that has an enrollment of needy 
                        students as required by subsection (b);
                          (ii) except as provided in section 
                        522(b), the average educational and 
                        general expenditures of which are low, 
                        per full-time equivalent undergraduate 
                        student, in comparison with the average 
                        educational and general expenditures 
                        per full-time equivalent undergraduate 
                        student of institutions that offer 
                        similar instruction;
                          (iii) that is--
                                  (I) legally authorized to 
                                provide, and provides within 
                                the State, an educational 
                                program for which the 
                                institution awards a bachelor's 
                                degree; or
                                  (II) a junior or community 
                                college;
                          (iv) that is accredited by a 
                        nationally recognized accrediting 
                        agency or association determined by the 
                        Secretary to be reliable authority as 
                        to the quality of training offered or 
                        that is, according to such an agency or 
                        association, making reasonable progress 
                        toward accreditation;
                          [(vi)] (v) that is located in a State 
                        (as defined in section 103(20)(A)); and
                          [(v)] (vi) that meets such other 
                        requirements as the Secretary may 
                        prescribe; [and]
                  (B) any branch of any institution of higher 
                education described under subparagraph (A) that 
                by itself satisfies the requirements contained 
                in clauses (i) and (ii) of such 
                subparagraph[.]; and
                  (C) except as provided in section 522(b), an 
                institution that has a completion rate of at 
                least 25 percent that is calculated by--
                          (i) counting a student as completed 
                        if that student graduated within 150 
                        percent of the normal time for 
                        completion; or
                          (ii) counting a student as completed 
                        if that student enrolled into another 
                        program at an institution for which the 
                        previous program provided substantial 
                        preparation within 150 percent of 
                        normal time for completion.
        For purposes of the determination of whether an 
        institution is an eligible institution under this 
        paragraph, the factor described under subparagraph 
        (A)(i) shall be given twice the weight of the factor 
        described under subparagraph (A)(ii).
          (3) Endowment fund.--The term ``endowment fund'' 
        means a fund that--
                  (A) is established by State law, by a 
                Hispanic-serving institution, or by a 
                foundation that is exempt from Federal income 
                taxation;
                  (B) is maintained for the purpose of 
                generating income for the support of the 
                institution; and
                  (C) does not include real estate.
          (4) Full-time equivalent students.--The term ``full-
        time equivalent students'' means the sum of the number 
        of students enrolled full time at an institution, plus 
        the full-time equivalent of the number of students 
        enrolled part time (determined on the basis of the 
        quotient of the sum of the credit hours of all part-
        time students divided by 12) at such institution.
          (5) Hispanic-serving institution.--The term 
        ``Hispanic-serving institution'' means an institution 
        of higher education that--
                  (A) is an eligible institution; and
                  (B) has an enrollment of undergraduate full-
                time equivalent students that is at least 25 
                percent Hispanic students at the end of the 
                award year immediately preceding the date of 
                application.
          (6) Junior or community college.--The term ``junior 
        or community college'' means an institution of higher 
        education--
                  (A) that admits as regular students persons 
                who are beyond the age of compulsory school 
                attendance in the State in which the 
                institution is located and who have the ability 
                to benefit from the training offered by the 
                institution;
                  (B) that does not provide an educational 
                program for which the institution awards a 
                bachelor's degree (or an equivalent degree); 
                and
                  (C) that--
                          (i) provides an educational program 
                        of not less than 2 years in duration 
                        that is acceptable for full credit 
                        toward such a degree; or
                          (ii) offers a 2-year program in 
                        engineering, mathematics, or the 
                        physical or biological sciences, 
                        designed to prepare a student to work 
                        as a technician or at the 
                        semiprofessional level in engineering, 
                        scientific, or other technological 
                        fields requiring the understanding and 
                        application of basic engineering, 
                        scientific, or mathematical principles 
                        of knowledge.
  (b) Enrollment of Needy Students.--For the purpose of this 
title, the term ``enrollment of needy students'' means an 
enrollment at an institution with respect to which--
          (1) at least 50 percent of the degree students so 
        enrolled are receiving need-based assistance under 
        title IV in the second fiscal year preceding the fiscal 
        year for which the determination is made (other than 
        loans for which an interest subsidy is paid pursuant to 
        section 428); or
          (2) a substantial percentage of the students so 
        enrolled are receiving Federal Pell Grants in the 
        second fiscal year preceding the fiscal year for which 
        the determination is made, compared to the percentage 
        of students receiving Federal Pell Grants at all such 
        institutions in the second fiscal year preceding the 
        fiscal year for which the determination is made, unless 
        the requirement of this paragraph is waived under 
        section 522(a).

SEC. 503. AUTHORIZED ACTIVITIES.

  (a) Types of Activities Authorized.--Grants awarded under 
this title shall be used by Hispanic-serving institutions of 
higher education to assist the institutions to plan, develop, 
undertake, and carry out programs to improve and expand the 
institutions' capacity to serve Hispanic students and other 
low-income students.
  (b) Authorized Activities.--Grants awarded under this section 
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 in classrooms, libraries, laboratories, and 
        other instructional facilities.
          (3) Support of faculty exchanges, faculty 
        development, curriculum development, academic 
        instruction, and faculty fellowships to assist in 
        attaining advanced degrees in the fellow's field of 
        instruction.
          (4) Purchase of library books, periodicals, and other 
        educational materials, including telecommunications 
        program material.
          (5) Tutoring, [counseling, and] counseling, advising, 
        and student service programs designed to improve 
        academic success, including innovative and customized 
        instruction courses (which may include remedial 
        education and English language instruction) designed to 
        help retain students and move the students rapidly into 
        core courses and through program completion.
          (6) Articulation agreements and student support 
        programs designed to facilitate the transfer from two-
        year to four-year institutions.
          (7) Funds management, administrative management, and 
        acquisition of equipment for use in strengthening 
        [funds management] funds and administrative management.
          (8) Joint use of facilities, such as laboratories and 
        libraries.
          (9) Establishing or improving a development office to 
        strengthen or improve contributions from alumni and the 
        private sector.
          (10) Establishing or improving an endowment fund.
          (11) [Creating or improving facilities for Internet 
        or other distance education technologies,] Innovative 
        learning models and creating or improving facilities 
        for Internet or other innovative technologies, 
        including purchase or rental of telecommunications 
        technology equipment or services.
          (12) Establishing or enhancing a program of teacher 
        education designed to qualify students to teach in 
        public elementary schools and secondary schools.
          (13) 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.
          (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.
          (15) Providing education, counseling services, or 
        financial information designed to improve the financial 
        literacy and economic literacy of students or the 
        students' families, especially with regard to student 
        indebtedness and student assistance programs under 
        title IV.
          (16) The development, coordination, implementation, 
        or improvement of career and technical education 
        programs (as defined in section 135 of the Carl D. 
        Perkins Career and Technical Education Act of 2006 (20 
        U.S.C. 2355)).
          (17) Alignment and integration of career and 
        technical education programs with programs of study 
        leading to a bachelor's degree, graduate degree, or 
        professional degree.
          (18) Developing or expanding access to dual or 
        concurrent enrollment programs and early college high 
        school programs.
          (19) Pay for success initiatives that improve time to 
        completion and increase graduation rates.
          [(16)] (20) Other activities proposed in the 
        application submitted pursuant to section 504 that--
                  (A) contribute to carrying out the purposes 
                of this title; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.
  (c) Endowment Fund Limitations.--
          (1) Portion of grant.--A Hispanic-serving institution 
        may not use more than 20 percent of the grant funds 
        provided under this title for any fiscal year for 
        establishing or improving an endowment fund.
          (2) Matching required.--A Hispanic-serving 
        institution that uses any portion of the grant funds 
        provided under this title for any fiscal year for 
        establishing or improving an endowment fund shall 
        provide from non-Federal funds an amount equal to or 
        greater than the portion.
          (3) Comparability.--The provisions of part C of title 
        III regarding the establishment or increase of an 
        endowment fund, that the Secretary determines are not 
        inconsistent with this subsection, shall apply to funds 
        used under paragraph (1).
          (4) Scholarship.--An institution that uses grant 
        funds provided under this part to establish or increase 
        an endowment fund may use the income from such 
        endowment fund to provide scholarships to students for 
        the purposes of attending such institution, subject to 
        the limitation in section 331(c)(3)(B)(i).

SEC. 504. DURATION OF GRANT.

  [(a) Award Period.--The Secretary may award a grant to a 
Hispanic-serving institution under this title for 5 years.]
  (a) Award period.--The Secretary may award a grant to a 
Hispanic-serving institution under this part for a period of 5 
years. Any funds awarded under this part that are not expended 
or used, before the date that is 10 years after the date on 
which the grant was awarded, for the purposes for which the 
funds were paid shall be repaid to the Treasury.
  (b) Planning Grants.--Notwithstanding subsection (a), the 
Secretary may award a grant to a Hispanic-serving institution 
under this title for a period of 1 year for the purpose of 
preparation of plans and applications for a grant under this 
title.

SEC. 505. SPECIAL RULE.

  No Hispanic-serving institution that is eligible for and 
receives funds under [this title] this part may receive funds 
under part A or B of title III during the period for which 
funds under [this title] this part are awarded.

    PART B--PROMOTING POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC 
AMERICANS

           *       *       *       *       *       *       *


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.]
          (1) The activities described in (1) through (4), 
        (11), and (19) of section 503(b).
          [(4)] (2) Support for low-income postbaccalaureate 
        students including outreach, academic support services, 
        mentoring, scholarships, fellowships, and other 
        financial assistance to permit the enrollment of such 
        students in postbaccalaureate certificate and 
        postbaccalaureate degree granting programs.
          [(5)] (3) Support of faculty exchanges, faculty 
        development, faculty research, curriculum development, 
        and academic instruction.
          [(6)] (4) [Creating or improving facilities for 
        Internet or other distance education technologies,] 
        Innovative learning models and creating or improving 
        facilities for Internet or other innovative 
        technologies, including purchase or rental of 
        telecommunications technology equipment or services.
          [(7)] (5) Collaboration with other institutions of 
        higher education to expand postbaccalaureate 
        certificate and postbaccalaureate degree offerings.
          [(8)] (6) Other activities proposed in the 
        application submitted pursuant to section 514 that--
                  (A) contribute to carrying out the purposes 
                of this part; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.

SEC. 514. APPLICATION AND DURATION.

  (a) Application.--Any eligible institution may apply for a 
grant under this part by submitting an application to the 
Secretary at such time and in such manner as the Secretary may 
require. Such application shall demonstrate how the grant funds 
will be used to improve postbaccalaureate education 
opportunities for Hispanic and low-income students.
  [(b) Duration.--Grants under this part shall be awarded for a 
period not to exceed five years.]
  (b) Duration.--The Secretary may award a grant to a Hispanic-
serving institution under this part for a period of 5 years. 
Any funds awarded under this part that are not expended or used 
for the purposes for which the funds were paid within 10 years 
following the date on which the grant was awarded shall be 
repaid to the Treasury.
  (c) Limitation.--The Secretary may not award more than one 
grant under this part in any fiscal year to any Hispanic-
serving institution.
  (d) Special Rule.--No Hispanic-serving institution that is 
eligible for and receives funds under this part may receive 
funds under part A or B of title III during the period for 
which funds under this part are awarded.

                       PART C--GENERAL PROVISIONS

SEC. 521. ELIGIBILITY; APPLICATIONS.

  (a) Institutional Eligibility.--Each Hispanic-serving 
institution desiring to receive assistance under this title 
shall submit to the Secretary such enrollment data as may be 
necessary to demonstrate that the institution is a Hispanic-
serving institution as defined in section 502, along with such 
other data and information as the Secretary may by regulation 
require.
  (b) Applications.--
          (1) Applications required.--Any institution which is 
        eligible for assistance under this title shall submit 
        to the Secretary an application for assistance at such 
        time, in such form, and containing such information, as 
        may be necessary to enable the Secretary to evaluate 
        the institution's need for assistance. Subject to the 
        availability of appropriations to carry out this title, 
        the Secretary may approve an application for a grant 
        under this title only if the Secretary determines 
        that--
                  (A) the application meets the requirements of 
                subsection (c); and
                  (B) the institution is eligible for 
                assistance in accordance with the provisions of 
                this title under which the assistance is 
                sought.
          (2) Preliminary applications.--In carrying out 
        paragraph (1), the Secretary may develop a preliminary 
        application for use by Hispanic-serving institutions 
        applying under this title prior to the submission of 
        the principal application.
  (c) Contents.--A Hispanic-serving institution, in the 
institution's application for a grant, shall--
          (1) set forth, or describe how the institution will 
        develop, a comprehensive development plan to strengthen 
        the institution's academic quality and institutional 
        management, and otherwise provide for institutional 
        self-sufficiency and growth (including measurable 
        objectives for the institution and the Secretary to use 
        in monitoring the effectiveness of activities under 
        this title);
          (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) 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) 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) 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) provide that the institution will comply with the 
        limitations set forth in section 526;
          (7) describe in a comprehensive manner any proposed 
        project for which funds are sought under the 
        application and include--
                  (A) a description of the various components 
                of the proposed project, including the 
                estimated time required to complete each such 
                component;
                  (B) in the case of any development project 
                that consists of several components (as 
                described by the institution pursuant to 
                subparagraph (A)), a statement identifying 
                those components which, if separately funded, 
                would be sound investments of Federal funds and 
                those components which would be sound 
                investments of Federal funds only if funded 
                under this title in conjunction with other 
                parts of the development project (as specified 
                by the institution);
                  [(C) an evaluation by the institution of the 
                priority given any proposed project for which 
                funds are sought in relation to any other 
                projects for which funds are sought by the 
                institution under this title, and a similar 
                evaluation regarding priorities among the 
                components of any single proposed project (as 
                described by the institution pursuant to 
                subparagraph (A));]
                  [(D)] (C) a detailed budget showing the 
                manner in which funds for any proposed project 
                would be spent by the institution; and
                  [(E)] (D) a detailed description of any 
                activity which involves the expenditure of more 
                than $25,000, as identified in the budget 
                referred to in [subparagraph (D)] subparagraph 
                (C);
          (8) provide for making reports, in such form and 
        containing such information, as the Secretary may 
        require to carry out the Secretary's functions under 
        this title, including not less than one report annually 
        setting forth the institution's progress toward 
        achieving the objectives for which the funds were 
        awarded and for keeping such records and affording such 
        access to such records, as the Secretary may find 
        necessary to assure the correctness and verification of 
        such reports; and
          (9) include such other information as the Secretary 
        may prescribe.
  (d) Priority.--With respect to applications for assistance 
under this section, the Secretary shall give priority to an 
application that contains satisfactory evidence that the 
Hispanic-serving institution has entered into or will enter 
into a collaborative arrangement with at least one local 
educational agency or community-based organization to provide 
such agency or organization with assistance (from funds other 
than funds provided under this title) in reducing dropout rates 
for Hispanic students, improving rates of academic achievement 
for Hispanic students, and increasing the rates at which 
Hispanic secondary school graduates enroll in higher education.
  (e) Eligibility Data.--The Secretary shall use the most 
recent and relevant data concerning the number and percentage 
of students receiving need-based assistance under title IV in 
making eligibility determinations and shall advance the base-
year for the determinations forward following each annual grant 
cycle.

SEC. 522. WAIVER AUTHORITY AND REPORTING REQUIREMENT.

  (a) Waiver Requirements; Need-Based Assistance Students.--The 
Secretary may waive the requirements set forth in section 
502(a)(2)(A)(i) in the case of an institution--
          (1) that is extensively subsidized by the State in 
        which the institution is located and charges low or no 
        tuition;
          (2) that serves a substantial number of low-income 
        students as a percentage of the institution's total 
        student population;
          (3) that is contributing substantially to increasing 
        higher education opportunities for educationally 
        disadvantaged, underrepresented, or minority students, 
        who are low-income individuals;
          (4) which is substantially increasing higher 
        educational opportunities for individuals in rural or 
        other isolated areas which are unserved by 
        postsecondary institutions; or
          (5) wherever located, if the Secretary determines 
        that the waiver will substantially increase higher 
        education opportunities appropriate to the needs of 
        Hispanic Americans.
  (b) Waiver Determinations; Expenditures; Completion Rates.--
          (1) Waiver determinations.--The Secretary may waive 
        the requirements set forth in section 502(a)(2)(A)(ii) 
        or 502(a)(2)(C) if the Secretary determines, based on 
        persuasive evidence submitted by the institution, that 
        the institution's failure to meet the requirements is 
        due to factors which, when used in the determination of 
        compliance with the requirements, distort such 
        determination, and that the institution's designation 
        as an eligible institution under part A is otherwise 
        consistent with the purposes of this title.
          (2) Expenditures and completion rates.--The Secretary 
        shall submit to Congress every other year a report 
        concerning the institutions that, although not 
        satisfying the requirements of section 502(a)(2)(A)(ii) 
        or 502(a)(2)(C), have been determined to be eligible 
        institutions under part A. Such report shall--
                  (A) identify the factors referred to in 
                paragraph (1) that were considered by the 
                Secretary as factors that distorted the 
                determination of compliance with clauses (i) 
                and (ii) of section 502(a)(2)(A) or section 
                502(a)(2)(C); and
                  (B) contain a list of each institution 
                determined to be an eligible institution under 
                part A including a statement of the reasons for 
                each such determination.

           *       *       *       *       *       *       *


SEC. 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 sections 503 and 
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.
  (b) Priority.--The Secretary shall give priority to grants 
for the purposes described under subsection (a) whenever the 
Secretary determines that the cooperative arrangement is 
geographically and economically sound or will benefit the 
applicant Hispanic-serving institution.
  (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. 528. AUTHORIZATIONS OF APPROPRIATIONS.

  (a) Authorizations.--
          (1) Parts a and c.--There are authorized to be 
        appropriated to carry out [parts A and C $175,000,000 
        for fiscal year 2009 and such sums as may be necessary 
        for each of the five succeeding fiscal years.] parts A 
        and C, $107,795,000 for each of fiscal years 2019 
        through 2024.
          (2) Part b.--There are authorized to be appropriated 
        to carry out [part B $100,000,000 for fiscal year 2009 
        and such sums as may be necessary for each of the five 
        succeeding fiscal years.] part B, $9,671,000 for each 
        of fiscal years 2019 through 2024.
  (b) Use of Multiple Year Awards.--In the event of a multiple 
year award to any Hispanic-serving institution under this 
title, the Secretary shall make funds available for such award 
from funds appropriated for this title for the fiscal year in 
which such funds are to be used by the institution.

               TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES

           *       *       *       *       *       *       *


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 
                to make grants to institutions of higher 
                education or consortia of such institutions for 
                the purpose of establishing, strengthening, and 
                operating--
                          (i) comprehensive foreign language 
                        and area or international studies 
                        centers and programs; and
                          (ii) a diverse network of 
                        undergraduate foreign language and area 
                        or international studies centers and 
                        programs.
                  (B) National resources.--The centers and 
                programs referred to in paragraph (1) shall be 
                national resources for--
                          (i) teaching of any modern foreign 
                        language;
                          (ii) instruction in fields needed to 
                        provide full understanding of areas, 
                        regions, or countries in which such 
                        language is commonly used;
                          (iii) research and training in 
                        international studies, and the 
                        international and foreign language 
                        aspects of professional and other 
                        fields of study; and
                          (iv) instruction and research on 
                        issues in world affairs that concern 
                        one or more countries.
          (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) teaching and research materials;
                  (B) curriculum planning and development;
                  (C) establishing and maintaining linkages 
                with overseas institutions of higher education 
                and other organizations that may contribute to 
                the teaching and research of the center or 
                program;
                  (D) bringing visiting scholars and faculty to 
                the center to teach or to conduct research;
                  (E) professional development of the center's 
                faculty and staff;
                  (F) projects conducted in cooperation with 
                other centers addressing themes of world 
                regional, cross-regional, international, or 
                global importance;
                  (G) summer institutes in the United States or 
                abroad designed to provide language and area 
                training in the center's field or topic;
                  (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; and
                  (J) projects that support students in the 
                science, technology, engineering, and 
                mathematics fields to achieve foreign language 
                proficiency.
          (3) Grants to maintain library collections.--The 
        Secretary may make grants to centers described in 
        paragraph (1) having important library collections, as 
        determined by the Secretary, for the maintenance of 
        such collections.
          (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) Programs of linkage or outreach between 
                foreign language, area studies, or other 
                international fields, and professional schools 
                and colleges.
                  (B) Programs of linkage or outreach with 2- 
                and 4-year colleges and universities.
                  (C) Programs of linkage or outreach between 
                or among--
                          (i) postsecondary programs or 
                        departments in foreign language, area 
                        studies, or other international fields; 
                        and
                          (ii) State educational agencies or 
                        local educational agencies.
                  (D) Partnerships or programs of linkage and 
                outreach with departments or agencies of 
                Federal and State governments, including 
                Federal or State scholarship programs for 
                students in related areas.
                  (E) Programs of linkage or outreach with the 
                news media, business, professional, or trade 
                associations.
                  (F) Summer institutes in area studies, 
                foreign language, and other international 
                fields designed to carry out the programs 
                described in subparagraphs (A), (B), (C), (D), 
                and (E).
  (b) Fellowships for Foreign Language and Area or 
International Studies.--
          (1) In general.--The Secretary is authorized to make 
        grants to institutions of higher education or 
        combinations of such institutions for the purpose of 
        paying stipends to individuals undergoing advanced 
        training in any center or program approved by the 
        Secretary.
          (2) Eligible students.--A student receiving a stipend 
        described in paragraph (1) shall be engaged--
                  (A) in an instructional program with stated 
                performance goals for functional foreign 
                language use or in a program developing such 
                performance goals, in combination with area 
                studies, international studies, or the 
                international aspects of a professional studies 
                program; and
                  (B)(i) in the case of an undergraduate 
                student, in the intermediate or advanced study 
                of a less commonly taught language; or
                  (ii) in the case of a graduate student, in 
                graduate study in connection with a program 
                described in subparagraph (A), including--
                          (I) predissertation level study;
                          (II) preparation for dissertation 
                        research;
                          (III) dissertation research abroad; 
                        or
                          (IV) dissertation writing.
  (c) Special Rule With Respect to Travel.--No funds may be 
expended under this part for undergraduate travel except in 
accordance with rules prescribed by the Secretary setting forth 
policies and procedures to assure that Federal funds made 
available for such travel are expended as part of a formal 
program of supervised study.
  (d) Allowances.--
          (1) Graduate level recipients.--A stipend awarded to 
        a graduate level recipient may include allowances for 
        dependents and for travel for research and study in the 
        United States and abroad.
          (2) Undergraduate level recipients.--A stipend 
        awarded to an undergraduate level recipient may include 
        an allowance for educational programs in the United 
        States or educational programs abroad that--
                  (A) are closely linked to the overall goals 
                of the recipient's course of study; and
                  (B) have the purpose of promoting foreign 
                language fluency and knowledge of foreign 
                cultures.
  [(e) Application.--] [Each institution] (e)  Application._
          (1) Submission; contents._Each institution  of higher 
        education or consortium of such institutions desiring a 
        grant under this section shall submit an application to 
        the Secretary at such time, in such manner, and 
        accompanied by such information and assurances as the 
        Secretary may require. Each such application shall 
        include--
                  [(1)] (A) an explanation of how the 
                activities funded by the grant will reflect 
                diverse perspectives and a wide range of views 
                and generate debate on world regions and 
                international affairs; and
                  [(2)] (B) a description of how the applicant 
                will encourage government service in areas of 
                national need, as identified by the Secretary, 
                as well as in areas of need in the education, 
                business, and nonprofit sectors.
          (2) Approval.--The Secretary may approve an 
        application for a grant if an institution, in its 
        application, provides adequate assurances that it will 
        comply with paragraph (1)(A). The Secretary shall use 
        the requirement of paragraph (1)(A) as part of the 
        application evaluation, review, and approval process 
        when determining grant recipients for initial funding 
        and continuation awards.

           *       *       *       *       *       *       *


[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, consortia 
        of such institutions, or partnerships between nonprofit 
        educational organizations and institutions of higher 
        education, to assist such institutions, 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, 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 the Federal share of the cost of 
        projects and activities which are an integral part of 
        such a program, such as--
                  [(A) planning for the development and 
                expansion of undergraduate programs in 
                international studies and 
                foreign languages;
                  [(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) pre-service teacher training 
                        and in-service teacher professional 
                        development;
                  [(C) expansion of opportunities for learning 
                foreign languages, including less commonly 
                taught languages;
                  [(D) programs under which foreign teachers 
                and scholars may visit institutions as visiting 
                faculty;
                  [(E) programs designed to develop or enhance 
                linkages between 2- and 4-year institutions of 
                higher education, or baccalaureate and post-
                baccalaureate programs or institutions;
                  [(F) the development of undergraduate 
                educational programs--
                          [(i) in locations abroad where such 
                        opportunities are not otherwise 
                        available or that serve students for 
                        whom such opportunities are not 
                        otherwise available; and
                          [(ii) that provide courses that are 
                        closely related to on-campus foreign 
                        language and international curricula;
                  [(G) the integration of new and continuing 
                education abroad opportunities for 
                undergraduate students into curricula of 
                specific degree programs;
                  [(H) the development of model programs to 
                enrich or enhance the effectiveness of 
                educational programs abroad, including 
                predeparture and postreturn programs, and the 
                integration of educational programs abroad into 
                the curriculum of the home institution;
                  [(I) the provision of grants for educational 
                programs abroad that--
                          [(i) are closely linked to the 
                        program's overall goals; and
                          [(ii) have the purpose of promoting 
                        foreign language fluency and knowledge 
                        of world regions;
                  [(J) the development of programs designed to 
                integrate professional and technical education 
                with foreign languages, area studies, and other 
                international fields;
                  [(K) the establishment of linkages overseas 
                with institutions of higher education and 
                organizations that contribute to the 
                educational programs assisted under this 
                subsection;
                  [(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;
                  [(M) the development of partnerships 
                between--
                          [(i) institutions of higher 
                        education; and
                          [(ii) the private sector, government, 
                        or elementary and secondary education 
                        institutions,
                in order to enhance international knowledge and 
                skills; and
                  [(N) the use of innovative technology to 
                increase access to international education 
                programs.
          [(3) Non-federal share.--The non-Federal share of the 
        cost of the programs assisted under this subsection--
                  [(A) may be provided in cash from the private 
                sector corporations or foundations in an amount 
                equal to one-third of the total cost of the 
                programs assisted under this section; or
                  [(B) may be provided as an in-cash or in-kind 
                contribution from institutional and 
                noninstitutional funds, including State and 
                private sector corporation or foundation 
                contributions, equal to one-half of the total 
                cost of the programs assisted under this 
                section.
          [(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, 
        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.
          [(7) Application.--Each application for assistance 
        under this subsection shall include--
                  [(A) evidence that the applicant has 
                conducted extensive planning prior to 
                submitting the application;
                  [(B) an assurance that the faculty and 
                administrators of all relevant departments and 
                programs served by the applicant are involved 
                in ongoing collaboration with regard to 
                achieving the stated objectives of the 
                application;
                  [(C) an assurance that students at the 
                applicant institutions, as appropriate, will 
                have equal access to, and derive benefits from, 
                the program assisted under this subsection;
                  [(D) an assurance that each applicant, 
                consortium, or partnership will use the Federal 
                assistance provided under this subsection to 
                supplement and not supplant non-Federal funds 
                the institution expends for programs to improve 
                undergraduate instruction in international 
                studies and foreign languages;
                  [(E) a description of how the applicant will 
                provide information to students regarding 
                federally funded scholarship programs in 
                related areas;
                  [(F) an explanation of how the activities 
                funded by the grant will reflect diverse 
                perspectives and a wide range of views and 
                generate debate on world regions and 
                international affairs, where applicable; and
                  [(G) a description of how the applicant will 
                encourage service in areas of national need, as 
                identified by the Secretary.
          [(8) Evaluation.--The Secretary may 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.
  [(b) Programs of National Significance.--The Secretary may 
also award grants to public and private nonprofit agencies and 
organizations, including professional and scholarly 
associations, whenever the Secretary determines such grants 
will make an especially significant contribution to improving 
undergraduate international studies and foreign language 
programs.
  [(c) Funding Support.--
          [(1) In general.--The Secretary may use not more than 
        20 percent of the total amount appropriated for this 
        part for carrying out the purposes of this section.
          [(2) Grantees.--Of the total amount of grant funds 
        awarded to a grantee under this section, the grantee 
        may use not more than ten percent of such funds for the 
        activity described in subsection (a)(2)(I).]

SEC. [605.]  604. 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. Such 
research and studies may include--
          (1) studies and surveys to determine needs for 
        increased or improved instruction in foreign language, 
        area studies, or other international fields, including 
        the demand for foreign language, area, and other 
        international specialists in government, education, and 
        the private sector;
          (2) studies and surveys to assess the utilization of 
        graduates of programs supported under this title by 
        governmental, educational, and private sector 
        organizations and other studies assessing the outcomes 
        and effectiveness of programs so supported;
          (3) evaluation of the extent to which programs 
        assisted under this title that address national needs 
        would not otherwise be offered;
          (4) comparative studies of the effectiveness of 
        strategies to provide international capabilities at 
        institutions of higher education;
          (5) research on more effective methods of providing 
        instruction and achieving competency in foreign 
        languages, area studies, or other international fields;
          (6) the development and publication of specialized 
        materials for use in foreign language, area studies, 
        and other international fields, or for training foreign 
        language, area, and other international specialists;
          (7) studies and surveys of the uses of technology in 
        foreign language, area studies, and international 
        studies programs;
          (8) studies and evaluations of effective practices in 
        the dissemination of international information, 
        materials, research, teaching strategies, and testing 
        techniques throughout the education community, 
        including elementary and secondary schools;
          (9) the application of performance tests and 
        standards across all areas of foreign language 
        instruction and classroom use;
          (10) evaluation of the extent to which programs 
        assisted under this title reflect diverse perspectives 
        and a wide range of views and generate debate on world 
        regions and international affairs, as described in the 
        grantee's application;
          (11) the systematic collection, analysis, and 
        dissemination of data that contribute to achieving the 
        purposes of this part; and
          (12) support for programs or activities to make data 
        collected, analyzed, or disseminated under this section 
        publicly available and easy to understand.
  (b) Annual Report.--The Secretary shall prepare, publish, and 
announce an annual report listing the books and research 
materials produced with assistance under this section.

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

  [(a) Authority.--
          [(1) In general.--The Secretary is authorized to make 
        grants to institutions of higher education, public or 
        nonprofit private libraries, or partnerships between 
        such institutions and other such institutions, 
        libraries, or nonprofit educational organizations, to 
        develop innovative techniques or programs using 
        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.
          [(2) Grant recipients.--The Secretary may award 
        grants under this section to carry out the activities 
        authorized under this section to the following:
                  [(A) An institution of higher education.
                  [(B) A public or nonprofit private library.
                  [(C) A partnership of an institution of 
                higher education and one or more of the 
                following:
                          [(i) Another institution of higher 
                        education.
                          [(ii) A library.
                          [(iii) A nonprofit educational 
                        organization.
  [(b) Authorized Activities.--Grants under this section may be 
used--
          [(1) to acquire, 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 or standards for shared 
        electronic access to international data;
          [(4) to support collaborative projects of indexing, 
        cataloging, and other means of bibliographic access for 
        scholars to important research materials published or 
        distributed outside the United States;
          [(5) to develop methods for the wide dissemination of 
        resources written in non-Roman language alphabets;
          [(6) to assist teachers of less commonly taught 
        languages in acquiring, via electronic and other means, 
        materials suitable for classroom use;
          [(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 to facilitate carrying out 
        the activities described in this subsection between--
                  [(A) the institutions of higher education, 
                libraries, and partnerships receiving grants 
                under this section; and
                  [(B) institutions of higher education, 
                nonprofit educational organizations, and 
                libraries overseas; and
          [(9) to carry out other activities that the Secretary 
        determines are consistent with the purpose of the 
        grants awarded under this section.
  [(c) Application.--Each institution of higher education, 
library, or 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 and assurances 
as the Secretary may reasonably require.
  [(d) Match Required.--The Federal share of the total cost of 
carrying out a program supported by a grant under this section 
shall not be more than 66\2/3\ percent. The non-Federal share 
of such cost may be provided either in-kind or in cash, and may 
include contributions from private sector corporations or 
foundations.]

SEC. [607.]  605. SELECTION OF CERTAIN GRANT RECIPIENTS.

  (a) Competitive Grants.--The Secretary shall award grants 
under section 602 competitively on the basis of criteria that 
separately, but not less rigorously, evaluates--
          (1) the applications for comprehensive foreign 
        language and area or international studies centers and 
        programs; and
          (2) the applications for undergraduate foreign 
        language and area or international studies centers and 
        programs.
  (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 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 needs, and generate information for and disseminate 
information to the public. The Secretary shall also consider an 
applicant's record of placing students into postgraduate 
employment, education, or training in areas of national need 
and an applicant's stated efforts to increase the number of 
such students that go into such placements.
  (c) Equitable Distribution of Grants.--The Secretary shall, 
to the extent practicable, award grants under this part (other 
than section 602) in such manner as to achieve an equitable 
distribution of the grant funds throughout the United States, 
based on the merit of a proposal as determined pursuant to a 
peer review process involving broadly representative 
professionals.

SEC. [608.]  606. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.

  (a) Selection Criteria.--The Secretary shall make excellence 
the criterion for selection of grants awarded under section 
602.
  (b) Equitable Distribution.--To the extent practicable and 
consistent with the criterion of excellence, the Secretary 
shall award grants under this part (other than section 602) in 
such a manner as will achieve an equitable distribution of 
funds throughout the United States.
  (c) Support for Undergraduate Education.--The Secretary shall 
also award grants under this part in such manner as to ensure 
that an appropriate portion of the funds appropriated for this 
part (as determined by the Secretary) are used to support 
undergraduate education.

[SEC. 609. AMERICAN OVERSEAS RESEARCH CENTERS.

  [(a) Centers Authorized.--The Secretary is authorized to make 
grants to and enter into contracts with any American overseas 
research center that is a consortium of institutions of higher 
education (hereafter in this section referred to as a 
``center'') to enable such center to promote postgraduate 
research, exchanges and area studies.
  [(b) Use of Grants.--Grants made and contracts entered into 
pursuant to this section may be used to pay all or a portion of 
the cost of establishing or operating a center or program, 
including--
          [(1) the cost of faculty and staff stipends and 
        salaries;
          [(2) the cost of faculty, staff, and student travel;
          [(3) the cost of the operation and maintenance of 
        overseas facilities;
          [(4) the cost of teaching and research materials;
          [(5) the cost of acquisition, maintenance, and 
        preservation of library collections;
          [(6) the cost of bringing visiting scholars and 
        faculty to a center to teach or to conduct research;
          [(7) the cost of organizing and managing conferences; 
        and
          [(8) the cost of publication and dissemination of 
        material for the scholarly and general public.
  [(c) Limitation.--The Secretary shall only award grants to 
and enter into contracts with centers under this section that--
          [(1) receive more than 50 percent of their funding 
        from public or private United States sources;
          [(2) have a permanent presence in the country in 
        which the center is located; and
          [(3) are organizations described in section 501(c)(3) 
        of the Internal Revenue Code of 1986 which are exempt 
        from taxation under section 501(a) of such Code.
  [(d) Development Grants.--The Secretary is authorized to make 
grants for the establishment of new centers. The grants may be 
used to fund activities that, within 1 year, will result in the 
creation of a center described in subsection (c).
  [(e) Application.--Each center desiring to receive a grant or 
contract under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information and assurances as the Secretary may require.

[SEC. 610. AUTHORIZATION OF APPROPRIATIONS.

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

PART B--BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS

           *       *       *       *       *       *       *


SEC. 612. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION.

  (a) Program Authorized.--
          (1) Purpose.--The purpose of this section is to 
        coordinate the programs of the Federal Government in 
        the areas of research, education, and training in 
        international business and trade competitiveness.
          (2) In general.--The Secretary is authorized to make 
        grants to institutions of higher education, or 
        consortia of such institutions, to pay the Federal 
        share of the cost of planning, establishing and 
        operating centers for international business education 
        which--
                  (A) will be national resources for the 
                teaching of improved business techniques, 
                strategies, and methodologies which emphasize 
                the international context in which business is 
                transacted;
                  (B) will provide instruction in critical 
                foreign languages and international fields 
                needed to provide understanding of the cultures 
                and customs of United States trading partners; 
                and
                  (C) will provide research and training in the 
                international aspects of trade, commerce, and 
                other fields of study.
          (3) Special rule.--In addition to providing training 
        to students enrolled in the institution of higher 
        education in which a center is located, such centers 
        shall serve as regional resources to businesses 
        proximately located by offering programs and providing 
        research designed to meet the international training 
        needs of such businesses. Such centers shall also serve 
        other faculty, students, and institutions of higher 
        education located within their region.
  (b) Authorized Expenditures.--Each grant made under this 
section may be used to pay the Federal share of the cost of 
planning, establishing or operating a center, including the 
cost of--
          (1) faculty and staff travel in foreign areas, 
        regions, or countries;
          (2) teaching and research materials;
          (3) curriculum planning and development;
          (4) bringing visiting scholars and faculty to the 
        center to teach or to conduct research; and
          (5) training and improvement of the staff, for the 
        purpose of, and subject to such conditions as the 
        Secretary finds necessary for, carrying out the 
        objectives of this section.
  (c) Authorized Activities.--
          (1) Mandatory activities.--Programs and activities to 
        be conducted by centers assisted under this section 
        shall include--
                  (A) interdisciplinary programs which 
                incorporate foreign language and international 
                studies training into business, finance, 
                management, communications systems, and other 
                professional curricula;
                  (B) interdisciplinary programs which provide 
                business, finance, management, communications 
                systems, and other professional training for 
                foreign language and international studies 
                faculty and degree candidates;
                  (C) programs, such as intensive language 
                programs, available to members of the business 
                community and other professionals which are 
                designed to develop or enhance their 
                international skills, awareness, and expertise;
                  (D) collaborative programs, activities, or 
                research involving other institutions of higher 
                education, local educational agencies, 
                professional associations, businesses, firms, 
                or consortia thereof, to promote the 
                development of international skills, awareness, 
                and expertise among current and prospective 
                members of the business community and other 
                professionals;
                  (E) research designed to strengthen and 
                improve the international aspects of business 
                and professional education and to promote 
                integrated curricula; and
                  (F) research designed to promote the 
                international competitiveness of American 
                businesses and firms, including those not 
                currently active in international trade.
          (2) Permissible activities.--Programs and activities 
        to be conducted by centers assisted under this section 
        may include--
                  (A) the establishment of overseas internship 
                programs for students and faculty designed to 
                provide training and experience in 
                international business activities, except that 
                no Federal funds provided under this section 
                may be used to pay wages or stipends to any 
                participant who is engaged in compensated 
                employment as part of an internship program;
                  (B) the establishment of linkages overseas 
                with institutions of higher education and other 
                organizations that contribute to the 
                educational objectives of this section;
                  (C) summer institutes in international 
                business, foreign area studies, foreign 
                language studies, and other international 
                studies designed to carry out the purposes of 
                subparagraph (A) of this paragraph;
                  (D) the development of opportunities for 
                business students to study abroad in locations 
                which are important to the existing and future 
                economic well-being of the United States;
                  (E) outreach activities or consortia with 
                business programs located at 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) for the 
                purpose of providing expertise regarding the 
                internationalization of such programs, such as 
                assistance in research, curriculum development, 
                faculty development, or educational exchange 
                programs;
                  (F) programs encouraging the advancement and 
                understanding of technology-related 
                disciplines, including manufacturing software 
                systems and technology management; and
                  (G) other eligible activities prescribed by 
                the Secretary.
  (d) Advisory Council.--
          (1) Establishment.--In order to be eligible for 
        assistance under this section, an institution of higher 
        education, or 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.
          (2) Membership on advisory council.--The center 
        advisory council shall include--
                  (A) one representative of an administrative 
                department or office of the institution of 
                higher education;
                  (B) one faculty representative of the 
                business or management school or department of 
                such institution;
                  (C) one faculty representative of the 
                international studies or foreign language 
                school or department of such institution;
                  (D) one faculty representative of another 
                professional school or department of such 
                institution, as appropriate;
                  (E) one or more representatives of local or 
                regional businesses or firms;
                  (F) one representative appointed by the 
                Governor of the State in which the institution 
                of higher education is located whose normal 
                responsibilities include official oversight or 
                involvement in State-sponsored trade-related 
                activities or programs; and
                  (G) such other individuals as the institution 
                of higher education deems appropriate, such as 
                a representative of a community college in the 
                region served by the center.
          (3) Meetings.--In addition to the initial planning 
        activities required under subsection (d)(1), the center 
        advisory council shall meet not less than once each 
        year after the establishment of the center to assess 
        and advise on the programs and activities conducted by 
        the center.
  (e) Grant Duration; Federal Share.--
          (1) Duration of grants.--The Secretary shall make 
        grants under this section for a minimum of 3 years 
        unless the Secretary determines that the provision of 
        grants of shorter duration is necessary to carry out 
        the objectives of this section.
          (2) Federal share.--The Federal share of the cost of 
        planning, establishing and operating centers under this 
        section shall be--
                  (A) not more than 90 percent for the first 
                year in which Federal funds are received;
                  (B) not more than 70 percent for the second 
                such year; and
                  (C) not more than 50 percent for the third 
                such year and for each such year thereafter.
          (3) Non-federal share.--The non-Federal share of the 
        cost of planning, establishing, and operating centers 
        under this section may be provided either in cash or 
        in-kind.
          (4) Waiver of non-federal share.--In the case of an 
        institution of higher education receiving a grant under 
        this part and conducting outreach or consortia 
        activities with another institution of higher education 
        in accordance with section 612(c)(2)(E), the Secretary 
        may waive a portion of the requirements for the non-
        Federal share required in paragraph (2) equal to the 
        amount provided by the institution of higher education 
        receiving such grant to such other institution of 
        higher education for carrying out such outreach or 
        consortia activities. Any such waiver shall be subject 
        to such terms and conditions as the Secretary deems 
        necessary for carrying out the purposes of this 
        section.
  (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 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);
          (2) assurance of ongoing collaboration in the 
        establishment and operation of the center by faculty of 
        the business, management, foreign language, 
        international studies, professional international 
        affairs, and other professional schools or departments, 
        as appropriate;
          (3) assurance that the education and training 
        programs of the center will be open to students 
        concentrating in each of these respective areas, as 
        appropriate, and that diverse perspectives and a wide 
        range of views will be made available to students in 
        programs under this section; and
          (4) assurance that the institution of higher 
        education, or 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).
  (g) Approval.--The Secretary may approve an application for a 
grant if an institution, in its application, provides adequate 
assurances that it will comply with subsection (f)(3). The 
Secretary shall use the requirement of subsection (f)(3) as 
part of the application evaluation, review, and approval 
process when determining grant recipients for initial funding 
and continuation awards.

[SEC. 613. EDUCATION AND TRAINING PROGRAMS.

  [(a) Program Authorized.--The Secretary shall make grants to, 
and enter into contracts with, institutions of higher education 
to pay the Federal share of the cost of programs designed to 
promote linkages between such institutions and the American 
business community engaged in international economic activity. 
Each program assisted under this section shall both enhance the 
international academic programs of institutions of higher 
education and provide appropriate services to the business 
community which will expand its capacity to engage in commerce 
abroad.
  [(b) Authorized Activities.--Eligible activities to be 
conducted by institutions of higher education pursuant to 
grants or contracts awarded under this section shall include--
          [(1) innovation and improvement in international 
        education curricula to serve the needs of the business 
        community, including development of new programs for 
        nontraditional, mid-career, or part-time students;
          [(2) development of programs to inform the public of 
        increasing international economic interdependence and 
        the role of American business within the international 
        economic system;
          [(3) internationalization of curricula at the junior 
        and community college level, and at undergraduate and 
        graduate schools of business;
          [(4) development of area studies programs, and 
        interdisciplinary international programs;
          [(5) establishment of export education programs 
        through cooperative arrangements with regional and 
        world trade centers and councils, and with bilateral 
        and multilateral trade associations;
          [(6) research for and development of specialized 
        teaching materials, including language materials, and 
        facilities appropriate to business-oriented students;
          [(7) establishment of student and faculty fellowships 
        and internships for training and education in 
        international business activities;
          [(8) development of opportunities for junior business 
        and other professional school faculty to acquire or 
        strengthen international skills and perspectives;
          [(9) development of research programs on issues of 
        common interest to institutions of higher education and 
        private sector organizations and associations engaged 
        in or promoting international economic activity;
          [(10) the establishment of internships overseas to 
        enable foreign language students to develop their 
        foreign language skills and knowledge of foreign 
        cultures and societies;
          [(11) the establishment of linkages overseas with 
        institutions of higher education and organizations that 
        contribute to the educational objectives of this 
        section; and
          [(12) summer institutes in international business, 
        foreign area and other international studies designed 
        to carry out the purposes of this section.
  [(c) Applications.--No grant may be made and no contract may 
be entered into under this section unless an institution of 
higher education submits an application to the Secretary at 
such time and in such manner as the Secretary may reasonably 
require. Each such application shall be accompanied by a copy 
of the agreement entered into by the institution of higher 
education with a business enterprise, trade organization or 
association engaged in international economic activity, or a 
combination or consortium of such enterprises, organizations or 
associations, for the purpose of establishing, developing, 
improving or expanding activities eligible for assistance under 
subsection (b) of this section. Each such application shall 
contain assurances that the institution of higher education 
will use the assistance provided under this section to 
supplement and not to supplant activities conducted by 
institutions of higher education described in subsection (b). 
Each such application shall include an assurance that, where 
applicable, the activities funded by the grant will reflect 
diverse perspectives and a wide range of views on world regions 
and international affairs.
  [(d) Federal Share.--The Federal share under this part for 
each fiscal year shall not exceed 50 percent of the cost of 
such program.

[SEC. 614. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Centers for International Business Education.--There are 
authorized to be appropriated such sums as may be necessary for 
the fiscal year 2009 and such sums as may be necessary for each 
of the five succeeding fiscal years to carry out the provisions 
of section 612.
  [(b) Education and Training Programs.--There are authorized 
to be appropriated such sums as may be necessary for fiscal 
year 2009, and such sums as may be necessary for the five 
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.

  [(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 
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) A tribally controlled college or 
                university or Alaska Native or Native Hawaiian-
                serving institution eligible for assistance 
                under part A or B of title III, or an 
                institution eligible for assistance under title 
                V.
                  [(C) An institution of higher education that 
                serves substantial numbers of underrepresented 
                minority students.
                  [(D) An institution of higher education with 
                programs in training foreign service 
                professionals.
          [(2) Host institution.--Each eligible recipient 
        receiving a grant under this section shall designate an 
        institution of higher education as the host institution 
        for the Institute.
  [(c) Application.--
          [(1) In general.--Each eligible recipient desiring a 
        grant under this section shall submit an application at 
        such time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require.
          [(2) Content of application.--Each application 
        submitted under paragraph (1) shall include a 
        description of how the activities funded by the grant 
        will reflect diverse perspectives and a wide range of 
        views and generate debate on world regions and 
        international affairs, where applicable.
  [(d) Duration.--Grants made pursuant to this section shall be 
awarded for a period not to exceed 5 years.
  [(e) Match Required.--The eligible recipient of a grant under 
this section shall contribute to the conduct of the program 
supported by the grant an amount from non-Federal sources equal 
to at least one-half the amount of the grant, which 
contribution may be in cash or in kind.

[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, 
international business, and foreign language study programs, 
including the teaching of foreign languages, at such colleges, 
universities, and institutions, respectively, which may include 
collaboration with institutions of higher education that 
receive funding under this title.
  [(b) Application.--No grant may be made by the Institute 
unless an application is made by the college, university, or 
institution at such time, in such manner, and accompanied by 
such information as the Institute may require.
  [(c) Definitions.--In this section--
          [(1) the term ``Hispanic-serving institution'' has 
        the meaning given the term in section 502; and
          [(2) the term ``minority institution'' has the 
        meaning given the term in section 365.

[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, tribally controlled colleges or 
universities, 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.
  [(b) Definition of Eligible Student.--For the purpose of this 
section, the term ``eligible student'' means a student that 
is--
          [(1) enrolled full-time in a baccalaureate degree 
        program at an institution of higher education; and
          [(2) entering the third year of study, or completing 
        the third year of study in the case of a summer abroad 
        program, at an institution of higher education which 
        nominates such student for participation in the study 
        abroad program.
  [(c) Special Rule.--An institution of higher education 
desiring to send a student on the study abroad program shall 
enter into a Memorandum of Understanding with the Institute 
under which such institution of higher education agrees to--
          [(1) provide the requisite academic preparation for 
        students participating in the study abroad or 
        internship programs;
          [(2) pay one-third the cost of each student it 
        nominates for participation in the study abroad 
        program; and
          [(3) meet such other requirements as the Secretary 
        may from time to time, by regulation, reasonably 
        require.

[SEC. 624. 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 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, tribally 
controlled colleges or universities, 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 international, voluntary or 
government organizations or agencies, including the Agency for 
International Development, the Department of State, 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) assist the students to prepare for a master's 
        degree program;
          [(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.
  [(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; and
                  [(F) the General Counsel of the Agency for 
                International Development, or the General 
                Counsel'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.

[SEC. 626. FINANCIAL ASSISTANCE.

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

[SEC. 627. REPORT.

  [The Institute shall prepare a report once every two years on 
the activities of the Institute and shall submit such report to 
the Secretary of Education and the Secretary of State.

[SEC. 628. GIFTS AND DONATIONS.

  [The Institute is authorized to receive money and other 
property donated, bequeathed, or devised to the Institute with 
or without a condition of restriction, for the purpose of 
providing financial support for the fellowships or underwriting 
the cost of the Junior Year Abroad Program. All funds or 
property given, devised, or bequeathed shall be retained in a 
separate account, and an accounting of those funds and property 
shall be included in the report described in section 627.

[SEC. 629. AUTHORIZATION.

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

                     PART [D] C--GENERAL PROVISIONS

SEC. [631.]  621. DEFINITIONS.

  (a) Definitions.--As used in this title--
          (1) the term ``area studies'' means a program of 
        comprehensive study of the aspects of a society or 
        societies, including study of its history, culture, 
        economy, politics, international relations and 
        languages;
          (2) the term ``comprehensive foreign language and 
        area or international studies center'' means an 
        administrative unit of a university that contributes 
        significantly to the national interest in advanced 
        research and scholarship, employs a critical mass of 
        scholars in diverse disciplines related to a geographic 
        concentration, offers intensive language training in 
        languages of its area specialization, maintains 
        important library collections related to the area, and 
        makes training available in language and area studies 
        to a graduate, postgraduate, and undergraduate 
        clientele; and
          (3) the term ``educational programs abroad'' means 
        programs of study, internships, or service learning 
        outside the United States which are part of a foreign 
        language or other international curriculum at the 
        undergraduate or graduate education levels;
          (4) the term ``export education'' means educating, 
        teaching and training to provide general knowledge and 
        specific skills pertinent to the selling of goods and 
        services to other countries, including knowledge of 
        market conditions, financial arrangements, laws and 
        procedures;
          [(5) the term ``historically Black college and 
        university'' has the meaning given the term ``part B 
        institution'' in section 322;]
          [(6)] (5) the term ``institution of higher 
        education'' means, in addition to institutions which 
        meet the definition of section 101 of this Act, 
        institutions which meet the requirements of section 101 
        of this Act except that (1) they are not located in the 
        United States, and (2) they apply for assistance under 
        this title in consortia with institutions which meet 
        the definition of section 101 of this Act;
          [(7)] (6) the term ``international business'' means 
        profit-oriented business relationships conducted across 
        national boundaries and includes activities such as the 
        buying and selling of goods, investments in industries, 
        the licensing of processes, patents and trademarks, and 
        the supply of services;
          [(8)] (7) the term ``internationalization of 
        curricula'' means the incorporation of international or 
        comparative perspectives in existing courses of study 
        or the addition of new components to the curricula to 
        provide an international context for American business 
        education; and
          [(9) the term ``tribally controlled college or 
        university'' has the meaning given the term in section 
        2 of the Tribally Controlled Colleges and Universities 
        Assistance Act of 1978 (25 U.S.C. 1801); and]
          [(10)] (8) the term ``undergraduate foreign language 
        and area or international studies center'' means an 
        administrative unit of an institution of higher 
        education, including but not limited to 4-year 
        colleges, that contributes significantly to the 
        national interest through the education and training of 
        students who matriculate into advanced language and 
        area studies programs, professional school programs, or 
        incorporates substantial international and foreign 
        language content into baccalaureate degree programs, 
        engages in research, curriculum development and 
        community outreach activities designed to broaden 
        international and foreign language knowledge, employs 
        faculty with strong language, area, and international 
        studies credentials, maintains library holdings, 
        including basic reference works, journals, and works in 
        translation, and makes training available predominantly 
        to undergraduate students.
  (b) Special Conditions.--All references to individuals or 
organizations, unless the context otherwise requires, mean 
individuals who are citizens or permanent residents of the 
United States or organizations which are organized or 
incorporated in the United States.

SEC. [632.]  622. SPECIAL RULE.

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

SEC. [633.]  623. RULE OF CONSTRUCTION.

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

SEC. [634.]  624. ASSESSMENT.

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

SEC. [635.]  625. EVALUATION, OUTREACH, AND INFORMATION.

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

SEC. [636.]  626. REPORT.

   (a) Biennial Report on Areas of National Need._ The 
Secretary shall, in consultation and collaboration with the 
Secretary of State, the Secretary of Defense, and the heads of 
other relevant Federal agencies, submit a report once every two 
years that identifies areas of national need in foreign 
language, area, and international studies as such studies 
relate to government, education, business, and nonprofit needs, 
and a plan to address those needs. The report shall be provided 
to the authorizing committees and made available to the public.
  (b) Annual Report on Compliance With Diverse Perspectives and 
a Wide Range of Views Requirement.--Not later than 180 days 
after the date of the enactment of this subsection, and 
annually thereafter, the Secretary shall submit to the 
authorizing committees a report that identifies the efforts 
taken to ensure recipients' compliance with the requirements 
under this title relating to the ``diverse perspectives and a 
wide range of views'' requirement, including any technical 
assistance the Department has provided, any regulatory guidance 
the Department has issued, and any monitoring the Department 
has conducted. Such report shall be made available to the 
public.

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

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

SEC. [638.]  627. REPORTING BY INSTITUTIONS.

  (a) Applicability.--The data requirement in subsection (b) 
shall apply to an institution of higher education that receives 
funds for a center or program under this title if--
          (1) the amount of the contribution (including cash 
        and the fair market value of any property) received 
        from any foreign government or from a foreign private 
        sector corporation or foundation during any fiscal year 
        exceeds $250,000 in the aggregate; and
          (2) the aggregate contribution, or a significant part 
        of the aggregate contribution, is to be used by a 
        center or program receiving funds under this title.
  [(b) Data Required.--The Secretary shall require an 
institution of higher education referred to in subsection (a) 
to report information listed in subsection (a) to the Secretary 
consistent with the requirements of section 117.]
  (b) Data Required.--
          (1) In general.--Except as provided in paragraph (5), 
        the Secretary shall require an institution of higher 
        education referred to in subsection (a) to file a 
        disclosure report under paragraph (2) with the 
        Secretary on January 31 or July 31, whichever is 
        sooner, with respect to the date on which such 
        institution received a contribution--
                  (A) less than 7 months from such date; and
                  (B) greater than 30 days from such date.
          (2) Contents of report.--Each report to the Secretary 
        required by this section shall contain the following 
        information with respect to the institution of higher 
        education filing the report:
                  (A) For gifts received from, or contracts 
                entered into with a foreign source other than a 
                foreign government, the following information:
                          (i) The aggregate dollar amount of 
                        such gifts and contracts attributable 
                        to each country, including the fair 
                        market value of the services of staff 
                        members, textbooks, and other in-kind 
                        gifts.
                          (ii) The legal name of the entity 
                        providing any such gift or contract.
                          (iii) The country to which the gift 
                        is attributable.
                  (B) For gifts received from, or contracts 
                entered into with, a foreign government, the 
                aggregate dollar amount of such gifts and 
                contracts received from each foreign government 
                and the legal name of the entity providing any 
                such gift or contract.
                  (C) In the case of an institution of higher 
                education that is owned or controlled by a 
                foreign source--
                          (i) the identity of the foreign 
                        source;
                          (ii) the date on which the foreign 
                        source assumed ownership or control of 
                        the institution; and
                          (iii) any changes in program or 
                        structure resulting from the change in 
                        ownership or control.
          (3) Additional disclosures for restricted and 
        conditional gifts.--Notwithstanding paragraph (1), when 
        an institution of higher education receives a 
        restricted or conditional gift or contract from a 
        foreign source, the institution shall disclose the 
        following:
                  (A) In the case of gifts received from, or 
                contracts entered into with, a foreign source 
                other than a foreign government, the amount, 
                the date, and a description of such conditions 
                or restrictions.
                  (B) The country to which the gift is 
                attributable.
                  (C) In the case of gifts received from, or 
                contracts entered into with, a foreign 
                government, the amount, the date, a description 
                of such conditions or restrictions, and the 
                name of the foreign government.
          (4) Attribution of gifts.--For purposes of this 
        subsection, the country to which a gift is attributable 
        is--
                  (A) the country of citizenship; or
                  (B) if the information described in 
                subparagraph (A) is not known--
                          (i) the principal residence for a 
                        foreign source who is a natural person; 
                        or
                          (ii) the principal place of business 
                        and country of incorporation for a 
                        foreign source that is a legal entity.
          (5) Relation to other reporting requirements.--
                  (A) State requirements.--If an institution 
                described under subsection (a) is located 
                within a State that has enacted requirements 
                for public disclosure of gifts from, or 
                contracts with, a foreign source that are 
                substantially similar to the requirements of 
                this section, as determined by the Secretary, a 
                copy of the disclosure report filed with the 
                State may be filed with the Secretary in lieu 
                of a report required under paragraph (1).
                  (B) Assurances.--With respect to an 
                institution that submits a copy of a disclosure 
                report pursuant to subparagraph (A), the State 
                in which such institution is located shall 
                provide to the Secretary such assurances as the 
                Secretary may require to establish that the 
                institution has met the requirements for public 
                disclosure under the laws of such State.
                  (C) Use of other federal reports.--If an 
                institution receives a gift from, or enters 
                into a contract with, a foreign source, where 
                any other Federal law or regulation requires a 
                report containing requirements substantially 
                similar to the requirements under this section, 
                as determined by the Secretary, a copy of the 
                report may be filed with the Secretary in lieu 
                of a report required under subsection (b).
          (6) Public inspection.--A disclosure report required 
        by this section shall be--
                  (A) available as public records open to 
                inspection and copying during business hours;
                  (B) available electronically; and
                  (C) made available under subparagraphs (A) 
                and (B) not later than 30 days after the 
                Secretary receives such report.
          (7) Enforcement.--
                  (A) Compel compliance.--Whenever it appears 
                that an institution has failed to comply with 
                the requirements of this section, including any 
                rule or regulation promulgated under this 
                section, a civil action may be brought by the 
                Attorney General, at the request of the 
                Secretary, in an appropriate district court of 
                the United States, or the appropriate United 
                States court of any territory or other place 
                subject to the jurisdiction of the United 
                States, to request such court to compel 
                compliance with the requirements of this 
                section.
                  (B) Costs.--For knowing or willful failure to 
                comply with the requirements of this section, 
                including any rule or regulation promulgated 
                thereunder, an institution shall pay to the 
                Treasury of the United States the full costs to 
                the United States of obtaining compliance, 
                including all associated costs of investigation 
                and enforcement.
          (8) Definitions.--In this section:
                  (A) Contract.--The term ``contract'' means 
                any agreement for the acquisition by purchase, 
                lease, gift, or barter of property or services 
                by the foreign source, for the direct benefit 
                or use of either of the parties.
                  (B) Foreign source.--The term ``foreign 
                source'' means--
                          (i) a foreign government, including 
                        an agency of a foreign government;
                          (ii) a legal entity, governmental or 
                        otherwise, created solely under the 
                        laws of a foreign state or states;
                          (iii) an individual who is not a 
                        citizen or a national of the United 
                        States or a trust territory or 
                        protectorate thereof; and
                          (iv) an agent, including a subsidiary 
                        or affiliate of a foreign legal entity, 
                        acting on behalf of a foreign source.
                  (C) Gift.--The term ``gift'' means any gift 
                of money, property, human resources, or payment 
                of any staff.
                  (D) Restricted or conditional.--The term 
                ``restricted or conditional'', with respect to 
                an endowment, gift, grant, contract, award, 
                present, or property of any kind means 
                including as a condition on such endowment, 
                gift, grant, contract, award, present, or 
                property provisions regarding--
                          (i) the employment, assignment, or 
                        termination of faculty;
                          (ii) the establishment of 
                        departments, centers, research or 
                        lecture programs, institutes, 
                        instructional programs, or new faculty 
                        positions;
                          (iii) the selection or admission of 
                        students; or
                          (iv) the award of grants, loans, 
                        scholarships, fellowships, or other 
                        forms of financial aid restricted to 
                        students of a specified country, 
                        religion, sex, ethnic origin, or 
                        political opinion.

SEC. 628. CONTINUATION AWARDS.

  The Secretary shall make continuation awards under this title 
for the second and succeeding years of a grant only after 
determining that the recipient is making satisfactory progress 
in carrying out the stated grant objectives approved by the 
Secretary.

SEC. 629. COMPLIANCE WITH DIVERSE PERSPECTIVE AND A WIDE RANGE OF 
                    VIEWS.

  When complying with the requirement of this title to offer a 
diverse perspective and a wide range of views, a recipient of a 
grant under this title shall not promote any biased views that 
are discriminatory toward any group, religion, or population of 
people.

SEC. 630. AUTHORIZATION OF APPROPRIATIONS.

  There is authorized to be appropriated to carry out this 
title $61,525,000 for each of fiscal years 2019 through 2024.

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. 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.
  [(b) Designation of Fellows.--Students receiving awards under 
this subpart shall be known as ``Jacob K. Javits Fellows''.
  [(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 for not more than 12 months (in any other 
case), but without payment of the stipend.
  [(d) Process and Timing of Competition.--The Secretary shall 
make applications for fellowships under this part available not 
later than October 1 of the academic year preceding the 
academic year for which fellowships will be awarded, and shall 
announce the recipients of fellowships under this section not 
later than March 1 of the academic year preceding the academic 
year for which the fellowships are awarded.
  [(e) Authority To Contract.--The Secretary is authorized to 
enter into a contract with a nongovernmental agency to 
administer the program assisted under this part if the 
Secretary determines that entering into the contract is an 
efficient means of carrying out the program.

[SEC. 702. ALLOCATION OF FELLOWSHIPS.

  [(a) Fellowship Board.--
          [(1) Appointment.--
                  [(A) In general.--The Secretary shall appoint 
                a Jacob K. Javits Fellows Program Fellowship 
                Board (referred to in this subpart as the 
                ``Board'') consisting of 9 individuals 
                representative of both public and private 
                institutions of higher education who are 
                especially qualified to serve on the Board.
                  [(B) Qualifications.--In making appointments 
                under subparagraph (A), the Secretary shall--
                          [(i) give due consideration to the 
                        appointment of individuals who are 
                        highly respected in the academic 
                        community;
                          [(ii) appoint members who represent 
                        the various geographic regions of the 
                        United States;
                          [(iii) ensure that individuals 
                        appointed to the Board are broadly 
                        representative of a range of 
                        disciplines in graduate education in 
                        arts, humanities, and social sciences; 
                        and
                          [(iv) ensure that such individuals 
                        include representatives from 
                        institutions that are eligible for one 
                        or more of the grants under title III 
                        or V.
          [(2) Duties.--The Board shall--
                  [(A) establish general policies for the 
                program established by this subpart and oversee 
                the program's operation;
                  [(B) establish general criteria for the award 
                of fellowships in academic fields identified by 
                the Board, or, in the event that the Secretary 
                enters into a contract with a nongovernmental 
                entity to administer the program assisted under 
                this subpart, by such nongovernmental entity;
                  [(C) appoint panels of academic scholars with 
                distinguished backgrounds in the arts, 
                humanities, and social sciences for the purpose 
                of selecting fellows, except that, in the event 
                that the Secretary enters into a contract with 
                a nongovernmental entity to administer the 
                program, such panels may be appointed by such 
                nongovernmental entity; and
                  [(D) prepare and submit to the Congress at 
                least once in every 3-year period a report on 
                any modifications in the program that the Board 
                determines are appropriate.
          [(3) Consultations.--In carrying out its 
        responsibilities, the Board shall consult on a regular 
        basis with representatives of the National Science 
        Foundation, the National Endowment for the Humanities, 
        the National Endowment for the Arts, and 
        representatives of institutions of higher education and 
        associations of such institutions, learned societies, 
        and professional organizations.
          [(4) Term.--The term of office of each member of the 
        Board shall be 4 years, except that any member 
        appointed to fill a vacancy shall serve for the 
        remainder of the term for which the predecessor of the 
        member was appointed. No member may serve for a period 
        in excess of 6 years.
          [(5) Initial meeting; vacancy.--The Secretary shall 
        call the first meeting of the Board, at which the first 
        order of business shall be the election of a 
        Chairperson and a Vice Chairperson, who shall serve 
        until 1 year after the date of the appointment of the 
        Chairperson and Vice Chairperson. Thereafter each 
        officer shall be elected for a term of 2 years. In case 
        a vacancy occurs in either office, the Board shall 
        elect an individual from among the members of the Board 
        to fill such vacancy.
          [(6) Quorum; additional meetings.--(A) A majority of 
        the members of the Board shall constitute a quorum.
          [(B) The Board shall meet at least once a year or 
        more frequently, as may be necessary, to carry out the 
        Board's responsibilities.
          [(7) Compensation.--Members of the Board, while 
        serving on the business of the Board, shall be entitled 
        to receive compensation at rates fixed by the 
        Secretary, but not exceeding the rate of basic pay 
        payable for level IV of the Executive Schedule, 
        including travel time, and while so serving away from 
        their homes or regular places of business, the members 
        may be allowed travel expenses, including per diem in 
        lieu of subsistence, as authorized by section 5703 of 
        title 5, United States Code, for persons in Government 
        service employed intermittently.
  [(b) Use of Selection Panels.--The recipients of fellowships 
shall be selected in each designated field from among all 
applicants nationwide in each field by distinguished panels 
appointed by the Board to make such selections under criteria 
established by the Board, except that, in the event that the 
Secretary enters into a contract with a nongovernmental entity 
to administer the program, such panels may be appointed by such 
nongovernmental entity. The number of recipients in each field 
in each year shall not exceed the number of fellows allocated 
to that field for that year by the Board.
  [(c) Fellowship Portability.--Each recipient shall be 
entitled to use the fellowship in a graduate program at any 
accredited institution of higher education in which the 
recipient may decide to enroll.

[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 2009-2010 or any 
succeeding academic year, such stipend shall be set at a level 
of support equal to that provided by the National Science 
Foundation Graduate Research Fellowship Program for 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 academic year 2009-2010 and 
        succeeding academic years, the same amount as the 
        institutional payment made for academic year 2008-2009, 
        adjusted for academic year 2009-2010 and annually 
        thereafter in accordance with inflation as determined 
        by the Department of Labor's Consumer Price Index for 
        the previous calendar year.
          [(B) The institutional allowance paid under 
        subparagraph (A) shall be reduced by the amount the 
        institution charges and collects from a fellowship 
        recipient for tuition and other expenses as part of the 
        recipient's instructional program.
          [(2) Special rules.--(A) Beginning March 1, 1992, any 
        applicant for a fellowship under this subpart who has 
        been notified in writing by the Secretary that such 
        applicant has been selected to receive such a 
        fellowship and is subsequently notified that the 
        fellowship award has been withdrawn, shall receive such 
        fellowship unless the Secretary subsequently makes a 
        determination that such applicant submitted fraudulent 
        information on the application.
          [(B) Subject to the availability of appropriations, 
        amounts payable to an institution by the Secretary 
        pursuant to this subsection shall not be reduced for 
        any purpose other than the purposes specified under 
        paragraph (1).

[SEC. 704. FELLOWSHIP CONDITIONS.

  [(a) Requirements for Receipt.--An individual awarded a 
fellowship under the provisions of this subpart shall continue 
to receive payments provided in section 703 only during such 
periods as the Secretary finds that such individual is 
maintaining satisfactory proficiency in, and devoting 
essentially full time to, study or research in the field in 
which such fellowship was awarded, in an institution of higher 
education, and is not engaging in gainful employment other than 
part-time employment by such institution in teaching, research, 
or similar activities, approved by the Secretary.
  [(b) Reports From Recipients.--The Secretary is authorized to 
require reports containing such information in such form and 
filed at such times as the Secretary determines necessary from 
any person awarded a fellowship under the provisions of this 
subpart. The reports shall be accompanied by a certificate from 
an appropriate official at the institution of higher education, 
library, archive, or other research center approved by the 
Secretary, stating that such individual is making satisfactory 
progress in, and is devoting essentially full time to the 
program for which the fellowship was awarded.

[SEC. 705. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated $30,000,000 for 
fiscal year 2009 and each of the five succeeding fiscal years 
to carry out this subpart.]

      Subpart [2] 1--Graduate Assistance in Areas of National Need

SEC. [711.]  701. GRANTS TO ACADEMIC DEPARTMENTS AND PROGRAMS OF 
                    INSTITUTIONS.

  (a) Grant Authority.--
          (1) In general.--The Secretary shall make grants to 
        academic departments, programs and other academic units 
        of institutions of higher education that provide 
        courses of study leading to a graduate degree, 
        including a master's or doctoral degree, in order to 
        enable such institutions to provide assistance to 
        graduate students in accordance with this subpart.
          (2) Additional grants.--The Secretary may also make 
        grants to such departments, programs and other academic 
        units of institutions of higher education granting 
        graduate degrees which submit joint proposals involving 
        nondegree granting institutions which have formal 
        arrangements for the support of doctoral dissertation 
        research with degree-granting institutions. Nondegree 
        granting institutions eligible for awards as part of 
        such joint proposals include any organization which--
                  (A) is described in section 501(c)(3) of the 
                Internal Revenue Code of 1986, and is exempt 
                from tax under section 501(a) of such Code;
                  (B) is organized and operated substantially 
                to conduct scientific and cultural research and 
                graduate training programs;
                  (C) is not a private foundation;
                  (D) has academic personnel for instruction 
                and counseling who meet the standards of the 
                institution of higher education in which the 
                students are enrolled; and
                  (E) has necessary research resources not 
                otherwise readily available in such 
                institutions to such students.
  (b) Award and Duration of Grants.--
          (1) Awards.--The principal criterion for the award of 
        grants shall be the relative quality of the graduate 
        programs presented in competing applications. 
        Consistent with an allocation of awards based on 
        quality of competing applications, the Secretary shall, 
        in awarding such grants, promote an equitable 
        geographic distribution among eligible public and 
        private institutions of higher education.
          (2) Duration and Amount.--
                  (A) Duration.--The Secretary shall award a 
                grant under this subpart for a period of 3 
                years.
                  (B) Amount.--The Secretary shall award a 
                grant to an academic department, program or 
                unit of an institution of higher education 
                under this subpart for a fiscal year in an 
                amount that is not less than $100,000 and not 
                greater than $750,000.
          (3) Reallotment.--Whenever the Secretary determines 
        that an academic department, program or unit of an 
        institution of higher education is unable to use all of 
        the amounts available to the department, program or 
        unit under this subpart, the Secretary shall, on such 
        dates during each fiscal year as the Secretary may fix, 
        reallot the amounts not needed to academic departments, 
        programs and units of institutions which can use the 
        grants authorized by this subpart.
  (c) Preference To Continuing Grant Recipients.--
          (1) In general.--The Secretary shall make new grant 
        awards under this subpart only to the extent that each 
        previous grant recipient under this subpart has 
        received continued funding in accordance with 
        subsection (b)(2)(A).
          (2) Ratable reduction.--To the extent that 
        appropriations under this subpart are insufficient to 
        comply with paragraph (1), available funds shall be 
        distributed by ratably reducing the amounts required to 
        be awarded under subsection (b)(2)(A).

SEC. [712.]  702. INSTITUTIONAL ELIGIBILITY.

  (a) Eligibility Criteria.--Any academic department, program 
or unit of an institution of higher education that offers a 
program of postbaccalaureate study leading to a graduate 
degree, including a master's or doctoral degree, in an area of 
national need (as designated under subsection (b)) may apply 
for a grant under this subpart. No department, program or unit 
shall be eligible for a grant unless the program of 
postbaccalaureate study has been in existence for at least 4 
years at the time of application for assistance under this 
subpart.
  (b) Designation of Areas of National Need.--After 
consultation with appropriate Federal and nonprofit agencies 
and organizations, including the National Science Foundation, 
the Department of Defense, the Department of Homeland Security, 
the National Academy of Sciences, and the Bureau of Labor 
Statistics, the Secretary shall designate areas of national 
need. In making such designations, the Secretary shall take 
into consideration--
          (1) the extent to which the interest in the area is 
        compelling;
          (2) the extent to which other Federal programs 
        support postbaccalaureate study in the area concerned;
          (3) an assessment of how the program may achieve the 
        most significant impact with available resources; and
          (4) an assessment of current (as of the time of the 
        designation) and future professional workforce needs of 
        the United States.

SEC. [713.]  703. CRITERIA FOR APPLICATIONS.

  (a) Selection of Applications.--The Secretary shall make 
grants to academic departments, programs and units of 
institutions of higher education on the basis of applications 
submitted in accordance with subsection (b). Applications shall 
be ranked on program quality by review panels of nationally 
recognized scholars and evaluated on the quality and 
effectiveness of the academic program and the achievement and 
promise of the students to be served. To the extent possible 
(consistent with other provisions of this section), the 
Secretary shall make awards that are consistent with 
recommendations of the review panels.
  (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) describe the current academic program of the 
        applicant for which the grant is sought;
          (2) provide assurances that the applicant will 
        provide, from other non-Federal sources, for the 
        purposes of the fellowship program under this subpart 
        an amount equal to at least 25 percent of the amount of 
        the grant received under this subpart, which 
        contribution may be in cash or in kind, fairly valued;
          (3) set forth policies and procedures to assure that, 
        in making fellowship awards under this subpart, the 
        institution will seek talented students from 
        traditionally underrepresented backgrounds, as 
        determined by the Secretary;
          (4) describe the number, types, and amounts of the 
        fellowships that the applicant intends to offer with 
        grant funds provided under this part;
          (5) set forth policies and procedures to assure that, 
        in making fellowship awards under this subpart, the 
        institution will make awards to individuals who--
                  (A) have financial need, as determined under 
                part F of title IV;
                  (B) have excellent academic records in their 
                previous programs of study; and
                  (C) plan to pursue the highest possible 
                degree available in their course of study at 
                the institution;
          (6) set forth policies and procedures to ensure that 
        Federal funds made available under this subpart 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 purpose of this 
        subpart and in no case to supplant those funds;
          (7) provide assurances that, in the event that funds 
        made available to the academic department, program or 
        unit under this subpart are insufficient to provide the 
        assistance due a student under the commitment entered 
        into between the academic department, program or unit 
        and the student, the academic department, program or 
        unit will, from any funds available to the department, 
        program or unit, fulfill the commitment to the student;
          (8) provide that the applicant will comply with the 
        limitations set forth in [section 715] section 705;
          (9) provide assurances that the academic department 
        will provide at least 1 year of supervised training in 
        instruction for students; and
          (10) include such other information as the Secretary 
        may prescribe.

SEC. [714.]  704. AWARDS TO GRADUATE STUDENTS.

  (a) Commitments to Graduate Students.--
          (1) In general.--An academic department, program or 
        unit of an institution of higher education shall make 
        commitments to graduate students who are eligible 
        students under section 484 (including students pursuing 
        a doctoral degree after having completed a master's 
        degree program at an institution of higher education) 
        at any point in their graduate study to provide 
        stipends for the length of time necessary for a student 
        to complete the course of graduate study, but in no 
        case longer than 5 years.
          (2) Special rule.--No such commitments shall be made 
        to students under this subpart unless the academic 
        department, program or unit has determined adequate 
        funds are available to fulfill the commitment from 
        funds received or anticipated under this subpart, or 
        from institutional funds.
  (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 2009-2010 or any succeeding academic year, such 
stipend shall be set at a level of support equal to that 
provided by the National Science Foundation Graduate Research 
Fellowship Program for 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 715(a)] 
section 705(a) may count such excess toward the amounts the 
institution is required to provide pursuant to [section 
713(b)(2)] section 703(b)(2).
  (d) Academic Progress Required.--Notwithstanding the 
provisions of subsection (a), no student shall receive an 
award--
          (1) except during periods in which such student is 
        maintaining satisfactory progress in, and devoting 
        essentially full time to, study or research in the 
        field in which such fellowship was awarded; or
          (2) if the student is engaging in gainful employment 
        other than part-time employment involved in teaching, 
        research, or similar activities determined by the 
        institution to be in support of the student's progress 
        towards a degree.

SEC. [715.]  705. 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 
        2009-2010 and succeeding academic years, the same 
        amount as the institutional payment made for 2008-2009 
        adjusted annually thereafter in accordance with 
        inflation as determined by the Department of Labor's 
        Consumer Price Index for the previous calendar year.
          (2) Reduction.--The institutional allowance paid 
        under paragraph (1) shall be reduced by the amount the 
        institution charges and collects from a fellowship 
        recipient for tuition and other expenses as part of the 
        recipient's instructional program.
  (b) Use for Overhead Prohibited.--Funds made available 
pursuant to this subpart may not be used for the general 
operational overhead of the academic department or program.

SEC. [716.]  706. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated [$35,000,000 for 
fiscal year 2009 and each of the five succeeding fiscal years 
to carry out this subpart.] $28,047,000 for each of fiscal 
years 2019 through 2024.

  [Subpart 3--Thurgood Marshall Legal Educational Opportunity Program

[SEC. 721. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM.

  [(a) Program Authority.--The Secretary shall carry out a 
program to be known as the ``Thurgood Marshall Legal 
Educational Opportunity Program'' designed to provide low-
income, minority, or disadvantaged secondary school and college 
students with the information, preparation, and financial 
assistance to gain access to and complete law school study and 
admission to law practice.
  [(b) Eligibility.--A secondary school student or college 
student is eligible for assistance under this section if the 
student is--
          [(1) from a low-income family;
          [(2) a minority; or
          [(3) from an economically or otherwise disadvantaged 
        background.
  [(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) to identify secondary school and college 
        students who are from low-income families, are 
        minorities, or are from disadvantaged backgrounds 
        described in subsection (b)(3);
          [(2) to prepare such students for successful 
        completion of a baccalaureate degree and for study at 
        accredited law schools, and to assist them with the 
        development of analytical skills, writing skills, and 
        study methods to enhance the students' success in, and 
        promote the students' admission to and completion of, 
        law school;
          [(3) to assist such students to select the 
        appropriate law school, make application for entry into 
        law school, and receive financial assistance for such 
        study;
          [(4) to provide support services to such students who 
        are first-year law students to improve retention and 
        success in law school studies;
          [(5) to motivate and prepare such students--
                  [(A) with respect to law school studies and 
                practice in low-income communities; and
                  [(B) to provide legal services to low-income 
                individuals and families; and
          [(6) to award Thurgood Marshall Fellowships to 
        eligible law school students--
                  [(A) who participated in summer institutes 
                under subsection (d)(6) and who are enrolled in 
                an accredited law school; or
                  [(B) who have successfully completed a 
                comparable summer institute program that is 
                certified by the Council on Legal Education 
                Opportunity.
  [(d) Services Provided.--In carrying out the purposes 
described in subsection (c), the contract or grant shall 
provide for the delivery of services through pre-college 
programs, undergraduate 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) accredited law school academic programs, 
                especially tuition, fees, and admission 
                requirements;
                  [(B) course work offered and required for law 
                school graduation;
                  [(C) faculty specialties and areas of legal 
                emphasis; and
                  [(D) pre-college and undergraduate 
                preparatory courses in analytical and writing 
                skills, study methods, and course selection;
          [(2) summer academic programs for secondary school 
        students who have expressed interest in a career in the 
        law;
          [(3) tutoring and academic counseling, including 
        assistance in preparing for bar examinations;
          [(4) prelaw mentoring programs, involving law school 
        faculty, members of State and local bar associations, 
        and retired and sitting judges, justices, and 
        magistrates;
          [(5) assistance in identifying preparatory courses 
        and 
        material for the law school aptitude or admissions 
        tests;
          [(6) summer institutes for Thurgood Marshall Fellows 
        that expose the Fellows to a rigorous curriculum that 
        emphasizes abstract thinking, legal analysis, research, 
        writing, and examination techniques; and
          [(7) midyear seminars and other educational 
        activities that are designed to reinforce reading, 
        writing, and studying skills of Thurgood Marshall 
        Fellows and Associates.
  [(e) Duration of the Provision of Services.--The services 
described in subsection (d) may be provided--
          [(1) prior to the period of law school study, 
        including before and during undergraduate study;
          [(2) during the period of law school study; and
          [(3) during the period following law school study and 
        prior to taking a bar examination.
  [(f) Subcontracts and Subgrants.--For the purposes of 
planning, developing, or delivering one or more of the services 
described in subsection (d), the Council on Legal Education 
Opportunity shall enter into subcontracts with, and make 
subgrants to, institutions of higher education, law schools, 
public and private agencies and organizations, national and 
State bar associations, and combinations of such institutions, 
schools, agencies, organizations, and associations.
  [(g) Fellowships and Stipends.--The Secretary shall annually 
establish the maximum fellowship to be awarded, and the maximum 
stipend to be paid (including allowances for participant travel 
and for the travel of the dependents of the participant), to 
Thurgood Marshall Fellows or Associates for the period of 
participation in summer institutes, midyear seminars, and bar 
preparation seminars. A Thurgood Marshall Fellow or Associate 
may be eligible for such a fellowship or stipend only if the 
Fellow or Associate maintains satisfactory academic progress 
toward the Juris Doctor or Bachelor of Laws degree, as 
determined by the respective institutions (except with respect 
to a law school graduate enrolled in a bar preparation course).
  [(h) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $5,000,000 for 
fiscal year 2009 and each of the five succeeding fiscal years.]

 Subpart [4] 2--Masters Degree Programs at Historically Black Colleges 
         and Universities and Predominantly Black Institutions

SEC. [723.]  711. MASTERS DEGREE PROGRAMS AT HISTORICALLY BLACK 
                    COLLEGES AND UNIVERSITIES.

  (a) Grant Program Authorized.--
          (1) In general.--Subject to the availability of funds 
        appropriated to carry out this section, the Secretary 
        shall award program grants to each of the institutions 
        listed in subsection (b)(1) that is determined by the 
        Secretary to be making a substantial contribution to 
        graduate education opportunities at the masters level 
        in mathematics, engineering, the physical or natural 
        sciences, computer science, information technology, 
        nursing, allied health, or other scientific disciplines 
        for Black Americans.
          (2) Assurance of non-federal matching funds.--No 
        grant in excess of $1,000,000 may be made under this 
        section unless the institution provides assurances that 
        50 percent of the cost of the purposes for which the 
        grant is made will be paid from non-Federal sources, 
        except that no institution shall be required to match 
        any portion of the first $1,000,000 of the 
        institution's award from the Secretary. After funds are 
        made available to each eligible institution under the 
        funding rules described in subsection (f), the 
        Secretary shall distribute, on a pro rata basis, any 
        amounts which were not so made available (by reason of 
        the failure of an institution to comply with the 
        matching requirements of this paragraph) among the 
        institutions that have complied with such matching 
        requirement.
          (3) Minimum award.--Subject to subsections (f) and 
        (g), the amount awarded to each eligible institution 
        listed in subsection (b)(1) for a fiscal year shall be 
        not less than $500,000.
          (4) Duration of grants.--A grant awarded under this 
        section shall be for a period of not more than six 
        years, but may be periodically renewed for a period to 
        be determined by the Secretary.
  (b) Institutional Eligibility.--
          (1) In general.--Institutions eligible for grants 
        under subsection (a) are the following:
                  (A) Albany State University.
                  (B) Alcorn State University.
                  (C) Claflin University.
                  (D) Coppin State University.
                  (E) Elizabeth City State University.
                  (F) Fayetteville State University.
                  (G) Fisk University.
                  (H) Fort Valley State University.
                  (I) Grambling State University.
                  (J) Kentucky State University.
                  (K) Mississippi Valley State University.
                  (L) Savannah State University.
                  (M) South Carolina State University.
                  (N) University of Arkansas, Pine Bluff.
                  (O) Virginia State University.
                  (P) West Virginia State University.
                  (Q) Wilberforce University.
                  (R) Winston-Salem State University.
          (2) Qualified masters degree program.--
                  (A) In general.--For the purposes of this 
                section, the term ``qualified masters degree 
                program'' means a masters degree program that 
                provides a program of instruction in 
                mathematics, engineering, the physical or 
                natural sciences, computer science, information 
                technology, nursing, allied health, or other 
                scientific disciplines in which African 
                Americans are underrepresented and has students 
                enrolled in such program of instruction at the 
                time of application for a grant under this 
                section.
                  (B) Enrollment exception.--Notwithstanding 
                the enrollment requirement contained in 
                subparagraph (A), an institution may use an 
                amount equal to not more than 10 percent of the 
                institution's grant under this section for the 
                development of a new qualified masters degree 
                program.
          (3) Institutional choice.--The president or 
        chancellor of the institution may decide which graduate 
        school or qualified masters degree program will receive 
        funds under the grant in any one fiscal year, if the 
        allocation of funds among the schools or programs is 
        delineated in the application for funds submitted to 
        the Secretary under this section.
          (4) One grant per institution.--The Secretary shall 
        not award more than one grant under this section in any 
        fiscal year to any institution of higher education.
  (c) Application.--An eligible institution listed in 
subsection (b)(1) desiring a grant under this section shall 
submit an application at such time, in such manner, and 
containing such information as the Secretary may require. The 
application shall--
          (1) demonstrate how the grant funds under this 
        section will be used to improve graduate educational 
        opportunities for Black and low-income students, and 
        lead to greater financial independence; and
          (2) provide, in the case of applications for grants 
        in excess of $1,000,000, the assurances required under 
        subsection (a)(2) and specify the manner in which the 
        eligible institution is going to pay the non-Federal 
        share of the cost of the application.
  (d) Uses of Funds.--A grant under this section may be used 
for--
          (1) purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, 
        including instructional and research purposes;
          (2) construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and 
        other instructional facilities, including purchase or 
        rental of telecommunications technology equipment or 
        services;
          (3) purchase of library books, periodicals, technical 
        and other scientific journals, microfilm, microfiche, 
        and other educational materials, including 
        telecommunications program materials;
          (4) scholarships, fellowships, and other financial 
        assistance for needy graduate students to permit the 
        enrollment of the students in, and completion of, a 
        masters degree in mathematics, engineering, the 
        physical or natural sciences, computer science, 
        information technology, nursing, allied health, or 
        other scientific disciplines in which African Americans 
        are underrepresented;
          (5) establishing or improving a development office to 
        strengthen and increase contributions from alumni and 
        the private sector;
          (6) assisting in the establishment or maintenance of 
        an institutional endowment to facilitate financial 
        independence pursuant to section 331;
          (7) funds and administrative management, and the 
        acquisition of equipment, including software, for use 
        in strengthening funds management and management 
        information systems;
          (8) acquisition of real property that is adjacent to 
        the campus in connection with the construction, 
        renovation, or improvement of, or an addition to, 
        campus facilities;
          (9) education or financial information designed to 
        improve the financial literacy and economic literacy of 
        students or the students' families, especially with 
        regard to student indebtedness and student assistance 
        programs under title IV;
          (10) tutoring, counseling, and student service 
        programs designed to improve academic success;
          (11) faculty professional development, faculty 
        exchanges, and faculty participation in professional 
        conferences and meetings; and
          (12) other activities proposed in the application 
        submitted under subsection (c) that--
                  (A) contribute to carrying out the purposes 
                of this section; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.
  (e) Interaction with Other Grant Programs.--No institution 
that is eligible for and receives an award under section 326, 
512, or [724] 712 for a fiscal year shall be eligible to apply 
for a grant, or receive grant funds, under this section for the 
same fiscal year.
  (f) Funding Rule.--Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year--
          (1) the first $9,000,000 (or any lesser amount 
        appropriated) shall be available only for the purposes 
        of making minimum grants under subsection (a)(3) to 
        eligible institutions listed in subparagraphs (A) 
        through (R) of subsection (b)(1), except that if the 
        amount appropriated is not sufficient to pay the 
        minimum grant awards to all such eligible institutions, 
        the amount of the minimum award to each such eligible 
        institution shall be ratably reduced;
          (2) after the application of paragraph (1), an amount 
        shall be available for the purpose of making minimum 
        grants under subsection (a)(3) to eligible institutions 
        listed in subsection (b)(1) that do not receive a grant 
        under paragraph (1), if any, except that if the amount 
        appropriated is not sufficient to pay the minimum grant 
        awards to all such eligible institutions, the amount of 
        the minimum award to each such eligible institution 
        shall be ratably reduced; and
          (3) any amount in excess of $9,000,000 shall be made 
        available to each of the eligible institutions 
        identified in subparagraphs (A) through (R) of 
        subsection (b)(1), pursuant to a formula developed by 
        the Secretary that uses the following elements:
                  (A) The ability of the institution to match 
                Federal funds with non-Federal funds.
                  (B) The number of students enrolled in the 
                qualified masters degree program at the 
                eligible institution in the previous academic 
                year.
                  (C) The average cost of attendance per 
                student, for all full-time students enrolled in 
                the qualified masters degree program at such 
                institution.
                  (D) The number of students in the previous 
                year who received a degree in the qualified 
                masters degree program at such institution.
                  (E) The contribution, on a percent basis, of 
                the programs for which the institution is 
                eligible to receive funds under this section to 
                the total number of African Americans receiving 
                masters degrees in the disciplines related to 
                the programs for the previous year.
  (g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and 
(3) of subsection (f), no eligible institution identified in 
subsection (b)(1) that receives a grant under this section for 
fiscal year 2009 and that is eligible to receive a grant for a 
subsequent fiscal year shall receive a grant amount for any 
such subsequent fiscal year that is less than the grant amount 
received for fiscal year 2009, unless--
          (1) the amount appropriated is not sufficient to 
        provide such grant amounts to all such institutions and 
        programs that received grants under this section for 
        such fiscal year and that are eligible to receive a 
        grant in such subsequent fiscal year; or
          (2) the institution cannot provide sufficient 
        matching funds to meet the requirements of this 
        section.

SEC. [724.]  712. MASTERS DEGREE PROGRAMS AT PREDOMINANTLY BLACK 
                    INSTITUTIONS.

  (a) Grant Program Authorized.--
          (1) In general.--Subject to the availability of funds 
        appropriated to carry out this section, the Secretary 
        shall award program grants to each of the institutions 
        listed in subsection (b)(1) that is determined by the 
        Secretary to be making a substantial contribution to 
        graduate education opportunities at the masters level 
        in mathematics, engineering, the physical or natural 
        sciences, computer science, information technology, 
        nursing, allied health, or other scientific disciplines 
        for Black Americans.
          (2) Assurance of non-federal matching funds.--No 
        grant in excess of $1,000,000 may be made under this 
        section unless the institution provides assurances that 
        50 percent of the cost of the purposes for which the 
        grant is made will be paid from non-Federal sources, 
        except that no institution shall be required to match 
        any portion of the first $1,000,000 of the 
        institution's award from the Secretary. After funds are 
        made available to each eligible institution under the 
        funding rules described in subsection (f), the 
        Secretary shall distribute, on a pro rata basis, any 
        amounts which were not so made available (by reason of 
        the failure of an institution to comply with the 
        matching requirements of this paragraph) among the 
        institutions that have complied with such matching 
        requirement.
          (3) Minimum award.--Subject to subsections (f) and 
        (g), the amount awarded to each eligible institution 
        listed in subsection (b)(1) for a fiscal year shall be 
        not less than $500,000.
          (4) Duration of grants.--A grant awarded under this 
        section shall be for a period of not more than six 
        years, but may be periodically renewed for a period to 
        be determined by the Secretary.
  (b) Institutional Eligibility.--
          (1) In general.--Institutions eligible for grants 
        under subsection (a) are the following:
                  (A) Chicago State University.
                  (B) Columbia Union College.
                  (C) Long Island University, Brooklyn campus.
                  (D) Robert Morris College.
                  (E) York College, The City University of New 
                York.
          (2) Qualified masters degree program.--
                  (A) In general.--For the purposes of this 
                section, the term ``qualified masters degree 
                program'' means a masters degree program that 
                provides a program of instruction in 
                mathematics, engineering, the physical or 
                natural sciences, computer science, information 
                technology, nursing, allied health, or other 
                scientific disciplines in which African 
                Americans are underrepresented and has students 
                enrolled in such program of instruction at the 
                time of application for a grant under this 
                section.
                  (B) Enrollment exception.--Notwithstanding 
                the enrollment requirement contained in 
                subparagraph (A), an institution may use an 
                amount equal to not more than 10 percent of the 
                institution's grant under this section for the 
                development of a new qualified masters degree 
                program.
          (3) Institutional choice.--The president or 
        chancellor of the institution may decide which graduate 
        school or qualified masters degree program will receive 
        funds under the grant in any one fiscal year, if the 
        allocation of funds among the schools or programs is 
        delineated in the application for funds submitted to 
        the Secretary under this section.
          (4) One grant per institution.--The Secretary shall 
        not award more than one grant under this section in any 
        fiscal year to any institution of higher education.
  (c) Application.--An eligible institution listed in 
subsection (b)(1) desiring a grant under this section shall 
submit an application at such time, in such manner, and 
containing such information as the Secretary may require. The 
application shall--
          (1) demonstrate how the grant funds under this 
        section will be used to improve graduate educational 
        opportunities for Black and low-income students and 
        lead to greater financial independence; and
          (2) provide, in the case of applications for grants 
        in excess of $1,000,000, the assurances required under 
        subsection (a)(2) and specify the manner in which the 
        eligible institution is going to pay the non-Federal 
        share of the cost of the application.
  (d) Uses of Funds.--A grant under this section may be used 
for--
          (1) purchase, rental, or lease of scientific or 
        laboratory equipment for educational purposes, 
        including instructional and research purposes;
          (2) construction, maintenance, renovation, and 
        improvement in classroom, library, laboratory, and 
        other instructional facilities, including purchase or 
        rental of telecommunications technology equipment or 
        services;
          (3) purchase of library books, periodicals, technical 
        and other scientific journals, microfilm, microfiche, 
        and other educational materials, including 
        telecommunications program materials;
          (4) scholarships, fellowships, and other financial 
        assistance for needy graduate students to permit the 
        enrollment of the students in, and completion of, a 
        masters degree in mathematics, engineering, the 
        physical or natural sciences, computer science, 
        information technology, nursing, allied health, or 
        other scientific disciplines in which African Americans 
        are underrepresented;
          (5) establishing or improving a development office to 
        strengthen and increase contributions from alumni and 
        the private sector;
          (6) assisting in the establishment or maintenance of 
        an institutional endowment to facilitate financial 
        independence pursuant to section 331;
          (7) funds and administrative management, and the 
        acquisition of equipment, including software, for use 
        in strengthening funds management and management 
        information systems;
          (8) acquisition of real property that is adjacent to 
        the campus in connection with the construction, 
        renovation, or improvement of, or an addition to, 
        campus facilities;
          (9) education or financial information designed to 
        improve the financial literacy and economic literacy of 
        students or the students' families, especially with 
        regard to student indebtedness and student assistance 
        programs under title IV;
          (10) tutoring, counseling, and student service 
        programs designed to improve academic success;
          (11) faculty professional development, faculty 
        exchanges, and faculty participation in professional 
        conferences and meetings; and
          (12) other activities proposed in the application 
        submitted under subsection (c) that--
                  (A) contribute to carrying out the purposes 
                of this section; and
                  (B) are approved by the Secretary as part of 
                the review and acceptance of such application.
  (e) Interaction with Other Grant Programs.--No institution 
that is eligible for and receives an award under section 326, 
512, or [723] 711 for a fiscal year shall be eligible to apply 
for a grant, or receive grant funds, under this section for the 
same fiscal year.
  (f) Funding Rule.--Subject to subsection (g), of the amount 
appropriated to carry out this section for any fiscal year--
          (1) the first $2,500,000 (or any lesser amount 
        appropriated) shall be available only for the purposes 
        of making minimum grants under subsection (a)(3) to 
        eligible institutions listed in subparagraphs (A) 
        through (E) of subsection (b)(1), except that if the 
        amount appropriated is not sufficient to pay the 
        minimum grant awards to all such eligible institutions, 
        the amount of the minimum award to each such eligible 
        institution shall be ratably reduced;
          (2) after the application of paragraph (1), an amount 
        shall be available for the purpose of making minimum 
        grants under subsection (a)(3) to eligible institutions 
        described in subsection (b)(1) that do not receive a 
        grant under paragraph (1), if any, except that if the 
        amount appropriated is not sufficient to pay the 
        minimum grant awards to all such eligible institutions, 
        the amount of the minimum award to each such eligible 
        institution shall be ratably reduced; and
          (3) any amount in excess of $2,500,000 shall be made 
        available to each of the eligible institutions 
        identified in subparagraphs (A) through (E) of 
        subsection (b)(1), pursuant to a formula developed by 
        the Secretary that uses the following elements:
                  (A) The ability of the institution to match 
                Federal funds with non-Federal funds.
                  (B) The number of students enrolled in the 
                qualified masters degree program at the 
                eligible institution in the previous academic 
                year.
                  (C) The average cost of attendance per 
                student, for all full-time students enrolled in 
                the qualified masters degree program at such 
                institution.
                  (D) The number of students in the previous 
                year who received a degree in the qualified 
                masters degree program at such institution.
                  (E) The contribution, on a percent basis, of 
                the programs for which the institution is 
                eligible to receive funds under this section to 
                the total number of African Americans receiving 
                masters degrees in the disciplines related to 
                the programs for the previous year.
  (g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and 
(3) of subsection (f), no eligible institution identified in 
subsection (b)(1) that receives a grant under this section for 
fiscal year 2009 and that is eligible to receive a grant in a 
subsequent fiscal year shall receive a grant amount in any such 
subsequent fiscal year that is less than the grant amount 
received for fiscal year 2009, unless--
          (1) the amount appropriated is not sufficient to 
        provide such grant amounts to all such institutions and 
        programs that received grants under this section for 
        such fiscal year and that are eligible to receive a 
        grant in such subsequent fiscal year; or
          (2) the institution cannot provide sufficient 
        matching funds to meet the requirements of this 
        section.

SEC. [725.]  713. AUTHORIZATION OF APPROPRIATIONS.

  (a) Masters Degree Programs at Historically Black Colleges 
and Universities.--There are authorized to be appropriated to 
carry out [section 723 such sums as may be necessary for fiscal 
year 2009 and each of the five succeeding fiscal years.] 
section 711, $7,500,000 for fiscal year 2019 and each of the 
five succeeding fiscal years.
  (b) Masters Degree Programs at Predominantly Black 
Institutions.--There are authorized to be appropriated to carry 
out [section 724] section 712 such sums as may be necessary for 
fiscal year 2009 and each of the five succeeding fiscal years.

                   Subpart [5] 3--General Provisions

SEC. [731.]  721. ADMINISTRATIVE PROVISIONS FOR SUBPARTS 1 [THROUGH 4]  
                    AND 2.

  (a) Coordinated Administration.--In carrying out the purpose 
described in section 700(1), the Secretary shall provide for 
coordinated administration and regulation of graduate programs 
assisted under [subparts 1 through 4] subparts 1 and 2 with 
other Federal programs providing assistance for graduate 
education in order to minimize duplication and improve 
efficiency to ensure that the programs are carried out in a 
manner most compatible with academic practices and with the 
standard timetables for applications for, and notifications of 
acceptance to, graduate programs.
  (b) Hiring Authority.--For purposes of carrying out [subparts 
1 through 4] subparts 1 and 2, the Secretary shall appoint, 
without regard to the provisions of title 5, United States 
Code, that govern appointments in the competitive service, such 
administrative and technical employees, with the appropriate 
educational background, as shall be needed to assist in the 
administration of such parts. The employees shall 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.
  (c) Use for Religious Purposes Prohibited.--No institutional 
payment or allowance under [section 703(b) or 715(a)] section 
705(a) shall be paid to a school or department of divinity as a 
result of the award of a fellowship under [subpart 1 or 2, 
respectively,] subpart 1 to an individual who is studying for a 
religious vocation.
  (d) Evaluation.--The Secretary shall evaluate the success of 
assistance provided to individuals under [subpart 1, 2, 3, or 
4] subpart 1 or 2 with respect to graduating from their degree 
programs, and placement in faculty and professional positions.

      [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) the encouragement of reform and improvement of, 
        and innovation in, postsecondary education and the 
        provision of educational opportunity for all students, 
        including nontraditional students;
          [(2) the creation of institutions, programs, and 
        joint efforts involving paths to career and 
        professional training, including--
                  [(A) efforts that provide academic credit for 
                programs; and
                  [(B) combinations of academic and 
                experiential learning;
          [(3) the establishment and continuation of 
        institutions, programs, consortia, collaborations, and 
        other joint efforts based on communications technology, 
        including those efforts that utilize distance education 
        and technological advancements to educate and train 
        postsecondary students (including health professionals 
        serving medically underserved populations);
          [(4) the carrying out, in postsecondary educational 
        institutions, of changes in internal structure and 
        operations designed to clarify institutional priorities 
        and purposes;
          [(5) the design and introduction of cost-effective 
        methods of instruction and operation;
          [(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;
          [(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 introduction of reforms in remedial 
        education, including English language instruction, to 
        customize remedial courses to student goals and help 
        students progress rapidly from remedial courses into 
        core courses and through postsecondary program 
        completion;
          [(10) the provision of support and assistance to 
        partnerships between institutions of higher education 
        and secondary schools with a significant population of 
        students identified as late-entering limited English 
        proficient students, to establish programs that--
                  [(A) result in increased secondary school 
                graduation rates of limited English proficient 
                students; and
                  [(B) increase the number of participating 
                late-entering limited English proficient 
                students who pursue postsecondary education;
          [(11) the creation of consortia that join diverse 
        institutions of higher education to design and offer 
        curricular and cocurricular interdisciplinary programs 
        at the undergraduate and graduate levels, sustained for 
        not less than a 5 year period, that--
                  [(A) focus on poverty and human capability; 
                and
                  [(B) include--
                          [(i) a service-learning component; 
                        and
                          [(ii) the delivery of educational 
                        services through informational resource 
                        centers, summer institutes, midyear 
                        seminars, and other educational 
                        activities that stress the effects of 
                        poverty and how poverty can be 
                        alleviated through different career 
                        paths;
          [(12) the provision of support and assistance for 
        demonstration projects to provide comprehensive support 
        services to ensure that homeless students, or students 
        who were in foster care or were a ward of the court at 
        any time before the age of 13, enroll and succeed in 
        postsecondary education, including providing housing to 
        such students during periods when housing at the 
        institution of higher education is closed or generally 
        unavailable to other students; and
          [(13) the support of efforts to work with 
        institutions of higher education, and nonprofit 
        organizations, that seek to promote cultural diversity 
        in the entertainment media industry, including through 
        the training of students in production, marketing, and 
        distribution of culturally relevant content.
  [(b) Planning Grants.--The Secretary is authorized to make 
planning grants to institutions of higher education for the 
development and testing of innovative techniques in 
postsecondary education. Such grants shall not exceed $20,000.
  [(c) Center for Best Practices To Support Single Parent 
Students.--
          [(1) Program authorized.--The Secretary is authorized 
        to award one grant or contract to an institution of 
        higher education to enable such institution to 
        establish and maintain a center to study and develop 
        best practices for institutions of higher education to 
        support single parents who are also students attending 
        such institutions.
          [(2) Institution requirements.--The Secretary shall 
        award the grant or contract under this subsection to a 
        four-year institution of higher education that has 
        demonstrated expertise in the development of programs 
        to assist single parents who are students at 
        institutions of higher education, as shown by the 
        institution's development of a variety of targeted 
        services to such students, including on-campus housing, 
        child care, counseling, advising, internship 
        opportunities, financial aid, and financial aid 
        counseling and assistance.
          [(3) Center activities.--The center funded under this 
        section shall--
                  [(A) assist institutions implementing 
                innovative programs that support single parents 
                pursuing higher education;
                  [(B) study and develop an evaluation protocol 
                for such programs that includes quantitative 
                and qualitative methodologies;
                  [(C) provide appropriate technical assistance 
                regarding the replication, evaluation, and 
                continuous improvement of such programs; and
                  [(D) develop and disseminate best practices 
                for such programs.
  [(d) Prohibition.--
          [(1) In general.--No funds made available under this 
        part shall be used to provide direct financial 
        assistance in the form of grants or scholarships to 
        students who do not meet the requirements of section 
        484(a).
          [(2) Rule of construction.--Nothing in this 
        subsection shall be construed to prevent a student who 
        does not meet the requirements of section 484(a) from 
        participating in programs funded under this part.
  [(e) Priority.--In making grants under this part to any 
institution of higher education after the date of enactment of 
theHigher Education Opportunity Act, the Secretary may give 
priority to institutions that meet or exceed the most current 
version of ASHRAE/IES Standard 90.1 (as such term is used in 
section 342(a)(6) of the Energy Policy and Conservation Act (42 
U.S.C. 6313(a)(6)) for any new facilities construction or major 
renovation of the institution after such date, except that this 
subsection shall not apply with respect to barns or greenhouses 
or similar structures owned by the institution.
  [(f) Scholarship Program for Family Members of Veterans or 
Members of the Military.--
          [(1) Authorization.--The Secretary shall enter into a 
        contract with a nonprofit organization with 
        demonstrated success in carrying out the activities 
        described in this subsection to carry out a program to 
        provide postsecondary education scholarships for 
        eligible students.
          [(2) Definition of eligible student.--In this 
        subsection, the term ``eligible student'' means an 
        individual who is enrolled as a full-time or part-time 
        student at an institution of higher education (as 
        defined in section 102) and is--
                  [(A) a dependent student who is a child of--
                          [(i) an individual who is--
                                  [(I) serving on active duty 
                                during a war or other military 
                                operation or national emergency 
                                (as defined in section 481); or
                                  [(II) performing qualifying 
                                National Guard duty during a 
                                war or other military operation 
                                or national emergency (as 
                                defined in section 481); or
                          [(ii) a veteran who--
                                  [(I) served or performed, as 
                                described in clause (i), since 
                                September 11, 2001; and
                                  [(II) died, or has been 
                                disabled, as a result of such 
                                service or performance; or
                  [(B) an independent student who--
                          [(i) is a spouse of an individual who 
                        is--
                                  [(I) serving on active duty 
                                during a war or other military 
                                operation or national emergency 
                                (as defined in section 481); or
                                  [(II) performing qualifying 
                                National Guard duty during a 
                                war or other military operation 
                                or national emergency (as 
                                defined in section 481);
                          [(ii) was (at the time of death of 
                        the veteran) a spouse of a veteran 
                        who--
                                  [(I) served or performed, as 
                                described in clause (i), since 
                                September 11, 2001; and
                                  [(II) died as a result of 
                                such service or performance; or
                          [(iii) is a spouse of a veteran who--
                                  [(I) served or performed, as 
                                described in clause (i), since 
                                September 11, 2001; and
                                  [(II) has been disabled as a 
                                result of such service or 
                                performance.
          [(3) Awarding of scholarships.--Scholarships awarded 
        under this subsection shall be awarded based on need 
        with priority given to eligible students who are 
        eligible to receive Federal Pell Grants under subpart 1 
        of part A of title IV.
          [(4) Maximum scholarship amount.--The maximum 
        scholarship amount awarded to an eligible student under 
        this subsection for an award year shall be the lesser 
        of $5,000, or the student's cost of attendance (as 
        defined in section 472).
          [(5) Amounts for scholarships.--All of the amounts 
        appropriated to carry out this subsection for a fiscal 
        year shall be used for scholarships awarded under this 
        subsection, except that the nonprofit organization 
        receiving a contract under this subsection may use not 
        more than one percent of such amounts for the 
        administrative costs of the contract.

[SEC. 742. BOARD OF THE FUND FOR THE IMPROVEMENT OF POSTSECONDARY 
                    EDUCATION.

  [(a) Establishment.--There is established a National Board of 
the Fund for the Improvement of Postsecondary Education (in 
this part referred to as the ``Board''). The Board shall 
consist of 15 members appointed by the Secretary for 
overlapping 3-year terms. A majority of the Board shall 
constitute a quorum. Any member of the Board who has served for 
6 consecutive years shall thereafter be ineligible for 
appointment to the Board during a 2-year period following the 
expiration of such sixth year.
  [(b) Membership.--The Secretary shall designate one of the 
members of the Board as Chairperson of the Board. A majority of 
the members of the Board shall be public interest 
representatives, including students, and a minority shall be 
educational representatives. All members selected shall be 
individuals able to contribute an important perspective on 
priorities for improvement in postsecondary education and 
strategies of educational and institutional change.
  [(c) Duties.--The Board shall--
          [(1) advise the Secretary on priorities for the 
        improvement of postsecondary education and make such 
        recommendations as the Board may deem appropriate for 
        the improvement of postsecondary education and for the 
        evaluation, dissemination, and adaptation of 
        demonstrated improvements in postsecondary educational 
        practice;
          [(2) advise the Secretary on the operation of the 
        Fund for the Improvement of Postsecondary Education, 
        including advice on planning documents, guidelines, and 
        procedures for grant competitions prepared by the Fund; 
        and
          [(3) meet at the call of the Chairperson, except that 
        the Board shall meet whenever one-third or more of the 
        members request in writing that a meeting be held.
  [(d) Information and Assistance.--The Secretary shall make 
available to the Board such information and assistance as may 
be necessary to enable the Board to carry out its functions.

[SEC. 743. ADMINISTRATIVE PROVISIONS.

  [The Secretary may appoint, for terms not to exceed 3 years, 
without regard to the provisions of title 5, United States 
Code, governing appointments in the competitive service, not 
more than 7 technical employees to administer this part who 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.

[SEC. 744. SPECIAL PROJECTS.

  [(a) Grant Authority.--The Secretary is authorized to make 
grants to institutions of higher education, or consortia 
thereof, and such other public agencies and nonprofit 
organizations as the Secretary deems necessary for innovative 
projects concerning one or more areas of particular national 
need identified by the Secretary.
  [(b) Application.--No grant shall be made under this part 
unless an application is made at such time, in such manner, and 
contains or is accompanied by such information as the Secretary 
may require.
  [(c) Areas of National Need.--Areas of national need shall 
include, at a minimum, the following:
          [(1) Institutional restructuring to improve learning 
        and promote productivity, efficiency, quality 
        improvement, and cost reduction.
          [(2) Improvements in academic instruction and student 
        learning, including efforts designed to assess the 
        learning gains made by postsecondary students.
          [(3) Articulation between two- and four-year 
        institutions of higher education, including developing 
        innovative methods for ensuring the successful transfer 
        of students from two- to four-year institutions of 
        higher education.
          [(4) Development, evaluation, and dissemination of 
        model courses, including model courses that--
                  [(A) provide students with a broad and 
                integrated knowledge base;
                  [(B) include, at a minimum, broad survey 
                courses in English literature, American and 
                world history, American political institutions, 
                economics, philosophy, college-level 
                mathematics, and the natural sciences; and
                  [(C) include study of a foreign language that 
                leads to reading and writing competency in the 
                foreign language.
          [(5) International cooperation and student exchanges 
        among postsecondary educational institutions.
          [(6) Support of centers to incorporate education in 
        quality and safety into the preparation of medical and 
        nursing students, through grants to medical schools, 
        nursing schools, and osteopathic schools. Such grants 
        shall be used to assist in providing courses of 
        instruction that specifically equip students to--
                  [(A) understand the causes of, and remedies 
                for, medical error, medically induced patient 
                injuries and complications, and other defects 
                in medical care;
                  [(B) engage effectively in personal and 
                systemic efforts to continually reduce medical 
                harm; and
                  [(C) improve patient care and outcomes, as 
                recommended by the Institute of Medicine of the 
                National Academies.

[SEC. 745. AUTHORIZATION OF APPROPRIATIONS.

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

   PART [D] B--PROGRAMS TO PROVIDE STUDENTS WITH DISABILITIES WITH A 
                        QUALITY HIGHER EDUCATION

SEC. [760.]  730. DEFINITIONS.

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

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

[SEC. 761. PURPOSE.

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

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

  [(a) Competitive Grants, Contracts, and Cooperative 
Agreements Authorized.--
          [(1) In general.--From amounts appropriated under 
        section 765, the Secretary may award grants, contracts, 
        and cooperative agreements, on a competitive basis, to 
        institutions of higher education to enable the 
        institutions to carry out the activities under 
        subsection (b).
          [(2) Awards for professional development and 
        technical assistance.--Not less than two grants, 
        contracts, cooperative agreements, or a combination of 
        such awards shall be awarded to institutions of higher 
        education that provide professional development and 
        technical assistance in order for students with 
        learning disabilities to receive a quality 
        postsecondary education.
  [(b) Duration; Activities.--
          [(1) Duration.--A grant, contract, or cooperative 
        agreement under this subpart shall be awarded for a 
        period of three years.
          [(2) Authorized activities.--A grant, contract, or 
        cooperative agreement awarded under this subpart shall 
        be used to carry out one or more of the following 
        activities:
                  [(A) Teaching methods and strategies.--The 
                development of innovative, effective, and 
                efficient teaching methods and strategies, 
                consistent with the principles of universal 
                design for learning, to provide postsecondary 
                faculty, staff, and administrators with the 
                skills and supports necessary to teach and meet 
                the academic and programmatic needs of students 
                with disabilities, in order to improve the 
                retention of such students in, and the 
                completion by such students of, postsecondary 
                education. Such methods and strategies may 
                include in-service training, professional 
                development, customized and general technical 
                assistance, workshops, summer institutes, 
                distance learning, and training in the use of 
                assistive and educational technology.
                  [(B) Effective transition practices.--The 
                development of innovative and effective 
                teaching methods and strategies to provide 
                postsecondary faculty, staff, and 
                administrators with the skill and supports 
                necessary to ensure the successful and smooth 
                transition of students with disabilities from 
                secondary school to postsecondary education.
                  [(C) Synthesizing research and information.--
                The synthesis of research and other information 
                related to the provision of postsecondary 
                educational services to students with 
                disabilities, including data on the impact of a 
                postsecondary education on subsequent 
                employment of students with disabilities. Such 
                research, information, and data shall be made 
                publicly available and accessible.
                  [(D) Distance learning.--The development of 
                innovative and effective teaching methods and 
                strategies to provide postsecondary faculty, 
                staff, and administrators with the ability to 
                provide accessible distance education programs 
                or classes that would enhance the access of 
                students with disabilities to postsecondary 
                education, including the use of accessible 
                curricula and electronic communication for 
                instruction and advising.
                  [(E) Disability career pathways.--
                          [(i) In general.--The provision of 
                        information, training, and technical 
                        assistance to secondary and 
                        postsecondary faculty, staff, and 
                        administrators with respect to 
                        disability-related fields that would 
                        enable such faculty, staff, and 
                        administrators to--
                                  [(I) encourage interest and 
                                participation in such fields, 
                                among students with 
                                disabilities and other 
                                students;
                                  [(II) enhance awareness and 
                                understanding of such fields 
                                among students with 
                                disabilities and other 
                                students;
                                  [(III) provide educational 
                                opportunities in such fields 
                                for students with disabilities 
                                and other students;
                                  [(IV) teach practical skills 
                                related to such fields to 
                                students with disabilities and 
                                other students; and
                                  [(V) offer work-based 
                                opportunities in such fields to 
                                students with disabilities and 
                                other students.
                          [(ii) Development.--The training and 
                        support described in subclauses (I) 
                        through (V) of clause (i) may include 
                        offering students--
                                  [(I) credit-bearing 
                                postsecondary-level coursework; 
                                and
                                  [(II) career and educational 
                                counseling.
                  [(F) Professional development and training 
                sessions.--The conduct of professional 
                development and training sessions for 
                postsecondary faculty, staff, and 
                administrators from other institutions of 
                higher education to enable such individuals to 
                meet the educational needs of students with 
                disabilities.
                  [(G) Accessibility of education.--Making 
                postsecondary education more accessible to 
                students with disabilities through curriculum 
                development, consistent with the principles of 
                universal design for learning.
          [(3) Mandatory evaluation and dissemination.--An 
        institution of higher education awarded a grant, 
        contract, or cooperative agreement under this subpart 
        shall evaluate and disseminate to other institutions of 
        higher education, the information obtained through the 
        activities described in subparagraphs (A) through (G) 
        of paragraph (2).
  [(c) Considerations in Making Awards.--In awarding grants, 
contracts, or cooperative agreements under this subpart, the 
Secretary shall consider the following:
          [(1) Geographic distribution.--Providing an equitable 
        geographic distribution of such awards.
          [(2) Rural and urban areas.--Distributing such awards 
        to urban and rural areas.
          [(3) Range and type of institution.--Ensuring that 
        the activities to be assisted are developed for a range 
        of types and sizes of institutions of higher education.
          [(4) Prior experience or exceptional programs.--
        Distributing the awards to institutions of higher 
        education with demonstrated prior experience in, or 
        exceptional programs for, meeting the postsecondary 
        educational needs of students with disabilities.
  [(d) Reports.--
          [(1) Initial report.--Not later than one year after 
        the date of enactment of the Higher Education 
        Opportunity Act, the Secretary shall prepare and submit 
        to the authorizing committees, and make available to 
        the public, a report on all demonstration projects 
        awarded grants under this part for any of fiscal years 
        1999 through 2008, including a review of the activities 
        and program performance of such demonstration projects 
        based on existing information as of the date of the 
        report.
          [(2) Subsequent report.--Not later than three years 
        after the date of the first award of a grant under this 
        subpart after the date of enactment of the Higher 
        Education Opportunity Act, the Secretary shall prepare 
        and submit to the authorizing committees, and make 
        available to the public, a report that--
                  [(A) reviews the activities and program 
                performance of the demonstration projects 
                authorized under this subpart; and
                  [(B) provides guidance and recommendations on 
                how effective projects can be replicated.

[SEC. 763. APPLICATIONS.

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

[SEC. 764. RULE OF CONSTRUCTION.

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

[SEC. 765. AUTHORIZATION OF APPROPRIATIONS.

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

   Subpart [2] 1--Transition Programs for Students with Intellectual 
                   Disabilities Into Higher Education

SEC. [766.]  731. PURPOSE.

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

SEC. [767.]  732. MODEL COMPREHENSIVE TRANSITION AND POSTSECONDARY 
                    PROGRAMS FOR STUDENTS WITH INTELLECTUAL 
                    DISABILITIES.

  (a) Grants Authorized.--
          (1) In general.--From amounts appropriated under 
        [section 769(a)] section 736(a), the Secretary shall 
        annually award grants, on a competitive basis, to 
        [institutions of higher education (or consortia of 
        institutions of higher education), to enable the 
        institutions or consortia] eligible applicants, to 
        enable the eligible applicants to create or expand high 
        quality, inclusive model comprehensive transition and 
        postsecondary programs for students with intellectual 
        disabilities.
          (2) Administration.--The program under this section 
        shall be administered by the office in the Department 
        that administers other postsecondary education 
        programs.
          (3) Duration of grants.--A grant under this section 
        shall be awarded for a period of 5 years.
  [(b) Application.--An institution of higher education (or a 
consortium) desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.]
  (b) Application.--An eligible applicant desiring a grant 
under this section shall submit to the Secretary, at such time 
and in such manner as the Secretary may require, an application 
that--
          (1) describes how the model program to be operated by 
        the eligible applicant with grant funds received under 
        this section will meet the requirements of subsection 
        (d);
          (2) describes how the model program proposed to be 
        operated is based on the demonstrated needs of students 
        with intellectual disabilities served by the eligible 
        applicant and potential employers;
          (3) describes how the model program proposed to be 
        operated will coordinate with other Federal, State, and 
        local programs serving students with intellectual 
        disabilities, including programs funded under the 
        Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.);
          (4) describes how the model program will be sustained 
        once the grant received under this section ends;
          (5) if applicable, describes how the eligible 
        applicant will meet the preferences described in 
        subsection (c)(3); and
          (6) demonstrates the ability of the eligible 
        applicant to meet the requirement under subsection (e).
  (c) Award Basis.--In awarding grants under this section, the 
Secretary shall--
          (1) provide for an equitable geographic distribution 
        of such grants;
          (2) provide grant funds for model comprehensive 
        transition and postsecondary programs for students with 
        intellectual disabilities that will serve areas that 
        are underserved by programs of this type; and
          (3) give preference to applications submitted under 
        subsection (b) that agree to incorporate into the model 
        comprehensive transition and postsecondary program for 
        students with intellectual disabilities carried out 
        under the grant one or more of the following elements:
                  (A) The formation of a partnership with any 
                relevant agency serving students with 
                intellectual disabilities, such as a vocational 
                rehabilitation agency.
                  (B) In the case of an [institution of higher 
                education] eligible applicant that provides 
                institutionally owned or operated housing for 
                students attending the institution, the 
                integration of students with intellectual 
                disabilities into the housing offered to 
                nondisabled students.
                  (C) The involvement of [students attending 
                the institution of higher education] the 
                eligible applicant's students who are studying 
                special education, general education, 
                vocational rehabilitation, assistive 
                technology, or related fields in the model 
                program.
  (d) Use of Funds.--[An institution of higher education (or 
consortium)] An eligible applicant receiving a grant under this 
section shall use the grant funds to establish a model 
comprehensive transition and postsecondary program for students 
with intellectual disabilities that--
          (1) serves students with intellectual disabilities;
          (2) provides individual supports and services for the 
        academic and social inclusion of students with 
        intellectual disabilities in academic courses, 
        extracurricular activities, and other aspects of the 
        [institution of higher education's] eligible 
        applicant's regular postsecondary program;
          (3) with respect to the students with intellectual 
        disabilities participating in the model program, 
        provides a focus on--
                  (A) academic enrichment;
                  (B) socialization;
                  (C) independent living skills, including 
                self-advocacy skills; and
                  (D) integrated work experiences and career 
                skills [that lead to gainful employment];
          (4) integrates person-centered planning in the 
        development of the course of study for each student 
        with an intellectual disability participating in the 
        model program;
          (5) participates with the coordinating center 
        established under [section 777(b)] section 734 in the 
        evaluation of the model program;
          (6) partners with one or more local educational 
        agencies to support students with intellectual 
        disabilities participating in the model program who are 
        still eligible for special education and related 
        services under the Individuals with Disabilities 
        Education Act, including the use of funds available 
        under part B of such Act to support the participation 
        of such students in the model program; and
          [(7) plans for the sustainability of the model 
        program after the end of the grant period; and]
          [(8)] (7) creates and offers a meaningful credential 
        for students with intellectual disabilities upon the 
        completion of the model program.
  (e) Matching Requirement.--[An institution of higher 
education (or consortium)] An eligible applicant that receives 
a grant under this section shall provide matching funds toward 
the cost of the model comprehensive transition and 
postsecondary program for students with intellectual 
disabilities carried out under the grant. Such matching funds 
may be provided in cash or in-kind, and shall be in an amount 
of not less than 25 percent of the amount of such costs.
  (f) Report.--[Not later than five years after the date of the 
first grant awarded under this section] Not less often than 
once every 5 years, the Secretary shall prepare and disseminate 
a report to the authorizing committees and to the public that--
          (1) reviews the activities of the model comprehensive 
        transition and postsecondary programs for students with 
        intellectual disabilities funded under this section; 
        and
          (2) provides guidance and recommendations on how 
        effective model programs can be replicated.
  (g) Definition.--For purposes of this subpart, the term 
``eligible applicant'' means an institution of higher education 
or a consortium of institutions of higher education.

SEC. [768.]  733. RULE OF CONSTRUCTION.

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

SEC. 734. COORDINATING CENTER.

  (a) Purpose.--It is the purpose of this section to provide 
technical assistance and information on best and promising 
practices to eligible applicants awarded grants under section 
732.
  (b) Coordinating center.--
          (1) Definition of eligible entity.--In this section, 
        the term ``eligible entity'' means an entity, or a 
        partnership of entities, that has demonstrated 
        expertise in the fields of--
                  (A) higher education;
                  (B) the education of students with 
                intellectual disabilities;
                  (C) the development of comprehensive 
                transition and postsecondary programs for 
                students with intellectual disabilities; and
                  (D) evaluation and technical assistance.
          (2) In general.--From amounts appropriated under 
        section 736, the Secretary shall enter into a 
        cooperative agreement, on a competitive basis, with an 
        eligible entity for the purpose of establishing a 
        coordinating center for institutions of higher 
        education that offer inclusive comprehensive transition 
        and postsecondary programs for students with 
        intellectual disabilities, including eligible 
        applicants receiving grants under section 732, to 
        provide--
                  (A) recommendations related to the 
                development of standards for such programs;
                  (B) technical assistance for such programs; 
                and
                  (C) evaluations for such programs.
          (3) Administration.--The program under this section 
        shall be administered by the office in the Department 
        that administers other postsecondary education 
        programs.
          (4) Duration.--A cooperative agreement entered into 
        pursuant to this section shall have a term of 5 years.
          (5) Requirements of cooperative agreement.--The 
        cooperative agreement entered into pursuant to this 
        section shall provide that the eligible entity entering 
        into such agreement shall establish and maintain a 
        coordinating center that shall--
                  (A) serve as the technical assistance entity 
                for all comprehensive transition and 
                postsecondary programs for students with 
                intellectual disabilities;
                  (B) provide technical assistance regarding 
                the development, evaluation, and continuous 
                improvement of such programs;
                  (C) develop an evaluation protocol for such 
                programs that includes qualitative and 
                quantitative methodologies for measuring 
                student outcomes and program strengths in the 
                areas of academic enrichment, socialization, 
                independent living, and competitive or 
                supported employment;
                  (D) assist recipients of grants under section 
                732 in efforts to award a meaningful credential 
                to students with intellectual disabilities upon 
                the completion of such programs, which 
                credential shall take into consideration unique 
                State factors;
                  (E) develop recommendations for the necessary 
                components of such programs, such as--
                          (i) academic, vocational, social, and 
                        independent living skills;
                          (ii) evaluation of student progress;
                          (iii) program administration and 
                        evaluation;
                          (iv) student eligibility; and
                          (v) issues regarding the equivalency 
                        of a student's participation in such 
                        programs to semester, trimester, 
                        quarter, credit, or clock hours at an 
                        institution of higher education, as the 
                        case may be;
                  (F) analyze possible funding sources for such 
                programs and provide recommendations to such 
                programs regarding potential funding sources;
                  (G) develop model memoranda of agreement for 
                use between or among institutions of higher 
                education and State and local agencies 
                providing funding for such programs;
                  (H) develop mechanisms for regular 
                communication, outreach, and dissemination of 
                information about comprehensive transition and 
                postsecondary programs for students with 
                intellectual disabilities under section 732 
                between or among such programs and to families 
                and prospective students;
                  (I) host a meeting of all recipients of 
                grants under section 732 not less often than 
                once every 3 years; and
                  (J) convene a workgroup to develop and 
                recommend model criteria, standards, and 
                components of such programs as described in 
                subparagraph (E) that are appropriate for the 
                development of accreditation standards, which 
                workgroup shall include--
                          (i) an expert in higher education;
                          (ii) an expert in special education;
                          (iii) a representative of a 
                        disability organization that represents 
                        students with intellectual 
                        disabilities;
                          (iv) a representative from the 
                        National Advisory Committee on 
                        Institutional Quality and Integrity; 
                        and
                          (v) a representative of a regional or 
                        national accreditation agency or 
                        association.
          (6) Report.--Not less often than once every 5 years, 
        the coordinating center shall report to the Secretary, 
        the authorizing committees, and the National Advisory 
        Committee on Institutional Quality and Integrity on the 
        recommendations of the workgroup described in paragraph 
        (5)(J).

SEC. 735. ACCESSIBLE INSTRUCTIONAL MATERIALS IN HIGHER EDUCATION.

  (a) Commission structure.--
          (1) Establishment of commission.--
                  (A) In general.--The Speaker of the House of 
                Representatives, the President pro tempore of 
                the Senate, and the Secretary of Education 
                shall establish an independent commission, 
                comprised of key stakeholders, to develop 
                voluntary guidelines for accessible 
                postsecondary electronic instructional 
                materials and related technologies in order--
                          (i) to ensure students with 
                        disabilities are afforded the same 
                        educational benefits provided to 
                        nondisabled students through the use of 
                        electronic instructional materials and 
                        related technologies;
                          (ii) to inform better the selection 
                        and use of such materials and 
                        technologies at institutions of higher 
                        education; and
                          (iii) to encourage entities that 
                        produce such materials and technologies 
                        to make accessible versions more 
                        readily available in the market.
                In fulfilling this duty, the commission shall 
                review applicable national and international 
                information technology accessibility standards, 
                which it will compile and annotate as an 
                additional information resource for 
                institutions of higher education and companies 
                that service the higher education market.
                  (B) Membership.--
                          (i) Stakeholder groups.--The 
                        commission shall be composed of 
                        representatives from the following 
                        categories:
                                  (I) Disability.--Communities 
                                of persons with disabilities 
                                for whom the accessibility of 
                                postsecondary electronic 
                                instructional materials and 
                                related technologies is a 
                                significant factor in ensuring 
                                equal participation in higher 
                                education, and nonprofit 
                                organizations that provide 
                                accessible electronic materials 
                                to these communities.
                                  (II) Higher education.--
                                Higher education leadership, 
                                which includes: university 
                                presidents, provosts, deans, 
                                vice presidents, deans of 
                                libraries, chief information 
                                officers, and other senior 
                                institutional executives.
                                  (III) Industry.--Relevant 
                                industry representatives, 
                                meaning--
                                          (aa) developers of 
                                        postsecondary 
                                        electronic 
                                        instructional 
                                        materials; and
                                          (bb) manufacturers of 
                                        related technologies.
                          (ii) Appointment of members.--The 
                        commission members shall be appointed 
                        as follows:
                                  (I) Six members, 2 from each 
                                category described in clause 
                                (i), shall be appointed by the 
                                Speaker of the House of 
                                Representatives, 3 of whom 
                                shall be appointed on the 
                                recommendation of the majority 
                                leader of the House of 
                                Representatives and 3 of whom 
                                shall be appointed on the 
                                recommendation of the minority 
                                leader of the House of 
                                Representatives, with the 
                                Speaker ensuring that 1 
                                developer of postsecondary 
                                electronic instructional 
                                materials and 1 manufacturer of 
                                related technologies are 
                                appointed. The Speaker shall 
                                also appoint 2 additional 
                                members, 1 student with a 
                                disability and 1 faculty member 
                                from an institution of higher 
                                education.
                                  (II) Six members, 2 from each 
                                category described in clause 
                                (i), shall be appointed by the 
                                President pro tempore of the 
                                Senate, 3 of whom shall be 
                                appointed on the recommendation 
                                of the majority leader of the 
                                Senate and 3 of whom shall be 
                                appointed on the recommendation 
                                of the minority leader of the 
                                Senate, with the President pro 
                                tempore ensuring that 1 
                                developer of postsecondary 
                                electronic instructional 
                                materials and 1 manufacturer of 
                                related technologies are 
                                appointed. The President pro 
                                tempore shall also appoint 2 
                                additional members, 1 student 
                                with a disability and 1 faculty 
                                member from an institution of 
                                higher education.
                                  (III) Three members, each of 
                                whom must possess extensive, 
                                demonstrated technical 
                                expertise in the development 
                                and implementation of 
                                accessible postsecondary 
                                electronic instructional 
                                materials, shall be appointed 
                                by the Secretary of Education. 
                                One of these members shall 
                                represent postsecondary 
                                students with disabilities, 1 
                                shall represent higher 
                                education leadership, and 1 
                                shall represent developers of 
                                postsecondary electronic 
                                instructional materials.
                          (iii) Eligibility to serve on the 
                        commission.--Federal employees are 
                        ineligible for appointment to the 
                        commission. An appointee to a volunteer 
                        or advisory position with a Federal 
                        agency or related advisory body may be 
                        appointed to the commission so long as 
                        his or her primary employment is with a 
                        non-Federal entity and he or she is not 
                        otherwise engaged in financially 
                        compensated work on behalf of the 
                        Federal Government, exclusive of any 
                        standard expense reimbursement or 
                        grant-funded activities.
          (2) Authority and administration.--
                  (A) Authority.--The commission's execution of 
                its duties shall be independent of the 
                Secretary of Education, the Attorney General, 
                and the head of any other agency or department 
                of the Federal Government with regulatory or 
                standard setting authority in the areas 
                addressed by the commission.
                  (B) Administration.--
                          (i) Staffing.--There shall be no 
                        permanent staffing for the commission.
                          (ii) Leadership.--Commission members 
                        shall elect a chairperson from among 
                        the 19 appointees to the commission.
                          (iii) Administrative support.--The 
                        Commission shall be provided 
                        administrative support, as needed, by 
                        the Secretary of Education through the 
                        Office of Postsecondary Education of 
                        the Department of Education.
                  (C) Termination.--The Commission shall 
                terminate on the day after the date on which 
                the Commission issues the voluntary guidelines 
                and annotated list of information technology 
                standards described in subsection (b), or two 
                years from the date of enactment of the PROSPER 
                Act, whichever comes first.
  (b) Duties of the commission.--
          (1) Produce voluntary guidelines.--Not later than 18 
        months after the date of enactment of the PROSPER Act, 
        subject to a 6-month extension that it may exercise at 
        its discretion, the commission established in 
        subsection (a) shall--
                  (A) develop and issue voluntary guidelines 
                for accessible postsecondary electronic 
                instructional materials and related 
                technologies; and
                  (B) in developing the voluntary guidelines, 
                the commission shall--
                          (i) establish a technical panel 
                        pursuant to paragraph (4) to support 
                        the commission in developing the 
                        voluntary guidelines;
                          (ii) develop criteria for determining 
                        which materials and technologies 
                        constitute ``postsecondary electronic 
                        instructional materials'' and ``related 
                        technologies'' as defined in 
                        subparagraphs (D) and (E) of subsection 
                        (f);
                          (iii) identify existing national and 
                        international accessibility standards 
                        that are relevant to student use of 
                        postsecondary electronic instructional 
                        materials and related technologies at 
                        institutions of higher education;
                          (iv) identify and address any unique 
                        pedagogical and accessibility 
                        requirements of postsecondary 
                        electronic instructional materials and 
                        related technologies that are not 
                        addressed, or not adequately addressed, 
                        by the identified, relevant existing 
                        accessibility standards;
                          (v) identify those aspects of 
                        accessibility, and types of 
                        postsecondary instructional materials 
                        and related technologies, for which the 
                        commission cannot produce guidelines or 
                        which cannot be addressed by existing 
                        accessibility standards due to--
                                  (I) inherent limitations of 
                                commercially available 
                                technologies; or
                                  (II) the challenges posed by 
                                a specific category of 
                                disability that covers a wide 
                                spectrum of impairments and 
                                capabilities which makes it 
                                difficult to assess the 
                                benefits from particular 
                                guidelines on a categorical 
                                basis;
                          (vi) ensure that the voluntary 
                        guidelines are consistent with the 
                        requirements of section 504 of the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        794) and titles II and III of the 
                        Americans with Disabilities Act (42 
                        U.S.C. 12131 et seq.; 42 U.S.C. 12181 
                        et seq.);
                          (vii) ensure that the voluntary 
                        guidelines are consistent, to the 
                        extent feasible and appropriate, with 
                        the technical and functional 
                        performance criteria included in the 
                        national and international 
                        accessibility standards identified by 
                        the commission as relevant to student 
                        use of postsecondary electronic 
                        instructional materials and related 
                        technologies;
                          (viii) allow for the use of an 
                        alternative design or technology that 
                        results in substantially equivalent or 
                        greater accessibility and usability by 
                        individuals with disabilities than 
                        would be provided by compliance with 
                        the voluntary guidelines; and
                          (ix) provide that where electronic 
                        instructional materials or related 
                        technologies that comply fully with the 
                        voluntary guidelines are not 
                        commercially available, or where such 
                        compliance is not technically feasible, 
                        the institution may select the product 
                        that best meets the voluntary 
                        guidelines consistent with the 
                        institution's business and pedagogical 
                        needs.
          (2) Produce annotated list of information technology 
        standards.--Not later than 18 months after the date of 
        the enactment of the PROSPER Act, subject to a 6-month 
        extension that it may exercise at its discretion, the 
        commission established in subsection (a) shall, with 
        the assistance of the technical panel established under 
        paragraph (4), develop and issue an annotated list of 
        information technology standards.
          (3) Supermajority approval.--Issuance of the 
        voluntary guidelines and annotated list of information 
        technology standards shall require approval of at least 
        75 percent (at least 15) of the 19 members of the 
        commission.
          (4) Establishment of technical panel.--Not later than 
        1 month after the Commission's first meeting, it shall 
        appoint and convene a panel of 12 technical experts, 
        each of whom shall have extensive, demonstrated 
        technical experience in developing, researching, or 
        implementing accessible postsecondary electronic 
        instructional materials or related technologies. The 
        commission has discretion to determine a process for 
        nominating, vetting, and confirming a panel of experts 
        that fairly represents the stakeholder communities on 
        the commission. The technical panel shall include a 
        representative from the United States Access Board.
  (c) Periodic review and revision of voluntary guidelines.--
Not later than 5 years after issuance of the voluntary 
guidelines and annotated list of information technology 
standards described in paragraphs (1) and (2) of section (b), 
and every 5 years thereafter, the Secretary of Education shall 
publish a notice in the Federal Register requesting public 
comment about whether there is a need to reconstitute the 
commission to update the voluntary guidelines and annotated 
list of information technology standards to reflect 
technological advances, changes in postsecondary electronic 
instructional materials and related technologies, or updated 
national and international accessibility standards. The 
Secretary shall submit a report to Congress summarizing the 
public comments and presenting the Secretary's decision on 
whether to reconstitute the commission based on those comments. 
If the Secretary decides to reconstitute the commission, the 
Secretary may implement that decision 30 days after the date on 
which the report was submitted to Congress. That process shall 
begin with the Secretary requesting the appointment of 
commission members as detailed in subsection (a)(1)(B)(ii). If 
the Secretary reconstitutes the Commission, the Commission 
shall terminate on the day after the date on which the 
Commission issues updated voluntary guidelines and annotated 
list of information technology standards, or two years from the 
date on which the Secretary reconstitutes the Commission, 
whichever comes first.
  (d) Safe harbor protections.--The following defenses from 
liability may be asserted with respect to claims regarding the 
use of postsecondary instructional materials and related 
technologies arising under section 504 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794) and titles II and III of the 
Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et 
seq. and 12181 et seq.), subject to the judicial review 
afforded under those Acts and without limiting any other 
defenses provided under those Acts:
          (1) Safe harbor for conforming postsecondary 
        electronic instructional materials and related 
        technologies.--An institution of higher education that 
        requires, provides, or both recommends and provides, 
        postsecondary electronic instructional materials or 
        related technologies that conform to the voluntary 
        guidelines shall be deemed in compliance with, and 
        qualify for a safe harbor from liability in relation 
        to, its obligations under section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794) and titles 
        II and III of the Americans with Disabilities Act (42 
        U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) with 
        respect to its selection of such materials or 
        technologies.
          (2) Limited safe harbor for nonconforming 
        postsecondary electronic instructional materials or 
        related technologies.--An institution of higher 
        education that requires, provides, or both recommends 
        and provides, postsecondary electronic instructional 
        materials or related technologies that do not fully 
        conform with the voluntary guidelines, but which 
        institution otherwise complies with all requirements 
        set forth in subparagraphs (A), (B), and (C), will 
        qualify for a limited safe harbor from monetary damages 
        under section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794) and titles II and III of the Americans with 
        Disabilities Act (42 U.S.C. 12131 et seq.; 42 U.S.C. 
        12181 et seq.), with available remedies under section 
        505 of the Rehabilitation Act of 1973 (29 U.S.C. 794a), 
        section 103 of the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12133), and section 308 of such Act (42 
        U.S.C. 12188) limited to declaratory and injunctive 
        relief, and for a prevailing party other than the 
        United States, a reasonable attorney's fee, if the 
        institution--
                  (A) documented its efforts to incorporate and 
                use the voluntary guidelines in its policies 
                and practices regarding its selection or 
                procurement of postsecondary electronic 
                instructional materials and related 
                technologies. These efforts may include 
                establishment of a written policy regarding the 
                institution's use of the voluntary guidelines, 
                identifying the official(s) authorized to 
                approve the selection of nonconforming 
                postsecondary electronic instructional 
                materials or related technologies, and 
                procedures used by the official(s) when making 
                such authorizations;
                  (B) documented instances where nonconforming 
                postsecondary electronic instructional 
                materials or related technologies are selected 
                or procured, including an explanation of--
                          (i) the process utilized for 
                        identifying accessible options in the 
                        marketplace;
                          (ii) the options considered, if any 
                        are available;
                          (iii) the choice the institution 
                        ultimately made and why;
                          (iv) what auxiliary aid or service, 
                        reasonable modification, or other 
                        method the institution will utilize to 
                        ensure that affected students within 
                        categories of disability are afforded 
                        the rights to which they are entitled 
                        under section 504 of the Rehabilitation 
                        Act of 1973 (29 U.S.C. 794) and titles 
                        II and III of the Americans with 
                        Disabilities Act (42 U.S.C. 12131 et 
                        seq.; 42 U.S.C. 12181 et seq.), 
                        including an equally effective 
                        opportunity to receive the same 
                        educational benefit as afforded to 
                        nondisabled students; and
                          (v) where a student or students with 
                        disabilities are affected by 
                        nonconforming instructional materials 
                        or related technologies, what auxiliary 
                        aid or service, reasonable 
                        modification, or other method the 
                        institution is using to ensure the 
                        student or students are afforded the 
                        rights described in clause (iv); and
                  (C) posted a link to an accessible copy of 
                the voluntary guidelines and annotated list of 
                information technology standards on a publicly 
                available page of its website.
  (e) Construction.--
          (1) Nonconforming postsecondary electronic 
        instructional materials or related technologies.--
        Nothing in this section shall be construed to require 
        an institution of higher education to require, provide, 
        or both recommend and provide, postsecondary electronic 
        instructional materials or related technologies that 
        conform to the voluntary guidelines. However, an 
        institution that selects or uses nonconforming 
        postsecondary electronic instructional materials or 
        related technologies must otherwise comply with 
        existing obligations under section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794) and titles 
        II and III of the Americans with Disabilities Act (42 
        U.S.C. 12131 et seq.; 42 U.S.C. 12181 et seq.) to 
        provide access to the educational benefit afforded by 
        such materials and technologies through provision of 
        appropriate and reasonable modification, accommodation, 
        and auxiliary aids or services.
          (2) Relationship to existing laws and regulations.--
        With respect to the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) and the Rehabilitation 
        Act of 1973 (29 U.S.C. 701 et seq.), except as provided 
        in subsection (d), nothing in this section may be 
        construed--
                  (A) to authorize or require conduct 
                prohibited under the Americans with 
                Disabilities Act of 1990 and the Rehabilitation 
                Act of 1973, including the regulations issued 
                pursuant to those laws;
                  (B) to expand, limit, or alter the remedies 
                or defenses under the Americans with 
                Disabilities Act of 1990 and the Rehabilitation 
                Act of 1973;
                  (C) to supersede, restrict, or limit the 
                application of the Americans with Disabilities 
                Act of 1990 and the Rehabilitation Act of 1973; 
                or
                  (D) to limit the authority of Federal 
                agencies to issue regulations pursuant to the 
                Americans with Disabilities Act of 1990 and the 
                Rehabilitation Act of 1973.
          (3) Voluntary nature of the products of the 
        commission.--
                  (A) Voluntary guidelines.--It is the intent 
                of the Congress that use of the voluntary 
                guidelines developed pursuant to this section 
                is and should remain voluntary. The voluntary 
                guidelines shall not confer any rights or 
                impose any obligations on commission 
                participants, institutions of higher education, 
                or other persons, except for the legal 
                protections set forth in subsection (d). Thus, 
                no department or agency of the Federal 
                Government may incorporate the voluntary 
                guidelines, whether produced as a discrete 
                document or electronic resource, into 
                regulations promulgated under the 
                Rehabilitation Act, the Americans with 
                Disabilities Act, or any other Federal law or 
                instrument. This restriction applies only to 
                the voluntary guidelines as a discrete document 
                or resource; it imposes no limitation on 
                Federal use of standards or resources to which 
                the voluntary guidelines may refer.
                  (B) Annotated list.--It is the intent of 
                Congress that use of the annotated list of 
                information technology standards developed 
                pursuant to this section is and should remain 
                voluntary. The Annotated List shall not confer 
                any rights or impose any obligations on 
                Commission participants, institutions of higher 
                education, or other persons. Thus, no 
                department or agency of the Federal Government 
                may incorporate the Annotated List, whether 
                produced as a discrete document or electronic 
                resource into regulations promulgated under the 
                Rehabilitation Act, the Americans with 
                Disabilities Act, or any other Federal law or 
                instrument. This provision applies only to the 
                Annotated List as a discrete document or 
                resource; it imposes no limitation on Federal 
                use of standards or resources to which the 
                Annotated List may refer.
  (f) Definitions.--In this section, the following definitions 
apply:
          (1) Annotated list of information technology 
        standards.--The term ``annotated list of information 
        technology standards'' means a list of existing 
        national and international accessibility standards 
        relevant to student use of postsecondary electronic 
        instructional materials and related technologies, and 
        to other types of information technology common to 
        institutions of higher education (such as institutional 
        websites and class registration systems), annotated by 
        the commission established pursuant to subsection (a) 
        to provide information about the applicability of such 
        standards in higher education settings. The annotated 
        list of information technology standards is intended to 
        serve solely as a reference tool to inform any 
        consideration of the relevance of such standards in 
        higher education contexts.
          (2) Disability.--The term ``disability'' has the 
        meaning given such term in section 3 of the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12102).
          (3) Nonconforming postsecondary electronic 
        instructional materials or related technologies.--The 
        term ``nonconforming materials or related 
        technologies'' means postsecondary electronic 
        instructional materials or related technologies that do 
        not conform to the voluntary guidelines to be developed 
        pursuant to this subpart.
          (4) Postsecondary electronic instructional 
        materials.--The term ``postsecondary electronic 
        instructional materials'' means digital curricular 
        content that is required, provided, or both recommended 
        and provided by an institution of higher education for 
        use in a postsecondary instructional program.
          (5) Related technologies.--The term ``related 
        technologies'' refers to any software, applications, 
        learning management or content management systems, and 
        hardware that an institution of higher education 
        requires, provides, or both recommends and provides for 
        student access to and use of postsecondary electronic 
        instructional materials in a postsecondary 
        instructional program.
          (6) Technical panel.--The term ``technical panel'' 
        means a group of experts with extensive, demonstrated 
        technical experience in the development and 
        implementation of accessibility features for 
        postsecondary electronic instructional materials and 
        related technologies, established by the Commission 
        pursuant to subsection (b)(4), which will assist the 
        commission in the development of the voluntary 
        guidelines and annotated list of information technology 
        standards authorized under this subpart.
          (7) Voluntary guidelines.--The term ``voluntary 
        guidelines'' means a set of technical and functional 
        performance criteria to be developed by the commission 
        established pursuant to subsection (a) that provide 
        specific guidance regarding both the accessibility and 
        pedagogical functionality of postsecondary electronic 
        instructional materials and related technologies not 
        addressed, or not adequately addressed, by existing 
        accessibility standards.

SEC. [769.]  736. AUTHORIZATION OF APPROPRIATIONS AND RESERVATION.

  (a) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this subpart [such sums as may be 
necessary for fiscal year 2009] $11,800,000 for fiscal year 
2019 and each of the five succeeding fiscal years.
  [(b) Reservation of Funds.--For any fiscal year for which 
appropriations are made for this subpart, the Secretary shall 
reserve funds to enter into a cooperative agreement to 
establish the coordinating center under section 777(b), in an 
amount that is--
          [(1) not less than $240,000 for any year in which the 
        amount appropriated to carry out this subpart is 
        $8,000,000 or less; or
          [(2) equal to 3 percent of the amount appropriated to 
        carry out this subpart for any year in which such 
        amount appropriated is greater than $8,000,000.]
  (b) Reservation of Funds.--For any fiscal year for which 
appropriations are made for this subpart, the Secretary--
          (1) shall reserve funds to enter into a cooperative 
        agreement to establish the coordinating center under 
        section 734, in an amount that is equal to--
                  (A) not less than $240,000 for any year in 
                which the amount appropriated to carry out this 
                subpart is $8,000,000 or less; or
                  (B) equal to 3 percent of the amount 
                appropriated to carry out this subpart for any 
                year in which such amount appropriated is 
                greater than $8,000,000; and
          (2) may reserve funds to award the grant, contract, 
        or cooperative agreement described in section 742.

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

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

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

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

  [(a) Establishment.--
          [(1) In general.--The Secretary shall establish a 
        commission to be known as the Advisory Commission on 
        Accessible Instructional Materials in Postsecondary 
        Education for Students with Disabilities (in this 
        section referred to as the ``Commission'').
          [(2) Membership.--
                  [(A) Total number of members.--The Commission 
                shall include not more than 19 members, who 
                shall be appointed by the Secretary in 
                accordance with subparagraphs (B) and (C).
                  [(B) Members of the commission.--The 
                Commission members shall include one 
                representative from each of the following 
                categories:
                          [(i) The Office of Postsecondary 
                        Education of the Department.
                          [(ii) The Office of Special Education 
                        and Rehabilitative Services of the 
                        Department.
                          [(iii) The Office for Civil Rights of 
                        the Department.
                          [(iv) The Library of Congress 
                        National Digital Information and 
                        Infrastructure Preservation Program 
                        Copyright Working Group.
                          [(v) The Association on Higher 
                        Education and Disability.
                          [(vi) The Association of American 
                        Publishers.
                          [(vii) The Association of American 
                        University Presses.
                          [(viii) The National Council on 
                        Disability.
                          [(ix) Recording for the Blind and 
                        Dyslexic.
                          [(x) National organizations 
                        representing individuals with visual 
                        impairments.
                          [(xi) National organizations 
                        representing individuals with learning 
                        disabilities.
                  [(C) Additional members of the commission.--
                The Commission members shall include two 
                representatives from each of the following 
                categories:
                          [(i) Staff from institutions of 
                        higher education with demonstrated 
                        experience teaching or supporting 
                        students with print disabilities, 
                        including representatives from both 
                        two-year and four-year institutions of 
                        higher education of different sizes.
                          [(ii) Producers of accessible 
                        materials, publishing software, and 
                        supporting technologies in specialized 
                        formats, such as Braille, audio or 
                        synthesized speech, and digital media.
                          [(iii) Individuals with visual 
                        impairments, including not less than 
                        one currently enrolled postsecondary 
                        student.
                          [(iv) Individuals with dyslexia or 
                        other learning disabilities related to 
                        reading, including not less than one 
                        currently enrolled postsecondary 
                        student.
                  [(D) Timing.--The Secretary shall appoint the 
                members of the Commission not later than 60 
                days after the Commission is established under 
                paragraph (1).
          [(3) Chairperson and vice chairperson.--The 
        Commission shall select a chairperson and vice 
        chairperson from among the members of the Commission.
          [(4) Meetings.--
                  [(A) In general.--The Commission shall meet 
                at the call of the Chairperson.
                  [(B) First meeting.--Not later than 60 days 
                after the appointment of the members of the 
                Commission under paragraph (2)(D), the 
                Commission shall hold the Commission's first 
                meeting.
          [(5) Quorum.--A majority of the members of the 
        Commission shall constitute a quorum, but a lesser 
        number of members may hold hearings.
  [(b) Duties of the Commission.--
          [(1) Study.--
                  [(A) In general.--The Commission shall 
                conduct a comprehensive study to--
                          [(i) assess the barriers and systemic 
                        issues that may affect, and technical 
                        solutions available that may improve, 
                        the timely delivery and quality of 
                        accessible instructional materials for 
                        postsecondary students with print 
                        disabilities, as well as the effective 
                        use of such materials by faculty and 
                        staff; and
                          [(ii) make recommendations related to 
                        the development of a comprehensive 
                        approach to improve the opportunities 
                        for postsecondary students with print 
                        disabilities to access instructional 
                        materials in specialized formats in a 
                        timeframe comparable to the 
                        availability of instructional materials 
                        for postsecondary nondisabled students.
                  [(B) Existing information.--To the extent 
                practicable, in carrying out the study under 
                this paragraph, the Commission shall identify 
                and use existing research, recommendations, and 
                information.
                  [(C) Recommendations.--
                          [(i) In general.--The Commission 
                        shall develop recommendations--
                                  [(I) to inform Federal 
                                regulations and legislation;
                                  [(II) to support the model 
                                demonstration programs 
                                authorized under section 773;
                                  [(III) to identify best 
                                practices in systems for 
                                collecting, maintaining, 
                                processing, and disseminating 
                                materials in specialized 
                                formats to students with print 
                                disabilities at costs 
                                comparable to instructional 
                                materials for postsecondary 
                                nondisabled students;
                                  [(IV) to improve the 
                                effective use of such materials 
                                by faculty and staff, while 
                                complying with applicable 
                                copyright law; and
                                  [(V) to modify the 
                                definitions of instructional 
                                materials, authorized entities, 
                                and eligible students, as such 
                                terms are used in applicable 
                                Federal law, for the purpose of 
                                improving services to students 
                                with disabilities.
                          [(ii) Considerations.--In developing 
                        the recommendations under clause (i), 
                        the Commission shall consider--
                                  [(I) how students with print 
                                disabilities may obtain 
                                instructional materials in 
                                accessible formats--
                                          [(aa) within a 
                                        timeframe comparable to 
                                        the availability of 
                                        instructional materials 
                                        for nondisabled 
                                        students; and
                                          [(bb) to the maximum 
                                        extent practicable, at 
                                        costs comparable to the 
                                        costs of such materials 
                                        for nondisabled 
                                        students;
                                  [(II) the feasibility and 
                                technical parameters of 
                                establishing standardized 
                                electronic file formats, such 
                                as the National Instructional 
                                Materials Accessibility 
                                Standard as defined in section 
                                674(e)(3) of the Individuals 
                                with Disabilities Education 
                                Act, to be provided by 
                                publishers of instructional 
                                materials to producers of 
                                materials in specialized 
                                formats, institutions of higher 
                                education, and eligible 
                                students;
                                  [(III) the feasibility of 
                                establishing a national 
                                clearinghouse, repository, or 
                                file-sharing network for 
                                electronic files in specialized 
                                formats and files used in 
                                producing instructional 
                                materials in specialized 
                                formats, and a list of possible 
                                entities qualified to 
                                administer such clearinghouse, 
                                repository, or network;
                                  [(IV) the feasibility of 
                                establishing market-based 
                                solutions involving 
                                collaborations among publishers 
                                of instructional materials, 
                                producers of materials in 
                                specialized formats, and 
                                institutions of higher 
                                education;
                                  [(V) solutions utilizing 
                                universal design; and
                                  [(VI) solutions for low-
                                incidence, high-cost requests 
                                for instructional materials in 
                                specialized formats.
          [(2) Report.--Not later than one year after the 
        Commission's first meeting, the Commission shall submit 
        a report to the Secretary and the authorizing 
        committees detailing the findings and recommendations 
        of the study conducted under paragraph (1).
          [(3) Dissemination of information.--In carrying out 
        the study under paragraph (1), the Commission shall 
        disseminate information concerning the issues that are 
        the subject of the study through--
                  [(A) the National Technical Assistance Center 
                established under subpart 4; and
                  [(B) other means, as determined by the 
                Commission.
  [(c) Termination of the Commission.--The Commission shall 
terminate on the date that is 90 days after the date on which 
the Commission submits the report under subsection (b)(2) to 
the Secretary and the authorizing committees.

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

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

[SEC. 774. RULE OF CONSTRUCTION.

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

[SEC. 775. AUTHORIZATION OF APPROPRIATIONS.

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

  Subpart [4] 2--National Technical Assistance Center[; Coordinating 
                                Center]

SEC. [776.]  741. PURPOSE.

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

SEC. [777.]  742. NATIONAL TECHNICAL ASSISTANCE CENTER[; COORDINATING 
                    CENTER].

  (a) National Center.--
          (1) In general.--From amounts [appropriated under 
        section 778] reserved under section 736(b)(2), the 
        Secretary shall award a grant to, or enter into a 
        contract or cooperative agreement with, an eligible 
        entity to provide for the establishment and support of 
        a National Center for Information and Technical Support 
        for Postsecondary Students with Disabilities (in this 
        subsection referred to as the ``National Center''). The 
        National Center shall carry out the duties set forth in 
        paragraph (4).
          (2) Administration.--The program under this section 
        shall be administered by the office in the Department 
        that administers other postsecondary education 
        programs.
          (3) Eligible entity.--In this subpart, the term 
        ``eligible entity'' means an institution of higher 
        education, a nonprofit organization, or partnership of 
        two or more such institutions or organizations, with 
        demonstrated expertise in--
                  (A) supporting students with disabilities in 
                postsecondary education;
                  (B) technical knowledge necessary for the 
                dissemination of information in accessible 
                formats;
                  (C) working with diverse types of 
                institutions of higher education, including 
                community colleges; and
                  [(D) the subjects supported by the grants, 
                contracts, or cooperative agreements authorized 
                in subparts 1, 2, and 3.]
                  (D) the subject supported by the grants or 
                cooperative agreement authorized in subpart 1.
          (4) Duties.--The duties of the National Center shall 
        include the following:
                  (A) Assistance to students and families.--The 
                National Center shall provide information and 
                technical assistance to students with 
                disabilities and the families of students with 
                disabilities to support students across the 
                broad spectrum of disabilities, including--
                          (i) information to assist individuals 
                        with disabilities who are prospective 
                        students of an institution of higher 
                        education in planning for postsecondary 
                        education while the students are in 
                        secondary school;
                          (ii) information and technical 
                        assistance provided to individualized 
                        education program teams (as defined in 
                        section 614(d)(1) of the Individuals 
                        with Disabilities Education Act) for 
                        secondary school students with 
                        disabilities, and to early outreach and 
                        student services programs, including 
                        programs authorized under [subparts 2, 
                        4, and 5] subparts 2 and 5 of part A of 
                        title IV, to support students across a 
                        broad spectrum of disabilities with the 
                        successful transition to postsecondary 
                        education;
                          (iii) research-based supports, 
                        services, and accommodations which are 
                        available in postsecondary settings, 
                        including services provided by other 
                        agencies such as vocational 
                        rehabilitation;
                          (iv) information on student mentoring 
                        and networking opportunities for 
                        students with disabilities; and
                          (v) effective recruitment and 
                        transition programs at postsecondary 
                        educational institutions.
                  (B) Assistance to institutions of higher 
                education.--The National Center shall provide 
                information and technical assistance to 
                faculty, staff, and administrators of 
                institutions of higher education to improve the 
                services provided to, the accommodations for, 
                the retention rates of, and the completion 
                rates of, students with disabilities in higher 
                education settings, which may include--
                          (i) collection and dissemination of 
                        best and promising practices and 
                        materials for accommodating and 
                        supporting students with disabilities, 
                        including practices and materials 
                        supported by the [grants, contracts, or 
                        cooperative agreements authorized under 
                        subparts 1, 2, and 3] grants and 
                        cooperative agreement authorized under 
                        subpart 1;
                          (ii) development and provision of 
                        training modules for higher education 
                        faculty on exemplary practices for 
                        accommodating and supporting 
                        postsecondary students with 
                        disabilities across a range of academic 
                        fields, which may include universal 
                        design for learning and practices 
                        supported by the [grants, contracts, or 
                        cooperative agreements authorized under 
                        subparts 1, 2, and 3] grants and 
                        cooperative agreement authorized under 
                        subpart 1; and
                          (iii) development of technology-based 
                        tutorials for higher education faculty 
                        and staff, including new faculty and 
                        graduate students, on best and 
                        promising practices related to support 
                        and retention of students with 
                        disabilities in postsecondary 
                        education.
                  (C) Information collection and 
                dissemination.--The National Center shall be 
                responsible for building, maintaining, and 
                updating a database of disability support 
                services information with respect to 
                institutions of higher education, or for 
                expanding and updating an existing database of 
                disabilities support services information with 
                respect to institutions of higher education. 
                Such database shall be available to the general 
                public through a website built to high 
                technical standards of accessibility 
                practicable for the broad spectrum of 
                individuals with disabilities. Such database 
                and website shall include available information 
                on--
                          (i) disability documentation 
                        requirements;
                          (ii) support services available;
                          (iii) links to financial aid;
                          (iv) accommodations policies;
                          (v) accessible instructional 
                        materials;
                          (vi) other topics relevant to 
                        students with disabilities; and
                          (vii) the information in the report 
                        described in subparagraph (E).
                  (D) Disability support services.--The 
                National Center shall work with organizations 
                and individuals with proven expertise related 
                to disability support services for 
                postsecondary students with disabilities to 
                evaluate, improve, and disseminate information 
                related to the delivery of high quality 
                disability support services at institutions of 
                higher education.
                  (E) Review and report.--Not later than three 
                years after the establishment of the National 
                Center, and every two years thereafter, the 
                National Center shall prepare and disseminate a 
                report to the Secretary and the authorizing 
                committees analyzing the condition of 
                postsecondary success for students with 
                disabilities. Such report shall include--
                          (i) a review of the activities and 
                        the effectiveness of the programs 
                        authorized under this part;
                          (ii) annual enrollment and graduation 
                        rates of students with disabilities in 
                        institutions of higher education from 
                        publicly reported data;
                          (iii) recommendations for effective 
                        postsecondary supports and services for 
                        students with disabilities, and how 
                        such supports and services may be 
                        widely implemented at institutions of 
                        higher education;
                          (iv) recommendations on reducing 
                        barriers to full participation for 
                        students with disabilities in higher 
                        education; and
                          (v) a description of strategies with 
                        a demonstrated record of effectiveness 
                        in improving the success of such 
                        students in postsecondary education.
                  (F) Staffing of the center.--In hiring 
                employees of the National Center, the National 
                Center shall consider the expertise and 
                experience of prospective employees in 
                providing training and technical assistance to 
                practitioners.
  (b) Coordinating Center.--
          (1) Definition of eligible entity.--In this 
        subsection, the term ``eligible entity'' means an 
        entity, or a partnership of entities, that has 
        demonstrated expertise in the fields of--
                  (A) higher education;
                  (B) the education of students with 
                intellectual disabilities;
                  (C) the development of comprehensive 
                transition and postsecondary programs for 
                students with intellectual disabilities; and
                  (D) evaluation and technical assistance.
          (2) In general.--From amounts appropriated under 
        section 778, the Secretary shall enter into a 
        cooperative agreement, on a competitive basis, with an 
        eligible entity for the purpose of establishing a 
        coordinating center for institutions of higher 
        education that offer inclusive comprehensive transition 
        and postsecondary programs for students with 
        intellectual disabilities, including institutions 
        participating in grants authorized under subpart 2, to 
        provide--
                  (A) recommendations related to the 
                development of standards for such programs;
                  (B) technical assistance for such programs; 
                and
                  (C) evaluations for such programs.
          (3) Administration.--The program under this 
        subsection shall be administered by the office in the 
        Department that administers other postsecondary 
        education programs.
          (4) Duration.--The Secretary shall enter into a 
        cooperative agreement under this subsection for a 
        period of five years.
          (5) Requirements of cooperative agreement.--The 
        eligible entity entering into a cooperative agreement 
        under this subsection shall establish and maintain a 
        coordinating center that shall--
                  (A) serve as the technical assistance entity 
                for all comprehensive transition and 
                postsecondary programs for students with 
                intellectual disabilities;
                  (B) provide technical assistance regarding 
                the development, evaluation, and continuous 
                improvement of such programs;
                  (C) develop an evaluation protocol for such 
                programs that includes qualitative and 
                quantitative methodologies for measuring 
                student outcomes and program strengths in the 
                areas of academic enrichment, socialization, 
                independent living, and competitive or 
                supported employment;
                  (D) assist recipients of grants under subpart 
                2 in efforts to award a meaningful credential 
                to students with intellectual disabilities upon 
                the completion of such programs, which 
                credential shall take into consideration unique 
                State factors;
                  (E) develop recommendations for the necessary 
                components of such programs, such as--
                          (i) academic, vocational, social, and 
                        independent living skills;
                          (ii) evaluation of student progress;
                          (iii) program administration and 
                        evaluation;
                          (iv) student eligibility; and
                          (v) issues regarding the equivalency 
                        of a student's participation in such 
                        programs to semester, trimester, 
                        quarter, credit, or clock hours at an 
                        institution of higher education, as the 
                        case may be;
                  (F) analyze possible funding streams for such 
                programs and provide recommendations regarding 
                the funding streams;
                  (G) develop model memoranda of agreement for 
                use between or among institutions of higher 
                education and State and local agencies 
                providing funding for such programs;
                  (H) develop mechanisms for regular 
                communication, outreach and dissemination of 
                information about comprehensive transition and 
                postsecondary programs for students with 
                intellectual disabilities under subpart 2 
                between or among such programs and to families 
                and prospective students;
                  (I) host a meeting of all recipients of 
                grants under subpart 2 not less often than once 
                each year; and
                  (J) convene a workgroup to develop and 
                recommend model criteria, standards, and 
                components of such programs as described in 
                subparagraph (E), that are appropriate for the 
                development of accreditation standards, which 
                workgroup shall include--
                          (i) an expert in higher education;
                          (ii) an expert in special education;
                          (iii) a disability organization that 
                        represents students with intellectual 
                        disabilities;
                          (iv) a representative from the 
                        National Advisory Committee on 
                        Institutional Quality and Integrity; 
                        and
                          (v) a representative of a regional or 
                        national accreditation agency or 
                        association.
          (6) Report.--Not later than five years after the date 
        of the establishment of the coordinating center under 
        this subsection, the coordinating center shall report 
        to the Secretary, the authorizing committees, and the 
        National Advisory Committee on Institutional Quality 
        and Integrity on the recommendations of the workgroup 
        described in paragraph (5)(J).

[SEC. 778. AUTHORIZATION OF APPROPRIATIONS.

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

            [PART E--COLLEGE ACCESS CHALLENGE GRANT PROGRAM

[SEC. 781. COLLEGE ACCESS CHALLENGE GRANT PROGRAM.

  [(a) Authorization and Appropriation.--There are authorized 
to be appropriated, and there are appropriated, to carry out 
this section $150,000,000 for each of the fiscal years 2010 
through 2014. The authority to award grants under this section 
shall expire at the end of fiscal year 2014. In addition to the 
amount authorized and appropriated under the preceding 
sentence, there are authorized to be appropriated to carry out 
this section such sums as may be necessary for fiscal year 2009 
and each of the five succeeding fiscal years.
  [(b) Program Authorized.--
          [(1) Grants authorized.--From amounts appropriated 
        under subsection (a), the Secretary shall, subject to 
        the availability of appropriations, award grants, from 
        allotments under subsection (c), to States (and to 
        philanthropic organization, as appropriate under 
        paragraph (3)) having applications approved under 
        subsection (d), to enable the State (or philanthropic 
        organization) to pay the Federal share of the costs of 
        carrying out the activities and services described in 
        subsection (f).
          [(2) Federal share; non-federal share.--
                  [(A) Federal share.--The amount of the 
                Federal share under this section for a fiscal 
                year shall be equal to \2/3\ of the costs of 
                the activities and services described in 
                subsection (f) that are carried out under the 
                grant.
                  [(B) Non-federal share.--The amount of the 
                non-Federal share under this section shall be 
                equal to \1/3\ of the costs of the activities 
                and services described in subsection (f). The 
                non-Federal share may be in cash or in-kind, 
                and may be provided from State resources, 
                contributions from private organizations, or 
                both.
          [(3) Reduction for failure to pay non-federal 
        share.--If a State fails to provide the full non-
        Federal share required under this subsection, the 
        Secretary shall reduce the amount of the grant payment 
        under this section proportionately, and may award the 
        proportionate reduction amount of the grant directly to 
        a philanthropic organization, as defined in subsection 
        (i), to carry out this section.
          [(4) Temporary ineligibility for subsequent 
        payments.--
                  [(A) In general.--The Secretary shall 
                determine a grantee to be temporarily 
                ineligible to receive a grant payment under 
                this section for a fiscal year if--
                          [(i) the grantee fails to submit an 
                        annual report pursuant to subsection 
                        (h) for the preceding fiscal year; or
                          [(ii) the Secretary determines, based 
                        on information in such annual report, 
                        that the grantee is not effectively 
                        meeting the conditions described under 
                        subsection (g) and the goals of the 
                        application under subsection (d).
                  [(B) Reinstatement.--If the Secretary 
                determines that a grantee is ineligible under 
                subparagraph (A), the Secretary may enter into 
                an agreement with the grantee setting forth the 
                terms and conditions under which the grantee 
                may regain eligibility to receive payments 
                under this section.
  [(c) Determination of Allotment.--
          [(1) Amount of allotment.--Subject to paragraph (2), 
        in making grant payments to grantees under this 
        section, the allotment to each grantee for a fiscal 
        year shall be equal to the sum of--
                  [(A) the amount that bears the same relation 
                to 50 percent of the amount appropriated under 
                subsection (a) for such fiscal year as the 
                number of residents in the State aged 5 through 
                17 who are living below the poverty line 
                applicable to the resident's family size (as 
                determined under section 673(2) of the 
                Community Services Block Grant Act) bears to 
                the total number of such residents in all 
                States; and
                  [(B) the amount that bears the same relation 
                to 50 percent of the amount appropriated under 
                subsection (a) for such fiscal year as the 
                number of residents in the State aged 15 
                through 44 who are living below the poverty 
                line applicable to the individual's family size 
                (as determined under section 673(2) of the 
                Community Services Block Grant Act) bears to 
                the total number of such residents in all 
                States.
          [(2) Minimum amount.--The allotment for each State 
        under this section for a fiscal year shall not be an 
        amount that is less than 1.0 percent of the total 
        amount appropriated under subsection (a) for such 
        fiscal year.
  [(d) Submission and Contents of Application.--
          [(1) In general.--For each fiscal year for which a 
        grantee desires a grant payment under subsection (b), 
        the State agency with jurisdiction over higher 
        education, or another agency designated by the Governor 
        or chief executive of the State to administer the 
        program under this section, or a philanthropic 
        organization, in accordance with subsection (b)(3), 
        shall submit an application to the Secretary at such 
        time, in such manner, and containing the information 
        described in paragraph (2).
          [(2) Application.--An application submitted under 
        paragraph (1) shall include the following:
                  [(A) A description of the grantee's capacity 
                to administer the grant under this section and 
                report annually to the Secretary on the 
                activities and services described in subsection 
                (f).
                  [(B) A description of the grantee's plan for 
                using the grant funds to meet the requirements 
                of subsections (f) and (g), including plans for 
                how the grantee will make special efforts to--
                          [(i) provide such benefits to 
                        students in the State that are 
                        underrepresented in postsecondary 
                        education; or
                          [(ii) in the case of a philanthropic 
                        organization that operates in more than 
                        one State, provide benefits to such 
                        students in each such State for which 
                        the philanthropic organization is 
                        receiving grant funds under this 
                        section.
                  [(C) A description of how the grantee will 
                provide or coordinate the provision of the non-
                Federal share from State resources or private 
                contributions.
                  [(D) A description of--
                          [(i) the structure that the grantee 
                        has in place to administer the 
                        activities and services described in 
                        subsection (f); or
                          [(ii) the plan to develop such 
                        administrative capacity.
  [(e) Subgrants to Nonprofit Organizations.--A State receiving 
a payment under this section may elect to make a subgrant to 
one or more nonprofit organizations in the State, including an 
eligible not-for-profit holder (as described in section 
435(p)), or those nonprofit organizations that have agreements 
with the Secretary under section 428(b), or a partnership of 
such organizations, to carry out activities or services 
described in subsection (f), if the nonprofit organization or 
partnership--
          [(1) was in existence on the day before the date of 
        the enactment of this Act; and
          [(2) as of such day, was participating in activities 
        and services related to increasing access to higher 
        education, such as those activities and services 
        described in subsection (f).
  [(f) Allowable Uses.--
          [(1) In general.--Subject to paragraph (3), a grantee 
        may use a grant payment under this section only for the 
        following activities and services, pursuant to the 
        conditions under subsection (g):
                  [(A) Information for students and families 
                regarding--
                          [(i) the benefits of a postsecondary 
                        education;
                          [(ii) postsecondary education 
                        opportunities;
                          [(iii) planning for postsecondary 
                        education; and
                          [(iv) career preparation.
                  [(B) Information on financing options for 
                postsecondary education and activities that 
                promote financial literacy and debt management 
                among students and families.
                  [(C) Outreach activities for students who may 
                be at risk of not enrolling in or completing 
                postsecondary education.
                  [(D) Assistance in completion of the Free 
                Application for Federal Student Aid or other 
                common financial reporting form under section 
                483(a) of the Higher Education Act of 1965.
                  [(E) Need-based grant aid for students.
                  [(F) Professional development for guidance 
                counselors at middle schools and secondary 
                schools, and financial aid administrators and 
                college admissions counselors at institutions 
                of higher education, to improve such 
                individuals' capacity to assist students and 
                parents with--
                          [(i) understanding--
                                  [(I) entrance requirements 
                                for admission to institutions 
                                of higher education; and
                                  [(II) State eligibility 
                                requirements for Academic 
                                Competitiveness Grants or 
                                National SMART Grants under 
                                section 401A, and other 
                                financial assistance that is 
                                dependent upon a student's 
                                coursework;
                          [(ii) applying to institutions of 
                        higher education;
                          [(iii) applying for Federal student 
                        financial assistance and other State, 
                        local, and private student financial 
                        assistance and scholarships;
                          [(iv) activities that increase 
                        students' ability to successfully 
                        complete the coursework required for a 
                        postsecondary degree, including 
                        activities such as tutoring or 
                        mentoring; and
                          [(v) activities to improve secondary 
                        school students' preparedness for 
                        postsecondary entrance examinations.
                  [(G) Student loan cancellation or repayment 
                (as applicable), or interest rate reductions, 
                for borrowers who are employed in a high-need 
                geographical area or a high-need profession in 
                the State, as determined by the State.
          [(2) Prohibited uses.--Funds made available under 
        this section shall not be used to promote any lender's 
        loans.
          [(3) Use of funds for administrative purposes.--A 
        grantee may use not more than 6 percent of the total 
        amount of the sum of the Federal share provided under 
        this section and the non-Federal share required under 
        this section for administrative purposes relating to 
        the grant under this section.
  [(g) Special Conditions.--
          [(1) Availability to students and families.--A 
        grantee receiving a grant payment under this section 
        shall--
                  [(A) make the activities and services 
                described in subparagraphs (A) through (F) of 
                subsection (f)(1) that are funded under the 
                payment available to all qualifying students 
                and families in the State;
                  [(B) allow students and families to 
                participate in the activities and services 
                without regard to--
                          [(i) the postsecondary institution in 
                        which the student enrolls;
                          [(ii) the type of student loan the 
                        student receives;
                          [(iii) the servicer of such loan; or
                          [(iv) the student's academic 
                        performance;
                  [(C) not charge any student or parent a fee 
                or additional charge to participate in the 
                activities or services; and
                  [(D) in the case of an activity providing 
                grant aid, not require a student to meet any 
                condition other than eligibility for Federal 
                financial assistance under title IV of the 
                Higher Education Act of 1965, except as 
                provided for in the loan cancellation or 
                repayment or interest rate reductions described 
                in subsection (f)(1)(G).
          [(2) Priority.--A grantee receiving a grant payment 
        under this section shall, in carrying out any activity 
        or service described in subsection (f)(1) with the 
        grant funds, prioritize students and families who are 
        living below the poverty line applicable to the 
        individual's family size (as determined under section 
        673(2) of the Community Services Block Grant Act).
          [(3) Disclosures.--
                  [(A) Organizational disclosures.--In the case 
                of a State that has chosen to make a payment to 
                an eligible not-for-profit holder in the State 
                in accordance with subsection (e), the holder 
                shall clearly and prominently indicate the name 
                of the holder and the nature of the holder's 
                work in connection with any of the activities 
                carried out, or any information or services 
                provided, with such funds.
                  [(B) Informational disclosures.--Any 
                information about financing options for higher 
                education provided through an activity or 
                service funded under this section shall--
                          [(i) include information to students 
                        and the students' parents of the 
                        availability of Federal, State, local, 
                        institutional, and other grants and 
                        loans for postsecondary education; and
                          [(ii) present information on 
                        financial assistance for postsecondary 
                        education that is not provided under 
                        title IV of the Higher Education Act of 
                        1965 in a manner that is clearly 
                        distinct from information on student 
                        financial assistance under such title.
          [(4) Coordination.--A grantee receiving a grant 
        payment under this section shall attempt to coordinate 
        the activities carried out with the grant payment with 
        any existing activities that are similar to such 
        activities, and with any other entities that support 
        the existing activities in the State.
  [(h) Report.--A grantee receiving a payment under this 
section shall prepare and submit an annual report to the 
Secretary on the activities and services carried out under this 
section, and on the implementation of such activities and 
services. The report shall include--
          [(1) each activity or service that was provided to 
        students and families over the course of the year;
          [(2) the cost of providing each activity or service;
          [(3) the number, and percentage, if feasible and 
        applicable, of students who received each activity or 
        service; and
          [(4) the total contributions from private 
        organizations included in the grantee's non-Federal 
        share for the fiscal year.
  [(i) Definitions.--In this section:
          [(1) Philanthropic organization.--The term 
        ``philanthropic organization'' means a non-profit 
        organization--
                  [(A) that does not receive funds under title 
                IV of the Higher Education Act of 1965 or under 
                the Elementary and Secondary Education Act of 
                1965;
                  [(B) that is not a local educational agency 
                or an institution of higher education;
                  [(C) that has a demonstrated record of 
                dispersing grant aid to underserved populations 
                to ensure access to, and participation in, 
                higher education;
                  [(D) that is affiliated with an eligible 
                consortium (as defined in paragraph (2)) to 
                carry out this section; and
                  [(E) the primary purpose of which is to 
                provide financial aid and support services to 
                students from underrepresented populations to 
                increase the number of such students who enter 
                and remain in college.
          [(2) Eligible consortium.--The term ``eligible 
        consortium'' means a partnership of 2 or more entities 
        that have agreed to work together to carry out this 
        section that--
                  [(A) includes--
                          [(i) a philanthropic organization, 
                        which serves as the manager of the 
                        consortium;
                          [(ii) a State that demonstrates a 
                        commitment to ensuring the creation of 
                        a Statewide system to address the 
                        issues of early intervention and 
                        financial support for eligible students 
                        to enter and remain in college; and
                          [(iii) at the discretion of the 
                        philanthropic organization described in 
                        clause (i), additional partners, 
                        including other non-profit 
                        organizations, government entities 
                        (including local municipalities, school 
                        districts, cities, and counties), 
                        institutions of higher education, and 
                        other public or private programs that 
                        provide mentoring or outreach programs; 
                        and
                  [(B) conducts activities to assist students 
                with entering and remaining in college, which 
                may include--
                          [(i) providing need-based grants to 
                        students;
                          [(ii) providing early notification to 
                        low-income students of their potential 
                        eligibility for Federal financial aid 
                        (which may include assisting students 
                        and families with filling out FAFSA 
                        forms), as well as other financial aid 
                        and other support available from the 
                        eligible consortium;
                          [(iii) encouraging increased student 
                        participation in higher education 
                        through mentoring or outreach programs; 
                        and
                          [(iv) conducting marketing and 
                        outreach efforts that are designed to--
                                  [(I) encourage full 
                                participation of students in 
                                the activities of the 
                                consortium that carry out this 
                                section; and
                                  [(II) provide the communities 
                                impacted by the activities of 
                                the consortium with a general 
                                knowledge about the efforts of 
                                the consortium.
          [(3) Grantee.--The term ``grantee'' means--
                  [(A) a State awarded a grant under this 
                section; or
                  [(B) with respect to such a State that has 
                failed to meet the non-Federal share 
                requirement of subsection (b), a philanthropic 
                organization awarded the proportionate 
                reduction amount of such a grant under 
                subsection (b)(3).]

                    [TITLE VIII--ADDITIONAL PROGRAMS

                         [PART A--PROJECT GRAD

[SEC. 801. PROJECT GRAD.

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

           [PART B--MATHEMATICS AND SCIENCE SCHOLARS PROGRAM

[SEC. 802. MATHEMATICS AND SCIENCE SCHOLARS PROGRAM.

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

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

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

  [(a) Purpose.--The purpose of this section is to provide 
grants to institutions of higher education partnering with 
employers to--
          [(1) provide relevant job skill training in high-
        growth and high-wage industries or occupations to 
        nontraditional students; and
          [(2) strengthen ties between degree credit offerings 
        at institutions of higher education and business and 
        industry workforce needs.
  [(b) Authorization.--
          [(1) In general.--From the amounts appropriated under 
        subsection (k), the Secretary shall award grants, on a 
        competitive basis, to eligible partnerships for the 
        purpose provided in subsection (a).
          [(2) Duration.--The Secretary shall award grants 
        under this section for a period of not less than 36 
        months and not more than 60 months.
          [(3) Supplement, not supplant.--Funds made available 
        under this section shall be used to supplement, and not 
        supplant, other Federal, State, and local funds 
        available to the eligible partnership for carrying out 
        the activities described in subsection (c).
  [(c) Use of Funds.--In consultation with all of the members 
of an eligible partnership, grant funds provided under this 
section may be used to--
          [(1) expand or create for-credit academic programs or 
        programs of training that provide relevant job skill 
        training for high-growth and high-wage occupations or 
        industries, including offerings connected to registered 
        apprenticeship programs and entrepreneurial training 
        opportunities;
          [(2) in consultation with faculty in the appropriate 
        departments of an institution of higher education, 
        adapt college offerings to the schedules and needs of 
        working students, such as the creation of evening, 
        weekend, modular, compressed, or distance learning 
        formats;
          [(3) purchase equipment that will facilitate the 
        development of academic programs or programs of 
        training that provide training for high-growth and 
        high-wage occupations or industries;
          [(4) strengthen outreach efforts that enable 
        students, including students with limited English 
        proficiency, to attend institutions of higher education 
        with academic programs or programs of training focused 
        on high-growth and high-wage occupations or industries;
          [(5) expand worksite learning and training 
        opportunities, including registered apprenticeships as 
        appropriate; and
          [(6) support other activities the Secretary 
        determines to be consistent with the purpose of this 
        section.
  [(d) Application.--
          [(1) In general.--Each eligible partnership that 
        desires a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and accompanied by such additional information 
        as the Secretary may require.
          [(2) Contents.--Each application submitted under 
        paragraph (1) shall include a description of--
                  [(A) how the eligible partnership, through 
                the institution of higher education, will 
                provide relevant job skill training for 
                students to enter high-growth and high-wage 
                occupations or industries; and
                  [(B) how the eligible partnership has 
                consulted with employers and, where applicable, 
                labor organizations to identify local high-
                growth and high-wage occupations or industries.
  [(e) Award Basis.--In awarding grants under this section, the 
Secretary shall--
          [(1) give priority to applications focused on serving 
        nontraditional students;
          [(2) ensure an equitable distribution of grant funds 
        under this section among urban and rural areas of the 
        United States; and
          [(3) take into consideration the capability of an 
        institution of higher education that is participating 
        in an eligible partnership to--
                  [(A) offer one- or two-year high-quality 
                programs of instruction and job skill training 
                for students entering a high-growth and high-
                wage occupation or industry;
                  [(B) involve the local business community, 
                and to place graduates in employment in high-
                growth and high-wage occupations or industries 
                in the community; and
                  [(C) serve adult workers or displaced 
                workers.
  [(f) Administrative Costs.--A grantee under this section may 
use not more than five percent of the grant amount to pay 
administrative costs associated with activities funded by the 
grant.
  [(g) Technical Assistance.--The Secretary shall provide 
technical assistance to grantees under this section throughout 
the grant period.
  [(h) Evaluation.--The Secretary shall conduct an evaluation 
of the effectiveness of the program under this section based on 
performance standards developed in consultation with the 
Department of Labor, and shall disseminate to the public the 
findings of such evaluation and information related to 
promising practices developed under this section.
  [(i) Report to Congress.--Not later than 36 months after the 
first grant is awarded under this section, the Comptroller 
General shall report to the authorizing committees 
recommendations--
          [(1) for changes to this Act and related Acts, such 
        as the Carl D. Perkins Career and Technical Education 
        Act of 2006 and the Workforce Investment Act of 1998 
        (including titles I and II), to help create and sustain 
        business and industry workforce partnerships at 
        institutions of higher education; and
          [(2) for other changes to this Act and related Acts 
        to otherwise strengthen the links between business and 
        industry workforce needs, workforce development 
        programs, and other degree credit offerings at 
        institutions of higher education.
  [(j) Definitions.--In this section:
          [(1) Eligible partnership.--
                  [(A) In general.--The term ``eligible 
                partnership'' means a partnership that 
                includes--
                          [(i) one or more institutions of 
                        higher education, one of which serves 
                        as the fiscal agent and grant recipient 
                        for the eligible partnership;
                          [(ii) except as provided in 
                        subparagraph (B), an employer, group of 
                        employers, local board (as such term is 
                        defined in section 3 of the Workforce 
                        Innovation and Opportunity Act), or 
                        workforce intermediary, or any 
                        combination thereof; and
                          [(iii) where applicable, one or more 
                        labor organizations that represent 
                        workers locally in the businesses or 
                        industries that are the focus of the 
                        partnership, including as a result of 
                        such an organization's representation 
                        of employees at a worksite at which the 
                        partnership proposes to conduct 
                        activities under this section.
                  [(B) State and local boards.--Notwithstanding 
                subparagraph (A), if an institution of higher 
                education that is participating in an eligible 
                partnership under this section is located in a 
                State that does not operate local boards, an 
                eligible partnership may include a State board 
                (as such term is defined in section 3 of the 
                Workforce Innovation and Opportunity Act).
                  [(C) Rule of construction.--Nothing in this 
                subsection shall be construed to prohibit an 
                eligible partnership that is in existence on 
                the date of enactment of the Higher Education 
                Opportunity Act from applying for a grant under 
                this section.
          [(2) Nontraditional student.--The term 
        ``nontraditional student'' means a student--
                  [(A) who is an independent student, as 
                defined in section 480(d);
                  [(B) who attends an institution of higher 
                education--
                          [(i) on less than a full-time basis;
                          [(ii) via evening, weekend, modular, 
                        or compressed courses; or
                          [(iii) via distance education 
                        methods; and
                  [(C) who--
                          [(i) enrolled for the first time in 
                        an institution of higher education 
                        three or more years after completing 
                        high school; or
                          [(ii) works full-time.
  [(k) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

           [PART D--CAPACITY FOR NURSING STUDENTS AND FACULTY

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

  [(a) Authorization.--From the amounts appropriated under 
subsection (f), the Secretary shall award grants to 
institutions of higher education that offer--
          [(1) an accredited registered nursing program at the 
        baccalaureate or associate degree level to enable such 
        program to expand the faculty and facilities of such 
        program to accommodate additional students in such 
        program; or
          [(2) an accredited graduate-level nursing program to 
        accommodate advanced practice degrees for registered 
        nurses or to accommodate students enrolled in such 
        program to become teachers of nursing students.
  [(b) Determination of Number of Students and Application.--
Each institution of higher education that offers a program 
described in subsection (a) that desires to receive a grant 
under this section shall--
          [(1) determine, for the four academic years preceding 
        the academic year for which the determination is made, 
        the average number of matriculated nursing program 
        students, in each of the institution's accredited 
        associate, baccalaureate, or advanced nursing degree 
        programs at such institution for such academic years;
          [(2) submit an application to the Secretary at such 
        time, in such manner, and accompanied by such 
        information as the Secretary may require, including the 
        average number in each of the institution's accredited 
        nursing programs determined under paragraph (1); and
          [(3) with respect to the partnerships described in 
        subsection (c)(2)(B), provide assurances that--
                  [(A) the individuals enrolled in the program 
                will--
                          [(i) be registered nurses in pursuit 
                        of a master's or doctoral degree in 
                        nursing; and
                          [(ii) have a contractual obligation 
                        with the hospital or health facility 
                        that is in partnership with the 
                        institution of higher education;
                  [(B) the hospital or health facility of 
                employment will be the clinical site for the 
                accredited school of nursing program, if the 
                program requires a clinical site;
                  [(C) individuals enrolled in the program 
                will--
                          [(i) maintain their employment on at 
                        least a part-time basis with the 
                        hospital or health facility that 
                        allowed them to participate in the 
                        program; and
                          [(ii) receive an income from the 
                        hospital or health facility, as at 
                        least a part-time employee, and release 
                        times or flexible schedules, to 
                        accommodate their program requirements, 
                        as necessary; and
                  [(D) upon completion of the program, 
                recipients of scholarships described in 
                subsection (c)(2)(B)(ii)(III) will be required 
                to teach for two years in an accredited school 
                of nursing for each year of support the 
                individual received under this section.
  [(c) Grant Amount; Award Basis.--
          [(1) Grant amount.--For each academic year after 
        academic year 2009-2010, the Secretary is authorized to 
        provide to each institution of higher education awarded 
        a grant under this section an amount that is equal to 
        $3,000 multiplied by the number by which--
                  [(A) the number of matriculated nursing 
                program students at such institution for such 
                academic year, exceeds
                  [(B) the average number determined with 
                respect to such institution under subsection 
                (b)(1).
          [(2) Distribution of grants among different degree 
        programs.--
                  [(A) In general.--Subject to subparagraph 
                (D), from the funds available to award grants 
                under this section for each fiscal year, the 
                Secretary shall--
                          [(i) use 20 percent of such funds to 
                        award grants under this section to 
                        institutions of higher education for 
                        the purpose of accommodating advanced 
                        practice degrees or students in 
                        accredited graduate-level nursing 
                        programs;
                          [(ii) use 40 percent of such funds to 
                        award grants under this section to 
                        institutions of higher education for 
                        the purpose of expanding accredited 
                        registered nurse programs at the 
                        baccalaureate degree level; and
                          [(iii) use 40 percent of such funds 
                        to award grants under this section to 
                        institutions of higher education for 
                        the purpose of expanding accredited 
                        registered nurse programs at the 
                        associate degree level.
                  [(B) Optional uses of funds.--Grants awarded 
                under this section may be used to support 
                partnerships with hospitals or health 
                facilities to--
                          [(i) improve the alignment between 
                        nursing education and the emerging 
                        challenges of health care delivery by--
                                  [(I) the purchase of distance 
                                learning technologies and 
                                expanding methods of delivery 
                                of instruction to include 
                                alternatives to onsite 
                                learning; and
                                  [(II) the collection, 
                                analysis, and dissemination of 
                                data on educational outcomes 
                                and best practices identified 
                                through the activities 
                                described in this section; and
                          [(ii) ensure that students can earn a 
                        salary while obtaining an advanced 
                        degree in nursing with the goal of 
                        becoming nurse faculty by--
                                  [(I) funding release time for 
                                qualified nurses enrolled in 
                                the graduate nursing program;
                                  [(II) providing for faculty 
                                salaries; or
                                  [(III) providing scholarships 
                                to qualified nurses in pursuit 
                                of an advanced degree with the 
                                goal of becoming faculty 
                                members in an accredited 
                                nursing program.
                  [(C) Considerations in making awards.--In 
                awarding grants under this section, the 
                Secretary shall consider the following:
                          [(i) Geographic distribution.--
                        Providing an equitable geographic 
                        distribution of such grants.
                          [(ii) Urban and rural areas.--
                        Distributing such grants to urban and 
                        rural areas.
                          [(iii) Range and type of 
                        institution.--Ensuring that the 
                        activities to be assisted are developed 
                        for a range of types and sizes of 
                        institutions of higher education, 
                        including institutions providing 
                        alternative methods of delivery of 
                        instruction in addition to on-site 
                        learning.
                  [(D) Distribution of excess funds.--If, for a 
                fiscal year, funds described in clause (i), 
                (ii), or (iii) of subparagraph (A) remain 
                available after the Secretary awards grants 
                under this section to all applicants for the 
                particular category of accredited nursing 
                programs described in such clause, the 
                Secretary shall use equal amounts of the 
                remaining funds to award grants under this 
                section to applicants that applied under the 
                other categories of nursing programs.
                  [(E) Limitation.--Of the amount appropriated 
                to carry out this section, the Secretary may 
                award not more than ten percent of such amount 
                for the optional purposes under subparagraph 
                (B).
  [(d) Definitions.--For purposes of this section:
          [(1) Health facility.--The term ``health facility'' 
        means an Indian health service center, a Native 
        Hawaiian health center, a hospital, a federally 
        qualified health center, a rural health clinic, a 
        nursing home, a home health agency, a hospice program, 
        a public health clinic, a State or local department of 
        public health, a skilled nursing facility, or an 
        ambulatory surgical center.
          [(2) Public health service act.--The terms 
        ``accredited'' and ``school of nursing'' have the 
        meanings given those terms in section 801 of the Public 
        Health Service Act (42 U.S.C. 296).
  [(e) Prohibition.--
          [(1) In general.--Funds provided under this section 
        may not be used for the construction of new facilities.
          [(2) Rule of construction.--Nothing in paragraph (1) 
        shall be construed to prohibit funds provided under 
        this section from being used for the repair or 
        renovation of facilities.
  [(f) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

                 [PART E--AMERICAN HISTORY FOR FREEDOM

[SEC. 805. AMERICAN HISTORY FOR FREEDOM.

  [(a) Grants Authorized.--From the amounts appropriated under 
subsection (f), the Secretary is authorized to award three-year 
grants, on a competitive basis, to eligible institutions to 
establish or strengthen postsecondary academic programs or 
centers that promote and impart knowledge of--
          [(1) traditional American history;
          [(2) the history and nature of, and threats to, free 
        institutions; or
          [(3) the history and achievements of Western 
        civilization.
  [(b) Definitions.--In this section:
          [(1) Eligible institution.--The term ``eligible 
        institution'' means an institution of higher education 
        as defined in section 101.
          [(2) Free institution.--The term ``free institution'' 
        means an institution that emerged out of Western 
        civilization, such as democracy, constitutional 
        government, individual rights, market economics, 
        religious freedom and religious tolerance, and freedom 
        of thought and inquiry.
          [(3) Traditional american history.--The term 
        ``traditional American history'' means--
                  [(A) the significant constitutional, 
                political, intellectual, economic, and foreign 
                policy trends and issues that have shaped the 
                course of American history; and
                  [(B) the key episodes, turning points, and 
                leading figures involved in the constitutional, 
                political, intellectual, diplomatic, and 
                economic history of the United States.
  [(c) Application.--
          [(1) In general.--Each eligible institution that 
        desires a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may reasonably require.
          [(2) Contents.--Each application submitted under 
        paragraph (1) shall include a description of--
                  [(A) how funds made available under this 
                section will be used for the activities set 
                forth under subsection (e), including how such 
                activities will increase knowledge with respect 
                to traditional American history, free 
                institutions, or Western civilization;
                  [(B) how the eligible institution will ensure 
                that information about the activities funded 
                under this section is widely disseminated 
                pursuant to subsection (e)(1)(B);
                  [(C) any activities to be undertaken pursuant 
                to subsection (e)(2)(A), including 
                identification of entities intended to 
                participate;
                  [(D) how funds made available under this 
                section shall be used to supplement and not 
                supplant non-Federal funds available for the 
                activities described in subsection (e); and
                  [(E) such fiscal controls and accounting 
                procedures as may be necessary to ensure proper 
                disbursement of and accounting for funding made 
                available to the eligible institution under 
                this section.
  [(d) Award Basis.--In awarding grants under this section, the 
Secretary shall take into consideration the capability of the 
eligible institution to--
          [(1) increase access to quality programming that 
        expands knowledge of traditional American history, free 
        institutions, or Western civilization;
          [(2) involve personnel with strong expertise in 
        traditional American history, free institutions, or 
        Western civilization; and
          [(3) sustain the activities funded under this section 
        after the grant has expired.
  [(e) Use of Funds.--
          [(1) Required use of funds.--Funds provided under 
        this section shall be used to--
                  [(A) establish or strengthen academic 
                programs or centers focused on traditional 
                American history, free institutions, or Western 
                civilization, which may include--
                          [(i) design and implementation of 
                        programs of study, courses, lecture 
                        series, seminars, and symposia;
                          [(ii) development, publication, and 
                        dissemination of instructional 
                        materials;
                          [(iii) research;
                          [(iv) support for faculty teaching in 
                        undergraduate and, if applicable, 
                        graduate programs;
                          [(v) support for graduate and 
                        postgraduate fellowships, if 
                        applicable; or
                          [(vi) teacher preparation initiatives 
                        that stress content mastery regarding 
                        traditional American history, free 
                        institutions, or Western civilization; 
                        and
                  [(B) conduct outreach activities to ensure 
                that information about the activities funded 
                under this section is widely disseminated--
                          [(i) to undergraduate students 
                        (including students enrolled in teacher 
                        education programs, if applicable);
                          [(ii) to graduate students (including 
                        students enrolled in teacher education 
                        programs, if applicable);
                          [(iii) to faculty;
                          [(iv) to local educational agencies; 
                        and
                          [(v) within the local community.
          [(2) Allowable uses of funds.--Funds provided under 
        this section may be used to support--
                  [(A) collaboration with entities such as--
                          [(i) local educational agencies, for 
                        the purpose of providing elementary and 
                        secondary school teachers an 
                        opportunity to enhance their knowledge 
                        of traditional American history, free 
                        institutions, or Western civilization; 
                        and
                          [(ii) nonprofit organizations whose 
                        mission is consistent with the purpose 
                        of this section, such as academic 
                        organizations, museums, and libraries, 
                        for assistance in carrying out 
                        activities described under subsection 
                        (a); and
                  [(B) other activities that meet the purposes 
                of this section.
  [(f) Authorization of Appropriations.--For the purpose of 
carrying out this section, there are authorized to be 
appropriated such sums as may be necessary for fiscal year 2009 
and each of the five succeeding fiscal years.

                       [PART F--TEACH FOR AMERICA

[SEC. 806. TEACH FOR AMERICA.

  [(a) Definitions.--For purposes of this section:
          [(1) Grantee.--The term ``grantee'' means Teach For 
        America, Inc.
          [(3) High-need local educational agency.--The term 
        ``high-need local educational agency'' has the meaning 
        given such term in section 200.
  [(b) Grants Authorized.--From the amounts appropriated under 
subsection (f), the Secretary is authorized to award a five-
year grant to Teach For America, Inc., the national teacher 
corps of outstanding recent college graduates who commit to 
teach for two years in underserved communities in the United 
States, to implement and expand its program of recruiting, 
selecting, training, and supporting new teachers.
  [(c) Requirements.--In carrying out the grant program under 
subsection (b), the Secretary shall enter into an agreement 
with the grantee under which the grantee agrees to use the 
grant funds provided under this section to--
          [(1) provide teachers who meet the applicableState 
        certification and licensure requirements, includingany 
        requirements for certification obtained through 
        alternativeroutes to certification, or, with regard to 
        specialeducation teachers, the qualifications described 
        in section612(a)(14)(C) of the Individuals with 
        Disabilities EducationAct, to high-need local 
        educational agencies in urban and rural communities;
          [(2) pay the costs of recruiting, selecting, 
        training, and supporting new teachers; and
          [(3) serve a substantial number and percentage of 
        underserved students.
  [(d) Authorized Activities.--
          [(1) In general.--Grant funds provided under this 
        section shall be used by the grantee to carry out each 
        of the following activities:
                  [(A) Recruiting and selecting teachers 
                through a highly selective national process.
                  [(B) Providing preservice training to such 
                teachers through a rigorous summer institute 
                that includes hands-on teaching experience and 
                significant exposure to education coursework 
                and theory.
                  [(C) Placing such teachers in schools and 
                positions designated by high-need local 
                educational agencies as high-need placements 
                serving underserved students.
                  [(D) Providing ongoing professional 
                development activities for such teachers' first 
                two years in the classroom, including regular 
                classroom observations and feedback, and 
                ongoing training and support.
          [(2) Limitation.--The grantee shall use all grant 
        funds received under this section to support activities 
        related directly to the recruitment, selection, 
        training, and support of teachers as described in 
        subsection (b), except that funds may be used for non-
        programmatic costs in accordance with subsection 
        (f)(2).
  [(e) Reports and Evaluations.--
          [(1) Annual report.--The grantee shall provide to the 
        Secretary an annual report that includes--
                  [(A) data on the number and quality of the 
                teachers provided to local educational agencies 
                through a grant under this section;
                  [(B) an externally conducted analysis of the 
                satisfaction of local educational agencies and 
                principals with the teachers so provided; and
                  [(C) comprehensive data on the background of 
                the teachers chosen, the training such teachers 
                received, the placement sites of such teachers, 
                the professional development of such teachers, 
                and the retention of such teachers.
          [(2) Study.--
                  [(A) In general.--From funds appropriated 
                under subsection (f), the Secretary shall 
                provide for a study that examines the 
                achievement levels of the students taught by 
                the teachers assisted under this section.
                  [(B) Student achievement gains compared.--The 
                study shall compare, within the same schools, 
                the achievement gains made by students taught 
                by teachers who are assisted under this section 
                with the achievement gains made by students 
                taught by teachers who are not assisted under 
                this section.
                  [(C) Requirements.--The Secretary shall 
                provide for such a study not less than once 
                every three years, and each such study shall 
                include multiple placement sites and multiple 
                schools within placement sites.
                  [(D) Peer review standards.--Each such study 
                shall meet the peer review standards of the 
                education research community. Further, the peer 
                review standards shall ensure that reviewers 
                are practicing researchers and have expertise 
                in assessment systems, accountability, 
                psychometric measurement and statistics, and 
                instruction.
          [(3) Accounting, financial reporting, and internal 
        control systems.--
                  [(A) In general.--The grantee shall contract 
                with an independent auditor to conduct a 
                comprehensive review of the grantee's 
                accounting, financial reporting, and internal 
                control systems. Such review shall assess 
                whether that grantee's accounting, financial 
                reporting, and internal control systems are 
                designed to--
                          [(i) provide information that is 
                        complete, accurate, and reliable;
                          [(ii) reasonably detect and prevent 
                        material misstatements, as well as 
                        fraud, waste, and abuse; and
                          [(iii) provide information to 
                        demonstrate the grantee's compliance 
                        with related Federal programs, as 
                        applicable.
                  [(B) Review requirements.--Not later than 90 
                days after the grantee receives funds to carry 
                out this section for the first fiscal year in 
                which funds become available to carry out this 
                section after the date of enactment of 
                theHigher Education Opportunity Act, the 
                independent auditor shall complete the review 
                required by this paragraph.
                  [(C) Report.--Not later than 120 days after 
                the grantee receives funds to carry out this 
                section for the first fiscal year in which 
                funds become available to carry out this 
                section after the date of enactment of 
                theHigher Education Opportunity Act, the 
                independent auditor shall submit a report to 
                the authorizing committees and the Secretary of 
                the findings of the review required under this 
                paragraph, including any recommendations of the 
                independent auditor, as appropriate, with 
                respect to the grantee's accounting, financial 
                reporting, and internal control systems.
  [(f) Authorization of Appropriations.--
          [(1) In general.--The amount authorized to be 
        appropriated to carry out this section shall not 
        exceed--
                  [(A) $20,000,000 for fiscal year 2009;
                  [(B) $25,000,000 for fiscal year 2010; and
                  [(C) such sums as may be necessary for each 
                of the four succeeding fiscal years.
          [(2) Limitation.--The grantee shall not use more than 
        5 percent of Federal funds made available under this 
        section for non-programmatic costs to carry out this 
        section.

               [PART G--PATSY T. MINK FELLOWSHIP PROGRAM

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

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

       [PART H--IMPROVING COLLEGE ENROLLMENT BY SECONDARY SCHOOLS

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

  [(a) In General.--From the amounts appropriated under 
subsection (c), the Secretary shall award a grant to one 
nonprofit organization described in subsection (b) to enable 
the nonprofit organization--
          [(1) to make publicly available the year-to-year 
        postsecondary education enrollment rate trends of 
        secondary school students, disaggregated by secondary 
        school, in compliance with section 444 of the General 
        Education Provisions Act (commonly known as the 
        ``Family Educational Rights and Privacy Act of 1974'');
          [(2) to identify not less than 50 urban local 
        educational agencies and five States with significant 
        rural populations, each serving a significant 
        population of low-income students, and to carry out a 
        comprehensive assessment in the agencies and States of 
        the factors known to contribute to improved 
        postsecondary education enrollment rates, which factors 
        shall include--
                  [(A) the local educational agency's and 
                State's leadership strategies and capacities;
                  [(B) the secondary school curriculum and 
                class offerings of the local educational agency 
                and State;
                  [(C) the professional development used by the 
                local educational agency and the State to 
                assist teachers, guidance counselors, and 
                administrators in supporting the transition of 
                secondary students to postsecondary education;
                  [(D) secondary school student attendance and 
                other factors demonstrated to be associated 
                with enrollment into postsecondary education;
                  [(E) the use of data systems by the local 
                educational agency and the State to measure 
                postsecondary education enrollment rates and 
                the incentives in place to motivate the efforts 
                of faculty and students to improve student and 
                schoolwide outcomes; and
                  [(F) strategies to mobilize student leaders 
                to build a college-bound culture; and
          [(3) to provide comprehensive services to improve the 
        schoolwide postsecondary education enrollment rates of 
        each of not less than ten local educational agencies 
        and States, with the federally funded portion of each 
        project declining by not less than 20 percent each year 
        beginning in the second year of the comprehensive 
        services, that--
                  [(A) participated in the needs assessment 
                described in paragraph (2); and
                  [(B) demonstrated a willingness and 
                commitment to improving the postsecondary 
                education enrollment rates of the local 
                educational agency or State, respectively.
  [(b) Grant Recipient Criteria.--The recipient of the grant 
awarded under subsection (a) shall be a nonprofit organization 
with demonstrated expertise--
          [(1) in increasing schoolwide postsecondary 
        enrollment rates in low-income communities nationwide 
        by providing curriculum, training, and technical 
        assistance to secondary school staff and student peer 
        influencers; and
          [(2) in a postsecondary education transition data 
        management system.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

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

[SEC. 811. PURPOSE.

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

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

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

[SEC. 813. GRANTS AUTHORIZED.

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

[SEC. 814. STATE TASK FORCE ESTABLISHMENT.

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

[SEC. 815. STATE TASK FORCE ACTIVITIES.

  [(a) Activities.--The State Task Force shall--
          [(1) coordinate and communicate regularly with the 
        State Advisory Council on Early Care and Education 
        (hereafter in this part referred to as ``State Advisory 
        Council'') or a similar State entity charged with 
        creating a comprehensive system of early care and 
        education in the State, for the purposes of--
                  [(A) integrating recommendations for early 
                childhood professional development and career 
                activities into the plans of the State Advisory 
                Council; and
                  [(B) assisting in the implementation of 
                professional development and career activities 
                that are consistent with the plans described in 
                subparagraph (A);
          [(2) conduct a review of opportunities for and 
        barriers to high-quality professional development, 
        training, and higher education degree programs, in 
        early childhood development and learning, including a 
        periodic statewide survey concerning the demographics 
        of individuals working in early childhood education 
        programs in the State, which survey shall include 
        information disaggregated by--
                  [(A) race, gender, and ethnicity;
                  [(B) compensation levels;
                  [(C) type of early childhood education 
                program setting;
                  [(D) specialized knowledge of child 
                development;
                  [(E) years of experience in an early 
                childhood education program;
                  [(F) attainment of--
                          [(i) academic credit for coursework;
                          [(ii) an academic degree;
                          [(iii) a credential;
                          [(iv) licensure; or
                          [(v) certification in early childhood 
                        education; and
                  [(G) specialized knowledge in the education 
                of children with limited English proficiency 
                and students with disabilities; and
          [(3) develop a plan for a comprehensive statewide 
        professional development and career system for 
        individuals working in early childhood education 
        programs or for early childhood education providers, 
        which plan may include--
                  [(A) methods of providing outreach to early 
                childhood education program staff, directors, 
                and administrators, including methods for how 
                outreach is provided to non-English speaking 
                providers, in order to enable the providers to 
                be aware of opportunities and resources under 
                the statewide plan;
                  [(B) developing a unified data collection and 
                dissemination system for early childhood 
                education training, professional development, 
                and higher education programs;
                  [(C) increasing the participation of early 
                childhood educators in high-quality training 
                and professional development by assisting in 
                paying the costs of enrollment in and 
                completion of such training and professional 
                development courses;
                  [(D) increasing the participation of early 
                childhood educators in undergraduate and 
                graduate education programs leading to degrees 
                in early childhood education by providing 
                assistance to pay the costs of enrollment in 
                and completion of such programs, which 
                assistance--
                          [(i) shall only be provided to an 
                        individual who--
                                  [(I) in the case of an 
                                individual pursuing an 
                                undergraduate or graduate 
                                degree, enters into an 
                                agreement under which the 
                                individual agrees to work, for 
                                a reasonable number of years 
                                after receiving such a degree, 
                                in an early childhood education 
                                program that is located in a 
                                low-income area; and
                                  [(II) has a family income 
                                equal to or less than the 
                                annually adjusted national 
                                median family income as 
                                determined by the Bureau of the 
                                Census; and
                          [(ii) shall be provided in an amount 
                        that does not exceed $17,500;
                  [(E) supporting professional development 
                activities and a career lattice for a variety 
                of early childhood professional roles with 
                varying professional qualifications and 
                responsibilities for early childhood education 
                personnel, including strategies to enhance the 
                compensation of such personnel;
                  [(F) supporting articulation agreements 
                between two- and four-year public and private 
                institutions of higher education and mechanisms 
                to transform other training, professional 
                development, and experience into academic 
                credit;
                  [(G) developing mentoring and coaching 
                programs to support new educators in and 
                directors of early childhood education 
                programs;
                  [(H) providing career development advising 
                with respect to the field of early childhood 
                education, including informing an individual 
                regarding--
                          [(i) entry into and continuing 
                        education requirements for professional 
                        roles in the field;
                          [(ii) available financial assistance 
                        for postsecondary education; and
                          [(iii) professional development and 
                        career advancement in the field;
                  [(I) enhancing the capacity and quality of 
                faculty and coursework in postsecondary 
                programs that lead to an associate, 
                baccalaureate, or graduate degree in early 
                childhood education;
                  [(J) consideration of the availability of on-
                line graduate level professional development 
                offered by institutions of higher education 
                with experience and demonstrated expertise in 
                establishing programs in child development, in 
                order to improve the skills and expertise of 
                individuals working in early childhood 
                education programs; and
                  [(K) developing or enhancing a system of 
                quality assurance with respect to the early 
                childhood education professional development 
                and career system, including standards or 
                qualifications for individuals and entities who 
                offer training and professional development in 
                early childhood education.
  [(b) Public Hearings.--The State Task Force shall hold public 
hearings and provide an opportunity for public comment on the 
activities described in the statewide plan described in 
subsection (a)(3).
  [(c) Periodic Review.--The State Task Force shall meet 
periodically to review implementation of the statewide plan and 
to recommend any changes to the statewide plan the State Task 
Force determines necessary.

[SEC. 816. STATE APPLICATION AND REPORT.

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

[SEC. 817. EVALUATIONS.

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

[SEC. 818. AUTHORIZATION OF APPROPRIATIONS.

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

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

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

  [(a) Purpose.--The purposes of this section are--
          [(1) to develop or expand programs for the 
        development of professionals in the fields of science, 
        technology, engineering, and mathematics; and
          [(2) to focus resources on meeting the educational 
        and cultural needs of Alaska Natives and Native 
        Hawaiians.
  [(b) Definitions.--In this section:
          [(1) Alaska native.--The term ``Alaska Native'' has 
        the meaning given such term in section 6306 of the 
        Elementary and Secondary Education Act of 1965.
          [(2) Eligible partnership.--The term ``eligible 
        partnership'' means a partnership that includes--
                  [(A) one or more colleges, schools, or 
                departments of engineering;
                  [(B) one or more colleges of science or 
                mathematics;
                  [(C) one or more institutions of higher 
                education that offer two-year degrees; and
                  [(D) one or more private entities that--
                          [(i) conduct career awareness 
                        activities showcasing local technology 
                        professionals;
                          [(ii) encourage students to pursue 
                        education in science, technology, 
                        engineering, and mathematics from 
                        elementary school through postsecondary 
                        education, and careers in those fields, 
                        with the assistance of local technology 
                        professionals;
                          [(iii) develop internships, 
                        apprenticeships, and mentoring programs 
                        in partnership with relevant 
                        industries; and
                          [(iv) assist with placement of 
                        interns and apprentices.
          [(3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given such term in section 101(a).
          [(4) Native hawaiian.--The term ``Native Hawaiian'' 
        has the meaning given the term in section 6207 of the 
        Elementary and Secondary Education Act of 1965.
  [(c) Grant Authorized.--From the amounts appropriated to 
carry out this section under subsection (i), the Secretary is 
authorized to award a grant to an eligible partnership to 
enable the eligible partnership to expand programs for the 
development of science, technology, engineering, or mathematics 
professionals, from elementary school through postsecondary 
education, including existing programs for Alaska Native and 
Native Hawaiian students.
  [(d) Uses of Funds.--Grant funds under this section shall be 
used for one or more of the following:
          [(1) Development or implementation of cultural, 
        social, or educational transition programs to assist 
        students to transition into college life and academics 
        in order to increase such students' retention rates in 
        the fields of science, technology, engineering, or 
        mathematics, with a focus on Alaska Native or Native 
        Hawaiian students.
          [(2) Development or implementation of academic 
        support or supplemental educational programs to 
        increase the graduation rates of students in the fields 
        of science, technology, engineering, or mathematics, 
        with a focus on Alaska Native and Native Hawaiian 
        students.
          [(3) Development or implementation of internship 
        programs, carried out in coordination with educational 
        institutions and private entities, to prepare students 
        for careers in the fields of science, technology, 
        engineering, or mathematics, with a focus on programs 
        that serve Alaska Native or Native Hawaiian students.
          [(4) Such other activities as are consistent with the 
        purpose of this section.
  [(e) Application.--Each eligible partnership that desires a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
  [(f) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible partnership that, 
on the day before the date of enactment of theHigher Education 
Opportunity Act, provides one or more programs in which 30 
percent or more of the program participants are Alaska Native 
or Native Hawaiian.
  [(g) Period of Grant.--A grant under this section shall be 
awarded for a period of five years.
  [(h) Evaluation and Report.--Each eligible partnership that 
receives a grant under this section shall conduct an evaluation 
to determine the effectiveness of the programs funded under the 
grant and shall provide a report regarding the evaluation to 
the Secretary not later than six months after the end of the 
grant period.
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

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

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

  [(a) Grants Authorized.--From the amounts appropriated under 
subsection (i), the Secretary is authorized to award grants in 
accordance with this section, on a competitive basis, to 
eligible institutions to enable the institutions to develop 
programs to increase the persistence and success of low-income 
college students.
  [(b) Applications.--
          [(1) In general.--An eligible institution seeking a 
        grant under this section shall submit an application to 
        the Secretary at such time, in such manner, and 
        containing such information as the Secretary may 
        require. An eligible institution may submit an 
        application to receive a grant under subsection (c) or 
        (d) or both.
          [(2) Evaluation condition.--Each eligible institution 
        seeking a grant under this section shall agree to 
        participate in the evaluation described in subsection 
        (f).
          [(3) Priority for replication of evidence-based 
        policies and practices.--In awarding grants for the 
        program under subsection (d), the Secretary shall give 
        priority to applications submitted by eligible 
        institutions that propose to replicate policies and 
        practices that have proven effective in increasing 
        persistence and degree completion by low-income 
        students or students in need of developmental 
        education.
  [(c) Pilot Program To Increase Persistence and Success in 
Community Colleges.--
          [(1) Definitions.--In this subsection:
                  [(A) Eligible institution.--The term 
                ``eligible institution'' means an institution 
                of higher education, as defined in section 101, 
                that provides a one- or two-year program of 
                study leading to a degree or certificate.
                  [(B) Eligible student.--The term ``eligible 
                student'' means a student who--
                          [(i) is eligible to receive 
                        assistance under section 401;
                          [(ii) is enrolled at least half-time;
                          [(iii) is not younger than age 19;
                          [(iv) is the parent of at least one 
                        dependent child, which dependent child 
                        is age 18 or younger;
                          [(v) has a secondary school diploma 
                        or its recognized equivalent; and
                          [(vi) does not have a degree or 
                        certificate from an institution of 
                        higher education.
          [(2) Uses of funds.--
                  [(A) Support.--The Secretary shall award 
                grants under this subsection to eligible 
                institutions to enable such institutions to 
                provide additional monetary and nonmonetary 
                support to eligible students to enable the 
                eligible students to maintain enrollment and 
                complete degree or certificate programs.
                  [(B) Required uses.--Each eligible 
                institution receiving a grant under this 
                subsection shall use the grant funds--
                          [(i) to provide scholarships in 
                        accordance with paragraph (3); and
                          [(ii) to provide counseling services 
                        in accordance with paragraph (4).
                  [(C) Allowable uses of funds.--Grant funds 
                provided under this subsection may be used--
                          [(i) to conduct outreach to make 
                        students aware of the scholarships and 
                        counseling services available under 
                        this subsection and to encourage the 
                        students to participate in the program 
                        assisted under this subsection; and
                          [(ii) to provide incentives of $20 or 
                        less to applicants who complete the 
                        process of applying for assistance 
                        under this subsection, as compensation 
                        for the student's time.
          [(3) Scholarship requirements.--
                  [(A) In general.--Each scholarship awarded 
                under this subsection shall--
                          [(i) be awarded for one academic year 
                        consisting of two semesters or the 
                        equivalent;
                          [(ii) require the student to 
                        maintain, during the scholarship 
                        period, at least half-time enrollment 
                        and at least a 2.0 grade point average 
                        or the equivalent;
                          [(iii) be awarded in the amount of 
                        $1,000 for each of two semesters 
                        (prorated for quarters or other 
                        equivalents), or $2,000 for an academic 
                        year;
                          [(iv) not exceed the student's cost 
                        of attendance, as defined in section 
                        472; and
                          [(v) be paid, for each of the two 
                        semesters, in increments of--
                                  [(I) $250 upon enrollment 
                                (prorated for quarters or other 
                                equivalents);
                                  [(II) $250 upon passing 
                                midterm examinations or 
                                comparable assessments 
                                (prorated for quarters or other 
                                equivalents); and
                                  [(III) $500 upon passing 
                                courses (prorated for quarters 
                                or other equivalents).
                  [(B) Number.--An eligible institution may 
                award an eligible student not more than two 
                scholarships under this subsection.
          [(4) Counseling services.--
                  [(A) In general.--Each eligible institution 
                receiving a grant under this subsection shall 
                use the grant funds to provide students at the 
                institution with a counseling staff dedicated 
                to students participating in the program under 
                this subsection. Each such counselor shall--
                          [(i) have a caseload of less than 125 
                        students;
                          [(ii) use a proactive, team-oriented 
                        approach to counseling;
                          [(iii) hold a minimum of two meetings 
                        with each student each semester; and
                          [(iv) provide referrals to and 
                        follow-up with other student services 
                        staff, including financial aid and 
                        career services.
                  [(B) Counseling services availability.--The 
                counseling services provided under this 
                subsection shall be available to participating 
                students during the daytime and evening hours.
  [(d) Student Success Grant Pilot Program.--
          [(1) Definitions.--
                  [(A) Eligible institution.--In this 
                subsection, the term ``eligible institution'' 
                means an institution of higher education in 
                which, during the three-year period preceding 
                the year in which the institution is applying 
                for a grant under this subsection, an average 
                of not less than 50 percent of the 
                institution's entering first-year students are 
                assessed as needing developmental courses to 
                bring reading, writing, or mathematics skills 
                up to college level.
                  [(B) Eligible student.--In this subsection, 
                the term ``eligible student'' means a student 
                who--
                          [(i) is eligible to receive 
                        assistance under section 401;
                          [(ii) is a first-year student at the 
                        time of entering the program;
                          [(iii) is assessed as needing 
                        developmental education to bring 
                        reading, writing, or mathematics skills 
                        up to college level; and
                          [(iv) is selected by an eligible 
                        institution to participate in the 
                        program.
          [(2) Student success grant amount.--The Secretary 
        shall award grants under this subsection to eligible 
        institutions in an amount equal to $1,500 multiplied by 
        the number of students the institution selects to 
        participate in the program in such year. An institution 
        shall not select more than 200 students to participate 
        in the program under this subsection during such year.
          [(3) Required uses.--An eligible institution that 
        receives a grant under this subsection shall use the 
        grant funds to assign a student success coach to each 
        first-year student participating in the program to 
        provide intensive career and academic advising, ongoing 
        personal help in navigating college services (such as 
        financial aid and registration), and assistance in 
        connecting to community resources that can help 
        students overcome family and personal challenges to 
        success. Student success coaches--
                  [(A) shall work with not more than 50 new 
                students during any academic period;
                  [(B) may be employees of academic 
                departments, student services offices, 
                community-based organizations, or other 
                entities as determined appropriate by the 
                institution; and
                  [(C) shall meet with each eligible student 
                selected for the program before registration 
                for courses.
          [(4) Allowable uses.--An eligible institution that 
        receives a grant under this subsection may use the 
        grant funds to provide services and program innovations 
        for students participating in the program, including 
        the following:
                  [(A) College and career success courses 
                provided at no charge to participating 
                students. These courses may cover college 
                success topics, including how to take notes, 
                how to study, how to take tests, and how to 
                budget time, and may also include a substantial 
                career exploration component. Institutions may 
                use such courses to help students develop a 
                college and career success plan, so that by the 
                end of the first semester the students have a 
                clear sense of their career goals and what 
                classes to take to achieve such goals.
                  [(B) Work-study jobs with private employers 
                in the students' fields of study.
                  [(C) Learning communities that ensure that 
                students participating in the program are 
                clustered together for at least two courses 
                beginning in the first semester after enrolling 
                and have other opportunities to create and 
                maintain bonds that allow them to provide 
                academic and social support to each other.
                  [(D) Curricular redesign, which may include 
                such innovations as blended or accelerated 
                remediation classes that help student success 
                grant recipients to attain college-level 
                reading, writing, or math skills (or a 
                combination thereof) more rapidly than 
                traditional remediation formats allow, and 
                intensive skills refresher classes, offered 
                prior to each semester, to help students who 
                have tested into remedial coursework to reach 
                entry level assessment scores for the 
                postsecondary programs they wish to enter.
                  [(E) Instructional support, such as learning 
                labs, supplemental instruction, and tutoring.
                  [(F) Assistance with support services, such 
                as child care and transportation.
          [(5) Required non-federal share.--Each institution 
        participating in the program under this subsection 
        shall provide a non-Federal share of 25 percent of the 
        amount of the grant to carry out the activities of the 
        program. The non-Federal share under this subsection 
        may be provided in cash or in kind.
  [(e) Period of Grant.--The Secretary may award a grant under 
subsection (c) or (d) of this section for a period of five 
years.
  [(f) Technical Assistance and Evaluation.--
          [(1) Contractor.--From the funds appropriated under 
        this section, the Secretary shall enter into a contract 
        with one or more private, nonprofit entities to provide 
        technical assistance to grantees and to conduct the 
        evaluations required under paragraph (3).
          [(2) Evaluations.--The evaluations required under 
        paragraph (3) shall be conducted by entities that are 
        capable of designing and carrying out independent 
        evaluations that identify the impact of the activities 
        carried out by eligible institutions under this section 
        on improving persistence and success of student 
        participants under this section.
          [(3) Conduct of evaluations.--The Secretary shall 
        conduct an evaluation of the impact of the persistence 
        and success grant programs as follows:
                  [(A) Program to increase persistence in 
                community colleges.--The evaluation of the 
                program under subsection (c) shall be conducted 
                using a random assignment research design with 
                the following requirements:
                          [(i) When students are recruited for 
                        the program, all students will be told 
                        about the program and the evaluation.
                          [(ii) Baseline data will be collected 
                        from all applicants for assistance 
                        under subsection (c).
                          [(iii) Students will be assigned 
                        randomly to two groups, which will 
                        consist of--
                                  [(I) a program group that 
                                will receive the scholarship 
                                and the additional counseling 
                                services; and
                                  [(II) a control group that 
                                will receive whatever regular 
                                financial aid and counseling 
                                services are available to all 
                                students at the institution of 
                                higher education.
                  [(B) Student success grant program.--Eligible 
                institutions receiving a grant to carry out the 
                program under subsection (d) shall work with 
                the evaluator to track persistence and 
                completion outcomes for students in such 
                program, specifically the proportion of these 
                students who take and complete developmental 
                education courses, the proportion who take and 
                complete college-level coursework, and the 
                proportion who complete certificates and 
                degrees. The data shall be broken down by 
                gender, race, ethnicity, and age and the 
                evaluator shall assist institutions in 
                analyzing these data to compare program 
                participants to comparable nonparticipants, 
                using statistical techniques to control for 
                differences in the groups.
  [(g) Report.--The Secretary shall--
          [(1) provide a report to the authorizing committees 
        that includes the evaluation and information on best 
        practices and lessons learned during the pilot programs 
        described in this section; and
          [(2) disseminate the report to the public by making 
        the report available on the Department's website.
  [(h) Supplement Not Supplant.--Funds made available under 
this section shall be used to supplement and not supplant other 
Federal, State, and local funds available to the institution to 
carrying out the activities described in subsections (c) and 
(d).
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years. The Secretary may use not more than 
two percent of the amounts appropriated to provide the 
technical assistance and conduct the evaluations required under 
subsection (f).

        [PART L--STUDENT SAFETY AND CAMPUS EMERGENCY MANAGEMENT

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

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

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

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

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

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

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

  [(a) Program Authorized.--The Secretary, in consultation with 
the Secretary of Homeland Security, is authorized to establish 
an Education Disaster and Emergency Relief Loan Program for 
institutions of higher education impacted by a major disaster 
or emergency declared by the President.
  [(b) Use of Assistance.--The Secretary shall, subject to the 
availability of appropriations, provide loans under this 
section to institutions of higher education after the 
declaration of a major disaster or emergency by the President. 
Loan funds provided under this section may be used for 
construction, replacement, renovation, and operations costs 
resulting from a major disaster or emergency declared by the 
President.
  [(c) Application Requirements.--To be considered for a loan 
under this section, an institution of higher education shall--
          [(1) submit a financial statement and other 
        appropriate data, documentation, or evidence requested 
        by the Secretary that indicates that the institution 
        incurred losses resulting from the impact of a major 
        disaster or emergency declared by the President, and 
        the monetary amount of such losses;
          [(2) demonstrate that the institution had appropriate 
        insurance policies prior to the major disaster or 
        emergency and filed claims, as appropriate, related to 
        the major disaster or emergency; and
          [(3) demonstrate that the institution attempted to 
        minimize the cost of any losses by pursuing collateral 
        source compensation from the Federal Emergency 
        Management Agency prior to seeking a loan under this 
        section, except that an institution of higher education 
        shall not be required to receive collateral source 
        compensation from the Federal Emergency Management 
        Agency prior to being eligible for a loan under this 
        section.
  [(d) Audit.--The Secretary may audit a financial statement 
submitted under subsection (c) and an institution of higher 
education shall provide any information that the Secretary 
determines necessary to conduct such an audit.
  [(e) Reduction in Loan Amounts.--To determine the amount of a 
loan to make available to an institution of higher education 
under this section, the Secretary shall calculate the monetary 
amount of losses incurred by such institution as a result of a 
major disaster or emergency declared by the President, and 
shall reduce such amount by the amount of collateral source 
compensation the institution has already received from 
insurance, the Federal Emergency Management Agency, and the 
Small Business Administration.
  [(f) Establishment of Loan Program.--Prior to disbursing any 
loans under this section, the Secretary shall prescribe 
regulations that establish the Education Disaster and Emergency 
Relief Loan Program, including--
          [(1) terms for the loan program;
          [(2) procedures for an application for a loan;
          [(3) minimum requirements for the loan program and 
        for receiving a loan, including--
                  [(A) online forms to be used in submitting a 
                request for a loan;
                  [(B) information to be included in such 
                forms; and
                  [(C) procedures to assist in filing and 
                pursuing a loan; and
          [(4) any other terms and conditions the Secretary may 
        prescribe after taking into consideration the structure 
        of other existing capital financing loan programs under 
        this Act.
  [(g) Definitions.--In this section:
          [(1) Institution affected by a gulf hurricane 
        disaster.--The term ``institution affected by a Gulf 
        hurricane disaster'' means an institution of higher 
        education that--
                  [(A) is located in an area affected by a Gulf 
                hurricane disaster; and
                  [(B) is able to demonstrate that the 
                institution--
                          [(i) incurred physical damage 
                        resulting from the impact of a Gulf 
                        hurricane disaster; and
                          [(ii) was not able to fully reopen in 
                        existing facilities or to fully reopen 
                        to the pre-hurricane levels for 30 days 
                        or more on or after August 29, 2005.
          [(2) Area affected by a gulf hurricane disaster; gulf 
        hurricane disaster.--The terms ``area affected by a 
        Gulf hurricane disaster'' and ``Gulf hurricane 
        disaster'' have the meanings given such terms in 
        section 209 of the Higher Education Hurricane Relief 
        Act of 2005 (Public Law 109-148, 119 Stat. 2808).
          [(3) Emergency.--The term ``emergency'' has the 
        meaning given such term in section 102(1) of the Robert 
        T. Stafford Disaster Relief and Emergency Assistance 
        Act (42 U.S.C. 5122(1)).
          [(4) Institutions of higher education.--The term 
        ``institution of higher education'' has the meaning 
        given such term in section 101.
          [(5) Major disaster.--The term ``major disaster'' has 
        the meaning given the term in section 102(2) of the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5122(2)).
  [(h) Effective Date.--Loans provided to institutions of 
higher education pursuant to this section shall be available 
only with respect to major disasters or emergencies declared by 
the President that occur after the date of the enactment of 
theHigher Education Opportunity Act, except that loans may be 
provided pursuant to this section to an institution affected by 
a Gulf hurricane disaster with respect to such disaster.
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

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

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

[SEC. 826. RULE OF CONSTRUCTION.

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

                          [PART M--LOW TUITION

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

  [(a) Rewards for Low Tuition.--
          [(1) Grants.--From funds made available under 
        subsection (e), the Secretary shall award grants to 
        institutions of higher education that, for academic 
        year 2009-2010 or any succeeding academic year--
                  [(A) have an annual tuition and fee increase, 
                expressed as a percentage change, for the most 
                recent academic year for which satisfactory 
                data is available, that is in the lowest 20 
                percent of such increases for each category 
                described in subsection (b);
                  [(B) are public institutions of higher 
                education that have tuition and fees that are 
                in the lowest quartile of institutions in each 
                category described in subsection (b)(1), 
                (b)(4), or (b)(7); or
                  [(C) are public institutions of higher 
                education that have a tuition and fee increase 
                of less than $600 for a first-time, full-time 
                undergraduate student.
          [(2) Use of funds.--Funds awarded to an institution 
        of higher education under paragraph (1) shall be 
        distributed by the institution in the form of need-
        based grant aid to students who are eligible for 
        Federal Pell Grants, except that no student shall 
        receive an amount under this section that would cause 
        the amount of total financial aid received by such 
        student to exceed the cost of attendance of the 
        institution.
  [(b) Categories of Institutions.--The categories of 
institutions described in subsection (a) shall be the 
following:
          [(1) four-year public institutions of higher 
        education;
          [(2) four-year private, nonprofit institutions of 
        higher education;
          [(3) four-year private, for-profit institutions of 
        higher education;
          [(4) two-year public institutions of higher 
        education;
          [(5) two-year private, nonprofit institutions of 
        higher education;
          [(6) two-year private, for-profit institutions of 
        higher education;
          [(7) less than two-year public institutions of higher 
        education;
          [(8) less than two-year private, nonprofit 
        institutions of higher education; and
          [(9) less than two-year private, for-profit 
        institutions of higher education.
  [(c) Rewards for Guaranteed Tuition.--
          [(1) Bonus.--For each institution of higher education 
        that the Secretary determines complies with the 
        requirements of paragraph (2) or (3) of this 
        subsection, the Secretary shall provide to such 
        institution a bonus amount. Such institution shall 
        award the bonus amount in the form of need-based aid 
        first to students who are eligible for Federal Pell 
        Grants who were in attendance at the institution during 
        the award year that such institution satisfied the 
        eligibility criteria for maintaining low tuition and 
        fees, then to students who are eligible for Federal 
        Pell Grants who were not in attendance at the 
        institution during such award year.
          [(2) Four-year institutions.--An institution of 
        higher education that provides a program of instruction 
        for which it awards a bachelor's degree complies with 
        the requirements of this paragraph if--
                  [(A) for a public institution of higher 
                education, such institution's tuition and fees 
                are in the lowest quartile of institutions in 
                the same category as described under subsection 
                (b); or
                  [(B) for any institution of higher education, 
                such institution guarantees that for any 
                academic year (or the equivalent) beginning on 
                or after July 1, 2009, and for each of the four 
                succeeding continuous academic years, the 
                tuition and fees charged to an undergraduate 
                student will not exceed--
                          [(i) for a public institution of 
                        higher education, $600 per year for a 
                        full-time undergraduate student; or
                          [(ii) for any other institution of 
                        higher education--
                                  [(I) the amount that the 
                                student was charged for an 
                                academic year at the time the 
                                student first enrolled in the 
                                institution of higher 
                                education, plus
                                  [(II) the percentage change 
                                in tuition and fees at the 
                                institution for the three most 
                                recent academic years for which 
                                data is available, multiplied 
                                by the amount determined under 
                                subclause (I).
          [(3) Less-than four-year institutions.--An 
        institution of higher education that does not provide a 
        program of instruction for which it awards a bachelor's 
        degree complies with the requirements of this paragraph 
        if--
                  [(A) for a public institution of higher 
                education, such institution's tuition is in the 
                lowest quartile of institutions in the same 
                category as described under subsection (b); or
                  [(B) for any institution of higher education, 
                such institution guarantees that for any 
                academic year (or the equivalent) beginning on 
                or after July 1, 2009, and for each of the 1.5 
                succeeding continuous academic years, the 
                tuition and fees charged to an undergraduate 
                student will not exceed--
                          [(i) for a public institution of 
                        higher education, $600 per year for a 
                        full-time undergraduate student; or
                          [(ii) for any other institution of 
                        higher education--
                                  [(I) the amount that the 
                                student was charged for an 
                                academic year at the time the 
                                student first enrolled in the 
                                institution of higher 
                                education, plus
                                  [(II) the percentage change 
                                in tuition and fees at the 
                                institution for the three most 
                                recent academic years for which 
                                data is available, multiplied 
                                by the amount determined under 
                                subclause (I).
  [(d) Definitions.--In this section, the terms ``tuition and 
fees'' and ``net price'' have the meaning given to such terms 
in section 132 of this Act.
  [(e) Authorization.--There are authorized to be appropriated 
to carry out this section such sums as may be necessary for 
fiscal year 2009 and each of the five succeeding fiscal years.

                     [PART N--COOPERATIVE EDUCATION

[SEC. 831. STATEMENT OF PURPOSE; DEFINITION.

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

[SEC. 832. RESERVATIONS.

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

[SEC. 833. GRANTS FOR COOPERATIVE EDUCATION.

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

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

  [(a) Authorization.--From the amounts appropriated under 
section 835, the Secretary is authorized, in accordance with 
the provisions of this section, to make grants and enter into 
contracts--
          [(1) from the amounts available in each fiscal year 
        under section 832(a)(3), for the conduct of 
        demonstration projects designed to demonstrate or 
        determine the effectiveness of innovative methods of 
        cooperative education;
          [(2) from the amounts available in each fiscal year 
        under section 832(a)(4), for the conduct of training 
        and resource centers designed to--
                  [(A) train personnel in the field of 
                cooperative education;
                  [(B) improve materials used in cooperative 
                education programs if such improvement is 
                conducted in conjunction with other activities 
                described in this paragraph;
                  [(C) provide technical assistance to 
                institutions of higher education to increase 
                the potential of the institution to continue to 
                conduct a cooperative education program without 
                Federal assistance;
                  [(D) encourage model cooperative education 
                programs that furnish education and training in 
                occupations in which there is a national need;
                  [(E) support partnerships under which an 
                institution carrying out a comprehensive 
                cooperative education program joins with one or 
                more institutions of higher education in order 
                to--
                          [(i) assist the institution that is 
                        not the institution carrying out the 
                        cooperative education program to 
                        develop and expand an existing program 
                        of cooperative education; or
                          [(ii) establish and improve or expand 
                        comprehensive cooperative education 
                        programs; and
                  [(F) encourage model cooperative education 
                programs in the fields of science and 
                mathematics for women and minorities who are 
                underrepresented in such fields; and
          [(3) from the amounts available in each fiscal year 
        under section 832(a)(5), for the conduct of research 
        relating to cooperative education.
  [(b) Administrative Provision.--
          [(1) In general.--To carry out this section, the 
        Secretary may--
                  [(A) make grants to or contracts with 
                institutions of higher education or consortia 
                of such institutions; and
                  [(B) make grants to or contracts with other 
                public or private nonprofit agencies or 
                organizations, whenever such grants or 
                contracts will contribute to the objectives of 
                this section.
          [(2) Limitation.--
                  [(A) Contracts with institutions of higher 
                education.--The Secretary may use not more than 
                three percent of the amount appropriated to 
                carry out this section in each fiscal year to 
                enter into contracts described in paragraph 
                (1)(A).
                  [(B) Contracts with other agencies or 
                organizations.--The Secretary may use not more 
                than three percent of the amount appropriated 
                to carry out this section in each fiscal year 
                to enter into contracts described in paragraph 
                (1)(B).
  [(c) Supplement Not Supplant.--A recipient of a grant or 
contract under this section may use the funds provided only to 
supplement funds made available from non-Federal sources to 
carry out the activities supported by such grant or contract, 
and in no case to supplant such funds from non-Federal sources.

[SEC. 835. AUTHORIZATION OF APPROPRIATIONS.

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

                  [PART O--COLLEGE PARTNERSHIP GRANTS

[SEC. 841. COLLEGE PARTNERSHIP GRANTS AUTHORIZED.

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

                        [PART P--JOBS TO CAREERS

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

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

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

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

  [(a) Purposes.--The purposes of this section are--
          [(1) to increase enrollment and graduation rates of 
        secondary school graduates and nontraditional students 
        from rural areas at two-year and four-year institutions 
        of higher education, and their articulation from two-
        year degree programs into four-year degree programs; 
        and
          [(2) to promote economic growth and development in 
        rural America through partnership grants to consortia 
        of rural-serving institutions of higher education, 
        local educational agencies, and regional employers.
  [(b) Definitions.--For the purposes of this section:
          [(1) Rural-serving institution of higher education.--
        The term ``rural-serving institution of higher 
        education'' means an institution of higher education 
        that primarily serves rural areas.
          [(2) Rural area.--The term ``rural area'' means an 
        area that is defined, identified, or otherwise 
        recognized as rural by a governmental agency of the 
        State in which the area is located.
          [(3) Nontraditional student.--The term 
        ``nontraditional student'' means an individual who--
                  [(A) delays enrollment in an institution of 
                higher education by three or more years after 
                secondary school graduation;
                  [(B) attends an institution of higher 
                education part-time; or
                  [(C) attends an institution of higher 
                education and--
                          [(i) works full-time;
                          [(ii) is an independent student, as 
                        defined in section 480;
                          [(iii) has one or more dependents 
                        other than a spouse;
                          [(iv) is a single parent; or
                          [(v) does not have a secondary school 
                        diploma or the recognized equivalent of 
                        such a diploma.
          [(4) Regional employer.--The term ``regional 
        employer'' means an employer within a rural area.
  [(c) Partnership.--
          [(1) Required partners.--A rural-serving institution 
        of higher education, or a consortium of rural-serving 
        institutions of higher education, that receives a grant 
        under this section shall carry out the activities of 
        the grant in partnership with--
                  [(A) one or more local educational agencies 
                serving a rural area; and
                  [(B) one or more regional employers or local 
                boards (as such term is defined in section 3 of 
                the Workforce Innovation and Opportunity Act) 
                serving a rural area.
          [(2) Optional partners.--A rural-serving institution 
        of higher education, or a consortium of rural-serving 
        institutions of higher education, that receives a grant 
        under this section, may carry out the activities of the 
        grant in partnership with--
                  [(A) an educational service agency (as 
                defined in section 8101 of the Elementary and 
                Secondary Education Act of 1965); or
                  [(B) a nonprofit organization with 
                demonstrated expertise in rural education at 
                the secondary and postsecondary levels.
  [(d) Grants Authorized.--
          [(1) In general.--From amounts made available under 
        subsection (g), the Secretary is authorized to award 
        grants, on a competitive basis, to eligible rural-
        serving institutions of higher education or a 
        consortium of such institutions, to carry out the 
        activities described in subsection (f).
          [(2) Duration.--A grant awarded under this section 
        shall be awarded for a period not to exceed three 
        years.
          [(3) Maximum and minimum grants.--No grant awarded 
        under this section shall be less than $200,000.
          [(4) Special considerations.--In awarding grants 
        under this section, the Secretary shall give special 
        consideration to applications that demonstrate the most 
        potential and propose the most promising and innovative 
        approaches for--
                  [(A) increasing the percentage of graduates 
                of rural secondary schools attending rural-
                serving institutions of higher education;
                  [(B) meeting the employment needs of regional 
                employers with graduates of rural-serving 
                institutions of higher education; and
                  [(C) improving the health of the regional 
                economy of a rural area through a partnership 
                of local educational agencies serving the rural 
                area, rural-serving institutions of higher 
                education, and regional employers.
          [(5) Limitation.--A rural-serving institution of 
        higher education shall not receive more than one grant 
        under this section.
  [(e) Applications.--Each rural-serving institution of higher 
education desiring a grant under this section shall submit to 
the Secretary an application at such time, in such manner, and 
containing such information as the Secretary may reasonably 
require.
  [(f) Required Use of Funds.--A rural-serving institution of 
higher education that receives a grant under this section shall 
use grant funds for at least three of the following four 
purposes:
          [(1) To improve postsecondary enrollment rates for 
        rural secondary school students at rural-serving 
        institutions of higher education, which may include--
                  [(A) programs to provide students and 
                families with counseling related to applying 
                for postsecondary education, and Federal and 
                State financial assistance for postsecondary 
                education;
                  [(B) programs that provide students and 
                families of rural high schools access and 
                exposure to campuses, classes, programs, and 
                internships of rural-serving institutions of 
                higher education, including covering the cost 
                of transportation to and from such 
                institutions; and
                  [(C) other initiatives that assist students 
                and families in applying for and developing 
                interest in attending rural-serving 
                institutions of higher education.
          [(2) To increase enrollment rates of nontraditional 
        students in degree programs at rural-serving 
        institutions of higher education, which may include--
                  [(A) programs to provide nontraditional 
                students with counseling related to applying 
                for postsecondary education, and Federal and 
                State financial assistance for postsecondary 
                education;
                  [(B) community outreach initiatives to 
                encourage nontraditional students to enroll in 
                a rural-serving institution of higher 
                education; and
                  [(C) programs to improve the enrollment of 
                nontraditional students in two-year degree 
                programs and the transition of nontraditional 
                students articulating from two-year degree 
                programs to four-year degree programs.
          [(3) To create or strengthen academic programs at 
        rural-serving institutions of higher education to 
        prepare graduates to enter into high-need occupations 
        in the regional and local economies.
          [(4) To provide additional career training to 
        students of rural-serving institutions of higher 
        education in fields relevant to the regional economy.
  [(g) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as many 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

             [PART R--CAMPUS-BASED DIGITAL THEFT PREVENTION

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

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

                 [PART S--TRAINING FOR REALTIME WRITERS

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

  [(a) Authorization of Grant Program.--
          [(1) In general.--From the amounts appropriated to 
        carry out this section, the Secretary shall award 
        grants, on a competitive basis, to eligible entities 
        under paragraph (2) to promote training and placement 
        of individuals, including individuals who have 
        completed a court reporting training program, as 
        realtime writers in order to meet the requirements for 
        closed captioning of video programming set forth in 
        section 713 of the Communications Act of 1934 (47 
        U.S.C. 613) and the rules prescribed thereunder.
          [(2) Eligible entities.--For purposes of this 
        section, an eligible entity is a court reporting 
        program that--
                  [(A) has a curriculum capable of training 
                realtime writers qualified to provide 
                captioning services;
                  [(B) is accredited by an accrediting agency 
                or association recognized by the Secretary; and
                  [(C) is participating in student aid programs 
                under title IV.
          [(3) Priority in grants.--In determining whether to 
        make grants under this section, the Secretary shall 
        give a priority to eligible entities that, as 
        determined by the Secretary--
                  [(A) possess the most substantial capability 
                to increase their capacity to train realtime 
                writers;
                  [(B) demonstrate the most promising 
                collaboration with educational institutions, 
                businesses, labor organizations, or other 
                community groups having the potential to train 
                or provide job placement assistance to realtime 
                writers; or
                  [(C) propose the most promising and 
                innovative approaches for initiating or 
                expanding training or job placement assistance 
                efforts with respect to realtime writers.
          [(4) Duration of grant.--A grant under this section 
        shall be for a period of up to five years.
          [(5) Maximum amount of grant.--The amount of a grant 
        provided under this subsection to an eligible entity 
        may not exceed $1,500,000 for the period of the grant.
  [(b) Application.--
          [(1) In general.--To receive a grant under subsection 
        (a), an eligible entity shall submit an application to 
        the Secretary at such time and in such manner as the 
        Secretary may require. The application shall contain 
        the information set forth under paragraph (2).
          [(2) Information.--Information in the application of 
        an eligible entity for a grant under subsection (a) 
        shall include the following:
                  [(A) A description of the training and 
                assistance to be funded using the grant amount, 
                including how such training and assistance will 
                increase the number of realtime writers.
                  [(B) A description of performance measures to 
                be utilized to evaluate the progress of 
                individuals receiving such training and 
                assistance in matters relating to enrollment, 
                completion of training, and job placement and 
                retention.
                  [(C) A description of the manner in which the 
                eligible entity will ensure that recipients of 
                scholarships, if any, funded by the grant will 
                be employed and retained as realtime writers.
                  [(D) A description of the manner in which the 
                eligible entity intends to continue providing 
                the training and assistance to be funded by the 
                grant after the end of the grant period, 
                including any partnerships or arrangements 
                established for that purpose.
                  [(E) A description of how the eligible entity 
                will work with local boards (as defined in 
                section 101 of the Workforce Investment Act of 
                1998 (29 U.S.C. 2801)) to ensure that training 
                and assistance to be funded with the grant will 
                further local workforce goals, including the 
                creation of educational opportunities for 
                individuals who are from economically 
                disadvantaged backgrounds or are displaced 
                workers.
                  [(F) Additional information, if any, on the 
                eligibility of the eligible entity for priority 
                in the making of grants under subsection 
                (a)(3).
                  [(G) Such other information as the Secretary 
                may require.
  [(c) Use of Funds.--
          [(1) In general.--An eligible entity receiving a 
        grant under subsection (a) shall use the grant amount 
        for purposes relating to the recruitment, training and 
        assistance, and job placement of individuals, including 
        individuals who have completed a court reporting 
        training program, as realtime writers, including--
                  [(A) recruitment;
                  [(B) subject to paragraph (2), the provision 
                of scholarships;
                  [(C) distance learning;
                  [(D) further developing and implementing both 
                English and Spanish curricula to more 
                effectively train individuals in realtime 
                writing skills, and education in the knowledge 
                necessary for the delivery of high quality 
                closed captioning services;
                  [(E) mentoring students to ensure successful 
                completion of the realtime training and 
                providing assistance in job placement;
                  [(F) encouraging individuals with 
                disabilities to pursue a career in realtime 
                writing; and
                  [(G) the employment and payment of personnel 
                for the purposes described in this paragraph.
          [(2) Scholarships.--
                  [(A) Amount.--The amount of a scholarship 
                under paragraph (1)(B) shall be based on the 
                amount of need of the scholarship recipient for 
                financial assistance, as determined in 
                accordance with part F of title IV.
                  [(B) Agreement.--Each recipient of a 
                scholarship under paragraph (1)(B) shall enter 
                into an agreement with the school in which the 
                recipient is enrolled to provide realtime 
                writing services for the purposes described in 
                subsection (a)(1) for a period of time 
                appropriate (as determined by the Secretary) 
                for the amount of the scholarship received.
                  [(C) Coursework and employment.--The 
                Secretary shall establish requirements for 
                coursework and employment for recipients of 
                scholarships under paragraph (1)(B), including 
                requirements for repayment of scholarship 
                amounts in the event of failure to meet such 
                requirements for coursework and employment. The 
                Secretary may waive, in whole or in part, the 
                requirements for repayment of scholarship 
                amounts on the basis of economic conditions 
                which may affect the ability of scholarship 
                recipients to find work as realtime writers.
          [(3) Administrative costs.--The recipient of a grant 
        under this section may not use more than five percent 
        of the grant amount to pay administrative costs 
        associated with activities funded by the grant. The 
        Secretary shall use not more than five percent of the 
        amount available for grants under this section in any 
        fiscal year for administrative costs of the program.
          [(4) Supplement not supplant.--Grant amounts under 
        this section shall supplement and not supplant other 
        Federal or non-Federal funds of the grant recipient for 
        purposes of promoting the training and placement of 
        individuals as realtime writers.
  [(d) Report.--
          [(1) In general.--Each eligible entity receiving a 
        grant under subsection (a) shall submit to the 
        Secretary, at the end of the grant period, a report on 
        the activities of such entity with respect to the use 
        of grant amounts during the grant period.
          [(2) Report information.--Each report of an eligible 
        entity under paragraph (1) shall include--
                  [(A) an assessment by the entity of the 
                effectiveness of activities carried out using 
                such funds in increasing the number of realtime 
                writers, using the performance measures 
                submitted by the eligible entity in the 
                application for the grant under subsection 
                (b)(2); and
                  [(B) a description of the best practices 
                identified by the eligible entity for 
                increasing the number of individuals who are 
                trained, employed, and retained in employment 
                as realtime writers.
          [(3) Summaries.--The Secretary shall summarize the 
        reports submitted under paragraph (2) and make such 
        summary available on the Department's website.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

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

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

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

              [PART U--UNIVERSITY SUSTAINABILITY PROGRAMS

[SEC. 881. SUSTAINABILITY PLANNING GRANTS AUTHORIZED.

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

               [PART V--MODELING AND SIMULATION PROGRAMS

[SEC. 891. MODELING AND SIMULATION.

  [(a) Purpose; Definition.--
          [(1) Purpose.--The purpose of this section is to 
        promote the study of modeling and simulation at 
        institutions of higher education, through the 
        collaboration with new and existing programs, and 
        specifically to promote the use of technology in such 
        study through the creation of accurate models that can 
        simulate processes or recreate real life, by--
                  [(A) establishing a task force at the 
                Department of Education to raise awareness of 
                and define the study of modeling and 
                simulation;
                  [(B) providing grants to institutions of 
                higher education to develop new modeling and 
                simulation degree programs; and
                  [(C) providing grants for institutions of 
                higher education to enhance existing modeling 
                and simulation degree programs.
          [(2) Definition.--In this section, the term 
        ``modeling and simulation'' means a field of study 
        related to the application of computer science and 
        mathematics to develop a level of understanding of the 
        interaction of the parts of a system and of a system as 
        a whole.
  [(b) Establishment of Task Force.--
          [(1) In general.--Subject to the availability of 
        appropriations, the Secretary shall establish a task 
        force within the Department to study modeling and 
        simulation and to support the development of the 
        modeling and simulation field. The activities of such 
        task force shall include--
                  [(A) helping to define the study of modeling 
                and simulation (including the content of 
                modeling and simulation classes and programs);
                  [(B) identifying best practices for such 
                study;
                  [(C) identifying core knowledge and skills 
                that individuals who participate in modeling 
                and simulation programs should acquire; and
                  [(D) providing recommendations to the 
                Secretary with respect to--
                          [(i) the information described in 
                        subparagraphs (A) through (C); and
                          [(ii) a system by which grants under 
                        this section will be distributed.
          [(2) Task force membership.--The membership of the 
        task force under this subsection shall be composed of 
        representatives from--
                  [(A) institutions of higher education with 
                established modeling and simulation degree 
                programs;
                  [(B) the National Science Foundation;
                  [(C) Federal Government agencies that use 
                modeling and simulation extensively, including 
                the Department of Defense, the National 
                Institutes of Health, the Department of 
                Homeland Security, the Department of Health and 
                Human Services, the Department of Energy, and 
                the Department of Transportation;
                  [(D) private industries with a primary focus 
                on modeling and simulation;
                  [(E) national modeling and simulation 
                organizations; and
                  [(F) the Office of Science and Technology 
                Policy.
  [(c) Enhancing Modeling and Simulation at Institutions of 
Higher Education.--
          [(1) Enhancement grants authorized.--
                  [(A) In general.--The Secretary is authorized 
                to award grants, on a competitive basis, to 
                eligible institutions to enhance modeling and 
                simulation degree programs at such eligible 
                institutions.
                  [(B) Duration of grant.--A grant awarded 
                under this subsection shall be awarded for a 
                three-year period, and such grant period may be 
                extended for not more than two years if the 
                Secretary determines that an eligible 
                institution has demonstrated success in 
                enhancing the modeling and simulation degree 
                program at such eligible institution.
                  [(C) Minimum grant amount.--Subject to the 
                availability of appropriations, a grant awarded 
                to an eligible institution under this 
                subsection shall not be less than $750,000.
                  [(D) Non-federal share.--Each eligible 
                institution receiving a grant under this 
                subsection shall provide, from non-Federal 
                sources, in cash or in-kind, an amount equal to 
                25 percent of the amount of the grant to carry 
                out the activities supported by the grant. The 
                Secretary may waive the non-Federal share 
                requirement under this subparagraph for an 
                eligible institution if the Secretary 
                determines a waiver to be appropriate based on 
                the financial ability of the institution.
          [(2) Eligible institutions.--For the purposes of this 
        subsection, an eligible institution is an institution 
        of higher education that--
                  [(A) has an established modeling and 
                simulation degree program, including a major, 
                minor, or career-track program; or
                  [(B) has an established modeling and 
                simulation certificate or concentration 
                program.
          [(3) Application.--To be considered for a grant under 
        this subsection, an eligible institution shall submit 
        to the Secretary an application at such time, in such 
        manner, and containing such information as the 
        Secretary may require. Such application shall include--
                  [(A) a letter from the president or provost 
                of the eligible institution that demonstrates 
                the institution's commitment to the enhancement 
                of the modeling and simulation program at the 
                institution of higher education;
                  [(B) an identification of designated faculty 
                responsible for the enhancement of the 
                institution's modeling and simulation program; 
                and
                  [(C) a detailed plan for how the grant funds 
                will be used to enhance the modeling and 
                simulation program of the institution.
          [(4) Uses of funds.--A grant awarded under this 
        subsection shall be used by an eligible institution to 
        carry out the plan developed in accordance with 
        paragraph (3)(C) to enhance modeling and simulation 
        programs at the institution, which may include--
                  [(A) in the case of an institution that is 
                eligible under paragraph (2)(B), activities to 
                assist in the establishment of a major, minor, 
                or career-track modeling and simulation program 
                at the eligible institution;
                  [(B) expanding the multidisciplinary nature 
                of the institution's modeling and simulation 
                programs;
                  [(C) recruiting students into the field of 
                modeling and simulation through the provision 
                of fellowships or assistantships;
                  [(D) creating new courses to complement 
                existing courses and reflect emerging 
                developments in the modeling and simulation 
                field;
                  [(E) conducting research to support new 
                methodologies and techniques in modeling and 
                simulation; and
                  [(F) purchasing equipment necessary for 
                modeling and simulation programs.
  [(d) Establishing Modeling and Simulation Programs.--
          [(1) Establishment grants authorized.--
                  [(A) In general.--The Secretary is authorized 
                to award grants to institutions of higher 
                education to establish a modeling and 
                simulation program, including a major, minor, 
                career-track, certificate, or concentration 
                program.
                  [(B) Duration of grant.--A grant awarded 
                under this subsection shall be awarded for a 
                three-year period, and such grant period may be 
                extended for not more than two years if the 
                Secretary determines that an eligible 
                institution has demonstrated success in 
                establishing a modeling and simulation degree 
                program at such eligible institution.
                  [(C) Minimum grant amount.--Subject to the 
                availability of appropriations, a grant awarded 
                to an eligible institution under this 
                subsection shall not be less than $750,000.
                  [(D) Non-federal share.--Each eligible 
                institution receiving a grant under this 
                subsection shall provide, from non-Federal 
                sources, in cash or in-kind, an amount equal to 
                25 percent of the amount of the grant to carry 
                out the activities supported by the grant. The 
                Secretary may waive the non-Federal share 
                requirement under this subparagraph for an 
                eligible institution if the Secretary 
                determines a waiver to be appropriate based on 
                the financial ability of the institution.
          [(2) Application.--To apply for a grant under this 
        subsection, an eligible institution shall submit to the 
        Secretary an application at such time, in such manner, 
        and containing such information as the Secretary may 
        require. Such application shall include--
                  [(A) a letter from the president or provost 
                of the eligible institution that demonstrates 
                the institution's commitment to the 
                establishment of a modeling and simulation 
                program at the institution of higher education;
                  [(B) a detailed plan for how the grant funds 
                will be used to establish a modeling and 
                simulation program at the institution; and
                  [(C) a description of how the modeling and 
                simulation program established under this 
                subsection will complement existing programs 
                and fit into the institution's current program 
                and course offerings.
          [(3) Uses of funds.--A grant awarded under this 
        subsection may be used by an eligible institution to--
                  [(A) establish, or work toward the 
                establishment of, a modeling and simulation 
                program, including a major, minor, career-
                track, certificate, or concentration program at 
                the eligible institution;
                  [(B) provide adequate staffing to ensure the 
                successful establishment of the modeling and 
                simulation program, which may include the 
                assignment of full-time dedicated or supportive 
                faculty; and
                  [(C) purchase equipment necessary for a 
                modeling and simulation program.
  [(e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years. Of the amounts authorized to be 
appropriated for each fiscal year--
          [(1) $1,000,000 is authorized to carry out the 
        activities of the task force established pursuant to 
        subsection (b); and
          [(2) of the amount remaining after the allocation for 
        paragraph (1)--
                  [(A) 50 percent is authorized to carry out 
                the grant program under subsection (c); and
                  [(B) 50 percent is authorized to carry out 
                the grant program under subsection (d).

                        [PART W--PATH TO SUCCESS

[SEC. 892. PATH TO SUCCESS.

  [(a) Purpose.--The purpose of this section is to encourage 
community supported programs that--
          [(1) leverage and enhance community support for at-
        risk young adults by facilitating the transition of 
        such young adults who are eligible individuals into 
        productive learning environments where such young 
        adults can obtain the life, social, academic, career, 
        and technical skills and credentials necessary to 
        strengthen the Nation's workforce;
          [(2) provide counseling, as appropriate, for eligible 
        individuals participating in the programs to allow the 
        eligible individuals to build a relationship with one 
        or more guidance counselors during the period that the 
        individuals are enrolled in the programs, including 
        providing referrals and connections to community 
        resources that help eligible individuals transition 
        back into the community with the necessary life, 
        social, academic, career, and technical skills after 
        being in detention, or incarcerated, particularly 
        resources related to health, housing, job training, and 
        workplace readiness;
          [(3) provide training and education for eligible 
        individuals participating in the programs, to allow 
        such individuals to assist community officials and law 
        enforcement agencies with the deterrence and prevention 
        of gang and youth violence by participating in 
        seminars, training, and workshops throughout the 
        community; and
          [(4) provide each eligible individual participating 
        in the programs with individual attention based on a 
        curriculum that matches the interests and abilities of 
        the individual to the resources of the program.
  [(b) Reentry Education Program.--
          [(1) Grant program established.--From the amounts 
        appropriated under subsection (g), the Secretary is 
        authorized to award grants to community colleges to 
        enter into and maintain partnerships with juvenile 
        detention centers and secure juvenile justice 
        residential facilities to provide assistance, services, 
        and education to eligible individuals who reenter the 
        community and pursue, in accordance with the 
        requirements of this section, at least one of the 
        following:
                  [(A) A certificate of completion for a 
                specialized area of study, such as career and 
                technical training and other alternative 
                postsecondary educational programs.
                  [(B) An associate's degree.
          [(2) Grant period.--A grant awarded under this part 
        shall be for one four-year period, and may be renewed 
        for an additional period as the Secretary determines to 
        be appropriate.
          [(3) Application.--A community college desiring to 
        receive a grant under this section shall submit an 
        application to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary shall require. Such application shall 
        include--
                  [(A) an assessment of the existing community 
                resources available to serve at-risk youth;
                  [(B) a detailed description of the program 
                and activities the community college will carry 
                out with such grant; and
                  [(C) a proposed budget describing how the 
                community college will use the funds made 
                available by such grant.
          [(4) Priority.--In awarding grants under this part, 
        the Secretary shall give priority to community colleges 
        that propose to serve the highest number of priority 
        individuals, and, among such community colleges, shall 
        give priority to community colleges that the Secretary 
        determines will best carry out the purposes of this 
        part, based on the applications submitted in accordance 
        with paragraph (3).
  [(c) Allowable Uses of Funds.--A community college awarded a 
grant under this part may use such grant to--
          [(1) pay for tuition and transportation costs of 
        eligible individuals;
          [(2) establish and carry out an education program 
        that includes classes for eligible individuals that--
                  [(A) provide marketable life and social 
                skills to such individuals;
                  [(B) meet the education program requirements 
                under subsection (d), including as appropriate, 
                courses necessary for the completion of a 
                secondary school diploma or the recognized 
                equivalent;
                  [(C) promote the civic engagement of such 
                individuals; and
                  [(D) facilitate a smooth reentry of such 
                individuals into the community;
          [(3) create and carry out a mentoring program that 
        is--
                  [(A) specifically designed to help eligible 
                individuals with the potential challenges of 
                the transitional period from detention to 
                release;
                  [(B) created in consultation with guidance 
                counselors, academic advisors, law enforcement 
                officials, and other community resources; and
                  [(C) administered by a program coordinator, 
                selected and employed by the community college, 
                who shall oversee each individual's development 
                and shall serve as the immediate supervisor and 
                reporting officer to whom the academic 
                advisors, guidance counselors, and volunteers 
                shall report regarding the progress of each 
                such individual;
          [(4) facilitate employment opportunities for eligible 
        individuals by entering into partnerships with public 
        and private entities to provide opportunities for 
        internships, apprenticeships, and permanent employment, 
        as possible, for such individuals; and
          [(5) provide training for eligible individuals 
        participating in the programs, to allow such 
        individuals to assist community officials and law 
        enforcement agencies with the deterrence and prevention 
        of gang and youth violence by participating in seminars 
        and workshop series throughout the community.
  [(d) Education Program Requirements.--An education program 
established and carried out under subsection (c) shall--
          [(1) include classes that are required for completion 
        of a certificate, diploma, or degree described in 
        subparagraph (A) or (B) of subsection (b)(1), including 
        as appropriate courses necessary for the completion of 
        a secondary school diploma or the recognized 
        equivalent;
          [(2) provide a variety of academic programs, with 
        various completion requirements, to accommodate the 
        diverse academic backgrounds, learning styles, and 
        academic and career interests of the eligible 
        individuals who participate in the education program;
          [(3) offer flexible academic programs that are 
        designed to improve the academic development and 
        achievement of eligible individuals, and to avoid high 
        attrition rates for such individuals; and
          [(4) provide for a uniquely designed education plan 
        for each eligible individual participating in the 
        program, which shall require such individual to 
        receive, at a minimum, a certificate or degree 
        described in subparagraph (A) or (B) of subsection 
        (b)(1) to successfully complete such program.
  [(e) Reports.--Each community college awarded a grant under 
this part shall submit to the Secretary a report--
          [(1) documenting the results of the program carried 
        out with such grant; and
          [(2) evaluating the effectiveness of activities 
        carried out through such program.
  [(f) Definitions.--In this section:
          [(1) Community college.--The term ``community 
        college'' has the meaning given the term ``junior or 
        community college'' in section 312(f).
          [(2) Eligible individual.--The term ``eligible 
        individual'' means an individual who--
                  [(A) is 16 to 25 years of age (inclusive); 
                and
                  [(B)(i) has been convicted of a criminal 
                offense; and
          [(ii) is detained in, or has been released from, a 
        juvenile detention center or secure juvenile justice 
        residential facility.
          [(3) Gang-related offense.--
                  [(A) In general.--The term ``gang-related 
                offense'' means an offense that involves the 
                circumstances described in subparagraph (B) and 
                that is--
                          [(i) a Federal or State felony 
                        involving a controlled substance (as 
                        defined in section 102 of the 
                        Controlled Substances Act (21 U.S.C. 
                        802)) for which the maximum penalty is 
                        not less than five years;
                          [(ii) a Federal or State crime of 
                        violence that has as an element the use 
                        or attempted use of physical force 
                        against the person of another for which 
                        the maximum penalty is not less than 
                        six months; or
                          [(iii) a conspiracy to commit an 
                        offense described in clause (i) or 
                        (ii).
                  [(B) Circumstances.--The circumstances 
                described in this subparagraph are that the 
                offense described in subparagraph (A) was 
                committed by a person who--
                          [(i) participates in a criminal 
                        street gang (as defined insection 
                        521(a)of title 18, United States Code) 
                        with knowledge that such gang's members 
                        engage in or have engaged in a 
                        continuing series of offenses described 
                        in subparagraph (A); and
                          [(ii) intends to promote or further 
                        the felonious activities of the 
                        criminal street gang or maintain or 
                        increase the person's position in the 
                        gang.
          [(4) Priority individual.--The term ``priority 
        individual'' means an individual who--
                  [(A) is an eligible individual;
                  [(B) has been convicted of a gang-related 
                offense; and
                  [(C) has served or is serving a period of 
                detention in a juvenile detention center or 
                secure juvenile justice residential facility 
                for such offense.
          [(5) Guidance counselor.--The term ``guidance 
        counselor'' means an individual who works with at-risk 
        youth on a one-on-one basis, to establish a supportive 
        relationship with such at-risk youth and to provide 
        such at-risk youth with academic assistance and 
        exposure to new experiences that enhance their ability 
        to become responsible citizens.
  [(g) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

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

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

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

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

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

  [(a) Demonstration Program Authority.--
          [(1) In general.--The Secretary is authorized to 
        carry out an Early Federal Pell Grant Commitment 
        Demonstration Program under which--
                  [(A) the Secretary awards grants to four 
                State educational agencies, in accordance with 
                paragraph (2), to pay the administrative 
                expenses incurred in participating in the 
                demonstration program under this section; and
                  [(B) the Secretary awards Federal Pell Grants 
                to participating students in accordance with 
                this section and consistent with section 401.
          [(2) Grants.--
                  [(A) In general.--From amounts appropriated 
                under subsection (h) for a fiscal year, the 
                Secretary is authorized to award grants to four 
                State educational agencies to enable the State 
                educational agencies to pay the administrative 
                expenses incurred in participating in the 
                demonstration program under this section by 
                carrying out a demonstration project under 
                which eighth grade students described in 
                subsection (b)(1)(B) receive a commitment early 
                in the students' academic careers to receive a 
                Federal Pell Grant.
                  [(B) Equal amounts.--The Secretary shall 
                award grants under this section in equal 
                amounts to each of the four participating State 
                educational agencies.
  [(b) Demonstration Project Requirements.--Each of the four 
demonstration projects assisted under this section shall meet 
the following requirements:
          [(1) Participants.--
                  [(A) In general.--The State educational 
                agency shall make participation in the 
                demonstration project available to two cohorts 
                of students, which shall consist of--
                          [(i) one cohort of eighth grade 
                        students who begin participating in the 
                        first academic year for which funds 
                        have been appropriated to carry out 
                        this section; and
                          [(ii) one cohort of eighth grade 
                        students who begin participating in the 
                        academic year succeeding the academic 
                        year described in clause (i).
                  [(B) Students in each cohort.--Each cohort of 
                students shall consist of not more than 10,000 
                eighth grade students who qualify for a free or 
                reduced price school lunch under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.) or the Child Nutrition Act of 
                1966 (42 U.S.C. 1771 et seq.).
          [(2) Student data.--The State educational agency 
        shall ensure that student data from local educational 
        agencies serving students who participate in the 
        demonstration project, as well as student data from 
        local educational agencies serving a comparable group 
        of students who do not participate in the demonstration 
        project, are available for evaluation of the 
        demonstration project, and are made available in 
        accordance with the requirements of section 444 of the 
        General Education Provisions Act (commonly known as the 
        ``Family Educational Rights and Privacy Act of 1974'').
          [(3) Federal pell grant commitment.--Each student who 
        participates in the demonstration project receives a 
        commitment from the Secretary to receive a Federal Pell 
        Grant during the first academic year that the student 
        is in attendance at an institution of higher education 
        as an undergraduate, provided that the student applies 
        for Federal financial aid (via the FAFSA or EZ FAFSA) 
        for such academic year.
          [(4) Application process.--Each State educational 
        agency shall establish an application process to select 
        local educational agencies within the State to 
        participate in the demonstration project in accordance 
        with subsection (d)(2).
          [(5) Local educational agency participation.--Subject 
        to the 10,000 statewide student limitation described in 
        paragraph (1), a local educational agency serving 
        students, not less than 50 percent of whom are eligible 
        for a free or reduced price school lunch under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 
        1751 et seq.) or the Child Nutrition Act of 1966 (42 
        U.S.C. 1771 et seq.), shall be eligible to participate 
        in the demonstration project.
  [(c) State Educational Agency Applications.--
          [(1) In general.--Each State educational agency 
        desiring to participate in the demonstration program 
        under this section shall submit an application to the 
        Secretary at such time and in such manner as the 
        Secretary may require.
          [(2) Contents.--Each application shall include--
                  [(A) a description of the proposed targeted 
                information campaign for the demonstration 
                project and a copy of the plan described in 
                subsection (f)(2);
                  [(B) a description of the student population 
                that will receive an early commitment to 
                receive a Federal Pell Grant under this 
                section;
                  [(C) an assurance that the State educational 
                agency will fully cooperate with the ongoing 
                evaluation of the demonstration project; and
                  [(D) such other information as the Secretary 
                may require.
  [(d) Selection Considerations.--
          [(1) Selection of state educational agencies.--In 
        selecting State educational agencies to participate in 
        the demonstration program under this section, the 
        Secretary shall consider--
                  [(A) the number and quality of State 
                educational agency applications received;
                  [(B) a State educational agency's--
                          [(i) financial responsibility;
                          [(ii) administrative capability;
                          [(iii) commitment to focusing 
                        resources, in addition to any resources 
                        provided on students who receive 
                        assistance under part A of title I of 
                        the Elementary and Secondary Education 
                        Act of 1965;
                          [(iv) ability and plans to run an 
                        effective and thorough targeted 
                        information campaign for students 
                        served by local educational agencies 
                        eligible to participate in the 
                        demonstration project; and
                          [(v) ability to ensure the 
                        participation in the demonstration 
                        project of a diverse group of students, 
                        including with respect to ethnicity and 
                        gender.
          [(2) Local educational agency.--In selecting local 
        educational agencies to participate in a demonstration 
        project under this section, the State educational 
        agency shall consider--
                  [(A) the number and quality of local 
                educational agency applications received;
                  [(B) a local educational agency's--
                          [(i) financial responsibility;
                          [(ii) administrative capability;
                          [(iii) commitment to focusing 
                        resources on students who receive 
                        assistance under part A of title I of 
                        the Elementary and Secondary Education 
                        Act of 1965;
                          [(iv) ability and plans to run an 
                        effective and thorough targeted 
                        information campaign for students 
                        served by the local educational agency; 
                        and
                          [(v) ability to ensure the 
                        participation in the demonstration 
                        project of a diverse group of students.
  [(e) Evaluation.--
          [(1) In general.--From amounts appropriated under 
        subsection (h) for a fiscal year, the Secretary shall 
        reserve not more than $1,000,000 to award a grant or 
        contract to an organization outside the Department for 
        an independent evaluation of the impact of the 
        demonstration program assisted under this section.
          [(2) Competitive basis.--The grant or contract shall 
        be awarded on a competitive basis.
          [(3) Matters evaluated.--The evaluation described in 
        this subsection shall--
                  [(A) determine the number of students who 
                were encouraged by the demonstration program to 
                pursue higher education;
                  [(B) identify the barriers to the 
                effectiveness of the demonstration program;
                  [(C) assess the cost-effectiveness of the 
                demonstration program in improving access to 
                higher education;
                  [(D) identify the reasons why participants in 
                the demonstration program either received or 
                did not receive a Federal Pell Grant;
                  [(E) identify intermediate outcomes related 
                to postsecondary education attendance, such as 
                whether participants--
                          [(i) were more likely to take a 
                        college-preparatory curriculum while in 
                        secondary school;
                          [(ii) submitted any applications to 
                        institutions of higher education; and
                          [(iii) took the PSAT, SAT, or ACT;
                  [(F) identify the number of students 
                participating in the demonstration program who 
                pursued an associate's degree or a bachelor's 
                degree, or other postsecondary education;
                  [(G) compare the findings of the 
                demonstration program with respect to 
                participants to comparison groups (of similar 
                size and demographics) that did not participate 
                in the demonstration program; and
                  [(H) identify the impact of the demonstration 
                program on the parents of students eligible to 
                participate in the program.
          [(4) Dissemination.--The findings of the evaluation 
        shall be reported to the Secretary, who shall widely 
        disseminate the findings to the public.
  [(f) Targeted Information Campaign.--
          [(1) In general.--Each State educational agency 
        receiving a grant under this section shall, in 
        cooperation with the participating local educational 
        agencies within the State and the Secretary, develop a 
        targeted information campaign for the demonstration 
        project assisted under this section.
          [(2) Plan.--Each State educational agency receiving a 
        grant under this section shall include in the 
        application submitted under subsection (c) a written 
        plan for the State educational agency proposed targeted 
        information campaign. The plan shall include the 
        following:
                  [(A) Outreach.--A description of the outreach 
                to students and the students' families at the 
                beginning and end of each academic year of the 
                demonstration project, at a minimum.
                  [(B) Distribution.--A description of how the 
                State educational agency plans to provide the 
                outreach described in subparagraph (A) and to 
                provide the information described in 
                subparagraph (C).
                  [(C) Information.--The annual provision by 
                the State educational agency to all students 
                and families participating in the demonstration 
                project of information regarding--
                          [(i) the estimated statewide average 
                        cost of attendance for an institution 
                        of higher education for each academic 
                        year, which cost data shall be 
                        disaggregated by--
                                  [(I) type of institution, 
                                including--
                                          [(aa) two-year public 
                                        degree-granting 
                                        institutions of higher 
                                        education;
                                          [(bb) four-year 
                                        public degree-granting 
                                        institutions of higher 
                                        education; and
                                          [(cc) four-year 
                                        private degree-granting 
                                        institutions of higher 
                                        education;
                                  [(II) component, including--
                                          [(aa) tuition and 
                                        fees; and
                                          [(bb) room and board;
                          [(ii) Federal Pell Grants, 
                        including--
                                  [(I) the Federal Pell Grant 
                                amount, determined under 
                                section 401(b)(2)(A), for which 
                                a student may be eligible for 
                                each award year;
                                  [(II) when and how to apply 
                                for a Federal Pell Grant; and
                                  [(III) what the application 
                                process for a Federal Pell 
                                Grant requires;
                          [(iii) State-specific postsecondary 
                        education savings programs;
                          [(iv) State merit-based financial 
                        aid;
                          [(v) State need-based financial aid; 
                        and
                          [(vi) Federal financial aid available 
                        to students, including eligibility 
                        criteria for such aid and an 
                        explanation of the Federal financial 
                        aid programs under title IV, such as 
                        the Student Guide published by the 
                        Department (or any successor to such 
                        document).
          [(3) Cohorts.--The information described in paragraph 
        (2)(C) shall be provided annually to the two successive 
        cohorts of students described in subsection (b)(1)(A) 
        for the duration of the students' participation in the 
        demonstration project.
          [(4) Reservation.--Each State educational agency 
        receiving a grant under this section shall reserve not 
        more than 15 percent of the grant funds received each 
        fiscal year to carry out the targeted information 
        campaign described in this subsection.
  [(g) Supplement, Not Supplant.--A State educational agency 
shall use grant funds received under this section only to 
supplement the funds that would, in the absence of such grant 
funds, be made available from non-Federal sources for students 
participating in the demonstration project under this section, 
and not to supplant such funds.
  [(h) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

        [PART Z--HENRY KUUALOHA GIUGNI KUPUNA MEMORIAL ARCHIVES

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

  [(a) Grants Authorized.--From the amounts appropriated under 
subsection (c), the Secretary is authorized to award a grant to 
the University of Hawaii Academy for Creative Media for the 
establishment, maintenance, and periodic modernization of the 
Henry Kuualoha Giugni Kupuna Memorial Archives at the 
University of Hawaii.
  [(b) Use of Funds.--The Henry Kuualoha Giugni Kupuna Memorial 
Archives shall use the grant funds received under this 
section--
          [(1) to facilitate the acquisition of a secure web-
        accessible repository of Native Hawaiian historical 
        data rich in ethnic and cultural significance to the 
        United States for preservation and access by future 
        generations;
          [(2) to award scholarships to facilitate access to 
        postsecondary education for students who cannot afford 
        such education;
          [(3) to support programmatic efforts associated with 
        the web-based media projects of the archives;
          [(4) to create educational materials, from the 
        contents of the archives, that are applicable to a 
        broad range of indigenous students, such as Native 
        Hawaiians, Alaskan Natives, and Native American 
        Indians;
          [(5) to develop outreach initiatives that introduce 
        the archival collections to elementary schools and 
        secondary schools;
          [(6) to develop supplemental web-based resources that 
        define terms and cultural practices innate to Native 
        Hawaiians;
          [(7) to rent, lease, purchase, maintain, or repair 
        educational facilities to house the archival 
        collections;
          [(8) to rent, lease, purchase, maintain, or repair 
        computer equipment for use by elementary schools and 
        secondary schools in accessing the archival 
        collections;
          [(9) to provide preservice and in-service teacher 
        training to develop a core group of kindergarten 
        through grade 12 teachers who are able to provide 
        instruction in a way that is relevant to the unique 
        background of indigenous students, such as Native 
        Hawaiians, Alaskan Natives, and Native American 
        Indians, in order to--
                  [(A) facilitate greater understanding by 
                teachers of the unique background of indigenous 
                students; and
                  [(B) improve student achievement; and
          [(10) to increase the economic and financial literacy 
        of postsecondary education students through the 
        dissemination of best practices used at other 
        institutions of higher education regarding debt and 
        credit management and economic decisionmaking.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.

            [PART AA--MASTERS AND POSTBACCALAUREATE PROGRAMS

[SEC. 897. MASTERS DEGREE PROGRAMS.

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

[SEC. 898. POSTBACCALAUREATE PROGRAMS.

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


                    HIGHER EDUCATION OPPORTUNITY ACT



           *       *       *       *       *       *       *
TITLE VIII--ADDITIONAL PROGRAMS

           *       *       *       *       *       *       *


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

  [(a) Establishment.--There shall be established, during the 
first fiscal year for which appropriations are made available 
under subsection (c), a nonprofit corporation to be known as 
the National Center for Research in Advanced Information and 
Digital Technologies, which shall not be an agency or 
establishment of the Federal Government. The Center shall be 
subject to the provisions of this section, and, to the extent 
consistent with this section, to the District of Columbia 
Nonprofit Corporation Act (sec. 29-501 et seq., D.C. Official 
Code).
  [(b) Purpose.--The purpose of the Center shall be to support 
a comprehensive research and development program to harness the 
increasing capacity of advanced information and digital 
technologies to improve all levels of learning and education, 
formal and informal, in order to provide Americans with the 
knowledge and skills needed to compete in the global economy.
  [(c) Funding.--
          [(1) Authorization of appropriations.--There are 
        authorized to be appropriated to the Center such sums 
        as may be necessary for fiscal year 2009 and each of 
        the five succeeding fiscal years.
          [(2) Additional funds.--The Center is authorized--
                  [(A) to accept funds from any Federal agency 
                or entity;
                  [(B) to accept, hold, administer, and spend 
                any gift, devise, or bequest of real or 
                personal property made to the Center; and
                  [(C) to enter into competitive contracts with 
                individuals, public or private organizations, 
                professional societies, and government agencies 
                for the purpose of carrying out the functions 
                of the Center.
          [(3) Prohibition.--The Center shall not accept gifts, 
        devises, or bequests from a foreign government or 
        foreign source.
  [(d) Board of Directors; Vacancies; Compensation.--
          [(1) In general.--A Board of the Center shall be 
        established to oversee the administration of the 
        Center.
          [(2) Initial composition.--The initial Board shall 
        consist of nine members to be appointed by the 
        Secretary of Education from recommendations received 
        from the Speaker of the House of Representatives, the 
        Minority Leader of the House of Representatives, the 
        majority leader of the Senate, and the minority leader 
        of the Senate, who--
                  [(A) reflect representation from the public 
                and private sectors;
                  [(B) shall provide, as nearly as practicable, 
                a broad representation of various regions of 
                the United States, various professions and 
                occupations, and various kinds of talent and 
                experience appropriate to the functions and 
                responsibilities of the Center;
                  [(C) shall not be in a position to benefit 
                financially directly from the contracts and 
                grants to eligible institutions under 
                subsection (f)(2); and
                  [(D) may not be officers or employees of the 
                Federal Government or a Members of Congress 
                serving at the time of such appointment.
          [(3) Vacancies and subsequent appointments.--To the 
        extent not inconsistent with paragraph (2), in the case 
        of a vacancy on the Board due to death, resignation, or 
        removal, the vacancy shall be filled through nomination 
        and selection by the sitting members of the Board 
        after--
                  [(A) taking into consideration the 
                composition of the Board; and
                  [(B) soliciting recommendations from the 
                public.
          [(4) Compensation.--Members of the Board shall serve 
        without compensation but may be reimbursed for 
        reasonable expenses for transportation, lodging, and 
        other expenses directly related to their duties as 
        members of the Board.
          [(5) Organization and operation.--The Board shall 
        incorporate and operate the Center in accordance with 
        the laws governing tax exempt organizations in the 
        District of Columbia.
  [(e) Director and Staff.--
          [(1) Director.--The Board shall appoint a Director of 
        the Center after conducting a national, competitive 
        search to find an individual with the appropriate 
        expertise, experience, and knowledge to oversee the 
        operations of the Center.
          [(2) Staff.--In accordance with procedures 
        established by the Board, the Director shall employ 
        individuals to carry out the functions of the Center.
          [(3) Compensation.--In no case shall the Director or 
        any employee of the Center receive annual compensation 
        that exceeds an amount equal to the annual rate payable 
        for level II of the Executive Schedule under section 
        5313 of title 5, United States Code.
  [(f) Center Activities.--
          [(1) Uses of funds.--The Director, after consultation 
        with the Board, shall use the funds made available to 
        the Center--
                  [(A) to support research to improve 
                education, teaching, and learning that is in 
                the public interest, but that is determined 
                unlikely to be undertaken entirely with private 
                funds;
                  [(B) to support--
                          [(i) precompetitive research, 
                        development, and demonstrations;
                          [(ii) assessments of prototypes of 
                        innovative digital learning and 
                        information technologies, as well as 
                        the components and tools needed to 
                        create such technologies; and
                          [(iii) pilot testing and evaluation 
                        of prototype systems described in 
                        clause (ii); and
                  [(C) to encourage the widespread adoption and 
                use of effective, innovative digital approaches 
                to improving education, teaching, and learning.
          [(2) Contracts and grants.--
                  [(A) In general.--To carry out the activities 
                described in paragraph (1), the Director, with 
                the agreement of two-thirds of the members of 
                the Board, may award, on a competitive basis, 
                contracts and grants to four-year institutions 
                of higher education, museums, libraries, 
                nonprofit organizations, public institutions 
                with or without for-profit partners, for-profit 
                organizations, and consortia of any such 
                entities.
                  [(B) Public domain.--
                          [(i) In general.--The research and 
                        development properties and materials 
                        associated with any project funded by a 
                        grant or contract under this section 
                        shall be freely and nonexclusively 
                        available to the general public in a 
                        timely manner, consistent with 
                        regulations prescribed by the Secretary 
                        of Education.
                          [(ii) Exemption.--The Director may 
                        waive the requirements of clause (i) 
                        with respect to a project funded by a 
                        grant or contract under this section 
                        if--
                                  [(I) the Director and the 
                                Board (by a unanimous vote of 
                                the Board members) determine 
                                that the general public will 
                                benefit significantly due to 
                                the project not being freely 
                                and nonexclusively available to 
                                the general public in a timely 
                                manner; and
                                  [(II) the Board issues a 
                                public statement as to the 
                                specific reasons of the 
                                determination under subclause 
                                (I).
                  [(C) Peer review.--Proposals for grants or 
                contracts shall be evaluated on the basis of 
                comparative merit by panels of experts who 
                represent diverse interests and perspectives, 
                and who are appointed by the Director based on 
                recommendations from the fields served and from 
                the Board.
  [(g) Accountability and Reporting.--
          [(1) Report.--
                  [(A) In general.--Not later than December 30 
                of each year beginning in fiscal year 2009, the 
                Director shall prepare and submit to the 
                Secretary of Education and the authorizing 
                committees a report that contains the 
                information described in subparagraph (B) with 
                respect to the preceding fiscal year.
                  [(B) Contents.--A report under subparagraph 
                (A) shall include--
                          [(i) a comprehensive and detailed 
                        report of the Center's operations, 
                        activities, financial condition, and 
                        accomplishments, and such 
                        recommendations as the Director 
                        determines appropriate;
                          [(ii) evidence of coordination with 
                        the Department of Education, the 
                        National Science Foundation, Office of 
                        the Assistant Secretary of Defense for 
                        Research and Engineering in the 
                        Department of Defense, and other 
                        related Federal agencies to carry out 
                        the operations and activities of the 
                        Center;
                          [(iii) a comprehensive and detailed 
                        inventory of funds distributed from the 
                        Center during the fiscal year for which 
                        the report is being prepared; and
                          [(iv) an independent audit of the 
                        Center's finances and operations, and 
                        of the implementation of the goals 
                        established by the Board.
                  [(C) Statement of the board.--Each report 
                under subparagraph (A) shall include a 
                statement from the Board containing--
                          [(i) a clear description of the plans 
                        and priorities of the Board for the 
                        subsequent year for activities of the 
                        Center; and
                          [(ii) an estimate of the funds that 
                        will be expended by the Center for such 
                        year.
          [(2) Testimony.--The Director and principal officers 
        of the Center shall testify before the authorizing 
        committees and the Committees on Appropriations of the 
        House of Representatives and the Senate, upon request 
        of such committees, with respect to--
                  [(A) any report required under paragraph 
                (1)(A); and
                  [(B) any other matter that such committees 
                may determine appropriate.
  [(h) Use of Funds Subject to Appropriations.--The authority 
to award grants, enter into contracts, or otherwise expend 
funds under this section is subject to the availability of 
amounts deposited into the Center under subsection (c), or 
amounts otherwise appropriated for such purposes by an Act of 
Congress.
  [(i) Definitions.--For purposes of this section:
          [(1) Authorizing committees.--The term ``authorizing 
        committees'' has the meaning given the term in section 
        103 of the Higher Education Act of 1965 (20 U.S.C. 
        1003).
          [(2) Board.--The term ``Board'' means the Board of 
        the Center appointed under subsection (d)(1).
          [(3) Center.--The term ``Center'' means the National 
        Center for Research in Advanced Information and Digital 
        Technologies established under subsection (a).
          [(4) Director.--The term ``Director'' means the 
        Director of the Center appointed under subsection 
        (e)(1).

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

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

           *       *       *       *       *       *       *

                              ----------                              


                  HIGHER EDUCATION AMENDMENTS OF 1998



           *       *       *       *       *       *       *
[TITLE VIII--STUDIES, REPORTS, AND RELATED PROGRAMS

           *       *       *       *       *       *       *


   [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 INDIVIDUALS.

  [(a) Definition.--In this section, the term ``incarcerated 
individual'' means a male or female offender who is--
          [(1) 35 years of age or younger; and
          [(2) incarcerated in a State prison, including a 
        prerelease facility.
  [(b) Grant Program.--The Secretary of Education (in this 
section referred to as the ``Secretary'')--
          [(1) shall establish a program in accordance with 
        this section to provide grants to the State 
        correctional education agencies in the States to assist 
        and encourage incarcerated individuals who have 
        obtained a secondary school diploma or its recognized 
        equivalent to acquire educational and job skills 
        through--
                  [(A) coursework to prepare such individuals 
                to pursue a postsecondary education 
                certificate, an associate's degree, or 
                bachelor's degree while in prison;
                  [(B) the pursuit of a postsecondary education 
                certificate, an associate's degree, or 
                bachelor's degree while in prison; and
                  [(C) employment counseling and other related 
                services, which start during incarceration and 
                end not later than two years after release from 
                incarceration; and
          [(2) may establish such performance objectives and 
        reporting requirements for State correctional education 
        agencies receiving grants under this section as the 
        Secretary determines are necessary to assess the 
        effectiveness of the program under this section.
  [(c) Application.--To be eligible for a grant under this 
section, a State correctional education agency shall submit to 
the Secretary a proposal for an incarcerated individual program 
that--
          [(1) identifies the scope of the problem, including 
        the number of incarcerated individuals in need of 
        postsecondary education and career and technical 
        training;
          [(2) lists the accredited public or private 
        educational institution or institutions that will 
        provide postsecondary educational services;
          [(3) lists the cooperating agencies, public and 
        private, or businesses that will provide related 
        services, such as counseling in the areas of career 
        development, substance abuse, health, and parenting 
        skills;
          [(4) describes specific performance objectives and 
        evaluation methods (in addition to, and consistent 
        with, any objectives established by the Secretary under 
        subsection (b)(2)) that the State correctional 
        education agency will use in carrying out its proposal, 
        including--
                  [(A) specific and quantified student outcome 
                measures that are referenced to outcomes for 
                non-program participants with similar 
                demographic characteristics; and
                  [(B) measures, consistent with the data 
                elements and definitions described in 
                subsection (d)(1)(A), of--
                          [(i) program completion, including an 
                        explicit definition of what constitutes 
                        a program completion within the 
                        proposal;
                          [(ii) knowledge and skill attainment, 
                        including specification of instruments 
                        that will measure knowledge and skill 
                        attainment;
                          [(iii) attainment of employment both 
                        prior to and subsequent to release;
                          [(iv) success in employment indicated 
                        by job retention and advancement; and
                          [(v) recidivism, including such 
                        subindicators as time before subsequent 
                        offense and severity of offense;
          [(5) describes how the proposed program is to be 
        integrated with existing State correctional education 
        programs (such as adult education, graduate education 
        degree programs, and career and technical training) and 
        State industry programs;
          [(6) describes how the proposed program will--
                  [(A) deliver services under this section; and
                  [(B) utilize technology to deliver such 
                services; and
          [(7) describes how incarcerated individuals will be 
        selected so that only those eligible under subsection 
        (e) will be enrolled in postsecondary programs.
  [(d) Program Requirements.--Each State correctional education 
agency receiving a grant under this section shall--
          [(1) annually report to the Secretary regarding--
                  [(A) the results of the evaluations conducted 
                using data elements and definitions provided by 
                the Secretary for the use of State correctional 
                education programs;
                  [(B) any objectives or requirements 
                established by the Secretary pursuant to 
                subsection (b)(2);
                  [(C) the additional performance objectives 
                and evaluation methods contained in the 
                proposal described in subsection (c)(4) as 
                necessary to document the attainment of project 
                performance objectives;
                  [(D) how the funds provided under this 
                section are being allocated among postsecondary 
                preparatory education, postsecondary academic 
                programs, and career and technical education 
                programs; and
                  [(E) the service delivery methods being used 
                for each course offering; and
          [(2) provide for each student eligible under 
        subsection (e) not more than--
                  [(A) $3,000 annually for tuition, books, and 
                essential materials; and
                  [(B) $300 annually for related services such 
                as career development, substance abuse 
                counseling, parenting skills training, and 
                health education.
  [(e) Student Eligibility.--An incarcerated individual who has 
obtained a secondary school diploma or its recognized 
equivalent shall be eligible for participation in a program 
receiving a grant under this section if such individual--
          [(1) is eligible to be released within seven years 
        (including an incarcerated individual who is eligible 
        for parole within such time);
          [(2) is 35 years of age or younger; and
          [(3) has not been convicted of--
                  [(A) a ``criminal offense against a victim 
                who is a minor'' or a ``sexually violent 
                offense'', as such terms are defined in the 
                Jacob Wetterling Crimes Against Children and 
                Sexually Violent Offender Registration Act (42 
                U.S.C. 14071 et seq.); or
                  [(B) murder, as described insection 1111of 
                title 18, United States Code.
  [(f) Length of Participation.--A State correctional education 
agency receiving a grant under this section shall provide 
educational and related services to each participating 
incarcerated individual for a period not to exceed seven years, 
not more than two years of which may be devoted to study in a 
graduate education degree program or to coursework to prepare 
such individuals to take college level courses. Educational and 
related services shall start during the period of incarceration 
in prison or prerelease, and the related services may continue 
for not more than two years after release from confinement.
  [(g) Education Delivery Systems.--State correctional 
education agencies and cooperating institutions shall, to the 
extent practicable, use high-tech applications in developing 
programs to meet the requirements and goals of this section.
  [(h) Allocation of Funds.--
          [(1) Fiscal year 2009.--From the funds appropriated 
        pursuant to subsection (i) for fiscal year 2009, the 
        Secretary shall allot to each State an amount that 
        bears the same relationship to such funds as the total 
        number of incarcerated individuals described in 
        paragraphs (1) and (2) of subsection (e) in the State 
        bears to the total number of such individuals in all 
        States.
          [(2) Future fiscal years.--From the funds 
        appropriated pursuant to subsection (i) for each fiscal 
        year after fiscal year 2009, the Secretary shall allot 
        to each State an amount that bears the same 
        relationship to such funds as the total number of 
        students eligible under subsection (e) in such State 
        bears to the total number of such students in all 
        States.
  [(i) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal years 2009 through 2014.

           *       *       *       *       *       *       *


                     [PART H--UNDERGROUND RAILROAD

[SEC. 841. UNDERGROUND RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.

  [(a) Program Established.--The Secretary of Education, in 
consultation and cooperation with the Secretary of the 
Interior, is authorized to make grants to 1 or more nonprofit 
educational organizations that are established to research, 
display, interpret, and collect artifacts relating to the 
history of the Underground Railroad, including the lessons to 
be drawn from such history.
  [(b) Grant Agreement.--Each nonprofit educational 
organization awarded a grant under this section shall enter 
into an agreement with the Secretary of Education. Each such 
agreement shall require the organization--
          [(1) to establish a facility to--
                  [(A) house, display, interpret, and 
                communicate information regarding the artifacts 
                and other materials related to the history of 
                the Underground Railroad, including the lessons 
                to be drawn from such history;
                  [(B) maintain such artifacts and materials; 
                and
                  [(C) make the efforts described in 
                subparagraph (A) available, including through 
                electronic means, to elementary and secondary 
                schools, institutions of higher education, and 
                the general public;
          [(2) to demonstrate substantial public and private 
        support for the operation of the facility through the 
        implementation of a public-private partnership between 
        one or more State or local public entities and one or 
        more private entities, which public-private partnership 
        shall provide matching funds from non-federal sources 
        for the support of the facility in an amount equal to 
        or greater than four times the amount of the grant 
        awarded under this section;
          [(3) to create an endowment to fund any and all 
        shortfalls in the costs of the on-going operations of 
        the facility;
          [(4) to establish and maintain a network of satellite 
        centers throughout the United States to help 
        disseminate information regarding the Underground 
        Railroad throughout the United States, including the 
        lessons to be drawn from the history of the Underground 
        Railroad, if such satellite centers raise 80 percent of 
        the funds required to establish the satellite centers 
        from non-Federal public and private sources;
          [(5) to establish and maintain the capability to 
        electronically link the facility with other local and 
        regional facilities that have collections and programs 
        which interpret the history of the Underground 
        Railroad, including the lessons to be drawn from such 
        history; and
          [(6) to submit, for each fiscal year for which the 
        organization receives funding under this section, a 
        report to the Secretary of Education that contains--
                  [(A) a description of the programs and 
                activities supported by the funding;
                  [(B) the audited financial statement of the 
                organization for the preceding fiscal year;
                  [(C) a plan for the programs and activities 
                to be supported by the funding as the Secretary 
                may require; and
                  [(D) an evaluation of the programs and 
                activities supported by the funding as the 
                Secretary may require.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $3,000,000 for 
fiscal year 2009 and each of the five succeeding fiscal years.]

           *       *       *       *       *       *       *

                              ----------                              


                  HIGHER EDUCATION AMENDMENTS OF 1992



           *       *       *       *       *       *       *
TITLE XV--RELATED PROGRAMS AND AMENDMENTS TO OTHER LAWS

           *       *       *       *       *       *       *


                     [PART E--OLYMPIC SCHOLARSHIPS

[SEC. 1543. OLYMPIC SCHOLARSHIPS.

  [(a) Scholarships Authorized.--
          [(1) In general.--The Secretary of Education is 
        authorized to provide financial assistance to the 
        United States Olympic Education Center or the United 
        States Olympic Training Center to enable such centers 
        to provide financial assistance to athletes who are 
        training at such centers and are pursuing postsecondary 
        education at institutions of higher education (as such 
        term is defined in section 481(a) of the Higher 
        Education Act of 1965).
          [(2) Award determination.--The amount of the 
        financial assistance provided to an athlete described 
        in paragraph (1) shall be determined in accordance with 
        criteria, and in amounts, specified in the application 
        of the center under subsection (c). Such assistance 
        shall not exceed the athlete's cost of attendance as 
        determined under section 472 of the Higher Education 
        Act of 1965 (20 U.S.C. 1087ll).
          [(3) Information on distribution of assistance.--Each 
        center providing such assistance shall annually report 
        to the Secretary such information as the Secretary may 
        reasonably require on the distribution of such 
        assistance among athletes and institutions of higher 
        education. The Secretary shall compile such reports and 
        submit them to the Committees on Education and the 
        Workforce and Appropriations of the House of 
        Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Appropriations of 
        the Senate.
  [(b) Eligibility.--The Secretary of Education shall ensure 
that financial assistance provided under this part is available 
to both full-time and part-time students who are athletes at 
centers described in subsection (a).
  [(c) Application.--Each center desiring financial assistance 
under this section shall submit an application to the Secretary 
of Education at such time, in such manner and accompanied by 
such information as the Secretary may reasonably require.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $5,000,000 for fiscal year 2009 and such 
sums as may be necessary for each of the five succeeding fiscal 
years to carry out this section.
  [(e) Designation.--Scholarships awarded under this section 
shall be known as ``B.J. Stupak Olympic Scholarships''.]

           *       *       *       *       *       *       *

                              ----------                              


                   EDUCATION OF THE DEAF ACT OF 1986



           *       *       *       *       *       *       *
  TITLE I--GALLAUDET UNIVERSITY; NATIONAL TECHNICAL INSTITUTE FOR THE 
                          DEAF; OTHER PROGRAMS

Part A--Gallaudet University

           *       *       *       *       *       *       *


SEC. 103. BOARD OF TRUSTEES.

  (a) Composition of the Board.--(1) Gallaudet University shall 
be under the direction and control of a Board of Trustees, 
composed of [twenty-one] twenty-three members who shall 
include--
          (A) [three public] four public members of whom (i) 
        [one shall be a United States Senator appointed by the 
        President of the Senate, and] two shall be United 
        States Senators, of whom one shall be appointed by the 
        Majority Leader of the Senate and one shall be 
        appointed by the Minority Leader of the Senate, and 
        (ii) two shall be Representatives [appointed by the 
        Speaker of the House of Representatives], of whom one 
        shall be appointed by the Speaker of the House of 
        Representatives and one shall be appointed by the 
        Minority Leader of the House of Representatives; and
          (B) [eighteen] nineteen other members, all of whom 
        shall be elected by the Board of Trustees and of whom 
        one shall be elected pursuant to regulations of the 
        Board of Trustees, on nomination by the Gallaudet 
        University Alumni Association, for a term of three 
        years.
  (2) The members appointed from the Senate and House of 
Representatives shall be appointed for a term of two years at 
the beginning of each Congress, shall be eligible for 
reappointment, and shall serve until their successors are 
appointed.
  (3) The Board of Trustees shall have the power to fill any 
vacancy in the membership of the Board except for public 
members. Nine trustees shall constitute a quorum to transact 
business. The Board of Trustees, by vote of a majority of its 
membership, is authorized to remove any member of their body 
(except the public members) who may refuse or neglect to 
discharge the duties of a trustee, or whose removal would, in 
the judgment of said majority, be to the interest and welfare 
of said corporation.
  (b) Powers of the Board.--The Board of Trustees is authorized 
to--
          (1) make such rules, policies, regulations, and 
        bylaws, not inconsistent with the Constitution and laws 
        of the United States, as may be necessary for the good 
        government of Gallaudet University, for the management 
        of the property and funds of such corporation 
        (including the construction of buildings and other 
        facilities), and for the admission, instruction, care, 
        and discharge of students;
          (2) provide for the adoption of a corporate seal and 
        for its use;
          (3) fix the date of holding their annual and other 
        meetings;
          (4) appoint a president and establish policies, 
        guidelines, and procedures related to the appointments, 
        the salaries, and the dismissals of professors, 
        instructors, and other employees of Gallaudet 
        University, including the adoption of a policy of 
        outreach and recruitment to employ and advance in 
        employment qualified individuals with disabilities, 
        particularly individuals who are deaf or hard of 
        hearing;
          (5) elect a chairperson and other officers and 
        prescribe their duties and terms of office, and appoint 
        an executive committee to consist of five members, and 
        vest the committee with such of its powers during 
        periods between meetings of the Board as the Board 
        deems necessary;
          (6) establish such schools, departments, and other 
        units as the Board of Trustees deems necessary to carry 
        out the purpose of Gallaudet University;
          (7) confer such degrees and marks of honor as are 
        conferred by colleges and universities generally, and 
        issue such diplomas and certificates of graduation as, 
        in its opinion, may be deemed advisable, and consistent 
        with academic standards;
          (8) subject to section 203, control expenditures of 
        all moneys appropriated by Congress for the benefit of 
        Gallaudet University; and
          (9) control the expenditure and investment of any 
        moneys or funds or property which Gallaudet University 
        may have or may receive from sources other than 
        appropriations by Congress.

SEC. 104. LAURENT CLERC NATIONAL DEAF EDUCATION CENTER.

  (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 the 
Laurent Clerc National Deaf Education Center (referred to in 
this section as the ``Clerc Center'') to carry out 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) The elementary and secondary education programs described 
in subparagraph (A) shall serve students with a broad spectrum 
of needs, including students who are lower achieving 
academically, who come from non-English-speaking homes, who 
have secondary disabilities, who are members of minority 
groups, or who are from rural areas.
  (C) The elementary and secondary education programs described 
in subparagraph (A) shall include--
          (i) the Kendall Demonstration Elementary School, to 
        provide day facilities for elementary education for 
        students who are deaf from the age of onset of deafness 
        to age fifteen, inclusive, but not beyond the eighth 
        grade or its equivalent, to provide such students with 
        the vocational, transitional, independent living, and 
        related services they need to function independently, 
        and to prepare such students for high school and other 
        secondary study; and
          (ii) the Model Secondary School for the Deaf, to 
        provide day and residential facilities for secondary 
        education for students who are deaf from grades nine 
        through twelve, inclusive, to provide such students 
        with the vocational, transitional, independent living, 
        and related services they need to function 
        independently, and to prepare such students for 
        college, other postsecondary opportunities, or the 
        workplace.
  (2) The Model Secondary School for the Deaf may provide 
residential facilities for students enrolled in the school--
          (A) who live beyond a reasonable commuting distance 
        from the school; or
          (B) for whom such residency is necessary for them to 
        receive a free appropriate public education within the 
        meaning of part B of the Individuals with Disabilities 
        Education Act.
  (b) Administrative Requirements.--(1) The Clerc Center 
shall--
          (A) provide technical assistance and outreach 
        throughout the Nation to meet the training and 
        information needs of parents of infants, children, and 
        youth who are deaf or hard of hearing; and
          (B) provide technical assistance and training to 
        personnel for use in teaching (i) students who are deaf 
        or hard of hearing, in various educational 
        environments, and (ii) students who are deaf or hard of 
        hearing with a broad spectrum of needs as described in 
        subsection (a).
  (2) To the extent possible, the Clerc 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) regular classes;
          (B) resource rooms;
          (C) separate classes;
          (D) separate, public or private, nonresidential 
        schools; and
          (E) separate, public or private, residential schools 
        and homebound or hospital environments.
  (3) If a local educational agency, educational service 
agency, or State educational agency refers a child to, or 
places a child in, one of the elementary or secondary education 
programs to meet its obligation to make available a free 
appropriate public education under part B of the Individuals 
with Disabilities Education Act, the agency or unit shall be 
responsible for ensuring that the special education and related 
services provided to the child by the education program are in 
accordance with part B of that Act and that the child is 
provided the rights and procedural safeguards under section 615 
of that Act.
  (4) If the parents or guardian places a child in one of the 
elementary or secondary education programs, the University 
shall--
          (A) notify the appropriate local educational agency, 
        educational service agency, or State educational agency 
        of that child's attendance in the program;
          (B) work with local educational agencies, educational 
        service agencies, and State educational agencies, where 
        appropriate, to ensure a smooth transfer of the child 
        to and from that program; and
          (C) provide the child a free appropriate public 
        education in accordance with part B of the Individuals 
        with Disabilities Education Act and procedural 
        safeguards in accordance with the following provisions 
        of section 615 of such Act:
                  (i) Paragraphs (1), and (3) through (8) of 
                subsection (b).
                  (ii) Subsections (c) through (g).
                  (iii) Subsection (h), except for the matter 
                in paragraph (4) pertaining to transmission of 
                findings and decisions to a State advisory 
                panel.
                  (iv) Paragraphs (1) and (2) of subsection 
                (i).
                  (v) Subsection (j)--
                          (I) except that such subsection shall 
                        not be applicable to a decision by the 
                        University to refuse to admit a child; 
                        or
                          (II) to dismiss a child, except that, 
                        before dismissing any child, the 
                        University shall give at least 60 days 
                        written notice to the child's parents 
                        and to the local educational agency in 
                        which the child resides, unless the 
                        dismissal involves a suspension, 
                        expulsion, or other change in placement 
                        covered under section 615(k).
                  (vi) Subsections (k) through (o).
  [(5) The University, for purposes of the elementary and 
secondary education programs carried out at the Clerc Center, 
shall--
          [(A)(i) select challenging State academic content 
        standards, aligned academic achievement standards, and 
        State academic assessments of a State, adopted and 
        implemented, as appropriate, pursuant to paragraphs (1) 
        and (2) of section 1111(b) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6311(b)(1) 
        and (2)) and approved by the Secretary; and
          [(ii) implement such standards and assessments for 
        such programs by not later than the beginning of the 
        2016-2017 academic year;
          [(B) adopt the accountability system, consistent with 
        section 1111(c) of such Act, of the State from which 
        standards and assessments are selected under 
        subparagraph (A)(i); and
          [(C) publicly report the results of the academic 
        assessments implemented under subparagraph (A), except 
        where such reporting would not yield statistically 
        reliable information or would reveal personally 
        identifiable information about an individual student, 
        and the results of the annual evaluation of the 
        programs at the Clerc Center, as determined under 
        subparagraph (B).]
          (5) The University, for purposes of the elementary 
        and secondary education programs carried out by the 
        Clerc Center, shall--
                  (A)(i)(I) provide an assurance to the 
                Secretary that it has adopted and is 
                implementing challenging State academic 
                standards that meet the requirements of section 
                1111(b)(1) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6311(b)(1));
                  (II) demonstrate to the Secretary that the 
                University is implementing a set of high-
                quality student academic assessments in 
                mathematics, reading or language arts, and 
                science, and any other subjects chosen by the 
                University, that meet the requirements of 
                section 1111(b)(2) of such Act (20 U.S.C. 
                6311(b)(2)); and
                  (III) demonstrate to the Secretary that the 
                University is implementing an accountability 
                system consistent with section 1111(c) of such 
                Act (20 U.S.C. 6311(c)); or
                  (ii)(I) select the challenging State academic 
                standards and State academic assessments of a 
                State, adopted and implemented, as appropriate, 
                pursuant to paragraphs (1) and (2) of section 
                1111(b) of such Act (20 U.S.C. 6311(b)); and
                  (II) adopt the accountability system, 
                consistent with section 1111(c) of such Act (20 
                U.S.C. 6311(c)), of such State; and
                  (B) publicly report, except in a case in 
                which such reporting would not yield 
                statistically reliable information or would 
                reveal personally identifiable information 
                about an individual student--
                          (i) the results of the academic 
                        assessments implemented under 
                        subparagraph (A); and
                          (ii) the results of the annual 
                        evaluation of the programs at the Clerc 
                        Center, as determined using the 
                        accountability system adopted under 
                        subparagraph (A).

           *       *       *       *       *       *       *


Part B--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 for the establishment and operation, including 
construction and equipment, of a National Technical Institute 
for the Deaf.
  (2) The Secretary and the institution of higher education 
with which the Secretary has an agreement under this section--
          (A) shall periodically assess the need for 
        modification of the agreement; and
          (B) shall periodically update the agreement as 
        determined necessary by the Secretary or the 
        institution.
  (b) Provisions of Agreement.--The agreement shall--
          (1) provide that Federal funds appropriated for the 
        benefit of NTID will be used only for the purposes for 
        which appropriated and in accordance with the 
        applicable provisions of this Act and the agreement 
        made pursuant thereto;
          (2) provide that the Board of Trustees or other 
        governing body of the institution, 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 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, which 
        accounting the Secretary shall transmit to the 
        Committee on [Education and Labor] 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;
          (4) include such other conditions as the Secretary 
        deems necessary to carry out the purposes of this part;
          (5) provide that any laborer or mechanic employed by 
        any contractor or subcontractor in the performance of 
        work on any construction aided by Federal funds 
        appropriated for the benefit of NTID will be paid wages 
        at rates not less than those prevailing on similar 
        construction in the locality as determined by the 
        Secretary of Labor in accordance with subchapter IV of 
        chapter 31 of title 40, United States Code, commonly 
        referred to as the Davis-Bacon Act; except that the 
        Secretary of Labor shall have, with respect to the 
        labor standards specified in this paragraph, the 
        authority and functions set forth in Reorganization 
        Plan Numbered 14 of 1950 (5 U.S.C. App.) and section 
        3145 of title 40, United States Code; and
          (6) establish a policy of outreach and recruitment to 
        employ and advance in employment qualified individuals 
        with disabilities, particularly individuals who are 
        deaf or hard of hearing.
  (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 from its 
        obligation, or
          (2) the institution 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.

                        [PART C--OTHER PROGRAMS

[SEC. 121. CULTURAL EXPERIENCES GRANTS.

  [(a) In General.--The Secretary is authorized to, on a 
competitive basis, make grants to, and enter into contracts and 
cooperative agreements with, eligible entities to support the 
activities described in subsection (b).
  [(b) Activities.--In carrying out this section, the Secretary 
shall support activities providing cultural experiences, 
through appropriate nonprofit organizations with a demonstrated 
proficiency in providing such activities, that--
          [(1) enrich the lives of deaf and hard-of-hearing 
        children and adults;
          [(2) increase public awareness and understanding of 
        deafness and of the artistic and intellectual 
        achievements of deaf and hard-of-hearing persons; or
          [(3) promote the integration of hearing, deaf, and 
        hard-of-hearing persons through shared cultural, 
        educational, and social experiences.
  [(c) Applications.--An eligible entity that desires to 
receive a grant, or enter into a contract or cooperative 
agreement, under this section shall submit an application to 
the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for fiscal year 2009 and each of the five 
succeeding fiscal years.]

TITLE II--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 203. AUDIT.

  (a)  [General Accounting] 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) for the benefit of Gallaudet University or for 
        the construction of facilities for its use; or
          (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] 
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.
          (2) Compliance.--As used in paragraph (1), compliance 
        means compliance with sections 102(b), 105(b)(4), 
        112(b)(5), 203(c), 207(b)(2), subsections (c) through 
        (f) of section 207, and subsections (a), (b), and (c) 
        of section 209.
          (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 Labor] 
        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), as the case may be, but not 
        later than January 10 of each year.
  (c) Limitations Regarding Expenditure of Funds.--
          (1) In general.--No funds appropriated under this Act 
        for Gallaudet University, including the Kendall 
        Demonstration Elementary School and the Model Secondary 
        School for the Deaf, or for the National Technical 
        Institute for the Deaf may be expended on the 
        following:
                  (A) Alcoholic beverages.
                  (B) Goods or services for personal use.
                  (C) Housing and personal living expenses (but 
                only to the extent such expenses are not 
                required by written employment agreement).
                  (D) Lobbying, except that nothing in this 
                subparagraph shall be construed to prohibit the 
                University and NTID from educating the 
                Congress, the Secretary, and others regarding 
                programs, projects, and activities conducted at 
                those institutions.
                  (E) Membership in country clubs and social or 
                dining clubs and organizations.
          (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] 
                Education and the Workforce of the House of 
                Representatives and the Committee on Health, 
                Education, Labor, and Pensions of the Senate.
                  (B) Policies under subparagraph (A) shall 
                include the following:
                          (i) Noninstitutional professional 
                        activities.
                          (ii) Fringe benefits.
                          (iii) Interest on loans.
                          (iv) Rental cost of buildings and 
                        equipment.
                          (v) Sabbatical leave.
                          (vi) Severance pay.
                          (vii) Travel.
                          (viii) Royalties and other costs for 
                        uses of patents.
                  (C) The Secretary is not authorized to add 
                items to those specified in subparagraph (B).

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 shall prepare and submit an annual report to 
the Secretary, and to the Committee on [Education and Labor] 
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) The number of students during the preceding 
        academic year who enrolled and whether these were 
        first-time enrollments, who graduated, who found 
        employment, or who left without completing a program of 
        study, reported under each of the programs of the 
        University (elementary, secondary, undergraduate, and 
        graduate) and of NTID.
          (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) The number of students enrolled full- and 
                part-time.
                  (B) The number of these students who 
                completed or graduated from each of the 
                educational programs.
                  (C) The disposition of these students on the 
                date that is one year after the date of 
                graduation or completion of programs at NTID 
                and at the University and its elementary and 
                secondary schools in comparison to students 
                from non-minority backgrounds.
                  (D) The number of students needing and 
                receiving support services (such as tutoring 
                and counseling) at all educational levels.
                  (E) The number of recruitment activities by 
                type and location for all educational levels.
                  (F) Employment openings/vacancies and grade 
                level/type of job and number of these 
                individuals that applied and that were hired.
                  (G) Strategies (such as parent groups and 
                training classes in the development of 
                individualized education programs) used by the 
                elementary and secondary programs and the 
                extension centers to reach and actively involve 
                minority parents in the educational programs of 
                their children who are deaf or hard of hearing 
                and the number of parents who have been served 
                as a result of these activities.
          (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 NTID 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.
          (4) For the preceding fiscal year, a statement 
        showing the receipts of the University and NTID and 
        from what Federal sources, and a statement showing the 
        expenditures of each institution by function, activity, 
        and administrative and academic unit.
          (5) A statement showing the use of funds (both corpus 
        and income) provided by the Federal Endowment Program 
        under section 207.
          (6) A statement showing how such Endowment Program 
        funds are invested, what the gains or losses (both 
        realized and unrealized) on such investments were for 
        the most recent fiscal year, and what changes were made 
        in investments during that year.
          (7) Such additional information as the Secretary may 
        consider necessary.

SEC. 205. MONITORING, EVALUATION, AND REPORTING.

  (a) Activities.--The Secretary shall conduct monitoring and 
evaluation activities of the education programs and activities 
and the administrative operations of the University (including 
the elementary, secondary, undergraduate, and graduate 
programs) and of NTID. The Secretary may also conduct studies 
related to the provision of preschool, elementary, secondary, 
and postsecondary education and other related services to 
individuals who are deaf or hard of hearing. In carrying out 
the responsibilities described in this section, the Secretary 
is authorized to employ such consultants as may be necessary 
pursuant to section 3109 of title 5, United States Code.
  (b) Report.--The Secretary shall annually transmit 
information to Congress on the monitoring and evaluation 
activities pursuant to subsection (a), together with such 
recommendations, including recommendations for legislation, as 
the Secretary may consider necessary.
  [(c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary for each of 
the fiscal years 2009 through 2014 to carry out the monitoring 
and evaluation activities authorized under this section.]

           *       *       *       *       *       *       *


SEC. 207. FEDERAL ENDOWMENT PROGRAMS FOR GALLAUDET UNIVERSITY AND THE 
                    NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.

  (a) Establishment of Programs.--
          (1) The Secretary and the Board of Trustees of 
        Gallaudet University are authorized to establish the 
        Gallaudet University Federal Endowment Fund as a 
        permanent endowment fund, in accordance with this 
        section, for the purpose of promoting the financial 
        independence of the University. The Secretary and the 
        Board of Trustees may enter into such agreements as may 
        be necessary to carry out the purposes of this section 
        with respect to the University.
          (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 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.
  (b)  [Federal Payments] Payments.--
          [(1) The Secretary shall, consistent with this 
        section, make payments to the Federal endowment funds 
        established under subsection (a) from amounts 
        appropriated under subsection (h) for the fund 
        involved.
  [(2) Subject to the availability of appropriations, the 
Secretary shall make payments to each Federal endowment fund in 
amounts equal to sums contributed to the fund from non-Federal 
sources during the fiscal year in which the appropriations are 
made available (excluding transfers from other endowment funds 
of the institution involved).]
          (1) From amounts provided by the Secretary from funds 
        appropriated under subsections (a) and (b) of section 
        212, respectively, the University and NTID may make 
        payments, in accordance with this section, to the 
        Federal endowment fund of the institution involved.
          (2) Subject to paragraph (3), in any fiscal year, the 
        total amount of payments made under paragraph (1) to 
        the Federal endowment fund may not exceed the total 
        amount contributed to the fund from non-Federal sources 
        during such fiscal year.
          (3) For purposes of paragraph (2), the transfer of 
        funds by an institution involved to the Federal 
        endowment fund from another endowment fund of such 
        institution shall not be considered a contribution from 
        a non-Federal source.
  (c) Investments.--
          (1) Except as provided in subsection (e), the 
        University and NTID, respectively, shall invest the 
        Federal contribution of its Federal endowment fund 
        corpus and income in instruments and securities offered 
        through one or more cooperative service organizations 
        of operating educational organizations under section 
        501(f) of the Internal Revenue Code of 1986, or in low-
        risk instruments and securities in which a regulated 
        insurance company may invest under the laws of the 
        State in which the institution involved is located.
          (2) In managing the investment of its Federal 
        endowment fund, the University or NTID shall exercise 
        the judgment and care, under the prevailing 
        circumstances, that a person of prudence, discretion, 
        and intelligence would exercise in the management of 
        that person's own business affairs.
          (3) Neither the University nor NTID may invest its 
        Federal endowment fund corpus or income in real estate, 
        or in instruments or securities issued by an 
        organization in which an executive officer, a member of 
        the Board of Trustees of the University or of the host 
        institution, or a member of the advisory group 
        established under section 112 is a controlling 
        shareholder, director, or owner within the meaning of 
        Federal securities laws and other applicable laws. 
        Neither the University nor NTID may assign, 
        hypothocate, encumber, or create a lien on the Federal 
        endowment fund corpus without specific written 
        authorization of the Secretary.
  (d) Withdrawals and Expenditures.--
          (1) Except as provided in paragraph (3)(B), neither 
        the University nor NTID may withdraw or expend any of 
        the corpus of its Federal endowment fund.
          (2)(A) The University and NTID, respectively, may 
        withdraw or expend the income of its Federal endowment 
        fund only for expenses necessary to the operation of 
        that institution, including expenses of operations and 
        maintenance, administration, academic and support 
        personnel, construction and renovation, community and 
        student services programs, technical assistance, and 
        research.
          (B) Neither the University nor NTID may withdraw or 
        expend the income of its Federal endowment fund for any 
        commercial purpose.
          (C) The University and NTID shall maintain records of 
        the income generated from its respective Federal 
        endowment fund for the prior fiscal year.
          (3)(A) Except as provided in subparagraph (B), the 
        University and NTID, respectively, may, on an annual 
        basis, withdraw or expend not more than 50 percent of 
        the income generated from its Federal endowment fund 
        from the current fiscal year.
          (B) The Secretary may permit the University or NTID 
        to withdraw or expend a portion of its Federal 
        endowment fund corpus or more than 50 percent of the 
        income generated from its Federal endowment fund from 
        the prior fiscal year if the institution involved 
        demonstrates, to the Secretary's satisfaction, that 
        such withdrawal or expenditure is necessary because 
        of--
                  (i) a financial emergency, such as a pending 
                insolvency or temporary liquidity problem;
                  (ii) a life-threatening situation occasioned 
                by natural disaster or arson; or
                  (iii) another unusual occurrence or exigent 
                circumstance.
  (e) Investment and Expenditure Flexibility.--The corpus 
associated with a [Federal payment] payment under subsection 
(b) (and its non-Federal match) made to the Federal endowment 
fund of the University or NTID shall not be subject to the 
investment limitations of subsection (c)(1) after 10 fiscal 
years following the fiscal year in which the funds are matched, 
and the income generated from such corpus after the tenth 
fiscal year described in this subsection shall not be subject 
to such investment limitations or to the withdrawal and 
expenditure limitations of subsection (d)(3).
  (f) Recovery of Payments.--After notice and an opportunity 
for a hearing, the Secretary is authorized to recover any 
[Federal payments] payments under this section if the 
University or NTID--
          (1) makes a withdrawal or expenditure of the corpus 
        or income of its Federal endowment fund that is not 
        consistent with this section;
          (2) fails to comply with the investment standards and 
        limitations under this section; or
          (3) fails to account properly to the Secretary 
        concerning the investment of or expenditures from the 
        Federal endowment fund corpus or income.
  (g) Definitions.--As used in this section:
          (1) The term ``corpus'', with respect to a Federal 
        endowment fund under this section, means an amount 
        equal to the [Federal payments to such fund] payments 
        made under subsection (b), amounts contributed to the 
        fund from non-Federal sources, and appreciation from 
        capital gains and reinvestment of income.
          (2) The term ``Federal endowment fund'' means a fund, 
        or a tax-exempt foundation, established and maintained 
        pursuant to this section by the University or NTID, as 
        the case may be, for the purpose of generating income 
        for the support of the institution involved.
          (3) The term ``income'', with respect to a Federal 
        endowment fund under this section, means an amount 
        equal to the dividends and interest accruing from 
        investments of the corpus of such fund.
          (4) The term ``institution involved'' means the 
        University or NTID, as the case may be.
  [(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 2009 through 2014.
          [(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 2009 
        through 2014.
          [(3) Amounts appropriated under paragraph (1) or (2) 
        shall remain available until expended.]
  [(i)] (h) Effective Date.--The provisions of this section 
shall take effect as if included in this Act as enacted on 
August 4, 1986.

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 [Education and Labor] 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.
  (b) Construction of Agreements.--The agreements described in 
subsection (a) of this section shall continue in effect, to the 
extent that such agreements are not inconsistent with this Act.

           *       *       *       *       *       *       *


SEC. 210. RESEARCH PRIORITIES.

  (a) Research Priorities.--Gallaudet University and the 
National Technical Institute for the Deaf shall each establish 
and disseminate priorities for their national mission with 
respect to deafness related research, development, and 
demonstration activities, that reflect public input, through a 
process that includes consumers, constituent groups, and the 
heads of other federally funded programs. The priorities for 
the University shall include activities conducted as part of 
the University's elementary and secondary education programs 
under section 104.
  (b) Research Reports.--The University and NTID shall each 
prepare and submit an annual research report, to the Secretary, 
the Committee on [Education and Labor] Education and the 
Workforce of the House of Representatives, and the Committee on 
Health, Education, Labor, and Pensions of the Senate, not later 
than January 10 of each year, that shall include--
          (1) a summary of the public input received as part of 
        the establishment and dissemination of priorities 
        required by subsection (a), and the University's and 
        NTID's response to the input; and
          (2) a summary description of the research undertaken 
        by the University and NTID, the start and projected end 
        dates for each research project, the projected cost and 
        source or sources of funding for each project, and any 
        products resulting from research completed in the prior 
        fiscal year.

[SEC. 211. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.

  [(a) Conduct of Study.--
          [(1) In general.--The Secretary shall establish a 
        commission on the education of the deaf (in this 
        section referred to as the ``commission'') to conduct a 
        national study on the education of the deaf, to 
        identify education-related barriers to successful 
        postsecondary education experiences and employment for 
        individuals who are deaf, and those education-related 
        factors that contribute to successful postsecondary 
        education experiences and employment for individuals 
        who are deaf.
          [(2) Definition.--In this section the term ``deaf'', 
        when used with respect to an individual, means an 
        individual with a hearing impairment, including an 
        individual who is hard of hearing, an individual 
        deafened later in life, and an individual who is 
        profoundly deaf.
  [(b) Public Input and Consultation.--
          [(1) In general.--In conducting such study, the 
        commission shall obtain input from the public. To 
        obtain such input, the commission shall--
                  [(A) publish a notice with an opportunity for 
                comment in the Federal Register;
                  [(B) consult with individuals and 
                organizations representing a wide range of 
                perspectives on deafness-related issues, 
                including organizations representing 
                individuals who are deaf, parents of children 
                who are deaf, educators, and researchers; and
                  [(C) take such other action as the commission 
                deems appropriate, which may include holding 
                public meetings.
          [(2) Structured opportunities.--The commission shall 
        provide structured opportunities to receive and respond 
        to the viewpoints of the individuals and organizations 
        described in paragraph (1)(B).
  [(c) Report.--The commission shall report to the Secretary 
and Congress not later than 18 months after the date of the 
enactment of the Higher Education Opportunity Act regarding the 
results of the study. The report shall contain--
          [(1) recommendations relating to educated-related 
        factors that contribute to successful postsecondary 
        education experiences and employment for individuals 
        who are deaf, including recommendations for 
        legislation, that the commission deems appropriate; and
          [(2) a detailed summary of the input received under 
        subsection (b) and the ways in which the report 
        addresses such input.
  [(d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary for each of 
the fiscal years 2009 and 2010 to carry out the provisions of 
this section.]

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 2009 through 2014] $121,275,000 for each of the 
fiscal years 2019 through 2024 to carry out the provisions of 
title I and this title, relating to--
          (1) Gallaudet University;
          (2) Kendall Demonstration Elementary School; and
          (3) the Model Secondary School for the Deaf.
  (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 2009 through 2014] $70,016,000 for 
each of the fiscal years 2019 through 2024 to carry out the 
provisions of title I and this title relating to the National 
Technical Institute for the Deaf.
                              ----------                              


  TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES ASSISTANCE ACT OF 1978

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Tribally Controlled Colleges 
and Universities Assistance Act of 1978''.

                              definitions

  Sec. 2. (a) For purposes of this Act, the term--
          (1) ``Indian'' means a person who is a member of an 
        Indian tribe;
          (2) ``Indian tribe'' means any Indian tribe, band, 
        nation, or other organized group or community, 
        including any Alaskan Native village or regional or 
        village corporation as defined in or established 
        pursuant to the Alaskan Native Claims Settlement Act, 
        which is recognized as eligible for the special 
        programs and services provided by the United States to 
        Indians because of their status as Indians;
          (3) ``Secretary'', unless otherwise designated, means 
        the Secretary of the Interior;
          (4) ``tribally controlled college or university'' 
        means an institution of higher education which is 
        formally controlled, or has been formally sanctioned, 
        or chartered, by the governing body of an Indian tribe 
        or tribes, except that no more than one such 
        institution shall be recognized with respect to any 
        such tribe;
          (5) ``institution of higher education'' means an 
        institution of higher education as defined by section 
        101 of the Higher Education Act of 1965, except that 
        clause (2) of such section shall not be applicable and 
        the reference to Secretary in clause (5)(A) of such 
        section shall be deemed to refer to the Secretary of 
        the Interior;
          (6) ``national Indian organization'' means an 
        organization which the Secretary finds is nationally 
        based, represents a substantial Indian constituency, 
        and has expertise in the fields of tribally controlled 
        colleges and universities and Indian higher education;
          (7) ``Indian student'' means a student who is--
                  (A) a member of an Indian tribe; or
                  (B) a biological child of a member of an 
                Indian tribe, living or deceased; and
          (8) ``Indian student count'' means a number equal to 
        the total number of Indian students enrolled in each 
        tribally controlled college or university, determined 
        in a manner consistent with subsection (b) of this 
        section on the basis of the quotient of the sum of the 
        credit hours of all Indian students so enrolled, 
        divided by twelve[; and].
          [(9) ``satisfactory progress toward a degree or 
        certificate'' has the meaning given to such term by the 
        institution at which the student is enrolled.]
  (b) The following conditions shall apply for the purpose of 
determining the Indian student count pursuant to subsection 
(a)(8):
          [(1) Such number shall be calculated on the basis of 
        the registrations of Indian students as in effect at 
        the conclusion of the third week of each academic 
        term.]
          (1) Such number shall be calculated based on the 
        number of Indian students who are enrolled--
                  (A) at the conclusion of the third week of 
                each academic term; or
                  (B) on the fifth day of a shortened program 
                beginning after the conclusion of the third 
                full week of an academic term.
          (2) Credits earned in classes offered during a summer 
        term shall be counted toward the computation of the 
        Indian student count in the succeeding fall term.
          (3) Credits earned by any student who has not 
        obtained a high school degree or its equivalent shall 
        be counted toward the computation of the Indian student 
        count if the institution at which the student is in 
        attendance has established criteria for the admission 
        of such student on the basis of the student's ability 
        to benefit from the education or training offered. The 
        institution shall be presumed to have established such 
        criteria if the admission procedures for such studies 
        include counseling or testing that measures the 
        student's aptitude to successfully complete the course 
        in which the student has enrolled. No credits earned by 
        such student [for purposes of obtaining] solely for the 
        purpose of obtaining a high school degree or its 
        equivalent shall be counted toward the computation of 
        the Indian student count.
          (4) Indian students earning credits in any continuing 
        education program of a tribally controlled college or 
        university shall be included in determining the sum of 
        all credit hours.
          (5) Eligible credits earned in a continuing education 
        program--
                  (A) shall be determined as one credit for 
                every ten contact hours in the case of an 
                institution on a quarter system, or 15 contact 
                hours in the case of an institution on a 
                semester system, of participation in an 
                organized continuing education experience under 
                responsible sponsorship, capable direction, and 
                qualified instruction, as described in the 
                criteria established by the International 
                Association for Continuing Education and 
                Training; and
                  (B) shall be limited to ten percent of the 
                Indian student count of a tribally controlled 
                college or university.
          (6) Enrollment data from the prior-prior academic 
        year shall be used.

SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

  (a) Titles I and IV.--There are authorized to be appropriated 
$57,412,000 for each of fiscal years 2019 through 2024 to carry 
out titles I and IV.
  (b) Title V.--There are authorized to be appropriated 
$7,414,000 for each of fiscal years 2019 through 2024 to carry 
out title V.

    TITLE ITRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES--TRIBALLY 
    CONTROLLED [COLLEGES OR UNIVERSITIES] COLLEGES AND UNIVERSITIES

                                purpose

  Sec. 101. It is the purpose of this title to provide grants 
for the operation and improvement of tribally controlled 
[colleges or universities] colleges and universities to insure 
continued and expanded educational opportunities for Indian 
students, and to allow for the improvement and expansion of the 
physical resources of such institutions.

                           grants authorized

  Sec. 102. (a) The Secretary shall, subject to appropriations, 
make grants pursuant to this title to tribally controlled 
[colleges or universities] colleges and universities to aid in 
the postsecondary education of Indian students.
  (b) Grants made pursuant to this title shall go into the 
general operating funds of the institution to defray, at the 
determination of the tribally controlled college or university, 
expenditures for academic, educational, and administrative 
purposes and for the operation and maintenance of the the 
college or university. Funds provided pursuant to this title 
shall not be used in connection with religious worship or 
sectarian instruction.

                       eligible grant recipients

  Sec. 103. To be eligible for assistance under this title, a 
tribally controlled college or university must be one which--
          (1) is governed by a board of directors or board of 
        trustees a majority of which are Indians;
          (2) demonstrates adherence to stated goals, a 
        philosophy, or a plan of operation which is directed to 
        meet the needs of Indians;
          (3) if in operation for more than one year, has 
        students a majority of whom are Indians; and
          (4)(A) is accredited by a nationally recognized 
        accrediting agency or association determined by the 
        Secretary of Education to be a reliable authority with 
        regard to the quality of training offered; or
          (B) according to such an agency or association, is 
        making reasonable progress toward accreditation.

                            [planning grants

  [Sec. 104. (a) The Secretary shall establish a program in 
accordance with this section to make grants to tribes and 
tribal entities (1) to conduct planning activities for the 
purpose of developing proposals for the establishment of 
tribally controlled[colleges or universities]colleges and 
universities, or (2) to determine the need and potential for 
the establishment of such[colleges or universities]colleges and 
universities.
  [(b) The Secretary shall establish, by regulation, procedures 
for the submission and review of applications for grants under 
this section.
  [(c) From the amount appropriated to carry out this title for 
any fiscal year (exclusive of sums appropriated for section 
105), the Secretary shall reserve (and expend) an amount 
necessary to make grants to five applicants under this section 
of not more than $15,000 each, or an amount necessary to make 
grants in that amount to each of the approved applicants, if 
less than five apply and are approved.]

SEC. 105. TECHNICAL ASSISTANCE CONTRACTS.

  (a) Technical Assistance.--
          (1) In general.--The Secretary shall provide, upon 
        request from a tribally controlled college or 
        university which is receiving funds under section 108, 
        technical assistance either directly or through 
        contract.
          (2) Designated organization.--The Secretary shall 
        require that a contract for technical assistance under 
        paragraph (1) shall be awarded to an organization 
        designated by the tribally controlled college or 
        university to be assisted.
  (b) Effect of Section.--No authority to enter into contracts 
provided by this section shall be effective except to the 
extent authorized in advance by appropriations Acts.

                          eligibility studies

  Sec. 106. (a) The Secretary is authorized to enter into an 
agreement with the Secretary of Education to assist the [Bureau 
of Indian Affairs] Bureau of Indian Education in developing 
plans, procedures, and criteria for conducting the eligibility 
studies required by this section. Such agreement shall provide 
for continuing technical assistance in the conduct of such 
studies.
  (b) The Secretary, within thirty days after a request by any 
Indian tribe, shall initiate a eligibility study to determine 
whether there is justification to encourage and maintain a 
tribally controlled college or university, and, upon a positive 
determination, shall aid in the preparation of grant 
applications and related budgets which will insure successful 
operation of such an institution. Such a positive determination 
shall be effective for the fiscal year succeeding the fiscal 
year in which such determination is made.
  (c) Funds to carry out the purposes of this section for any 
fiscal year may be drawn from either--
          (1) general administrative appropriations to the 
        Secretary made after the date of enactment of this Act 
        for such fiscal year; or
          (2) not more than 5 per centum of the funds 
        appropriated to carry out section 107 for such fiscal 
        year.

grants to tribally controlled [colleges or universities]  colleges and 
                              universities

  Sec. 107. (a) Grants shall be made under this title only in 
response to applications by tribally controlled community 
[colleges or universities] colleges and universities. Such 
applications shall be submitted at such time, in such manner, 
and will contain or be accompanied by such information as the 
Secretary may reasonably require pursuant to regulations. Such 
application shall include a description of recordkeeping 
procedures for the expenditure of funds received under this Act 
which will allow the Secretary to audit and monitor programs 
conducted with such funds. The Secretary shall not consider any 
grant application unless a eligibility study has been conducted 
under section 106 and it has been found that the applying 
college or university will service a reasonable student 
population.
  (b) The Secretary shall consult with the Secretary of 
Education to determine the reasonable number of students 
required to support a tribally controlled college or 
university. Consideration shall be given to such factors as 
tribal and cultural differences, isolation, the presence of 
alternate education sources, and proposed curriculum.
  [(c) Priority in grants shall be given to institutions which 
are operating on the date of enactment of this Act and which 
have a history of service to the Indian people. In the first 
year for which funds are appropriated to carry out this 
section, the number of grants shall be limited to not less than 
eight nor more than fifteen.]
  [(d)] (c) In making grants pursuant to this section, the 
Secretary shall, to the extent practicable, consult with 
national Indian organizations and with tribal governments 
chartering the institutions being considered.

                            amount of grants

  Sec. 108. (a) Requirement.--
          (1) In general.--Except as provided in paragraph (2) 
        and section 111, the Secretary shall, subject to 
        appropriations, grant for each academic year to each 
        tribally controlled college or university having an 
        application approved by the Secretary an amount equal 
        to the product obtained by multiplying--
                  (A) the Indian student count at such college 
                or university during the academic year 
                preceding the academic year for which such 
                funds are being made available, as determined 
                by the Secretary in accordance with section 
                2(a)(8); and
                  (B) $8,000, as adjusted annually for 
                inflation.
          (2) Exception.--The amount of a grant under paragraph 
        (1) shall not exceed an amount equal to the total cost 
        of the education program provided by the applicable 
        tribally controlled college or university.
  (b)(1) The Secretary shall make payments, pursuant to grants 
under this Act, of not less than 95 percent [of the funds 
available for allotment by October 15 or no later than 14 days 
after appropriations become available] of the amounts 
appropriated for any fiscal year on or before July 1 of that 
fiscal year, with a payment equal to the remainder of any grant 
to which a grantee is entitled to be made no later than 
[January 1] September 30 of each fiscal year.
  (2) Notwithstanding any other provision of law, the Secretary 
shall not, in disbursing funds provided under this title, use 
any method of payment which was not used during fiscal year 
1987 in the disbursement of funds provided under this title.
  (3)(A) Notwithstanding any provision of law other than 
subparagraph (B), any interest or investment income that 
accrues on any funds provided under this title after such funds 
are paid to the tribally controlled college or university and 
before such funds are expended for the purpose for which such 
funds were provided under this title shall be the property of 
the tribally controlled college or university and shall not be 
taken into account by any officer or employee of the Federal 
Government in determining whether to provide assistance, or the 
amount of assistance, to the tribally controlled college or 
university under any provision of Federal law.
  (B) All interest or investment income described in 
subparagraph (A) shall be expended by the tribally controlled 
college or university by no later than the close of the fiscal 
year succeeding the fiscal year in which such interest or 
investment income accrues.
  (4) Funds provided under this title may only be invested by 
the tribally controlled college or university in obligations of 
the United States or in obligations or securities that are 
guaranteed or insured by the United States.
  (c)(1) Each institution receiving payments under this title 
shall annually provide to the Secretary an accurate and 
detailed accounting of its operating and maintenance expenses 
and such other information concerning costs as the Secretary 
may request.
  (2) The Secretary shall, in consultation with the National 
Center for Education Statistics, establish a data collection 
system for the purpose of obtaining accurate information with 
respect to the needs and costs of operation and maintenance of 
tribally controlled [colleges or universities] colleges and 
universities.
  (d) Nothing in this section shall be construed as interfering 
with, or suspending the obligation of the Bureau for, the 
implementation of all legislative provisions enacted prior to 
April 28, 1988, specifically including those of Public Law 98-
192.

                        effect on other programs

  Sec. [109] . (a) Except as specifically provided in this 
title, eligibility for assistance under this title shall not, 
by itself, preclude the eligibility of any tribally controlled 
college or university to receive Federal financial assistance 
under any program authorized under the Higher Education Act of 
1965 or any other applicable program for the benefit of 
institutions of higher education, community colleges, or 
postsecondary educational institutions.
  (b)(1) The amount of any grant for which tribally controlled 
[colleges or universities] colleges and universities are 
eligible under section 108 shall not be altered because of 
funds allocated to any such [colleges or universities] colleges 
and universities from funds appropriated under the Act of 
November 2, 1921 (42 Stat. 208; 25 U.S.C. 13).
  (2) No tribally controlled college or university shall be 
denied funds appropriated under such Act of November 2, 1921, 
because of the funds it receives under this Act.
  (3) No tribally controlled college or university for which a 
tribe has designated a portion of the funds appropriated for 
the tribe from funds appropriated under the Act of November 2, 
1921 (42 Stat. 208; 25 U.S.C. 13) may be denied a contract for 
such portion under the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450 et seq.) (except as provided in 
that Act), or denied appropriate contract support to administer 
such portion of the appropriated funds.
  (c) For the purposes of sections 312(2)(A)(i) and 
322(a)(2)(A)(i) of the Higher Education Act of 1965, any Indian 
student who receives a student assistance grant from the 
[Bureau of Indian Affairs] Bureau of Indian Education for 
postsecondary education shall be deemed to have received such 
assistance under subpart 1 of part A of title IV of such Act.
  [(c)] (d) Notwithstanding any other provision of law, funds 
provided under this title to the tribally controlled college or 
university may be treated as non-Federal law which requires 
that non-Federal or private funds of the college or university 
be used in a project or for a specific purpose.

                      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 2009 and] such sums as may be necessary from the amount 
made available under section 3(a) for each fiscal year [for 
each of the five succeeding fiscal years].
  (2) There is authorized to be appropriated for the purpose of 
carrying out section 107, such sums as may be necessary [for 
fiscal year 2009 and such sums as may be necessary for each of 
the five succeeding fiscal years.] from the amount made 
available under section 3(a) for each fiscal year.
  (3) There is authorized to be appropriated for the purpose of 
carrying out sections 112(b) and 113, such sums as may be 
necessary [for fiscal year 2009 and such sums as may be 
necessary for each of the five succeeding fiscal years.] from 
the amount made available under section 3(a) for each fiscal 
year.
  (4) Funds appropriated pursuant to the authorizations under 
this section for the fiscal year [2009] 2019 and for each of 
the five succeeding 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] colleges and universities being designated as its 
own certifying agency.
  (b)(1) For the purpose of affording adequate notice of 
funding available under this Act, amounts appropriated in an 
appropriation Act for any fiscal year to carry out this Act 
shall become available for obligation on July 1 of that fiscal 
year and shall remain available until September 30 of the 
succeeding fiscal year.
  (2) In order to effect a transition to the forward funding 
method of timing appropriation action described in paragraph 
(1), there are authorized to be appropriated, in an 
appropriation Act or Acts for the same fiscal year, two 
separate appropriations to carry out this Act, the first of 
which shall not be subject to paragraph (1).

                           grant adjustments

  Sec. 111. (a)(1) If the sums appropriated for any fiscal year 
pursuant to section 110(a)(2) for grants under section 107 are 
not sufficient to pay in full the total amount which approved 
applicants are eligible to receive under such section for such 
fiscal year--
          (A) the Secretary shall first allocate to each such 
        applicant which received funds under section 107 for 
        the preceding fiscal year an amount equal to 95 percent 
        of the payment received by such applicant under section 
        108;
          (B) the Secretary shall next allocate to applicants 
        who did not receive funds under such section for the 
        preceding fiscal year an amount equal to 100 per centum 
        of the product of--
                  (i) the per capita payment for the preceding 
                fiscal year; and
                  (ii) the applicant's projected Indian student 
                count for the academic year for which payment 
                is being made;
        in the order in which such applicants have qualified 
        for assistance in accordance with such section so that 
        no amount shall be allocated to a later qualified 
        applicant until each earlier qualified applicant is 
        allocated an amount equal to such product; and
          (C) if additional funds remain after making the 
        allocations required by subparagraphs (A) and (B), the 
        Secretary shall allocate such funds by--
                  (i) ratably increasing the amounts of the 
                grants determined under subparagraph (A) until 
                such grants are equal to 100 per centum of the 
                product described in such subparagraph; and
                  (ii) then ratably increasing the amounts of 
                both (I) the grants determined under 
                subparagraph (A), as increased under clause (i) 
                of this subparagraph, and (II) the grants 
                determined under subparagraph (B).
  (2) For purposes of paragraph (1) of this subsection, the 
term ``per capita payment'' for any fiscal year shall be 
determined by dividing the amount available for grants to 
tribally controlled [colleges or universities] colleges and 
universities under section 107 for such fiscal year by the sum 
of the Indian student counts of such [colleges or universities] 
colleges and universities for such fiscal year. The Secretary 
shall, on the basis of the most satisfactory data available, 
compute the Indian student count for any fiscal year for which 
such count was not used for the purpose of making allocations 
under this title.
  (b)(1) If the sums appropriated for any fiscal year for 
grants under section 107 are not sufficient to pay in full the 
total amount of the grants determined pursuant to subsection 
(a)(1)(A), the amount which applicants described in such 
subsection are eligible to receive under section 107 for such 
fiscal year shall be ratably reduced.
  (2) If any additional funds become available for making 
payments under section 107 for any fiscal year to which 
subsection (a) or paragraph (1) of this subsection applies, 
such additional amounts shall be allocated by first increasing 
grants reduced under paragraph (1) of this subsection on the 
same basis as they were reduced and by then allocating the 
remainder in accordance with subsection (a). Sums appropriated 
in excess of the amount necessary to pay in full the total 
amounts for which applicants are eligible under section 107 
shall be allocated by ratably increasing such total amounts.
  (3) References in this subsection and subsection (a) to 
section 107 shall, with respect to fiscal year 1983, be deemed 
to refer to section 106 as in effect at the beginning of such 
fiscal year.
  (c) In any fiscal year in which the amounts for which grant 
recipients are eligible to receive have been reduced under the 
first sentence of subsection (a) of this section, and in which 
additional funds have not been made available to pay in full 
the total of such amounts under the second sentence of such 
subsection, each grantee shall report to the Secretary any 
unused portion of received funds ninety days prior to the grant 
expiration date. The amounts so reported by any grant recipient 
shall be made available for allocation to eligible grantees on 
a basis proportionate to the amount which is unfunded as a 
result of the ratable reduction, but no grant recipient shall 
receive, as a result of such reallocation, more than the amount 
provided for under section 107(a) of this title.

                          report on facilities

  Sec. 112. (a) The Secretary shall provide for the conduct of 
a study of facilities available for use by tribally controlled 
[colleges or universities] colleges and universities. Such 
study shall consider the condition of currently existing 
[Bureau of Indian Affairs] Bureau of Indian Education 
facilities which are vacant or underutilized and shall consider 
available alternatives for renovation, alteration, repair, and 
reconstruction of such facilities (including renovation, 
alteration, repair, and reconstruction necessary to bring such 
facilities into compliance with local building codes). Such 
study shall also identify the need for new construction. A 
report on the results of such study shall be submitted to the 
Congress not later than eighteen months after the date of 
enactment of the Tribally Controlled Community College 
Assistance Amendments of 1986. Such report shall also include 
an identification of property--
          (1) on which structurally sound buildings suitable 
        for use as educational facilities are located, and
          (2) which is available for use by tribally controlled 
        community [colleges or universities] colleges and 
        universities under section 202(a)(2) of the Federal 
        Property and Administrative Services Act of 1949 (40 
        U.S.C. 483(a)(2)) and under the Act of August 6, 1956 
        (70 Stat. 1057; 25 U.S.C. 443a).
  (b) The Secretary, in consultation with the [Bureau of Indian 
Affairs] Bureau of Indian Education, shall initiate a program 
to conduct necessary renovations, alterations, repairs, and 
reconstruction identified pursuant to subsection (a) of this 
section.
  (c)(1) The Secretary shall enter into a contract with an 
organization described in paragraph (2) to establish and 
provide on an annual basis criteria for the determination and 
prioritization in a consistent and equitable manner of the 
facilities construction and renovation needs of [colleges or 
universities] colleges and universities that receive funding 
under this Act or the [Navajo Community College Act] Dine 
College Act.
  (2) An organization described in this section is any 
organization that--
          (A) is eligible to receive a contract under the 
        Indian Self-Determination and Education Assistance Act; 
        and
          (B) has demonstrated expertise in areas and issues 
        dealing with tribally controlled [colleges or 
        universities] colleges and universities.
  (3) The Secretary shall include the priority list established 
pursuant to this subsection in the budget submitted annually to 
the Congress.
  (d) For the purposes of this section, the term 
``reconstruction'' has the meaning provided in the first 
sentence of subparagraph (B) of section 742(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1132e-1(2)(B)).

                     construction of new facilities

  Sec. 113. (a) With respect to any tribally controlled college 
or university for which the report of the Administrator of 
General Services under section 112(a) of this Act identifies a 
need for new construction, the Secretary shall, subject to 
appropriations and on the basis of an application submitted in 
accordance with such requirements as the Secretary may 
prescribe by regulation, provide grants for such construction 
in accordance with this section.
  (b) In order to be eligible for a grant under this section, a 
tribally controlled college or university--
          (1) must be a current recipient of grants under 
        section 105 or 107, and
          (2) must be accredited by a nationally recognized 
        accrediting agency listed by the Secretary of Education 
        pursuant to the last sentence of section 101 of the 
        Higher Education Act of 1965, except that such 
        requirement may be waived if the Secretary determines 
        that there is a reasonable expectation that such 
        college or university will be fully accredited within 
        eighteen months. In any case where such a waiver is 
        granted, grants under this section shall be available 
        only for planning and development of proposals for 
        construction.
  (c)(1) Except as provided in paragraph (2), grants for 
construction under this section shall not exceed 80 per centum 
of the cost of such construction, except that no tribally 
controlled college or university shall be required to expend 
more than $400,000 in fulfillment of the remaining 20 per 
centum. For the purpose of providing its required portion of 
the cost of such construction, a tribally controlled college or 
university may use funds provided under the Act of November 2, 
1921 (25 U.S.C. 13), popularly referred to as the Snyder Act.
  (2) The Secretary may waive, in whole or in part, the 
requirements of paragraph (1) in the case of any tribally 
controlled college or university which demonstrates that 
neither such college or university nor the tribal government 
with which it is affiliated have sufficient resources to comply 
with such requirements. The Secretary shall base a decision on 
whether to grant such a waiver solely on the basis of the 
following factors: (A) tribal population; (B) potential student 
population; (C) the rate of unemployment among tribal members; 
(D) tribal financial resources; and (E) other factors alleged 
by the college or university to have a bearing on the 
availability of resources for compliance with the requirements 
of paragraph (1) and which may include the educational 
attainment of tribal members.
  (d) If, within twenty years after completion of construction 
of a facility which has been constructed in whole or in part 
with a grant made available under this section--
          (1) the facility ceases to be used by the applicant 
        in a public or nonprofit capacity as an academic 
        facility, unless the Secretary determines that there is 
        good cause for releasing the institution from this 
        obligation, and
          (2) the tribe with which the applicant is affiliated 
        fails to use the facility for a public purpose approved 
        by the tribal government in futherance of the general 
        welfare of the community served by the tribal 
        government,
title to the facility shall vest in the United States and the 
applicant (or such tribe if such tribe is the successor in 
title to the facility) shall be entitled to recover from the 
United States an amount which bears the same ratio to the 
present value of the facility as the amount of the applicant's 
contribution (excluding any funds provided under the Act of 
November 2, 1921 (25 U.S.C. 13)) bore to the original cost of 
the facility. Such value shall be determined by agreement of 
the parties or by action brought in the United States district 
court for the district in which such facility is located.
  (e) No construction assisted with funds under this section 
shall be used for religious worship or a sectarian activity or 
for a school or department of divinity.
  (f) For the purposes of this section--
          (1) the term ``construction'' includes reconstruction 
        or renovation (as such terms are defined in the first 
        sentence of subparagraph (B) of section 742(2) of the 
        Higher Education Act of 1965 (20 U.S.C. 1132e-
        1(2)(B))); and
          (2) the term ``academic facilities'' has the meaning 
        provided such term under section 742(1) of the Higher 
        Education Act of 1965 (20 U.S.C. 1132e-1(1)).

                        miscellaneous provisions

  Sec. 114. (a) The Navajo Tribe shall not be eligible to 
participate under the provisions of this title.
  (b)(1) The Secretary shall not provide any funds to any 
institution which denies admission to any Indian student 
because such individual is not a member of a specific Indian 
tribe, or which denies admission to any Indian student because 
such individual is a member of a specific tribe.
  (2) The Secretary shall take steps to recover any unexpended 
and unobligated funds provided under this title held by an 
institution determined to be in violation of paragraph (1).

                         [rules and regulations

  [Sec. 115. (a) Within four months from the date of enactment 
of this Act, the Secretary shall, to the extent practicable, 
consult with national Indian organizations to consider and 
formulate appropriate rules and regulations for the conduct of 
the grant program established by this title.
  [(b) Within six months from the date of enactment of this 
Act, the Secretary shall publish proposed rules and regulations 
in the Federal Register for the purpose of receiving comments 
from interested parties.
  [(c) Within ten months from the date of enactment of this 
Act, the Secretary shall promulgate rules and regulations for 
the conduct of the grant program established by this title.
  [(d) Funds to carry out the purposes of this section may be 
drawn from general administrative appropriations to the 
Secretary made after the date of enactment of this Act.]

           *       *       *       *       *       *       *


[TITLE III--TRIBALLY CONTROLLED COLLEGE OR UNIVERSITY ENDOWMENT PROGRAM

                                [purpose

  [Sec. 301. It is the purpose of this title to provide grants 
for the encouragement of endowment funds for the operation and 
improvement of tribally controlled colleges or universities.

             [establishment of program; program agreements

  [Sec. 302. (a) From the amount appropriated pursuant to 
section 306, the Secretary shall establish a program of making 
endowment grants to tribally controlled colleges or 
universities which are current recipients of assistance under 
section 107 of this Act or under section 3 of the Navajo 
Community College Act. No such college or university shall be 
ineligible for such a grant for a fiscal year by reason of the 
receipt of such a grant for a preceding fiscal year, but no 
such college or university shall be eligible for such a grant 
for a fiscal year if such college or university has been 
awarded a grant under section 331 of the Higher Education Act 
of 1965 for such fiscal year.
  [(b) No grant for the establishment of an endowment fund by a 
tribally controlled college or university shall be made unless 
such college or university enters into an agreement with the 
Secretary which--
          [(1) provides for the investment and maintenance of a 
        trust fund, the corpus and earnings of which shall be 
        invested in the same manner as funds are invested under 
        paragraph (2) of section 331(c) of the Higher Education 
        Act of 1965, except that for purposes of this 
        paragraph, the term ``trust fund'' means a fund 
        established by an institution of higher education or by 
        a foundation that is exempt from taxation and is 
        maintained for the purpose of generating income for the 
        support of the institution, and may include real 
        estate;
          [(2) provides for the deposit in such trust fund of--
                  [(A) any Federal capital contributions made 
                from funds appropriated under section 306;
                  [(B) a capital contribution by such college 
                or university in an amount (or of a value) 
                equal to half of the amount of each Federal 
                capital contribution; and
                  [(C) any earnings of the funds so deposited;
          [(3) provides that such funds will be deposited in 
        such a manner as to insure the accumulation of interest 
        thereon at a rate not less than that generally 
        available for similar funds deposited at the banking or 
        savings institution for the same period or periods of 
        time;
          [(4) provides that, if at any time such college or 
        university withdraws any capital contribution made by 
        that college or university, an amount of Federal 
        capital contribution equal to twice the amount of (or 
        value of) such withdrawal shall be withdrawn and 
        returned to the Secretary for reallocation to other 
        colleges or universities;
          [(5) provides that no part of the net earnings of 
        such trust fund will inure to the benefit of any 
        private person; and
          [(6) includes such other provisions as may be 
        necessary to protect the financial interest of the 
        United States and promote the purpose of this title and 
        as are agreed to by the Secretary and the college or 
        university, including a description of recordkeeping 
        procedures for the expenditure of accumulated interest 
        which will allow the Secretary to audit and monitor 
        programs and activities conducted with such interest.

                             [use of funds

  [Sec. 303. Interest deposited, pursuant to section 
302(b)(2)(C), in the trust fund of any tribally controlled 
college or university may be periodically withdrawn and used, 
at the discretion of such college or university, to defray any 
expenses associated with the operation of such college or 
university, including expense of operations and maintenance, 
administration, academic and support personnel, community and 
student services programs, and technical assistance.

                 [compliance with matching requirement

  [Sec. 304. For the purpose of complying with the contribution 
requirement of section 302(b)(2)(B), a tribally controlled 
college or university may use funds which are available from 
any private or tribal source. Any real or personal property 
received by a tribally controlled college or university as a 
donation or gift on or after the date of the enactment of this 
sentence may, to the extent of its fair market value as 
determined by the Secretary, be used by such college or 
university as its contribution pursuant to section 
302(b)(2)(B), or as part of such contribution, as the case may 
be. In any case in which any such real or personal property so 
used is thereafter sold or otherwise disposed of by such 
college or university, the proceeds therefrom shall be 
deposited pursuant to section 302(b)(2)(B) but shall not again 
be considered for Federal capital contribution purposes.

                          [allocation of funds

  [Sec. 305. (a) From the amount appropriated pursuant to 
section 306, the Secretary shall allocate to each tribally 
controlled college or university which is eligible for an 
endowment grant under this title an amount for a Federal 
capital contribution equal to twice the value of the property 
or the amount which such college or university demonstrates has 
been placed within the control of, or irrevocably committed to 
the use of, the college or university and is available for 
deposit as a capital contribution of that college or university 
in accordance with section 302(b)(2)(B), except that the 
maximum amount which may be so allocated to any such college or 
university for any fiscal year shall not exceed $750,000.
  [(b) If for any fiscal year the amount appropriated pursuant 
to section 306 is not sufficient to allocate to each tribally 
controlled college or university an amount equal to twice the 
value of the property or the amount demonstrated by such 
college or university pursuant to subsection (a), then the 
amount of the allocation to each such college or university 
shall be ratably reduced.

                    [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 2009 and such sums as may be necessary for each of the 
five succeeding fiscal years.
  [(b) Any funds appropriated pursuant to subsection (a) are 
authorized to remain available until expended.]

                 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. 402. GRANTS AUTHORIZED.

  (a) General Authority.--The Secretary is authorized, subject 
to the availability of appropriations, to make grants to 
tribally controlled[colleges or universities]colleges and 
universities which receive grants under either this Act or 
the[Navajo Community College Act]Dine College Act for the 
establishment and support of tribal economic development and 
education institutes. Each program conducted with assistance 
under a grant under this subsection shall include at least the 
following activities:
          (1) Determination of the economic development needs 
        and potential of the Indian tribes involved in the 
        program, including agriculture and natural resource 
        needs.
          (2) Development of consistent courses of instruction 
        to prepare postsecondary students, tribal officials and 
        others to meet the needs defined under paragraph (1). 
        The development of such courses may be coordinated with 
        secondary institutions to the extent practicable.
          (3) The conduct of vocational courses, including 
        administrative expenses and student support services.
          (4) Technical assistance and training to Federal, 
        tribal and community officials and business managers 
        and planners deemed necessary by the institution to 
        enable full implementation of, and benefits to be 
        derived from, the program developed under paragraph 
        (1).
          (5) Clearinghouse activities encouraging the 
        coordination of, and providing a point for the 
        coordination of, all vocational activities (and 
        academically related training) serving all students of 
        the Indian tribe involved in the grant.
          (6) The evaluation of such grants and their effect on 
        the needs developed under paragraph (1) and tribal 
        economic self-sufficiency.
  (b) Amount and Duration.--The grants shall be of such amount 
and duration as to afford the greatest opportunity for success 
and the generation of relevant data.
  (c) Applications.--Institutions which receive funds under 
other titles of this Act or the [Navajo Community College Act] 
Dine College Act may apply for grants under this title either 
individually or as consortia. Each applicant shall act in 
cooperation with an Indian tribe or tribes in developing and 
implementing a grant under this part.

SEC. 403. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for grants under this 
title, such sums as may be necessary [for fiscal year 2009 and 
such sums as may be necessary for each of the five succeeding 
fiscal years.] from the amount made available under section 
3(a) for each fiscal year.

    TITLE V--TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL 
                              INSTITUTIONS

SEC. 501. DEFINITION OF TRIBALLY CONTROLLED POSTSECONDARY CAREER AND 
                    TECHNICAL INSTITUTION.

  In this title, the term ``tribally controlled postsecondary 
career and technical institution'' has the meaning given the 
term in section 3 of the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302).

SEC. 502. TRIBALLY CONTROLLED POSTSECONDARY CAREER AND TECHNICAL 
                    INSTITUTIONS PROGRAM.

  (a) In General.--Subject to the availability of 
appropriations, for fiscal year 2009 and each fiscal year 
thereafter, the Secretary shall--
          (1) subject to subsection (b), select two tribally 
        controlled postsecondary career and technical 
        institutions to receive assistance under this title; 
        and
          (2) provide funding to the selected tribally 
        controlled postsecondary career and technical 
        institutions to pay the costs (including institutional 
        support costs) of operating postsecondary career and 
        technical education programs for Indian students at the 
        tribally controlled postsecondary career and technical 
        institutions.
  (b) Selection of Certain Institutions.--
          (1) Requirement.--For each fiscal year during which 
        the Secretary determines that a tribally controlled 
        postsecondary career and technical institution 
        described in paragraph (2) meets the definition 
        referred to in section 501, the Secretary shall select 
        that tribally controlled postsecondary career and 
        technical institution under subsection (a)(1) to 
        receive funding under this section.
          (2) Institutions.--The two tribally controlled 
        postsecondary career and technical institutions 
        referred to in paragraph (1) are--
                  (A) the United Tribes Technical College; and
                  (B) the Navajo Technical College.
  (c) Method of Payment.--For each applicable fiscal year, the 
Secretary shall provide funding under this section to each 
tribally controlled postsecondary career and technical 
institution selected for the fiscal year under subsection 
(a)(1) in a lump sum payment for the fiscal year.
  (d) Distribution.--
          (1) In general.--For fiscal year 2009 and each fiscal 
        year thereafter, of amounts made available pursuant to 
        section 504, the Secretary shall distribute to each 
        tribally controlled postsecondary career and technical 
        institution selected for the fiscal year under 
        subsection (a)(1) an amount equal to the greater of--
                  (A) the total amount appropriated for the 
                tribally controlled postsecondary career and 
                technical institution for fiscal year 2006; or
                  (B) the total amount appropriated for the 
                tribally controlled postsecondary career and 
                technical institution for fiscal year 2008.
          (2) Excess amounts.--If, for any fiscal year, the 
        amount made available pursuant to section 504 exceeds 
        the sum of the amounts required to be distributed under 
        paragraph (1) to the tribally controlled postsecondary 
        career and technical institutions selected for the 
        fiscal year under subsection (a)(1), the Secretary 
        shall distribute to each tribally controlled 
        postsecondary career and technical institution selected 
        for that fiscal year a portion of the excess amount, to 
        be determined by--
                  (A) dividing the excess amount by the 
                aggregate Indian student count (as defined in 
                section 117(h) of the Carl D. Perkins Career 
                and Technical Education Act of 2006 (20 U.S.C. 
                2327(h)) of such institutions for the prior 
                academic year; and
                  (B) multiplying the quotient described in 
                subparagraph (A) by the Indian student count of 
                each such institution for the prior academic 
                year.

SEC. 503. APPLICABILITY OF OTHER LAWS.

  (a) In General.--Paragraphs (4) and (8) of subsection (a), 
and subsection (b), of section 2, sections 105, 108, 111, 112 
and 113, and titles II, III, and IV shall not apply to this 
title.
  (b) Indian Self-Determination and Education Assistance.--
Funds made available pursuant to this title shall be subject to 
the Indian Self-Determination and Education Assistance Act (25 
U.S.C. 450 et seq.).
  (c) Election to Receive.--A tribally controlled postsecondary 
career and technical institution selected for a fiscal year 
under section 502(b) may elect to receive funds pursuant to 
section 502 in accordance with an agreement between the 
tribally controlled postsecondary career and technical 
institution and the Secretary under the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et 
seq.) if the agreement is in existence on the date of enactment 
of the Higher Education Opportunity Act.
  (d) Other Assistance.--Eligibility for, or receipt of, 
assistance under this title shall not preclude the eligibility 
of a tribally controlled postsecondary career and technical 
institution to receive Federal financial assistance under--
          (1) any program under the Higher Education Act of 
        1965 (20 U.S.C. 1001 et seq.);
          (2) any program under the Carl D. Perkins Career and 
        Technical Education Act of 2006; or
          (3) any other applicable program under which a 
        benefit is provided for--
                  (A) institutions of higher education;
                  (B) community colleges; or
                  (C) postsecondary educational institutions.

SEC. 504. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated such sums as are 
necessary [for fiscal year 2009 and each fiscal year thereafter 
to carry out this title.] from the amount made available under 
section 3(b) for each fiscal year.
                              ----------                              


                        ACT OF DECEMBER 15, 1971

                          (Public Law 92-189)

 AN ACT To authorize grants for the Navajo Community College, and for 
                            other purposes.

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[``Navajo Community College Act''] ``Dine 
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 such 
sums as are necessary [for fiscal years 2009 through 2014] from 
the amount made available under subsection (b)(1) for each 
fiscal year.
  (2) Sums appropriated pursuant to this subsection for 
construction shall, unless otherwise provided in appropriations 
Acts, remain available until expended.
  (3) Sums described in paragraph (2) shall be used to provide 
grants for construction activities, including the construction 
of buildings, water and sewer facilities, roads, information 
technology and telecommunications infrastructure, classrooms, 
and external structures (such as walkways).
  (b)(1) There are authorized to be appropriated for grants to 
Dine College [such sums as are necessary for fiscal years 2009 
through 2014] $13,600,000 for each of fiscal years 2019 through 
2024 to pay the cost of--
          (A) the maintenance and operation of the College, 
        including--
                  (i) basic, special, developmental, 
                vocational, technical, and special handicapped 
                education costs;
                  (ii) annual capital expenditures, including 
                equipment needs, minor capital improvements and 
                remodeling projects, physical plant maintenance 
                and operation costs, and exceptions and 
                supplemental need account; and
                  (iii) summer and special interest programs;
          (B) major capital improvements, including internal 
        capital outlay funds and capital improvement projects;
          (C) mandatory payments, including payments due on 
        bonds, loans, notes, or lease purchases;
          (D) supplemental student services, including student 
        housing, food service, and the provision of access to 
        books and services; and
                  (E) improving and expanding the College, 
                including by providing, for the Navajo people 
                and others in the community of the College--
                          (i) higher education programs;
                          (ii) career and technical education;
                          (iii) activities relating to the 
                        preservation and protection of the 
                        Navajo language, philosophy, and 
                        culture;
                          (iv) employment and training 
                        opportunities;
                          (v) economic development and 
                        community outreach; and
                          (vi) a safe learning, working, and 
                        living environment.
  (2) The Secretary shall make payments, pursuant to grants 
under this subsection, in advance installments of not less than 
40 per centum of the funds available for allotment, based on 
anticipated or actual numbers of full-time equivalent Indian 
students or such other factors as determined by the Secretary. 
Adjustments for overpayments and underpayments shall be applied 
to the remainder of such funds and such remainder shall be 
delivered no later than July 1 of each year.
  (c) The Secretary of the Interior is authorized and directed 
to establish by rule procedures to insure that all funds 
appropriated under this Act are properly identified for grants 
to Dine College and that such funds are not commingled with 
appropriations historically expended by the[Bureau of Indian 
Affairs] Bureau of Indian Education for programs and projects 
normally provided on the Navajo Reservation for Navajo 
beneficiaries.

           *       *       *       *       *       *       *

                              ----------                              


                    GENERAL EDUCATION PROVISIONS ACT



           *       *       *       *       *       *       *
 Part C--General Requirements and Conditions Concerning the Operation 
  and Administration of Education Programs; General Authority of the 
Secretary

           *       *       *       *       *       *       *


Subpart 4--Records; Privacy; Limitation on Withholding Federal Funds

           *       *       *       *       *       *       *


      protection of the rights and privacy of parents and students

  Sec. 444. (a)(1)(A) No funds shall be made available under 
any applicable program to any educational agency or institution 
which has a policy of denying, or which effectively prevents, 
the parents of students who are or have been in attendance at a 
school of such agency or at such institution, as the case may 
be, the right to inspect and review the education records of 
their children. If any material or document in the education 
record of a student includes information on more than one 
student, the parents of one of such students shall have the 
right to inspect and review only such part of such material or 
document as relates to such student or to be informed of the 
specific information contained in such part of such material. 
Each educational agency or institution shall establish 
appropriate procedures for the granting of a request by parents 
for access to the education records of their children within a 
reasonable period of time, but in no case more than forty-five 
days after the request has been made.
  (B) No funds under any applicable program shall be made 
available to any State educational agency (whether or not that 
agency is an educational agency or institution under this 
section) that has a policy of denying, or effectively prevents, 
the parents of students the right to inspect and review the 
education records maintained by the State educational agency on 
their children who are or have been in attendance at any school 
of an educational agency or institution that is subject to the 
provisions of this section.
  (C) The first sentence of subparagraph (A) shall not operate 
to make available to students in institutions of postsecondary 
education the following materials:
          (i) financial records of the parents of the student 
        or any information contained therein;
          (ii) confidential letters and statements of 
        recommendation, which were placed in the education 
        records prior to January 1, 1975, if such letters or 
        statements are not used for purposes other than those 
        for which they were specifically intended;
          (iii) if the student has signed a waiver of the 
        student's right of access under this subsection in 
        accordance with subparagraph (D), confidential 
        recommendations--
                  (I) respecting admission to any educational 
                agency or institution,
                  (II) respecting an application for 
                employment, and
                  (III) respecting the receipt of an honor or 
                honorary recognition.
  (D) A student or a person applying for admission may waive 
his right of access to confidential statements described in 
clause (iii) of subparagraph (C), except that such waiver shall 
apply to recommendations only if (i) the student is, upon 
request, notified of the names of all persons making 
confidential recommendations and (ii) such recommendations are 
used solely for the purpose for which they were specifically 
intended. Such waivers may not be required as a condition for 
admission to, receipt of financial aid from, or receipt of any 
other services or benefits from such agency or institution.
  (2) No funds shall be made available under any applicable 
program to any educational agency or institution unless the 
parents of students who are or have been in attendance at a 
school of such agency or at such institution are provided an 
opportunity for a hearing by such agency or institution, in 
accordance with regulations of the Secretary, to challenge the 
content of such student's education records, in order to insure 
that the records are not inaccurate, misleading, or otherwise 
in violation of the privacy rights of students, and to provide 
an opportunity for the correction or deletion of any such 
inaccurate, misleading, or otherwise inappropriate data 
contained therein and to insert into such records a written 
explanation of the parents respecting the content of such 
records.
  (3) For the purposes of this section the term ``educational 
agency or institution'' means any public or private agency or 
institution which is the recipient of funds under any 
applicable program.
  (4)(A) For the purposes of this section, the term ``education 
records'' means, except as may be provided otherwise in 
subparagraph (B), those records, files, documents, and other 
materials which--
          (i) contain information directly related to a 
        student; and
          (ii) are maintained by an educational agency or 
        institution or by a person acting for such agency or 
        institution.
  (B) The term ``education records'' does not include--
          (i) records of instructional, supervisory, and 
        administrative personnel and educational personnel 
        ancillary thereto which are in the sole possession of 
        the maker thereof and which are not accessible or 
        revealed to any other person except a substitute;
          (ii) records maintained by a law enforcement unit of 
        the educational agency or institution that were created 
        by that law enforcement unit for the purpose of law 
        enforcement;
          (iii) in the case of persons who are employed by an 
        educational agency or institution but who are not in 
        attendance at such agency or institution, records made 
        and maintained in the normal course of business which 
        relate exclusively to such person in that person's 
        capacity as an employee and are not available for use 
        for any other purpose; or
          (iv) records on a student who is eighteen years of 
        age or older, or is attending an institution of 
        postsecondary education, which are made or maintained 
        by a physician, psychiatrist, psychologist, or other 
        recognized professional or paraprofessional acting in 
        his professional or paraprofessional capacity, or 
        assisting in that capacity, and which are made, 
        maintained, or used only in connection with the 
        provision of treatment to the student, and are not 
        available to anyone other than persons providing such 
        treatment, except that such records can be personally 
        reviewed by a physician or other appropriate 
        professional of the student's choice.
  (5)(A) For the purposes of this section the term ``directory 
information'' relating to a student includes the following: the 
student's name, address, telephone listing, date and place of 
birth, major field of study, participation in officially 
recognized activities and sports, weight and height of members 
of athletic teams, dates of attendance, degrees and awards 
received, and the most recent previous educational agency or 
institution attended by the student.
  (B) Any educational agency or institution making public 
directory information shall give public notice of the 
categories of information which it has designated as such 
information with respect to each student attending the 
institution or agency and shall allow a reasonable period of 
time after such notice has been given for a parent to inform 
the institution or agency that any or all of the information 
designated should not be released without the parent's prior 
consent.
  (6) For the purposes of this section, the term ``student'' 
includes any person with respect to whom an educational agency 
or institution maintains education records or personally 
identifiable information, but does not include a person who has 
not been in attendance at such agency or institution.
  (b)(1) No funds shall be made available under any applicable 
program to any educational agency or institution which has a 
policy or practice of permitting the release of education 
records (or personally identifiable information contained 
therein other than directory information, as defined in 
paragraph (5) of subsection (a)) of students without the 
written consent of their parents to any individual, agency, or 
organization, other than to the following--
          (A) other school officials, including teachers within 
        the educational institution or local educational 
        agency, who have been determined by such agency or 
        institution to have legitimate educational interests, 
        including the educational interests of the child for 
        whom consent would otherwise be required;
          (B) officials of other schools or school systems in 
        which the student seeks or intends to enroll, upon 
        condition that the student's parents be notified of the 
        transfer, receive a copy of the record if desired, and 
        have an opportunity for a hearing to challenge the 
        content of the record;
          (C)(i) authorized representatives of (I) the 
        Comptroller General of the United States, (II) the 
        Secretary, or (III) State educational authorities, 
        under the conditions set forth in paragraph (3), or 
        (ii) authorized representatives of the Attorney General 
        for law enforcement purposes under the same conditions 
        as apply to the Secretary under paragraph (3);
          (D) in connection with a student's application for, 
        or receipt of, financial aid;
          (E) State and local officials or authorities to whom 
        such information is specifically allowed to be reported 
        or disclosed pursuant to State statute adopted--
                  (i) before November 19, 1974, if the allowed 
                reporting or disclosure concerns the juvenile 
                justice system and such system's ability to 
                effectively serve the student whose records are 
                released, or
                  (ii) after November 19, 1974, if--
                          (I) the allowed reporting or 
                        disclosure concerns the juvenile 
                        justice system and such system's 
                        ability to effectively serve, prior to 
                        adjudication, the student whose records 
                        are released; and
                          (II) the officials and authorities to 
                        whom such information is disclosed 
                        certify in writing to the educational 
                        agency or institution that the 
                        information will not be disclosed to 
                        any other party except as provided 
                        under State law without the prior 
                        written consent of the parent of the 
                        student.
          (F) organizations conducting studies for, or on 
        behalf of, educational agencies or institutions for the 
        purpose of developing, validating, or administering 
        predictive tests, administering student aid programs, 
        and improving instruction, if such studies are 
        conducted in such a manner as will not permit the 
        personal identification of students and their parents 
        by persons other than representatives of such 
        organizations and such information will be destroyed 
        when no longer needed for the purpose for which it is 
        conducted;
          (G) accrediting organizations in order to carry out 
        their accrediting functions;
          (H) parents of a dependent student of such parents, 
        as defined in section 152 of the Internal Revenue Code 
        of 1986;
          (I) subject to regulations of the Secretary, in 
        connection with an emergency, appropriate persons if 
        the knowledge of such information is necessary to 
        protect the health or safety of the student or other 
        persons;
          (J)(i) the entity or persons designated in a Federal 
        grand jury subpoena, in which case the court shall 
        order, for good cause shown, the educational agency or 
        institution (and any officer, director, employee, 
        agent, or attorney for such agency or institution) on 
        which the subpoena is served, to not disclose to any 
        person the existence or contents of the subpoena or any 
        information furnished to the grand jury in response to 
        the subpoena; and
          (ii) the entity or persons designated in any other 
        subpoena issued for a law enforcement purpose, in which 
        case the court or other issuing agency may order, for 
        good cause shown, the educational agency or institution 
        (and any officer, director, employee, agent, or 
        attorney for such agency or institution) on which the 
        subpoena is served, to not disclose to any person the 
        existence or contents of the subpoena or any 
        information furnished in response to the subpoena;
          (K) the Secretary of Agriculture, or authorized 
        representative from the Food and Nutrition Service or 
        contractors acting on behalf of the Food and Nutrition 
        Service, for the purposes of conducting program 
        monitoring, evaluations, and performance measurements 
        of State and local educational and other agencies and 
        institutions receiving funding or providing benefits of 
        1 or more programs authorized under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.) or the Child Nutrition Act of 1966 (42 U.S.C. 
        1771 et seq.) for which the results will be reported in 
        an aggregate form that does not identify any 
        individual, on the conditions that--
                  (i) any data collected under this 
                subparagraph shall be protected in a manner 
                that will not permit the personal 
                identification of students and their parents by 
                other than the authorized representatives of 
                the Secretary; and
                  (ii) any personally identifiable data shall 
                be destroyed when the data are no longer needed 
                for program monitoring, evaluations, and 
                performance measurements[; and];
          (L) an agency caseworker or other representative of a 
        State or local child welfare agency, or tribal 
        organization (as defined in section 4 of the Indian 
        Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)), who has the right to access a student's 
        case plan, as defined and determined by the State or 
        tribal organization, when such agency or organization 
        is legally responsible, in accordance with State or 
        tribal law, for the care and protection of the student, 
        provided that the education records, or the personally 
        identifiable information contained in such records, of 
        the student will not be disclosed by such agency or 
        organization, except to an individual or entity engaged 
        in addressing the student's education needs and 
        authorized by such agency or organization to receive 
        such disclosure and such disclosure is consistent with 
        the State or tribal laws applicable to protecting the 
        confidentiality of a student's education records[.]; 
        and
          (M) an institution of postsecondary education in 
        which the student was previously enrolled, to which 
        records of postsecondary coursework and credits are 
        sent for the purpose of applying such coursework and 
        credits toward completion of a recognized postsecondary 
        credential (as that term is defined in section 3 of the 
        Workforce Innovation and Opportunity Act (29 U.S.C. 
        3102)), upon condition that the student provides 
        written consent prior to receiving such credential.
Nothing in subparagraph (E) of this paragraph shall prevent a 
State from further limiting the number or type of State or 
local officials who will continue to have access thereunder.
  (2) No funds shall be made available under any applicable 
program to any educational agency or institution which has a 
policy or practice of releasing, or providing access to, any 
personally identifiable information in education records other 
than directory information, or as is permitted under paragraph 
(1) of this subsection, unless--
          (A) there is written consent from the student's 
        parents specifying records to be released, the reasons 
        for such release, and to whom, and with a copy of the 
        records to be released to the student's parents and the 
        student if desired by the parents, or
          (B) except as provided in paragraph (1)(J), such 
        information is furnished in compliance with judicial 
        order, or pursuant to any lawfully issued subpoena, 
        upon condition that parents and the students are 
        notified of all such orders or subpoenas in advance of 
        the compliance therewith by the educational institution 
        or agency, except when a parent is a party to a court 
        proceeding involving child abuse and neglect (as 
        defined in section 3 of the Child Abuse Prevention and 
        Treatment Act (42 U.S.C. 5101 note)) or dependency 
        matters, and the order is issued in the context of that 
        proceeding, additional notice to the parent by the 
        educational agency or institution is not required.
  (3) Nothing contained in this section shall preclude 
authorized representatives of (A) the Comptroller General of 
the United States, (B) the Secretary, or (C) State educational 
authorities from having access to student or other records 
which may be necessary in connection with the audit and 
evaluation of Federally-supported education programs, or in 
connection with the enforcement of the Federal legal 
requirements which relate to such programs: Provided, That 
except when collection of personally identifiable information 
is specifically authorized by Federal law, any data collected 
by such officials shall be protected in a manner which will not 
permit the personal identification of students and their 
parents by other than those officials, and such personally 
identifiable data shall be destroyed when no longer needed for 
such audit, evaluation, and enforcement of Federal legal 
requirements.
  (4)(A) Each educational agency or institution shall maintain 
a record, kept with the education records of each student, 
which will indicate all individuals (other than those specified 
in paragraph (1) (A) of this subsection), agencies, or 
organizations which have requested or obtained access to a 
student's education records maintained by such educational 
agency or institution, and which will indicate specifically the 
legitimate interest that each such person, agency, or 
organization has in obtaining this information. Such record of 
access shall be available only to parents, to the school 
official and his assistants who are responsible for the custody 
of such records, and to persons or organizations authorized in, 
and under the conditions of, clauses (A) and (C) of paragraph 
(1) as a means of auditing the operation of the system.
  (B) With respect to this subsection, personal information 
shall only be transferred to a third party on the condition 
that such party will not permit any other party to have access 
to such information without the written consent of the parents 
of the student. If a third party outside the educational agency 
or institution permits access to information in violation of 
paragraph (2)(A), or fails to destroy information in violation 
of paragraph (1)(F), the educational agency or institution 
shall be prohibited from permitting access to information from 
education records to that third party for a period of not less 
than five years.
  (5) Nothing in this section shall be construed to prohibit 
State and local educational officials from having access to 
student or other records which may be necessary in connection 
with the audit and evaluation of any federally or State 
supported education program or in connection with the 
enforcement of the Federal legal requirements which relate to 
any such program, subject to the conditions specified in the 
proviso in paragraph (3).
  (6)(A) Nothing in this section shall be construed to prohibit 
an institution of postsecondary education from disclosing, to 
an alleged victim of any crime of violence (as that term is 
defined in section 16 of title 18, United States Code), or a 
nonforcible sex offense, the final results of any disciplinary 
proceeding conducted by such institution against the alleged 
perpetrator of such crime or offense with respect to such crime 
or offense.
  (B) Nothing in this section shall be construed to prohibit an 
institution of postsecondary education from disclosing the 
final results of any disciplinary proceeding conducted by such 
institution against a student who is an alleged perpetrator of 
any crime of violence (as that term is defined in section 16 of 
title 18, United States Code), or a nonforcible sex offense, if 
the institution determines as a result of that disciplinary 
proceeding that the student committed a violation of the 
institution's rules or policies with respect to such crime or 
offense.
  (C) For the purpose of this paragraph, the final results of 
any disciplinary proceeding--
          (i) shall include only the name of the student, the 
        violation committed, and any sanction imposed by the 
        institution on that student; and
          (ii) may include the name of any other student, such 
        as a victim or witness, only with the written consent 
        of that other student.
  (7)(A) Nothing in this section may be construed to prohibit 
an educational institution from disclosing information provided 
to the institution under section 170101 of the Violent Crime 
Control and Law Enforcement Act of 1994 (42 U.S.C. 14071) 
concerning registered sex offenders who are required to 
register under such section.
  (B) The Secretary shall take appropriate steps to notify 
educational institutions that disclosure of information 
described in subparagraph (A) is permitted.
  (c) Not later than 240 days after the date of enactment of 
the Improving America's Schools Act of 1994, the Secretary 
shall adopt appropriate regulations or procedures, or identify 
existing regulations or procedures, which protect the rights of 
privacy of students and their families in connection with any 
surveys or data-gathering activities conducted, assisted, or 
authorized by the Secretary or an administrative head of an 
education agency. Regulations established under this subsection 
shall include provisions controlling the use, dissemination, 
and protection of such data. No survey or data-gathering 
activities shall be conducted by the Secretary, or an 
administrative head of an education agency under an applicable 
program, unless such activities are authorized by law.
  (d) For the purposes of this section, whenever a student has 
attained eighteen years of age, or is attending an institution 
of postsecondary education, the permission or consent required 
of and the rights accorded to the parents of the student shall 
thereafter only be required of and accorded to the student.
  (e) No funds shall be made available under any applicable 
program to any educational agency or institution unless such 
agency or institution effectively informs the parents of 
students, or the students, if they are eighteen years of age or 
older, or are attending an institution of postsecondary 
education, of the rights accorded them by this section.
  (f) The Secretary shall take appropriate actions to enforce 
this section and to deal with violations of this section, in 
accordance with this Act, except that action to terminate 
assistance may be taken only if the Secretary finds there has 
been a failure to comply with this section, and he has 
determined that compliance cannot be secured by voluntary 
means.
  (g) The Secretary shall establish or designate an office and 
review board within the Department for the purpose of 
investigating, processing, reviewing, and adjudicating 
violations of this section and complaints which may be filed 
concerning alleged violations of this section. Except for the 
conduct of hearings, none of the functions of the Secretary 
under this section shall be carried out in any of the regional 
offices of such Department.
  (h) Nothing in this section shall prohibit an educational 
agency or institution from--
          (1) including appropriate information in the 
        education record of any student concerning disciplinary 
        action taken against such student for conduct that 
        posed a significant risk to the safety or well-being of 
        that student, other students, or other members of the 
        school community; or
          (2) disclosing such information to teachers and 
        school officials, including teachers and school 
        officials in other schools, who have legitimate 
        educational interests in the behavior of the student.
  (i) Drug and Alcohol Violation Disclosures.--
          (1) In general.--Nothing in this Act or the Higher 
        Education Act of 1965 shall be construed to prohibit an 
        institution of higher education from disclosing, to a 
        parent or legal guardian of a student, information 
        regarding any violation of any Federal, State, or local 
        law, or of any rule or policy of the institution, 
        governing the use or possession of alcohol or a 
        controlled substance, regardless of whether that 
        information is contained in the student's education 
        records, if--
                  (A) the student is under the age of 21; and
                  (B) the institution determines that the 
                student has committed a disciplinary violation 
                with respect to such use or possession.
          (2) State law regarding disclosure.--Nothing in 
        paragraph (1) shall be construed to supersede any 
        provision of State law that prohibits an institution of 
        higher education from making the disclosure described 
        in subsection (a).
  (j) Investigation and Prosecution of Terrorism.--
          (1) In general.--Notwithstanding subsections (a) 
        through (i) or any provision of State law, the Attorney 
        General (or any Federal officer or employee, in a 
        position not lower than an Assistant Attorney General, 
        designated by the Attorney General) may submit a 
        written application to a court of competent 
        jurisdiction for an ex parte order requiring an 
        educational agency or institution to permit the 
        Attorney General (or his designee) to--
                  (A) collect education records in the 
                possession of the educational agency or 
                institution that are relevant to an authorized 
                investigation or prosecution of an offense 
                listed in section 2332b(g)(5)(B) of title 18 
                United States Code, or an act of domestic or 
                international terrorism as defined in section 
                2331 of that title; and
                  (B) for official purposes related to the 
                investigation or prosecution of an offense 
                described in paragraph (1)(A), retain, 
                disseminate, and use (including as evidence at 
                trial or in other administrative or judicial 
                proceedings) such records, consistent with such 
                guidelines as the Attorney General, after 
                consultation with the Secretary, shall issue to 
                protect confidentiality.
          (2) Application and approval.--
                  (A) In general.--An application under 
                paragraph (1) shall certify that there are 
                specific and articulable facts giving reason to 
                believe that the education records are likely 
                to contain information described in paragraph 
                (1)(A).
                  (B) The court shall issue an order described 
                in paragraph (1) if the court finds that the 
                application for the order includes the 
                certification described in subparagraph (A).
          (3) Protection of educational agency or 
        institution.--An educational agency or institution 
        that, in good faith, produces education records in 
        accordance with an order issued under this subsection 
        shall not be liable to any person for that production.
          (4) Record-keeping.--Subsection (b)(4) does not apply 
        to education records subject to a court order under 
        this subsection.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 4508, the Promoting Real Opportunity, Success, and 
Prosperity through Education Reform Act (PROSPER Act) amends 
the Higher Education Act of 1965 (HEA) to make quality higher 
education less accessible and more expensive. H.R. 4508 makes 
financing a college education harder for low- and middle-income 
students, dramatically reducing available grant aid and making 
student loans more expensive. The Congressional Budget Office 
(CBO) estimates that H.R. 4508 will reduce direct spending in 
the Pell Grant and Student Loan programs by $14.6 billion over 
ten years. While the bill makes college less affordable, it 
makes federal student aid more generous for for-profit 
institutions, at the expense of taxpayers and students. H.R. 
4508 eliminates necessary guardrails and dilutes consumer 
protections that safeguard students and taxpayers. H.R. 4508 
expands and creates loopholes that will allow ineligible 
providers access to federal student aid without adequate 
oversight to ensure quality, and in some cases, even without 
compliance with any federal law.
    The bill seeks to fundamentally upset the nation's system 
of higher education to provide the private sector with 
unprecedented access to taxpayer dollars while providing only 
low-cost training for future employees. In total, H.R. 4508 
exacerbates inequity in higher education by solidifying a two-
tiered system: four-year and graduate degrees for wealthy 
students and families, and unregulated job-training programs 
with little guarantee of quality or outcomes for those without 
means. The bill also undermines the viability of programs 
supporting Historically Black Colleges and Universities (HBCUs) 
and other minority-serving institutions (MSIs), and eliminates 
a key funding source for community colleges.
    Aside from its sweeping and harmful overhaul of federal 
student aid to make college more expensive, H.R. 4508 does 
little to address crucial issues in higher education. The bill 
fails to advance policies that address campus hazing, racial 
violence and intimidation, or campus sexual assault. It is 
silent on the plight of thousands of American Dreamer 
students--working or attending school now without access to 
federal student aid or a path to long-term, legal stability in 
the only country they have ever called home. The bill does 
nothing to curb excessive student loan debt collection 
practices. H.R. 4508 fails to address the unique needs of 
students with disabilities or foster and homeless youth, who we 
know are accessing higher education at higher levels than ever 
before. Wherever possible, H.R. 4508 takes a myopic approach 
contrary to research and advocacy work focused on the needs of 
the nation's most vulnerable students.

 BACKGROUND ON HEA AND THE FLAWED, PARTISAN CONSIDERATION OF H.R. 4508

    Congress, on a bipartisan basis, passed HEA ``to strengthen 
the educational resources of our colleges and universities and 
to provide financial assistance for students in postsecondary 
and higher education.''\1\ When President Lyndon B. Johnson 
signed the HEA into law, he stated that ``[This] means that a 
high school senior, anywhere in this great land of ours, can 
apply to any college or any university in any of the 50 states 
and not be turned away because his family is poor.''\2\ The law 
was amended in numerous Congresses, historically on a 
bipartisan basis--until now.
---------------------------------------------------------------------------
    \1\Pub. L. No. 89-329, 79 Stat. 1219 (codified as amended at 20 
U.S.C. Sec.  1001 (2012)).
    \2\President Lyndon Johnson, Remarks on Signing the Higher 
Education Act of 1965, SW Tex. St. Coll. (Nov. 8, 1965), available at 
http://www.txstate.edu/commonexperience/pastsitearchives/2008-2009/
lbjresources/higheredact.html.
---------------------------------------------------------------------------
    Committee Democrats first learned of the contents of H.R. 
4508 on November 29, 2017 when the Wall Street Journal 
published a series of online articles outlining key policies 
included in the bill.\3\ Committee Republicans unilaterally 
drafted the 542-page bill that was shared with Committee 
Democrats only mere minutes before the bill was formally 
introduced in the House. Four legislative days after the 
introduction of H.R. 4508 (and 24 hours before the markup of 
the bill), Committee Republicans shared a 590-page Amendment in 
the Nature of a Substitute that made not only technical changes 
to the bill, but also significant policy revisions to the 
underlying bill.
---------------------------------------------------------------------------
    \3\Douglas Belkin et al., House GOP to Propose Sweeping Changes to 
Higher Education, Wall St. J., Nov. 29, 2017 available at https://
www.wsj.com/articles/house-gop-to-propose-sweeping-changes-to-higher-
education-1511956800.
---------------------------------------------------------------------------
    Contrary to statistics cited by Committee Republicans 
during the markup of H.R. 4508, the consideration of the bill 
was a significant departure from the bipartisan approach of the 
previous comprehensive reauthorization of the HEA.\4\ During 
the markup of H.R. 4508, the Chairwoman noted that the last 
full-scale reauthorization bill was introduced on November 9, 
2007 and reported out of Committee on November 15, 2007, when 
Democrats held the majority. While true, the Committee had held 
12 hearings (four full committee and eight subcommittee) 
regarding higher education in the first session of the 110th 
Congress.\5\ In contrast, Committee Republicans in the 115th 
Congress have only held four hearings (two full committee-level 
and two subcommittee-level) on higher education.\6\
---------------------------------------------------------------------------
    \4\Higher Education and Opportunity Act, Pub. L. No. 110-315, 122 
Stat. 3078 (2008).
    \5\H.R. Rep. No. 110-500, pt. 1, at 211.
    \6\Committee Republicans claim that the Committee held six hearings 
on higher education issues during the first session of the 115th 
Congress. They come to this number by including the Higher Education 
and Workforce Development Subcommittee hearing, ``Expanding Options for 
Employers and Workers Through Earn-and-Learn opportunities, held on 
July 26, 2017. Although the topics discussed at that hearing relate to 
Title II of H.R. 4508, Committee Democrats note that those issues are 
not in the traditional scope of HEA, and are better addressed in other 
bills under the jurisdiction of the committee. See infra Part ``H.R. 
4508 Abandons Teachers, While Disguising Low-Quality Job Training 
Programs as Apprenticeships.'' Committee Republicans also include the 
full Committee hearing title ``public-Private Solutions to Educating a 
Cyber Workforce'' held on October 24, 2017.
---------------------------------------------------------------------------
    Committee Republicans claim hearings held in previous 
Congresses informed the development of H.R. 4508. However, many 
higher education issues that were considered in previous 
Congresses are either no longer pertinent today, or have not 
been examined by the Committee with the consideration of new 
research and evidence in the field that could inform the 
reauthorization process. Additionally, nearly a third of 
current Committee members are new to the Education and 
Workforce Committee as of the 115th Congress, including eight 
new Republican members and five new Committee Democrats who did 
not take part in hearings held during previous Congresses. 
Committee Democrats dispute the suggestion that a third of the 
Committee provided meaningful input on nearly 600 pages of 
legislative text over the course of limited Committee 
proceedings on issues of higher education during this session 
of Congress.
    The differences in Committee process for development and 
consideration of a comprehensive HEA reauthorization under the 
Democratic majority in 2007 and the current Republican majority 
are reflected in the markup hearings for each bill. In 2007, 
Democrats in the Committee majority accepted 12 Republican 
amendments and rejected five on recorded votes.\7\ The final 
bill was reported out by the Committee unanimously, 45-0.\8\ In 
contrast, in 2017 only two amendments by Committee Democrats 
were adopted, and 35 were defeated by recorded vote. Without 
any meaningful input by Committee Democrats, H.R. 4508 was 
reported out of Committee without any Democratic votes. H.R. 
4508's abandonment of the core purposes of HEA--to make higher 
education more affordable, more accessible, and to aid 
completion--is emblematic of a flawed and partisan process.
---------------------------------------------------------------------------
    \7\H.R. Rep. No. 110-500, pt. 1, at 214-18, 368-75.
    \8\H.R. Rep. No. 110-500, pt. 1, at 375.
---------------------------------------------------------------------------

                 H.R. 4508 MAKES COLLEGE MORE EXPENSIVE

    A college education remains the most successful force for 
upward economic mobility in America.\9\ The original HEA and 
subsequent reauthorizations were designed to increase access to 
higher education for all students, including historically 
marginalized populations, by federal investments to make higher 
education more affordable. According to 2015 data, 61 percent 
of Black and 65 percent of Hispanic Recent High School 
Graduates are immediately enrolling in postsecondary education 
after high school, increases of 52 percent and 23 percent 
respectively from 1975.\10\ While efforts have resulted in more 
low-income and students of color accessing and completing 
higher education since 1965, significant challenges remain.
---------------------------------------------------------------------------
    \9\Haskins, R., Education and Economic Mobility, (2016: The 
Brookings Institution) available at https://www.brookings.edu/wp-
content/uploads/2016/07/02_economic_mobility_sawhill_ch8.pdf.
    \10\Jennifer Ma, Matea Pender, and Meredith Welch, Education Pays 
2016, (2016: The College Board) available at https://
trends.collegeboard.org/sites/default/files/education-pays-2016-full-
report.pdf.
---------------------------------------------------------------------------
    Tuition increases coupled with State disinvestment have 
forced students and their families to shoulder a greater 
portion of the cost of college. Over the last ten years, in-
State tuition and fees at public four-year institutions 
increased at an average rate of 3.2 percent per year beyond 
inflation (2.8 percent at two-year public colleges and 2.4 
percent at four-year private non-profit institutions).\11\ The 
average State appropriation per full-time equivalent (FTE) 
student fell by 26 percent during the Great Recession.\12\ 
While many States are attempting to rebound from low spending 
levels, the connection between State funding and college costs 
is both cyclical and correlational; it would take multiple 
years of increased public investments in higher education (with 
such investments assuredly directed to addressing college 
costs) to actually lower the cost of college. Until that day 
comes, students are forced to make up the balance through 
student loans. A responsible reauthorization of HEA would 
recognize and address the reality that a crippling share of the 
burden to fund higher education has fallen on America's working 
families in a time of stagnant wages. Unfortunately, H.R. 4508 
takes the opposite approach.
---------------------------------------------------------------------------
    \11\Jennifer Ma et al., Trends in College Pricing 2017, (2017: The 
College Board) 13.
    \12\Jennifer Ma et al., Trends in College Pricing 2016, (2016: The 
College Board) 24.
---------------------------------------------------------------------------
    Disguised by the catchy tagline of ``One Grant, One Loan, 
One Work-Study,'' H.R. 4508 reduces federal investments in 
higher education and shifts benefits of federal student aid 
vehicles away from low-income students. The bill eliminates 
multiple grant programs, loan subsidies, and repayment and 
forgiveness options. Taken in total, the bill reduces available 
resources that make higher education more affordable in the 
name of ``simplicity.'' The result is H.R. 4508 forces students 
to borrow more, pay more for those loans, and pay more to repay 
those loans.
Pell Grants
    H.R. 4508 does nothing to strengthen the Pell Grant 
program, the cornerstone of federal student aid. While 
Democrats successfully championed historic increases in the 
Pell Grant through the American Reinvestment and Recovery Act 
of 2009 and the Student Aid and Fiscal Responsibility Act of 
2010, those investments have not kept pace with rising 
costs.\13\ In 1975, the maximum Pell Grant covered nearly 80 
percent of the cost of attendance at a public four-year 
school.\14\ The maximum Pell Grant award in 2016-17 ($5,815) 
covers just 29 percent of average tuition, fees, room and board 
at an in-State, four-year public university; the average Pell 
Grant award ($3,724) would cover just 19 percent of such 
costs.\15\ Thus, Pell Grant recipients are more than twice as 
likely to borrow federal dollars as their peers.\16\ This is at 
a time when the Pell Grant program maintains a reserve of 
appropriated program funding that Committee Democrats believe 
should be used to increase the average and maximum awards.\17\ 
HEA reauthorization is a valuable opportunity to restore the 
purchasing power and elevate the purpose of the Pell Grant 
program.
---------------------------------------------------------------------------
    \13\In ARRA (P.L. 111-5), Congress provided an additional $17.1 
billion for the Pell program, which increased the maximum award from 
$4,850 to $5,350 in 2009. In SAFRA (part of Health Care and Education 
Reconciliation Act of 2010, P.L. 111-152), the maximum was increased to 
$5,500 with increases indexed to inflation through 2018.
    \14\Spiros Protopsaltis and Sharon Parrott, Pell Grants--a Key Tool 
for Expanding College Access and Economic Opportunity--Need 
Strengthening, Not Cuts, Ctr. for Budget and Policy Priorities (July 
27, 2017), available at https://www.cbpp.org/research/federal-budget/
pell-grants-a-key-tool-for-expanding-college-access-and-economic-
opportunity.
    \15\Sandy Baum et al., Trends in Student Aid 2016, (2016: The 
College Board) 27.
    \16\The Institute for College Access and Success, Pell Grants Help 
Keep College affordable for Millions of Americans, last updated Apr. 6, 
2016, available at http://ticas.org/sites/default/files/pub_files/
overall_pell_one-pager.pdf.
    \17\The Pell Scoring Rule allows the Pell Grant Program to run 
surpluses (or deficits) from year to year and credit gains (or debit 
losses) against appropriations in the subsequent fiscal year. According 
to the June 2017 CBO baseline, the Pell Grant account has a current 
cumulative surplus of $8.6 billion. https://www.cbo.gov/sites/default/
files/recurringdata/51304-2017-01-pellgrant.pdf.
---------------------------------------------------------------------------
    Instead, H.R. 4508 reduces available grant aid for students 
across the board. Under the GOP's ``One Grant, One Loan, One 
Work-Study'' mandate, the bill eliminates all other grants, 
making Pell the sole source of federal grant aid for low-income 
students. H.R. 4508 not only does nothing to increase the 
purchasing power of Pell, it also weakens the program. By 
expanding Pell eligibility to more low quality, short-term 
programs with little federal oversight to ensure quality, H.R. 
4508 increases both the demand on Pell and the chance that Pell 
dollars will fund programs and credentials with little value in 
the workplace. CBO estimates that H.R. 4508 will increase Pell 
direct spending by $13.4 billion and discretionary spending by 
$69.9 billion over 10 years. Despite the bill's significant 
expansion of program eligibility and the elimination of other 
grant aid sources, H.R. 4508 makes no improvements to Pell 
funding; it fails to increase mandatory Pell funding, does not 
increase the maximum Pell Grant award, and provides noyearly 
inflationary adjustments for the Pell Grant award. In sum, H.R. 4508 
dramatically expands the cost of the Pell Grant program but does 
nothing to improve the purchasing power of the grant to defray the cost 
of college for low-income students.
    H.R. 4508 would increase financial uncertainty for the most 
vulnerable students by requiring Pell (along with all other 
federal student aid) to be disbursed in small weekly or monthly 
increments. This ``Aid Like a Paycheck'' policy gives 
institutions the power not only to allocate aid on a weekly or 
monthly basis, but also to adjust and disburse unequal award 
amounts across payment periods. This program change would cause 
unnecessary hardship for the lowest income students who rely on 
Pell to support not only their institutional enrollment but 
also their livelihood while in college.
    The bill's only Pell policy innovation is the ``Pell 
bonus,'' a well-intentioned but misguided proposal that lacks 
sufficient evidence of effectiveness and disadvantages non-
traditional students. The bill authorizes a bonus award of up 
to $300, only for students on track to complete 30 credit hours 
or the equivalency for the academic year. This ``bonus''' 
essentially creates a new maximum award for a more-than-full-
time workload, leaving behind millions of low-income students 
who do not enroll full time. Data show that part-time students 
comprise nearly 40 percent of undergraduate student enrollment, 
and they struggle disproportionately with completion.\18\ 
Unfortunately, part-time enrollment is the only option for many 
students juggling their education along with work, child/
dependent care, and a host of other draws on their time. For 
these students, a yearly bonus of merely $300 is not enough to 
incentivize full-time enrollment, so the Pell bonus does 
nothing to improve college affordability for them. To make 
matters worse, H.R. 4508 earmarks the few mandatory dollars 
remaining in the Pell program to fund the bonus. This fact, in 
combination with changes to program eligibility and the long 
documented history of fraud and abuse by for-profit 
institutions\19\ are a recipe for disaster. Committee Democrats 
fear that H.R. 4508 will lead to a proliferation of low-quality 
programs that will drain a disproportionate amount of mandatory 
Pell funds, leaving the program in poor fiscal shape. Committee 
Democrats joined with three Committee Republicans to vote in 
favor of an amendment offered by Mr. Grothman (R-WI) to strike 
the Pell bonus from the bill. The amendment failed by a vote of 
20-20, but exposed bipartisan opposition to the Pell bonus.
---------------------------------------------------------------------------
    \18\ 1ASee e.g., The Education Trust, Advancing by Degrees: A 
Framework for Increasing College Completion 2 (Apr. 2010) (``There are 
also patters of enrollment that make it difficult to accumulate 
credits, most notably part-time attendance and stopping out, both of 
which are consistently found to reduce the likelihood of retention and 
degree completion.''). 
    \19\Robert Shireman, The For-Profit College Story: Scandal, 
Regulate, Forget, Repeat, (Jan 24, 2017) available at https://tcf.org/
content/report/profit-college-story-scandal-regulate-forget-repeat/.
---------------------------------------------------------------------------
    Finally, H.R. 4508 elevates the issue of ``Pell fraud'' by 
blaming students for program waste, fraud, and abuse despite 
evidence to the contrary. The most recent data from the U.S. 
Department of Education state that only 2.16 percent of 
undergraduate federal financial aid applicants are flagged for 
unusual enrollment history--a pattern that is often considered 
evidence of fraud.\20\ Despite the overall low incidence rate, 
there are some individual institutions where as many as 35 
percent of students are flagged for unusual enrollment 
history.\21\ This suggests the problem is not one of students 
(or institutions) generally, but instead a problem of specific 
institutions (or specific to certain institutional structures) 
that are disproportionately enrolling students attempting to 
commit fraud. Unfortunately, H.R. 4508's only provisions to 
combat fraud target students and do nothing to address these 
outlier institutions. Simultaneously, H.R. 4508 both removes 
meaningful consumer and taxpayer protections designed to 
prevent fraud committed by predatory institutions like the now-
closed ITT Tech and Corinthian Colleges and also limits the 
ability of ED to implement rules to assist defrauded students 
and recoup taxpayer funds in these situations.
---------------------------------------------------------------------------
    \20\Department of Education 2016-17 Unusual Enrollment History data 
obtained by CRS, December 28, 2017.
    \21\Id.
---------------------------------------------------------------------------
    Rep. Susan Davis, Ranking Member of the Subcommittee on 
Higher Education and Workforce Development, introduced an 
amendment to make comprehensive improvements to the Pell Grant 
program. The amendment sought to restore Pell's purchasing 
power by increasing the maximum Pell Grant award by $500 and 
permanently indexing the award to inflation. To insulate Pell 
from budget battles, the amendment sought to shift program 
funding entirely to the mandatory side of the budget ledger. 
The amendment also sought to allow previously defrauded 
students to gain or regain access to aid. Recognizing the needs 
of today's students and workforce, the amendment sought to 
allow for the use of Pell Grant funds for quality short-term 
programs. Lastly, the amendment sought to require institutional 
reporting on Pell fraud to identify institutions that are most 
vulnerable to fraud. The Davis Pell Grant amendment was 
defeated on a party-line vote.

Student loans

    In recent years, efforts to increase affordability in the 
student loan program have centered on reforming the federal 
Direct Loan program and ensuring that students have affordable 
options to repay their student loans. Congressional Democrats 
led the charge for the move to direct lending away from 
private, federally guaranteed loans, the creation of income-
driven repayment plans, and the establishment of the Public 
Service Loan Forgiveness (PSLF) program. These innovations 
signaled to student borrowers that, regardless of their 
financing needs, they had multiple options to ensure manageable 
student debt and a light at the end of the tunnel. Committee 
Democrats believe that a responsible HEA reauthorization must 
streamline the multiple income-driven repayment plans into one 
more accessible income-based repayment plan (IBR), increase 
protections for borrowers, and include more equitable loan 
terms to allow for additional refinancing or forgiveness 
options. H.R. 4508 took a different path.
    To create a new ``ONE Loan,'' H.R. 4508 consolidates all 
currently available loan products into a more expensive federal 
student loan, while simultaneously weakening the student loan 
safety net for the lowest-income borrowers. The bill 
establishes less favorable loan terms by eliminating the 
undergraduate loan subsidy, removes the benefits of IBR for the 
lowest-income borrowers, caps parent and graduate loans, and 
eliminates the PSLF program. CBO estimates that these changes 
will take $58.5 billion out of federal student aid over the 
next 10 years, money that borrowers currently depend on to make 
college more affordable.
    Currently, nearly six million eligible student borrowers 
with financial need receive subsidized federal loans that do 
not accrue interest while the student is enrolled. While there 
are yearly and aggregate caps on the amount of the subsidy, it 
helps defray the cost of borrowing for students. H.R. 4508's 
``ONE Loan'' is unsubsidized. This has disastrous implications 
for the average student, let alone one heavily reliant on 
loans. Analysis by the American Council on Education found that 
``An undergraduate student who borrows $19,000 over four years 
and makes all payments on time would see a 44 percent increase 
in the cost of the loan. A student who attends for five years 
and borrows $23,000 would see a 56 percent increase.''\22\
---------------------------------------------------------------------------
    \22\Letter from Ted Mitchell, President, American Council on 
Education, to Reps. Foxx and Scott (Dec. 11, 2017), avaiable at http://
www.acenet.edu/news-room/Documents/Letter-PROSPER-Act-Markup.pdf.
---------------------------------------------------------------------------
    H.R. 4508 places limits on the amount parents and graduate 
students can borrow to fund higher education via the PLUS loan 
program. While on its face this may seem like a noble attempt 
to rein in college costs, in reality this policy will only 
drive parents and graduate students to the private loan market 
to finance higher education. Private student loans lack the 
protections of federal loans and lenders may discriminate based 
on income, field of study, or other student factors. Committee 
Democrats proudly championed the removal of private lenders 
from the federal student loan market in 2010, and H.R. 4508, in 
the name of ``cost containment'' is inviting private lenders 
back into the mix.
    Further, the ``One Loan'' mandate of H.R. 4508 creates a 
single IBR plan that preferences upper-income borrowers and is 
far less generous than IBR plan options under current law. The 
new IBR plan would create uncertainty for low-income families 
by increasing the percent of borrower discretionary income used 
to repay loans, including a statutory minimum for monthly 
payments, and severely limiting loan forgiveness. The bill 
increases the discretionary income used to calculate a 
borrower's IBR payment from 10 percent to 15 percent of their 
income. This change creates the greatest hardship for low-
income families struggling with student loan debt where a 
difference of 5 percent of income is most visible. While 
current law allows low-income borrowers to have a payment as 
low as $0, H.R. 4508 imposes a $25 minimum monthly payment. 
Committee Democrats fear this provision will send the most 
vulnerable borrowers into default.
    The bill also removes any certainty of loan forgiveness 
(referred to as `cancelation' in H.R. 4508) for borrowers 
enrolled in the program's one IBR plan. Unlike current law that 
includes forgiveness of existing loan debt after 20-25 years of 
payments for income-driven repayment plans, H.R. 4508 bases 
eligibility for forgiveness on the amount repaid, regardless of 
a borrower's length of time in repayment. This would have a 
disproportionate impact on the lowest income individuals. For 
example, under H.R. 4508, it could take a low-income borrower 
with just $30,000 in student loan debt 138 years in IBR before 
he or she qualified for loan forgiveness.\23\ H.R. 4508's 
changes to IBR ensure that upper income borrowers reap the 
greatest benefit from a repayment vehicle intended to help low-
income borrowers.
---------------------------------------------------------------------------
    \23\ 1AStatement of Persis Yu, Director of Student Loan Borrower 
Assistance Project, National Consumer Law Center, available at https://
www.nclc.org/media-center/house-edu-bill-ends-student-protections-
lifetime-debt.html.
---------------------------------------------------------------------------
    The bill also eliminates PSLF for new borrowers in the ONE 
Loan program, despite overwhelming popularity of the program. 
PSLF, created in 2007, rewards students who forgo employment in 
the private sector to take jobs in public service. Under 
current law if a borrower makes 10 years of payments while 
employed in a public service job (e.g., teacher, nurse, police 
officer), they are eligible to receive forgiveness on whatever 
portion of their loan remains after the 10 years of payments.
    H.R. 4508 makes no improvement to the process of loan 
rehabilitation and default. Independent analysis has found that 
student loan rehabilitation programs are not serving students 
and filling the coffers of debt collectors. According to the 
Consumer Financial Protection Bureau (CFPB) nearly one in three 
borrowers who goes through the loan rehabilitation process will 
default again.\24\ There is no real check to ensure that debt 
collectors shepherding borrowers through the rehabilitation 
process are working in the best interest of the borrower. 
Additionally, with Obama-era guidance rescinded under the Trump 
administration, debt collectors can again charge exorbitant 
fees (up to 16 percent of principal and interest) for the 
rehabilitation process that often leads borrowers back into 
default. H.R. 4508's solution is to allow these borrowers to go 
through a broken rehabilitation process for a second time.
---------------------------------------------------------------------------
    \24\Consumer Financial Protection Bureau, Annual Report of the CFPB 
Student Loan Ombudsman 4 (2016).
---------------------------------------------------------------------------
    Finally, H.R. 4508 includes language that would exempt 
companies contracted by the Department of Education to service 
student loans and collect on defaulted loans from enforcement 
under State and local law. States have a well-established role 
in protecting their residents from fraudulent and abusive 
practices, and several States have used this authority to take 
legal action to protect consumers. This provision is an 
overreach of federal education law, as it preempts the 
authority of State and local authorities from engaging in 
oversight to protect their postsecondary students and consumers 
from fraud and abuse.
    Committee Democrats introduced several amendments to 
improve and make more equitable the loan-related provisions of 
H.R. 4508. Reps. Bonamici, Takano, and Wilson introduced an 
amendment to strike the ONE Loan program created by H.R. 4508 
and reinstate the existing Direct Loan program, making 
subsidized loans and PSLF available to these borrowers. Because 
Committee Democrats also believe HEA reauthorization must 
simplify federal student aid, the amendment also sought to 
streamline the multitude of existing repayment plans into one 
fixed repayment plan and one IBR plan that better serves low-
income borrowers. Further, this amendment requires new 
borrowers to undergo annual counseling while streamlining the 
loan disclosures currently mandated in HEA, and enhances 
entrance and exit counseling. This amendment also sought to 
eliminate origination fees on federal student loans and require 
a borrower's prepayment amount to be applied first toward 
outstanding fees. Additionally, this amendment sought to strike 
state preemption language from the ONE Loan, strengthen 
consumer protections and protect student loan borrowers from 
the severe consequences of default. The Bonamici amendment was 
rejected along party lines.
    Rep. Courtney offered an amendment to allow new ONE Loan 
borrowers to be eligible for PSLF and extend PSLF eligibility 
to farmers and employees of veteran service organizations. 
While the amendment was not adopted, it was supported by two 
Committee Republicans evidence of the bipartisan opposition to 
the Republican proposal to eliminate this important program. 
Rep. Grijalva offered an amendment to stop the garnishment of 
Social Security benefits to pay student loans. The amendment 
was ruled non-germane. Rep. Courtney also offered an amendment 
to give current student loan borrowers an opportunity to 
refinance their debt at the same low rates offered to new 
borrowers this school year. The amendment also allowed 
borrowers in H.R. 4508's ONE Loan to refinance should rates 
decrease in future years. The amendment also allowed private 
student loan borrowers who are in good standing to refinance 
private student loans at lower federal student loan rates. 
While the amendment was not adopted, Mr. Grothman joined with 
Committee Democrats to vote in favor of the amendment.

Campus-based aid

    Again, in the name of ``simplification,'' H.R. 4508 
eliminates campus-based aid programs that provide students with 
additional sources of funding for their education. H.R. 4508 
completely eliminates two campus-based aid programs: the 
Federal Supplemental Educational Opportunity Grant (FSEOG) and 
the Perkins Loan program. By eliminating FSEOG and failing to 
restore the Perkins Loan program, H.R. 4508 makes college more 
expensive for students and working families. Although H.R. 4508 
nearly doubles the federal allocation for the Federal Work-
Study (FWS) program and makes equitable changes that improve 
the program's allocation formula, the totality of the bill's 
changes to campus-based aid programs negates those 
improvements.
    H.R. 4508 makes additional changes to the FWS program that 
Committee Democrats fear would result in increased costs to 
students. Under H.R. 4508, graduate students are barred from 
participation in FWS, removing another source of federal 
student aid for these students and driving them to the private 
market to finance their education. H.R. 4508 also requires a 
larger investment from participating institutions and allows 
less FWS money to be used to fund students directly. Currently, 
institutions are required to pay 25 percent of a student's 
compensation but H.R. 4508 requires institutions to double 
their share. At the same time, H.R. 4508 removes a 25 percent 
cap on how much Federal money can be spent to operate FWS 
programs at private companies.
    While Committee Democrats believe there is some benefit to 
off-campus employment, especially in a student's final academic 
years, research shows that new students benefit from 
institutional connectedness derived from on-campus 
employment.\25\ These changes would limit aid available for 
students, send more federal money to private companies that 
have no track record of success, and create an incentive for 
for-profit institutions to participate in the program, 
especially if such institution is owned by a corporation that 
also holds non-institutional entities. Lastly, H.R. 4508 
allocates additional FWS dollars to reward institutions based 
on success in serving low-income students. Committee Democrats 
do not oppose this program improvement, but do oppose H.R. 
4508's provision to divide the additional funds by sector, as 
to do so effectively guarantees that for-profit institutions 
with poorer track records of serving Pell students will receive 
bonus funds while non-profit institutions with better track 
records will not receive additional federal dollars.
---------------------------------------------------------------------------
    \25\Melisa J. Beeson & Roger D. Wessel, The Impact of Working on 
Campus on the Academic Persistence of Freshmen, 32 J. OF STUD. FIN. AID 
37 (2002) available at: http://publications.nasfaa.org/jsfa/vol32/iss2/
3.
---------------------------------------------------------------------------
    Rep. Bonamici offered an amendment to strike and replace 
H.R. 4508's campus-based aid provisions with provisions to 
strengthen the federal commitment to campus-based aid and to 
the low-income students served by these important programs. The 
amendment sought to restore FSEOG, reauthorize the Perkins Loan 
program, and make improvements to FWS by building upon program 
reforms made in the underlying bill and restoring eligibility 
for graduate students to participate in the program. The 
amendment was rejected on a party line vote.

Federal--State partnerships

    In addition to strengthening federal student aid, Committee 
Democrats firmly believe that HEA reauthorization must include 
a mechanism to incentivize state investment in higher 
education.
    Sustained public investment via a Federal-State partnership 
would slow growth in college costs and make higher education 
more affordable. Committee Democrats believe such a partnership 
is also necessary to drastically reduce the financial burden of 
higher education on working families, as the majority of 
postsecondary students attend public two- and four-year 
nonprofit colleges and universities.
    In 2015, President Barack Obama first proposed America's 
College Promise, a plan to provide up to two years of tuition- 
and fee-free community college in partnership with States. 
Modeled after America's College Promise, Ranking Member Scott 
offered an amendment to H.R. 4508 to use federal funds to 
provide direct grant aid to States to leverage reforms, a 
maintenance of state investment in higher education, and to 
make an associate's degree free for every student. The 
amendment also sought to provide grant aid to low-income 
students who transfer from a community college to an MSI for 
the remainder of their degree. The amendment was not adopted by 
the Committee.

          H.R. 4508 IS A CASH WINDFALL FOR-PROFIT INSTITUTIONS

    H.R. 4508 provides unprecedented financial support for for-
profit institutions of higher education (IHE) and other 
corporate interests. Committee Democrats find this troubling, 
especially given the documented history of failures in the for-
profit industry which includes disproportionately high levels 
of student loan default; grossly expensive programs that result 
in little to no financial benefit for students; high-pressure 
sales tactics designed to entice students (and their federal 
aid dollars); and the receipt of hundreds of millions of 
dollars in federal student aid due in part to fraud or 
misrepresentation.
    Committee Democrats recognize that the needs of students 
and employers are changing and higher education and the laws 
that govern it must be responsive to those changes. However, 
H.R. 4508 changes long-standing definitions in HEA that have 
implications beyond higher education. The bill eliminates 
regulations that protect the interests of students and 
taxpayers, and puts the short-term needs of industry ahead of 
the long-term needs of students and our country. Further, the 
bill significantly changes how accreditors grant accreditation 
to IHEs making it much easier for for-profit institutions to 
get away with harmful practices. CBO estimates that seven 
different proposals in H.R. 4508 that will disproportionately 
benefit for-profit IHEs would cost taxpayers a total of $9.1 
billion over ten years. Finally, H.R. 4508 ties the hands of 
the Department of Education by prohibiting it from setting 
meaningful compliance standards through regulation.

The Case for the Regulation of For-Profit IHEs

    Evidence of waste, fraud, and abuse of federal funds by the 
for-profit sector has existed since the passage of the GI Bill 
in 1944. Under the Truman and Eisenhower Administrations, 
Congress authorized legislation in between 1948 and 1952 that 
tightened access to GI Bill funds by the for-profit sector. 
Wanting to avoid similar abuse seen with the GI Bill program, 
the Higher Education Act of 1965 excluded for-profit 
institutions from the federal loan guarantee program it 
created, but these institutions were allowed to access a much 
smaller vocational school loan program.\26\ However, when the 
two programs were merged in 1968, for-profits gained access to 
the larger loan program in the Higher Education Act. The 
country then saw an exponential growth of for-profit IHEs 
following Congress' decision to allow these institutions to 
access Title IV funds in the 1972 reauthorization of HEA. 
Incidents of fraud and abuse highlighted systemic problems, and 
in 1975, the Department of Health, Education, and Welfare 
issued regulations to review schools where high percentages of 
students were taking out student loans and ensure vocational 
schools were making certain consumer disclosures.\27\
---------------------------------------------------------------------------
    \26\The Century Foundation, Vietnam Vets and a New Student Loan 
Program Bring New College Scams, (Feb. 13, 2017) available at https://
tcf.org/content/report/vietnam-vets-new-student-loan-program-bring-new-
college-scams/. 
    \27\Center on Budget and Policy Priorities, Protecting Students and 
Taxpayers: Why the Trump Administration Should Heed History of 
Bipartisan Efforts, available at https://www.cbpp.org/research/federal-
budget/protecting-students-and-taxpayers#_ftnref12. 
---------------------------------------------------------------------------
    Following successful efforts to weaken federal regulations, 
the sector experienced a 600 percent student enrollment 
increase between 1990 and 2010. There is a litany of evidence 
that for-profit IHEs are disproportionately a bad bet for 
students, even dating back to these earlier years.\28\ For 
example, in 1990, when cohort default rates were at an all-time 
high, for-profit institutions had a default rate nearly twice 
as high as the overall rate (41 percent compared with 22 
percent, respectively). A 1997 Government Accountability Office 
(GAO) investigation found a strong negative correlation between 
for-profit institutional reliance on Title IV funds and student 
completion, placement rates, and student loan defaults. Simply 
put: for-profit institutions deriving the most revenue from 
federal student aid dollars had the worst student outcomes. 
GAO's investigation exposed a for-profit sector-specific 
failure to educate and prepare students for workforce entry, at 
a grave cost to taxpayers. Further, GAO and the Department of 
Education's Office of the Inspector General (OIG) found that 
for-profit institutions were disproportionately recruiting low-
income students, leading Congress to impose additional 
oversight of the for-profit sector. Yet, systematic abuse 
within this sector remains today. Despite these findings, 1996, 
1998, 2002 and 2006 brought deregulation of the for-profit 
sector resulting in four major protections that were either 
weakened or eliminated.\29\
---------------------------------------------------------------------------
    \28\Congressional Research Service. Examination of the Current 90/
10 Rule and Its Legislative and Regulatory History. January 25, 2011.
    \29\Center on Budget and Policy Priorities. Protecting Students and 
Taxpayers: Why the Trump Administration Should Heed History of 
Bipartisan Efforts. https://www.cbpp.org/research/federal-budget/
protecting-students-and-taxpayers#_ftnref12
---------------------------------------------------------------------------
    While the precipitous closures of Corinthian Colleges, Inc. 
in 2015 and ITT Tech in 2016 are glaring examples of the 
systematic abuse within this sector,\30\ abusive practices 
within the for-profit sector are not solely at the work of 
singular bad actors. In a January 2017 report, the Center for 
Investigative Reporting found that ``over the past decade, 
there have been at least 65 State and Federal investigations 
against for-profit colleges. More than 25 of these 
investigations have ended in court settlements or judgments 
worth over $1.5 billion.''\31\
---------------------------------------------------------------------------
    \30\For an in-depth account by Congress of some of the worst abuses 
in the for-profit industry, see For Profit Higher Education: The 
Failure to Safeguard the Federal Investment and Ensure Student Success, 
a report produced by the Senate Committee on Health, Education, Labor 
and Pensions (HELP), the product of a two-year investigation by the 
Committee from 2010-2012. Available at https://www.help.senate.gov/imo/
media/for_profit_report/PartI.pdf.
    \31\Sarah Alvarez, For-profit College Industry Slips Through Cracks 
of Accountability, REVEAL, Jan. 10, 2017, available at https://
www.revealnews.org/article/for-profit-college-industry-slips-through-
cracks-of-accountability/.
---------------------------------------------------------------------------
    News-making scandals aside, there is a more concerning and 
foundational problem with the for-profit sector--the education 
offered at these institutions is, in too many cases, not worth 
the high cost to student borrowers. For example, average 
tuition at for-profit two-year colleges is more than four times 
higher than at public community colleges ($14,193 compared with 
$3,370, respectively, in 2014). Students take out exorbitant 
debt to pay for for-profit IHE credentials that fail to produce 
corresponding personal value in the workforce. Research shows 
that for-profit IHEs contribute an unreasonably high share of 
student loan defaults.\32\ The same research finds that the 
average student earning a two-year degree from a for-profit IHE 
does not experience a large enough gain in earnings to offset 
the costs of their education.\33\ In short, a student earning 
an Associate's degree from a for-profit IHE would derive 
greater economic benefit from directly entering the workforce, 
without having earned the for-profit credential and the 
exorbitant debt that comes with it.
---------------------------------------------------------------------------
    \32\Stephanie Riegg Cellini and Lakita Chaudhary, The Labor Market 
Returns to a For-Profit College Education, Nat'l Bur. of Econ. Res. 11 
(2012) available at http://www.nber.org/papers/w18343. 
    \33\Id. at 27.
---------------------------------------------------------------------------
    The negative long-term effects on the federal student loan 
portfolio due to proliferation of for-profit IHEs are just 
beginning to come into focus, and the initial data are 
troubling. In a recent report looking at the long-term 
characteristics of two cohorts of student borrowers, 52 percent 
of borrowers at for-profit IHEs who entered school in 2003-04 
have already defaulted on their loans.\34\ This is twice the 
rate of borrowers at two-year public IHEs. When you compare all 
students, not just borrowers, the rate of default among for-
profit IHE students is four times higher than those at 
community colleges.\35\ The 2003-04 cohort in this study 
predates the rapid expansion of enrollment at for-profit IHEs 
that began in the late 2000s, which suggests that these trends 
will get far worse before they get better. Research also shows 
that, unlike non-profit institutions, for-profit institutions 
actually increase tuition and fees to capture additional 
federal financial aid dollars.\36\ Despite this overwhelming 
evidence of the need for federal oversight of the sector to 
protect students and taxpayers, H.R. 4508 rewrites and repeals 
many of the provisions in current law that attempt to regulate 
the for-profit sector's access to federal student aid, 
beginning with how these schools are defined in the law.
---------------------------------------------------------------------------
    \34\Judith Scott Clayton, The Looming Student Loan Default Crisis 
Is Worse than We Thought'', 2 Brookings Evidence Speaks Rept. #34 at 1, 
Jan. 10, 2018, available at https://www.brookings.edu/wp-content/
uploads/2018/01/scott-clayton-report.pdf. 
    \35\Id. 
    \36\Stephanie Riegg Cellini & Claudia Goldin, Does Federal Student 
Aid Raise Tuition? New Evidence on For-Profit Colleges, Nat'l Bur. of 
Econ. Res. Working Paper (2012, REV'D 2013) available at http://
www.nber.org/papers/w17827.pdf. 
---------------------------------------------------------------------------

Redefinitions that more favorably position for-profit institutions in 
        federal statute

    HEA currently contains multiple definitions of IHEs due, in 
part, to the merging of definitions in HEA with those in the 
National Vocational Loan Insurance Act of 1965. HEA originally 
limited federal financial aid to students attending ``public or 
other non-profit institutions of higher learning.'' Whereas, 
the Vocational Act expanded eligibility for aid to students who 
attended private for-profit schools but only for programs of 
``postsecondary vocational or technical education designed to 
fit individuals for useful employment in recognized 
occupations.''\37\ When Congress combined these two laws in 
1968, two classes of schools were created. The schools 
previously covered by HEA became ``institutions of higher 
education''; the Vocational Act schools and similar programs at 
public and non-profit schools became ``vocational schools''', 
still eligible for federal aid, but subject to the same useful 
employment language from the Vocational Act.
---------------------------------------------------------------------------
    \37\Ass'n of Proprietary Colls. v. Duncan, No. 1-14-cv-08838 
(S.D.N.Y. May 27, 2015) at 7.
---------------------------------------------------------------------------
    In 1992, Congress again revised the ``vocational schools''' 
definition, distinguishing ``proprietary institutions of higher 
education'' (private for-profit schools) from ``post-secondary 
vocational institutions''' (non-degree training and vocational 
programs at public and non-profit schools). Both proprietary 
schools and the vocational programs at public and non-profit 
schools were required by law to ``prepare students for gainful 
employment in a recognized occupation.'' HEA currently 
recognizes all of these schools as ``institutions of higher 
education'' but still appropriately recognizes the distinction 
between public and non-profit institutions (``101(a) 
institutions''') and ``any school that provides not less than a 
1-year program of training to prepare students for gainful 
employment in a recognized occupation'' (``101(b) 
institutions''').
    H.R. 4508 merges two definitions in current law, allowing 
for-profit IHEs to compete for already limited federal grant 
dollars currently reserved for non-profit degree granting IHEs. 
Committee Republicans did place some limitations on which 
federal programs proprietary schools can receive funding from, 
excluding Institutional Aid (Title III) and Developing 
Institutions (Title V) programs. But under H.R. 4508, 
proprietary schools would have access to more funds authorized 
in HEA than they do currently.
    Committee Democrats are also troubled by the implications 
of this change outside the scope of HEA. There are other 
provisions of law throughout the U.S. Code and State codes that 
reference the 101(a) definition of IHEs, often with the direct 
intent to exclude for-profit IHEs from access to federal 
programs. This includes both laws directly related to education 
and child development (K-12 education,\38\ Head Start,\39\ 
Education Sciences\40\) and laws that are beyond the scope of 
education and child development (Immigration,\41\ the Federal 
Aviation Administration,\42\ Patent Law,\43\ Institutional 
Grant and Student Scholarship programs throughout the federal 
government\44\). There are many other laws that use a broader 
definition that includes both non-profit and for profit 
IHEs\45\, which shows that statutory use of the 101(a) 
definition in current law is evidence of lawmakers' deliberate 
exclusion of for-profit institutions from certain sources of 
federal funds or allowances under federal law. By removing this 
distinction, Committee Republicans are attempting to alter 
Congress' history of limiting the access of for-profit 
institutions across the federal code.
---------------------------------------------------------------------------
    \38\Elementary and Secondary Education Act of 1965, 20 U.S.C. 
Sec. 7801.
    \39\Omnibus Budget Reconciliation Act of 1981, 42 U.S.C. Sec. 9832.
    \40\Education Sciences Reform Act of 2002, Pub. L. No. 107-279, 116 
Stat. 1940.
    \41\E.g., 8 U.S.C. Sec. 1184 (providing exclusion from limitations 
on visas issued to nonimmigrant aliens who are employees of 101(a) 
IHEs).
    \42\FAA Modernization Act of 2012, Pub. L. No. 112-95, 126 Stat. 
139 (regarding research on developing safer airport runways).
    \43\35 U.S.C. Sec. 273 (defenses to copyright infringement afforded 
101(a) IHEs).
    \44\E.g., 42 U.S.C. Sec. 1862n (Math and Science Partnership Grants 
from the National Science Foundation).
    \45\E.g., Workforce Investment Act of 1998 20 U.S.C. 9202 (``The 
term `institution of higher education' has the meaning given the term 
in section 101 of the Higher Education Act of 1965.'').
---------------------------------------------------------------------------
    H.R. 4508 also alters the definitions of IHE for the 
purpose of Title IV programs in Sec. 102 of HEA. The changes 
impact how IHEs outside the United States receive Title IV aid. 
Under current law the Secretary is directed to establish the 
criteria for determining which, if any, foreign IHEs can 
receive Title IV aid. H.R. 4508 seems to incorporate those 
underlying regulations, while at the same time creating its own 
definition of foreign institution, different than the 
regulatory definition incorporated. Finally, in recognition of 
the conflict it has created, the bill suggests that the new 
first definition is the actual definition of ``foreign 
institution''. This overwrought complexity does nothing but 
make it easier for for-profit foreign schools to find loopholes 
through which they can receive Title IV aid.
    Finally, the bill creates new definitions of competency, 
competency-based education (CBE), and competency-based 
education program. These terms replace the current law term 
``distance education'' in key places throughout the HEA to 
loosen federal oversight over disbursement of Title IV dollars. 
Committee Democrats are highly concerned that this change of 
definition (along with the watering down of the definition of 
``correspondence education'') will have serious implications 
for the provision of quality higher education programs. As 
defined, CBE will give for-profit institutions the ability to 
disproportionately access Title IV federal student aid without 
providing enough of a legal and regulatory framework to ensure 
the schools receiving federal dollars for delivery of CBE, as 
defined in H.R. 4508, provide students with a meaningful 
education or valuable credential. CBO estimates that removal of 
the ``distance education'' definition and the creation of a 
``competency-based education'' definition will together cost 
the federal government $2.9 billion over the next ten years. A 
disproportionate amount of these funds will likely flow to for-
profit schools. Additional concerns with CBE are discussed in-
depth later in these views.\46\
---------------------------------------------------------------------------
    \46\See infra Part: ``H.R. 4508 Doubles Down on Unproven Programs 
in Higher Education, at the Expense of Students''.
---------------------------------------------------------------------------

Legislative Repeals, Regulatory Rollbacks, and Bans on Departmental 
        Rulemaking

    H.R. 4508 dismantles the regulatory framework designed to 
prevent predatory for-profit IHEs from enriching themselves at 
the expense of students and taxpayers. While the set of 
statutory and regulatory oversight mechanisms repealed by the 
bill has failed to prevent all for-profit sector abuse of 
federal funds, it has been instrumental in preventing for-
profit schools from existing solely thanks to receipt of 
federal student aid and ensuring that both for-profit and non-
profit career program credentials lead to a job commensurate 
with their cost. H.R. 4508 will make it easier for schools to 
alter program hours and lengths to receive more money for less 
education. The bill weakens the role of States in the 
regulatory triad of higher education, and will make it easier 
for for-profit IHEs to avoid necessary oversight, accomplishing 
the primary policy goal of the industry on the backs of 
students and taxpayers.
    H.R. 4508 eliminates the 90/10 requirement for for-profit 
colleges. Current law requires that for-profit IHEs receive no 
more than 90 percent (previously 85 percent) of their total 
revenue from federal Title IV aid. This market-value provision 
was created by Congress during the 1992 reauthorization to 
ensure that for-profit entities were not deriving all of their 
revenue from the federal government. The idea of monitoring an 
institution's dependence on federal funds was already being 
applied in veterans' assistance programs due to the abuse that 
had taken place with veteran benefits decades earlier and 
evaluations of these programs had found that the policy 
hadhelped to curb abuse.\47\ Because many for-profit schools recruit 
veteran students and only financial aid authorized through the HEA is 
accounted for in the calculation, there is mounting evidence that the 
90/10 requirement does not do enough to stop abuse in the for-profit 
sector. While some leaders in the for-profit sector such as DeVry 
University have decided to take all federal funds into account in their 
90/10 calculations, this is self-imposed action. In the most recent 
reporting period for which we have data, of the 1,872 for-profit IHEs, 
only four reported failing the 90/10 rule.\48\ Committee Republicans 
still claim the 90/10 rule is a burden on schools and repeal the 
requirement. CBO estimates that repeal of the 90/10 rule will cost 
taxpayers $3.3 billion over ten years.
---------------------------------------------------------------------------
    \47\Congressional Research Service. Examination of the Current 90/
10 Rule and Its Legislative and Regulatory History. January 25, 2011.
    \48\Letter from Kathleen Smith, Acting Assistant Secretary, 
Department of Education, to Rep. Foxx (Oct. 20, 2017), available at 
https://studentaid.ed.gov/sa/sites/default/files/fsawg/datacenter/
library/AY15-16-Transmittal-Letter.pdf.
---------------------------------------------------------------------------
    H.R. 4508 eliminates the existing borrowers defense to 
repayment rule. Issued in 2016, the ``borrowers defense'' rule 
established a federal standard and process to determine whether 
a student loan borrower has a defense to repayment of their 
loan based on an act or omission of their school. Additionally, 
it prohibited schools that participate in federal student aid 
from forcing students into pre-dispute arbitration or class 
action waivers. The rule also clarified policies around when 
loans can be discharged collectively for groups of borrowers 
(e.g., when a school closes). The Obama administration used the 
combination of borrowers' defense and closed school discharges 
to provide more than $558 million in loan relief to tens of 
thousands of student borrowers.\49\ As of January 2017, there 
were more than 60,000 claims pending at the Department of 
Education.\50\ H.R. 4508 repeals the 2016 regulations, and 
creates a statutory framework for borrowers defense. That 
framework permits borrowers only three years to file a claim 
and obtain relief, limits the Department's mandate to 
automatically provide closed school discharges to affected 
students, and sets an exceedingly high bar for borrowers to 
prove their claims, to the benefit of IHEs.
---------------------------------------------------------------------------
    \49\Press Release, U.S. Dep't of Educ., American Career Institute 
Borrowers to Receive Automatic Group Relief for Federal Student Loans 
(Jan. 13, 2017) available at https://www.ed.gov/news/press-releases/
american-career-institute-borrowers-receive-automatic-group-relief-
federal-student-loans.
    \50\Id.
---------------------------------------------------------------------------
    H.R. 4508 eliminates the statutory term ``Gainful 
Employment'' (GE) and the corresponding Rule. Finalized in 
October of 2014, the GE rule set a meaningful and necessary 
standard for the Department of Education enforcement of 
compliance with the statutory requirement that non-degree 
training and vocational programs (career programs) at public 
and non-profit schools prepare their students for gainful 
employment in exchange for access to Title IV aid. The rule set 
this standard by establishing ratios between income and student 
loan debt to determine if career program graduates earn enough 
money to pay back their loans. It required both programs that 
failed outright and programs in the zone between passage and 
failure to proactively disclose this status to prospective 
students. Under the rule, a program ``in the zone'' or failing 
for multiple years would lose access to federal student aid. In 
the first round of GE data that was released January of 2017, 
98 percent of the 800+ career programs that failed the rule 
were offered by for-profit colleges.\51\ Along with repealing 
the GE rule, H.R. 4508's re-definition of IHE strikes ``gainful 
employment,'' eliminating the ability of the Department of 
Education to regulate on the concept in the future. CBO 
estimates removing the rule will cost taxpayers $940 million 
over ten years.
---------------------------------------------------------------------------
    \51\Id.
---------------------------------------------------------------------------
    H.R. 4508 revokes the credit hour rule. HEA defines an 
academic year for an undergraduate program as requiring a 
minimum of 24 semester or trimester credit hours or 36 quarter 
credit hours in a course of study. The amount of student 
financial assistance that can be awarded is based on the number 
of credit hours earned, but the term ``credit hour'' is not 
defined in the HEA. Further, many institutions are moving to a 
credit-hour fee structure, charging students per-credit, rather 
than per-semester. In recognition of the importance of the 
``credit hour'' unit as an accounting measure for student 
financial assistance and in response to findings by the 
Department of Education OIG that accreditors (as required by 
HEA) did not have sufficient policies to ensure proper 
assignment of credit hours to educational programs or to 
justify program length, the Department defined a ``credit 
hour'' in final regulations issued October 29, 2010. This 
federal definition is consistent with commonly accepted 
institutional and accrediting practices, and allows for a broad 
application to a variety of course structures (such as 
competency based coursework, laboratory work, and internships). 
The definition applies to institutions for the purposes of 
awarding federal financial aid; it does not preclude an 
institution from creating a separate definition for 
institutional purposes. The credit hour rule created a more 
standardized, yet flexible, definition of the basis for 
awarding all federal aid. In one of the few hearings the 
Committee held on higher education this year, witness Ben 
Miller from the Center for American Progress justified the need 
for the rule as thus:

          ``I think one thing that is important to realize here 
        is part of the reason why we needed this rule was we 
        had colleges out there that were inflating credit hours 
        to get more financial aid, so we had schools claiming 
        they were offering courses worth nine credits that did 
        not have the amount of learning behind that. When you 
        do that, students pull down more financial aid than 
        they should, so they're going to exhaust their lifetime 
        eligibility sooner, and we're going to pay money out to 
        schools faster than we should. . . . we want to make 
        sure that schools aren't essentially taking in more 
        money than they should, making it harder for students 
        to get enough money to finish their whole 
        program.''\52\

    \52\Testimony of Ben Miller, Center for American Progress, at 
Hearing of the Committee on Education and the Workforce, 
``Strengthening Accreditation to Better Protect Students and 
Taxpayers'', Apr. 27, 2017.
---------------------------------------------------------------------------
    In repealing the rule, H.R. 4508 would permit schools to 
inflate their credit hours, siphoning more taxpayer dollars 
through federal aid and forcing students to spend down their 
aid eligibility more quickly without receiving commensurate 
educational benefit. Not content to strike the existing rule, 
the bill also prevents the Department of Education from 
promulgating or enforcing a new credit hour rule in the future. 
Committee Democrats recognize that there have been discrete 
difficulties applying the current rule to all forms of higher 
education, but maintain the firm belief that the rule should be 
amended to ensure there is a meaningful compliance standard 
that appropriately comports with innovative delivery methods 
proven to benefit students. Committee Democrats believe that 
H.R. 4508's limitation on the ability of the Secretary to bring 
any rule to prevent waste, fraud, and abuse ignores evidence of 
past behaviors by scrupulous actors and invites fraudulent 
behavior.
    H.R. 4508 repeals State authorization regulations. In order 
for students at an institution to be eligible for Title IV 
funds, an institution must be legally authorized by a State to 
provide a program of postsecondary education. The Department of 
Education's state authorization rules for brick-and-mortar and 
distance education institutions establish baseline requirements 
for the approvals that colleges receive from States to protect 
students across the country. The bill repeals those baseline 
protections, and like the credit hour rule, prohibits any 
future regulation by the Department of Education on state 
authorization.
    H.R. 4508 shortens the program length requirement for Title 
IV programs. Under current law, programs that receive Title IV 
aid must have substantial timeframes to qualify for aid. The 
rationale is that funds appropriated for higher education 
should fund traditional programs that offer a complete 
postsecondary education program. Shorter-length programs can 
receive eligibility, provided they have strong completion and 
job-placement numbers--indicators of a quality program. H.R. 
4508 would shorten the minimum timeframe for a program of study 
by a third, to just 10 weeks, and eliminate existing job 
placement requirements and completion rate standards for short 
term programs. This would permit students to access Pell Grants 
and loans to attend short-term programs without any assurance 
that the program's credential has meaningful value in the labor 
market. CBO estimates this provision will cost taxpayers $305 
million over 10 years.
    H.R. 4508 opens the door to for-profit abusive recruitment 
practices. While HEA bans certain forms of incentive 
compensation, there are regulatory loopholes that allow for 
limited use of incentive-based compensation, specifically the 
use of third-party recruiters. It is likely that for-profit 
schools used these loopholes to further abusive and fraudulent 
recruiting tactics during the explosion of enrollment at low-
quality schools from 2009-2014. H.R. 4508 makes it harder to 
protect students from aggressive marketing and recruiting by 
codifying current regulatory loopholes used by the likes of ITT 
Tech and Corinthian to entice large numbers of low-income and 
low-information students to enroll in for-profit schools, often 
without the support necessary to even complete their degree, 
leading them down a path of debt and default.
    H.R. 4508 allows unaccountable (and currently ineligible) 
education program providers to access taxpayer dollars. The 
bill would create an unaccountable, highly risky field of 
educational providers with full access to federal financial 
aid, in the name of innovation. The bill permits non-
institutional education providers--those that haven't met even 
the basic requirements colleges must meet in terms of 
accreditor, State, and Department of Education approval--to 
offer entire programs of study at an IHE, granting them access 
to federal aid with no checks and balances. An ineligible 
program could provide up to 25 percent of an educational 
program with no oversight whatsoever, and anywhere from 26-100 
percent of a program with the approval of the eligible 
program's accreditor. While Committee Democrats recognize that 
there are certain cases where a partnership between an 
ineligible program and an eligible program makes sense and can 
be a good deal for students (e.g., fine arts students splitting 
program time between a classroom and a working theater), this 
provision in H.R. 4508 is overly broad and would invite bad 
actors, especially those with a strong profit motive.

Weakening accreditation to benefit for-profit institutions

    For-profit IHEs have been adept at creating an alternative 
narrative, mainly through billions spent on advertising and 
aggressive recruitment techniques. Although comprehensive 
numbers are not widely available, it is estimated that the for-
profit IHE sector routinely spent at least 20 perecent of its 
annual revenue on marketing and advertising over the last 
decade.\53\ Coupled with the advertising were recruitment 
practices targeting low-information and low-income consumers. 
Targeting such consumers enabled the sector to dramatically 
increase student enrollment while maximizing access to billions 
of dollars in federal student aid.\54\
---------------------------------------------------------------------------
    \53\See Senate HELP Report, supra note 30, at Part II, page 382 
(``On average, among the 15 publicly traded education companies, 86 
percent of revenue came from Federal taxpayers in fiscal year 2009.1535 
During the same period those companies spent 23 percent of revenue on 
marketing and recruiting ($3.7 billion) and dedicated 19.7 percent to 
profit ($3.2 billion)'').
    \54\Annie Waldman, How a For-Profit College Targeted the Homeless 
and Kids With Low Self-Esteem, ProPublica, March 18, 2016, available at 
https://www.propublica.org/article/how-a-for-profit-college-targeted-
homeless-and-kids-with-low-self-esteem.
---------------------------------------------------------------------------
    Ignoring these facts, H.R. 4508 specifically eliminates the 
provision requiring an accreditor to assess recruiting and 
admission practices, record of student complaints, and record 
of compliance. Removing this requirement weakens yet another 
check on the for-profit sector. The bill also eliminates the 
need for accreditors to assess curricula, faculty, facilities, 
fiscal capacity, and measure of program length. Under H.R. 
4508, accreditors are only required to evaluate success with 
respect to student learning and educational outcomes. The 
legislative language is clear that accreditors can include 
different standards for different institutions and programs. 
Further, these standards may be established by the accreditor 
or by the institution/program if the institution/program 
defines and measures the expected goals and outcomes. Allowing 
institutions to self-regulate, combined with the other 
provisions in H.R. 4508 leaves the door open for further abuse 
of students.
    Under H.R. 4508, for-profit colleges and corporate 
interests are the clear winners. The bill gives for-profit 
colleges unfettered access to Title IV funds without remotely 
adequate safeguards to protect students and taxpayers. Rather 
than work to increase access and affordability to quality 
degrees and credentials for all students, the bill opens the 
door to more waste, fraud, and abuse in higher education, with 
students and taxpayers left holding the bag.
    In response to the flawed proposals that preference for-
profit institutions in H.R. 4508, Rep. Takano introduced an 
amendment to restore the separate definition of for-profit 
institution, retain the Department of Education's ability to 
regulate on student protections from abuse by for-profit 
institutions, and reinstate the 90/10 rule. Further, to stop 
the aggressive recruitment of veterans, the amendment included 
a provision to count veteran benefits as federal dollars, an 
attempt to close the ``90/10 loophole''. The amendment restored 
State authorization requirements for distance education and 
current-law prohibitions on incentive payments for recruiters. 
Further, it specified strict conditions under which a non-
eligible institution or organization in partnership with an 
eligible institution of higher education can access Title IV 
funds. The amendment failed on a party-line vote.

 H.R. 4508 ABANDONS TEACHERS WHILE DISGUISING LOW-QUALITY JOB TRAINING 
                      PROGRAMS AS APPRENTICESHIPS

    Since its inception, HEA has included supports for the 
training and recruitment of teachers. H.R. 4508 eliminates all 
federal funding for teacher preparation programs. In its place, 
CommitteeRepublicans offer a misnamed grant program that 
purports to provide ``apprenticeships.'' Committee Democrats strongly 
dispute the claim that ``apprenticeships'' are offered under this new 
Title II. Instead, this re-write provides federal grants for a low-
quality `earn and learn' experience that has little relation to the 
registered apprenticeship program proven to result in quality 
credentials that have value in the workforce.
    Although public education is experiencing a national 
teacher shortage,\55\ H.R. 4508 eliminates all federal funding 
for teacher preparation programs. By eliminating Teacher 
Quality Partnership Grants and all other HEA authorized grant 
programs to enhance teacher education, H.R. 4508 would shrink 
the pipeline of effective teachers and school leaders, hurting 
students across the country. Committee Democrats strongly 
believe HEA programs that improve pre-service teacher 
preparation and support new teachers should be strengthened not 
eliminated.
---------------------------------------------------------------------------
    \55\Sophie Quinton, Teacher Shortages Linger in Many States, Pew 
Charitable Trusts Stateline, Dec. 28, 2017, available at http://
www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2017/12/28/
teacher-shortages-linger-in-many-states?utm_campaign=2018-01-
02+SW&utm_medium=email&utm_source=Pew.
---------------------------------------------------------------------------
    Instead of strengthening the teacher pipeline, H.R. 4508 
creates a new grant program in which corporations, 
collaborating with institutions of higher education (including 
for-profit institutions), are eligible to receive federal funds 
for programs branded as ``apprenticeships.'' These programs 
have few if any of the quality controls generally associated 
with high quality apprenticeship programs. Although the bill 
labels this program as an ``apprenticeship'' program, in 
reality this is an earn-and-learn grant program that fails to 
meet widely accepted minimum standards for apprenticeship 
programs. Grants awarded to providers under H.R. 4508 could be 
used to fund something more akin to a subsidized internship, 
than an actual apprenticeship.
    Although there is broad bipartisan support for expanding 
access to quality apprenticeship programs, Committee Democrats 
believe the registration process provides necessary quality 
control and program accountability that has been key to the 
programs' success. Registered Apprenticeship (RA) is a proven 
model of job preparation that combines paid on-the-job training 
with related classroom instruction to progressively increase 
workers' skill levels and wages. For workers, RA means a real 
job that leads to a credential that is valued in the labor 
market. Apprentices are paid for their time spent on the job, 
accumulate little to no student debt, and are generally 
retained once they have successfully completed their programs. 
Many RA programs also have the added benefit of eligibility for 
certain federal financial aid programs.\56\
---------------------------------------------------------------------------
    \56\Employment and Training Administration, U.S. Dept. of Labor, 
The Federal Resources Playbook for Registered Apprenticeship, 2, 
available at https://www.doleta.gov/oa/federalresources/playbook.pdf 
(outlining how Pell and Work-Study funds are available to support 
students in registered apprenticeships).
---------------------------------------------------------------------------
    Graduates of RA programs receive nationally-recognized, 
portable credentials, and their training may be applied toward 
further post-secondary education. RA programs require the 
submission of detailed standards documentation on the 
apprenticeship for a specific occupation to the U.S. Department 
of Labor's (DOL) Office of Apprenticeship or the State 
apprenticeship agency for review and approval. These standards 
demonstrate that an apprenticeship meets the five core 
components required for a registered apprenticeship: direct 
business involvement, on-the-job training, related (classroom) 
instruction, rewards for skill gains (wage scale), and a 
national occupational credential. These standards requirements 
allow every graduate of an RA program to receive a nationally-
recognized portable credential, the Certificate of Completion, 
which signifies that the apprentice is fully qualified to 
successfully perform an occupation.\57\ None of this is 
required for H.R. 4508's ``apprenticeship'' program. 
Additionally, the new program authorized by H.R. 4508 would be 
administered by ED, not DOL, and wholly duplicative of the $1.3 
billion program authorized by the Carl D. Perkins Career and 
Technical Education Act (Perkins CTE) already administered by 
ED. The Perkins CTE program sends federal funds to support 
quality CTE developed by community colleges in partnership with 
industry.
---------------------------------------------------------------------------
    \57\Employment and Training Administration, U.S. Dept. of Labor, 
Training and Employment Guidance Letter WIOA NO. 13-16, Operating 
Guidance for the Workforce Innovation and Opportunity Act, Jan. 12, 
2017, available at https://wdr.doleta.gov/directives/attach/TEGL/
TEGL_13-16_acc.pdf.
---------------------------------------------------------------------------
    According to the Center for American Progress, 87.4 percent 
of apprentices who finished high-quality training were employed 
shortly after completion of the apprenticeship.\58\ 
Apprenticeship completers also make middle-class wages. The 
Department of Labor estimates that the average wage for an 
individual who has completed an apprenticeship is $50,000. Over 
a lifetime, this can add up to approximately $300,000 more in 
wages and benefits.\59\ The RA program has an established track 
record of providing high-quality job training. By creating a 
lesser ``apprentice'' model, H.R. 4508 uses the buzzword of 
``apprenticeship'' to provide direct aid to industry while 
offering an inferior education and training program for 
students.
---------------------------------------------------------------------------
    \58\Ben Olinsky and Sarah Ayres, Training for Success, A Policy to 
Expand Apprenticeships in the United States 10, Ctr. for Am. Prog. Nov. 
2013, available at https://www.americanprogress.org/wp-content/uploads/
2013/11/apprenticeship_report2.pdf
    \59\Angela Hanks. Now is the Time to Invest in Apprenticeships. 
Center for American Progress. November 18, 2016. https://
www.americanprogress.org/issues/economy/reports/2016/11/18/292558/now-
is-the-time-to-invest-in-apprenticeships/
---------------------------------------------------------------------------
    Rep. Wilson introduced an amendment to strike the repeal of 
the Teacher Quality Partnership Grant program, TEACH Grant 
program, and other supports for college students wanting to 
pursue the teaching profession. Rep. Davis introduced an 
amendment that would require the Department of Education to 
consult with the Department of Labor in creating and 
administering the grant program established by H.R. 4508 to 
ensure program quality. The amendment also sought to change the 
name of the new grant program to clarify that the program 
authorized is an ``earn and learn'' program, not an 
apprenticeship program. Both amendments failed on a party line 
vote.

 H.R. 4508 DISINVESTS IN INSTITUTIONS THAT SERVE LOW-INCOME, MINORITY, 
                           AND RURAL STUDENTS

    While H.R. 4508 includes multiple provisions that will 
benefit for-profit schools to the detriment of students, there 
are two other under-resourced institutional sectors that serve 
as engines of economic mobility but do not receive such 
favorable treatment: community colleges and Minority Serving 
Institutions (MSIs). This is disappointing because not only do 
such schools disproportionately enroll low-income, minority, 
and first-generations students, but they also produce better 
student outcomes than for-profit schools. Community colleges 
and MSIs provide a better education for many students at a 
cheaper price than for-profit schools, and there are several 
policies in H.R. 4508 that will negatively impact their 
capacity to serve students. Committee Democrats believe a 
reauthorized HEA must build the capacity for community colleges 
and MSIs to deliver quality programming not hinder the work of 
these schools. To that end, Committee Democrats offered a 
number of amendments to ensure adequate federal resources for 
community colleges and MSIs.

``Risk-sharing'' proposal poses significant risk to institutions that 
        serve vulnerable students

    H.R. 4508 restructures the existing Return to Title IV 
(R2T4) process that requires institutions to return funds to 
the federal government when a student withdraws before the end 
of a semester. The bill increases the proportion that 
institutions must return, disproportionately impacting 
institutions that enroll higher proportions of students who are 
at-risk of withdrawing prior to completion. This provides 
institutions perverse incentive to enroll higher-income 
students who are already more likely to repay. Democrats 
support ``risk-sharing'' that will incentivize institutions to 
effectively serve and ensure degree completion of high-need 
students, not deny such students access.

Minority serving institution funding and requirements attached to such 
        funding

    To correct for historical inequities in funding and to 
improve the quality of higher education for minority-students, 
Congress established minority-serving institution (MSI) 
designations for public and private non-profit institutions. 
Starting with Historically Black Colleges and Universities 
(HBCUs) in 1986, Congress eventually recognized seven different 
undergraduate designations of MSI, all with their own 
requirements for recognition, institutional characteristics, 
and challenges. Collectively, in the 2013-14 academic year, 
MSIs served 40 percent of underrepresented students, totaling 
approximately 3.8 million students or 26 percent of all college 
students.\60\ MSIs do this work despite being under-resourced 
compared to Predominantly White Institutions.\61\
---------------------------------------------------------------------------
    \60\2016-17 National Campaign on the Return on Investment of 
Minority Serving Institutions, Univ. of Penn. Center for MSIs, 
available at https://cmsi.gse.upenn.edu/sites/default/files/
ROI_Report.pdf.
    \61\Id. at 5 (``Total revenue per full-time equivalent student is 
roughly $16,648 at four-year Minority Serving Institutions (MSIs) 
compared to $29,833 at non-MSIs.'').
---------------------------------------------------------------------------
    In an effort to address this resource gap, Congress 
provides institutional aid to MSIs via formula funding and 
competitive grants in Titles III and V of HEA. These programs 
are funded by both discretionary spending and direct spending 
(first secured in FY 2011 as part of the Student Aid and Fiscal 
Responsibility Act (SAFRA)). These institutional aid funds can 
be used by institutions in a variety of ways including 
supporting the academic mission of the institution, making 
capital improvements, and building endowment funds. The 
mandatory portion of these funds expires in FY 2019, and MSIs 
and their member organizations have prioritized securing this 
mandatory funding in any HEA reauthorization.
    H.R. 4508 does not extend this mandatory funding, leaving 
the fate of these institutional aid programs in the hands of 
appropriators and threatening long-term funding stability. 
Additionally H.R. 4508 places a 25 percent graduation/transfer 
requirement on certain MSI grants. Instead of penalizing 
already underserved institutions, Committee Democrats believe 
that the federal government should help these institutions 
build capacity to improve student outcomes.
    Rep. Adams introduced an amendment to repeal the 25 percent 
graduation and/or transfer rate requirement created for some 
but not all MSI programs in H.R. 4508. The amendment also 
extended mandatory funding for MSI programs and revised 
allowable uses of funds, in response to the needs of each 
specific MSI sector. The Adams amendment established new grant 
programs to further support MSIs and the students they serve, 
including an $850 million MSI Innovation Fund to provide 
sustained funding on MSI campuses to drive innovative 
approaches to improving college completion for minority 
students, bolster STEM degree attainment, and improve the 
connection between MSIs and the private sector. The spending on 
this amendment would amount to a fraction of the cost of the 
proposed changes contained in H.R. 4508 intended to 
disproportionately benefit the for-profit IHE sector. The 
amendment failed on a party line vote.

Community college institutional funding

    In recognition of the fact that open-access Community 
colleges enroll a diverse student body and more than 40 percent 
of all undergraduates, Committee Democrats offered amendments 
to improve community college capacity. Community colleges 
enroll the majority of all Native American and Latino 
undergraduate students (56 and 52 percent, respectively), and 
enroll two in five Black and Asian/Pacific Islander 
undergraduate students (43 percent and 40 percent, 
respectively).\62\ These institutions provide an affordable 
education and training close to home for students who attend 
part-time, work full-time, are from low-income families, or may 
be responsible for families of their own. Additionally, 
community colleges are often positioned as the only non-profit 
IHE in many rural communities throughout the country.
---------------------------------------------------------------------------
    \62\Fast Facts 2017, American Association of Community Colleges, 
available at https://www.aacc.nche.edu/wp-content/uploads/2017/09/
AACCFactSheet2017.pdf
---------------------------------------------------------------------------
    Despite the pivotal role of community colleges in our 
country, these institutions are often underfunded and 
underappreciated. Students at community colleges receive less 
public support than students at four-year research 
institutions. In 2011, per-pupil public funding at community 
colleges was $7,420, while students attending four-year 
institutions received amounts more than twice as high.\63\ HEA 
currently provides institutional aid to community colleges 
through the Strengthening Institutions Program (SIP) authorized 
in Title III, Part A. This program provides competitive grants 
to campuses that often use the funds to provide the wraparound 
services that community college students often need to persist 
through to graduation or transfer to a four-year school. SIP 
grants are highly competitive with need outpacing the available 
grants considerably. Shockingly, H.R 4508's response to the 
documented need of the community college sector was to 
eliminate the SIP program.
---------------------------------------------------------------------------
    \63\Richard D. Kahlenberg, How Higher Education Funding 
Shortchanges Community Colleges, 4, The Century Foundation, May 28, 
2015, available at https://tcf.org/assets/downloads/
Kahlenberg_FundingShortchanges.pdf
---------------------------------------------------------------------------
    To ensure that community colleges have sufficient resources 
to serve their students, Rep. Norcross introduced an amendment 
to provide funding to support the expansion of effective 
community college completion programs through the delivery of 
comprehensive student support services, including academic 
advising, academic and career support, and financial support. 
The core components of the services are modeled after 
rigorously evaluated programs that have, through these 
services, removed barriers to full-time study and increased 
three-year associate's degree completion and transfer 
rates.\64\ In addition to these core supports, institutions 
receiving grants would have the flexibility to tailor their 
program to their unique needs. To ensure accountability to 
taxpayers and policy makers, the amendment requires all 
grantees to monitor and track student participation and measure 
academic progress toward clearly articulated program goals. 
Committee Republicans voted to reject the Norcross amendment.
---------------------------------------------------------------------------
    \64\Strumbos, D., Kolenovic, & Z., Tavares, A. (2016). CUNY 
Accelerated Study in Associate Programs (ASAP): Evidence from Six 
Cohorts and Lessons for Expansion. In S. Whalen (Ed.), Proceedings of 
the 12th National Symposium on Student Retention, Norfolk, Virginia. 
(pp. 130-142). Norman, OK: The University of Oklahoma. Retrieved http:/
/www1.cuny.edu/sites/asap/wp-content/uploads/sites/8/2016/11/CUNY-ASAP-
NSSR-Proceedings_web_20161109.pdf
---------------------------------------------------------------------------

H.R. 4508 REPEALS VALUABLE REGULATIONS WHILE INTRODUCING NEW REGULATION 
                      TO PROMOTE IDEOLOGICAL VIEWS

    Throughout the markup, Committee Republicans characterized 
oversight and accountability over IHEs as ``burdensome 
overregulation.'' In contrast, Committee Democrats offered 
amendments and discussed the need to adhere to the original 
intent of the HEA--to improve access to higher education for 
capable students, regardless of income level.

Relaxing institutional drug prevention requirements during a national 
        opioid crisis

    H.R. 4508 sought to remove the current-law Program 
Participation Agreement (PPA) provision that requires IHEs 
receiving federal funds to implement drug and alcohol abuse 
prevention programming found in Title IV, while maintaining a 
corresponding requirement in Title I that carries no federal 
enforcement. The bill also repeals current-law authorization of 
grant funds to assist IHEs in developing and implementing 
effective prevention programs. This action ignores the data: 
approximately 64,000 Americans died from drug overdose last 
year, and the non-medical use of prescription drugs was highest 
among college-aged individuals.\65\
---------------------------------------------------------------------------
    \65\Catherine Morris, Experts: Colleges Have Role in Battling 
Opioid Epidemic, Diverse! (Oct. 24, 2017) available at http://
diverseeducation.com/article/103785/.
---------------------------------------------------------------------------
    Approximately 150 institutions are already responding by 
offering collegiate recovery programs and a growing number are 
offering substance-free or recovery-centered housing and other 
health interventions and support services to students 
struggling with or affected by addiction.\66\ Rep. Shea-Porter 
offered an amendment to keep the PPA requirement for drug and 
alcohol abuse prevention programming as a condition of federal 
funding--a provision that has been in the HEA for the last 30 
years--and strengthened the requirement to ensure that programs 
offered by the IHE are evidence-based and have a focus on 
opioid misuse to help combat the opioid epidemic. After some 
debate, this amendment was adopted by voice vote.
---------------------------------------------------------------------------
    \66\Mariah, Bohannon, The Opioid Crisis Comes to College, Insight 
into Diversity (Oct. 17, 2017) available at http://
www.insightintodiversity.com/the-opioid-crisis-comes-to-college/.
---------------------------------------------------------------------------

Removing campus voter registration requirements while Republicans work 
        to limit ballot access

    H.R. 4508 weakens a current-law provision that requires 
colleges receiving Title IV funds to distribute voter 
registration information to students by moving the provision 
out of the PPA section and into a different title; thus, 
removing institutional accountability for failure to distribute 
voter registration information to students. Committee Democrats 
recognize that institutions of higher education, having long-
served as places of civic engagement, play an integral role in 
supporting students to pursue civic engagement and participate 
in the democratic process. Rep. Krishnamoorthi introduced an 
amendment to strike H.R. 4508's harmful changes that dilute the 
current-law requirement that institutions distribute voter 
registration information. Unfortunately, the amendment was not 
adopted as it was opposed by Committee Republicans.

Regulations limiting the use of postsecondary data pass Committee 
        Republican muster

    The federal post-secondary data infrastructure is a 
complex, duplicative maze of federal reporting requirements 
that often leaves students and families without access to 
complete information. H.R. 4508 increases institutional burden 
by requiring institutions to report new program-level debt and 
earnings metrics. Although this is a step toward better data, 
H.R. 4508 does not overturn the outdated ban on a federal 
student-level data network, which would reduce institutional 
burden by eliminating the duplicative, inefficient, and 
incomplete data infrastructure currently in place. 
Additionally, H.R. 4508's new reporting requirement fails to 
address a current-law impediment to data quality by maintaining 
the limitation that data only be collected and reported for 
students receiving federal financial aid, omitting 30 percent 
of all students, and painting an incomplete picture of the 
nation's higher education system.
    Committee Democrats believe that too many students remain 
missing from key college outcome metrics today. For example, 
even with recent updates to data on college completion, the 
updated measure does not disaggregate by race/ethnicity, nor 
does it measure completion after transfer.
    Because Committee Democrats support a student-level data 
network that would allow for more complete reporting while 
reducing institutional burden, Rep. Polis introduced an 
amendment to strike the student unit record ban from HEA. 
Despite the cosponsorship of six Committee Republicans on 
stand-alone legislation to strike the student unit record ban, 
Committee Republicans collectively rejected the Polis 
amendment.

Unnecessary Speech Code Provisions

    H.R. 4508 requires the disclosure of any policy related to 
protected speech on campus, including policies limiting where 
speech can occur for IHEs in receipt of Title IV funds. During 
markup, Committee Republicans passed, on a party line vote, an 
amendment expanding this provision, creating an office at the 
Department of Education tasked with responding to student 
complaints regarding IHE compliance with free speech policies. 
Committee Democrats objected to this amendment as we believe 
the purported ``free speech crisis'' underway on college 
campuses is more political rhetoric driven by conservative 
ideologues rather than reality.\67\ The amendment passed on a 
party-line vote.
---------------------------------------------------------------------------
    \67\See e.g., Chris Ladd, There is No Free speech Crisis on Campus, 
Forbes, Sept. 23, 2017, available at https://www.forbes.com/sites/
chrisladd/2017/09/23/there-is-no-free-speech-crisis-on-campus.
---------------------------------------------------------------------------

  H.R. 4508 CREATES TROUBLING EXEMPTIONS TO FEDERAL LAW FOR RELIGIOUS 
                              INSTITUTIONS

    H.R. 4508 prohibits any Federal, State, or Local government 
entity from taking any adverse action (including withholding of 
funds) against an IHE in receipt of Title IV funds for failure 
to comply with HEA requirements, so long as the IHE's 
justification for noncompliance rests with the institution's 
religious mission or affiliation. This overly broad provision 
effectively exempts institutions, including for-profit 
institutions, from federal oversight in the name of religion.
    Committee Democrats believe that religious institutions 
play a vital role in the U.S. system of higher education. Data 
from the ED Integrated Postsecondary Education Data System 
(IPEDS) show that during the 2015-2016 Academic Year, there 
were 7,180 main campuses of Institutions of Higher Education 
that participated in HEA, Title IV. Of those, 901 main 
campuses, or 12.5 percent, were religiously affiliated. These 
institutions are able to execute the responsibilities and 
requirements of the law while successfully maintaining their 
religious identities and missions, suggesting that the 
religious provisions of H.R. 4508 are a solution in search of a 
problem. H.R. 4508 creates an unnecessary carve out for 
religious institutions that want access to federal funding 
without abiding by federal civil rights laws or the federal 
oversight and accountability that accompanies acceptance of 
taxpayer funds.
    This exemption is just one of many provisions addressing 
religion in H.R. 4508. The bill also exempts religious student 
organizations at public institutions from adhering to 
nondiscrimination protections for all students. It codifies a 
loophole in current regulations that exempts religious 
institutions from State licensing and authorization procedures 
and fraud oversight if State law allows the exemption, thereby 
encouraging additional States to adopt such an exemption. The 
bill expands the deference that must be given to religious 
institutions by accreditors by broadly defining what is 
included under the pretext of religious mission and expressly 
permitting institutions to self-define their missions. It 
establishes a complaint procedure for religious institutions 
against accreditors that is heavily and unfairly weighted to 
the benefit of such institutions. And although it does not 
carry the weight of law, H.R. 4508 expresses the sense of 
Congress that individuals should be free to profess and 
maintain their own opinions in matters of religion without 
curtailing their civil liberties or rights on IHE campuses. 
Additionally it expresses the sense of Congress that no public 
IHE receiving federal funds under HEA should limit religious 
expression, free expression, or any other First Amendment 
rights, without noting a Title IV-receiving institution's 
obligations to comply with federal civil rights laws.
    Taken in total, the religious provisions in H.R. 4508 go 
far beyond the jurisdictional scope of HEA. As written, the 
bill permits an institution's religious mission to supersede 
several federal civil rights statutes, such as: Title VI of the 
Civil Rights Act of 1965; Title VII laws against discrimination 
in employment based on sex, race, color, national origin, or 
religion; ADA employment laws to protect the disabled; Title IX 
laws against gender discrimination in a program or activity 
receiving federal financial aid; and the Fair Housing Act of 
1968. Section 117 of H.R. 4508 essentially creates a limitless 
exemption for religious institutions to act in any way 
affecting any issue under the pretext of religion. In this 
sense, the provision has more in common with the First 
Amendment Defense Act (FADA)\68\ or Religious Freedom 
Restoration Act (RFRA)\69\ than higher education policy, as 
this broad exemption attempts to position freedom of religion 
as the pre-eminent first amendment right.
---------------------------------------------------------------------------
    \68\https://www.congress.gov/114/bills/hr2802/BILLS-
114hr2802ih.pdf.
    \69\Pub. L. No. 103-141
---------------------------------------------------------------------------
    Aside from being broad in scope, the language of the 
religious provisions in H.R. 4508 is overly vague, and, as 
such, is open to dangerous interpretation. The bill broadly 
defines ``religious mission'' to include ``religious tenets, 
beliefs, or teachings, and any policies or decisions related to 
such tenets, beliefs, or teachings (including any policies or 
decisions concerning housing, employment, curriculum, self-
governance, or student admission, continuing enrollment, or 
graduation).'' This broad language ensures that any action or 
failure to act on the part of an institution fits under the 
umbrella of ``religious mission''. It similarly defines 
``adverse action'' equally broadly. In a final confounding 
turn, it appears that any attempt to enforce this provision 
would violate the provision on its face, by requiring the 
Department of Education to become involved in assessing a 
school's religious mission.
    Almost 1,000 religious institutions currently receive 
funding under HEA while successfully complying with the law's 
present requirements. Moreover, several of the civil rights 
laws mentioned already contain their own limited religious 
exemptions. Title VII of the Civil Rights Act of 1965 permits 
religious employers to consider religion in employment 
decisions although they may not consider other protected 
classes. Title IX of the Education Amendments of 1972 allows 
religious institutions to request an exemption to consider 
religion in admission and certain other contexts within 
education, but it requires a determination that the institution 
is in fact controlled by a religious organization. The 
Americans with Disabilities Act includes an exemption for 
religious organizations.
    Religious institutions can either follow federal education 
and civil rights laws and access federal funds, or they can 
choose not to follow such laws and forego access to federal 
funding. That is the prerogative of each institution. HEA as it 
currently stands is not an impediment to religious institutions 
receiving federal funds, nor does it require them to abandon or 
disregard their religious missions. Committee Democrats believe 
religious IHEs must continue to follow the same civil rights 
laws and be subject to the same oversight provisions as other 
institutions, which they successfully do now.\70\
---------------------------------------------------------------------------
    \70\Standing with Committee Democrats are 50 civil rights, faith, 
religious freedom, LGBTQ, and reproductive rights organizations 
strongly opposed to provisions of H.R. 4508 that permit discrimination 
based on religion.
---------------------------------------------------------------------------
    Ranking Member Scott offered an amendment repealing H.R. 
4508's provisions that exempt religious institutions from civil 
rights laws and appropriate federal oversight. The amendment 
also repealed the other provisions of H.R. 4508 that attempt to 
place the religious rights of institutions or individuals on 
campus above other civil rights and legal requirements. This 
amendment failed due to a party line vote.

     H.R. 4508 FAILS TO ADDRESS SERIOUS CONCERNS OVER CAMPUS SAFETY

    College campuses should be havens for students to focus on 
education free from concerns for their safety. We know this is 
not the case, as incidents of campus sexual assault, racial 
violence, and hazing have all garnered national attention 
recently. The recent investigation into Title IX violations in 
the wake of the Larry Nassar scandal at Michigan State 
University are an example of what can happen when schools put 
their image above their student's safety and well-being. 
Similarly, the nation watched in horror when a mob of torch-
wielding white nationalists descended on the University of 
Virginia (UVA) and marched through university grounds chanting 
racial epithets and intimidating students and faculty, in 
complete disregard of the Title VI and Equal Protection right 
to a safe learning environment.\71\ On each of these issues, 
H.R. 4508 offers policies that fail to adequately address, and 
in some cases would exacerbate the underlying problems. H.R. 
4508 undermines protections for survivors of campus sexual 
assault, which could undermine the ability of IHEs to combat 
this pervasive issue. At markup, in an attempt to preempt a 
vote to express a sense of Congress condemning racial violence 
on campus, Committee Republicans adopted a hollow amendment 
offered by Rep. Garrett to support `diversity and inclusion' 
that fails to speak to the growth of incidents of racial 
violence. And, despite adoption of the Thompson Amendment, the 
reported bill fails to treat the issue of campus hazing as a 
true threat to public safety.
---------------------------------------------------------------------------
    \71\``White Nationalists March on the University of Virginia.'' The 
New York Times, August 11, 2017. Available at: https://www.nytimes.com/
2017/08/11/us/white-nationalists-rally-charlottesville-
virginia.html?mcubz=0.
---------------------------------------------------------------------------

H.R. 4508's inadequate approach to campus sexual assault

    H.R. 4508 contradicts the intent of the Clery Act. The 
Clery Act is designed to ensure IHEs report crimes on campus to 
give policymakers and the public a complete picture of student 
safety and security. As part of guidance to schools on campus 
sexual assault issued to IHEs in 2014, the Department of 
Education clarified which individuals on a campus had a duty to 
report an allegation of sexual violence for purposes of Clery 
reporting. This would not trigger an investigation 
automatically, but would require the IHE to report the 
incident. The definition of responsible employee included, any 
employee who ``has been given the duty of reporting incidents 
of sexual violence or any other misconduct by students to the 
Title IX coordinator or other appropriate school designee, or 
whom a student could reasonably believe has this authority or 
duty.''\72\
---------------------------------------------------------------------------
    \72\Catherine E. Lhamon, Questions and Answers on Title IX and 
Sexual Violence, U.S. Department of Education, April 29, 2014, 
available at http://www2.ed.gov/about/offices/list/ocr/docs/qa-201404-
title-ix.pdf. (Emphasis added).
---------------------------------------------------------------------------
    Under H.R. 4508, IHEs must hire at least one sexual assault 
survivors' counselor for victims of sexual assault. Counselors 
must be trained specifically in sexual assault, and each IHE 
must make a good faith effort to advertise the availability of 
sexual assault counselors. Most students would reasonably 
believe that a counselor mandated by their school to help them 
deal with the aftermath of a sexual assault would have the 
authority or duty to report the assault. Instead, H.R. 4508 
prohibits counselors who provide services to victims of sexual 
assault from reporting the incident(s) and bars the 
consideration of such information as part of the Clery Act. 
This frustrates the Clery Act's purpose, which requires the 
collection and reporting of such incidents. Mandating 
counselors but not requiring them to report incidents of sexual 
assault for inclusion in campus crime statistics, will compound 
the problem of underreporting of sexual assault, allowing 
schools to misrepresent the nature of sexual violence on 
campus. With regard to provisions contained in H.R. 4508 that 
could amend or change the intent of Clery, at markup Chairwoman 
Foxx made a commitment to Rep. Davis to ``before the bill is 
brought to the floor make absolutely certain, there is no 
misunderstanding of what we are trying to accomplish here.''
    H.R. 4508 would allow schools to assess sexual assault 
claims using varying standards of evidence. Prior to 2014, IHEs 
used varying standards of evidence in sexual assault 
proceedings. While some schools used the preponderance of the 
evidence standard (the standard used in most civil cases), some 
schools used the more stringent clear and convincing evidence 
standard. As part of the Department of Education guidance in 
2014 to standardize compliance expectations, schools are to use 
the preponderance of the evidence standard in resolving Title 
IX complaints.\73\ Under H.R. 4508, each IHE would be allowed 
to set its own standard of review, so long as it is 
consistently applied throughout the institution. The result 
will be that the same actions on different campuses, possibly 
even between campuses in the same city, could be judged 
differently. Committee Democrats are concerned that allowing 
for varying standards will result in inequitable results on 
many campuses and note that enactment of this provision would 
result in Title IX violations held to a different standard than 
other violations on campus.
---------------------------------------------------------------------------
    \73\Id. at 13.
---------------------------------------------------------------------------
    H.R. 4508 encourages IHEs to delay sexual assault 
investigations. Section 488 (f)(18) of H.R. 4508 allows IHEs to 
delay their own investigation into an allegation of campus 
sexual assault if the matter is also being investigated by law 
enforcement. This contradicts Title IX and related guidance, 
which finds that once a school ``knows or reasonably should 
know of possible sexual violence, it must take immediate and 
appropriate action to investigate or otherwise determine what 
occurred.''\74\ Schools are obligated to promptly address the 
alleged incidents, regardless of the whether the allegation is 
addressed through the criminal justice system. In the words of 
the American Association of University Women,
---------------------------------------------------------------------------
    \74\Id. at 2.

          ``Under the provisions of H.R. 4508, schools would 
        have an excuse not to investigate sexual assaults on 
        campus at the request of law enforcement, possibly 
        undermining students'' ability to seek justice and 
        accommodation at their schools. In addition, this bill 
        would give schools a pass on accurately disclosing 
        annual crime data. The last thing students need is for 
        schools to return to the days of sweeping sexual 
---------------------------------------------------------------------------
        violence under the rug.''

    Committee Democrats believe this provision will frustrate 
survivors' attempts at resolution and could result in fewer 
victims coming forward to report to the institution due to 
inaction by the school to adequately address instances of 
campus sexual assault and impose institutional penalties to 
ensure student safety.
    H.R. 4508 requires confusing campus climate surveys and 
prohibits data from being used to address Campus Sexual 
Assault. Section 162 of H.R. 4508 would require IHEs to conduct 
climate surveys and to use such surveys to improve the school's 
response to sexual harassment and assault. However, the bill 
fails to require institutions to share survey findings with the 
students. Further, H.R. 4508 prohibits the Secretary of 
Education from creating uniform survey standards, using survey 
findings as a tool for comparisons among IHEs, and issuing 
regulations or technical assistance as a means to address the 
problem of campus sexual assault. According to a leading 
advocacy group for survivors of campus sexual assault, ``The 
data [from proposed climate surveys], therefore, does not 
educate the public regarding the climate at any particular 
school, nor does it incentivize accountability.''\75\
---------------------------------------------------------------------------
    \75\Letter to Reps. Foxx & Scott from Gaylynn Burroughs, Director 
of Policy and Research, Feminist Majority Foundation, Dec. 11, 2017.
---------------------------------------------------------------------------
    To address the regression made by H.R. 4508 on campus 
sexual assault, Reps. Davis and Bonamici offered an amendment 
to strike this language in the underlying bill. This amendment 
was defeated on a party line vote.

Campus racial harassment and violence

    As introduced, H.R. 4508 was silent on the issue of racial 
and homophobic harassment and violence on college campuses. At 
markup two amendments were considered on this issue: one 
offered by Mr. Garrett (R-VA), and one by Ms. Wilson; The 
Garrett Amendment passed on a voice vote, the Wilson amendment 
failed on a recorded party-line vote. Committee Republicans 
intended the Garrett amendment to preempt a presumably 
uncomfortable vote on the Wilson amendment, as evidenced by the 
fact that the two amendments were similar, but with three 
distinct and substantive differences that render the language 
of the Garrett amendment, and H.R. 4508 as reported out of 
Committee, hollow. The adopted language fails to recognize the 
documented increase of racial and anti-LGBTQ violence and 
harassment, the rise of extremist organizations deliberately 
targeting college campuses to spread hostile hate speech that 
may violate an institution's obligations under Title VI of the 
Civil Rights Act, and the lack of legal protection for issues 
of sexual orientation and gender identity. Committee Democrats 
note that the Garrett amendment (and the Thompson amendment 
referenced below concerning campus hazing) was drafted by the 
majority less than 15 minutes prior to the start of markup, a 
breach of the Committee's good-faith practice of bipartisan 
exchange of amendments 24 hours prior to the start of Committee 
proceedings.
    Committee Democrats recognize that all harassment and 
violence targeted at students should be condemned. But it is 
equally important to recognize both that specific types of 
incidents are increasing, and that there are specific 
organizations actively inciting harassment and violence 
targeted at specific student groups on college campuses. The 
Anti-Defamation League has documented the rise of incidents of 
propaganda targeting ``minority groups, including Jews, Blacks, 
Muslims, non-white immigrants, and the LGBT community.''\76\ 
While Rep. Wilson's amendment mentioned only 5 campus 
incidents, the ADL has recorded 346 incidents of white 
supremacist propaganda appearing on 216 different campuses 
since September of 2016.\77\ 290 of those 346 incidents 
occurred in 2017 and 18 have already occurred in 2018.\78\ This 
documented increase in on-campus violence and harassment of 
minority student groups is not addressed in the amendment 
adopted by the Committee. There is a credible documented rise 
both in incidents of harassment and violence and in organized 
white supremacist outreach on campus and H.R. 4508 is silent on 
these emerging and troubling trends.
---------------------------------------------------------------------------
    \76\Anti-Defamation League, White Supremacist Propaganda Surges on 
Campus, last updated January 29, 2018, available at https://
www.adl.org/education/resources/reports/white-supremacist-propaganda-
surges-on-campus.
    \77\Id.
    \78\Id.
---------------------------------------------------------------------------
    While the adopted text of the Garret Amendment to H.R. 4508 
fails to clarify what ``sex'' means in the context of section 
703 of the Civil Rights Act of 1964, based on discussions with 
Committee Republicans, Committee Democrats believe it is the 
position of the Committee that ``sex'' includes an individual's 
sex, gender, and sexual orientation, and the right to be free 
from harassment and violence extends to individuals targeted 
for being, or being perceived as gay, lesbian, bisexual, 
transgender, or non-gender binary.

Failure to meaningfully address campus hazing

    Given that 55 percent of students experience some form of 
hazing and yet 95 percent of those incidents are never reported 
to faculty or staff, Committee Democrats believe 
reauthorization of HEA should do more to help students fight 
the persistent problem of campus hazing.\79\ Although 
institutions of higher education already submit some data on 
campus safety to the Department of Education, policymakers and 
the public lack information about hazing. Schools are required 
to report incidents of assault, however incidents of hazing in 
and around IHEs remain a factor in some student activities. To 
better understand hazing on college campuses, Rep. Fudge 
offered a common sense amendment to require colleges and 
universities participating in federal financial aid programs to 
disclose incidents of hazing in their Annual Security Report 
and to report statistics of referrals for discipline and 
arrests specific to hazing. Additionally, to curb these 
incidents from happening, the amendment requires institutions 
to implement a hazing education program for students. Similar 
to the tactic employed by Majority members of the Committee to 
avoid an uncomfortable vote that would condemn racial and anti-
LGBTQ violence, Rep. Thompson first offered an amendment that 
expressed a sense of Congress in opposition to campus hazing, 
but failed to include any meaningful reporting or training 
requirements. Rep. Fudge spoke against the disingenuous nature 
of the Thompson amendment before withdrawing her amendment.
---------------------------------------------------------------------------
    \79\Allan, E.J. & Madden, M. (2008). Hazing in view: College 
students at risk. Initial findings from the National Study of Student 
Hazing. Retrieved from https://www.stophazing.org/wp-content/uploads/
2014/06/hazing_in_view_web1.pdf.
---------------------------------------------------------------------------

H.R. 4508 DOUBLES DOWN ON UNPROVEN PROGRAMS IN HIGHER EDUCATION, AT THE 
                          EXPENSE OF STUDENTS

    Rather than investing in effective programs, H.R. 4508 
gives unfettered access to financial aid, to any institution 
for competency-based education (CBE), defined loosely in the 
bill. While quality CBE is a new, innovative, and flexible 
model that makes higher education more accessible for today's 
student, Committee Democrats fear that an expansion of CBE 
without strong accountability provisions to accompany such an 
expansion could result in poor outcomes for students and higher 
risk for waste, fraud, and abuse to taxpayers. While advocating 
for a full-bore expansion of CBE, H.R. 4508 does not similarly 
increase access to other programs with a proven track record of 
increasing access to higher education.
    While many traditional higher education programs are based 
on time, CBE allows students to advance through their degree 
requirements upon demonstration of competency mastery. CBE is 
still in the early stages of its development, and while there 
are high-quality programs that are working, the best practices 
for what constitutes an effective program at scale and how 
certain requirements and regulations affect these programs are 
still unknown. This lack of information underscores the need to 
closely monitor, oversee, and evaluate limited expansion of CBE 
programs that are accountable to taxpayers before unchecked 
expansion of this untested model.
    H.R. 4508 loosely defines CBE and makes all programs that 
meet the definition eligible to receive financial aid, while 
removing consumer and student protections to ensure program 
quality. For example, decisions about what constitutes a 
competency unit and amount of time required for an academic 
year are left entirely up to the school and the accreditor, 
making meaningful evaluation at-scale impossible. This 
irresponsible expansion of CBE carries huge potential for abuse 
that is likely to hurt students and working families.
    Committee Democrats believe HEA should support innovation, 
but not at the expense of students. Congress needs to have data 
and evidence before creating a broad and unaccountable 
expansion of an untested model of delivery. For this reason, 
Rep. Polis offered an amendment to strike the bill's changes 
and, instead, provides demonstration authority for up to 100 
CBE programs to access federal student aid dollars. Unlike the 
GOP bill, this amendment would require an annual evaluation of 
each CBE program in the demonstration project to determine 
program quality, the progress of participating students toward 
degree completion, and a students'ability to repay their loans 
and find employment upon graduation. The amendment would provide 
necessary information about the students served in these CBE programs, 
how their success compares to similarly situated students in 
traditional programs, and the types of waivers needed to implement 
quality CBE programs with fidelity. Despite the amendment's genesis in 
bipartisan standalone legislation supported by the Majority and passed 
by the full House of Representatives in the 114th Congress, the Polis 
amendment was not adopted.

Higher education programs proven-effective and deserving of expansion

    While the percentage of individuals enrolling in college is 
higher than ever before, traditionally underserved students 
continue to enroll in college at lower rates than their peers. 
According to the What Works Clearinghouse, dual enrollment 
programs have a positive effect on college enrollment, credit 
accumulation, and degree attainment.\80\ Early college high 
school programs also have a positive impact--almost all 
students participating in early college high school programs 
earn free college credit before the end of senior year, 
including 30 percent who graduate high school with a college 
degree or credential.\81\ Given that at least two out of three 
early college high school students are students of color, 
nearly three out of five are low-income, and almost half are 
the first in their families to enroll in college, expanding 
these programs can help close gaps in college enrollment.\82\ 
Democrats believe dual enrollment and early college high school 
programs are part of the solution to increasing access to 
higher education, tackling college costs, and improving 
graduation rates--particularly for the students who need the 
most help.
---------------------------------------------------------------------------
    \80\What Works Clearinghouse, Dual Enrollment Programs, Inst. For 
Educ. Stats., available at https://ies.ed.gov/ncee/wwc/
InterventionReport/671
    \81\Reinventing High Schools for Postsecondary Success, Jobs for 
the Future, available at http://www.jff.org/initiatives/early-college-
designs
    \82\82 http://www.jff.org/sites/default/files/publications/
Unconventional--Wisdom--PDF--033011.pdf
---------------------------------------------------------------------------
    Although H.R. 4508 includes a 10 percent carve out from 
TRIO programs for a new grant program called ``innovative 
measures promoting postsecondary access and completion 
(IMPACT)'' that may be used for dual enrollment and early 
college high schools, the available funding is woefully 
insufficient.
    Rep. Espaillat (D-NY) offered an amendment that would 
create a competitive grant program funded at $250 million per 
year for colleges and universities that partner with local 
educational agencies to expand dual enrollment and early 
college high school programs that primarily serve low-income 
students. Funding would also be provided to States for the 
development and implementation of a statewide strategy for 
increasing access to dual enrollment programs. This amendment 
would invest in strategies and programs that are proven to 
significantly increase high school graduation rates, college 
readiness, access to college, and college completion. Given the 
important role dual enrollment can have on college access, Rep. 
Polis also offered an amendment that would encourage IHEs to 
create and expand opportunities for dual and concurrent 
enrollment. The proposed grant would help cover the cost of 
tuition, books, fees, or transportation. However, both 
amendments failed on a party-line vote.
    H.R. 4508 also fails to significantly invest in 
international and foreign language programming. According to 
the National Research Council, a pervasive lack of knowledge 
about foreign cultures and languages in the United States 
threatens the security of our country and our ability to 
compete in the global economy.\83\ Additionally, defense, 
intelligence, and diplomatic agencies have an established and 
growing need for Americans with international knowledge, 
advanced foreign language skills, and cultural awareness.\84\ 
The lack of qualified individuals for these in-demand positions 
also leads to a lack of instructional leaders and teachers who 
can adequately provide a robust international education 
experience for undergraduate and post-baccalaureate students. 
In an attempt to address these issues, the United States 
invests in several domestic and international language-, 
cultural-, and business-focused programs authorized under Title 
VI of the HEA. H.R. 4508 ignores the demonstrated need for 
investment in these programs, and cuts funding to Title VI. It 
eliminates programs that help provide students with quality 
foreign language and area studies, and programs that provide 
teachers with resources and training to deliver quality 
instruction.
---------------------------------------------------------------------------
    \83\https://www.nap.edu/read/11841/chapter/2
    \84\https://languagepolicy.org/wp-content/uploads/2015/04/Gail-
McGinn-Paper-govt-language-shortages.pdf
---------------------------------------------------------------------------
    Rep. Davis (D-CA) offered an amendment to strike the 
changes to Title VI made by H.R. 4508 and instead, increase the 
authorization for funding to $125 million, indexed to inflation 
for each successive fiscal year. The amendment sought to extend 
authorization of six currently funded programs and align five 
existing programs into two consolidated programs to better 
address the 21st century needs for educational opportunities 
that promote language, cultural, and professional competencies 
for students, teachers, and employers. Even though this 
amendment continues our nation's investment in language, 
cultural, and regional education and expertise so that we can 
compete economically and maintain robust defense, intelligence, 
and diplomatic communities, the majority voted against the 
amendment.

   H.R. 4508 POSES SIGNIFICANT RISK TO VULNERABLE STUDENT POPULATIONS

    Committee Democrats believe H.R. 4508 will negatively 
affect military recruitment and veterans. According to the 
Consumer Financial Protection Bureau (CFPB), more than 200,000 
members of the military owe more than $2.9 billion in student 
loan debt. The CFPB also indicates that military members are 
worried about paying off their student loan debt and losing 
Public Service Loan Forgiveness (PSLF). By creating one less 
generous income-driven repayment plan and eliminating PSLF, we 
worry that H.R. 4508 has the potential to curb military 
interest and harm veterans paying off their student loans.
    For decades, for-profit colleges have targeted veterans for 
recruitment. By giving for-profit colleges increased access to 
taxpayer funding, repealing the gainful employment rule, the 
90/10 rule, the borrower defense rule, State authorization, and 
weakening oversight mechanisms of for-profit colleges, 
including accreditors' ability to assess recruiting and 
admission practices, H.R. 4508 only makes it easier for for-
profits to abuse our service members. This is why Rep. Bonamici 
introduced an amendment that would delay implementation of H.R. 
4508 until the Office of the Inspector General (OIG) of the 
U.S. Department of Education, in consultation with the OIG of 
the U.S. Department of Veterans Affairs, certifies that 
implementation of the legislation does not lead to fraud and 
abuse of veterans.
    H.R. 4508 also places low-income students at risk. The GOP 
bill eliminates grant programs for needy students, ends 
subsidized loans for low-income individuals, and creates 
uncertainty during loan repayment. By eliminating these 
programs, H.R. 4508 raises the price of college for millions of 
students. To ensure low-income students are not hurt, Rep. 
Bonamici introduced an amendment that would stop H.R. 4508 from 
taking effect until the Government Accountability Office (GAO) 
certifies that such implementation does not result in decreased 
availability of federal grant aid and increased student loan 
debt for low-income students.
    H.R. 4508 caps borrowing and drives more borrowers to 
private student loans, which Congressional Democrats fear will 
lead to an increase in private student loan debt for borrowers 
and cosigners. In an effort to determine if this is in fact the 
case, Rep. Bonamici also offered a separate amendment that 
would require GAO to certify that H.R. 4508 does not increase 
total student loan debt.
    Committee Republicans assert that H.R. 4508 will meet the 
needs of today's students and improve college access, 
affordability, and completion. Yet, despite these unfounded 
claims, Committee Republicans rejected all four amendments 
offered by Rep. Bonamici to require good government watchdog 
agencies to study and confirm that the policies of the 
underlying bill do no harm to vulnerable student populations 
prior to enactment. If Republicans believed in the policies of 
H.R. 4508, there should be no hesitation to prove the 
legislation's positive impact prior to subjecting students and 
families to the bill's untested proposals.

 H.R. 4508 IS SILENT ON BARRIERS TO EQUITY IN HIGHER EDUCATION FACING 
                          VULNERABLE STUDENTS

    While H.R. 4508 is a comprehensive rewrite of HEA, there 
are many barriers to equity in higher education that the bill 
fails to address. Committee Democrats believe that many of 
these issues deserve consideration in a comprehensive rewrite 
of HEA.

Status of DREAMers

    In 2012, the federal government asked undocumented 
immigrants who were brought here at a young age to turn 
themselves in to the federal government in exchange for work 
authorization and temporary relief from deportation. Since 
then, nearly 800,000 undocumented young people received 
temporary permission to live and work in this country through 
the Deferred Action for Childhood Arrivals (DACA) program. 
According to the Center for American Progress, DACA recipients 
stand poised to contribute more than $460 billion to the U.S. 
gross domestic product over the next decade.\85\ However, in 
2017, President Trump announced the arbitrary end of DACA and 
exposed these hard-working individuals to fear of deportation 
and uncertainty about their future.
---------------------------------------------------------------------------
    \85\Nicole Prchal Svajlenka, Tom Jawetz, and Angie Bautista Chavez, 
A New Threat to DACA Could Cost States Billions of Dollars, Ctr. for 
Am. Prog., Jul. 21, 2017, available at https://
www.americanprogress.org/issues/immigration/news/2017/07/21/436419/new-
threat-daca-cost-states-billions-dollars/.
---------------------------------------------------------------------------
    Using data from the Migration Policy Institute on DACA-
eligible individuals to estimate educational attainment among 
DACA individuals, we calculate that there are approximately 
160,000 DACA students enrolled in college. Further, the 
analysis leads us to believe that roughly 88,000 DACA 
individuals have completed some college and an additional 
40,000 have at least a bachelor's degree.\86\ DACA recipients 
are current and future social workers, teachers, engineers, 
lawyers, doctors, small-business owners and more. They are 
integral to our communities and economies.
---------------------------------------------------------------------------
    \86\Analysis by House Education and the Workforce Committee Staff 
using Migration Policy Institute data available at https://
www.migrationpolicy.org/research/education-and-work-profiles-daca-
population.
---------------------------------------------------------------------------
    Committee Democrats believe Congress must pass a permanent 
solution so that these individuals no longer have to live under 
the threat of deportation. Multiple stakeholders in the higher 
education community, including several hundred colleges and 
universities, have expressed their support for such a solution. 
Rep. Grijalva offered the Dream Act--a bipartisan and widely 
supported bill that would create a path to citizenship for 
undocumented individuals who moved to the United States as 
children--as an amendment. This amendment sought to ensure that 
these individuals could reach their full potential as legal 
citizens and allow them to more fully contribute to their 
communities and our economy. Unfortunately, Republican 
Committee members ruled the amendment non-germane.
    Rep. Espaillat introduced an amendment to allow 
undocumented individuals who meet certain requirements akin to 
DACA to become eligible for federal student aid. While this 
amendment would stop short of the full DREAM Act, it highlights 
the value of these individuals to our higher education system 
and national fabric. The government already invests in their K-
12 education and allowing them to enroll and complete college 
so that they can continue to contribute with higher earnings is 
not only sound economic policy, but also it is the human and 
moral thing to do. However, this amendment failed on a party 
line vote.

Improving the financial aid process for low-income students

    Data show that students who complete the FAFSA are more 
likely to attend and complete college than students who do not 
complete the form.\87\ Unfortunately, only three out of five 
high school graduates (61 percent) from the Class of 2017 
completed the FAFSA--leaving approximately $2.3 billion in 
unused Pell Grants.\88\ Although H.R. 4508 takes positive steps 
to increase access to the FAFSA by directing the Department of 
Education to make the FAFSA available using a mobile ``app,'' 
the Department already has the authority to create such a tool. 
In fact, the Department of Education announced its plan for 
this app in November 2017.\89\
---------------------------------------------------------------------------
    \87\FAFSA Completion Challenge, National College Access Network, 
available at http://www.collegeaccess.org/FAFSAchallenge.
    \88\National FAFSA Completion Rate for High School Seniors, 
National College Access Network, available at http://
www.collegeaccess.org/FAFSACompletionRate.
    \89\Joelle Fredman, FSA COO Unveils Mobile FAFSA App, Nat'l Assn. 
of Stud. Fin. Aid Admin. (Nov. 30, 2017) available at https://
www.nasfaa.org/news-item/13799/FSA_Unveils_Mobile_FAFSA_App.
---------------------------------------------------------------------------
    Rep. Blunt Rochester offered an amendment that reduces the 
complexity and length of the Free Application for Federal 
Student Aid (FAFSA) and increases support for vulnerable 
populations. The amendment would restructure the FAFSA to 
better fit each student's financial situation and create a 
three-pathway model that asks fewer questions to students with 
less complex financial situations. The amendment also prohibits 
the Secretary of Education from burdening the lowest-income 
students with difficult financial questions that lead to confusion and 
produce unnecessary barriers to FAFSA completion. To verify the 
information, the Secretary of Education is directed to enter a 
Memorandum of Understanding with the Secretary of Health and Human 
Services, the Secretary of Agriculture, and the Secretary of the 
Treasury to allow for the exchange of information needed to verify 
receipt of eligible federal benefits.
    For FAFSA applicants who did not receive one of the means-
tested Federal benefits outlined in the amendment but who have 
simple tax returns, this amendment would reverse cuts to the 
income threshold at which a student receives a zero-dollar 
estimated family contribution (EFC) back to $34,000 and pegs it 
to inflation. It also removes the requirement that independent 
students have dependents to be eligible for an automatic zero 
EFC. Unlike the expansion of the Simplified Needs Test created 
in H.R. 4508 that only helps middle-income families qualify for 
aid, the provisions in Rep. Blunt Rochester's amendment would 
allow low-income students to benefit from a maximum Pell Grant 
award.
    Additionally, because one in 10 Pell students who do 
complete the FAFSA and persist past their first year of college 
fail to re-file despite the overwhelming likelihood of 
maintaining eligibility for Federal student aid, this amendment 
asks high school seniors who qualify for Pell to only fill out 
the FAFSA once, as opposed to filing annually. The amendment 
also sought to codify the use of prior-prior year (PPY) income 
data and increase support for working students by shielding 
more income (35 percent increase) from any offset to financial 
aid. Further, the amendment sought to require the FAFSA to be 
available in multiple languages, allows DREAMers to afford 
college, reinstates Pell Grant eligibility for students with 
drug-related offenses, and creates a standardized financial aid 
award letter. Committee Republicans voted against the Blunt 
Rochester amendment.

College Access for American Citizens of the Outlying Areas

    Graduates from high schools in the Commonwealth of the 
Northern Mariana Islands and American Samoa have no accredited 
four-year IHEs to attend in their Territories. This leaves 
students with no affordable option, forcing them to move from 
home and suffer significant personal cost in order to pursue a 
college degree beyond two years. To address this problem, Rep. 
Sablan introduced an amendment modeled after the District of 
Columbia Tuition Assistance Grant Program (DC TAG) that sought 
to authorize $5 million dollars to cover the difference between 
the cost of in-State and out-of-State tuition for these 
students. The amendment failed along a party-line vote.

Remedial Education Reform

    Our nation's current system of remediation in higher 
education is failing working families by increasing the cost of 
college and, all too often, leaving students without a 
meaningful degree. In 2010, fifty-one percent of students 
entering public two-year colleges and more than one in four 
students (29 percent) entering public four-year universities 
were required to take remedial coursework during their college 
experience. Unfortunately, only 50 percent of students in 
remedial education will ever complete a credit-bearing course, 
with even a lower percentage of students achieving a 
degree.\90\
---------------------------------------------------------------------------
    \90\Laura Jimenez, Scott Sargrad, Jessica Morales, and Maggie 
Thompson, The Cost of Catching Up, Ctr. For Am. Prog. (Sept. 2016) 
available at https://cdn.americanprogress.org/wp-content/uploads/2016/
09/12082503/CostOfCatchingUp-report.pdf.
---------------------------------------------------------------------------
    Rep. Norcross offered an amendment to provide competitive 
grants to a geographically diverse set of colleges and 
universities of various sizes to develop or improve remedial 
education based on five models that have shown success during 
small-scale implementation. Aside from implementing evidence-
based models to improve remediation, students in programs 
funded under this grant may also use federal student aid 
dollars to support up to two years of remediation, removing 
another barrier to on-time completion for remedial students. 
The amendment requires evaluation of program effectiveness in 
order to determine the best systems of support that lead to 
college degree completion. The amendment was not adopted and 
failed by party-line vote.

Improving Access for Students with Disabilities

    Rep. DeSaulnier (D-CA) offered an amendment to improve 
services for students with disabilities. Committee Democrats 
believe that reauthorization of HEA must recognize the fact 
that we are graduating more students with disabilities from 
high school than ever before. Yet, very few students with 
disabilities enter higher education and even fewer make it to 
completion. Rep. DeSaulnier's amendment would strike H.R. 
4508's repeal of a program to train faculty to deliver 
accessible instruction; establish an Office of Accessibility in 
every IHE; provide a grant for university-wide implementation 
of universal design for learning; and expand higher education 
options for students with intellectual disabilities. The 
DeSaulnier amendment also strikes H.R. 4508's repeal of Title 
VIII, restoring a program that trains individuals to provide 
closed captioning services. The amendment was rejected with all 
Committee Republicans voting ``no.''

Foster and Homeless Youth

    A report produced by the National Working Group on Foster 
Care and Education indicates that although 84 percent of 17-18 
year olds in foster care want to go to college, less than 20 
percent of those who graduate high school attend college. 
Furthermore, less than 10 percent of those that attempt college 
will eventually complete a postsecondary credential by the age 
of 25. This is why increasing access to and completion from 
college for these youth is important. To increase access, these 
youth need assistance when applying to and enrolling in college 
and targeted support while in college.
    Rep. Krishnamoorthi offered an amendment that sought to 
improve college access, retention, and completion rates for 
foster and homeless youth by substantially improving State 
capacity to support these students as they transition to and 
attend college. In addition to these State formula grants, the 
amendment would help develop ``Institutions of Excellence'' 
committed to serving foster and homeless youth through robust 
support services, in collaboration with organizations skilled 
at helping these student populations, and substantial financial 
assistance. However, the amendment was voted down by Republican 
Committee Members.

Increased Funding Authorization for On-Campus Child Care

    Committee Democrats believe that it is important to provide 
the necessary tailored supports to help students from all walks 
of life succeed in college. Since 2000, the number of student 
parents enrolled in higher education programs has increased by 
50 percent. Today, more than one in four undergraduate students 
have children.\91\ In order to attend class, these students 
need childcare during the day. However, childcare can be cost 
prohibitive. According to the Economic Policy Institute, infant 
care is more expensive than the average in-State college 
tuition at public 4-year universities.\92\
---------------------------------------------------------------------------
    \91\https://iwpr.org/issue/special-websites/student-parent-success-
initiative/
    \92\http://www.epi.org/files/2015/child-care-is-out-of-reach.pdf
---------------------------------------------------------------------------
    In 1998, Congress authorized the Child Care Access Means 
Parents in School (CCAMPIS) program to help institutions 
provide campus-based childcare services for low-income student 
parents. Although there has been an increase in college 
enrollment by student parents throughout the years, the 
appropriation amounts for CCAMPIS has decreased. Currently, 
CCAMPIS is appropriated at just over $15 million, which is a 
steep cut from its original appropriated level of $25 million. 
In H.R. 4508, Committee Republicans propose flat funding this 
vital program's authorization level.
    Rep. Norcross introduced an amendment to increase the 
CCAMPIS authorization to $67 million, which is equal to the 
original authorization level of $45 million in FY 1999 adjusted 
for inflation. The amendment also adjusts the authorization 
level in future years by inflation. More student parents are 
going to college, and childcare costs are increasing. Committee 
Democrats believe Congress should be helping parents earn their 
degree, not penalizing them because they have children. 
Committee Republicans opposed the Norcross amendment.

Additional Supports for Vulnerable Student Populations

    Committee Democrats also offered amendments to authorize 
grants to ensure institutions have the resources necessary to 
support students who are veterans through degree completion 
(Rep. Grijalva) and provide tuition assistance for Native 
American Students (Rep. Polis). The Grijalva amendment was 
defeated along a party-line vote. The Polis amendment was 
defeated and only received one Republican vote.

        DEMOCRATIC AMENDMENTS OFFERED DURING MARKUP OF H.R. 4508

    Committee Democrats put forward 40 amendments to improve 
the bill. These amendments would have expanded the purchasing 
power of the Pell Grant, reformed the federal student loan and 
campus based aid programs to serve students and institutions 
better, and provided Dreamers with both permanent status in the 
country and access to federal student aid. Additional 
Democratic amendments sought to ensure fiscal and programmatic 
accountability for for-profit institutions, allow for student-
level data to improve higher education outcomes and policies, 
and restore the Public Service Loan Forgiveness (PSLF) Program. 
Democrats also offered proposals to simplify and improve the 
FAFSA, improve competency-based education programs, restore 
funding for teacher preparation programs and prospective 
teachers, and invest in communitycolleges, MSIs, foster 
students, homeless students, and students with disabilities. Committee 
Republicans rejected thirty-seven of the thirty-nine Democratic 
amendments that were considered.

 
    Amdt.                 Offered By                            Description                     Action Taken
 
#2             Ms. Davis                         Strikes H.R. 4508 provisions to make       Defeated
                                                  improvements to the Pell Grant Program
#4             Mr. Grijalva                      Attaches the DREAM Act to the underlying   Ruled non-germane
                                                  bill
#6             Mr. Espaillat                     Makes DREAMers eligible for Federal        Defeated
                                                  Student Aid
#8             Ms. Fudge                         Prevents and addresses campus hazing       Withdrawn
               Ms. Wilson                         through improved reporting requirements
#10            Ms. Shea-Porter                   Clarifies H.R. 4508 requirements that      Adopted
                                                  institutions of higher education provide
                                                  programming to prevent opioid and other
                                                  drug abuse
#12            Mr. Takano                        Restores For-Profit institutional          Defeated
               Mr. Krishnamoorthi                 accountability reflective of the risk to
                                                  taxpayers posed by the sector
#14            Mr. Courtney                      Makes ONE Loan borrowers eligible to       Defeated
                                                  participate in Public Service Loan
                                                  Forgiveness (PSLF)
#16            Ms. Bonamici                      Strikes H.R. 4508's ONE Loan, retain the   Defeated
               Mr. Takano                         Direct Loan Program, and makes other
               Ms. Wilson                         changes to ensure maximum benefit to low-
                                                  income borrowers
#18            Mr. Polis                         Improves postsecondary data quality by     Defeated
                                                  striking the federal ban on the student
                                                  unit record
#20            Ms. Blunt Rochester               Simplifies the Free Application for        Defeated
               Mr. Sablan                         Federal Student Aid (FAFSA) process to
                                                  ensure increased completion by and
                                                  maximum benefit to low-income students
                                                  and families (Simple FAFSA Act)
#22            Mr. Courtney                      Allows students to refinance student       Defeated
                                                  loans
#24            Ms. Wilson                        Restores support for teachers in HEA by    Defeated
               Mr. Polis                          striking H.R. 4508 program repeals and
                                                  increasing authorized funding levels
#26            Mr. Sablan                        Authorizes grants that provide tuition     Defeated
                                                  assistance for community college
                                                  graduates in the Commonwealth of the
                                                  Northern Mariana Islands and American
                                                  Samoa to pursue four year degrees
#28            Ms. Bonamici                      Strikes H.R. 4508's repeal of Federal      Defeated
                                                  Supplemental Educational Opportunity
                                                  Grant (FSEOG), reauthorizes the Perkins
                                                  Loan Program, and makes improvements to
                                                  Federal Work-Study
#30            Ms. Adams                         Strikes H.R. 4508 changes to Titles III,   Defeated
                                                  V, and other titles and replace with
                                                  program improvements to support Minority
                                                  Serving Institutions (MSI), including
                                                  the restoration of mandatory
                                                  appropriations and authorization of an
                                                  MSI innovation fund
#31            Mr. Scott                         Authorizes a federal-state partnership to  Defeated
                                                  provide students with access to
                                                  affordable degrees
#32            Ms. Davis                         Renames the program authorized under H.R.  Defeated
                                                  4508 Title II as `earn and learn' and
                                                  ensures quality of apprenticeship
                                                  programs receiving federal funds
#34            Mr. Norcross                      Authorizes grants to community colleges    Defeated
                                                  to improve degree completion
#36            Mr. Espaillat                     Authorizes grants to improve access to     Defeated
               Ms. Fudge                          quality Dual Enrollment programs for low-
                                                  income students
#37            Mr. Norcross                      Authorizes grants to support improvements  Defeated
                                                  to remedial education
#38            Mr. DeSaulnier                    Improves access to higher education for    Defeated
                                                  students with disabilities
#39            Mr. Norcross                      Authorizes increase in federal funding     Defeated
                                                  for campus-based child care
#41            Mr. Scott                         Restores accountability for religious      Defeated
                                                  institutions by striking H.R. 4508
                                                  provisions allowing the religious or
                                                  moral beliefs of such institutions to
                                                  preempt federal law
#42            Ms. Davis                         Strikes H.R. 4508 provisions that will     Defeated
               Ms. Bonamici                       negatively impact efforts to address
                                                  campus sexual assault
#43            Ms. Davis                         Restores and makes improvements to Title   Defeated
                                                  VI programs for foreign and
                                                  international education
#45            Ms. Wilson                        Expresses the Sense of Congress that       Defeated
                                                  college campuses should be free from
                                                  racial harassment and hostility
#47            Mr. Krishnamoorthi                Supports postsecondary access and          Defeated
                                                  completion for foster youth and students
                                                  who are homeless
#49            Mr. Krishnamoorthi                Strikes H.R. 4508 language limiting the    Defeated
                                                  distribution of voter registration
                                                  information
#51            Ms. Bonamici                      Ensures that H.R. 4508 shall not take      Defeated
                                                  effect until GAO certifies that
                                                  implementation will not negatively
                                                  impact military recruitment and
                                                  retention
#53            Mr. Grijalva                      Stops the garnishment of social security   Ruled non-germane
                                                  benefits to pay for student debt
#54            Mr. Grijalva                      Authorizes grants to establish, maintain,  Defeated
                                                  and improve veteran student centers
#55            Ms. Bonamici                      Ensures that H.R. 4508 shall not take      Defeated
                                                  effect until GAO certifies that
                                                  implementation will not result in
                                                  decreased availability of federal grant
                                                  aid and increased student loan debt for
                                                  low-income students
#56            Ms. Bonamici                      Ensures that H.R. 4508 shall not take      Defeated
                                                  effect until the U.S. Department of
                                                  Education Office of Inspector General,
                                                  in consultation with U.S. Department of
                                                  Veterans Affairs Office of Inspector
                                                  General, certifies that such
                                                  implementation shall not result in fraud
                                                  and abuse of students who are veterans
#57            Ms. Bonamici                      Ensures that H.R. 4508 shall not take      Defeated
                                                  effect until GAO certifies that
                                                  implementation will not increase total
                                                  student loan debt
#58            Mr. Polis                         Ensures Congress has the data on           Defeated
                                                  effectiveness and best practices
                                                  necessary to expand quality Competency-
                                                  Based Education (CBE)
#59            Mr. Polis                         Authorizes a grant program to support      Defeated
                                                  dual enrollment
#60            Mr. Polis                         Amends FERPA to allow for reverse          Adopted
                                                  transfer of student data
#61            Mr. Polis                         Authorizes grants to support the           Defeated
                                                  expansion of open textbooks
#62            Mr. Polis                         Makes clear that it is the Sense of        Defeated
                                                  Congress that online educational
                                                  material should not be blocked or
                                                  otherwise censored by internet providers
#63            Mr. Polis                         Provides federal funding for the Native    Defeated
                                                  American Tuition Waiver program
 

                               CONCLUSION

    The Committee, as recently as last Congress (114th) worked 
on a bipartisan basis to develop, introduce, and pass bills 
addressing discrete issues in higher education such as FAFSA 
simplification, enhanced student financial counseling, data 
transparency, and MSI program reform. Committee Democrats feel 
there are other policy areas in higher education of consensus 
that are ripe for bipartisan agreement, including loan 
servicing and accreditation reform. As evidenced by the policy 
proposals comprising H.R. 4508, Committee Republicans 
prioritize the delivery of financial aid to for-profit 
institutions and simplification of federal student aid that 
would make college more expensive for students and working 
families. Committee Democrats, as evidenced by the amendments 
offered during markup, prioritize increased investment in 
students and under-resourced institutions through the 
availability of more generous federal student aid products and 
institutional grants. While stark differences in policy 
approach to reforming and reauthorizing the HEA remain, 
Committee Democrats remain firm in their belief that there 
exists a bipartisan path forward to comprehensive HEA 
reauthorization that improves services and supports to ensure 
increased access to an affordable degree that leads to a good-
paying job. Committee Democrats encourage the majority to 
abandon the hyper-partisan policies of H.R. 4508 and engage in 
bipartisan negotiations.
    For the reasons stated above, Committee democrats 
unanimously opposed H.R. 4508 when the Committee on Education 
and the Workforce Committee considered it on December 12, 2017. 
We urged the House of Representatives to do the same unless 
there is a drastic revision of H.R. 4508.
                                   Robert C. ``Bobby'' Scott,
                                           Ranking Member.
                                   Susan A. Davis.
                                   Raul M. Grijalva.
                                   Joe Courtney.
                                   Marcia L. Fudge.
                                   Jared Polis.
                                   Gregorio Kilili Camacho Sablan.
                                   Frederica S. Wilson.
                                   Suzanne Bonamici.
                                   Mark Takano.
                                   Alma S. Adams.
                                   Mark DeSaulnier.
                                   Donald Norcross.
                                   Lisa Blunt Rochester.
                                   Raja Krishnamoorthi.
                                   Carol Shea-Porter.
                                   Adriano Espaillat.

                                  [all]